10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 30, 2017

OR

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file numbers:

001-36873 (Summit Materials, Inc.)

333-187556 (Summit Materials, LLC)

SUMMIT MATERIALS, INC.

SUMMIT MATERIALS, LLC

(Exact name of registrants as specified in their charters)

Delaware (Summit Materials, Inc.) Delaware (Summit Materials, LLC)	47-1984212 26-4138486
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1550 Wynkoop Street, 3rd Floor Denver, Colorado	80202
(Address of principal executive offices)	(Zip Code)

Registrants’ telephone number, including area code: (303) 893-0012

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
Class A Common Stock (par value $.01 per share)	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Summit Materials, Inc.	Yes  ☒	No  ☐
Summit Materials, LLC	Yes  ☐	No  ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    

Summit Materials, Inc.	Yes  ☐	No  ☒
Summit Materials, LLC	Yes  ☐	No  ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Summit Materials, Inc.	Yes  ☒	No  ☐
Summit Materials, LLC	Yes  ☒	No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Summit Materials, Inc.	Yes  ☒	No  ☐
Summit Materials, LLC	Yes  ☒	No  ☐

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K    ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Summit Materials, Inc.

Large accelerated filer	☒		Accelerated filer	☐
Non-accelerated filer	☐	(Do not check if smaller reporting company)	Smaller reporting company	☐
			Emerging growth company	☐

Summit Materials, LLC

Large accelerated filer	☐		Accelerated filer	☐
Non-accelerated filer	☒	(Do not check if smaller reporting company)	Smaller reporting company	☐
			Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Summit Materials, Inc.	Yes  ☐	No  ☒
Summit Materials, LLC	Yes  ☐	No  ☒

The aggregate market value of the Summit Materials, Inc. voting stock held by non-affiliates of the Registrants as of July 1, 2017 was approximately $3.1 billion.

As of February 7, 2018, the number of shares of Summit Materials, Inc.’s outstanding Class A and Class B common stock, par value $0.01 per share for each class, was 110,365,594 and 100, respectively.

As of February 7, 2018, 100% of Summit Materials, LLC’s outstanding limited liability company interests were held by Summit Materials Intermediate Holdings, LLC, its sole member and an indirect subsidiary of Summit Materials, Inc.

DOCUMENTS INCORPORATED BY REFERENCE

Certain information required by Items 10, 11, 12, 13 and 14 of Part III incorporate information by reference from Summit Materials, Inc.’s definitive proxy statement relating to its 2018 annual meeting of stockholders to be filed with the Securities and Exchange Commission within 120 days after the close of Summit Materials, Inc.’s fiscal year.

PART	ITEM		PAGE
I	1	Business	6
	1A	Risk Factors	21
	1B	Unresolved Staff Comments	33
	2	Properties	34
	3	Legal Proceedings	35
	4	Mine Safety Disclosures	35
		Executive Officers of the Company	35
II	5	Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	37
	6	Selected Financial Data	38
	7	Management’s Discussion and Analysis of Financial Condition and Results of Operations	40
	7A	Quantitative and Qualitative Disclosures about Market Risk	73
	8	Financial Statements and Supplementary Data	74
	9	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	112
	9A	Controls and Procedures	112
	9B	Other Information	115
III	10	Directors, Executive Officers and Corporate Governance	116
	11	Executive Compensation	116
	12	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	116
	13	Certain Relationships and Related Transactions, and Director Independence	116
	14	Principal Accounting Fees and Services	116
IV	15	Exhibits, Financial Statement Schedules	117
	16	Form 10-K Summary	124
		Signatures	125

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EXPLANATORY NOTE

This annual report on Form 10-K (this “report”) is a combined annual report being filed separately by two registrants: Summit Materials, Inc. and Summit Materials, LLC. Each registrant hereto is filing on its own behalf all of the information contained in this report that relates to such registrant. Each registrant hereto is not filing any information that does not relate to such registrant, and therefore makes no representation as to any such information. We believe that combining the annual reports on Form 10-K of Summit Materials, Inc. and Summit Materials, LLC into this single report eliminates duplicative and potentially confusing disclosure and provides a more streamlined presentation since a substantial amount of the disclosure applies to both registrants.

Unless stated otherwise or the context requires otherwise, references to “Summit Inc.” mean Summit Materials, Inc., a Delaware corporation, and references to “Summit LLC” mean Summit Materials, LLC, a Delaware limited liability company. The references to Summit Inc. and Summit LLC are used in cases where it is important to distinguish between them. We use the terms “we,” “our,” “Summit Materials” or “the Company” to refer to Summit Inc. and Summit LLC together with their respective subsidiaries, unless otherwise noted or the context otherwise requires.

Summit Inc. was formed on September 23, 2014 to be a holding company. As of December 30, 2017, its sole material asset was a 96.8% economic interest in Summit Materials Holdings L.P. (“Summit Holdings”). Summit Inc. has 100% of the voting rights of Summit Holdings, which is the indirect parent of Summit LLC. Summit LLC is a co-issuer of our outstanding 8 1/₂% senior notes due 2022 (“2022 Notes”), our 6 1/₈% senior notes due 2023 (“2023 Notes”) and our 5 1/₈% senior notes due 2025 (“2025 Notes” and collectively with the 2022 Notes and 2023 Notes, the “Senior Notes”). Summit Inc.’s only revenue for the year ended December 30, 2017 is that generated by Summit LLC. Summit Inc. controls all of the business and affairs of Summit Holdings and, in turn, Summit LLC, as a result of its reorganization into a holding corporation structure (the “Reorganization”) consummated in connection with its initial public offering.

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

This report contains “forward-looking statements” within the meaning of the federal securities laws, which involve risks and uncertainties. Forward-looking statements include all statements that do not relate solely to historical or current facts, and you can identify forward-looking statements because they contain words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “trends,” “plans,” “estimates,” “projects” or “anticipates” or similar expressions that concern our strategy, plans, expectations or intentions. All non-historical statements such as those relating to our estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and financial results are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, our actual results may differ materially from those expected. We derive many of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, it is very difficult to predict the effect of known factors, and it is impossible to anticipate all factors that could affect our actual results.

Some of the important factors that could cause actual results to differ materially from our expectations are disclosed under “Risk Factors” and elsewhere in this report. All subsequent written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by these cautionary statements.

We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

CERTAIN DEFINITIONS

As used in this report, unless otherwise noted or the context otherwise requires:

· “board” and the “directors” refer to the board and the directors of Summit Inc. following its March 2015 initial public offering (“IPO”) and to the board and the directors of the general partner of Summit Holdings prior to Summit Inc.’s IPO;

· “Continental Cement” refers to Continental Cement Company, L.L.C.;

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· “Davenport Assets” refer to a cement plant and quarry in Davenport, Iowa and seven cement distribution terminals along the Mississippi River;

· “EBITDA” refers to net income (loss) before interest expense, income tax expense (benefit), depreciation, depletion and amortization expense;

· “Finance Corp.” refers to Summit Materials Finance Corp., an indirect wholly-owned subsidiary of Summit LLC and the co-issuer of the Senior Notes;

· “Issuers” refers to Summit LLC and Finance Corp. as co‑issuers of the Senior Notes;

· “LP Units” refers to the Class A limited partnership units of Summit Holdings;

· “Mainland” refers to Mainland Sand & Gravel ULC, which is the surviving entity from the acquisition of Rock Head Holdings Ltd., B.I.M. Holdings Ltd., Carlson Ventures Ltd., Mainland Sand and Gravel Ltd. and Jamieson Quarries Ltd.;

· “Oldcastle Assets” refers to the seven aggregates quarries located in central and northwest Missouri acquired from APAC‑Kansas, Inc. and APAC‑Missouri, Inc., subsidiaries of Oldcastle, Inc.; and

· “TRA” refers to tax receivable agreement between Summit Inc. and holders of LP Units.

See “Business—Acquisition History” for a table of acquisitions we have completed since August 2009.

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Corporate Structure

The following chart summarizes our organizational structure, equity ownership and our principal indebtedness as of December 30, 2017. This chart is provided for illustrative purposes only and does not show all of our legal entities or all obligations of such entities.

(1) U.S. Securities and Exchange Commission (“SEC”) registrant.

(2) The shares of Class B Common Stock are currently held by pre-IPO investors, including certain members of management or their family trusts that directly hold LP Units.  A holder of Class B Common Stock is entitled, without regard to the number of shares of Class B Common Stock held by such holder, to a number of votes that is equal to the aggregate number of LP Units held by such holder.

(3) Guarantor under the senior secured credit facilities, but not the Senior Notes.

(4) Summit LLC and Finance Corp are the issuers of the Senior Notes and Summit LLC is the borrower under our senior secured credit facilities. Finance Corp. was formed solely for the purpose of serving as co-issuer or guarantor of certain indebtedness, including the Senior Notes. Finance Corp. does not and will not have operations

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of any kind and does not and will not have revenue or assets other than as may be incidental to its activities as a co-issuer or guarantor of certain indebtedness.

PART I 

Item  1.BUSINESS.

Overview

We are one of the fastest growing construction materials companies in the United States, with a 111% increase in revenue between the year ended December 28, 2013 and the year ended December 30, 2017. Within our markets, we offer customers a single‑source provider for construction materials and related downstream products through our vertical integration. Our materials include aggregates, which we supply across the United States, and in British Columbia, Canada, and cement, which we supply to surrounding states along the Mississippi River from Minneapolis to New Orleans. In addition to supplying aggregates to customers, we use our materials internally to produce ready‑mix concrete and asphalt paving mix, which may be sold externally or used in our paving and related services businesses. Our vertical integration creates opportunities to increase aggregates volumes, optimize margin at each stage of production and provide customers with efficiency gains, convenience and reliability, which we believe gives us a competitive advantage.

Since our inception in 2009, we have become a major participant in the U.S. construction materials industry. We believe that, by volume, we are a top 10 aggregates supplier, a top 15 cement producer and a major producer of ready‑mix concrete and asphalt paving mix. Our proven and probable aggregates reserves were 3.3 billion tons as of December 30, 2017. In the year ended December 30, 2017 we sold 41.7 million tons of aggregates, 2.5 million tons of cement, 4.7 million cubic yards of ready-mix concrete and 5.3 million tons of asphalt paving mix across our more than 400 sites and plants.

The rapid growth we have achieved over the last eight years has been due in large part to our acquisitions, which we funded through equity issuances, debt financings and cash from operations. Over the past decade, the U.S. economy witnessed a cyclical decline followed by a gradual recovery in the private construction market and modest growth in public infrastructure spending. The U.S. private construction market has grown in recent years both nationally and in our markets. We believe we are well positioned to capitalize on this growth to expand our business.

Our revenue in 2017 was $1.9 billion with net income of $125.8 million. As of December 30, 2017, our total indebtedness outstanding was approximately $1.8 billion.

We anticipate continued growth in our primary end markets, public infrastructure and the private construction market. Public infrastructure, which includes spending by federal, state and local governments for roads, highways, bridges, airports and other public infrastructure projects, has been a relatively stable portion of government budgets providing consistent demand to our industry and is projected by the Portland Cement Association (“PCA”) to grow approximately 17% from 2018 to 2022. With the nation’s infrastructure aging, there is increasing momentum to grow federal infrastructure spending among certain legislators and the U.S. President. We also believe states will continue to institute state and local level funding initiatives dedicated towards increased infrastructure spending. We believe that growth in infrastructure spending will not be consistent across the United States, but will vary across different geographies. The public infrastructure market represented 33% of our revenue in 2017.

The private construction market includes residential and nonresidential new construction and the repair and remodel market. According to the PCA, the number of total housing starts in the United States, a leading indicator for our residential business, is expected to grow 6% from 2018 to 2022. In addition, the PCA projects that spending in private nonresidential construction will grow 7% over the same period. We do not believe that growth in private construction spending will be consistent across the United States, but will instead be concentrated in certain regions. The private construction market represented 67% of our revenue in 2017.

In addition to the anticipated domestic demand growth in our end markets, we expect continued improvement in pricing, especially in our materials businesses. The PCA estimates that cement consumption will increase approximately 16% from 2018 to 2022, reflecting rising demand in the major end markets. We believe that the increased demand will drive higher cement pricing as production capacity in the United States tightens. The PCA projects consumption will exceed domestic U.S. cement capacity between 2019 and 2020.

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Historically, we have supplemented organic growth with acquisitions by strategically targeting attractive, new markets or expanding in existing markets. We consider population trends, employment rates, competitive landscape, private construction outlook, public funding and various other factors prior to entering a new market. In addition to analyzing macroeconomic data, we seek to establish, and believe that we have, a top three position in our local markets, which we believe supports improving profit margins and sustainable organic growth. This positioning provides local economies of scale and synergies, which benefits our profitability.

Our acquisition strategy, to date, has helped us to achieve scale and rapid growth, and we believe that significant opportunities remain for growth through acquisitions. We estimate that approximately 65% of the U.S. construction materials market is privately owned. Our management team maintains contact with over 300 private companies. These long‑standing relationships, cultivated over decades, have been the primary source for our past acquisitions and, we believe, will continue to be an important source for future acquisitions. We believe we offer a compelling value proposition for private company sellers, including secure ongoing stewardship of their legacy businesses.

Our Business Segments

We operate in 23 U.S. states and in British Columbia, Canada and have assets in 22 U.S. states and in British Columbia, Canada through our platforms that make up our operating segments: West; East; and Cement. The platform businesses in the West and East segments have their own management teams that report to a segment president. The segment presidents are responsible for overseeing the operating platforms, implementing best practices, developing growth opportunities and integrating acquired businesses. Acquisitions are an important element of our strategy, as we seek to enhance value through increased scale, efficiencies and cost savings within local markets.

· West Segment:  Our West segment includes operations in Texas, Utah, Colorado, Idaho, Wyoming, Oklahoma, Nevada and British Columbia, Canada. We supply aggregates, ready‑mix concrete, asphalt paving mix and paving and related services in the West segment. As of December 30, 2017, the West segment controlled approximately 1.1 billion tons of proven and probable aggregates reserves and $555.1 million of net property, plant and equipment and inventories (“hard assets”). During the year ended December 30, 2017, approximately 52% of our revenue was generated in the West segment.

· East Segment:  Our East segment serves markets extending across the Midwestern and Eastern United States, most notably in Kansas, Missouri, Virginia, Kentucky, North Carolina, South Carolina, Arkansas and Nebraska where we supply aggregates, ready‑mix concrete, asphalt paving mix and paving and related services. As of December 30, 2017, the East segment controlled approximately 1.7 billion tons of proven and probable aggregates reserves and $623.8 million of hard assets. During the year ended December 30, 2017, approximately 32% of our revenue was generated in the East segment.

· Cement Segment:  Our Cement segment consists of our Hannibal, Missouri and Davenport, Iowa cement plants and 10 distribution terminals along the Mississippi River from Minnesota to Louisiana. Our highly efficient plants are complemented by our integrated distribution system that spans the Mississippi River. We process solid and liquid waste into fuel from the plants, which can reduce the plants’ fuel costs by up to 50%. The Hannibal, Missouri plant is one of very fewfacilities in the United States that can process both hazardous and non-hazardous solid and liquid waste into fuel. As of December 30, 2017, the Cement segment controlled approximately 0.5 billion tons of proven and probable aggregates reserves, which serve its cement business, and $611.7 million of hard assets. During the year ended December 30, 2017, approximately 16% of our revenue was generated in the Cement segment.

Additional information concerning our total revenue, profit, assets employed and certain additional information attributable to each segment is included in “Note 20: Segment Information” of the “Notes to the Financial Statements” of our 2017 consolidated financial statements, which are included under Item 8 of this Form 10-K.

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Acquisition History

The following table lists acquisitions we have completed since August 2009:

Company	Date of Acquisition	Segment
Hamm, Inc.	August 25, 2009	East
Hinkle Contracting Company, LLC	February 1, 2010	East
Cornejo & Sons LLC and affiliates	April 16, 2010	East
Elmo Greer & Sons, LLC	April 20, 2010	East
Continental Cement LLC	May 27, 2010	Cement
Harshman Construction L.L.C. and Harshman Farms, Inc.	June 15, 2010	East
South Central Kentucky Limestone, LLC	July 23, 2010	East
Harper Contracting, Inc. and affiliates	August 2, 2010	West
Kilgore Pavement Maintenance, LLC and Kilgore Properties, LLC	August 2, 2010	West
Con-Agg of MO, L.L.C.	September 15, 2010	East
Altaview Concrete, LLC and affiliates	September 15, 2010	West
EnerCrest Products, Inc.	September 28, 2010	West
RK Hall Construction, Ltd and affiliates	November 30, 2010	West
Triple C Concrete, Inc.	January 14, 2011	West
Elam Construction, Inc.	March 31, 2011	West
Bourbon Limestone Company	May 27, 2011	East
Fischer Quarries, L.L.C.	May 27, 2011	East
B&B Resources, Inc. and affiliates	June 8, 2011	West
Grand Junction Concrete Pipe, Inc.	June 10, 2011	West
Industrial Asphalt, LLC and affiliates	August 2, 2011	West
J. D. Ramming Paving Co. LLC and affiliates	October 28, 2011	West
Norris Quarries, LLC	February 29, 2012	East
Kay & Kay Contracting, LLC	October 5, 2012	East
Sandco Inc.	November 30, 2012	West
Lafarge-Wichita	April 1, 2013	East
Westroc, LLC	April 1, 2013	West
Alleyton Resource Company LLC and affiliates	January 17, 2014	West
Troy Vines, Inc.	March 31, 2014	West
Buckhorn Materials, LLC and affiliate	June 9, 2014	East
Canyon Redi-Mix, Inc. and affiliate	July 29, 2014	West
Mainland Sand & Gravel ULC and affiliates	September 4, 2014	West
Southwest Ready Mix, LLC	September 19, 2014	West
Colorado County Sand & Gravel Co., LLC and affiliates	September 30, 2014	West
Concrete Supply of Topeka, Inc. and affiliates	October 3, 2014	East
Lewis & Lewis, Inc.	June 1, 2015	West
Davenport Assets	July 17, 2015	Cement
LeGrand Johnson Construction Co.	August 21, 2015	West
Pelican Asphalt Company, LLC.	December 11, 2015	West
American Materials Company	February 5, 2016	East
Boxley Materials Company	March 18, 2016	East
Sierra Ready Mix, LLC	April 29, 2016	West
Oldcastle Assets	May 20, 2016	East
Weldon Real Estate LLC	August 8, 2016	East
H. C. Rustin Corporation	August 19, 2016	West
RD Johnson Excavating Company LLC and affiliate	August 26, 2016	East
Angelle Assets	August 30, 2016	Cement
Midland Concrete Ltd.	October 3, 2016	West
Everist Materials, LLC.	January 30, 2017	West
Razorback Concrete Company	February 24, 2017	East
Sandidge Manufacturing, Inc.	March 17, 2017	East
Hanna’s Bend Aggregate Ltd	April 3, 2017	West
Carolina Sand, LLC	April 3, 2017	East
Winvan Paving Ltd.	May 1, 2017	West
Glasscock Company, Inc. and affiliate	May 12, 2017	East
Ready Mix Concrete of Somerset and affiliate	July 28, 2017	East

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Company	Date of Acquisition	Segment
Great Southern Ready Mix LLC and affiliates	July 31, 2017	West
Northwest Ready Mix, Inc. and affiliate	August 1, 2017	West
Georgia Stone Products, LLC.	August 3, 2017	East
Alan Ritchey Materials Company LC	August 20, 2017	West
Columbia Silica Sand, Inc. and affiliates	September 8, 2017	East
Stockman Quarry LLC and affiliate	October 6, 2017	East
Metro Ready Mix, LLC	January 5, 2018	West
Price Construction, Ltd and affiliates	January 12, 2018	West
Mertens Construction Company, Inc. and affiliates	January 26, 2018	East

Our End Markets

Public Infrastructure.Public infrastructure construction includes spending by federal, state and local governments for highways, bridges, airports, schools, public buildings and other public infrastructure projects. Public infrastructure spending has historically been more stable than private sector construction. We believe that public infrastructure spending is less sensitive to interest rate changes and economic cycles and often is supported by multi-year federal and state legislation and programs. A significant portion of our revenue is derived from public infrastructure projects. As a result, the supply of federal and state funding for public infrastructure highway construction significantly affects our public infrastructure end-use business.

In the past, public infrastructure sector funding was underpinned by a series of six‑year federal highway authorization bills. Federal funds are allocated to the states, which are required to match a portion of the federal funds they receive. Federal highway spending uses funds predominantly from the Federal Highway Trust Fund, which derives its revenue from taxes on diesel fuel, gasoline and other user fees. The dependability of federal funding allows the state departments of transportation to plan for their long term highway construction and maintenance needs. The Fixing America’s Surface Transportation (“FAST”) Act was signed into law on December 4, 2015 and authorizes $305 billion of funding between 2016 and 2020. It extends five years and provides funding for surface transportation infrastructure, including roads, bridges, transit systems, and the rail transportation network.

Residential Construction.  Residential construction includes single family homes and multi‑family units such as apartments and condominiums. Demand for residential construction is influenced by employment prospects, new household formation and mortgage interest rates. In recent years, residential construction demand has been growing, although the rate of growth has varied across the U.S.

Nonresidential Construction.  Nonresidential construction encompasses all privately financed construction other than residential structures. Demand for nonresidential construction is driven by population and economic growth. Population growth spurs demand for stores, shopping centers and restaurants. Economic growth creates demand for projects such as hotels, office buildings, warehouses and factories, although growth rates vary across the U.S. The supply of nonresidential construction projects is affected by interest rates and the availability of credit to finance these projects.

Our Competitive Strengths

Leading market positions.  We believe each of our operating companies has a top three market share position in its local market area achieved through their respective, extensive operating histories, averaging over 30 years. We believe we are a top 10 supplier of aggregates, a top 15 producer of cement and a major producer of ready‑mix concrete and asphalt paving mix in the United States by volume. We focus on acquiring aggregate-based companies that have leading local market positions, which we seek to enhance by building scale through additional bolt-on acquisitions. The construction materials industry is highly local in nature due to transportation costs from the high weight‑to‑value ratio of the products. Given this dynamic, we believe achieving local market scale provides a competitive advantage that drives growth and profitability for our business. We believe that our ability to prudently acquire, rapidly integrate and improve multiple businesses has enabled, and will continue to enable, us to become market leaders.

Operations positioned to benefit from attractive industry fundamentals.  We believe the construction materials industry has attractive fundamentals, characterized by high barriers to entry and a stable competitive environment in the majority of markets. Barriers to entry are created by scarcity of raw material resources, limited efficient distribution range, asset intensity of equipment, land required for quarry operations and a time‑consuming and complex regulatory

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and permitting process. According to the January 2018 U.S. Geological Survey, aggregates pricing in the United States had increased in 64 of the previous 75 years, with growth accelerating since 2002 as continuing resource scarcity in the industry has led companies to focus increasingly on improved pricing strategies.

One contributing factor that supports pricing growth through the economic cycles is that aggregates and asphalt paving mix have significant exposure to public road construction, which has demonstrated growth over the past 30 years, even during times of broader economic weakness. The majority of public road construction spending is funded at the state level through the states’ respective departments of transportation. Texas, Utah and Missouri, three of the states in which we have had our highest revenues, have funds with certain constitutional protections for revenue sources dedicated for transportation projects. These dedicated, earmarked funding sources limit the negative effect current state deficits may have on public spending. As a result, we believe our business’ profitability is significantly more stable than most other building product subsectors.

Vertically‑integrated business model.  We generate revenue across a spectrum of related products and services. Approximately 25% of the aggregates used in our products and services are internally supplied. Our vertically‑integrated business model enables us to operate as a single source provider of materials and paving and related services, creating cost, convenience and reliability advantages for our customers, while at the same time creating significant cross‑marketing opportunities among our interrelated businesses. We believe this creates opportunities to increase aggregates volumes, optimize margin at each stage of production, foster more stable demand for aggregates through a captive demand outlet, create a competitive advantage through the efficiency gains, convenience and reliability provided to customers and enhance our acquisition strategy by providing a greater population of target companies.

Attractive diversity, scale and product portfolio.  We operate in 43 metropolitan statistical areas across 23 U.S. states and in British Columbia, Canada. Between the year ended December 28, 2013 and the year ended December 30, 2017, we grew our revenue by 111% and brought substantial additional scale and geographic diversity to our operations. In the year ended December 30, 2017, 45.3% of our operating income increase came from the West segment, 31.1% from the Cement segment and 23.6% from East segment, excluding corporate charges. We have approximately 3.3 billion tons of proven and probable aggregates reserves serving our aggregates and cement business. We estimate that the useful life of our proven and probable reserves serving our aggregates and cement businesses are approximately 80 years and 270 years, respectively, based on the average production rates in 2017 and 2016.

Our dry process cement plants in Hannibal, Missouri and Davenport, Iowa were commissioned in 2008 and 1981, respectively. These low-cost cement plants have efficient manufacturing capabilities and are strategically located on the Mississippi River and complemented by an extensive network of river and rail fed distribution terminals. Our terminal network can accept imported cement to supplement our internal production capacity as demand and market conditions dictate. According to PCA forecasts, consumption of cement in the United States is expected to exceed production capacity between 2019 and 2020. Due to the location of our Hannibal and Davenport plants on the Mississippi River, in 2017, approximately 70% of cement distributed to our terminals and customers was shipped by barge, which is generally more cost-effective than truck transport.

Proven ability to incorporate new acquisitions and grow businesses.  We have acquired dozens of businesses, successfully integrating them into three segments through the implementation of operational improvements, industry‑proven information technology systems, a comprehensive safety program and best in class management programs. A typical acquisition generally involves retaining the local management team of the acquired business, maintaining operational decisions at the local level, implementing common back-office systems, driving best practices, and providing management support, strategic direction and financial capital for investment under a leadership directed by Tom Hill, our President and Chief Executive Officer, a 35‑year industry veteran. These acquisitions have helped us achieve significant revenue growth, from $0.4 billion in 2010 to $1.9 billion in 2017.

Experienced and proven leadership driving organic growth and acquisition strategy.  Our management team has a proven track record of creating value. In addition to Mr. Hill, our management team, including corporate and segment managers, corporate development, finance executives and other heavy side industry operators, has extensive experience in the industry. Our management team has a proven track record of executing and successfully integrating acquisitions in the sector.

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Our Business Strategy

Leverage vertically‑integrated and strategically located operations for growth.  We believe that our vertical integration of construction materials, products and services is a significant competitive advantage that we will leverage to grow share in our existing markets and enter into new markets. A significant portion of materials used to produce our products and provide services to our customers is internally supplied, which enables us to operate as a single source provider of materials, products and paving and related services. This creates cost, convenience and reliability advantages for our customers and enables us to capture additional value throughout the supply chain, while at the same time creating significant cross‑marketing opportunities among our interrelated businesses.

Enhance margins and free cash flow generation through implementation of operational improvements.  Our management team includes individuals with decades of experience in our industry and proven success in integrating acquired businesses and organically growing operations. We have enhanced margins through proven profit optimization plans, leveraging information technology and financial systems to control costs, managing working capital and achieving scale‑driven purchasing synergies and fixed overhead control and reduction. Our segment presidents, supported by our operations, development, risk management, information technology and finance teams, drive the implementation of detailed and thorough profit optimization plans for each acquisition post close, which typically includes, among other things, implementation of a systematic pricing strategy, safety, commercial strategies, operational benefits, efficiency improvement plans and business-wide  cost reduction techniques.

Expand local positions in the most attractive markets through targeted capital investments and bolt‑on acquisitions.  We seek to expand our business through organic growth and bolt‑on acquisitions in each of our local markets. Our acquisition strategy involves acquiring platforms that serve as the foundation for continued incremental and complementary growth via locally situated bolt‑on acquisitions to these platforms. We believe that increased local market scale drives profitable growth through efficiencies. Our existing platform of operations is expected to enable us to grow significantly as we expand in our existing markets. In pursuing our growth strategy, we believe that our balance sheet and liquidity position will enable us to acquire many of the bolt‑on acquisitions and platforms that we seek to purchase, but we may also pursue larger acquisition transactions that may require us to raise additional equity capital and or debt from time to time. Consistent with this strategy, we regularly evaluate potential acquisition opportunities, including ones that would be significant to us. We cannot predict the timing of any contemplated transactions.

Drive profitable growth through strategic acquisitions.  Our growth to a top‑10 U.S. construction materials company has been a result of the successful execution of our acquisition strategy and implementation of best practices to drive organic growth. Based on aggregates sales, in volumes, we believe that we are currently a top‑10 player, which we achieved within five years of our first acquisition. We believe that the relative fragmentation of our industry creates an environment in which we can continue to acquire companies at attractive valuations and increase scale and diversity over time through strategic acquisitions in markets adjacent to our existing markets within the states where we currently operate, as well as into additional states as market and competitive conditions support further growth.

Capitalize on recovery in the U.S. economy and construction markets.  Given the nation’s aging infrastructure and considering longstanding historical spending trends, we expect U.S. infrastructure investment to grow over time. We believe we are well positioned to capitalize on any such increase in investment.  The residential and nonresidential markets are showing positive growth signs in varying degrees across our markets. The PCA forecasts total housing starts to accelerate to 1.34 million in the United States by 2022. The American Institute of Architects’ Consensus Construction Forecast projects nonresidential construction to grow 3.6% in 2018. We believe that we have sufficient exposure to the public infrastructure, residential and nonresidential end markets to benefit from a potential recovery in all of our markets.

Our Industry

The U.S. construction materials industry is composed of four primary sectors: aggregates; cement; ready‑mix concrete; and asphalt paving mix. Each of these materials is widely used in most forms of construction activity. Participants in these sectors typically range from small, privately‑held companies focused on a single material, product or market to multinational corporations that offer a wide array of construction materials and services. Competition is constrained in part by the distance materials can be transported efficiently, resulting in predominantly local or regional operations. Due to the lack of product differentiation, competition for all of our products is predominantly based on price and, to a lesser extent, quality of products and service. As a result, the prices we charge our customers are not likely to

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be materially different from the prices charged by other producers in the same markets. Accordingly, our profitability is generally dependent on the level of demand for our products and our ability to control operating costs.

Transportation infrastructure projects, driven by both federal and state funding programs, represent a significant share of the U.S. construction materials market. Federal funds are allocated to the states, which are required to match a portion of the federal funds they receive. Federal highway spending uses funds predominantly from the Federal Highway Trust Fund, which derives its revenue from taxes on diesel fuel, gasoline and other user fees. The dependability of federal funding allows the state departments of transportation to plan for their long term highway construction and maintenance needs. Funding for the existing federal transportation funding program extends through 2020. With the nation’s infrastructure aging, there is increased demand by states and municipalities for long-term federal funding to support the construction of new roads, highways and bridges in addition to the maintaining the existing infrastructure. The U.S. President and his administration have called for, among other things, an infrastructure stimulus plan. However, there is currently a lack of clarity around both the timing and details of any such infrastructure plan and the impact, if any, it or other proposed changes in law and regulations may have on our business.

In addition to federal funding, state, county and local agencies provide highway construction and maintenance funding. Our four largest states by revenue, Texas, Utah, Kansas and Missouri, represented approximately 21%, 13%, 12% and 9%, respectively, of our total revenue in 2017.

Our Industry and Operations

Demand for our products is observed to have low elasticity in relation to prices. We believe this is partially explained by the absence of competitive replacement products. We do not believe that increases in our products’ prices are likely to affect the decision to undertake a construction project since these costs usually represent a small portion of total construction costs.

We operate our construction materials and products and paving and related services businesses through local management teams, which work closely with our end customers to deliver the materials, products and services that meet each customer’s specific needs for a project. We believe that this strong local presence gives us a competitive advantage by allowing us to obtain a unique understanding for the evolving needs of our customers.

We have operations in 23 U.S. states and in British Columbia, Canada. Our business in each region is vertically‑integrated. We supply aggregates internally for the production of cement, ready‑mix concrete and asphalt paving mix and a significant portion of our asphalt paving mix is used internally by our paving and related services businesses. In the year ended December 30, 2017, approximately 75% of our aggregates production was sold directly to outside customers with the remaining amount being further processed by us and sold as a downstream product. In addition, we operate a municipal waste landfill in our East segment, and have construction and demolition debris landfills and liquid asphalt terminal operations in our West and East segments.

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Approximately 73% of our asphalt paving mix was installed by our paving and related services businesses in the year ended December 30, 2017. We charge a market price and competitive margin at each stage of the production process in order to optimize profitability across our operations. Our production value chain is illustrated as follows:

Aggregates

Aggregates are key material components used in the production of cement, ready‑mix concrete and asphalt paving mixes for the public infrastructure, residential and nonresidential end markets and are also widely used for various applications and products, such as road and building foundations, railroad ballast, erosion control, filtration, roofing granules and in solutions for snow and ice control. Generally extracted from the earth using surface or underground mining methods, aggregates are produced from natural deposits of various materials such as limestone, sand and gravel, granite and trap rock. Aggregates are produced mainly from blasting hard rock from quarries and then crushing and screening it to various sizes to meet our customers’ needs. The production of aggregates also involves the extraction of sand and gravel, which requires less crushing, but still requires screening for different sizes. Aggregate production utilizes capital intensive heavy equipment which includes the use of loaders, large haul trucks, crushers, screens and other heavy equipment at quarries. Once extracted, processed and/or crushed and graded on-site into crushed stone, concrete and masonry sand, specialized sand, pulverized lime or agricultural lime, they are supplied directly to their end use or incorporated for further processing into construction materials and products, such as cement, ready‑mix concrete and asphalt paving mix. The minerals are processed to meet customer specifications or to meet industry standard sizes. Crushed stone is used primarily in ready‑mix concrete, asphalt paving mix, and the construction of road base for highways.

We believe that the long‑term growth of the market for aggregates is predominantly driven by growth in population, employment and households, which in turn affects demand for transportation infrastructure and nonresidential construction, including stores, shopping centers and restaurants. While short‑term demand for aggregates fluctuates with economic cycles, the declines have historically been followed by strong recovery, with each peak establishing a new historical high. We believe we are in the midst of an extended economic recovery.

We mine limestone, gravel, and other natural resources from 103 crushed stone quarries and 102 sand and gravel deposits throughout the United States and in British Columbia, Canada. Our extensive network of quarries, plants and facilities, located throughout the regions in which we operate, enables us to have a nearby operation to meet the needs of customers in each of our markets. As of December 30, 2017, we had approximately 3.3 billion tons of proven and probable reserves of recoverable stone, and sand and gravel of suitable quality for economic extraction. Our estimate is based on drilling and studies by geologists and engineers, recognizing reasonable economic and operating restraints as to maximum depth of extraction and permit or other restrictions. Reported proven and probable reserves include only quantities that are owned or under lease, and for which all required zoning and permitting have been obtained. Of the 3.3 billion tons of proven and probable aggregates reserves, 1.9 billion, or 57%, are located on owned land and 1.4 billion are located on leased land.

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According to the August 2017 U.S. Geological Survey, approximately 1.5 billion tons of crushed stone with a value of approximately $15.1 billion was produced in the United States in 2016, which is consistent with the 1.5 billion tons produced in 2015. Sand and gravel production was approximately 1.0 billion tons in 2016 and 2015, valued at approximately $7.6 billion in 2016. The U.S. aggregate industry is highly fragmented relative to other building product markets, with numerous participants operating in localized markets and the top ten players controlling approximately 35% of the national market in 2017. In January 2017, the U.S. Geological Survey reported that a total of 1,430 companies operating 3,700 quarries and 82 underground mines produced or sold crushed stone in 2016 in the United States. This fragmentation is a result of the cost of transporting aggregates, which typically limits producers to a market area within approximately 40 miles of their production facilities.

Transportation costs are a major variable in determining aggregate pricing and marketing radius. The cost of transporting aggregate products from the plant to the market often equates to or exceeds the sale price of the product at the plant. As a result of the high transportation costs and the large quantities of bulk material that have to be shipped, finished products are typically marketed locally. High transportation costs are responsible for the wide dispersion of production sites. Where possible, construction material producers maintain operations adjacent to highly populated areas to reduce transportation costs and enhance margins. However, more recently, rising land values combined with local environmental concerns have been forcing production sites to move further away from the end‑use locations.

Each quarry location is unique with regards to demand for each product, proximity to competition and distribution network. Each of our aggregates operations is responsible for the sale and marketing of its aggregates products. Approximately 75% of our aggregates production is sold directly to outside customers and the remaining amount is further processed by us and sold as a downstream product. Even though aggregates are a commodity product, we work to optimize pricing depending on the site location, availability of a particular product, customer type, project type and haul cost. We sell aggregates to internal downstream operations at market prices.

A significant portion of annual demand for aggregates is derived from large public infrastructure and highway construction projects. According to the Montana Contractors’ Association, approximately 38,000 tons of aggregate are required to construct a one mile stretch of a typical four‑lane interstate highway. Highways located in markets with significant seasonal temperature variances are particularly vulnerable to freeze‑thaw conditions that exert excessive stress on pavement and lead to more rapid surface degradation. Surface maintenance repairs, as well as general highway construction, occur in the warmer months, resulting in a majority of aggregates production and sales in the period from April through November in most states.

The primary national players are large vertically‑integrated companies, including Vulcan Materials Company, Martin Marietta Materials, Inc. (“Martin Marietta”), CRH plc, Heidelberg Cement plc (“Heidelberg”), LafargeHolcim and Cemex, S.A.B. de C.V. (“Cemex”), that have a combined estimated market share of approximately 30%. Our major aggregates competitors by segment include the following:

· West—CRH plc, Heidelberg, Martin Marietta, CEMEX, LafargeHolcim and various local suppliers.

· East—Martin Marietta, CRH plc, LafargeHolcim, Heidelberg, Vulcan Materials Company and various local suppliers.

We believe we have a strong competitive advantage in aggregates through our well located reserves and assets in key markets, high quality reserves and our logistic networks. We further share and implement best practices relating to safety, strategy, sales and marketing, production, and environmental and land management. Our vertical integration and local market knowledge enable us to maintain a strong understanding of the needs of our aggregates customers. In addition, our companies have a reputation for responsible environmental stewardship and land restoration, which assists us in obtaining new permits and new reserves.

Cement

Portland cement, an industry term for the common cement in general use around the world, is made from a combination of limestone, shale, clay, silica and iron ore. It is a fundamental building material consumed in several stages throughout the construction cycle of public infrastructure, residential and nonresidential projects. It is a binding agent that, when mixed with sand or aggregates and water, produces either ready‑mix concrete or mortar and is an

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important component of other essential construction materials. Cement is sold either in bulk or as branded products in bags, depending on its final user. Few construction projects can take place without utilizing cement somewhere in the design, making it a key ingredient used in the construction industry. The majority of all cement shipments are sent to ready‑mix concrete operators. The remaining shipments are directed to concrete paving projects or manufacturers of concrete-related products such as block and precast. Sales are made on the basis of competitive prices in each market and, as is customary in the industry, we do not typically enter into long‑term sales contracts. Nearly two‑thirds of U.S. consumption occurs between May and November, coinciding with end‑market construction activity.

The principal raw materials in cement are a blend of approximately 80% limestone and approximately 5% shale, with the remaining raw materials being clay and iron ore. Generally, the limestone and shale are mined from quarries located on site with the production plant. These core ingredients are blended and crushed into a fine grind and then preheated and ultimately introduced into a kiln heated to over 3,000°F. Under this extreme heat, a chemical transformation occurs uniting the elements to form a new substance with new physical and chemical characteristics. This new substance is called clinker and it is formed into pieces about the size of marbles. The clinker is then cooled and later ground into a fine powder that then is classified as Portland cement.

Cement production in the United States is distributed among 92 production facilities located across a majority of the states and is a capital‑intensive business with variable costs dominated by raw materials and energy required to fuel the kiln. Most U.S. cement producers are owned by large foreign companies operating in multiple international markets. Our largest competitors include LafargeHolcim and Buzzi Unicem. Construction of cement production facilities is highly capital intensive and requires long lead times to complete engineering design, obtain regulatory permits, acquire equipment and construct a plant.

As reported by the PCA in the 2017 United States Cement Industry Annual Yearbook, consumption is down significantly from the industry peak of approximately 140.9 million tons in 2005 to approximately 104.0 million tons in 2016 consistent with a decline in U.S. construction activity. U.S. cement consumption has at times outpaced domestic production capacity with the shortfall being supplied with imports, primarily from Canada, Greece, Turkey, China and South Korea. The PCA reports that cement imports remain below their peak of approximately 39.6 million tons in 2006 versus approximately 15.0 million tons in 2016. However, the PCA estimates that demand will exceed domestic supply between 2019 and 2020.

We operate a highly‑efficient, low-cost integrated cement manufacturing and distribution network through our cement plants in Hannibal, Missouri, 100 miles north of St. Louis, and Davenport, Iowa and our 10 terminals along the Mississippi River from Minnesota to Louisiana. The combined potential capacity at our Hannibal and Davenport cement plants is approximately 2.4 million short tons per annum. We also operate on‑site waste fuel processing facilities at the plants, which can reduce plant fuel costs by up to 50%. Our Hannibal plant is one of very few with hazardous waste fuel facilities permitted and operating out of 92 total cement plants in the United States. Competitive factors include price, reliability of deliveries, location, quality of cement and support services. With two cement plants, on‑site raw material supply, a network of cement terminals, and longstanding customer relationships, we believe we are well positioned to serve our customers.

Cement is a product that is costly to transport. Consequently, the radius within which a typical cement plant is competitive is typically limited to 150 miles from any shipping/distribution point. However, access to rail and barge can extend the distribution radius significantly. With both of our plants located strategically on the Mississippi River, we are able to distribute cement from both of our plants by truck, rail and barge directly to customers or to our 10 storage and distribution terminals along the Mississippi River. Our Hannibal and Davenport plants are strategically located on the Mississippi River and, consequently, in 2017, approximately 70% of cement distributed to our terminals and customers was shipped by barge, which is significantly more cost‑effective than truck transport.

On December 20, 2012, the EPA signed the Portland Cement – Maximum Achievable Control Technology (“PC‑MACT”), with which compliance was required in September 2015, notwithstanding certain extensions granted to individual cement plants to September 2016. Our Hannibal and Davenport cement plants utilize alternative fuels, hazardous and non‑hazardous at Hannibal and non‑hazardous at Davenport, as well as coal, natural gas and petroleum coke and, as a result, are subject to the Hazardous Waste Combustor of the National Emission Standards for Hazardous Air Pollutants (“HWC‑MACT”) and Commercial/Industrial Solid Waste Incinerators (“CISWI”) standards, respectively, rather than PC‑MACT standards. The costs to maintain compliance with the existing HWC‑MACT and CISWI standards are not expected to be material.

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Ready‑mix Concrete

Ready‑mix concrete is one of the most versatile and widely used materials in construction today. Its flexible recipe characteristics allow for an end product that can assume almost any color, shape, texture and strength to meet the many requirements of end users that range from bridges, foundations, skyscrapers, pavements, dams, houses, parking garages, water treatment facilities, airports, tunnels, power plants, hospitals and schools. The versatility of ready‑mix concrete gives engineers significant flexibility when designing these projects.

Cement, coarse aggregate, fine aggregate, water and admixtures are the primary ingredients in ready‑mix concrete. The cement and water are combined and a chemical reaction process called hydration occurs whereby a paste is produced. This paste or binder represents between 15 to 20% of the volume of the mix that coats each particle of aggregate and serves as the agent that binds the aggregates together, according to the National Ready Mixed Concrete Association (“NRMCA”). The aggregates represent approximately 60 to 75% of the mix by volume, with a small portion of volume (5 to 8%) consisting of entrapped air that is generated by using air entraining admixtures. Once fully hydrated, the workable concrete will then harden and take on the shape of the form in which it was placed.

The quality of a concrete mix is generally determined by the weight ratio of water to cement. Higher quality concrete is produced by lowering the water‑cement ratio as much as possible without sacrificing the workability of the fresh concrete. Specialty admixtures such as high range water reducers can aid in achieving this condition without sacrificing quality. Competition among ready‑mix concrete suppliers is generally based on product characteristics, delivery times, customer service and price. Product characteristics such as tensile strength, resistance to pressure, durability, set times, ease of placing, aesthetics, workability under various weather and construction conditions as well as environmental effect are the main criteria that our customers consider for selecting their product. Our quality assurance program produces results in excess of design strengths while optimizing material costs. Additionally, we believe our strategic network of locations and superior customer service gives us a competitive advantage relative to other producers. Our ready‑mix concrete operations compete with CEMEX in Texas and Nevada and CRH plc in Utah and Colorado and various other privately owned competitors in other parts of the West and East segments.

Other materials commonly used in the production of ready‑mix concrete include fly‑ash, a waste by‑product from coal burning power plants, silica fume, a waste by‑product generated from the manufacture of silicon and ferro‑silicon metals, and ground granulated blast furnace slag, a by‑product of the iron and steel manufacturing process. All of these products have cementitious properties that enhance the strength, durability and permeability of the concrete. These materials are available directly from the producer or via specialist distributors who intermediate between the ready‑mix concrete producers and the users.

Given the high weight‑to‑value ratio, delivery of ready‑mix concrete is typically limited to a one‑hour haul from a production plant and is further limited by a 90 minute window in which newly‑mixed concrete must be poured to maintain quality and performance. As a result of the transportation constraints, the ready‑mix concrete market is highly localized, with an estimated 5,500 ready‑mix concrete plants in the United States according to the NRMCA. According to the NRMCA, 343.0 million cubic yards of ready‑mix concrete were produced in 2016, which is a 2% increase from the 336.0 million cubic yards produced in 2015 but a 25% decrease from the industry peak of 458.3 million cubic yards in 2005.

We believe our West and East segments are leaders in the supply of ready‑mix concrete in their respective markets. The West segment has ready‑mix concrete operations in the Texas, Utah, Nevada, Idaho and Colorado markets. Our East segment supplies ready‑mix concrete in the Kansas, Missouri, Arkansas, South Carolina, Kentucky and Virginia markets and surrounding areas. We operated 66 ready-mix concrete plants and over 600 concrete delivery trucks in the West segment and 56 ready-mix concrete plants and over 400 concrete delivery trucks in the East segment as of December 30, 2017. Our aggregates business serves as the primary source of the raw materials for our concrete production, functioning essentially as a supplier to our ready‑mix concrete operations. Different types of concrete include lightweight concrete, high performance concrete, self‑compacting/consolidating concrete and architectural concrete and are used in a variety of activities ranging from building construction to highway paving.

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Asphalt Paving Mix

Asphalt paving mix is the most common roadway material used today. It is a versatile and essential building material that has been used to surface 94% of the more than 2.7 million miles of paved roadways in the United States, according to the National Asphalt Pavement Association (“NAPA”).

Typically, asphalt paving mix is placed in three distinct layers to create a flexible pavement structure. These layers consist of a base course, an intermediate or binder course, and a surface or wearing course. These layers vary in thicknesses of three to six inches for base mix, two to four inches for intermediate mix and one to two inches for surface mix.

Asphalt paving mix is produced by first heating carefully measured amounts of aggregates at high temperatures to remove the moisture from the materials in an asphalt paving mix plant. As the aggregates are heated, liquid asphalt is then introduced to coat the aggregates. Depending on the specifications of a particular mix, recycled asphalt may be added to the mix, which lowers the production costs. The aggregates used for production of these products are generally supplied from our quarries or sand and gravel plants. The ingredients are metered, mixed and brought up to a temperature in excess of 300°F before being placed in a truck and delivered to the jobsite for final placement. According to NAPA, the components of asphalt paving mix by weight are approximately 95% aggregates and 5% asphalt cement, a petroleum-based product that serves as the binder.

Asphalt pavement is generally 100% recyclable and reusable and is the most reused and recycled pavement material in the United States. Reclaimed asphalt pavement can be incorporated into new pavement at replacement rates in excess of 30% depending upon the mix and the application of the product. We actively engage in the recycling of previously used asphalt pavement and concrete. This material is crushed and repurposed in the construction cycle. Approximately 76.9 million tons of used asphalt is recycled annually by the industry according to a November 2017 NAPA survey.As of December 30, 2017, we operated 27 and 24 asphalt paving mix plants in the West and East segments, respectively. Approximately 96% of our plants can utilize recycled asphalt pavement.

The use of warm mix asphalt (“WMA”) or “green” asphalt is gaining popularity. The immediate benefit to producing WMA is the reduction in energy consumption required by burning fuels to heat traditional hot mix asphalt (“HMA”) to temperatures in excess of 300°F at the production plant. These high production temperatures are needed to allow the asphalt binder to become viscous enough to completely coat the aggregate in the HMA, have good workability during laying and compaction, and durability during traffic exposure. According to the Federal Highway Administration, WMA can reduce the temperature by 50 to 70°F, resulting in lower emissions, fumes and odors generated at the plant and the paving site.

Approximately 73% of the asphalt paving mix we produce is installed by our own paving crews. The rest is sold on a per ton basis to road contractors, state departments of transportation and local agencies. Asphalt paving mix is used by our paving crews and by our customers primarily for the construction of roads, driveways and parking lots.

According to NAPA, there were approximately 3,500 asphalt paving mix plants in the United States in 2016 and an estimated 374.9 million tons of asphalt paving mix was produced in 2016 compared to 364.9 million tons produced in 2015. Our asphalt paving mix operations compete with CRH plc and other local suppliers. Based on availability of internal aggregate supply, quality, operating efficiencies, and location advantages, we believe we are well positioned vis‑à‑vis our competitors.

Asphalt paving mix is generally applied at high temperatures. Prolonged exposure to air causes the mix to lose temperature and harden. Therefore, delivery is typically within close proximity to the asphalt paving mix plant. Local market demand, proximity to competition, transportation costs and supply of aggregates and liquid asphalt vary widely from market to market. Most of our asphalt operations use a combination of company‑owned and hired haulers to deliver materials to job sites.

As part of our vertical integration strategy, we provide asphalt paving and related services to both the private and public infrastructure sectors as either a prime or sub‑contractor. These services complement our construction materials and products businesses by providing a reliable downstream outlet, in addition to our external distribution channels.

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Our asphalt paving and related services businesses bid on both private construction and public infrastructure projects in their respective local markets. We only provide paving and related services operations as a complement to our aggregates operations, which we believe is a major competitive strength. Factors affecting competitiveness in this business segment include price, estimating abilities, knowledge of local markets and conditions, project management, financial strength, reputation for quality and the availability of machinery and equipment.

Contracts with our customers are primarily fixed price or fixed unit price. Under fixed unit price contracts, we provide materials or services at fixed unit prices (for example, dollars per ton of asphalt placed). While the fixed unit price contract shifts the risk of estimating the quantity of units required for a particular project to the customer, any increase in our unit cost over the bid amount, whether due to inflation, inefficiency, errors in our estimates or other factors, is borne by us unless otherwise provided in the contract. Most of our contracts contain adjusters for changes in liquid asphalt prices.

Customers

Our business is not dependent on any single customer or a few customers. Therefore, the loss of any single or particular small number of customers would not have a material adverse effect on any individual respective market in which we operate or on us as a whole. No individual customer accounted for more than 10% of our 2017 revenue.

Seasonality

Use and consumption of our products fluctuate due to seasonality. Nearly all of the products used by us, and by our customers, in the private construction or public infrastructure industries are used outdoors. Our highway operations and production and distribution facilities are also located outdoors. Therefore, seasonal changes and other weather‑related conditions, in particular extended rainy and cold weather in the spring and fall and major weather events, such as hurricanes, tornadoes, tropical storms and heavy snows, can adversely affect our business and operations through a decline in both the use of our products and demand for our services. In addition, construction materials production and shipment levels follow activity in the construction industry, which typically occurs in the spring, summer and fall. Warmer and drier weather during the second and third quarters of our fiscal year typically result in higher activity and revenue levels during those quarters. The first quarter of our fiscal year typically has lower levels of activity due to weather conditions.

Backlog

Our products are generally delivered upon receipt of orders or requests from customers, or shortly thereafter. Accordingly, the backlog associated with product sales is converted into revenue within a relatively short period of time. Inventory for products is generally maintained in sufficient quantities to meet rapid delivery requirements of customers. Therefore, a period over period increase or decrease of backlog does not necessarily result in an improvement or a deterioration of our business. Our backlog includes only those products and projects for which we have obtained a purchase order or a signed contract with the customer and does not include products purchased and sold or services awarded and provided within the period.

Subject to applicable contract terms, substantially all contracts in our backlog may be cancelled or modified by our customers. Historically, we have not been materially adversely affected by contract cancellations or modifications. As a vertically‑integrated business, approximately 25% of aggregates sold were used internally in our ready‑mix concrete and asphalt paving mixes and approximately 73% of the asphalt paving mix was laid by our paving crews during the year ended December 30, 2017. Our backlog as of December 30, 2017, was 15.6 million tons of aggregates, 0.9 million cubic yards of ready‑mix concrete, 2.0 million tons of asphalt and $294.9 million of construction services, which includes the value of the aggregate and asphalt tons and ready‑mix concrete cubic yards that are expected to be sourced internally.

Intellectual Property

We do not own or have a license or other rights under any patents that are material to our business.

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Corporate Information

Summit Materials, Inc. and Summit Materials, LLC were formed under the laws of the State of Delaware on September 23, 2014 and September 24, 2008, respectively. Our principal executive office is located at 1550 Wynkoop Street, 3rd Floor, Denver, Colorado 80202. Through its predecessor, Summit Inc. commenced operations in 2009 when Summit Holdings was formed. Our telephone number is (303) 893-0012.

Employees

As of December 30, 2017 we had approximately 6,000 employees, of whom approximately 80% were hourly workers and the remainder were salaried employees. Because of the seasonal nature of our industry, many of our hourly and certain of our salaried employees are subject to seasonal layoffs. The scope of layoffs varies greatly from season to season as they are predominantly a function of the type of projects in process and the weather during the late fall through early spring.

Approximately 7% of our employees are union members, with whom we believe we enjoy a satisfactory working relationship.

Legal Proceedings

We are party to certain legal actions arising from the ordinary course of business activities. While the ultimate results of claims and litigation cannot be predicted with certainty, management expects that the ultimate resolution of all current pending or threatened claims and litigation will not have a material effect on our consolidated financial condition, results of operations or liquidity.

Pursuant to an Administrative Order on Consent with the Missouri Department of Natural Resources, Continental Cement paid a penalty of $75,000 relating to alleged past violations of air pollution control requirements at its Hannibal, Missouri facility.  Recent alleged additional violations of environmental requirements may result in the payment of further penalties under that Order, which although anticipated to be immaterial to us, may in aggregate with the prior $75,000 penalty, exceed $100,000.

Environmental and Government Regulation

We are subject to federal, state, provincial and local laws and regulations relating to the environment and to health and safety, including noise, discharges to air and water, waste management including the management of hazardous waste used as a fuel substitute in our cement plants, remediation of contaminated sites, mine reclamation, operation and closure of landfills and dust control and zoning, land use and permitting. Our failure to comply with such laws and regulations can result in sanctions such as fines or the cessation of part or all of our operations. From time to time, we may also be required to conduct investigation or remediation activities. There also can be no assurance that our compliance costs or liabilities associated with such laws and regulations or activities will not be significant.

In addition, our operations require numerous governmental approvals and permits. Environmental operating permits are subject to modification, renewal and revocation and can require us to make capital, maintenance and operational expenditures to comply with the applicable requirements. Stricter laws and regulations, or more stringent interpretations of existing laws or regulations, may impose new liabilities on us, reduce operating hours, require additional investment by us in pollution control equipment or impede our opening new or expanding existing plants or facilities. We regularly monitor and review our operations, procedures and policies for compliance with environmental laws and regulations, changes in interpretations of existing laws and enforcement policies, new laws that are adopted, and new requirements that we anticipate will be adopted that could affect our operations.

Multiple permits are required for our operations, including those required to operate our cement plants. Applicable permits may include conditional use permits to allow us to operate in certain areas absent zoning approval and operational permits governing, among other matters, air and water emissions, dust, particulate matter and storm water management and control. In addition, we are often required to obtain bonding for future reclamation costs, most commonly specific to restorative grading and seeding of disturbed surface areas.

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Like others in our industry, we expend substantial amounts to comply with applicable environmental laws and regulations and permit limitations, which include amounts for pollution control equipment required to monitor and regulate emissions into the environment. The Hannibal and Davenport cement plants are subject to HWC-MACT and CISWI standards, respectively, for which we do not expect any material future costs to achieve or maintain compliance. Since many environmental requirements are likely to be affected by future legislation or rule making by government agencies, and are therefore not quantifiable, it is not possible to accurately predict the aggregate future costs of compliance and their effect on our future financial condition, results of operations and liquidity.

At most of our quarries, we incur reclamation obligations as part of our mining activities. Reclamation methods and requirements can vary depending on the individual site and state regulations. Generally, we are required to grade the mined properties to a certain slope and seed the property to prevent erosion. We record a mining reclamation liability in our consolidated financial statements to reflect the estimated fair value of the cost to reclaim each property including active and closed sites.

Our operations in Kansas include one municipal waste landfill and two construction and demolition debris landfills, one of which has been closed and in Colorado, we have a construction and demolition debris landfill. Among other environmental, health and safety requirements, we are subject to obligations to appropriately close those landfills at the end of their useful lives and provide for appropriate post‑closure care. Asset retirement obligations relating to these landfills are recorded in our consolidated financial statements.

Health and Safety

Our facilities and operations are subject to a variety of worker health and safety requirements, particularly those administered by the federal Occupational Safety and Health Administration (“OSHA”) and Mine Safety and Health Administration (“MSHA”). Throughout our organization, we strive for a zero‑incident safety culture and full compliance with safety regulations. Failure to comply with these requirements can result in sanctions such as fines and penalties and claims for personal injury and property damage. These requirements may also result in increased operating and capital costs in the future.

Worker safety and health matters are overseen by our corporate risk management and safety department as well as operating company level safety managers. We provide our operating company level safety managers leadership and support, comprehensive training, and other tools designed to accomplish health and safety goals, reduce risk, eliminate hazards, and ultimately make our work places safer.

Insurance

Our insurance program is structured using multiple “A” rated insurance carriers, and a variety of deductible amounts. Losses within deductible amounts, are accrued for using projections based on past loss history. We also maintain combined umbrella insurance. Other policies include property, contractors equipment, contractors pollution and professional, directors and officers, employment practices liability and fiduciary and crime. We also have a separate marine insurance policy for our cement operations on the Mississippi River, which ship cement on the river via barge.

Where You Can Find More Information

We file annual, quarterly and current reports, proxy statements and other information with the SEC. Our SEC filings are available to the public over the internet at the SEC’s website at http://www.sec.gov. Our SEC filings are also available on our website, free of charge, at http://www.summit-materials.com as soon as reasonably practicable after they are filed with or furnished to the SEC. You may also read and copy any filed document at the SEC’s public reference room in Washington, D.C. at 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information about public reference rooms.

We maintain an internet site at http://www.summit-materials.com. Our website and the information contained on or connected to that site are not incorporated into this report.

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ITEM  1A.RISK FACTORS  

Risks Related to Our Industry and Our Business

Industry Risks

Our business depends on activity within the construction industry and the strength of the local economies in which we operate.

We sell most of our construction materials and products and provide all of our paving and related services to the construction industry, so our results are significantly affected by the strength of the construction industry. Federal and state budget issues may negatively affect the amount of funding available for infrastructure spending, particularly highway construction, which constitutes a significant portion of our business. Demand for our products, particularly in the residential and nonresidential construction markets, could decline if companies and consumers cannot obtain funding for construction projects. In addition, a slow pace of economic activity results in delays or cancellations of capital projects.

Our earnings depend on the strength of the local economies in which we operate because of the high cost to transport our products relative to their price. Although some states in recent years, such as Texas, have increased their budgets for road construction, maintenance, rehabilitation and acquiring right of way for public roads, certain other states have reduced their construction spending due to budget shortfalls from lower tax revenue, as well as uncertainty relating to long‑term federal highway funding prior to the FAST Act, the first law with long‑term transportation funding in ten years, which was signed into law on December 4, 2015. As a result, there has been a reduction in certain states’ investment in infrastructure spending. If economic and construction activity diminishes in one or more areas, particularly in our top revenue‑generating markets of Texas, Utah, Kansas and Missouri, our financial condition, results of operations and liquidity could be materially adversely affected.

Our business is cyclical and requires significant working capital to fund operations.

Our business is cyclical and requires that we maintain significant working capital to fund our operations. Our ability to generate sufficient cash flow depends on future performance, which will be subject to general economic conditions, industry cycles and financial, business and other factors affecting our operations, many of which are beyond our control. If we are unable to generate sufficient cash to operate our business and service our outstanding debt and other obligations, we may be required, among other things, to further reduce or delay planned capital or operating expenditures, sell assets or take other measures, including the restructuring of all or a portion of our debt, which may only be available, if at all, on unsatisfactory terms.

Weather can materially affect our business and we are subject to seasonality.

Nearly all of the products we sell and the services we provide are used or performed outdoors. Therefore, seasonal changes and other weather‑related conditions can adversely affect our business and operations through a decline in both the use and production of our products and demand for our services. Adverse weather conditions such as extended rainy and cold weather in the spring and fall can reduce demand for our products and reduce sales or render our contracting operations less efficient. Major weather events such as hurricanes, tornadoes, tropical storms and heavy snows have adversely affected and could adversely affect sales in the near term. In particular, our operations in the southeastern and Gulf Coast regions of the United States are at risk for hurricane activity, most notably in August, September and October. For example, in 2017, Hurricane Harvey adversely affected our operations not only during the days immediately before and after the storm, but also in the weeks and months after the storm as our customers recovered and reallocated resources in response to damage caused by the storm.

Construction materials production and shipment levels follow activity in the construction industry, which typically occurs in the spring, summer and fall. Warmer and drier weather during the second and third quarters of our fiscal year typically result in higher activity and revenue levels during those quarters. The first quarter of our fiscal year has typically lower levels of activity due to the weather conditions. Our second quarter varies greatly with spring rains and wide temperature variations. A cool wet spring increases drying time on projects, which can delay sales in the second quarter, while a warm dry spring may enable earlier project startup.

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Our industry is capital intensive and we have significant fixed and semi‑fixed costs. Therefore, our profitability is sensitive to changes in volume.

The property and machinery needed to produce our products can be very expensive. Therefore, we need to spend a substantial amount of capital to purchase and maintain the equipment necessary to operate our business. Although we believe that our current cash balance, along with our projected internal cash flows and our available financing resources, will provide sufficient cash to support our currently anticipated operating and capital needs, if we are unable to generate sufficient cash to purchase and maintain the property and machinery necessary to operate our business, we may be required to reduce or delay planned capital expenditures or incur additional debt. In addition, given the level of fixed and semi‑fixed costs within our business, particularly at our cement production facilities, decreases in volumes could have a material adverse effect on our financial condition, results of operations and liquidity.

Within our local markets, we operate in a highly competitive industry.

The U.S. construction aggregates industry is highly fragmented with a large number of independent local producers in a number of our markets. Additionally, in most markets, we compete against large private and public infrastructure companies, some of which are also vertically‑integrated. Therefore, there is intense competition in a number of the markets in which we operate. This significant competition could lead to lower prices, lower sales volumes and higher costs in some markets, negatively affecting our financial condition, results of operations and liquidity.

Growth Risks

The success of our business depends on our ability to execute on our acquisition strategy.

A significant portion of our historical growth has occurred through acquisitions, and we will likely enter into acquisitions in the future. We are presently evaluating, and we expect to continue to evaluate on an ongoing basis, possible acquisition transactions. We are presently engaged, and at any time in the future we may be engaged, in discussions or negotiations with respect to possible acquisitions, including larger transactions that would be significant to us. We regularly make, and we expect to continue to make, non‑binding acquisition proposals, and we may enter into letters of intent, in each case allowing us to conduct due diligence on a confidential basis. We cannot predict the timing of any contemplated transactions. To successfully acquire a significant target, we may need to raise additional capital through additional equity issuances, additional indebtedness, or a combination of equity and debt issuances. There can be no assurance that we will enter into definitive agreements with respect to any contemplated transactions or that they will be completed. Our growth has placed, and will continue to place, significant demands on our management and operational and financial resources. Acquisitions involve risks that the businesses acquired will not perform as expected.

Our results of operations from these acquisitions could, in the future, result in impairment charges for any of our intangible assets, including goodwill, or other long‑lived assets, particularly if economic conditions worsen unexpectedly. As a result of these changes, our financial condition, results of operations and liquidity could be materially adversely affected. In addition, many of the businesses that we have acquired and will acquire have unaudited financial statements that have been prepared by the management of such companies and have not been independently reviewed or audited. We cannot assure you that the financial statements of companies we have acquired or will acquire would not be materially different if such statements were independently reviewed or audited. If such statements were to be materially different, the tangible and intangible assets we acquire may be more susceptible to impairment charges, which could have a material adverse effect on us.

The success of our business depends on our ability to successfully integrate acquisitions.

Acquisitions may require integration of the acquired companies’ sales and marketing, distribution, engineering, purchasing, finance and administrative organizations. We may not be able to integrate successfully any business we may acquire or have acquired into our existing business and any acquired businesses may not be profitable or as profitable as we had expected. Our inability to complete the integration of new businesses in a timely and orderly manner could

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increase costs and lower profits. Factors affecting the successful integration of acquired businesses include, but are not limited to, the following:

· We may become liable for certain liabilities of any acquired business, whether or not known to us. These risks could include, among others, tax liabilities, product liabilities, environmental liabilities and liabilities for employment practices. These liabilities may be significant.

· Substantial attention from our senior management and the management of the acquired business may be required, which could decrease the time that they have to service and attract customers.

· We may not effectively utilize new equipment that we acquire through acquisitions or otherwise at utilization and rental rates consistent with that of our existing equipment. Further, capital equipment at acquired businesses may require additional maintenance or need to be replaced sooner than we expected.

· The complete integration of acquired companies depends, to a certain extent, on the full implementation of our financial systems and policies.

· We may actively pursue a number of opportunities simultaneously and we may encounter unforeseen expenses, complications and delays, including difficulties in employing sufficient staff and maintaining operational and management oversight.

The success of our business depends on our ability to retain key employees of our acquired businesses

We cannot assure you we will be able to retain local managers and employees who are important to the operations of our acquired businesses. The loss of key employees may have an adverse effect on the acquired business and on our business as a whole.

Our long‑term success is dependent upon securing and permitting aggregate reserves in strategically located areas. The inability to secure and permit such reserves could negatively affect our earnings in the future.

Aggregates are bulky and heavy and therefore difficult to transport efficiently. Because of the nature of the products, the freight costs can quickly surpass production costs. Therefore, except for geographic regions that do not possess commercially viable deposits of aggregates and are served by rail, barge or ship, the markets for our products tend to be localized around our quarry sites and are served by truck. New quarry sites often take a number of years to develop. Our strategic planning and new site development must stay ahead of actual growth. Additionally, in a number of urban and suburban areas in which we operate, it is increasingly difficult to permit new sites or expand existing sites due to community resistance. Therefore, our future success is dependent, in part, on our ability to accurately forecast future areas of high growth in order to locate optimal facility sites and on our ability to either acquire existing quarries or secure operating and environmental permits to open new quarries. If we are unable to accurately forecast areas of future growth, acquire existing quarries or secure the necessary permits to open new quarries, our financial condition, results of operations and liquidity could be materially adversely affected.

Economic Risks

A decline in public infrastructure construction and reductions in governmental funding could adversely affect our earnings in the future.

A significant portion of our revenue is generated from publicly‑funded construction projects. As a result, if publicly‑funded construction decreases due to reduced federal or state funding or otherwise, our financial condition, results of operations and liquidity could be materially adversely affected.

In January 2011, the U.S. House of Representatives passed a new rules package that repealed a transportation law dating back to 1998, which protected annual funding levels from amendments that could reduce such funding. This rule change subjects funding for highways to yearly appropriation reviews. The change in the funding mechanism increases the uncertainty of many state departments of transportation regarding funds for highway projects. This uncertainty could result in states being reluctant to undertake large multi‑year highway projects which could, in turn, negatively affect our

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sales. We cannot be assured of the existence, amount and timing of appropriations for spending on federal, state or local projects. Federal support for the cost of highway maintenance and construction is dependent on congressional action. In addition, each state funds its infrastructure spending from specially allocated amounts collected from various taxes, typically gasoline taxes and vehicle fees, along with voter‑approved bond programs. Shortages in state tax revenues can reduce the amounts spent on state infrastructure projects, even below amounts awarded under legislative bills. In recent years, certain states have experienced state‑level funding pressures caused by lower tax revenues and an inability to finance approved projects. Delays or cancellations of state infrastructure spending could have a material adverse effect on our financial condition, results of operations and liquidity.

Our business relies on private investment in infrastructure, and periods of economic stagnation or recession may adversely affect our earnings in the future.

A significant portion of our sales are for projects with non‑public owners whose construction spending is affected by developers’ ability to finance projects. Residential and nonresidential construction could decline if companies and consumers are unable to finance construction projects or in periods of economic stagnation or recession, which could result in delays or cancellations of capital projects. If housing starts and nonresidential projects stagnate or decline, sale of our construction materials, downstream products and paving and related services may decline and our financial condition, results of operations and liquidity could be materially adversely affected.

Environmental, health and safety laws and regulations and any changes to, or liabilities arising under, such laws and regulations could have a material adverse effect on our financial condition, results of operations and liquidity.

We are subject to a variety of federal, state, provincial and local laws and regulations relating to, among other things: (i) the release or discharge of materials into the environment; (ii) the management, use, generation, treatment, processing, handling, storage, transport or disposal of hazardous materials, including the management of hazardous and non-hazardous waste used as a fuel substitute in our cement kiln in Hannibal, Missouri; (iii) the management, use, generation, treatment, processing, handling, storage, transport or disposal of non‑hazardous solid waste used as a fuel substitute in our cement kiln in Davenport, Iowa; and (iv) the protection of public and employee health and safety and the environment. These laws and regulations impose strict liability in some cases without regard to negligence or fault and expose us to liability for the environmental condition of our currently or formerly owned, leased or operated facilities or third‑party waste disposal sites, and may expose us to liability for the conduct of others or for our actions, even if such actions complied with all applicable laws at the time these actions were taken. In particular, we may incur remediation costs and other related expenses because our facilities were constructed and operated before the adoption of current environmental laws and the institution of compliance practices or because certain of our processes are regulated. These laws and regulations may also expose us to liability for claims of personal injury or property or natural resource damage related to alleged exposure to, or releases of, regulated or hazardous materials. The existence of contamination at properties we own, lease or operate could also result in increased operational costs or restrictions on our ability to use those properties as intended, including for purposes of mining.

There is an inherent risk of liability in the operation of our business, and despite our compliance efforts, we may be in noncompliance with environmental, health and safety laws and regulations from time to time. These potential liabilities or events of noncompliance could have a material adverse effect on our operations and profitability. In many instances, we must have government approvals, certificates, permits or licenses in order to conduct our business, which could require us to make significant capital, operating and maintenance expenditures to comply with environmental, health and safety laws and regulations. Our failure to obtain and maintain required approvals, certificates, permits or licenses or to comply with applicable governmental requirements could result in sanctions, including substantial fines or possible revocation of our authority to conduct some or all of our operations. Governmental requirements that affect our operations also include those relating to air and water quality, waste management, asset reclamation, the operation and closure of municipal waste and construction and demolition debris landfills, remediation of contaminated sites and worker health and safety. These requirements are complex and subject to frequent change. Stricter laws and regulations, more stringent interpretations of existing laws or regulations or the future discovery of environmental conditions may impose new liabilities on us, reduce operating hours, require additional investment by us in pollution control equipment or impede our opening new or expanding existing plants or facilities.

We have incurred, and may in the future incur, significant capital and operating expenditures to comply with such laws and regulations. In addition, we have recorded liabilities in connection with our reclamation and landfill closure obligations, but there can be no assurances that the costs of our obligations will not exceed our estimates. The cost of

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complying with such laws could have a material adverse effect on our financial condition, results of operations and liquidity.

Financial Risks

Difficult and volatile conditions in the credit markets could affect our financial condition, results of operations and liquidity.

Demand for our products is primarily dependent on the overall health of the economy, and federal, state and local public infrastructure funding levels. A stagnant or declining economy tends to produce less tax revenue for public infrastructure agencies, thereby decreasing a source of funds available for spending on public infrastructure improvements, which constitute a significant part of our business.

There is a likelihood that we will not be able to collect on certain of our accounts receivable from our customers. If our customers are unable to obtain credit or unable to obtain credit in a timely manner, they may be unable to pay us, which could have a material adverse effect on our financial condition, results of operations and liquidity.

If we are unable to accurately estimate the overall risks, requirements or costs when we bid on or negotiate contracts that are ultimately awarded to us, we may achieve lower than anticipated profits or incur contract losses.

Even though the majority of our government contracts contain raw material escalators to protect us from certain price increases, a portion or all of the contracts are often on a fixed cost basis. Pricing on a contract with a fixed unit price is based on approved quantities irrespective of our actual costs and contracts with a fixed total price require that the total amount of work be performed for a single price irrespective of our actual costs. We realize profit on our contracts only if our revenue exceeds actual costs, which requires that we successfully estimate our costs and then successfully control actual costs and avoid cost overruns. If our cost estimates for a contract are inadequate, or if we do not execute the contract within our cost estimates, then cost overruns may cause us to incur a loss or cause the contract not to be as profitable as we expected. The costs incurred and profit realized, if any, on our contracts can vary, sometimes substantially, from our original projections due to a variety of factors, including, but not limited to:

· failure to include materials or work in a bid, or the failure to estimate properly the quantities or costs needed to complete a lump sum contract;

· delays caused by weather conditions or otherwise failing to meet scheduled acceptance dates;

· contract or project modifications or conditions creating unanticipated costs that are not covered by change orders;

· changes in availability, proximity and costs of materials, including liquid asphalt, cement, aggregates and other construction materials (such as stone, gravel, sand and oil for asphalt paving), as well as fuel and lubricants for our equipment;

· to the extent not covered by contractual cost escalators, variability and inability to predict the costs of purchasing diesel, liquid asphalt and cement;

· availability and skill level of workers;

· failure by our suppliers, subcontractors, designers, engineers or customers to perform their obligations;

· fraud, theft or other improper activities by our suppliers, subcontractors, designers, engineers, customers or our own personnel;

· mechanical problems with our machinery or equipment;

· citations issued by any governmental authority, including OSHA and MSHA;

· difficulties in obtaining required governmental permits or approvals;

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· changes in applicable laws and regulations;

· uninsured claims or demands from third parties for alleged damages arising from the design, construction or use and operation of a project of which our work is part; and

· public infrastructure customers may seek to impose contractual risk‑shifting provisions more aggressively which may result in us facing increased risks.

These factors, as well as others, may cause us to incur losses, which could have a material adverse effect on our financial condition, results of operations and liquidity.

We could incur material costs and losses as a result of claims that our products do not meet regulatory requirements or contractual specifications.

We provide our customers with products designed to meet building code or other regulatory requirements and contractual specifications for measurements such as durability, compressive strength, weight‑bearing capacity and other characteristics. If we fail or are unable to provide products meeting these requirements and specifications, material claims may arise against us and our reputation could be damaged. Additionally, if a significant uninsured, non‑indemnified or product‑related claim is resolved against us in the future, that resolution could have a material adverse effect on our financial condition, results of operations and liquidity.

The cancellation of a significant number of contracts or our disqualification from bidding for new contracts could have a material adverse effect on our financial condition, results of operations and liquidity.

We could be prohibited from bidding on certain government contracts if we fail to maintain qualifications required by the relevant government entities. In addition, contracts with governmental entities can usually be canceled at any time by them with payment only for the work completed. A cancellation of an unfinished contract or our disqualification from the bidding process could result in lost revenue and cause our equipment to be idled for a significant period of time until other comparable work becomes available, which could have a material adverse effect on our financial condition, results of operations and liquidity.

Our operations are subject to special hazards that may cause personal injury or property damage, subjecting us to liabilities and possible losses which may not be covered by insurance.

Operating hazards inherent in our business, some of which may be outside our control, can cause personal injury and loss of life, damage to or destruction of property, plant and equipment and environmental damage. We maintain insurance coverage in amounts and against the risks we believe are consistent with industry practice, but this insurance may not be adequate or available to cover all losses or liabilities we may incur in our operations. Our insurance policies are subject to varying levels of deductibles. However, liabilities subject to insurance are difficult to estimate due to unknown factors, including the severity of an injury, the determination of our liability in proportion to other parties, the number of incidents not reported and the effectiveness of our safety programs. If we were to experience insurance claims or costs above our estimates, our financial condition, results of operations and liquidity could be materially adversely effected.

Unexpected factors affecting self‑insurance claims and reserve estimates could adversely affect our business.

We use a combination of third‑party insurance and self‑insurance to provide for potential liabilities for workers’ compensation, general liability, vehicle accident, property and medical benefit claims. Although we seek to minimize our exposure on individual claims, for the benefit of costs savings we have accepted the risk of multiple independent material claims arising. We estimate the projected losses and liabilities associated with the risks retained by us, in part, by considering historical claims experience, demographic and severity factors and other actuarial assumptions which, by their nature, are subject to a high degree of variability. Among the causes of this variability are unpredictable external factors affecting future inflation rates, discount rates, litigation trends, legal interpretations, benefit level changes and claim settlement patterns. Any such matters could have a material adverse effect on our financial condition, results of operations and liquidity.

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Our substantial leverage could adversely affect our financial condition, our ability to raise additional capital to fund our operations, our ability to operate our business, our ability to react to changes in the economy or our industry and our ability to pay our debts, which could divert our cash flow from operations to debt payments.

We are highly leveraged. As of December 30, 2017, our total debt was approximately $1.8 billion, which includes $1.2 billion of Senior Notes and $635.4 million of senior secured indebtedness under our senior secured credit facilities and we had an additional $218.9 million of unutilized capacity under our senior secured revolving credit facility (after giving effect to approximately $16.1 million of letters of credit outstanding).

Our high degree of leverage could have important consequences, including:

· increasing our vulnerability to general economic and industry conditions;

· requiring a substantial portion of cash flow from operations to be dedicated to the payment of principal and interest on our indebtedness, thereby reducing our ability to use our cash flow to fund our operations, capital expenditures and future business opportunities;

· subject us to the risk of increased interest rates as a portion of our borrowings under our senior secured credit facilities are exposed to variable rates of interest;

· restricting us from making strategic acquisitions or causing us to make non-strategic divestitures;

· limiting our ability to obtain additional financing for working capital, capital expenditures, debt service requirements, acquisitions and general corporate or other purposes;

· limiting our ability to adjust to changing market conditions and placing us at a competitive disadvantage compared to our competitors who are less highly leveraged; and

· making it more difficult for us to make payments on our debt.

Borrowings under our senior secured credit facilities are at variable rates of interest and expose us to interest rate risk. If interest rates increase, our debt service obligations on the variable rate indebtedness will increase even though the amount borrowed remained the same, and our net income and cash flows, including cash available for servicing our indebtedness, will correspondingly decrease. We have and may in the future enter into interest rate swaps that involve the exchange of floating for fixed rate interest payments in order to reduce interest rate volatility. However, we may not maintain interest rate swaps with respect to all of our variable rate indebtedness, and any interest rate swaps we enter into may not fully mitigate our interest rate risk. In addition, the indentures that govern the Senior Notes and the amended and restated credit agreement governing our senior secured credit facilities (“Credit Agreement”) contain restrictive covenants that limit our ability to engage in activities that may be in our long-term best interest. Our failure to comply with those covenants could result in an event of default which, if not cured or waived, could result in the acceleration of all our debt.

Despite our current level of indebtedness, we and our subsidiaries may still incur substantially more debt. This could reduce our ability to satisfy our current obligations and further exacerbate the risks to our financial condition described above.

We and our subsidiaries may incur significant additional indebtedness in the future to fund acquisitions as part of our growth strategy. Although the indentures governing the Senior Notes and the Credit Agreement contain restrictions on the incurrence of additional indebtedness, these restrictions are subject to a number of qualifications and exceptions, and we could incur substantial additional indebtedness in compliance with these restrictions.

Our senior secured credit facilities include an uncommitted incremental facility that allows us the option to increase the amount available under the term loan facility and/or the senior secured revolving credit facility by (i) $225.0 million plus (ii) an additional amount so long as we are in pro forma compliance with a consolidated first lien net leverage ratio. Availability of such incremental facilities will be subject to, among other conditions, the absence of an event of default and the receipt of commitments by existing or additional financial institutions.

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We may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful.

Our ability to make scheduled payments on our debt obligations, refinance our debt obligations and fund planned capital expenditures and other corporate expenses depends on our financial condition and operating performance, which is subject to prevailing economic and competitive conditions. We are also subject to certain financial, business, legislative, regulatory and legal restrictions on the payment of distributions and dividends. Many of these factors are beyond our control. We may not be able to maintain a level of cash flows from operating activities sufficient to permit us to pay the principal, premium, if any, and interest on our indebtedness, which would constitute an event of default if not cured. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.” If our cash flows and capital resources are insufficient to fund our debt service obligations or our other needs, we may be forced to reduce or delay investments and capital expenditures, seek additional capital, restructure or refinance our indebtedness or sell assets. These alternative measures may not be successful and may not permit us to meet our scheduled debt service obligations or fund planned capital expenditures. Significant delays in our planned capital expenditures may materially and adversely affect our future revenue prospects. In addition, our ability to restructure or refinance our debt will depend on the capital markets and our financial condition at such time. Any refinancing of our debt could be at higher interest rates and may require us to comply with more onerous covenants, which could further restrict our business operations. The Credit Agreement and the indentures governing the Senior Notes restrict our ability to use the proceeds from asset sales. We may not be able to consummate those asset sales to raise capital or sell assets at prices that we believe are fair and proceeds that we do receive may not be adequate to meet any debt service obligations then due. In addition, any failure to make payments of interest and principal on our outstanding indebtedness on a timely basis would likely result in a reduction of our credit rating, which could harm our ability to incur additional indebtedness.

The indentures governing the Senior Notes and the Credit Agreement contain covenants and provisions that are restrictive.

The indentures governing the Senior Notes and Credit Agreement contain restrictive covenants that, among other things, limit our ability, and the ability of our restricted subsidiaries, to:

· incur additional indebtedness, issue certain preferred shares or issue guarantees;

· pay dividends, redeem our membership interests or make other restricted payments;

· make investments, loans or advances;

· incur additional liens;

· transfer or sell assets;

· merge or engage in consolidations;

· enter into certain transactions with our affiliates;

· designate subsidiaries as unrestricted subsidiaries;

· repay subordinated indebtedness; and

· change our lines of business.

The senior secured credit facilities also require us to maintain a maximum first lien net leverage ratio. The Credit Agreement also contains certain customary representations and warranties, affirmative covenants and events of default (including, among others, an event of default upon a change of control). If an event of default occurs, the lenders under our senior secured credit facilities will be entitled to take various actions, including the acceleration of amounts due under our senior secured credit facilities and all actions permitted to be taken by a secured creditor. Our failure to comply with obligations under the indentures governing the Senior Notes and the Credit Agreement may result in an event of default under the indenture or the amended and restated Credit Agreement. A default, if not cured or waived,

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may permit acceleration of our indebtedness. If our indebtedness is accelerated, we may not have sufficient funds available to pay the accelerated indebtedness or the ability to refinance the accelerated indebtedness on terms favorable to us or at all.

Other Risks

Our success is dependent on our Chief Executive Officer and other key personnel.

Our success depends on the continuing services of our Chief Executive Officer, Tom Hill, and other key personnel assembled by Mr. Hill. We believe that Mr. Hill possesses valuable knowledge and skills that are crucial to our success and would be very difficult to replicate. Not all of our senior management team resides near or works at our headquarters. The geographic distance between the members of our senior management team may impede the team’s ability to work together effectively, and we cannot assure you they will be able to do so.

Competition for senior management is intense, and we may not be able to retain our management team or attract additional qualified personnel. The loss of a member of senior management could require certain of our remaining senior officers to divert immediate attention, which could be substantial or require costly external resources in the short term. The inability to adequately fill vacancies in our senior executive positions on a timely basis could negatively affect our ability to implement our business strategy, which could have a material adverse effect on our results of operations, financial condition and liquidity.

We use large amounts of electricity, diesel fuel, liquid asphalt and other petroleum‑based resources that are subject to potential reliability issues, supply constraints and significant price fluctuation, which could have a material adverse effect on our financial condition, results of operations and liquidity.

In our production and distribution processes, we consume significant amounts of electricity, diesel fuel, liquid asphalt and other petroleum‑based resources. The availability and pricing of these resources are subject to market forces that are beyond our control. Furthermore, we are vulnerable to any reliability issues experienced by our suppliers, which also are beyond our control. Our suppliers contract separately for the purchase of such resources and our sources of supply could be interrupted should our suppliers not be able to obtain these materials due to higher demand or other factors that interrupt their availability. Variability in the supply and prices of these resources could have a material adverse effect on our financial condition, results of operations and liquidity.

Climate change and climate change legislation or regulations may adversely affect our business.

A number of governmental bodies have finalized, proposed or are contemplating legislative and regulatory changes in response to the potential effects of climate change, and the United States and Canada have agreed to the Paris Agreement, the successor to the Kyoto Protocol to the United Nations Framework Convention on Climate Change, which could lead to additional legislative and regulatory changes in the United States and Canada.   Such legislation or regulation has and potentially could include provisions for a “cap and trade” system of allowances and credits, among other provisions. The EPA promulgated a mandatory reporting rule covering greenhouse gas (“GHG”) emissions from sources considered to be large emitters. The EPA has also promulgated a GHG emissions permitting rule, referred to as the “Tailoring Rule” which sets forth criteria for determining which facilities are required to obtain permits for GHG emissions pursuant to the U.S. Clean Air Act’s Prevention of Significant Deterioration (“PSD”) and Title V operating permit programs. The U.S. Supreme Court ruled in June 2014 that the EPA exceeded its statutory authority in issuing the Tailoring Rule but upheld the Best Available Control Technology (“BACT”) requirements for GHGs emitted by sources already subject to PSD requirements for other pollutants. Our cement plants and one of our landfills hold Title V Permits. If future modifications to our facilities require PSD review for other pollutants, GHG BACT requirements may also be triggered, which could require significant additional costs.

Other potential effects of climate change include physical effects such as disruption in production and product distribution as a result of major storm events and shifts in regional weather patterns and intensities. There is also a potential for climate change legislation and regulation to adversely affect the cost of purchased energy and electricity.

The effects of climate change on our operations are highly uncertain and difficult to estimate. However, because a chemical reaction inherent to the manufacture of Portland cement releases carbon dioxide, a GHG, cement kiln operations may be disproportionately affected by future regulation of GHGs. Climate change and legislation and

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regulation concerning GHGs could have a material adverse effect on our financial condition, results of operations and liquidity.

Unexpected operational difficulties at our facilities could disrupt operations, raise costs, and reduce revenue and earnings in the affected locations.

The reliability and efficiency of certain of our facilities is dependent upon vital pieces of equipment, such as our cement manufacturing kilns in Hannibal, Missouri and Davenport, Iowa. Although we have scheduled outages to perform maintenance on certain of our facilities, vital equipment may periodically experience unanticipated disruptions due to accidents, mechanical failures or other unanticipated events such as fires, explosions, violent weather conditions or other unexpected operational difficulties. A substantial interruption of one of our facilities could require us to make significant capital expenditures to restore operations and could disrupt our operations, raise costs, and reduce revenue and earnings in the affected locations.

We are dependent on information technology. Our systems and infrastructure face certain risks, including cyber security risks and data leakage risks.

We are dependent on information technology systems and infrastructure. Any significant breakdown, invasion, destruction or interruption of these systems by employees, others with authorized access to our systems, or unauthorized persons could negatively affect operations. There is also a risk that we could experience a business interruption, theft of information or reputational damage as a result of a cyber-attack, such as an infiltration of a data center, or data leakage of confidential information either internally or at our third‑party providers. While we have invested in the protection of our data and information technology to reduce these risks and periodically test the security of our information systems network, there can be no assurance that our efforts will prevent breakdowns or breaches in our systems that could have a material adverse effect on our financial condition, results of operations and liquidity.

Labor disputes could disrupt operations of our businesses.

As of December 30, 2017, labor unions represented approximately 7% of our total employees, substantially all in our cement division and at our Canadian operations. Our collective bargaining agreements for employees generally expire between 2018 and 2020. Although we believe we have good relations with our employees and unions, disputes with our trade unions, union organizing activity, or the inability to renew our labor agreements, could lead to strikes or other actions that could disrupt our operations and, consequently, have a material adverse effect on our financial condition, results of operations and liquidity.

Organizational Structure Risks

Summit Inc.’s only material asset is its interest in Summit Holdings, and it is accordingly dependent upon distributions from Summit Holdings to pay taxes, make payments under the TRA and pay dividends.

Summit Inc. is a holding company and has no material assets other than its ownership of LP Units and has no independent means of generating revenue. Summit Inc. intends to cause Summit Holdings to make distributions to holders and former holders of LP Units in an amount sufficient to cover all applicable taxes at assumed tax rates, payments under the TRA and cash distributions, if any, declared by it. Deterioration in the financial condition, earnings or cash flow of Summit Holdings and its subsidiaries for any reason, or restrictions on payments by subsidiaries to their parent companies under applicable laws, including laws that require companies to maintain minimum amounts of capital and to make payments to stockholders only from profits, could limit or impair their ability to pay such distributions. Additionally, to the extent that Summit Inc. needs funds, and Summit Holdings is restricted from making such distributions under applicable law or regulation or under the terms of our financing arrangements, or is otherwise unable to provide such funds, it could have a material adverse effect on our financial condition, results of operations and liquidity.

Payments of dividends, if any, are at the discretion of our board of directors after taking into account various factors, including our business, operating results and financial condition, current and anticipated cash needs, plans for expansion and any legal or contractual limitations on our ability to pay dividends. Any financing arrangement that we enter into in the future may include restrictive covenants that limit our ability to pay dividends. In addition, Summit Holdings is generally prohibited under Delaware law from making a distribution to a limited partner to the extent that, at

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the time of the distribution, after giving effect to the distribution, liabilities of Summit Holdings (with certain exceptions) exceed the fair value of its assets. Subsidiaries of Summit Holdings are generally subject to similar legal limitations on their ability to make distributions to Summit Holdings.

Summit Inc. anticipates using certain distributions from Summit Holdings to acquire additional LP Units.

The limited partnership agreement of Summit Holdings provides for cash distributions, which we refer to as “tax distributions,” to be made to the holders of the LP Units if it is determined that the income of Summit Holdings will give rise to net taxable income allocable to holders of LP Units. To the extent that future tax distributions Summit Inc. receives exceed the amounts it actually requires to pay taxes and make payments under the TRA, we expect that our board of directors will cause Summit Inc. to use such excess cash to acquire additional newly-issued LP Units at a per unit price determined by reference to the volume weighted average price per share of the Class A common stock during the five trading days immediately preceding the date of the relevant board action. During the fourth quarter of 2017, Summit Inc. used approximately $47.5 million of such distributions to purchase LP Units. See “Part II, Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities–Dividends.” Although we anticipate that any such decision by our board of directors would be approved by a majority of our independent directors, any cash used by Summit Inc. to acquire additional LP Units would not then be available to fund cash dividends on the Class A common stock.

Summit Inc. is required to pay exchanging holders of LP Units for most of the benefits relating to any additional tax depreciation or amortization deductions that we may claim as a result of the tax basis step-up we receive in connection with sales or exchanges of LP Units and related transactions.

Holders of LP Units (other than Summit Inc.) may, subject to the vesting and minimum retained ownership requirements and transfer restrictions applicable to such holders as set forth in the limited partnership agreement of Summit Holdings, from and after March 17, 2016 (subject to the terms of the exchange agreement), exchange their LP Units for Class A common stock on a one-for-one basis. The exchanges are expected to result in increases in the tax basis of the tangible and intangible assets of Summit Holdings. These increases in tax basis may increase (for tax purposes) depreciation and amortization deductions and therefore reduce the amount of tax that Summit Inc. would otherwise be required to pay in the future, although the Internal Revenue Service (the “IRS”) may challenge all or part of the tax basis increase, and a court could sustain such a challenge.

In connection with the IPO, we entered into a TRA with the holders of LP Units that provides for the payment by Summit Inc. to exchanging holders of LP Units of 85% of the benefits, if any, that Summit Inc. is deemed to realize as a result of the increases in tax basis described above and certain other tax benefits related to entering into the TRA, including tax benefits attributable to payments under the TRA. This payment obligation is an obligation of Summit Inc. and not of Summit Holdings. While the actual increase in tax basis and the actual amount and utilization of net operating losses, as well as the amount and timing of any payments under the TRA, will vary depending upon a number of factors, including the timing of exchanges, the price of shares of our Class A common stock at the time of the exchange, the extent to which such exchanges are taxable and the amount and timing of our income, we expect that as a result of the size of the transfers and increases in the tax basis of the tangible and intangible assets of Summit Holdings and our possible utilization of net operating losses, the payments that Summit Inc. may make under the TRA will be substantial.

In certain cases, payments under the TRA may be accelerated or significantly exceed the actual benefits Summit Inc. realizes in respect of the tax attributes subject to the TRA.

The TRA provides that upon certain changes of control, or if, at any time, Summit Inc. elects an early termination of the TRA, Summit Inc.’s obligations under the TRA may be accelerated. Summit Inc.’s ability to achieve benefits from any tax basis increase or net operating losses, and the payments to be made under the TRA, will depend upon a number of factors, including the timing and amount of our future income. As a result, even in the absence of a change of control or an election to terminate the TRA, payments under the TRA could be in excess of 85% of Summit Inc.’s actual cash tax savings.

The actual cash tax savings realized by Summit Inc. under the TRA may be less than the corresponding TRA payments. Further, payments under the TRA may be made years in advance of when the benefits, if any, are realized on our federal and state income tax returns. Accordingly, there may be a material negative effect on our liquidity if the payments under the TRA exceed the actual cash tax savings that Summit Inc. realizes in respect of the tax attributes

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subject to the TRA and/or distributions to Summit Inc. by Summit Holdings are not sufficient to permit Summit Inc. to make payments under the TRA. Based upon a $31.44 share price of our Class A common stock, which was the closing price on December 29, 2017, and a LIBOR rate of 3.11%, we estimate that if Summit Inc. were to exercise its termination right, the aggregate amount of these termination payments would be approximately $282 million. The foregoing number is merely an estimate and the actual payments could differ materially. We may need to incur debt to finance payments under the TRA to the extent our cash resources are insufficient to meet our obligations under the TRA as a result of timing discrepancies or otherwise.

Ownership of Our Class A Common Stock Risks

The market price of shares of our Class A common stock may be volatile, which could cause the value of your investment to decline.

The market price of our Class A common stock may be highly volatile and could be subject to wide fluctuations. Securities markets worldwide experience significant price and volume fluctuations. This market volatility, as well as general economic, market or political conditions, could reduce the market price of shares of our Class A common stock regardless of our operating performance. In addition, our operating results could be below the expectations of public market analysts and investors due to a number of potential factors, including variations in our quarterly operating results or dividends, if any, to stockholders, additions or departures of key management personnel, failure to meet analysts’ earnings estimates, publication of research reports about our industry, litigation and government investigations, changes or proposed changes in laws or regulations or differing interpretations or enforcement thereof affecting our business, adverse market reaction to any indebtedness we may incur or securities we may issue in the future, changes in market valuations of similar companies or speculation in the press or investment community, announcements by our competitors of significant contracts, acquisitions, dispositions, strategic partnerships, joint ventures or capital commitments, adverse publicity about the industries we participate in or individual scandals, and in response the market price of shares of our Class A common stock could decrease significantly. You may be unable to resell your shares of Class A common stock for a profit.

In past years, stock markets have experienced extreme price and volume fluctuations. In the past, following periods of volatility in the overall market and the market price of a company’s securities, securities class action litigation has often been instituted against these companies. Such litigation, if instituted against us, could result in substantial costs and a diversion of our management’s attention and resources.

Because we have no current plans to pay cash dividends on our Class A common stock, you may not receive any return on investment unless you sell your Class A common stock for a price greater than that which you paid for it.

We have no current plans to pay any cash dividends. The declaration, amount and payment of any future dividends on shares of Class A common stock will be at the sole discretion of our board of directors. Our board of directors may take into account general and economic conditions, our financial condition and results of operations, our available cash and current and anticipated cash needs, capital requirements, contractual, legal, tax and regulatory restrictions and implications on the payment of dividends by us to our stockholders or by our subsidiaries to us and such other factors as our board of directors may deem relevant. In addition, our ability to pay dividends is limited by our senior secured credit facilities and our Senior Notes and may be limited by covenants of other indebtedness we or our subsidiaries incur in the future. As a result, you may not receive any return on an investment in our Class A common stock unless you sell our Class A common stock for a price greater than that which you paid for it.

Future issuance of additional Class A common stock, or securities convertible or exchangeable for Class A common stock, may adversely affect the market price of the shares of our Class A common stock.

As of December 30, 2017, we had 110,350,594 shares of Class A common stock issued and outstanding, and had 889,649,406 shares authorized but unissued. The number of unissued shares includes 3,689,620 shares available for issuance upon exchange of LP Units held by limited partners of Summit Holdings. Our amended and restated certificate of incorporation authorizes us to issue shares of Class A common stock and options, rights, warrants and appreciation rights relating to Class A common stock for the consideration and on the terms and conditions established by our board of directors in its sole discretion. We may need to raise significant additional equity capital in connection with acquisitions or otherwise. Similarly, the limited partnership agreement of Summit Holdings permits Summit Holdings to issue an unlimited number of additional limited partnership interests of Summit Holdings with designations, preferences,

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rights, powers and duties that are different from, and may be senior to, those applicable to the LP Units, and which may be exchangeable for shares of our Class A common stock. Sales of substantial amounts of Class A common stock, or securities convertible or exchangeable for Class A common stock, or the perception that such sales could occur may adversely affect the prevailing market price for the shares of our Class A common stock. Thus holders of our Class A common stock will bear the risk of our future issuances reducing the market price of our Class A common stock and diluting the value of their stock holdings in us.

An aggregate of 13,500,000 shares of Class A common stock and LP Units may be granted under the Summit Materials, Inc. 2015 Omnibus Incentive Plan (the “Omnibus Incentive Plan”) of which 4,873,654 have been granted as of December 30, 2017. In addition, as of December 30, 2017 we had outstanding warrants to purchase an aggregate of 102,778 shares of Class A common stock. Any Class A common stock that we issue, including under our Omnibus Incentive Plan or other equity incentive plans that we may adopt in the future, or upon exercise of outstanding options or warrants, or other securities convertible or exchangeable for Class A common stock would dilute the percentage ownership held by the investors of our Class A common stock and may adversely affect the market price of the shares of our Class A common stock.

Anti-takeover provisions in our organizational documents and Delaware law might discourage or delay acquisition attempts for us that you might consider favorable.

Our amended and restated certificate of incorporation and amended and restated bylaws contain provisions that may make the merger or acquisition of our company more difficult without the approval of our board of directors. Among other things, these provisions:

· would allow us to authorize the issuance of undesignated preferred stock in connection with a stockholder rights plan or otherwise, the terms of which may be established and the shares of which may be issued without stockholder approval, and which may include super voting, special approval, dividend, or other rights or preferences superior to the rights of the holders of Class A common stock;

· prohibit stockholder action by written consent unless such action is recommended by all directors then in office; 

· provide that the board of directors is expressly authorized to make, alter, or repeal our bylaws and that our stockholders may only amend our bylaws with the approval of 662⁄₃% or more in voting power of all outstanding shares of our capital stock.

· establish advance notice requirements for nominations for elections to our board or for proposing matters that can be acted upon by stockholders at stockholder meetings.

Further, as a Delaware corporation, we are also subject to provisions of Delaware law, which may impair a takeover attempt that our stockholders may find beneficial. These anti-takeover provisions and other provisions under Delaware law could discourage, delay or prevent a transaction involving a change in control of our company, including actions that our stockholders may deem advantageous, or negatively affect the trading price of our Class A common stock. These provisions could also discourage proxy contests and make it more difficult for you and other stockholders to elect directors of your choosing and to cause us to take other corporate actions you desire.

ITEM  1B.UNRESOLVED STAFF COMMENTS  

None.

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ITEM 2. PROPERTIES.

Properties

Our headquarters are located in a 21,615 square foot office space, which we lease in Denver, Colorado, under a lease expiring on January 31, 2024.

As of December 30, 2017, we had 3.3 billion tons of proven and probable aggregates reserves serving our aggregates and cement businesses and operated over 400 sites and plants, to which we believe we have adequate road, barge and/or railroad access. By segment, our estimate of proven and probable reserves as of December 30, 2017 for which we have permits for extraction and that we consider to be recoverable aggregates of suitable quality for economic extraction are shown in the table below along with average annual production.

		Tonnage of reserves for
		each general type of			Average years	Percent of
	Number of	aggregate			until depletion	reserves owned and
	producing		Sand and	Annual	at current	percent leased
Segment	quarries	Hard rock(1)	gravel(1)	production(1)	production(2)	Owned		Leased(3)
West	81	353,201	772,085	22,965	49	33	%	67	%
East	121	1,345,340	334,522	16,309	103	61	%	39	%
Cement	3	508,965	—	1,858	274	100	%	—
Total	205	2,207,506	1,106,607	41,132

(1) Hard rock, sand and gravel and annual production tons are shown in thousands.    

(2) Calculated based on total reserves divided by our average of 2017 and 2016 annual production    

(3) Lease terms range from monthly to on-going with an average lease expiry of 2024.    

As of December 30, 2017, we operated the following production and distribution facilities:

	Quarries and Sand Deposits	Cement Plants	Cement Distribution Terminals	Fixed and portable ready-mix concrete plants	Asphalt paving mix plants
Owned	76	2	6	98	26
Leased	115	—	4	24	21
Partially owned and leased	14	—	—	—	4
Total	205	2	10	122	51

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The following chart summarizes our production and distribution facilities by state as of December 30, 2017:

State	Sand & Gravel	Limestone	Cement	Ready-mix Concrete	Asphalt Plant	Landfill	Other*
Arkansas	5	—	—	17	2	—	2
Colorado	33	1	—	9	7	—	6
Georgia	—	1	—	—	—	—	1
Idaho	4	—	—	3	—	—	2
Iowa	—	1	2	—	—	—	1
Kansas	9	28	—	17	6	3	14
Kentucky	1	18	—	10	14	—	9
Louisiana	—	—	3	—	—	—	1
Minnesota	—	—	2	—	—	—	—
Missouri	—	34	3	7	—	—	7
Nebraska	—	1	—	—	—	—	—
Nevada	1	—	—	2	—	—	—
New Mexico	1	—	—	—	—	—	—
North Carolina	4	—	—	—	—	—	2
Oklahoma	4	—	—	11	—	—	2
South Carolina	11	1	—	1	—	—	—
Tennessee	—	1	2	—	—	—	—
Texas	10	3	—	21	13	—	14
Utah	19	2	—	18	4	—	3
Virginia	—	9	—	4	4	—	3
Wisconsin	—	—	1	—	—	—	—
Wyoming	1	—	—	2	—	—	2
Total US	103	100	13	122	50	3	69
British Columbia, Canada	—	2	—	—	1	—	6
Total	103	102	13	122	51	3	75

*Other primarily consists of office space.

ITEM  3.LEGAL PROCEEDINGS.  

The information set forth under “—Legal Proceedings” in Item 1, “Business,” is incorporated herein by reference.

ITEM  4.MINE SAFETY DISCLOSURES. 

The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.104) is included in Exhibit 95.1 to this report.

EXECUTIVE OFFICERS OF THE COMPANY

Pursuant to General Instruction G(3) to Form 10-K, certain of the information regarding our executive officers required by Items 401(b) and (e) of Regulation S-K is hereby included in Part I of this report.

Thomas W. Hill,  62, President and Chief Executive Officer. Mr. Hill is the founder of Summit Materials and has been President and Chief Executive Officer since its inception. He has been a member of our Board of Directors since August 2009. From 2006 to 2008, he was the Chief Executive Officer of Oldcastle, Inc. (“Oldcastle”), the North American arm of CRH plc, one of the world's leading construction materials companies. Mr. Hill served on the CRH plc Board of Directors from 2002 to 2008 and, from 1992 to 2006, ran the Materials division of Oldcastle. Mr. Hill served as Chairman of the American Road and Transportation Builders Association (“ARTBA”) from 2002 to 2004, during congressional consideration of the multi-year transportation bill “SAFETEA-LU.” Mr. Hill has been Treasurer of both the National Asphalt Pavement Association and the National Stone Association, and he remains active with ARTBA’s Executive Committee. Mr. Hill received a Bachelor of Arts in Economics and History from Duke University and a Masters of Business Administration from Trinity College in Dublin, Ireland.

Thomas A. Beck, 60, Executive Vice President and Cement Division President. Mr. Beck joined the Company in May 2010 when the Company purchased a controlling interest in Continental Cement. Mr. Beck is Executive Vice President and Cement Division President, a position he has held since January 2013. He was a Senior Vice President with Continental Cement from 2005 to 2013 and its VP, Sales & Marketing, from l 996 to 2005. Mr. Beck also held

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various positions with Holnam (predecessor to Holcim (US) Inc.) from 1987 to 1996. Mr. Beck currently serves on the Executive Committee and is Vice Chairman of the Portland Cement Association and is active on several cement and concrete industry boards. Mr. Beck received a Bachelor of Science degree in Civil Engineering from the University of Illinois.

Anne Lee Benedict, 45, Executive Vice President, Chief Legal Officer and Secretary. Ms. Benedict joined the Company in October 2013. Prior to joining the Company, Ms. Benedict was a corporate partner in the Washington, D.C. office of Gibson, Dunn & Crutcher LLP, where she had practiced since 2000. Ms. Benedict's practice involved a wide range of corporate law matters, including mergers and acquisitions, joint ventures and other strategic transactions, securities offerings, securities regulation and corporate governance matters. Ms. Benedict received a Bachelor of Arts degree in English and Psychology from the University of Michigan and a Juris Doctor from the University of Pennsylvania Law School.

Michael J. Brady, 50, Executive Vice President and Chief Business Development Officer. Mr. Brady joined the Company in April 2009 after having been a Senior Vice President at CRH Plc’s U.S. subsidiary, Oldcastle, with overall responsibility for acquisitions and business development, having joined Oldcastle in 2000. Prior to that, Mr. Brady worked in several operational and general management positions in the paper and packaging industry in Ireland, the United Kingdom and Asia Pacific with the Jefferson Smurfit Group, plc (now Smurfit Kappa Group plc). Mr. Brady received a Bachelor of Engineering (Electrical) and a Master of Engineering Science (Microelectronics) from University College, Cork in Ireland and a Master of Business Administration degree from INSEAD in France.

M. Shane Evans, 47, Executive Vice President and West Division President. Mr. Evans joined the Company as West Region President in August 2010 with over 20 years of experience in the construction materials industry. Prior to joining the Company, Mr. Evans worked at Oldcastle for 12 years, most recently as a Division President. He started his career working in his family's construction and materials business where he held various operational and executive positions. Mr. Evans received a Bachelor of Science degree from Montana State University.

Brian J. Harris, 61, Executive Vice President and Chief Financial Officer. Mr. Harris joined the Company as Chief Financial Officer in October 2013 after having been Executive Vice President and Chief Financial Officer of Bausch & Lomb Holdings Incorporated, a leading global eye health company, from 2009 to 2013. From 1990 to 2009, Mr. Harris held positions of increasing responsibility with industrial, automotive, building products and engineering manufacturing conglomerate Tomkins plc, including President of the $2 billion worldwide power transmission business for Gates Corporation, and Senior Vice President for Strategic Business Development and Business Administration, Chief Financial Officer and Secretary of Gates Corporation. Mr. Harris received a Bachelor of Accountancy from Glasgow University and is qualified as a Scottish Chartered Accountant.

Damian J. Murphy, 48, Executive Vice President and East Division President. Mr. Murphy joined the Company in August 2009 with over 20 years of experience in the construction materials and mining industries, working with both public and privately held companies. Prior to joining the Company, Mr. Murphy served roles as regional president and company president for Oldcastle starting in 2004. Prior to that Mr. Murphy served as vice president of Aggregate Industries' Rocky Mountain region, responsible for aggregates and hot mix asphalt production and sales. Before joining Aggregate Industries, Mr. Murphy worked in the mid-Atlantic for a top 10 privately held aggregate supplier and began his career in the industry in Europe. Mr. Murphy received a Bachelor of Engineering degree with a concentration in Minerals Engineering from the Cambome School of Mines/ Exeter University in the United Kingdom. Mr. Murphy is not related to Summit Inc. director John R. Murphy. Mr. Murphy will be leaving his role at the Company effective March 31, 2018.

Karl H. Watson Jr.,  53,Executive Vice President and Chief Operating Officer. Mr. Watson joined the Company in January 2018 with over 25 years of experience in the construction materials industry. From January 2017 to December 2017, Mr. Watson served as President, Cement & Southwest Ready Mix at Martin Marietta. Prior to joining Martin Marietta, Mr. Watson served in various leadership positions at CEMEX, and Rinker Group Ltd., an Australian building materials supplier that was acquired by CEMEX in 2007. From January 2016 to June 2016, Mr. Watson served as an advisor to CEMEX, where he was previously the President of CEMEX USA and Global Relation Manager, Network Leader, from 2011 to 2015. From 2008 to 2011, Mr. Watson served as President of CEMEX, Florida and CEMEX, East, USA. From 1988 to 2008, Mr. Watson served in various positions at Rinker Group Ltd., including, most recently, Regional President, Rinker Materials West from 2004 to 2008. Mr. Watson is currently on the board of directors of the Texas Aggregates & Concrete Association and on the executive committee of the Portland Cement Association where he served as the vice chairman from 2013 to 2015. Mr. Watson has received a Bachelor of Science degree in Business Administration from Palm Beach Atlantic University. 

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PART II 

ITEM  5.MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

Market Information

Summit Inc.’s Class A common stock began publicly trading on the NYSE under the symbol “SUM” on March 11, 2015. Prior to that time, there was no public market for our Class A common stock. Our Class B common stock is not publicly traded. As of February 7, 2018, there were five holders of record of our Class A common stock and 31 holders of record of our Class B common stock.

The above stockholder figure does not include a substantially greater number of holders whose shares are held of record by banks, brokers and other financial institutions. The following table sets forth, for the periods indicated, the high and low sales prices of our Class A common stock as reported by the NYSE from January 3, 2016, through December 30, 2017.

Year ended December 31, 2016	High		Low
First Quarter ended April 2, 2016	$	20.14	$	12.94
Second Quarter ended July 2, 2016	$	22.69	$	18.14
Third Quarter ended October 1, 2016	$	22.39	$	17.24
Fourth Quarter ended December 31, 2016	$	24.72	$	17.80
Year ended December 30, 2017	High		Low
First Quarter ended April 1, 2017	$	26.09	$	21.88
Second Quarter ended July 1, 2017	$	28.87	$	23.39
Third Quarter ended September 30, 2017	$	32.04	$	26.00
Fourth Quarter ended December 30, 2017	$	32.59	$	28.45

As of February 14, 2018, 100% of the outstanding limited liability company interests of Summit LLC were held by Summit Materials Intermediate Holdings, LLC, an indirect subsidiary of Summit Inc. There is no established public trading market for limited liability company interests of Summit LLC.

Dividends

On December 22, 2017 and December 28, 2016, Summit Inc. paid a stock dividend of 0.014 shares and 0.012 shares, respectively, of its Class A common stock for each then outstanding share of Class A common stock as of the applicable record dates. Summit Holdings makes cash distributions to Summit Holdings’ LP Unit holders to cover tax obligations arising from allocated taxable income. As an LP Unit holder, Summit Inc. received cash distributions from Summit Holdings in excess of the amount required to satisfy Summit Inc.’s tax obligations. In fiscal 2017 and 2016, Summit Inc. primarily used the excess cash of approximately $45.0 million and $26.9 million, respectively, to acquire newly-issued LP Units from Summit Holdings. The LP Units were purchased at a per unit price of $29.60 and $23.72, respectively, which is the volume weighted average price per share of the Class A common stock for the five trading days ended November 27, 2017 and December 1, 2016, respectively. Immaterial cash payments were made in lieu of fractional shares.

If Summit Inc. uses future excess tax distributions to purchase additional LP Units, we anticipate that in order to maintain the relationship between the shares of Class A common stock and the LP Units, our board of directors may continue to declare stock dividends on the Class A common stock.

Summit Inc. has no current plans to pay cash dividends on its Class A common stock. The declaration, amount and payment of any future dividends on shares of Class A common stock is at the sole discretion of our board of directors and we may reduce or discontinue entirely the payment of any such dividends at any time. Our board of directors may take into account general and economic conditions, our financial condition and operating results, our available cash and current and anticipated cash needs, capital requirements, contractual, legal, tax and regulatory restrictions and implications on the payment of dividends by us to our stockholders or by our subsidiaries to us, and such other factors as our board of directors may deem relevant.

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Summit Inc. is a holding company and has no material assets other than its ownership of LP Units. Should we decide to pay a cash dividend on our Class A common stock in the future, we anticipate funding this cash dividend by causing Summit Holdings to make distributions to Summit Inc. in an amount sufficient to cover such dividend, whereupon the other holders of LP Units will also be entitled to receive distributions pro rata in accordance with the percentages of their respective limited partnership interests. Because Summit Inc. must pay taxes and make payments under the TRA, any amounts ultimately distributed as dividends to holders of our Class A common stock are expected to be less on a per share basis than the amounts distributed by Summit Holdings to its partners on a per LP Unit basis.

The agreements governing our senior secured credit facilities and the Senior Notes contain a number of covenants that restrict, subject to certain exceptions, Summit LLC’s ability to pay distributions to its parent company and ultimately to Summit Inc. See Note 8, Debt, to our consolidated financial statements.

Any financing arrangements that we enter into in the future may include restrictive covenants that limit our ability to pay dividends. In addition, Summit Holdings is generally prohibited under Delaware law from making a distribution to a limited partner to the extent that, at the time of the distribution, after giving effect to the distribution, liabilities of Summit Holdings (with certain exceptions) exceed the fair value of its assets.

Subsidiaries of Summit Holdings are generally subject to similar legal limitations on their ability to make distributions to Summit Holdings.

Issuer Purchases of Equity Securities

During the quarter and year ended December 30, 2017, we did not purchase any of our equity securities that are registered under Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

Unregistered Sales of Equity Securities

There were no unregistered sales of equity securities which have not been previously disclosed in a quarterly report on Form 10-Q or a current report on Form 8-K during the year ended December 30, 2017.

ITEM  6.SELECTED FINANCIAL DATA.

The following selected financial data should be read together with the more detailed information contained in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and the related notes thereto included elsewhere in this report. Summit Holdings, which commenced operations on August 26, 2009, is considered Summit Inc.’s predecessor for accounting purposes, and its consolidated financial statements are Summit Inc.’s historical financial statements. Under U.S. GAAP, Summit Holdings meets the definition of a variable interest entity.

The following tables set forth consolidated financial data for the five most recent years, derived from Summit Inc.’s and Summit LLC’s audited consolidated financial statements. The selected statements of operations data for the years ended December 30, 2017, December 31, 2016 and January 2, 2016 and the selected balance sheet data as of December 30, 2017 and December 31, 2016 are derived from audited consolidated financial statements included elsewhere in this report. The selected statements of operations data for the years ended December 27, 2014 and December 28, 2013 and the selected balance sheet data as of January 2, 2016, December 27, 2014 and December 28, 2013 are derived from audited consolidated financial statements not included in this report.

Our fiscal year is based on a 52-53 week year with each quarter consisting of 13 weeks ending on a Saturday. The 53-week year occurs approximately once every seven years, including 2015. The additional week in the 53-week year was included in the fourth quarter. Historical results are not necessarily indicative of the results to be expected in the future.

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Summit Materials, Inc.

	Year Ended
	December 30,		December 31,		January 2,		December 27,		December 28,
($ in thousands)	2017		2016		2016		2014		2013
Statement of Operations Data:
Total revenue	$	1,932,575	$	1,626,063	$	1,432,297	$	1,204,231	$	916,201
Income (loss) from continuing operations	$	125,777	$	46,126	$	(931)	$	(6,353)	$	(103,151)
Net income per share of Class A common stock:
Basic	$	1.12	$	0.52	$	0.68
Diluted	$	1.11	$	0.52	$	0.50
Balance Sheet Data (as of period end):
Total assets		3,787,333		2,781,466		2,396,179		1,712,653		1,237,680
Total debt, including current portion of long-term debt, excluding original issuance premium or discount and deferred financing costs		1,835,375		1,540,250		1,296,750		1,040,670		695,890
Capital leases		35,723		39,314		44,822		31,210		8,026
Other Financial Data (as of period end):
Ratio of earnings to fixed charges(1)		2.0 x		1.6 x		0.8 x		0.8 x		N/A

(1) The ratio of earnings to fixed charges is determined by dividing adjusted earnings, as calculated in Exhibit 12.1 hereto, by fixed charges. Fixed charges consist of interest on indebtedness plus that portion of operating lease rentals representative of the interest factor (deemed to be 33% of operating lease rentals). Earnings were insufficient to cover fixed charges by $19.1 million, $14.0 million, and $107.5 million in fiscal 2015, 2014 and 2013, respectively.

Summit Materials, LLC

	Year Ended
	December 30,		December 31,		January 2,		December 27,		December 28,
(in thousands)	2017		2016		2016		2014		2013
Statement of Operations Data:
Total revenue	$	1,932,575	$	1,626,063	$	1,432,297	$	1,204,231	$	916,201
Income (loss) from continuing operations	$	134,041	$	62,087	$	(59)	$	(6,353)	$	(103,151)
Balance Sheet Data (as of period end):
Total assets		3,504,241		2,776,420		2,395,162		1,712,653		1,234,414
Total debt, including current portion of long-term debt, excluding original issuance premium or discount and deferred financing costs		1,835,375		1,540,250		1,296,750		1,040,670		695,890
Capital leases		35,723		39,314		44,822		31,210		8,026
Other Financial Data (as of period end):
Ratio of earnings to fixed charges(1)		2.0 x		1.6 x		0.8 x		0.8 x		N/A

(1) The ratio of earnings to fixed charges is determined by dividing adjusted earnings, as calculated in Exhibit 12.1 hereto, by fixed charges. Fixed charges consist of interest on indebtedness plus that portion of operating lease rentals representative of the interest factor (deemed to be 33% of operating lease rentals). Earnings were insufficient to cover fixed charges by $19.1 million, $14.0 million, and $107.5 million in fiscal 2015, 2014 and 2013, respectively.

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ITEM 7.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

This Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to assist in understanding and assessing the trends and significant changes in our results of operations and financial condition. Historical results may not be indicative of future performance. Forward-looking statements reflect our current views about future events, are based on assumptions and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those contemplated by these statements. Factors that may cause differences between actual results and those contemplated by forward-looking statements include, but are not limited to, those discussed in the section entitled “Risk Factors” and any factors discussed in the sections entitled “Disclosure Regarding Forward-Looking Statements” and “Risk Factors” of this report. This Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the “Selected Historical Consolidated Financial Data,” our audited consolidated annual financial statements and the related notes thereto and other information included in this report.

Overview

We are one of the fastest growing construction materials companies in the United States, with a 111% increase in revenue between the year ended December 28, 2013 and the year ended December 30, 2017. Within our markets, we offer customers a single-source provider for construction materials and related downstream products through our vertical integration. Our materials include aggregates, which we supply across the United States, and in British Columbia, Canada, and cement, which we supply to surrounding states along the Mississippi River from Minneapolis to New Orleans. In addition to supplying aggregates to customers, we use our materials internally to produce ready-mix concrete and asphalt paving mix, which may be sold externally or used in our paving and related services businesses. Our vertical integration creates opportunities to increase aggregates volumes, optimize margin at each stage of production and provide customers with efficiency gains, convenience and reliability, which we believe gives us a competitive advantage. 

Since our inception in 2009, we have completed dozens of acquisitions, which are organized into 12 operating companies that make up our three distinct operating segments—West, East and Cement. We operate in 23 U.S. states and British Columbia, Canada.  Our highly experienced management team, led by our President and Chief Executive Officer, Tom Hill, who has over 35 years of industry experience, has successfully enhanced the operations of acquired companies by focusing on scale advantages, cost efficiencies and pricing discipline to improve profitability and cash flow.

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We operate in 23 U.S. states and in British Columbia, Canada and currently have assets in 22 U.S. states and British Columbia, Canada. The map below illustrates our geographic footprint:

Business Trends and Conditions

The U.S. construction materials industry is composed of four primary sectors: aggregates; cement; ready-mix concrete; and asphalt paving mix. Each of these materials is widely used in most forms of construction activity. Participants in these sectors typically range from small, privately-held companies focused on a single material, product or market to multinational corporations that offer a wide array of construction materials and services. Competition is constrained in part by the distance materials can be transported efficiently, resulting in predominantly local or regional operations. Due to the lack of product differentiation, competition for all of our products is predominantly based on price and, to a lesser extent, quality of products and service. As a result, the prices we charge our customers are not likely to be materially different from the prices charged by other producers in the same markets. Accordingly, our profitability is generally dependent on the level of demand for our products and our ability to control operating costs.

Our revenue is derived from multiple end-use markets including public infrastructure construction and private residential and nonresidential construction. Public infrastructure includes spending by federal, state, provincial and local governments for roads, highways, bridges, airports and other infrastructure projects. Public infrastructure projects have

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historically been a relatively stable portion of state and federal budgets. Residential and nonresidential construction consists of new construction and repair and remodel markets. Any economic stagnation or decline, which could vary by local region and market, could affect our results of operations. Our sales and earnings are sensitive to national, regional and local economic conditions and particularly to cyclical changes in construction spending, especially in the private sector. From a macroeconomic view, we see positive indicators for the construction sector, including upward trends in highway obligations, housing starts and construction employment. All of these factors should result in increased construction activity in the private sector. However, construction activity is not consistent across the United States. Certain of our markets are showing solid growth, other markets, notably Kansas, have experienced a decrease.

Transportation infrastructure projects, driven by both federal and state funding programs, represent a significant share of the U.S. construction materials market. Federal funds are allocated to the states, which are required to match a portion of the federal funds they receive. Federal highway spending uses funds predominantly from the Federal Highway Trust Fund, which derives its revenue from taxes on diesel fuel, gasoline and other user fees. The dependability of federal funding allows the state departments of transportation to plan for their long term highway construction and maintenance needs. Funding for the existing federal transportation funding program extends through 2020. With the nation’s infrastructure aging, there is increased demand by states and municipalities for long-term federal funding to support the construction of new roads, highways and bridges in addition to the maintaining the existing infrastructure. The U.S. President and his administration have called for, among other things, an infrastructure stimulus plan. However, there is currently a lack of clarity around both the timing and details of any such infrastructure plan and the impact, if any, it or other proposed changes in law and regulations may have on our business.

In addition to federal funding, state, county and local agencies provide highway construction and maintenance funding. Our four largest states by revenue, Texas, Utah, Kansas and Missouri, represented approximately 21%, 13%, 12% and 9%, respectively, of our total revenue in 2017. The following is a summary of key funding initiatives in those states:

· According to the Texas Department of Transportation (“TXDOT”) total annual funding available for transportation infrastructure, including state and federal funding, is estimated to be approximately $10.3 billion in fiscal year 2018 (commencing September 1, 2017), increasing to $14.3 billion by fiscal year 2020.  Texas’ Unified Transportation Program plans for $70 billon to fund transportation projects from 2017 through 2026.

o In November 2014, Texas voters approved a ballot measure known as Proposition 1, which authorized a portion of the severance taxes on oil and natural gas to be redirected to the State Highway Fund each year.  As of November 2017, TXDOT anticipates that funding from Proposition 1 for fiscal year 2018 will be in excess of $550 million, increasing to more than $800 million by fiscal year 2020.

o In November 2015, voters approved the ballot measure known as Proposition 7, authorizing a constitutional amendment for transportation funding. The amendment dedicates a portion of the state’s general sales and use taxes and motor vehicle sales and rental taxes to the State Highway Fund for use on non-tolled projects. Beginning in September 2017 (fiscal year 2018), if general state sales and use tax revenue exceeds $28 billion in a fiscal year, the next $2.5 billion will be directed to the State Highway Fund. Additionally, beginning in September 2019 (fiscal year 2020), if state motor vehicle sales and rental tax revenue exceeds $5 billion in a fiscal year, 35% of the amount above $5 billion will be directed to the State Highway Fund.  As of November 2017, TXDOT anticipated that funding from Proposition 7 for fiscal year 2019 would be approximately $2.9 billion dollars, increasing to more than $4.7 billion by fiscal year 2020.

· Utah’s transportation investment fund has $2.3 billion programmed for 2017 through 2022. In early 2017, Utah’s governor signed into law a measure to allow the state to issue up to $1 billion in highway general obligation bonds to accelerate funding for a number of projects that the Utah Transportation Commission already approved. 

· Kansas has a 10‑year $8.2 billion highway bill that was passed in May 2010. Kansas public spending in 2018 is expected to approximate 2017 levels, and may decrease below those levels in 2019 given austerity measures put into effect under the most recent gubernatorial administration.

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· Missouri’s Statewide Transportation Improved Program for 2017 through 2021 states that $4.0 billion is available for awards for highway and bridge construction.

The table below sets forth additional details regarding our four key states, including growth rates as compared to the U.S. as a whole:

					Projected Industry Growth by End Market
			Revenue by End Market(1)		2018 to 2020(2)
	Percentage of		Residential and
	Our Total		Nonresidential		Residential		Nonresidential
State	Revenue		Construction		Construction		Construction
Texas	21	%	59	%	4.0	%	6.7	%
Utah	13	%	92	%	6.5	%	17.5	%
Kansas	12	%	52	%	8.3	%	5.2	%
Missouri	9	%	73	%	11.6	%	8.1	%
Weighted average(3)					6.8	%	9.2	%
United States(2)					9.1	%	5.5	%

(1) Percentages based on our revenue by state for the year ended December 30, 2017 and management’s estimates as to end markets.

(2) Source: PCA

(3) Calculated using a weighted average based on each state’s percentage contribution to our total revenue.

Use and consumption of our products fluctuate due to seasonality. Nearly all of the products used by us, and by our customers, in the private construction and public infrastructure industries are used outdoors. Our highway operations and production and distribution facilities are also located outdoors. Therefore, seasonal changes and other weather-related conditions, in particular extended rainy and cold weather in the spring and fall and major weather events, such as hurricanes, tornadoes, tropical storms and heavy snows, can adversely affect our business and operations through a decline in both the use of our products and demand for our services. In addition, construction materials production and shipment levels follow activity in the construction industry, which typically occurs in the spring, summer and fall. Warmer and drier weather during the second and third quarters of our fiscal year typically result in higher activity and revenue levels during those quarters.

Our acquisition strategy has historically required us to raise capital through equity issuances or debt financings. As of December 30, 2017 and December 31, 2016, our long-term borrowings, including the current portion, totaled $1.8 billion and $1.5 billion. In addition, our cash flows provided by operating activities was $292.2 million in the year ended December 30, 2017. Our senior secured revolving credit facility, which has maximum availability of $235.0 million, of which $218.9 million is currently available to us after deducting $16.1 million of outstanding letters of credit has been adequate to fund our seasonal working capital needs and certain acquisitions. We had no outstanding borrowings on the revolving credit facility as of December 30, 2017.

Financial Highlights—Year Ended December 30, 2017

The principal factors in evaluating our financial condition and operating results for the year ended December 30, 2017 are:

· Net revenue increased $264.1 million in 2017, as a result of pricing and volume increases across our product lines, which includes contributions from our acquisitions.

· Our operating income increased $66.2 million in 2017, primarily due to increases in net revenue from acquisitions, and to a lesser extent, organic growth, partially offset by increases in the related costs of revenue. Our general and administrative expenses in 2017 are lower than the comparable periods in 2016. Our 2016 results included $37.3 million of stock-based compensation charges related to the modification of LP Units and stock options that had been granted prior to our IPO. Excluding those one time equity modification expenses, our general and administrative expenses are essentially flat as a percentage of net revenue.

· We paid $374.9 million in cash for 14 acquisitions, net of cash acquired.

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· In June 2017, we issued $300.0 million of 51/₈%  senior notes due June 1, 2025 (the “2025 Notes”), resulting in proceeds of $295.4 million, net of related fees and expenses.

· In January 2017, we raised $237.6 million, net of underwriting discounts, through the issuance of 10,000,000 shares of Class A common stock at a public offering price of $24.05 per share.

· For the year ended December 30, 2017, we recorded an income tax benefit of $284.0 million, primarily due to a $532.0 million reduction of our valuation allowance against our deferred tax assets during 2017, offset by a reduction in the carrying value of our deferred tax assets of $235.2 million in the fourth quarter of 2017 as a result of Tax Cuts and Jobs Act of 2017 (the “TCJA”).

· As those deferred tax assets referred to above were also subject to our TRA, we recorded TRA expense of $271.0 million of which $501.8 million was in the third quarter of 2017 when we released our valuation allowance, offset by a reduction in the fourth quarter of 2017 in our estimated TRA liability of $216.9 million primarily due to the reduced federal corporate tax rate.

Acquisitions

In addition to our organic growth, we continued to grow our business through acquisitions, completing a total of 14 acquisitions in 2017, of which six were in the West segment and eight were in the East segment. 

Components of Operating Results

Total Revenue

We derive our revenue predominantly by selling construction materials and products and providing paving and related services. Construction materials consist of aggregates and cement. Products consist of related downstream products, including ready-mix concrete, asphalt paving mix and concrete products. Paving and related services that we provide are primarily asphalt paving services.

Revenue derived from the sale of construction materials are recognized when risks associated with ownership have passed to unaffiliated customers. Typically this occurs when products are shipped. Product revenue generally includes sales of aggregates, cement and related downstream products and other materials to customers, net of discounts or allowances and taxes, if any.

Revenue derived from paving and related services are recognized on the percentage-of-completion basis, measured by the cost incurred to date compared to estimated total cost of each project. This method is used because management considers cost incurred to be the best available measure of progress on these contracts. Due to the inherent uncertainties in estimating costs, it is at least reasonably possible that the estimates used will change over the life of the contract.

Operating Costs and Expenses

The key components of our operating costs and expenses consist of the following:

Cost of Revenue (excluding items shown separately)

Cost of revenue consists of all production and delivery costs and primarily includes labor, repair and maintenance, utilities, raw materials, fuel, transportation, subcontractor costs, royalties and other direct costs incurred in the production and delivery of our products and services. Our cost of revenue is directly affected by fluctuations in commodity energy prices, primarily diesel fuel, liquid asphalt and other petroleum-based resources. As a result, our operating profit margins can be significantly affected by changes in the underlying cost of certain raw materials if they are not recovered through corresponding changes in revenue. We attempt to limit our exposure to changes in commodity energy prices by entering into forward purchase commitments when appropriate. In addition, we have sales price adjustment provisions that provide for adjustments based on fluctuations outside a limited range in certain energy-related production costs. These provisions are in place for most of our public infrastructure contracts, and we seek to include similar price adjustment provisions in our private contracts.

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General and Administrative Expenses

General and administrative expenses consist primarily of salaries and personnel costs, including stock-based compensation charges, for our sales and marketing, administration, finance and accounting, legal, information systems, human resources and certain managerial employees. Additional expenses include audit, consulting and professional fees, travel, insurance, rental costs, property taxes and other corporate and overhead expenses.

Depreciation, Depletion, Amortization and Accretion

Our business is capital intensive. We carry property, plant and equipment on our balance sheet at cost, net of applicable depreciation, depletion and amortization. Depreciation on property, plant and equipment is computed on a straight-line basis or based on the economic usage over the estimated useful life of the asset. The general range of depreciable lives by category, excluding mineral reserves, which are depleted based on the units of production method on a site-by-site basis, is as follows:

Buildings and improvements	10 - 30	years
Plant, machinery and equipment	15 - 20	years
Office equipment	3 - 7	years
Truck and auto fleet	5 - 8	years
Mobile equipment and barges	6 - 8	years
Landfill airspace and improvements	10 - 30	years
Other	4 - 20	years

Amortization expense is the periodic expense related to leasehold improvements and intangible assets. The intangible assets were recognized with certain acquisitions and are generally amortized on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized over the lesser of the life of the underlying asset or the remaining lease term.

Accretion expense is the periodic expense recorded for the accrued mining reclamation liabilities and landfill closure and post-closure liabilities using the effective interest method.

Transaction Costs

Transaction costs consist primarily of third party accounting, legal, valuation and financial advisory fees incurred in connection with acquisitions.

Results of Operations

The following discussion of our results of operations is focused on the key financial measures we use to evaluate the performance of our business from both a consolidated and operating segment perspective. Operating income and margins are discussed in terms of changes in volume, pricing and mix of revenue source (i.e., type of product sales or service revenue). We focus on operating margin, which we define as operating income as a percentage of net revenue, as a key metric when assessing the performance of the business, as we believe that analyzing changes in costs in relation to changes in revenue provides more meaningful insight into the results of operations than examining costs in isolation.

Operating income (loss) reflects our profit from continuing operations after taking into consideration cost of revenue, general and administrative expenses, depreciation, depletion, amortization and accretion and transaction costs. Cost of revenue generally increases ratably with revenue, as labor, transportation costs and subcontractor costs are recorded in cost of revenue. As a result of our revenue growth occurring primarily through acquisitions, general and administrative expenses and depreciation, depletion, amortization and accretion have historically grown ratably with revenue. However, as organic volumes increase, we expect these costs, as a percentage of revenue, to decrease. General and administrative expenses as a percentage of revenue vary throughout the year due to the seasonality of our business.  Our transaction costs fluctuate with the level acquisition activity each year.

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The table below includes revenue and operating income (loss) by segment for the periods indicated. Operating income (loss) by segment is computed as earnings before interest, taxes and other income / expense.

	Year ended
	December 30, 2017				December 31, 2016				January 2, 2016
			Operating				Operating				Operating
(in thousands)	Revenue		income (loss)		Revenue		income (loss)		Revenue		income (loss)
West	$	998,843	$	130,334	$	813,682	$	100,659	$	804,503	$	96,498
East		629,919		67,739		531,294		65,424		432,310		49,445
Cement		303,813		89,360		281,087		82,521		195,484		64,950
Corporate (1)		—		(66,556)		—		(93,942)		—		(75,869)
Total	$	1,932,575	$	220,877	$	1,626,063	$	154,662	$	1,432,297	$	135,024

(1)Corporate results primarily consist of compensation and office expenses for employees included in the Company's headquarters. For the year ended December 31, 2016, we recognized $37.3 million of stock-based compensation charges associated with certain LP Units converted and options granted at the time of the IPO for which the performance metrics were met or waived in 2016.  Approximately $28.3 million of costs associated with the IPO were included in the operating loss in the year ended January 2, 2016.  

Consolidated Results of Operations

The table below sets forth our consolidated results of operations for the periods indicated:

	2017		2016		2015
(in thousands)
Net revenue	$	1,752,409	$	1,488,274	$	1,289,966
Delivery and subcontract revenue		180,166		137,789		142,331
Total revenue		1,932,575		1,626,063		1,432,297
Cost of revenue (excluding items shown separately below)		1,281,777		1,071,792		990,262
General and administrative expenses		242,670		243,512		177,769
Depreciation, depletion, amortization and accretion		179,518		149,300		119,723
Transaction costs		7,733		6,797		9,519
Operating income		220,877		154,662		135,024
Interest expense (1)		108,549		97,536		84,629
Loss on debt financings		4,815		—		71,631
Tax receivable agreement expense (1)		271,016		14,938		—
Other (income) expense, net		(5,303)		1,361		(2,042)
(Loss) income from operations before taxes (1)		(158,200)		40,827		(19,194)
Income tax benefit		(283,977)		(5,299)		(18,263)
Income (loss) from continuing operations		125,777		46,126		(931)
Income from discontinued operations		—		—		(2,415)
Net income (1)	$	125,777	$	46,126	$	1,484

(1) The statement of operations above is based on the financial results of Summit Inc. and its subsidiaries, which was $8.3 million, $16.0 million and $0.9 million less than Summit LLC and its subsidiaries in the years ended December 30, 2017, December 31, 2016 and January 2, 2016, respectively, due to interest expense associated with a deferred consideration obligation, TRA expense and income tax benefit are obligations of Summit Holdings and Summit Inc., respectively and are thus excluded from Summit LLC’s consolidated net income.

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Fiscal Year 2017 Compared to 2016

($ in thousands)	2017			2016			Variance
Net revenue	$	1,752,409		$	1,488,274		$	264,135	17.7	%
Operating income		220,877			154,662			66,215	42.8	%
Operating margin percentage		12.6	%		10.4	%
Adjusted EBITDA (1)	$	435,777		$	371,347		$	64,430	17.4	%

(1) Adjusted EBITDA is a non-GAAP measure that we find helpful in monitoring the performance of our business. See the definition of and the reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, net income, below.

Net revenue increased $264.1 million for the year ended December 30, 2017, primarily resulting from our acquisition program. Of the increase in net revenue, $80.5 million was from increased sales of materials, $146.4 million was from increased sales of products and $37.2 million was from increased service revenue. We generated organic volume growth in our aggregates, cement and asphalt lines of business in 2017 over the prior year. Additional discussion about the impact of acquisitions on each segment is presented in more detail below.

For the year ended December 30, 2017, our net revenue growth was $212.1 million and $52.0 million from acquisitions and organic revenue, respectively. Operating income increased by $66.2 million in 2017 as compared to 2016 as a result of a decrease in our general administrative expenses items referred to above, offset by an increase in our depreciation, depletion, amortization and accretion, and transaction costs. In 2017, we recognized $21.1 million of stock-based compensation compared to $49.9 million in 2016, of which $37.3 million were charges associated with certain LP Units exchanged and options granted at the time of the IPO for which the performance metrics were met or waived. Our depreciation, depletion, amortization and accretion increased $30.2 million largely due to acquisitions completed in 2017 and 2016.

Our operating margin percentage improved from 10.4% to 12.6% for the year ended December 30, 2017, due to pricing on materials and cement volume growth. Adjusted EBITDA, as defined below, increased by $64.4 million in the year ended December 30, 2017 as compared to the year ended December 31, 2016.

During 2017 and 2016, certain limited partners of Summit Holdings exchanged their LP Units for shares of Class A common stock of Summit Inc. The following table summarizes the changes in our ownership of Summit Holdings:

	Summit Inc. Shares (Class A)	LP Units	Total	Summit Inc. Ownership Percentage
Balance — January 2, 2016 (1)	52,402,692	50,275,825	102,678,517	51.0	%
Issuance of Class A shares	1,038	-	1,038
Exchanges during period	45,124,528	(45,124,528)	-
Other equity transactions	26,020	-	26,020
Balance — December 31, 2016 (1)	97,554,278	5,151,297	102,705,575	95.0	%
January 2017 public offering	10,000,000	-	10,000,000
Exchanges during period	1,461,677	(1,461,677)	-
Other equity transactions	1,334,639	-	1,334,639
Balance — December 30, 2017	110,350,594	3,689,620	114,040,214	96.8	%

(1) The January 2, 2016 balance of Summit Inc. Class A Shares of 52,402,692 is shown to reflect the retroactive application of 1,135,692 and 1,521,056 shares of Class A common stock issued as a stock dividend on December 28, 2016 and December 22, 2017, respectively.  The December 31, 2016 balance of Summit Inc. Class A Shares of

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97,554,278 is shown to reflect the retroactive application of 1,521,056 shares of Class A common stock issued as a stock dividend on December 22, 2017.

During 2016, a significant number of LP Units were exchanged for shares of Class A common stock. As a result, the ownership percentage of the noncontrolling interest decreased from 49.0% as of January 2, 2016 to 5.0% as of December 31, 2016. Although LP Units continued to be exchanged for shares of Class A common stock during 2017, the change in the ownership percentage of the noncontrolling interest was from 5.0% at the beginning of 2017 to 3.2% as of December 30, 2017. As a result of this exchange activity in 2017 and 2016, although net income increased by $79.7 million for the year ended December 30, 2017, the amount of net income attributable to Summit Holdings decreased from $9.3 million in 2016 to $4.0 million in 2017.

As a vertically-integrated company, we include intercompany sales from materials to products and from products to services when assessing the operating results of our business. We refer to revenue inclusive of intercompany sales as gross revenue. These intercompany transactions are eliminated in the consolidated financial statements. Gross revenue by line of business was as follows:

($ in thousands)	2017		2016		Variance
Revenue by product*:
Aggregates	$	415,873	$	355,617	$	60,256	16.9	%
Cement		286,360		256,046		30,314	11.8	%
Ready-mix concrete		493,089		396,597		96,492	24.3	%
Asphalt		307,654		263,652		44,002	16.7	%
Paving and related services		599,378		502,458		96,920	19.3	%
Other		(169,779)		(148,307)		(21,472)	(14.5)	%
Total revenue	$	1,932,575	$	1,626,063	$	306,512	18.8	%

*        Revenue by product includes intercompany and intracompany sales transferred at market value. The elimination of intracompany transactions is included in Other. Revenue from the liquid asphalt terminals is included in asphalt revenue.

Detail of our volumes and average selling prices by product for the years ended December 30, 2017 and December 31, 2016 were as follows:  

	2017			2016
	Volume(1)			Volume(1)			Percentage Change in
	(in thousands)	Pricing(2)		(in thousands)	Pricing(2)		Volume		Pricing
Aggregates	41,712	$	9.97	36,092	$	9.85	15.6	%	1.2	%
Cement	2,547		112.42	2,357		108.63	8.1	%	3.5	%
Ready-mix concrete	4,680		105.37	3,823		103.74	22.4	%	1.6	%
Asphalt	5,263		54.19	4,359		54.74	20.7	%	(1.0)	%

(1) Volumes are shown in tons for aggregates, cement and asphalt and in cubic yards for ready-mix concrete.

(2) Pricing is shown on a per ton basis for aggregates, cement and asphalt and on a per cubic yard basis for ready-mix concrete.

Revenue from aggregates increased $60.3 million for the year ended December 30, 2017, primarily due to increased volumes. Aggregate volumes were positively affected by the acquisitions completed in late 2016 and 2017, together with broad based growth in most of our markets, partially offset by declines in our Missouri and Houston markets. Organic aggregate volumes increased 3.4% in 2017 as compared to the prior year primarily from Austin, northeast Texas and Utah, offset by a decline in Houston, Texas. In Houston, 2017 volumes were affected by temporary disruptions related to Hurricane Harvey.  Aggregate pricing of $9.97 per ton slightly increased compared to 2016.

Revenue from cement increased $30.3 million in the year ended December 30, 2017, due primarily to increased volume and improved average selling price. Our organic cement volumes increased 5.8% due to increased volumes to our existing customers. During 2017, pricing for cement improved by 3.5% to $112.42 per ton, primarily resulting from price increases implemented in early 2017.

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Revenue from ready-mix concrete increased $96.5 million for the year ended December 30, 2017, primarily from the acquisitions referred to above. Ready-mix concrete pricing of $105.37 per cubic yard ton in 2017 increased slightly as compared to 2016.

Revenue from asphalt increased $44.0 million for the year ended December 30, 2017. Our organic asphalt volumes increased 10.9% with the balance of the increased volumes coming from acquisitions. Our revenue in Austin, Texas, was higher in 2017 as an aggressive competitor impacted our paving and related services revenue in 2016. In 2017, our marketing efforts were able to improve our market share over 2016 levels in the Austin market. 

Other Financial Information

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“TCJA”) was enacted. Among other things, the TCJA, beginning January 1, 2018, reduced the federal statutory rate from 35% to 21% and extended bonus depreciation provisions. In addition, the application of net operating loss carryforwards generated in 2018 and beyond will be limited, 100% asset expensing will be allowed through 2022 and begin to phase out in 2023, and the amount of interest expense we are able deduct may also be limited in future years.  As a result of the enactment of TCJA and other state effective rate changes, we reduced the carrying value of our net deferred tax assets by $216.9 million to reflect the revised federal statutory rate and other state statutory rates which will be in effect at the time those deferred tax assets are expected to be realized. Further, we evaluated the realizability of our net operating loss carryforwards, and determined a valuation allowance of $1.7 million was still appropriate as of December 30, 2017. The TCJA contains many provisions which will be clarified through new regulations expected to be issued during 2018. As of December 30, 2017, we have not completed the accounting for the tax effects of the TCJA; however, we have made reasonable estimates on our existing deferred tax balances, as permitted by Staff Accounting Bulletin 118 issued by the SEC on December 22, 2017. In addition, we expect the states to consider new statutory provisions related to the enactment of the TCJA during 2018 as well. We will record the impact, if any, of any newly issued regulations, as well as clarifications of the TCJA, as a discrete adjustment to our income tax provision in 2018.

Tax Receivable Agreement Expense

Our TRA expense for the year ended December 30, 2017 was $271.0 million as compared to $14.9 million in the year ended December 31, 2016.  In the third quarter of 2017, based on a release of the valuation allowance related to the TRA deferred tax assets discussed below, we further determined payment of those benefits has become probable under our TRA agreement.  As a result, in the third quarter of 2017, we recorded $501.8 million of TRA expense as our estimate of the realization of our deferred tax assets subject to the TRA had become more likely than not. In the fourth quarter of 2017, after the enactment of the TCJA and other exchanges and adjustments, our estimated liability under the TRA was reduced by $216.9 million primarily due to a decrease in the federal corporate tax rate. This reduction in our TRA liability was recorded as a reduction in our TRA expense during the fourth quarter 2017.

Income Tax Benefit

Our income tax benefit was $284.0 million for the year ended December 30, 2017 as compared to income tax benefit of $5.3 million for the year ended December 31, 2016. We recorded an income tax benefit of $498.3 million in the three months ended September 30, 2017 primarily related to the release of the valuation allowance against our deferred tax assets as discussed below. In the fourth quarter of 2017, we recorded deferred income expense of $216.9 million related to the reduction in carrying value of our deferred tax assets as a result of the decreased federal corporate tax rate as enacted by the TCJA and other state effective rate changes. Our effective income tax rate was higher in 2017 as compared to 2016 primarily due to the benefit associated with the release of the valuation allowance discussed below, the accrual of the TRA expense, the statutory rate change resulting from the TCJA and depletion in excess of U.S. GAAP depletion recognized for the year ended December 30, 2017. The effective tax rate for Summit Inc. differs from the federal rate primarily due to (1) the change in valuation allowance, (2) changes in statutory tax rates, (3) deductions related to TRA expense, (4) tax depletion expense in excess of the expense recorded under U.S. GAAP, (5) the minority interest in the Summit Holdings partnership that is allocated outside of the Company and (6) various other items such as limitations on meals and entertainment, certain stock compensation and other costs.

The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible, as well as consideration of tax-planning strategies we may seek to utilize net operating loss carryforwards that are scheduled to expire in the near future. Due to our limited

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operating history as of December 31, 2016, during which we incurred only a small amount of pre-tax income over the previous three years, as well as our acquisitive business strategy, after considering both positive and negative evidence, we concluded that it was not more likely than not that we would fully realize those deferred tax assets, and therefore recorded a partial valuation allowance against those deferred tax assets as of December 31, 2016. However, the amount of cumulative income increased significantly during the year ended December 30, 2017 and we expect to generate additional income in 2018 and for the foreseeable future that will allow us to utilize the deferred tax assets. As a result of this significant positive evidence, we determined that the deferred tax assets had become more likely than not of becoming realizable and therefore released the majority of the valuation allowance in the third quarter of 2017. The Company updated the analysis as of December 30, 2017. Further, the remaining valuation allowance was adjusted for the impact of the TCJA on certain net operating loss deferred tax assets within the C corporation entities that the Company does not expect to be realized.  

As of December 30, 2017 and December 31, 2016, Summit Inc. had a valuation allowance of $1.7 million and $502.8 million, respectively.

Segment Results of Operations

West Segment

($ in thousands)	2017			2016			Variance
Net revenue	$	899,992		$	736,573		$	163,419	22.2	%
Operating income		130,334			100,659			29,675	29.5	%
Operating margin percentage		14.5	%		13.7	%
Adjusted EBITDA (1)	$	203,590		$	167,434		$	36,156	21.6	%

(1) Adjusted EBITDA is a non-GAAP measure that we find helpful in monitoring the performance of our business. See the reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, net income, below.

Net revenue in the West segment increased $163.4 million for the year ended December 30, 2017, primarily due to incremental revenue from acquisitions. Net revenue growth from acquisitions in 2017 increased $131.7 million, with the balance attributable to organic operations.

The West segment’s operating income improved $29.7 million and Adjusted EBITDA improved $36.2 million in 2017. The improvement in West segment operating income and Adjusted EBITDA was primarily due to improved organic volume growth in aggregates and asphalt, as well as contributions from the acquisitions mentioned above. The operating margin percentage in the West segment increased slightly in 2017 to 14.5% as compared to 13.7% in 2016, despite the impact of Hurricane Harvey, due to the same factors mentioned above. Those same factors also contributed to similar improvements in net revenue, operating income and Adjusted EBITDA in the respective year ends.

Gross revenue by product/ service was as follows:  

($ in thousands)	2017		2016		Variance
Revenue by product*:
Aggregates	$	191,851	$	159,824	$	32,027	20.0	%
Ready-mix concrete		362,042		294,961		67,081	22.7	%
Asphalt		214,561		182,739		31,822	17.4	%
Paving and related services		375,036		314,079		60,957	19.4	%
Other		(144,647)		(137,921)		(6,726)	(4.9)	%
Total revenue	$	998,843	$	813,682	$	185,161	22.8	%

*        Revenue by product includes intercompany and intracompany sales transferred at market value. The elimination of intracompany transactions is included in Other. Revenue from the liquid asphalt terminals is included in asphalt revenue.

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The West segment’s percent changes in sales volumes and pricing in 2017 from 2016 were as follows:

	Percentage Change in
	Volume		Pricing
Aggregates	18.3	%	1.4	%
Ready-mix concrete	20.6	%	1.8	%
Asphalt	22.8	%	(1.7)	%

Gross revenue from aggregates in the West segment increased $32.0 million in 2017, primarily due to an increase in volumes. Aggregates volume increased in 2017 mainly due acquisitions occurring in 2016, as well as organic growth in Austin, Texas and Vancouver, British Columbia, partially offset by a decrease in organic volumes in Houston resulting from the impact of Hurricane Harvey. Aggregates pricing in 2017 remained consistent with 2016.

Revenue from ready-mix concrete in the West segment increased $67.1 million in 2017, primarily as a result of acquisitions.

Revenue from asphalt in the West segment increased $31.8 million in 2017, primarily due to higher volumes partially offset by slightly lower pricing. Organic asphalt volumes increased 10.0% due to improvement in our Austin, Texas market in 2017.  In 2017, asphalt pricing decreased consistent with lower input prices. Revenue for paving and related services in the West segment increased by $61.0 million in 2017 due to organic growth and acquisitions.

Prior to eliminations of intercompany transactions, the net effect of volume and pricing changes on gross revenue for the year ended December 30, 2017 was approximately $126.3 million and $4.6 million, respectively.

Our Houston operations were negatively impacted by Hurricane Harvey in the third and fourth quarters of 2017. After temporary interruptions, our operations have resumed. We expect our volumes in the Houston area to return to normal levels in the future. Our Austin business operates a liquid asphalt terminal in the Houston area which was also damaged by Hurricane Harvey. The terminal will be shut down until mid-2018 while undergoing significant repairs. We have received proceeds from claims for damaged property, plant and equipment, and are in the process of filing additional claims under our business interruption policy.

Our reporting unit based in Austin, Texas, has seen new market entrants, one of which aggressively sought market share, which negatively impacted Adjusted EBITDA in the West segment in 2016. Our efforts to improve our profitability in that area are showing positive results in 2017, as organic volume growth occurred in 2017 as compared to the prior year.

East Segment

($ in thousands)	2017			2016			Variance
Net revenue	$	548,604		$	470,614		$	77,990	16.6	%
Operating income		67,739			65,424			2,315	3.5	%
Operating margin percentage		12.3	%		13.9	%
Adjusted EBITDA (1)	$	139,108		$	126,007		$	13,101	10.4	%

(1) Adjusted EBITDA is a non-GAAP measure that we find helpful in monitoring the performance of our business. See the reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, net income, below.

Net revenue in the East segment increased $78.0 million for the year ended December 30, 2017, primarily due to acquisitions contributing $74.0 million and organic growth of $4.0 million.

Operating income increased $2.3 million and Adjusted EBITDA improved $13.1 million in 2017, due to increased pricing and acquisitions.

Operating margin percentage for the year ended December 30, 2017 decreased to 12.3% from 13.9% in the prior year, as revenue from paving and related services, which generally have lower operating margins than materials and products, accounted for about a third of our gross revenue increase, as well as the other factors mentioned above.

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Gross revenue by product/ service was as follows:  

($ in thousands)	2017		2016		Variance
Revenue by product*:
Aggregates	$	224,022	$	195,793	$	28,229	14.4	%
Ready-mix concrete		131,047		101,636		29,411	28.9	%
Asphalt		93,093		80,913		12,180	15.1	%
Paving and related services		224,342		188,379		35,963	19.1	%
Other		(42,585)		(35,427)		(7,158)	(20.2)	%
Total revenue	$	629,919	$	531,294	$	98,625	18.6	%

*        Revenue by product includes intercompany and intracompany sales transferred at market value. The elimination of intracompany transactions is included in Other. Revenue from the liquid asphalt terminals is included in asphalt revenue.

The East segment’s percent changes in sales volumes and pricing in 2017 from 2016 were as follows:

	Percentage Change in
	Volume		Pricing
Aggregates	13.0	%	1.3	%
Ready-mix concrete	27.9	%	0.8	%
Asphalt	16.4	%	0.1	%

Gross revenue from aggregates in the East segment increased $28.2 million in 2017, due primarily to acquisitions. Aggregate volumes in 2017 increased 13.0%, primarily as a result of those acquisitions. Aggregates pricing increased in 2017 as a result of a shift in product mix.

Revenue from ready-mix concrete in the East segment increased $29.4 million in 2017, primarily as a result of the acquisitions mentioned above. In 2017, ready-mix volumes increased due to acquisitions, offset by an organic volumes decline of 8.0%.

Revenue from asphalt increased $12.2 million in 2017, due to an increase in asphalt volumes, offset by pricing decline, primarily in the Kentucky and Kansas markets. The $36.0 million increase in paving and related service revenue in 2017 was primarily a result of acquisitions in Kansas and Virginia.

Prior to eliminations of intercompany transactions, the net effect of volume and pricing changes on gross revenue for the year ended December 30, 2017 was approximately $66.4 million and $3.5 million, respectively.

Cement Segment

($ in thousands)	2017			2016			Variance
Net revenue	$	303,813		$	281,087		$	22,726	8.1	%
Operating income		89,360			82,521			6,839	8.3	%
Operating margin percentage		29.4	%		29.4	%
Adjusted EBITDA (1)	$	127,547		$	112,991		$	14,556	12.9	%

(1) Adjusted EBITDA is a non-GAAP measure that we find helpful in monitoring the performance of our business. See the reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, net income, below.

Net revenue in the Cement segment increased $22.7 million for the year ended December 30, 2017, primarily due to organic growth within existing operations and the acquisition of two cement terminal operations located in Port Allen and LaPlace, Louisiana, which contributed incremental net revenue of $6.4 million in 2017.

The Cement segment’s operating income improved $6.8 million and Adjusted EBITDA improved $14.6 million in 2017. The increase in operating income and Adjusted EBITDA was primarily due to increased organic cement volumes and pricing. Continued production efficiencies and price improvement grew operating margins, but this improvement

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was offset by a higher cost basis on purchased cement needed to satisfy the higher demand, resulting in consistent operating margins for the year ended December 30, 2017 when compared to 2016.

Gross revenue by product was as follows:  

($ in thousands)	2017		2016		Variance
Revenue by product*:
Cement	$	286,360	$	256,046	$	30,314	11.8	%
Other		17,453		25,041		(7,588)	(30.3)	%
Total revenue	$	303,813	$	281,087	$	22,726	8.1	%

*        Revenue from waste processing and the elimination of intracompany transactions are included in Other.

The Cement segment’s percent changes in sales volumes and pricing in 2017 from 2016 were as follows:

	Percentage Change in
	Volume		Pricing
Cement	8.1	%	3.5	%

Revenue from cement increased $30.3 million in 2017, due primarily to increased organic cement volumes and pricing. In 2017, organic cement volumes and pricing increased 5.8% and 3.3%, respectively, with the remainder of the increase due to the acquisition of two cement terminal operations in 2016.  

Fiscal Year 2016 Compared to 2015

($ in thousands)	2016			2015			Variance
Net revenue	$	1,488,274		$	1,289,966		$	198,308	15.4	%
Operating income		154,662			135,024			19,638	14.5	%
Operating margin percentage		10.4	%		10.5	%
Adjusted EBITDA	$	371,347		$	287,528		$	83,819	29.2	%

Net revenue increased $198.3 million for the year ended December 31, 2016, of which $128.2 million was from increased sales of materials, $51.0 million was from increased sales of products and $19.1 million was from increased service revenue. We had volume growth in our aggregates, cement and ready-mix concrete lines of business, driven by our 2016 and 2015 acquisitions. Excluding the cement segment, for the year ended December 31, 2016, $182.3 million of the net revenue growth was from acquisitions, partially offset by a $69.6 million reduction in organic revenue. Organic revenue growth is defined as incremental revenue that was not derived from acquisitions. For the year ended December 31, 2016, approximately $85.6 million of the revenue growth was attributable to our cement operations. In July 2015, we acquired the Davenport Assets, which were immediately integrated with our existing cement operations such that it is impracticable to bifurcate growth in the segment between organic and acquisition growth.

As a vertically-integrated company, we include intercompany sales from materials to products and from products to services when assessing the operating results of our business. We refer to revenue inclusive of intercompany sales as gross revenue. These intercompany transactions are eliminated in the consolidated financial statements. Gross revenue by line of business was as follows:

(in thousands)	2016		2015		Variance
Revenue by product*:
Aggregates	$	355,617	$	296,960	$	58,657	19.8	%
Cement		256,046		173,845		82,201	47.3	%
Ready-mix concrete		396,597		350,554		46,043	13.1	%
Asphalt		263,652		292,193		(28,541)	(9.8)	%
Paving and related services		502,458		504,459		(2,001)	(0.4)	%
Other		(148,307)		(185,714)		37,407	20.1	%
Total revenue	$	1,626,063	$	1,432,297	$	193,766	13.5	%

*       Revenue by product includes intercompany and intracompany sales transferred at market value. The elimination of intracompany transactions is included in Other. Revenue from the liquid asphalt terminals is included in asphalt revenue.

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Gross revenue for paving and related services decreased $2.0 million for the year ended December 31, 2016. This decrease was primarily due to declines in the Austin, Texas market. The economy in Austin, Texas attracted a new aggressive entrant in 2016 who attracted a number of our employees, which has collectively resulted in a decrease in our paving and related services revenue as compared to 2015 levels.

Detail of our volumes and average selling prices by product for the years ended December 31, 2016 and January 2, 2016 were as follows:  

	2016			2015
	Volume(1)			Volume(1)			Percentage Change in
	(in thousands)	Pricing(2)		(in thousands)	Pricing(2)		Volume		Pricing
Aggregates	36,092	$	9.85	32,297	$	9.19	11.8	%	7.2	%
Cement	2,357		108.63	1,720		101.05	37.0	%	7.5	%
Ready-mix concrete	3,823		103.74	3,406		102.92	12.2	%	0.8	%
Asphalt	4,359		54.74	4,359		57.67	—	%	(5.1)	%

(1) Volumes are shown in tons for aggregates, cement and asphalt and in cubic yards for ready-mix concrete.

(2) Pricing is shown on a per ton basis for aggregates, cement and asphalt and on a per cubic yard basis for ready-mix concrete.

Aggregates volumes were positively affected by the 2016 and 2015 acquisitions as well as strength in the Kansas and South Carolina markets. This growth was partially offset by declines in the British Columbia and Austin and Houston, Texas markets. The decline in aggregate volumes in British Columbia was the result of a large sand river project that has been completed in 2015. Sand is a lower-priced, lower-margin product as compared to hard rocks. In Austin, Texas, a new aggressive competitor contributed to the decrease in our paving and related services revenue, in addition to the upstream aggregate and asphalt products. In Houston, Texas, volumes were affected by flooding during 2016. We had strong aggregates price increases across our markets, which would have been greater absent the effect from the U.S./Canadian exchange rate. The U.S. dollar was stronger as compared to the Canadian dollar for the year ended December 31, 2016. Absent the effect of foreign currency fluctuations, aggregates pricing would have increased 7.5% for the year ended December 31, 2016.

Our cement volumes increased primarily as a result of the July 2015 acquisition of the Davenport Assets and prices increased consistent with the market.

The increase in ready-mix concrete volumes was primarily a result of the 2016 and 2015 acquisitions and pricing generally increased by mid-single digit percentages in the organic operations, but was affected by the geographic mix as ready-mix concrete producers acquired in 2015 were in lower-priced markets.

The flat asphalt volumes for the year ended December 31, 2016 from the year ended January 2, 2016 resulted from declines in the Austin, Texas, Wichita, Kansas and Kentucky markets, offset by increases from the 2016 and 2015 acquisitions. The decrease in Wichita, Kansas was primarily due to a shift in state work away from asphalt paving in that market. The decrease in Kentucky was primarily due to a decreased level of state contracts for the fiscal year. Asphalt pricing decreased primarily due to lower input prices. Prior to eliminations, the net increase from these volume and pricing changes on gross revenue for the year ended December 31, 2016 was approximately $138.4 million and $20.1 million, respectively.

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Operating income increased $20.0 million for the year ended December 31, 2016, and Adjusted EBITDA improved $83.8 million. For the year ended December 31, 2016, operating margin remained flat at 10.4% compared to 10.4% in the year ended January 2, 2016, which was attributable to the following:

Operating margin—2015	10.4	%
Gross margin(1)	3.0	%
Gain on asset disposals(2)	(1.6)	%
IPO costs(3)	2.2	%
Legacy equity modification charges(4)	(2.5)	%
Other	(1.2)	%
Operating margin—2016	10.3	%

(1) The gross margin improvement was primarily a result of improved pricing, particularly a 7.2% pricing increase in aggregates.  

(2) In the year ended December 31, 2016, we recognized a net $6.8 million gain on asset disposals compared to a net $23.5 million gain in the year ended January 2, 2016. Included in the 2015 amount was a $16.6 million gain on the cement terminal and related assets in Bettendorf, Iowa, which were part of the purchase consideration paid to acquire the Davenport Assets.

(3) In the year ended December 31, 2016, we did not have any IPO related costs compared to $28.3 million in the year ended January 2, 2016.

(4) In the year ended December 31, 2016, we recognized $37.3 million of stock-based compensation charges associated with certain LP Units converted and options granted at the time of the IPO for which the performance metrics were met or waived in 2016. We did not recognize any charges in the year ended January 2, 2016.

Other Financial Information

Loss on Debt Financings

In the year ended January 2, 2016, we recognized $71.6 million of losses associated with the: (1) March 2015 amendment to the Credit Agreement; (2) April 2015 $288.2 million redemption of 10 ½% senior notes due 2020 (the “2020 Notes”); (3) August 2015 term loan refinancing, $350.0 million issuance of 2023 Notes and $183.0 million redemption of 2020 Notes; and (4) November 2015 $153.8 million redemption of 2020 Notes. The write-off of deferred financing fees and original issuance discounts and premiums and the incurrence of prepayment premiums, all associated with the redemption of the 2020 Notes, are including in the loss on debt financings. 

Income Tax Benefit

The income tax benefit decreased $13.0 million for the year ended December 31, 2016, due to the tax benefit associated with the loss on debt financings that was recognized in our C corporation subsidiaries in the year ended January 2, 2016.

Segment Results of Operations

West Segment

($ in thousands)	2016			2015			Variance
Net revenue	$	736,573		$	719,485		$	17,088	2.4	%
Operating income		100,659			96,498			4,161	4.3	%
Operating margin percentage		13.7	%		13.4	%
Adjusted EBITDA	$	167,434		$	150,764		$	16,670	11.1	%

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The West segment’s net revenue increased 2.4% due to 2016 and 2015 acquisitions. Incremental net revenue from acquisitions totaled $66.0 million and organic net revenue decreased $48.9 million, $36.8 million of which occurred in our Austin, Texas operations. Gross revenue by product/service was as follows:

(in thousands)	2016		2015		Variance
Revenue by product*:
Aggregates	$	159,824	$	156,873	$	2,951	1.9	%
Ready-mix concrete		294,961		266,210		28,751	10.8	%
Asphalt		182,739		194,155		(11,416)	(5.9)	%
Paving and related services		314,079		315,573		(1,494)	(0.5)	%
Other		(137,921)		(128,308)		(9,613)	(7.5)	%
Total revenue	$	813,682	$	804,503	$	9,179	1.1	%

*       Revenue by product includes intercompany and intracompany sales transferred at market value. The elimination of intracompany transactions is included in Other. Revenue from the liquid asphalt terminals is included in asphalt revenue.

Gross revenue for paving and related services decreased $1.5 million for the year ended December 31, 2016. This decrease primarily occurred in the Austin, Texas operations. The West segment’s percent changes in sales volumes and pricing in 2016 from 2015 were as follows:

	Percentage Change in
	Volume		Pricing
Aggregates	(4.2)	%	6.4	%
Ready-mix concrete	11.1	%	(0.3)	%
Asphalt	1.2	%	(4.0)	%

The decline in aggregates volumes was primarily in the British Columbia and Austin and Houston, Texas markets, which was partially offset by volume increases from the 2016 and 2015 acquisitions. Aggregates pricing improved across our markets and would have been greater, absent the effect from the U.S./Canadian exchange rate. The U.S. dollar was stronger as compared to the Canadian dollar for the year ended December 31, 2016 compared to the year ended January 2, 2016. Absent the effect of foreign currency fluctuations, aggregates pricing would have increased 7.1% for the year ended December 31, 2016.

The increase in ready-mix concrete volumes was primarily a result of the 2016 and 2015 acquisitions and pricing generally increased by mid-single digit percentages in the organic operations, but was affected by the geographic mix as ready-mix concrete producers acquired in 2015 were in lower-priced markets.

Asphalt pricing decreased consistent with lower input prices. Prior to eliminations of intercompany transactions, the net effect of volume and pricing changes on gross revenue for the year ended December 31, 2016 was approximately $18.7 million and $1.6 million, respectively.

The West segment’s operating income increased $4.3 million in 2016 and Adjusted EBITDA improved $16.7 million. The improvement was driven by acquisitions, partially offset by a decline in the British Columbia and Austin and Houston, Texas operations. Operating margin for the year ended December 31, 2016 was relatively flat from 13.4% to 13.7% for the year ended January 2, 2016.

East Segment

($ in thousands)	2016			2015			Variance
Net revenue	$	470,614		$	374,997		$	95,617	25.5	%
Operating income		65,424			49,445			15,979	32.3	%
Operating margin percentage		13.9	%		13.2	%
Adjusted EBITDA	$	126,007		$	92,303		$	33,704	36.5	%

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The East segment’s net revenue increased 25.5% in 2016 due to acquisitions. Incremental net revenue from acquisitions totaled $116.3 million and organic net revenue decreased $20.7 million. Gross revenue by product/service was as follows:

(in thousands)	2016		2015		Variance
Revenue by product*:
Aggregates	$	195,793	$	140,087	$	55,706	39.8	%
Ready-mix concrete		101,636		84,344		17,292	20.5	%
Asphalt		80,913		98,038		(17,125)	(17.5)	%
Paving and related services		188,379		188,886		(507)	(0.3)	%
Other		(35,427)		(79,045)		43,618	55.2	%
Total revenue	$	531,294	$	432,310	$	98,984	22.9	%

*        Revenue by product includes intercompany and intracompany sales transferred at market value. The elimination of intracompany transactions is included in Other. Revenue from the liquid asphalt terminals is included in asphalt revenue.

The East segment’s percent changes in sales volumes and pricing in 2016 from 2015 were as follows:

	Percentage Change in
	Volume		Pricing
Aggregates	32.5	%	5.5	%
Ready-mix concrete	15.7	%	4.1	%
Asphalt	(2.4)	%	(8.0)	%

Aggregates volumes in 2016 increased 32.5% as a result of the 2016 acquisitions in Kansas, Virginia, and the Carolinas. Aggregates pricing increased as a result of an improved market and shift in product mix. Ready-mix concrete volumes improved in Kansas and Missouri and pricing increased across the East segment’s markets. Asphalt volumes decreased in Kentucky and Wichita, Kansas, as discussed above. Asphalt pricing decreased due to lower input costs. Prior to eliminations of intercompany transactions, the net effect of volume and pricing changes on gross revenue in 2016 was approximately $51.2 million and $4.6 million, respectively.

The East segment’s operating income increased $16.0 million in 2016 and Adjusted EBITDA improved $33.7 million. Operating margin for the year ended December 31, 2016 was 13.9% and was relatively consistent with 13.2% for the year ended January 2, 2016.

Cement Segment

($ in thousands)	2016			2015			Variance
Net revenue	$	281,087		$	195,484		$	85,603	43.8	%
Operating income		82,521			64,950			17,571	27.1	%
Operating margin percentage		29.4	%		33.2	%
Adjusted EBITDA	$	112,991		$	74,845		$	38,146	51.0	%

Net revenue in the Cement segment increased $85.6 million in 2016 primarily as a result of the acquisition of the Davenport Assets in July 2015. Gross revenue by product/service was as follows:

(in thousands)	2016		2015		Variance
Revenue by product*:
Cement	$	256,046	$	173,845	$	82,201	47.3	%
Other		25,041		21,639		3,402	15.7	%
Total revenue	$	281,087	$	195,484	$	85,603	43.8	%

*        Revenue from waste processing and the elimination of intracompany transactions are included in Other.

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The Cement segment’s percent changes in sales volumes and pricing in 2016 from 2015 were as follows:

	Percentage Change in
	Volume		Pricing
Cement	37.0	%	7.5	%

In 2016, cement volumes and pricing increased primarily as a result of the acquisition of the Davenport Assets. With the acquisition of the Davenport Assets, we expanded our markets from Minnesota to Louisiana, which included higher-priced markets than St. Louis and Hannibal, Missouri. Prior to eliminations of intercompany transactions, the net effect of volume and pricing changes on gross revenue in 2016 was approximately $68.4 million and $13.9 million, respectively.

The Cement segment’s operating income increased $17.3 million in 2016 and Adjusted EBITDA improved $38.1 million. Operating margin for the year ended December 31, 2016 decreased from 33.0% for the year ended January 2, 2016 to 29.1%, which was attributable to the following:

Operating margin—2015	33.0	%
Gain on disposal of Bettendorf assets(1)	(8.5)	%
Price improvements(2)	4.9	%
Other	(0.3)	%
Operating margin—2016	29.1	%

(1) In the year ended January 2, 2016, we recognized a net $16.6 million gain on the cement terminal and related assets in Bettendorf, Iowa, which were part of the purchase consideration paid to acquire the Davenport Assets.

(2) Cement prices increased 7.5% in 2016, resulting in $13.9 million of additional revenue for the year ended December 31, 2016.

Liquidity and Capital Resources

Our primary sources of liquidity include cash on-hand, cash provided by our operations and amounts available for borrowing under our credit facilities and capital-raising activities in the debt capital markets. In addition to our current sources of liquidity, we have access to liquidity through public offerings of shares of our Class A common stock. To facilitate such offerings, in January 2017, we filed a shelf registration statement with the SEC that is effective for a term of three years and will expire in January 2020. The amount of Class A common stock to be issued pursuant to this shelf registration statement was not specified when it was filed and there is no specific limit on the amount we may issue. The specifics of any future offerings, along with the use of the proceeds thereof, will be described in detail in a prospectus supplement, or other offering materials, at the time of any offering.

As of December 30, 2017, we had $383.6 million in cash and working capital of $533.6 million as compared to cash and working capital of $143.4 million and $244.4 million, respectively, at December 31, 2016. Working capital is calculated as current assets less current liabilities. There were no restricted cash balances as of December 30, 2017 or December 31, 2016.

Our remaining borrowing capacity on our $235 million senior secured revolving credit facility as of December 30, 2017 was $218.9 million, which is net of $16.1 million of outstanding letters of credit, and is fully available to us within the terms and covenant requirements of our credit agreement.

Given the seasonality of our business, we typically experience significant fluctuations in working capital needs and balances throughout the year. Our working capital requirements generally increase during the first half of the year as we build up inventory and focus on repair and maintenance and other set-up costs for the upcoming season. Working capital levels then decrease as the construction season winds down and we enter the winter months, which is when we see significant inflows of cash from the collection of receivables.

We believe we have access to sufficient financial resources from our liquidity sources to fund our business and operations, including contractual obligations, capital expenditures and debt service obligations, for at least the next twelve months. Our growth strategy contemplates future acquisitions for which we believe we have sufficient access to capital.

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As market conditions warrant we may, from time to time, seek to purchase our outstanding debt securities or loans, including Senior Notes and borrowings under our senior secured credit facilities. Such transactions could be privately negotiated, open market transactions, tender offers or otherwise. Subject to any applicable limitations contained in the agreements governing our indebtedness, any purchases made by us may be funded by the use of cash on our balance sheet or the incurrence of new secured or unsecured debt. The amounts involved in any such purchase transactions, individually or in the aggregate, may be material. Any such purchases may equate to a substantial amount of a particular class or series of debt, which may reduce the trading liquidity of such class or series.

Our Long-Term Debt

Please refer to the notes to the consolidated financial statements found elsewhere in this report for detailed information regarding our long-term debt and senior secured revolving credit facility, scheduled maturities of long-term debt and affirmative and negative covenants. Among other things, we are required to maintain a Consolidated First Lien Net Leverage Ratio that is no greater than 4.75 to 1.00. Our first lien net leverage ratio, for purposes of this maintenance requirement, is calculated following each quarter based on information for the most recently ended four fiscal quarters for which internal financial information is available by dividing our Consolidated First Lien Net Debt as of the end of such period by our Consolidated EBITDA for such period. Consolidated EBITDA for purposes of our senior secured credit facility is calculated in accordance with our presentation of Further Adjusted EBITDA below. We define Further Adjusted EBITDA as Adjusted EBITDA plus the EBITDA contribution of certain recent acquisitions.

For the years ended December 30, 2017 and December 31, 2016, our Consolidated First Lien Net Leverage Ratio was 0.64 to 1.00 and 1.40 to 1.00, respectively, based on consolidated first lien net debt of $287.5 million and $536.9 million as of December 30, 2017 and December 31, 2016, respectively, divided by Further Adjusted EBITDA of $452.7 million and $382.4 million for the years ended December 30, 2017 and December 31, 2016, respectively. As of December 30, 2017 and December 31, 2016, we were in compliance with all debt covenants.

The following table sets forth a reconciliation of net income to Adjusted EBITDA and Further Adjusted EBITDA for the periods indicated. Adjusted EBITDA and Further Adjusted EBITDA are not U.S. GAAP measures and should not be considered in isolation, or as a substitute for our results as reported under U.S. GAAP.

($ in thousands)	2017		2016		2015
Net income	$	125,777	$	46,126	$	1,484
Interest expense		108,549		97,536		84,629
Income tax benefit		(283,977)		(5,299)		(18,263)
Depreciation, depletion, and amortization		177,643		147,736		118,321
EBITDA	$	127,992	$	286,099	$	186,171
Accretion		1,875		1,564		1,402
IPO/Legacy equity modification costs(a)		—		37,257		28,296
Loss on debt financings		4,815		—		71,631
Tax receivable agreement expense		271,016		14,938		—
Income from discontinued operations(b)		—		—		(2,415)
Transaction costs(c)		7,733		6,797		9,519
Management fees and expenses(d)		—		(1,379)		1,046
Non-cash compensation(e)		21,140		12,683		5,448
Other(f)		1,206		13,388		(13,570)
Adjusted EBITDA	$	435,777	$	371,347	$	287,528
EBITDA for certain acquisitions(g)		16,919		11,074		20,450
Further Adjusted EBITDA	$	452,696	$	382,421	$	307,978

(a) The 2016 results included $49.9 million of stock-based compensation charges in general and administrative expenses. Prior to the IPO, certain investors had equity in the company that vested only if performance objectives of either a 1.75 or 3.00 times return on the initial investment by investment funds associated with or designated by The Blackstone Group L.P. and its affiliates (“Blackstone”) were met. At the IPO Date, this equity converted to LP Units and stock options. Prior to 2016, we did not recognize any expense associated with these awards as achievement of the multiples was not deemed probable. The 1.75 times return threshold was met following completion of Blackstone’s secondary offering of shares of our Class A common stock on July 19, 2016 and, in

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August 2016, our board of directors waived the 3.00 times return threshold. As a result, in 2016, we recognized $37.3 million of cumulative catch up expense from the IPO date through September 2016. We will continue to recognize expense on the options over the remaining 4-year vesting period. The 2015 results included $28.3 million of costs associated with Summit Inc.’s IPO.

(b) Represents certain paving operations and railroad construction and repair operations we have exited.

(c) Represents the transaction expenses associated with closed and probable acquisitions, consisting primarily of accounting, legal, valuation and financial advisory fees for the acquisitions. 

(d) Represents certain fees paid and expenses reimbursed to affiliates of our former private equity sponsors.

(e) Represents non-cash equity-based compensation granted to employees.

(f) Represents the net (gain) loss recognized on assets identified for disposal. Includes non-recurring or one time income and expense items that were incurred outside normal operating activities such as integration costs, unrealized currency gains and losses and interest, tax, depreciation on unconsolidated joint ventures and fair value adjustments to contingent consideration obligations that originated with various acquisitions.

(g) Under the terms of our credit facilities, we include EBITDA from our acquisitions in each fiscal year for periods prior to acquisition. We believe this provides our lenders with a more meaningful view of our EBITDA across all periods by making the information more comparable.

At December 30, 2017 and December 31, 2016, $1.8 billion and $1.5 billion, respectively, of total debt were outstanding under our respective debt agreements. Summit LLC’s senior secured credit facilities provide for term loans in an aggregate amount of $650.0 million and revolving credit commitments in an aggregate amount of $235.0 million (the “Senior Secured Credit Facilities”). Summit LLC’s domestic wholly-owned subsidiary companies are named as guarantors of the Senior Notes and the Senior Secured Credit Facilities. Certain other partially-owned subsidiaries, and the wholly-owned Canadian subsidiary, Mainland, do not guarantee the Senior Notes or Senior Secured Credit Facilities. Summit LLC has pledged substantially all of its assets as collateral for the Senior Secured Credit Facilities.

On January 19, 2017, Summit LLC entered into Amendment No. 1 (“Amendment No. 1”) to the Credit Agreement, which, among other things, reduced the applicable margin in respect of the $640.3 million outstanding principal amount of term loans thereunder. All other material terms and provisions remain substantially identical to the terms and provisions in place immediately prior to the effectiveness of Amendment No. 1. On November 21, 2017, Summit LLC entered into Amendment No. 2 to the Amended and Restated Credit Agreement, which, among other things, extended the maturity date from 2022 to 2024 and reduced the applicable margin in respect of the $635.4 million outstanding principal amount of term loans thereunder.

On June 1, 2017, the Issuers issued $300.0 million in aggregate principal amount of 5 1/₈% senior notes due June 1, 2025. The 2025 Notes were issued at par value, resulting in proceeds of $295.4 million, net of related fees and expenses. Interest on the 2025 Notes is payable semi-annually on June 1 and December 1 of each year commencing on December 1, 2017.

On March 8, 2016, the Issuers issued $250.0 million in aggregate principal amount of 2022 Notes. The 2022 Notes were issued at par and interest on the 2022 Notes is payable semi-annually in arrears on April 15 and October 15 of each year commencing on October 15, 2016. The net proceeds of the 2022 Notes were used to fund the acquisition of Boxley Materials Company, replenish cash used for the acquisition of American Materials Company and pay expenses incurred therewith.

In 2015, the Issuers issued $650.0 million aggregate principal amount of 2023 Notes due July 15, 2023 under an indenture dated July 8, 2015 – $350.0 million on July 8, 2015 and $300.0 million on November 19, 2015. The July issuance of the 2023 notes was issued at par and the November add-on was issued at a discount. Interest on the 2023 notes is payable semi-annually in arrears on January 15 and July 15 of each year commencing on January 15, 2016.

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In 2015, $625.0 million aggregate principal amount of outstanding 2020 Notes due January 31, 2020, were redeemed – $288.2 million in April 2015 using proceeds from the IPO, $183.0 million in August 2015 and $153.8 million in December 2015.

On July 17, 2015, we refinanced our term loan under the Senior Secured Credit Facilities (the “Refinancing”). The Refinancing, among other things: (i) reduced the applicable margins used to calculate interest rates for term loans under our Senior Secured Credit Facilities to 3.25% for LIBOR rate loans and 2.25% for base rate loans, subject to a LIBOR floor of 1.00% (and one 25 basis point step down upon Summit LLC achieving a certain first lien net leverage ratio); (ii) increased term loans borrowed under our term loan facility from $422.0 million to $650.0 million; and (iii) created additional flexibility under the financial maintenance covenants, which are tested quarterly, by increasing the applicable maximum Consolidated First Lien Net Leverage Ratio (as defined in the Credit Agreement).

We used the net proceeds from the 2023 Notes and the Refinancing to finance the initial $370.0 million cash to purchase the Davenport Assets, to refinance our existing senior secured term loan facility, to redeem $183.0 million aggregate principal amount of our then outstanding 2020 Notes and to pay related fees and expenses.

Cash Flows

The following table summarizes our net cash provided by and used for operating, investing and financing activities and our capital expenditures for the periods indicated:

	Summit Inc.						Summit LLC
(in thousands)	2017		2016		2015		2017		2016		2015
Net cash provided by (used for):
Operating activities	$	292,183	$	244,863	$	98,203	$	295,132	$	244,877	$	98,203
Investing activities		(552,475)		(470,652)		(584,347)		(552,475)		(470,652)		(584,347)
Financing activities		499,755		182,707		660,337		497,526		182,990		659,320

Operating Activities

During the year ended December 30, 2017, cash provided by operating activities was $292.2 million primarily as a result of:

· Net income of $125.8 million, adjusted for $81.1 million of non-cash expenses, including $193.1 million of depreciation, depletion, amortization and accretion, $21.1 million of share-based compensation and $289.2 million of change in deferred tax asset, net.

· Billed and unbilled accounts receivable increased by $5.5 million in fiscal 2017 as a result of increased revenue from our acquisitions as compared to fiscal 2016.

· Tax receivable agreement liability increased $273.2 million as noted above.

· The timing of payments associated with accounts payable and accrued expenses of cash, which is consistent with the seasonality of our business whereby we build-up inventory levels and incur repairs and maintenance costs to ready the business for increased sales volumes in the summer and fall. These costs are typically incurred in the first half of the year and paid by year-end. In addition, we made $96.3 million of interest payments in 2017.  

During the year ended December 31, 2016, cash provided by operating activities was $244.9 million primarily as a result of:

· Net income of $46.1 million, adjusted for $201.9 million of non-cash expenses, including $160.6 million of depreciation, depletion, amortization and accretion and $49.9 million of share-based compensation.

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During the year ended January 2, 2016, cash provided by operating activities was $98.2 million-primarily as a result of:

· Net income of $1.5 million, adjusted for $90.5 million of non-cash expenses, including $125.0 million of depreciation, depletion, amortization and accretion and $19.9 million of share-based compensation expense, partially offset by $23.1 million of net gain on asset disposals.

· $10.5 million of proceeds from improved collections of accounts receivable (billed and unbilled).

· Approximately $18.6 million as a use of cash associated with the timing of accounts payable and accrued expense payments, including a $12.9 million decrease in interest payable as the 2015 year-end interest payment was made in fiscal 2015. We made $89.1 million of interest payments in 2015, including $56.4 million of prepayment premiums on the 2020 Notes, which were redeemed in 2015.

Investing Activities

During the year ended December 30, 2017, cash used for investing activities was $552.5 million, of which $374.9 million related to the 14 acquisitions completed in the period and $194.1 million was invested in capital expenditures, which was partially offset by $17.1 million of proceeds from asset sales.  

During the year ended December 31, 2016, cash used for investing activities was $470.7 million, of which $337.0 million related to the nine acquisitions completed in the period and $153.5 million was invested in capital expenditures, which was partially offset by $16.9 million of proceeds from asset sales.  

During the year ended January 2, 2016, cash used for investing activities was $584.3 million, of which $510.0 million related to the 2015 acquisitions. In addition, we invested $89.0 million in capital expenditures, partially offset by $13.1 million of proceeds from asset sales.

Financing Activities

During the year ended December 30, 2017, cash provided by financing activities was $499.8 million, which was primarily composed of $237.6 million of net proceeds from the January 2017 issuance of 10,000,000 shares of Class A common stock and $295.4 million of proceeds from the 2025 Notes, net of related fees and expenses. We made $34.7 million of payments on acquisition related liabilities, and $16.4 million in debt payments.

During the year ended December 31, 2016, cash provided by financing activities was $182.7 million, which was primarily composed of $246.3 million of proceeds from the 2022 Notes, net of fees. We made $32.0 million of payments on acquisition related liabilities, and $5.8 million in debt issuance costs.

During the year ended January 2, 2016, cash provided by financing activities was $660.3 million, which was primarily composed of the following:

· $1,037.4 million of proceeds from Summit Inc.’s IPO and the August 2015 follow-on offering of shares of its Class A Common Stock;

· less $61.6 million of equity issuance fees;

· plus $648.1 million of proceeds from issuance of the 2023 Notes;

· plus $231.1 million of net proceeds from refinancing of our term loan under the senior secured credit facilities;

· less $35.0 million to purchase the noncontrolling interest of Continental Cement;

· less $462.8 million to purchase an aggregate 18,675,000 LP Units from certain of our pre-IPO owners;

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· less $625.0 million to redeem the outstanding 2020 notes;

· less $14.2 million of debt issuance costs;

· less $18.1 million of payments on acquisition related liabilities; and

· less $28.7 million of distributions to pre-IPO owners.

Cash Paid for Capital Expenditures

We expended approximately $194.1 million in capital expenditures for the year ended December 30, 2017 compared to $153.5 million and $89.0 million in the years ended December 31, 2016 and January 2, 2016, respectively.

We estimate that we will invest between $210.0 million and $225.0 million in capital expenditures in 2018, which we expect to fund through cash on hand, cash from operations, outside financing arrangements and available borrowings under our revolving credit facility. We expect to invest $32 million on the completion of a new aggregates plant in Vancouver and a cement terminal along the Mississippi River, which were started in 2017. We also plan to invest $7 million in a new aggregates plant in Georgia and $5 million to replace an asphalt plant in Northeast Texas.

Tax Receivable Agreement

Exchanges of LP Units for shares of Class A common stock are expected to result in increases in the tax basis of the tangible and intangible assets of Summit Holdings. These increases in tax basis may increase (for tax purposes) depreciation and amortization deductions and therefore reduce the amount of tax that Summit Inc. would otherwise be required to pay in the future. In connection with the IPO, we entered into a TRA with the holders of LP Units that provides for the payment by Summit Inc. to exchanging holders of LP Units of 85% of the benefits, if any, that Summit Inc. is deemed to realize as a result of these increases in tax basis and certain other tax benefits related to entering into the TRA, including tax benefits attributable to payments under the TRA. The increases in tax basis as a result of an exchange of LP Units for shares of Class A common stock, as well as the amount and timing of any payments under the TRA, are difficult to accurately estimate as they will vary depending upon a number of factors, including:

· the timing of exchanges—for instance, the increase in any tax deductions will vary depending on the fair market value, which may fluctuate over time, of the depreciable or amortizable assets of Summit Holdings at the time of each exchange;

· the price of shares of our Class  A common stock at the time of the exchange—the increase in any tax deductions, as well as the tax basis increase in other assets, of Summit Holdings, is directly proportional to the price of shares of our Class A common stock at the time of the exchange;

· the extent to which such exchanges are taxable—if an exchange is not taxable for any reason, increased deductions will not be available;

· the amount and timing of our income—Summit Inc. is required to pay 85% of the cash tax savings as and when realized, if any. If Summit Inc. does not have taxable income, Summit Inc. is not required (absent a change of control or circumstances requiring an early termination payment) to make payments under the TRA for that taxable year because no cash tax savings will have been realized. However, any tax attributes that do not result in realized benefits in a given tax year will likely generate tax attributes that may be utilized to generate benefits in previous or future tax years. The utilization of such tax attributes will result in cash tax savings that will result in payments under the tax receivable agreement; and

· the effective tax rate – The benefit that Summit Inc. realizes is dependent on the tax rate in effect at the time taxable income is generated. For example, at the end of 2017, the TCJA was enacted into law. Among other things, the federal corporate tax rate was reduced from 35% to 21%. As a result, the value of the additional benefits generated from the exchanges was reduced, and therefore, the TRA liability recorded by Summit Inc. was also reduced.

We anticipate funding payments under the TRA from cash flows from operations, available cash and available borrowings under our Senior Secured Revolving Credit Facilities. As of December 30, 2017, we had accrued $331.9  

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million as TRA liability.  Other than $0.6 million which was paid in January 2018, the TRA liability is a long term liability as no additional payments are expected in the next twelve months.

In addition, the TRA provides that upon certain changes of control, Summit Inc.’s (or its successor’s) obligations would be based on certain assumptions, including that Summit Inc. would have sufficient taxable income to fully utilize the deductions arising from tax basis and other tax attributes subject to the TRA. With respect to our obligations under the TRA relating to previously exchanged or acquired LP Units and certain net operating losses, we would be required to make a payment equal to the present value (at a discount rate equal to one year LIBOR plus 100 basis points) of the anticipated future tax benefits determined using assumptions (ii) through (v) of the following paragraph.

Furthermore, Summit Inc. may elect to terminate the TRA early by making an immediate payment equal to the present value of the anticipated future cash tax savings. In determining such anticipated future cash tax savings, the TRA includes several assumptions, including that (i) any LP Units that have not been exchanged are deemed exchanged for the market value of the shares of Class A common stock at the time of termination, (ii) Summit Inc. will have sufficient taxable income in each future taxable year to fully realize all potential tax savings, (iii) Summit Inc. will have sufficient taxable income to fully utilize any remaining net operating losses subject to the TRA on a straight line basis over the shorter of the statutory expiration period for such net operating losses or the five-year period after the early termination or change of control, (iv) the tax rates for future years will be those specified in the law as in effect at the time of termination and (v) certain non-amortizable assets are deemed disposed of within specified time periods. In addition, the present value of such anticipated future cash tax savings are discounted at a rate equal to LIBOR plus 100 basis points.

As a result of the change in control provisions and the early termination right, Summit Inc. could be required to make payments under the TRA that are greater than or less than the specified percentage of the actual cash tax savings that Summit Inc. realizes in respect of the tax attributes subject to the TRA (although any such overpayment would be taken into account in calculating future payments, if any, under the TRA) or that are prior to the actual realization, if any, of such future tax benefits. Also, the obligations of Summit Inc. would be automatically accelerated and be immediately due and payable in the event that Summit Inc. breaches any of its material obligations under the agreement and in certain events of bankruptcy or liquidation. In these situations, our obligations under the TRA could have a substantial negative impact on our liquidity.

Under the terms of the TRA, we can terminate the TRA at any time, which would trigger a cash payment to the pre-IPO owners. Based upon a $31.44 per share price of our Class A common stock, the closing price of our stock on December 30, 2017 and a contractually defined discount rate of 3.11%, we estimate that if we were to exercise our right to terminate the TRA, the aggregate amount required to settle the TRA would be approximately $282 million.

Contractual Obligations

The following table presents, as of December 30, 2017, our obligations and commitments to make future payments under contracts and contingent commitments (in thousands).

	Payments Due by Period
	Total		2018		2019		2020		2021		2022		Thereafter
(in thousands)
Short term borrowings and long-term debt, including current portion	$	1,835,375	$	4,765	$	6,354	$	7,942	$	6,354	$	256,354	$	1,553,606
Capital lease obligations		39,369		20,506		7,608		5,936		1,394		596		3,329
Operating lease obligations		32,754		8,627		7,077		5,826		4,650		2,475		4,099
Interest payments (1)		613,957		99,007		96,681		106,613		100,209		89,273		122,174
Acquisition-related liabilities		86,205		14,354		42,905		12,423		7,958		1,803		6,762
Royalty payments		107,231		6,450		6,017		5,833		5,550		5,431		77,950
Defined benefit plans (2)		9,148		1,402		1,020		109		1,696		1,259		3,662
Asset retirement obligation payments		67,873		4,626		2,858		2,560		1,199		1,949		54,681
Purchase commitments (3)		25,501		17,090		2,910		3,120		2,381		—		—
Payments pursuant to tax receivable agreement (4)		331,926		587		—		—		—		—		331,339
Other		9,532		5,008		2,433		1,832		173		86		—
Total contractual obligations	$	3,158,871	$	182,422	$	175,863	$	152,194	$	131,564	$	359,226	$	2,157,602

(1) Future interest payments were calculated using the applicable fixed and floating rates charged by our lenders in effect as of December 30, 2017 and may differ from actual results.

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(2) Future payments to fund our defined benefit plans are estimated based on multiple assumptions which are enumerated in Note 14 to the consolidated financial statements included elsewhere in this report.

(3) Amounts represent purchase commitments entered into in the normal course of business, primarily for fuel purchases, the terms of which are generally one year.

(4) The total amount payable under our TRA is estimated at $331.9 million as of December 30, 2017. Under the terms of the TRA, payment of amounts benefitting us is due to the pre-IPO owners within four months of the tax returns being submitted to the respective regulatory agencies when the benefits are realized.  We currently are not estimating any benefits being realized through 2022. The estimated timing of TRA payments is subject to a number of factors, primarily around the timing of the generation of future taxable income in future years, which will be impacted by business activity in those periods.

Commitments and Contingencies

We are party to certain legal actions arising from the ordinary course of business activities. Accruals are recorded when the outcome is probable and can be reasonably estimated. While the ultimate results of claims and litigation cannot be predicted with certainty, management expects that the ultimate resolution of all pending or threatened claims and litigation will not have a material effect on our consolidated results of operations, financial position or liquidity. We record legal fees as incurred.

Litigation and Claims—We are obligated under an indemnification agreement entered into with the sellers of Harper Contracting, Inc., Harper Sand and Gravel, Inc., Harper Excavating, Inc., Harper Ready Mix Company, Inc. and Harper Investments, Inc. for the sellers’ ownership interests in a joint venture agreement. We have the rights to any benefits under the joint venture as well as the assumption of any obligations, but do not own equity interests in the joint venture. The joint venture has incurred significant losses on a highway project in Utah, which have resulted in requests for funding from the joint venture partners and ultimately from us. Through December 30, 2017, we have funded $12.3 million. In the third quarter of 2017, we settled our remaining obligations under the indemnification agreement for $3.5 million, which was $0.8 million less than amounts previously accrued.

Environmental Remediation—Our operations are subject to and affected by federal, state, provincial and local laws and regulations relating to the environment, health and safety and other regulatory matters. These operations require environmental operating permits, which are subject to modification, renewal and revocation. We regularly monitor and review its operations, procedures and policies for compliance with these laws and regulations. Despite these compliance efforts, risk of environmental liability is inherent in the operation of our business, as it is with other companies engaged in similar businesses and there can be no assurance that environmental liabilities and noncompliance will not have a material adverse effect on our consolidated financial condition, results of operations or liquidity.

Other—We are obligated under various firm purchase commitments for certain raw materials and services that are in the ordinary course of business. Management does not expect any significant changes in the market value of these goods and services during the commitment period that would have a material adverse effect on the financial condition, results of operations, and cash flows of the Company. The terms of the purchase commitments generally approximate one year.

Off-Balance Sheet Arrangements

As of December 30, 2017, we had no material off-balance sheet arrangements.

Non-GAAP Performance Measures

We evaluate our operating performance using metrics that we refer to as “Adjusted EBITDA,” “Adjusted Cash Gross Profit” and “Adjusted Cash Gross Margin” which are not defined by U.S. GAAP and should not be considered as an alternative to earnings measures defined by U.S. GAAP. We define Adjusted EBITDA as EBITDA, adjusted to exclude accretion, loss on debt financings, loss from discontinued operations and certain non-cash and non-operating items. We define Adjusted Cash Gross Profit as operating income before general and administrative expenses, depreciation, depletion, amortization and accretion and transaction costs and Adjusted Cash Gross Margin as Adjusted Cash Gross Profit as a percentage of net revenue.

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We present Adjusted EBITDA, Adjusted Cash Gross Profit and Adjusted Cash Gross Margin for the convenience of investment professionals who use such metrics in their analyses. The investment community often uses these metrics to assess the operating performance of a company’s business and to provide a consistent comparison of performance from period to period. We use these metrics, among others, to assess the operating performance of our individual segments and the consolidated company.

Non-GAAP financial measures are not standardized; therefore, it may not be possible to compare such financial measures with other companies’ non-GAAP financial measures having the same or similar names. We strongly encourage investors to review our consolidated financial statements in their entirety and not rely on any single financial measure.

The tables below reconcile our net income (loss) to EBITDA and Adjusted EBITDA and present Adjusted EBITDA by segment and reconcile operating income to Adjusted Cash Gross Profit for the periods indicated:

Reconciliation of Net Income (Loss) to Adjusted EBITDA	Year ended December 30, 2017
by Segment	West		East		Cement		Corporate		Consolidated
($ in thousands)
Net income (loss) (1)	$	121,390	$	68,361	$	92,956	$	(156,930)	$	125,777
Interest expense (income) (1)		6,924		3,082		(3,760)		102,303		108,549
Income tax expense (benefit)		1,910		(864)		—		(285,023)		(283,977)
Depreciation, depletion and amortization		70,499		66,436		38,107		2,601		177,643
EBITDA	$	200,723	$	137,015	$	127,303	$	(337,049)	$	127,992
Accretion		815		816		244		—		1,875
Loss on debt financings		—		—		—		4,815		4,815
Tax receivable agreement expense (1)		—		—		—		271,016		271,016
Transaction costs		(76)		—		—		7,809		7,733
Non-cash compensation		—		—		—		21,140		21,140
Other		2,128		1,277		—		(2,199)		1,206
Adjusted EBITDA (1)	$	203,590	$	139,108	$	127,547	$	(34,468)	$	435,777

Reconciliation of Net Income (Loss) to Adjusted EBITDA	Year ended December 31, 2016
by Segment	West		East		Cement		Corporate		Consolidated
($ in thousands)
Net income (loss) (1)	$	86,040	$	66,661	$	79,280	$	(185,855)	$	46,126
Interest expense (1)		9,195		4,930		2,741		80,670		97,536
Income tax expense (benefit)		269		(2,156)		—		(3,412)		(5,299)
Depreciation, depletion and amortization		64,558		50,866		29,903		2,409		147,736
EBITDA	$	160,062	$	120,301	$	111,924	$	(106,188)	$	286,099
Accretion		787		674		103		—		1,564
IPO/ Legacy equity modification costs		—		—		—		37,257		37,257
Tax receivable agreement expense (1)		—		—		—		14,938		14,938
Transaction costs		382		25		—		6,390		6,797
Management fees and expenses		—		—		—		(1,379)		(1,379)
Non-cash compensation		—		—		—		12,683		12,683
Other		6,203		5,007		964		1,214		13,388
Adjusted EBITDA (1)	$	167,434	$	126,007	$	112,991	$	(35,085)	$	371,347

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Reconciliation of Net Income (Loss) to Adjusted EBITDA	Year ended January 2, 2016
by Segment	West		East		Cement		Corporate		Consolidated
($ in thousands)
Net income (loss) (1)	$	69,282	$	29,565	$	48,673	$	(146,036)	$	1,484
Interest expense (income) (1)		22,806		21,213		15,965		24,645		84,629
Income tax expense (benefit)		558		10		—		(18,831)		(18,263)
Depreciation, depletion and amortization		53,118		38,242		24,646		2,315		118,321
EBITDA	$	145,764	$	89,030	$	89,284	$	(137,907)	$	186,171
Accretion		609		681		112		—		1,402
IPO/ Legacy equity modification costs		—		—		241		28,055		28,296
Loss on debt financings		3,238		4,035		—		64,358		71,631
Income from discontinued operations		—		(2,415)		—		—		(2,415)
Transaction costs		360		—		—		9,159		9,519
Management fees and expenses		—		—		—		1,046		1,046
Non-cash compensation		—		—		16		5,432		5,448
Other		793		972		(14,808)		(527)		(13,570)
Adjusted EBITDA (1)	$	150,764	$	92,303	$	74,845	$	(30,384)	$	287,528

(1) The reconciliation of net income (loss) to Adjusted EBITDA is based on the financial results of Summit Inc. and its subsidiaries, which was $8.3 million, $16.0 million and $0.9 million less than Summit LLC and its subsidiaries in the years ended December 30, 2017, December 31, 2016 and January 2, 2016, respectively, due to interest expense associated with a deferred consideration obligation, TRA expense and income tax benefit are obligations of Summit Holdings and Summit Inc., respectively, and are thus excluded from Summit LLC’s consolidated net income.

Reconciliation of Working Capital	2017		2016
($ in thousands)
Total current assets	$	783,601	$	483,698
Less total current liabilities		(249,975)		(239,288)
Working capital	$	533,626	$	244,410

Reconciliation of Operating Income to Adjusted Cash Gross Profit	2017			2016			2015
($ in thousands)
Operating income	$	220,877		$	154,662		$	135,024
General and administrative expenses		242,670			243,512			177,769
Depreciation, depletion, amortization and accretion		179,518			149,300			119,723
Transaction costs		7,733			6,797			9,519
Adjusted Cash Gross Profit (exclusive of items shown separately)	$	650,798		$	554,271		$	442,035
Adjusted Cash Gross Profit Margin (exclusive of items shown separately) (1)		37.1	%		37.2	%		34.3	%

(1) Adjusted Cash Gross Margin, is defined as Adjusted Cash Gross Profit as a percentage of net revenue.

Critical Accounting Policies

Our management’s discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reported period.

On an ongoing basis, management evaluates its estimates, including those related to the valuation of accounts receivable, inventories, goodwill, intangibles and other long-lived assets, pension and other postretirement obligations and asset retirement obligations. We base our estimates and judgments on historical experience and on various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

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Acquisitions—Purchase Price Allocation

We regularly review strategic long-term plans, including potential investments in value-added acquisitions of related or similar businesses, which would increase our market share and/or are related to our existing markets. When an acquisition is completed, our consolidated statement of operations includes the operating results of the acquired business starting from the date of acquisition, which is the date that control is obtained. The purchase price is determined based on the fair value of assets given to and liabilities assumed from the seller as of the date of acquisition. We allocate the purchase price to the fair values of the tangible and intangible assets acquired and liabilities assumed as valued at the date of acquisition. Goodwill is recorded for the excess of the purchase price over the net of the fair value of the identifiable assets acquired and liabilities assumed as of the acquisition date. The estimation of fair values of acquired assets and assumed liabilities is judgmental and requires various assumptions and the amounts and useful lives assigned to depreciable and amortizable assets compared to amounts assigned to goodwill, which is not amortized, can significantly affect the results of operations in the period of and periods subsequent to a business combination.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction, and therefore represents an exit price. A fair value measurement assumes the highest and best use of the asset by market participants, considering the use of the asset that is physically possible, legally permissible, and financially feasible at the measurement date. We assign the highest level of fair value available to assets acquired and liabilities assumed based on the following options:

· Level 1—Quoted prices in active markets for identical assets and liabilities.

· Level 2—Observable inputs, other than quoted prices, for similar assets or liabilities in active markets.

· Level 3—Unobservable inputs, which includes the use of valuation models.

Level 2 inputs are typically used to estimate the fair value of acquired machinery, equipment and land and assumed liabilities for asset retirement obligations, environmental remediation and compliance obligations and contingencies.

Level 3 inputs are used to estimate the fair value of acquired mineral reserves, mineral interests and separately-identifiable intangible assets.

There is a measurement period after the acquisition date during which we may adjust the amounts recognized for a business combination. Any such adjustments are based on us obtaining additional information that existed at the acquisition date regarding the assets acquired or the liabilities assumed. Measurement period adjustments are generally recorded as increases or decreases to the goodwill recognized in the transaction. The measurement period ends once we have obtained all necessary information that existed as of the acquisition date, but does not extend beyond one year from the date of acquisition. Any adjustments to assets acquired or liabilities assumed beyond the measurement period are recorded in earnings.

We paid cash of $374.9 million and $337.0 million, net of cash acquired, in business combinations and allocated this amount to assets acquired and liabilities assumed during the years ended December 30, 2017 and December 31, 2016, respectively.

Goodwill

Goodwill is tested annually for impairment and in interim periods if events occur indicating that the carrying amounts may be impaired. The evaluation involves the use of significant estimates and assumptions and considerable management judgment. Our judgments regarding the existence of impairment indicators and future cash flows are based on operational performance of our businesses, market conditions and other factors. Although there are inherent uncertainties in this assessment process, the estimates and assumptions we use, including estimates of future cash flows, volumes, market penetration and discount rates, are consistent with our internal planning. The estimated future cash flows are derived from internal operating budgets and forecasts for long-term demand and pricing in our industry and markets. If these estimates or their related assumptions change in the future, we may be required to record an impairment charge on all or a portion of our goodwill. Furthermore, we cannot predict the occurrence of future impairment-triggering events nor the affect such events might have on our reported values. Future events could cause us to conclude

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that impairment indicators exist and that goodwill associated with our acquired businesses are impaired. Any resulting impairment loss could have an adverse effect on our financial condition and results of operations.

The annual goodwill test is performed by first assessing qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If, as a result of the qualitative assessment, it is determined that an impairment is more likely than not, we are then required to perform the two-step quantitative impairment test, otherwise further analysis is not required. We also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. The ultimate outcome of the goodwill impairment review for a reporting unit should be the same whether we choose to perform the qualitative assessment or proceed directly to the two-step quantitative impairment test.

Under the two-step quantitative impairment test, step one of the evaluation of impairment involves comparing the current fair value of each reporting unit to its carrying value, including goodwill. We use a discounted cash flow (“DCF”) model to estimate the current fair value of our reporting units when testing for impairment, as management believes forecasted cash flows are the best indicator of fair value. A number of significant assumptions and estimates are involved in the application of the DCF model to forecast operating cash flows, including macroeconomic trends in the reporting unit’s geographic area impacting private construction and public infrastructure industries, the timing of work embedded in our backlog, our performance and profitability under our contracts, our success in securing future sales and the appropriate interest rate used to discount the projected cash flows. We also perform a market assessment of our enterprise value. We believe the estimates and assumptions used in the valuations are reasonable.

In conjunction with our annual review of goodwill on the first day of the fourth quarter, we performed the qualitative assessment for twelve reporting units. As a result of this analysis, we determined that it is more likely than not that the fair value of the five reporting units was greater than its carrying value. We performed Step 1 of the impairment test for the remaining seven reporting units, for which all had estimated fair values exceeding carrying values by at least 10%.

As of December 30, 2017, we determined that no events or circumstances from October 2, 2017 through December 30, 2017 indicated that a further assessment was necessary.

Revenue Recognition

We earn revenue from predominately from the sale of construction materials, products and providing paving and related services. Construction materials consist primarily of aggregates and cement. Products consist of related downstream products, including ready-mix concrete, asphalt paving mix and concrete products. Paving and related service revenue is generated primarily from the asphalt paving services that we provide. To a lesser degree, we also generate revenue from landfill operations, the receipt and disposal of waste that is converted to fuel for use in our cement plants, and underground storage space rental.

Products

We earn revenue from the sale of products, which primarily include aggregates, cement, ready-mix concrete and asphalt, but also include concrete products and plastics components, net of discounts or allowances, if any, and freight and delivery charges billed to customers. Freight and delivery charges associated with cement sales are recorded on a net basis together with freight costs within cost of sales. Revenue for product sales is recognized when evidence of an arrangement exists, the fee is fixed or determinable, title passes, which is generally when the product is shipped, and collection is reasonably assured.

Aggregates and cement products are sold point-of-sale through purchase orders. When the product is sold on account, collectability typically occurs 30-60 days after the sale.  Revenue is recognized when cash is received from the customer at the point of sale or when the products are delivered or collected on site. There are no other timing implications that will create a contract asset or liability, and contract modifications are unlikely given the timing and nature of the transaction. Material sales are likely to have multiple performance obligations if the product is sold with delivery. In these instances, delivery most often occurs on the same day as the control of the product transfers to the customer. As a result, even in the case of multiple performance obligations, the performance obligations are satisfied concurrently and revenue is recognized simultaneously.

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Services

We earn revenue from the provision of services, which are primarily paving and related services, but also include landfill operations, the receipt and disposal of waste that is converted to fuel for use in our cement plants, and underground storage space rental. Revenue from the receipt of waste fuels is recognized when the waste is accepted and a corresponding liability is recognized for the costs to process the waste into fuel for the manufacturing of cement or to ship the waste offsite for disposal in accordance with applicable regulations. Collectability of service contracts is due reasonably after certain milestones in the contract are performed. Milestones vary by project, but are typically calculated using monthly progress based on the percentage of completion or a customer’s engineered review of progress. The majority of the time, collection occurs within 90 days of billing and cash is received within the same fiscal year as services performed. On most projects, the customer will withhold a portion of the invoice for retainage, which may last longer than a year depending on the job.

Revenue derived from paving and related services are recognized using the percentage-of-completion method of accounting. Under the percentage-of-completion method, we recognize paving and related services revenue as services are rendered. The majority of our construction service contracts are completed within one year, but may occasionally extend beyond this time frame. We estimate profit as the difference between total estimated revenue and total estimated cost of a contract and recognize that profit over the life of the contract based on input measures. We generally measure progress toward completion on long-term paving and related services contracts based on the proportion of costs incurred to date relative to total estimated costs at completion. We include revisions of estimated profits on contracts in earnings under the cumulative catch-up method, under which the effect of revisions in estimates is recognized immediately. If a revised estimate of contract profitability reveals an anticipated loss on the contract, we recognize the loss in the period it is identified.

The percentage-of-completion method of accounting involves the use of various estimating techniques to project costs at completion, and in some cases includes estimates of recoveries asserted against the customer for changes in specifications or other disputes. Contract estimates involve various assumptions and projections relative to the outcome of future events over multiple periods, including future labor productivity and availability, the nature and complexity of the work to be performed, the cost and availability of materials, the effect of delayed performance, and the availability and timing of funding from the customer. These estimates are based on our best judgment. A significant change in one or more of these estimates could affect the profitability of one or more of our contracts. We review our contract estimates regularly to assess revisions in contract values and estimated costs at completion. Inherent uncertainties in estimating costs make it at least reasonably possible that the estimates used will change within the near term and over the life of the contracts. No material adjustments to a contract were recognized between 2016 and the year ended 2018.

We recognize revenue arising from litigation and claims either as income or as an offset against a potential loss only when the amount of the claim can be estimated reliably and its realization is probable. In evaluating these criteria, we consider the contractual basis for the claim, the cause of any additional costs incurred, the reasonableness of those costs and the objective evidence available to support the claim.

The majority of contract modifications relate to the original contract and are often an extension of the original performance obligation. Predominately, modifications are not distinct from those in the original contract; therefore, they are part of a single performance obligation. Summit accounts for the modification using a cumulative catch-up adjustment. However, there are instances where goods or services in a modification are distinct from those transferred prior to the modification. In these situations, Summit accounts for the modifications as either a separate contract or prospectively depending on the facts and circumstances of the modification.

Generally, construction contracts contain mobilization costs which are categorized as costs to fulfill a contract. These costs are excluded from any measure of progress toward contract fulfillment. These costs do not result in the transfer of control of a good or service to the customer and are amortized over the life of the contract.

Costs and estimated earnings in excess of billings are composed principally of revenue recognized on contracts on the percentage of completion method for which billings had not been presented to customers because the amounts were not billable under the contract terms at the balance sheet date. In accordance with the contract terms, the unbilled receivables at the balance sheet date are expected to be billed in following periods. Billings in excess of costs and

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estimated earnings represent billings in excess of revenue recognized. Contract assets and liabilities are netted on a contract-by-contract basis.

Income Taxes

Summit Inc. is a corporation subject to income taxes in the United States. Certain subsidiaries, including Summit Holdings, or subsidiary groups of the Company are taxable separate from Summit Inc. The provisions for income taxes, or Summit Inc.’s proportional share of the provision, are included in the Company’s consolidated financial statements.

The Company’s deferred income tax assets and liabilities are computed for differences between the tax basis and financial statement amounts that will result in taxable or deductible amounts in the future. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible, as well as consideration of tax-planning strategies to determine whether we may seek to utilize any net operating loss carryforwards scheduled to expire in the near future. The computed deferred balances are based on enacted tax laws and applicable rates for the periods in which the differences are expected to affect taxable income. A valuation allowance is recognized for deferred tax assets if it is more likely than not that some portion or all of the net deferred tax assets will not be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines it would be able to realize its deferred tax assets for which a valuation allowance had been recorded, then an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

The Company evaluates the tax positions taken on income tax returns that remain open and positions expected to be taken on the current year tax returns to identify uncertain tax positions. Unrecognized tax benefits on uncertain tax positions are recorded on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is more than 50 percent likely to be realized is recognized. Interest and penalties related to unrecognized tax benefits are recorded in income tax benefit.

Tax Receivable Agreement

Tax Receivable Agreement— When Summit Inc. purchases LP Units for cash or LP Units are exchanged for shares of Class A common stock, this results in increases in Summit Inc.’s share of the tax basis of the tangible and intangible assets of Summit Holdings, which increases the tax depreciation and amortization deductions that otherwise would not have been available to Summit Inc.  These increases in tax basis and tax depreciation and amortization deductions are expected to reduce the amount of cash taxes that we would otherwise be required to pay in the future. In connection with our IPO, we entered into a TRA with the holders of the LP Units and the pre-IPO owners that provides for the payment by Summit Inc. to exchanging holders of LP Units of 85% of the benefits, if any, that Summit Inc. actually realizes (or, under certain circumstances such as an early termination of the TRA is deemed to realize) as a result of (i) these increases in tax basis and (ii) our utilization of certain net operating losses of the pre-IPO owners and certain other tax benefits related to entering into the TRA, including tax benefits attributable to payments under the TRA. The increases in tax basis as a result of an exchange of LP Units for shares of Class A common stock, as well as the amount and timing of any payments under the TRA, are difficult to accurately estimate, as they will vary depending on a number of factors, including the timing of the exchanges, the price of our Class A common stock at the time of the exchange, the extent to which the exchanges are taxable, the amount of net operating losses, and the amount and timing of our income.

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We periodically evaluate the realizability of the deferred tax assets resulting from the exchange of LP Units for Class A common stock. Our evaluation considers all sources of taxable income; all evidence, both positive and negative, is considered to determine whether, based on the weight of that evidence, a valuation allowance is needed for some portion or all of the deferred tax assets. If the deferred tax assets are determined to be realizable, we then assess whether payment of amounts under the TRA have become probable. If so, we record a TRA liability of 85% of such deferred tax assets. In subsequent periods, we assess the realizability of all of our deferred tax assets subject to the TRA. Should we determine a deferred tax asset with a valuation allowance is realizable in a subsequent period, the related valuation allowance will be released and consideration of a corresponding TRA liability will be assessed. The realizability of deferred tax assets, including those subject to the TRA, is dependent upon the generation of future taxable income during the periods in which those deferred tax assets become deductible and consideration of prudent and feasible tax-planning strategies.

The measurement of the TRA is accounted for as a contingent liability. Therefore, once we determine that a payment to a pre-IPO owner has become probable and can be estimated, the estimate of payment is accrued.

New Accounting Pronouncements Not Yet Adopted

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which prescribes a five-step model for revenue recognition that will replace most existing revenue recognition guidance in U.S. GAAP. The ASU will supersede nearly all existing revenue recognition guidance under U.S. GAAP and provides that an entity recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB postponed the effective date of the new revenue standard by one year to the first quarter of 2018. In applying these ASUs, an entity is permitted to use either the full retrospective or cumulative effect transition approach. We plan to adopt these ASU’s using the modified retrospective approach. We have evaluated the impact of adoption of these standards on our consolidated financial statements, which was not material.

In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business, which narrows the definition of a business. This ASU provides a screen to determine whether a group of assets constitutes a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated as acquisitions. If the screen is not met, this ASU (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output and (2) removes the evaluation of whether a market participant could replace missing elements. Although outputs are not required for a set to be a business, outputs generally are a key element of a business; therefore, the FASB has developed more stringent criteria for sets without outputs. The ASU is effective for public companies for annual periods beginning after December 15, 2017. The adoption of this ASU will not have a material impact on the consolidated financial statements.

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, allowing more financial and nonfinancial hedging strategies to be eligible for hedge accounting. The ASU is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The adoption of this ASU is not expected to have a material impact on the consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases, which will result in lessees recognizing most leases on the balance sheet. Lessees are required to disclose more quantitative and qualitative information about their leases than current U.S. GAAP requires. The ASU is effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We are evaluating the new requirements, but have not yet determined the impact on our consolidated financial statements.

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ITEM 7A.       QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

We are exposed to certain market risks arising from transactions that are entered into in the normal course of business. Our operations are highly dependent upon the interest rate‑sensitive construction industry as well as the general economic environment. Consequently, these marketplaces could experience lower levels of economic activity in an environment of rising interest rates or escalating costs. Management has considered the current economic environment and its potential effect to our business. Demand for materials‑based products, particularly in the residential and nonresidential construction markets, could decline if companies and consumers are unable to obtain financing for construction projects or if an economic recession causes delays or cancellations to capital projects. Additionally, in preceding years, declining tax revenue, state budget deficits and unpredictable or inconsistent federal funding have negatively affected states’ abilities to finance infrastructure construction projects.

Commodity and Energy Price Risk

We are subject to commodity price risk with respect to price changes in liquid asphalt and energy, including fossil fuels and electricity for aggregates, cement, ready‑mix concrete and asphalt paving mix production, natural gas for hot mix asphalt production and diesel fuel for distribution vehicles and production related mobile equipment. Liquid asphalt escalators in most of our public infrastructure contracts limit our exposure to price fluctuations in this commodity, and we seek to obtain escalators on private and commercial contracts. Similarly, in periods of decreasing oil prices, a portion of the cost savings will be recouped by our end customers. Changes in oil prices also could affect demand in certain of our markets, particularly in Midland/Odessa, Texas and indirectly in Houston, Texas, which collectively represented approximately 11.5% of our consolidated revenue in 2017. In addition, we enter into various firm purchase commitments, with terms generally less than one year, for certain raw materials.

For the year ended December 30, 2017, our costs associated with liquid asphalt and energy amounted to approximately $198.5 million. Accordingly, a 10% increase or decrease in the total cost of liquid asphalt and energy would have decreased or increased, respectively, our operating results for the year by approximately $19.9 million. However, this does not take into consideration liquid asphalt escalators in certain contracts or forward purchase commitments put into place before December 30, 2017.

Inflation Risk

Inflation rates in recent years have not been a significant factor in our revenue or earnings due to relatively low inflation and our ability to recover increasing costs by obtaining higher prices for our products, including sale price escalators in place for most public infrastructure sector contracts. Inflation risk varies with the level of activity in the construction industry, the number, size and strength of competitors and the availability of products to supply a local market.

Foreign Currency Risk

In 2014, we expanded our operations into Canada with the acquisition of Mainland. With this expansion, we became subject to foreign currency risk related to changes in the U.S. dollar/Canadian dollar exchange rates. A 10% adverse change in foreign currency rates from December 2017 levels would not have had a material effect on our financial condition, results of operations or liquidity.

Interest Rate Risk

As of December 30, 2017, we had $635 million in term loans outstanding which bear interest at a variable rate. As of December 30, 2017, the rate in effect was the one‑month LIBOR of 1.57%. Therefore, a 100 basis point increase in the interest rate at December 30, 2017 would only have increased the rate from 1.57% to 2.57%, the effect of which would have been an increase of $6.4 million on annual interest expense.

On January 19, 2017, we amended the Credit Agreement and, as a result, the floor decreased from 1.00% to 0.75%. On November 21, 2017, Summit LLC entered into Amendment No. 2 to the Amended and Restated Credit Agreement, which, among other things, extended the maturity date from 2022 to 2024 and reduced the applicable margin in respect of the $635.4 million outstanding principal amount of term loans thereunder.

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The Company has entered into interest rate derivatives on $200.0 million of its term loan borrowings to add stability to interest expense and to manage its exposure to interest rate movements. The derivative is set to expire in September 2019.

At our cement plants, we sponsored two non‑contributory defined benefit pension plans for certain hourly and salaried employees and one healthcare and life insurance benefits plan for certain eligible retired employees. As of January 2014, the two pension plans had been frozen to new participants and future benefit accruals and the healthcare and life insurance benefit plan has been amended to eliminate all future retiree health and life coverage for current employees. As a result of the acquisition of the Davenport Assets in 2015, the hourly defined benefit pension plan was amended to permit a new group of participants into the plan to accrue benefits in accordance with the terms of the collective bargaining agreement covering such Davenport employees. As a result of the collective bargaining unit negotiations in 2017, the hourly defined benefit pension plan was amended to stop future benefit accruals for the Davenport employees effective December 31, 2017. In addition, the company adopted one new retiree healthcare plan to provide benefits prior to Medicare eligibility for certain hourly Davenport employees. Our results of operations are affected by our net periodic benefit cost from these plans, which was $1.0 million in 2017. Assumptions that affect this expense include the discount rate and, for the pension plans only, the expected long‑term rate of return on assets. Therefore, we have interest rate risk associated with these factors.

The healthcare and life insurance benefit plans are exposed to changes in the cost of healthcare services. A one percentage‑point increase or decrease in assumed health care cost trend rates would have affected the accumulated postretirement benefit obligation by approximately $0.9 million or $(0.8) million, respectively, at December 30, 2017.

ITEM 8.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

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Report of Independent Registered Public Accounting Firm

To the stockholders and board of directors
Summit Materials, Inc.:

Opinion on the ConsolidatedFinancial Statements

We have audited the accompanying consolidated balance sheets of Summit Materials, Inc. and subsidiaries (the “Company”) as of December 30, 2017 and December 31, 2016, the related consolidated statements of operations, comprehensive loss, changes in redeemable noncontrolling interest and stockholders’ equity, and cash flows for each of the fiscal years ended December 30, 2017, December 31, 2016 and January 2, 2016 and the related notes (collectively, the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 30, 2017 and December 31, 2016, and the results of its operations and its cash flows for each of the fiscal years ended December 30, 2017, December 31, 2016 and January 2, 2016, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 30, 2017, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 14, 2018 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ KPMG LLP

We have served as the Company’s auditor since2012.

Denver, Colorado  

February 14, 2018

75

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

December 30, 2017 and December 31, 2016

(In thousands, except share and per share amounts)

	2017		2016
Assets
Current assets:
Cash and cash equivalents	$	383,556	$	143,392
Accounts receivable, net		198,330		162,377
Costs and estimated earnings in excess of billings		9,512		7,450
Inventories		184,439		157,679
Other current assets		7,764		12,800
Total current assets		783,601		483,698
Property, plant and equipment		1,615,424		1,446,452
Goodwill		1,036,320		782,212
Intangible assets		16,833		17,989
Deferred tax assets		284,092		4,326
Other assets		51,063		46,789
Total assets	$	3,787,333	$	2,781,466
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of debt	$	4,765	$	6,500
Current portion of acquisition-related liabilities		14,087		24,162
Accounts payable		98,744		81,565
Accrued expenses		116,629		111,605
Billings in excess of costs and estimated earnings		15,750		15,456
Total current liabilities		249,975		239,288
Long-term debt		1,810,833		1,514,456
Acquisition-related liabilities		58,135		32,664
Tax receivable agreement liability		331,340		58,145
Other noncurrent liabilities		65,329		76,874
Total liabilities		2,515,612		1,921,427
Commitments and contingencies (see note 16)
Stockholders’ equity:
Class A common stock, par value $0.01 per share; 1,000,000,000 shares authorized, 110,350,594 and 96,033,222 shares issued and outstanding as of December 30, 2017 and December 31, 2016, respectively		1,104		961
Class B common stock, par value $0.01 per share; 250,000,000 shares authorized, 100 shares issued and outstanding as of December 30, 2017 and December 31, 2016		—		—
Additional paid-in capital		1,154,220		824,304
Accumulated earnings		95,833		19,028
Accumulated other comprehensive income (loss)		7,386		(2,249)
Stockholders’ equity		1,258,543		842,044
Noncontrolling interest in consolidated subsidiaries		—		1,378
Noncontrolling interest in Summit Holdings		13,178		16,617
Total stockholders’ equity		1,271,721		860,039
Total liabilities and stockholders’ equity	$	3,787,333	$	2,781,466

See accompanying notes to consolidated financial statements.

76

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

Years ended December 30, 2017, December 31, 2016 and January 2, 2016

(In thousands, except share and per share amounts)

	2017		2016		2015
Revenue:
Product	$	1,449,936	$	1,223,008	$	1,043,843
Service		302,473		265,266		246,123
Net revenue		1,752,409		1,488,274		1,289,966
Delivery and subcontract revenue		180,166		137,789		142,331
Total revenue		1,932,575		1,626,063		1,432,297
Cost of revenue (excluding items shown separately below):
Product		898,281		751,419		676,074
Service		203,330		182,584		171,857
Net cost of revenue		1,101,611		934,003		847,931
Delivery and subcontract cost		180,166		137,789		142,331
Total cost of revenue		1,281,777		1,071,792		990,262
General and administrative expenses		242,670		243,512		177,769
Depreciation, depletion, amortization and accretion		179,518		149,300		119,723
Transaction costs		7,733		6,797		9,519
Operating income		220,877		154,662		135,024
Interest expense		108,549		97,536		84,629
Loss on debt financings		4,815		—		71,631
Tax receivable agreement expense		271,016		14,938		—
Other (income) expense, net		(5,303)		1,361		(2,042)
(Loss) income from operations before taxes		(158,200)		40,827		(19,194)
Income tax benefit		(283,977)		(5,299)		(18,263)
Income (loss) from continuing operations		125,777		46,126		(931)
Income from discontinued operations		—		—		(2,415)
Net income		125,777		46,126		1,484
Net income (loss) attributable to noncontrolling interest in subsidiaries		(27)		16		(1,826)
Net income (loss) attributable to Summit Holdings		3,974		9,327		(24,408)
Net income attributable to Summit Inc.	$	121,830	$	36,783	$	27,718
Income per share of Class A common stock:
Basic	$	1.12	$	0.52	$	0.68
Diluted	$	1.11	$	0.52	$	0.50
Weighted average shares of Class A common stock:
Basic		108,696,438		70,355,042		40,888,437
Diluted		109,490,898		70,838,508		90,993,322

See accompanying notes to consolidated financial statements.

77

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Loss

Years ended December 30, 2017, December 31, 2016 and January 2, 2016

(In thousands)

	2017		2016		2015
Net income	$	125,777	$	46,126	$	1,484
Other comprehensive income (loss):
Postretirement curtailment adjustment		429		—		—
Postretirement liability adjustment		699		426		2,123
Foreign currency translation adjustment		7,768		2,125		(14,099)
Income (loss) on cash flow hedges		1,413		(1,529)		(944)
Less tax effect of other comprehensive income (loss) items		(288)		—		—
Other comprehensive income (loss):		10,021		1,022		(12,920)
Comprehensive income (loss)		135,798		47,148		(11,436)
Less comprehensive (loss) income attributable to the noncontrolling interest in consolidated subsidiaries		(27)		16		(1,826)
Less comprehensive income (loss) attributable to Summit Holdings		4,360		9,803		(34,533)
Comprehensive income attributable to Summit Inc.	$	131,465	$	37,329	$	24,923

See accompanying notes to consolidated financial statements.

78

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

Years ended December 30, 2017, December 31, 2016 and January 2, 2016

(In thousands)

	2017		2016		2015
Cash flow from operating activities:
Net income	$	125,777	$	46,126	$	1,484
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, amortization and accretion		193,107		160,633		125,019
Share-based compensation expense		21,140		49,940		19,899
Net gain on asset disposals		(7,638)		(3,102)		(23,087)
Non-cash loss on debt financings		3,856		—		(9,877)
Change in deferred tax asset, net		(289,219)		(4,263)		(19,838)
Other		(2,359)		(1,282)		(1,629)
(Increase) decrease in operating assets, net of acquisitions:
Accounts receivable, net		(3,720)		2,511		3,852
Inventories		(18,609)		(10,297)		4,275
Costs and estimated earnings in excess of billings		(1,825)		(2,684)		6,604
Other current assets		8,703		(5,518)		11,438
Other assets		(3,103)		(2,350)		(1,369)
Increase (decrease) in operating liabilities, net of acquisitions:
Accounts payable		6,192		(5,751)		(4,241)
Accrued expenses		(7,006)		13,196		(14,354)
Billings in excess of costs and estimated earnings		109		700		1,313
Tax receivable agreement liability		273,194		58,145		—
Other liabilities		(6,416)		(51,141)		(1,286)
Net cash provided by operating activities		292,183		244,863		98,203
Cash flow from investing activities:
Acquisitions, net of cash acquired		(374,930)		(336,958)		(510,017)
Purchases of property, plant and equipment		(194,146)		(153,483)		(88,950)
Proceeds from the sale of property, plant and equipment		17,072		16,868		13,110
Other		(471)		2,921		1,510
Net cash used for investing activities		(552,475)		(470,652)		(584,347)
Cash flow from financing activities:
Proceeds from equity offerings		237,600		—		1,037,444
Capital issuance costs		(627)		(136)		(61,609)
Proceeds from debt issuances		302,000		354,000		1,748,875
Debt issuance costs		(6,416)		(5,801)		(14,246)
Payments on debt		(16,438)		(120,702)		(1,505,486)
Purchase of noncontrolling interests		(532)		—		(497,848)
Payments on acquisition-related liabilities		(34,650)		(32,040)		(18,056)
Distributions from partnership		(1,974)		(13,034)		(28,736)
Proceeds from stock option exercises		21,661		440		—
Other		(869)		(20)		(1)
Net cash provided by financing activities		499,755		182,707		660,337
Impact of foreign currency on cash		701		69		(1,003)
Net increase (decrease) in cash		240,164		(43,013)		173,190
Cash and cash equivalents—beginning of period		143,392		186,405		13,215
Cash and cash equivalents—end of period	$	383,556	$	143,392	$	186,405

See accompanying notes to consolidated financial statements.

79

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Consolidated Statements of Changes in Redeemable Noncontrolling Interest and Stockholders’ Equity

Years ended December 30, 2017, December 31, 2016 and January 2, 2016

(In thousands, except share amounts)

							Summit Materials, Inc.
									Accumulated
	Redeemable				Noncontrolling				Other		Class A				Class B				Additional		Noncontrolling		Total
	Noncontrolling		Partners’		Interest in		Accumulated		Comprehensive		Common Stock				Common Stock				Paid-in		Interest in		Stockholders’
	Interest		Interest		Subsidiaries		Earnings		(Loss) Income		Shares		Dollars		Shares		Dollars		Capital		Summit Holdings		Equity
Balance — December 27, 2014	$	33,740	$	285,685	$	1,298	$	—	$	—		—	$	—		—	$	—	$	—	$	—	$	286,983
Accretion/ redemption value adjustment		32,252		(32,252)		—		—		—		—		—		—		—		—		—		(32,252)
Net loss		(1,890)		(41,338)		(77)		—		—		—		—		—		—		—		—		(41,415)
Other comprehensive loss		—		(5,249)		—		—		—		—		—		—		—		—		—		(5,249)
Share-based compensation		—		424		—		—		—		—		—		—		—		—		—		424
Balance — March 11, 2015	$	64,102	$	207,270	$	1,221	$	—	$	—		—	$	—		—	$	—	$	—	$	—	$	208,491
Recording of noncontrolling interest upon reorganization		—		(207,270)		—		—		—		—		—		—		—		—		207,270		—
Net income		—		—		141		27,718		—		—		—		—		—		—		16,930		44,789
Issuance of Class A Shares		—		—		—		—		—		47,981,653		480		—		—		975,355		—		975,835
Issuance of Class B Shares		—		—		—		—		—		—		—		69,007,397		690		(690)		—		—
Other comprehensive loss		—		—		—		—		(2,795)		—		—		—		—		—		(4,876)		(7,671)
Share repurchase		—		—		—		—		—		—		—		(100)		—		—		—		—
Purchase of redeemable noncontrolling interest		(64,102)		—		—		—		—		1,029,183		10		—		—		18,515		—		18,525
Purchase of LP Units		—		—		—		—		—		—		—		—		—		(411,532)		(51,315)		(462,847)
Share-based compensation		—		—		—		—		—		—		—		—		—		19,475		—		19,475
Dividend (0.015/share)		—		—		—		(16,848)		—		735,108		7		—		—		17,880		(1,040)		(1)
Distributions from partnership		—		—		—		—		—		—		—		—		—		—		(28,736)		(28,736)
Balance — January 2, 2016	$	—	$	—	$	1,362	$	10,870	$	(2,795)		49,745,944	$	497		69,007,297	$	690		619,003	$	138,233	$	767,860
Net income		—		—		16		36,783		—		—		—		—		—		—		9,327		46,126
LP Unit exchanges		—		—		—		—		—		45,124,528		451		—		—		117,813		(118,264)		—
Other comprehensive income		—		—		—		—		546		—		—		—		—		—		476		1,022
Stock option exercises		—		—		—		—		—		24,354		2		—		—		438		—		440
Class B share cancellation		—		—		—		—		—		—		—		(69,007,197)		(690)		690		—		—
Share-based compensation		—		—		—		(1,684)		—		—		—		—		—		51,624		—		49,940
Dividend (0.012/share)		—		—		—		(26,941)		—		1,135,692		11		—		—		27,047		(121)		(4)
Distributions from partnership		—		—		—		—		—		—		—		—		—		—		(13,034)		(13,034)
Other		—		—		—		—		—		2,704		—		—		—		7,689		—		7,689
Balance — December 31, 2016	$	—	$	—	$	1,378	$	19,028	$	(2,249)		96,033,222	$	961		100	$	—	$	824,304	$	16,617	$	860,039
Net (loss) income		—		—		(27)		121,830		—		—		—		—		—		—		3,974		125,777
Issuance of Class A Shares		—		—		—		—		—		10,000,000		100		—		—		238,367		(1,496)		236,971
LP Unit exchanges		—		—		—		—		—		1,461,677		15		—		—		4,159		(4,174)		—
Other comprehensive income, net of tax		—		—		—		—		9,635		—		—		—		—		—		386		10,021
Stock option exercises		—		—		—		—		—		1,203,121		12		—		—		21,649		—		21,661
Share-based compensation		—		—		—		—		—		—		—		—		—		21,140		—		21,140
Dividend (0.014/share)		—		—		—		(45,025)		—		1,521,056		15		—		—		45,163		(155)		(2)
Distributions from partnership		—		—		—		—		—		—		—		—		—		—		(1,974)		(1,974)
Purchase of noncontrolling interest		—		—		(1,148)		—		—		—		—		—		—		—		—		(1,148)
Other		—		—		(203)		—		—		131,518		1		—		—		(562)		—		(764)
Balance — December 30, 2017	$	—	$	—	$	—	$	95,833	$	7,386		110,350,594	$	1,104		100	$	—	$	1,154,220	$	13,178	$	1,271,721

See accompanying notes to consolidated financial statements.

80

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in tables in thousands, unless otherwise noted)

(1) Summary of Organization and Significant Accounting Policies

Summit Materials, Inc. (“Summit Inc.” and, together with its subsidiaries, the “Company”) is a vertically-integrated construction materials company. The Company is engaged in the production and sale of aggregates, cement, ready-mix concrete, asphalt paving mix and concrete products and owns and operates quarries, sand and gravel pits, two cement plants, cement distribution terminals, ready-mix concrete plants, asphalt plants and landfill sites. It is also engaged in paving and related services. The Company’s three operating and reporting segments are the West, East and Cement segments.

Substantially all of the Company’s products and services are produced, consumed and performed outdoors, primarily in the spring, summer and fall. Seasonal changes and other weather-related conditions can affect the production and sales volumes of its products and delivery of services. Therefore, the financial results for any interim period are typically not indicative of the results expected for the full year. Furthermore, the Company’s sales and earnings are sensitive to national, regional and local economic conditions and to cyclical changes in construction spending, among other factors.

On September 23, 2014, Summit Inc. was formed as a Delaware corporation to be a holding company. Its sole material asset is a controlling equity interest in Summit Materials Holdings L.P. (“Summit Holdings”). Pursuant to a reorganization into a holding company structure (the “Reorganization”) consummated in connection with Summit Inc.’s March 2015 initial public offering, Summit Inc. became a holding corporation operating and controlling all of the business and affairs of Summit Holdings and its subsidiaries. Summit Inc. owns the majority of the partnership interests of Summit Holdings (see note 11, Stockholders’ Equity).  Summit Materials, LLC (“Summit LLC”) an indirect wholly owned subsidiary of Summit Holdings, conducts the majority of our operations. Continental Cement Company, L.L.C. (“Continental Cement”) is also a wholly owned subsidiary of Summit LLC. Summit Materials Finance Corp. (“Summit Finance”), an indirect wholly owned subsidiary of Summit LLC, has jointly issued our Senior Notes as described below.

Principles of Consolidation—The consolidated financial statements include the accounts of Summit Inc. and its majority owned subsidiaries. All intercompany balances and transactions have been eliminated. As a result of the Reorganization, Summit Holdings became a variable interest entity over which Summit Inc. has 100% voting power and control and for which Summit Inc. has the obligation to absorb losses and the right to receive benefits.

The Company’s fiscal year is based on a 52-53 week year with each quarter composed of 13 weeks ending on a Saturday. The 53-week year occurs approximately once every seven years and occurred in 2015. The additional week in the 53-week year was included in the fourth quarter of 2015.

For a summary of the changes in Summit Inc.’s ownership of Summit Holdings, see Note 11, Stockholders’ Equity.

The Company attributes consolidated stockholders’ equity and net income separately to the controlling and noncontrolling interests. The Company accounts for investments in entities for which it has an ownership of 20% to 50% using the equity method of accounting. 

Use of Estimates—Preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities and reported amounts of revenue and expenses. Such estimates include the valuation of accounts receivable, inventories, valuation of deferred tax assets, goodwill, intangibles and other long-lived assets, the tax receivable agreement (“TRA”) liability, pension and other postretirement obligations, and asset retirement obligations. Estimates also include revenue earned on contracts and costs to complete contracts. Most of the Company’s paving and related services are performed under fixed unit-price contracts with state and local governmental entities. Management regularly evaluates its estimates and assumptions based on historical experience and other factors,

81

including the current economic environment. As future events and their effects cannot be determined with precision, actual results can differ significantly from estimates made. Changes in estimates, including those resulting from continuing changes in the economic environment, are reflected in the Company’s consolidated financial statements when the change in estimate occurs.  

Business and Credit Concentrations—The Company’s operations are conducted primarily across 23 U.S. states and in British Columbia, Canada, with the most significant revenue generated in Texas, Utah, Kansas and Missouri. The Company’s accounts receivable consist primarily of amounts due from customers within these areas. Therefore, collection of these accounts is dependent on the economic conditions in the aforementioned states, as well as specific situations affecting individual customers. Credit granted within the Company’s trade areas has been granted to many customers and management does not believe that a significant concentration of credit exists with respect to any individual customer or group of customers. No single customer accounted for more than 10% of the Company’s total revenue in 2017, 2016 or 2015.

Accounts Receivable—Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the collectability of individual accounts. In establishing the allowance, management considers historical losses adjusted to take into account current market conditions and its customers’ financial condition, the amount of receivables in dispute, the current receivables aging and current payment terms. Balances that remain outstanding after reasonable collection efforts are exercised are written off through a charge to the valuation allowance.

The balances billed but not paid by customers, pursuant to retainage provisions included in contracts, are generally due upon completion of the contracts.

Revenue Recognition—We earn revenue from the sale of products, which primarily include aggregates, cement, ready-mix concrete and asphalt, but also include concrete products and plastics components, and from the provision of services, which are primarily paving and related services, but also include landfill operations, the receipt and disposal of waste that is converted to fuel for use in our cement plants and underground storage space rental.

Revenue for product sales is recognized when evidence of an arrangement exists, the fee is fixed or determinable, title passes, which is generally when the product is shipped, and collection is reasonably assured. Product revenue generally includes sales of aggregates, cement and other materials to customers, net of discounts or allowances or taxes, if any, and freight and delivery charges billed to customers. Freight and delivery charges associated with cement sales are recorded on a net basis together with freight costs within cost of sales.

Revenue from the receipt of waste fuels is recognized when the waste is accepted and a corresponding liability is recognized for the costs to process the waste into fuel for the manufacturing of cement or to ship the waste offsite for disposal in accordance with applicable regulations.

We account for revenue and earnings on our long-term paving and related services contracts as service revenue using the percentage-of-completion method of accounting. Under the percentage-of-completion method, we recognize paving and related services revenue as services are rendered. We estimate profit as the difference between total estimated revenue and total estimated cost of a contract and recognize that profit over the life of the contract based on input measures. We generally measure progress toward completion on long-term paving and related services contracts based on the proportion of costs incurred to date relative to total estimated costs at completion. We include revisions of estimated profits on contracts in earnings under the cumulative catch-up method, under which the effect of revisions in estimates is recognized immediately. If a revised estimate of contract profitability reveals an anticipated loss on the contract, we recognize the loss in the period it is identified.

The percentage-of-completion method of accounting involves the use of various estimating techniques to project costs at completion, and in some cases includes estimates of recoveries asserted against the customer for changes in specifications or other disputes. Contract estimates involve various assumptions and projections relative to the outcome of future events over multiple periods, including future labor productivity and availability, the nature and complexity of the work to be performed, the cost and availability of materials, the effect of delayed performance, and the availability and timing of funding from the customer. These estimates are based on our best judgment. A significant change in one or

82

more of these estimates could affect the profitability of one or more of our contracts. We review our contract estimates regularly to assess revisions in contract values and estimated costs at completion.

We recognize revenue arising from claims either as income or as an offset against a potential loss only when the amount of the claim can be estimated reliably and its realization is probable. In evaluating these criteria, we consider the contractual basis for the claim, the cause of any additional costs incurred, the reasonableness of those costs and the objective evidence available to support the claim.

Inventories—Inventories consist of stone that has been removed from quarries and processed for future sale, cement, raw materials and finished concrete blocks. Inventories are valued at the lower of cost or market and are accounted for on a first-in first-out basis or an average cost basis. If items become obsolete or otherwise unusable or if quantities exceed what is projected to be sold within a reasonable period of time, they will be charged to costs of production in the period that the items are designated as obsolete or excess inventory. Stripping costs are costs of removing overburden and waste material to access aggregate materials and are expensed as incurred.

Property, Plant and Equipment, net—Property, plant and equipment are recorded at cost, less accumulated depreciation, depletion and amortization. Expenditures for additions and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Repair and maintenance costs that do not substantially expand productive capacity or extend the life of property, plant and equipment are expensed as incurred.

Landfill airspace is included in property, plant and equipment at cost and is amortized based on the portion of the airspace used during the period compared to the gross estimated value of available airspace, which is updated periodically as circumstances dictate. Management reassesses the landfill airspace capacity with any changes in value recorded in cost of revenue. Capitalized landfill costs include expenditures for the acquisition of land and related airspace, engineering and permitting costs, cell construction costs and direct site improvement costs.

Upon disposal of an asset, the cost and related accumulated depreciation are removed from the Company’s accounts and any gain or loss is included in general and administrative expenses.

The Company reviews the carrying value of property, plant and equipment for impairment whenever events or circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. Such indicators may include, among others, deterioration in general economic conditions, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows or a trend of negative or declining cash flows over multiple periods.

Property, plant and equipment is tested for impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. As a result, the property, plant and equipment impairment test is at a significantly lower level than the level at which goodwill is tested for impairment. In markets where the Company does not produce downstream products, such as ready-mix concrete, asphalt paving mix and paving and related services, the lowest level of largely independent identifiable cash flows is at the individual aggregates operation or a group of aggregates operations collectively serving a local market or the cement operations. Conversely, in vertically-integrated markets, the cash flows of the downstream and upstream businesses are not largely independently identifiable and the vertically-integrated operations are considered the lowest level of largely independent identifiable cash flows.

Accrued Mining and Landfill Reclamation—The mining reclamation reserve and financial commitments for landfill closure and post-closure activities are based on management’s estimate of future cost requirements to reclaim property at both currently operating and closed sites. Estimates of these obligations have been developed based on management’s interpretation of current requirements and proposed regulatory changes and are intended to approximate fair value. Costs are estimated in current dollars, inflated until the expected time of payment, and then discounted back to present value using a credit-adjusted, risk-free rate on obligations of similar maturity, adjusted to reflect the Company’s credit rating. Changes in the credit-adjusted, risk-free rate do not change recorded liabilities. However, subsequent increases in the recognized obligations are measured using a current credit-adjusted, risk-free rate. Decreases in the recognized obligations are measured at the initial credit-adjusted, risk-free rate.

Significant changes in inflation rates or the amount or timing of future cost estimates typically result in both (1) a current adjustment to the recorded liability (and corresponding adjustment to the asset) and (2) a change in accretion of

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the liability and depreciation of the asset to be recorded prospectively over the remaining capacity of the unmined quarry or landfill.

Goodwill—Goodwill represents the purchase price paid in excess of the fair value of net tangible and intangible assets acquired. Goodwill recorded in connection with the Company’s acquisitions is primarily attributable to the expected profitability, assembled workforces of the acquired businesses and the synergies expected to arise after the Company’s acquisition of those businesses. Goodwill is not amortized, but is tested annually for impairment as of the first day of the fourth quarter and at any time that events or circumstances indicate that goodwill may be impaired. A qualitative approach may first be applied to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If, as a result of the qualitative assessment, it is determined that an impairment is more likely than not, the two-step quantitative impairment test is then performed, otherwise further analysis is not required. The two-step impairment test first identifies potential goodwill impairment for each reporting unit and then, if necessary, measures the amount of the impairment loss.

Income Taxes—Summit Inc. is a corporation subject to income taxes in the United States. Certain subsidiaries, including Summit Holdings, or subsidiary groups of the Company are taxable separate from Summit Inc. The provisions, or Summit Inc.’s proportional share of the provision, are included in the Company’s consolidated financial statements.

The Company’s deferred income tax assets and liabilities are computed for differences between the tax basis and financial statement amounts that will result in taxable or deductible amounts in the future. The computed deferred balances are based on enacted tax laws and applicable rates for the periods in which the differences are expected to affect taxable income. A valuation allowance is recognized for deferred tax assets if it is more likely than not that some portion or all of the net deferred tax assets will not be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines it would be able to realize its deferred tax assets for which a valuation allowance had been recorded then an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

The Company evaluates the tax positions taken on income tax returns that remain open and positions expected to be taken on the current year tax returns to identify uncertain tax positions. Unrecognized tax benefits on uncertain tax positions are recorded on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is more than 50 percent likely to be realized is recognized. Interest and penalties related to unrecognized tax benefits are recorded in income tax benefit.

Tax Receivable Agreement— When Summit Inc. purchases LP Units for cash or LP Units are exchanged for shares of Class A common stock, this results in increases in Summit Inc.’s share of the tax basis of the tangible and intangible assets, which increases the tax depreciation and amortization deductions that otherwise would not have been available to Summit Inc.  These increases in tax basis and tax depreciation and amortization deductions are expected to reduce the amount of cash taxes that we would otherwise be required to pay in the future. Prior to our IPO, we entered into a TRA with the pre-IPO owners that require us to pay the pre-IPO owners 85% of the amount of cash savings, if any, in U.S. federal, state, and local income tax that we actually realize as a result of these exchanges.  These benefits include (1) increases in the tax basis of tangible and intangible assets of Summit Holdings and certain other tax benefits related to entering into the TRA, (2) tax benefits attributable to payments under the TRA, or (3) under certain circumstances such as an early termination of the TRA, we are deemed to realize, as a result of the increases in tax basis in connection with exchanges by the pre-IPO owners described above and certain other tax benefits attributable to payments under the TRA.

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As noted above, we periodically evaluate the realizability of the deferred tax assets resulting from the exchange of LP Units for Class A common stock. If the deferred tax assets are determined to be realizable, we then assess whether payment of amounts under the TRA have become probable. If so, we record a TRA liability equal to 85% of such deferred tax assets. In subsequent periods, we assess the realizability of all of our deferred tax assets subject to the TRA. Should we determine a deferred tax asset with a valuation allowance is realizable in a subsequent period, the related valuation allowance will be released and consideration of a corresponding TRA liability will be assessed. The realizability of deferred tax assets, including those subject to the TRA, is dependent upon the generation of future taxable income during the periods in which those deferred tax assets become deductible and consideration of prudent and feasible tax-planning strategies.

The measurement of the TRA is accounted for as a contingent liability. Therefore, once we determine that a payment to a pre-IPO owner has become probable and can be estimated, the estimate of payment will be accrued.

Earnings per Share—The Company computes basic earnings per share attributable to stockholders by dividing income attributable to Summit Inc. by the weighted-average shares of Class A common stock outstanding. Diluted earnings per share reflects the potential dilution beyond shares for basic earnings per share that could occur if securities or other contracts to issue common stock were exercised, converted into common stock, or resulted in the issuance of common stock that would have shared in the Company’s earnings. Since the Class B common stock has no economic value, those shares are not included in the weighted-average common share amount for basic or diluted earnings per share. In addition, as the shares of Class A common stock are issued by Summit Inc., the earnings and equity interests of noncontrolling interests are not included in basic earnings per share.

New Accounting Standards — In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which prescribes a five-step model for revenue recognition that will replace most existing revenue recognition guidance in U.S. GAAP. The ASU will supersede nearly all existing revenue recognition guidance under U.S. GAAP and provides that an entity recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB postponed the effective date of the new revenue standard by one year to the first quarter of 2018. In applying these ASUs, an entity is permitted to use either the full retrospective or cumulative effect transition approach. We plan to adopt these ASU’s using the modified retrospective approach. We have evaluated the impact of adoption of these standards on our consolidated financial statements, which was not material.

In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business, which narrows the definition of a business. This ASU provides a screen to determine whether a group of assets constitutes a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated as acquisitions. If the screen is not met, this ASU (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output and (2) removes the evaluation of whether a market participant could replace missing elements. Although outputs are not required for a set to be a business, outputs generally are a key element of a business; therefore, the FASB has developed more stringent criteria for sets without outputs. The ASU is effective for public companies for annual periods beginning after December 15, 2017. The adoption of this ASU will not have a material impact on the consolidated financial statements.

In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires that the service cost component be reported in the same line item as employer compensation costs and that the other components of periodic pension costs be reported outside of operating income. The ASU also restricts capitalization of costs to the service cost component. The ASU is effective for public companies for annual periods beginning after December 15, 2017. The Company early adopted this ASU as of the beginning of fiscal year 2017 on a retrospective basis; accordingly, the Company reclassified $278,000 and $383,000 from product cost of revenue to other income for the year ended December 31, 2016 and January 2, 2016, respectively, and $350,000 from general and administrative expenses to other income for the year ended December 31, 2016, to conform to the current year presentation.

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In January 2017, the FASB issued a new ASU No. 2017-04 Intangibles - Goodwill and Other (Topic 350), which simplifies the test for goodwill impairment. The ASU eliminates the two step goodwill impairment test and replaces it with a single step test. The single step test compares the carrying amount of a reporting unit to its fair value; if the carrying amount is greater than the fair value the difference is the amount of the goodwill impairment.  Step zero is left unchanged. Therefore, entities that wish do a qualitative assessment are still permitted to do so. The ASU is effective for Securities and Exchange Commission (“SEC”) filers for fiscal years beginning after December 15, 2020. The Company early adopted this ASU as of the beginning of fiscal year 2017 which adoption did not have a material impact on our consolidated financial statements.

In March 2016, the FASB issued a new accounting standard with targeted amendments to the accounting for employee share-based payments. ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, requires that the income tax effect of share-based awards be recognized in the income statement and allows entities to elect an accounting method to recognize forfeitures as they occur or to estimate forfeitures, as is currently required. The ASU is effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. However, the Company early adopted this ASU as of the beginning of fiscal year 2016 and made an election to recognize forfeitures as they occur. The ASU adoption was applied using a modified retrospective method by means of a $1.7 million cumulative-effect adjustment to accumulated earnings as of the beginning of the fiscal year.

(2) Acquisitions

The Company has completed numerous acquisitions since its formation, which have been financed through a combination of debt and equity funding. The operations of each acquisition have been included in the Company’s consolidated results of operations since the respective closing dates of the acquisitions. The Company measures all assets acquired and liabilities assumed at their acquisition-date fair value. The following table summarizes the Company’s acquisitions by region and year:

	2017		2016		2015
West		6		3		3
East		8		5		—
Cement		—		1		1

The purchase price allocation for the 2017 acquisitions has not yet been finalized due to the recent timing of the acquisitions and status of the valuation of property, plant and equipment. The table below summarizes aggregated information regarding the fair values of the assets acquired and liabilities assumed as of the respective acquisition dates. Information related to the 2017 acquisitions is shown on an aggregated basis as the acquisitions were not material individually, or collectively.

	2017		2016
Financial assets (1)	$	31,615	$	22,204
Inventories		8,300		17,215
Property, plant and equipment		160,975		180,321
Intangible assets		161		5,531
Other assets		4,200		6,757
Financial liabilities (1)		(15,501)		(20,248)
Other long-term liabilities		(17,610)		(36,074)
Net assets acquired		172,140		175,706
Goodwill		247,536		176,319
Purchase price		419,676		352,025
Acquisition-related liabilities		(43,452)		(17,034)
Other		(1,294)		1,967
Net cash paid for acquisitions	$	374,930	$	336,958

(1) In the first quarter of 2017, we reclassified $1.2 million of accounts payable overdrafts from financial assets to financial liabilities for the year ended December 31, 2016.

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Acquisition-Related Liabilities—A number of acquisition-related liabilities have been recorded subject to terms in the relevant purchase agreements, including deferred consideration and noncompete payments. Noncompete payments have been accrued where certain former owners of newly acquired companies have entered into standard noncompete arrangements. Subject to terms and conditions stated in these noncompete agreements, payments are generally made over a five-year period. Deferred consideration is purchase price consideration paid in the future as agreed to in the purchase agreement and is not contingent on future events. Deferred consideration is generally scheduled to be paid in years ranging from five to 20 years in annual installments. The remaining payments due under these noncompete and deferred consideration agreements are as follows:

2018	$	13,760
2019		9,187
2020		7,973
2021		7,958
2022		1,803
Thereafter		6,763
Total scheduled payments		47,444
Present value adjustments		(10,117)
Total noncompete obligations and deferred consideration	$	37,327

Accretion on the deferred consideration and noncompete obligations is recorded in interest expense.

(3) Goodwill

As of December 30, 2017, the Company had 12 reporting units with goodwill for which the annual goodwill impairment test was completed. We perform the annual impairment test on the first day of the fourth quarter each year. We initially perform a qualitative analysis. As a result of this analysis, it was determined that it is more likely than not that the fair value of five reporting units were greater than its carrying value. For the remaining reporting units we perform a two-step quantitative analysis. Step 1 of that analysis compares the estimated the fair value of the reporting units using an income approach (i.e., a discounted cash flow technique) and a market approach to the carrying value of the reporting unit. If the estimated fair value exceeds its carrying value, the goodwill of the reporting unit is not considered impaired. If the carrying value of the reporting unit exceeds its fair value, we proceed to the second step to measure the amount of potential impairment loss. Based on this analysis, it was determined that the reporting units’ fair values were greater than their carrying values and no impairment charges were recognized in 2017. The accumulated impairment charges recognized in periods prior to 2015 totaled $68.2 million.

These estimates of a reporting unit’s fair value involve significant management estimates and assumptions, including but not limited to sales prices of similar assets, assumptions related to future profitability, cash flows, and discount rates. These estimates are based upon historical trends, management’s knowledge and experience and overall economic factors, including projections of future earnings potential. Developing discounted future cash flow estimates in applying the income approach required management to evaluate its intermediate to longer-term strategies, including, but not limited to, estimates about revenue growth, operating margins, capital requirements, inflation and working capital management. The development of appropriate rates to discount the estimated future cash flows required the selection of risk premiums, which can materially affect the present value of estimated future cash flows.

The following table presents goodwill by reportable segments and in total:

	West		East		Cement		Total
Balance, January 2, 2016	$	303,926	$	98,308	$	194,163	$	596,397
Acquisitions		29,006		145,109		10,375		184,490
Foreign currency translation adjustments		1,325		—		—		1,325
Balance, December 31, 2016	$	334,257	$	243,417	$	204,538	$	782,212
Acquisitions (1)		187,883		61,957		118		249,958
Foreign currency translation adjustments		4,150		—		—		4,150
Balance, December 30, 2017	$	526,290	$	305,374	$	204,656	$	1,036,320

(1) Reflects goodwill from 2017 acquisitions and working capital adjustments from prior year acquisitions.

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(4) Revenue Recognition

Revenue for product sales are recognized when evidence of an arrangement exists, the fee is fixed or determinable, title passes, which is generally when the product is shipped, and collection is reasonably assured. Product revenue includes sales of aggregates, cement and other materials to customers, net of discounts, allowances or taxes, as applicable.

Revenue from construction contracts are included in service revenue and are recognized under the percentage-of-completion accounting method. The percent complete is measured by the cost incurred to date compared to the estimated total cost of each project. This method is used as management considers expended cost to be the best available measure of progress on these contracts, the majority of which are completed within one year, but may occasionally extend beyond one year. Inherent uncertainties in estimating costs make it at least reasonably possible that the estimates used will change within the near term and over the life of the contracts.

Contract costs include all direct material and labor costs and those indirect costs related to contract performance and completion. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are estimable. General and administrative costs are charged to expense as incurred.

Changes in job performance, job conditions and estimated profitability, including those arising from contract penalty provisions and final contract settlements, may result in revisions to costs and income. Such revisions are recognized in the period in which they are determined. An amount equal to contract costs incurred that are attributable to claims is included in revenue when realization is probable and the amount can be reliably estimated.

Costs and estimated earnings in excess of billings are composed principally of revenue recognized on contracts (on the percentage-of-completion method) for which billings had not been presented to customers because the amount were not billable under the contract terms at the balance sheet date. In accordance with the contract terms, the unbilled receivables at the balance sheet date will be billed in the subsequent year. Billings in excess of costs and estimated earnings represent billings in excess of revenue recognized.

Revenue from the receipt of waste fuels is classified as service revenue and is based on fees charged for the waste disposal, which is recognized when the waste is accepted.

Accounts receivable, net consisted of the following as of December 30, 2017 and December 31, 2016:

	2017		2016
Trade accounts receivable	$	187,528	$	152,845
Retention receivables		14,973		12,117
Receivables from related parties		468		721
Accounts receivable		202,969		165,683
Less: Allowance for doubtful accounts		(4,639)		(3,306)
Accounts receivable, net	$	198,330	$	162,377

Retention receivables are amounts earned by the Company but held by customers until paving and related service contracts and projects are near completion or fully completed. Amounts are generally billed and collected within one year.

(5) Inventories

Inventories consisted of the following as of December 30, 2017 and December 31, 2016:

	2017		2016
Aggregate stockpiles	$	126,791	$	103,073
Finished goods		34,667		35,071
Work in process		7,729		6,440
Raw materials		15,252		13,095
Total	$	184,439	$	157,679

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(6) Property, Plant and Equipment, net and Intangibles, net

Property, plant and equipment, net consisted of the following as of December 30, 2017 and December 31, 2016:

	2017		2016
Land (mineral bearing) and asset retirement costs	$	274,083	$	227,558
Land (non-mineral bearing)		168,501		146,099
Buildings and improvements		170,615		160,638
Plants, machinery and equipment		1,068,007		965,522
Mobile equipment and barges		391,256		307,885
Truck and auto fleet		47,270		32,236
Landfill airspace and improvements		49,480		48,513
Office equipment		33,314		26,096
Construction in progress		44,739		16,459
Property, plant and equipment		2,247,265		1,931,006
Less accumulated depreciation, depletion and amortization		(631,841)		(484,554)
Property, plant and equipment, net	$	1,615,424	$	1,446,452

Depreciation on property, plant and equipment, including assets subject to capital leases, is generally computed on a straight-line basis. Depletion of mineral reserves is computed based on the portion of the reserves used during the period compared to the gross estimated value of proven and probable reserves, which is updated periodically as circumstances dictate. Leasehold improvements are amortized on a straight-line basis over the lesser of the asset’s useful life or the remaining lease term. The estimated useful lives are generally as follows:

Buildings and improvements	10 - 30	years
Plant, machinery and equipment	15 - 20	years
Office equipment	3 - 7	years
Truck and auto fleet	5 - 8	years
Mobile equipment and barges	6 - 8	years
Landfill airspace and improvements	10 - 30	years
Other	4 - 20	years

Depreciation, depletion and amortization expense of property, plant and equipment was $174.4 million, $144.2 million and $111.6 million in the years ended December 30, 2017, December 31, 2016 and January 2, 2016, respectively.

Property, plant and equipment at December 30, 2017 and December 31, 2016 included $51.2 million and $49.8 million, respectively, of capital leases for certain equipment and a building with accumulated amortization of $18.5 million and $10.6 million, respectively. The equipment leases generally have terms of less than five years and the building lease had an original term of 30 years. Approximately $19.3 million and $11.8 million of the future obligations associated with the capital leases are included in accrued expenses as of December 30, 2017 and December 31, 2016, respectively, and the present value of the remaining capital lease payments, $16.4 million and $27.5 million, respectively, is included in other noncurrent liabilities on the consolidated balance sheets. Future minimum rental commitments under long-term capital leases are $20.5 million, $7.6 million, $5.9 million, $1.4 million, and $0.6 million for the years ended 2018, 2019, 2020, 2021 and 2022, respectively.

Assets are assessed for impairment charges when identified for disposition. Projected losses from disposition are recognized in the period in which they become estimable, which may be in advance of the actual disposition. The net gain from asset dispositions recognized in general and administrative expenses in fiscal years 2017, 2016 and 2015 was $7.5 million, $6.8 million and $23.5 million, respectively. No material impairment charges have been recognized on assets held for use in fiscal 2017, 2016 or 2015. The losses are commonly a result of the cash flows expected from selling the asset being less than the expected cash flows that could be generated from holding the asset for use.

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Intangible Assets—The Company’s intangible assets are primarily composed of lease agreements and reserve rights. The assets related to lease agreements reflect the submarket royalty rates paid under agreements, primarily, for extracting aggregates. The values were determined as of the respective acquisition dates by a comparison of market-royalty rates to contract-royalty rates. The reserve rights relate to aggregate reserves to which the Company has the rights of ownership, but do not own the reserves. The intangible assets are amortized on a straight-line basis over the lives of the leases. The following table shows intangible assets by type and in total:

	December 30, 2017						December 31, 2016
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Leases	$	15,888	$	(4,178)	$	11,710	$	15,888	$	(3,382)	$	12,506
Reserve rights		6,234		(1,625)		4,609		8,706		(3,710)		4,996
Trade names		1,000		(758)		242		1,000		(658)		342
Other		409		(137)		272		249		(104)		145
Total intangible assets	$	23,531	$	(6,698)	$	16,833	$	25,843	$	(7,854)	$	17,989

Amortization expense in fiscal 2017, 2016 and 2015 was $1.3 million, $2.6 million and $2.2 million, respectively. The estimated amortization expense for intangible assets for each of the next five years and thereafter is as follows:

2018	$	1,281
2019		1,268
2020		1,185
2021		1,142
2022		1,113
Thereafter		10,844
Total	$	16,833

(7) Accrued Expenses

Accrued expenses consisted of the following as of December 30, 2017 and December 31, 2016:

	2017		2016
Interest	$	24,095	$	22,991
Payroll and benefits		33,915		30,546
Capital lease obligations		19,276		11,766
Insurance		11,455		11,966
Non-income taxes		7,236		5,491
Professional fees		1,717		2,459
Other (1)		18,935		26,386
Total	$	116,629	$	111,605

(1) Consists primarily of subcontractor and working capital settlement accruals and deferred revenue.

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(8) Debt

Debt consisted of the following as of December 30, 2017 and December 31, 2016:

	2017		2016
Term Loan, due 2024:
$635.4 million and $640.3 million, net of $1.6 million and $2.6 million discount at December 30, 2017 and December 31, 2016, respectively	$	633,805	$	637,658
81⁄2% Senior Notes, due 2022		250,000		250,000
61⁄8% Senior Notes, due 2023:
$650.0 million, net of $1.4 million and $1.6 million discount at December 30, 2017 and December 31, 2016, respectively		648,650		648,407
51⁄8% Senior Notes, due 2025		300,000		—
Total		1,832,455		1,536,065
Current portion of long-term debt		4,765		6,500
Long-term debt	$	1,827,690	$	1,529,565

The contractual payments of long-term debt, including current maturities, for the five years subsequent to December 30, 2017, are as follows:

2018	$	4,765
2019		6,354
2020		7,942
2021		6,354
2022		256,354
Thereafter		1,553,606
Total		1,835,375
Less: Original issue net discount		(2,920)
Less: Capitalized loan costs		(16,857)
Total debt	$	1,815,598

Senior Notes—  On June 1, 2017, Summit LLC and Summit Finance (together, the “Issuers”) issued $300.0 million of 51⁄₈%  senior notes due June 1, 2025 (the “2025 Notes”). The 2025 Notes were issued at 100.0% of their par value with proceeds of $295.4 million, net of related fees and expenses. The 2025 Notes were issued under an indenture dated June 1, 2017 (as amended and supplemented, the “2017 Indenture”). The 2017 Indenture contains covenants limiting, among other things, Summit LLC and its restricted subsidiaries’ ability to incur additional indebtedness or issue certain preferred shares, pay dividends, redeem stock or make other distributions, make certain investments, sell or transfer certain assets, create liens, consolidate, merge, sell or otherwise dispose of all or substantially all of its assets, enter inter certain transactions with affiliates, and designate subsidiaries as unrestricted subsidiaries. The 2017 Indenture also contains customary events of default. Interest on the 2025 Notes is payable semi-annually on June 1 and December 1 of each year commencing on December 1, 2017.

In 2016, the Issuers issued $250.0 million of 8.500% senior notes due April 15, 2022 (the “2022 Notes”).  The 2022 Notes were issued at 100.0% of their par value with proceeds of $246.3 million, net of related fees and expenses. The proceeds from the sale of the 2022 Notes were used to fund the acquisition of Boxley Materials Company, replenish cash used for the acquisition of American Materials Company and pay expenses incurred in connection with these acquisitions. The 2022 Notes were issued under an indenture dated March 8, 2016, the terms of which are generally consistent with the 2017 Indenture. Interest on the 2022 Notes is payable semi-annually in arrears on April 15 and October 15 of each year.

In 2015, the Issuers issued $650.0 million of 6.125% senior notes due July 2023 (the “2023 Notes” and collectively with the 2022 Notes and the 2025 Notes, the “Senior Notes”). Of the aggregate $650.0 million of 2023 Notes, $350.0 million were issued at par and $300.0 million were issued at 99.375% of par. The 2023 Notes were issued under an indenture dated July 8, 2015, the terms of which are generally consistent with the 2017 Indenture. Interest on the 2023 Notes is payable semi-annually in arrears on January 15 and July 15 of each year.

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In April, August and November 2015, $288.2 million, $183.0 million and $153.8 million, respectively, in aggregate principal amount of the then outstanding 10 1/₂% senior notes due January 31, 2020 (the “2020 Notes”) were redeemed at a price equal to par plus an applicable premium and the indenture under which the 2020 Notes were issued was satisfied and discharged. As a result of the redemptions, net charges of $56.5 million were recognized for the year ended January 2, 2016. The fees included $66.6 million for the applicable prepayment premium and $11.9 million for the write-off of deferred financing fees, partially offset by $22.0 million of net benefit from the write-off of the original issuance net premium.

As of December 30, 2017 and December 31, 2016, the Company was in compliance with all financial covenants under the applicable indentures.

Senior Secured Credit Facilities— Summit LLC has credit facilities that provide for term loans in an aggregate amount of $650.0 million and revolving credit commitments in an aggregate amount of $235.0 million (the “Senior Secured Credit Facilities”). Under the Senior Secured Credit Facilities, required principal repayments of 0.25% of the refinanced aggregate amount of term debt are due on the last business day of each March, June, September and December commencing with the March 2018 payment. The unpaid principal balance is due in full on the maturity date, which is November 21, 2024.

On January 19, 2017, Summit LLC entered into Amendment No. 1 (“Amendment No. 1”) to the credit agreement governing the Senior Secured Credit Facilities (the “Credit Agreement”), which, among other things, reduced the applicable margin in respect of then outstanding $640.3 million principal amount of term loans thereunder. All other material terms and provisions remain substantially identical to the terms and provisions in place immediately prior to the effectiveness of Amendment No. 1. On November 21, 2017, Summit LLC entered into Amendment No. 2 to the Credit Agreement, which, among other things, extended the maturity date from 2022 to 2024 and reduced the applicable margin in respect of the $635.4 million outstanding principal amount of term loans thereunder.

The revolving credit facility bears interest per annum equal to, at Summit LLC’s option, either (i) a base rate determined by reference to the highest of (a) the federal funds rate plus 0.50%, (b) the prime rate of Bank of America, N.A. and (c) LIBOR plus 1.00%, plus an applicable margin of 2.25% for base rate loans or (ii) a LIBOR rate determined by reference to Reuters prior to the interest period relevant to such borrowing adjusted for certain additional costs plus an applicable margin of 3.25% for LIBOR rate loans.

There were no outstanding borrowings under the revolving credit facility as of December 30, 2017 or December 31, 2016. As of December 30, 2017 we had remaining borrowing capacity of $218.9 million under the revolving credit facility, which is net of $16.1 million of outstanding letters of credit. The outstanding letters of credit are renewed annually and support required bonding on construction projects and the Company’s insurance liabilities.

Summit LLC’s Consolidated First Lien Net Leverage Ratio, as such term is defined in the Credit Agreement, should be no greater than 4.75:1.0 as of each quarter-end. As of December 30, 2017 and December 31, 2016, Summit LLC was in compliance with all financial covenants under the Credit Agreement.

Summit LLC’s wholly-owned domestic subsidiary companies, subject to certain exclusions and exceptions, are named as subsidiary guarantors of the Senior Notes and the Senior Secured Credit Facilities. In addition, Summit LLC has pledged substantially all of its assets as collateral, subject to certain exclusions and exceptions, for the Senior Secured Credit Facilities.

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The following table presents the activity for the deferred financing fees for the years ended December 30, 2017 and December 31, 2016:

	Deferred financing fees
Balance—January 2, 2016	$	15,892
Loan origination fees		5,801
Amortization		(3,403)
Balance—December 31, 2016	$	18,290
Loan origination fees		6,416
Amortization		(3,990)
Write off of deferred financing fees		(1,683)
Balance—December 30, 2017	$	19,033

Other—On January 15, 2015, the Company’s wholly-owned subsidiary in British Columbia, Canada entered into an agreement with HSBC for a (i) $6.0 million Canadian dollar (“CAD”) revolving credit commitment to be used for operating activities that bears interest per annum equal to the bank’s prime rate plus 0.20%, (ii) $0.5 million CAD revolving credit commitment to be used for capital equipment that bears interest per annum at the bank’s prime rate plus 0.90% and (iii) $0.4 million CAD revolving credit commitment to provide guarantees on behalf of that subsidiary. There were no amounts outstanding under this agreement as of December 30, 2017 or December 31, 2016.

(9) Income Taxes

Summit Inc.’s tax provision includes its proportional share of Summit Holdings’ tax attributes. Summit Holdings’ subsidiaries are primarily limited liability companies, but do include certain entities organized as C corporations and a Canadian subsidiary. The tax attributes related to the limited liability companies are passed on to Summit Holdings and then to its partners, including Summit Inc. The tax attributes associated with the C corporation and Canadian subsidiaries are fully reflected in the Company’s consolidated financial statements. For the years ended December 30, 2017, December 31, 2016 and January 2, 2016, income taxes consisted of the following:

	2017			2016		2015
Provision for income taxes:
Current	$	2,530	$	2,835	$	1,605
Deferred		(286,507)		(8,134)		(19,868)
Income tax benefit	$	(283,977)	$	(5,299)	$	(18,263)

The effective tax rate on pre-tax income differs from the U.S. statutory rate of 35% due to the following:

	2017		2016		2015
Income tax expense (benefit) at federal statutory tax rate	$	(55,365)	$	14,290	$	(6,718)
Less: Income tax benefit at federal statutory tax rate for LLC entities		(2,123)		(10,608)		(22,649)
State and local income taxes		(5,209)		2,490		(2,389)
Permanent differences		(4,410)		(5,902)		2,147
Effective tax rate change		216,904		(1,432)		10
Tax receivable agreement expense		104,804		5,228		—
Change in valuation allowance		(500,162)		239,008		261,302
Impact of LP Unit ownership change		(31,790)		(252,456)		(249,400)
Other		(6,626)		4,083		(566)
Income tax benefit	$	(283,977)	$	(5,299)	$	(18,263)

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The following table summarizes the components of the net deferred income tax asset (liability) as December 30, 2017 and December 31, 2016:

	2017		2016
Deferred tax (liabilities) assets:
Net intangible assets	$	316,950	$	591,464
Accelerated depreciation		(147,943)		(184,794)
Net operating loss		94,751		71,379
Investment in limited partnership		(14,467)		(13,633)
Mining reclamation reserve		1,239		1,220
Working capital (e.g., accrued compensation, prepaid assets)		35,237		41,529
Less valuation allowance		(1,675)		(502,839)
Deferred tax assets		284,092		4,326
Less foreign deferred tax liability (included in other noncurrent liabilities)		(3,992)		—
Net deferred tax asset	$	280,100	$	4,326

As of December 30, 2017, $390 million of our deferred tax assets were subject to our TRA, and after amortization and netting other deferred tax liabilities related to intangible assets, are carried at a net book value of $317 million in the above table.

Our income tax benefit was $284.0 million, $5.3 and $18.3 million in the fiscal years ended 2017, 2016 and 2015, respectively. We recorded an income tax benefit in fiscal 2017, primarily related to the release of the valuation allowance as discussed below, partially offset by charge related to the decrease in the federal statutory corporate tax rate. Our effective income tax rate was higher in 2017 as compared to 2016, primarily due to the benefit associated with the release of the valuation allowance discussed below, the accrual of the TRA expense, the statutory rate change referred to below and depletion in excess of U.S. GAAP depletion recognized in 2017. During the year ended 2016, our income tax benefit was $5.3 million. The effective tax rate for Summit Inc. differs from the federal rate primarily due to (1) the change in valuation allowance, (2) changes in statutory tax rates, (3) deductions related to our TRA, (4) tax depletion expense in excess of the expense recorded under U.S. GAAP, (5) the minority interest in the Summit Holdings partnership that is allocated outside of the Company and (6) various other items such as limitations on meals and entertainment, certain stock compensation and other costs.

The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible, as well as consideration of tax-planning strategies we may seek to utilize net operating loss carryforwards that are scheduled to expire in the near future. Due to our limited operating history as of December 31, 2016, during which we incurred only a small amount of pre-tax income over the previous three years, as well as our acquisitive business strategy, after considering both positive and negative evidence, we concluded that it was not more likely than not that we would fully realize those deferred tax assets, and therefore recorded a partial valuation allowance against those deferred tax assets as of December 31, 2016. However, the amount of cumulative income increased significantly during the year ended December 30, 2017, and we expect to generate additional income in 2018 and for the foreseeable future that will allow us to utilize the deferred tax assets. As a result of this significant positive evidence, we determined that the deferred tax assets had become more likely than not of becoming realizable and therefore released the majority of the valuation allowance in the third quarter of 2017. The Company updated the analysis as of December 30, 2017, and adjusted the remaining valuation allowance for certain net operating loss deferred tax assets within the C corporation entities that the Company does not expect to be realized. 

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“TCJA”) was enacted. Among other things, the TCJA, beginning January 1, 2018, reduced the federal statutory rate from 35% to 21% and extended bonus depreciation provisions. In addition, the application of net operating loss carryforwards generated in 2018 and beyond will be limited, 100% asset expensing will be allowed through 2022 and begin to phase out in 2023, and the amount of interest expense we are able deduct may also be limited in future years.  As a result of the enactment of TCJA and other state effective rate changes, we reduced the carrying value of our net deferred tax assets by $216.9 million to reflect the revised federal statutory rate which will be in effect at the time those deferred tax assets are expected to be realized. Further, we evaluated the realizability of our net operating loss carryforwards, and determined a valuation allowance of $1.7 million was appropriate as of December 30, 2017. The TCJA contains many provisions which will be clarified through new regulations expected to be issued during 2018. As of December 30, 2017, we have not completed the accounting for the tax effects of the TCJA; however, we have made reasonable estimates on our existing deferred tax balances, as permitted

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by Staff Accounting Bulletin 118 issued by the SEC on December 22, 2017. In addition, we expect the states in which we operate to consider new statutory provisions related to the enactment of the TCJA during 2018 as well. We will record the impact, if any, of any newly issued regulations, as well as clarifications of the TCJA, as a discrete adjustment to our income tax provision in 2018.  

Our net operating loss carryforward deferred tax assets begin to expire in 2030 and are expected to reverse before expiration. Therefore, we have not given consideration to any potential tax planning strategies as a source of future taxable income to monetize those net operating loss carryforwards. The Company will continue to monitor facts and circumstances, including our analysis of other sources of taxable income, in the reassessment of the likelihood that the tax benefit of our deferred tax assets will be realized.

As of December 30, 2017 and December 31, 2016, after the release of the valuation allowance referred to above, Summit Inc. had a valuation allowance of $1.7 million and $502.8 million, respectively, which relates to certain deferred tax assets in taxable entities where realization is not more likely than not. The remaining valuation allowance as of December 30, 2017 relates to certain net operating loss deferred tax assets in a subsidiary that is not expected to generate future taxable income for the foreseeable future.

As of December 30, 2017, Summit Inc. had federal net operating loss carryforwards of $374.5 million, which expire between 2030 and 2037. As of December 30, 2017, $250 million of our federal net operating losses were under the terms of our TRA. In addition, Summit Inc. has alternative minimum tax credits of $0.2 million as of December 30, 2017, which do not expire. As of December 30, 2017 and December 31, 2016, Summit Inc. had a valuation allowance on net deferred tax assets of $1.7 million and $502.8 million, respectively. The deferred tax assets primarily relate to tax basis in intangible assets that exceeds book basis. The intangible asset tax basis was largely recognized as a result of the LP Unit exchanges in 2017 and 2016.

	2017		2016
Valuation Allowance:
Beginning balance	$	(502,839)	$	(263,825)
Additional basis from exchanged LP Units		(31,790)		(252,456)
Change in valuation allowance		531,952		13,448
Other		1,002		(6)
Ending balance	$	(1,675)	$	(502,839)

We have reclassified $4.3 million of deferred tax assets from other assets to deferred tax assets in the December 31, 2016 consolidated balance sheet to conform to the current year presentation. 

Tax Receivable Agreement— During 2015, the Company entered into a TRA with the holders of LP Units and certain other pre-initial public offering owners (“Investor Entities”) that provides for the payment by Summit Inc. to exchanging holders of LP Units of 85% of the benefits, if any, that Summit Inc. actually realizes (or, under certain circumstances such as an early termination of the TRA, is deemed to realize) as a result of increases in the tax basis of tangible and intangible assets of Summit Holdings and certain other tax benefits related to entering into the TRA, including tax benefits attributable to payments under the TRA. 

When LP Units are exchanged for an equal number of newly-issued shares of Summit Inc.’s Class A common stock, these exchanges result in new deferred tax assets. Using tax rates in effect as of each year end, $12.4 million, $422.5 million and $216.3 million of deferred tax assets were created during the years ended December 30, 2017, December 31, 2016 and January 2, 2016, respectively, when LP Units were exchanged for shares of Class A common stock. As a result of the analysis of the realizability of our deferred tax assets as indicated above, in the third quarter of 2017, we reduced the valuation allowance against our deferred tax assets, including those deferred tax assets subject to the TRA. Further, we determined the TRA liability to be probable of being payable and, as such, we recorded 85% of the deferred tax assets subject to the TRA, or $501.8 million, as TRA liability. We recorded $331.9 million and $59.3 million of TRA liability of which $0.6 million and $1.1 million was classified as accrued expenses as of December 30, 2017 and December 31, 2016, respectively. We have reclassified $58.1 million of other noncurrent liabilities to TRA liability in the December 31, 2016 consolidated balance sheet to conform to the current year presentation

Tax Distributions – The holders of Summit Holdings’ LP Units, including Summit Inc., incur U.S. federal, state and local income taxes on their share of any taxable income of Summit Holdings. The limited partnership agreement of

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Summit Holdings provides for pro rata cash distributions (“tax distributions”) to the holders of the LP Units in an amount generally calculated to provide each holder of LP Units with sufficient cash to cover its tax liability in respect of the LP Units. In general, these tax distributions are computed based on Summit Holdings’ estimated taxable income allocated to each holder of LP Units multiplied by an assumed tax rate equal to the highest effective marginal combined U.S. federal, state and local income tax rate applicable to an individual or corporate resident in New York, New York (or a corporate resident in certain circumstances). For the years ended December 30, 2017 and December 31, 2016, Summit Holdings paid tax distributions totaling $1.8 million and $13.0 million, respectively, to holders of its LP Units, other than Summit Inc.

C Corporation Subsidiaries — The effective income tax rate for the C corporations differ from the statutory federal rate primarily due to (1) tax depletion expense (benefit) in excess of the expense recorded under U.S. GAAP, (2) state income taxes and the effect of graduated tax rates and (3) various other items such as limitations on meals and entertainment and other costs. The effective income tax rate for the Canadian subsidiary is not significantly different from its historical effective tax rate.

As of December 30, 2017, and December 31, 2016, Summit Inc. and its subsidiaries had not recognized any liabilities for uncertain tax positions. No material interest or penalties were recognized in income tax expense during the years ended December 30, 2017, December 31, 2016 or January 2, 2016. Tax years from 2013 to 2017 remain open and subject to audit by federal, Canadian, and state tax authorities.

(10) Earnings Per Share

Basic earnings per share is computed by dividing net earnings by the weighted average common shares outstanding and diluted net earnings is computed by dividing net earnings, adjusted for changes in the earnings allocated to Summit Inc. as a result of the assumed conversion of LP Units, by the weighted-average common shares outstanding assuming dilution.

The following table shows the calculation of basic income per share:  

	2017		2016		2015
Net income attributable to Summit Inc.	$	121,830	$	36,783	$	27,718
Weighted average shares of Class A stock outstanding		108,696,438		70,355,042		40,888,437
Basic income per share	$	1.12	$	0.52	$	0.68
Net income attributable to Summit Inc.	$	121,830	$	36,783	$	27,718
Add: Noncontrolling interest impact of LP Unit conversion		—		—		17,803
Diluted net income attributable to Summit Inc.		121,830		36,783		45,521
Weighted average shares of Class A stock outstanding		108,696,438		70,355,042		40,888,437
Add: weighted average of LP Units		—		—		50,059,648
Add: stock options		308,355		140,142		—
Add: warrants		42,035		16,123		37,714
Add: restricted stock units		308,221		240,633		7,523
Add: performance stock units		135,849		86,568
Weighted average dilutive shares outstanding		109,490,898		70,838,508		90,993,322
Diluted earnings per share	$	1.11	$	0.52	$	0.50

Excluded from the above calculations were the shares noted below as they were antidilutive:

	2017		2016		2015
Antidilutive shares:
LP Units		4,371,705		32,327,907		—
Time-vesting stock options		—		—		2,265,584
Warrants		—		—		—
Time-vesting restricted stock units		—		—		—
Market-based restricted stock units		—		—

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(11) Stockholders’ Equity

Equity Offerings—Summit Inc. commenced operations on March 11, 2015 upon the pricing of the initial public offering of its Class A common stock (“IPO”). Summit Inc. raised $433.0 million, net of underwriting discounts, through the issuance of 25,555,555 shares of Class A common stock at a public offering price of $18.00 per share. Summit Inc. used the offering proceeds to purchase a number of newly-issued Class A Units (“LP Units”) from Summit Holdings equal to the number of shares of Class A common stock issued to the public. Summit Inc. caused Summit Holdings to use these proceeds: (i) to redeem $288.2 million in aggregate principal amount of outstanding 10 1/₂% 2020 Notes; (ii) to purchase 71,428,571 Class B Units of Continental Cement; (iii) to pay a one-time termination fee of $13.8 million in connection with the termination of a transaction and management fee agreement with Blackstone Capital Partners V L.P.; and (iv) for general corporate purposes. The $288.2 million redemption of 2020 Notes was completed at a redemption price equal to par plus an applicable premium of $38.2 million plus $5.2 million of accrued and unpaid interest.

In connection with the IPO, Summit Inc. issued 69,007,297 shares of its Class B common stock to an entity owned by certain pre-IPO owners and the former holders of Class B Units of Continental Cement. The Class B common stock entitled that entity, without regard to the number of shares of Class B common stock held by it, to a number of votes that is equal to the aggregate number of LP Units held by all limited partners of Summit Holdings (excluding Summit Inc.). During 2016, all but 100 shares of Class B common stock were cancelled. The Class B common stock entitles holders thereof, who are also holders of LP Units, with a number of votes that is equal to the number of LP Units they hold. The Class B common stock does not participate in dividends and does not have any liquidation rights.

On August 11, 2015, Summit Inc. raised $555.8 million, net of underwriting discounts, through the issuance of 22,425,000 shares of Class A common stock at a public offering price of $25.75 per share ("the August 2015 follow-on offering"). Summit Inc. used these proceeds to purchase 3,750,000 newly-issued LP Units from Summit Holdings and 18,675,000 LP Units from certain pre-IPO owners, at a purchase price per LP Unit equal to the public offering price per share of Class A common stock, less underwriting discounts and commissions. Summit Holdings used the proceeds from the 3,750,000 newly-issued LP Units to pay the deferred purchase price of $80.0 million related to the July 17, 2015 acquisition of a cement plant and quarry in Davenport, Iowa, and seven cement terminals along the Mississippi River and for general corporate purposes.

On January 10, 2017, Summit Inc. raised $237.6 million, net of underwriting discounts, through the issuance of 10,000,000 shares of Class A common stock at a public offering price of $24.05 per share. Summit Inc. used these proceeds to purchase an equal number of LP Units.

During 2016 and 2017, certain limited partners of Summit Holdings exchanged their LP Units for shares of Class A common stock of Summit Inc. The following table summarizes the changes in our ownership of Summit Holdings:

	Summit Inc. Shares (Class A)	LP Units	Total	Summit Inc. Ownership Percentage
Balance — January 2, 2016 (1)	52,402,692	50,275,825	102,678,517	51.0	%
Issuance of Class A shares	1,038	-	1,038
Exchanges during period	45,124,528	(45,124,528)	-
Other equity transactions	26,020	-	26,020
Balance — December 31, 2016 (1)	97,554,278	5,151,297	102,705,575	95.0	%
January 2017 public offering	10,000,000	-	10,000,000
Exchanges during period	1,461,677	(1,461,677)	-
Other equity transactions	1,334,639	-	1,334,639
Balance — December 30, 2017	110,350,594	3,689,620	114,040,214	96.8	%

(1) The January 2, 2016 balance of Summit Inc. Class A Shares of 52,402,692 is shown to reflect the retroactive application of 1,135,692 and 1,521,056 of Class A common stock issued as a stock dividend on December 28, 2016 and December 22, 2017, respectively.  The December 31, 2016 balance of Summit Inc. Class A Shares of 97,554,278 is shown to reflect the retroactive application of 1,521,056 of Class A common stock issued as a stock dividend on December 22, 2017.

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As a result of reorganization into a holding company structure (the “Reorganization”) consummated in connection with Summit Inc.’s March 2015 initial public offering, Summit Inc. is Summit Holdings’ primary beneficiary and thus consolidates Summit Holdings in its consolidated financial statements with a corresponding noncontrolling interest elimination, which was 3.2% and 5.0% as of December 30, 2017 and December 31, 2016, respectively.

On March 17, 2015, upon the consummation of the IPO and the transactions contemplated by a contribution and purchase agreement entered into with the holders of all of the outstanding Class B Units of Continental Cement, Continental Cement became a wholly-owned indirect subsidiary of Summit Inc. The noncontrolling interests of Continental Cement were acquired for aggregate consideration of $64.1 million, consisting of $35.0 million of cash, 1,029,183 shares of Summit Inc.’s Class A common stock and $15.0 million aggregate principal amount of non-interest bearing notes payable in six annual installments of $2.5 million, beginning on March 17, 2016.

Prior to the March 17, 2015 purchase of the noncontrolling interest, the Company owned 100 Class A Units of Continental Cement, which represented an approximately 70% economic interest and had a preference in liquidation to the Class B Units. Continental Cement issued 100,000,000 Class B Units in May 2010, which remained outstanding until March 17, 2015 and represented an approximately 30% economic interest.

Accumulated other comprehensive income (loss) - The changes in each component of accumulated other comprehensive income (loss) consisted of the following:

							Accumulated
			Foreign currency				other
	Change in		translation		Cash flow hedge		comprehensive
	retirement plans		adjustments		adjustments		income (loss)
Balance — January 2, 2016	$	1,049	$	(3,379)	$	(465)	$	(2,795)
Postretirement liability adjustment		401		—		—		401
Foreign currency translation adjustment		—		273		—		273
Loss on cash flow hedges		—		—		(128)		(128)
Balance — December 31, 2016	$	1,450	$	(3,106)	$	(593)	$	(2,249)
Postretirement curtailment adjustment, net of tax		309		—		—		309
Postretirement liability adjustment, net of tax		605		—		—		605
Foreign currency translation adjustment, net of tax		—		7,743		—		7,743
Income on cash flow hedges, net of tax		—		—		978		978
Balance — December 30, 2017	$	2,364	$	4,637	$	385	$	7,386

(12) Supplemental Cash Flow Information

Supplemental cash flow information for the years ended December 30, 2017, December 31, 2016 and January 2, 2016 was as follows:

	2017		2016		2015
Cash payments:
Interest	$	96,320	$	82,540	$	89,102
Income taxes		1,711		2,645		1,685
Non cash financing activities:
Purchase of noncontrolling interest	$	(716)	$	—	$	(29,102)
Stock Dividend		(45,023)		(26,939)		(16,847)
Exchange of LP Units to shares of Class A common stock		41,126		953,752		—

(13) Stock-Based Compensation

Prior to the IPO and related Reorganization, the capital structure of Summit Holdings consisted of six different classes of limited partnership units, each of which was subject to unique distribution rights. In connection with the IPO and the related Reorganization, the limited partnership agreement of Summit Holdings was amended and restated to,

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among other things, modify its capital structure by creating LP Units (“the Reclassification”).  Immediately after the Reclassification, 69.0 million LP Units were outstanding, of which 575,256 time vesting interests had not yet vested, and 2.4 million of performance vesting interests had not yet vested. As of December 30, 2017, approximately 40,000 of the time-vesting units remained outstanding and unvested.

Further in 2015, warrants to purchase 160,333 shares of Class A common stock were issued to holders of Class C interests, and options to purchase 4.4 million shares of Class A common stock were issued to holders of Class D interests as leverage restoration options. The exercise price of the warrants and the leverage restoration options is $18.00 per share. In connection with the Reclassification of the equity-based awards, we recognized $14.5 million modification charge in general and administrative expenses in the year ended January 2, 2016.

The leverage restoration options were granted under the Summit Materials, Inc. 2015 Omnibus Incentive Plan (the “Plan”), and would vest when both the applicable return multiple is achieved and a four year time-vesting condition is satisfied. Subsequently, in August 2016, the Board of Directors determined that it was in the best interest of the Company to waive the 3.0 times threshold on the remaining unvested performance-based LP Units and leverage restoration options. This waiver was accounted for as a modification of both interests. The fair value of the LP Units was based on the closing stock price of Summit Inc.’s shares of Class A common stock on the modification date and the fair value of the leverage restoration options was determined using the Black-Scholes, Merton model. The Company recognized $37.7 million in general and administrative expenses in the year ended December 31, 2016 related to the vesting of these performance-based awards. In addition, as of December 30, 2017, we have $2.3 million of unamortized deferred compensation related to the LP Units and unvested leverage restoration options, which will be amortized through March 2019.

In connection with the IPO, we granted 240,000 options to purchase Class A common stock under the Plan to certain employees. These options vest subject to continuous employment over a four year service period, and are exercisable at $18.00 per share.

Omnibus Incentive Plan

In 2015, our Board of Directors and stockholders adopted a long-term incentive plan in connection with our IPO under the Plan, which allows for grants of equity-based awards in the form of stock options, stock appreciation rights, restricted stock and restricted stock units, performance units, and other stock-based awards. The Plan authorizes the issuance of up to 13,500,000 shares of Class A common stock in the form of restricted stock units and stock options, of which 8.6 million shares were available for future grants as of December 30, 2017.

Restricted Stock

Restricted Stock with Service-Based Vesting—Under the Plan, the Compensation Committee of the Board of Directors (“the Compensation Committee”) has granted restricted stock to members of the Board of Directors, executive officers and other key employees. These awards contain service conditions associated with continued employment or service. The terms of the restricted stock provide voting and regular dividend rights to holders of the awards. Upon vesting, the restrictions on the restricted stock lapse and the shares are considered issued and outstanding for accounting purposes.

In 2017 and 2016, the Compensation Committee granted restricted stock to executives and key employees under the Plan as part of our annual equity award program, which vest over a three year period, subject to continued employment or service.  From time to time, the Compensation Committee grants restricted stock to newly hired or promoted employees or other employees or consultants who have achieved extraordinary personal performance objectives.

In 2017 and 2016, the Compensation Committee granted 34,928 and 28,140 shares, respectively, to non-employee members of the Board of Directors for their annual service as directors. These restricted stock grants vest over a one year period.

In measuring compensation expense associated with the grant of restricted stock, we use the fair value of the award, determined as the closing stock price for our common stock on the date of grant. Compensation expense is recorded monthly over the vesting period of the award.

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Restricted stock with Service- and Market-Condition-Based Vesting—In 2017 and 2016, the Compensation Committee granted restricted stock to certain members of our executive team as part of their annual compensation package. The restricted stock vest at the end of a three year performance period, based on our total stock return (“TSR”) ranking relative to companies in the S&P Building & Construction Select Industry Index, subject to continued employment.

In measuring compensation expense associated with these grants, we use the fair value of the award at the date of grant, determined using a Monte Carlo simulation model.  Compensation expense is recorded monthly over the vesting period of the awards. The following table summarizes information for the equity awards granted in 2017:

	Options			Restricted Stock Units			Performance Stock Units			Warrants
		Weighted			Weighted			Weighted			Weighted
		average grant-		Number of	average grant-		Number of	average grant-		Number of	average grant-
	Number of	date fair value		restricted	date fair value		performance	date fair value		performance	date fair value
	options	per unit		stock units	per unit		stock units	per unit		stock units	per unit
Beginning balance—December 31, 2016	4,990,443	$	8.95	352,602	$	17.77	130,691	$	18.71	160,333	$	18.00
Granted	377,630		12.13	307,905		24.01	85,530		31.58	—		—
Forfeited	(11,339)		10.91	(6,109)		20.37	(4,766)		18.71	—		—
Exercised	(1,203,121)		8.90	—		—	—		—	(57,555)		18.00
Vested	—		—	(145,812)		17.68	—		—	—		—
Balance—December 30, 2017	4,153,613	$	9.13	508,586	$	20.14	211,455	$	23.69	102,778	$	18.00

The fair value of the time-vesting options granted in 2017, 2016 and 2015 was estimated as of the grant date using the Black-Scholes-Merton model, which requires the input of subjective assumptions, including the expected volatility and the expected term. The fair value of the performance stock units granted in 2017 and 2016 was estimated as of the grant date using Monte Carlo simulations, which requires the input of subjective assumptions, including the expected volatility and the expected term. The following table presents the weighted average assumptions used to estimate the fair value of grants in 2017, 2016 and 2015:

	Options			Performance Stock Units
	2017	2016	2015	2017	2016
Risk-free interest rate	2.06% - 2.31%	1.75% - 1.97%	1.68% - 1.92%	1.45%	0.88%
Dividend yield	None	None	None	None	None
Volatility	47%	48%	50%	39%	37%
Expected term	7 Years	10 Years	7 - 10 years	3 Years	3 Years

The risk-free rate is based on the yield at the date of grant of a U.S. Treasury security with a maturity period approximating the expected term. As Summit Holdings has not historically and does not plan to issue regular dividends, a dividend yield of zero was used. The volatility assumption is based on reported data of a peer group of publically traded companies for which historical information was available adjusted for the Company’s capital structure. The expected term is based on expectations about future exercises and represents the period of time that the units granted are expected to be outstanding.

Compensation expense for time-vesting interests granted is based on the grant date fair value. The Company recognizes compensation costs on a straight-line basis over the service period, which is generally the vesting period of the award. Forfeitures are recognized as they occur. Share-based compensation expense, which is recognized in general and administrative expenses, totaled $21.1 million, $49.9 million and $19.9 million in the years ended December 30, 2017, December 31, 2016 and January 2, 2016, respectively. As of December 30, 2017, unrecognized compensation cost totaled $23.7 million. The weighted average remaining contractual term over which the unrecognized compensation cost is to be recognized is 1.6 years as of year-end 2017.

As of December 30, 2017, the intrinsic value of outstanding options, restricted stock units and performance stock units was $53.9 million, $16.0 million and $6.6 million, respectively, and the remaining contractual term was 7.5 years, 8.8 years and 8.6 years, respectively. The weighted average strike price of stock options outstanding as of December 30,

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2017 was $18.46 per share. The intrinsic value of 1.2 million exercisable stock options as of December 30, 2017 was $16.8 million with a weighted average strike price of $17.92 and a weighted average remaining vesting period of 7.3 years.

(14) Employee Benefit Plans

Defined Contribution Plan—The Company sponsors employee 401(k) savings plans for its employees, including certain union employees. The plans provide for various required and discretionary Company matches of employees’ eligible compensation contributed to the plans. The expense for the defined contribution plans was $9.3 million, $8.6 million and $7.1 million for the years ended December 30, 2017, December 31, 2016 and January 2, 2016, respectively.

Defined Benefit and Other Postretirement Benefits Plans—The Company’s subsidiary, Continental Cement, sponsors two noncontributory defined benefit pension plans for hourly and salaried employees. The salaried plan is closed to new participants and benefits are frozen. The hourly plan is also frozen except that new hourly participants from the Davenport, Iowa location accrue new benefits in the hourly plan. As a result of the collective bargaining unit negotiations in 2017, the hourly defined benefit pension plan was amended to stop future benefit accruals for the Davenport employees effective December 31, 2017. Pension benefits for eligible hourly employees are based on a monthly pension factor for each year of credited service. Pension benefits for eligible salaried employees are generally based on years of service and average eligible compensation.

Continental Cement also sponsors two unfunded healthcare and life insurance benefits plans for certain eligible retired employees. Effective January 1, 2014, the plan covering employees of the Hannibal, Missouri location was amended to eliminate all future retiree health and life coverage for current employees. During 2015, Continental Cement adopted one new unfunded healthcare plan to provide benefits prior to Medicare eligibility for certain hourly employees of the Davenport, Iowa location.

The funded status of the pension and other postretirement benefit plans is recognized in the consolidated balance sheets as the difference between the fair value of plan assets and the benefit obligations. For defined benefit pension plans, the benefit obligation is the projected benefit obligation (“PBO”) and for the healthcare and life insurance benefits plans, the benefit obligation is the accumulated postretirement benefit obligation (“APBO”). The PBO represents the actuarial present value of benefits expected to be paid upon retirement based on estimated future compensation levels. However, since the plans’ participants are not subject to future compensation increases, the plans’ PBO equals the accumulated benefit obligation (“ABO”). The APBO represents the actuarial present value of postretirement benefits attributed to employee services already rendered. The fair value of plan assets represents the current market value of assets held by an irrevocable trust fund for the sole benefit of participants. The measurement of the benefit obligations are based on the Company’s estimates and actuarial valuations. These valuations reflect the terms of the plan and use participant-specific information, such as compensation, age and years of service, as well as certain assumptions that require significant judgment, including estimates of discount rates, expected return on plan assets, rate of compensation increases, interest-crediting rates and mortality rates.

The Company uses December 31 as the measurement date for its defined benefit pension and other postretirement benefit plans.

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Obligations and Funded Status—The following information is as of December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, December 31, 2016 and December 31, 2015:

	2017				2016
	Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.
Change in benefit obligations:
Beginning of period	$	27,608	$	12,770	$	27,914	$	13,458
Service cost		285		184		279		230
Interest cost		998		365		1,049		470
Actuarial loss (gain)		1,182		(338)		22		(682)
Curtailments		(430)
Change in plan provision		—		(2,325)		—		65
Benefits paid		(1,659)		(863)		(1,656)		(771)
End of period	$	27,984	$	9,793	$	27,608	$	12,770
Change in fair value of plan assets:
Beginning of period	$	18,395	$	—	$	18,336	$	—
Actual return on plan assets		1,415				719
Employer contributions		861		863		996		771
Benefits paid		(1,659)		(863)		(1,656)		(771)
End of period	$	19,012	$	—	$	18,395	$	—
Funded status of plans	$	(8,972)	$	(9,793)	$	(9,213)	$	(12,770)
Current liabilities	$	—	$	(702)	$	—	$	(844)
Noncurrent liabilities		(8,972)		(9,091)		(9,213)		(11,926)
Liability recognized	$	(8,972)	$	(9,793)	$	(9,213)	$	(12,770)
Amounts recognized in accumulated other comprehensive income:
Net actuarial loss	$	9,341	$	2,285	$	9,248	$	3,060
Prior service cost		—		(2,413)		—		(1,968)
Total amount recognized	$	9,341	$	(128)	$	9,248	$	1,092

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The amount recognized in accumulated other comprehensive income (“AOCI”) is the actuarial loss (credit) and prior service cost, which has not yet been recognized in periodic benefit cost. At December 30, 2017, the actuarial loss (credit) and prior service cost (credit) expected to be amortized from AOCI to benefit cost in 2018 is $0.3 million and $(0.2) million for the pension and postretirement obligations, respectively.

	2017				2016				2015
	Pension		Healthcare		Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.		benefits		& Life Ins.
Amounts recognized in other comprehensive (income) loss:
Net actuarial gain (loss)	$	1,068	$	(338)	$	688	$	(682)	$	(16)	$	(1,720)
Prior service cost		—		(572)		—		64		—		—
Amortization of prior year service cost		—		168		—		174		—		174
Curtailment benefit		(429)		—		—		—		—		—
Amortization of gain		(547)		(64)		(463)		(207)		(326)		(235)
Adjustment to plan benefits		—		(414)		—		—		—		—
Total amount recognized	$	92	$	(1,220)	$	225	$	(651)	$	(342)	$	(1,781)
Components of net periodic benefit cost:
Service cost	$	285	$	184	$	279	$	230	$	159	$	149
Interest cost		998		365		1,049		470		1,041		447
Amortization of gain		547		64		463		207		326		235
Expected return on plan assets		(1,302)		—		(1,386)		—		(1,385)		—
Amortization of prior service credit		—		(168)		—		(174)		—		(174)
Net periodic benefit cost	$	528	$	445	$	405	$	733	$	141	$	657

Assumptions—Weighted-average assumptions used to determine the benefit obligations as of year-end 2017 and 2016 are:

	2017		2016
		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	3.23% - 3.37%	3.20% - 3.25%	3.61% - 3.81%	3.32% - 3.65%
Expected long-term rate of return on plan assets	7.00%	N/A	7.00%	N/A

Weighted-average assumptions used to determine net periodic benefit cost for years ended December 30, 2017, December 31, 2016 and January 2, 2016:

	2017		2016		2015
		Healthcare		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	3.61% - 3.81%	3.54% - 3.65%	3.74% - 3.97%	3.34% - 3.80%	3.50% - 3.98%	3.39% - 3.52%
Expected long-term rate of return on plan assets	7.00%	N/A	7.30%	N/A	7.30%	N/A

The expected long-term return on plan assets is based upon the Plans’ consideration of historical and forward-looking returns and the Company’s estimation of what a portfolio, with the target allocation described below, will earn over a long-term horizon. The discount rate is derived using the Citigroup Pension Discount Curve.

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Assumed health care cost trend rates were 8.0% grading to 4.5% as of year-end 2017 and 2016. Assumed health care cost trend rates have a significant effect on the amounts reported for the Company’s healthcare and life insurance benefits plans. A one percentage-point change in assumed health care cost trend rates would have the following effects as of year-end 2017 and 2016:

	2017				2016
	Increase		Decrease		Increase		Decrease
Total service cost and interest cost components	$	39	$	(33)	$	55	$	(47)
APBO		857		(769)		1,197		(1,038)

Plan Assets—The defined benefit pension plans’ (the “Plans”) investment strategy is to minimize investment risk while generating acceptable returns. The Plans currently invest a relatively high proportion of the plan assets in fixed income securities, while the remainder is invested in equity securities, cash reserves and precious metals. The equity securities are diversified into funds with growth and value investment strategies. The target allocation for plan assets is as follows: equity securities—30%; fixed income securities—63%; cash reserves—5%; and precious metals—2%. The Plans’ current investment allocations are within the tolerance of the target allocation. The Company had no Level 3 investments as of or for the years ended December 30, 2017 and December 31, 2016.

At year-end 2017 and 2016, the Plans’ assets were invested predominantly in fixed-income securities and publicly traded equities, but may invest in other asset classes in the future subject to the parameters of the investment policy. The Plans’ investments in fixed-income assets include U.S. Treasury and U.S. agency securities and corporate bonds. The Plans’ investments in equity assets include U.S. and international securities and equity funds. The Company estimates the fair value of the Plans’ assets using various valuation techniques and, to the extent available, quoted market prices in active markets or observable market inputs. The descriptions and fair value methodologies for the Plans’ assets are as follows:

Fixed Income Securities—Corporate and government bonds are classified as Level 2 assets, as they are either valued at quoted market prices from observable pricing sources at the reporting date or valued based upon comparable securities with similar yields and credit ratings.

Equity Securities—Equity securities are valued at the closing market price reported on a U.S. exchange where the security is actively traded and are therefore classified as Level 1 assets.

Cash—The carrying amounts of cash approximate fair value due to the short-term maturity.

Precious Metals—Precious metals are valued at the closing market price reported on a U.S. exchange where the security is actively traded and are therefore classified as Level 1 assets.

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The fair value of the Plans’ assets by asset class and fair value hierarchy level as of December 31, 2017 and December 31, 2016 are as follows:

	2017
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	3,620	$	3,068	$	552
Intermediate—corporate		3,872		—		3,872
Short-term—government		497		497		—
Short-term—corporate		1,702		—		1,702
Equity securities:
U.S. Large cap value		1,765		1,765		—
U.S. Large cap growth		588		588		—
U.S. Mid cap value		586		586		—
U.S. Mid cap growth		586		586		—
U.S. Small cap value		571		571		—
U.S. Small cap growth		580		580		—
Managed Futures		392		—		392
International		1,547		677		870
Commodities Broad Basket		801		—		801
Cash		1,522		—		1,522
Precious metals		383		383		—
Total	$	19,012	$	9,301	$	9,711

	2016
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	1,770	$	—	$	1,770
Intermediate—corporate		2,658		—		2,658
Short-term—government		912		—		912
Short-term—corporate		3,613		—		3,613
Equity securities:
U.S. Large cap value		1,181		1,181		—
U.S. Large cap growth		1,103		1,103		—
U.S. Mid cap value		577		577		—
U.S. Mid cap growth		546		546		—
U.S. Small cap value		551		551		—
U.S. Small cap growth		540		540		—
Managed Futures		366		366		—
International		1,099		1,099		—
Emerging Markets		359		359		—
Commodities Broad Basket		707		707		—
Cash		2,094		2,094		—
Precious metals		319		319		—
Total	$	18,395	$	9,442	$	8,953

Cash Flows—The Company expects to contribute approximately $1.4 million in 2018 to both its pension plans and to its healthcare and life insurance benefits plans.

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The estimated benefit payments for each of the next five years and the five-year period thereafter are as follows:

	Pension		Healthcare and Life
	benefits		Insurance Benefits
2018	$	1,835	$	702
2019		1,830		667
2020		1,804		675
2021		1,771		655
2022		1,768		649
2023 - 2027		8,457		3,250

(15) Accrued Mining and Landfill Reclamation

The Company has asset retirement obligations arising from regulatory or contractual requirements to perform certain reclamation activities at the time that certain quarries and landfills are closed, which are primarily included in other noncurrent liabilities on the consolidated balance sheets. The current portion of the liabilities, $3.9 million and $5.1 million as of December 30, 2017 and December 31, 2016, respectively, is included in accrued expenses on the consolidated balance sheets. The total undiscounted anticipated costs for site reclamation as of December 30, 2017 and December 31, 2016 were $67.9 million and $63.6 million, respectively. The liabilities were initially measured at fair value and are subsequently adjusted for accretion expense, payments and changes in the amount or timing of the estimated cash flows. The corresponding asset retirement costs are capitalized as part of the carrying amount of the related long-lived asset and depreciated over the asset’s remaining useful life. The following table presents the activity for the asset retirement obligations for the years ended December 30, 2017 and December 31, 2016:

	2017		2016
Beginning balance	$	23,906	$	20,735
Acquired obligations		2,303		835
Change in cost estimate		(1,764)		3,055
Settlement of reclamation obligations		(1,996)		(2,283)
Accretion expense		1,880		1,564
Ending balance	$	24,329	$	23,906

(16) Commitments and Contingencies

The Company is party to certain legal actions arising from the ordinary course of business activities. Accruals are recorded when the outcome is probable and can be reasonably estimated. While the ultimate results of claims and litigation cannot be predicted with certainty, management expects that the ultimate resolution of all pending or threatened claims and litigation will not have a material effect on the Company’s consolidated results of operations, financial position or liquidity. The Company records legal fees as incurred.

Litigation and Claims—The Company is obligated under an indemnification agreement entered into with the sellers of Harper Contracting, Inc., Harper Sand and Gravel, Inc., Harper Excavating, Inc., Harper Ready Mix Company, Inc. and Harper Investments, Inc. for the sellers’ ownership interests in a joint venture agreement. The Company has the rights to any benefits under the joint venture as well as the assumption of any obligations, but does not own equity interests in the joint venture. The joint venture has incurred significant losses on a highway project in Utah, which have resulted in requests for funding from the joint venture partners and ultimately from the Company. In the third quarter of 2017, the Company settled its remaining obligations under the indemnification agreement for $3.5 million, which was $0.8 million less than amounts previously accrued.

Environmental Remediation and Site Restoration—The Company’s operations are subject to and affected by federal, state, provincial and local laws and regulations relating to the environment, health and safety and other regulatory matters. These operations require environmental operating permits, which are subject to modification, renewal and revocation. The Company regularly monitors and reviews its operations, procedures and policies for compliance with these laws and regulations. Despite these compliance efforts, risk of environmental liability is inherent in the operation of the Company’s business, as it is with other companies engaged in similar businesses and there can be no assurance that environmental liabilities or noncompliance will not have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity.

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Other—The Company is obligated under various firm purchase commitments for certain raw materials and services that are in the ordinary course of business. Management does not expect any significant changes in the market value of these goods and services during the commitment period that would have a material adverse effect on the financial condition, results of operations and cash flows of the Company. The terms of the purchase commitments generally approximate one year.

(17) Leasing Arrangements

Rent expense, which primarily relates to land, plants and equipment, during the years ended December 30, 2017, December 31, 2016 and January 2, 2016 was $21.7 million, $18.6 million and $12.1 million, respectively. The Company has lease agreements associated with quarry facilities under which royalty payments are made. The payments are generally based on tons sold in a particular period; however, certain agreements have minimum annual payments. Royalty expense recorded in cost of revenue during the years ended December 30, 2017, December 31, 2016 and January 2, 2016 was $18.7 million, $15.6 million and $12.6 million, respectively. Minimum contractual commitments for the subsequent five years under long-term operating leases and under royalty agreements are as follows:

	Operating		Royalty
	Leases		Agreements
2018	$	8,627	$	6,450
2019		7,077		6,017
2020		5,826		5,833
2021		4,650		5,550
2022		2,475		5,431

(18) Related Party Transactions

Under the terms of a transaction and management fee agreement between Summit Holdings and Blackstone Management Partners L.L.C. (“BMP”), whose affiliates include controlling stockholders of the Company, BMP provided monitoring, advisory and consulting services to the Company through March 17, 2015. Under the terms of the agreement, BMP was permitted to assign, and had assigned, a portion of the fees to which it was entitled to Silverhawk Summit, L.P. and to certain other equity investors.

In connection with the IPO, the transaction and management fee agreement with BMP was terminated on March 17, 2015 for a termination payment of $13.8 million; $13.4 million was paid to affiliates of BMP and the remaining $0.4 million was paid to affiliates of Silverhawk Summit, L.P. and to certain other equity investors.

Blackstone Advisory Partners L.P., an affiliate of BMP, served as an initial purchaser of $18.8 million of the 2022 Notes issued in March 2016 and $22.5 million and $26.3 million of the 2023 Notes issued in November 2015 and July 2015, respectively, and received compensation in connection therewith. In addition, Blackstone Advisory Partners L.P. served as an underwriter of 1,681,875 shares of Class A common stock issued in connection with the August 2015 follow-on offering and received compensation in connection therewith.

On July 17, 2015, the Company purchased the Davenport Assets from Lafarge North America Inc. for a purchase price of $450.0 million in cash and a cement distribution terminal in Bettendorf, Iowa. At closing, $370.0 million of the purchase price was paid, and the remaining $80.0 million was paid on August 13, 2015. Summit Holdings entered into a commitment letter dated April 16, 2015, with Blackstone Capital Partners V L.P. (“BCP”) for equity financing up to $90.0 million in the form of a preferred equity interest (the “Equity Commitment Financing”), which would have been used to pay the $80.0 million deferred purchase price if other financing was not secured by December 31, 2015. For the Equity Commitment Financing, the Company paid a $1.8 million commitment fee to BCP for the year ended January 2, 2016.

(19) Fair Value of Financial Instruments

Fair Value Measurements—Certain acquisitions made by the Company require the payment of contingent amounts of purchase consideration. These payments are contingent on specified operating results being achieved in periods subsequent to the acquisition and will only be made if earn-out thresholds are achieved. Contingent consideration

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obligations are measured at fair value each reporting period. Any adjustments to fair value are recognized in earnings in the period identified.

The Company has entered into interest rate derivatives on $200.0 million of its term loan borrowings to add stability to interest expense and to manage its exposure to interest rate movements. The interest rate derivative expires in September 2019. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and will be subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The fair value of contingent consideration and derivatives as of December 30, 2017 and December 31, 2016 was:

	2017		2016
Current portion of acquisition-related liabilities and Accrued expenses:
Contingent consideration	$	594	$	9,288
Cash flow hedges		488		942
Acquisition-related liabilities and Other noncurrent liabilities
Contingent consideration	$	34,301	$	2,377
Cash flow hedges		492		1,438

The fair value accounting guidance establishes the following fair value hierarchy that prioritizes the inputs used to measure fair value:

Level  1 —  Unadjusted quoted prices for identical assets or liabilities in active markets.

Level 2 —   Inputs other than Level 1 that are based on observable market data, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, inputs that are observable that are not prices and inputs that are derived from or corroborated by observable markets.

Level 3 —  Valuations developed from unobservable data, reflecting the Company’s own assumptions, which market participants would use in pricing the asset or liability.

The fair value of contingent consideration was based on unobservable, or Level 3, inputs, including projected probability-weighted cash payments and an 11.0% discount rate, which reflects a market discount rate. Changes in fair value may occur as a result of a change in actual or projected cash payments, the probability weightings applied by the Company to projected payments or a change in the discount rate. Significant increases or decreases in any of these inputs in isolation could result in a lower, or higher, fair value measurement. The fair value of the cash flow hedges are based on observable, or Level 2, inputs such as interest rates, bond yields and prices in inactive markets. There were no material adjustments to the fair value of contingent consideration in 2017 or 2016, or to cash flow hedges in 2017 or 2016. In 2016, a $6.1 million increase in the fair value of contingent consideration was recognized as a result of a change in projected cash payments.

Financial Instruments—The Company’s financial instruments include debt and certain acquisition-related liabilities (deferred consideration and noncompete obligations). The carrying value and fair value of these financial instruments as of December 30, 2017 and December 31, 2016 were:

	December 30, 2017				December 31, 2016
	Fair Value		Carrying Value		Fair Value		Carrying Value
Level 2
Long-term debt(1)	$	1,893,239	$	1,832,455	$	1,586,102	$	1,536,065
Level 3
Current portion of deferred consideration and noncompete obligations(2)		13,493		13,493		14,874		14,874
Long term portion of deferred consideration and noncompete obligations(3)		23,834		23,834		30,287		30,287

(1) $4.8 million and $6.5 million included in current portion of debt as of December 30, 2017 and December 31, 2016, respectively.

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(2) Included in current portion of acquisition-related liabilities on the consolidated balance sheets.

(3) Included in acquisition-related liabilities on the consolidated balance sheets.

The fair value of debt was determined based on observable, or Level 2 inputs, such as interest rates, bond yields and quoted prices in inactive markets. The fair values of the deferred consideration and noncompete obligations were determined based on unobservable, or Level 3, inputs, including the cash payment terms in the purchase agreements and a discount rate reflecting the Company’s credit risk. The discount rate used is generally consistent with that used when the obligations were initially recorded.

Securities with a maturity of three months or less are considered cash equivalents and the fair value of these assets approximates their carrying value.

(20) Segment Information

The Company has three operating segments: West; East; and Cement, which are its reporting segments. These segments are consistent with the Company’s management reporting structure. The operating results of each segment are regularly reviewed and evaluated by the Chief Executive Officer, the Company’s Chief Operating Decision Maker (“CODM”). The CODM primarily evaluates the performance of its segments and allocates resources to them based on a segment profit metric that we call Adjusted EBITDA, which is computed as earnings from continuing operations before interest, taxes, depreciation, depletion, amortization, accretion, share-based compensation, and transaction costs, as well as various other non-recurring, non-cash amounts.

The West and East segments have several acquired subsidiaries that are engaged in various activities including quarry mining, aggregate production and contracting. The Cement segment is engaged in the production of Portland cement. Assets employed by each segment include assets directly identified with those operations. Corporate assets consist primarily of cash, property, plant and equipment for corporate operations and other assets not directly identifiable with a reportable business segment. The accounting policies applicable to each segment are consistent with those used in the consolidated financial statements.

The following tables display selected financial data for the Company’s reportable business segments as of and for the years ended December 30, 2017, December 31, 2016 and January 2, 2016:

	2017		2016		2015
Revenue*:
West	$	998,843	$	813,682	$	804,503
East		629,919		531,294		432,310
Cement		303,813		281,087		195,484
Total revenue	$	1,932,575	$	1,626,063	$	1,432,297

*       Intercompany sales are immaterial and the presentation above only reflects sales to external customers.

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	2017		2016		2015
(Loss) income from continuing operations before taxes	$	(158,200)	$	40,827	$	(19,194)
Interest expense		108,549		97,536		84,629
Depreciation, depletion and amortization		177,643		147,736		118,321
Accretion		1,875		1,564		1,402
IPO/ Legacy equity modification costs		—		37,257		28,296
Loss on debt financings		4,815		—		71,631
Tax receivable agreement expense		271,016		14,938		—
Transaction costs		7,733		6,797		9,519
Management fees and expenses		—		(1,379)		1,046
Non-cash compensation		21,140		12,683		5,448
Other		1,206		13,388		(13,570)
Total Adjusted EBITDA	$	435,777	$	371,347	$	287,528
Total Adjusted EBITDA by Segment:
West	$	203,590	$	167,434	$	150,764
East		139,108		126,007		92,303
Cement		127,547		112,991		74,845
Corporate and other		(34,468)		(35,085)		(30,384)
Total Adjusted EBITDA	$	435,777	$	371,347	$	287,528

	2017		2016		2015
Purchases of property, plant and equipment
West	$	83,591	$	77,335	$	39,896
East		68,556		45,492		26,268
Cement		35,803		25,408		17,151
Total reportable segments		187,950		148,235		83,315
Corporate and other		6,196		5,248		5,635
Total purchases of property, plant and equipment	$	194,146	$	153,483	$	88,950

	2017		2016		2015
Depreciation, depletion, amortization and accretion:
West	$	71,314	$	65,345	$	53,727
East		67,252		51,540		38,923
Cement		38,351		30,006		24,758
Total reportable segments		176,917		146,891		117,408
Corporate and other		2,601		2,409		2,315
Total depreciation, depletion, amortization and accretion	$	179,518	$	149,300	$	119,723

	2017		2016		2015
Total assets:
West	$	1,225,463	$	902,763	$	821,479
East		1,035,609		870,613		545,187
Cement		870,652		868,440		843,941
Total reportable segments		3,131,724		2,641,816		2,210,607
Corporate and other		655,609		139,650		185,572
Total	$	3,787,333	$	2,781,466	$	2,396,179

110

	2017		2016		2015
Revenue by product*:
Aggregates	$	313,383	$	264,609	$	219,040
Cement		282,041		250,349		167,696
Ready-mix concrete		492,302		395,917		350,262
Asphalt		285,653		239,419		252,031
Paving and related services		371,763		304,041		295,995
Other		187,433		171,728		147,273
Total revenue	$	1,932,575	$	1,626,063	$	1,432,297

*       Revenue from the liquid asphalt terminals is included in asphalt revenue.

(21) Supplementary Data (Unaudited)

Supplemental financial information (unaudited) by quarter is shown below for the years ended December 30, 2017 and December 31, 2016. The basic and diluted earnings per share amounts for each period shown reflect retroactive application of 1,521,056 and 1,135,962 shares of Class A common stock issued as stock dividends in 2017 and 2016, respectively.

	2017								2016
	4Q		3Q		2Q		1Q		4Q		3Q		2Q		1Q
Net revenue	$	440,610	$	574,387	$	478,368	$	259,044	$	387,389	$	480,210	$	412,636	$	208,039
Operating income (loss)		57,306		113,911		82,444		(32,784)		48,761		88,410		46,948		(29,457)
Net income (loss) (1)		44,510		84,287		52,088		(55,108)		6,049		61,106		21,505		(42,534)
Net income (loss) attributable to Summit Inc. (1)		43,010		81,264		50,000		(52,444)		(290)		44,820		13,371		(21,118)
Basic earnings per share attributable to Summit Inc. (1)	$	0.39	$	0.74	$	0.46	$	(0.49)	$	(0.00)	$	0.59	$	0.21	$	(0.40)
Diluted earnings per share attributable to Summit Inc. (1)		0.38		0.73		0.46		(0.49)		(0.00)		0.59		0.20		(0.40)

(1) The third quarter of 2017 amounts are revised from prior disclosed amounts due to adjustments identified during the fourth quarter of 2017.

111

SUMMIT MATERIALS, LLC AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements and notes thereto for Summit Materials, LLC and subsidiaries are included as Exhibit 99.1 to this Annual Report on Form 10-K and are incorporated by reference herein.

ITEM 9.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

None.

ITEM  9A.CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures

Summit Inc. and Summit LLC maintain disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, that are designed to ensure that information required to be disclosed in Summit Inc.’s reports under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to Summit Inc.’s and Summit LLC’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of achieving the desired control objectives. Summit Inc.’s and Summit LLC’s management, with the participation of its Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of Summit Inc.’s disclosure controls and procedures as of December 30, 2017. Based upon that evaluation, Summit Inc.’s and Summit LLC’s Chief Executive Officer and Chief Financial Officer concluded that, as of December 30, 2017, Summit Inc.’s and Summit LLC’s disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.

112

Management’s Report on Internal Control Over Financial Reporting

The Stockholders of Summit Materials, Inc.:

The management of Summit Materials, Inc. and Summit Materials, LLC is responsible for establishing and maintaining adequate internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control system was designed to provide reasonable assurance to our management and board of directors regarding the preparation and fair presentation of published financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management evaluated the effectiveness of our internal control over financial reporting as of December 30, 2017. In making this evaluation, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control – Integrated Framework (2013). Based on our evaluation we believe that, as of December 30, 2017 our internal control over financial reporting is effective based on those criteria.

KPMG LLP has issued an audit report on the effectiveness of Summit Materials, Inc.’s internal control over financial reporting. The KPMG report immediately follows this report. This annual report does not include an attestation report of Summit Materials, LLC’s independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by Summit Materials, LLC’s registered public accounting firm pursuant to rules of the Securities and Exchange Commission applicable to “non-accelerated filers.”

/s/ Thomas W. Hill	/s/ Brian J. Harris
Chief Executive Officer	Chief Financial Officer

113

Report of Independent Registered Public Accounting Firm

To the stockholders and board of directors
Summit Materials, Inc.:

Opinion on Internal Control Over Financial Reporting

We have audited Summit Materials, Inc. and subsidiaries’ (the “Company”) internal control over financial reporting as of December 30, 2017, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 30, 2017, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. 

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated balance sheets of the Company as of December 30, 2017 and December 31, 2016, the related consolidated statements of operations, comprehensive loss, cash flows and changes in redeemable noncontrolling interest and stockholders’ equity for each of the fiscal years ended December 30, 2017, December 31, 2016 and January 2, 2016 and the related notes (collectively, the consolidated financial statements), and our report dated February 14, 2018 expressed an unqualified opinion on those consolidated financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanyingManagement’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

	/s/ KPMG LLP
Denver, Colorado
February 14, 2018

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Changes in Internal Control

There was no change in Summit Materials, Inc.’s  or Summit Materials, LLC’s internal control over financial reporting that occurred during their last fiscal quarter that has materially affected, or is reasonably likely to materially affect, their internal control over financial reporting.

ITEM  9B.OTHER INFORMATION.

None.

115

PART III  

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required to be set forth herein is included in the sections entitled “Item 1–Election of Directors”, “Corporate Governance—Board Meetings and Committees—Audit Committee”, “Corporate Governance—Code of Conduct” and “Section 16(a) Beneficial Ownership Reporting Compliance” in our definitive proxy statement with respect to the 2018 annual meeting of stockholders (the “2018 Proxy Statement”) is incorporated herein by reference, except that certain information regarding our executive officers called for by Item 401(b) and (e) of Regulation S–K has been included in Part 1 of this Annual Report on Form 10–K.

ITEM 11. EXECUTIVE COMPENSATION

The information set forth under the heading “Executive Compensation” in our 2018 Proxy Statement is incorporated herein by reference.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

The information required to be set forth herein pursuant to Item 403 of Regulation S–K is included in the section entitled “Beneficial Ownership of Shares” in our 2018 Proxy Statement is incorporated herein by reference. The information regarding certain Company equity compensation plans called for by Item 201(d) of Regulation S–K is set forth below.

Securities Authorized for Issuance Under Equity Compensation Plans

	As of December 30, 2017
	Number of securities			Number of securities
	to be issued upon	Weighted-average		remaining available
	exercise of	exercise price of		for future issuance
	outstanding options	outstanding options		under equity
	and rights	and rights		compensation plans
Equity compensation plan approved by stockholders(1)	13,500,000	$	18.83	8,626,346

(1) Relates only to the Omnibus Incentive Plan detailed below.

In connection with our IPO, the board of directors and our then sole voting stockholder adopted the Omnibus Incentive Plan under which 13,500,000 shares of common stock were reserved. The Omnibus Incentive Plan provides for the granting of stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based and performance compensation awards to eligible employees, officers, directors, consultants and advisors of the Company. If an award under the Omnibus Incentive Plan terminates, lapses or is settled without the payment of the full number of shares subject to the award, the undelivered shares may be granted again under the Omnibus Incentive Plan. As of December 30, 2017, there were no equity compensation plans not approved by stockholders of Summit Inc.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.

The information required to be set forth herein is included in the sections entitled “Certain Relationships and Related Person Transactions”in our 2018 Proxy Statement is incorporated herein by reference.

ITEM  14.PRINCIPAL ACCOUNTING FEES AND SERVICES.

The information provided under the heading “Item 2—Ratification of Appointment of KPMG LLP” included in our 2018 Proxy Statement is incorporated herein by reference.

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PART IV  

ITEM  15.EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.

1.Financial statements:

Financial statements for Summit Inc. and Summit LLC are included under Item 8 of this report, which incorporates Exhibit 99.1 with respect to Summit LLC.

2.Financial statement schedules:

Financial statement schedules are omitted because of the absence of conditions under which they are required or because the required information is provided in the financial statements or notes thereto.

3.Exhibits:

2.1	Asset Purchase Agreement, dated as of April 16, 2015, among Continental Cement Company, L.L.C., Lafarge North America Inc., Summit Materials, LLC and Summit Materials Holdings L.P. (incorporated by reference to Exhibit 2.1 of Summit Materials, LLC’s Current Report on Form 8-K filed on April 17, 2015 (File No. 333-187556))
2.2	Asset Purchase Agreement, dated as of April 16, 2015, among Continental Cement Company, L.L.C., Lafarge North America Inc., Summit Materials, LLC and Summit Materials Holdings L.P. (incorporated by reference to Exhibit 2.2 of Summit Materials, LLC’s Current Report on Form 8-K filed on April 17, 2015 (File No. 333-187556)).
3.1	Certificate of Formation of Summit Materials, LLC, as amended (incorporated by reference to Exhibit 3.1 to Summit Materials, LLC’s Registration Statement on Form S-4, filed March 27, 2013 (File No. 333-187556)).
3.2	Amended and Restated Limited Liability Company Agreement of Summit Materials, LLC (incorporated by reference to Exhibit 3.2 to Summit Materials, LLC’s Registration Statement on Form S-4, filed March 27, 2013 (File No. 333-187556)).
3.3	Amended and Restated Certificate of Incorporation of Summit Materials, Inc. (incorporated by reference to Exhibit 3.1 to Summit Materials, Inc.’s Current Report on Form 8-K filed on March 17, 2015 (File No. 001-36873)).
3.4	Amended and Restated By-Laws of Summit Materials, Inc. (incorporated by reference to Exhibit 3.2 to Summit Materials, Inc.’s Current Report on Form 8-K filed on March 17, 2015 (File No. 001-36873)).
4.1	Indenture, dated as of July 8, 2015, among Summit Materials, LLC, Summit Materials Finance Corp., the guarantors named therein and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.1 to Summit Materials, Inc.’s Current Report on Form 8-K filed on July 8, 2015 (File No. 001-36873)).
4.2	First Supplemental Indenture, dated as of July 17, 2015, among Kilgore Partners, L.P., Lewis & Lewis, Inc., Summit Materials, LLC and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.14 to Summit Materials, Inc.’s Registration Statement on Form S-1/A, filed on July 27, 2015 (File No. 333-205561)).
4.3	Second Supplemental Indenture, dated as of October 7, 2015, between LeGrand Johnson Construction Co. and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.4 to Summit Materials, LLC’s Registration Statement on Form S-4 filed on December 11, 2015 (File No. 333-208471)).

117

4.4	Third Supplemental Indenture, dated as of November 19, 2015, by and among Summit Materials, LLC, Summit Materials Finance Corp., the guarantors named therein and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.3 to Summit Materials, LLC’s Current Report on Form 8-K filed on November 19, 2015 (File No. 333-187556)).
4.5	Fourth Supplemental Indenture, dated as of February 3, 2016, between Pelican Asphalt Company, LLC and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.16 to the Registrants’ Annual Report on Form 10-K filed on February 22, 2016 (File No. 001-36873)).
4.6	Fifth Supplemental Indenture, dated as of April 5, 2016, between American Materials Company, LLC, Boxley Materials Company and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.5 to the Registrants’ Quarterly Report on Form 10-Q, filed May 4, 2016 (File No. 001-36873)).
4.7	Sixth Supplemental Indenture, dated as of May 25, 2016, between Sierra Ready Mix Limited Liability Company and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.4 to the Registrants’ Quarterly Report on Form 10-Q, filed August 10, 2016 (File No. 001-36873)).
4.8	Seventh Supplemental Indenture, dated as of September 23, 2016, among H.C. Rustin Corporation, R.D. Johnson Excavating Company, LLC and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.9 to Summit Materials, LLC’s Registration Statement on Form S-4, filed September 30, 2016 (File No. 333-213904)).
4.9	Eighth Supplemental Indenture, dated as of March 30, 2017, among Peak Materials, LLC and Razorback Concrete Company and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.2 to the Registrants’ Quarterly Report on Form 10-Q, filed May 3, 2017 (File No. 001-36873)).
4.10	Ninth Supplemental Indenture, dated as of June 21, 2017, among Glasscock Company, Inc. and Glasscock Logistics Company, LLC and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.5 to the Registrants’ Quarterly Report on Form 10-Q, filed August 4, 2017 (File No. 001-36873)).
4.11*	Tenth Supplemental Indenture, dated as of September 6, 2017, among Ready Mix Concrete of Somerset, LLC and Alan Ritchey Materials Company, L.C. and Wilmington Trust, National Association, as trustee.
4.12*	Eleventh Supplemental Indenture, dated as of November 10, 2017, among Columbia Silica Sand, LLC, Columbia Aggregates, LLC, Northwest Aggregates, Inc. and Northwest Ready Mix, Inc. and Wilmington Trust, National Association, as trustee.
4.13*	Twelfth Supplemental Indenture, dated as of January 26, 2018, among Georgia Stone Products, LLC, Broad River Crushed Stone, LLC, Stockman Quarry, L.L.C., Stockman Properties, L.L.C., McLanahan Crushed Stone, LLC and Ohio Valley Asphalt, LLC and Wilmington Trust, National Association, as trustee.
4.14	Form of 6.125% Senior Note due 2023 (included in Exhibit 4.1)
4.15	Indenture dated as of March 8, 2016, by and among Summit Materials, LLC, Summit Materials Finance Corp., the subsidiary guarantors named on the signature pages thereto and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.1 filed with the Registrants’ Current Report on Form 8-K filed on March 8, 2016 (File No. 001-36873)).
4.16	First Supplemental Indenture, dated as of April 5, 2016, between American Materials Company, LLC, Boxley Materials Company and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.4 to the Registrants’ Quarterly Report on Form 10-Q, filed May 4, 2016 (File No. 001-36873)).

118

4.17	Second Supplemental Indenture, dated as of May 25, 2016, between Sierra Ready Mix Limited Liability Company and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.2 to the Registrants’ Quarterly Report on Form 10-Q, filed August 10, 2016 (File No. 001-36873)).
4.18	Third Supplemental Indenture, dated as of September 23, 2016, among H.C. Rustin Corporation, R.D. Johnson Excavating Company, LLC and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.14 to Summit Materials, LLC’s Registration Statement on Form S-4, filed September 30, 2016 (File No. 333-213904)).
4.19	Fourth Supplemental Indenture, dated as of March 30, 2017, among Peak Materials, LLC and Razorback Concrete Company and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Registrants’ Quarterly Report on Form 10-Q, filed May 3, 2017 (File No. 001-36873)).
4.20	Fifth Supplemental Indenture, dated as of June 21, 2017, among Glasscock Company, Inc. and Glasscock Logistics Company, LLC and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.4 to the Registrants’ Quarterly Report on Form 10-Q, filed August 4, 2017 (File No. 001-36873)).
4.21*	Sixth Supplemental Indenture, dated as of September 6, 2017, among Ready Mix Concrete of Somerset, LLC and Alan Ritchey Materials Company, L.C. and Wilmington Trust, National Association, as trustee.
4.22*	Seventh Supplemental Indenture, dated as of November 10, 2017, among Columbia Silica Sand, LLC, Columbia Aggregates, LLC, Northwest Aggregates, Inc. and Northwest Ready Mix, Inc. and Wilmington Trust, National Association, as trustee.
4.23*	Eighth Supplemental Indenture, dated as of January 26, 2018, among Georgia Stone Products, LLC, Broad River Crushed Stone, LLC, Stockman Quarry, L.L.C., Stockman Properties, L.L.C., McLanahan Crushed Stone, LLC and Ohio Valley Asphalt, LLC and Wilmington Trust, National Association, as trustee.
4.24	Form of 8.500% Senior Note due 2022 (included in Exhibit 4.12).
4.25	Indenture, dated as of June 1, 2017, by and among Summit Materials, LLC, Summit Materials Finance Corp., the subsidiary guarantors named on the signature pages thereto and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.2 to the Registrants’ Current Report on Form 8-K, filed June 1, 2017 (File No. 001-36873)).
4.26	Form of 5.125% Senior Note due 2025 (included in Exhibit 4.18).
4.27	First Supplemental Indenture, dated as of June 21, 2017, among Glasscock Company, Inc. and Glasscock Logistics Company, LLC and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.2 to the Registrants’ Quarterly Report on Form 10-Q, filed August 4, 2017 (File No. 001-36873)).
4.28*	Second Supplemental Indenture, dated as of September 6, 2017, among Ready Mix Concrete of Somerset, LLC and Alan Ritchey Materials Company, L.C. and Wilmington Trust, National Association, as trustee.
4.29*	Third Supplemental Indenture, dated as of November 10, 2017, among Columbia Silica Sand, LLC, Columbia Aggregates, LLC, Northwest Aggregates, Inc. and Northwest Ready Mix, Inc. and Wilmington Trust, National Association, as trustee.
4.30*	Fourth Supplemental Indenture, dated as of January 26, 2018, among Georgia Stone Products, LLC, Broad River Crushed Stone, LLC, Stockman Quarry, L.L.C., Stockman Properties, L.L.C., McLanahan Crushed Stone, LLC and Ohio Valley Asphalt, LLC and Wilmington Trust, National Association, as trustee.

119

10.1	Fourth Amended and Restated Limited Partnership Agreement of Summit Materials Holdings L.P., dated as of March 11, 2015 (incorporated by reference to Exhibit 10.1 to Summit Materials, Inc.’s Current Report on Form 8-K filed on March 17, 2015 (File No. 001-36873))
10.2	Tax Receivable Agreement, dated as of March 11, 2015, by and among Summit Materials, Inc. and each of the other persons from time to time party thereto (incorporated by reference to Exhibit 10.3 to Summit Materials, Inc.’s Current Report on Form 8-K filed on March 17, 2015 (File No. 001-36873)).
10.3	Exchange Agreement, dated as of March 11, 2015, among Summit Materials, Inc., Summit Holdings and the holders of LP Units from time to time party thereto (incorporated by reference to Exhibit 10.2 to Summit Materials, Inc.’s Current Report on Form 8-K filed on March 17, 2015 (File No. 001-36873)).
10.4	Amendment No. 1 to Exchange Agreement, dated as of August 4, 2015, among Summit Materials, Inc., Summit Holdings and the other parties identified on the signature pages thereto (incorporated by reference to Exhibit 10.1 to Summit Materials, LLC’s Quarterly Report on Form 10-Q filed on November 3, 2015 (File No. 333-187556)).
10.5	Registration Rights Agreement, dated as of March 17, 2015, by and among Summit Materials, Inc. and the holders from time to time party thereto (incorporated by reference to Exhibit 10.4 to Summit Materials, Inc.’s Current Report on Form 8-K filed on March 17, 2015 (File No. 001-36873)).
10.6+	Summit Materials, Inc. 2015 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.7 to Summit Materials, Inc.’s Current Report on Form 8-K filed on March 17, 2015 (File No. 001-36873)).
10.7+	Form of Restricted LP Unit Agreement (incorporated by reference to Exhibit 10.7 to Summit Materials, Inc.’s Amendment No. 1 to the Registration Statement on Form S-1, filed January 9, 2015 (File No. 333-201058))
10.8+	Form of Stock Option Agreement (Leverage Restoration Options) (incorporated by reference to Exhibit 10.8 to Summit Materials, Inc.’s Amendment No. 1 to the Registration Statement on Form S-1, filed January 9, 2015 (File No. 333-201058)).
10.9+	Form of Restricted Stock Unit Award Notice and Agreement for Directors (incorporated by reference to Exhibit 10.1 to the Registrants’ Quarterly Report on Form 10-Q, filed May 4, 2016 (File No. 001-36873)).
10.10+	Form of Restricted Stock Unit Award Notice and Agreement for Executive Officers (incorporated by reference to Exhibit 10.2 to the Registrants’ Quarterly Report on Form 10-Q, filed May 4, 2016 (File No. 001-36873)).
10.11+	Form of Nonqualified Stock Option Award Notice and Agreement for Executive Officers (incorporated by reference to Exhibit 10.3 to the Registrants’ Quarterly Report on Form 10-Q, filed May 4, 2016 (File No. 001-36873)).
10.12+	Form of Performance Unit Award Notice and Agreement for Executive Officers (incorporated by reference to Exhibit 10.4 to the Registrants’ Quarterly Report on Form 10-Q, filed May 4, 2016 (File No. 001-36873)).
10.13+	Form of Director and Officer Indemnification Agreement (incorporated by reference to Exhibit 10.9 to Summit Materials, Inc.’s Amendment No. 1 to the Registration Statement on Form S-1, filed January 9, 2015 (File No. 333-201058)).

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10.14	Credit Agreement, dated as of January 30, 2012, by and among Summit Materials, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Citigroup Global Markets Inc., as joint lead arrangers, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., UBS Securities LLC, Barclays Capital, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc., as joint bookrunners, Bank of America, N.A., as administrative agent, collateral agent and swing line lender, Bank of America, N.A., as letter of credit issuer, and Citigroup Global Markets Inc., as syndication agent (incorporated by reference to Exhibit 10.1 of Amendment No. 1 to Summit Materials, LLC’s Registration Statement on Form S-4, filed May 3, 2013 (File No. 333-187556)).
10.15	Amendment No. 1, dated as of February 5, 2013, to the Credit Agreement, dated as of January 30, 2012, by and among Summit Materials, LLC, Bank of America, N.A. as sole lead arranger, and Bank of America, N.A. and Citigroup Global Markets Inc., as joint bookrunners (incorporated by reference to Exhibit 10.2 of Summit Materials, LLC’s Registration Statement on Form S-4, filed March 27, 2013 (File No. 333-187556)).
10.16	Amendment No. 2, dated as of January 16, 2014, to the Credit Agreement, dated as of January 30, 2012, by and among Summit Materials, LLC, the guarantors party thereto, Bank of America, N.A., as administrative agent, collateral agent, L/C issuer and swing line lender and the other parties thereto (incorporated by reference to Exhibit 10.1 to Summit Materials, LLC’s Current Report on Form 8-K, filed January 23, 2014 (File No. 333-187556)).
10.17	Amendment No. 3, dated as of March 11, 2015, to the Credit Agreement, dated as of January 30, 2012, by and among Summit Materials, LLC, the guarantors party thereto, Bank of America, N.A., as administrative agent, collateral agent, L/C issuer and swing line lender and the other parties thereto (incorporated by reference to Exhibit 10.1 filed Summit Materials, LLC’s Current Report on Form 8-K, filed March 17, 2015 (File No. 333-187556)).
10.18	Tranche A Revolving Credit Commitment Conversion Agreement, dated as of February 11, 2013, under the Credit Agreement, dated as of January 30, 2012, among Summit Materials, LLC, the guarantors party thereto, the several banks and other financial institutions or entities from time to time parties to the Credit Agreement, Bank of America, N.A., as administrative agent, collateral agent, L/C issuer and swing line lender and the other parties thereto (incorporated by reference to Exhibit 10.3 of Summit Materials, LLC’s Registration Statement on Form S-4, filed March 27, 2013 (File No. 333-187556)).
10.19	Security Agreement, dated as of January 30, 2012, by and among the grantors identified therein and Bank of America, N.A., as collateral agent (incorporated by reference to Exhibit 10.4 of Summit Materials, LLC’s Registration Statement on Form S-4, filed March 27, 2013 (File No. 333-187556)).
10.20	Restatement Agreement, providing for the Amended and Restated Credit Agreement, dated as of July 17, 2015, among Summit Materials, LLC, Summit Materials Intermediate Holdings, LLC, the subsidiary guarantors party thereto, the lenders party thereto and Bank of America, N.A., as administrative agent, collateral agent, L/C issuer and swing line lender (incorporated by reference to Exhibit 10.1 to Summit Materials, Inc.’s Current Report on Form 8-K filed on July 20, 2015 (File No. 001-36873)).
10.21	Amendment No. 1, dated as of January 19, 2017, to the Amended and Restated Credit Agreement, dated as of July 17, 2015, among Summit Materials, LLC, as the borrower, the guarantors party thereto, the several banks and other financial institutions or entities from time to time party thereto, Bank of America, N.A., as administrative agent, collateral agent, L/C issuer and swing line lender and the other parties thereto (incorporated by reference to Exhibit 10.1 to the Registrants’ Current Report on Form 8-K, filed January 19, 2017 (File No. 001-36873)).
10.22	Amendment No. 2, dated as of November 21, 2017, to the Amended and Restated Credit Agreement, dated as of July 17, 2015, among Summit Materials, LLC, as the borrower, the guarantors party thereto, the several banks and other financial institutions or entities from time to time party thereto, Bank of America, N.A., as administrative agent, collateral agent, L/C issuer and swing line lender and the other parties thereto (incorporated by reference to Exhibit 10.1 to the Registrants’ Current Report on Form 8-K filed on November 21, 2017 (File No. 001-36873)).

121

10.23	Acquisition Agreement, dated as of December 5, 2013, among Alleyton Resource Corporation, Colorado Gulf, LP, Texas CGC, LLC, Barten Shepard Investments, LP, TBGSI Corp., the individuals signatory thereto and Summit Materials, LLC (incorporated by reference to Exhibit 10.6 to Summit Materials, LLC’s Annual Report on Form 10-K, filed March 7, 2014 (File No. 333-187556)).
10.24	Amendment dated January 14, 2014, to Acquisition Agreement, dated as of December 5, 2013, among Alleyton Resource Corporation, Colorado Gulf, LP, Texas CGC, LLC, Barten Shepard Investments, LP, TBGSI Corp., the individuals signatory thereto and Summit Materials, LLC (incorporated by reference to Exhibit 10.7 to Summit Materials, LLC’s Annual Report on Form 10-K, filed March 7, 2014 (File No. 333-187556)).
10.25+	Form of Management Interest Subscription Agreement for executive officers (incorporated by reference to Exhibit 10.8 to Summit Materials, LLC’s Annual Report on Form 10-K, filed March 7, 2014 (File No. 333-187556)).
10.26+	Form of Management Interest Subscription Agreement for directors (incorporated by reference to Exhibit 10.9 to Summit Materials, LLC’s Annual Report on Form 10-K, filed March 7, 2014 (File No. 333-187556)).
10.27+	Employment Agreement, dated July 30, 2009, by and between Summit Materials Holdings L.P. and Thomas Hill (incorporated by reference to Exhibit 10.5 to Summit Materials, LLC’s Registration Statement on Form S-4, filed March 27, 2013 (File No. 333-187556)).
10.28+	Employment Agreement, dated as of December 3, 2013, between Summit Materials Holdings L.P. and Brian J. Harris (incorporated by reference to Exhibit 10.1 to Summit Materials, LLC’s current Quarterly Report on Form 8-K/A, filed December 4, 2013 (File No. 333-187556)).
10.29	Contribution and Purchase Agreement, dated December 18, 2014, between Summit Materials, Inc., Summit Materials Holdings L.P., Summit Materials Holdings GP, Ltd., and Summit Owner Holdco LLC, and Missouri Materials Company, L.L.C., J&J Midwest Group, L.L.C., R. Michael Johnson Family Limited Liability Company, and Thomas A. Beck Family, LLC, and Continental Cement Company, L.L.C (incorporated by reference to Exhibit 10.27 to Summit Materials, Inc.’s Registration Statement on Form S-1/A, filed on January 9, 2015 (File No. 333-201058)).
10.30+	Michael J. Brady offer letter (incorporated by reference to Exhibit 10.19 of Summit Materials, LLC’s Annual Report on Form 10-K, filed February 23, 2015 (File No. 333-187556)).
10.31+	Form of Warrant to Purchase Class A Common Stock (incorporated by reference to Exhibit 10.28 to Summit Materials, Inc.’s Amendment No. 3 to the Registration Statement on Form S-1, filed March 2, 2015 (File No. 333-201058)).
10.32+	Agreement and Release, dated as of December 15, 2017, between Douglas C. Rauh, Summit Materials Holdings L.P., and solely for certain purposes specified therein, Summit Materials, Inc. (incorporated by reference to Exhibit 10.1 to Summit Materials, Inc.’s Current Report on Form 8-K filed on December 21, 2017 (File No. 001-36873).
10.33+	Summit Materials, Inc. Executive Severance Plan (incorporated by reference to Exhibit 10.2 to Summit Materials, Inc.’s Current Report on Form 8-K filed on December 21, 2017 (File No. 001-36873).
10.34+	Offer Letter, dated as of December 19, 2017, between Summit Materials Holdings L.P. and Karl Watson (incorporated by reference to Exhibit 10.1 to Summit Materials, Inc.’s Current Report on Form 8-K filed on January 4, 2018 (File No. 001-36873).
10.35+*	Agreement and Release, dated as of January 17, 2018, between Damian J. Murphy, Summit Materials Holdings L.P., and solely for certain purposes specified therein, Summit Materials, Inc.

122

12.1*	Computation of ratio of earnings to fixed charges
21*	Subsidiaries of Summit Materials, LLC and Summit Materials, Inc.
23.1*	Consent of KPMG, Independent Registered Public Accounting Firm.
31.1*	Summit Materials, Inc.’s Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Summit Materials, Inc.’s Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.3*	Summit Materials, LLC’s Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.4*	Summit Materials, LLC’s Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Summit Materials, Inc.’s Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Summit Materials, Inc.’s Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.3**	Summit Materials, LLC’s Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.4**	Summit Materials, LLC’s Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
95.1*	Mine Safety Disclosures.
99.1*	Summit Materials, LLC’s Consolidated Financial Statements and Notes to Consolidated Financial Statements.
101.1NS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document.
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document.

*        Filed herewith

**      Furnished herewith

+        Indicates management or compensating plan or arrangement

The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should

123

not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.

ITEM  16.FORM 10-K SUMMARY

None.

124

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized.

	SUMMIT MATERIALS, INC.
	SUMMIT MATERIALS, LLC
Date: February 14, 2018	By:	/s/ Thomas W. Hill
		Thomas W. Hill
		Chief Executive Officer
		(Principal Executive Officer)

Pursuant to the requirements of the Securities Act of 1934, this report has been signed by the following persons in the capacities indicated on the 14th day of February 2018.

Signature	Title
/s/     Thomas W. Hill	President and Chief Executive Officer; Director of Summit Materials, Inc. (Principal Executive Officer)
Thomas W. Hill
/s/    Brian J. Harris	Chief Financial Officer (Principal Financial and Accounting Officer)
Brian J. Harris
/s/    Joseph S. Cantie	Director of Summit Materials, Inc.
Joseph S. Cantie
/s/    Ted A. Gardner	Director of Summit Materials, Inc.
Ted A. Gardner
/s/    Howard L. Lance	Director of Summit Materials, Inc.
Howard L. Lance
/s/    John R. Murphy	Director of Summit Materials, Inc.
John R. Murphy
/s/    Neil P. Simpkins	Director of Summit Materials, Inc.
Neil P. Simpkins
/s/    Anne K. Wade	Director of Summit Materials, Inc.
Anne K. Wade
/s/    Steven H. Wunning	Director of Summit Materials, Inc.
Steven H. Wunning

125

EX-4.11

Exhibit 4.11

Execution Version

TENTH Supplemental Indenture

Tenth Supplemental Indenture (this “Supplemental Indenture”), dated as of September 6, 2017, among Ready Mix Concrete of Somerset, LLC, a Kentucky limited liability company, and Alan Ritchey Materials Company, L.C., an Oklahoma limited liability company (each, a “Guaranteeing Subsidiary”), each an indirect subsidiary of Summit Materials, LLC, a Delaware limited liability company (the “Issuer”), and Wilmington Trust, National Association, a national banking association, as trustee (the “Trustee”), Transfer Agent, Registrar and Paying Agent.

W I T N E S S E T H

WHEREAS, the Issuer, Summit Materials Finance Corp., a Delaware corporation (together with the Issuer, the “Issuers”), and the Guarantors have heretofore executed and delivered to the Trustee an Indenture (the “Indenture”), dated as of July 8, 2015, providing for the issuance of 6.125% Senior Notes due 2023 (the “Notes”), as supplemented by that First Supplemental Indenture, dated as of July 17, 2015, as further supplemented by that Second Supplemental Indenture, dated as of October 7, 2015, as further supplemented by that Third Supplemental Indenture, dated as of November 19, 2015, as further supplemented by that Fourth Supplemental Indenture, dated as of February 3, 2016, as further supplemented by that Fifth Supplemental Indenture, dated as of April 5, 2016, as further supplemented by that Sixth Supplemental Indenture, dated as of May 25, 2016, as further supplemented by that Seventh Supplemental Indenture, dated as of September 23, 2016, as further supplemented by that Eight Supplemental Indenture, dated as of March 30, 2017,and as further supplemented by that Ninth Supplemental Indenture, dated as of June 21, 2017;

WHEREAS, the Indenture provides that under certain circumstances a Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture pursuant to which such Guaranteeing Subsidiary shall unconditionally guarantee all of the Issuers’ Obligations under the Notes and the Indenture on the terms and conditions set forth herein and under the Indenture (each, a “Guarantee”); and

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties mutually covenant and agree for the equal and ratable benefit of the Holders as follows:

(1)Capitalized Terms.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

(2)Agreement to Guarantee.  Each Guaranteeing Subsidiary acknowledges that it has received and reviewed a copy of the Indenture and all other documents it deems necessary to review in order to enter into this Supplemental Indenture, and acknowledges and agrees to (i) join and become a party to the Indenture as indicated by its signature below; (ii) be bound by the Indenture, as of the date hereof, as if made by, and with respect to, each signatory hereto; and (iii) perform all obligations and duties required of a Guarantor pursuant to the Indenture.  Each Guaranteeing Subsidiary hereby agrees to provide an unconditional Guarantee on the terms and subject to the conditions set forth in the Indenture, including, but not limited to, Article 10 thereof.

(3)Execution and Delivery.  Each Guaranteeing Subsidiary agrees that its Guarantee shall remain in full force and effect notwithstanding the absence of the endorsement of any notation of such Guarantee on the Notes.

(4)No Recourse Against Others.  No past, present or future director, officer, employee, incorporator, member, partner or stockholder of the Issuers or any Guaranteeing Subsidiary shall have any liability for any obligations of the Issuers or the Guarantors (including any Guaranteeing Subsidiary) under the Notes, any Guarantees, the Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder by accepting Notes waives and releases all such liability.  The waiver and release are part of the consideration for issuance of the Notes.

(5)Governing Law.  THIS SUPPLEMENTAL INDENTURE, AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS SUPPLEMENTAL INDENTURE, WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

(6)Counterparts.  The parties may sign any number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.  This Supplemental Indenture may be executed in multiple counterparts which, when taken together, shall constitute one instrument.  The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmissions shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes.  Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

(7)Effect of Headings.  The Section headings herein are for convenience only and shall not affect the construction hereof.

(8)The Trustee.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by each Guaranteeing Subsidiary.

(9)Benefits Acknowledged.  Each Guaranteeing Subsidiary’s Guarantee is subject to the terms and conditions set forth in the Indenture.  Each Guaranteeing Subsidiary acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Indenture and this Supplemental Indenture and that the guarantee and waivers made by it pursuant to its Guarantee are knowingly made in contemplation of such benefits.

(10)Successors.  All agreements of each Guaranteeing Subsidiary in this Supplemental Indenture shall bind its Successors, except as otherwise provided in this Supplemental Indenture.  All agreements of the Trustee in this Supplemental Indenture shall bind its successors.

[Signatures on following page]

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all as of the date first above written.

READY MIX CONCRETE OF SOMERSET, LLC
By:	/s/ Anne Lee Benedict
Name:	Anne Lee Benedict
Title:	Secretary
Alan Ritchey Materials Company, L.C.
By:	/s/ Anne Lee Benedict
Name:	Anne Lee Benedict
Title:	Secretary
WILMINGTON TRUST, NATIONAL ASSOCIATION,
	as Trustee
By:	/s/ Joseph O’Donnell
	Name:   Joseph O’Donnell
	Title:     Vice President

[Signature Page to Tenth Supplemental Indenture]

EX-4.12

Exhibit 4.12

Execution Version

ELEVENTH Supplemental Indenture

Eleventh Supplemental Indenture (this “Supplemental Indenture”), dated as of November 9, 2017, among Columbia Silica Sand, LLC, a South Carolina limited liability company, Columbia Aggregates, LLC, a South Carolina limited liability company, Northwest Aggregates, Inc., a Colorado corporation, and Northwest Ready Mix, Inc., a Colorado corporation (each, a “Guaranteeing Subsidiary”), each an indirect subsidiary of Summit Materials, LLC, a Delaware limited liability company (the “Issuer”), and Wilmington Trust, National Association, a national banking association, as trustee (the “Trustee”), Transfer Agent, Registrar and Paying Agent.

W I T N E S S E T H

WHEREAS, the Issuer, Summit Materials Finance Corp., a Delaware corporation (together with the Issuer, the “Issuers”), and the Guarantors have heretofore executed and delivered to the Trustee an Indenture (the “Indenture”), dated as of July 8, 2015, providing for the issuance of 6.125% Senior Notes due 2023 (the “Notes”), as supplemented by that First Supplemental Indenture, dated as of July 17, 2015, as further supplemented by that Second Supplemental Indenture, dated as of October 7, 2015, as further supplemented by that Third Supplemental Indenture, dated as of November 19, 2015, as further supplemented by that Fourth Supplemental Indenture, dated as of February 3, 2016, as further supplemented by that Fifth Supplemental Indenture, dated as of April 5, 2016, as further supplemented by that Sixth Supplemental Indenture, dated as of May 25, 2016, as further supplemented by that Seventh Supplemental Indenture, dated as of September 23, 2016, as further supplemented by that Eight Supplemental Indenture, dated as of March 30, 2017,as further supplemented by that Ninth Supplemental Indenture, dated as of June 21, 2017,and as further supplemented by that Tenth Supplemental Indenture, dated as of September 6, 2017;

WHEREAS, the Indenture provides that under certain circumstances a Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture pursuant to which such Guaranteeing Subsidiary shall unconditionally guarantee all of the Issuers’ Obligations under the Notes and the Indenture on the terms and conditions set forth herein and under the Indenture (each, a “Guarantee”); and

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties mutually covenant and agree for the equal and ratable benefit of the Holders as follows:

(1)Capitalized Terms.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

(2)Agreement to Guarantee.  Each Guaranteeing Subsidiary acknowledges that it has received and reviewed a copy of the Indenture and all other documents it deems necessary to review in order to enter into this Supplemental Indenture, and acknowledges and agrees to (i) join and become a party to the Indenture as indicated by its signature below; (ii) be bound by the Indenture, as of the date hereof, as if made by, and with respect to, each signatory hereto; and (iii) perform all obligations and duties required of a Guarantor pursuant to the Indenture.  Each Guaranteeing Subsidiary hereby agrees to provide an unconditional Guarantee on the terms and subject to the conditions set forth in the Indenture, including, but not limited to, Article 10 thereof.

(3)Execution and Delivery.  Each Guaranteeing Subsidiary agrees that its Guarantee shall remain in full force and effect notwithstanding the absence of the endorsement of any notation of such Guarantee on the Notes.

(4)No Recourse Against Others.  No past, present or future director, officer, employee, incorporator, member, partner or stockholder of the Issuers or any Guaranteeing Subsidiary shall have any liability for any obligations of the Issuers or the Guarantors (including any Guaranteeing Subsidiary) under the Notes, any Guarantees, the Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder by accepting Notes waives and releases all such liability.  The waiver and release are part of the consideration for issuance of the Notes.

(5)Governing Law.  THIS SUPPLEMENTAL INDENTURE, AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS SUPPLEMENTAL INDENTURE, WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

(6)Counterparts.  The parties may sign any number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.  This Supplemental Indenture may be executed in multiple counterparts which, when taken together, shall constitute one instrument.  The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmissions shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes.  Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

(7)Effect of Headings.  The Section headings herein are for convenience only and shall not affect the construction hereof.

(8)The Trustee.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by each Guaranteeing Subsidiary.

(9)Benefits Acknowledged.  Each Guaranteeing Subsidiary’s Guarantee is subject to the terms and conditions set forth in the Indenture.  Each Guaranteeing Subsidiary acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Indenture and this Supplemental Indenture and that the guarantee and waivers made by it pursuant to its Guarantee are knowingly made in contemplation of such benefits.

(10)Successors.  All agreements of each Guaranteeing Subsidiary in this Supplemental Indenture shall bind its Successors, except as otherwise provided in this Supplemental Indenture.  All agreements of the Trustee in this Supplemental Indenture shall bind its successors.

[Signatures on following page]

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all as of the date first above written.

COLUMBIA SILICA SAND, LLC
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
COLUMBIA AGGREGATES, LLC
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
NORTHWEST AGGREGATES, INC.
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
NORTHWEST READY MIX, INC.
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
WILMINGTON TRUST, NATIONAL ASSOCIATION,
	as Trustee
By:	/s/ Joseph P. O’Donnell
	Name:   Joseph P. O’Donnell
	Title:     Vice President

[Signature Page to Eleventh Supplemental Indenture]

EX-4.13

Exhibit 4.13

Execution Version

TWELFTH Supplemental Indenture

Twelfth Supplemental Indenture (this “Supplemental Indenture”), dated as of January 26, 2018, among Georgia Stone Products, LLC, a Georgia limited liability company, Broad River Crushed Stone, LLC, a Georgia limited liability company, Stockman Quarry, L.L.C., a Missouri limited liability company, Stockman Properties, L.L.C., a Missouri limited liability company, McLanahan Crushed Stone, LLC, a Georgia limited liability company, and Ohio Valley Asphalt, LLC, a Kentucky limited liability company (each, a “Guaranteeing Subsidiary”), each an indirect subsidiary of Summit Materials, LLC, a Delaware limited liability company (the “Issuer”), and Wilmington Trust, National Association, a national banking association, as trustee (the “Trustee”), Transfer Agent, Registrar and Paying Agent.

W I T N E S S E T H

WHEREAS, the Issuer, Summit Materials Finance Corp., a Delaware corporation (together with the Issuer, the “Issuers”), and the Guarantors have heretofore executed and delivered to the Trustee an Indenture (the “Indenture”), dated as of July 8, 2015, providing for the issuance of 6.125% Senior Notes due 2023 (the “Notes”), as supplemented by that First Supplemental Indenture, dated as of July 17, 2015, as further supplemented by that Second Supplemental Indenture, dated as of October 7, 2015, as further supplemented by that Third Supplemental Indenture, dated as of November 19, 2015, as further supplemented by that Fourth Supplemental Indenture, dated as of February 3, 2016, as further supplemented by that Fifth Supplemental Indenture, dated as of April 5, 2016, as further supplemented by that Sixth Supplemental Indenture, dated as of May 25, 2016, as further supplemented by that Seventh Supplemental Indenture, dated as of September 23, 2016, as further supplemented by that Eight Supplemental Indenture, dated as of March 30, 2017,as further supplemented by that Ninth Supplemental Indenture, dated as of June 21, 2017,as further supplemented by that Tenth Supplemental Indenture, dated as of September 6, 2017, and as further supplemented by that Eleventh Supplemental Indenture, dated as of November 10, 2017;

WHEREAS, the Indenture provides that under certain circumstances a Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture pursuant to which such Guaranteeing Subsidiary shall unconditionally guarantee all of the Issuers’ Obligations under the Notes and the Indenture on the terms and conditions set forth herein and under the Indenture (each, a “Guarantee”); and

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties mutually covenant and agree for the equal and ratable benefit of the Holders as follows:

(1)Capitalized Terms.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

(2)Agreement to Guarantee.  Each Guaranteeing Subsidiary acknowledges that it has received and reviewed a copy of the Indenture and all other documents it deems necessary to review in order to enter into this Supplemental Indenture, and acknowledges and agrees to (i) join and become a party to the Indenture as indicated by its signature below; (ii) be bound by the Indenture, as of the date hereof, as if made by, and with respect to, each signatory hereto; and (iii) perform all obligations and duties required of a Guarantor pursuant to the Indenture.  Each Guaranteeing Subsidiary hereby agrees to

provide an unconditional Guarantee on the terms and subject to the conditions set forth in the Indenture, including, but not limited to, Article 10 thereof.

(3)Execution and Delivery.  Each Guaranteeing Subsidiary agrees that its Guarantee shall remain in full force and effect notwithstanding the absence of the endorsement of any notation of such Guarantee on the Notes.

(4)No Recourse Against Others.  No past, present or future director, officer, employee, incorporator, member, partner or stockholder of the Issuers or any Guaranteeing Subsidiary shall have any liability for any obligations of the Issuers or the Guarantors (including any Guaranteeing Subsidiary) under the Notes, any Guarantees, the Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder by accepting Notes waives and releases all such liability.  The waiver and release are part of the consideration for issuance of the Notes.

(5)Governing Law.  THIS SUPPLEMENTAL INDENTURE, AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS SUPPLEMENTAL INDENTURE, WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

(6)Counterparts.  The parties may sign any number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.  This Supplemental Indenture may be executed in multiple counterparts which, when taken together, shall constitute one instrument.  The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmissions shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes.  Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

(7)Effect of Headings.  The Section headings herein are for convenience only and shall not affect the construction hereof.

(8)The Trustee.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by each Guaranteeing Subsidiary.

(9)Benefits Acknowledged.  Each Guaranteeing Subsidiary’s Guarantee is subject to the terms and conditions set forth in the Indenture.  Each Guaranteeing Subsidiary acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Indenture and this Supplemental Indenture and that the guarantee and waivers made by it pursuant to its Guarantee are knowingly made in contemplation of such benefits.

(10)Successors.  All agreements of each Guaranteeing Subsidiary in this Supplemental Indenture shall bind its Successors, except as otherwise provided in this Supplemental Indenture.  All agreements of the Trustee in this Supplemental Indenture shall bind its successors.

[Signatures on following page]

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all as of the date first above written.

GEORGIA STONE PRODUCTS, LLC
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
BROAD RIVER CRUSHED STONE, LLC
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
STOCKMAN QUARRY L.L.C.
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
STOCKMAN PROPERTIES, L.L.C.
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
MCLANAHAN CRUSHED STONE, LLC
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
OHIO VALLEY ASPHALT, LLC
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary

WILMINGTON TRUST, NATIONAL ASSOCIATION,
	as Trustee
By:	/s/ Joseph O’Donnell
	Name:   Joseph O’Donnell
	Title:     Vice President

EX-4.21

Exhibit 4.21

Execution Version

SIXTH SUPPLEMENTAL INDENTURE

Sixth Supplemental Indenture (this “Supplemental Indenture”), dated as of September 6, 2017, among Ready Mix Concrete of Somerset, LLC, a Kentucky limited liability company, and Alan Ritchey Materials Company, L.C., an Oklahoma limited liability company (each, a “Guaranteeing Subsidiary”), each an indirect subsidiary of Summit Materials, LLC, a Delaware limited liability company (the “Issuer”), and Wilmington Trust, National Association, a national banking association, as trustee (the “Trustee”), Transfer Agent, Registrar and Paying Agent.

W I T N E S S E T H

WHEREAS, the Issuer, Summit Materials Finance Corp., a Delaware corporation (together with the Issuer, the “Issuers”), and the Guarantors have heretofore executed and delivered to the Trustee an Indenture (the “Indenture”), dated as of March 8, 2016, providing for the issuance of $250,000,000 aggregate principal amount of 8.500% Senior Notes due 2022 (the “Initial Notes”), as supplemented by that First Supplemental Indenture, dated as of April 5, 2016, as further supplemented by that Second Supplemental Indenture, dated as of May 25, 2016, as further supplemented by that Third Supplemental Indenture, dated as of September 23, 2016, as further supplemented by that Fourth Supplemental Indenture, dated as of March 30, 2017, and as further supplemented by that Fifth Supplemental Indenture, dated as of June 21, 2017;

WHEREAS, the Indenture provides that under certain circumstances a Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture pursuant to which such Guaranteeing Subsidiary shall unconditionally guarantee all of the Issuers’ Obligations under the Notes and the Indenture on the terms and conditions set forth herein and under the Indenture (each, a “Guarantee”); and

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties mutually covenant and agree for the equal and ratable benefit of the Holders as follows:

(1)Capitalized Terms.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

(2)Agreement to Guarantee.  Each Guaranteeing Subsidiary acknowledges that it has received and reviewed a copy of the Indenture and all other documents it deems necessary to review in order to enter into this Supplemental Indenture, and acknowledges and agrees to (i) join and become a party to the Indenture as indicated by its signature below; (ii) be bound by the Indenture, as of the date hereof, as if made by, and with respect to, each signatory hereto; and (iii) perform all obligations and duties required of a Guarantor pursuant to the Indenture.  Each Guaranteeing Subsidiary hereby agrees to provide an unconditional Guarantee on the terms and subject to the conditions set forth in the Indenture, including, but not limited to, Article 10 thereof.

(3)Execution and Delivery.  Each Guaranteeing Subsidiary agrees that its Guarantee shall remain in full force and effect notwithstanding the absence of the endorsement of any notation of such Guarantee on the Notes.

(4)No Recourse Against Others.  No past, present or future director, officer, employee, incorporator, member, partner or stockholder of the Issuers or any Guaranteeing Subsidiary shall have any liability for any obligations of the Issuers or the Guarantors (including any Guaranteeing Subsidiary) under the Notes, any Guarantees, the Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder by accepting Notes waives and releases all such liability.  The waiver and release are part of the consideration for issuance of the Notes.

(5)Governing Law.  THIS SUPPLEMENTAL INDENTURE, AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS SUPPLEMENTAL INDENTURE, WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

(6)Counterparts.  The parties may sign any number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.  This Supplemental Indenture may be executed in multiple counterparts which, when taken together, shall constitute one instrument.  The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmissions shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes.  Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

(7)Effect of Headings.  The Section headings herein are for convenience only and shall not affect the construction hereof.

(8)The Trustee.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by each Guaranteeing Subsidiary.

(9)Benefits Acknowledged.  Each Guaranteeing Subsidiary’s Guarantee is subject to the terms and conditions set forth in the Indenture.  Each Guaranteeing Subsidiary acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Indenture and this Supplemental Indenture and that the guarantee and waivers made by it pursuant to its Guarantee are knowingly made in contemplation of such benefits.

(10)Successors.  All agreements of each Guaranteeing Subsidiary in this Supplemental Indenture shall bind its Successors, except as otherwise provided in this Supplemental Indenture.  All agreements of the Trustee in this Supplemental Indenture shall bind its successors.

[Signatures on following page]

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all as of the date first above written.

READY MIX CONCRETE OF SOMERSET, LLC
By:	/s/ Anne Lee Benedict
Name:	Anne Lee Benedict
Title:	Secretary
Alan Ritchey Materials Company, L.C.
By:	/s/ Anne Lee Benedict
Name:	Anne Lee Benedict
Title:	Secretary
WILMINGTON TRUST, NATIONAL ASSOCIATION,
	as Trustee
By:	/s/ Joseph O’Donnell
	Name:   Joseph O’Donnell
	Title:     Vice President

[Signature Page to Sixth Supplemental Indenture]

EX-4.22

Exhibit 4.22

Execution Version

SEVENTH SUPPLEMENTAL INDENTURE

Seventh Supplemental Indenture (this “Supplemental Indenture”), dated as of November 10, 2017, among Columbia Silica Sand, LLC, a South Carolina limited liability company, Columbia Aggregates, LLC, a South Carolina limited liability company, Northwest Aggregates, Inc., a Colorado corporation, and Northwest Ready Mix, Inc., a Colorado corporation (each, a “Guaranteeing Subsidiary”), each an indirect subsidiary of Summit Materials, LLC, a Delaware limited liability company (the “Issuer”), and Wilmington Trust, National Association, a national banking association, as trustee (the “Trustee”), Transfer Agent, Registrar and Paying Agent.

W I T N E S S E T H

WHEREAS, the Issuer, Summit Materials Finance Corp., a Delaware corporation (together with the Issuer, the “Issuers”), and the Guarantors have heretofore executed and delivered to the Trustee an Indenture (the “Indenture”), dated as of March 8, 2016, providing for the issuance of $250,000,000 aggregate principal amount of 8.500% Senior Notes due 2022 (the “Initial Notes”), as supplemented by that First Supplemental Indenture, dated as of April 5, 2016, as further supplemented by that Second Supplemental Indenture, dated as of May 25, 2016, as further supplemented by that Third Supplemental Indenture, dated as of September 23, 2016, as further supplemented by that Fourth Supplemental Indenture, dated as of March 30, 2017, as further supplemented by that Fifth Supplemental Indenture, dated as of June 21, 2017, and as further supplemented by that Sixth Supplemental Indenture, dated as of September 6, 2017;

WHEREAS, the Indenture provides that under certain circumstances a Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture pursuant to which such Guaranteeing Subsidiary shall unconditionally guarantee all of the Issuers’ Obligations under the Notes and the Indenture on the terms and conditions set forth herein and under the Indenture (each, a “Guarantee”); and

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties mutually covenant and agree for the equal and ratable benefit of the Holders as follows:

(1)Capitalized Terms.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

(2)Agreement to Guarantee.  Each Guaranteeing Subsidiary acknowledges that it has received and reviewed a copy of the Indenture and all other documents it deems necessary to review in order to enter into this Supplemental Indenture, and acknowledges and agrees to (i) join and become a party to the Indenture as indicated by its signature below; (ii) be bound by the Indenture, as of the date hereof, as if made by, and with respect to, each signatory hereto; and (iii) perform all obligations and duties required of a Guarantor pursuant to the Indenture.  Each Guaranteeing Subsidiary hereby agrees to provide an unconditional Guarantee on the terms and subject to the conditions set forth in the Indenture, including, but not limited to, Article 10 thereof.

(3)Execution and Delivery.  Each Guaranteeing Subsidiary agrees that its Guarantee shall remain in full force and effect notwithstanding the absence of the endorsement of any notation of such Guarantee on the Notes.

(4)No Recourse Against Others.  No past, present or future director, officer, employee, incorporator, member, partner or stockholder of the Issuers or any Guaranteeing Subsidiary shall have any liability for any obligations of the Issuers or the Guarantors (including any Guaranteeing Subsidiary) under the Notes, any Guarantees, the Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder by accepting Notes waives and releases all such liability.  The waiver and release are part of the consideration for issuance of the Notes.

(5)Governing Law.  THIS SUPPLEMENTAL INDENTURE, AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS SUPPLEMENTAL INDENTURE, WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

(6)Counterparts.  The parties may sign any number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.  This Supplemental Indenture may be executed in multiple counterparts which, when taken together, shall constitute one instrument.  The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmissions shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes.  Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

(7)Effect of Headings.  The Section headings herein are for convenience only and shall not affect the construction hereof.

(8)The Trustee.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by each Guaranteeing Subsidiary.

(9)Benefits Acknowledged.  Each Guaranteeing Subsidiary’s Guarantee is subject to the terms and conditions set forth in the Indenture.  Each Guaranteeing Subsidiary acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Indenture and this Supplemental Indenture and that the guarantee and waivers made by it pursuant to its Guarantee are knowingly made in contemplation of such benefits.

(10)Successors.  All agreements of each Guaranteeing Subsidiary in this Supplemental Indenture shall bind its Successors, except as otherwise provided in this Supplemental Indenture.  All agreements of the Trustee in this Supplemental Indenture shall bind its successors.

[Signatures on following page]

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all as of the date first above written.

COLUMBIA SILICA SAND, LLC
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
COLUMBIA AGGREGATES, LLC
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
NORTHWEST AGGREGATES, INC.
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
NORTHWEST READY MIX, INC.
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
WILMINGTON TRUST, NATIONAL ASSOCIATION,
	as Trustee
By:	/s/ Joseph P. O’Donnell
	Name:   Joseph P. O’Donnell
	Title:     Vice President

EX-4.23

Exhibit 4.23

Execution Version

EIGHTH SUPPLEMENTAL INDENTURE

Eighth Supplemental Indenture (this “Supplemental Indenture”), dated as of January 26, 2018, among Georgia Stone Products, LLC, a Georgia limited liability company, Broad River Crushed Stone, LLC, a Georgia limited liability company, Stockman Quarry, L.L.C., a Missouri limited liability company, Stockman Properties, L.L.C., a Missouri limited liability company, McLanahan Crushed Stone, LLC, a Georgia limited liability company, and Ohio Valley Asphalt, LLC, a Kentucky limited liability company (each, a “Guaranteeing Subsidiary”), each an indirect subsidiary of Summit Materials, LLC, a Delaware limited liability company (the “Issuer”), and Wilmington Trust, National Association, a national banking association, as trustee (the “Trustee”), Transfer Agent, Registrar and Paying Agent.

W I T N E S S E T H

WHEREAS, the Issuer, Summit Materials Finance Corp., a Delaware corporation (together with the Issuer, the “Issuers”), and the Guarantors have heretofore executed and delivered to the Trustee an Indenture (the “Indenture”), dated as of March 8, 2016, providing for the issuance of $250,000,000 aggregate principal amount of 8.500% Senior Notes due 2022 (the “Initial Notes”), as supplemented by that First Supplemental Indenture, dated as of April 5, 2016, as further supplemented by that Second Supplemental Indenture, dated as of May 25, 2016, as further supplemented by that Third Supplemental Indenture, dated as of September 23, 2016, as further supplemented by that Fourth Supplemental Indenture, dated as of March 30, 2017, as further supplemented by that Fifth Supplemental Indenture, dated as of June 21, 2017, as further supplemented by that Sixth Supplemental Indenture, dated as of September 6, 2017, and as further supplemented by that Seventh Supplemental Indenture, dated as of November 10, 2017;

WHEREAS, the Indenture provides that under certain circumstances a Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture pursuant to which such Guaranteeing Subsidiary shall unconditionally guarantee all of the Issuers’ Obligations under the Notes and the Indenture on the terms and conditions set forth herein and under the Indenture (each, a “Guarantee”); and

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties mutually covenant and agree for the equal and ratable benefit of the Holders as follows:

(1)Capitalized Terms.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

(2)Agreement to Guarantee.  Each Guaranteeing Subsidiary acknowledges that it has received and reviewed a copy of the Indenture and all other documents it deems necessary to review in order to enter into this Supplemental Indenture, and acknowledges and agrees to (i) join and become a party to the Indenture as indicated by its signature below; (ii) be bound by the Indenture, as of the date hereof, as if made by, and with respect to, each signatory hereto; and (iii) perform all obligations and duties required of a Guarantor pursuant to the Indenture.  Each Guaranteeing Subsidiary hereby agrees to provide an unconditional Guarantee on the terms and subject to the conditions set forth in the Indenture, including, but not limited to, Article 10 thereof.

(3)Execution and Delivery.  Each Guaranteeing Subsidiary agrees that its Guarantee shall remain in full force and effect notwithstanding the absence of the endorsement of any notation of such Guarantee on the Notes.

(4)No Recourse Against Others.  No past, present or future director, officer, employee, incorporator, member, partner or stockholder of the Issuers or any Guaranteeing Subsidiary shall have any liability for any obligations of the Issuers or the Guarantors (including any Guaranteeing Subsidiary) under the Notes, any Guarantees, the Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder by accepting Notes waives and releases all such liability.  The waiver and release are part of the consideration for issuance of the Notes.

(5)Governing Law.  THIS SUPPLEMENTAL INDENTURE, AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS SUPPLEMENTAL INDENTURE, WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

(6)Counterparts.  The parties may sign any number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.  This Supplemental Indenture may be executed in multiple counterparts which, when taken together, shall constitute one instrument.  The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmissions shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes.  Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

(7)Effect of Headings.  The Section headings herein are for convenience only and shall not affect the construction hereof.

(8)The Trustee.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by each Guaranteeing Subsidiary.

(9)Benefits Acknowledged.  Each Guaranteeing Subsidiary’s Guarantee is subject to the terms and conditions set forth in the Indenture.  Each Guaranteeing Subsidiary acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Indenture and this Supplemental Indenture and that the guarantee and waivers made by it pursuant to its Guarantee are knowingly made in contemplation of such benefits.

(10)Successors.  All agreements of each Guaranteeing Subsidiary in this Supplemental Indenture shall bind its Successors, except as otherwise provided in this Supplemental Indenture.  All agreements of the Trustee in this Supplemental Indenture shall bind its successors.

[Signatures on following page]

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all as of the date first above written.

GEORGIA STONE PRODUCTS, LLC
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
BROAD RIVER CRUSHED STONE, LLC
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
STOCKMAN QUARRY L.L.C.
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
STOCKMAN PROPERTIES, L.L.C.
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
MCLANAHAN CRUSHED STONE, LLC
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
OHIO VALLEY ASPHALT, LLC
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary

,	WILMINGTON TRUST, NATIONAL ASSOCIATION,
		as Trustee
	By:	/s/ Joseph O’Donnell
		Name:   Joseph O’Donnell
		Title:     Vice President

EX-4.28

Exhibit 4.28

Execution Version

SECOND SUPPLEMENTAL INDENTURE

Second Supplemental Indenture (this “Supplemental Indenture”), dated as of September 6, 2017, among Ready Mix Concrete of Somerset, LLC, a Kentucky limited liability company, and Alan Ritchey Materials Company, L.C., an Oklahoma limited liability company (each, a “Guaranteeing Subsidiary”), each an indirect subsidiary of Summit Materials, LLC, a Delaware limited liability company (the “Issuer”), and Wilmington Trust, National Association, a national banking association, as trustee (the “Trustee”), Transfer Agent, Registrar and Paying Agent.

W I T N E S S E T H

WHEREAS, the Issuer, Summit Materials Finance Corp., a Delaware corporation (together with the Issuer, the “Issuers”), and the Guarantors have heretofore executed and delivered to the Trustee an Indenture (the “Indenture”), dated as of June 1, 2017, providing for the issuance of $300,000,000 aggregate principal amount of 5.125% Senior Notes due 2025 (the “Initial Notes”), as supplemented by that First Supplemental Indenture, dated as of June 21, 2017;

WHEREAS, the Indenture provides that under certain circumstances a Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture pursuant to which such Guaranteeing Subsidiary shall unconditionally guarantee all of the Issuers’ Obligations under the Notes and the Indenture on the terms and conditions set forth herein and under the Indenture (each, a  “Guarantee”); and

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture without the consent of the Holders.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties mutually covenant and agree for the equal and ratable benefit of the Holders as follows:

(1)Capitalized Terms.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

(2)Agreement to Guarantee.  Each Guaranteeing Subsidiary acknowledges that it has received and reviewed a copy of the Indenture and all other documents it deems necessary to review in order to enter into this Supplemental Indenture, and acknowledges and agrees to (i) join and become a party to the Indenture as indicated by its signature below; (ii) be bound by the Indenture, as of the date hereof, as if made by, and with respect to, each signatory hereto; and (iii) perform all obligations and duties required of a Guarantor pursuant to the Indenture.  Each Guaranteeing Subsidiary hereby agrees to provide an unconditional Guarantee on the terms and subject to the conditions set forth in the Indenture, including, but not limited to, Article 10 thereof.

(3)Notices.  All notices or other communications to any Guaranteeing Subsidiary shall be given as provided in Section 12.02 of the Indenture.

(4)Execution and Delivery.  Each Guaranteeing Subsidiary agrees that its Guarantee shall remain in full force and effect notwithstanding the absence of the endorsement of any notation of such Guarantee on the Notes.

(5)No Recourse Against Others.  No past, present or future director, officer, employee, incorporator, member, partner or stockholder of the Issuers or any Guaranteeing Subsidiary shall have any liability for any obligations of the Issuers or the Guarantors (including any Guaranteeing Subsidiary) under the Notes, any Guarantees, the Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder by accepting Notes waives and releases all such liability.  The waiver and release are part of the consideration for issuance of the Notes.

(6)Governing Law.  THIS SUPPLEMENTAL INDENTURE, AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS SUPPLEMENTAL INDENTURE, WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

(7)Counterparts.  The parties may sign any number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.  This Supplemental Indenture may be executed in multiple counterparts which, when taken together, shall constitute one instrument.  The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmissions shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes.  Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

(8)Effect of Headings.  The Section headings herein are for convenience only and shall not affect the construction hereof.

(9)The Trustee.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by each Guaranteeing Subsidiary.

(10)Benefits Acknowledged.  Each Guaranteeing Subsidiary’s Guarantee is subject to the terms and conditions set forth in the Indenture.  Each Guaranteeing Subsidiary acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Indenture and this Supplemental Indenture and that the guarantee and waivers made by it pursuant to this Guarantee are knowingly made in contemplation of such benefits.

(11)Successors.  All agreements of each Guaranteeing Subsidiary in this Supplemental Indenture shall bind its Successors, except as otherwise provided in this Supplemental Indenture.  All agreements of the Trustee in this Supplemental Indenture shall bind its successors.

[Signatures on following page]

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all as of the date first above written.

READY MIX CONCRETE OF SOMERSET, LLC
By:	/s/ Anne Lee Benedict
Name:	Anne Lee Benedict
Title:	Secretary
Alan Ritchey Materials Company, L.C.
By:	/s/ Anne Lee Benedict
Name:	Anne Lee Benedict
Title:	Secretary
WILMINGTON TRUST, NATIONAL ASSOCIATION,
	as Trustee
By:	/s/ Joseph O’Donnell
	Name:   Joseph O’Donnell
	Title:     Vice President

[Signature Page to Second Supplemental Indenture]

EX-4.29

Exhibit 4.29

Execution Version

THIRD SUPPLEMENTAL INDENTURE

Third Supplemental Indenture (this “Supplemental Indenture”), dated as of November 10, 2017, among Columbia Silica Sand, LLC, a South Carolina limited liability company, Columbia Aggregates, LLC, a South Carolina limited liability company, Northwest Aggregates, Inc., a Colorado corporation, and Northwest Ready Mix, Inc., a Colorado corporation (each, a “Guaranteeing Subsidiary”), each an indirect subsidiary of Summit Materials, LLC, a Delaware limited liability company (the “Issuer”), and Wilmington Trust, National Association, a national banking association, as trustee (the “Trustee”), Transfer Agent, Registrar and Paying Agent.

W I T N E S S E T H

WHEREAS, the Issuer, Summit Materials Finance Corp., a Delaware corporation (together with the Issuer, the “Issuers”), and the Guarantors have heretofore executed and delivered to the Trustee an Indenture (the “Indenture”), dated as of June 1, 2017, providing for the issuance of $300,000,000 aggregate principal amount of 5.125% Senior Notes due 2025 (the “Initial Notes”), as supplemented by that First Supplemental Indenture, dated as of June 21, 2017, and as further supplemented by that Third Supplemental Indenture, dated as of September 6, 2017;

WHEREAS, the Indenture provides that under certain circumstances a Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture pursuant to which such Guaranteeing Subsidiary shall unconditionally guarantee all of the Issuers’ Obligations under the Notes and the Indenture on the terms and conditions set forth herein and under the Indenture (each, a “Guarantee”); and

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture without the consent of the Holders.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties mutually covenant and agree for the equal and ratable benefit of the Holders as follows:

(1)Capitalized Terms.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

(2)Agreement to Guarantee.  Each Guaranteeing Subsidiary acknowledges that it has received and reviewed a copy of the Indenture and all other documents it deems necessary to review in order to enter into this Supplemental Indenture, and acknowledges and agrees to (i) join and become a party to the Indenture as indicated by its signature below; (ii) be bound by the Indenture, as of the date hereof, as if made by, and with respect to, each signatory hereto; and (iii) perform all obligations and duties required of a Guarantor pursuant to the Indenture.  Each Guaranteeing Subsidiary hereby agrees to provide an unconditional Guarantee on the terms and subject to the conditions set forth in the Indenture, including, but not limited to, Article 10 thereof.

(3)Notices.  All notices or other communications to any Guaranteeing Subsidiary shall be given as provided in Section 12.02 of the Indenture.

(4)Execution and Delivery.  Each Guaranteeing Subsidiary agrees that its Guarantee shall remain in full force and effect notwithstanding the absence of the endorsement of any notation of such Guarantee on the Notes.

(5)No Recourse Against Others.  No past, present or future director, officer, employee, incorporator, member, partner or stockholder of the Issuers or any Guaranteeing Subsidiary shall have any liability for any obligations of the Issuers or the Guarantors (including any Guaranteeing Subsidiary) under the Notes, any Guarantees, the Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder by accepting Notes waives and releases all such liability.  The waiver and release are part of the consideration for issuance of the Notes.

(6)Governing Law.  THIS SUPPLEMENTAL INDENTURE, AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS SUPPLEMENTAL INDENTURE, WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

(7)Counterparts.  The parties may sign any number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.  This Supplemental Indenture may be executed in multiple counterparts which, when taken together, shall constitute one instrument.  The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmissions shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes.  Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

(8)Effect of Headings.  The Section headings herein are for convenience only and shall not affect the construction hereof.

(9)The Trustee.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by each Guaranteeing Subsidiary.

(10)Benefits Acknowledged.  Each Guaranteeing Subsidiary’s Guarantee is subject to the terms and conditions set forth in the Indenture.  Each Guaranteeing Subsidiary acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Indenture and this Supplemental Indenture and that the guarantee and waivers made by it pursuant to this Guarantee are knowingly made in contemplation of such benefits.

(11)Successors.  All agreements of each Guaranteeing Subsidiary in this Supplemental Indenture shall bind its Successors, except as otherwise provided in this Supplemental Indenture.  All agreements of the Trustee in this Supplemental Indenture shall bind its successors.

[Signatures on following page]

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all as of the date first above written.

COLUMBIA SILICA SAND, LLC
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
COLUMBIA AGGREGATES, LLC
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
NORTHWEST AGGREGATES, INC.
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
NORTHWEST READY MIX, INC.
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
WILMINGTON TRUST, NATIONAL ASSOCIATION,
	as Trustee
By:	/s/ Joseph P. O’Donnell
	Name:   Joseph P. O’Donnell
	Title:     Vice President

[Signature Page to Third Supplemental Indenture]

EX-4.30

Exhibit 4.30

Execution Version

FOURTH SUPPLEMENTAL INDENTURE

Fourth Supplemental Indenture (this “Supplemental Indenture”), dated as of January 26, 2018, among Georgia Stone Products, LLC, a Georgia limited liability company, Broad River Crushed Stone, LLC, a Georgia limited liability company, Stockman Quarry, L.L.C., a Missouri limited liability company, Stockman Properties, L.L.C., a Missouri limited liability company, McLanahan Crushed Stone, LLC, a Georgia limited liability company, and Ohio Valley Asphalt, LLC, a Kentucky limited liability company (each, a “Guaranteeing Subsidiary”), each an indirect subsidiary of Summit Materials, LLC, a Delaware limited liability company (the “Issuer”), and Wilmington Trust, National Association, a national banking association, as trustee (the “Trustee”), Transfer Agent, Registrar and Paying Agent.

W I T N E S S E T H

WHEREAS, the Issuer, Summit Materials Finance Corp., a Delaware corporation (together with the Issuer, the “Issuers”), and the Guarantors have heretofore executed and delivered to the Trustee an Indenture (the “Indenture”), dated as of June 1, 2017, providing for the issuance of $300,000,000 aggregate principal amount of 5.125% Senior Notes due 2025 (the “Initial Notes”), as supplemented by that First Supplemental Indenture, dated as of June 21, 2017, as further supplemented by that Second Supplemental Indenture, dated as of September 6, 2017, and as further supplemented by that Third Supplemental Indenture, dated as of November 10, 2017;

WHEREAS, the Indenture provides that under certain circumstances a Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture pursuant to which such Guaranteeing Subsidiary shall unconditionally guarantee all of the Issuers’ Obligations under the Notes and the Indenture on the terms and conditions set forth herein and under the Indenture (each, a “Guarantee”); and

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture without the consent of the Holders.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties mutually covenant and agree for the equal and ratable benefit of the Holders as follows:

(1)Capitalized Terms.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

(2)Agreement to Guarantee.  Each Guaranteeing Subsidiary acknowledges that it has received and reviewed a copy of the Indenture and all other documents it deems necessary to review in order to enter into this Supplemental Indenture, and acknowledges and agrees to (i) join and become a party to the Indenture as indicated by its signature below; (ii) be bound by the Indenture, as of the date hereof, as if made by, and with respect to, each signatory hereto; and (iii) perform all obligations and duties required of a Guarantor pursuant to the Indenture.  Each Guaranteeing Subsidiary hereby agrees to provide an unconditional Guarantee on the terms and subject to the conditions set forth in the Indenture, including, but not limited to, Article 10 thereof.

(3)Notices.  All notices or other communications to any Guaranteeing Subsidiary shall be given as provided in Section 12.02 of the Indenture.

(4)Execution and Delivery.  Each Guaranteeing Subsidiary agrees that its Guarantee shall remain in full force and effect notwithstanding the absence of the endorsement of any notation of such Guarantee on the Notes.

(5)No Recourse Against Others.  No past, present or future director, officer, employee, incorporator, member, partner or stockholder of the Issuers or any Guaranteeing Subsidiary shall have any liability for any obligations of the Issuers or the Guarantors (including any Guaranteeing Subsidiary) under the Notes, any Guarantees, the Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder by accepting Notes waives and releases all such liability.  The waiver and release are part of the consideration for issuance of the Notes.

(6)Governing Law.  THIS SUPPLEMENTAL INDENTURE, AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS SUPPLEMENTAL INDENTURE, WILL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

(7)Counterparts.  The parties may sign any number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.  This Supplemental Indenture may be executed in multiple counterparts which, when taken together, shall constitute one instrument.  The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmissions shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes.  Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

(8)Effect of Headings.  The Section headings herein are for convenience only and shall not affect the construction hereof.

(9)The Trustee.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by each Guaranteeing Subsidiary.

(10)Benefits Acknowledged.  Each Guaranteeing Subsidiary’s Guarantee is subject to the terms and conditions set forth in the Indenture.  Each Guaranteeing Subsidiary acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated by the Indenture and this Supplemental Indenture and that the guarantee and waivers made by it pursuant to this Guarantee are knowingly made in contemplation of such benefits.

(11)Successors.  All agreements of each Guaranteeing Subsidiary in this Supplemental Indenture shall bind its Successors, except as otherwise provided in this Supplemental Indenture.  All agreements of the Trustee in this Supplemental Indenture shall bind its successors.

[Signatures on following page]

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all as of the date first above written.

GEORGIA STONE PRODUCTS, LLC
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
BROAD RIVER CRUSHED STONE, LLC
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
STOCKMAN QUARRY L.L.C.
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
STOCKMAN PROPERTIES, L.L.C.
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
MCLANAHAN CRUSHED STONE, LLC
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary
OHIO VALLEY ASPHALT, LLC
By:	/s/ Christopher B. Gaskill
Name:	Christopher B. Gaskill
Title:	Assistant Secretary

WILMINGTON TRUST, NATIONAL ASSOCIATION,
	as Trustee
By:	/s/ Joseph O’Donnell
	Name:   Joseph O’Donnell
	Title:     Vice President

EX-10.35

Exhibit 10.35

AGREEMENT AND RELEASE

IT IS HEREBY AGREED, as of January 17, 2018, by and among Damian J. Murphy (“Employee”), Summit Materials Holdings L.P. (“Employer”), and solely for purposes of Paragraph 5 and Paragraph 9 hereof, Summit Materials, Inc. (“Summit”), for the good and sufficient consideration set forth below, as follows:

1.           Employee’s last day of work with Employer will be March 31, 2018 (the  “Separation Date”).  Effective as of the Separation Date, Employee shall be deemed to have resigned from any and all positions Employee then holds as an employee, officer, or director of Employer and any of its affiliates.

2.          Employee is a Tier 2 Participant (as defined in the Severance Plan, as defined below) in the Summit Materials, Inc. Executive Severance Plan (as may be amended from time to time, the “Severance Plan”).  The termination of Employee’s employment pursuant hereto shall constitute a Qualifying Termination (as defined in the Severance Plan) for purposes of the Severance Plan.  Subject to Employee’s (i) execution and delivery of the Release of Claims attached hereto as Exhibit A (the “Release of Claims”) within twenty-one (21) days following the Separation Date and non-revocation within the seven (7)-day revocation period set forth therein and (ii) continued compliance with this Agreement and Release and the restrictive covenant provisions set forth in (x) Paragraph 8 hereof, (y) the Severance Plan, as such provisions are modified by Paragraph 9 hereof, and (z) the agreements with respect to the Outstanding Equity Awards (collectively, the “Outstanding Equity Award Agreements”), as such provisions are modified by Paragraph 9 hereof (collectively, the “Restrictive Covenant Provisions”), Employer agrees:

a.   to provide Employee with an amount equal to $58,823.75, which (x) represents a target bonus amount payable under the Annual Bonus Program (as defined in the Severance Plan) for fiscal year 2018, pro-rated for three (3) full calendar months and payable concurrently with cash bonus payments to other employees under the applicable cash bonus plan (but in all events prior to March 15, 2019), and (y) shall be in lieu of the pro-rated bonus for fiscal year 2018 that is set forth in Section 3(a)(i)(1) of the Severance Plan;

b.   to the extent not previously paid, to provide Employee with the bonus amount otherwise payable under the Annual Bonus Program for fiscal year 2017 based on actual performance, payable concurrently with cash bonus payments to other employees under the applicable cash bonus plan, as set forth in Section 3(a)(i)(2) of the Severance Plan;

c.   to provide Employee with an amount equal to $795,210, which represents two (2) times Employee’s annual base salary rate as of the Separation Date, payable in equal installments no less frequently than monthly over the twenty-four (24)-month period beginning with the first payroll period after the Release Effectiveness Date, as set forth in Section 3(a)(ii) of the Severance Plan;

d.   to provide Employee with a cash payment in an amount equal to the total amount of the monthly COBRA insurance premiums, payable monthly for twenty-four (24) months following the Separation Date in accordance with Employer’s payroll practices, with the first such payment in respect of any completed months prior to the Release Effectiveness Date to occur as soon as practicable after the Release Effectiveness Date, as set forth in Section 3(a)(iii) of the Severance Plan; and

e.   to make such modifications to Employee’s equity-based awards (collectively, the “Outstanding Equity Awards”), including awards under the Summit Materials Inc. 2015 Omnibus Incentive Plan (as may be amended from time to time, the “Plan”), as follows:

i.  All Unvested LP Units (as defined in the Restricted LP Unit Agreement between Summit, Employer and Employee, dated March 11, 2015 (the “Restricted LP Unit Agreement”)) outstanding under the Restricted LP Unit Agreement shall become vested as of the Separation Date, and Employee shall retain all Vested LP Units (as defined in the Restricted LP Unit Agreement) (including, for the avoidance of doubt, those Unvested LP Units that become Vested LP Units in accordance with the foregoing) pursuant to the terms

of the Restricted LP Unit Agreement and the Exchange Agreement (as defined in the Restricted LP Unit Agreement).

ii. The portion of the Option (as defined in the Nonqualified Stock Option Agreement (Leverage Restoration Options) between Summit and Employee, dated March 11, 2015 (the “LRO Agreement”)) issued pursuant to the LRO Agreement that is scheduled to vest on March 11, 2019 shall become vested as of the Separation Date (the “Accelerated LROs”); provided,  however, that any Accelerated LROs shall not be exercisable prior to the last day of the Post-Termination Period (as defined in the Severance Plan and after giving effect to the terms of Paragraph 9 hereof) and shall remain exercisable for ninety (90) days after the last day of the Post-Termination Period (after giving effect to the terms of Paragraph 9 hereof) (or such shorter period as applicable in the event of a Restrictive Covenant Violation (as defined in the LRO Agreement)).

iii. The portion of the Options (as defined in the applicable Stock Option Agreement (as defined below)) granted pursuant to the (x) Nonqualified Stock Option Agreement and Award Notice between Summit and Employee, dated February 24, 2016 (the “2016 Stock Option Agreement”), and (y) Nonqualified Stock Option Agreement and Award Notice between Summit and Employee, dated February 28, 2017 (the “2017 Stock Option Agreement”, and together with the 2016 Stock Option Agreement, each, a “Stock Option Agreement”) that is scheduled to vest on February 24, 2019 (the “2016 Stock Option Vesting Date”) and February 28, 2019 (the “2017 Stock Option Vesting Date”, and together with the 2016 Stock Option Vesting Date, each, a “Stock Option Vesting Date”), respectively, shall become vested as of the Separation Date (the “Accelerated Stock Options”); provided,  however, that any Accelerated Stock Options shall not be exercisable prior to the applicable Stock Option Vesting Date and shall be exercisable for ninety (90) days (or such shorter period as applicable in the event of a Restrictive Covenant Violation (as defined in the applicable Stock Option Agreement)) after the applicable Stock Option Vesting Date.

iv.  In the event that any portion of the ninety (90)-day exercisability period applicable to the Options (as defined in the LRO Agreement or the applicable Stock Option Agreement, as applicable) issued pursuant to the LRO Agreement or the applicable Stock Option Agreement, as applicable (after giving effect to the terms of Paragraph 2(e)(ii) and 2(e)(iii) hereof, as applicable), is subject to a “blackout period”, Summit may in its discretion extend such ninety (90)-day period by the number of days of such blackout period (or such other number of days as Summit in its discretion determines is appropriate); provided, that any such extended exercisability period shall remain subject to expiration upon the occurrence of a Restrictive Covenant Violation (as defined in the LRO Agreement or the applicable Stock Option Agreement, as applicable).

v.  The portion of the Restricted Stock Units (as defined in the Plan) granted under the (x) Restricted Stock Unit Agreement and Award Notice between Summit and Employee, dated February 24, 2016 (the “2016 RSU Agreement”), and (y) Restricted Stock Unit Agreement and Award Notice between Summit and Employee, dated February 28, 2017 (the “2017 RSU Agreement” and together with the 2016 RSU Agreement, each, an “RSU Agreement”), that is scheduled to vest on February 24, 2019 (the “2016 RSU Vesting Date”) and February 28, 2019 (the “2017 RSU Vesting Date” and together with the 2016 RSU Vesting Date, each, an “RSU Vesting Date”) shall become vested as of the Separation Date (the “Accelerated RSUs”), and shall be settled in accordance with the applicable RSU Agreement; provided, however, that any shares acquired in respect of Accelerated RSUs (other than those withheld or net settled to pay applicable withholding taxes) shall not be transferable by Employee until the applicable RSU Vesting Date.

vi. Employee’s Performance Units (as defined in the applicable Performance Unit Agreement (as defined below)) granted under the (x) Performance Unit Agreement and Award Notice

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between Summit and Employee, dated February 24, 2016 (the “2016 Performance Unit Agreement”), and (y) Performance Unit Agreement and Award Notice between Summit and Employee, dated February 28, 2017 (the “2017 Performance Unit Agreement” and together with the 2016 Performance Unit Agreement, each, a “Performance Unit Agreement”) shall be governed by the terms and conditions of the applicable Performance Unit Agreement applicable for a termination of Employee’s employment by Employer without cause; provided, that the “Termination date” for purposes of each Performance Unit Agreement shall be the Separation Date.

Except as modified above, Employee and the Outstanding Equity Awards shall continue be subject to the terms and conditions of each applicable award agreement for the Outstanding Equity Awards, including, without limitation, the repayment provisions and restrictive covenants contained therein.

The consideration set forth in this Paragraph 2, together with the Accrued Obligations (as defined and set forth in the Severance Plan), is inclusive of any and all amounts, including but not limited to attorneys’ fees, that may be claimed by Employee or on Employee’s behalf against Employer (and, in the case of Paragraph 2(e), Summit), and the consideration set forth in Paragraphs 2(a) through 2(d) hereof, together with the Accrued Obligations, is in complete satisfaction of any and all Employer obligations under the Severance Plan and otherwise.  Notwithstanding any other provision of this Agreement and Release to the contrary, Employee’s continuing obligation to comply with the Restrictive Covenant Provisions shall remain in full force and effect.

3.          In exchange for the consideration set forth in Paragraph 2 hereof, Employee agrees that Employee shall be available, following the Separation Date, to provide consulting services as may be requested by Employer from time to time with respect any matter that occurred during Employee’s employment with Employer or any of its affiliates, with which Employees was involved or of which Employee has knowledge.  Employer shall reimburse Employee for any reasonable business expenses incurred by Employee in connection with the performance of such consulting services, consistent with Employer’s policies as may be in effect from time to time, but shall not provide any additional compensation therefor.

4.          Employee has received or will receive the Accrued Obligations.  Employee acknowledges and agrees that from and after the Separation Date, Employee will not accrue any base salary, annual bonus opportunity or other employee benefits.  Employee further acknowledges that, as of the date of Employee’s signing of this Agreement and Release, Employee has sustained no injury or illness related in any way to Employee’s employment with Employer for which a workers compensation claim has not already been filed.  This Agreement and Release satisfies any notice requirement from Employer to Employee relating to termination of Employee’s employment with Employer.

5.          The parties hereto agree that the consideration set forth in Paragraph 2 hereof is sufficient consideration for the release being given by Employee in the Release of Claims, and for Employee’s other promises herein.  Summit and Employee further agree that the release being given by Employee in the Release of Claims is sufficient to satisfy the release requirement as required by the Stock Option Agreements, RSU Agreements, Performance Unit Agreements, and the Severance Plan, as applicable.

6.          Notwithstanding anything in this Agreement and Release to the contrary, nothing in this Agreement and Release shall be a waiver of Employee’s right to (i) communicate, cooperate or file a complaint with any U.S. federal, state or local governmental or law enforcement branch, agency or entity (collectively, a “Governmental Entity”) with respect to possible violations of any U.S. federal, state or local law or regulation, or otherwise make disclosures to any Governmental Entity, in each case, that are protected under the whistleblower provisions of any such law or regulation; provided, that, in each case such communications and disclosures are consistent with applicable law, or (ii) receive an award from a Governmental Entity for information provided under any whistleblower program.  Employee understands and acknowledges that pursuant to the Defend Trade Secrets Act of 2016 (a) an individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that is made (x) in confidence to a Federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (y) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal and (b) an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual

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and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal, and does not disclose the trade secret, except pursuant to court order.  Notwithstanding the foregoing, under no circumstance will Employee be authorized to disclose any information covered by attorney-client privilege or attorney work product of the Employer or Employer’s affiliates without prior written consent of the Employer’s Chief Legal Officer or other officer designated by the Employer.

7.Employee will direct all requests for references to Anne Lee Benedict, Chief Legal Officer, who will confirm Employee’s job title, dates of employment and resignation, and, with written authorization from Employee, Employee’s salary.

8.Subject in each case to applicable law, Employee agrees and covenants not to directly or indirectly (or cause or encourage anyone else to): (i) make any written (including, without limitation, on any blog, website, or social media forum), oral, or other nonverbal derogatory or negative statements, remarks, gestures, or other signals concerning Employer, any of Employer’s affiliates, and/or their respective present and former officers, directors, employees, members, attorneys, representatives, successors and assigns (collectively, the “Employer Persons”); or (ii) take any other action, including, without limitation, statements, gestures, or actions that (a) might disparage or defame any Employer Person, with respect to any Employer Person’s business processes, policies, practices, or strategies, management, operations, standards of business conduct, financial condition, professional acumen and abilities, and/or relationships with employees, as applicable, or (b) are in any manner likely to be harmful to any Employer Person’s business or personal reputation.  For the avoidance of doubt, the provisions of this Paragraph 8 are in addition to, and not in lieu of, any similar non-disparagement provisions contained in the Severance Plan or any Outstanding Equity Award Agreement.

9.          In exchange for the consideration set forth in Paragraph 2 hereof, including the modifications to the Outstanding Equity Awards as set forth in Paragraph 2(e) hereof, (i) notwithstanding anything in the Severance Plan to the contrary, the Post-Termination Period (as defined in the Severance Plan) shall be eighteen (18) months following the Separation Date, for purposes of the Severance Plan, and (ii) notwithstanding anything in the applicable Outstanding Equity Award Agreement to the contrary, the Post-Termination Period (as defined in the applicable Outstanding Equity Award Agreement) shall be eighteen (18) months following the Separation Date, for purposes of the applicable Outstanding Equity Award Agreement.

10.        Employee and Employer agree and promise not to disclose, either directly or indirectly, in any manner whatsoever, any information regarding the existence or terms of this Agreement and Release, to any person or entity, (i) except in the case of Employee, to members of Employee’s immediate family, Employee’s attorney and Employee’s accountant and/or financial advisor, provided that such persons agree to keep this information confidential, and (ii) except as may be required by law or otherwise as disclosed in Employer’s or Summit’s Securities and Exchange Commission filings.

11.        Employee agrees not to use, disclose to others, or permit anyone access to any of Employer’s or Employer’s affiliates’ trade secrets or confidential or proprietary information without Employer’s express consent, and to return immediately to Employer all property of Employer and its affiliates on the Separation Date.  Employee shall not retain any copy or other reproduction whatsoever of any property of Employer and its affiliates after the Separation Date; provided,  however, that Employee may retain copies of documents relating to Employee’s compensation, benefits and Outstanding Equity Awards, which copies shall continue to be subject to Employee’s confidentiality obligation.

12.        The parties intend that any amounts payable pursuant hereto that could constitute “deferred compensation” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), are intended to comply with Section 409A, and this Agreement and Release shall be administered, interpreted and construed to the extent possible in a manner that does not result in the imposition of additional taxes, penalties or interest under Section 409A; provided, that the Employer does not guarantee any particular tax effect, and Employee shall be solely responsible and liable for the satisfaction of all taxes, penalties and interest that may be imposed on or for the account of Employee in connection with this Agreement and Release (including any taxes, penalties and interest under Section 409A).

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13.        Each party shall bear its own costs and attorneys’ fees, if any, incurred in connection with this Agreement and Release.

14.        This Agreement and Release contains the full agreement of the parties and may not be modified, altered, changed or terminated except upon the express prior written consent of Employer and Employee or their authorized agents.

15.        This Agreement and Release shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflicts of laws principles thereof that would direct the application of the laws of any other jurisdiction.

16.        The waiver by any party of a breach of any provision herein shall not operate or be construed as a waiver of any subsequent breach by any party.

17.        The provisions of this Agreement and Release are severable.  Should any provision herein be declared invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect the remainder of this Agreement and Release, and this Agreement and Release shall be reformed, construed and enforced to the maximum extent permitted by law.

18.        This Agreement and Release may be signed in counterparts, and each counterpart shall be considered an original agreement for all purposes.

[Signature Pages Follow]

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IN WITNESS WHEREOF, the parties have hereunto set their hands as of the date first written above.

/s/ Damian J. Murphy

Damian J. Murphy

[Signature Page to Agreement and Release]

Summit Materials Holdings L.P.
By:	/s/ Tom Hill
Name: Tom Hill
Title:  Chief Executive Officer
Solely for purposes of Paragraph 5 and Paragraph 9 hereof,
Summit Materials, Inc.
By:	/s/ Tom Hill
Name:  Tom Hill
Title:  Chief Executive Officer

[Signature Page to Agreement and Release]

Exhibit A

Release of Claims

1.        This Release of Claims (this “Release”) is made by Damian J. Murphy (“Employee”) as of ___________ ___, 2018, which is within twenty-one (21) days following the Separation Date.  Capitalized terms used but not defined in this Release shall have the respective meanings assigned to such terms in the Agreement and Release (the “Separation Agreement”) to which this Release is attached as an Exhibit.  In accordance with the Separation Agreement, Employee agrees as follows:

2.        Employee has received those of the Accrued Obligations that are due to Employee as of the date of this Release.  Employee further acknowledges that, as of the date of Employee’s signing of this Release, Employee has sustained no injury or illness related in any way to Employee’s employment with Employer for which a workers compensation claim has not already been filed.

3.        In return for Employer’s agreement to provide Employee with the consideration referred to in Paragraph 2 of the Separation Agreement, Employee, for Employee and Employee’s heirs, beneficiaries, devisees, privies, executors, administrators, attorneys, representatives, and agents, and Employee’s and their respective assigns, successors and predecessors, hereby releases and forever discharges Employer and its parents, subsidiaries and affiliates, its and their officers, directors, employees, members, agents, attorneys and representatives, and the predecessors, successors and assigns of each of the foregoing (collectively, the “Released Parties”) from any and all actions, causes of action, suits, debts, claims, complaints, charges, contracts, controversies, agreements, promises, damages, counterclaims, cross-claims, claims for contribution and/or indemnity, claims for costs and/or attorneys’ fees, judgments and demands whatsoever, in law or equity, known or unknown, Employee ever had, now has, or may have against the Released Parties as of the date of Employee’s signing of this Release.  This release includes, but is not limited to, any claims alleging breach of express or implied contract, wrongful discharge, constructive discharge, breach of an implied covenant of good faith and fair dealing, negligent or intentional infliction of emotional distress, negligent supervision or retention, violation of the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, the Civil Rights Act of 1866, Title VII of the Civil Rights Act of 1964, as amended, the Americans with Disabilities Act of 1990, Colorado anti-discrimination laws, claims pursuant to any other federal, state or local law regarding discrimination, harassment or retaliation based on age, race, sex, religion, national origin, marital status, disability, sexual orientation or any other unlawful basis or protected status or activity, and claims for alleged violation of any other local, state or federal law, regulation, ordinance, public policy or common-law duty having any bearing whatsoever upon the terms and conditions of, and/or the cessation of Employee’s employment with and by Employer.  This release also includes, but is not limited to, any rights to indemnification (i) pursuant to any indemnification agreement, insurance policy or organizational documents of any of Employer and its parents, subsidiaries and affiliates or (ii) that may be applicable with respect to any alleged violation by Employee of the code of ethics or similar policy of any of Employer and its parents, subsidiaries and affiliates.  The release set forth in this Release does not include (i) claims that may not be released under applicable law, (ii) claims for Accrued Obligations that are not yet due and payable to Employee as of the date of this Release, or (iii) claims for breach of the Separation Agreement.

4.        Employee agrees not only to release and discharge the Released Parties from any and all claims against the Released Parties that Employee could make on Employee’s own behalf, but also those which may have been or may be made by any other person or organization on Employee’s behalf.  Employee specifically waives any right to become, and promises not to become, a member of any class in a case in which any claim or claims are asserted against any of the Released Parties based on any acts or omissions occurring on or before the date of Employee’s signing of this Release.  If Employee is asserted to be a member of a class in a case against any of the Released Parties based on any acts or omissions occurring on or before the date of Employee’s signing of this Release, Employee shall immediately withdraw with prejudice in writing from said class, if permitted by law to do so.  Employee agrees that Employee will not encourage or assist any person in filing or pursuing any proceeding, action, charge, complaint, or claim against the Released Parties, except as required by law.

5.        This Release is not intended to interfere with Employee’s exercise of any protected, non-waivable right, including Employee’s right to file a charge with the Equal Employment Opportunity Commission or other

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government agency.  By entering into this Release, however, Employee acknowledges that the consideration set forth herein is in full satisfaction of any amounts to which Employee might be entitled and Employee is forever discharging the Released Parties from any liability to Employee for any acts or omissions occurring on or before the date of Employee’s signing of this Release.

6.        Neither this Release, nor anything contained herein, shall be construed as an admission by the Released Parties of any liability or unlawful conduct whatsoever.  The parties hereto agree and understand that the consideration set forth in Paragraph 2 of the Separation Agreement is in compliance with that which Employer and Summit, respectively, is obligated to provide to Employee, and that such consideration is provided solely in consideration of Employee’s execution of this Release.  The parties hereto agree that the consideration set forth in Paragraph 2 of the Separation Agreement is sufficient consideration for the release being given by Employee in this Release, and for Employee’s other promises herein.

7.        Notwithstanding anything in this Release to the contrary, nothing in this Release shall be a waiver of Employee’s right to (i) communicate, cooperate or file a complaint with any U.S. federal, state or local governmental or law enforcement branch, agency or entity (collectively, a “Governmental Entity”) with respect to possible violations of any U.S. federal, state or local law or regulation, or otherwise make disclosures to any Governmental Entity, in each case, that are protected under the whistleblower provisions of any such law or regulation; provided, that, in each case such communications and disclosures are consistent with applicable law, or (ii) receive an award from a Governmental Entity for information provided under any whistleblower program.  Employee understands and acknowledges that pursuant to the Defend Trade Secrets Act of 2016 (a) an individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that is made (x) in confidence to a Federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (y) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal and (b) an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal, and does not disclose the trade secret, except pursuant to court order.  Notwithstanding the foregoing, under no circumstance will Employee be authorized to disclose any information covered by attorney-client privilege or attorney work product of the Employer or Employer’s affiliates without prior written consent of the Employer’s Chief Legal Officer or other officer designated by the Employer.

8.        Employee acknowledges and agrees that: (i) no promise or inducement for this Release has been made except as set forth in this the Separation Agreement; (ii) this Release is executed by Employee without reliance upon any statement or representation by Employer except as set forth herein; (iii) Employee is legally competent to execute this Release and to accept full responsibility therefor; (iv) Employee has been given twenty-one (21) days within which to consider this Release; (v) Employee has used all or as much of that twenty-one (21)-day period as Employee deemed necessary to consider fully this Release and, if Employee has not used the entire twenty-one (21)-day period, Employee knowingly and voluntarily waives that period not used; (vi) Employee has read and fully understands the meaning of each provision of this Release; (vii) Employer has advised Employee to consult with an attorney concerning this Release; (viii) Employee freely and voluntarily enters into this Release; and (ix) no fact, evidence, event, or transaction currently unknown to Employee but which may hereafter become known to Employee shall affect in any manner the final and unconditional nature of the release stated above.

9.        This Release shall only become effective and enforceable on the eighth (8th) day following Employee’s execution of this Release within twenty-one (21) days following the Separation Date, unless Employee revokes it during the seven (7)-day revocation period by so advising Employer in writing received by Anne Lee Benedict, Chief Legal Officer, Summit Materials Holdings L.P., 1550 Wynkoop Street, 3rd Floor, Denver, CO 80202, before the end of the seventh (7th) day after its execution by Employee.

10.       This Release shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflicts of laws principles thereof that would direct the application of the laws of any other jurisdiction.

11.       The waiver by any party of a breach of any provision herein shall not operate or be construed as a waiver of any subsequent breach by any party.

A-2

12.       The provisions of this Release are severable.  Should any provision herein be declared invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect the remainder of this Release, and this Release shall be reformed, construed and enforced to the maximum extent permitted by law.

Employee hereby declares as follows:

I, Damian J. Murphy, hereby acknowledge that I was given twenty-one (21) days following the Separation Date to consider the foregoing Release and voluntarily chose to sign the Release prior to that date.

I have read the foregoing Release and I accept and agree to the provisions it contains and hereby execute it voluntarily with full understanding of its consequences.

[Signature Page Follows]

A-3

/s/ Damian J. Murphy

Damian J. Murphy

April 21, 2018

Date

[Signature Page to Release of Claims]

EX-12.1

Exhibit 12.1

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

SUMMIT MATERIALS, LLC AND SUBSIDIARIES

Computation of Ratio of Earnings to Fixed Charges

	YearEnded
	December30,		December 31,		January 2,		December 27,		December 28,
($ in thousands)	2017		2016		2016		2014		2013
Income (loss) from continuing operations before income taxes (1)	$	113,697	$	56,805	$	(18,322)	$	(13,336)	$	(105,798)
Add (deduct):
Distributions from equity investments		1,000		3,500		1,800		757		120
Income from equity method investees		(2,204)		(3,266)		(2,609)		(1,408)		(1,161)
Capitalized interest		—		—		—		-		(640)
Fixed Charges		114,892		102,684		87,805		88,570		58,419
Earnings, as defined	$	227,385	$	159,723	$	68,674	$	74,583	$	(49,060)
Fixed Charges:
Interest on indebtedness and amortization of deferred financing costs	$	107,655	$	96,483	$	83,757	$	86,742	$	56,443
Capitalized interest		—		—		—		-		640
Portion of rental expense under operating leases representative of the interest factor		7,237		6,201		4,048		1,828		1,336
Total fixed charges	$	114,892	$	102,684	$	87,805	$	88,570	$	58,419
Ratio of earnings to fixed charges (2)(3)		2.0 x		1.6 x		0.8 x		0.8 x		N/A

(1)     Represents earnings from continuing operations before adjustments for noncontrolling interests in consolidated subsidiaries.

(2)     The ratio of earnings to fixed charges is determined by dividing earnings, as adjusted, by fixed charges. Fixed charges consist of interest on all indebtedness plus that portion of operating lease rentals representative of the interest factor (deemed to be 33% of operating lease rentals).

(3)     Earnings were insufficient to cover fixed charges by $19.1 million, $14.0 million and $107.5 million for the years ended 2015, 2014 and 2013, respectively.

EX-21

Exhibit 21

SUBSIDIARIES OF SUMMIT MATERIALS, INC.

SUBSIDIARIES OF SUMMIT MATERIALS, LLC

(as of February 14, 2018)

Name		Jurisdiction of Incorporation or Organization
Alleyton Resource Company, LLC	Delaware
Alan Ritchey Materials Company, LLC	Oklahoma
Alleyton Services Company, LLC	Delaware
American Materials Company, LLC	North Carolina
Austin Materials, LLC	Delaware
B&B Resources, Inc.	Utah
Bourbon Limestone Company	Kentucky
Boxley Materials Company	Virginia
Broad River Crushed Stone, LLC	Georgia
Colorado County Sand & Gravel Co., LLC	Texas
Columbia Silica Sand, LLC	South Carolina
Columbia Aggregates, LLC	South Carolina
Con-Agg of MO, LLC	Missouri
Concrete Supply of Topeka, Inc.	Kansas
Continental Cement Company, LLC	Delaware
Cornejo & Sons, LLC	Kansas
Elam Construction, Inc.	Colorado
Georgia Stone Products, LLC	Georgia
Glasscock Company, Inc.	South Carolina
Glasscock Logistics Company, LLC	South Carolina
Green America Recycling, LLC	Missouri
Hamm, Inc.	Kansas
H.C. Rustin Corporation	Texas
Hinkle Contracting Company LLC	Kentucky
Industrial Asphalt, LLC	Texas
Kilgore Companies, LLC	Delaware
Kilgore Partners, L.P.	Utah
Laredo Paving, Inc.	Texas
LeGrand Johnson Construction Co.	Utah
Lewis & Lewis, Inc.	Wyoming
Mainland Sand & Gravel ULC	British Columbia
Mertens, LLC	Missouri
Mertens Construction Company, LLC	Missouri
Metro Ready Mix, LLC	Utah
McLanahan Crushed Stone, LLC	Georgia
Mid-Missouri Limestone, LLC	Missouri
Ohio Valley Asphalt, LLC	Kentucky
Osage, LLC	Missouri
N.R. Hamm Contractor, LLC	Kansas
N.R. Hamm Quarry, LLC	Kansas
Northwest Aggregates, Inc.	Colorado
Northwest Ready Mix, Inc.	Colorado
Peak Materials, LLC	Delaware
Pelican Asphalt Company, LLC	Texas
Penny’s Concrete and Ready Mix, LLC	Kansas
Price Construction, Ltd.	Texas
Razorback Concrete Company	Arkansas
R.D. Johnson Excavating Company, LLC	Kansas
RK Hall, LLC	Delaware
Ready Mix Concrete of Somerset, LLC	Kentucky

Name		Jurisdiction of Incorporation or Organization
SCS Materials, LLC	Texas
Sierra Ready Mix Limited Liability Company	Nevada
Stockman Properties, LLC	Missouri
Stockman Quarry, LLC	Missouri
Summit Materials Corporations I, Inc.	Delaware
Summit Materials Finance Corp.	Delaware
Summit Materials Holdings, LLC(1)	Delaware
Summit Finance Group, LLC	Delaware
Summit Materials Holdings L.P.(1)	Delaware
Summit Materials Intermediate Holdings, LLC(1)	Delaware
Summit Materials International, LLC	Delaware
Summit Materials, LLC(1)	Delaware
Troy Vines, Inc.	Texas

(1)Subsidiary of Summit Materials, Inc. but not of Summit Materials, LLC.

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Stockholders

of Summit Materials, Inc.:

We consent to the incorporation by reference in the registration statements (No. 333-202669 and No. 333-210036) on Form S-8  and registration statements (No. 333-210730 and 333-215437) on Form S-3 of Summit Materials, Inc. of our:

Reports dated February 14, 2018, with respect to the consolidated balance sheets of Summit Materials, Inc. and subsidiaries as of December 30, 2017 and December 31, 2016, and the related consolidated statements of operations, comprehensive loss, cash flows and changes in redeemable noncontrolling interest and stockholders’ equity for each of the fiscal years ended December 30, 2017, December 31, 2016, and January 2, 2016 and the related notes (collectively, the “consolidated financial statements”), and the effectiveness of internal control over financial reporting of Summit Materials, Inc. and subsidiaries as of December 30, 2017, which reports appear in the December 30, 2017 annual report on Form 10-K of Summit Materials, Inc.

Report dated February 14, 2018, with respect to the consolidated balance sheets of Summit Materials, LLC and subsidiaries as of December 30, 2017 and December 31, 2016, and the related consolidated statements of operations, comprehensive loss, cash flows and changes in redeemable noncontrolling interest and members’ interest for each of the fiscal years ended December 30, 2017, December 31, 2016 and January 2, 2016 and the related notes (collectively, the “consolidated financial statements”), which report appears in the December 30, 2017 annual report on Form 10-K of Summit Materials, Inc.

/s/ KPMG LLP

Denver, Colorado

February 14, 2018

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Thomas W. Hill, certify that:

1.I have reviewed this Annual Report on Form 10-K of Summit Materials, Inc. (the “registrant”);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;  

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 14, 2018

/s/ Thomas W. Hill

Thomas W. Hill

Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Brian J. Harris, certify that:

1.I have reviewed this Annual Report on Form 10-K of Summit Materials, Inc. (the “registrant”);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

28

Date: February 14, 2018

/s/ Brian J. Harris

Brian J. Harris

Chief Financial Officer

(Principal Financial Officer)

EX-31.3

Exhibit 31.3

CERTIFICATION

I, Thomas W. Hill, certify that:

1.I have reviewed this Annual Report on Form 10-K of Summit Materials, LLC (the “registrant”);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in the Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

28

Date: February 14, 2018

/s/ Thomas W. Hill

Thomas W. Hill

Chief Executive Officer

(Principal Executive Officer)

EX-31.4

Exhibit 31.4

CERTIFICATION

I, Brian J. Harris, certify that:

1.I have reviewed this Annual Report on Form 10-K of Summit Materials, LLC (the “registrant”);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in the Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 14, 2018

/s/ Brian J. Harris

Brian J. Harris

Chief Financial Officer

(Principal Financial Officer)

EX-32.1

Exhibit 32.1

Certification

Pursuant to 18 U.S.C. Section 1350

As adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Annual Report of Summit Materials, Inc. (the “Company”) on Form 10-K for the fiscal year ended December 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas W. Hill, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(i)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

28

Date: February 14, 2018

/s/ Thomas W. Hill

Thomas W. Hill

Chief Executive Officer

(Principal Executive Officer)

EX-32.2

Exhibit 32.2

Certification

Pursuant to 18 U.S.C. Section 1350

As adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Annual Report of Summit Materials, Inc. (the “Company”) on Form 10-K for the year fiscal ended December 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Brian J. Harris, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(i)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 14, 2018

/s/ Brian J. Harris

Brian J. Harris

Chief Financial Officer

(Principal Financial Officer)

EX-32.3

Exhibit 32.3

Certification

Pursuant to 18 U.S.C. Section 1350

As adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Annual Report of Summit Materials, LLC (the “Company”) on Form 10-K for the fiscal year ended December 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas W. Hill, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(i)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

28

Date: February 14, 2018

/s/ Thomas W. Hill

Thomas W. Hill

Chief Executive Officer

(Principal Executive Officer)

EX-32.4

Exhibit 32.4

Certification

Pursuant to 18 U.S.C. Section 1350

As adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Annual Report of Summit Materials, LLC (the “Company”) on Form 10-K for the year fiscal ended December 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Brian J. Harris, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(i)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

28

Date: February 14, 2018

/s/ Brian J. Harris

Brian J. Harris

Chief Financial Officer

(Principal Financial Officer)

EX-95.1

Exhibit 95.1

Mine Safety Disclosures

The operation of Summit Materials, Inc.’s and its subsidiaries’ (collectively, the “Company’s”) aggregates quarries and mines are subject to regulation by the federal Mine Safety and Health Administration (“MSHA”) under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”). MSHA inspects the Company’s quarries and mines on a regular basis and issues various citations and orders when it believes a violation has occurred under the Mine Act. Whenever MSHA issues a citation or order, it also generally proposes a civil penalty, or fine, related to the alleged violation. Citations or orders may be contested and appealed, and as part of that process, are often reduced in severity and amount, and are sometimes dismissed.

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”), the Company is required to present information regarding certain mining safety and health citations which MSHA has issued with respect to its aggregates mining operations in its periodic reports filed with the Securities and Exchange Commission (“SEC”). In evaluating this information, consideration should be given to factors such as: (i) the number of citations and orders will vary depending on the size of the quarry or mine and types of operations (underground or surface), (ii) the number of citations issued will vary from inspector to inspector and location to location, and (iii) citations and orders can be contested and appealed, and in that process, may be reduced in severity and amount, and are sometimes dismissed.

The Company presents the following items regarding certain mining safety and health matters for the year ended December 30, 2017, as applicable:

· Total number of violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a mine safety or health hazard under Section 104 of the Mine Act for which the Company has received a citation from MSHA (hereinafter, “Section 104 S&S Citations”). If MSHA determines that a violation of a mandatory health or safety standard is likely to result in a reasonably serious injury or illness under the unique circumstance contributed to by the violation, MSHA will classify the violation as a “significant and substantial” violation (commonly referred to as a “S&S” violation). MSHA inspectors will classify each citation or order written as a “S&S” violation or not.

· Total number of orders issued under Section 104(b) of the Mine Act (hereinafter, “Section 104(b) Orders”). These orders are issued for situations in which MSHA determines a previous violation covered by a Section 104(a) citation has not been totally abated within the prescribed time period, so a further order is needed to require the mine operator to immediately withdraw all persons (except authorized persons) from the affected area of a quarry or mine.

· Total number of citations and orders for unwarrantable failure of the mine operator to comply with mandatory health or safety standards under Section 104(d) of the Mine Act (hereinafter, “Section 104(d) Citations and Orders”). These violations are similar to those described above, but the standard is that the violation could significantly and substantially contribute to the cause and effect of a safety or health hazard, but the conditions do not cause imminent danger, and the MSHA inspector finds that the violation is caused by an unwarranted failure of the operator to comply with the health and safety standards.

· Total number of flagrant violations under Section 110(b)(2) of the Mine Act (hereinafter, “Section 110(b)(2) Violations”). These violations are penalty violations issued if MSHA determines that violations are “flagrant”, for which civil penalties may be assessed. A “flagrant” violation means a reckless or repeated failure to make reasonable efforts to eliminate a known violation of a mandatory health or safety standard that substantially and proximately caused, or reasonably could have been expected to cause, death or serious bodily injury.

· Total number of imminent danger orders issued under Section 107(a) of the Mine Act (hereinafter, “Section 107(a) Orders”). These orders are issued for situations in which MSHA determines an imminent danger exists in the quarry or mine and results in orders of immediate withdrawal of all persons (except certain authorized

persons) from the area of the quarry or mine affected by its condition until the imminent danger and the underlying conditions causing the imminent danger no longer exist.

· Total dollar value of proposed assessments from MSHA under the Mine Act. These are the amounts of proposed assessments issued by MSHA with each citation or order for the time period covered by the reports. Penalties are

assessed by MSHA according to a formula that considers a number of factors, including the mine operator’s history, size, negligence, gravity of the violation, good faith in trying to correct the violation promptly, and the effect of the penalty on the operator’s ability to continue in business.

· Total number of mining-related fatalities. Mines subject to the Mine Act are required to report all fatalities occurring at their facilities unless the fatality is determined to be “non-chargeable” to the mining industry. The final rules of the SEC require disclosure of mining-related fatalities at mines subject to the Mine Act. Only fatalities determined by MSHA not to be mining-related may be excluded.

· Receipt of written notice from MSHA of a pattern (or a potential to have such a pattern) of violations of mandatory health or safety standards that are of such nature as could have significantly and substantially contributed to the cause and effect of other mine health or safety hazards under Section 104(e) of the Mine Act. If MSHA determines that a mine has a “pattern” of these types of violations, or the potential to have such a pattern, MSHA is required to notify the mine operator of the existence of such a thing.

· Legal actions before the Federal Mine Safety and Health Review Commission (the “Commission”) pending as of the last day of period.

· Legal actions before the Commission initiated during period.

· Legal actions before the Commission resolved during period.

The Commission is an independent adjudicative agency that provides administrative trial and appellate review of legal disputes arising under the Mine Act. The cases may involve, among other questions, challenges by operators to citations, orders and penalties they have received from MSHA, or complaints of discrimination by miners under Section 105 of the Mine Act. There were no legal actions pending before the Commission for any of the Company’s quarries or mines, as of or during the year ended December 30, 2017.

Appendix 1 follows.

Appendix 1

										Total				Received
					Total					Dollar		Total	Received	Written			Total
					Number of					Value of		Number of	Written	Notice of			Dollar		Number of
					Section 104	Section 104(b)	Section 104(d)			Proposed		Mining	Notice Under	Potential	Number of	Number of	Value of		Complaints of
				Number of	S&S	Citations and	Citations and	Section 110(b)(2)	Section 107(a)	MSHA		Related	Section 104(e)	Violation under	Contested	Contested	Penalties in		Discharge or
Name of Company	Name or Operation	MSHA ID	State	Inspections	Citation	Orders	Orders	Violations	Orders	Assessments		Fatalities	(yes/no)	104€ (yes/no)	Citations	Penalties	Contest		Discrimination
Alleyton Resources	4L Ranch	4104416	TX	1	-	-	-	-	-	$	-	-	No	No	-	-	$	-	-
Alleyton Resources	Altair Plant	4104375	TX	2	-	-	-	-	-		236	-	No	No	-	-		-	-
Alleyton Resources	Duncan Plant	4105187	TX	2	-	-	-	-	-		232	-	No	No	-	-		-	-
Alleyton Resources	Monahan	4104552	TX	2	-	-	-	-	-		354	-	No	No	-	-		-	-
Alleyton Resources	Potter Plant	4104987	TX	3	-	-	-	-	-		464	-	No	No	-	-		-	-
Alleyton Resources	Smith Plant	4105210	TX	3	-	-	-	-	-		234	-	No	No	-	-		-	-
Alleyton Resources	Vox Plant	4105081	TX	2	1	-	-	-	-		-	-	No	No	-	-		-	-
American Materials	Bailey Mine	3102289	NC	3	-	-	-	-	-		116	-	No	No	-	-		-	-
American Materials	Black Creek Sand Mine	3800722	SC	2	-	-	-	-	-		-	-	No	No	-	-		-	-
American Materials	CAROLINA SAND INC. #230	3800621	SC	3	-	-	-	-	-		688	-	No	No	-	-		-	-
American Materials	CAROLINA SAND INC. #240	3800608	SC	2	-	-	-	-	-		-	-	No	No	-	-		-	-
American Materials	CAROLINA SAND INC. #250	3800673	SC	2	-	-	-	-	-		-	-	No	No	-	-		-	-
American Materials	Dupree Mine	3102282	NC	2	-	-	-	-	-		-	-	No	No	-	-		-	-
American Materials	IVANHOE PIT	3102011	NC	6	3	-	-	-	-		1,908	-	No	No	-	-		-	-
American Materials	Pinner Mine	3102105	NC	-	-	-	-	-	-		-	-	No	No	-	-		-	-
American Materials	Richardson Mine	3800719	SC	3	-	-	-	-	-		116	-	No	No	-	-		-	-
American Materials	Sumter County Sand	3800575	SC	2	1	-	-	-	-		336	-	No	No	-	-		-	-
American Materials	Wade Mine	3102089	NC	3	-	-	-	-	-		244	-	No	No	-	-		-	-
Austin Materials	Hays Quarry	4104514	TX	3	1	-	-	-	-		1,373	-	No	No	-	-		-	-
Austin Materials	Ramming Pit	4104807	TX	1	-	-	-	-	-		971	-	No	No	-	-		-	-
Boxley Materials	Boxley Aggregates-Blue Ridge Plant	4400014	VA	2	1	-	-	-	-		191	-	No	No	-	-		-	-
Boxley Materials	Boxley Aggregates-Fieldale Plant	4400074	VA	3	-	-	-	-	-		644	-	No	No	-	-		-	-
Boxley Materials	Boxley Aggregates-Lawyers Rd Plt	4400015	VA	3	-	-	-	-	-		928	-	No	No	-	-		-	-
Boxley Materials	Boxley Aggregates-Mt Athos Plant	4400106	VA	2	-	-	-	-	-		116	-	No	No	-	-		-	-
Boxley Materials	Boxley Aggregates-Piney River Plant	4400035	VA	3	1	-	-	-	-		929	-	No	No	-	-		-	-
Boxley Materials	Boxley Aggregates-Rich Patch Quarry	4406897	VA	3	1	-	-	-	-		348	-	No	No	-	-		-	-
Boxley Materials	Broad River Crushed Stone, LLC	0901225	GA	2	1	-	-	-	-		464	-	No	No	-	-		-	-
Boxley Materials	McLanahan Crushed Stone	0900050	GA	2	1	-	-	-	-		492	-	No	No	-	-		-	-
Boxley Materials	PSC1 - EXTEC 5000S Screen	4404196	VA	1	-	-	-	-	-		-	-	No	No	-	-		-	-
Con-Agg of MO	Boon Quarries East	2300078	MO	4	2	-	-	-	-		1,567	-	No	No	-	-		-	-
Con-Agg of MO	Boon Quarries West	2300022	MO	1	-	-	-	-	-		116	-	No	No	-	-		-	-
Con-Agg of MO	Boone Quarries Jeff City BQJC	2302221	MO	3	1	-	-	-	-		-	-	No	No	2	2		-	-
Con-Agg of MO	Boone Quarries-North Telsmith Plant	2301894	MO	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Con-Agg of MO	Boonville Quarry	2300097	MO	2	-	-	-	-	-		348	-	No	No	-	-		-	-
Con-Agg of MO	Con-Agg LLC dba Boone Quarries	2302153	MO	3	3	-	-	-	-		1,761	-	No	No	-	-		-	-
Con-Agg of MO	Huntsville Quarry	2302004	MO	1	-	-	-	-	-		232	-	No	No	1	1		1,944	-
Con-Agg of MO	Marshall Junction Quarry	2301253	MO	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Con-Agg of MO	Marshall Quarry	2300099	MO	3	1	-	-	-	-		6,732	-	No	No	-	-		-	-
Con-Agg of MO	Norris Quarries Plant # 1	2301929	MO	2	-	-	-	-	-		232	-	No	No	-	-		116	-
Con-Agg of MO	Norris Quarries Plant #2	2302399	MO	3	-	-	-	-	-		-	-	No	No	-	-		-	-
Con-Agg of MO	Norris Quarries Plant #3	2301930	MO	1	-	-	-	-	-		116	-	No	No	-	-		-	-
Con-Agg of MO	Plant # 65	2301922	MO	1	-	-	-	-	-		232	-	No	No	-	-		-	-
Con-Agg of MO	plant # 80	2302071	MO	1	1	-	-	-	-		556	-	No	No	3	3		-	-
Con-Agg of MO	Plant # 81	2302296	MO	1	-	-	-	-	-		116	-	No	No	-	-		-	-
Con-Agg of MO	Plant #83	2302338	MO	3	-	-	-	-	-		232	-	No	No	-	-		-	-
Concrete Supply	Oakland Sand River Plant	1401742	KS	3	1	-	-	-	-		508	-	No	No	1	1		392	-
Concrete Supply	Silver Lake Plant	1401702	KS	1	-	-	-	-	-		580	-	No	No	-	-		-	-
Continental Cement Company	Davenport Plant	1300125	IA	10	17	-	-	-	-		22,703	-	No	No	9	9		12,119	-
Continental Cement Company	Hannibal Plant	2300217	MO	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Continental Cement Company	Hannibal Underground	2302434	MO	11	6	-	-	-	-		14,655	-	No	No	4	4		27,572	-
Continental Cement Company	Owensville Plant	2301038	MO	2	-	-	-	-	-		348	-	No	No	-	-		-	-
Cornejo & Sons	Durbin Quarry	1401719	KS	5	-	-	-	-	-		1,464	-	No	No	-	-		-	-
Cornejo & Sons	Grove	1401539	KS	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Cornejo & Sons	Kingsbury	1400624	KS	3	-	-	-	-	-		232	-	No	No	-	-		-	-
Cornejo & Sons	Oxford Sand and Gravel	1400522	KS	6	1	-	-	-	-		1,671	-	No	No	-	-		-	-
Cornejo & Sons	Wichita Sand and Gravel	1400543	KS	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Hamm, Inc	85.9	1401759	KS	-	-	-	-	-	-		-	-	No	No	-	-		-	-

Hamm, Inc	Herington Airport	1401698	KS	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Hamm, Inc	Plant # 80002	1401583	KS	1	-	-	-	-	-	-	-	No	No	1	1	460	-
Hamm, Inc	Plant # 80003	1401474	KS	1	-	-	-	-	-	405	-	No	No	-	-	-	-
Hamm, Inc	Plant # 80010	1401687	KS	1	-	-	-	-	-	-	-	No	No	-	-	-	-
Hamm, Inc	Plant # 80011	1401470	KS	2	1	-	-	-	-	348	-	No	No	-	-	-	-
Hamm, Inc	Plant # 80013	1401609	KS	1	-	-	-	-	-	116	-	No	No	-	-	-	-
Hamm, Inc	Plant #80006	1401471	KS	2	-	-	-	-	-	348	-	No	No	-	-	-	-
Hamm, Inc	Plant #80012	1401472	KS	1	-	-	-	-	-	-	-	No	No	-	-	-	-
Hamm, Inc	Plant #81038	1401709	KS	2	-	-	-	-	-	-	-	No	No	-	-	-	-
Hinkle Contracting Company	Allen Co. Stone	1500063	KY	4	-	-	-	-	-	-	-	No	No	-	-	-	-
Hinkle Contracting Company	Barren Co Stone	1506863	KY	4	-	-	-	-	-	-	-	No	No	-	-	-	-
Hinkle Contracting Company	Bassett Stone Company	1500004	KY	3	-	-	-	-	-	232	-	No	No	-	-	-	-
Hinkle Contracting Company	Bourbon Limestone Company	1518415	KY	6	1	-	-	-	-	1,045	-	No	No	-	-	-	-
Hinkle Contracting Company	Casey Stone Company	1500012	KY	3	-	-	-	-	-	116	-	No	No	-	-	-	-
Hinkle Contracting Company	Cave Run Stone	1507194	KY	5	-	-	-	-	-	488	-	No	No	-	-	-	-
Hinkle Contracting Company	Ewing Stone	4400234	VA	3	-	-	-	-	-	521	-	No	No	-	-	-	-
Hinkle Contracting Company	Glass Sand and Gravel	1504261	KY	3	-	-	-	-	-	-	-	No	No	-	-	-	-
Hinkle Contracting Company	Hart County Stone Company	1500035	KY	2	-	-	-	-	-	-	-	No	No	-	-	-	-
Hinkle Contracting Company	Jellico Stone Company	4000057	TN	2	-	-	-	-	-	116	-	No	No	-	-	-	-
Hinkle Contracting Company	Lake Cumberland Stone	1500099	KY	4	1	-	-	-	-	612	-	No	No	-	-	-	-
Hinkle Contracting Company	Lynches River Quarry	3800715	SC	5	3	-	-	-	-	9,016	-	No	No	-	-	-	-
Hinkle Contracting Company	Monroe Co. Stone	1500101	KY	3	-	-	-	-	-	-	-	No	No	-	-	-	-
Hinkle Contracting Company	Natural Bridge Stone	1500075	KY	4	1	-	-	-	-	909	-	No	No	-	-	-	-
Hinkle Contracting Company	Pulaski Stone Company	1519092	KY	1	-	-	-	-	-	-	-	No	No	-	-	-	-
Hinkle Contracting Company	Somerset Stone Company	1500094	KY	4	-	-	-	-	-	-	-	No	No	-	-	-	-
Hinkle Contracting Company	Tipton Ridge Quarry	1500019	KY	5	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Black Canyon 2100	1002146	ID	2	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Crusher 2	0504645	CO	1	-	-	-	-	-	116	-	No	No	-	-	-	-
Kilgore Companies	Crusher 3	0504593	CO	2	-	-	-	-	-	116	-	No	No	-	-	-	-
Kilgore Companies	Crusher1	0504296	CO	1	2	-	-	-	-	432	-	No	No	-	-	-	-
Kilgore Companies	Elam Construction Inc	0504593	CO	2	-	-	-	-	-	116	-	No	No	-	-	-	-
Kilgore Companies	ESG Portable 1	0505047	CO	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Extec S-5 Track Mounted Screen sn9617	0502366	CO	1	-	-	-	-	-	116	-	No	No	-	-	-	-
Kilgore Companies	Grey Goose	0503869	CO	2	1	-	-	-	-	1,397	-	No	No	-	-	-	-
Kilgore Companies	Highland Pit	4200941	UT	2	1	-	-	-	-	693	-	No	No	1	1	577	-
Kilgore Companies	HP 300	0504594	CO	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	KC-Portable 2 (WY)	4801625	WY	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	KC-Portable 3 (WY)	4801626	WY	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Kolberg Portable Belt & Grizzly	4202384	UT	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Lewis & Lewis, Inc Pit #2	4801482	WY	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Maryland Creek	0503800	CO	2	6	-	-	-	1	13,786	-	No	No	-	-	-	-
Kilgore Companies	Metso LT106Track Mounted Jaw Crusher	0504872	CO	1	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Mona Pit	4202212	UT	2	-	-	-	-	-	812	-	No	No	-	-	-	-
Kilgore Companies	Parleys Stone	4202102	UT	2	-	-	-	-	-	116	-	No	No	-	-	-	-
Kilgore Companies	Portable 1	4202528	UT	1	1	-	-	-	-	649	-	No	No	-	-	-	-
Kilgore Companies	Portable 2	4201479	UT	2	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Portable 3	4201823	UT	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Portable 4	4202465	UT	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Portable Crusher G	4202360	UT	1	1	-	-	-	-	707	-	No	No	-	-	-	-
Kilgore Companies	Portable Crusher K	4202523	UT	1	-	-	-	-	-	116	-	No	No	-	-	-	-
Kilgore Companies	PORTABLE CRUSHER UNIT B	4201963	UT	1	1	-	-	-	-	492	-	No	No	-	-	-	-
Kilgore Companies	Portable Crusher, Unit F	4202042	UT	2	1	-	-	-	-	1,225	-	No	No	-	-	-	-
Kilgore Companies	Powerscreen 2100-2	1002147	ID	2	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Rental Plant 1	0504616	CO	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Roadrunner Screen	1001916	ID	-	-	-	-	-	-	-	-	No	No	-	-	-	-

Kilgore Companies	Sierra Ready Mix Quarry Site	2602594	NV	2	3	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Snowstorm Portable Plant	0501013	CO	2	-	-	-	-	-	361	-	No	No	-	-	-	-
Kilgore Companies	Stockton Pit	4202480	UT	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Valley Pit	4200400	UT	3	-	-	-	-	-	126	-	No	No	-	-	-	-
Kilgore Companies	Washplant 1	0504873	CO	1	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Washplant 2`	0504746	CO	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Washplant 3	0504565	CO	1	-	-	-	-	-	116	-	No	No	-	-	-	-
Kilgore Companies	Washplant 4	0503809	CO	5	1	-	-	-	-	1,553	-	No	No	-	-	-	-
Kilgore Companies	West Valley	4201980	UT	3	-	-	-	-	-	291	-	No	No	-	-	-	-
RK Hall Construction	Kirby Crusher #15	0301958	AR	-	-	-	-	-	-	-	-	No	No	-	-	100	-
RK Hall Construction	Pope's Point	3401930	OK	2	3	-	-	-	-	-	-	No	No	2	2	-	-
RK Hall Construction	Sawyer Plant	3401950	OK	3	3	-	-	-	-	1,400	-	No	No	-	-	100	-
Troy Vines	Vines Portable Plant	4103607	TX	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Troy Vines	Vines Sand and Gravel	4103348	TX	-	-	-	-	-	-	-	-	No	No	-	-	-	-

EX-99.1

Exhibit 99.1

Report of Independent Registered Public Accounting Firm

To the stockholders and board of directors
Summit Materials, LLC:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Summit Materials, LLC and subsidiaries (the “Company”) as of December 30, 2017 and December 31, 2016, the related consolidated statements of operations, comprehensive loss, changes in redeemable noncontrolling interest and members’ interest, and cash flows for each of the fiscal years ended December 30, 2017, December 31, 2016 and January 2, 2016,and the related notes (collectively, the “consolidated financial statements”).  In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 30, 2017 and December 31, 2016, and the results of its operations and its cash flows for each of the fiscal years ended December 30, 2017, December 31, 2016 and January 2, 2016, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

 /s/ KPMG LLP

We have served as the Company’s auditor since 2012.

Denver, Colorado

February 14, 2018

SUMMIT MATERIALS, LLC AND SUBSIDIARIES

Consolidated Balance Sheets

December 30, 2017 and December 31, 2016

(In thousands)

	2017		2016
Assets
Current assets:
Cash and cash equivalents	$	383,556	$	142,672
Accounts receivable, net		198,330		162,377
Costs and estimated earnings in excess of billings		9,512		7,450
Inventories		184,439		157,679
Other current assets		7,764		12,800
Total current assets		783,601		482,978
Property, plant and equipment		1,615,424		1,446,452
Goodwill		1,037,320		782,212
Intangible assets		16,833		17,989
Other assets		51,063		46,789
Total assets	$	3,504,241	$	2,776,420
Liabilities and Member’s Interest
Current liabilities:
Current portion of debt	$	4,765	$	6,500
Current portion of acquisition-related liabilities		11,587		21,663
Accounts payable		100,637		81,610
Accrued expenses		116,274		110,473
Billings in excess of costs and estimated earnings		15,750		15,456
Total current liabilities		249,013		235,702
Long-term debt		1,810,833		1,514,456
Acquisition-related liabilities		52,239		25,161
Other noncurrent liabilities		100,562		124,708
Total liabilities		2,212,647		1,900,027
Commitments and contingencies (see note 15)
Member’s equity		1,359,760		1,087,558
Accumulated deficit		(51,031)		(185,099)
Accumulated other comprehensive loss		(17,135)		(27,444)
Member’s interest		1,291,594		875,015
Noncontrolling interest		—		1,378
Total member’s interest		1,291,594		876,393
Total liabilities and member’s interest	$	3,504,241	$	2,776,420

See accompanying notes to consolidated financial statements.

2

SUMMIT MATERIALS, LLC AND SUBSIDIARIES

Consolidated Statements of Operations

Years ended December 30, 2017, December 31, 2016, and January 2, 2016

(In thousands)

	2017		2016		2015
Revenue:
Product	$	1,449,936	$	1,223,008	$	1,043,843
Service		302,473		265,266		246,123
Net revenue		1,752,409		1,488,274		1,289,966
Delivery and subcontract revenue		180,166		137,789		142,331
Total revenue		1,932,575		1,626,063		1,432,297
Cost of revenue (excluding items shown separately below):
Product		898,281		751,419		676,074
Service		203,330		182,584		171,857
Net cost of revenue		1,101,611		934,003		847,931
Delivery and subcontract cost		180,166		137,789		142,331
Total cost of revenue		1,281,777		1,071,792		990,262
General and administrative expenses		242,670		243,512		177,769
Depreciation, depletion, amortization and accretion		179,518		149,300		119,723
Transaction costs		7,733		6,797		9,519
Operating income		220,877		154,662		135,024
Interest expense		107,655		96,483		83,757
Loss on debt financings		4,815		—		71,631
Other (income) expense, net		(5,289)		1,374		(2,042)
Income (loss) from operations before taxes		113,696		56,805		(18,322)
Income tax benefit		(20,345)		(5,282)		(18,263)
Income (loss) from continuing operations		134,041		62,087		(59)
Income from discontinued operations		—		—		(2,415)
Net income		134,041		62,087		2,356
Net (loss) income attributable to noncontrolling interest		(27)		16		(1,826)
Net income attributable to member of Summit LLC	$	134,068	$	62,071	$	4,182

See accompanying notes to consolidated financial statements.

3

SUMMIT MATERIALS, LLC AND SUBSIDIARIES

Consolidated Statements of Comprehensive Loss

Years ended December 30, 2017, December 31, 2016, and January 2, 2016

(In thousands)

	2017		2016		2015
Net income	$	134,041	$	62,087	$	2,356
Other comprehensive income (loss):
Postretirement curtailment adjustment		429		—		—
Postretirement liability adjustment		699		426		2,123
Foreign currency translation adjustment		7,768		2,125		(14,099)
Income (loss) on cash flow hedges		1,413		(1,529)		(944)
Other comprehensive income (loss):		10,309		1,022		(12,920)
Comprehensive income		144,350		63,109		(10,564)
Less comprehensive (loss) income attributable to the noncontrolling interest in consolidated subsidiaries		(27)		16		(1,826)
Comprehensive income (loss) attributable to member of Summit LLC	$	144,377	$	63,093	$	(8,738)

See accompanying notes to consolidated financial statements.

4

SUMMIT MATERIALS, LLC AND SUBSIDIARIES

Consolidated Statements of Cash Flows

Years ended December 30, 2017, December 31, 2016, and January 2, 2016

(In thousands)

	2017		2016		2015
Cash flow from operating activities:
Net income	$	134,041	$	62,087	$	2,356
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, amortization and accretion		192,213		159,579		124,147
Share-based compensation expense		21,140		49,940		19,899
Net gain on asset disposals		(7,638)		(3,102)		(23,087)
Non-cash loss on debt financings		3,856		—		(9,877)
Change in deferred tax asset, net		(23,070)		(8,572)		(19,838)
Other		(2,359)		(1,282)		(1,629)
(Increase) decrease in operating assets, net of acquisitions:
Accounts receivable, net		(3,720)		2,511		3,852
Inventories		(18,609)		(10,297)		4,275
Costs and estimated earnings in excess of billings		(1,825)		(2,684)		6,604
Other current assets		8,703		(5,518)		11,438
Other assets		(3,103)		1,976		(1,369)
Increase (decrease) in operating liabilities, net of acquisitions:
Accounts payable		8,040		(5,706)		(4,241)
Accrued expenses		(6,230)		12,064		(14,354)
Billings in excess of costs and estimated earnings		109		700		1,313
Other liabilities		(6,416)		(6,819)		(1,286)
Net cash provided by operating activities		295,132		244,877		98,203
Cash flow from investing activities:
Acquisitions, net of cash acquired		(374,930)		(336,958)		(510,017)
Purchases of property, plant and equipment		(194,146)		(153,483)		(88,950)
Proceeds from the sale of property, plant and equipment		17,072		16,868		13,110
Other		(471)		2,921		1,510
Net cash used for investing activities		(552,475)		(470,652)		(584,347)
Cash flow from financing activities:
Capital contributions by member		304,541		27,377		507,766
Capital issuance costs		(627)		(136)		(12,930)
Proceeds from stock option exercises		—		—
Proceeds from debt issuances		302,000		354,000		1,748,875
Debt issuance costs		(6,416)		(5,801)		(14,246)
Payments on debt		(16,438)		(120,702)		(1,505,486)
Purchase of noncontrolling interests		(532)		—		—
Payments on acquisition-related liabilities		(32,150)		(29,540)		(18,056)
Distributions		(51,986)		(42,192)		(46,603)
Other		(866)		(16)		—
Net cash provided by financing activities		497,526		182,990		659,320
Impact of foreign currency on cash		701		69		(1,003)
Net increase (decrease) in cash		240,884		(42,716)		172,173
Cash and cash equivalents – beginning of period		142,672		185,388		13,215
Cash and cash equivalents – end of period	$	383,556	$	142,672	$	185,388

See accompanying notes to consolidated financial statements.

5

SUMMIT MATERIALS, LLC AND SUBSIDIARIES

Consolidated Statements of Changes in Redeemable Noncontrolling Interest and Members’ Interest

Years ended December 30, 2017, December 31, 2016, and January 2, 2016

(In thousands)

	Total Member’s Interest
					Accumulated
					other				Total		Redeemable
	Member’s		Accumulated		comprehensive		Noncontrolling		member’s		noncontrolling
	equity		deficit		loss		interest		interest		interest
Balance — December 27, 2014	$	518,647	$	(217,416)	$	(15,546)	$	1,298	$	286,983	$	33,740
Net contributed capital		558,939		—		—		—		558,939		—
Accretion/ redemption value adjustment		—		(32,252)		—		—		(32,252)		(31,850)
Net income		—		4,182		—		64		4,246		(1,890)
Other comprehensive loss		—		—		(12,920)		—		(12,920)		—
Distributions		(46,603)		—		—		—		(46,603)		—
Share-based compensation		19,899		—		—		—		19,899		—
Balance — January 2, 2016	$	1,050,882	$	(245,486)	$	(28,466)	$	1,362	$	778,292	$	—
Net contributed capital		27,260		—		—		—		27,260		—
Net loss		—		62,071		—		16		62,087		—
Other comprehensive income		—		—		1,022		—		1,022		—
Distributions		(42,192)		—		—		—		(42,192)		—
Share-based compensation		51,624		(1,684)		—		—		49,940		—
Other		(16)		—		—		—		(16)		—
Balance — December 31, 2016	$	1,087,558	$	(185,099)	$	(27,444)	$	1,378	$	876,393	$	—
Net contributed capital		303,914		—		—		—		303,914		—
Net income (loss)		—		134,068		—		(27)		134,041		—
Other comprehensive income		—		—		10,309		—		10,309		—
Distributions		(51,986)		—		—		—		(51,986)		—
Share-based compensation		21,140		—		—		—		21,140		—
Purchase of noncontrolling interest		—		—		—		(1,148)		(1,148)		—
Other		(866)		—		—		(203)		(1,069)		—
Balance — December 30, 2017	$	1,359,760	$	(51,031)	$	(17,135)	$	—	$	1,291,594	$	—

See accompanying notes to consolidated financial statements.

6

SUMMIT MATERIALS, LLC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in tables in thousands, unless otherwise noted)

(1) Summary of Organization and Significant Accounting Policies

Summit Materials, LLC (“Summit LLC” and, together with its subsidiaries, the “Company”) is a vertically integrated, construction materials company. The Company is engaged in the production and sale of aggregates, cement, ready-mix concrete, asphalt paving mix and concrete products and owns and operates quarries, sand and gravel pits, two cement plants, cement distribution terminals, ready-mix concrete plants, asphalt plants and landfill sites. It is also engaged in paving and related services. The Company’s three operating and reporting segments are the West, East and Cement segments.

Substantially all of the Company’s products and services are produced, consumed and performed outdoors, primarily in the spring, summer and fall. Seasonal changes and other weather-related conditions can affect the production and sales volumes of its products and delivery of services. Therefore, the financial results for any interim period are typically not indicative of the results expected for the full year. Furthermore, the Company’s sales and earnings are sensitive to national, regional and local economic conditions and to cyclical changes in construction spending, among other factors.

Summit LLC is a wholly owned indirect subsidiary of Summit Materials Holdings L.P. (“Summit Holdings”), whose primary owner is Summit Materials, Inc. (“Summit Inc.”). Summit Inc. was formed as a Delaware corporation on September 23, 2014. Its sole material asset is a controlling equity interest in Summit Holdings. Pursuant to a reorganization into a holding company structure (the “Reorganization”) in connection with Summit Inc.’s March 2015 initial public offering, Summit Inc. became a holding corporation operating and controlling all of the business and affairs of Summit Holdings and its subsidiaries, including Summit LLC.

Principles of Consolidation–The consolidated financial statements include the accounts of Summit LLC and its majority owned subsidiaries. All intercompany balances and transactions have been eliminated. The Company attributes consolidated member’s interest and net income separately to the controlling and noncontrolling interests. Noncontrolling interests in consolidated subsidiaries represent a 20% ownership in Ohio Valley Asphalt, LLC and, prior to the initial public offering (“IPO”) and concurrent purchase of the noncontrolling interests Continental Cement Company, L.L.C. (“Continental Cement”), a 30% redeemable ownership in Continental Cement. The Company accounts for investments in entities for which it has an ownership of 20% to 50% using the equity method of accounting. In the fourth quarter of 2017, we purchased the remaining noncontrolling interest in Ohio Valley Asphalt, LLC.

The Company’s fiscal year is based on a 52-53 week year with each quarter composed of 13 weeks ending on a Saturday. The 53-week year occurs approximately once every seven years and occurred in 2015. The additional week in the 53-week year was included in the fourth quarter of 2015.

Use of Estimates— Preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities and reported amounts of revenue and expenses. Such estimates include the valuation of accounts receivable, inventories, valuation of deferred tax assets, goodwill, intangibles and other long-lived assets, pension and other postretirement obligations and asset retirement obligations. Estimates also include revenue earned on contracts and costs to complete contracts. Most of the Company’s paving and related services are performed under fixed unit-price contracts with state and local governmental entities. Management regularly evaluates its estimates and assumptions based on historical experience and other factors, including the current economic environment. As future events and their effects cannot be determined with precision, actual results can differ significantly from estimates made. Changes in estimates, including those resulting from continuing changes in the economic environment, are reflected in the Company’s consolidated financial statements when the change in estimate occurs.

Business and Credit Concentrations—The Company’s operations are conducted primarily across 23 U.S. states and in British Columbia, Canada, with the most significant revenue generated in Texas, Utah, Kansas and Missouri. The

7

Company’s accounts receivable consist primarily of amounts due from customers within these areas. Therefore, collection of these accounts is dependent on the economic conditions in the aforementioned states, as well as specific situations affecting individual customers. Credit granted within the Company’s trade areas has been granted to many customers and management does not believe that a significant concentration of credit exists with respect to any individual customer or group of customers. No single customer accounted for more than 10% of the Company’s total revenue in 2017, 2016 or 2015.

Accounts Receivable—Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the collectability of individual accounts. In establishing the allowance, management considers historical losses adjusted to take into account current market conditions and its customers’ financial condition, the amount of receivables in dispute, the current receivables aging and current payment terms. Balances that remain outstanding after reasonable collection efforts are exercised are written off through a charge to the valuation allowance.

The balances billed but not paid by customers, pursuant to retainage provisions included in contracts, are generally due upon completion of the contracts.

Revenue Recognition—We earn revenue from the sale of products, which primarily include aggregates, cement, ready-mix concrete and asphalt, but also include concrete products and plastics components, and from the provision of services, which are primarily paving and related services, but also include landfill operations, the receipt and disposal of waste that is converted to fuel for use in our cement plants and underground storage space rental.

Revenue for product sales is recognized when evidence of an arrangement exists, the fee is fixed or determinable, title passes, which is generally when the product is shipped, and collection is reasonably assured. Product revenue generally includes sales of aggregates, cement and other materials to customers, net of discounts or allowances or taxes, if any, and freight and delivery charges billed to customers. Freight and delivery charges associated with cement sales are recorded on a net basis together with freight costs within cost of sales.

Revenue from the receipt of waste fuels is recognized when the waste is accepted and a corresponding liability is recognized for the costs to process the waste into fuel for the manufacturing of cement or to ship the waste offsite for disposal in accordance with applicable regulations.

We account for revenue and earnings on our long-term paving and related services contracts as service revenue using the percentage-of-completion method of accounting. Under the percentage-of-completion method, we recognize paving and related services revenue as services are rendered. We estimate profit as the difference between total estimated revenue and total estimated cost of a contract and recognize that profit over the life of the contract based on input measures. We generally measure progress toward completion on long-term paving and related services contracts based on the proportion of costs incurred to date relative to total estimated costs at completion. We include revisions of estimated profits on contracts in earnings under the cumulative catch-up method, under which the effect of revisions in estimates is recognized immediately. If a revised estimate of contract profitability reveals an anticipated loss on the contract, we recognize the loss in the period it is identified.

The percentage-of-completion method of accounting involves the use of various estimating techniques to project costs at completion, and in some cases includes estimates of recoveries asserted against the customer for changes in specifications or other disputes. Contract estimates involve various assumptions and projections relative to the outcome of future events over multiple periods, including future labor productivity and availability, the nature and complexity of the work to be performed, the cost and availability of materials, the effect of delayed performance, and the availability and timing of funding from the customer. These estimates are based on our best judgment. A significant change in one or more of these estimates could affect the profitability of one or more of our contracts. We review our contract estimates regularly to assess revisions in contract values and estimated costs at completion.

We recognize revenue arising from claims either as income or as an offset against a potential loss only when the amount of the claim can be estimated reliably and its realization is probable. In evaluating these criteria, we consider the contractual basis for the claim, the cause of any additional costs incurred, the reasonableness of those costs and the objective evidence available to support the claim.

8

Inventories—Inventories consist of stone that has been removed from quarries and processed for future sale, cement, raw materials and finished concrete blocks. Inventories are valued at the lower of cost or market and are accounted for on a first-in first-out basis or an average cost basis. If items become obsolete or otherwise unusable or if quantities exceed what is projected to be sold within a reasonable period of time, they will be charged to costs of production in the period that the items are designated as obsolete or excess inventory. Stripping costs are costs of removing overburden and waste material to access aggregate materials and are expensed as incurred.

Property, Plant and Equipment, net—Property, plant and equipment are recorded at cost, less accumulated depreciation, depletion and amortization. Expenditures for additions and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Repair and maintenance costs that do not substantially expand productive capacity or extend the life of property, plant and equipment are expensed as incurred.

Landfill airspace is included in property, plant and equipment at cost and is amortized based on the portion of the airspace used during the period compared to the gross estimated value of available airspace, which is updated periodically as circumstances dictate. Management reassesses the landfill airspace capacity with any changes in value recorded in cost of revenue. Capitalized landfill costs include expenditures for the acquisition of land and related airspace, engineering and permitting costs, cell construction costs and direct site improvement costs.

Upon disposal of an asset, the cost and related accumulated depreciation are removed from the Company’s accounts and any gain or loss is included in general and administrative expenses.

The Company reviews the carrying value of property, plant and equipment for impairment whenever events or circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. Such indicators may include, among others, deterioration in general economic conditions, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows or a trend of negative or declining cash flows over multiple periods.

Property, plant and equipment is tested for impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. As a result, the property, plant and equipment impairment test is at a significantly lower level than the level at which goodwill is tested for impairment. In markets where the Company does not produce downstream products, such as ready-mix concrete, asphalt paving mix and paving and related services, the lowest level of largely independent identifiable cash flows is at the individual aggregates operation or a group of aggregates operations collectively serving a local market or the cement operations. Conversely, in vertically-integrated markets, the cash flows of the downstream and upstream businesses are not largely independently identifiable and the vertically-integrated operations are considered the lowest level of largely independent identifiable cash flows.

Accrued Mining and Landfill Reclamation—The mining reclamation reserve and financial commitments for landfill closure and post-closure activities are based on management’s estimate of future cost requirements to reclaim property at both currently operating and closed sites. Estimates of these obligations have been developed based on management’s interpretation of current requirements and proposed regulatory changes and are intended to approximate fair value. Costs are estimated in current dollars, inflated until the expected time of payment, and then discounted back to present value using a credit-adjusted, risk-free rate on obligations of similar maturity, adjusted to reflect the Company’s credit rating. Changes in the credit-adjusted, risk-free rate do not change recorded liabilities. However, subsequent increases in the recognized obligations are measured using a current credit-adjusted, risk-free rate. Decreases in the recognized obligations are measured at the initial credit-adjusted, risk-free rate.

Significant changes in inflation rates or the amount or timing of future cost estimates typically result in both (1) a current adjustment to the recorded liability (and corresponding adjustment to the asset) and (2) a change in accretion of the liability and depreciation of the asset to be recorded prospectively over the remaining capacity of the unmined quarry or landfill.

Goodwill—Goodwill represents the purchase price paid in excess of the fair value of net tangible and intangible assets acquired. Goodwill recorded in connection with the Company’s acquisitions is primarily attributable to the expected profitability, assembled workforces of the acquired businesses and the synergies expected to arise after the Company’s acquisition of those businesses. Goodwill is not amortized, but is tested annually for impairment as of the first day of the fourth quarter and at any time that events or circumstances indicate that goodwill may be impaired. A qualitative approach may first be applied to determine whether it is more likely than not that the estimated fair value of a

9

reporting unit is less than its carrying amount. If, as a result of the qualitative assessment, it is determined that an impairment is more likely than not, the two-step quantitative impairment test is then performed, otherwise further analysis is not required. The two-step impairment test first identifies potential goodwill impairment for each reporting unit and then, if necessary, measures the amount of the impairment loss.

Income Taxes—As a limited liability company, the Company’s federal and state income tax attributes are generally passed to its member. However, certain subsidiaries, or subsidiary groups, of the Company are taxable entities subject to income taxes in the United States and Canada, the provisions for which are included in the consolidated financial statements. Significant judgments and estimates are required in the determination of the consolidated income tax expense.

The Company’s deferred income tax assets and liabilities are computed for differences between the tax basis and financial statement amounts that will result in taxable or deductible amounts in the future. The computed deferred balances are based on enacted tax laws and applicable rates for the periods in which the differences are expected to affect taxable income. A valuation allowance is recognized for deferred tax assets if it is more likely than not that some portion or all of the net deferred tax assets will not be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines it would be able to realize its deferred tax assets for which a valuation allowance had been recorded then an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

The Company evaluates the tax positions taken on income tax returns that remain open and positions expected to be taken on the current year tax returns to identify uncertain tax positions. Unrecognized tax benefits on uncertain tax positions are recorded on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is more than 50 percent likely to be realized is recognized. Interest and penalties related to unrecognized tax benefits are recorded in income tax benefit.

New Accounting Standards — In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which prescribes a five-step model for revenue recognition that will replace most existing revenue recognition guidance in U.S. GAAP. The ASU will supersede nearly all existing revenue recognition guidance under U.S. GAAP and provides that an entity recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB postponed the effective date of the new revenue standard by one year to the first quarter of 2018. In applying these ASUs, an entity is permitted to use either the full retrospective or cumulative effect transition approach. We plan to adopt these ASU’s using the modified retrospective approach. We have evaluated the impact of adoption of these standards on our consolidated financial statements, which was not material.

In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business, which narrows the definition of a business. This ASU provides a screen to determine whether a group of assets constitutes a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated as acquisitions. If the screen is not met, this ASU (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output and (2) removes the evaluation of whether a market participant could replace missing elements. Although outputs are not required for a set to be a business, outputs generally are a key element of a business; therefore, the FASB has developed more stringent criteria for sets without outputs. The ASU is effective for public companies for annual periods beginning after December 15, 2017. The adoption of this ASU will not have a material impact on the consolidated financial statements.

In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires that the service cost component be reported in the same line item as employer compensation costs and that the other components of periodic pension costs be reported outside of

10

operating income. The ASU also restricts capitalization of costs to the service cost component. The ASU is effective for public companies for annual periods beginning after December 15, 2017. The Company early adopted this ASU as of the beginning of fiscal year 2017 on a retrospective basis; accordingly, the Company reclassified $278,000 and $383,000 from product cost of revenue to other income for the year ended December 31, 2016 and January 2, 2016, respectively, and $350,000 from general and administrative expenses to other income for the year ended December 31, 2016, to conform to the current year presentation.

In January 2017, the FASB issued ASU No. 2017-04 Intangibles - Goodwill and Other (Topic 350), which simplifies the test for goodwill impairment. The ASU eliminates the two step goodwill impairment test and replaces it with a single step test.  The single step test compares the carrying amount of a reporting unit to its fair value; if the carrying amount is greater than the fair value the difference is the amount of the goodwill impairment. Step zero is left unchanged. Therefore, entities that wish do a qualitative assessment are still permitted to do so. The ASU is effective for Securities and Exchange Commission (“SEC”) filers for fiscal years beginning after December 15, 2020. The Company early adopted this ASU as of the beginning of fiscal year 2017, which adoption did not have a material impact on our consolidated financial statements.

In March 2016, the FASB issued a new accounting standard with targeted amendments to the accounting for employee share-based payments. ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, requires that the income tax effect of share-based awards be recognized in the income statement and allows entities to elect an accounting method to recognize forfeitures as they occur or to estimate forfeitures, as is currently required. The ASU is effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. However, the Company early adopted this ASU as of the beginning of fiscal year 2016 and made an election to recognize forfeitures as they occur. The ASU adoption was applied using a modified retrospective method by means of a $1.7 million cumulative-effect adjustment to accumulated earnings as of the beginning of the fiscal year.

(2) Acquisitions

The Company has completed numerous acquisitions since its formation, which have been financed through a combination of debt and equity funding. The operations of each acquisition have been included in the Company’s consolidated results of operations since the respective closing dates of the acquisitions. The Company measures all assets acquired and liabilities assumed at their acquisition-date fair value. The following table summarizes the Company’s acquisitions by region and year:

	2017		2016		2015
West		6		3		3
East		8		5		—
Cement		—		1		1

The purchase price allocation for the 2017 acquisitions has not yet been finalized due to the recent timing of the acquisitions and status of the valuation of property, plant and equipment. The table below summarizes aggregated information regarding the fair values of the assets acquired and liabilities assumed as of the respective acquisition dates.

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Information related to the 2017 acquisitions is shown on an aggregated basis as the acquisitions were not material individually, or collectively.

	2017		2016
Financial assets (1)	$	31,615	$	22,204
Inventories		8,300		17,215
Property, plant and equipment		160,975		180,321
Intangible assets		161		5,531
Other assets		4,200		6,757
Financial liabilities (1)		(15,501)		(20,248)
Other long-term liabilities		(17,610)		(36,074)
Net assets acquired		172,140		175,706
Goodwill		247,536		176,319
Purchase price		419,676		352,025
Acquisition-related liabilities		(43,452)		(17,034)
Other		(1,294)		1,967
Net cash paid for acquisitions	$	374,930	$	336,958

(1) In the first quarter of 2017, we reclassified $1.2 million of accounts payable overdrafts from financial assets to financial liabilities for the year ended December 31, 2016.

Acquisition-Related Liabilities—A number of acquisition-related liabilities have been recorded subject to terms in the relevant purchase agreements, including deferred consideration and noncompete payments. Noncompete payments have been accrued where certain former owners of newly acquired companies have entered into standard noncompete arrangements. Subject to terms and conditions stated in these noncompete agreements, payments are generally made over a five-year period. Deferred consideration is purchase price consideration paid in the future as agreed to in the purchase agreement and is not contingent on future events. Deferred consideration is generally scheduled to be paid in years ranging from five to 20 years in annual installments. The remaining payments due under these noncompete and deferred consideration agreements are as follows:

2018	$	11,260
2019		6,687
2020		5,473
2021		5,458
2022		1,803
Thereafter		6,763
Total scheduled payments		37,444
Present value adjustments		(8,513)
Total noncompete obligations and deferred consideration	$	28,931

Accretion on the deferred consideration and noncompete obligations is recorded in interest expense.

(3) Goodwill

As of December 30, 2017, the Company had 12 reporting units with goodwill for which the annual goodwill impairment test was completed. We perform the annual impairment test on the first day of the fourth quarter each year. We initially perform a qualitative analysis. As a result of this analysis, it was determined that it is more likely than not that the fair value of five reporting units were greater than its carrying value. For the remaining reporting units we perform a two-step quantitative analysis. Step 1 of that analysis compares the estimated the fair value of the reporting units using an income approach (i.e., a discounted cash flow technique) and a market approach to the carrying value of the reporting unit. If the estimated fair value exceeds its carrying value, the goodwill of the reporting unit is not considered impaired. If the carrying value of the reporting unit exceeds its fair value, we proceed to the second step to measure the amount of potential impairment loss. Based on this analysis, it was determined that the reporting units’ fair values were greater than their carrying values and no impairment charges were recognized in 2017. The accumulated impairment charges recognized in periods prior to 2015 totaled $68.2 million.

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These estimates of a reporting unit’s fair value involve significant management estimates and assumptions, including but not limited to sales prices of similar assets, assumptions related to future profitability, cash flows, and discount rates. These estimates are based upon historical trends, management’s knowledge and experience and overall economic factors, including projections of future earnings potential. Developing discounted future cash flow estimates in applying the income approach required management to evaluate its intermediate to longer-term strategies, including, but not limited to, estimates about revenue growth, operating margins, capital requirements, inflation and working capital management. The development of appropriate rates to discount the estimated future cash flows required the selection of risk premiums, which can materially affect the present value of estimated future cash flows.

The following table presents goodwill by reportable segments and in total:

	West		East		Cement		Total
Balance, January 2, 2016	$	303,926	$	98,308	$	194,163	$	596,397
Acquisitions		29,006		145,109		10,375		184,490
Foreign currency translation adjustments		1,325		—		—		1,325
Balance, December 31, 2016	$	334,257	$	243,417	$	204,538	$	782,212
Acquisitions (1)		188,883		61,957		118		250,958
Foreign currency translation adjustments		4,150		—		—		4,150
Balance, December 30, 2017	$	527,290	$	305,374	$	204,656	$	1,037,320

(1) Reflects goodwill from 2017 acquisitions and working capital adjustments from prior year acquisitions.

(4) Revenue Recognition

Revenue for product sales are recognized when evidence of an arrangement exists, the fee is fixed or determinable, title passes, which is generally when the product is shipped, and collection is reasonably assured. Product revenue includes sales of aggregates, cement and other materials to customers, net of discounts, allowances or taxes, as applicable.

Revenue from construction contracts are included in service revenue and are recognized under the percentage-of-completion accounting method. The percent complete is measured by the cost incurred to date compared to the estimated total cost of each project. This method is used as management considers expended cost to be the best available measure of progress on these contracts, the majority of which are completed within one year, but may occasionally extend beyond one year. Inherent uncertainties in estimating costs make it at least reasonably possible that the estimates used will change within the near term and over the life of the contracts.

Contract costs include all direct material and labor costs and those indirect costs related to contract performance and completion. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are estimable. General and administrative costs are charged to expense as incurred.

Changes in job performance, job conditions and estimated profitability, including those arising from contract penalty provisions and final contract settlements, may result in revisions to costs and income. Such revisions are recognized in the period in which they are determined. An amount equal to contract costs incurred that are attributable to claims is included in revenue when realization is probable and the amount can be reliably estimated.

Costs and estimated earnings in excess of billings are composed principally of revenue recognized on contracts (on the percentage-of-completion method) for which billings had not been presented to customers because the amount were not billable under the contract terms at the balance sheet date. In accordance with the contract terms, the unbilled receivables at the balance sheet date will be billed in the subsequent year. Billings in excess of costs and estimated earnings represent billings in excess of revenue recognized.

Revenue from the receipt of waste fuels is classified as service revenue and is based on fees charged for the waste disposal, which is recognized when the waste is accepted. 

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Accounts receivable, net consisted of the following as of December 30, 2017 and December 31, 2016:

	2017		2016
Trade accounts receivable	$	187,528	$	152,845
Retention receivables		14,973		12,117
Receivables from related parties		468		721
Accounts receivable		202,969		165,683
Less: Allowance for doubtful accounts		(4,639)		(3,306)
Accounts receivable, net	$	198,330	$	162,377

Retention receivables are amounts earned by the Company but held by customers until paving and related service contracts and projects are near completion or fully completed. Amounts are generally billed and collected within one year.

(5) Inventories

Inventories consisted of the following as of December 30, 2017 and December 31, 2016:

	2017		2016
Aggregate stockpiles	$	126,791	$	103,073
Finished goods		34,667		35,071
Work in process		7,729		6,440
Raw materials		15,252		13,095
Total	$	184,439	$	157,679

(6) Property, Plant and Equipment, net and Intangibles, net

Property, plant and equipment, net consisted of the following as of December 30, 2017 and December 31, 2016:

	2017		2016
Land (mineral bearing) and asset retirement costs	$	274,083	$	227,558
Land (non-mineral bearing)		168,501		146,099
Buildings and improvements		170,615		160,638
Plants, machinery and equipment		1,068,007		965,522
Mobile equipment and barges		391,256		307,885
Truck and auto fleet		47,270		32,236
Landfill airspace and improvements		49,480		48,513
Office equipment		33,314		26,096
Construction in progress		44,739		16,459
Property, plant and equipment		2,247,265		1,931,006
Less accumulated depreciation, depletion and amortization		(631,841)		(484,554)
Property, plant and equipment, net	$	1,615,424	$	1,446,452

Depreciation on property, plant and equipment, including assets subject to capital leases, is generally computed on a straight-line basis. Depletion of mineral reserves is computed based on the portion of the reserves used during the period compared to the gross estimated value of proven and probable reserves, which is updated periodically as circumstances dictate. Leasehold improvements are amortized on a straight-line basis over the lesser of the asset’s useful life or the remaining lease term. The estimated useful lives are generally as follows:

Buildings and improvements	10 - 30	years
Plant, machinery and equipment	15 - 20	years
Office equipment	3 - 7	years
Truck and auto fleet	5 - 8	years
Mobile equipment and barges	6 - 8	years
Landfill airspace and improvements	10 - 30	years
Other	4 - 20	years

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Depreciation, depletion and amortization expense of property, plant and equipment was $174.4 million, $144.2 million and $111.6 million in the years ended December 30, 2017, December 31, 2016 and January 2, 2016, respectively.

Property, plant and equipment at December 30, 2017 and December 31, 2016 included $51.2 million and $49.8 million, respectively, of capital leases for certain equipment and a building with accumulated amortization of $18.5 million and $10.6 million, respectively. The equipment leases generally have terms of less than five years and the building lease had an original term of 30 years. Approximately $19.3 million and $11.8 million of the future obligations associated with the capital leases are included in accrued expenses as of December 30, 2017 and December 31, 2016, respectively, and the present value of the remaining capital lease payments, $16.4 million and $27.5 million, respectively, is included in other noncurrent liabilities on the consolidated balance sheets. Future minimum rental commitments under long-term capital leases are $20.5 million, $7.6 million, $5.9 million, $1.4 million, and $0.6 million for the years ended 2018, 2019, 2020, 2021 and 2022, respectively.

Assets are assessed for impairment charges when identified for disposition. Projected losses from disposition are recognized in the period in which they become estimable, which may be in advance of the actual disposition. The net gain from asset dispositions recognized in general and administrative expenses in fiscal years 2017, 2016 and 2015 was $7.5 million, $6.8 million and $23.5 million, respectively. No material impairment charges have been recognized on assets held for use in fiscal 2017, 2016 or 2015. The losses are commonly a result of the cash flows expected from selling the asset being less than the expected cash flows that could be generated from holding the asset for use.

Intangible Assets—The Company’s intangible assets are primarily composed of lease agreements and reserve rights. The assets related to lease agreements reflect the submarket royalty rates paid under agreements, primarily, for extracting aggregates. The values were determined as of the respective acquisition dates by a comparison of market-royalty rates to contract-royalty rates. The reserve rights relate to aggregate reserves to which the Company has the rights of ownership, but do not own the reserves. The intangible assets are amortized on a straight-line basis over the lives of the leases. The following table shows intangible assets by type and in total:

	December 30, 2017						December 31, 2016
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Leases	$	15,888	$	(4,178)	$	11,710	$	15,888	$	(3,382)	$	12,506
Reserve rights		6,234		(1,625)		4,609		8,706		(3,710)		4,996
Trade names		1,000		(758)		242		1,000		(658)		342
Other		409		(137)		272		249		(104)		145
Total intangible assets	$	23,531	$	(6,698)	$	16,833	$	25,843	$	(7,854)	$	17,989

Amortization expense in fiscal 2017, 2016 and 2015 was $1.3 million, $2.6 million and $2.2 million, respectively. The estimated amortization expense for intangible assets for each of the next five years and thereafter is as follows:

2018	$	1,281
2019		1,268
2020		1,185
2021		1,142
2022		1,113
Thereafter		10,844
Total	$	16,833

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(7) Accrued Expenses

Accrued expenses consisted of the following as of December 30, 2017 and December 31, 2016:

	2017		2016
Interest	$	24,095	$	22,991
Payroll and benefits		33,915		30,546
Capital lease obligations		19,276		11,766
Insurance		11,455		11,966
Non-income taxes		7,467		5,491
Professional fees		1,717		2,459
Other (1)		18,349		25,254
Total	$	116,274	$	110,473

(1) Consists primarily of subcontractor and working capital settlement accruals and deferred revenue.

(8) Debt

Debt consisted of the following as of December 30, 2017 and December 31, 2016:

	2017		2016
Term Loan, due 2024:
$635.4 million and $640.3 million, net of $1.6 million and $2.6 million discount at December 30, 2017 and December 31, 2016, respectively	$	633,805	$	637,658
81⁄2% Senior Notes, due 2022		250,000		250,000
61⁄8% Senior Notes, due 2023:
$650.0 million, net of $1.4 million and $1.6 million discount at December 30, 2017 and December 31, 2016, respectively		648,650		648,407
51⁄8% Senior Notes, due 2025		300,000		—
Total		1,832,455		1,536,065
Current portion of long-term debt		4,765		6,500
Long-term debt	$	1,827,690	$	1,529,565

The contractual payments of long-term debt, including current maturities, for the five years subsequent to December 30, 2017, are as follows:

2018	$	4,765
2019		6,354
2020		7,942
2021		6,354
2022		256,354
Thereafter		1,553,606
Total		1,835,375
Less: Original issue net discount		(2,920)
Less: Capitalized loan costs		(16,857)
Total debt	$	1,815,598

Senior Notes— On June 1, 2017, Summit LLC and Summit Materials Finance Corp., an indirect wholly-owned subsidiary of Summit LLC ("Finance Corp." and with Summit LLC, the “Issuers”) issued $300.0 million of 51⁄₈% senior notes due June 1, 2025 (the “2025 Notes”). The 2025 Notes were issued at 100.0% of their par value with proceeds of $295.4 million, net of related fees and expenses. The 2025 Notes were issued under an indenture dated June 1, 2017 (as amended and supplemented, the “2017 Indenture”). The 2017 Indenture contains covenants limiting, among other things, Summit LLC and its restricted subsidiaries’ ability to incur additional indebtedness or issue certain preferred shares, pay dividends, redeem stock or make other distributions, make certain investments, sell or transfer certain assets, create liens, consolidate, merge, sell or otherwise dispose of all or substantially all of its assets, enter inter certain transactions with affiliates, and designate subsidiaries as unrestricted subsidiaries. The 2017 Indenture also contains customary events of

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default. Interest on the 2025 Notes is payable semi-annually on June 1 and December 1 of each year commencing on December 1, 2017.

In 2016, the Issuers issued $250.0 million of 8.500% senior notes due April 15, 2022 (the “2022 Notes”).  The 2022 Notes were issued at 100.0% of their par value with proceeds of $246.3 million, net of related fees and expenses. The proceeds from the sale of the 2022 Notes were used to fund the acquisition of Boxley Materials Company, replenish cash used for the acquisition of American Materials Company and pay expenses incurred in connection with these acquisitions. The 2022 Notes were issued under an indenture dated March 8, 2016, the terms of which are generally consistent with the 2017 Indenture. Interest on the 2022 Notes is payable semi-annually in arrears on April 15 and October 15 of each year.

In 2015, the Issuers issued $650.0 million of 6.125% senior notes due July 2023 (the “2023 Notes” and collectively with the 2022 Notes and the 2025 Notes, the “Senior Notes”). Of the aggregate $650.0 million of 2023 Notes, $350.0 million were issued at par and $300.0 million were issued at 99.375% of par. The 2023 Notes were issued under an indenture dated July 8, 2015, the terms of which are generally consistent with the 2017 Indenture. Interest on the 2023 Notes is payable semi-annually in arrears on January 15 and July 15 of each year.

In April, August and November 2015, $288.2 million, $183.0 million and $153.8 million, respectively, in aggregate principal amount of the then outstanding 10 1/₂% senior notes due January 31, 2020 (the “2020 Notes”) were redeemed at a price equal to par plus an applicable premium and the indenture under which the 2020 Notes were issued was satisfied and discharged. As a result of the redemptions, net charges of $56.5 million were recognized for the year ended January 2, 2016. The fees included $66.6 million for the applicable prepayment premium and $11.9 million for the write-off of deferred financing fees, partially offset by $22.0 million of net benefit from the write-off of the original issuance net premium.

As of December 30, 2017 and December 31, 2016, the Company was in compliance with all financial covenants under the applicable indentures.

Senior Secured Credit Facilities— Summit LLC has credit facilities that provide for term loans in an aggregate amount of $650.0 million and revolving credit commitments in an aggregate amount of $235.0 million (the “Senior Secured Credit Facilities”). Under the Senior Secured Credit Facilities, required principal repayments of 0.25% of the refinanced aggregate amount of term debt are due on the last business day of each March, June, September and December, commencing with the March 2018 payment. The unpaid principal balance is due in full on the maturity date, which is November 21, 2024.

On January 19, 2017, Summit LLC entered into Amendment No. 1 (“Amendment No. 1”) to the credit agreement governing the Senior Secured Credit Facilities (the “Credit Agreement”), which, among other things, reduced the applicable margin in respect of then outstanding $640.3 million principal amount of term loans thereunder. All other material terms and provisions remain substantially identical to the terms and provisions in place immediately prior to the effectiveness of Amendment No. 1. On November 21, 2017, Summit LLC entered into Amendment No. 2 to the Credit Agreement, which, among other things, extended the maturity date from 2022 to 2024 and reduced the applicable margin in respect of the $635.4 million outstanding principal amount of term loans thereunder.

The revolving credit facility bears interest per annum equal to, at Summit LLC’s option, either (i) a base rate determined by reference to the highest of (a) the federal funds rate plus 0.50%, (b) the prime rate of Bank of America, N.A. and (c) LIBOR plus 1.00%, plus an applicable margin of 2.25% for base rate loans or (ii) a LIBOR rate determined by reference to Reuters prior to the interest period relevant to such borrowing adjusted for certain additional costs plus an applicable margin of 3.25% for LIBOR rate loans.

There were no outstanding borrowings under the revolving credit facility as of December 30, 2017 or December 31, 2016. As of December 30, 2017, we had remaining borrowing capacity of $218.9 million under the revolving credit facility, which is net of $16.1 million of outstanding letters of credit. The outstanding letters of credit are renewed annually and support required bonding on construction projects and the Company’s insurance liabilities.

Summit LLC’s Consolidated First Lien Net Leverage Ratio, as such term is defined in the Credit Agreement, should be no greater than 4.75:1.0 as of each quarter-end. As of December 30, 2017 and December 31, 2016, Summit LLC was in compliance with all financial covenants under the Credit Agreement.

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Summit LLC’s wholly-owned domestic subsidiary companies, subject to certain exclusions and exceptions, are named as subsidiary guarantors of the Senior Notes and the Senior Secured Credit Facilities. In addition, Summit LLC has pledged substantially all of its assets as collateral, subject to certain exclusions and exceptions, for the Senior Secured Credit Facilities.

The following table presents the activity for the deferred financing fees for the years ended December 30, 2017 and December 31, 2016: 

	Deferred financing fees
Balance—January 2, 2016	$	15,892
Loan origination fees		5,801
Amortization		(3,403)
Balance—December 31, 2016	$	18,290
Loan origination fees		6,416
Amortization		(3,990)
Write off of deferred financing fees		(1,683)
Balance—December 30, 2017	$	19,033

Other—On January 15, 2015, the Company’s wholly-owned subsidiary in British Columbia, Canada entered into an agreement with HSBC for a (i) $6.0 million Canadian dollar (“CAD”) revolving credit commitment to be used for operating activities that bears interest per annum equal to the bank’s prime rate plus 0.20%, (ii) $0.5 million CAD revolving credit commitment to be used for capital equipment that bears interest per annum at the bank’s prime rate plus 0.90% and (iii) $0.4 million CAD revolving credit commitment to provide guarantees on behalf of that subsidiary. There were no amounts outstanding under this agreement as of December 30, 2017 or December 31, 2016.

(9) Income Taxes

Summit LLC is a limited liability company and passes its tax attributes for federal and state tax purposes to its member and is generally not subject to federal or state income tax. However, certain subsidiaries, or subsidiary groups, file federal, state, and Canadian income tax returns due to their status as C corporations or laws within that jurisdiction. The provision for income taxes is primarily composed of federal, state and local income taxes for the subsidiary entities that have C corporation status.

As of December 30, 2017 and December 31, 2016, the Company has not recognized any liabilities for uncertain tax positions. The Company records interest and penalties as a component of the income tax provision. No material interest or penalties were recognized in income tax expense during the years ended December 30, 2017 and December 31, 2016.

For the years ended December 30, 2017, December 31, 2016 and January 2, 2016, income taxes consisted of the following:

	2017		2016		2015
Provision for income taxes:
Current	$	2,762	$	2,835	$	1,605
Deferred		(23,107)		(8,134)		(19,868)
Income tax benefit	$	(20,345)	$	(5,299)	$	(18,263)

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The effective tax rate on pre-tax income differs from the U.S. statutory rate of 35% due to the following:

	2017		2016		2015
Income tax expense (benefit) at federal statutory tax rate	$	39,797	$	19,882	$	(6,412)
Less: Income tax benefit at federal statutory tax rate for LLC entities		(36,171)		(21,042)		(9,908)
State and local income taxes		1,751		1,279		(2,389)
Permanent differences		(630)		(1,726)		2,147
Effective tax rate change		(24,243)		(1,432)		10
Valuation allowance		—		148		—
Other		(849)		(2,408)		(1,711)
Income tax benefit	$	(20,345)	$	(5,299)	$	(18,263)

The following table summarizes the components of the net deferred income tax liability as December 30, 2017 and December 31, 2016:

	2017		2016
Deferred tax (liabilities) assets:
Accelerated depreciation	$	(47,920)	$	(58,094)
Net operating loss		20,671		24,884
Investment in limited partnership		(10,800)		(12,899)
Net intangible assets		(1,256)		(999)
Mining reclamation reserve		488		582
Working capital (e.g., accrued compensation, prepaid assets)		1,267		1,386
Net deferred tax liabilities		(37,550)		(45,140)
Less valuation allowance		(1,675)		(2,677)
Net deferred tax liability	$	(39,225)	$	(47,817)

The net deferred income tax liability as of December 30, 2017 and December 31, 2016, are included in other noncurrent liabilities on the consolidated balance sheets. As of December 30, 2017, Summit LLC had federal net operating loss carryforwards of $79.6 million, which expire between 2030 and 2036. Summit LLC has alternative minimum tax credits of $0.2 million as of December 30, 2017, which do not expire.

Valuation Allowance—The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible (including the effect of available carryback and carryforward periods) and tax-planning strategies. The deferred income tax asset related to net operating losses resides with two separate tax paying subsidiaries (or subsidiary groups) of Summit LLC. These tax payers have historically generated taxable income and forecast to continue generating taxable income; however, the use of a portion of the net operating may be limited. Therefore, a $1.7 million and $2.7 million, respectively, valuation allowance has been recorded on a portion of the total net operating loss carryforwards as of December 30, 2017 and December 31, 2016, respectively. At December 30, 2017, the Company had net operating loss carryforwards for federal and state income tax purposes of $84.6 million and $63.7 million, respectively, which are available to offset future federal and state taxable income, if any, through 2036.

Tax years from 2013 to 2017 remain open and subject to audit by federal, Canadian, and state tax authorities. No income tax expense or benefit was recognized in other comprehensive loss in 2017, 2016 or 2015.

Tax Distributions  – The holders of Summit Holdings’ LP Units, including Summit Inc., incur U.S. federal, state and local income taxes on their share of any taxable income of Summit Holdings. The limited partnership agreement of Summit Holdings provides for pro rata cash distributions (“tax distributions”) to the holders of the LP Units in an amount generally calculated to provide each holder of LP Units with sufficient cash to cover its tax liability in respect of the LP Units. In general, these tax distributions are computed based on Summit Holdings’ estimated taxable income allocated to each holder of LP Units multiplied by an assumed tax rate equal to the highest effective marginal combined U.S. federal, state and local income tax rate applicable to an individual or corporate resident in New York, New York (or a corporate resident in certain circumstances). In the years ended December 30, 2017 and December 31, 2016, Summit LLC paid distributions to Summit Holdings totaling $49.2 million and $39.7 million, respectively, of which $1.7 million and $13.0 million, respectively, was distributed to Summit Holdings’ partners, other than Summit Inc., and $47.5 million and $26.7 million, respectively, was paid to Summit Inc.

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(10) Members’ Interest

Summit Inc.’s Equity Offerings— Summit Inc. commenced operations on March 11, 2015 upon the pricing of the IPO of its Class A common stock. Summit Inc. raised $433.0 million, net of underwriting discounts, through the issuance of 25,555,555 shares of Class A common stock at a public offering price of $18.00 per share. Summit Inc. used the offering proceeds to purchase a number of newly-issued LP Units from Summit Holdings equal to the number of shares of Class A common stock issued to the public. Summit Inc. caused Summit Holdings to use these proceeds: (i) to redeem $288.2 million in aggregate principal amount of outstanding 10 1/₂% 2020 Notes; (ii) to purchase 71,428,571 Class B Units of Continental Cement; (iii) to pay a one-time termination fee of $13.8 million in connection with the termination of a transaction and management fee agreement with Blackstone Capital Partners V L.P.; and (iv) for general corporate purposes. The $288.2 million redemption of 2020 Notes was completed at a redemption price equal to par plus an applicable premium of $38.2 million plus $5.2 million of accrued and unpaid interest.

On August 11, 2015, Summit Inc. raised $555.8 million, net of underwriting discounts, through the issuance of 22,425,000 shares of Class A common stock at a public offering price of $25.75 per share ("the August 2015 follow-on offering"). Summit Inc. used these proceeds to purchase 3,750,000 newly-issued LP Units from Summit Holdings and 18,675,000 LP Units from certain pre-IPO owners, at a purchase price per LP Unit equal to the public offering price per share of Class A common stock, less underwriting discounts and commissions. Summit Holdings used the proceeds from the 3,750,000 newly-issued LP Units to pay the deferred purchase price of $80.0 million related to the July 17, 2015 acquisition of a cement plant and quarry in Davenport, Iowa, and seven cement terminals along the Mississippi River and for general corporate purposes.

On January 10, 2017, Summit Inc. raised $237.6 million, net of underwriting discounts, through the issuance of 10,000,000 shares of Class A common stock at a public offering price of $24.05 per share. Summit Inc. used these proceeds to purchase an equal number of LP Units.

Redeemable Noncontrolling Interest—On March 17, 2015, upon the consummation of the IPO and the transactions contemplated by a contribution and purchase agreement entered into with the holders of all of the outstanding Class B Units of Continental Cement, Continental Cement became a wholly-owned indirect subsidiary of Summit Inc. The noncontrolling interests of Continental Cement were acquired for aggregate consideration of $64.1 million, consisting of $35.0 million of cash, 1,029,183 shares of Summit Inc.’s Class A common stock and $15.0 million aggregate principal amount of non-interest bearing notes payable in six annual installments of $2.5 million, beginning on March 17, 2016.

Prior to the March 17, 2015 purchase of the noncontrolling interest, the Company owned 100 Class A Units of Continental Cement, which represented an approximately 70% economic interest and had a preference in liquidation to the Class B Units. Continental Cement issued 100,000,000 Class B Units in May 2010, which remained outstanding until March 17, 2015 and represented an approximately 30% economic interest.

Accumulated other comprehensive income (loss) - The changes in each component of accumulated other comprehensive income (loss) consisted of the following:

							Accumulated
			Foreign currency				other
	Change in		translation		Cash flow hedge		comprehensive
	retirement plans		adjustments		adjustments		income (loss)
Balance — January 2, 2016	$	(7,607)	$	(19,915)	$	(944)	$	(28,466)
Postretirement liability adjustment		426		—		—		426
Foreign currency translation adjustment		—		2,125		—		2,125
Loss on cash flow hedges		—		—		(1,529)		(1,529)
Balance — December 31, 2016	$	(7,181)	$	(17,790)	$	(2,473)	$	(27,444)
Postretirement curtailment adjustment		429		—		—		429
Postretirement liability adjustment		699		—		—		699
Foreign currency translation adjustment		—		7,768		—		7,768
Income on cash flow hedges		—		—		1,413		1,413
Balance — December 30, 2017	$	(6,053)	$	(10,022)	$	(1,060)	$	(17,135)

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(11) Supplemental Cash Flow Information

Supplemental cash flow information for the years ended December 30, 2017, December 31, 2016 and January 2, 2016 was as follows:

	2017		2016		2015
Cash payments:
Interest	$	96,320	$	82,540	$	89,102
Income taxes		1,711		2,645		1,685
Non cash financing activities:
Purchase of noncontrolling interest	$	(716)	$	—	$	(64,102)

(12) Stock-Based Compensation

Prior to the IPO and related Reorganization, the capital structure of Summit Holdings consisted of six different classes of limited partnership units, each of which was subject to unique distribution rights. In connection with the IPO and the related Reorganization, the limited partnership agreement of Summit Holdings was amended and restated to, among other things, modify its capital structure by creating LP Units (“the Reclassification”).  Immediately after the Reclassification, 69.0 million LP Units were outstanding, of which 575,256 time vesting interests had not yet vested, and 2.4 million of performance vesting interests had not yet vested. As of December 30, 2017, approximately 40,000 of the time-vesting units remained outstanding and unvested.

Further in 2015, warrants to purchase 160,333 shares of Class A common stock were issued to holders of Class C interests, and options to purchase 4.4 million shares of Class A common stock were issued to holders of Class D interests as leverage restoration options. The exercise price of the warrants and the leverage restoration options is $18.00 per share. In connection with the Reclassification of the equity-based awards, we recognized $14.5 million modification charge in general and administrative expenses in the year ended January 2, 2016.

The leverage restoration options were granted under the Summit Materials, Inc. 2015 Omnibus Incentive Plan (the “Plan”), and would vest when both the applicable return multiple is achieved and a four year time-vesting condition is satisfied. Subsequently, in August 2016, the Board of Directors determined that it was in the best interest of the Company to waive the 3.0 times threshold on the remaining unvested performance-based LP Units and leverage restoration options. This waiver was accounted for as a modification of both interests. The fair value of the LP Units was based on the closing stock price of Summit Inc.’s shares of class A common stock on the modification date and the fair value of the leverage restoration options was determined using the Black-Scholes, Merton model. The Company recognized $37.7 million in general and administrative expenses in the year ended December 31, 2016 related to the vesting of these performance-based awards. In addition, as of December 30, 2017, we have $2.3 million of unamortized deferred compensation related to the LP Units and unvested leverage restoration options, which will be amortized through March 2019.

In connection with the IPO, we granted 240,000 options to purchase Class A common stock under the Plan to certain employees. These options vest subject to continuous employment over a four year service period, and are exercisable at $18.00 per share.

Omnibus Incentive Plan

In 2015, our Board of Directors and stockholders adopted a long-term incentive plan in connection with our IPO under the Plan, which allows for grants of equity-based awards in the form of stock options, stock appreciation rights, restricted stock and restricted stock units, performance units, and other stock-based awards. The Plan authorizes the issuance of up to 13,500,000 shares of Class A common stock in the form of restricted stock units and stock options, of which 8.6 million shares were available for future grants as of December 30, 2017.

Restricted Stock

Restricted Stock with Service-Based Vesting—Under the Plan, the Compensation Committee of the Board of Directors (“the Compensation Committee”) has granted restricted stock to members of the Board of Directors, executive officers and other key employees. These awards contain service conditions associated with continued employment or service. The terms of the restricted stock provide voting and regular dividend rights to holders of the awards. Upon

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vesting, the restrictions on the restricted stock lapse and the shares are considered issued and outstanding for accounting purposes.

In 2017 and 2016, the Compensation Committee granted restricted stock to executives and key employees under the Plan as part of our annual equity award program, which vest over a three year period, subject to continued employment or service. From time to time, the Compensation Committee grants restricted stock to newly hired or promoted employees or other employees or consultants who have achieved extraordinary personal performance objectives.

In 2017 and 2016, the Compensation Committee granted 34,928 and 28,140 shares, respectively, to non-employee members of the Board of Directors for their annual service as directors. These restricted stock grants vest over a one year period.

In measuring compensation expense associated with the grant of restricted stock, we use the fair value of the award, determined as the closing stock price for our common stock on the date of grant. Compensation expense is recorded monthly over the vesting period of the award.

Restricted stock with Service- and Market-Condition-Based Vesting—in 2017 and 2016, the Compensation Committee granted restricted stock to certain members of our executive team as part of their annual compensation package. The restricted stock vest at the end of a three year performance period, based on our total stock return (“TSR”) ranking relative to companies in the S&P Building & Construction Select Industry Index, subject to continued employment.

In measuring compensation expense associated with these grants, we use the fair value of the award at the date of grant, determined using a Monte Carlo simulation model.  Compensation expense is recorded monthly over the vesting period of the awards. The following table summarizes information for the equity awards granted in 2017:

	Options			Restricted Stock Units			Performance Stock Units			Warrants
		Weighted			Weighted			Weighted			Weighted
		average grant-		Number of	average grant-		Number of	average grant-		Number of	average grant-
	Number of	date fair value		restricted	date fair value		performance	date fair value		performance	date fair value
	options	per unit		stock units	per unit		stock units	per unit		stock units	per unit
Beginning balance—December 31, 2016	4,990,443	$	8.95	352,602	$	17.77	130,691	$	18.71	160,333	$	18.00
Granted	377,630		12.13	307,905		24.01	85,530		31.58	—		—
Forfeited	(11,339)		10.91	(6,109)		20.37	(4,766)		18.71	—		—
Exercised	(1,203,121)		8.90	—		—	—		—	(57,555)		18.00
Vested	—		—	(145,812)		17.68	—		—	—		—
Balance—December 30, 2017	4,153,613	$	9.13	508,586	$	20.14	211,455	$	23.69	102,778	$	18.00

The fair value of the time-vesting options granted in 2017, 2016 and 2015 was estimated as of the grant date using the Black-Scholes-Merton model, which requires the input of subjective assumptions, including the expected volatility and the expected term. The fair value of the performance stock units granted in 2017 and 2016 was estimated as of the grant date using Monte Carlo simulations, which requires the input of subjective assumptions, including the expected volatility and the expected term. The following table presents the weighted average assumptions used to estimate the fair value of grants in 2017, 2016 and 2015:

	Options			Performance Stock Units
	2017	2016	2015	2017	2016
Risk-free interest rate	2.06% - 2.31%	1.75% - 1.97%	1.68% - 1.92%	1.45%	0.88%
Dividend yield	None	None	None	None	None
Volatility	47%	48%	50%	39%	37%
Expected term	7 Years	10 Years	7 - 10 years	3 Years	3 Years

The risk-free rate is based on the yield at the date of grant of a U.S. Treasury security with a maturity period approximating the expected term. As Summit Holdings has not historically and does not plan to issue regular dividends,

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a dividend yield of zero was used. The volatility assumption is based on reported data of a peer group of publically traded companies for which historical information was available adjusted for the Company’s capital structure. The expected term is based on expectations about future exercises and represents the period of time that the units granted are expected to be outstanding.

Compensation expense for time-vesting interests granted is based on the grant date fair value. The Company recognizes compensation costs on a straight-line basis over the service period, which is generally the vesting period of the award. Forfeitures are recognized as they occur. Share-based compensation expense, which is recognized in general and administrative expenses, totaled $21.1 million, $49.9 million and $19.9 million in the years ended December 30, 2017, December 31, 2016 and January 2, 2016, respectively. As of December 30, 2017, unrecognized compensation cost totaled $23.7 million. The weighted average remaining contractual term over which the unrecognized compensation cost is to be recognized is 1.6 years as of year-end 2017.

As of December 30, 2017, the intrinsic value of outstanding options, restricted stock units and performance stock units was $53.9 million, $16.0 million and $6.6 million, respectively, and the remaining contractual term was 7.5 years, 8.8 years and 8.6 years, respectively. The weighted average strike price of stock options outstanding as of December 30, 2017 was $18.46 per share. The intrinsic value of 1.2 million exercisable stock options as of December 30, 2017 was $16.8 million with a weighted average strike price of $17.92 and a weighted average remaining vesting period of 7.3 years.

(13) Employee Benefit Plans

Defined Contribution Plan—The Company sponsors employee 401(k) savings plans for its employees, including certain union employees. The plans provide for various required and discretionary Company matches of employees’ eligible compensation contributed to the plans. The expense for the defined contribution plans was $9.3 million, $8.6 million and $7.1 million for the years ended December 30, 2017, December 31, 2016 and January 2, 2016, respectively.

Defined Benefit and Other Postretirement Benefits Plans—The Company’s subsidiary, Continental Cement, sponsors two noncontributory defined benefit pension plans for hourly and salaried employees. The salaried plan is closed to new participants and benefits are frozen. The hourly plan is also frozen except that new hourly participants from the Davenport, Iowa location accrue new benefits in the hourly plan. As a result of the collective bargaining unit negotiations in 2017, the hourly defined benefit pension plan was amended to stop future benefit accruals for the Davenport employees effective December 31, 2017. Pension benefits for eligible hourly employees are based on a monthly pension factor for each year of credited service. Pension benefits for eligible salaried employees are generally based on years of service and average eligible compensation.

Continental Cement also sponsors two unfunded healthcare and life insurance benefits plans for certain eligible retired employees. Effective January 1, 2014, the plan covering employees of the Hannibal, Missouri location was amended to eliminate all future retiree health and life coverage for current employees. During 2015, Continental Cement adopted one new unfunded healthcare plan to provide benefits prior to Medicare eligibility for certain hourly employees of the Davenport, Iowa location.

The funded status of the pension and other postretirement benefit plans is recognized in the consolidated balance sheets as the difference between the fair value of plan assets and the benefit obligations. For defined benefit pension plans, the benefit obligation is the projected benefit obligation (“PBO”) and for the healthcare and life insurance benefits plans, the benefit obligation is the accumulated postretirement benefit obligation (“APBO”). The PBO represents the actuarial present value of benefits expected to be paid upon retirement based on estimated future compensation levels. However, since the plans’ participants are not subject to future compensation increases, the plans’ PBO equals the accumulated benefit obligation (“ABO”). The APBO represents the actuarial present value of postretirement benefits attributed to employee services already rendered. The fair value of plan assets represents the current market value of assets held by an irrevocable trust fund for the sole benefit of participants. The measurement of the benefit obligations are based on the Company’s estimates and actuarial valuations. These valuations reflect the terms of the plan and use participant-specific information, such as compensation, age and years of service, as well as certain assumptions that require significant judgment, including estimates of discount rates, expected return on plan assets, rate of compensation increases, interest-crediting rates and mortality rates.

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The Company uses December 31 as the measurement date for its defined benefit pension and other postretirement benefit plans.

Obligations and Funded Status—The following information is as of December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, December 31, 2016 and December 31, 2015: 

	2017				2016
	Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.
Change in benefit obligations:
Beginning of period	$	27,608	$	12,770	$	27,914	$	13,458
Service cost		285		184		279		230
Interest cost		998		365		1,049		470
Actuarial loss (gain)		1,182		(338)		22		(682)
Curtailments		(430)
Change in plan provision		—		(2,325)		—		65
Benefits paid		(1,659)		(863)		(1,656)		(771)
End of period	$	27,984	$	9,793	$	27,608	$	12,770
Change in fair value of plan assets:
Beginning of period	$	18,395	$	—	$	18,336	$	—
Actual return on plan assets		1,415				719
Employer contributions		861		863		996		771
Benefits paid		(1,659)		(863)		(1,656)		(771)
End of period	$	19,012	$	—	$	18,395	$	—
Funded status of plans	$	(8,972)	$	(9,793)	$	(9,213)	$	(12,770)
Current liabilities	$	—	$	(702)	$	—	$	(844)
Noncurrent liabilities		(8,972)		(9,091)		(9,213)		(11,926)
Liability recognized	$	(8,972)	$	(9,793)	$	(9,213)	$	(12,770)
Amounts recognized in accumulated other comprehensive income:
Net actuarial loss	$	9,341	$	2,285	$	9,248	$	3,060
Prior service cost		—		(2,413)		—		(1,968)
Total amount recognized	$	9,341	$	(128)	$	9,248	$	1,092

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The amount recognized in accumulated other comprehensive income (“AOCI”) is the actuarial loss (credit) and prior service cost, which has not yet been recognized in periodic benefit cost. At December 30, 2017, the actuarial loss (credit) and prior service cost (credit) expected to be amortized from AOCI to benefit cost in 2018 is $0.3 million and $(0.2) million for the pension and postretirement obligations, respectively.

	2017				2016				2015
	Pension		Healthcare		Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.		benefits		& Life Ins.
Amounts recognized in other comprehensive (income) loss:
Net actuarial gain (loss)	$	1,068	$	(338)	$	688	$	(682)	$	(16)	$	(1,720)
Prior service cost		—		(572)		—		64		—		—
Amortization of prior year service cost		—		168		—		174		—		174
Curtailment benefit		(429)		—		—		—		—		—
Amortization of gain		(547)		(64)		(463)		(207)		(326)		(235)
Adjustment to plan benefits		—		(414)		—		—		—		—
Total amount recognized	$	92	$	(1,220)	$	225	$	(651)	$	(342)	$	(1,781)
Components of net periodic benefit cost:
Service cost	$	285	$	184	$	279	$	230	$	159	$	149
Interest cost		998		365		1,049		470		1,041		447
Amortization of gain		547		64		463		207		326		235
Expected return on plan assets		(1,302)		—		(1,386)		—		(1,385)		—
Amortization of prior service credit		—		(168)		—		(174)		—		(174)
Net periodic benefit cost	$	528	$	445	$	405	$	733	$	141	$	657

Assumptions—Weighted-average assumptions used to determine the benefit obligations as of year-end 2017 and 2016 are:

	2017		2016
		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	3.23% - 3.37%	3.20% - 3.25%	3.61% - 3.81%	3.32% - 3.65%
Expected long-term rate of return on plan assets	7.00%	N/A	7.00%	N/A

Weighted-average assumptions used to determine net periodic benefit cost for years ended December 30, 2017, December 31, 2016 and January 2, 2016:

	2017		2016		2015
		Healthcare		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	3.61% - 3.81%	3.54% - 3.65%	3.74% - 3.97%	3.34% - 3.80%	3.50% - 3.98%	3.39% - 3.52%
Expected long-term rate of return on plan assets	7.00%	N/A	7.30%	N/A	7.30%	N/A

The expected long-term return on plan assets is based upon the Plans’ consideration of historical and forward-looking returns and the Company’s estimation of what a portfolio, with the target allocation described below, will earn over a long-term horizon. The discount rate is derived using the Citigroup Pension Discount Curve.

Assumed health care cost trend rates were 8.0% grading to 4.5% as of year-end 2017 and 2016. Assumed health care cost trend rates have a significant effect on the amounts reported for the Company’s healthcare and life insurance

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benefits plans. A one percentage-point change in assumed health care cost trend rates would have the following effects as of year-end 2017 and 2016:

	2017				2016
	Increase		Decrease		Increase		Decrease
Total service cost and interest cost components	$	39	$	(33)	$	55	$	(47)
APBO		857		(769)		1,197		(1,038)

Plan Assets—The defined benefit pension plans’ (the “Plans”) investment strategy is to minimize investment risk while generating acceptable returns. The Plans currently invest a relatively high proportion of the plan assets in fixed income securities, while the remainder is invested in equity securities, cash reserves and precious metals. The equity securities are diversified into funds with growth and value investment strategies. The target allocation for plan assets is as follows: equity securities—30%; fixed income securities—63%; cash reserves—5%; and precious metals—2%. The Plans’ current investment allocations are within the tolerance of the target allocation. The Company had no Level 3 investments as of or for the years ended December 30, 2017 and December 31, 2016.

At year-end 2017 and 2016, the Plans’ assets were invested predominantly in fixed-income securities and publicly traded equities, but may invest in other asset classes in the future subject to the parameters of the investment policy. The Plans’ investments in fixed-income assets include U.S. Treasury and U.S. agency securities and corporate bonds. The Plans’ investments in equity assets include U.S. and international securities and equity funds. The Company estimates the fair value of the Plans’ assets using various valuation techniques and, to the extent available, quoted market prices in active markets or observable market inputs. The descriptions and fair value methodologies for the Plans’ assets are as follows:

Fixed Income Securities—Corporate and government bonds are classified as Level 2 assets, as they are either valued at quoted market prices from observable pricing sources at the reporting date or valued based upon comparable securities with similar yields and credit ratings.

Equity Securities—Equity securities are valued at the closing market price reported on a U.S. exchange where the security is actively traded and are therefore classified as Level 1 assets.

Cash—The carrying amounts of cash approximate fair value due to the short-term maturity.

Precious Metals—Precious metals are valued at the closing market price reported on a U.S. exchange where the security is actively traded and are therefore classified as Level 1 assets.

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The fair value of the Plans’ assets by asset class and fair value hierarchy level as of December 31, 2017 and December 31, 2016 are as follows:

	2017
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	3,620	$	3,068	$	552
Intermediate—corporate		3,872		—		3,872
Short-term—government		497		497		—
Short-term—corporate		1,702		—		1,702
Equity securities:
U.S. Large cap value		1,765		1,765		—
U.S. Large cap growth		588		588		—
U.S. Mid cap value		586		586		—
U.S. Mid cap growth		586		586		—
U.S. Small cap value		571		571		—
U.S. Small cap growth		580		580		—
Managed Futures		392		—		392
International		1,547		677		870
Commodities Broad Basket		801		—		801
Cash		1,522		—		1,522
Precious metals		383		383		—
Total	$	19,012	$	9,301	$	9,711

	2016
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	1,770	$	—	$	1,770
Intermediate—corporate		2,658		—		2,658
Short-term—government		912		—		912
Short-term—corporate		3,613		—		3,613
Equity securities:
U.S. Large cap value		1,181		1,181		—
U.S. Large cap growth		1,103		1,103		—
U.S. Mid cap value		577		577		—
U.S. Mid cap growth		546		546		—
U.S. Small cap value		551		551		—
U.S. Small cap growth		540		540		—
Managed Futures		366		366		—
International		1,099		1,099		—
Emerging Markets		359		359		—
Commodities Broad Basket		707		707		—
Cash		2,094		2,094		—
Precious metals		319		319		—
Total	$	18,395	$	9,442	$	8,953

Cash Flows—The Company expects to contribute approximately $1.4 million in 2018 to both its pension plans and to its healthcare and life insurance benefits plans.

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The estimated benefit payments for each of the next five years and the five-year period thereafter are as follows:

	Pension		Healthcare and Life
	benefits		Insurance Benefits
2018	$	1,835	$	702
2019		1,830		667
2020		1,804		675
2021		1,771		655
2022		1,768		649
2023 - 2027		8,457		3,250

(14) Accrued Mining and Landfill Reclamation

The Company has asset retirement obligations arising from regulatory or contractual requirements to perform certain reclamation activities at the time that certain quarries and landfills are closed, which are primarily included in other noncurrent liabilities on the consolidated balance sheets. The current portion of the liabilities, $3.9 million and $5.1 million as of December 30, 2017 and December 31, 2016, respectively, is included in accrued expenses on the consolidated balance sheets. The total undiscounted anticipated costs for site reclamation as of December 30, 2017 and December 31, 2016 were $67.9 million and $63.6 million, respectively. The liabilities were initially measured at fair value and are subsequently adjusted for accretion expense, payments and changes in the amount or timing of the estimated cash flows. The corresponding asset retirement costs are capitalized as part of the carrying amount of the related long-lived asset and depreciated over the asset’s remaining useful life. The following table presents the activity for the asset retirement obligations for the years ended December 30, 2017 and December 31, 2016:

	2017		2016
Beginning balance	$	23,906	$	20,735
Acquired obligations		2,303		835
Change in cost estimate		(1,764)		3,055
Settlement of reclamation obligations		(1,996)		(2,283)
Accretion expense		1,880		1,564
Ending balance	$	24,329	$	23,906

(15) Commitments and Contingencies

The Company is party to certain legal actions arising from the ordinary course of business activities. Accruals are recorded when the outcome is probable and can be reasonably estimated. While the ultimate results of claims and litigation cannot be predicted with certainty, management expects that the ultimate resolution of all pending or threatened claims and litigation will not have a material effect on the Company’s consolidated results of operations, financial position or liquidity. The Company records legal fees as incurred.

Litigation and Claims—The Company is obligated under an indemnification agreement entered into with the sellers of Harper Contracting, Inc., Harper Sand and Gravel, Inc., Harper Excavating, Inc., Harper Ready Mix Company, Inc. and Harper Investments, Inc. for the sellers’ ownership interests in a joint venture agreement. The Company has the rights to any benefits under the joint venture as well as the assumption of any obligations, but does not own equity interests in the joint venture. The joint venture has incurred significant losses on a highway project in Utah, which have resulted in requests for funding from the joint venture partners and ultimately from the Company. In the third quarter of 2017, the Company settled its remaining obligations under the indemnification agreement for $3.5 million, which was $0.8 million less than amounts previously accrued.

Environmental Remediation and Site Restoration—The Company’s operations are subject to and affected by federal, state, provincial and local laws and regulations relating to the environment, health and safety and other regulatory matters. These operations require environmental operating permits, which are subject to modification, renewal and revocation. The Company regularly monitors and reviews its operations, procedures and policies for compliance with these laws and regulations. Despite these compliance efforts, risk of environmental liability is inherent in the operation of the Company’s business, as it is with other companies engaged in similar businesses and there can be no assurance that environmental liabilities or noncompliance will not have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity.

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Other—The Company is obligated under various firm purchase commitments for certain raw materials and services that are in the ordinary course of business. Management does not expect any significant changes in the market value of these goods and services during the commitment period that would have a material adverse effect on the financial condition, results of operations and cash flows of the Company. The terms of the purchase commitments generally approximate one year.

(16) Leasing Arrangements

Rent expense, which primarily relates to land, plants and equipment, during the years ended December 30, 2017, December 31, 2016 and January 2, 2016 was $21.7 million, $18.6 million and $12.1 million, respectively. The Company has lease agreements associated with quarry facilities under which royalty payments are made. The payments are generally based on tons sold in a particular period; however, certain agreements have minimum annual payments. Royalty expense recorded in cost of revenue during the years ended December 30, 2017, December 31, 2016 and January 2, 2016 was $18.7 million, $15.6 million and $12.6 million, respectively. Minimum contractual commitments for the subsequent five years under long-term operating leases and under royalty agreements are as follows:

	Operating		Royalty
	Leases		Agreements
2018	$	8,627	$	6,450
2019		7,077		6,017
2020		5,826		5,833
2021		4,650		5,550
2022		2,475		5,431

(17) Related Party Transactions

Under the terms of a transaction and management fee agreement between Summit Holdings and Blackstone Management Partners L.L.C. (“BMP”), whose affiliates include controlling stockholders of the Company, BMP provided monitoring, advisory and consulting services to the Company through March 17, 2015. Under the terms of the agreement, BMP was permitted to assign, and had assigned, a portion of the fees to which it was entitled to Silverhawk Summit, L.P. and to certain other equity investors.

In connection with the IPO, the transaction and management fee agreement with BMP was terminated on March 17, 2015 for a termination payment of $13.8 million; $13.4 million was paid to affiliates of BMP and the remaining $0.4 million was paid to affiliates of Silverhawk Summit, L.P. and to certain other equity investors.

Blackstone Advisory Partners L.P., an affiliate of BMP, served as an initial purchaser of $18.8 million of the 2022 Notes issued in March 2016 and $22.5 million and $26.3 million of the 2023 Notes issued in November 2015 and July 2015, respectively, and received compensation in connection therewith. In addition, Blackstone Advisory Partners L.P. served as an underwriter of 1,681,875 shares of Class A common stock issued in connection with the August 2015 follow-on offering and received compensation in connection therewith.

On July 17, 2015, the Company purchased the Davenport Assets from Lafarge North America Inc. for a purchase price of $450.0 million in cash and a cement distribution terminal in Bettendorf, Iowa. At closing, $370.0 million of the purchase price was paid, and the remaining $80.0 million was paid on August 13, 2015. Summit Holdings entered into a commitment letter dated April 16, 2015, with Blackstone Capital Partners V L.P. (“BCP”) for equity financing up to $90.0 million in the form of a preferred equity interest (the “Equity Commitment Financing”), which would have been used to pay the $80.0 million deferred purchase price if other financing was not secured by December 31, 2015. For the Equity Commitment Financing, the Company paid a $1.8 million commitment fee to BCP for the year ended January 2, 2016.

(18) Fair Value of Financial Instruments

Fair Value Measurements—Certain acquisitions made by the Company require the payment of contingent amounts of purchase consideration. These payments are contingent on specified operating results being achieved in periods subsequent to the acquisition and will only be made if earn-out thresholds are achieved. Contingent consideration obligations are measured at fair value each reporting period. Any adjustments to fair value are recognized in earnings in the period identified.

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The Company has entered into interest rate derivatives on $200.0 million of its term loan borrowings to add stability to interest expense and to manage its exposure to interest rate movements. The interest rate derivative expires in September 2019. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and will be subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The fair value of contingent consideration and derivatives as of December 30, 2017 and December 31, 2016 was:

	2017		2016
Current portion of acquisition-related liabilities and Accrued expenses:
Contingent consideration	$	594	$	9,288
Cash flow hedges		488		942
Acquisition-related liabilities and Other noncurrent liabilities
Contingent consideration	$	34,301	$	2,377
Cash flow hedges		492		1,438

The fair value accounting guidance establishes the following fair value hierarchy that prioritizes the inputs used to measure fair value:

Level 1 —	Unadjusted quoted prices for identical assets or liabilities in active markets.
Level 2 —	Inputs other than Level 1 that are based on observable market data, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, inputs that are observable that are not prices and inputs that are derived from or corroborated by observable markets.
Level 3 —	Valuations developed from unobservable data, reflecting the Company’s own assumptions, which market participants would use in pricing the asset or liability.

The fair value of contingent consideration was based on unobservable, or Level 3, inputs, including projected probability-weighted cash payments and an 11.0% discount rate, which reflects a market discount rate. Changes in fair value may occur as a result of a change in actual or projected cash payments, the probability weightings applied by the Company to projected payments or a change in the discount rate. Significant increases or decreases in any of these inputs in isolation could result in a lower, or higher, fair value measurement. The fair value of the cash flow hedges are based on observable, or Level 2, inputs such as interest rates, bond yields and prices in inactive markets. There were no material adjustments to the fair value of contingent consideration in 2017 or 2016, or to cash flow hedges in 2017 or 2016. In 2016, a $6.1 million increase in the fair value of contingent consideration was recognized as a result of a change in projected cash payments.

Financial Instruments—The Company’s financial instruments include debt and certain acquisition-related liabilities (deferred consideration and noncompete obligations). The carrying value and fair value of these financial instruments as of December 30, 2017 and December 31, 2016 were:

	December 30, 2017				December 31, 2016
	Fair Value		Carrying Value		Fair Value		Carrying Value
Level 2
Long-term debt(1)	$	1,893,239	$	1,832,455	$	1,586,102	$	1,536,065
Level 3
Current portion of deferred consideration and noncompete obligations(2)		10,993		10,993		12,375		12,375
Long term portion of deferred consideration and noncompete obligations(3)		17,938		17,938		22,784		22,784

(1)$4.8 million and $6.5 million included in current portion of debt as of December 30, 2017 and December 31, 2016, respectively.

(2)Included in current portion of acquisition-related liabilities on the consolidated balance sheets.

30

(3)Included in acquisition-related liabilities on the consolidated balance sheets.

The fair value of debt was determined based on observable, or Level 2 inputs, such as interest rates, bond yields and quoted prices in inactive markets. The fair values of the deferred consideration and noncompete obligations were determined based on unobservable, or Level 3, inputs, including the cash payment terms in the purchase agreements and a discount rate reflecting the Company’s credit risk. The discount rate used is generally consistent with that used when the obligations were initially recorded.

Securities with a maturity of three months or less are considered cash equivalents and the fair value of these assets approximates their carrying value.

(19) Segment Information

The Company has three operating segments: West; East; and Cement, which are its reporting segments. These segments are consistent with the Company’s management reporting structure. The operating results of each segment are regularly reviewed and evaluated by the Chief Executive Officer, the Company’s Chief Operating Decision Maker (“CODM”). The CODM primarily evaluates the performance of its segments and allocates resources to them based on a segment profit metric that we call Adjusted EBITDA, which is computed as earnings from continuing operations before interest, taxes, depreciation, depletion, amortization, accretion, share-based compensation, and transaction costs, as well as various other non-recurring, non-cash amounts.

The West and East segments have several acquired subsidiaries that are engaged in various activities including quarry mining, aggregate production and contracting. The Cement segment is engaged in the production of Portland cement. Assets employed by each segment include assets directly identified with those operations. Corporate assets consist primarily of cash, property, plant and equipment for corporate operations and other assets not directly identifiable with a reportable business segment. The accounting policies applicable to each segment are consistent with those used in the consolidated financial statements.

The following tables display selected financial data for the Company’s reportable business segments as of and for the years ended December 30, 2017, December 31, 2016 and January 2, 2016:

	2017		2016		2015
Revenue*:
West	$	998,843	$	813,682	$	804,503
East		629,919		531,294		432,310
Cement		303,813		281,087		195,484
Total revenue	$	1,932,575	$	1,626,063	$	1,432,297

*   Intercompany sales are immaterial and the presentation above only reflects sales to external customers.

31

	2017		2016		2015
Income (loss) from continuing operations before taxes	$	113,696	$	56,805	$	(18,322)
Interest expense		107,655		96,483		83,757
Depreciation, depletion and amortization		177,643		147,736		118,321
Accretion		1,875		1,564		1,402
IPO/ Legacy equity modification costs		—		37,257		28,296
Loss on debt financings		4,815		—		71,631
Transaction costs		7,733		6,797		9,519
Management fees and expenses		—		(1,379)		1,046
Non-cash compensation		21,140		12,683		5,448
Other		1,206		13,388		(13,570)
Total Adjusted EBITDA	$	435,763	$	371,334	$	287,528
Total Adjusted EBITDA by Segment:
West	$	203,590	$	167,434	$	150,764
East		139,108		126,007		92,303
Cement		127,547		112,991		74,845
Corporate and other		(34,482)		(35,098)		(30,384)
Total Adjusted EBITDA	$	435,763	$	371,334	$	287,528

	2017		2016		2015
Purchases of property, plant and equipment
West	$	83,591	$	77,335	$	39,896
East		68,556		45,492		26,268
Cement		35,803		25,408		17,151
Total reportable segments		187,950		148,235		83,315
Corporate and other		6,196		5,248		5,635
Total purchases of property, plant and equipment	$	194,146	$	153,483	$	88,950

	2017		2016		2015
Depreciation, depletion, amortization and accretion:
West	$	71,314	$	65,345	$	53,727
East		67,252		51,540		38,923
Cement		38,351		30,006		24,758
Total reportable segments		176,917		146,891		117,408
Corporate and other		2,601		2,409		2,315
Total depreciation, depletion, amortization and accretion	$	179,518	$	149,300	$	119,723

	2017		2016		2015
Total assets:
West	$	1,225,463	$	902,763	$	821,479
East		1,035,609		870,613		545,187
Cement		870,652		868,440		843,941
Total reportable segments		3,131,724		2,641,816		2,210,607
Corporate and other		372,517		134,604		184,555
Total	$	3,504,241	$	2,776,420	$	2,395,162

32

	2017		2016		2015
Revenue by product*:
Aggregates	$	313,383	$	264,609	$	219,040
Cement		282,041		250,349		167,696
Ready-mix concrete		492,302		395,917		350,262
Asphalt		285,653		239,419		252,031
Paving and related services		371,763		304,041		295,995
Other		187,433		171,728		147,273
Total revenue	$	1,932,575	$	1,626,063	$	1,432,297

*Revenue from the liquid asphalt terminals is included in asphalt revenue.

(20) Senior Notes’ Guarantor and Non-Guarantor Financial Information

Summit LLC’s domestic wholly-owned subsidiary companies other than Finance Corp. are named as guarantors (collectively, the “Guarantors”) of the Senior Notes. Certain other partially-owned subsidiaries and a non-U.S. entity do not guarantee the Senior Notes (collectively, the “Non-Guarantors”). The Guarantors provide a joint and several, full and unconditional guarantee of the Senior Notes.

There are no significant restrictions on Summit LLC’s ability to obtain funds from any of the Guarantor Subsidiaries in the form of dividends or loans. Additionally, there are no significant restrictions on a Guarantor Subsidiary’s ability to obtain funds from Summit LLC or its direct or indirect subsidiaries.

The following condensed consolidating balance sheets, statements of operations and cash flows are provided for the Issuers, the Wholly-owned Guarantors and the Non-Guarantors. On March 17, 2015, the noncontrolling interests of Continental Cement were purchased resulting in Continental Cement being a wholly-owned indirect subsidiary of Summit LLC. Continental Cement’s results of operations and cash flows are reflected with the Guarantors for the year ended December 30, 2017. In 2014, Continental Cement’s results are shown separately as a Non Wholly-owned Guarantor.

Earnings from subsidiaries are included in other income in the condensed consolidated statements of operations below. The financial information may not necessarily be indicative of the financial position, results of operations or cash flows had the guarantor or non-guarantor subsidiaries operated as independent entities.

33

Condensed Consolidating Balance Sheets

December 30, 2017

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	370,741	$	10,254	$	14,933	$	(12,372)	$	383,556
Accounts receivable, net		—		183,139		15,191		—		198,330
Intercompany receivables		573,301		484,747		—		(1,058,048)		—
Cost and estimated earnings in excess of billings		—		9,264		248		—		9,512
Inventories		—		180,283		4,156		—		184,439
Other current assets		1,167		6,354		243		—		7,764
Total current assets		945,209		874,041		34,771		(1,070,420)		783,601
Property, plant and equipment, net		9,259		1,569,118		37,047		—		1,615,424
Goodwill		—		976,206		61,114		—		1,037,320
Intangible assets, net		—		16,833		—		—		16,833
Other assets		2,890,674		162,711		1,271		(3,003,593)		51,063
Total assets	$	3,845,142	$	3,598,909	$	134,203	$	(4,074,013)	$	3,504,241
Liabilities and Member’s Interest
Current liabilities:
Current portion of debt	$	4,765	$	—	$	—	$	—	$	4,765
Current portion of acquisition-related liabilities		—		11,587		—		—		11,587
Accounts payable		3,976		89,912		6,749		—		100,637
Accrued expenses		47,047		79,372		2,227		(12,372)		116,274
Intercompany payables		684,057		369,918		4,073		(1,058,048)		—
Billings in excess of costs and estimated earnings		—		15,349		401		—		15,750
Total current liabilities		739,845		566,138		13,450		(1,070,420)		249,013
Long-term debt		1,810,833		—		—		—		1,810,833
Acquisition-related liabilities		—		52,239		—		—		52,239
Other noncurrent liabilities		2,870		193,801		75,209		(171,318)		100,562
Total liabilities		2,553,548		812,178		88,659		(1,241,738)		2,212,647
Total member's interest		1,291,594		2,786,731		45,544		(2,832,275)		1,291,594
Total liabilities and member’s interest	$	3,845,142	$	3,598,909	$	134,203	$	(4,074,013)	$	3,504,241

34

Condensed Consolidating Balance Sheets

December 31, 2016

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	133,862	$	4,820	$	14,656	$	(10,666)	$	142,672
Accounts receivable, net		—		155,389		7,090		(102)		162,377
Intercompany receivables		521,658		321,776		—		(843,434)		—
Cost and estimated earnings in excess of billings		—		6,830		620		—		7,450
Inventories		—		153,374		4,305		—		157,679
Other current assets		1,259		11,012		529		—		12,800
Total current assets		656,779		653,201		27,200		(854,202)		482,978
Property, plant and equipment, net		7,033		1,418,902		20,517		—		1,446,452
Goodwill		—		735,490		46,722		—		782,212
Intangible assets, net		—		17,989		—		—		17,989
Other assets		2,293,803		125,270		1,946		(2,374,230)		46,789
Total assets	$	2,957,615	$	2,950,852	$	96,385	$	(3,228,432)	$	2,776,420
Liabilities and Member’s Interest
Current liabilities:
Current portion of debt	$	6,500	$	—	$	—	$	—	$	6,500
Current portion of acquisition-related liabilities		1,000		20,663		—		—		21,663
Accounts payable		1,497		76,886		3,329		(102)		81,610
Accrued expenses		46,460		73,807		872		(10,666)		110,473
Intercompany payables		509,503		327,405		6,526		(843,434)		—
Billings in excess of costs and estimated earnings		—		15,242		214		—		15,456
Total current liabilities		564,960		514,003		10,941		(854,202)		235,702
Long-term debt		1,514,456		—		—		—		1,514,456
Acquisition-related liabilities		—		25,161		—		—		25,161
Other noncurrent liabilities		2,395		231,199		56,356		(165,242)		124,708
Total liabilities		2,081,811		770,363		67,297		(1,019,444)		1,900,027
Total member's interest		875,804		2,180,489		29,088		(2,208,988)		876,393
Total liabilities and member’s interest	$	2,957,615	$	2,950,852	$	96,385	$	(3,228,432)	$	2,776,420

35

Condensed Consolidating Statements of Operations and Comprehensive Loss

Year ended December 30, 2017

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—	$	1,854,434	$	84,020	$	(5,879)	$	1,932,575
Cost of revenue (excluding items shown separately below)		—		1,227,037		60,619		(5,879)		1,281,777
General and administrative expenses		63,954		178,023		8,426		—		250,403
Depreciation, depletion, amortization and accretion		2,601		172,738		4,179		—		179,518
Operating (loss) income		(66,555)		276,636		10,796		—		220,877
Other income, net		(307,876)		(1,925)		(533)		309,860		(474)
Interest expense (income)		105,735		(2,415)		4,335		—		107,655
Income from operations before taxes		135,586		280,976		6,994		(309,860)		113,696
Income tax expense		1,518		(23,774)		1,911		—		(20,345)
Net income		134,068		304,750		5,083		(309,860)		134,041
Net loss attributable to noncontrolling interest		—		—		—		(27)		(27)
Net income attributable to member of Summit Materials, LLC	$	134,068	$	304,750	$	5,083	$	(309,833)	$	134,068
Comprehensive income (loss) attributable to member of Summit Materials, LLC	$	144,377	$	302,209	$	(2,685)	$	(299,524)	$	144,377

36

Condensed Consolidating Statements of Operations and Comprehensive Loss

Year ended December 31, 2016

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—	$	1,586,858	$	47,064	$	(7,859)	$	1,626,063
Cost of revenue (excluding items shown separately below)		—		1,047,120		32,531		(7,859)		1,071,792
General and administrative expenses		91,533		152,402		6,374		—		250,309
Depreciation, depletion, amortization and accretion		2,410		142,773		4,117		—		149,300
Operating (loss) income		(93,943)		244,563		4,042		—		154,662
Other (income) expense, net		(239,082)		1,908		(326)		238,874		1,374
Interest expense		83,068		9,956		3,459		—		96,483
Income from operations before taxes		62,071		232,699		909		(238,874)		56,805
Income (benefit) tax benefit		—		(5,551)		269		—		(5,282)
Net income		62,071		238,250		640		(238,874)		62,087
Net income attributable to noncontrolling interest		—		—		—		16		16
Net income attributable to member of Summit Materials, LLC	$	62,071	$	238,250	$	640	$	(238,890)	$	62,071
Comprehensive income (loss) attributable to member of Summit Materials, LLC	$	63,093	$	239,353	$	(1,485)	$	(237,868)	$	63,093

37

Condensed Consolidating Statements of Operations and Comprehensive Loss

Year ended January 2, 2016

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—	$	1,364,622	$	100,360	$	(32,685)	$	1,432,297
Cost of revenue (excluding items shown separately below)		—		958,144		64,803		(32,685)		990,262
General and administrative expenses		73,555		107,282		6,451		—		187,288
Depreciation, depletion, amortization and accretion		2,316		112,166		5,241		—		119,723
Operating (loss) income		(75,871)		187,030		23,865		—		135,024
Other income, net		(107,275)		9,938		294		166,632		69,589
Interest expense		27,222		52,970		3,565		—		83,757
(Loss) income from continuing operations before taxes		4,182		124,122		20,006		(166,632)		(18,322)
Income tax (benefit) expense		—		(18,664)		401		—		(18,263)
(Loss) income from operations		4,182		142,786		19,605		(166,632)		(59)
Income from discontinued operations		—		(2,415)		—		—		(2,415)
Net (loss) income		4,182		145,201		19,605		(166,632)		2,356
Net income attributable to noncontrolling interest		—		—		—		(1,826)		(1,826)
Net (loss) income attributable to member of Summit Materials, LLC	$	4,182	$	145,201	$	19,605	$	(164,806)	$	4,182
Comprehensive (loss) income attributable to member of Summit Materials, LLC	$	(8,738)	$	146,380	$	5,506	$	(151,886)	$	(8,738)

38

Condensed Consolidating Statements of Cash Flows

For the year ended December 30, 2017

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(127,102)	$	392,316	$	29,918	$	—	$	295,132
Cash flow from investing activities:
Acquisitions, net of cash acquired		(24,538)		(324,892)		(25,500)		—		(374,930)
Purchase of property, plant and equipment		(6,196)		(182,295)		(5,655)		—		(194,146)
Proceeds from the sale of property, plant, and equipment		—		16,822		250		—		17,072
Other		—		(471)		—		—		(471)
Net cash used for investing activities		(30,734)		(490,836)		(30,905)		—		(552,475)
Cash flow from financing activities:
Proceeds from investment by member		40,913		252,911		10,717		—		304,541
Capital issuance costs		(627)		—		—		—		(627)
Net proceeds from debt issuance		302,000		—		—		—		302,000
Loans received from and payments made on loans from other Summit Companies		119,858		(108,026)		(10,126)		(1,706)		—
Payments on long-term debt		(8,463)		(7,967)		(8)		—		(16,438)
Purchase of noncontrolling interests		—		(532)		—		—		(532)
Payments on acquisition-related liabilities		—		(32,150)		—		—		(32,150)
Debt issuance costs		(6,416)		—		—		—		(6,416)
Distributions from partnership		(51,986)		—		—		—		(51,986)
Other		(564)		(282)		(20)		—		(866)
Net cash provided by financing activities		394,715		103,954		563		(1,706)		497,526
Impact of cash on foreign currency		—		—		701		—		701
Net increase (decrease) in cash		236,879		5,434		277		(1,706)		240,884
Cash — Beginning of period		133,862		4,820		14,656		(10,666)		142,672
Cash — End of period	$	370,741	$	10,254	$	14,933	$	(12,372)	$	383,556

39

Condensed Consolidating Statements of Cash Flows

For the year ended December 31, 2016

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(132,328)	$	373,588	$	3,617	$	—	$	244,877
Cash flow from investing activities:
Acquisitions, net of cash acquired		(42,844)		(294,114)		—		—		(336,958)
Purchase of property, plant and equipment		(5,247)		(146,336)		(1,900)		—		(153,483)
Proceeds from the sale of property, plant, and equipment		—		16,606		262		—		16,868
Other		—		2,921		—		—		2,921
Net cash used for investing activities		(48,091)		(420,923)		(1,638)		—		(470,652)
Cash flow from financing activities:
Proceeds from investment by member		(502,140)		529,517		—		—		27,377
Capital issuance costs		(136)		—		—		—		(136)
Net proceeds from debt issuance		354,000		—		—		—		354,000
Loans received from and payments made on loans from other Summit Companies		440,738		(442,072)		400		934		—
Payments on long-term debt		(110,500)		(10,202)		—		—		(120,702)
Payments on acquisition-related liabilities		(400)		(29,140)		—		—		(29,540)
Financing costs		(5,801)		—		—		—		(5,801)
Distributions from partnership		(42,192)		—		—		—		(42,192)
Other		—		(16)		—		—		(16)
Net cash provided by financing activities		133,569		48,087		400		934		182,990
Impact of cash on foreign currency		—		—		69		—		69
Net (decrease) increase in cash		(46,850)		752		2,448		934		(42,716)
Cash — Beginning of period		180,712		4,068		12,208		(11,600)		185,388
Cash — End of period	$	133,862	$	4,820	$	14,656	$	(10,666)	$	142,672

40

Condensed Consolidating Statements of Cash Flows

For the year ended January 2, 2016

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(276,104)	$	356,187	$	18,287	$	(167)	$	98,203
Cash flow from investing activities:
Acquisitions, net of cash acquired		—		(510,017)		—		—		(510,017)
Purchase of property, plant and equipment		(5,636)		(81,980)		(1,334)		—		(88,950)
Proceeds from the sale of property, plant, and equipment		—		12,945		165		—		13,110
Other		—		1,510		—		—		1,510
Net cash used for investing activities		(5,636)		(577,542)		(1,169)		—		(584,347)
Cash flow from financing activities:
Proceeds from investment by member		(155,060)		662,826		—		—		507,766
Capital issuance costs		(12,930)		—		—		—		(12,930)
Net proceeds from debt issuance		1,748,875		—		—		—		1,748,875
Loans received from and payments made on loans from other Summit Companies		(208,459)		226,703		(12,700)		(5,544)		—
Payments on long-term debt		(859,796)		(646,746)		—		1,056		(1,505,486)
Payments on acquisition-related liabilities		(166)		(17,890)		—		—		(18,056)
Financing costs		(14,246)		—		—		—		(14,246)
Distributions from partnership		(46,603)		—		—		—		(46,603)
Other		—		(167)		—		167		—
Net cash provided by (used for) financing activities		451,615		224,726		(12,700)		(4,321)		659,320
Impact of cash on foreign currency		—		—		(1,003)		—		(1,003)
Net increase (decrease) in cash		169,875		3,371		3,415		(4,488)		172,173
Cash — Beginning of period		10,837		697		8,793		(7,112)		13,215
Cash — End of period	$	180,712	$	4,068	$	12,208	$	(11,600)	$	185,388

41

(21) Supplementary Data (Unaudited)

Supplemental financial information (unaudited) by quarter is as follows for the years ended December 30, 2017 and December 31, 2016:

	2017								2016
	4Q		3Q		2Q		1Q		4Q		3Q		2Q		1Q
Net revenue	$	440,610	$	574,387	$	478,368	$	259,044	$	387,389	$	480,210	$	412,636	$	208,039
Operating income (loss)		57,306		113,911		82,444		(32,784)		48,761		88,410		46,948		(29,457)
Net income (loss)		52,435		82,633		53,827		(54,854)		21,211		61,360		21,759		(42,243)

42

XML

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 30, 2017	Feb. 07, 2018	Jul. 01, 2017
Document Information [Line Items]
Entity Registrant Name	Summit Materials, Inc.
Entity Central Index Key	0001621563
Document Type	10-K
Document Period End Date	Dec. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-30
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Public Float			$ 3,100,000,000
Membership interests description	As of February 7, 2018, 100% of Summit Materials, LLC's outstanding limited liability company interests were held by Summit Materials Intermediate Holdings, LLC, its sole member and an indirect subsidiary of Summit Materials, Inc
Common Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		110,365,594
Common Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		100
Summit Materials, LLC
Document Information [Line Items]
Entity Registrant Name	Summit Materials, LLC
Entity Central Index Key	0001571371
Document Type	10-K
Document Period End Date	Dec. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Public Float	$ 0
Membership interests percentage	100.00%

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 383,556	$ 143,392
Accounts receivable, net	198,330	162,377
Costs and estimated earnings in excess of billings	9,512	7,450
Inventories	184,439	157,679
Other current assets	7,764	12,800
Total current assets	783,601	483,698
Property, plant and equipment, net	1,615,424	1,446,452
Goodwill	1,036,320	782,212
Intangible assets	16,833	17,989
Deferred tax assets	284,092	4,326
Other assets	51,063	46,789
Total assets	3,787,333	2,781,466
Current liabilities:
Current portion of debt	4,765	6,500
Current portion of acquisition-related liabilities	14,087	24,162
Accounts payable	98,744	81,565
Accrued expenses	116,629	111,605
Billings in excess of costs and estimated earnings	15,750	15,456
Total current liabilities	249,975	239,288
Long-term debt	1,810,833	1,514,456
Acquisition-related liabilities	58,135	32,664
Tax receivable agreement liability	331,340	58,145
Other noncurrent liabilities	65,329	76,874
Total liabilities	2,515,612	1,921,427
Commitments and contingencies
Stockholders' equity / Member's interest
Additional paid-in capital	1,154,220	824,304
Accumulated earnings	95,833	19,028
Accumulated other comprehensive income (loss)	7,386	(2,249)
Stockholders' equity	1,258,543	842,044
Noncontrolling interest in consolidated subsidiaries		1,378
Noncontrolling interest in Summit Materials, Inc.	13,178	16,617
Total stockholders' equity	1,271,721	860,039
Total liabilities and stockholders' equity / member's interest	3,787,333	2,781,466
Common Class A
Stockholders' equity / Member's interest
Common stock	1,104	961
Common Class B
Stockholders' equity / Member's interest
Common stock
Summit Materials, LLC
Current assets:
Cash and cash equivalents	383,556	142,672
Accounts receivable, net	198,330	162,377
Costs and estimated earnings in excess of billings	9,512	7,450
Inventories	184,439	157,679
Other current assets	7,764	12,800
Total current assets	783,601	482,978
Property, plant and equipment, net	1,615,424	1,446,452
Goodwill	1,037,320	782,212
Intangible assets	16,833	17,989
Other assets	51,063	46,789
Total assets	3,504,241	2,776,420
Current liabilities:
Current portion of debt	4,765	6,500
Current portion of acquisition-related liabilities	11,587	21,663
Accounts payable	100,637	81,610
Accrued expenses	116,274	110,473
Billings in excess of costs and estimated earnings	15,750	15,456
Total current liabilities	249,013	235,702
Long-term debt	1,810,833	1,514,456
Acquisition-related liabilities	52,239	25,161
Other noncurrent liabilities	100,562	124,708
Total liabilities	2,212,647	1,900,027
Commitments and contingencies
Stockholders' equity / Member's interest
Member's equity	1,359,760	1,087,558
Accumulated earnings	(51,031)	(185,099)
Accumulated other comprehensive income (loss)	(17,135)	(27,444)
Member's interest	1,291,594	875,015
Noncontrolling interest		1,378
Total member's interest	1,291,594	876,393
Total liabilities and stockholders' equity / member's interest	$ 3,504,241	$ 2,776,420

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016
Property, plant and equipment, accumulated depreciation, depletion and amortization	$ 631,841	$ 484,554
Intangible assets, accumulated amortization	6,698	7,854
Valuation allowance	1,675	502,839
Summit Materials, LLC
Property, plant and equipment, accumulated depreciation, depletion and amortization	631,841	484,554
Intangible assets, accumulated amortization	6,698	7,854
Valuation allowance	$ 1,675	$ 2,677
Common Class A
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	110,350,594	96,033,222
Common stock, shares outstanding	110,350,594	96,033,222
Common Class B
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	100	100
Common stock, shares outstanding	100	100

XML

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Revenue:
Product	$ 1,449,936	$ 1,223,008	$ 1,043,843
Service	302,473	265,266	246,123
Net revenue	1,752,409	1,488,274	1,289,966
Delivery and subcontract revenue	180,166	137,789	142,331
Total revenue	1,932,575	1,626,063	1,432,297
Cost of revenue (excluding items shown separately below):
Product	898,281	751,419	676,074
Service	203,330	182,584	171,857
Net cost of revenue	1,101,611	934,003	847,931
Delivery and subcontract cost	180,166	137,789	142,331
Total cost of revenue	1,281,777	1,071,792	990,262
General and administrative expenses	242,670	243,512	177,769
Depreciation, depletion, amortization and accretion	179,518	149,300	119,723
Transaction costs	7,733	6,797	9,519
Operating income	220,877	154,662	135,024
Interest expense	108,549	97,536	84,629
Loss on debt financings	4,815		71,631
Tax receivable agreement expense	271,016	14,938
Other expense (income), net	5,303	(1,361)	2,042
(Loss) income from operations before taxes	(158,200)	40,827	(19,194)
Income tax benefit	(283,977)	(5,299)	(18,263)
Income (loss) from continuing operations	125,777	46,126	(931)
Income from discontinued operations			(2,415)
Net income	125,777	46,126	1,484
Net income (loss) attributable to noncontrolling interest in subsidiaries	(27)	16	(1,826)
Net income (loss) attributable to Summit Holdings	3,974	9,327	(24,408)
Net income attributable to Summit Materials, Inc. / member of Summit Materials, LLC	121,830	36,783	27,718
Summit Materials, LLC
Revenue:
Product	1,449,936	1,223,008	1,043,843
Service	302,473	265,266	246,123
Net revenue	1,752,409	1,488,274	1,289,966
Delivery and subcontract revenue	180,166	137,789	142,331
Total revenue	1,932,575	1,626,063	1,432,297
Cost of revenue (excluding items shown separately below):
Product	898,281	751,419	676,074
Service	203,330	182,584	171,857
Net cost of revenue	1,101,611	934,003	847,931
Delivery and subcontract cost	180,166	137,789	142,331
Total cost of revenue	1,281,777	1,071,792	990,262
General and administrative expenses	242,670	243,512	177,769
Depreciation, depletion, amortization and accretion	179,518	149,300	119,723
Transaction costs	7,733	6,797	9,519
Operating income	220,877	154,662	135,024
Interest expense	107,655	96,483	83,757
Loss on debt financings	4,815		71,631
Other expense (income), net	5,289	(1,374)	2,042
(Loss) income from operations before taxes	113,696	56,805	(18,322)
Income tax benefit	(20,345)	(5,282)	(18,263)
Income (loss) from continuing operations	134,041	62,087	(59)
Income from discontinued operations			(2,415)
Net income	134,041	62,087	2,356
Net income (loss) attributable to noncontrolling interest	(27)	16	(1,826)
Net income attributable to Summit Materials, Inc. / member of Summit Materials, LLC	$ 134,068	$ 62,071	$ 4,182
Common Class A
Income per share of Class A common stock:
Basic	$ 1.12	$ 0.52	$ 0.68
Diluted	$ 1.11	$ 0.52	$ 0.50
Weighted average shares of Class A common stock:
Basic	108,696,438	70,355,042	40,888,437
Diluted	109,490,898	70,838,508	90,993,322

XML

Consolidated Statements of Comprehensive Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Net income (loss)	$ 125,777	$ 46,126	$ 1,484
Other comprehensive income (loss):
Postretirement curtailment adjustment	429
Postretirement liability adjustment	699	426	2,123
Foreign currency translation adjustment	7,768	2,125	(14,099)
Income (loss) on cash flow hedges	1,413	(1,529)	(944)
Less tax effect of other comprehensive income (loss) items	(288)
Other comprehensive income (loss)	10,021	1,022	(12,920)
Comprehensive income (loss)	135,798	47,148	(11,436)
Less comprehensive income (loss) attributable to the noncontrolling interest in consolidated subsidiaries	(27)	16	(1,826)
Less comprehensive income (loss) attributable Summit Holdings	4,360	9,803	(34,533)
Comprehensive income attributable to Summit Materials, Inc. / Summit Materials, LLC	131,465	37,329	24,923
Summit Materials, LLC
Net income (loss)	134,041	62,087	2,356
Other comprehensive income (loss):
Postretirement curtailment adjustment	429
Postretirement liability adjustment	699	426	2,123
Foreign currency translation adjustment	7,768	2,125	(14,099)
Income (loss) on cash flow hedges	1,413	(1,529)	(944)
Other comprehensive income (loss)	10,309	1,022	(12,920)
Comprehensive income (loss)	144,350	63,109	(10,564)
Less comprehensive income (loss) attributable to noncontrolling interest	(27)	16	(1,826)
Comprehensive income attributable to Summit Materials, Inc. / Summit Materials, LLC	$ 144,377	$ 63,093	$ (8,738)

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Cash flow from operating activities:
Net income (loss)	$ 125,777	$ 46,126	$ 1,484
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation, depletion, amortization and accretion	193,107	160,633	125,019
Share-based compensation expense	21,140	49,940	19,899
Deferred income tax benefit (expense)	(289,219)	(4,263)	(19,838)
Net gain on asset disposals	(7,638)	(3,102)	(23,087)
Non-cash loss on debt financings	3,856		(9,877)
Other	(2,359)	(1,282)	(1,629)
(Increase) decrease in operating assets, net of acquisitions:
Accounts receivable, net	(3,720)	2,511	3,852
Inventories	(18,609)	(10,297)	4,275
Costs and estimated earnings in excess of billings	(1,825)	(2,684)	6,604
Other current assets	8,703	(5,518)	11,438
Other assets	(3,103)	(2,350)	(1,369)
Increase (decrease) in operating liabilities, net of acquisitions:
Accounts payable	6,192	(5,751)	(4,241)
Accrued expenses	(7,006)	13,196	(14,354)
Billings in excess of costs and estimated earnings	109	700	1,313
Tax receivable agreement liability	273,194	58,145
Other liabilities	(6,416)	(51,141)	(1,286)
Net cash provided by operating activities	292,183	244,863	98,203
Cash flow from investing activities:
Acquisitions, net of cash acquired	(374,930)	(336,958)	(510,017)
Purchases of property, plant and equipment	(194,146)	(153,483)	(88,950)
Proceeds from the sale of property, plant and equipment	17,072	16,868	13,110
Other	(471)	2,921	1,510
Net cash used for investing activities	(552,475)	(470,652)	(584,347)
Cash flow from financing activities:
Proceeds from equity offerings	237,600		1,037,444
Capital issuance costs	(627)	(136)	(61,609)
Proceeds from debt issuances	302,000	354,000	1,748,875
Debt issuance costs	(6,416)	(5,801)	(14,246)
Payments on debt	(16,438)	(120,702)	(1,505,486)
Purchase of noncontrolling interests	(532)		(497,848)
Payments on acquisition-related liabilities	(34,650)	(32,040)	(18,056)
Distributions from partnership	(1,974)	(13,034)	(28,736)
Proceeds from stock option exercises	21,661	440
Other	(869)	(20)	(1)
Net cash provided by financing activities	499,755	182,707	660,337
Impact of cash on foreign currency	701	69	(1,003)
Net increase (decrease) in cash	240,164	(43,013)	173,190
Cash and cash equivalents-beginning of period	143,392	186,405	13,215
Cash and cash equivalents-end of period	383,556	143,392	186,405
Summit Materials, LLC
Cash flow from operating activities:
Net income (loss)	134,041	62,087	2,356
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation, depletion, amortization and accretion	192,213	159,579	124,147
Share-based compensation expense	21,140	49,940	19,899
Deferred income tax benefit (expense)	(7,638)	(3,102)	(23,087)
Net gain on asset disposals	3,856		(9,877)
Goodwill impairment	0
Non-cash loss on debt financings	(23,070)	(8,572)	(19,838)
Other	(2,359)	(1,282)	(1,629)
(Increase) decrease in operating assets, net of acquisitions:
Accounts receivable, net	(3,720)	2,511	3,852
Inventories	(18,609)	(10,297)	4,275
Costs and estimated earnings in excess of billings	(1,825)	(2,684)	6,604
Other current assets	8,703	(5,518)	11,438
Other assets	(3,103)	1,976	(1,369)
Increase (decrease) in operating liabilities, net of acquisitions:
Accounts payable	8,040	(5,706)	(4,241)
Accrued expenses	(6,230)	12,064	(14,354)
Billings in excess of costs and estimated earnings	109	700	1,313
Other liabilities	(6,416)	(6,819)	(1,286)
Net cash provided by operating activities	295,132	244,877	98,203
Cash flow from investing activities:
Acquisitions, net of cash acquired	(374,930)	(336,958)	(510,017)
Purchases of property, plant and equipment	(194,146)	(153,483)	(88,950)
Proceeds from the sale of property, plant and equipment	17,072	16,868	13,110
Other	(471)	2,921	1,510
Net cash used for investing activities	(552,475)	(470,652)	(584,347)
Cash flow from financing activities:
Capital contributions by member	304,541	27,377	507,766
Capital issuance costs	(627)	(136)	(12,930)
Proceeds from debt issuances	302,000	354,000	1,748,875
Debt issuance costs	(6,416)	(5,801)	(14,246)
Payments on debt	(16,438)	(120,702)	(1,505,486)
Purchase of noncontrolling interests	(532)
Payments on acquisition-related liabilities	(32,150)	(29,540)	(18,056)
Distributions from partnership	(51,986)	(42,192)	(46,603)
Other	(866)	(16)
Net cash provided by financing activities	497,526	182,990	659,320
Impact of cash on foreign currency	701	69	(1,003)
Net increase (decrease) in cash	240,884	(42,716)	172,173
Cash and cash equivalents-beginning of period	142,672	185,388	13,215
Cash and cash equivalents-end of period	$ 383,556	$ 142,672	$ 185,388

XML

Consolidated Statements of Changes in Stockholders' Equity / Member's Interest and Redeemable Noncontrolling Interest - USD ($) $ in Thousands	Summit Materials, LLC Redeemable Noncontrolling Interest	Summit Materials, LLC Members' equity	Summit Materials, LLC Total Member's Interest	Summit Materials, LLC Noncontrolling Interest in subsidiaries	Summit Materials, LLC Accumulated Earnings/Deficit	Summit Materials, LLC Accumulated Other Comprehensive Operations	Summit Materials, LLC	Redeemable Noncontrolling Interest	Partners' Interest	Noncontrolling Interest in subsidiaries	Accumulated Earnings/Deficit	Accumulated Other Comprehensive Operations	Common Stock Common Class A	Common Stock Common Class B	Additional Paid-in Capital	Noncontrolling Interest in Summit Inc.	Common Class A	Common Class B	Total
Beginning Balance at Dec. 27, 2014	$ 33,740
Increase (decrease) in redeemable noncontrolling interest
Accretion/ redemption value adjustment								$ 32,252
Net income (loss)								(1,890)
Ending Balance at Mar. 11, 2015								64,102
Beginning Balance at Dec. 27, 2014								33,740	$ 285,685	$ 1,298									$ 286,983
Beginning Balance at Dec. 27, 2014		$ 518,647	$ 286,983	$ 1,298	$ (217,416)	$ (15,546)
Increase (decrease) in stockholders' equity / members' interest and redeemable noncontrolling interest
Accretion/ redemption value adjustment									(32,252)										(32,252)
Net income (loss)									(41,338)	(77)									(41,415)
Other comprehensive income (loss)									(5,249)										(5,249)
Share-based compensation									424										424
Ending Balance at Mar. 11, 2015									207,270	1,221									208,491
Beginning Balance at Dec. 27, 2014	33,740
Increase (decrease) in redeemable noncontrolling interest
Accretion/ redemption value adjustment	(31,850)
Net income (loss)	$ (1,890)
Beginning Balance at Dec. 27, 2014								33,740	285,685	1,298									286,983
Beginning Balance at Dec. 27, 2014		518,647	286,983	1,298	(217,416)	(15,546)
Increase (decrease) in stockholders' equity / members' interest and redeemable noncontrolling interest
Net contributed capital		558,939	558,939
Accretion/ redemption value adjustment			(32,252)		(32,252)
Net income (loss)			4,246	64	4,182		$ 2,356												1,484
Other comprehensive income (loss)			(12,920)			(12,920)	(12,920)												(12,920)
Share-based compensation		19,899	19,899
Distributions		(46,603)	(46,603)
Ending Balance at Jan. 02, 2016										1,362	$ 10,870	$ (2,795)	$ 497	$ 690	$ 619,003	$ 138,233			767,860
Ending Balance at Jan. 02, 2016		1,050,882	778,292	1,362	(245,486)	(28,466)
Ending Balance (in shares) at Jan. 02, 2016													49,745,944	69,007,297
Beginning Balance at Mar. 11, 2015								64,102
Increase (decrease) in redeemable noncontrolling interest
Purchase of redeemable noncontrolling interest								$ (64,102)
Beginning Balance at Mar. 11, 2015									207,270	1,221									208,491
Increase (decrease) in stockholders' equity / members' interest and redeemable noncontrolling interest
Recording of noncontrolling interest upon reorganization									$ (207,270)							207,270
Net income (loss)										141	27,718					16,930			44,789
Issuance of Shares													$ 480	$ 690	(690)				975,835
Issuance of Shares (in shares)													47,981,653	69,007,397
Other comprehensive income (loss)												(2,795)				(4,876)			(7,671)
Share-based compensation															19,475				19,475
Share repurchase (in shares)														(100)
Purchase of noncontrolling interests															$ 18,515
Purchase of redeemable noncontrolling interests (in shares)													1,029,183
Purchase of redeemable noncontrolling interests													$ 10						18,525
Other (in shares)															975,355,000
Purchase of LP Units															$ (411,532)	(51,315)			(462,847)
Dividend											(16,848)		$ 7		17,880	(1,040)			(1)
Dividend (in shares)													735,108
Distributions from partnership																(28,736)			(28,736)
Ending Balance at Jan. 02, 2016										1,362	10,870	(2,795)	$ 497	$ 690	619,003	138,233			767,860
Ending Balance at Jan. 02, 2016		1,050,882	778,292	1,362	(245,486)	(28,466)
Ending Balance (in shares) at Jan. 02, 2016													49,745,944	69,007,297
Increase (decrease) in stockholders' equity / members' interest and redeemable noncontrolling interest
Net contributed capital		27,260	27,260
Net income (loss)			62,087	16	62,071		62,087			16	36,783					9,327			46,126
LP Unit exchanges													$ 451		117,813	(118,264)
LP Unit exchanges (in shares)													45,124,528
Other comprehensive income (loss)			1,022			1,022	1,022					546				476			1,022
Share-based compensation		51,624	49,940		(1,684)						(1,684)				51,624				49,940
Stock Option Exercises													$ 2		438				440
Options, Exercised (in shares)													24,354
Class B share cancellation														$ (690)	690
Class B share cancellation (in shares)														(69,007,197)
Distributions		(42,192)	(42,192)
Other		(16)	(16)												7,689				7,689
Other (in shares)													2,704
Dividend											(26,941)		$ 11		27,047	(121)			(4)
Dividend (in shares)													1,135,692
Distributions from partnership																(13,034)			(13,034)
Ending Balance at Dec. 31, 2016										1,378	19,028	(2,249)	$ 961		824,304	16,617			860,039
Ending Balance at Dec. 31, 2016		1,087,558	876,393	1,378	(185,099)	(27,444)	876,393
Ending Balance (in shares) at Dec. 31, 2016													96,033,222	100			96,033,222	100
Increase (decrease) in stockholders' equity / members' interest and redeemable noncontrolling interest
Net contributed capital		303,914	303,914
Net income (loss)			134,041	(27)	134,068		134,041			(27)	121,830					3,974			125,777
Issuance of Shares													$ 100		238,367	(1,496)			236,971
Issuance of Shares (in shares)													10,000,000
LP Unit exchanges													$ 15		4,159	(4,174)
LP Unit exchanges (in shares)													1,461,677
Other comprehensive income (loss)			10,309			10,309	10,309					9,635				386			10,021
Share-based compensation		21,140	21,140												21,140				21,140
Stock Option Exercises													$ 12		21,649				21,661
Options, Exercised (in shares)													1,203,121
Purchase of noncontrolling interests										(1,148)									(1,148)
Purchase of redeemable noncontrolling interests			(1,148)	(1,148)
Distributions		(51,986)	(51,986)
Other										$ (203)			$ 1		(562)				(764)
Other (in shares)													131,518
Other		(866)	(1,069)	$ (203)
Dividend											(45,025)		$ 15		45,163	(155)			(2)
Dividend (in shares)													1,521,056
Distributions from partnership																(1,974)			(1,974)
Ending Balance at Dec. 30, 2017											$ 95,833	$ 7,386	$ 1,104		$ 1,154,220	$ 13,178			$ 1,271,721
Ending Balance at Dec. 30, 2017		$ 1,359,760	$ 1,291,594		$ (51,031)	$ (17,135)	$ 1,291,594
Ending Balance (in shares) at Dec. 30, 2017													110,350,594	100			110,350,594	100

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Summary of Organization and Significant Accounting Policies

12 Months Ended

Dec. 30, 2017

Company Information

Summary of Organization and Significant Accounting Policies

(1) Summary of Organization and Significant Accounting Policies

Summit Materials, Inc. (“Summit Inc.” and, together with its subsidiaries, the “Company”) is a vertically-integrated construction materials company. The Company is engaged in the production and sale of aggregates, cement, ready-mix concrete, asphalt paving mix and concrete products and owns and operates quarries, sand and gravel pits, two cement plants, cement distribution terminals, ready-mix concrete plants, asphalt plants and landfill sites. It is also engaged in paving and related services. The Company’s three operating and reporting segments are the West, East and Cement segments.

Substantially all of the Company’s products and services are produced, consumed and performed outdoors, primarily in the spring, summer and fall. Seasonal changes and other weather-related conditions can affect the production and sales volumes of its products and delivery of services. Therefore, the financial results for any interim period are typically not indicative of the results expected for the full year. Furthermore, the Company’s sales and earnings are sensitive to national, regional and local economic conditions and to cyclical changes in construction spending, among other factors.

On September 23, 2014, Summit Inc. was formed as a Delaware corporation to be a holding company. Its sole material asset is a controlling equity interest in Summit Materials Holdings L.P. (“Summit Holdings”). Pursuant to a reorganization into a holding company structure (the “Reorganization”) consummated in connection with Summit Inc.’s March 2015 initial public offering, Summit Inc. became a holding corporation operating and controlling all of the business and affairs of Summit Holdings and its subsidiaries. Summit Inc. owns the majority of the partnership interests of Summit Holdings (see note 11, Stockholders’ Equity).  Summit Materials, LLC (“Summit LLC”) an indirect wholly owned subsidiary of Summit Holdings, conducts the majority of our operations. Continental Cement Company, L.L.C. (“Continental Cement”) is also a wholly owned subsidiary of Summit LLC. Summit Materials Finance Corp. (“Summit Finance”), an indirect wholly owned subsidiary of Summit LLC, has jointly issued our Senior Notes as described below.

Principles of Consolidation—The consolidated financial statements include the accounts of Summit Inc. and its majority owned subsidiaries. All intercompany balances and transactions have been eliminated. As a result of the Reorganization, Summit Holdings became a variable interest entity over which Summit Inc. has 100% voting power and control and for which Summit Inc. has the obligation to absorb losses and the right to receive benefits.

The Company’s fiscal year is based on a 52-53 week year with each quarter composed of 13 weeks ending on a Saturday. The 53-week year occurs approximately once every seven years and occurred in 2015. The additional week in the 53-week year was included in the fourth quarter of 2015.

For a summary of the changes in Summit Inc.’s ownership of Summit Holdings, see Note 11, Stockholders’ Equity.

The Company attributes consolidated stockholders’ equity and net income separately to the controlling and noncontrolling interests. The Company accounts for investments in entities for which it has an ownership of 20% to 50% using the equity method of accounting. 

Use of Estimates—Preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities and reported amounts of revenue and expenses. Such estimates include the valuation of accounts receivable, inventories, valuation of deferred tax assets, goodwill, intangibles and other long-lived assets, the tax receivable agreement (“TRA”) liability, pension and other postretirement obligations, and asset retirement obligations. Estimates also include revenue earned on contracts and costs to complete contracts. Most of the Company’s paving and related services are performed under fixed unit-price contracts with state and local governmental entities. Management regularly evaluates its estimates and assumptions based on historical experience and other factors, including the current economic environment. As future events and their effects cannot be determined with precision, actual results can differ significantly from estimates made. Changes in estimates, including those resulting from continuing changes in the economic environment, are reflected in the Company’s consolidated financial statements when the change in estimate occurs.

Business and Credit Concentrations—The Company’s operations are conducted primarily across 23 U.S. states and in British Columbia, Canada, with the most significant revenue generated in Texas, Utah, Kansas and Missouri. The Company’s accounts receivable consist primarily of amounts due from customers within these areas. Therefore, collection of these accounts is dependent on the economic conditions in the aforementioned states, as well as specific situations affecting individual customers. Credit granted within the Company’s trade areas has been granted to many customers and management does not believe that a significant concentration of credit exists with respect to any individual customer or group of customers. No single customer accounted for more than 10% of the Company’s total revenue in 2017, 2016 or 2015.

Accounts Receivable—Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the collectability of individual accounts. In establishing the allowance, management considers historical losses adjusted to take into account current market conditions and its customers’ financial condition, the amount of receivables in dispute, the current receivables aging and current payment terms. Balances that remain outstanding after reasonable collection efforts are exercised are written off through a charge to the valuation allowance.

The balances billed but not paid by customers, pursuant to retainage provisions included in contracts, are generally due upon completion of the contracts. 

Revenue Recognition—We earn revenue from the sale of products, which primarily include aggregates, cement, ready-mix concrete and asphalt, but also include concrete products and plastics components, and from the provision of services, which are primarily paving and related services, but also include landfill operations, the receipt and disposal of waste that is converted to fuel for use in our cement plants and underground storage space rental.

Revenue for product sales is recognized when evidence of an arrangement exists, the fee is fixed or determinable, title passes, which is generally when the product is shipped, and collection is reasonably assured. Product revenue generally includes sales of aggregates, cement and other materials to customers, net of discounts or allowances or taxes, if any, and freight and delivery charges billed to customers. Freight and delivery charges associated with cement sales are recorded on a net basis together with freight costs within cost of sales.

Revenue from the receipt of waste fuels is recognized when the waste is accepted and a corresponding liability is recognized for the costs to process the waste into fuel for the manufacturing of cement or to ship the waste offsite for disposal in accordance with applicable regulations.

We account for revenue and earnings on our long-term paving and related services contracts as service revenue using the percentage-of-completion method of accounting. Under the percentage-of-completion method, we recognize paving and related services revenue as services are rendered. We estimate profit as the difference between total estimated revenue and total estimated cost of a contract and recognize that profit over the life of the contract based on input measures. We generally measure progress toward completion on long-term paving and related services contracts based on the proportion of costs incurred to date relative to total estimated costs at completion. We include revisions of estimated profits on contracts in earnings under the cumulative catch-up method, under which the effect of revisions in estimates is recognized immediately. If a revised estimate of contract profitability reveals an anticipated loss on the contract, we recognize the loss in the period it is identified.

The percentage-of-completion method of accounting involves the use of various estimating techniques to project costs at completion, and in some cases includes estimates of recoveries asserted against the customer for changes in specifications or other disputes. Contract estimates involve various assumptions and projections relative to the outcome of future events over multiple periods, including future labor productivity and availability, the nature and complexity of the work to be performed, the cost and availability of materials, the effect of delayed performance, and the availability and timing of funding from the customer. These estimates are based on our best judgment. A significant change in one or more of these estimates could affect the profitability of one or more of our contracts. We review our contract estimates regularly to assess revisions in contract values and estimated costs at completion.

We recognize revenue arising from claims either as income or as an offset against a potential loss only when the amount of the claim can be estimated reliably and its realization is probable. In evaluating these criteria, we consider the contractual basis for the claim, the cause of any additional costs incurred, the reasonableness of those costs and the objective evidence available to support the claim. 

Inventories—Inventories consist of stone that has been removed from quarries and processed for future sale, cement, raw materials and finished concrete blocks. Inventories are valued at the lower of cost or market and are accounted for on a first-in first-out basis or an average cost basis. If items become obsolete or otherwise unusable or if quantities exceed what is projected to be sold within a reasonable period of time, they will be charged to costs of production in the period that the items are designated as obsolete or excess inventory. Stripping costs are costs of removing overburden and waste material to access aggregate materials and are expensed as incurred. 

Property, Plant and Equipment, net—Property, plant and equipment are recorded at cost, less accumulated depreciation, depletion and amortization. Expenditures for additions and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Repair and maintenance costs that do not substantially expand productive capacity or extend the life of property, plant and equipment are expensed as incurred.

Landfill airspace is included in property, plant and equipment at cost and is amortized based on the portion of the airspace used during the period compared to the gross estimated value of available airspace, which is updated periodically as circumstances dictate. Management reassesses the landfill airspace capacity with any changes in value recorded in cost of revenue. Capitalized landfill costs include expenditures for the acquisition of land and related airspace, engineering and permitting costs, cell construction costs and direct site improvement costs.

Upon disposal of an asset, the cost and related accumulated depreciation are removed from the Company’s accounts and any gain or loss is included in general and administrative expenses.

The Company reviews the carrying value of property, plant and equipment for impairment whenever events or circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. Such indicators may include, among others, deterioration in general economic conditions, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows or a trend of negative or declining cash flows over multiple periods.

Property, plant and equipment is tested for impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. As a result, the property, plant and equipment impairment test is at a significantly lower level than the level at which goodwill is tested for impairment. In markets where the Company does not produce downstream products, such as ready-mix concrete, asphalt paving mix and paving and related services, the lowest level of largely independent identifiable cash flows is at the individual aggregates operation or a group of aggregates operations collectively serving a local market or the cement operations. Conversely, in vertically-integrated markets, the cash flows of the downstream and upstream businesses are not largely independently identifiable and the vertically-integrated operations are considered the lowest level of largely independent identifiable cash flows.

Accrued Mining and Landfill Reclamation—The mining reclamation reserve and financial commitments for landfill closure and post-closure activities are based on management’s estimate of future cost requirements to reclaim property at both currently operating and closed sites. Estimates of these obligations have been developed based on management’s interpretation of current requirements and proposed regulatory changes and are intended to approximate fair value. Costs are estimated in current dollars, inflated until the expected time of payment, and then discounted back to present value using a credit-adjusted, risk-free rate on obligations of similar maturity, adjusted to reflect the Company’s credit rating. Changes in the credit-adjusted, risk-free rate do not change recorded liabilities. However, subsequent increases in the recognized obligations are measured using a current credit-adjusted, risk-free rate. Decreases in the recognized obligations are measured at the initial credit-adjusted, risk-free rate.

Significant changes in inflation rates or the amount or timing of future cost estimates typically result in both (1) a current adjustment to the recorded liability (and corresponding adjustment to the asset) and (2) a change in accretion of the liability and depreciation of the asset to be recorded prospectively over the remaining capacity of the unmined quarry or landfill. 

Goodwill—Goodwill represents the purchase price paid in excess of the fair value of net tangible and intangible assets acquired. Goodwill recorded in connection with the Company’s acquisitions is primarily attributable to the expected profitability, assembled workforces of the acquired businesses and the synergies expected to arise after the Company’s acquisition of those businesses. Goodwill is not amortized, but is tested annually for impairment as of the first day of the fourth quarter and at any time that events or circumstances indicate that goodwill may be impaired. A qualitative approach may first be applied to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If, as a result of the qualitative assessment, it is determined that an impairment is more likely than not, the two-step quantitative impairment test is then performed, otherwise further analysis is not required. The two-step impairment test first identifies potential goodwill impairment for each reporting unit and then, if necessary, measures the amount of the impairment loss.

Income Taxes—Summit Inc. is a corporation subject to income taxes in the United States. Certain subsidiaries, including Summit Holdings, or subsidiary groups of the Company are taxable separate from Summit Inc. The provisions, or Summit Inc.’s proportional share of the provision, are included in the Company’s consolidated financial statements.

The Company’s deferred income tax assets and liabilities are computed for differences between the tax basis and financial statement amounts that will result in taxable or deductible amounts in the future. The computed deferred balances are based on enacted tax laws and applicable rates for the periods in which the differences are expected to affect taxable income. A valuation allowance is recognized for deferred tax assets if it is more likely than not that some portion or all of the net deferred tax assets will not be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines it would be able to realize its deferred tax assets for which a valuation allowance had been recorded then an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

The Company evaluates the tax positions taken on income tax returns that remain open and positions expected to be taken on the current year tax returns to identify uncertain tax positions. Unrecognized tax benefits on uncertain tax positions are recorded on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is more than 50 percent likely to be realized is recognized. Interest and penalties related to unrecognized tax benefits are recorded in income tax benefit. 

Tax Receivable Agreement— When Summit Inc. purchases LP Units for cash or LP Units are exchanged for shares of Class A common stock, this results in increases in Summit Inc.’s share of the tax basis of the tangible and intangible assets, which increases the tax depreciation and amortization deductions that otherwise would not have been available to Summit Inc.  These increases in tax basis and tax depreciation and amortization deductions are expected to reduce the amount of cash taxes that we would otherwise be required to pay in the future. Prior to our IPO, we entered into a TRA with the pre-IPO owners that require us to pay the pre-IPO owners 85% of the amount of cash savings, if any, in U.S. federal, state, and local income tax that we actually realize as a result of these exchanges.  These benefits include (1) increases in the tax basis of tangible and intangible assets of Summit Holdings and certain other tax benefits related to entering into the TRA, (2) tax benefits attributable to payments under the TRA, or (3) under certain circumstances such as an early termination of the TRA, we are deemed to realize, as a result of the increases in tax basis in connection with exchanges by the pre-IPO owners described above and certain other tax benefits attributable to payments under the TRA.

As noted above, we periodically evaluate the realizability of the deferred tax assets resulting from the exchange of LP Units for Class A common stock. If the deferred tax assets are determined to be realizable, we then assess whether payment of amounts under the TRA have become probable. If so, we record a TRA liability equal to 85% of such deferred tax assets. In subsequent periods, we assess the realizability of all of our deferred tax assets subject to the TRA. Should we determine a deferred tax asset with a valuation allowance is realizable in a subsequent period, the related valuation allowance will be released and consideration of a corresponding TRA liability will be assessed. The realizability of deferred tax assets, including those subject to the TRA, is dependent upon the generation of future taxable income during the periods in which those deferred tax assets become deductible and consideration of prudent and feasible tax-planning strategies.

The measurement of the TRA is accounted for as a contingent liability. Therefore, once we determine that a payment to a pre-IPO owner has become probable and can be estimated, the estimate of payment will be accrued.

Earnings per Share—The Company computes basic earnings per share attributable to stockholders by dividing income attributable to Summit Inc. by the weighted-average shares of Class A common stock outstanding. Diluted earnings per share reflects the potential dilution beyond shares for basic earnings per share that could occur if securities or other contracts to issue common stock were exercised, converted into common stock, or resulted in the issuance of common stock that would have shared in the Company’s earnings. Since the Class B common stock has no economic value, those shares are not included in the weighted-average common share amount for basic or diluted earnings per share. In addition, as the shares of Class A common stock are issued by Summit Inc., the earnings and equity interests of noncontrolling interests are not included in basic earnings per share.

New Accounting Standards — In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which prescribes a five-step model for revenue recognition that will replace most existing revenue recognition guidance in U.S. GAAP. The ASU will supersede nearly all existing revenue recognition guidance under U.S. GAAP and provides that an entity recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB postponed the effective date of the new revenue standard by one year to the first quarter of 2018. In applying these ASUs, an entity is permitted to use either the full retrospective or cumulative effect transition approach. We plan to adopt these ASU’s using the modified retrospective approach. We have evaluated the impact of adoption of these standards on our consolidated financial statements, which was not material.

In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business, which narrows the definition of a business. This ASU provides a screen to determine whether a group of assets constitutes a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated as acquisitions. If the screen is not met, this ASU (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output and (2) removes the evaluation of whether a market participant could replace missing elements. Although outputs are not required for a set to be a business, outputs generally are a key element of a business; therefore, the FASB has developed more stringent criteria for sets without outputs. The ASU is effective for public companies for annual periods beginning after December 15, 2017. The adoption of this ASU will not have a material impact on the consolidated financial statements.

In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires that the service cost component be reported in the same line item as employer compensation costs and that the other components of periodic pension costs be reported outside of operating income. The ASU also restricts capitalization of costs to the service cost component. The ASU is effective for public companies for annual periods beginning after December 15, 2017. The Company early adopted this ASU as of the beginning of fiscal year 2017 on a retrospective basis; accordingly, the Company reclassified $278,000 and $383,000 from product cost of revenue to other income for the year ended December 31, 2016 and January 2, 2016, respectively, and $350,000 from general and administrative expenses to other income for the year ended December 31, 2016, to conform to the current year presentation.

In January 2017, the FASB issued a new ASU No. 2017-04 Intangibles - Goodwill and Other (Topic 350), which simplifies the test for goodwill impairment. The ASU eliminates the two step goodwill impairment test and replaces it with a single step test. The single step test compares the carrying amount of a reporting unit to its fair value; if the carrying amount is greater than the fair value the difference is the amount of the goodwill impairment.  Step zero is left unchanged. Therefore, entities that wish do a qualitative assessment are still permitted to do so. The ASU is effective for Securities and Exchange Commission (“SEC”) filers for fiscal years beginning after December 15, 2020. The Company early adopted this ASU as of the beginning of fiscal year 2017 which adoption did not have a material impact on our consolidated financial statements.

In March 2016, the FASB issued a new accounting standard with targeted amendments to the accounting for employee share-based payments. ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, requires that the income tax effect of share-based awards be recognized in the income statement and allows entities to elect an accounting method to recognize forfeitures as they occur or to estimate forfeitures, as is currently required. The ASU is effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. However, the Company early adopted this ASU as of the beginning of fiscal year 2016 and made an election to recognize forfeitures as they occur. The ASU adoption was applied using a modified retrospective method by means of a $1.7 million cumulative-effect adjustment to accumulated earnings as of the beginning of the fiscal year.

Summit Materials, LLC

Company Information

Summary of Organization and Significant Accounting Policies

(1) Summary of Organization and Significant Accounting Policies

Summit Materials, LLC (“Summit LLC” and, together with its subsidiaries, the “Company”) is a vertically integrated, construction materials company. The Company is engaged in the production and sale of aggregates, cement, ready-mix concrete, asphalt paving mix and concrete products and owns and operates quarries, sand and gravel pits, two cement plants, cement distribution terminals, ready-mix concrete plants, asphalt plants and landfill sites. It is also engaged in paving and related services. The Company’s three operating and reporting segments are the West, East and Cement segments.

Substantially all of the Company’s products and services are produced, consumed and performed outdoors, primarily in the spring, summer and fall. Seasonal changes and other weather-related conditions can affect the production and sales volumes of its products and delivery of services. Therefore, the financial results for any interim period are typically not indicative of the results expected for the full year. Furthermore, the Company’s sales and earnings are sensitive to national, regional and local economic conditions and to cyclical changes in construction spending, among other factors.

Summit LLC is a wholly owned indirect subsidiary of Summit Materials Holdings L.P. (“Summit Holdings”), whose primary owner is Summit Materials, Inc. (“Summit Inc.”). Summit Inc. was formed as a Delaware corporation on September 23, 2014. Its sole material asset is a controlling equity interest in Summit Holdings. Pursuant to a reorganization into a holding company structure (the “Reorganization”) in connection with Summit Inc.’s March 2015 initial public offering, Summit Inc. became a holding corporation operating and controlling all of the business and affairs of Summit Holdings and its subsidiaries, including Summit LLC.

Principles of Consolidation–The consolidated financial statements include the accounts of Summit LLC and its majority owned subsidiaries. All intercompany balances and transactions have been eliminated. The Company attributes consolidated member’s interest and net income separately to the controlling and noncontrolling interests. Noncontrolling interests in consolidated subsidiaries represent a 20% ownership in Ohio Valley Asphalt, LLC and, prior to the initial public offering (“IPO”) and concurrent purchase of the noncontrolling interests Continental Cement Company, L.L.C. (“Continental Cement”), a 30% redeemable ownership in Continental Cement. The Company accounts for investments in entities for which it has an ownership of 20% to 50% using the equity method of accounting. In the fourth quarter of 2017, we purchased the remaining noncontrolling interest in Ohio Valley Asphalt, LLC.

The Company’s fiscal year is based on a 52-53 week year with each quarter composed of 13 weeks ending on a Saturday. The 53-week year occurs approximately once every seven years and occurred in 2015. The additional week in the 53-week year was included in the fourth quarter of 2015.

Use of Estimates— Preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities and reported amounts of revenue and expenses. Such estimates include the valuation of accounts receivable, inventories, valuation of deferred tax assets, goodwill, intangibles and other long-lived assets, pension and other postretirement obligations and asset retirement obligations. Estimates also include revenue earned on contracts and costs to complete contracts. Most of the Company’s paving and related services are performed under fixed unit-price contracts with state and local governmental entities. Management regularly evaluates its estimates and assumptions based on historical experience and other factors, including the current economic environment. As future events and their effects cannot be determined with precision, actual results can differ significantly from estimates made. Changes in estimates, including those resulting from continuing changes in the economic environment, are reflected in the Company’s consolidated financial statements when the change in estimate occurs.

Business and Credit Concentrations—The Company’s operations are conducted primarily across 23 U.S. states and in British Columbia, Canada, with the most significant revenue generated in Texas, Utah, Kansas and Missouri. The Company’s accounts receivable consist primarily of amounts due from customers within these areas. Therefore, collection of these accounts is dependent on the economic conditions in the aforementioned states, as well as specific situations affecting individual customers. Credit granted within the Company’s trade areas has been granted to many customers and management does not believe that a significant concentration of credit exists with respect to any individual customer or group of customers. No single customer accounted for more than 10% of the Company’s total revenue in 2017, 2016 or 2015.

Accounts Receivable—Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the collectability of individual accounts. In establishing the allowance, management considers historical losses adjusted to take into account current market conditions and its customers’ financial condition, the amount of receivables in dispute, the current receivables aging and current payment terms. Balances that remain outstanding after reasonable collection efforts are exercised are written off through a charge to the valuation allowance.

The balances billed but not paid by customers, pursuant to retainage provisions included in contracts, are generally due upon completion of the contracts. 

Revenue Recognition—We earn revenue from the sale of products, which primarily include aggregates, cement, ready-mix concrete and asphalt, but also include concrete products and plastics components, and from the provision of services, which are primarily paving and related services, but also include landfill operations, the receipt and disposal of waste that is converted to fuel for use in our cement plants and underground storage space rental.

Revenue for product sales is recognized when evidence of an arrangement exists, the fee is fixed or determinable, title passes, which is generally when the product is shipped, and collection is reasonably assured. Product revenue generally includes sales of aggregates, cement and other materials to customers, net of discounts or allowances or taxes, if any, and freight and delivery charges billed to customers. Freight and delivery charges associated with cement sales are recorded on a net basis together with freight costs within cost of sales.

Revenue from the receipt of waste fuels is recognized when the waste is accepted and a corresponding liability is recognized for the costs to process the waste into fuel for the manufacturing of cement or to ship the waste offsite for disposal in accordance with applicable regulations.

We account for revenue and earnings on our long-term paving and related services contracts as service revenue using the percentage-of-completion method of accounting. Under the percentage-of-completion method, we recognize paving and related services revenue as services are rendered. We estimate profit as the difference between total estimated revenue and total estimated cost of a contract and recognize that profit over the life of the contract based on input measures. We generally measure progress toward completion on long-term paving and related services contracts based on the proportion of costs incurred to date relative to total estimated costs at completion. We include revisions of estimated profits on contracts in earnings under the cumulative catch-up method, under which the effect of revisions in estimates is recognized immediately. If a revised estimate of contract profitability reveals an anticipated loss on the contract, we recognize the loss in the period it is identified.

The percentage-of-completion method of accounting involves the use of various estimating techniques to project costs at completion, and in some cases includes estimates of recoveries asserted against the customer for changes in specifications or other disputes. Contract estimates involve various assumptions and projections relative to the outcome of future events over multiple periods, including future labor productivity and availability, the nature and complexity of the work to be performed, the cost and availability of materials, the effect of delayed performance, and the availability and timing of funding from the customer. These estimates are based on our best judgment. A significant change in one or more of these estimates could affect the profitability of one or more of our contracts. We review our contract estimates regularly to assess revisions in contract values and estimated costs at completion.

We recognize revenue arising from claims either as income or as an offset against a potential loss only when the amount of the claim can be estimated reliably and its realization is probable. In evaluating these criteria, we consider the contractual basis for the claim, the cause of any additional costs incurred, the reasonableness of those costs and the objective evidence available to support the claim. 

Inventories—Inventories consist of stone that has been removed from quarries and processed for future sale, cement, raw materials and finished concrete blocks. Inventories are valued at the lower of cost or market and are accounted for on a first-in first-out basis or an average cost basis. If items become obsolete or otherwise unusable or if quantities exceed what is projected to be sold within a reasonable period of time, they will be charged to costs of production in the period that the items are designated as obsolete or excess inventory. Stripping costs are costs of removing overburden and waste material to access aggregate materials and are expensed as incurred. 

Property, Plant and Equipment, net—Property, plant and equipment are recorded at cost, less accumulated depreciation, depletion and amortization. Expenditures for additions and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Repair and maintenance costs that do not substantially expand productive capacity or extend the life of property, plant and equipment are expensed as incurred.

Landfill airspace is included in property, plant and equipment at cost and is amortized based on the portion of the airspace used during the period compared to the gross estimated value of available airspace, which is updated periodically as circumstances dictate. Management reassesses the landfill airspace capacity with any changes in value recorded in cost of revenue. Capitalized landfill costs include expenditures for the acquisition of land and related airspace, engineering and permitting costs, cell construction costs and direct site improvement costs.

Upon disposal of an asset, the cost and related accumulated depreciation are removed from the Company’s accounts and any gain or loss is included in general and administrative expenses.

The Company reviews the carrying value of property, plant and equipment for impairment whenever events or circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. Such indicators may include, among others, deterioration in general economic conditions, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows or a trend of negative or declining cash flows over multiple periods.

Property, plant and equipment is tested for impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. As a result, the property, plant and equipment impairment test is at a significantly lower level than the level at which goodwill is tested for impairment. In markets where the Company does not produce downstream products, such as ready-mix concrete, asphalt paving mix and paving and related services, the lowest level of largely independent identifiable cash flows is at the individual aggregates operation or a group of aggregates operations collectively serving a local market or the cement operations. Conversely, in vertically-integrated markets, the cash flows of the downstream and upstream businesses are not largely independently identifiable and the vertically-integrated operations are considered the lowest level of largely independent identifiable cash flows.

Accrued Mining and Landfill Reclamation—The mining reclamation reserve and financial commitments for landfill closure and post-closure activities are based on management’s estimate of future cost requirements to reclaim property at both currently operating and closed sites. Estimates of these obligations have been developed based on management’s interpretation of current requirements and proposed regulatory changes and are intended to approximate fair value. Costs are estimated in current dollars, inflated until the expected time of payment, and then discounted back to present value using a credit-adjusted, risk-free rate on obligations of similar maturity, adjusted to reflect the Company’s credit rating. Changes in the credit-adjusted, risk-free rate do not change recorded liabilities. However, subsequent increases in the recognized obligations are measured using a current credit-adjusted, risk-free rate. Decreases in the recognized obligations are measured at the initial credit-adjusted, risk-free rate.

Significant changes in inflation rates or the amount or timing of future cost estimates typically result in both (1) a current adjustment to the recorded liability (and corresponding adjustment to the asset) and (2) a change in accretion of the liability and depreciation of the asset to be recorded prospectively over the remaining capacity of the unmined quarry or landfill. 

Goodwill—Goodwill represents the purchase price paid in excess of the fair value of net tangible and intangible assets acquired. Goodwill recorded in connection with the Company’s acquisitions is primarily attributable to the expected profitability, assembled workforces of the acquired businesses and the synergies expected to arise after the Company’s acquisition of those businesses. Goodwill is not amortized, but is tested annually for impairment as of the first day of the fourth quarter and at any time that events or circumstances indicate that goodwill may be impaired. A qualitative approach may first be applied to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If, as a result of the qualitative assessment, it is determined that an impairment is more likely than not, the two-step quantitative impairment test is then performed, otherwise further analysis is not required. The two-step impairment test first identifies potential goodwill impairment for each reporting unit and then, if necessary, measures the amount of the impairment loss.

Income Taxes—As a limited liability company, the Company’s federal and state income tax attributes are generally passed to its member. However, certain subsidiaries, or subsidiary groups, of the Company are taxable entities subject to income taxes in the United States and Canada, the provisions for which are included in the consolidated financial statements. Significant judgments and estimates are required in the determination of the consolidated income tax expense.

The Company’s deferred income tax assets and liabilities are computed for differences between the tax basis and financial statement amounts that will result in taxable or deductible amounts in the future. The computed deferred balances are based on enacted tax laws and applicable rates for the periods in which the differences are expected to affect taxable income. A valuation allowance is recognized for deferred tax assets if it is more likely than not that some portion or all of the net deferred tax assets will not be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines it would be able to realize its deferred tax assets for which a valuation allowance had been recorded then an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

The Company evaluates the tax positions taken on income tax returns that remain open and positions expected to be taken on the current year tax returns to identify uncertain tax positions. Unrecognized tax benefits on uncertain tax positions are recorded on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is more than 50 percent likely to be realized is recognized. Interest and penalties related to unrecognized tax benefits are recorded in income tax benefit.

New Accounting Standards — In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which prescribes a five-step model for revenue recognition that will replace most existing revenue recognition guidance in U.S. GAAP. The ASU will supersede nearly all existing revenue recognition guidance under U.S. GAAP and provides that an entity recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB postponed the effective date of the new revenue standard by one year to the first quarter of 2018. In applying these ASUs, an entity is permitted to use either the full retrospective or cumulative effect transition approach. We plan to adopt these ASU’s using the modified retrospective approach. We have evaluated the impact of adoption of these standards on our consolidated financial statements, which was not material.

In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business, which narrows the definition of a business. This ASU provides a screen to determine whether a group of assets constitutes a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated as acquisitions. If the screen is not met, this ASU (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output and (2) removes the evaluation of whether a market participant could replace missing elements. Although outputs are not required for a set to be a business, outputs generally are a key element of a business; therefore, the FASB has developed more stringent criteria for sets without outputs. The ASU is effective for public companies for annual periods beginning after December 15, 2017. The adoption of this ASU will not have a material impact on the consolidated financial statements.

In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires that the service cost component be reported in the same line item as employer compensation costs and that the other components of periodic pension costs be reported outside of operating income. The ASU also restricts capitalization of costs to the service cost component. The ASU is effective for public companies for annual periods beginning after December 15, 2017. The Company early adopted this ASU as of the beginning of fiscal year 2017 on a retrospective basis; accordingly, the Company reclassified $278,000 and $383,000 from product cost of revenue to other income for the year ended December 31, 2016 and January 2, 2016, respectively, and $350,000 from general and administrative expenses to other income for the year ended December 31, 2016, to conform to the current year presentation.

In January 2017, the FASB issued ASU No. 2017-04 Intangibles - Goodwill and Other (Topic 350), which simplifies the test for goodwill impairment. The ASU eliminates the two step goodwill impairment test and replaces it with a single step test.  The single step test compares the carrying amount of a reporting unit to its fair value; if the carrying amount is greater than the fair value the difference is the amount of the goodwill impairment. Step zero is left unchanged. Therefore, entities that wish do a qualitative assessment are still permitted to do so. The ASU is effective for Securities and Exchange Commission (“SEC”) filers for fiscal years beginning after December 15, 2020. The Company early adopted this ASU as of the beginning of fiscal year 2017, which adoption did not have a material impact on our consolidated financial statements.

In March 2016, the FASB issued a new accounting standard with targeted amendments to the accounting for employee share-based payments. ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, requires that the income tax effect of share-based awards be recognized in the income statement and allows entities to elect an accounting method to recognize forfeitures as they occur or to estimate forfeitures, as is currently required. The ASU is effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. However, the Company early adopted this ASU as of the beginning of fiscal year 2016 and made an election to recognize forfeitures as they occur. The ASU adoption was applied using a modified retrospective method by means of a $1.7 million cumulative-effect adjustment to accumulated earnings as of the beginning of the fiscal year.

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Acquisitions

12 Months Ended

Dec. 30, 2017

Acquisitions

(2) Acquisitions

The Company has completed numerous acquisitions since its formation, which have been financed through a combination of debt and equity funding. The operations of each acquisition have been included in the Company’s consolidated results of operations since the respective closing dates of the acquisitions. The Company measures all assets acquired and liabilities assumed at their acquisition-date fair value. The following table summarizes the Company’s acquisitions by region and year:

	2017		2016		2015
West		6		3		3
East		8		5		—
Cement		—		1		1

The purchase price allocation for the 2017 acquisitions has not yet been finalized due to the recent timing of the acquisitions and status of the valuation of property, plant and equipment. The table below summarizes aggregated information regarding the fair values of the assets acquired and liabilities assumed as of the respective acquisition dates. Information related to the 2017 acquisitions is shown on an aggregated basis as the acquisitions were not material individually, or collectively.

	2017		2016
Financial assets (1)	$	31,615	$	22,204
Inventories		8,300		17,215
Property, plant and equipment		160,975		180,321
Intangible assets		161		5,531
Other assets		4,200		6,757
Financial liabilities (1)		(15,501)		(20,248)
Other long-term liabilities		(17,610)		(36,074)
Net assets acquired		172,140		175,706
Goodwill		247,536		176,319
Purchase price		419,676		352,025
Acquisition-related liabilities		(43,452)		(17,034)
Other		(1,294)		1,967
Net cash paid for acquisitions	$	374,930	$	336,958

(1) In the first quarter of 2017, we reclassified $1.2 million of accounts payable overdrafts from financial assets to financial liabilities for the year ended December 31, 2016.

Acquisition-Related Liabilities—A number of acquisition-related liabilities have been recorded subject to terms in the relevant purchase agreements, including deferred consideration and noncompete payments. Noncompete payments have been accrued where certain former owners of newly acquired companies have entered into standard noncompete arrangements. Subject to terms and conditions stated in these noncompete agreements, payments are generally made over a five-year period. Deferred consideration is purchase price consideration paid in the future as agreed to in the purchase agreement and is not contingent on future events. Deferred consideration is generally scheduled to be paid in years ranging from five to 20 years in annual installments. The remaining payments due under these noncompete and deferred consideration agreements are as follows:

2018	$	13,760
2019		9,187
2020		7,973
2021		7,958
2022		1,803
Thereafter		6,763
Total scheduled payments		47,444
Present value adjustments		(10,117)
Total noncompete obligations and deferred consideration	$	37,327

Accretion on the deferred consideration and noncompete obligations is recorded in interest expense.

Summit Materials, LLC

Acquisitions

(2) Acquisitions

The Company has completed numerous acquisitions since its formation, which have been financed through a combination of debt and equity funding. The operations of each acquisition have been included in the Company’s consolidated results of operations since the respective closing dates of the acquisitions. The Company measures all assets acquired and liabilities assumed at their acquisition-date fair value. The following table summarizes the Company’s acquisitions by region and year:

	2017		2016		2015
West		6		3		3
East		8		5		—
Cement		—		1		1

The purchase price allocation for the 2017 acquisitions has not yet been finalized due to the recent timing of the acquisitions and status of the valuation of property, plant and equipment. The table below summarizes aggregated information regarding the fair values of the assets acquired and liabilities assumed as of the respective acquisition dates. Information related to the 2017 acquisitions is shown on an aggregated basis as the acquisitions were not material individually, or collectively.

	2017		2016
Financial assets (1)	$	31,615	$	22,204
Inventories		8,300		17,215
Property, plant and equipment		160,975		180,321
Intangible assets		161		5,531
Other assets		4,200		6,757
Financial liabilities (1)		(15,501)		(20,248)
Other long-term liabilities		(17,610)		(36,074)
Net assets acquired		172,140		175,706
Goodwill		247,536		176,319
Purchase price		419,676		352,025
Acquisition-related liabilities		(43,452)		(17,034)
Other		(1,294)		1,967
Net cash paid for acquisitions	$	374,930	$	336,958

(1) In the first quarter of 2017, we reclassified $1.2 million of accounts payable overdrafts from financial assets to financial liabilities for the year ended December 31, 2016.

Acquisition-Related Liabilities—A number of acquisition-related liabilities have been recorded subject to terms in the relevant purchase agreements, including deferred consideration and noncompete payments. Noncompete payments have been accrued where certain former owners of newly acquired companies have entered into standard noncompete arrangements. Subject to terms and conditions stated in these noncompete agreements, payments are generally made over a five-year period. Deferred consideration is purchase price consideration paid in the future as agreed to in the purchase agreement and is not contingent on future events. Deferred consideration is generally scheduled to be paid in years ranging from five to 20 years in annual installments. The remaining payments due under these noncompete and deferred consideration agreements are as follows:

2018		11,260
2019		6,687
2020		5,473
2021		5,458
2022		1,803
Thereafter		6,763
Total scheduled payments		37,444
Present value adjustments		(8,513)
Total noncompete obligations and deferred consideration	$	28,931

Accretion on the deferred consideration and noncompete obligations is recorded in interest expense.

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Goodwill

12 Months Ended

Dec. 30, 2017

Goodwill

(3) Goodwill

As of December 30, 2017, the Company had 12 reporting units with goodwill for which the annual goodwill impairment test was completed. We perform the annual impairment test on the first day of the fourth quarter each year. We initially perform a qualitative analysis. As a result of this analysis, it was determined that it is more likely than not that the fair value of five reporting units were greater than its carrying value. For the remaining reporting units we perform a two-step quantitative analysis. Step 1 of that analysis compares the estimated the fair value of the reporting units using an income approach (i.e., a discounted cash flow technique) and a market approach to the carrying value of the reporting unit. If the estimated fair value exceeds its carrying value, the goodwill of the reporting unit is not considered impaired. If the carrying value of the reporting unit exceeds its fair value, we proceed to the second step to measure the amount of potential impairment loss. Based on this analysis, it was determined that the reporting units’ fair values were greater than their carrying values and no impairment charges were recognized in 2017. The accumulated impairment charges recognized in periods prior to 2015 totaled $68.2 million.

These estimates of a reporting unit’s fair value involve significant management estimates and assumptions, including but not limited to sales prices of similar assets, assumptions related to future profitability, cash flows, and discount rates. These estimates are based upon historical trends, management’s knowledge and experience and overall economic factors, including projections of future earnings potential. Developing discounted future cash flow estimates in applying the income approach required management to evaluate its intermediate to longer-term strategies, including, but not limited to, estimates about revenue growth, operating margins, capital requirements, inflation and working capital management. The development of appropriate rates to discount the estimated future cash flows required the selection of risk premiums, which can materially affect the present value of estimated future cash flows.

The following table presents goodwill by reportable segments and in total:

	West		East		Cement		Total
Balance, January 2, 2016	$	303,926	$	98,308	$	194,163	$	596,397
Acquisitions		29,006		145,109		10,375		184,490
Foreign currency translation adjustments		1,325		—		—		1,325
Balance, December 31, 2016	$	334,257	$	243,417	$	204,538	$	782,212
Acquisitions (1)		187,883		61,957		118		249,958
Foreign currency translation adjustments		4,150		—		—		4,150
Balance, December 30, 2017	$	526,290	$	305,374	$	204,656	$	1,036,320

(1) Reflects goodwill from 2017 acquisitions and working capital adjustments from prior year acquisitions.

Summit Materials, LLC

Goodwill

(3) Goodwill

As of December 30, 2017, the Company had 12 reporting units with goodwill for which the annual goodwill impairment test was completed. We perform the annual impairment test on the first day of the fourth quarter each year. We initially perform a qualitative analysis. As a result of this analysis, it was determined that it is more likely than not that the fair value of five reporting units were greater than its carrying value. For the remaining reporting units we perform a two-step quantitative analysis. Step 1 of that analysis compares the estimated the fair value of the reporting units using an income approach (i.e., a discounted cash flow technique) and a market approach to the carrying value of the reporting unit. If the estimated fair value exceeds its carrying value, the goodwill of the reporting unit is not considered impaired. If the carrying value of the reporting unit exceeds its fair value, we proceed to the second step to measure the amount of potential impairment loss. Based on this analysis, it was determined that the reporting units’ fair values were greater than their carrying values and no impairment charges were recognized in 2017. The accumulated impairment charges recognized in periods prior to 2015 totaled $68.2 million.

These estimates of a reporting unit’s fair value involve significant management estimates and assumptions, including but not limited to sales prices of similar assets, assumptions related to future profitability, cash flows, and discount rates. These estimates are based upon historical trends, management’s knowledge and experience and overall economic factors, including projections of future earnings potential. Developing discounted future cash flow estimates in applying the income approach required management to evaluate its intermediate to longer-term strategies, including, but not limited to, estimates about revenue growth, operating margins, capital requirements, inflation and working capital management. The development of appropriate rates to discount the estimated future cash flows required the selection of risk premiums, which can materially affect the present value of estimated future cash flows.

The following table presents goodwill by reportable segments and in total:

	West		East		Cement		Total
Balance, January 2, 2016	$	303,926	$	98,308	$	194,163	$	596,397
Acquisitions		29,006		145,109		10,375		184,490
Foreign currency translation adjustments		1,325		—		—		1,325
Balance, December 31, 2016	$	334,257	$	243,417	$	204,538	$	782,212
Acquisitions (1)		188,883		61,957		118		250,958
Foreign currency translation adjustments		4,150		—		—		4,150
Balance, December 30, 2017	$	527,290	$	305,374	$	204,656	$	1,037,320

(1) Reflects goodwill from 2017 acquisitions and working capital adjustments from prior year acquisitions.

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Revenue Recognition

12 Months Ended

Dec. 30, 2017

Revenue Recognition

(4) Revenue Recognition

Revenue for product sales are recognized when evidence of an arrangement exists, the fee is fixed or determinable, title passes, which is generally when the product is shipped, and collection is reasonably assured. Product revenue includes sales of aggregates, cement and other materials to customers, net of discounts, allowances or taxes, as applicable.

Revenue from construction contracts are included in service revenue and are recognized under the percentage-of-completion accounting method. The percent complete is measured by the cost incurred to date compared to the estimated total cost of each project. This method is used as management considers expended cost to be the best available measure of progress on these contracts, the majority of which are completed within one year, but may occasionally extend beyond one year. Inherent uncertainties in estimating costs make it at least reasonably possible that the estimates used will change within the near term and over the life of the contracts.

Contract costs include all direct material and labor costs and those indirect costs related to contract performance and completion. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are estimable. General and administrative costs are charged to expense as incurred.

Changes in job performance, job conditions and estimated profitability, including those arising from contract penalty provisions and final contract settlements, may result in revisions to costs and income. Such revisions are recognized in the period in which they are determined. An amount equal to contract costs incurred that are attributable to claims is included in revenue when realization is probable and the amount can be reliably estimated.

Costs and estimated earnings in excess of billings are composed principally of revenue recognized on contracts (on the percentage-of-completion method) for which billings had not been presented to customers because the amount were not billable under the contract terms at the balance sheet date. In accordance with the contract terms, the unbilled receivables at the balance sheet date will be billed in the subsequent year. Billings in excess of costs and estimated earnings represent billings in excess of revenue recognized.

Revenue from the receipt of waste fuels is classified as service revenue and is based on fees charged for the waste disposal, which is recognized when the waste is accepted.

Accounts receivable, net consisted of the following as of December 30, 2017 and December 31, 2016:

	2017		2016
Trade accounts receivable	$	187,528	$	152,845
Retention receivables		14,973		12,117
Receivables from related parties		468		721
Accounts receivable		202,969		165,683
Less: Allowance for doubtful accounts		(4,639)		(3,306)
Accounts receivable, net	$	198,330	$	162,377

Retention receivables are amounts earned by the Company but held by customers until paving and related service contracts and projects are near completion or fully completed. Amounts are generally billed and collected within one year.

Summit Materials, LLC

Revenue Recognition

(4) Revenue Recognition

Revenue for product sales are recognized when evidence of an arrangement exists, the fee is fixed or determinable, title passes, which is generally when the product is shipped, and collection is reasonably assured. Product revenue includes sales of aggregates, cement and other materials to customers, net of discounts, allowances or taxes, as applicable.

Revenue from construction contracts are included in service revenue and are recognized under the percentage-of-completion accounting method. The percent complete is measured by the cost incurred to date compared to the estimated total cost of each project. This method is used as management considers expended cost to be the best available measure of progress on these contracts, the majority of which are completed within one year, but may occasionally extend beyond one year. Inherent uncertainties in estimating costs make it at least reasonably possible that the estimates used will change within the near term and over the life of the contracts.

Contract costs include all direct material and labor costs and those indirect costs related to contract performance and completion. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are estimable. General and administrative costs are charged to expense as incurred.

Changes in job performance, job conditions and estimated profitability, including those arising from contract penalty provisions and final contract settlements, may result in revisions to costs and income. Such revisions are recognized in the period in which they are determined. An amount equal to contract costs incurred that are attributable to claims is included in revenue when realization is probable and the amount can be reliably estimated.

Costs and estimated earnings in excess of billings are composed principally of revenue recognized on contracts (on the percentage-of-completion method) for which billings had not been presented to customers because the amount were not billable under the contract terms at the balance sheet date. In accordance with the contract terms, the unbilled receivables at the balance sheet date will be billed in the subsequent year. Billings in excess of costs and estimated earnings represent billings in excess of revenue recognized.

Revenue from the receipt of waste fuels is classified as service revenue and is based on fees charged for the waste disposal, which is recognized when the waste is accepted. 

Accounts receivable, net consisted of the following as of December 30, 2017 and December 31, 2016:

	2017		2016
Trade accounts receivable	$	187,528	$	152,845
Retention receivables		14,973		12,117
Receivables from related parties		468		721
Accounts receivable		202,969		165,683
Less: Allowance for doubtful accounts		(4,639)		(3,306)
Accounts receivable, net	$	198,330	$	162,377

Retention receivables are amounts earned by the Company but held by customers until paving and related service contracts and projects are near completion or fully completed. Amounts are generally billed and collected within one year.

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Inventories

12 Months Ended

Dec. 30, 2017

Inventories

(5) Inventories

Inventories consisted of the following as of December 30, 2017 and December 31, 2016:

	2017		2016
Aggregate stockpiles	$	126,791	$	103,073
Finished goods		34,667		35,071
Work in process		7,729		6,440
Raw materials		15,252		13,095
Total	$	184,439	$	157,679

Summit Materials, LLC

Inventories

(5) Inventories

Inventories consisted of the following as of December 30, 2017 and December 31, 2016:

	2017		2016
Aggregate stockpiles	$	126,791	$	103,073
Finished goods		34,667		35,071
Work in process		7,729		6,440
Raw materials		15,252		13,095
Total	$	184,439	$	157,679

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Property, Plant and Equipment, net and Intangibles, net

12 Months Ended

Dec. 30, 2017

Property, Plant and Equipment, net and Intangibles, net

(6) Property, Plant and Equipment, net and Intangibles, net

Property, plant and equipment, net consisted of the following as of December 30, 2017 and December 31, 2016:

	2017		2016
Land (mineral bearing) and asset retirement costs	$	274,083	$	227,558
Land (non-mineral bearing)		168,501		146,099
Buildings and improvements		170,615		160,638
Plants, machinery and equipment		1,068,007		965,522
Mobile equipment and barges		391,256		307,885
Truck and auto fleet		47,270		32,236
Landfill airspace and improvements		49,480		48,513
Office equipment		33,314		26,096
Construction in progress		44,739		16,459
Property, plant and equipment		2,247,265		1,931,006
Less accumulated depreciation, depletion and amortization		(631,841)		(484,554)
Property, plant and equipment, net	$	1,615,424	$	1,446,452

Depreciation on property, plant and equipment, including assets subject to capital leases, is generally computed on a straight-line basis. Depletion of mineral reserves is computed based on the portion of the reserves used during the period compared to the gross estimated value of proven and probable reserves, which is updated periodically as circumstances dictate. Leasehold improvements are amortized on a straight-line basis over the lesser of the asset’s useful life or the remaining lease term. The estimated useful lives are generally as follows:

Buildings and improvements	10 - 30	years
Plant, machinery and equipment	15 - 20	years
Office equipment	3 - 7	years
Truck and auto fleet	5 - 8	years
Mobile equipment and barges	6 - 8	years
Landfill airspace and improvements	10 - 30	years
Other	4 - 20	years

Depreciation, depletion and amortization expense of property, plant and equipment was $174.4 million, $144.2 million and $111.6 million in the years ended December 30, 2017, December 31, 2016 and January 2, 2016, respectively.

Property, plant and equipment at December 30, 2017 and December 31, 2016 included $51.2 million and $49.8 million, respectively, of capital leases for certain equipment and a building with accumulated amortization of $18.5 million and $10.6 million, respectively. The equipment leases generally have terms of less than five years and the building lease had an original term of 30 years. Approximately $19.3 million and $11.8 million of the future obligations associated with the capital leases are included in accrued expenses as of December 30, 2017 and December 31, 2016, respectively, and the present value of the remaining capital lease payments, $16.4 million and $27.5 million, respectively, is included in other noncurrent liabilities on the consolidated balance sheets. Future minimum rental commitments under long-term capital leases are $20.5 million, $7.6 million, $5.9 million, $1.4 million, and $0.6 million for the years ended 2018, 2019, 2020, 2021 and 2022, respectively.

Assets are assessed for impairment charges when identified for disposition. Projected losses from disposition are recognized in the period in which they become estimable, which may be in advance of the actual disposition. The net gain from asset dispositions recognized in general and administrative expenses in fiscal years 2017, 2016 and 2015 was $7.5 million, $6.8 million and $23.5 million, respectively. No material impairment charges have been recognized on assets held for use in fiscal 2017, 2016 or 2015. The losses are commonly a result of the cash flows expected from selling the asset being less than the expected cash flows that could be generated from holding the asset for use.

Intangible Assets—The Company’s intangible assets are primarily composed of lease agreements and reserve rights. The assets related to lease agreements reflect the submarket royalty rates paid under agreements, primarily, for extracting aggregates. The values were determined as of the respective acquisition dates by a comparison of market-royalty rates to contract-royalty rates. The reserve rights relate to aggregate reserves to which the Company has the rights of ownership, but do not own the reserves. The intangible assets are amortized on a straight-line basis over the lives of the leases. The following table shows intangible assets by type and in total:

	December 30, 2017						December 31, 2016
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Leases	$	15,888	$	(4,178)	$	11,710	$	15,888	$	(3,382)	$	12,506
Reserve rights		6,234		(1,625)		4,609		8,706		(3,710)		4,996
Trade names		1,000		(758)		242		1,000		(658)		342
Other		409		(137)		272		249		(104)		145
Total intangible assets	$	23,531	$	(6,698)	$	16,833	$	25,843	$	(7,854)	$	17,989

Amortization expense in fiscal 2017, 2016 and 2015 was $1.3 million, $2.6 million and $2.2 million, respectively. The estimated amortization expense for intangible assets for each of the next five years and thereafter is as follows:

2018	$	1,281
2019		1,268
2020		1,185
2021		1,142
2022		1,113
Thereafter		10,844
Total	$	16,833

Summit Materials, LLC

Property, Plant and Equipment, net and Intangibles, net

(6) Property, Plant and Equipment, net and Intangibles, net

Property, plant and equipment, net consisted of the following as of December 30, 2017 and December 31, 2016:

	2017		2016
Land (mineral bearing) and asset retirement costs	$	274,083	$	227,558
Land (non-mineral bearing)		168,501		146,099
Buildings and improvements		170,615		160,638
Plants, machinery and equipment		1,068,007		965,522
Mobile equipment and barges		391,256		307,885
Truck and auto fleet		47,270		32,236
Landfill airspace and improvements		49,480		48,513
Office equipment		33,314		26,096
Construction in progress		44,739		16,459
Property, plant and equipment		2,247,265		1,931,006
Less accumulated depreciation, depletion and amortization		(631,841)		(484,554)
Property, plant and equipment, net	$	1,615,424	$	1,446,452

Depreciation on property, plant and equipment, including assets subject to capital leases, is generally computed on a straight-line basis. Depletion of mineral reserves is computed based on the portion of the reserves used during the period compared to the gross estimated value of proven and probable reserves, which is updated periodically as circumstances dictate. Leasehold improvements are amortized on a straight-line basis over the lesser of the asset’s useful life or the remaining lease term. The estimated useful lives are generally as follows:

Buildings and improvements	10 - 30	years
Plant, machinery and equipment	15 - 20	years
Office equipment	3 - 7	years
Truck and auto fleet	5 - 8	years
Mobile equipment and barges	6 - 8	years
Landfill airspace and improvements	10 - 30	years
Other	4 - 20	years

Depreciation, depletion and amortization expense of property, plant and equipment was $174.4 million, $144.2 million and $111.6 million in the years ended December 30, 2017, December 31, 2016 and January 2, 2016, respectively.

Property, plant and equipment at December 30, 2017 and December 31, 2016 included $51.2 million and $49.8 million, respectively, of capital leases for certain equipment and a building with accumulated amortization of $18.5 million and $10.6 million, respectively. The equipment leases generally have terms of less than five years and the building lease had an original term of 30 years. Approximately $19.3 million and $11.8 million of the future obligations associated with the capital leases are included in accrued expenses as of December 30, 2017 and December 31, 2016, respectively, and the present value of the remaining capital lease payments, $16.4 million and $27.5 million, respectively, is included in other noncurrent liabilities on the consolidated balance sheets. Future minimum rental commitments under long-term capital leases are $20.5 million, $7.6 million, $5.9 million, $1.4 million, and $0.6 million for the years ended 2018, 2019, 2020, 2021 and 2022, respectively.

 Assets are assessed for impairment charges when identified for disposition. Projected losses from disposition are recognized in the period in which they become estimable, which may be in advance of the actual disposition. The net gain from asset dispositions recognized in general and administrative expenses in fiscal years 2017, 2016 and 2015 was $7.5 million, $6.8 million and $23.5 million, respectively. No material impairment charges have been recognized on assets held for use in fiscal 2017, 2016 or 2015. The losses are commonly a result of the cash flows expected from selling the asset being less than the expected cash flows that could be generated from holding the asset for use.

Intangible Assets—The Company’s intangible assets are primarily composed of lease agreements and reserve rights. The assets related to lease agreements reflect the submarket royalty rates paid under agreements, primarily, for extracting aggregates. The values were determined as of the respective acquisition dates by a comparison of market-royalty rates to contract-royalty rates. The reserve rights relate to aggregate reserves to which the Company has the rights of ownership, but do not own the reserves. The intangible assets are amortized on a straight-line basis over the lives of the leases. The following table shows intangible assets by type and in total:

	December 30, 2017						December 31, 2016
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Leases	$	15,888	$	(4,178)	$	11,710	$	15,888	$	(3,382)	$	12,506
Reserve rights		6,234		(1,625)		4,609		8,706		(3,710)		4,996
Trade names		1,000		(758)		242		1,000		(658)		342
Other		409		(137)		272		249		(104)		145
Total intangible assets	$	23,531	$	(6,698)	$	16,833	$	25,843	$	(7,854)	$	17,989

Amortization expense in fiscal 2017, 2016 and 2015 was $1.3 million, $2.6 million and $2.2 million, respectively. The estimated amortization expense for intangible assets for each of the next five years and thereafter is as follows:

2018	$	1,281
2019		1,268
2020		1,185
2021		1,142
2022		1,113
Thereafter		10,844
Total	$	16,833

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Accrued Expenses

12 Months Ended

Dec. 30, 2017

Accrued Expenses

(7) Accrued Expenses

Accrued expenses consisted of the following as of December 30, 2017 and December 31, 2016:

	2017		2016
Interest	$	24,095	$	22,991
Payroll and benefits		33,915		30,546
Capital lease obligations		19,276		11,766
Insurance		11,455		11,966
Non-income taxes		7,236		5,491
Professional fees		1,717		2,459
Other (1)		18,935		26,386
Total	$	116,629	$	111,605

(1) Consists primarily of subcontractor and working capital settlement accruals and deferred revenue.

Summit Materials, LLC

Accrued Expenses

(7) Accrued Expenses

Accrued expenses consisted of the following as of December 30, 2017 and December 31, 2016:

	2017		2016
Interest	$	24,095	$	22,991
Payroll and benefits		33,915		30,546
Capital lease obligations		19,276		11,766
Insurance		11,455		11,966
Non-income taxes		7,467		5,491
Professional fees		1,717		2,459
Other (1)		18,349		25,254
Total	$	116,274	$	110,473

(1) Consists primarily of subcontractor and working capital settlement accruals and deferred revenue.

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Debt

12 Months Ended

Dec. 30, 2017

Debt

(8) Debt

Debt consisted of the following as of December 30, 2017 and December 31, 2016:

	2017		2016
Term Loan, due 2024:
$635.4 million and $640.3 million, net of $1.6 million and $2.6 million discount at December 30, 2017 and December 31, 2016, respectively	$	633,805	$	637,658
81⁄2% Senior Notes, due 2022		250,000		250,000
61⁄8% Senior Notes, due 2023:
$650.0 million, net of $1.4 million and $1.6 million discount at December 30, 2017 and December 31, 2016, respectively		648,650		648,407
51⁄8% Senior Notes, due 2025		300,000		—
Total		1,832,455		1,536,065
Current portion of long-term debt		4,765		6,500
Long-term debt	$	1,827,690	$	1,529,565

The contractual payments of long-term debt, including current maturities, for the five years subsequent to December 30, 2017, are as follows:

2018	$	4,765
2019		6,354
2020		7,942
2021		6,354
2022		256,354
Thereafter		1,553,606
Total		1,835,375
Less: Original issue net discount		(2,920)
Less: Capitalized loan costs		(16,857)
Total debt	$	1,815,598

Senior Notes—  On June 1, 2017, Summit LLC and Summit Finance (together, the “Issuers”) issued $300.0 million of 51⁄₈% senior notes due June 1, 2025 (the “2025 Notes”). The 2025 Notes were issued at 100.0% of their par value with proceeds of $295.4 million, net of related fees and expenses. The 2025 Notes were issued under an indenture dated June 1, 2017 (as amended and supplemented, the “2017 Indenture”). The 2017 Indenture contains covenants limiting, among other things, Summit LLC and its restricted subsidiaries’ ability to incur additional indebtedness or issue certain preferred shares, pay dividends, redeem stock or make other distributions, make certain investments, sell or transfer certain assets, create liens, consolidate, merge, sell or otherwise dispose of all or substantially all of its assets, enter inter certain transactions with affiliates, and designate subsidiaries as unrestricted subsidiaries. The 2017 Indenture also contains customary events of default. Interest on the 2025 Notes is payable semi-annually on June 1 and December 1 of each year commencing on December 1, 2017.

In 2016, the Issuers issued $250.0 million of 8.500% senior notes due April 15, 2022 (the “2022 Notes”).  The 2022 Notes were issued at 100.0% of their par value with proceeds of $246.3 million, net of related fees and expenses. The proceeds from the sale of the 2022 Notes were used to fund the acquisition of Boxley Materials Company, replenish cash used for the acquisition of American Materials Company and pay expenses incurred in connection with these acquisitions. The 2022 Notes were issued under an indenture dated March 8, 2016, the terms of which are generally consistent with the 2017 Indenture. Interest on the 2022 Notes is payable semi-annually in arrears on April 15 and October 15 of each year.

In 2015, the Issuers issued $650.0 million of 6.125% senior notes due July 2023 (the “2023 Notes” and collectively with the 2022 Notes and the 2025 Notes, the “Senior Notes”). Of the aggregate $650.0 million of 2023 Notes, $350.0 million were issued at par and $300.0 million were issued at 99.375% of par. The 2023 Notes were issued under an indenture dated July 8, 2015, the terms of which are generally consistent with the 2017 Indenture. Interest on the 2023 Notes is payable semi-annually in arrears on January 15 and July 15 of each year.

In April, August and November 2015, $288.2 million, $183.0 million and $153.8 million, respectively, in aggregate principal amount of the then outstanding 10 1/₂% senior notes due January 31, 2020 (the “2020 Notes”) were redeemed at a price equal to par plus an applicable premium and the indenture under which the 2020 Notes were issued was satisfied and discharged. As a result of the redemptions, net charges of $56.5 million were recognized for the year ended January 2, 2016. The fees included $66.6 million for the applicable prepayment premium and $11.9 million for the write-off of deferred financing fees, partially offset by $22.0 million of net benefit from the write-off of the original issuance net premium.

As of December 30, 2017 and December 31, 2016, the Company was in compliance with all financial covenants under the applicable indentures.

Senior Secured Credit Facilities— Summit LLC has credit facilities that provide for term loans in an aggregate amount of $650.0 million and revolving credit commitments in an aggregate amount of $235.0 million (the “Senior Secured Credit Facilities”). Under the Senior Secured Credit Facilities, required principal repayments of 0.25% of the refinanced aggregate amount of term debt are due on the last business day of each March, June, September and December commencing with the March 2018 payment. The unpaid principal balance is due in full on the maturity date, which is November 21, 2024.

On January 19, 2017, Summit LLC entered into Amendment No. 1 (“Amendment No. 1”) to the credit agreement governing the Senior Secured Credit Facilities (the “Credit Agreement”), which, among other things, reduced the applicable margin in respect of then outstanding $640.3 million principal amount of term loans thereunder. All other material terms and provisions remain substantially identical to the terms and provisions in place immediately prior to the effectiveness of Amendment No. 1. On November 21, 2017, Summit LLC entered into Amendment No. 2 to the Credit Agreement, which, among other things, extended the maturity date from 2022 to 2024 and reduced the applicable margin in respect of the $635.4 million outstanding principal amount of term loans thereunder.

The revolving credit facility bears interest per annum equal to, at Summit LLC’s option, either (i) a base rate determined by reference to the highest of (a) the federal funds rate plus 0.50%, (b) the prime rate of Bank of America, N.A. and (c) LIBOR plus 1.00%, plus an applicable margin of 2.25% for base rate loans or (ii) a LIBOR rate determined by reference to Reuters prior to the interest period relevant to such borrowing adjusted for certain additional costs plus an applicable margin of 3.25% for LIBOR rate loans.

There were no outstanding borrowings under the revolving credit facility as of December 30, 2017 or December 31, 2016. As of December 30, 2017 we had remaining borrowing capacity of $218.9 million under the revolving credit facility, which is net of $16.1 million of outstanding letters of credit. The outstanding letters of credit are renewed annually and support required bonding on construction projects and the Company’s insurance liabilities.

Summit LLC’s Consolidated First Lien Net Leverage Ratio, as such term is defined in the Credit Agreement, should be no greater than 4.75:1.0 as of each quarter-end. As of December 30, 2017 and December 31, 2016, Summit LLC was in compliance with all financial covenants under the Credit Agreement.

Summit LLC’s wholly-owned domestic subsidiary companies, subject to certain exclusions and exceptions, are named as subsidiary guarantors of the Senior Notes and the Senior Secured Credit Facilities. In addition, Summit LLC has pledged substantially all of its assets as collateral, subject to certain exclusions and exceptions, for the Senior Secured Credit Facilities.

The following table presents the activity for the deferred financing fees for the years ended December 30, 2017 and December 31, 2016:

	Deferred financing fees
Balance—January 2, 2016	$	15,892
Loan origination fees		5,801
Amortization		(3,403)
Balance—December 31, 2016	$	18,290
Loan origination fees		6,416
Amortization		(3,990)
Write off of deferred financing fees		(1,683)
Balance—December 30, 2017	$	19,033

Other—On January 15, 2015, the Company’s wholly-owned subsidiary in British Columbia, Canada entered into an agreement with HSBC for a (i) $6.0 million Canadian dollar (“CAD”) revolving credit commitment to be used for operating activities that bears interest per annum equal to the bank’s prime rate plus 0.20%, (ii) $0.5 million CAD revolving credit commitment to be used for capital equipment that bears interest per annum at the bank’s prime rate plus 0.90% and (iii) $0.4 million CAD revolving credit commitment to provide guarantees on behalf of that subsidiary. There were no amounts outstanding under this agreement as of December 30, 2017 or December 31, 2016.

Summit Materials, LLC

Debt

(8) Debt

Debt consisted of the following as of December 30, 2017 and December 31, 2016:

	2017		2016
Term Loan, due 2024:
$635.4 million and $640.3 million, net of $1.6 million and $2.6 million discount at December 30, 2017 and December 31, 2016, respectively	$	633,805	$	637,658
81⁄2% Senior Notes, due 2022		250,000		250,000
61⁄8% Senior Notes, due 2023:
$650.0 million, net of $1.4 million and $1.6 million discount at December 30, 2017 and December 31, 2016, respectively		648,650		648,407
51⁄8% Senior Notes, due 2025		300,000		—
Total		1,832,455		1,536,065
Current portion of long-term debt		4,765		6,500
Long-term debt	$	1,827,690	$	1,529,565

The contractual payments of long-term debt, including current maturities, for the five years subsequent to December 30, 2017, are as follows:

2018		4,765
2019		6,354
2020		7,942
2021		6,354
2022		256,354
Thereafter		1,553,606
Total		1,835,375
Less: Original issue net discount		(2,920)
Less: Capitalized loan costs		(16,857)
Total debt	$	1,815,598

Senior Notes— On June 1, 2017, Summit LLC and Summit Materials Finance Corp., an indirect wholly-owned subsidiary of Summit LLC ("Finance Corp." and with Summit LLC, the “Issuers”) issued $300.0 million of 51⁄₈% senior notes due June 1, 2025 (the “2025 Notes”). The 2025 Notes were issued at 100.0% of their par value with proceeds of $295.4 million, net of related fees and expenses. The 2025 Notes were issued under an indenture dated June 1, 2017 (as amended and supplemented, the “2017 Indenture”). The 2017 Indenture contains covenants limiting, among other things, Summit LLC and its restricted subsidiaries’ ability to incur additional indebtedness or issue certain preferred shares, pay dividends, redeem stock or make other distributions, make certain investments, sell or transfer certain assets, create liens, consolidate, merge, sell or otherwise dispose of all or substantially all of its assets, enter inter certain transactions with affiliates, and designate subsidiaries as unrestricted subsidiaries. The 2017 Indenture also contains customary events of default. Interest on the 2025 Notes is payable semi-annually on June 1 and December 1 of each year commencing on December 1, 2017.

In 2016, the Issuers issued $250.0 million of 8.500% senior notes due April 15, 2022 (the “2022 Notes”).  The 2022 Notes were issued at 100.0% of their par value with proceeds of $246.3 million, net of related fees and expenses. The proceeds from the sale of the 2022 Notes were used to fund the acquisition of Boxley Materials Company, replenish cash used for the acquisition of American Materials Company and pay expenses incurred in connection with these acquisitions. The 2022 Notes were issued under an indenture dated March 8, 2016, the terms of which are generally consistent with the 2017 Indenture. Interest on the 2022 Notes is payable semi-annually in arrears on April 15 and October 15 of each year.

In 2015, the Issuers issued $650.0 million of 6.125% senior notes due July 2023 (the “2023 Notes” and collectively with the 2022 Notes and the 2025 Notes, the “Senior Notes”). Of the aggregate $650.0 million of 2023 Notes, $350.0 million were issued at par and $300.0 million were issued at 99.375% of par. The 2023 Notes were issued under an indenture dated July 8, 2015, the terms of which are generally consistent with the 2017 Indenture. Interest on the 2023 Notes is payable semi-annually in arrears on January 15 and July 15 of each year.

In April, August and November 2015, $288.2 million, $183.0 million and $153.8 million, respectively, in aggregate principal amount of the then outstanding 10 1/₂% senior notes due January 31, 2020 (the “2020 Notes”) were redeemed at a price equal to par plus an applicable premium and the indenture under which the 2020 Notes were issued was satisfied and discharged. As a result of the redemptions, net charges of $56.5 million were recognized for the year ended January 2, 2016. The fees included $66.6 million for the applicable prepayment premium and $11.9 million for the write-off of deferred financing fees, partially offset by $22.0 million of net benefit from the write-off of the original issuance net premium.

As of December 30, 2017 and December 31, 2016, the Company was in compliance with all financial covenants under the applicable indentures.

Senior Secured Credit Facilities— Summit LLC has credit facilities that provide for term loans in an aggregate amount of $650.0 million and revolving credit commitments in an aggregate amount of $235.0 million (the “Senior Secured Credit Facilities”). Under the Senior Secured Credit Facilities, required principal repayments of 0.25% of the refinanced aggregate amount of term debt are due on the last business day of each March, June, September and December, commencing with the March 2018 payment. The unpaid principal balance is due in full on the maturity date, which is November 21, 2024.

On January 19, 2017, Summit LLC entered into Amendment No. 1 (“Amendment No. 1”) to the credit agreement governing the Senior Secured Credit Facilities (the “Credit Agreement”), which, among other things, reduced the applicable margin in respect of then outstanding $640.3 million principal amount of term loans thereunder. All other material terms and provisions remain substantially identical to the terms and provisions in place immediately prior to the effectiveness of Amendment No. 1. On November 21, 2017, Summit LLC entered into Amendment No. 2 to the Credit Agreement, which, among other things, extended the maturity date from 2022 to 2024 and reduced the applicable margin in respect of the $635.4 million outstanding principal amount of term loans thereunder.

The revolving credit facility bears interest per annum equal to, at Summit LLC’s option, either (i) a base rate determined by reference to the highest of (a) the federal funds rate plus 0.50%, (b) the prime rate of Bank of America, N.A. and (c) LIBOR plus 1.00%, plus an applicable margin of 2.25% for base rate loans or (ii) a LIBOR rate determined by reference to Reuters prior to the interest period relevant to such borrowing adjusted for certain additional costs plus an applicable margin of 3.25% for LIBOR rate loans.

There were no outstanding borrowings under the revolving credit facility as of December 30, 2017 or December 31, 2016. As of December 30, 2017, we had remaining borrowing capacity of $218.9 million under the revolving credit facility, which is net of $16.1 million of outstanding letters of credit. The outstanding letters of credit are renewed annually and support required bonding on construction projects and the Company’s insurance liabilities.

Summit LLC’s Consolidated First Lien Net Leverage Ratio, as such term is defined in the Credit Agreement, should be no greater than 4.75:1.0 as of each quarter-end. As of December 30, 2017 and December 31, 2016, Summit LLC was in compliance with all financial covenants under the Credit Agreement.

Summit LLC’s wholly-owned domestic subsidiary companies, subject to certain exclusions and exceptions, are named as subsidiary guarantors of the Senior Notes and the Senior Secured Credit Facilities. In addition, Summit LLC has pledged substantially all of its assets as collateral, subject to certain exclusions and exceptions, for the Senior Secured Credit Facilities.

The following table presents the activity for the deferred financing fees for the years ended December 30, 2017 and December 31, 2016: 

	Deferred financing fees
Balance—January 2, 2016	$	15,892
Loan origination fees		5,801
Amortization		(3,403)
Balance—December 31, 2016	$	18,290
Loan origination fees		6,416
Amortization		(3,990)
Write off of deferred financing fees		(1,683)
Balance—December 30, 2017	$	19,033

Other—On January 15, 2015, the Company’s wholly-owned subsidiary in British Columbia, Canada entered into an agreement with HSBC for a (i) $6.0 million Canadian dollar (“CAD”) revolving credit commitment to be used for operating activities that bears interest per annum equal to the bank’s prime rate plus 0.20%, (ii) $0.5 million CAD revolving credit commitment to be used for capital equipment that bears interest per annum at the bank’s prime rate plus 0.90% and (iii) $0.4 million CAD revolving credit commitment to provide guarantees on behalf of that subsidiary. There were no amounts outstanding under this agreement as of December 30, 2017 or December 31, 2016.

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Income Taxes

12 Months Ended

Dec. 30, 2017

Income Taxes

(9) Income Taxes

Summit Inc.’s tax provision includes its proportional share of Summit Holdings’ tax attributes. Summit Holdings’ subsidiaries are primarily limited liability companies, but do include certain entities organized as C corporations and a Canadian subsidiary. The tax attributes related to the limited liability companies are passed on to Summit Holdings and then to its partners, including Summit Inc. The tax attributes associated with the C corporation and Canadian subsidiaries are fully reflected in the Company’s consolidated financial statements. For the years ended December 30, 2017, December 31, 2016 and January 2, 2016, income taxes consisted of the following:

	2017			2016		2015
Provision for income taxes:
Current	$	2,530	$	2,835	$	1,605
Deferred		(286,507)		(8,134)		(19,868)
Income tax benefit	$	(283,977)	$	(5,299)	$	(18,263)

The effective tax rate on pre-tax income differs from the U.S. statutory rate of 35% due to the following:

	2017		2016		2015
Income tax expense (benefit) at federal statutory tax rate	$	(55,365)	$	14,290	$	(6,718)
Less: Income tax benefit at federal statutory tax rate for LLC entities		(2,123)		(10,608)		(22,649)
State and local income taxes		(5,209)		2,490		(2,389)
Permanent differences		(4,410)		(5,902)		2,147
Effective tax rate change		216,904		(1,432)		10
Tax receivable agreement expense		104,804		5,228		—
Change in valuation allowance		(500,162)		239,008		261,302
Impact of LP Unit ownership change		(31,790)		(252,456)		(249,400)
Other		(6,626)		4,083		(566)
Income tax benefit	$	(283,977)	$	(5,299)	$	(18,263)

The following table summarizes the components of the net deferred income tax asset (liability) as December 30, 2017 and December 31, 2016:

	2017		2016
Deferred tax (liabilities) assets:
Net intangible assets	$	316,950	$	591,464
Accelerated depreciation		(147,943)		(184,794)
Net operating loss		94,751		71,379
Investment in limited partnership		(14,467)		(13,633)
Mining reclamation reserve		1,239		1,220
Working capital (e.g., accrued compensation, prepaid assets)		35,237		41,529
Less valuation allowance		(1,675)		(502,839)
Deferred tax assets		284,092		4,326
Less foreign deferred tax liability (included in other noncurrent liabilities)		(3,992)		—
Net deferred tax asset	$	280,100	$	4,326

As of December 30, 2017, $390 million of our deferred tax assets were subject to our TRA, and after amortization and netting other deferred tax liabilities related to intangible assets, are carried at a net book value of $317 million in the above table.

Our income tax benefit was $284.0 million, $5.3 and $18.3 million in the fiscal years ended 2017, 2016 and 2015, respectively. We recorded an income tax benefit in fiscal 2017, primarily related to the release of the valuation allowance as discussed below, partially offset by charge related to the decrease in the federal statutory corporate tax rate. Our effective income tax rate was higher in 2017 as compared to 2016, primarily due to the benefit associated with the release of the valuation allowance discussed below, the accrual of the TRA expense, the statutory rate change referred to below and depletion in excess of U.S. GAAP depletion recognized in 2017. During the year ended 2016, our income tax benefit was $5.3 million. The effective tax rate for Summit Inc. differs from the federal rate primarily due to (1) the change in valuation allowance, (2) changes in statutory tax rates, (3) deductions related to our TRA, (4) tax depletion expense in excess of the expense recorded under U.S. GAAP, (5) the minority interest in the Summit Holdings partnership that is allocated outside of the Company and (6) various other items such as limitations on meals and entertainment, certain stock compensation and other costs.

The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible, as well as consideration of tax-planning strategies we may seek to utilize net operating loss carryforwards that are scheduled to expire in the near future. Due to our limited operating history as of December 31, 2016, during which we incurred only a small amount of pre-tax income over the previous three years, as well as our acquisitive business strategy, after considering both positive and negative evidence, we concluded that it was not more likely than not that we would fully realize those deferred tax assets, and therefore recorded a partial valuation allowance against those deferred tax assets as of December 31, 2016. However, the amount of cumulative income increased significantly during the year ended December 30, 2017, and we expect to generate additional income in 2018 and for the foreseeable future that will allow us to utilize the deferred tax assets. As a result of this significant positive evidence, we determined that the deferred tax assets had become more likely than not of becoming realizable and therefore released the majority of the valuation allowance in the third quarter of 2017. The Company updated the analysis as of December 30, 2017, and adjusted the remaining valuation allowance for certain net operating loss deferred tax assets within the C corporation entities that the Company does not expect to be realized. 

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“TCJA”) was enacted. Among other things, the TCJA, beginning January 1, 2018, reduced the federal statutory rate from 35% to 21% and extended bonus depreciation provisions. In addition, the application of net operating loss carryforwards generated in 2018 and beyond will be limited, 100% asset expensing will be allowed through 2022 and begin to phase out in 2023, and the amount of interest expense we are able deduct may also be limited in future years.  As a result of the enactment of TCJA and other state effective rate changes, we reduced the carrying value of our net deferred tax assets by $216.9 million to reflect the revised federal statutory rate which will be in effect at the time those deferred tax assets are expected to be realized. Further, we evaluated the realizability of our net operating loss carryforwards, and determined a valuation allowance of $1.7 million was appropriate as of December 30, 2017. The TCJA contains many provisions which will be clarified through new regulations expected to be issued during 2018. As of December 30, 2017, we have not completed the accounting for the tax effects of the TCJA; however, we have made reasonable estimates on our existing deferred tax balances, as permitted by Staff Accounting Bulletin 118 issued by the SEC on December 22, 2017. In addition, we expect the states in which we operate to consider new statutory provisions related to the enactment of the TCJA during 2018 as well. We will record the impact, if any, of any newly issued regulations, as well as clarifications of the TCJA, as a discrete adjustment to our income tax provision in 2018.  

Our net operating loss carryforward deferred tax assets begin to expire in 2030 and are expected to reverse before expiration. Therefore, we have not given consideration to any potential tax planning strategies as a source of future taxable income to monetize those net operating loss carryforwards. The Company will continue to monitor facts and circumstances, including our analysis of other sources of taxable income, in the reassessment of the likelihood that the tax benefit of our deferred tax assets will be realized.

As of December 30, 2017 and December 31, 2016, after the release of the valuation allowance referred to above, Summit Inc. had a valuation allowance of $1.7 million and $502.8 million, respectively, which relates to certain deferred tax assets in taxable entities where realization is not more likely than not. The remaining valuation allowance as of December 30, 2017 relates to certain net operating loss deferred tax assets in a subsidiary that is not expected to generate future taxable income for the foreseeable future.

As of December 30, 2017, Summit Inc. had federal net operating loss carryforwards of $374.5 million, which expire between 2030 and 2037. As of December 30, 2017, $250 million of our federal net operating losses were under the terms of our TRA. In addition, Summit Inc. has alternative minimum tax credits of $0.2 million as of December 30, 2017, which do not expire. As of December 30, 2017 and December 31, 2016, Summit Inc. had a valuation allowance on net deferred tax assets of $1.7 million and $502.8 million, respectively. The deferred tax assets primarily relate to tax basis in intangible assets that exceeds book basis. The intangible asset tax basis was largely recognized as a result of the LP Unit exchanges in 2017 and 2016.

	2017		2016
Valuation Allowance:
Beginning balance	$	(502,839)	$	(263,825)
Additional basis from exchanged LP Units		(31,790)		(252,456)
Change in valuation allowance		531,952		13,448
Other		1,002		(6)
Ending balance	$	(1,675)	$	(502,839)

We have reclassified $4.3 million of deferred tax assets from other assets to deferred tax assets in the December 31, 2016 consolidated balance sheet to conform to the current year presentation. 

Tax Receivable Agreement— During 2015, the Company entered into a TRA with the holders of LP Units and certain other pre-initial public offering owners (“Investor Entities”) that provides for the payment by Summit Inc. to exchanging holders of LP Units of 85% of the benefits, if any, that Summit Inc. actually realizes (or, under certain circumstances such as an early termination of the TRA, is deemed to realize) as a result of increases in the tax basis of tangible and intangible assets of Summit Holdings and certain other tax benefits related to entering into the TRA, including tax benefits attributable to payments under the TRA. 

When LP Units are exchanged for an equal number of newly-issued shares of Summit Inc.’s Class A common stock, these exchanges result in new deferred tax assets. Using tax rates in effect as of each year end, $12.4 million, $422.5 million and $216.3 million of deferred tax assets were created during the years ended December 30, 2017, December 31, 2016 and January 2, 2016, respectively, when LP Units were exchanged for shares of Class A common stock. As a result of the analysis of the realizability of our deferred tax assets as indicated above, in the third quarter of 2017, we reduced the valuation allowance against our deferred tax assets, including those deferred tax assets subject to the TRA. Further, we determined the TRA liability to be probable of being payable and, as such, we recorded 85% of the deferred tax assets subject to the TRA, or $501.8 million, as TRA liability. We recorded $331.9 million and $59.3 million of TRA liability of which $0.6 million and $1.1 million was classified as accrued expenses as of December 30, 2017 and December 31, 2016, respectively. We have reclassified $58.1 million of other noncurrent liabilities to TRA liability in the December 31, 2016 consolidated balance sheet to conform to the current year presentation

Tax Distributions – The holders of Summit Holdings’ LP Units, including Summit Inc., incur U.S. federal, state and local income taxes on their share of any taxable income of Summit Holdings. The limited partnership agreement of Summit Holdings provides for pro rata cash distributions (“tax distributions”) to the holders of the LP Units in an amount generally calculated to provide each holder of LP Units with sufficient cash to cover its tax liability in respect of the LP Units. In general, these tax distributions are computed based on Summit Holdings’ estimated taxable income allocated to each holder of LP Units multiplied by an assumed tax rate equal to the highest effective marginal combined U.S. federal, state and local income tax rate applicable to an individual or corporate resident in New York, New York (or a corporate resident in certain circumstances). For the years ended December 30, 2017 and December 31, 2016, Summit Holdings paid tax distributions totaling $1.8 million and $13.0 million, respectively, to holders of its LP Units, other than Summit Inc.

C Corporation Subsidiaries — The effective income tax rate for the C corporations differ from the statutory federal rate primarily due to (1) tax depletion expense (benefit) in excess of the expense recorded under U.S. GAAP, (2) state income taxes and the effect of graduated tax rates and (3) various other items such as limitations on meals and entertainment and other costs. The effective income tax rate for the Canadian subsidiary is not significantly different from its historical effective tax rate.

As of December 30, 2017, and December 31, 2016, Summit Inc. and its subsidiaries had not recognized any liabilities for uncertain tax positions. No material interest or penalties were recognized in income tax expense during the years ended December 30, 2017, December 31, 2016 or January 2, 2016. Tax years from 2013 to 2017 remain open and subject to audit by federal, Canadian, and state tax authorities.

Summit Materials, LLC

Income Taxes

(9) Income Taxes

Summit LLC is a limited liability company and passes its tax attributes for federal and state tax purposes to its member and is generally not subject to federal or state income tax. However, certain subsidiaries, or subsidiary groups, file federal, state, and Canadian income tax returns due to their status as C corporations or laws within that jurisdiction. The provision for income taxes is primarily composed of federal, state and local income taxes for the subsidiary entities that have C corporation status.

As of December 30, 2017 and December 31, 2016, the Company has not recognized any liabilities for uncertain tax positions. The Company records interest and penalties as a component of the income tax provision. No material interest or penalties were recognized in income tax expense during the years ended December 30, 2017 and December 31, 2016.

For the years ended December 30, 2017, December 31, 2016 and January 2, 2016, income taxes consisted of the following:

	2017		2016		2015
Provision for income taxes:
Current	$	2,762	$	2,835	$	1,605
Deferred		(23,107)		(8,134)		(19,868)
Income tax benefit	$	(20,345)	$	(5,299)	$	(18,263)

The effective tax rate on pre-tax income differs from the U.S. statutory rate of 35% due to the following:

	2017		2016		2015
Income tax expense (benefit) at federal statutory tax rate	$	39,797	$	19,882	$	(6,412)
Less: Income tax benefit at federal statutory tax rate for LLC entities		(36,171)		(21,042)		(9,908)
State and local income taxes		1,751		1,279		(2,389)
Permanent differences		(630)		(1,726)		2,147
Effective tax rate change		(24,243)		(1,432)		10
Valuation allowance		—		148		—
Other		(849)		(2,408)		(1,711)
Income tax benefit	$	(20,345)	$	(5,299)	$	(18,263)

The following table summarizes the components of the net deferred income tax liability as December 30, 2017 and December 31, 2016:

	2017		2016
Deferred tax (liabilities) assets:
Accelerated depreciation	$	(47,920)	$	(58,094)
Net operating loss		20,671		24,884
Investment in limited partnership		(10,800)		(12,899)
Net intangible assets		(1,256)		(999)
Mining reclamation reserve		488		582
Working capital (e.g., accrued compensation, prepaid assets)		1,267		1,386
Net deferred tax liabilities		(37,550)		(45,140)
Less valuation allowance		(1,675)		(2,677)
Net deferred tax liability	$	(39,225)	$	(47,817)

The net deferred income tax liability as of December 30, 2017 and December 31, 2016, are included in other noncurrent liabilities on the consolidated balance sheets. As of December 30, 2017, Summit LLC had federal net operating loss carryforwards of $79.6 million, which expire between 2030 and 2036. Summit LLC has alternative minimum tax credits of $0.2 million as of December 30, 2017, which do not expire.

Valuation Allowance—The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible (including the effect of available carryback and carryforward periods) and tax-planning strategies. The deferred income tax asset related to net operating losses resides with two separate tax paying subsidiaries (or subsidiary groups) of Summit LLC. These tax payers have historically generated taxable income and forecast to continue generating taxable income; however, the use of a portion of the net operating may be limited. Therefore, a $1.7 million and $2.7 million, respectively, valuation allowance has been recorded on a portion of the total net operating loss carryforwards as of December 30, 2017 and December 31, 2016, respectively. At December 30, 2017, the Company had net operating loss carryforwards for federal and state income tax purposes of $84.6 million and $63.7 million, respectively, which are available to offset future federal and state taxable income, if any, through 2036.

Tax years from 2013 to 2017 remain open and subject to audit by federal, Canadian, and state tax authorities. No income tax expense or benefit was recognized in other comprehensive loss in 2017, 2016 or 2015.

Tax Distributions  – The holders of Summit Holdings’ LP Units, including Summit Inc., incur U.S. federal, state and local income taxes on their share of any taxable income of Summit Holdings. The limited partnership agreement of Summit Holdings provides for pro rata cash distributions (“tax distributions”) to the holders of the LP Units in an amount generally calculated to provide each holder of LP Units with sufficient cash to cover its tax liability in respect of the LP Units. In general, these tax distributions are computed based on Summit Holdings’ estimated taxable income allocated to each holder of LP Units multiplied by an assumed tax rate equal to the highest effective marginal combined U.S. federal, state and local income tax rate applicable to an individual or corporate resident in New York, New York (or a corporate resident in certain circumstances). In the years ended December 30, 2017 and December 31, 2016, Summit LLC paid distributions to Summit Holdings totaling $49.2 million and $39.7 million, respectively, of which $1.7 million and $13.0 million, respectively, was distributed to Summit Holdings’ partners, other than Summit Inc., and $47.5 million and $26.7 million, respectively, was paid to Summit Inc.

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Net Earnings Per Share

12 Months Ended

Dec. 30, 2017

Net Earnings Per Share

Net Earnings Per Share

(10) Earnings Per Share

Basic earnings per share is computed by dividing net earnings by the weighted average common shares outstanding and diluted net earnings is computed by dividing net earnings, adjusted for changes in the earnings allocated to Summit Inc. as a result of the assumed conversion of LP Units, by the weighted-average common shares outstanding assuming dilution.

The following table shows the calculation of basic income per share:  

	2017		2016		2015
Net income attributable to Summit Inc.	$	121,830	$	36,783	$	27,718
Weighted average shares of Class A stock outstanding		108,696,438		70,355,042		40,888,437
Basic income per share	$	1.12	$	0.52	$	0.68
Net income attributable to Summit Inc.	$	121,830	$	36,783	$	27,718
Add: Noncontrolling interest impact of LP Unit conversion		—		—		17,803
Diluted net income attributable to Summit Inc.		121,830		36,783		45,521
Weighted average shares of Class A stock outstanding		108,696,438		70,355,042		40,888,437
Add: weighted average of LP Units		—		—		50,059,648
Add: stock options		308,355		140,142		—
Add: warrants		42,035		16,123		37,714
Add: restricted stock units		308,221		240,633		7,523
Add: performance stock units		135,849		86,568
Weighted average dilutive shares outstanding		109,490,898		70,838,508		90,993,322
Diluted earnings per share	$	1.11	$	0.52	$	0.50

Excluded from the above calculations were the shares noted below as they were antidilutive:

	2017		2016		2015
Antidilutive shares:
LP Units		4,371,705		32,327,907		—
Time-vesting stock options		—		—		2,265,584
Warrants		—		—		—
Time-vesting restricted stock units		—		—		—
Market-based restricted stock units		—		—

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Stockholder's Equity

12 Months Ended

Dec. 30, 2017

Stockholder's Equity

(11) Stockholders’ Equity

Equity Offerings—Summit Inc. commenced operations on March 11, 2015 upon the pricing of the initial public offering of its Class A common stock (“IPO”). Summit Inc. raised $433.0 million, net of underwriting discounts, through the issuance of 25,555,555 shares of Class A common stock at a public offering price of $18.00 per share. Summit Inc. used the offering proceeds to purchase a number of newly-issued Class A Units (“LP Units”) from Summit Holdings equal to the number of shares of Class A common stock issued to the public. Summit Inc. caused Summit Holdings to use these proceeds: (i) to redeem $288.2 million in aggregate principal amount of outstanding 10 1/₂% 2020 Notes; (ii) to purchase 71,428,571 Class B Units of Continental Cement; (iii) to pay a one-time termination fee of $13.8 million in connection with the termination of a transaction and management fee agreement with Blackstone Capital Partners V L.P.; and (iv) for general corporate purposes. The $288.2 million redemption of 2020 Notes was completed at a redemption price equal to par plus an applicable premium of $38.2 million plus $5.2 million of accrued and unpaid interest.

In connection with the IPO, Summit Inc. issued 69,007,297 shares of its Class B common stock to an entity owned by certain pre-IPO owners and the former holders of Class B Units of Continental Cement. The Class B common stock entitled that entity, without regard to the number of shares of Class B common stock held by it, to a number of votes that is equal to the aggregate number of LP Units held by all limited partners of Summit Holdings (excluding Summit Inc.). During 2016, all but 100 shares of Class B common stock were cancelled. The Class B common stock entitles holders thereof, who are also holders of LP Units, with a number of votes that is equal to the number of LP Units they hold. The Class B common stock does not participate in dividends and does not have any liquidation rights.

On August 11, 2015, Summit Inc. raised $555.8 million, net of underwriting discounts, through the issuance of 22,425,000 shares of Class A common stock at a public offering price of $25.75 per share ("the August 2015 follow-on offering"). Summit Inc. used these proceeds to purchase 3,750,000 newly-issued LP Units from Summit Holdings and 18,675,000 LP Units from certain pre-IPO owners, at a purchase price per LP Unit equal to the public offering price per share of Class A common stock, less underwriting discounts and commissions. Summit Holdings used the proceeds from the 3,750,000 newly-issued LP Units to pay the deferred purchase price of $80.0 million related to the July 17, 2015 acquisition of a cement plant and quarry in Davenport, Iowa, and seven cement terminals along the Mississippi River and for general corporate purposes.

On January 10, 2017, Summit Inc. raised $237.6 million, net of underwriting discounts, through the issuance of 10,000,000 shares of Class A common stock at a public offering price of $24.05 per share. Summit Inc. used these proceeds to purchase an equal number of LP Units.

During 2016 and 2017, certain limited partners of Summit Holdings exchanged their LP Units for shares of Class A common stock of Summit Inc. The following table summarizes the changes in our ownership of Summit Holdings:

	Summit Inc. Shares (Class A)	LP Units	Total	Summit Inc. Ownership Percentage
Balance — January 2, 2016 (1)	52,402,692	50,275,825	102,678,517	51.0	%
Issuance of Class A shares	1,038	-	1,038
Exchanges during period	45,124,528	(45,124,528)	-
Other equity transactions	26,020	-	26,020
Balance — December 31, 2016 (1)	97,554,278	5,151,297	102,705,575	95.0	%
January 2017 public offering	10,000,000	-	10,000,000
Exchanges during period	1,461,677	(1,461,677)	-
Other equity transactions	1,334,639	-	1,334,639
Balance — December 30, 2017	110,350,594	3,689,620	114,040,214	96.8	%

(1) The January 2, 2016 balance of Summit Inc. Class A Shares of 52,402,692 is shown to reflect the retroactive application of 1,135,692 and 1,521,056 of Class A common stock issued as a stock dividend on December 28, 2016 and December 22, 2017, respectively.  The December 31, 2016 balance of Summit Inc. Class A Shares of 97,554,278 is shown to reflect the retroactive application of 1,521,056 of Class A common stock issued as a stock dividend on December 22, 2017.

As a result of reorganization into a holding company structure (the “Reorganization”) consummated in connection with Summit Inc.’s March 2015 initial public offering, Summit Inc. is Summit Holdings’ primary beneficiary and thus consolidates Summit Holdings in its consolidated financial statements with a corresponding noncontrolling interest elimination, which was 3.2% and 5.0% as of December 30, 2017 and December 31, 2016, respectively.

On March 17, 2015, upon the consummation of the IPO and the transactions contemplated by a contribution and purchase agreement entered into with the holders of all of the outstanding Class B Units of Continental Cement, Continental Cement became a wholly-owned indirect subsidiary of Summit Inc. The noncontrolling interests of Continental Cement were acquired for aggregate consideration of $64.1 million, consisting of $35.0 million of cash, 1,029,183 shares of Summit Inc.’s Class A common stock and $15.0 million aggregate principal amount of non-interest bearing notes payable in six annual installments of $2.5 million, beginning on March 17, 2016.

Prior to the March 17, 2015 purchase of the noncontrolling interest, the Company owned 100 Class A Units of Continental Cement, which represented an approximately 70% economic interest and had a preference in liquidation to the Class B Units. Continental Cement issued 100,000,000 Class B Units in May 2010, which remained outstanding until March 17, 2015 and represented an approximately 30% economic interest.

Accumulated other comprehensive income (loss) - The changes in each component of accumulated other comprehensive income (loss) consisted of the following:

							Accumulated
			Foreign currency				other
	Change in		translation		Cash flow hedge		comprehensive
	retirement plans		adjustments		adjustments		income (loss)
Balance — January 2, 2016	$	1,049	$	(3,379)	$	(465)	$	(2,795)
Postretirement liability adjustment		401		—		—		401
Foreign currency translation adjustment		—		273		—		273
Loss on cash flow hedges		—		—		(128)		(128)
Balance — December 31, 2016	$	1,450	$	(3,106)	$	(593)	$	(2,249)
Postretirement curtailment adjustment, net of tax		309		—		—		309
Postretirement liability adjustment, net of tax		605		—		—		605
Foreign currency translation adjustment, net of tax		—		7,743		—		7,743
Income on cash flow hedges, net of tax		—		—		978		978
Balance — December 30, 2017	$	2,364	$	4,637	$	385	$	7,386

Summit Materials, LLC

Members' Interest

(10) Members’ Interest

Summit Inc.’s Equity Offerings— Summit Inc. commenced operations on March 11, 2015 upon the pricing of the IPO of its Class A common stock. Summit Inc. raised $433.0 million, net of underwriting discounts, through the issuance of 25,555,555 shares of Class A common stock at a public offering price of $18.00 per share. Summit Inc. used the offering proceeds to purchase a number of newly-issued LP Units from Summit Holdings equal to the number of shares of Class A common stock issued to the public. Summit Inc. caused Summit Holdings to use these proceeds: (i) to redeem $288.2 million in aggregate principal amount of outstanding 10 1/₂% 2020 Notes; (ii) to purchase 71,428,571 Class B Units of Continental Cement; (iii) to pay a one-time termination fee of $13.8 million in connection with the termination of a transaction and management fee agreement with Blackstone Capital Partners V L.P.; and (iv) for general corporate purposes. The $288.2 million redemption of 2020 Notes was completed at a redemption price equal to par plus an applicable premium of $38.2 million plus $5.2 million of accrued and unpaid interest.

On August 11, 2015, Summit Inc. raised $555.8 million, net of underwriting discounts, through the issuance of 22,425,000 shares of Class A common stock at a public offering price of $25.75 per share ("the August 2015 follow-on offering"). Summit Inc. used these proceeds to purchase 3,750,000 newly-issued LP Units from Summit Holdings and 18,675,000 LP Units from certain pre-IPO owners, at a purchase price per LP Unit equal to the public offering price per share of Class A common stock, less underwriting discounts and commissions. Summit Holdings used the proceeds from the 3,750,000 newly-issued LP Units to pay the deferred purchase price of $80.0 million related to the July 17, 2015 acquisition of a cement plant and quarry in Davenport, Iowa, and seven cement terminals along the Mississippi River and for general corporate purposes.

On January 10, 2017, Summit Inc. raised $237.6 million, net of underwriting discounts, through the issuance of 10,000,000 shares of Class A common stock at a public offering price of $24.05 per share. Summit Inc. used these proceeds to purchase an equal number of LP Units.

Redeemable Noncontrolling Interest—On March 17, 2015, upon the consummation of the IPO and the transactions contemplated by a contribution and purchase agreement entered into with the holders of all of the outstanding Class B Units of Continental Cement, Continental Cement became a wholly-owned indirect subsidiary of Summit Inc. The noncontrolling interests of Continental Cement were acquired for aggregate consideration of $64.1 million, consisting of $35.0 million of cash, 1,029,183 shares of Summit Inc.’s Class A common stock and $15.0 million aggregate principal amount of non-interest bearing notes payable in six annual installments of $2.5 million, beginning on March 17, 2016.

Prior to the March 17, 2015 purchase of the noncontrolling interest, the Company owned 100 Class A Units of Continental Cement, which represented an approximately 70% economic interest and had a preference in liquidation to the Class B Units. Continental Cement issued 100,000,000 Class B Units in May 2010, which remained outstanding until March 17, 2015 and represented an approximately 30% economic interest.

Accumulated other comprehensive income (loss) - The changes in each component of accumulated other comprehensive income (loss) consisted of the following:

							Accumulated
			Foreign currency				other
	Change in		translation		Cash flow hedge		comprehensive
	retirement plans		adjustments		adjustments		income (loss)
Balance — January 2, 2016	$	(7,607)	$	(19,915)	$	(944)	$	(28,466)
Postretirement liability adjustment		426		—		—		426
Foreign currency translation adjustment		—		2,125		—		2,125
Loss on cash flow hedges		—		—		(1,529)		(1,529)
Balance — December 31, 2016	$	(7,181)	$	(17,790)	$	(2,473)	$	(27,444)
Postretirement curtailment adjustment		429		—		—		429
Postretirement liability adjustment		699		—		—		699
Foreign currency translation adjustment		—		7,768		—		7,768
Income on cash flow hedges		—		—		1,413		1,413
Balance — December 30, 2017	$	(6,053)	$	(10,022)	$	(1,060)	$	(17,135)

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Supplemental Cash Flow Information

12 Months Ended

Dec. 30, 2017

Supplemental Cash Flow Information

(12) Supplemental Cash Flow Information

Supplemental cash flow information for the years ended December 30, 2017, December 31, 2016 and January 2, 2016 was as follows:

	2017		2016		2015
Cash payments:
Interest	$	96,320	$	82,540	$	89,102
Income taxes		1,711		2,645		1,685
Non cash financing activities:
Purchase of noncontrolling interest	$	(716)	$	—	$	(29,102)
Stock Dividend		(45,023)		(26,939)		(16,847)
Exchange of LP Units to shares of Class A common stock		41,126		953,752		—

Summit Materials, LLC

Supplemental Cash Flow Information

(11) Supplemental Cash Flow Information

Supplemental cash flow information for the years ended December 30, 2017, December 31, 2016 and January 2, 2016 was as follows:

	2017		2016		2015
Cash payments:
Interest	$	96,320	$	82,540	$	89,102
Income taxes		1,711		2,645		1,685
Non cash financing activities:
Purchase of noncontrolling interest	$	(716)	$	—	$	(64,102)

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Stock-Based Compensation

12 Months Ended

Dec. 30, 2017

Company Information

Stock-Based Compensation

(13) Stock-Based Compensation

Prior to the IPO and related Reorganization, the capital structure of Summit Holdings consisted of six different classes of limited partnership units, each of which was subject to unique distribution rights. In connection with the IPO and the related Reorganization, the limited partnership agreement of Summit Holdings was amended and restated to, among other things, modify its capital structure by creating LP Units (“the Reclassification”).  Immediately after the Reclassification, 69.0 million LP Units were outstanding, of which 575,256 time vesting interests had not yet vested, and 2.4 million of performance vesting interests had not yet vested. As of December 30, 2017, approximately 40,000 of the time-vesting units remained outstanding and unvested.

Further in 2015, warrants to purchase 160,333 shares of Class A common stock were issued to holders of Class C interests, and options to purchase 4.4 million shares of Class A common stock were issued to holders of Class D interests as leverage restoration options. The exercise price of the warrants and the leverage restoration options is $18.00 per share. In connection with the Reclassification of the equity-based awards, we recognized $14.5 million modification charge in general and administrative expenses in the year ended January 2, 2016.

The leverage restoration options were granted under the Summit Materials, Inc. 2015 Omnibus Incentive Plan (the “Plan”), and would vest when both the applicable return multiple is achieved and a four year time-vesting condition is satisfied. Subsequently, in August 2016, the Board of Directors determined that it was in the best interest of the Company to waive the 3.0 times threshold on the remaining unvested performance-based LP Units and leverage restoration options. This waiver was accounted for as a modification of both interests. The fair value of the LP Units was based on the closing stock price of Summit Inc.’s shares of Class A common stock on the modification date and the fair value of the leverage restoration options was determined using the Black-Scholes, Merton model. The Company recognized $37.7 million in general and administrative expenses in the year ended December 31, 2016 related to the vesting of these performance-based awards. In addition, as of December 30, 2017, we have $2.3 million of unamortized deferred compensation related to the LP Units and unvested leverage restoration options, which will be amortized through March 2019.

In connection with the IPO, we granted 240,000 options to purchase Class A common stock under the Plan to certain employees. These options vest subject to continuous employment over a four year service period, and are exercisable at $18.00 per share.

Omnibus Incentive Plan

In 2015, our Board of Directors and stockholders adopted a long-term incentive plan in connection with our IPO under the Plan, which allows for grants of equity-based awards in the form of stock options, stock appreciation rights, restricted stock and restricted stock units, performance units, and other stock-based awards. The Plan authorizes the issuance of up to 13,500,000 shares of Class A common stock in the form of restricted stock units and stock options, of which 8.6 million shares were available for future grants as of December 30, 2017.

Restricted Stock

Restricted Stock with Service-Based Vesting—Under the Plan, the Compensation Committee of the Board of Directors (“the Compensation Committee”) has granted restricted stock to members of the Board of Directors, executive officers and other key employees. These awards contain service conditions associated with continued employment or service. The terms of the restricted stock provide voting and regular dividend rights to holders of the awards. Upon vesting, the restrictions on the restricted stock lapse and the shares are considered issued and outstanding for accounting purposes.

In 2017 and 2016, the Compensation Committee granted restricted stock to executives and key employees under the Plan as part of our annual equity award program, which vest over a three year period, subject to continued employment or service.  From time to time, the Compensation Committee grants restricted stock to newly hired or promoted employees or other employees or consultants who have achieved extraordinary personal performance objectives.

In 2017 and 2016, the Compensation Committee granted 34,928 and 28,140 shares, respectively, to non-employee members of the Board of Directors for their annual service as directors. These restricted stock grants vest over a one year period.

In measuring compensation expense associated with the grant of restricted stock, we use the fair value of the award, determined as the closing stock price for our common stock on the date of grant. Compensation expense is recorded monthly over the vesting period of the award.

Restricted stock with Service- and Market-Condition-Based Vesting—In 2017 and 2016, the Compensation Committee granted restricted stock to certain members of our executive team as part of their annual compensation package. The restricted stock vest at the end of a three year performance period, based on our total stock return (“TSR”) ranking relative to companies in the S&P Building & Construction Select Industry Index, subject to continued employment.

In measuring compensation expense associated with these grants, we use the fair value of the award at the date of grant, determined using a Monte Carlo simulation model.  Compensation expense is recorded monthly over the vesting period of the awards. The following table summarizes information for the equity awards granted in 2017:

	Options			Restricted Stock Units			Performance Stock Units			Warrants
		Weighted			Weighted			Weighted			Weighted
		average grant-		Number of	average grant-		Number of	average grant-		Number of	average grant-
	Number of	date fair value		restricted	date fair value		performance	date fair value		performance	date fair value
	options	per unit		stock units	per unit		stock units	per unit		stock units	per unit
Beginning balance—December 31, 2016	4,990,443	$	8.95	352,602	$	17.77	130,691	$	18.71	160,333	$	18.00
Granted	377,630		12.13	307,905		24.01	85,530		31.58	—		—
Forfeited	(11,339)		10.91	(6,109)		20.37	(4,766)		18.71	—		—
Exercised	(1,203,121)		8.90	—		—	—		—	(57,555)		18.00
Vested	—		—	(145,812)		17.68	—		—	—		—
Balance—December 30, 2017	4,153,613	$	9.13	508,586	$	20.14	211,455	$	23.69	102,778	$	18.00

The fair value of the time-vesting options granted in 2017, 2016 and 2015 was estimated as of the grant date using the Black-Scholes-Merton model, which requires the input of subjective assumptions, including the expected volatility and the expected term. The fair value of the performance stock units granted in 2017 and 2016 was estimated as of the grant date using Monte Carlo simulations, which requires the input of subjective assumptions, including the expected volatility and the expected term. The following table presents the weighted average assumptions used to estimate the fair value of grants in 2017, 2016 and 2015:

	Options			Performance Stock Units
	2017	2016	2015	2017	2016
Risk-free interest rate	2.06% - 2.31%	1.75% - 1.97%	1.68% - 1.92%	1.45%	0.88%
Dividend yield	None	None	None	None	None
Volatility	47%	48%	50%	39%	37%
Expected term	7 Years	10 Years	7 - 10 years	3 Years	3 Years

The risk-free rate is based on the yield at the date of grant of a U.S. Treasury security with a maturity period approximating the expected term. As Summit Holdings has not historically and does not plan to issue regular dividends, a dividend yield of zero was used. The volatility assumption is based on reported data of a peer group of publically traded companies for which historical information was available adjusted for the Company’s capital structure. The expected term is based on expectations about future exercises and represents the period of time that the units granted are expected to be outstanding.

Compensation expense for time-vesting interests granted is based on the grant date fair value. The Company recognizes compensation costs on a straight-line basis over the service period, which is generally the vesting period of the award. Forfeitures are recognized as they occur. Share-based compensation expense, which is recognized in general and administrative expenses, totaled $21.1 million, $49.9 million and $19.9 million in the years ended December 30, 2017, December 31, 2016 and January 2, 2016, respectively. As of December 30, 2017, unrecognized compensation cost totaled $23.7 million. The weighted average remaining contractual term over which the unrecognized compensation cost is to be recognized is 1.6 years as of year-end 2017.

As of December 30, 2017, the intrinsic value of outstanding options, restricted stock units and performance stock units was $53.9 million, $16.0 million and $6.6 million, respectively, and the remaining contractual term was 7.5 years, 8.8 years and 8.6 years, respectively. The weighted average strike price of stock options outstanding as of December 30, 2017 was $18.46 per share. The intrinsic value of 1.2 million exercisable stock options as of December 30, 2017 was $16.8 million with a weighted average strike price of $17.92 and a weighted average remaining vesting period of 7.3 years.

Summit Materials, LLC

Company Information

Stock-Based Compensation

(12) Stock-Based Compensation

Prior to the IPO and related Reorganization, the capital structure of Summit Holdings consisted of six different classes of limited partnership units, each of which was subject to unique distribution rights. In connection with the IPO and the related Reorganization, the limited partnership agreement of Summit Holdings was amended and restated to, among other things, modify its capital structure by creating LP Units (“the Reclassification”).  Immediately after the Reclassification, 69.0 million LP Units were outstanding, of which 575,256 time vesting interests had not yet vested, and 2.4 million of performance vesting interests had not yet vested. As of December 30, 2017, approximately 40,000 of the time-vesting units remained outstanding and unvested.

Further in 2015, warrants to purchase 160,333 shares of Class A common stock were issued to holders of Class C interests, and options to purchase 4.4 million shares of Class A common stock were issued to holders of Class D interests as leverage restoration options. The exercise price of the warrants and the leverage restoration options is $18.00 per share. In connection with the Reclassification of the equity-based awards, we recognized $14.5 million modification charge in general and administrative expenses in the year ended January 2, 2016.

The leverage restoration options were granted under the Summit Materials, Inc. 2015 Omnibus Incentive Plan (the “Plan”), and would vest when both the applicable return multiple is achieved and a four year time-vesting condition is satisfied. Subsequently, in August 2016, the Board of Directors determined that it was in the best interest of the Company to waive the 3.0 times threshold on the remaining unvested performance-based LP Units and leverage restoration options. This waiver was accounted for as a modification of both interests. The fair value of the LP Units was based on the closing stock price of Summit Inc.’s shares of class A common stock on the modification date and the fair value of the leverage restoration options was determined using the Black-Scholes, Merton model. The Company recognized $37.7 million in general and administrative expenses in the year ended December 31, 2016 related to the vesting of these performance-based awards. In addition, as of December 30, 2017, we have $2.3 million of unamortized deferred compensation related to the LP Units and unvested leverage restoration options, which will be amortized through March 2019.

In connection with the IPO, we granted 240,000 options to purchase Class A common stock under the Plan to certain employees. These options vest subject to continuous employment over a four year service period, and are exercisable at $18.00 per share.

Omnibus Incentive Plan

In 2015, our Board of Directors and stockholders adopted a long-term incentive plan in connection with our IPO under the Plan, which allows for grants of equity-based awards in the form of stock options, stock appreciation rights, restricted stock and restricted stock units, performance units, and other stock-based awards. The Plan authorizes the issuance of up to 13,500,000 shares of Class A common stock in the form of restricted stock units and stock options, of which 8.6 million shares were available for future grants as of December 30, 2017.

Restricted Stock

Restricted Stock with Service-Based Vesting—Under the Plan, the Compensation Committee of the Board of Directors (“the Compensation Committee”) has granted restricted stock to members of the Board of Directors, executive officers and other key employees. These awards contain service conditions associated with continued employment or service. The terms of the restricted stock provide voting and regular dividend rights to holders of the awards. Upon vesting, the restrictions on the restricted stock lapse and the shares are considered issued and outstanding for accounting purposes.

In 2017 and 2016, the Compensation Committee granted restricted stock to executives and key employees under the Plan as part of our annual equity award program, which vest over a three year period, subject to continued employment or service. From time to time, the Compensation Committee grants restricted stock to newly hired or promoted employees or other employees or consultants who have achieved extraordinary personal performance objectives.

In 2017 and 2016, the Compensation Committee granted 34,928 and 28,140 shares, respectively, to non-employee members of the Board of Directors for their annual service as directors. These restricted stock grants vest over a one year period.

In measuring compensation expense associated with the grant of restricted stock, we use the fair value of the award, determined as the closing stock price for our common stock on the date of grant. Compensation expense is recorded monthly over the vesting period of the award.

Restricted stock with Service- and Market-Condition-Based Vesting—in 2017 and 2016, the Compensation Committee granted restricted stock to certain members of our executive team as part of their annual compensation package. The restricted stock vest at the end of a three year performance period, based on our total stock return (“TSR”) ranking relative to companies in the S&P Building & Construction Select Industry Index, subject to continued employment.

In measuring compensation expense associated with these grants, we use the fair value of the award at the date of grant, determined using a Monte Carlo simulation model.  Compensation expense is recorded monthly over the vesting period of the awards. The following table summarizes information for the equity awards granted in 2017:

	Options			Restricted Stock Units			Performance Stock Units			Warrants
		Weighted			Weighted			Weighted			Weighted
		average grant-		Number of	average grant-		Number of	average grant-		Number of	average grant-
	Number of	date fair value		restricted	date fair value		performance	date fair value		performance	date fair value
	options	per unit		stock units	per unit		stock units	per unit		stock units	per unit
Beginning balance—December 31, 2016	4,990,443	$	8.95	352,602	$	17.77	130,691	$	18.71	160,333	$	18.00
Granted	377,630		12.13	307,905		24.01	85,530		31.58	—		—
Forfeited	(11,339)		10.91	(6,109)		20.37	(4,766)		18.71	—		—
Exercised	(1,203,121)		8.90	—		—	—		—	(57,555)		18.00
Vested	—		—	(145,812)		17.68	—		—	—		—
Balance—December 30, 2017	4,153,613	$	9.13	508,586	$	20.14	211,455	$	23.69	102,778	$	18.00

The fair value of the time-vesting options granted in 2017, 2016 and 2015 was estimated as of the grant date using the Black-Scholes-Merton model, which requires the input of subjective assumptions, including the expected volatility and the expected term. The fair value of the performance stock units granted in 2017 and 2016 was estimated as of the grant date using Monte Carlo simulations, which requires the input of subjective assumptions, including the expected volatility and the expected term. The following table presents the weighted average assumptions used to estimate the fair value of grants in 2017, 2016 and 2015:

	Options			Performance Stock Units
	2017	2016	2015	2017	2016
Risk-free interest rate	2.06% - 2.31%	1.75% - 1.97%	1.68% - 1.92%	1.45%	0.88%
Dividend yield	None	None	None	None	None
Volatility	47%	48%	50%	39%	37%
Expected term	7 Years	10 Years	7 - 10 years	3 Years	3 Years

The risk-free rate is based on the yield at the date of grant of a U.S. Treasury security with a maturity period approximating the expected term. As Summit Holdings has not historically and does not plan to issue regular dividends, a dividend yield of zero was used. The volatility assumption is based on reported data of a peer group of publically traded companies for which historical information was available adjusted for the Company’s capital structure. The expected term is based on expectations about future exercises and represents the period of time that the units granted are expected to be outstanding.

Compensation expense for time-vesting interests granted is based on the grant date fair value. The Company recognizes compensation costs on a straight-line basis over the service period, which is generally the vesting period of the award. Forfeitures are recognized as they occur. Share-based compensation expense, which is recognized in general and administrative expenses, totaled $21.1 million, $49.9 million and $19.9 million in the years ended December 30, 2017, December 31, 2016 and January 2, 2016, respectively. As of December 30, 2017, unrecognized compensation cost totaled $23.7 million. The weighted average remaining contractual term over which the unrecognized compensation cost is to be recognized is 1.6 years as of year-end 2017.

As of December 30, 2017, the intrinsic value of outstanding options, restricted stock units and performance stock units was $53.9 million, $16.0 million and $6.6 million, respectively, and the remaining contractual term was 7.5 years, 8.8 years and 8.6 years, respectively. The weighted average strike price of stock options outstanding as of December 30, 2017 was $18.46 per share. The intrinsic value of 1.2 million exercisable stock options as of December 30, 2017 was $16.8 million with a weighted average strike price of $17.92 and a weighted average remaining vesting period of 7.3 years.

XML

Employee Benefit Plans

12 Months Ended

Dec. 30, 2017

Employee Benefit Plans

(14) Employee Benefit Plans

Defined Contribution Plan—The Company sponsors employee 401(k) savings plans for its employees, including certain union employees. The plans provide for various required and discretionary Company matches of employees’ eligible compensation contributed to the plans. The expense for the defined contribution plans was $9.3 million, $8.6 million and $7.1 million for the years ended December 30, 2017, December 31, 2016 and January 2, 2016, respectively.

Defined Benefit and Other Postretirement Benefits Plans—The Company’s subsidiary, Continental Cement, sponsors two noncontributory defined benefit pension plans for hourly and salaried employees. The salaried plan is closed to new participants and benefits are frozen. The hourly plan is also frozen except that new hourly participants from the Davenport, Iowa location accrue new benefits in the hourly plan. As a result of the collective bargaining unit negotiations in 2017, the hourly defined benefit pension plan was amended to stop future benefit accruals for the Davenport employees effective December 31, 2017. Pension benefits for eligible hourly employees are based on a monthly pension factor for each year of credited service. Pension benefits for eligible salaried employees are generally based on years of service and average eligible compensation.

Continental Cement also sponsors two unfunded healthcare and life insurance benefits plans for certain eligible retired employees. Effective January 1, 2014, the plan covering employees of the Hannibal, Missouri location was amended to eliminate all future retiree health and life coverage for current employees. During 2015, Continental Cement adopted one new unfunded healthcare plan to provide benefits prior to Medicare eligibility for certain hourly employees of the Davenport, Iowa location.

The funded status of the pension and other postretirement benefit plans is recognized in the consolidated balance sheets as the difference between the fair value of plan assets and the benefit obligations. For defined benefit pension plans, the benefit obligation is the projected benefit obligation (“PBO”) and for the healthcare and life insurance benefits plans, the benefit obligation is the accumulated postretirement benefit obligation (“APBO”). The PBO represents the actuarial present value of benefits expected to be paid upon retirement based on estimated future compensation levels. However, since the plans’ participants are not subject to future compensation increases, the plans’ PBO equals the accumulated benefit obligation (“ABO”). The APBO represents the actuarial present value of postretirement benefits attributed to employee services already rendered. The fair value of plan assets represents the current market value of assets held by an irrevocable trust fund for the sole benefit of participants. The measurement of the benefit obligations are based on the Company’s estimates and actuarial valuations. These valuations reflect the terms of the plan and use participant-specific information, such as compensation, age and years of service, as well as certain assumptions that require significant judgment, including estimates of discount rates, expected return on plan assets, rate of compensation increases, interest-crediting rates and mortality rates.

The Company uses December 31 as the measurement date for its defined benefit pension and other postretirement benefit plans.

Obligations and Funded Status—The following information is as of December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, December 31, 2016 and December 31, 2015:

	2017				2016
	Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.
Change in benefit obligations:
Beginning of period	$	27,608	$	12,770	$	27,914	$	13,458
Service cost		285		184		279		230
Interest cost		998		365		1,049		470
Actuarial loss (gain)		1,182		(338)		22		(682)
Curtailments		(430)
Change in plan provision		—		(2,325)		—		65
Benefits paid		(1,659)		(863)		(1,656)		(771)
End of period	$	27,984	$	9,793	$	27,608	$	12,770
Change in fair value of plan assets:
Beginning of period	$	18,395	$	—	$	18,336	$	—
Actual return on plan assets		1,415				719
Employer contributions		861		863		996		771
Benefits paid		(1,659)		(863)		(1,656)		(771)
End of period	$	19,012	$	—	$	18,395	$	—
Funded status of plans	$	(8,972)	$	(9,793)	$	(9,213)	$	(12,770)
Current liabilities	$	—	$	(702)	$	—	$	(844)
Noncurrent liabilities		(8,972)		(9,091)		(9,213)		(11,926)
Liability recognized	$	(8,972)	$	(9,793)	$	(9,213)	$	(12,770)
Amounts recognized in accumulated other comprehensive income:
Net actuarial loss	$	9,341	$	2,285	$	9,248	$	3,060
Prior service cost		—		(2,413)		—		(1,968)
Total amount recognized	$	9,341	$	(128)	$	9,248	$	1,092

The amount recognized in accumulated other comprehensive income (“AOCI”) is the actuarial loss (credit) and prior service cost, which has not yet been recognized in periodic benefit cost. At December 30, 2017, the actuarial loss (credit) and prior service cost (credit) expected to be amortized from AOCI to benefit cost in 2018 is $0.3 million and $(0.2) million for the pension and postretirement obligations, respectively.

	2017				2016				2015
	Pension		Healthcare		Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.		benefits		& Life Ins.
Amounts recognized in other comprehensive (income) loss:
Net actuarial gain (loss)	$	1,068	$	(338)	$	688	$	(682)	$	(16)	$	(1,720)
Prior service cost		—		(572)		—		64		—		—
Amortization of prior year service cost		—		168		—		174		—		174
Curtailment benefit		(429)		—		—		—		—		—
Amortization of gain		(547)		(64)		(463)		(207)		(326)		(235)
Adjustment to plan benefits		—		(414)		—		—		—		—
Total amount recognized	$	92	$	(1,220)	$	225	$	(651)	$	(342)	$	(1,781)
Components of net periodic benefit cost:
Service cost	$	285	$	184	$	279	$	230	$	159	$	149
Interest cost		998		365		1,049		470		1,041		447
Amortization of gain		547		64		463		207		326		235
Expected return on plan assets		(1,302)		—		(1,386)		—		(1,385)		—
Amortization of prior service credit		—		(168)		—		(174)		—		(174)
Net periodic benefit cost	$	528	$	445	$	405	$	733	$	141	$	657

Assumptions—Weighted-average assumptions used to determine the benefit obligations as of year-end 2017 and 2016 are:

	2017		2016
		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	3.23% - 3.37%	3.20% - 3.25%	3.61% - 3.81%	3.32% - 3.65%
Expected long-term rate of return on plan assets	7.00%	N/A	7.00%	N/A

Weighted-average assumptions used to determine net periodic benefit cost for years ended December 30, 2017, December 31, 2016 and January 2, 2016:

	2017		2016		2015
		Healthcare		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	3.61% - 3.81%	3.54% - 3.65%	3.74% - 3.97%	3.34% - 3.80%	3.50% - 3.98%	3.39% - 3.52%
Expected long-term rate of return on plan assets	7.00%	N/A	7.30%	N/A	7.30%	N/A

The expected long-term return on plan assets is based upon the Plans’ consideration of historical and forward-looking returns and the Company’s estimation of what a portfolio, with the target allocation described below, will earn over a long-term horizon. The discount rate is derived using the Citigroup Pension Discount Curve.

Assumed health care cost trend rates were 8.0% grading to 4.5% as of year-end 2017 and 2016. Assumed health care cost trend rates have a significant effect on the amounts reported for the Company’s healthcare and life insurance benefits plans. A one percentage-point change in assumed health care cost trend rates would have the following effects as of year-end 2017 and 2016:

	2017				2016
	Increase		Decrease		Increase		Decrease
Total service cost and interest cost components	$	39	$	(33)	$	55	$	(47)
APBO		857		(769)		1,197		(1,038)

Plan Assets—The defined benefit pension plans’ (the “Plans”) investment strategy is to minimize investment risk while generating acceptable returns. The Plans currently invest a relatively high proportion of the plan assets in fixed income securities, while the remainder is invested in equity securities, cash reserves and precious metals. The equity securities are diversified into funds with growth and value investment strategies. The target allocation for plan assets is as follows: equity securities—30%; fixed income securities—63%; cash reserves—5%; and precious metals—2%. The Plans’ current investment allocations are within the tolerance of the target allocation. The Company had no Level 3 investments as of or for the years ended December 30, 2017 and December 31, 2016.

At year-end 2017 and 2016, the Plans’ assets were invested predominantly in fixed-income securities and publicly traded equities, but may invest in other asset classes in the future subject to the parameters of the investment policy. The Plans’ investments in fixed-income assets include U.S. Treasury and U.S. agency securities and corporate bonds. The Plans’ investments in equity assets include U.S. and international securities and equity funds. The Company estimates the fair value of the Plans’ assets using various valuation techniques and, to the extent available, quoted market prices in active markets or observable market inputs. The descriptions and fair value methodologies for the Plans’ assets are as follows:

Fixed Income Securities—Corporate and government bonds are classified as Level 2 assets, as they are either valued at quoted market prices from observable pricing sources at the reporting date or valued based upon comparable securities with similar yields and credit ratings.

Equity Securities—Equity securities are valued at the closing market price reported on a U.S. exchange where the security is actively traded and are therefore classified as Level 1 assets.

Cash—The carrying amounts of cash approximate fair value due to the short-term maturity.

Precious Metals—Precious metals are valued at the closing market price reported on a U.S. exchange where the security is actively traded and are therefore classified as Level 1 assets.

The fair value of the Plans’ assets by asset class and fair value hierarchy level as of December 31, 2017 and December 31, 2016 are as follows:

	2017
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	3,620	$	3,068	$	552
Intermediate—corporate		3,872		—		3,872
Short-term—government		497		497		—
Short-term—corporate		1,702		—		1,702
Equity securities:
U.S. Large cap value		1,765		1,765		—
U.S. Large cap growth		588		588		—
U.S. Mid cap value		586		586		—
U.S. Mid cap growth		586		586		—
U.S. Small cap value		571		571		—
U.S. Small cap growth		580		580		—
Managed Futures		392		—		392
International		1,547		677		870
Commodities Broad Basket		801		—		801
Cash		1,522		—		1,522
Precious metals		383		383		—
Total	$	19,012	$	9,301	$	9,711

	2016
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	1,770	$	—	$	1,770
Intermediate—corporate		2,658		—		2,658
Short-term—government		912		—		912
Short-term—corporate		3,613		—		3,613
Equity securities:
U.S. Large cap value		1,181		1,181		—
U.S. Large cap growth		1,103		1,103		—
U.S. Mid cap value		577		577		—
U.S. Mid cap growth		546		546		—
U.S. Small cap value		551		551		—
U.S. Small cap growth		540		540		—
Managed Futures		366		366		—
International		1,099		1,099		—
Emerging Markets		359		359		—
Commodities Broad Basket		707		707		—
Cash		2,094		2,094		—
Precious metals		319		319		—
Total	$	18,395	$	9,442	$	8,953

Cash Flows—The Company expects to contribute approximately $1.4 million in 2018 to both its pension plans and to its healthcare and life insurance benefits plans.

The estimated benefit payments for each of the next five years and the five-year period thereafter are as follows:

	Pension		Healthcare and Life
	benefits		Insurance Benefits
2018	$	1,835	$	702
2019		1,830		667
2020		1,804		675
2021		1,771		655
2022		1,768		649
2023 - 2027		8,457		3,250

Summit Materials, LLC

Employee Benefit Plans

(13) Employee Benefit Plans

Defined Contribution Plan—The Company sponsors employee 401(k) savings plans for its employees, including certain union employees. The plans provide for various required and discretionary Company matches of employees’ eligible compensation contributed to the plans. The expense for the defined contribution plans was $9.3 million, $8.6 million and $7.1 million for the years ended December 30, 2017, December 31, 2016 and January 2, 2016, respectively.

Defined Benefit and Other Postretirement Benefits Plans—The Company’s subsidiary, Continental Cement, sponsors two noncontributory defined benefit pension plans for hourly and salaried employees. The salaried plan is closed to new participants and benefits are frozen. The hourly plan is also frozen except that new hourly participants from the Davenport, Iowa location accrue new benefits in the hourly plan. As a result of the collective bargaining unit negotiations in 2017, the hourly defined benefit pension plan was amended to stop future benefit accruals for the Davenport employees effective December 31, 2017. Pension benefits for eligible hourly employees are based on a monthly pension factor for each year of credited service. Pension benefits for eligible salaried employees are generally based on years of service and average eligible compensation.

Continental Cement also sponsors two unfunded healthcare and life insurance benefits plans for certain eligible retired employees. Effective January 1, 2014, the plan covering employees of the Hannibal, Missouri location was amended to eliminate all future retiree health and life coverage for current employees. During 2015, Continental Cement adopted one new unfunded healthcare plan to provide benefits prior to Medicare eligibility for certain hourly employees of the Davenport, Iowa location.

The funded status of the pension and other postretirement benefit plans is recognized in the consolidated balance sheets as the difference between the fair value of plan assets and the benefit obligations. For defined benefit pension plans, the benefit obligation is the projected benefit obligation (“PBO”) and for the healthcare and life insurance benefits plans, the benefit obligation is the accumulated postretirement benefit obligation (“APBO”). The PBO represents the actuarial present value of benefits expected to be paid upon retirement based on estimated future compensation levels. However, since the plans’ participants are not subject to future compensation increases, the plans’ PBO equals the accumulated benefit obligation (“ABO”). The APBO represents the actuarial present value of postretirement benefits attributed to employee services already rendered. The fair value of plan assets represents the current market value of assets held by an irrevocable trust fund for the sole benefit of participants. The measurement of the benefit obligations are based on the Company’s estimates and actuarial valuations. These valuations reflect the terms of the plan and use participant-specific information, such as compensation, age and years of service, as well as certain assumptions that require significant judgment, including estimates of discount rates, expected return on plan assets, rate of compensation increases, interest-crediting rates and mortality rates.

The Company uses December 31 as the measurement date for its defined benefit pension and other postretirement benefit plans.

Obligations and Funded Status—The following information is as of December 31, 2017 and December 31, 2016 and for the years ended December 31, 2017, December 31, 2016 and December 31, 2015: 

	2017				2016
	Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.
Change in benefit obligations:
Beginning of period	$	27,608	$	12,770	$	27,914	$	13,458
Service cost		285		184		279		230
Interest cost		998		365		1,049		470
Actuarial loss (gain)		1,182		(338)		22		(682)
Curtailments		(430)
Change in plan provision		—		(2,325)		—		65
Benefits paid		(1,659)		(863)		(1,656)		(771)
End of period		27,984		9,793		27,608		12,770
Change in fair value of plan assets:
Beginning of period	$	18,395	$	—	$	18,336	$	—
Actual return on plan assets		1,415				719
Employer contributions		861		863		996		771
Benefits paid		(1,659)		(863)		(1,656)		(771)
End of period		19,012		—		18,395		—
Funded status of plans	$	(8,972)	$	(9,793)	$	(9,213)	$	(12,770)
Current liabilities	$	—	$	(702)	$	—	$	(844)
Noncurrent liabilities		(8,972)		(9,091)		(9,213)		(11,926)
Liability recognized	$	(8,972)	$	(9,793)	$	(9,213)	$	(12,770)
Amounts recognized in accumulated other comprehensive income:
Net actuarial loss	$	9,341	$	2,285	$	9,248	$	3,060
Prior service cost		—		(2,413)		—		(1,968)
Total amount recognized	$	9,341	$	(128)	$	9,248	$	1,092

The amount recognized in accumulated other comprehensive income (“AOCI”) is the actuarial loss (credit) and prior service cost, which has not yet been recognized in periodic benefit cost. At December 30, 2017, the actuarial loss (credit) and prior service cost (credit) expected to be amortized from AOCI to benefit cost in 2018 is $0.3 million and $(0.2) million for the pension and postretirement obligations, respectively.

	2017				2016				2015
	Pension		Healthcare		Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.		benefits		& Life Ins.
Amounts recognized in other comprehensive (income) loss:
Net actuarial gain (loss)	$	1,068	$	(338)	$	688	$	(682)	$	(16)	$	(1,720)
Prior service cost		—		(572)		—		64		—		—
Amortization of prior year service cost		—		168		—		174		—		174
Curtailment benefit		(429)		—		—		—		—		—
Amortization of gain		(547)		(64)		(463)		(207)		(326)		(235)
Adjustment to plan benefits		—		(414)		—		—		—		—
Total amount recognized	$	92	$	(1,220)	$	225	$	(651)	$	(342)	$	(1,781)
Components of net periodic benefit cost:
Service cost	$	285	$	184	$	279	$	230	$	159	$	149
Interest cost		998		365		1,049		470		1,041		447
Amortization of gain		547		64		463		207		326		235
Expected return on plan assets		(1,302)		—		(1,386)		—		(1,385)		—
Amortization of prior service credit		—		(168)		—		(174)		—		(174)
Net periodic benefit cost	$	528	$	445	$	405	$	733	$	141	$	657

Assumptions—Weighted-average assumptions used to determine the benefit obligations as of year-end 2017 and 2016 are:

	2017		2016
		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	3.23% - 3.37%	3.20% - 3.25%	3.61% - 3.81%	3.32% - 3.65%
Expected long-term rate of return on plan assets	7.00%	N/A	7.00%	N/A

Weighted-average assumptions used to determine net periodic benefit cost for years ended December 30, 2017, December 31, 2016 and January 2, 2016:

	2017		2016		2015
		Healthcare		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	3.61% - 3.81%	3.54% - 3.65%	3.74% - 3.97%	3.34% - 3.80%	3.50% - 3.98%	3.39% - 3.52%
Expected long-term rate of return on plan assets	7.00%	N/A	7.30%	N/A	7.30%	N/A

The expected long-term return on plan assets is based upon the Plans’ consideration of historical and forward-looking returns and the Company’s estimation of what a portfolio, with the target allocation described below, will earn over a long-term horizon. The discount rate is derived using the Citigroup Pension Discount Curve.

Assumed health care cost trend rates were 8.0% grading to 4.5% as of year-end 2017 and 2016. Assumed health care cost trend rates have a significant effect on the amounts reported for the Company’s healthcare and life insurance benefits plans. A one percentage-point change in assumed health care cost trend rates would have the following effects as of year-end 2017 and 2016:

	2017				2016
	Increase		Decrease		Increase		Decrease
Total service cost and interest cost components	$	39	$	(33)	$	55	$	(47)
APBO		857		(769)		1,197		(1,038)

Plan Assets—The defined benefit pension plans’ (the “Plans”) investment strategy is to minimize investment risk while generating acceptable returns. The Plans currently invest a relatively high proportion of the plan assets in fixed income securities, while the remainder is invested in equity securities, cash reserves and precious metals. The equity securities are diversified into funds with growth and value investment strategies. The target allocation for plan assets is as follows: equity securities—30%; fixed income securities—63%; cash reserves—5%; and precious metals—2%. The Plans’ current investment allocations are within the tolerance of the target allocation. The Company had no Level 3 investments as of or for the years ended December 30, 2017 and December 31, 2016.

At year-end 2017 and 2016, the Plans’ assets were invested predominantly in fixed-income securities and publicly traded equities, but may invest in other asset classes in the future subject to the parameters of the investment policy. The Plans’ investments in fixed-income assets include U.S. Treasury and U.S. agency securities and corporate bonds. The Plans’ investments in equity assets include U.S. and international securities and equity funds. The Company estimates the fair value of the Plans’ assets using various valuation techniques and, to the extent available, quoted market prices in active markets or observable market inputs. The descriptions and fair value methodologies for the Plans’ assets are as follows:

Fixed Income Securities—Corporate and government bonds are classified as Level 2 assets, as they are either valued at quoted market prices from observable pricing sources at the reporting date or valued based upon comparable securities with similar yields and credit ratings.

Equity Securities—Equity securities are valued at the closing market price reported on a U.S. exchange where the security is actively traded and are therefore classified as Level 1 assets.

Cash—The carrying amounts of cash approximate fair value due to the short-term maturity.

Precious Metals—Precious metals are valued at the closing market price reported on a U.S. exchange where the security is actively traded and are therefore classified as Level 1 assets.

The fair value of the Plans’ assets by asset class and fair value hierarchy level as of December 31, 2017 and December 31, 2016 are as follows:

	2017
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	3,620	$	3,068	$	552
Intermediate—corporate		3,872		—		3,872
Short-term—government		497		497		—
Short-term—corporate		1,702		—		1,702
Equity securities:
U.S. Large cap value		1,765		1,765		—
U.S. Large cap growth		588		588		—
U.S. Mid cap value		586		586		—
U.S. Mid cap growth		586		586		—
U.S. Small cap value		571		571		—
U.S. Small cap growth		580		580		—
Managed Futures		392		—		392
International		1,547		677		870
Commodities Broad Basket		801		—		801
Cash		1,522		—		1,522
Precious metals		383		383		—
Total	$	19,012	$	9,301	$	9,711

	2016
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	1,770	$	—	$	1,770
Intermediate—corporate		2,658		—		2,658
Short-term—government		912		—		912
Short-term—corporate		3,613		—		3,613
Equity securities:
U.S. Large cap value		1,181		1,181		—
U.S. Large cap growth		1,103		1,103		—
U.S. Mid cap value		577		577		—
U.S. Mid cap growth		546		546		—
U.S. Small cap value		551		551		—
U.S. Small cap growth		540		540		—
Managed Futures		366		366		—
International		1,099		1,099		—
Emerging Markets		359		359		—
Commodities Broad Basket		707		707		—
Cash		2,094		2,094		—
Precious metals		319		319		—
Total	$	18,395	$	9,442	$	8,953

Cash Flows—The Company expects to contribute approximately $1.4 million in 2018 to both its pension plans and to its healthcare and life insurance benefits plans.

The estimated benefit payments for each of the next five years and the five-year period thereafter are as follows:

	Pension		Healthcare and Life
	benefits		Insurance Benefits
2018	$	1,835	$	702
2019		1,830		667
2020		1,804		675
2021		1,771		655
2022		1,768		649
2023 - 2027		8,457		3,250

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Accrued Mining and Landfill Reclamation

12 Months Ended

Dec. 30, 2017

Accrued Mining and Landfill Reclamation

(15) Accrued Mining and Landfill Reclamation

The Company has asset retirement obligations arising from regulatory or contractual requirements to perform certain reclamation activities at the time that certain quarries and landfills are closed, which are primarily included in other noncurrent liabilities on the consolidated balance sheets. The current portion of the liabilities, $3.9 million and $5.1 million as of December 30, 2017 and December 31, 2016, respectively, is included in accrued expenses on the consolidated balance sheets. The total undiscounted anticipated costs for site reclamation as of December 30, 2017 and December 31, 2016 were $67.9 million and $63.6 million, respectively. The liabilities were initially measured at fair value and are subsequently adjusted for accretion expense, payments and changes in the amount or timing of the estimated cash flows. The corresponding asset retirement costs are capitalized as part of the carrying amount of the related long-lived asset and depreciated over the asset’s remaining useful life. The following table presents the activity for the asset retirement obligations for the years ended December 30, 2017 and December 31, 2016:

	2017		2016
Beginning balance	$	23,906	$	20,735
Acquired obligations		2,303		835
Change in cost estimate		(1,764)		3,055
Settlement of reclamation obligations		(1,996)		(2,283)
Accretion expense		1,880		1,564
Ending balance	$	24,329	$	23,906

Summit Materials, LLC

Accrued Mining and Landfill Reclamation

(14) Accrued Mining and Landfill Reclamation

The Company has asset retirement obligations arising from regulatory or contractual requirements to perform certain reclamation activities at the time that certain quarries and landfills are closed, which are primarily included in other noncurrent liabilities on the consolidated balance sheets. The current portion of the liabilities, $3.9 million and $5.1 million as of December 30, 2017 and December 31, 2016, respectively, is included in accrued expenses on the consolidated balance sheets. The total undiscounted anticipated costs for site reclamation as of December 30, 2017 and December 31, 2016 were $67.9 million and $63.6 million, respectively. The liabilities were initially measured at fair value and are subsequently adjusted for accretion expense, payments and changes in the amount or timing of the estimated cash flows. The corresponding asset retirement costs are capitalized as part of the carrying amount of the related long-lived asset and depreciated over the asset’s remaining useful life. The following table presents the activity for the asset retirement obligations for the years ended December 30, 2017 and December 31, 2016:

	2017		2016
Beginning balance	$	23,906	$	20,735
Acquired obligations		2,303		835
Change in cost estimate		(1,764)		3,055
Settlement of reclamation obligations		(1,996)		(2,283)
Accretion expense		1,880		1,564
Ending balance	$	24,329	$	23,906

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Commitments and Contingencies

12 Months Ended

Dec. 30, 2017

Commitments and Contingencies

(16) Commitments and Contingencies

The Company is party to certain legal actions arising from the ordinary course of business activities. Accruals are recorded when the outcome is probable and can be reasonably estimated. While the ultimate results of claims and litigation cannot be predicted with certainty, management expects that the ultimate resolution of all pending or threatened claims and litigation will not have a material effect on the Company’s consolidated results of operations, financial position or liquidity. The Company records legal fees as incurred.

Litigation and Claims—The Company is obligated under an indemnification agreement entered into with the sellers of Harper Contracting, Inc., Harper Sand and Gravel, Inc., Harper Excavating, Inc., Harper Ready Mix Company, Inc. and Harper Investments, Inc. for the sellers’ ownership interests in a joint venture agreement. The Company has the rights to any benefits under the joint venture as well as the assumption of any obligations, but does not own equity interests in the joint venture. The joint venture has incurred significant losses on a highway project in Utah, which have resulted in requests for funding from the joint venture partners and ultimately from the Company. In the third quarter of 2017, the Company settled its remaining obligations under the indemnification agreement for $3.5 million, which was $0.8 million less than amounts previously accrued.

Environmental Remediation and Site Restoration—The Company’s operations are subject to and affected by federal, state, provincial and local laws and regulations relating to the environment, health and safety and other regulatory matters. These operations require environmental operating permits, which are subject to modification, renewal and revocation. The Company regularly monitors and reviews its operations, procedures and policies for compliance with these laws and regulations. Despite these compliance efforts, risk of environmental liability is inherent in the operation of the Company’s business, as it is with other companies engaged in similar businesses and there can be no assurance that environmental liabilities or noncompliance will not have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity.

Other—The Company is obligated under various firm purchase commitments for certain raw materials and services that are in the ordinary course of business. Management does not expect any significant changes in the market value of these goods and services during the commitment period that would have a material adverse effect on the financial condition, results of operations and cash flows of the Company. The terms of the purchase commitments generally approximate one year.

Summit Materials, LLC

Commitments and Contingencies

(15) Commitments and Contingencies

The Company is party to certain legal actions arising from the ordinary course of business activities. Accruals are recorded when the outcome is probable and can be reasonably estimated. While the ultimate results of claims and litigation cannot be predicted with certainty, management expects that the ultimate resolution of all pending or threatened claims and litigation will not have a material effect on the Company’s consolidated results of operations, financial position or liquidity. The Company records legal fees as incurred.

Litigation and Claims—The Company is obligated under an indemnification agreement entered into with the sellers of Harper Contracting, Inc., Harper Sand and Gravel, Inc., Harper Excavating, Inc., Harper Ready Mix Company, Inc. and Harper Investments, Inc. for the sellers’ ownership interests in a joint venture agreement. The Company has the rights to any benefits under the joint venture as well as the assumption of any obligations, but does not own equity interests in the joint venture. The joint venture has incurred significant losses on a highway project in Utah, which have resulted in requests for funding from the joint venture partners and ultimately from the Company. In the third quarter of 2017, the Company settled its remaining obligations under the indemnification agreement for $3.5 million, which was $0.8 million less than amounts previously accrued.

Environmental Remediation and Site Restoration—The Company’s operations are subject to and affected by federal, state, provincial and local laws and regulations relating to the environment, health and safety and other regulatory matters. These operations require environmental operating permits, which are subject to modification, renewal and revocation. The Company regularly monitors and reviews its operations, procedures and policies for compliance with these laws and regulations. Despite these compliance efforts, risk of environmental liability is inherent in the operation of the Company’s business, as it is with other companies engaged in similar businesses and there can be no assurance that environmental liabilities or noncompliance will not have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity.

Other—The Company is obligated under various firm purchase commitments for certain raw materials and services that are in the ordinary course of business. Management does not expect any significant changes in the market value of these goods and services during the commitment period that would have a material adverse effect on the financial condition, results of operations and cash flows of the Company. The terms of the purchase commitments generally approximate one year.

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Leasing Arrangements

12 Months Ended

Dec. 30, 2017

Leasing Arrangements

(17) Leasing Arrangements

Rent expense, which primarily relates to land, plants and equipment, during the years ended December 30, 2017, December 31, 2016 and January 2, 2016 was $21.7 million, $18.6 million and $12.1 million, respectively. The Company has lease agreements associated with quarry facilities under which royalty payments are made. The payments are generally based on tons sold in a particular period; however, certain agreements have minimum annual payments. Royalty expense recorded in cost of revenue during the years ended December 30, 2017, December 31, 2016 and January 2, 2016 was $18.7 million, $15.6 million and $12.6 million, respectively. Minimum contractual commitments for the subsequent five years under long-term operating leases and under royalty agreements are as follows:

	Operating		Royalty
	Leases		Agreements
2018	$	8,627	$	6,450
2019		7,077		6,017
2020		5,826		5,833
2021		4,650		5,550
2022		2,475		5,431

Summit Materials, LLC

Leasing Arrangements

(16) Leasing Arrangements

Rent expense, which primarily relates to land, plants and equipment, during the years ended December 30, 2017, December 31, 2016 and January 2, 2016 was $21.7 million, $18.6 million and $12.1 million, respectively. The Company has lease agreements associated with quarry facilities under which royalty payments are made. The payments are generally based on tons sold in a particular period; however, certain agreements have minimum annual payments. Royalty expense recorded in cost of revenue during the years ended December 30, 2017, December 31, 2016 and January 2, 2016 was $18.7 million, $15.6 million and $12.6 million, respectively. Minimum contractual commitments for the subsequent five years under long-term operating leases and under royalty agreements are as follows:

	Operating		Royalty
	Leases		Agreements
2018	$	8,627	$	6,450
2019		7,077		6,017
2020		5,826		5,833
2021		4,650		5,550
2022		2,475		5,431

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Related Party Transactions

12 Months Ended

Dec. 30, 2017

Related Party Transactions

(18) Related Party Transactions

Under the terms of a transaction and management fee agreement between Summit Holdings and Blackstone Management Partners L.L.C. (“BMP”), whose affiliates include controlling stockholders of the Company, BMP provided monitoring, advisory and consulting services to the Company through March 17, 2015. Under the terms of the agreement, BMP was permitted to assign, and had assigned, a portion of the fees to which it was entitled to Silverhawk Summit, L.P. and to certain other equity investors.

In connection with the IPO, the transaction and management fee agreement with BMP was terminated on March 17, 2015 for a termination payment of $13.8 million; $13.4 million was paid to affiliates of BMP and the remaining $0.4 million was paid to affiliates of Silverhawk Summit, L.P. and to certain other equity investors.

Blackstone Advisory Partners L.P., an affiliate of BMP, served as an initial purchaser of $18.8 million of the 2022 Notes issued in March 2016 and $22.5 million and $26.3 million of the 2023 Notes issued in November 2015 and July 2015, respectively, and received compensation in connection therewith. In addition, Blackstone Advisory Partners L.P. served as an underwriter of 1,681,875 shares of Class A common stock issued in connection with the August 2015 follow-on offering and received compensation in connection therewith.

On July 17, 2015, the Company purchased the Davenport Assets from Lafarge North America Inc. for a purchase price of $450.0 million in cash and a cement distribution terminal in Bettendorf, Iowa. At closing, $370.0 million of the purchase price was paid, and the remaining $80.0 million was paid on August 13, 2015. Summit Holdings entered into a commitment letter dated April 16, 2015, with Blackstone Capital Partners V L.P. (“BCP”) for equity financing up to $90.0 million in the form of a preferred equity interest (the “Equity Commitment Financing”), which would have been used to pay the $80.0 million deferred purchase price if other financing was not secured by December 31, 2015. For the Equity Commitment Financing, the Company paid a $1.8 million commitment fee to BCP for the year ended January 2, 2016.

Summit Materials, LLC

Related Party Transactions

(17) Related Party Transactions

Under the terms of a transaction and management fee agreement between Summit Holdings and Blackstone Management Partners L.L.C. (“BMP”), whose affiliates include controlling stockholders of the Company, BMP provided monitoring, advisory and consulting services to the Company through March 17, 2015. Under the terms of the agreement, BMP was permitted to assign, and had assigned, a portion of the fees to which it was entitled to Silverhawk Summit, L.P. and to certain other equity investors.

In connection with the IPO, the transaction and management fee agreement with BMP was terminated on March 17, 2015 for a termination payment of $13.8 million; $13.4 million was paid to affiliates of BMP and the remaining $0.4 million was paid to affiliates of Silverhawk Summit, L.P. and to certain other equity investors.

Blackstone Advisory Partners L.P., an affiliate of BMP, served as an initial purchaser of $18.8 million of the 2022 Notes issued in March 2016 and $22.5 million and $26.3 million of the 2023 Notes issued in November 2015 and July 2015, respectively, and received compensation in connection therewith. In addition, Blackstone Advisory Partners L.P. served as an underwriter of 1,681,875 shares of Class A common stock issued in connection with the August 2015 follow-on offering and received compensation in connection therewith.

On July 17, 2015, the Company purchased the Davenport Assets from Lafarge North America Inc. for a purchase price of $450.0 million in cash and a cement distribution terminal in Bettendorf, Iowa. At closing, $370.0 million of the purchase price was paid, and the remaining $80.0 million was paid on August 13, 2015. Summit Holdings entered into a commitment letter dated April 16, 2015, with Blackstone Capital Partners V L.P. (“BCP”) for equity financing up to $90.0 million in the form of a preferred equity interest (the “Equity Commitment Financing”), which would have been used to pay the $80.0 million deferred purchase price if other financing was not secured by December 31, 2015. For the Equity Commitment Financing, the Company paid a $1.8 million commitment fee to BCP for the year ended January 2, 2016.

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Fair Value of Financial Instruments

12 Months Ended

Dec. 30, 2017

Fair Value of Financial Instruments

(19) Fair Value of Financial Instruments

Fair Value Measurements—Certain acquisitions made by the Company require the payment of contingent amounts of purchase consideration. These payments are contingent on specified operating results being achieved in periods subsequent to the acquisition and will only be made if earn-out thresholds are achieved. Contingent consideration obligations are measured at fair value each reporting period. Any adjustments to fair value are recognized in earnings in the period identified.

The Company has entered into interest rate derivatives on $200.0 million of its term loan borrowings to add stability to interest expense and to manage its exposure to interest rate movements. The interest rate derivative expires in September 2019. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and will be subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The fair value of contingent consideration and derivatives as of December 30, 2017 and December 31, 2016 was:

	2017		2016
Current portion of acquisition-related liabilities and Accrued expenses:
Contingent consideration	$	594	$	9,288
Cash flow hedges		488		942
Acquisition-related liabilities and Other noncurrent liabilities
Contingent consideration	$	34,301	$	2,377
Cash flow hedges		492		1,438

The fair value accounting guidance establishes the following fair value hierarchy that prioritizes the inputs used to measure fair value:

Level  1 —  Unadjusted quoted prices for identical assets or liabilities in active markets.

Level 2 —   Inputs other than Level 1 that are based on observable market data, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, inputs that are observable that are not prices and inputs that are derived from or corroborated by observable markets.

Level 3 —  Valuations developed from unobservable data, reflecting the Company’s own assumptions, which market participants would use in pricing the asset or liability.

The fair value of contingent consideration was based on unobservable, or Level 3, inputs, including projected probability-weighted cash payments and an 11.0% discount rate, which reflects a market discount rate. Changes in fair value may occur as a result of a change in actual or projected cash payments, the probability weightings applied by the Company to projected payments or a change in the discount rate. Significant increases or decreases in any of these inputs in isolation could result in a lower, or higher, fair value measurement. The fair value of the cash flow hedges are based on observable, or Level 2, inputs such as interest rates, bond yields and prices in inactive markets. There were no material adjustments to the fair value of contingent consideration in 2017 or 2016, or to cash flow hedges in 2017 or 2016. In 2016, a $6.1 million increase in the fair value of contingent consideration was recognized as a result of a change in projected cash payments.

Financial Instruments—The Company’s financial instruments include debt and certain acquisition-related liabilities (deferred consideration and noncompete obligations). The carrying value and fair value of these financial instruments as of December 30, 2017 and December 31, 2016 were:

	December 30, 2017				December 31, 2016
	Fair Value		Carrying Value		Fair Value		Carrying Value
Level 2
Long-term debt(1)	$	1,893,239	$	1,832,455	$	1,586,102	$	1,536,065
Level 3
Current portion of deferred consideration and noncompete obligations(2)		13,493		13,493		14,874		14,874
Long term portion of deferred consideration and noncompete obligations(3)		23,834		23,834		30,287		30,287

(1) $4.8 million and $6.5 million included in current portion of debt as of December 30, 2017 and December 31, 2016, respectively.

(2) Included in current portion of acquisition-related liabilities on the consolidated balance sheets.

(3) Included in acquisition-related liabilities on the consolidated balance sheets.

The fair value of debt was determined based on observable, or Level 2 inputs, such as interest rates, bond yields and quoted prices in inactive markets. The fair values of the deferred consideration and noncompete obligations were determined based on unobservable, or Level 3, inputs, including the cash payment terms in the purchase agreements and a discount rate reflecting the Company’s credit risk. The discount rate used is generally consistent with that used when the obligations were initially recorded.

Securities with a maturity of three months or less are considered cash equivalents and the fair value of these assets approximates their carrying value.

Summit Materials, LLC

Fair Value of Financial Instruments

(18) Fair Value of Financial Instruments

Fair Value Measurements—Certain acquisitions made by the Company require the payment of contingent amounts of purchase consideration. These payments are contingent on specified operating results being achieved in periods subsequent to the acquisition and will only be made if earn-out thresholds are achieved. Contingent consideration obligations are measured at fair value each reporting period. Any adjustments to fair value are recognized in earnings in the period identified.

The Company has entered into interest rate derivatives on $200.0 million of its term loan borrowings to add stability to interest expense and to manage its exposure to interest rate movements. The interest rate derivative expires in September 2019. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and will be subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The fair value of contingent consideration and derivatives as of December 30, 2017 and December 31, 2016 was:

	2017		2016
Current portion of acquisition-related liabilities and Accrued expenses:
Contingent consideration	$	594	$	9,288
Cash flow hedges		488		942
Acquisition-related liabilities and Other noncurrent liabilities
Contingent consideration	$	34,301	$	2,377
Cash flow hedges		492		1,438

The fair value accounting guidance establishes the following fair value hierarchy that prioritizes the inputs used to measure fair value:

Level 1 —	Unadjusted quoted prices for identical assets or liabilities in active markets.
Level 2 —	Inputs other than Level 1 that are based on observable market data, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or liabilities in inactive markets, inputs that are observable that are not prices and inputs that are derived from or corroborated by observable markets.
Level 3 —	Valuations developed from unobservable data, reflecting the Company’s own assumptions, which market participants would use in pricing the asset or liability.

The fair value of contingent consideration was based on unobservable, or Level 3, inputs, including projected probability-weighted cash payments and an 11.0% discount rate, which reflects a market discount rate. Changes in fair value may occur as a result of a change in actual or projected cash payments, the probability weightings applied by the Company to projected payments or a change in the discount rate. Significant increases or decreases in any of these inputs in isolation could result in a lower, or higher, fair value measurement. The fair value of the cash flow hedges are based on observable, or Level 2, inputs such as interest rates, bond yields and prices in inactive markets. There were no material adjustments to the fair value of contingent consideration in 2017 or 2016, or to cash flow hedges in 2017 or 2016. In 2016, a $6.1 million increase in the fair value of contingent consideration was recognized as a result of a change in projected cash payments.

Financial Instruments—The Company’s financial instruments include debt and certain acquisition-related liabilities (deferred consideration and noncompete obligations). The carrying value and fair value of these financial instruments as of December 30, 2017 and December 31, 2016 were:

	December 30, 2017				December 31, 2016
	Fair Value		Carrying Value		Fair Value		Carrying Value
Level 2
Long-term debt(1)	$	1,893,239	$	1,832,455	$	1,586,102	$	1,536,065
Level 3
Current portion of deferred consideration and noncompete obligations(2)		10,993		10,993		12,375		12,375
Long term portion of deferred consideration and noncompete obligations(3)		17,938		17,938		22,784		22,784

(1)$4.8 million and $6.5 million included in current portion of debt as of December 30, 2017 and December 31, 2016, respectively.

(2)Included in current portion of acquisition-related liabilities on the consolidated balance sheets.

(3)Included in acquisition-related liabilities on the consolidated balance sheets.

The fair value of debt was determined based on observable, or Level 2 inputs, such as interest rates, bond yields and quoted prices in inactive markets. The fair values of the deferred consideration and noncompete obligations were determined based on unobservable, or Level 3, inputs, including the cash payment terms in the purchase agreements and a discount rate reflecting the Company’s credit risk. The discount rate used is generally consistent with that used when the obligations were initially recorded.

Securities with a maturity of three months or less are considered cash equivalents and the fair value of these assets approximates their carrying value.

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Segment Information

12 Months Ended

Dec. 30, 2017

Segment Information

(20) Segment Information

The Company has three operating segments: West; East; and Cement, which are its reporting segments. These segments are consistent with the Company’s management reporting structure. The operating results of each segment are regularly reviewed and evaluated by the Chief Executive Officer, the Company’s Chief Operating Decision Maker (“CODM”). The CODM primarily evaluates the performance of its segments and allocates resources to them based on a segment profit metric that we call Adjusted EBITDA, which is computed as earnings from continuing operations before interest, taxes, depreciation, depletion, amortization, accretion, share-based compensation, and transaction costs, as well as various other non-recurring, non-cash amounts.

The West and East segments have several acquired subsidiaries that are engaged in various activities including quarry mining, aggregate production and contracting. The Cement segment is engaged in the production of Portland cement. Assets employed by each segment include assets directly identified with those operations. Corporate assets consist primarily of cash, property, plant and equipment for corporate operations and other assets not directly identifiable with a reportable business segment. The accounting policies applicable to each segment are consistent with those used in the consolidated financial statements.

The following tables display selected financial data for the Company’s reportable business segments as of and for the years ended December 30, 2017, December 31, 2016 and January 2, 2016:

	2017		2016		2015
Revenue*:
West	$	998,843	$	813,682	$	804,503
East		629,919		531,294		432,310
Cement		303,813		281,087		195,484
Total revenue	$	1,932,575	$	1,626,063	$	1,432,297

*       Intercompany sales are immaterial and the presentation above only reflects sales to external customers.

	2017		2016		2015
(Loss) income from continuing operations before taxes	$	(158,200)	$	40,827	$	(19,194)
Interest expense		108,549		97,536		84,629
Depreciation, depletion and amortization		177,643		147,736		118,321
Accretion		1,875		1,564		1,402
IPO/ Legacy equity modification costs		—		37,257		28,296
Loss on debt financings		4,815		—		71,631
Tax receivable agreement expense		271,016		14,938		—
Transaction costs		7,733		6,797		9,519
Management fees and expenses		—		(1,379)		1,046
Non-cash compensation		21,140		12,683		5,448
Other		1,206		13,388		(13,570)
Total Adjusted EBITDA	$	435,777	$	371,347	$	287,528
Total Adjusted EBITDA by Segment:
West	$	203,590	$	167,434	$	150,764
East		139,108		126,007		92,303
Cement		127,547		112,991		74,845
Corporate and other		(34,468)		(35,085)		(30,384)
Total Adjusted EBITDA	$	435,777	$	371,347	$	287,528

	2017		2016		2015
Purchases of property, plant and equipment
West	$	83,591	$	77,335	$	39,896
East		68,556		45,492		26,268
Cement		35,803		25,408		17,151
Total reportable segments		187,950		148,235		83,315
Corporate and other		6,196		5,248		5,635
Total purchases of property, plant and equipment	$	194,146	$	153,483	$	88,950

	2017		2016		2015
Depreciation, depletion, amortization and accretion:
West	$	71,314	$	65,345	$	53,727
East		67,252		51,540		38,923
Cement		38,351		30,006		24,758
Total reportable segments		176,917		146,891		117,408
Corporate and other		2,601		2,409		2,315
Total depreciation, depletion, amortization and accretion	$	179,518	$	149,300	$	119,723

	2017		2016		2015
Total assets:
West	$	1,225,463	$	902,763	$	821,479
East		1,035,609		870,613		545,187
Cement		870,652		868,440		843,941
Total reportable segments		3,131,724		2,641,816		2,210,607
Corporate and other		655,609		139,650		185,572
Total	$	3,787,333	$	2,781,466	$	2,396,179

	2017		2016		2015
Revenue by product*:
Aggregates	$	313,383	$	264,609	$	219,040
Cement		282,041		250,349		167,696
Ready-mix concrete		492,302		395,917		350,262
Asphalt		285,653		239,419		252,031
Paving and related services		371,763		304,041		295,995
Other		187,433		171,728		147,273
Total revenue	$	1,932,575	$	1,626,063	$	1,432,297

*       Revenue from the liquid asphalt terminals is included in asphalt revenue.

Summit Materials, LLC

Segment Information

(19) Segment Information

The Company has three operating segments: West; East; and Cement, which are its reporting segments. These segments are consistent with the Company’s management reporting structure. The operating results of each segment are regularly reviewed and evaluated by the Chief Executive Officer, the Company’s Chief Operating Decision Maker (“CODM”). The CODM primarily evaluates the performance of its segments and allocates resources to them based on a segment profit metric that we call Adjusted EBITDA, which is computed as earnings from continuing operations before interest, taxes, depreciation, depletion, amortization, accretion, share-based compensation, and transaction costs, as well as various other non-recurring, non-cash amounts.

The West and East segments have several acquired subsidiaries that are engaged in various activities including quarry mining, aggregate production and contracting. The Cement segment is engaged in the production of Portland cement. Assets employed by each segment include assets directly identified with those operations. Corporate assets consist primarily of cash, property, plant and equipment for corporate operations and other assets not directly identifiable with a reportable business segment. The accounting policies applicable to each segment are consistent with those used in the consolidated financial statements.

The following tables display selected financial data for the Company’s reportable business segments as of and for the years ended December 30, 2017, December 31, 2016 and January 2, 2016:

	2017		2016		2015
Revenue*:
West	$	998,843	$	813,682	$	804,503
East		629,919		531,294		432,310
Cement		303,813		281,087		195,484
Total revenue	$	1,932,575	$	1,626,063	$	1,432,297

*   Intercompany sales are immaterial and the presentation above only reflects sales to external customers.

	2017		2016		2015
Income (loss) from continuing operations before taxes	$	113,696	$	56,805	$	(18,322)
Interest expense		107,655		96,483		83,757
Depreciation, depletion and amortization		177,643		147,736		118,321
Accretion		1,875		1,564		1,402
IPO/ Legacy equity modification costs		—		37,257		28,296
Loss on debt financings		4,815		—		71,631
Transaction costs		7,733		6,797		9,519
Management fees and expenses		—		(1,379)		1,046
Non-cash compensation		21,140		12,683		5,448
Other		1,206		13,388		(13,570)
Total Adjusted EBITDA	$	435,763	$	371,334	$	287,528
Total Adjusted EBITDA by Segment:
West	$	203,590	$	167,434	$	150,764
East		139,108		126,007		92,303
Cement		127,547		112,991		74,845
Corporate and other		(34,482)		(35,098)		(30,384)
Total Adjusted EBITDA	$	435,763	$	371,334	$	287,528

	2017		2016		2015
Purchases of property, plant and equipment
West	$	83,591	$	77,335	$	39,896
East		68,556		45,492		26,268
Cement		35,803		25,408		17,151
Total reportable segments		187,950		148,235		83,315
Corporate and other		6,196		5,248		5,635
Total purchases of property, plant and equipment	$	194,146	$	153,483	$	88,950

	2017		2016		2015
Depreciation, depletion, amortization and accretion:
West	$	71,314	$	65,345	$	53,727
East		67,252		51,540		38,923
Cement		38,351		30,006		24,758
Total reportable segments		176,917		146,891		117,408
Corporate and other		2,601		2,409		2,315
Total depreciation, depletion, amortization and accretion	$	179,518	$	149,300	$	119,723

	2017		2016		2015
Total assets:
West	$	1,225,463	$	902,763	$	821,479
East		1,035,609		870,613		545,187
Cement		870,652		868,440		843,941
Total reportable segments		3,131,724		2,641,816		2,210,607
Corporate and other		372,517		134,604		184,555
Total	$	3,504,241	$	2,776,420	$	2,395,162

	2017		2016		2015
Revenue by product*:
Aggregates	$	313,383	$	264,609	$	219,040
Cement		282,041		250,349		167,696
Ready-mix concrete		492,302		395,917		350,262
Asphalt		285,653		239,419		252,031
Paving and related services		371,763		304,041		295,995
Other		187,433		171,728		147,273
Total revenue	$	1,932,575	$	1,626,063	$	1,432,297

*Revenue from the liquid asphalt terminals is included in asphalt revenue.

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Senior Notes' Guarantor and Non-Guarantor Financial Information

12 Months Ended

Dec. 30, 2017

Summit Materials, LLC

Senior Notes' Guarantor and Non-Guarantor Financial Information

(20) Senior Notes’ Guarantor and Non-Guarantor Financial Information

Summit LLC’s domestic wholly-owned subsidiary companies other than Finance Corp. are named as guarantors (collectively, the “Guarantors”) of the Senior Notes. Certain other partially-owned subsidiaries and a non-U.S. entity do not guarantee the Senior Notes (collectively, the “Non-Guarantors”). The Guarantors provide a joint and several, full and unconditional guarantee of the Senior Notes.

There are no significant restrictions on Summit LLC’s ability to obtain funds from any of the Guarantor Subsidiaries in the form of dividends or loans. Additionally, there are no significant restrictions on a Guarantor Subsidiary’s ability to obtain funds from Summit LLC or its direct or indirect subsidiaries.

The following condensed consolidating balance sheets, statements of operations and cash flows are provided for the Issuers, the Wholly-owned Guarantors and the Non-Guarantors. On March 17, 2015, the noncontrolling interests of Continental Cement were purchased resulting in Continental Cement being a wholly-owned indirect subsidiary of Summit LLC. Continental Cement’s results of operations and cash flows are reflected with the Guarantors for the year ended December 30, 2017. In 2014, Continental Cement’s results are shown separately as a Non Wholly-owned Guarantor.

Earnings from subsidiaries are included in other income in the condensed consolidated statements of operations below. The financial information may not necessarily be indicative of the financial position, results of operations or cash flows had the guarantor or non-guarantor subsidiaries operated as independent entities.

Condensed Consolidating Balance Sheets

December 30, 2017

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	370,741	$	10,254	$	14,933	$	(12,372)	$	383,556
Accounts receivable, net		—		183,139		15,191		—		198,330
Intercompany receivables		573,301		484,747		—		(1,058,048)		—
Cost and estimated earnings in excess of billings		—		9,264		248		—		9,512
Inventories		—		180,283		4,156		—		184,439
Other current assets		1,167		6,354		243		—		7,764
Total current assets		945,209		874,041		34,771		(1,070,420)		783,601
Property, plant and equipment, net		9,259		1,569,118		37,047		—		1,615,424
Goodwill		—		976,206		61,114		—		1,037,320
Intangible assets, net		—		16,833		—		—		16,833
Other assets		2,890,674		162,711		1,271		(3,003,593)		51,063
Total assets	$	3,845,142	$	3,598,909	$	134,203	$	(4,074,013)	$	3,504,241
Liabilities and Member’s Interest
Current liabilities:
Current portion of debt	$	4,765	$	—	$	—	$	—	$	4,765
Current portion of acquisition-related liabilities		—		11,587		—		—		11,587
Accounts payable		3,976		89,912		6,749		—		100,637
Accrued expenses		47,047		79,372		2,227		(12,372)		116,274
Intercompany payables		684,057		369,918		4,073		(1,058,048)		—
Billings in excess of costs and estimated earnings		—		15,349		401		—		15,750
Total current liabilities		739,845		566,138		13,450		(1,070,420)		249,013
Long-term debt		1,810,833		—		—		—		1,810,833
Acquisition-related liabilities		—		52,239		—		—		52,239
Other noncurrent liabilities		2,870		193,801		75,209		(171,318)		100,562
Total liabilities		2,553,548		812,178		88,659		(1,241,738)		2,212,647
Total member's interest		1,291,594		2,786,731		45,544		(2,832,275)		1,291,594
Total liabilities and member’s interest	$	3,845,142	$	3,598,909	$	134,203	$	(4,074,013)	$	3,504,241

Condensed Consolidating Balance Sheets

December 31, 2016

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	133,862	$	4,820	$	14,656	$	(10,666)	$	142,672
Accounts receivable, net		—		155,389		7,090		(102)		162,377
Intercompany receivables		521,658		321,776		—		(843,434)		—
Cost and estimated earnings in excess of billings		—		6,830		620		—		7,450
Inventories		—		153,374		4,305		—		157,679
Other current assets		1,259		11,012		529		—		12,800
Total current assets		656,779		653,201		27,200		(854,202)		482,978
Property, plant and equipment, net		7,033		1,418,902		20,517		—		1,446,452
Goodwill		—		735,490		46,722		—		782,212
Intangible assets, net		—		17,989		—		—		17,989
Other assets		2,293,803		125,270		1,946		(2,374,230)		46,789
Total assets	$	2,957,615	$	2,950,852	$	96,385	$	(3,228,432)	$	2,776,420
Liabilities and Member’s Interest
Current liabilities:
Current portion of debt	$	6,500	$	—	$	—	$	—	$	6,500
Current portion of acquisition-related liabilities		1,000		20,663		—		—		21,663
Accounts payable		1,497		76,886		3,329		(102)		81,610
Accrued expenses		46,460		73,807		872		(10,666)		110,473
Intercompany payables		509,503		327,405		6,526		(843,434)		—
Billings in excess of costs and estimated earnings		—		15,242		214		—		15,456
Total current liabilities		564,960		514,003		10,941		(854,202)		235,702
Long-term debt		1,514,456		—		—		—		1,514,456
Acquisition-related liabilities		—		25,161		—		—		25,161
Other noncurrent liabilities		2,395		231,199		56,356		(165,242)		124,708
Total liabilities		2,081,811		770,363		67,297		(1,019,444)		1,900,027
Total member's interest		875,804		2,180,489		29,088		(2,208,988)		876,393
Total liabilities and member’s interest	$	2,957,615	$	2,950,852	$	96,385	$	(3,228,432)	$	2,776,420

Condensed Consolidating Statements of Operations and Comprehensive Loss

Year ended December 30, 2017

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—		1,854,434		84,020		(5,879)	$	1,932,575
Cost of revenue (excluding items shown separately below)		—		1,227,037		60,619		(5,879)		1,281,777
General and administrative expenses		63,954		178,023		8,426		—		250,403
Depreciation, depletion, amortization and accretion		2,601		172,738		4,179		—		179,518
Operating (loss) income		(66,555)		276,636		10,796		—		220,877
Other income, net		(307,876)		(1,925)		(533)		309,860		(474)
Interest expense (income)		105,735		(2,415)		4,335		—		107,655
Income from operations before taxes		135,586		280,976		6,994		(309,860)		113,696
Income tax expense		1,518		(23,774)		1,911		—		(20,345)
Net income		134,068		304,750		5,083		(309,860)		134,041
Net loss attributable to noncontrolling interest		—		—		—		(27)		(27)
Net income attributable to member of Summit Materials, LLC	$	134,068	$	304,750	$	5,083	$	(309,833)	$	134,068
Comprehensive income (loss) attributable to member of Summit Materials, LLC	$	144,377	$	302,209	$	(2,685)	$	(299,524)	$	144,377

Condensed Consolidating Statements of Operations and Comprehensive Loss

Year ended December 31, 2016

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—	$	1,586,858	$	47,064	$	(7,859)	$	1,626,063
Cost of revenue (excluding items shown separately below)		—		1,047,120		32,531		(7,859)		1,071,792
General and administrative expenses		91,533		152,402		6,374		—		250,309
Depreciation, depletion, amortization and accretion		2,410		142,773		4,117		—		149,300
Operating (loss) income		(93,943)		244,563		4,042		—		154,662
Other (income) expense, net		(239,082)		1,908		(326)		238,874		1,374
Interest expense		83,068		9,956		3,459		—		96,483
Income from operations before taxes		62,071		232,699		909		(238,874)		56,805
Income (benefit) tax benefit		—		(5,551)		269		—		(5,282)
Net income		62,071		238,250		640		(238,874)		62,087
Net income attributable to noncontrolling interest		—		—		—		16		16
Net income attributable to member of Summit Materials, LLC	$	62,071	$	238,250	$	640	$	(238,890)	$	62,071
Comprehensive income (loss) attributable to member of Summit Materials, LLC	$	63,093	$	239,353	$	(1,485)	$	(237,868)	$	63,093

Condensed Consolidating Statements of Operations and Comprehensive Loss

Year ended January 2, 2016

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—	$	1,364,622	$	100,360	$	(32,685)	$	1,432,297
Cost of revenue (excluding items shown separately below)		—		958,144		64,803		(32,685)		990,262
General and administrative expenses		73,555		107,282		6,451		—		187,288
Depreciation, depletion, amortization and accretion		2,316		112,166		5,241		—		119,723
Operating (loss) income		(75,871)		187,030		23,865		—		135,024
Other income, net		(107,275)		9,938		294		166,632		69,589
Interest expense		27,222		52,970		3,565		—		83,757
(Loss) income from continuing operations before taxes		4,182		124,122		20,006		(166,632)		(18,322)
Income tax (benefit) expense		—		(18,664)		401		—		(18,263)
(Loss) income from operations		4,182		142,786		19,605		(166,632)		(59)
Income from discontinued operations		—		(2,415)		—		—		(2,415)
Net (loss) income		4,182		145,201		19,605		(166,632)		2,356
Net income attributable to noncontrolling interest		—		—		—		(1,826)		(1,826)
Net (loss) income attributable to member of Summit Materials, LLC	$	4,182	$	145,201	$	19,605	$	(164,806)	$	4,182
Comprehensive (loss) income attributable to member of Summit Materials, LLC	$	(8,738)	$	146,380	$	5,506	$	(151,886)	$	(8,738)

Condensed Consolidating Statements of Cash Flows

For the year ended December 30, 2017

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(127,102)	$	392,316	$	29,918	$	—	$	295,132
Cash flow from investing activities:
Acquisitions, net of cash acquired		(24,538)		(324,892)		(25,500)		—		(374,930)
Purchase of property, plant and equipment		(6,196)		(182,295)		(5,655)		—		(194,146)
Proceeds from the sale of property, plant, and equipment		—		16,822		250		—		17,072
Other		—		(471)		—		—		(471)
Net cash used for investing activities		(30,734)		(490,836)		(30,905)		—		(552,475)
Cash flow from financing activities:
Proceeds from investment by member		40,913		252,911		10,717		—		304,541
Capital issuance costs		(627)		—		—		—		(627)
Net proceeds from debt issuance		302,000		—		—		—		302,000
Loans received from and payments made on loans from other Summit Companies		119,858		(108,026)		(10,126)		(1,706)		—
Payments on long-term debt		(8,463)		(7,967)		(8)		—		(16,438)
Purchase of noncontrolling interests		—		(532)		—		—		(532)
Payments on acquisition-related liabilities		—		(32,150)		—		—		(32,150)
Debt issuance costs		(6,416)		—		—		—		(6,416)
Distributions from partnership		(51,986)		—		—		—		(51,986)
Other		(564)		(282)		(20)		—		(866)
Net cash provided by financing activities		394,715		103,954		563		(1,706)		497,526
Impact of cash on foreign currency		—		—		701		—		701
Net increase (decrease) in cash		236,879		5,434		277		(1,706)		240,884
Cash — Beginning of period		133,862		4,820		14,656		(10,666)		142,672
Cash — End of period	$	370,741	$	10,254	$	14,933	$	(12,372)	$	383,556

Condensed Consolidating Statements of Cash Flows

For the year ended December 31, 2016

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(132,328)	$	373,588	$	3,617	$	—	$	244,877
Cash flow from investing activities:
Acquisitions, net of cash acquired		(42,844)		(294,114)		—		—		(336,958)
Purchase of property, plant and equipment		(5,247)		(146,336)		(1,900)		—		(153,483)
Proceeds from the sale of property, plant, and equipment		—		16,606		262		—		16,868
Other		—		2,921		—		—		2,921
Net cash used for investing activities		(48,091)		(420,923)		(1,638)		—		(470,652)
Cash flow from financing activities:
Proceeds from investment by member		(502,140)		529,517		—		—		27,377
Capital issuance costs		(136)		—		—		—		(136)
Net proceeds from debt issuance		354,000		—		—		—		354,000
Loans received from and payments made on loans from other Summit Companies		440,738		(442,072)		400		934		—
Payments on long-term debt		(110,500)		(10,202)		—		—		(120,702)
Payments on acquisition-related liabilities		(400)		(29,140)		—		—		(29,540)
Financing costs		(5,801)		—		—		—		(5,801)
Distributions from partnership		(42,192)		—		—		—		(42,192)
Other		—		(16)		—		—		(16)
Net cash provided by financing activities		133,569		48,087		400		934		182,990
Impact of cash on foreign currency		—		—		69		—		69
Net (decrease) increase in cash		(46,850)		752		2,448		934		(42,716)
Cash — Beginning of period		180,712		4,068		12,208		(11,600)		185,388
Cash — End of period	$	133,862	$	4,820	$	14,656	$	(10,666)	$	142,672

Condensed Consolidating Statements of Cash Flows

For the year ended January 2, 2016

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(276,104)	$	356,187	$	18,287	$	(167)	$	98,203
Cash flow from investing activities:
Acquisitions, net of cash acquired		—		(510,017)		—		—		(510,017)
Purchase of property, plant and equipment		(5,636)		(81,980)		(1,334)		—		(88,950)
Proceeds from the sale of property, plant, and equipment		—		12,945		165		—		13,110
Other		—		1,510		—		—		1,510
Net cash used for investing activities		(5,636)		(577,542)		(1,169)		—		(584,347)
Cash flow from financing activities:
Proceeds from investment by member		(155,060)		662,826		—		—		507,766
Capital issuance costs		(12,930)		—		—		—		(12,930)
Net proceeds from debt issuance		1,748,875		—		—		—		1,748,875
Loans received from and payments made on loans from other Summit Companies		(208,459)		226,703		(12,700)		(5,544)		—
Payments on long-term debt		(859,796)		(646,746)		—		1,056		(1,505,486)
Payments on acquisition-related liabilities		(166)		(17,890)		—		—		(18,056)
Financing costs		(14,246)		—		—		—		(14,246)
Distributions from partnership		(46,603)		—		—		—		(46,603)
Other		—		(167)		—		167		—
Net cash provided by (used for) financing activities		451,615		224,726		(12,700)		(4,321)		659,320
Impact of cash on foreign currency		—		—		(1,003)		—		(1,003)
Net increase (decrease) in cash		169,875		3,371		3,415		(4,488)		172,173
Cash — Beginning of period		10,837		697		8,793		(7,112)		13,215
Cash — End of period	$	180,712	$	4,068	$	12,208	$	(11,600)	$	185,388

XML

Supplementary Data (Unaudited)

12 Months Ended

Dec. 30, 2017

Supplementary Data (Unaudited)

(21) Supplementary Data (Unaudited)

Supplemental financial information (unaudited) by quarter is shown below for the years ended December 30, 2017 and December 31, 2016. The basic and diluted earnings per share amounts for each period shown reflect retroactive application of 1,521,056 and 1,135,962 shares of Class A common stock issued as stock dividends in 2017 and 2016, respectively.

	2017								2016
	4Q		3Q		2Q		1Q		4Q		3Q		2Q		1Q
Net revenue	$	440,610	$	574,387	$	478,368	$	259,044	$	387,389	$	480,210	$	412,636	$	208,039
Operating income (loss)		57,306		113,911		82,444		(32,784)		48,761		88,410		46,948		(29,457)
Net income (loss) (1)		44,510		84,287		52,088		(55,108)		6,049		61,106		21,505		(42,534)
Net income (loss) attributable to Summit Inc. (1)		43,010		81,264		50,000		(52,444)		(290)		44,820		13,371		(21,118)
Basic earnings per share attributable to Summit Inc. (1)	$	0.39	$	0.74	$	0.46	$	(0.49)	$	(0.00)	$	0.59	$	0.21	$	(0.40)
Diluted earnings per share attributable to Summit Inc. (1)		0.38		0.73		0.46		(0.49)		(0.00)		0.59		0.20		(0.40)

(1) The third quarter of 2017 amounts are revised from prior disclosed amounts due to adjustments identified during the fourth quarter of 2017.

Summit Materials, LLC

Supplementary Data (Unaudited)

(21) Supplementary Data (Unaudited)

Supplemental financial information (unaudited) by quarter is as follows for the years ended December 30, 2017 and December 31, 2016:

	2017								2016
	4Q		3Q		2Q		1Q		4Q		3Q		2Q		1Q
Net revenue	$	440,610	$	574,387	$	478,368	$	259,044	$	387,389	$	480,210	$	412,636	$	208,039
Operating income (loss)		57,306		113,911		82,444		(32,784)		48,761		88,410		46,948		(29,457)
Net income (loss)		52,435		82,633		53,827		(54,854)		21,211		61,360		21,759		(42,243)

XML

Summary of Organization and Significant Accounting Policies (Policies)

12 Months Ended

Dec. 30, 2017

Company Information

Principles of Consolidation

Principles of Consolidation—The consolidated financial statements include the accounts of Summit Inc. and its majority owned subsidiaries. All intercompany balances and transactions have been eliminated. As a result of the Reorganization, Summit Holdings became a variable interest entity over which Summit Inc. has 100% voting power and control and for which Summit Inc. has the obligation to absorb losses and the right to receive benefits.

The Company’s fiscal year is based on a 52-53 week year with each quarter composed of 13 weeks ending on a Saturday. The 53-week year occurs approximately once every seven years and occurred in 2015. The additional week in the 53-week year was included in the fourth quarter of 2015.

For a summary of the changes in Summit Inc.’s ownership of Summit Holdings, see Note 11, Stockholders’ Equity.

The Company attributes consolidated stockholders’ equity and net income separately to the controlling and noncontrolling interests. The Company accounts for investments in entities for which it has an ownership of 20% to 50% using the equity method of accounting.    

Use of Estimates

Use of Estimates—Preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities and reported amounts of revenue and expenses. Such estimates include the valuation of accounts receivable, inventories, valuation of deferred tax assets, goodwill, intangibles and other long-lived assets, the tax receivable agreement (“TRA”) liability, pension and other postretirement obligations, and asset retirement obligations. Estimates also include revenue earned on contracts and costs to complete contracts. Most of the Company’s paving and related services are performed under fixed unit-price contracts with state and local governmental entities. Management regularly evaluates its estimates and assumptions based on historical experience and other factors, including the current economic environment. As future events and their effects cannot be determined with precision, actual results can differ significantly from estimates made. Changes in estimates, including those resulting from continuing changes in the economic environment, are reflected in the Company’s consolidated financial statements when the change in estimate occurs.

Business and Credit Concentrations

Business and Credit Concentrations—The Company’s operations are conducted primarily across 23 U.S. states and in British Columbia, Canada, with the most significant revenue generated in Texas, Utah, Kansas and Missouri. The Company’s accounts receivable consist primarily of amounts due from customers within these areas. Therefore, collection of these accounts is dependent on the economic conditions in the aforementioned states, as well as specific situations affecting individual customers. Credit granted within the Company’s trade areas has been granted to many customers and management does not believe that a significant concentration of credit exists with respect to any individual customer or group of customers. No single customer accounted for more than 10% of the Company’s total revenue in 2017, 2016 or 2015.

Accounts Receivable

Accounts Receivable—Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the collectability of individual accounts. In establishing the allowance, management considers historical losses adjusted to take into account current market conditions and its customers’ financial condition, the amount of receivables in dispute, the current receivables aging and current payment terms. Balances that remain outstanding after reasonable collection efforts are exercised are written off through a charge to the valuation allowance.

The balances billed but not paid by customers, pursuant to retainage provisions included in contracts, are generally due upon completion of the contracts.

Revenue Recognition

Revenue Recognition—We earn revenue from the sale of products, which primarily include aggregates, cement, ready-mix concrete and asphalt, but also include concrete products and plastics components, and from the provision of services, which are primarily paving and related services, but also include landfill operations, the receipt and disposal of waste that is converted to fuel for use in our cement plants and underground storage space rental.

Revenue for product sales is recognized when evidence of an arrangement exists, the fee is fixed or determinable, title passes, which is generally when the product is shipped, and collection is reasonably assured. Product revenue generally includes sales of aggregates, cement and other materials to customers, net of discounts or allowances or taxes, if any, and freight and delivery charges billed to customers. Freight and delivery charges associated with cement sales are recorded on a net basis together with freight costs within cost of sales.

Revenue from the receipt of waste fuels is recognized when the waste is accepted and a corresponding liability is recognized for the costs to process the waste into fuel for the manufacturing of cement or to ship the waste offsite for disposal in accordance with applicable regulations.

We account for revenue and earnings on our long-term paving and related services contracts as service revenue using the percentage-of-completion method of accounting. Under the percentage-of-completion method, we recognize paving and related services revenue as services are rendered. We estimate profit as the difference between total estimated revenue and total estimated cost of a contract and recognize that profit over the life of the contract based on input measures. We generally measure progress toward completion on long-term paving and related services contracts based on the proportion of costs incurred to date relative to total estimated costs at completion. We include revisions of estimated profits on contracts in earnings under the cumulative catch-up method, under which the effect of revisions in estimates is recognized immediately. If a revised estimate of contract profitability reveals an anticipated loss on the contract, we recognize the loss in the period it is identified.

The percentage-of-completion method of accounting involves the use of various estimating techniques to project costs at completion, and in some cases includes estimates of recoveries asserted against the customer for changes in specifications or other disputes. Contract estimates involve various assumptions and projections relative to the outcome of future events over multiple periods, including future labor productivity and availability, the nature and complexity of the work to be performed, the cost and availability of materials, the effect of delayed performance, and the availability and timing of funding from the customer. These estimates are based on our best judgment. A significant change in one or more of these estimates could affect the profitability of one or more of our contracts. We review our contract estimates regularly to assess revisions in contract values and estimated costs at completion.

We recognize revenue arising from claims either as income or as an offset against a potential loss only when the amount of the claim can be estimated reliably and its realization is probable. In evaluating these criteria, we consider the contractual basis for the claim, the cause of any additional costs incurred, the reasonableness of those costs and the objective evidence available to support the claim.

Inventories

Inventories—Inventories consist of stone that has been removed from quarries and processed for future sale, cement, raw materials and finished concrete blocks. Inventories are valued at the lower of cost or market and are accounted for on a first-in first-out basis or an average cost basis. If items become obsolete or otherwise unusable or if quantities exceed what is projected to be sold within a reasonable period of time, they will be charged to costs of production in the period that the items are designated as obsolete or excess inventory. Stripping costs are costs of removing overburden and waste material to access aggregate materials and are expensed as incurred.

Property, Plant and Equipment, net

Property, Plant and Equipment, net—Property, plant and equipment are recorded at cost, less accumulated depreciation, depletion and amortization. Expenditures for additions and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Repair and maintenance costs that do not substantially expand productive capacity or extend the life of property, plant and equipment are expensed as incurred.

Landfill airspace is included in property, plant and equipment at cost and is amortized based on the portion of the airspace used during the period compared to the gross estimated value of available airspace, which is updated periodically as circumstances dictate. Management reassesses the landfill airspace capacity with any changes in value recorded in cost of revenue. Capitalized landfill costs include expenditures for the acquisition of land and related airspace, engineering and permitting costs, cell construction costs and direct site improvement costs.

Upon disposal of an asset, the cost and related accumulated depreciation are removed from the Company’s accounts and any gain or loss is included in general and administrative expenses.

The Company reviews the carrying value of property, plant and equipment for impairment whenever events or circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. Such indicators may include, among others, deterioration in general economic conditions, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows or a trend of negative or declining cash flows over multiple periods.

Property, plant and equipment is tested for impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. As a result, the property, plant and equipment impairment test is at a significantly lower level than the level at which goodwill is tested for impairment. In markets where the Company does not produce downstream products, such as ready-mix concrete, asphalt paving mix and paving and related services, the lowest level of largely independent identifiable cash flows is at the individual aggregates operation or a group of aggregates operations collectively serving a local market or the cement operations. Conversely, in vertically-integrated markets, the cash flows of the downstream and upstream businesses are not largely independently identifiable and the vertically-integrated operations are considered the lowest level of largely independent identifiable cash flows.

Accrued Mining and Landfill Reclamation

Accrued Mining and Landfill Reclamation—The mining reclamation reserve and financial commitments for landfill closure and post-closure activities are based on management’s estimate of future cost requirements to reclaim property at both currently operating and closed sites. Estimates of these obligations have been developed based on management’s interpretation of current requirements and proposed regulatory changes and are intended to approximate fair value. Costs are estimated in current dollars, inflated until the expected time of payment, and then discounted back to present value using a credit-adjusted, risk-free rate on obligations of similar maturity, adjusted to reflect the Company’s credit rating. Changes in the credit-adjusted, risk-free rate do not change recorded liabilities. However, subsequent increases in the recognized obligations are measured using a current credit-adjusted, risk-free rate. Decreases in the recognized obligations are measured at the initial credit-adjusted, risk-free rate.

Significant changes in inflation rates or the amount or timing of future cost estimates typically result in both (1) a current adjustment to the recorded liability (and corresponding adjustment to the asset) and (2) a change in accretion of the liability and depreciation of the asset to be recorded prospectively over the remaining capacity of the unmined quarry or landfill.

Goodwill

Goodwill—Goodwill represents the purchase price paid in excess of the fair value of net tangible and intangible assets acquired. Goodwill recorded in connection with the Company’s acquisitions is primarily attributable to the expected profitability, assembled workforces of the acquired businesses and the synergies expected to arise after the Company’s acquisition of those businesses. Goodwill is not amortized, but is tested annually for impairment as of the first day of the fourth quarter and at any time that events or circumstances indicate that goodwill may be impaired. A qualitative approach may first be applied to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If, as a result of the qualitative assessment, it is determined that an impairment is more likely than not, the two-step quantitative impairment test is then performed, otherwise further analysis is not required. The two-step impairment test first identifies potential goodwill impairment for each reporting unit and then, if necessary, measures the amount of the impairment loss.

Income Taxes

Income Taxes—Summit Inc. is a corporation subject to income taxes in the United States. Certain subsidiaries, including Summit Holdings, or subsidiary groups of the Company are taxable separate from Summit Inc. The provisions, or Summit Inc.’s proportional share of the provision, are included in the Company’s consolidated financial statements.

The Company’s deferred income tax assets and liabilities are computed for differences between the tax basis and financial statement amounts that will result in taxable or deductible amounts in the future. The computed deferred balances are based on enacted tax laws and applicable rates for the periods in which the differences are expected to affect taxable income. A valuation allowance is recognized for deferred tax assets if it is more likely than not that some portion or all of the net deferred tax assets will not be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines it would be able to realize its deferred tax assets for which a valuation allowance had been recorded then an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

The Company evaluates the tax positions taken on income tax returns that remain open and positions expected to be taken on the current year tax returns to identify uncertain tax positions. Unrecognized tax benefits on uncertain tax positions are recorded on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is more than 50 percent likely to be realized is recognized. Interest and penalties related to unrecognized tax benefits are recorded in income tax benefit.

Tax Receivable Agreement

Tax Receivable Agreement— When Summit Inc. purchases LP Units for cash or LP Units are exchanged for shares of Class A common stock, this results in increases in Summit Inc.’s share of the tax basis of the tangible and intangible assets, which increases the tax depreciation and amortization deductions that otherwise would not have been available to Summit Inc.  These increases in tax basis and tax depreciation and amortization deductions are expected to reduce the amount of cash taxes that we would otherwise be required to pay in the future. Prior to our IPO, we entered into a TRA with the pre-IPO owners that require us to pay the pre-IPO owners 85% of the amount of cash savings, if any, in U.S. federal, state, and local income tax that we actually realize as a result of these exchanges.  These benefits include (1) increases in the tax basis of tangible and intangible assets of Summit Holdings and certain other tax benefits related to entering into the TRA, (2) tax benefits attributable to payments under the TRA, or (3) under certain circumstances such as an early termination of the TRA, we are deemed to realize, as a result of the increases in tax basis in connection with exchanges by the pre-IPO owners described above and certain other tax benefits attributable to payments under the TRA.

As noted above, we periodically evaluate the realizability of the deferred tax assets resulting from the exchange of LP Units for Class A common stock. If the deferred tax assets are determined to be realizable, we then assess whether payment of amounts under the TRA have become probable. If so, we record a TRA liability equal to 85% of such deferred tax assets. In subsequent periods, we assess the realizability of all of our deferred tax assets subject to the TRA. Should we determine a deferred tax asset with a valuation allowance is realizable in a subsequent period, the related valuation allowance will be released and consideration of a corresponding TRA liability will be assessed. The realizability of deferred tax assets, including those subject to the TRA, is dependent upon the generation of future taxable income during the periods in which those deferred tax assets become deductible and consideration of prudent and feasible tax-planning strategies.

The measurement of the TRA is accounted for as a contingent liability. Therefore, once we determine that a payment to a pre-IPO owner has become probable and can be estimated, the estimate of payment will be accrued.

Earnings per Share

Earnings per Share—The Company computes basic earnings per share attributable to stockholders by dividing income attributable to Summit Inc. by the weighted-average shares of Class A common stock outstanding. Diluted earnings per share reflects the potential dilution beyond shares for basic earnings per share that could occur if securities or other contracts to issue common stock were exercised, converted into common stock, or resulted in the issuance of common stock that would have shared in the Company’s earnings. Since the Class B common stock has no economic value, those shares are not included in the weighted-average common share amount for basic or diluted earnings per share. In addition, as the shares of Class A common stock are issued by Summit Inc., the earnings and equity interests of noncontrolling interests are not included in basic earnings per share.

New Accounting Standards

New Accounting Standards — In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which prescribes a five-step model for revenue recognition that will replace most existing revenue recognition guidance in U.S. GAAP. The ASU will supersede nearly all existing revenue recognition guidance under U.S. GAAP and provides that an entity recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB postponed the effective date of the new revenue standard by one year to the first quarter of 2018. In applying these ASUs, an entity is permitted to use either the full retrospective or cumulative effect transition approach. We plan to adopt these ASU’s using the modified retrospective approach. We have evaluated the impact of adoption of these standards on our consolidated financial statements, which was not material.

In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business, which narrows the definition of a business. This ASU provides a screen to determine whether a group of assets constitutes a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated as acquisitions. If the screen is not met, this ASU (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output and (2) removes the evaluation of whether a market participant could replace missing elements. Although outputs are not required for a set to be a business, outputs generally are a key element of a business; therefore, the FASB has developed more stringent criteria for sets without outputs. The ASU is effective for public companies for annual periods beginning after December 15, 2017. The adoption of this ASU will not have a material impact on the consolidated financial statements.

In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires that the service cost component be reported in the same line item as employer compensation costs and that the other components of periodic pension costs be reported outside of operating income. The ASU also restricts capitalization of costs to the service cost component. The ASU is effective for public companies for annual periods beginning after December 15, 2017. The Company early adopted this ASU as of the beginning of fiscal year 2017 on a retrospective basis; accordingly, the Company reclassified $278,000 and $383,000 from product cost of revenue to other income for the year ended December 31, 2016 and January 2, 2016, respectively, and $350,000 from general and administrative expenses to other income for the year ended December 31, 2016, to conform to the current year presentation.

In January 2017, the FASB issued a new ASU No. 2017-04 Intangibles - Goodwill and Other (Topic 350), which simplifies the test for goodwill impairment. The ASU eliminates the two step goodwill impairment test and replaces it with a single step test. The single step test compares the carrying amount of a reporting unit to its fair value; if the carrying amount is greater than the fair value the difference is the amount of the goodwill impairment.  Step zero is left unchanged. Therefore, entities that wish do a qualitative assessment are still permitted to do so. The ASU is effective for Securities and Exchange Commission (“SEC”) filers for fiscal years beginning after December 15, 2020. The Company early adopted this ASU as of the beginning of fiscal year 2017 which adoption did not have a material impact on our consolidated financial statements.

In March 2016, the FASB issued a new accounting standard with targeted amendments to the accounting for employee share-based payments. ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, requires that the income tax effect of share-based awards be recognized in the income statement and allows entities to elect an accounting method to recognize forfeitures as they occur or to estimate forfeitures, as is currently required. The ASU is effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. However, the Company early adopted this ASU as of the beginning of fiscal year 2016 and made an election to recognize forfeitures as they occur. The ASU adoption was applied using a modified retrospective method by means of a $1.7 million cumulative-effect adjustment to accumulated earnings as of the beginning of the fiscal year.

Summit Materials, LLC

Company Information

Principles of Consolidation

Principles of Consolidation–The consolidated financial statements include the accounts of Summit LLC and its majority owned subsidiaries. All intercompany balances and transactions have been eliminated. The Company attributes consolidated member’s interest and net income separately to the controlling and noncontrolling interests. Noncontrolling interests in consolidated subsidiaries represent a 20% ownership in Ohio Valley Asphalt, LLC and, prior to the initial public offering (“IPO”) and concurrent purchase of the noncontrolling interests Continental Cement Company, L.L.C. (“Continental Cement”), a 30% redeemable ownership in Continental Cement. The Company accounts for investments in entities for which it has an ownership of 20% to 50% using the equity method of accounting. In the fourth quarter of 2017, we purchased the remaining noncontrolling interest in Ohio Valley Asphalt, LLC.

The Company’s fiscal year is based on a 52-53 week year with each quarter composed of 13 weeks ending on a Saturday. The 53-week year occurs approximately once every seven years and occurred in 2015. The additional week in the 53-week year was included in the fourth quarter of 2015.

Use of Estimates

Use of Estimates— Preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities and reported amounts of revenue and expenses. Such estimates include the valuation of accounts receivable, inventories, valuation of deferred tax assets, goodwill, intangibles and other long-lived assets, pension and other postretirement obligations and asset retirement obligations. Estimates also include revenue earned on contracts and costs to complete contracts. Most of the Company’s paving and related services are performed under fixed unit-price contracts with state and local governmental entities. Management regularly evaluates its estimates and assumptions based on historical experience and other factors, including the current economic environment. As future events and their effects cannot be determined with precision, actual results can differ significantly from estimates made. Changes in estimates, including those resulting from continuing changes in the economic environment, are reflected in the Company’s consolidated financial statements when the change in estimate occurs.

Business and Credit Concentrations

Business and Credit Concentrations—The Company’s operations are conducted primarily across 23 U.S. states and in British Columbia, Canada, with the most significant revenue generated in Texas, Utah, Kansas and Missouri. The Company’s accounts receivable consist primarily of amounts due from customers within these areas. Therefore, collection of these accounts is dependent on the economic conditions in the aforementioned states, as well as specific situations affecting individual customers. Credit granted within the Company’s trade areas has been granted to many customers and management does not believe that a significant concentration of credit exists with respect to any individual customer or group of customers. No single customer accounted for more than 10% of the Company’s total revenue in 2017, 2016 or 2015.

Accounts Receivable

Accounts Receivable—Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the collectability of individual accounts. In establishing the allowance, management considers historical losses adjusted to take into account current market conditions and its customers’ financial condition, the amount of receivables in dispute, the current receivables aging and current payment terms. Balances that remain outstanding after reasonable collection efforts are exercised are written off through a charge to the valuation allowance.

The balances billed but not paid by customers, pursuant to retainage provisions included in contracts, are generally due upon completion of the contracts.

Revenue Recognition

Revenue Recognition—We earn revenue from the sale of products, which primarily include aggregates, cement, ready-mix concrete and asphalt, but also include concrete products and plastics components, and from the provision of services, which are primarily paving and related services, but also include landfill operations, the receipt and disposal of waste that is converted to fuel for use in our cement plants and underground storage space rental.

Revenue for product sales is recognized when evidence of an arrangement exists, the fee is fixed or determinable, title passes, which is generally when the product is shipped, and collection is reasonably assured. Product revenue generally includes sales of aggregates, cement and other materials to customers, net of discounts or allowances or taxes, if any, and freight and delivery charges billed to customers. Freight and delivery charges associated with cement sales are recorded on a net basis together with freight costs within cost of sales.

Revenue from the receipt of waste fuels is recognized when the waste is accepted and a corresponding liability is recognized for the costs to process the waste into fuel for the manufacturing of cement or to ship the waste offsite for disposal in accordance with applicable regulations.

We account for revenue and earnings on our long-term paving and related services contracts as service revenue using the percentage-of-completion method of accounting. Under the percentage-of-completion method, we recognize paving and related services revenue as services are rendered. We estimate profit as the difference between total estimated revenue and total estimated cost of a contract and recognize that profit over the life of the contract based on input measures. We generally measure progress toward completion on long-term paving and related services contracts based on the proportion of costs incurred to date relative to total estimated costs at completion. We include revisions of estimated profits on contracts in earnings under the cumulative catch-up method, under which the effect of revisions in estimates is recognized immediately. If a revised estimate of contract profitability reveals an anticipated loss on the contract, we recognize the loss in the period it is identified.

The percentage-of-completion method of accounting involves the use of various estimating techniques to project costs at completion, and in some cases includes estimates of recoveries asserted against the customer for changes in specifications or other disputes. Contract estimates involve various assumptions and projections relative to the outcome of future events over multiple periods, including future labor productivity and availability, the nature and complexity of the work to be performed, the cost and availability of materials, the effect of delayed performance, and the availability and timing of funding from the customer. These estimates are based on our best judgment. A significant change in one or more of these estimates could affect the profitability of one or more of our contracts. We review our contract estimates regularly to assess revisions in contract values and estimated costs at completion.

We recognize revenue arising from claims either as income or as an offset against a potential loss only when the amount of the claim can be estimated reliably and its realization is probable. In evaluating these criteria, we consider the contractual basis for the claim, the cause of any additional costs incurred, the reasonableness of those costs and the objective evidence available to support the claim.

Inventories

Inventories—Inventories consist of stone that has been removed from quarries and processed for future sale, cement, raw materials and finished concrete blocks. Inventories are valued at the lower of cost or market and are accounted for on a first-in first-out basis or an average cost basis. If items become obsolete or otherwise unusable or if quantities exceed what is projected to be sold within a reasonable period of time, they will be charged to costs of production in the period that the items are designated as obsolete or excess inventory. Stripping costs are costs of removing overburden and waste material to access aggregate materials and are expensed as incurred.

Property, Plant and Equipment, net

Property, Plant and Equipment, net—Property, plant and equipment are recorded at cost, less accumulated depreciation, depletion and amortization. Expenditures for additions and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Repair and maintenance costs that do not substantially expand productive capacity or extend the life of property, plant and equipment are expensed as incurred.

Landfill airspace is included in property, plant and equipment at cost and is amortized based on the portion of the airspace used during the period compared to the gross estimated value of available airspace, which is updated periodically as circumstances dictate. Management reassesses the landfill airspace capacity with any changes in value recorded in cost of revenue. Capitalized landfill costs include expenditures for the acquisition of land and related airspace, engineering and permitting costs, cell construction costs and direct site improvement costs.

Upon disposal of an asset, the cost and related accumulated depreciation are removed from the Company’s accounts and any gain or loss is included in general and administrative expenses.

The Company reviews the carrying value of property, plant and equipment for impairment whenever events or circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. Such indicators may include, among others, deterioration in general economic conditions, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows or a trend of negative or declining cash flows over multiple periods.

Property, plant and equipment is tested for impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. As a result, the property, plant and equipment impairment test is at a significantly lower level than the level at which goodwill is tested for impairment. In markets where the Company does not produce downstream products, such as ready-mix concrete, asphalt paving mix and paving and related services, the lowest level of largely independent identifiable cash flows is at the individual aggregates operation or a group of aggregates operations collectively serving a local market or the cement operations. Conversely, in vertically-integrated markets, the cash flows of the downstream and upstream businesses are not largely independently identifiable and the vertically-integrated operations are considered the lowest level of largely independent identifiable cash flows.

Accrued Mining and Landfill Reclamation

Accrued Mining and Landfill Reclamation—The mining reclamation reserve and financial commitments for landfill closure and post-closure activities are based on management’s estimate of future cost requirements to reclaim property at both currently operating and closed sites. Estimates of these obligations have been developed based on management’s interpretation of current requirements and proposed regulatory changes and are intended to approximate fair value. Costs are estimated in current dollars, inflated until the expected time of payment, and then discounted back to present value using a credit-adjusted, risk-free rate on obligations of similar maturity, adjusted to reflect the Company’s credit rating. Changes in the credit-adjusted, risk-free rate do not change recorded liabilities. However, subsequent increases in the recognized obligations are measured using a current credit-adjusted, risk-free rate. Decreases in the recognized obligations are measured at the initial credit-adjusted, risk-free rate.

Significant changes in inflation rates or the amount or timing of future cost estimates typically result in both (1) a current adjustment to the recorded liability (and corresponding adjustment to the asset) and (2) a change in accretion of the liability and depreciation of the asset to be recorded prospectively over the remaining capacity of the unmined quarry or landfill.

Goodwill

Goodwill—Goodwill represents the purchase price paid in excess of the fair value of net tangible and intangible assets acquired. Goodwill recorded in connection with the Company’s acquisitions is primarily attributable to the expected profitability, assembled workforces of the acquired businesses and the synergies expected to arise after the Company’s acquisition of those businesses. Goodwill is not amortized, but is tested annually for impairment as of the first day of the fourth quarter and at any time that events or circumstances indicate that goodwill may be impaired. A qualitative approach may first be applied to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If, as a result of the qualitative assessment, it is determined that an impairment is more likely than not, the two-step quantitative impairment test is then performed, otherwise further analysis is not required. The two-step impairment test first identifies potential goodwill impairment for each reporting unit and then, if necessary, measures the amount of the impairment loss.

Income Taxes

Income Taxes—As a limited liability company, the Company’s federal and state income tax attributes are generally passed to its member. However, certain subsidiaries, or subsidiary groups, of the Company are taxable entities subject to income taxes in the United States and Canada, the provisions for which are included in the consolidated financial statements. Significant judgments and estimates are required in the determination of the consolidated income tax expense.

The Company’s deferred income tax assets and liabilities are computed for differences between the tax basis and financial statement amounts that will result in taxable or deductible amounts in the future. The computed deferred balances are based on enacted tax laws and applicable rates for the periods in which the differences are expected to affect taxable income. A valuation allowance is recognized for deferred tax assets if it is more likely than not that some portion or all of the net deferred tax assets will not be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines it would be able to realize its deferred tax assets for which a valuation allowance had been recorded then an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

The Company evaluates the tax positions taken on income tax returns that remain open and positions expected to be taken on the current year tax returns to identify uncertain tax positions. Unrecognized tax benefits on uncertain tax positions are recorded on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is more than 50 percent likely to be realized is recognized. Interest and penalties related to unrecognized tax benefits are recorded in income tax benefit.

New Accounting Standards

New Accounting Standards — In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which prescribes a five-step model for revenue recognition that will replace most existing revenue recognition guidance in U.S. GAAP. The ASU will supersede nearly all existing revenue recognition guidance under U.S. GAAP and provides that an entity recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. In July 2015, the FASB postponed the effective date of the new revenue standard by one year to the first quarter of 2018. In applying these ASUs, an entity is permitted to use either the full retrospective or cumulative effect transition approach. We plan to adopt these ASU’s using the modified retrospective approach. We have evaluated the impact of adoption of these standards on our consolidated financial statements, which was not material.

In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business, which narrows the definition of a business. This ASU provides a screen to determine whether a group of assets constitutes a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This screen reduces the number of transactions that need to be further evaluated as acquisitions. If the screen is not met, this ASU (1) requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create an output and (2) removes the evaluation of whether a market participant could replace missing elements. Although outputs are not required for a set to be a business, outputs generally are a key element of a business; therefore, the FASB has developed more stringent criteria for sets without outputs. The ASU is effective for public companies for annual periods beginning after December 15, 2017. The adoption of this ASU will not have a material impact on the consolidated financial statements.

In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which requires that the service cost component be reported in the same line item as employer compensation costs and that the other components of periodic pension costs be reported outside of operating income. The ASU also restricts capitalization of costs to the service cost component. The ASU is effective for public companies for annual periods beginning after December 15, 2017. The Company early adopted this ASU as of the beginning of fiscal year 2017 on a retrospective basis; accordingly, the Company reclassified $278,000 and $383,000 from product cost of revenue to other income for the year ended December 31, 2016 and January 2, 2016, respectively, and $350,000 from general and administrative expenses to other income for the year ended December 31, 2016, to conform to the current year presentation.

In January 2017, the FASB issued ASU No. 2017-04 Intangibles - Goodwill and Other (Topic 350), which simplifies the test for goodwill impairment. The ASU eliminates the two step goodwill impairment test and replaces it with a single step test.  The single step test compares the carrying amount of a reporting unit to its fair value; if the carrying amount is greater than the fair value the difference is the amount of the goodwill impairment. Step zero is left unchanged. Therefore, entities that wish do a qualitative assessment are still permitted to do so. The ASU is effective for Securities and Exchange Commission (“SEC”) filers for fiscal years beginning after December 15, 2020. The Company early adopted this ASU as of the beginning of fiscal year 2017, which adoption did not have a material impact on our consolidated financial statements.

In March 2016, the FASB issued a new accounting standard with targeted amendments to the accounting for employee share-based payments. ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, requires that the income tax effect of share-based awards be recognized in the income statement and allows entities to elect an accounting method to recognize forfeitures as they occur or to estimate forfeitures, as is currently required. The ASU is effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. However, the Company early adopted this ASU as of the beginning of fiscal year 2016 and made an election to recognize forfeitures as they occur. The ASU adoption was applied using a modified retrospective method by means of a $1.7 million cumulative-effect adjustment to accumulated earnings as of the beginning of the fiscal year.

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Acquisitions (Tables)

12 Months Ended

Dec. 30, 2017

Summary of Acquisitions by Region

	2017		2016		2015
West		6		3		3
East		8		5		—
Cement		—		1		1

Summary of Assets Acquired and Liabilities Assumed

	2017		2016
Financial assets (1)	$	31,615	$	22,204
Inventories		8,300		17,215
Property, plant and equipment		160,975		180,321
Intangible assets		161		5,531
Other assets		4,200		6,757
Financial liabilities (1)		(15,501)		(20,248)
Other long-term liabilities		(17,610)		(36,074)
Net assets acquired		172,140		175,706
Goodwill		247,536		176,319
Purchase price		419,676		352,025
Acquisition-related liabilities		(43,452)		(17,034)
Other		(1,294)		1,967
Net cash paid for acquisitions	$	374,930	$	336,958

(1) In the first quarter of 2017, we reclassified $1.2 million of accounts payable overdrafts from financial assets to financial liabilities for the year ended December 31, 2016.

Schedule of remaining payments under noncompete and deferred consideration agreements

2018	$	13,760
2019		9,187
2020		7,973
2021		7,958
2022		1,803
Thereafter		6,763
Total scheduled payments		47,444
Present value adjustments		(10,117)
Total noncompete obligations and deferred consideration	$	37,327

Summit Materials, LLC

Summary of Acquisitions by Region

	2017		2016		2015
West		6		3		3
East		8		5		—
Cement		—		1		1

Summary of Assets Acquired and Liabilities Assumed

	2017		2016
Financial assets (1)	$	31,615	$	22,204
Inventories		8,300		17,215
Property, plant and equipment		160,975		180,321
Intangible assets		161		5,531
Other assets		4,200		6,757
Financial liabilities (1)		(15,501)		(20,248)
Other long-term liabilities		(17,610)		(36,074)
Net assets acquired		172,140		175,706
Goodwill		247,536		176,319
Purchase price		419,676		352,025
Acquisition-related liabilities		(43,452)		(17,034)
Other		(1,294)		1,967
Net cash paid for acquisitions	$	374,930	$	336,958

(1) In the first quarter of 2017, we reclassified $1.2 million of accounts payable overdrafts from financial assets to financial liabilities for the year ended December 31, 2016.

Schedule of remaining payments under noncompete and deferred consideration agreements

2018		11,260
2019		6,687
2020		5,473
2021		5,458
2022		1,803
Thereafter		6,763
Total scheduled payments		37,444
Present value adjustments		(8,513)
Total noncompete obligations and deferred consideration	$	28,931

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Goodwill (Tables)

12 Months Ended

Dec. 30, 2017

Goodwill by Reportable Segment and in Total

	West		East		Cement		Total
Balance, January 2, 2016	$	303,926	$	98,308	$	194,163	$	596,397
Acquisitions		29,006		145,109		10,375		184,490
Foreign currency translation adjustments		1,325		—		—		1,325
Balance, December 31, 2016	$	334,257	$	243,417	$	204,538	$	782,212
Acquisitions (1)		187,883		61,957		118		249,958
Foreign currency translation adjustments		4,150		—		—		4,150
Balance, December 30, 2017	$	526,290	$	305,374	$	204,656	$	1,036,320

Reflects goodwill from 2017 acquisitions and working capital adjustments from prior year acquisitions.

Summit Materials, LLC

Goodwill by Reportable Segment and in Total

	West		East		Cement		Total
Balance, January 2, 2016	$	303,926	$	98,308	$	194,163	$	596,397
Acquisitions		29,006		145,109		10,375		184,490
Foreign currency translation adjustments		1,325		—		—		1,325
Balance, December 31, 2016	$	334,257	$	243,417	$	204,538	$	782,212
Acquisitions (1)		188,883		61,957		118		250,958
Foreign currency translation adjustments		4,150		—		—		4,150
Balance, December 30, 2017	$	527,290	$	305,374	$	204,656	$	1,037,320

(1) Reflects goodwill from 2017 acquisitions and working capital adjustments from prior year acquisitions.

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Revenue Recognition (Tables)

12 Months Ended

Dec. 30, 2017

Summary of Accounts Receivable, Net

	2017		2016
Trade accounts receivable	$	187,528	$	152,845
Retention receivables		14,973		12,117
Receivables from related parties		468		721
Accounts receivable		202,969		165,683
Less: Allowance for doubtful accounts		(4,639)		(3,306)
Accounts receivable, net	$	198,330	$	162,377

Summit Materials, LLC

Summary of Accounts Receivable, Net

	2017		2016
Trade accounts receivable	$	187,528	$	152,845
Retention receivables		14,973		12,117
Receivables from related parties		468		721
Accounts receivable		202,969		165,683
Less: Allowance for doubtful accounts		(4,639)		(3,306)
Accounts receivable, net	$	198,330	$	162,377

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Inventories (Tables)

12 Months Ended

Dec. 30, 2017

Components of Inventories

	2017		2016
Aggregate stockpiles	$	126,791	$	103,073
Finished goods		34,667		35,071
Work in process		7,729		6,440
Raw materials		15,252		13,095
Total	$	184,439	$	157,679

Summit Materials, LLC

Components of Inventories

	2017		2016
Aggregate stockpiles	$	126,791	$	103,073
Finished goods		34,667		35,071
Work in process		7,729		6,440
Raw materials		15,252		13,095
Total	$	184,439	$	157,679

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Property, Plant and Equipment, net and Intangibles, net (Tables)

12 Months Ended

Dec. 30, 2017

Components of Property, Plant and Equipment

	2017		2016
Land (mineral bearing) and asset retirement costs	$	274,083	$	227,558
Land (non-mineral bearing)		168,501		146,099
Buildings and improvements		170,615		160,638
Plants, machinery and equipment		1,068,007		965,522
Mobile equipment and barges		391,256		307,885
Truck and auto fleet		47,270		32,236
Landfill airspace and improvements		49,480		48,513
Office equipment		33,314		26,096
Construction in progress		44,739		16,459
Property, plant and equipment		2,247,265		1,931,006
Less accumulated depreciation, depletion and amortization		(631,841)		(484,554)
Property, plant and equipment, net	$	1,615,424	$	1,446,452

Estimated Useful Lives of Assets

Buildings and improvements	10 - 30	years
Plant, machinery and equipment	15 - 20	years
Office equipment	3 - 7	years
Truck and auto fleet	5 - 8	years
Mobile equipment and barges	6 - 8	years
Landfill airspace and improvements	10 - 30	years
Other	4 - 20	years

Intangible Assets by Type and in Total

	December 30, 2017						December 31, 2016
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Leases	$	15,888	$	(4,178)	$	11,710	$	15,888	$	(3,382)	$	12,506
Reserve rights		6,234		(1,625)		4,609		8,706		(3,710)		4,996
Trade names		1,000		(758)		242		1,000		(658)		342
Other		409		(137)		272		249		(104)		145
Total intangible assets	$	23,531	$	(6,698)	$	16,833	$	25,843	$	(7,854)	$	17,989

Estimated Amortization Expense for Intangible Assets

2018	$	1,281
2019		1,268
2020		1,185
2021		1,142
2022		1,113
Thereafter		10,844
Total	$	16,833

Summit Materials, LLC

Components of Property, Plant and Equipment

	2017		2016
Land (mineral bearing) and asset retirement costs	$	274,083	$	227,558
Land (non-mineral bearing)		168,501		146,099
Buildings and improvements		170,615		160,638
Plants, machinery and equipment		1,068,007		965,522
Mobile equipment and barges		391,256		307,885
Truck and auto fleet		47,270		32,236
Landfill airspace and improvements		49,480		48,513
Office equipment		33,314		26,096
Construction in progress		44,739		16,459
Property, plant and equipment		2,247,265		1,931,006
Less accumulated depreciation, depletion and amortization		(631,841)		(484,554)
Property, plant and equipment, net	$	1,615,424	$	1,446,452

Estimated Useful Lives of Assets

Buildings and improvements	10 - 30	years
Plant, machinery and equipment	15 - 20	years
Office equipment	3 - 7	years
Truck and auto fleet	5 - 8	years
Mobile equipment and barges	6 - 8	years
Landfill airspace and improvements	10 - 30	years
Other	4 - 20	years

Intangible Assets by Type and in Total

	December 30, 2017						December 31, 2016
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Leases	$	15,888	$	(4,178)	$	11,710	$	15,888	$	(3,382)	$	12,506
Reserve rights		6,234		(1,625)		4,609		8,706		(3,710)		4,996
Trade names		1,000		(758)		242		1,000		(658)		342
Other		409		(137)		272		249		(104)		145
Total intangible assets	$	23,531	$	(6,698)	$	16,833	$	25,843	$	(7,854)	$	17,989

Estimated Amortization Expense for Intangible Assets

2018	$	1,281
2019		1,268
2020		1,185
2021		1,142
2022		1,113
Thereafter		10,844
Total	$	16,833

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Accrued Expenses (Tables)

12 Months Ended

Dec. 30, 2017

Components of Accrued Expenses

	2017		2016
Interest	$	24,095	$	22,991
Payroll and benefits		33,915		30,546
Capital lease obligations		19,276		11,766
Insurance		11,455		11,966
Non-income taxes		7,236		5,491
Professional fees		1,717		2,459
Other (1)		18,935		26,386
Total	$	116,629	$	111,605

Consists primarily of subcontractor and working capital settlement accruals and deferred revenue.

Summit Materials, LLC

Components of Accrued Expenses

	2017		2016
Interest	$	24,095	$	22,991
Payroll and benefits		33,915		30,546
Capital lease obligations		19,276		11,766
Insurance		11,455		11,966
Non-income taxes		7,467		5,491
Professional fees		1,717		2,459
Other (1)		18,349		25,254
Total	$	116,274	$	110,473

(1) Consists primarily of subcontractor and working capital settlement accruals and deferred revenue.

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Debt (Tables)

12 Months Ended

Dec. 30, 2017

Schedule of Debt

	2017		2016
Term Loan, due 2024:
$635.4 million and $640.3 million, net of $1.6 million and $2.6 million discount at December 30, 2017 and December 31, 2016, respectively	$	633,805	$	637,658
81⁄2% Senior Notes, due 2022		250,000		250,000
61⁄8% Senior Notes, due 2023:
$650.0 million, net of $1.4 million and $1.6 million discount at December 30, 2017 and December 31, 2016, respectively		648,650		648,407
51⁄8% Senior Notes, due 2025		300,000		—
Total		1,832,455		1,536,065
Current portion of long-term debt		4,765		6,500
Long-term debt	$	1,827,690	$	1,529,565

Schedule of Contractual Payments of Long-Term Debt

2018	$	4,765
2019		6,354
2020		7,942
2021		6,354
2022		256,354
Thereafter		1,553,606
Total		1,835,375
Less: Original issue net discount		(2,920)
Less: Capitalized loan costs		(16,857)
Total debt	$	1,815,598

Summary of Activity for Deferred Financing Fees

	Deferred financing fees
Balance—January 2, 2016	$	15,892
Loan origination fees		5,801
Amortization		(3,403)
Balance—December 31, 2016	$	18,290
Loan origination fees		6,416
Amortization		(3,990)
Write off of deferred financing fees		(1,683)
Balance—December 30, 2017	$	19,033

Summit Materials, LLC

Schedule of Debt

	2017		2016
Term Loan, due 2024:
$635.4 million and $640.3 million, net of $1.6 million and $2.6 million discount at December 30, 2017 and December 31, 2016, respectively	$	633,805	$	637,658
81⁄2% Senior Notes, due 2022		250,000		250,000
61⁄8% Senior Notes, due 2023:
$650.0 million, net of $1.4 million and $1.6 million discount at December 30, 2017 and December 31, 2016, respectively		648,650		648,407
51⁄8% Senior Notes, due 2025		300,000		—
Total		1,832,455		1,536,065
Current portion of long-term debt		4,765		6,500
Long-term debt	$	1,827,690	$	1,529,565

Schedule of Contractual Payments of Long-Term Debt

2018		4,765
2019		6,354
2020		7,942
2021		6,354
2022		256,354
Thereafter		1,553,606
Total		1,835,375
Less: Original issue net discount		(2,920)
Less: Capitalized loan costs		(16,857)
Total debt	$	1,815,598

Summary of Activity for Deferred Financing Fees

	Deferred financing fees
Balance—January 2, 2016	$	15,892
Loan origination fees		5,801
Amortization		(3,403)
Balance—December 31, 2016	$	18,290
Loan origination fees		6,416
Amortization		(3,990)
Write off of deferred financing fees		(1,683)
Balance—December 30, 2017	$	19,033

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Income Taxes (Tables)

12 Months Ended

Dec. 30, 2017

Components of Income Tax Benefit

	2017			2016		2015
Provision for income taxes:
Current	$	2,530	$	2,835	$	1,605
Deferred		(286,507)		(8,134)		(19,868)
Income tax benefit	$	(283,977)	$	(5,299)	$	(18,263)

Schedule of Reconciliation of Income Tax (Benefit) Expense

The effective tax rate on pre-tax income differs from the U.S. statutory rate of 35% due to the following:

	2017		2016		2015
Income tax expense (benefit) at federal statutory tax rate	$	(55,365)	$	14,290	$	(6,718)
Less: Income tax benefit at federal statutory tax rate for LLC entities		(2,123)		(10,608)		(22,649)
State and local income taxes		(5,209)		2,490		(2,389)
Permanent differences		(4,410)		(5,902)		2,147
Effective tax rate change		216,904		(1,432)		10
Tax receivable agreement expense		104,804		5,228		—
Change in valuation allowance		(500,162)		239,008		261,302
Impact of LP Unit ownership change		(31,790)		(252,456)		(249,400)
Other		(6,626)		4,083		(566)
Income tax benefit	$	(283,977)	$	(5,299)	$	(18,263)

Components of Net Deferred Income Tax Liability

	2017		2016
Deferred tax (liabilities) assets:
Net intangible assets	$	316,950	$	591,464
Accelerated depreciation		(147,943)		(184,794)
Net operating loss		94,751		71,379
Investment in limited partnership		(14,467)		(13,633)
Mining reclamation reserve		1,239		1,220
Working capital (e.g., accrued compensation, prepaid assets)		35,237		41,529
Less valuation allowance		(1,675)		(502,839)
Deferred tax assets		284,092		4,326
Less foreign deferred tax liability (included in other noncurrent liabilities)		(3,992)		—
Net deferred tax asset	$	280,100	$	4,326

Summary of Valuation Allowance

	2017		2016
Valuation Allowance:
Beginning balance	$	(502,839)	$	(263,825)
Additional basis from exchanged LP Units		(31,790)		(252,456)
Change in valuation allowance		531,952		13,448
Other		1,002		(6)
Ending balance	$	(1,675)	$	(502,839)

Summit Materials, LLC

Components of Income Tax Benefit

	2017		2016		2015
Provision for income taxes:
Current	$	2,762	$	2,835	$	1,605
Deferred		(23,107)		(8,134)		(19,868)
Income tax benefit	$	(20,345)	$	(5,299)	$	(18,263)

Schedule of Reconciliation of Income Tax (Benefit) Expense

	2017		2016		2015
Income tax expense (benefit) at federal statutory tax rate	$	39,797	$	19,882	$	(6,412)
Less: Income tax benefit at federal statutory tax rate for LLC entities		(36,171)		(21,042)		(9,908)
State and local income taxes		1,751		1,279		(2,389)
Permanent differences		(630)		(1,726)		2,147
Effective tax rate change		(24,243)		(1,432)		10
Valuation allowance		—		148		—
Other		(849)		(2,408)		(1,711)
Income tax benefit	$	(20,345)	$	(5,299)	$	(18,263)

Components of Net Deferred Income Tax Liability

	2017		2016
Deferred tax (liabilities) assets:
Accelerated depreciation	$	(47,920)	$	(58,094)
Net operating loss		20,671		24,884
Investment in limited partnership		(10,800)		(12,899)
Net intangible assets		(1,256)		(999)
Mining reclamation reserve		488		582
Working capital (e.g., accrued compensation, prepaid assets)		1,267		1,386
Net deferred tax liabilities		(37,550)		(45,140)
Less valuation allowance		(1,675)		(2,677)
Net deferred tax liability	$	(39,225)	$	(47,817)

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Net Earnings Per Share (Tables)

12 Months Ended

Dec. 30, 2017

Net Earnings Per Share

Schedule of Basic Earnings Per Share

	2017		2016		2015
Net income attributable to Summit Inc.	$	121,830	$	36,783	$	27,718
Weighted average shares of Class A stock outstanding		108,696,438		70,355,042		40,888,437
Basic income per share	$	1.12	$	0.52	$	0.68
Net income attributable to Summit Inc.	$	121,830	$	36,783	$	27,718
Add: Noncontrolling interest impact of LP Unit conversion		—		—		17,803
Diluted net income attributable to Summit Inc.		121,830		36,783		45,521
Weighted average shares of Class A stock outstanding		108,696,438		70,355,042		40,888,437
Add: weighted average of LP Units		—		—		50,059,648
Add: stock options		308,355		140,142		—
Add: warrants		42,035		16,123		37,714
Add: restricted stock units		308,221		240,633		7,523
Add: performance stock units		135,849		86,568
Weighted average dilutive shares outstanding		109,490,898		70,838,508		90,993,322
Diluted earnings per share	$	1.11	$	0.52	$	0.50

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

	2017		2016		2015
Antidilutive shares:
LP Units		4,371,705		32,327,907		—
Time-vesting stock options		—		—		2,265,584
Warrants		—		—		—
Time-vesting restricted stock units		—		—		—
Market-based restricted stock units		—		—

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Stockholders' Equity (Tables)

12 Months Ended

Dec. 30, 2017

Company Information

Schedule of changes in ownership of Summit Holdings

	Summit Inc. Shares (Class A)	LP Units	Total	Summit Inc. Ownership Percentage
Balance — January 2, 2016 (1)	52,402,692	50,275,825	102,678,517	51.0	%
Issuance of Class A shares	1,038	-	1,038
Exchanges during period	45,124,528	(45,124,528)	-
Other equity transactions	26,020	-	26,020
Balance — December 31, 2016 (1)	97,554,278	5,151,297	102,705,575	95.0	%
January 2017 public offering	10,000,000	-	10,000,000
Exchanges during period	1,461,677	(1,461,677)	-
Other equity transactions	1,334,639	-	1,334,639
Balance — December 30, 2017	110,350,594	3,689,620	114,040,214	96.8	%

(1) The January 2, 2016 balance of Summit Inc. Class A Shares of 52,402,692 is shown to reflect the retroactive application of 1,135,692 and 1,521,056 of Class A common stock issued as a stock dividend on December 28, 2016 and December 22, 2017, respectively.  The December 31, 2016 balance of Summit Inc. Class A Shares of 97,554,278 is shown to reflect the retroactive application of 1,521,056 of Class A common stock issued as a stock dividend on December 22, 2017.

Schedule of Changes in Each Component of Accumulated Other Comprehensive Income (Loss)

							Accumulated
			Foreign currency				other
	Change in		translation		Cash flow hedge		comprehensive
	retirement plans		adjustments		adjustments		income (loss)
Balance — January 2, 2016	$	1,049	$	(3,379)	$	(465)	$	(2,795)
Postretirement liability adjustment		401		—		—		401
Foreign currency translation adjustment		—		273		—		273
Loss on cash flow hedges		—		—		(128)		(128)
Balance — December 31, 2016	$	1,450	$	(3,106)	$	(593)	$	(2,249)
Postretirement curtailment adjustment, net of tax		309		—		—		309
Postretirement liability adjustment, net of tax		605		—		—		605
Foreign currency translation adjustment, net of tax		—		7,743		—		7,743
Income on cash flow hedges, net of tax		—		—		978		978
Balance — December 30, 2017	$	2,364	$	4,637	$	385	$	7,386

Summit Materials, LLC

Company Information

Schedule of Changes in Each Component of Accumulated Other Comprehensive Income (Loss)

							Accumulated
			Foreign currency				other
	Change in		translation		Cash flow hedge		comprehensive
	retirement plans		adjustments		adjustments		income (loss)
Balance — January 2, 2016	$	(7,607)	$	(19,915)	$	(944)	$	(28,466)
Postretirement liability adjustment		426		—		—		426
Foreign currency translation adjustment		—		2,125		—		2,125
Loss on cash flow hedges		—		—		(1,529)		(1,529)
Balance — December 31, 2016	$	(7,181)	$	(17,790)	$	(2,473)	$	(27,444)
Postretirement curtailment adjustment		429		—		—		429
Postretirement liability adjustment		699		—		—		699
Foreign currency translation adjustment		—		7,768		—		7,768
Income on cash flow hedges		—		—		1,413		1,413
Balance — December 30, 2017	$	(6,053)	$	(10,022)	$	(1,060)	$	(17,135)

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Supplemental Cash Flow Information (Tables)

12 Months Ended

Dec. 30, 2017

Schedule of Supplemental Cash Flow Information

	2017		2016		2015
Cash payments:
Interest	$	96,320	$	82,540	$	89,102
Income taxes		1,711		2,645		1,685
Non cash financing activities:
Purchase of noncontrolling interest	$	(716)	$	—	$	(29,102)
Stock Dividend		(45,023)		(26,939)		(16,847)
Exchange of LP Units to shares of Class A common stock		41,126		953,752		—

Summit Materials, LLC

Schedule of Supplemental Cash Flow Information

	2017		2016		2015
Cash payments:
Interest	$	96,320	$	82,540	$	89,102
Income taxes		1,711		2,645		1,685
Non cash financing activities:
Purchase of noncontrolling interest	$	(716)	$	—	$	(64,102)

XML

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 30, 2017

Summary of Information for the Equity Awards Granted

	Options			Restricted Stock Units			Performance Stock Units			Warrants
		Weighted			Weighted			Weighted			Weighted
		average grant-		Number of	average grant-		Number of	average grant-		Number of	average grant-
	Number of	date fair value		restricted	date fair value		performance	date fair value		performance	date fair value
	options	per unit		stock units	per unit		stock units	per unit		stock units	per unit
Beginning balance—December 31, 2016	4,990,443	$	8.95	352,602	$	17.77	130,691	$	18.71	160,333	$	18.00
Granted	377,630		12.13	307,905		24.01	85,530		31.58	—		—
Forfeited	(11,339)		10.91	(6,109)		20.37	(4,766)		18.71	—		—
Exercised	(1,203,121)		8.90	—		—	—		—	(57,555)		18.00
Vested	—		—	(145,812)		17.68	—		—	—		—
Balance—December 30, 2017	4,153,613	$	9.13	508,586	$	20.14	211,455	$	23.69	102,778	$	18.00

Weighted Average Assumptions Used to Estimate the Fair Value of Grants

	Options			Performance Stock Units
	2017	2016	2015	2017	2016
Risk-free interest rate	2.06% - 2.31%	1.75% - 1.97%	1.68% - 1.92%	1.45%	0.88%
Dividend yield	None	None	None	None	None
Volatility	47%	48%	50%	39%	37%
Expected term	7 Years	10 Years	7 - 10 years	3 Years	3 Years

Summit Materials, LLC

Summary of Information for the Equity Awards Granted

	Options			Restricted Stock Units			Performance Stock Units			Warrants
		Weighted			Weighted			Weighted			Weighted
		average grant-		Number of	average grant-		Number of	average grant-		Number of	average grant-
	Number of	date fair value		restricted	date fair value		performance	date fair value		performance	date fair value
	options	per unit		stock units	per unit		stock units	per unit		stock units	per unit
Beginning balance—December 31, 2016	4,990,443	$	8.95	352,602	$	17.77	130,691	$	18.71	160,333	$	18.00
Granted	377,630		12.13	307,905		24.01	85,530		31.58	—		—
Forfeited	(11,339)		10.91	(6,109)		20.37	(4,766)		18.71	—		—
Exercised	(1,203,121)		8.90	—		—	—		—	(57,555)		18.00
Vested	—		—	(145,812)		17.68	—		—	—		—
Balance—December 30, 2017	4,153,613	$	9.13	508,586	$	20.14	211,455	$	23.69	102,778	$	18.00

Weighted Average Assumptions Used to Estimate the Fair Value of Grants

	Options			Performance Stock Units
	2017	2016	2015	2017	2016
Risk-free interest rate	2.06% - 2.31%	1.75% - 1.97%	1.68% - 1.92%	1.45%	0.88%
Dividend yield	None	None	None	None	None
Volatility	47%	48%	50%	39%	37%
Expected term	7 Years	10 Years	7 - 10 years	3 Years	3 Years

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Employee Benefit Plans (Tables)

12 Months Ended

Dec. 30, 2017

Obligations and Funded Status

	2017				2016
	Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.
Change in benefit obligations:
Beginning of period	$	27,608	$	12,770	$	27,914	$	13,458
Service cost		285		184		279		230
Interest cost		998		365		1,049		470
Actuarial loss (gain)		1,182		(338)		22		(682)
Curtailments		(430)
Change in plan provision		—		(2,325)		—		65
Benefits paid		(1,659)		(863)		(1,656)		(771)
End of period	$	27,984	$	9,793	$	27,608	$	12,770
Change in fair value of plan assets:
Beginning of period	$	18,395	$	—	$	18,336	$	—
Actual return on plan assets		1,415				719
Employer contributions		861		863		996		771
Benefits paid		(1,659)		(863)		(1,656)		(771)
End of period	$	19,012	$	—	$	18,395	$	—
Funded status of plans	$	(8,972)	$	(9,793)	$	(9,213)	$	(12,770)
Current liabilities	$	—	$	(702)	$	—	$	(844)
Noncurrent liabilities		(8,972)		(9,091)		(9,213)		(11,926)
Liability recognized	$	(8,972)	$	(9,793)	$	(9,213)	$	(12,770)
Amounts recognized in accumulated other comprehensive income:
Net actuarial loss	$	9,341	$	2,285	$	9,248	$	3,060
Prior service cost		—		(2,413)		—		(1,968)
Total amount recognized	$	9,341	$	(128)	$	9,248	$	1,092

Amounts Recognized in Other Comprehensive (Gain) Loss

	2017				2016				2015
	Pension		Healthcare		Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.		benefits		& Life Ins.
Amounts recognized in other comprehensive (income) loss:
Net actuarial gain (loss)	$	1,068	$	(338)	$	688	$	(682)	$	(16)	$	(1,720)
Prior service cost		—		(572)		—		64		—		—
Amortization of prior year service cost		—		168		—		174		—		174
Curtailment benefit		(429)		—		—		—		—		—
Amortization of gain		(547)		(64)		(463)		(207)		(326)		(235)
Adjustment to plan benefits		—		(414)		—		—		—		—
Total amount recognized	$	92	$	(1,220)	$	225	$	(651)	$	(342)	$	(1,781)
Components of net periodic benefit cost:
Service cost	$	285	$	184	$	279	$	230	$	159	$	149
Interest cost		998		365		1,049		470		1,041		447
Amortization of gain		547		64		463		207		326		235
Expected return on plan assets		(1,302)		—		(1,386)		—		(1,385)		—
Amortization of prior service credit		—		(168)		—		(174)		—		(174)
Net periodic benefit cost	$	528	$	445	$	405	$	733	$	141	$	657

Weighted-Average Assumptions Used to Determine Benefit Obligations

	2017		2016
		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	3.23% - 3.37%	3.20% - 3.25%	3.61% - 3.81%	3.32% - 3.65%
Expected long-term rate of return on plan assets	7.00%	N/A	7.00%	N/A

Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost

	2017		2016		2015
		Healthcare		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	3.61% - 3.81%	3.54% - 3.65%	3.74% - 3.97%	3.34% - 3.80%	3.50% - 3.98%	3.39% - 3.52%
Expected long-term rate of return on plan assets	7.00%	N/A	7.30%	N/A	7.30%	N/A

Effects of One Percentage-Point Change in Assumed Health Care Cost Trend Rates

	2017				2016
	Increase		Decrease		Increase		Decrease
Total service cost and interest cost components	$	39	$	(33)	$	55	$	(47)
APBO		857		(769)		1,197		(1,038)

Fair Value of Company's Pension Plans' Assets

	2017
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	3,620	$	3,068	$	552
Intermediate—corporate		3,872		—		3,872
Short-term—government		497		497		—
Short-term—corporate		1,702		—		1,702
Equity securities:
U.S. Large cap value		1,765		1,765		—
U.S. Large cap growth		588		588		—
U.S. Mid cap value		586		586		—
U.S. Mid cap growth		586		586		—
U.S. Small cap value		571		571		—
U.S. Small cap growth		580		580		—
Managed Futures		392		—		392
International		1,547		677		870
Commodities Broad Basket		801		—		801
Cash		1,522		—		1,522
Precious metals		383		383		—
Total	$	19,012	$	9,301	$	9,711

	2016
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	1,770	$	—	$	1,770
Intermediate—corporate		2,658		—		2,658
Short-term—government		912		—		912
Short-term—corporate		3,613		—		3,613
Equity securities:
U.S. Large cap value		1,181		1,181		—
U.S. Large cap growth		1,103		1,103		—
U.S. Mid cap value		577		577		—
U.S. Mid cap growth		546		546		—
U.S. Small cap value		551		551		—
U.S. Small cap growth		540		540		—
Managed Futures		366		366		—
International		1,099		1,099		—
Emerging Markets		359		359		—
Commodities Broad Basket		707		707		—
Cash		2,094		2,094		—
Precious metals		319		319		—
Total	$	18,395	$	9,442	$	8,953

Estimated Benefit Payments

	Pension		Healthcare and Life
	benefits		Insurance Benefits
2018	$	1,835	$	702
2019		1,830		667
2020		1,804		675
2021		1,771		655
2022		1,768		649
2023 - 2027		8,457		3,250

Summit Materials, LLC

Obligations and Funded Status

	2017				2016
	Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.
Change in benefit obligations:
Beginning of period	$	27,608	$	12,770	$	27,914	$	13,458
Service cost		285		184		279		230
Interest cost		998		365		1,049		470
Actuarial loss (gain)		1,182		(338)		22		(682)
Curtailments		(430)
Change in plan provision		—		(2,325)		—		65
Benefits paid		(1,659)		(863)		(1,656)		(771)
End of period		27,984		9,793		27,608		12,770
Change in fair value of plan assets:
Beginning of period	$	18,395	$	—	$	18,336	$	—
Actual return on plan assets		1,415				719
Employer contributions		861		863		996		771
Benefits paid		(1,659)		(863)		(1,656)		(771)
End of period		19,012		—		18,395		—
Funded status of plans	$	(8,972)	$	(9,793)	$	(9,213)	$	(12,770)
Current liabilities	$	—	$	(702)	$	—	$	(844)
Noncurrent liabilities		(8,972)		(9,091)		(9,213)		(11,926)
Liability recognized	$	(8,972)	$	(9,793)	$	(9,213)	$	(12,770)
Amounts recognized in accumulated other comprehensive income:
Net actuarial loss	$	9,341	$	2,285	$	9,248	$	3,060
Prior service cost		—		(2,413)		—		(1,968)
Total amount recognized	$	9,341	$	(128)	$	9,248	$	1,092

Amounts Recognized in Other Comprehensive (Gain) Loss

	2017				2016				2015
	Pension		Healthcare		Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.		benefits		& Life Ins.
Amounts recognized in other comprehensive (income) loss:
Net actuarial gain (loss)	$	1,068	$	(338)	$	688	$	(682)	$	(16)	$	(1,720)
Prior service cost		—		(572)		—		64		—		—
Amortization of prior year service cost		—		168		—		174		—		174
Curtailment benefit		(429)		—		—		—		—		—
Amortization of gain		(547)		(64)		(463)		(207)		(326)		(235)
Adjustment to plan benefits		—		(414)		—		—		—		—
Total amount recognized	$	92	$	(1,220)	$	225	$	(651)	$	(342)	$	(1,781)
Components of net periodic benefit cost:
Service cost	$	285	$	184	$	279	$	230	$	159	$	149
Interest cost		998		365		1,049		470		1,041		447
Amortization of gain		547		64		463		207		326		235
Expected return on plan assets		(1,302)		—		(1,386)		—		(1,385)		—
Amortization of prior service credit		—		(168)		—		(174)		—		(174)
Net periodic benefit cost	$	528	$	445	$	405	$	733	$	141	$	657

Weighted-Average Assumptions Used to Determine Benefit Obligations

	2017		2016
		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	3.23% - 3.37%	3.20% - 3.25%	3.61% - 3.81%	3.32% - 3.65%
Expected long-term rate of return on plan assets	7.00%	N/A	7.00%	N/A

Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost

	2017		2016		2015
		Healthcare		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	3.61% - 3.81%	3.54% - 3.65%	3.74% - 3.97%	3.34% - 3.80%	3.50% - 3.98%	3.39% - 3.52%
Expected long-term rate of return on plan assets	7.00%	N/A	7.30%	N/A	7.30%	N/A

Effects of One Percentage-Point Change in Assumed Health Care Cost Trend Rates

	2017				2016
	Increase		Decrease		Increase		Decrease
Total service cost and interest cost components	$	39	$	(33)	$	55	$	(47)
APBO		857		(769)		1,197		(1,038)

Fair Value of Company's Pension Plans' Assets

	2017
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	3,620	$	3,068	$	552
Intermediate—corporate		3,872		—		3,872
Short-term—government		497		497		—
Short-term—corporate		1,702		—		1,702
Equity securities:
U.S. Large cap value		1,765		1,765		—
U.S. Large cap growth		588		588		—
U.S. Mid cap value		586		586		—
U.S. Mid cap growth		586		586		—
U.S. Small cap value		571		571		—
U.S. Small cap growth		580		580		—
Managed Futures		392		—		392
International		1,547		677		870
Commodities Broad Basket		801		—		801
Cash		1,522		—		1,522
Precious metals		383		383		—
Total	$	19,012	$	9,301	$	9,711

	2016
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	1,770	$	—	$	1,770
Intermediate—corporate		2,658		—		2,658
Short-term—government		912		—		912
Short-term—corporate		3,613		—		3,613
Equity securities:
U.S. Large cap value		1,181		1,181		—
U.S. Large cap growth		1,103		1,103		—
U.S. Mid cap value		577		577		—
U.S. Mid cap growth		546		546		—
U.S. Small cap value		551		551		—
U.S. Small cap growth		540		540		—
Managed Futures		366		366		—
International		1,099		1,099		—
Emerging Markets		359		359		—
Commodities Broad Basket		707		707		—
Cash		2,094		2,094		—
Precious metals		319		319		—
Total	$	18,395	$	9,442	$	8,953

Estimated Benefit Payments

	Pension		Healthcare and Life
	benefits		Insurance Benefits
2018	$	1,835	$	702
2019		1,830		667
2020		1,804		675
2021		1,771		655
2022		1,768		649
2023 - 2027		8,457		3,250

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Accrued Mining and Landfill Reclamation (Tables)

12 Months Ended

Dec. 30, 2017

Activity for Asset Retirement Obligations

	2017		2016
Beginning balance	$	23,906	$	20,735
Acquired obligations		2,303		835
Change in cost estimate		(1,764)		3,055
Settlement of reclamation obligations		(1,996)		(2,283)
Accretion expense		1,880		1,564
Ending balance	$	24,329	$	23,906

Summit Materials, LLC

Activity for Asset Retirement Obligations

	2017		2016
Beginning balance	$	23,906	$	20,735
Acquired obligations		2,303		835
Change in cost estimate		(1,764)		3,055
Settlement of reclamation obligations		(1,996)		(2,283)
Accretion expense		1,880		1,564
Ending balance	$	24,329	$	23,906

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Leasing Arrangements (Tables)

12 Months Ended

Dec. 30, 2017

Minimum Contractual Commitments for the Subsequent Five Years under Long-Term Operating Leases

	Operating		Royalty
	Leases		Agreements
2018	$	8,627	$	6,450
2019		7,077		6,017
2020		5,826		5,833
2021		4,650		5,550
2022		2,475		5,431

Summit Materials, LLC

Minimum Contractual Commitments for the Subsequent Five Years under Long-Term Operating Leases

	Operating		Royalty
	Leases		Agreements
2018	$	8,627	$	6,450
2019		7,077		6,017
2020		5,826		5,833
2021		4,650		5,550
2022		2,475		5,431

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Fair Value (Tables)

12 Months Ended

Dec. 30, 2017

Schedule of Contingent Consideration and Derivatives Measured at Fair Value

	2017		2016
Current portion of acquisition-related liabilities and Accrued expenses:
Contingent consideration	$	594	$	9,288
Cash flow hedges		488		942
Acquisition-related liabilities and Other noncurrent liabilities
Contingent consideration	$	34,301	$	2,377
Cash flow hedges		492		1,438

Schedule of Carrying Value and Fair Value of Financial Instruments

	December 30, 2017				December 31, 2016
	Fair Value		Carrying Value		Fair Value		Carrying Value
Level 2
Long-term debt(1)	$	1,893,239	$	1,832,455	$	1,586,102	$	1,536,065
Level 3
Current portion of deferred consideration and noncompete obligations(2)		13,493		13,493		14,874		14,874
Long term portion of deferred consideration and noncompete obligations(3)		23,834		23,834		30,287		30,287

(1) $4.8 million and $6.5 million included in current portion of debt as of December 30, 2017 and December 31, 2016, respectively.

(2) Included in current portion of acquisition-related liabilities on the consolidated balance sheets.

(3) Included in acquisition-related liabilities on the consolidated balance sheets.

Summit Materials, LLC

Schedule of Contingent Consideration and Derivatives Measured at Fair Value

	2017		2016
Current portion of acquisition-related liabilities and Accrued expenses:
Contingent consideration	$	594	$	9,288
Cash flow hedges		488		942
Acquisition-related liabilities and Other noncurrent liabilities
Contingent consideration	$	34,301	$	2,377
Cash flow hedges		492		1,438

Schedule of Carrying Value and Fair Value of Financial Instruments

	December 30, 2017				December 31, 2016
	Fair Value		Carrying Value		Fair Value		Carrying Value
Level 2
Long-term debt(1)	$	1,893,239	$	1,832,455	$	1,586,102	$	1,536,065
Level 3
Current portion of deferred consideration and noncompete obligations(2)		10,993		10,993		12,375		12,375
Long term portion of deferred consideration and noncompete obligations(3)		17,938		17,938		22,784		22,784

(1)$4.8 million and $6.5 million included in current portion of debt as of December 30, 2017 and December 31, 2016, respectively.

(2)Included in current portion of acquisition-related liabilities on the consolidated balance sheets.

(3)Included in acquisition-related liabilities on the consolidated balance sheets.

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Segment Information (Tables)

12 Months Ended

Dec. 30, 2017

Summary of Financial Data for Company's Reportable Business Segments

	2017		2016		2015
Revenue*:
West	$	998,843	$	813,682	$	804,503
East		629,919		531,294		432,310
Cement		303,813		281,087		195,484
Total revenue	$	1,932,575	$	1,626,063	$	1,432,297

*       Intercompany sales are immaterial and the presentation above only reflects sales to external customers.

	2017		2016		2015
(Loss) income from continuing operations before taxes	$	(158,200)	$	40,827	$	(19,194)
Interest expense		108,549		97,536		84,629
Depreciation, depletion and amortization		177,643		147,736		118,321
Accretion		1,875		1,564		1,402
IPO/ Legacy equity modification costs		—		37,257		28,296
Loss on debt financings		4,815		—		71,631
Tax receivable agreement expense		271,016		14,938		—
Transaction costs		7,733		6,797		9,519
Management fees and expenses		—		(1,379)		1,046
Non-cash compensation		21,140		12,683		5,448
Other		1,206		13,388		(13,570)
Total Adjusted EBITDA	$	435,777	$	371,347	$	287,528
Total Adjusted EBITDA by Segment:
West	$	203,590	$	167,434	$	150,764
East		139,108		126,007		92,303
Cement		127,547		112,991		74,845
Corporate and other		(34,468)		(35,085)		(30,384)
Total Adjusted EBITDA	$	435,777	$	371,347	$	287,528

	2017		2016		2015
Purchases of property, plant and equipment
West	$	83,591	$	77,335	$	39,896
East		68,556		45,492		26,268
Cement		35,803		25,408		17,151
Total reportable segments		187,950		148,235		83,315
Corporate and other		6,196		5,248		5,635
Total purchases of property, plant and equipment	$	194,146	$	153,483	$	88,950

	2017		2016		2015
Depreciation, depletion, amortization and accretion:
West	$	71,314	$	65,345	$	53,727
East		67,252		51,540		38,923
Cement		38,351		30,006		24,758
Total reportable segments		176,917		146,891		117,408
Corporate and other		2,601		2,409		2,315
Total depreciation, depletion, amortization and accretion	$	179,518	$	149,300	$	119,723

	2017		2016		2015
Total assets:
West	$	1,225,463	$	902,763	$	821,479
East		1,035,609		870,613		545,187
Cement		870,652		868,440		843,941
Total reportable segments		3,131,724		2,641,816		2,210,607
Corporate and other		655,609		139,650		185,572
Total	$	3,787,333	$	2,781,466	$	2,396,179

	2017		2016		2015
Revenue by product*:
Aggregates	$	313,383	$	264,609	$	219,040
Cement		282,041		250,349		167,696
Ready-mix concrete		492,302		395,917		350,262
Asphalt		285,653		239,419		252,031
Paving and related services		371,763		304,041		295,995
Other		187,433		171,728		147,273
Total revenue	$	1,932,575	$	1,626,063	$	1,432,297

*       Revenue from the liquid asphalt terminals is included in asphalt revenue.

Summit Materials, LLC

Summary of Financial Data for Company's Reportable Business Segments

	2017		2016		2015
Revenue*:
West	$	998,843	$	813,682	$	804,503
East		629,919		531,294		432,310
Cement		303,813		281,087		195,484
Total revenue	$	1,932,575	$	1,626,063	$	1,432,297

*   Intercompany sales are immaterial and the presentation above only reflects sales to external customers.

	2017		2016		2015
Income (loss) from continuing operations before taxes	$	113,696	$	56,805	$	(18,322)
Interest expense		107,655		96,483		83,757
Depreciation, depletion and amortization		177,643		147,736		118,321
Accretion		1,875		1,564		1,402
IPO/ Legacy equity modification costs		—		37,257		28,296
Loss on debt financings		4,815		—		71,631
Transaction costs		7,733		6,797		9,519
Management fees and expenses		—		(1,379)		1,046
Non-cash compensation		21,140		12,683		5,448
Other		1,206		13,388		(13,570)
Total Adjusted EBITDA	$	435,763	$	371,334	$	287,528
Total Adjusted EBITDA by Segment:
West	$	203,590	$	167,434	$	150,764
East		139,108		126,007		92,303
Cement		127,547		112,991		74,845
Corporate and other		(34,482)		(35,098)		(30,384)
Total Adjusted EBITDA	$	435,763	$	371,334	$	287,528

	2017		2016		2015
Purchases of property, plant and equipment
West	$	83,591	$	77,335	$	39,896
East		68,556		45,492		26,268
Cement		35,803		25,408		17,151
Total reportable segments		187,950		148,235		83,315
Corporate and other		6,196		5,248		5,635
Total purchases of property, plant and equipment	$	194,146	$	153,483	$	88,950

	2017		2016		2015
Depreciation, depletion, amortization and accretion:
West	$	71,314	$	65,345	$	53,727
East		67,252		51,540		38,923
Cement		38,351		30,006		24,758
Total reportable segments		176,917		146,891		117,408
Corporate and other		2,601		2,409		2,315
Total depreciation, depletion, amortization and accretion	$	179,518	$	149,300	$	119,723

	2017		2016		2015
Total assets:
West	$	1,225,463	$	902,763	$	821,479
East		1,035,609		870,613		545,187
Cement		870,652		868,440		843,941
Total reportable segments		3,131,724		2,641,816		2,210,607
Corporate and other		372,517		134,604		184,555
Total	$	3,504,241	$	2,776,420	$	2,395,162

	2017		2016		2015
Revenue by product*:
Aggregates	$	313,383	$	264,609	$	219,040
Cement		282,041		250,349		167,696
Ready-mix concrete		492,302		395,917		350,262
Asphalt		285,653		239,419		252,031
Paving and related services		371,763		304,041		295,995
Other		187,433		171,728		147,273
Total revenue	$	1,932,575	$	1,626,063	$	1,432,297

*Revenue from the liquid asphalt terminals is included in asphalt revenue.

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Senior Notes' Guarantor and Non-Guarantor Financial Information (Tables) - Summit Materials, LLC

12 Months Ended

Dec. 30, 2017

Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets

December 30, 2017

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	370,741	$	10,254	$	14,933	$	(12,372)	$	383,556
Accounts receivable, net		—		183,139		15,191		—		198,330
Intercompany receivables		573,301		484,747		—		(1,058,048)		—
Cost and estimated earnings in excess of billings		—		9,264		248		—		9,512
Inventories		—		180,283		4,156		—		184,439
Other current assets		1,167		6,354		243		—		7,764
Total current assets		945,209		874,041		34,771		(1,070,420)		783,601
Property, plant and equipment, net		9,259		1,569,118		37,047		—		1,615,424
Goodwill		—		976,206		61,114		—		1,037,320
Intangible assets, net		—		16,833		—		—		16,833
Other assets		2,890,674		162,711		1,271		(3,003,593)		51,063
Total assets	$	3,845,142	$	3,598,909	$	134,203	$	(4,074,013)	$	3,504,241
Liabilities and Member’s Interest
Current liabilities:
Current portion of debt	$	4,765	$	—	$	—	$	—	$	4,765
Current portion of acquisition-related liabilities		—		11,587		—		—		11,587
Accounts payable		3,976		89,912		6,749		—		100,637
Accrued expenses		47,047		79,372		2,227		(12,372)		116,274
Intercompany payables		684,057		369,918		4,073		(1,058,048)		—
Billings in excess of costs and estimated earnings		—		15,349		401		—		15,750
Total current liabilities		739,845		566,138		13,450		(1,070,420)		249,013
Long-term debt		1,810,833		—		—		—		1,810,833
Acquisition-related liabilities		—		52,239		—		—		52,239
Other noncurrent liabilities		2,870		193,801		75,209		(171,318)		100,562
Total liabilities		2,553,548		812,178		88,659		(1,241,738)		2,212,647
Total member's interest		1,291,594		2,786,731		45,544		(2,832,275)		1,291,594
Total liabilities and member’s interest	$	3,845,142	$	3,598,909	$	134,203	$	(4,074,013)	$	3,504,241

Condensed Consolidating Balance Sheets

December 31, 2016

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	133,862	$	4,820	$	14,656	$	(10,666)	$	142,672
Accounts receivable, net		—		155,389		7,090		(102)		162,377
Intercompany receivables		521,658		321,776		—		(843,434)		—
Cost and estimated earnings in excess of billings		—		6,830		620		—		7,450
Inventories		—		153,374		4,305		—		157,679
Other current assets		1,259		11,012		529		—		12,800
Total current assets		656,779		653,201		27,200		(854,202)		482,978
Property, plant and equipment, net		7,033		1,418,902		20,517		—		1,446,452
Goodwill		—		735,490		46,722		—		782,212
Intangible assets, net		—		17,989		—		—		17,989
Other assets		2,293,803		125,270		1,946		(2,374,230)		46,789
Total assets	$	2,957,615	$	2,950,852	$	96,385	$	(3,228,432)	$	2,776,420
Liabilities and Member’s Interest
Current liabilities:
Current portion of debt	$	6,500	$	—	$	—	$	—	$	6,500
Current portion of acquisition-related liabilities		1,000		20,663		—		—		21,663
Accounts payable		1,497		76,886		3,329		(102)		81,610
Accrued expenses		46,460		73,807		872		(10,666)		110,473
Intercompany payables		509,503		327,405		6,526		(843,434)		—
Billings in excess of costs and estimated earnings		—		15,242		214		—		15,456
Total current liabilities		564,960		514,003		10,941		(854,202)		235,702
Long-term debt		1,514,456		—		—		—		1,514,456
Acquisition-related liabilities		—		25,161		—		—		25,161
Other noncurrent liabilities		2,395		231,199		56,356		(165,242)		124,708
Total liabilities		2,081,811		770,363		67,297		(1,019,444)		1,900,027
Total member's interest		875,804		2,180,489		29,088		(2,208,988)		876,393
Total liabilities and member’s interest	$	2,957,615	$	2,950,852	$	96,385	$	(3,228,432)	$	2,776,420

Condensed Consolidating Statements of Operations and Comprehensive Loss

Condensed Consolidating Statements of Operations and Comprehensive Loss

Year ended December 30, 2017

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—		1,854,434		84,020		(5,879)	$	1,932,575
Cost of revenue (excluding items shown separately below)		—		1,227,037		60,619		(5,879)		1,281,777
General and administrative expenses		63,954		178,023		8,426		—		250,403
Depreciation, depletion, amortization and accretion		2,601		172,738		4,179		—		179,518
Operating (loss) income		(66,555)		276,636		10,796		—		220,877
Other income, net		(307,876)		(1,925)		(533)		309,860		(474)
Interest expense (income)		105,735		(2,415)		4,335		—		107,655
Income from operations before taxes		135,586		280,976		6,994		(309,860)		113,696
Income tax expense		1,518		(23,774)		1,911		—		(20,345)
Net income		134,068		304,750		5,083		(309,860)		134,041
Net loss attributable to noncontrolling interest		—		—		—		(27)		(27)
Net income attributable to member of Summit Materials, LLC	$	134,068	$	304,750	$	5,083	$	(309,833)	$	134,068
Comprehensive income (loss) attributable to member of Summit Materials, LLC	$	144,377	$	302,209	$	(2,685)	$	(299,524)	$	144,377

Condensed Consolidating Statements of Operations and Comprehensive Loss

Year ended December 31, 2016

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—	$	1,586,858	$	47,064	$	(7,859)	$	1,626,063
Cost of revenue (excluding items shown separately below)		—		1,047,120		32,531		(7,859)		1,071,792
General and administrative expenses		91,533		152,402		6,374		—		250,309
Depreciation, depletion, amortization and accretion		2,410		142,773		4,117		—		149,300
Operating (loss) income		(93,943)		244,563		4,042		—		154,662
Other (income) expense, net		(239,082)		1,908		(326)		238,874		1,374
Interest expense		83,068		9,956		3,459		—		96,483
Income from operations before taxes		62,071		232,699		909		(238,874)		56,805
Income (benefit) tax benefit		—		(5,551)		269		—		(5,282)
Net income		62,071		238,250		640		(238,874)		62,087
Net income attributable to noncontrolling interest		—		—		—		16		16
Net income attributable to member of Summit Materials, LLC	$	62,071	$	238,250	$	640	$	(238,890)	$	62,071
Comprehensive income (loss) attributable to member of Summit Materials, LLC	$	63,093	$	239,353	$	(1,485)	$	(237,868)	$	63,093

Condensed Consolidating Statements of Operations and Comprehensive Loss

Year ended January 2, 2016

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—	$	1,364,622	$	100,360	$	(32,685)	$	1,432,297
Cost of revenue (excluding items shown separately below)		—		958,144		64,803		(32,685)		990,262
General and administrative expenses		73,555		107,282		6,451		—		187,288
Depreciation, depletion, amortization and accretion		2,316		112,166		5,241		—		119,723
Operating (loss) income		(75,871)		187,030		23,865		—		135,024
Other income, net		(107,275)		9,938		294		166,632		69,589
Interest expense		27,222		52,970		3,565		—		83,757
(Loss) income from continuing operations before taxes		4,182		124,122		20,006		(166,632)		(18,322)
Income tax (benefit) expense		—		(18,664)		401		—		(18,263)
(Loss) income from operations		4,182		142,786		19,605		(166,632)		(59)
Income from discontinued operations		—		(2,415)		—		—		(2,415)
Net (loss) income		4,182		145,201		19,605		(166,632)		2,356
Net income attributable to noncontrolling interest		—		—		—		(1,826)		(1,826)
Net (loss) income attributable to member of Summit Materials, LLC	$	4,182	$	145,201	$	19,605	$	(164,806)	$	4,182
Comprehensive (loss) income attributable to member of Summit Materials, LLC	$	(8,738)	$	146,380	$	5,506	$	(151,886)	$	(8,738)

Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

For the year ended December 30, 2017

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(127,102)	$	392,316	$	29,918	$	—	$	295,132
Cash flow from investing activities:
Acquisitions, net of cash acquired		(24,538)		(324,892)		(25,500)		—		(374,930)
Purchase of property, plant and equipment		(6,196)		(182,295)		(5,655)		—		(194,146)
Proceeds from the sale of property, plant, and equipment		—		16,822		250		—		17,072
Other		—		(471)		—		—		(471)
Net cash used for investing activities		(30,734)		(490,836)		(30,905)		—		(552,475)
Cash flow from financing activities:
Proceeds from investment by member		40,913		252,911		10,717		—		304,541
Capital issuance costs		(627)		—		—		—		(627)
Net proceeds from debt issuance		302,000		—		—		—		302,000
Loans received from and payments made on loans from other Summit Companies		119,858		(108,026)		(10,126)		(1,706)		—
Payments on long-term debt		(8,463)		(7,967)		(8)		—		(16,438)
Purchase of noncontrolling interests		—		(532)		—		—		(532)
Payments on acquisition-related liabilities		—		(32,150)		—		—		(32,150)
Debt issuance costs		(6,416)		—		—		—		(6,416)
Distributions from partnership		(51,986)		—		—		—		(51,986)
Other		(564)		(282)		(20)		—		(866)
Net cash provided by financing activities		394,715		103,954		563		(1,706)		497,526
Impact of cash on foreign currency		—		—		701		—		701
Net increase (decrease) in cash		236,879		5,434		277		(1,706)		240,884
Cash — Beginning of period		133,862		4,820		14,656		(10,666)		142,672
Cash — End of period	$	370,741	$	10,254	$	14,933	$	(12,372)	$	383,556

Condensed Consolidating Statements of Cash Flows

For the year ended December 31, 2016

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(132,328)	$	373,588	$	3,617	$	—	$	244,877
Cash flow from investing activities:
Acquisitions, net of cash acquired		(42,844)		(294,114)		—		—		(336,958)
Purchase of property, plant and equipment		(5,247)		(146,336)		(1,900)		—		(153,483)
Proceeds from the sale of property, plant, and equipment		—		16,606		262		—		16,868
Other		—		2,921		—		—		2,921
Net cash used for investing activities		(48,091)		(420,923)		(1,638)		—		(470,652)
Cash flow from financing activities:
Proceeds from investment by member		(502,140)		529,517		—		—		27,377
Capital issuance costs		(136)		—		—		—		(136)
Net proceeds from debt issuance		354,000		—		—		—		354,000
Loans received from and payments made on loans from other Summit Companies		440,738		(442,072)		400		934		—
Payments on long-term debt		(110,500)		(10,202)		—		—		(120,702)
Payments on acquisition-related liabilities		(400)		(29,140)		—		—		(29,540)
Financing costs		(5,801)		—		—		—		(5,801)
Distributions from partnership		(42,192)		—		—		—		(42,192)
Other		—		(16)		—		—		(16)
Net cash provided by financing activities		133,569		48,087		400		934		182,990
Impact of cash on foreign currency		—		—		69		—		69
Net (decrease) increase in cash		(46,850)		752		2,448		934		(42,716)
Cash — Beginning of period		180,712		4,068		12,208		(11,600)		185,388
Cash — End of period	$	133,862	$	4,820	$	14,656	$	(10,666)	$	142,672

Condensed Consolidating Statements of Cash Flows

For the year ended January 2, 2016

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(276,104)	$	356,187	$	18,287	$	(167)	$	98,203
Cash flow from investing activities:
Acquisitions, net of cash acquired		—		(510,017)		—		—		(510,017)
Purchase of property, plant and equipment		(5,636)		(81,980)		(1,334)		—		(88,950)
Proceeds from the sale of property, plant, and equipment		—		12,945		165		—		13,110
Other		—		1,510		—		—		1,510
Net cash used for investing activities		(5,636)		(577,542)		(1,169)		—		(584,347)
Cash flow from financing activities:
Proceeds from investment by member		(155,060)		662,826		—		—		507,766
Capital issuance costs		(12,930)		—		—		—		(12,930)
Net proceeds from debt issuance		1,748,875		—		—		—		1,748,875
Loans received from and payments made on loans from other Summit Companies		(208,459)		226,703		(12,700)		(5,544)		—
Payments on long-term debt		(859,796)		(646,746)		—		1,056		(1,505,486)
Payments on acquisition-related liabilities		(166)		(17,890)		—		—		(18,056)
Financing costs		(14,246)		—		—		—		(14,246)
Distributions from partnership		(46,603)		—		—		—		(46,603)
Other		—		(167)		—		167		—
Net cash provided by (used for) financing activities		451,615		224,726		(12,700)		(4,321)		659,320
Impact of cash on foreign currency		—		—		(1,003)		—		(1,003)
Net increase (decrease) in cash		169,875		3,371		3,415		(4,488)		172,173
Cash — Beginning of period		10,837		697		8,793		(7,112)		13,215
Cash — End of period	$	180,712	$	4,068	$	12,208	$	(11,600)	$	185,388

XML

Supplementary Data (Unaudited) (Tables)

12 Months Ended

Dec. 30, 2017

Supplemental Financial Information

	2017								2016
	4Q		3Q		2Q		1Q		4Q		3Q		2Q		1Q
Net revenue	$	440,610	$	574,387	$	478,368	$	259,044	$	387,389	$	480,210	$	412,636	$	208,039
Operating income (loss)		57,306		113,911		82,444		(32,784)		48,761		88,410		46,948		(29,457)
Net income (loss) (1)		44,510		84,287		52,088		(55,108)		6,049		61,106		21,505		(42,534)
Net income (loss) attributable to Summit Inc. (1)		43,010		81,264		50,000		(52,444)		(290)		44,820		13,371		(21,118)
Basic earnings per share attributable to Summit Inc. (1)	$	0.39	$	0.74	$	0.46	$	(0.49)	$	(0.00)	$	0.59	$	0.21	$	(0.40)
Diluted earnings per share attributable to Summit Inc. (1)		0.38		0.73		0.46		(0.49)		(0.00)		0.59		0.20		(0.40)

The third quarter of 2017 amounts are revised from prior disclosed amounts due to adjustments identified during the fourth quarter of 2017.

Summit Materials, LLC

Supplemental Financial Information

	2017								2016
	4Q		3Q		2Q		1Q		4Q		3Q		2Q		1Q
Net revenue	$	440,610	$	574,387	$	478,368	$	259,044	$	387,389	$	480,210	$	412,636	$	208,039
Operating income (loss)		57,306		113,911		82,444		(32,784)		48,761		88,410		46,948		(29,457)
Net income (loss)		52,435		82,633		53,827		(54,854)		21,211		61,360		21,759		(42,243)

XML

Summary of Organization and Significant Accounting Policies - General Information and Equity Offerings (Details) $ in Thousands			1 Months Ended	12 Months Ended
	Aug. 13, 2015 USD ($)	Jul. 17, 2015 USD ($)	Aug. 13, 2015 USD ($)	Dec. 30, 2017 USD ($) segment facility shares	Dec. 31, 2016 shares	Jan. 02, 2016 USD ($)	Mar. 16, 2015
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Number of plants | facility				2
Number of operating segments | segment				3
Length of fiscal quarter				91 days
Interval period for 53 week fiscal year				7 years
Equity Offering
Proceeds from sale of common stock, net of underwriting discounts				$ 237,600		$ 1,037,444
Percentage of benefits to be paid on tax receivable agreement				85.00%
Principles of Consolidation
Voting power (as a percent)				96.80%	95.00%	51.00%
Minimum
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Length of fiscal year				364 days
Maximum
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Length of fiscal year				371 days
Continental Cement
Principles of Consolidation
Ownership Percentage							70.00%
Davenport Assets
Equity Offering
Cash paid for acquisitions	$ 80,000	$ 370,000	$ 450,000
Summit Materials, LLC
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Number of plants | facility				2
Number of operating segments | segment				3
Length of fiscal quarter				91 days
Interval period for 53 week fiscal year				7 years
Summit Materials, LLC | Minimum
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Length of fiscal year				364 days
Summit Materials, LLC | Maximum
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Length of fiscal year				371 days
Summit Materials, LLC | Continental Cement
Principles of Consolidation
Noncontrolling interest elimination (as a percent)				30.00%
Summit Materials, LLC | Ohio Valley Asphalt
Principles of Consolidation
Noncontrolling interest elimination (as a percent)				20.00%
Summit Materials, LLC | Davenport Assets
Equity Offering
Cash paid for acquisitions	$ 450,000	$ 370,000
Summit Holdings LP
Principles of Consolidation
Voting power (as a percent)				100.00%
Noncontrolling interest elimination (as a percent)				3.20%	5.00%
Summit Materials, Inc. and Summit Holdings, LP
Equity Offering
Common stock issued (in shares) | shares				10,000,000	1,038

XML

Summary of Organization and Significant Accounting Policies - Business and Credit Concentration (Details)	12 Months Ended
	Dec. 30, 2017 state item	Dec. 31, 2016 item	Jan. 02, 2016 item	Dec. 27, 2014 item
Business and Credit Concentrations
Number of states in which the entity operates	23
Percentage of benefits to be paid on tax receivable agreement	85.00%
Sales | Customer Concentration Risk
Business and Credit Concentrations
Number of customers accounted for more than 10% of total revenue	0	0	0
Sales | Customer Concentration Risk | Maximum
Business and Credit Concentrations
Customer accounted revenue (as a percent)	10.00%	10.00%	10.00%
Summit Materials, LLC
Business and Credit Concentrations
Number of states in which the entity operates | state	23
Summit Materials, LLC | Sales | Maximum
Business and Credit Concentrations
Customer accounted revenue (as a percent)		10.00%	10.00%	10.00%
Summit Materials, LLC | Sales | Customer Concentration Risk
Business and Credit Concentrations
Number of customers accounted for more than 10% of total revenue		0	0	0
Tax Receivable Agreement
Business and Credit Concentrations
Percentage of benefits to be paid on tax receivable agreement	85.00%

XML

Summary of Organization and Significant Accounting Policies - New Accounting Standards (Details) - USD ($)	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2016
New Accounting Standards
Cost of Goods Sold	$ 898,281,000	$ 751,419,000	$ 676,074,000
Other (income) expense, net	(5,303,000)	1,361,000	(2,042,000)
General and administrative expenses	242,670,000	243,512,000	177,769,000
Accounting Standards Update 2016-09 | Adjustments for New Accounting Principle, Early Adoption
New Accounting Standards
Cumulative effect adjustment				$ 1,700,000
Accounting Standards Update 2017-07 | Adjustments for New Accounting Principle, Early Adoption
New Accounting Standards
Cost of Goods Sold		(278,000)	(383,000)
Other (income) expense, net		278,000	383,000
General and administrative expenses		350,000
Summit Materials, LLC
New Accounting Standards
Cost of Goods Sold	898,281,000	751,419,000	676,074,000
Other (income) expense, net	(5,289,000)	1,374,000	(2,042,000)
General and administrative expenses	$ 242,670,000	243,512,000	177,769,000
Summit Materials, LLC | Accounting Standards Update 2016-09 | Adjustments for New Accounting Principle, Early Adoption
New Accounting Standards
Cumulative effect adjustment				$ 1,700,000
Summit Materials, LLC | Accounting Standards Update 2017-07 | Adjustments for New Accounting Principle, Early Adoption
New Accounting Standards
Cost of Goods Sold		(278,000)	$ (383,000)
General and administrative expenses		$ (350,000)

XML

Acquisitions - Completed Acquisitions Information (Details) - item	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
West
Business Acquisition [Line Items]
Number of business acquisitions	6	3	3
East
Business Acquisition [Line Items]
Number of business acquisitions	8	5
Cement
Business Acquisition [Line Items]
Number of business acquisitions		1	1
Summit Materials, LLC | West
Business Acquisition [Line Items]
Number of business acquisitions	6	3	3
Summit Materials, LLC | East
Business Acquisition [Line Items]
Number of business acquisitions	8	5
Summit Materials, LLC | Cement
Business Acquisition [Line Items]
Number of business acquisitions		1	1

XML

Acquisitions - Summary of Assets Acquired and Liabilities Assumed (Detail) $ in Thousands				1 Months Ended	3 Months Ended	12 Months Ended
	Aug. 13, 2015 USD ($)	Aug. 11, 2015 USD ($)	Jul. 17, 2015 USD ($)	Aug. 13, 2015 USD ($)	Apr. 01, 2017 USD ($)	Dec. 30, 2017 USD ($) facility	Dec. 31, 2016 USD ($)	Jan. 02, 2016 USD ($)
Business Acquisition [Line Items]
Net gain on asset disposals						$ 7,638	$ 3,102	$ 23,087
Number of Plants Owned and Operated | facility						2
Goodwill						$ 1,036,320	782,212	596,397
Amount reclassified from financial assets to liabilities					$ 1,200
Cement
Business Acquisition [Line Items]
Goodwill						204,656	204,538	194,163
Summit Materials, LLC
Business Acquisition [Line Items]
Net gain on asset disposals						$ (3,856)		9,877
Number of Plants Owned and Operated | facility						2
Goodwill						$ 1,037,320	782,212	596,397
Amount reclassified from financial assets to liabilities					$ 1,200
Summit Materials, LLC | Cement
Business Acquisition [Line Items]
Goodwill						204,656	204,538	$ 194,163
Davenport Assets
Business Acquisition [Line Items]
Cash paid for acquisitions	$ 80,000		$ 370,000	$ 450,000
Davenport Assets | Follow on Public Offering
Business Acquisition [Line Items]
Cash paid for acquisitions		$ 80,000
Davenport Assets | Summit Materials, LLC
Business Acquisition [Line Items]
Cash paid for acquisitions	450,000		370,000
Davenport Assets | Summit Materials, LLC | Follow on Public Offering
Business Acquisition [Line Items]
Cash paid for acquisitions	$ 80,000
2016 Acquisitions
Business Acquisition [Line Items]
Financial assets							22,204
Inventories							17,215
Property, plant and equipment							180,321
Intangible assets							5,531
Other assets							6,757
Financial liabilities							(20,248)
Other long-term liabilities							(36,074)
Net assets acquired							175,706
Goodwill							176,319
Purchase price							352,025
Acquisition related liabilities							(17,034)
Other							1,967
Net cash paid for acquisitions							$ 336,958
2016 Acquisitions | Summit Materials, LLC
Business Acquisition [Line Items]
Financial assets			22,204
Inventories			17,215
Property, plant and equipment			180,321
Intangible assets			5,531
Other assets			6,757
Financial liabilities			(20,248)
Other long-term liabilities			(36,074)
Net assets acquired			175,706
Goodwill			176,319
Purchase price			352,025
Acquisition related liabilities			(17,034)
Other			1,967
Net cash paid for acquisitions			$ 336,958
2017 Acquisitions
Business Acquisition [Line Items]
Financial assets						31,615
Inventories						8,300
Property, plant and equipment						160,975
Intangible assets						161
Other assets						4,200
Financial liabilities						(15,501)
Other long-term liabilities						(17,610)
Net assets acquired						172,140
Goodwill						247,536
Purchase price						419,676
Acquisition related liabilities						(43,452)
Other						(1,294)
Net cash paid for acquisitions						374,930
2017 Acquisitions | Summit Materials, LLC
Business Acquisition [Line Items]
Financial assets						31,615
Inventories						8,300
Property, plant and equipment						160,975
Intangible assets						161
Other assets						4,200
Financial liabilities						(15,501)
Other long-term liabilities						(17,610)
Net assets acquired						172,140
Goodwill						247,536
Purchase price						419,676
Acquisition related liabilities						(43,452)
Other						(1,294)
Net cash paid for acquisitions						$ 374,930

XML

Acquisitions - Contractual Obligations (Details) $ in Thousands	12 Months Ended
	Dec. 30, 2017 USD ($)
Minimum
Remaining payments on contractual obligations
Term of payment for deferred consideration	5 years
Maximum
Remaining payments on contractual obligations
Term of payment for deferred consideration	20 years
Noncompete and Deferred Consideration Agreements [Member]
Remaining payments on contractual obligations
2018	$ 13,760
2019	9,187
2020	7,973
2021	7,958
2022	1,803
Thereafter	6,763
Total scheduled payments	47,444
Present value adjustments	(10,117)
Total noncompete obligations and deferred consideration	$ 37,327
Summit Materials, LLC
Remaining payments on contractual obligations
Average term of noncompete agreements	5 years
Summit Materials, LLC | Minimum
Remaining payments on contractual obligations
Term of payment for deferred consideration	5 years
Summit Materials, LLC | Maximum
Remaining payments on contractual obligations
Term of payment for deferred consideration	20 years
Summit Materials, LLC | Noncompete and Deferred Consideration Agreements [Member]
Remaining payments on contractual obligations
2018	$ 11,260
2019	6,687
2020	5,473
2021	5,458
2022	1,803
Thereafter	6,763
Total scheduled payments	37,444
Present value adjustments	(8,513)
Total noncompete obligations and deferred consideration	$ 28,931

XML

Goodwill - Additional Information (Details) $ in Millions	12 Months Ended
	Dec. 30, 2017 USD ($) item	Dec. 27, 2014 USD ($)
Goodwill
Number of reporting units with goodwill	12
Number of reporting units assessed under qualitative assessment	5
Accumulated impairment losses | $		$ 68.2
Summit Materials, LLC
Goodwill
Number of reporting units with goodwill	12
Number of reporting units assessed under qualitative assessment	5
Goodwill impairment | $	$ 0.0
Accumulated impairment losses | $		$ 68.2

XML

Goodwill - Summary of Goodwill by Reportable Segments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016
Goodwill [Roll Forward]
Beginning balance	$ 782,212	$ 596,397
Acquisitions	249,958	184,490
Foreign currency translation adjustments	4,150	1,325
Ending balance	1,036,320	782,212
Summit Materials, LLC
Goodwill [Roll Forward]
Beginning balance	782,212	596,397
Acquisitions	250,958	184,490
Foreign currency translation adjustments	4,150	1,325
Ending balance	1,037,320	782,212
West
Goodwill [Roll Forward]
Beginning balance	334,257	303,926
Acquisitions	187,883	29,006
Foreign currency translation adjustments	4,150	1,325
Ending balance	526,290	334,257
West | Summit Materials, LLC
Goodwill [Roll Forward]
Beginning balance	334,257	303,926
Acquisitions	188,883	29,006
Foreign currency translation adjustments	4,150	1,325
Ending balance	527,290	334,257
East
Goodwill [Roll Forward]
Beginning balance	243,417	98,308
Acquisitions	61,957	145,109
Ending balance	305,374	243,417
East | Summit Materials, LLC
Goodwill [Roll Forward]
Beginning balance	243,417	98,308
Acquisitions	61,957	145,109
Ending balance	305,374	243,417
Cement
Goodwill [Roll Forward]
Beginning balance	204,538	194,163
Acquisitions	118	10,375
Ending balance	204,656	204,538
Cement | Summit Materials, LLC
Goodwill [Roll Forward]
Beginning balance	204,538	194,163
Acquisitions	118	10,375
Ending balance	$ 204,656	$ 204,538

XML

Revenue Recognition - Summary of Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	$ 187,528	$ 152,845
Retention receivables	14,973	12,117
Receivables from related parties	468	721
Accounts receivable	202,969	165,683
Less: Allowance for doubtful accounts	(4,639)	(3,306)
Accounts receivable, net	198,330	162,377
Summit Materials, LLC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	187,528	152,845
Retention receivables	14,973	12,117
Receivables from related parties	468	721
Accounts receivable	202,969	165,683
Less: Allowance for doubtful accounts	(4,639)	(3,306)
Accounts receivable, net	$ 198,330	$ 162,377

XML

Inventories - Components of Inventories (Details) - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016
Inventories
Aggregate stockpiles	$ 126,791	$ 103,073
Finished goods	34,667	35,071
Work in process	7,729	6,440
Raw materials	15,252	13,095
Total	184,439	157,679
Summit Materials, LLC
Inventories
Aggregate stockpiles	126,791	103,073
Finished goods	34,667	35,071
Work in process	7,729	6,440
Raw materials	15,252	13,095
Total	$ 184,439	$ 157,679

XML

Property, Plant and Equipment, net and Intangibles, net - Components of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 2,247,265	$ 1,931,006
Less accumulated depreciation, depletion and amortization	(631,841)	(484,554)
Property, plant and equipment, net	1,615,424	1,446,452
Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	2,247,265	1,931,006
Less accumulated depreciation, depletion and amortization	(631,841)	(484,554)
Property, plant and equipment, net	1,615,424	1,446,452
Land (mineral bearing) and asset retirement costs
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	274,083	227,558
Land (mineral bearing) and asset retirement costs | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	274,083	227,558
Land (non-mineral bearing)
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	168,501	146,099
Land (non-mineral bearing) | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	168,501	146,099
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 170,615	160,638
Buildings and improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years
Buildings and improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	30 years
Buildings and improvements | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 170,615	160,638
Buildings and improvements | Summit Materials, LLC | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years
Buildings and improvements | Summit Materials, LLC | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	30 years
Plants, machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 1,068,007	965,522
Plants, machinery and equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	15 years
Plants, machinery and equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	20 years
Plants, machinery and equipment | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 1,068,007	965,522
Plants, machinery and equipment | Summit Materials, LLC | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	15 years
Plants, machinery and equipment | Summit Materials, LLC | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	20 years
Mobile equipment and barges
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 391,256	307,885
Mobile equipment and barges | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	6 years
Mobile equipment and barges | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	8 years
Mobile equipment and barges | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 391,256	307,885
Mobile equipment and barges | Summit Materials, LLC | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	6 years
Mobile equipment and barges | Summit Materials, LLC | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	8 years
Office equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 33,314	26,096
Office equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Office equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	7 years
Office equipment | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 33,314	26,096
Office equipment | Summit Materials, LLC | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Office equipment | Summit Materials, LLC | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	7 years
Truck and auto fleet
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 47,270	32,236
Truck and auto fleet | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Truck and auto fleet | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	8 years
Truck and auto fleet | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 47,270	32,236
Truck and auto fleet | Summit Materials, LLC | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Truck and auto fleet | Summit Materials, LLC | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	8 years
Landfill airspace and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 49,480	48,513
Landfill airspace and improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years
Landfill airspace and improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	30 years
Landfill airspace and improvements | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 49,480	48,513
Landfill airspace and improvements | Summit Materials, LLC | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years
Landfill airspace and improvements | Summit Materials, LLC | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	30 years
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 44,739	16,459
Construction in progress | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 44,739	$ 16,459
Other | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	4 years
Other | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	20 years
Other | Summit Materials, LLC | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	4 years
Other | Summit Materials, LLC | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	20 years

XML

Property, Plant and Equipment, net and Intangibles, net - Capital Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Property, Plant and Equipment [Line Items]
Depreciation, depletion and amortization expense	$ 177,643	$ 147,736	$ 118,321
Property, plant and equipment, net	1,615,424	1,446,452
Property, plant and equipment, accumulated depreciation, depletion and amortization	631,841	484,554
Capital lease obligations, current	19,276	11,766
2018	20,500
2019	7,600
2020	5,900
2021	1,400
2022	600
General and administrative expenses
Property, Plant and Equipment [Line Items]
Gain (loss) on disposition	7,500	6,800	23,500
Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Depreciation, depletion and amortization expense	177,643	147,736	$ 118,321
Property, plant and equipment, net	1,615,424	1,446,452
Property, plant and equipment, accumulated depreciation, depletion and amortization	631,841	484,554
Capital lease obligations, current	19,276	11,766
2018	20,500
2019	7,600
2020	5,900
2021	1,400
2022	600
Capital leases for equipment and building
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net	51,200	49,800
Property, plant and equipment, accumulated depreciation, depletion and amortization	18,500	10,600
Capital leases for equipment and building | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net	51,200	49,800
Property, plant and equipment, accumulated depreciation, depletion and amortization	$ 18,500	10,600
Capital leases for equipment and building | Summit Materials, LLC | Maximum
Property, Plant and Equipment [Line Items]
Equipment leases terms	5 years
Building lease original term	30 years
Accrued expenses | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Capital lease obligations, current	$ 19,300	11,800
Accrued expenses | Capital leases for equipment and building
Property, Plant and Equipment [Line Items]
Capital lease obligations, current	19,300	11,800
Noncurrent liabilities | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Capital lease obligations, noncurrent	16,400	27,500
Noncurrent liabilities | Capital leases for equipment and building
Property, Plant and Equipment [Line Items]
Capital lease obligations, noncurrent	$ 16,400	$ 27,500

XML

Property, Plant and Equipment, net and Intangibles, net - Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 23,531	$ 25,843
Accumulated Amortization	(6,698)	(7,854)
Net Carrying Amount	16,833	17,989
Amortization expense	1,300	2,600	$ 2,200
Estimated amortization expense
2018	1,281
2019	1,268
2020	1,185
2021	1,142
2022	1,113
Thereafter	10,844
Total	16,833	17,989
Summit Materials, LLC
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	23,531	25,843
Accumulated Amortization	(6,698)	(7,854)
Net Carrying Amount	16,833	17,989
Amortization expense	1,300	2,600	$ 2,200
Estimated amortization expense
2018	1,281
2019	1,268
2020	1,185
2021	1,142
2022	1,113
Thereafter	10,844
Total	16,833	17,989
Leases
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	15,888	15,888
Accumulated Amortization	(4,178)	(3,382)
Net Carrying Amount	11,710	12,506
Leases | Summit Materials, LLC
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	15,888	15,888
Accumulated Amortization	(4,178)	(3,382)
Net Carrying Amount	11,710	12,506
Reserve Rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	6,234	8,706
Accumulated Amortization	(1,625)	(3,710)
Net Carrying Amount	4,609	4,996
Reserve Rights | Summit Materials, LLC
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	6,234	8,706
Accumulated Amortization	(1,625)	(3,710)
Net Carrying Amount	4,609	4,996
Trade Names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,000	1,000
Accumulated Amortization	(758)	(658)
Net Carrying Amount	242	342
Trade Names | Summit Materials, LLC
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,000	1,000
Accumulated Amortization	(758)	(658)
Net Carrying Amount	242	342
Other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	409	249
Accumulated Amortization	(137)	(104)
Net Carrying Amount	272	145
Other | Summit Materials, LLC
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	409	249
Accumulated Amortization	(137)	(104)
Net Carrying Amount	$ 272	$ 145

XML

Accrued Expenses - Components of Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016
Schedule Of Accrued Expenses [Line Items]
Interest	$ 24,095	$ 22,991
Payroll and benefits	33,915	30,546
Capital lease obligations	19,276	11,766
Insurance	11,455	11,966
Non-income taxes	7,236	5,491
Professional fees	1,717	2,459
Other	18,935	26,386
Total	116,629	111,605
Summit Materials, LLC
Schedule Of Accrued Expenses [Line Items]
Interest	24,095	22,991
Payroll and benefits	33,915	30,546
Capital lease obligations	19,276	11,766
Insurance	11,455	11,966
Non-income taxes	7,467	5,491
Professional fees	1,717	2,459
Other	18,349	25,254
Total	$ 116,274	$ 110,473

XML

Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Dec. 30, 2017	Nov. 21, 2017	Jan. 19, 2017	Dec. 31, 2016
Debt
Total debt	$ 1,832,455			$ 1,536,065
Current portion of long-term debt	4,765			6,500
Long-term debt	1,827,690			1,529,565
Gross amount	1,835,375
Debt discount	2,920
Summit Materials, LLC
Debt
Total debt	1,832,455			1,536,065
Current portion of long-term debt	4,765			6,500
Long-term debt	1,827,690			1,529,565
Gross amount	1,835,375
Debt discount	2,920
Term Loan, due 2022 | Summit Materials, LLC
Debt
Gross amount			$ 640,300
Term Loan, due 2024
Debt
Total debt	633,805			637,658
Gross amount	635,400			640,300
Debt discount	1,600			2,600
Term Loan, due 2024 | Summit Materials, LLC
Debt
Total debt	633,805			637,658
Gross amount	635,400	$ 635,400		640,300
Debt discount	1,600			2,600
8 1/2% Senior Notes, due 2022
Debt
Total debt	$ 250,000			250,000
Debt instrument interest rate (as a percent)	8.50%
8 1/2% Senior Notes, due 2022 | Summit Materials, LLC
Debt
Total debt	$ 250,000			$ 250,000
Debt instrument interest rate (as a percent)	8.50%			8.50%
6 1/8% Senior Notes, due 2023
Debt
Total debt	$ 648,650			$ 648,407
Gross amount	650,000			650,000
Debt discount	$ 1,400			$ 1,600
Debt instrument interest rate (as a percent)	6.125%			6.125%
6 1/8% Senior Notes, due 2023 | Summit Materials, LLC
Debt
Total debt	$ 648,650			$ 648,407
Gross amount	650,000			650,000
Debt discount	$ 1,400			$ 1,600
Debt instrument interest rate (as a percent)	6.125%			6.125%
5 1/8% Senior Notes, due 2025
Debt
Total debt	$ 300,000
Debt instrument interest rate (as a percent)	5.125%
5 1/8% Senior Notes, due 2025 | Summit Materials, LLC
Debt
Total debt	$ 300,000
Debt instrument interest rate (as a percent)	5.125%

XML

Debt - Schedule of Contractual Payments of Long-Term Debt (Details) $ in Thousands	Dec. 30, 2017 USD ($)
Contractual payments of long-term debt
2018	$ 4,765
2019	6,354
2020	7,942
2021	6,354
2022	256,354
Thereafter	1,553,606
Total	1,835,375
Less: Original issue net discount	(2,920)
Less: Capitalized loan costs	(16,857)
Total debt	1,815,598
Summit Materials, LLC
Contractual payments of long-term debt
2018	4,765
2019	6,354
2020	7,942
2021	6,354
2022	256,354
Thereafter	1,553,606
Total	1,835,375
Less: Original issue net discount	(2,920)
Less: Capitalized loan costs	(16,857)
Total debt	$ 1,815,598

XML

Debt - Senior Notes - Additional Information (Details) - USD ($) $ in Thousands					1 Months Ended	12 Months Ended
	Jun. 01, 2017	Mar. 08, 2016	Aug. 13, 2015	Jul. 17, 2015	Aug. 13, 2015	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016	Nov. 28, 2015	Aug. 22, 2015	Apr. 25, 2015
Davenport Assets
Debt
Purchase price			$ 80,000	$ 370,000	$ 450,000
8 1/2% Senior Notes, due 2022
Debt
Senior notes, interest rate (as a percent)						8.50%
6 1/8% Senior Notes, due 2023
Debt
Senior notes, interest rate (as a percent)						6.125%	6.125%
5 1/8% Senior Notes, due 2025
Debt
Senior notes, interest rate (as a percent)						5.125%
10 1/2% Senior Notes, due 2020
Debt
Senior notes, interest rate (as a percent)								10.50%
Senior notes, aggregate principal amount redeemed									$ 153,800	$ 183,000	$ 288,200
Charges on redemption							$ 56,500
Prepayment premium							66,600
Write off of deferred financing fees							11,900
Net benefit from the write-off the original issuance premium and discount							$ 22,000
Issuers | 8 1/2% Senior Notes, due 2022
Debt
Debt instrument, face amount		$ 250,000
Senior notes, interest rate (as a percent)		8.50%
Percentage of par value of senior notes		100.00%
Proceeds net of related fees and expenses		$ 246,300
Issuers | 6 1/8% Senior Notes, due 2023
Debt
Debt instrument, face amount								$ 650,000
Senior notes, interest rate (as a percent)								6.125%
Issuers | 6 1/8% Senior Notes, due 2023, issued at par
Debt
Debt instrument, face amount								$ 350,000
Issuers | 6 1/8% Senior Notes, due 2023, , issued at 99.375% of par
Debt
Debt instrument, face amount								$ 300,000
Percentage of par value of senior notes								99.375%
Issuers | 5 1/8% Senior Notes, due 2025
Debt
Debt instrument, face amount	$ 300,000
Senior notes, interest rate (as a percent)	5.125%
Percentage of par value of senior notes	100.00%
Proceeds net of related fees and expenses	$ 295,400
Summit Materials, LLC
Debt
Write off of deferred financing fees						$ 1,683
Summit Materials, LLC | Davenport Assets
Debt
Purchase price			$ 450,000	$ 370,000
Summit Materials, LLC | 8 1/2% Senior Notes, due 2022
Debt
Senior notes, interest rate (as a percent)						8.50%	8.50%
Summit Materials, LLC | 6 1/8% Senior Notes, due 2023
Debt
Senior notes, interest rate (as a percent)						6.125%	6.125%
Summit Materials, LLC | 5 1/8% Senior Notes, due 2025
Debt
Senior notes, interest rate (as a percent)						5.125%

XML

Debt - Senior Secured Credit Facilities - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Nov. 21, 2017	Jan. 19, 2017
Debt
Outstanding principal amount	$ 1,835,375
Term Loan, due 2024
Debt
Outstanding principal amount	635,400	$ 640,300
Summit Materials, LLC
Debt
Outstanding principal amount	1,835,375
Financing fees recognized	$ 3,990	3,403
Summit Materials, LLC | Senior Secured Credit Facilities
Debt
First lien leverage ratio	4.75
Summit Materials, LLC | Term Loan, due 2022
Debt
Outstanding principal amount				$ 640,300
Summit Materials, LLC | Term Loan, due 2024
Debt
Debt instrument, face amount	$ 650,000
Outstanding principal amount	635,400	$ 640,300	$ 635,400
Summit Materials, LLC | Revolving Credit Facility
Debt
Maximum borrowing capacity	$ 235,000
Quarterly principal repayments percentage	0.25%
Remaining borrowing capacity	$ 218,900
Summit Materials, LLC | Revolving Credit Facility | LIBOR
Debt
Basis spread on variable rate	3.25%
Summit Materials, LLC | Revolving Credit Facility | LIBOR Plus 1%
Debt
Basis spread on variable rate	2.25%
Percentage added to base rate	1.00%
Summit Materials, LLC | Revolving Credit Facility | Federal funds rate
Debt
Basis spread on variable rate	0.50%
Summit Materials, LLC | Letter of Credit
Debt
Amount outstanding	$ 16,100

XML

Debt - Summary of Activity for Deferred Financing Fees (Details) - Summit Materials, LLC - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016
Deferred finance costs
Beginning balance	$ 18,290	$ 15,892
Loan origination fees	6,416	5,801
Amortization	(3,990)	(3,403)
Write off of deferred financing fees	(1,683)
Ending balance	$ 19,033	$ 18,290

XML

Debt - Other - Additional Information (Details) CAD in Millions	Jan. 15, 2015 CAD
Canadian subsidiary credit agreement
Debt
Revolving credit commitment	CAD 6.0
Canadian subsidiary credit agreement, Capital equipment
Debt
Revolving credit commitment	CAD 0.5
Basis spread on variable rate	0.90%
Canadian subsidiary credit agreement, Guarantees
Debt
Revolving credit commitment	CAD 0.4
Prime rate | Canadian subsidiary credit agreement, Operating activities
Debt
Basis spread on variable rate	0.20%

XML

Income Taxes - Components of Income Tax Benefit (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Provision for income taxes:
Current	$ 2,530	$ 2,835	$ 1,605
Deferred	(286,507)	(8,134)	(19,868)
Income tax expense (benefit)	(283,977)	(5,299)	(18,263)
Valuation allowance	1,675	502,839	263,825
Summit Materials, LLC
Provision for income taxes:
Current	2,762	2,835	1,605
Deferred	(23,107)	(8,134)	(19,868)
Income tax expense (benefit)	(20,345)	(5,282)	$ (18,263)
Valuation allowance	$ 1,675	$ 2,677

XML

Income Taxes - Schedule of Income Tax Benefit (Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Line Items]
Income tax benefit (expense) at federal statutory tax rate	$ (55,365)	$ 14,290	$ (6,718)
Less: Income tax (benefit) expense at federal statutory tax rate for LLC entities	(2,123)	(10,608)	(22,649)
State and local income taxes	(5,209)	2,490	(2,389)
Permanent differences	(4,410)	(5,902)	2,147
Effective tax rate change	216,904	(1,432)	10
Tax receivable agreement expense	104,804	5,228
Change in valuation allowance	(500,162)	239,008	261,302
Impact of LP Unit ownership change	(31,790)	(252,456)	(249,400)
Other	(6,626)	4,083	(566)
Income tax expense (benefit)	$ (283,977)	(5,299)	(18,263)
U.S. statutory rate	35.00%
Summit Materials, LLC
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Line Items]
Income tax benefit (expense) at federal statutory tax rate	$ 39,797	19,882	(6,412)
Less: Income tax (benefit) expense at federal statutory tax rate for LLC entities	(36,171)	(21,042)	(9,908)
State and local income taxes	1,751	1,279	(2,389)
Permanent differences	(630)	(1,726)	2,147
Effective tax rate change	(24,243)	(1,432)	10
Change in valuation allowance		148
Other	(849)	(2,408)	(1,711)
Income tax expense (benefit)	$ (20,345)	$ (5,282)	$ (18,263)
U.S. statutory rate	35.00%

XML

Income Taxes - Components of Net Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Deferred tax (liabilities) assets:
Net intangible assets	$ 316,950	$ 591,464
Accelerated depreciation	(147,943)	(184,794)
Net operating loss	94,751	71,379
Investment in limited partnership	(14,467)	(13,633)
Mining reclamation reserve	1,239	1,220
Working capital (e.g., accrued compensation, prepaid assets)	(35,237)	(41,529)
Less valuation allowance on loss carryforwards	(1,675)	(502,839)	$ (263,825)
Net deferred tax asset, net	284,092	4,326
Less foreign deferred tax liability included in other non-current liabilities	(3,992)
Net deferred tax asset	280,100	4,326
Income tax expense (benefit)	(283,977)	(5,299)	(18,263)
Summit Materials, LLC
Deferred tax (liabilities) assets:
Net intangible assets	(1,256)	(999)
Accelerated depreciation	(47,920)	(58,094)
Net operating loss	20,671	24,884
Investment in limited partnership	(10,800)	(12,899)
Mining reclamation reserve	488	582
Working capital (e.g., accrued compensation, prepaid assets)	(1,267)	(1,386)
Less valuation allowance on loss carryforwards	(1,675)	(2,677)
Deferred tax liabilities, net	(37,550)	(45,140)
Net deferred tax liability, net	(39,225)	(47,817)
Income tax expense (benefit)	$ (20,345)	$ (5,282)	$ (18,263)

XML

Income Taxes - Deferred Tax Assets and Tax Receivable Agreement (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2018	Dec. 31, 2018	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Income Taxes
Income tax expense (benefit)			$ (283,977)	$ (5,299)	$ (18,263)
U.S. statutory rate			35.00%
Reduction of net deferred tax assets due to change in statutory rate	$ 216,900
Deferred tax assets subject to TRA			$ 390,000
Deferred tax assets subject to TRA, net			$ 317,000
Percentage of benefits to be paid on tax receivable agreement			85.00%
Tax receivable agreement liability			$ 331,340	58,145
Tax receivable agreement expense			271,016	14,938
Deferred tax asset, Investment in limited partnership			12,400	422,500	216,300
Alternative minimum tax credit			200
Deferred tax liability, fixed assets			147,943	184,794
Valuation Allowance
Valuation allowance			(1,675)	(502,839)	(263,825)
Exchange of L.P. Units			(31,790)	(252,456)
Release of valuation allowance and other			531,952	13,448
Other			$ 1,002	(6)
Forecast
Income Taxes
U.S. statutory rate		21.00%
Tax Receivable Agreement
Income Taxes
Percentage of benefits to be paid on tax receivable agreement			85.00%
Reclassification amount				58,100
Tax benefit deemed probable			$ 501,800
Tax Receivable Agreement | Other noncurrent liabilities
Income Taxes
Tax receivable agreement liability			331,900	59,300
Tax Receivable Agreement | Accrued expenses.
Income Taxes
Tax receivable agreement liability			600	1,100
Federal
Income Taxes
Net operating loss carryforwards			374,500
Summit Materials, LLC
Income Taxes
Income tax expense (benefit)			$ (20,345)	(5,282)	$ (18,263)
U.S. statutory rate			35.00%
Net operating loss carryforwards			$ 79,600
Alternative minimum tax credit			200
Deferred tax liability, fixed assets			47,920	58,094
Operating loss carryforwards valuation allowance recorded			1,700	2,700
Distributions to LP Unitholders			49,200	39,700
Distributions to Summit Inc.			47,500	26,700
Valuation Allowance
Valuation allowance			(1,675)	(2,677)
Summit Materials, LLC | Federal
Valuation Allowance
Loss carryforwards			(84,600)
Summit Materials, LLC | State and Local Jurisdiction
Valuation Allowance
Loss carryforwards			(63,700)
Summit Holdings LP
Income Taxes
Distributions to LP Unitholders			$ 1,700	$ 13,000

XML

Net Earnings Per Share - Schedule of Basic to Diluted Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 31, 2016	Oct. 01, 2016	Jul. 02, 2016	Apr. 02, 2016	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Reconciliation of basic to diluted loss per share
Net income (loss) attributable to Summit Inc.	$ 43,010	$ 81,264	$ 50,000	$ (52,444)	$ (290)	$ 44,820	$ 13,371	$ (21,118)	$ 121,830	$ 36,783	$ 27,718
Add: Noncontrolling interest impact of LP Unit conversion											17,803
Diluted net income attributable to Summit Inc.									$ 121,830	$ 36,783	$ 45,521
LP Units
Reconciliation of basic to diluted loss per share
Add: weighted average of LP Units											50,059,648
Anti dilutive shares excluded from calculation of earnings per share									4,371,705	32,327,907
Stock options
Reconciliation of basic to diluted loss per share
Add: Share-based payment arrangements									308,355	140,142
Anti dilutive shares excluded from calculation of earnings per share											2,265,584
Warrants
Reconciliation of basic to diluted loss per share
Add: warrants									42,035	16,123	37,714
Restricted stock
Reconciliation of basic to diluted loss per share
Add: Share-based payment arrangements									308,221	240,633	7,523
Performance stock units
Reconciliation of basic to diluted loss per share
Add: Share-based payment arrangements									135,849	86,568
Common Class A
Reconciliation of basic to diluted loss per share
Weighted average shares of Class A common stock outstanding									108,696,438	70,355,042	40,888,437
Basic income (loss) per share									$ 1.12	$ 0.52	$ 0.68
Weighted average dilutive shares outstanding									109,490,898	70,838,508	90,993,322
Diluted earnings per share									$ 1.11	$ 0.52	$ 0.50
Summit Materials, LLC
Reconciliation of basic to diluted loss per share
Net income (loss) attributable to Summit Inc.									$ 134,068	$ 62,071	$ 4,182

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Stockholders' Equity - General Information and Equity Offerings (Details) $ / shares in Units, $ in Thousands									1 Months Ended		12 Months Ended
	Jan. 10, 2017 USD ($) $ / shares shares	Dec. 28, 2016 shares	Dec. 22, 2016 shares	Aug. 13, 2015 USD ($)	Aug. 11, 2015 USD ($) $ / shares shares	Jul. 17, 2015 USD ($) facility	Mar. 17, 2015 USD ($) item shares	Mar. 11, 2015 USD ($) $ / shares shares	Aug. 13, 2015 USD ($)	Apr. 25, 2015 USD ($)	Dec. 30, 2017 USD ($) segment facility shares	Dec. 31, 2016 shares	Jan. 02, 2016 USD ($) shares	Nov. 28, 2015 USD ($)	Aug. 22, 2015 USD ($)	Mar. 16, 2015 shares	May 31, 2010 shares
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Number of plants | facility											2
Number of operating segments | segment											3
Length of fiscal quarter											91 days
Interval period for 53 week fiscal year											7 years
Equity Offering
Proceeds from sale of common stock, net of underwriting discounts | $											$ 237,600		$ 1,037,444
Redeemable Noncontrolling Interest
Cash consideration | $											$ 532		$ 497,848
Voting power (as a percent)											96.80%	95.00%	51.00%
Minimum
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Length of fiscal year											364 days
Maximum
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Length of fiscal year											371 days
Continental Cement
Redeemable Noncontrolling Interest
Aggregate consideration for acquiring noncontrolling interests | $							$ 64,100
Cash consideration | $							35,000
Consideration, Principal amount of note issued | $							$ 15,000
Economic interest of redeemable noncontrolling interest, approximately																70.00%
Ownership Percentage																70.00%
Davenport Assets
Equity Offering
Cash paid for acquisitions | $				$ 80,000		$ 370,000			$ 450,000
Summit Materials, LLC
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Number of plants | facility											2
Number of operating segments | segment											3
Length of fiscal quarter											91 days
Interval period for 53 week fiscal year											7 years
Redeemable Noncontrolling Interest
Cash consideration | $											$ 532
Summit Materials, LLC | Minimum
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Length of fiscal year											364 days
Summit Materials, LLC | Maximum
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Length of fiscal year											371 days
Summit Materials, LLC | Continental Cement
Redeemable Noncontrolling Interest
Noncontrolling interest elimination (as a percent)											30.00%
Summit Materials, LLC | Ohio Valley Asphalt
Redeemable Noncontrolling Interest
Noncontrolling interest elimination (as a percent)											20.00%
Summit Materials, LLC | Davenport Assets
Equity Offering
Cash paid for acquisitions | $				450,000		$ 370,000
Summit Holdings LP
Redeemable Noncontrolling Interest
Number of LP Units outstanding								69,000,000
Voting power (as a percent)											100.00%
Noncontrolling interest elimination (as a percent)											3.20%	5.00%
Summit Materials, Inc. and Summit Holdings, LP
Equity Offering
Common stock issued (in shares)											10,000,000	1,038
Redeemable Noncontrolling Interest
Beginning Balance (in shares)											102,705,575	102,678,517
Issuance of Shares (in shares)											10,000,000	1,038
Other (in shares)											1,334,639	26,020
Ending Balance (in shares)											114,040,214	102,705,575	102,678,517
Common Class A
Equity Offering
Common stock, shares outstanding											110,350,594	96,033,222
Redeemable Noncontrolling Interest
Beginning Balance (in shares)											96,033,222
Ending Balance (in shares)											110,350,594	96,033,222
Dividend (in shares)		1,135,692	1,521,056
Common Class A | Continental Cement
Redeemable Noncontrolling Interest
Consideration, shares issued							1,029,183
Number of class units issued																100
Common Class A | Summit Holdings LP
Equity Offering
Common stock issued (in shares)											10,000,000	1,038
Redeemable Noncontrolling Interest
Beginning Balance (in shares)											97,554,278	52,402,692
Issuance of Shares (in shares)											10,000,000	1,038
Exchanges during period											1,461,677	45,124,528
Other (in shares)											1,334,639	26,020
Ending Balance (in shares)											110,350,594	97,554,278	52,402,692
Common Class B
Equity Offering
Common stock, shares outstanding											100	100
Redeemable Noncontrolling Interest
Beginning Balance (in shares)											100
Ending Balance (in shares)											100	100
Common Class B | Continental Cement
Redeemable Noncontrolling Interest
Number of class units issued																	100,000,000
Economic interest of redeemable noncontrolling interest, approximately																	30.00%
Ownership Percentage																	30.00%
10 1/2% Senior Notes, due 2020
Equity Offering
Senior notes, aggregate principal amount redeemed | $										$ 288,200				$ 153,800	$ 183,000
Senior notes, interest rate (as a percent)													10.50%
Non interest bearing notes payable | Continental Cement
Redeemable Noncontrolling Interest
Annual installments amount of non-interest bearing notes payable | $							$ 2,500
Number of annual installments | item							6
IPO
Equity Offering
Proceeds from sale of common stock, net of underwriting discounts | $								$ 433,000
IPO | Continental Cement
Equity Offering
Class B units purchased (in shares)							71,428,571
IPO | Affiliates of the Sponsors Blackstone Management Partners and Silverhawk Summit | Termination fee paid to related parties
Equity Offering
Related party expense | $							$ 13,800
IPO | Affiliates of the Sponsors Blackstone Management Partners and Silverhawk Summit | Summit Materials, LLC | Termination fee paid to related parties
Equity Offering
Related party expense | $							$ 13,800
IPO | Common Class A
Equity Offering
Common stock issued (in shares)								25,555,555
Offering price (in dollars per share) | $ / shares								$ 18.00
Redeemable Noncontrolling Interest
Issuance of Shares (in shares)								25,555,555
IPO | Common Class B
Equity Offering
Common stock issued (in shares)								69,007,297
Redeemable Noncontrolling Interest
Issuance of Shares (in shares)								69,007,297
IPO | 10 1/2% Senior Notes, due 2020
Equity Offering
Senior notes, aggregate principal amount redeemed | $										$ 288,200
Senior notes, interest rate (as a percent)										10.50%
Debt Instrument, redemption premium | $										$ 38,200
Accrued and unpaid interest | $										$ 5,200
Follow on Public Offering | Summit Holdings LP
Equity Offering
Number of Summit LP units purchased by Company, newly issued units (in shares)					3,750,000
Number of Summit LP units purchased by Company, from previous holders (in shares)					18,675,000
Follow on Public Offering | Davenport Assets
Equity Offering
Cash paid for acquisitions | $					$ 80,000
Redeemable Noncontrolling Interest
Number of terminals acquired (in facilities) | facility						7
Follow on Public Offering | Summit Materials, LLC | Davenport Assets
Equity Offering
Cash paid for acquisitions | $				$ 80,000
Follow on Public Offering | Common Class A
Equity Offering
Proceeds from sale of common stock, net of underwriting discounts | $	$ 237,600				$ 555,800
Common stock issued (in shares)	10,000,000				22,425,000
Offering price (in dollars per share) | $ / shares	$ 24.05				$ 25.75
Redeemable Noncontrolling Interest
Issuance of Shares (in shares)	10,000,000				22,425,000
LP Units
Redeemable Noncontrolling Interest
Number of LP Units outstanding											3,689,620	5,151,297	50,275,825
Number of LP Units exchanged											(1,461,677)	(45,124,528)

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Stockholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016
Changes in each component of accumulated other comprehensive loss
Beginning balance	$ 842,044
Ending balance	1,258,543	$ 842,044
Accumulated Other Comprehensive Operations
Changes in each component of accumulated other comprehensive loss
Beginning balance	(2,249)	(2,795)
Curtailment adjustment	309
Liability adjustment	605	401
Foreign currency translation adjustment	7,743	273
Income (loss) on cash flow hedges	978	(128)
Ending balance	7,386	(2,249)
Change in retirement plans
Changes in each component of accumulated other comprehensive loss
Beginning balance	1,450	1,049
Curtailment adjustment	309
Liability adjustment	605	401
Ending balance	2,364	1,450
Foreign currency translation adjustment
Changes in each component of accumulated other comprehensive loss
Beginning balance	(3,106)	(3,379)
Foreign currency translation adjustment	7,743	273
Ending balance	4,637	(3,106)
Cash flow hedge adjustments
Changes in each component of accumulated other comprehensive loss
Beginning balance	(593)	(465)
Income (loss) on cash flow hedges	978	(128)
Ending balance	385	(593)
Summit Materials, LLC | Accumulated Other Comprehensive Operations
Changes in each component of accumulated other comprehensive loss
Beginning balance	(27,444)	(28,466)
Curtailment adjustment	429
Liability adjustment	(699)	426
Foreign currency translation adjustment	7,768	2,125
Income (loss) on cash flow hedges	1,413	(1,529)
Ending balance	(17,135)	(27,444)
Summit Materials, LLC | Change in retirement plans
Changes in each component of accumulated other comprehensive loss
Beginning balance	(7,181)	(7,607)
Curtailment adjustment	429
Liability adjustment	(699)	426
Ending balance	(6,053)	(7,181)
Summit Materials, LLC | Foreign currency translation adjustment
Changes in each component of accumulated other comprehensive loss
Beginning balance	(17,790)	(19,915)
Foreign currency translation adjustment	7,768	2,125
Ending balance	(10,022)	(17,790)
Summit Materials, LLC | Cash flow hedge adjustments
Changes in each component of accumulated other comprehensive loss
Beginning balance	(2,473)	(944)
Income (loss) on cash flow hedges	1,413	(1,529)
Ending balance	$ (1,060)	$ (2,473)

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Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Cash payments:
Interest	$ 96,320	$ 82,540	$ 89,102
Income taxes	1,711	2,645	1,685
Non cash financing activities:
Purchase of noncontrolling interest	(716)		(29,102)
Stock Dividend	(45,023)	(26,939)	(16,847)
Exchange of LP units to Common A Stock	41,126	953,752
Summit Materials, LLC
Cash payments:
Interest	96,320	82,540	89,102
Income taxes	1,711	$ 2,645	1,685
Non cash financing activities:
Purchase of noncontrolling interest	$ (716)		$ (64,102)

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Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 30, 2017 USD ($) $ / shares shares	Dec. 31, 2016 USD ($) shares	Jan. 02, 2016 USD ($) $ / shares shares	Mar. 11, 2015 $ / shares shares
Reorganization
Exchange of LP units to Common A Stock | $	$ 41,126	$ 953,752
General and administrative expenses
Reorganization
Modification charge recognized in general and administrative costs | $			$ 14,500
2015 Omnibus Equity Incentive Plan
Reorganization
Number of shares authorized			13,500,000
Shares available for grant	8,600,000
2015 Omnibus Equity Incentive Plan | Leverage restoration options, time-vesting
Reorganization
Stock units vesting period			4 years
2015 Omnibus Equity Incentive Plan | Leverage restoration options, performance-vesting
Reorganization
Performance objective threshold waived (as a percent)			3.0
2015 Omnibus Equity Incentive Plan | Common Class A
Reorganization
Options, Granted (in dollars per share) | $ / shares			$ 18.00
Stock units vesting period			4 years
Awards granted			240,000
Stock option exercise price (in dollars per share) | $ / shares			$ 18.00
2015 Omnibus Equity Incentive Plan | Common Class A | Warrants issued to holders of Class C interests
Reorganization
Number of warrants (in shares)				160,333
Exercise price per share under the Omnibus Incentive Plan (in dollars per share) | $ / shares				$ 18.00
2015 Omnibus Equity Incentive Plan | Common Class A | Leverage restoration options issued to holders of Class D interests
Reorganization
Number of warrants (in shares)				4,400,000
Exercise price per share under the Omnibus Incentive Plan (in dollars per share) | $ / shares				$ 18.00
2015 Omnibus Equity Incentive Plan | General and administrative expenses | Leverage restoration options, performance-vesting
Reorganization
Performance target expense | $			$ 37,700
Stock options
Reorganization
Options, Granted (in dollars per share) | $ / shares	$ 12.13
Awards granted	377,630
Stock option exercise price (in dollars per share) | $ / shares	$ 12.13
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Dividend yield (as a percent)	0.00%	0.00%	0.00%
Volatility (as a percent)	47.00%	48.00%	50.00%
Expected term	7 years	10 years
Restricted stock
Reorganization
Weighted-average grant-date fair value | $ / shares	$ 24.01
Granted (in shares)	307,905
Awards outstanding	508,586	352,602
Number of units, Vested (in shares)	145,812
Restricted stock | 2015 Omnibus Equity Incentive Plan
Reorganization
Stock units vesting period	1 year
Granted (in shares)	34,928	28,140
LP Units and options | 2015 Omnibus Equity Incentive Plan
Reorganization
Unamortized deferred compensation | $	$ 2,300
Summit Holdings LP
Reorganization
Number of LP Units outstanding				69,000,000
Summit Holdings LP | Leverage restoration options, time-vesting
Reorganization
Number of LP Units outstanding				575,256
Summit Holdings LP | Leverage restoration options, performance-vesting
Reorganization
Number of LP Units outstanding	40,000			2,400,000

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Stock-Based Compensation - Summary of Information for Class D Unit Interests (Details) - $ / shares	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Stock options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options, Beginning balance (in shares)	4,990,443
Options, Granted (in shares)	377,630
Options, Forfeited (in shares)	(11,339)
Options, Exercised (in shares)	(1,203,121)
Options, Ending balance (in shares)	4,153,613	4,990,443
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Options, Beginning balance (in dollars per share)	$ 8.95
Options, Granted (in dollars per share)	12.13
Options, Forfeited (in dollars per share)	10.91
Options, Exercised (in dollars per share)	8.90
Options, Ending balance (in dollars per share)	$ 9.13	$ 8.95
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Awards granted	377,630
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of units, Beginning balance (in shares)	352,602
Granted (in shares)	307,905
Number of units, Forfeited (in shares)	(6,109)
Number of units, Vested (in shares)	(145,812)
Number of units, Ending balance (in shares)	508,586	352,602
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Number of units, Beginning balance (in dollars per share)	$ 17.77
Number of units, Granted (in dollars per share)	24.01
Number of units, Forfeited (in dollars per share)	20.37
Number of units, Vested (in dollars per share)	17.68
Number of units, Ending balance (in dollars per share)	$ 20.14	$ 17.77
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of units, Beginning balance (in shares)	130,691
Granted (in shares)	85,530
Number of units, Forfeited (in shares)	(4,766)
Number of units, Ending balance (in shares)	211,455	130,691
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Number of units, Beginning balance (in dollars per share)	$ 18.71
Number of units, Granted (in dollars per share)	31.58
Number of units, Forfeited (in dollars per share)	18.71
Number of units, Ending balance (in dollars per share)	$ 23.69	$ 18.71
Warrants
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of units, Beginning balance (in shares)	160,333
Number of units, Exercised (in shares)	(57,555)
Number of units, Ending balance (in shares)	102,778	160,333
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Number of units, Beginning balance (in dollars per share)	$ 18.00
Number of units, Exercised (in dollars per share)	18.00
Number of units, Ending balance (in dollars per share)	$ 18.00	$ 18.00
2015 Omnibus Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Number of shares authorized			13,500,000
2015 Omnibus Equity Incentive Plan | Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Granted (in shares)	34,928	28,140
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Stock units vesting period	1 year

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Stock-Based Compensation - Weighted Average Assumptions Used to Estimate the Fair Value of Grants (Details)	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Stock options
Class D Units
Risk-free interest rate, Minimum	2.06%	1.75%	1.68%
Risk-free interest rate, Maximum	2.31%	1.97%	1.92%
Dividend yield (as a percent)	0.00%	0.00%	0.00%
Volatility (as a percent)	47.00%	48.00%	50.00%
Expected term	7 years	10 years
Stock options | Minimum
Class D Units
Expected term			7 years
Stock options | Maximum
Class D Units
Expected term			10 years
Performance stock units
Class D Units
Risk-free interest rate (as a percent)	1.45%	0.88%
Dividend yield (as a percent)	0.00%	0.00%
Volatility (as a percent)	39.00%	37.00%
Expected term	3 years	3 years

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Stock-Based Compensation - Compensation and Intrinsic Value (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 21.1	$ 49.9	$ 19.9
Unrecognized compensation cost	$ 23.7
Weighted average contractual term, unrecognized compensation cost	1 year 7 months 6 days
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average remaining contractual term	7 years 6 months
Weighted average strike price (in dollars per share)	$ 18.46
Intrinsic value, options outstanding	$ 53.9
Weighted average strike price, exercisable (in dollars per share)	$ 17.92
Weighed average remaining contractual term, exercisable	7 years 3 months 18 days
Exercisable (in shares)	1.2
Intrinsic value, exercisable stock options	$ 16.8
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average remaining contractual term	8 years 9 months 18 days
Intrinsic value, units outstanding	$ 16.0
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average remaining contractual term	8 years 7 months 6 days
Intrinsic value, units outstanding	$ 6.6

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Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Defined Benefit Plan Disclosure [Line Items]
Expense for defined contribution plans	$ 9.3	$ 8.6	$ 7.1
Actuarial loss (credit) expected to be amortized from AOCI	0.3
Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Expense for defined contribution plans	$ 9.3	$ 8.6	$ 7.1

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Employee Benefit Plans - Obligations and Funded Status (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Change in fair value of plan assets:
Beginning of period	$ 18,395
End of period	19,012	$ 18,395
Summit Materials, LLC
Change in benefit obligations:
Beginning of period	12,770
Service cost	184
Interest cost	365
Actuarial loss (gain)	(338)
Change in plan provision	(2,325)
Benefits paid	(863)
End of period	9,793	12,770
Change in fair value of plan assets:
Employer contributions	863
Benefits paid	(863)
Funded status of plans	(9,793)
Current liabilities	(702)
Noncurrent liabilities	(9,091)
Liability recognized	(9,793)
Amounts recognized in accumulated other comprehensive income
Net actuarial loss	2,285
Prior service cost	(2,413)
Total amount recognized	(128)
Pension Benefits
Change in benefit obligations:
Beginning of period	27,608	27,914
Service cost	285	279	$ 159
Interest cost	998	1,049	1,041
Actuarial loss (gain)	1,182	22
Curtailments	(430)
Benefits paid	(1,659)	(1,656)
End of period	27,984	27,608	27,914
Change in fair value of plan assets:
Beginning of period	18,395	18,336
Actual return on plan assets	1,415	719
Employer contributions	861	996
Benefits paid	(1,659)	(1,656)
End of period	19,012	18,395	18,336
Funded status of plans	(8,972)	(9,213)
Noncurrent liabilities	(8,972)	(9,213)
Liability recognized	(8,972)	(9,213)
Amounts recognized in accumulated other comprehensive income
Net actuarial loss	9,341	9,248
Total amount recognized	9,341	9,248
Pension Benefits | Summit Materials, LLC
Change in benefit obligations:
Beginning of period	27,608	27,914
Service cost	285	279	159
Interest cost	998	1,049	1,041
Actuarial loss (gain)	1,182	22
Curtailments	(430)
Benefits paid	(1,659)	(1,656)
End of period	27,984	27,608	27,914
Change in fair value of plan assets:
Beginning of period	18,395	18,336
Actual return on plan assets	1,415	719
Employer contributions	861	996
Benefits paid	(1,659)	(1,656)
End of period	19,012	18,395	18,336
Funded status of plans	(8,972)	(9,213)
Noncurrent liabilities	(8,972)	(9,213)
Liability recognized	(8,972)	(9,213)
Amounts recognized in accumulated other comprehensive income
Net actuarial loss	9,341	9,248
Total amount recognized	9,341	9,248
Healthcare & Life Ins
Change in benefit obligations:
Beginning of period	12,770	13,458
Service cost	184	230	149
Interest cost	365	470	447
Actuarial loss (gain)	(338)	(682)
Change in plan provision	(2,325)	65
Benefits paid	(863)	(771)
End of period	9,793	12,770	13,458
Change in fair value of plan assets:
Employer contributions	863	771
Benefits paid	(863)	(771)
Funded status of plans	(9,793)	(12,770)
Current liabilities	(702)	(844)
Noncurrent liabilities	(9,091)	(11,926)
Liability recognized	(9,793)	(12,770)
Amounts recognized in accumulated other comprehensive income
Net actuarial loss	2,285	3,060
Prior service cost	(2,413)	(1,968)
Total amount recognized	(128)	1,092
Healthcare & Life Ins | Summit Materials, LLC
Change in benefit obligations:
Beginning of period	12,770	13,458
Service cost	184	230	149
Interest cost	$ 365	470	447
Actuarial loss (gain)		(682)
Change in plan provision		65
Benefits paid		(771)
End of period		12,770	$ 13,458
Change in fair value of plan assets:
Employer contributions		771
Benefits paid		(771)
Funded status of plans		(12,770)
Current liabilities		(844)
Noncurrent liabilities		(11,926)
Liability recognized		(12,770)
Amounts recognized in accumulated other comprehensive income
Net actuarial loss		3,060
Prior service cost		(1,968)
Total amount recognized		$ 1,092

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Employee Benefit Plans - Amounts Recognized in Other Comprehensive (Gain) Loss (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Amounts recognized in other comprehensive (income) loss:
Actuarial loss (credit) expected to be amortized from AOCI	$ 300
Prior Service cost (credit) expected to be amortized from AOCI	(200)
Pension Benefits
Amounts recognized in other comprehensive (income) loss:
Net actuarial (loss) gain	1,068	$ 688	$ (16)
Curtailment benefit	(429)
Amortization of gain	(547)	(463)	(326)
Total amount recognized	92	225	(342)
Pension Benefits | Summit Materials, LLC
Amounts recognized in other comprehensive (income) loss:
Net actuarial (loss) gain	1,068	688	(16)
Curtailment benefit	(429)
Amortization of gain	(547)	(463)	(326)
Total amount recognized	92	225	(342)
Healthcare & Life Ins
Amounts recognized in other comprehensive (income) loss:
Net actuarial (loss) gain	(338)	(682)	(1,720)
Prior service cost	(572)	64
Amortization of prior year service cost	168	174	174
Amortization of gain	(64)	(207)	(235)
Adjustment to plan benefits	(414)
Total amount recognized	(1,220)	(651)	(1,781)
Healthcare & Life Ins | Summit Materials, LLC
Amounts recognized in other comprehensive (income) loss:
Net actuarial (loss) gain	(338)	(682)	(1,720)
Prior service cost	(572)	64
Amortization of prior year service cost	168	174	174
Amortization of gain	(64)	(207)	(235)
Adjustment to plan benefits	(414)
Total amount recognized	$ (1,220)	$ (651)	$ (1,781)

XML

Employee Benefit Plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Summit Materials, LLC
Components of net periodic benefit cost:
Service cost	$ 184
Interest cost	365
Pension Benefits
Components of net periodic benefit cost:
Service cost	285	$ 279	$ 159
Interest cost	998	1,049	1,041
Amortization of gain	547	463	326
Expected return on plan assets	(1,302)	(1,386)	(1,385)
Net periodic benefit cost	528	405	141
Pension Benefits | Summit Materials, LLC
Components of net periodic benefit cost:
Service cost	285	279	159
Interest cost	998	1,049	1,041
Amortization of gain	547	463	326
Expected return on plan assets	(1,302)	(1,386)	(1,385)
Net periodic benefit cost	528	405	141
Healthcare & Life Ins
Components of net periodic benefit cost:
Service cost	184	230	149
Interest cost	365	470	447
Amortization of gain	64	207	235
Amortization of prior service credit	(168)	(174)	(174)
Net periodic benefit cost	445	733	657
Healthcare & Life Ins | Summit Materials, LLC
Components of net periodic benefit cost:
Service cost	184	230	149
Interest cost	365	470	447
Amortization of gain	64	207	235
Amortization of prior service credit	(168)	(174)	(174)
Net periodic benefit cost	$ 445	$ 733	$ 657

XML

Employee Benefit Plans - Weighted-Average Assumptions Used to Determine Benefit Obligations (Detail)	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Expected long-term rate of return on plan assets, benefit obligation	7.00%	7.00%
Pension Benefits | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Expected long-term rate of return on plan assets, benefit obligation	7.00%	7.00%
Pension Benefits | Minimum
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.23%	3.61%
Pension Benefits | Minimum | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.23%	3.61%
Pension Benefits | Maximum
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.37%	3.81%
Pension Benefits | Maximum | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.37%	3.81%
Healthcare & Life Ins | Minimum
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.20%	3.32%
Healthcare & Life Ins | Minimum | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.20%	3.32%
Healthcare & Life Ins | Maximum
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.25%	3.65%
Healthcare & Life Ins | Maximum | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.25%	3.65%

XML

Employee Benefit Plans - Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost (Detail)	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Expected long-term rate of return on plan assets, net periodic benefit cost	7.00%	7.30%	7.30%
Pension Benefits | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Expected long-term rate of return on plan assets, net periodic benefit cost	7.00%	7.30%	7.30%
Pension Benefits | Minimum
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.61%	3.74%	3.50%
Pension Benefits | Minimum | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.61%	3.74%	3.50%
Pension Benefits | Maximum
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.81%	3.97%	3.98%
Pension Benefits | Maximum | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.81%	3.97%	3.98%
Healthcare & Life Ins
Defined Benefit Plan Disclosure [Line Items]
Discount rate			3.39%
Healthcare & Life Ins | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Discount rate			3.39%
Healthcare & Life Ins | Minimum
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.54%	3.34%
Healthcare & Life Ins | Minimum | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.54%	3.34%
Healthcare & Life Ins | Maximum
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.65%	3.80%	3.52%
Healthcare & Life Ins | Maximum | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Discount rate	3.65%	3.80%	3.52%

XML

Employee Benefit Plans - Effects of One Percentage-Point Change in Assumed Health Care Cost Trend Rates (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Total service cost and interest cost components, Increase	$ 39	$ 55
APBO, Increase	857	1,197
Total service cost and interest cost components, Decrease	(33)	(47)
APBO, Decrease	$ (769)	$ (1,038)
Assumed health care cost trend rates	8.00%	8.00%
Assumed health care cost, grading	4.50%	4.50%
Summit Materials, LLC
Compensation and Retirement Disclosure [Abstract]
Assumed health care cost trend rates	8.00%	8.00%
Assumed health care cost, grading	4.50%	4.50%

XML

Employee Benefit Plans - Target Allocaiton of Company's Pension Plans' Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]
Actuarial loss (credit) expected to be amortized from AOCI	$ 300
Pension Benefits | Level 3
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan fair value of investments	$ 0	$ 0
Pension Benefits | Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Target allocation	30.00%
Pension Benefits | Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Target allocation	63.00%
Pension Benefits | Cash
Defined Benefit Plan Disclosure [Line Items]
Target allocation	5.00%
Pension Benefits | Precious Metals
Defined Benefit Plan Disclosure [Line Items]
Target allocation	2.00%
Summit Materials, LLC | Pension Benefits | Level 3
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan fair value of investments	$ 0	$ 0
Summit Materials, LLC | Pension Benefits | Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Target allocation	30.00%
Summit Materials, LLC | Pension Benefits | Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Target allocation	63.00%
Summit Materials, LLC | Pension Benefits | Cash
Defined Benefit Plan Disclosure [Line Items]
Target allocation	5.00%
Summit Materials, LLC | Pension Benefits | Precious Metals
Defined Benefit Plan Disclosure [Line Items]
Target allocation	2.00%

XML

Employee Benefit Plans - Fair Value of Company's Pension Plans' Assets (Detail) - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	$ 19,012	$ 18,395
Intermediate - Government
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	3,620	1,770
Intermediate - Corporate
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	3,872	2,658
Short Term - Government
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	497	912
Short Term - Corporate
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	1,702	3,613
U.S. Large Cap Value
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	1,765	1,181
U.S. Large Cap Growth
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	588	1,103
U.S. Mid Cap Value
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	586	577
U.S. Mid Cap Growth
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	586	546
U.S. Small Cap Value
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	571	551
U.S. Small Cap Growth
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	580	540
Managed Futures
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	392	366
International
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	1,547	1,099
Emerging Markets
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value		359
Commodities Broad Basket
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	801	707
Cash
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	1,522	2,094
Precious Metals
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	383	319
Pension Benefits
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	19,012	18,395	$ 18,336
Pension Benefits | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	19,012	18,395	$ 18,336
Pension Benefits | Intermediate - Government | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	3,620	1,770
Pension Benefits | Intermediate - Corporate | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	3,872	2,658
Pension Benefits | Short Term - Government | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	497	912
Pension Benefits | Short Term - Corporate | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	1,702	3,613
Pension Benefits | U.S. Large Cap Value | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	1,765	1,181
Pension Benefits | U.S. Large Cap Growth | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	588	1,103
Pension Benefits | U.S. Mid Cap Value | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	586	577
Pension Benefits | U.S. Mid Cap Growth | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	586	546
Pension Benefits | U.S. Small Cap Value | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	571	551
Pension Benefits | U.S. Small Cap Growth | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	580	540
Pension Benefits | Managed Futures | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	392	366
Pension Benefits | International | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	1,547	1,099
Pension Benefits | Emerging Markets | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value		359
Pension Benefits | Commodities Broad Basket | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	801	707
Pension Benefits | Cash | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	1,522	2,094
Pension Benefits | Precious Metals | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	383	319
Quoted Prices in Active Markets for Identical Assets (Level 1)
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	9,301	9,442
Quoted Prices in Active Markets for Identical Assets (Level 1) | Intermediate - Government
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	3,068
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short Term - Government
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	497
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Large Cap Value
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	1,765	1,181
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Large Cap Growth
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	588	1,103
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Mid Cap Value
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	586	577
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Mid Cap Growth
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	586	546
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Small Cap Value
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	571	551
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Small Cap Growth
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	580	540
Quoted Prices in Active Markets for Identical Assets (Level 1) | Managed Futures
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value		366
Quoted Prices in Active Markets for Identical Assets (Level 1) | International
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	677	1,099
Quoted Prices in Active Markets for Identical Assets (Level 1) | Emerging Markets
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value		359
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commodities Broad Basket
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value		707
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value		2,094
Quoted Prices in Active Markets for Identical Assets (Level 1) | Precious Metals
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	383	319
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	9,301	9,442
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | Intermediate - Government | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	3,068
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | Short Term - Government | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	497
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | U.S. Large Cap Value | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	1,765	1,181
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | U.S. Large Cap Growth | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	588	1,103
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | U.S. Mid Cap Value | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	586	577
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | U.S. Mid Cap Growth | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	586	546
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | U.S. Small Cap Value | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	571	551
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | U.S. Small Cap Growth | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	580	540
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | Managed Futures | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value		366
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | International | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	677	1,099
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | Emerging Markets | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value		359
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | Commodities Broad Basket | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value		707
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | Cash | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value		2,094
Quoted Prices in Active Markets for Identical Assets (Level 1) | Pension Benefits | Precious Metals | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	383	319
Level 2
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	9,711	8,953
Level 2 | Intermediate - Government
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	552	1,770
Level 2 | Intermediate - Corporate
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	3,872	2,658
Level 2 | Short Term - Government
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value		912
Level 2 | Short Term - Corporate
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	1,702	3,613
Level 2 | Managed Futures
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	392
Level 2 | International
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	870
Level 2 | Commodities Broad Basket
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	801
Level 2 | Cash
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	1,522
Level 2 | Pension Benefits | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	9,711	8,953
Level 2 | Pension Benefits | Intermediate - Government | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	552	1,770
Level 2 | Pension Benefits | Intermediate - Corporate | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	3,872	2,658
Level 2 | Pension Benefits | Short Term - Government | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value		912
Level 2 | Pension Benefits | Short Term - Corporate | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	1,702	$ 3,613
Level 2 | Pension Benefits | Managed Futures | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	392
Level 2 | Pension Benefits | International | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	870
Level 2 | Pension Benefits | Commodities Broad Basket | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	801
Level 2 | Pension Benefits | Cash | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Total fair value	$ 1,522

XML

Employee Benefit Plans - Estimated Benefit Payments (Detail) $ in Thousands	12 Months Ended
	Dec. 30, 2017 USD ($)
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Expected contribution to plans in 2018	$ 1,400
Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Expected contribution to plans in 2018	1,400
Pension Benefits
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
2018	1,835
2019	1,830
2020	1,804
2021	1,771
2022	1,768
2023 - 2027	8,457
Pension Benefits | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
2018	1,835
2019	1,830
2020	1,804
2021	1,771
2022	1,768
2023 - 2027	8,457
Healthcare & Life Ins
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
2018	702
2019	667
2020	675
2021	655
2022	649
2023 - 2027	3,250
Healthcare & Life Ins | Summit Materials, LLC
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
2018	702
2019	667
2020	675
2021	655
2022	649
2023 - 2027	$ 3,250

XML

Accrued Mining and Landfill Reclamation - Additional Information (Detail) - USD ($) $ in Millions	Dec. 30, 2017	Dec. 31, 2016
Asset Retirement Obligations [Line Items]
Anticipated costs	$ 67.9	$ 63.6
Accrued expenses
Asset Retirement Obligations [Line Items]
Asset retirement obligation, current	3.9	5.1
Summit Materials, LLC
Asset Retirement Obligations [Line Items]
Asset retirement obligation, current	3.9	5.1
Anticipated costs	$ 67.9	$ 63.6

XML

Accrued Mining and Landfill Reclamation - Activity for Asset Retirement Obligations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Asset Retirement Obligation, Activity
Beginning balance	$ 23,906	$ 20,735
Acquired obligations	2,303	835
Change in cost estimate	(1,764)	3,055
Settlement of reclamation obligations	(1,996)	(2,283)
Accretion expense	1,875	1,564	$ 1,402
Ending balance	24,329	23,906	20,735
Summit Materials, LLC
Asset Retirement Obligation, Activity
Beginning balance	23,906	20,735
Acquired obligations	2,303	835
Change in cost estimate	(1,764)	3,055
Settlement of reclamation obligations	(1,996)	(2,283)
Accretion expense	1,875	1,564	1,402
Ending balance	$ 24,329	$ 23,906	$ 20,735

XML

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 30, 2017
Contingencies
Term of purchase commitments		1 year
Assumption of Obligations Under Indemnification Agreement
Contingencies
Settlement amount	$ 3.5
Reduction of accrual due to settlement	0.8
Summit Materials, LLC
Contingencies
Term of purchase commitments		1 year
Summit Materials, LLC | Assumption of Obligations Under Indemnification Agreement
Contingencies
Settlement amount	3.5
Reduction of accrual due to settlement	$ 0.8

XML

Leasing Arrangements - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Leases [Abstract]
Rent expense, including short-term rentals	$ 21.7	$ 18.6	$ 12.1
Royalty expense recorded in cost of revenue	18.7	15.6	12.6
Summit Materials, LLC
Leases [Abstract]
Rent expense, including short-term rentals	21.7	18.6	12.1
Royalty expense recorded in cost of revenue	$ 18.7	$ 15.6	$ 12.6

XML

Leasing Arrangements - Minimum Contractual Commitments Under Long-Term Operating Leases (Detail) $ in Thousands	Dec. 30, 2017 USD ($)
Leases [Abstract]
2018, Operating Leases	$ 8,627
2019, Operating Leases	7,077
2020, Operating Leases	5,826
2021, Operating Leases	4,650
2022, Operating Leases	2,475
2018, Royalty Agreements	6,450
2019, Royalty Agreements	6,017
2020, Royalty Agreements	5,833
2021, Royalty Agreements	5,550
2022, Royalty Agreements	5,431
Summit Materials, LLC
Leases [Abstract]
2018, Operating Leases	8,627
2019, Operating Leases	7,077
2020, Operating Leases	5,826
2021, Operating Leases	4,650
2022, Operating Leases	2,475
2018, Royalty Agreements	6,450
2019, Royalty Agreements	6,017
2020, Royalty Agreements	5,833
2021, Royalty Agreements	5,550
2022, Royalty Agreements	$ 5,431

XML

Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions								1 Months Ended		12 Months Ended
	Jan. 10, 2017	Aug. 13, 2015	Aug. 11, 2015	Jul. 17, 2015	Apr. 16, 2015	Mar. 17, 2015	Mar. 11, 2015	Aug. 31, 2015	Aug. 13, 2015	Dec. 31, 2016	Mar. 31, 2016	Nov. 30, 2015	Jul. 31, 2015
IPO | Common Class A
Related Party Transactions
Issuance of Shares (in shares)							25,555,555
Follow on Public Offering | Common Class A
Related Party Transactions
Issuance of Shares (in shares)	10,000,000		22,425,000
Davenport Assets
Related Party Transactions
Cash paid for acquisitions		$ 80.0		$ 370.0					$ 450.0
Davenport Assets | Follow on Public Offering
Related Party Transactions
Cash paid for acquisitions			$ 80.0
Summit Materials, LLC | Davenport Assets
Related Party Transactions
Cash paid for acquisitions		450.0		370.0
Summit Materials, LLC | Davenport Assets | Follow on Public Offering
Related Party Transactions
Cash paid for acquisitions		$ 80.0
Affiliates of the Sponsors Blackstone Management Partners and Silverhawk Summit | Termination fee paid to related parties | IPO
Related Party Transactions
Related party expense						$ 13.8
Affiliates of the Sponsors Blackstone Management Partners and Silverhawk Summit | Termination fee paid to related parties | Summit Materials, LLC | IPO
Related Party Transactions
Related party expense						13.8
Affiliates of BMP | Termination fee paid to related parties | IPO
Related Party Transactions
Related party expense						13.4
Affiliates of BMP | Termination fee paid to related parties | Summit Materials, LLC | IPO
Related Party Transactions
Related party expense						13.4
Affiliates of Silverhawk Summit LP | Termination fee paid to related parties | IPO
Related Party Transactions
Related party expense						0.4
Affiliates of Silverhawk Summit LP | Termination fee paid to related parties | Summit Materials, LLC | IPO
Related Party Transactions
Related party expense						$ 0.4
Blackstone Advisory Partners LP | Follow on Public Offering | Common Class A
Related Party Transactions
Issuance of Shares (in shares)								1,681,875
Blackstone Advisory Partners LP | Summit Materials, LLC | Follow on Public Offering | Common Class A
Related Party Transactions
Issuance of Shares (in shares)								1,681,875
Blackstone Advisory Partners LP | Issuance of notes | Term Loan, due 2022
Related Party Transactions
Notes issued to related party											$ 18.8
Blackstone Advisory Partners LP | Issuance of notes | 6 1/8% Senior Notes, due 2023
Related Party Transactions
Notes issued to related party												$ 22.5	$ 26.3
Blackstone Advisory Partners LP | Issuance of notes | Summit Materials, LLC | Term Loan, due 2022
Related Party Transactions
Notes issued to related party											$ 18.8
Blackstone Advisory Partners LP | Issuance of notes | Summit Materials, LLC | 6 1/8% Senior Notes, due 2023
Related Party Transactions
Notes issued to related party												$ 22.5	$ 26.3
Blackstone Capital Partners V LP | Equity commitment financing | Davenport Assets
Related Party Transactions
Equity commitment financing				$ 90.0
Commitment fee paid										$ 1.8
Blackstone Capital Partners V LP | Equity commitment financing | Summit Materials, LLC
Related Party Transactions
Commitment fee paid										$ 1.8
Blackstone Capital Partners V LP | Equity commitment financing | Summit Materials, LLC | Davenport Assets
Related Party Transactions
Equity commitment financing					$ 90.0

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Fair Value - Fair Value Measurements (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016
Level 3
Fair Value Measurements
Current portion of acquisition-related liabilities and Accrued expenses - Contingent consideration	$ 594	$ 9,288
Acquisition-related liabilities and Other noncurrent liabilities - Contingent consideration	$ 34,301	2,377
Discount rate	11.00%
Adjustment to contingent consideration		6,100
Cash flow hedges | Interest rate derivatives | Level 2
Fair Value Measurements
Current portion of acquisition-related liabilities and Accrued expenses - Cash flow hedge	$ 488	942
Acquisition-related liabilities and Other noncurrent liabilities - Cash flow hedge	492	1,438
Cash flow hedges | Interest rate derivatives | Term Loan, due 2022
Fair Value Measurements
Term loan borrowings hedged by derivatives	200,000	200,000
Summit Materials, LLC | Level 3
Fair Value Measurements
Current portion of acquisition-related liabilities and Accrued expenses - Contingent consideration	594	9,288
Acquisition-related liabilities and Other noncurrent liabilities - Contingent consideration	$ 34,301	2,377
Discount rate	11.00%
Adjustment to contingent consideration		6,100
Summit Materials, LLC | Cash flow hedges | Interest rate derivatives | Level 2
Fair Value Measurements
Current portion of acquisition-related liabilities and Accrued expenses - Cash flow hedge	$ 488	942
Acquisition-related liabilities and Other noncurrent liabilities - Cash flow hedge	492	1,438
Summit Materials, LLC | Cash flow hedges | Interest rate derivatives | Term Loan, due 2022
Fair Value Measurements
Term loan borrowings hedged by derivatives	$ 200,000	$ 200,000

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Fair Value - Carrying Value and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016
Financial Instruments
Current portion of debt	$ 4,765	$ 6,500
Summit Materials, LLC
Financial Instruments
Current portion of debt	4,765	6,500
Level 2
Financial Instruments
Current portion of debt	4,800	6,500
Level 2 | Fair Value.
Financial Instruments
Long-term debt	1,893,239	1,586,102
Level 2 | Carrying Value
Financial Instruments
Long-term debt	1,832,455	1,536,065
Level 2 | Summit Materials, LLC
Financial Instruments
Current portion of debt	4,800	6,500
Level 2 | Summit Materials, LLC | Fair Value.
Financial Instruments
Long-term debt	1,893,239	1,586,102
Level 2 | Summit Materials, LLC | Carrying Value
Financial Instruments
Long-term debt	1,832,455	1,536,065
Level 3 | Fair Value.
Financial Instruments
Current portion of deferred consideration and noncompete obligations	13,493	14,874
Long term portion of deferred consideration and noncompete obligations	23,834	30,287
Level 3 | Carrying Value
Financial Instruments
Current portion of deferred consideration and noncompete obligations	13,493	14,874
Long term portion of deferred consideration and noncompete obligations	23,834	30,287
Level 3 | Summit Materials, LLC | Fair Value.
Financial Instruments
Current portion of deferred consideration and noncompete obligations	10,993	12,375
Long term portion of deferred consideration and noncompete obligations	17,938	22,784
Level 3 | Summit Materials, LLC | Carrying Value
Financial Instruments
Current portion of deferred consideration and noncompete obligations	10,993	12,375
Long term portion of deferred consideration and noncompete obligations	$ 17,938	$ 22,784

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Segment Information - Financial Data (Details) $ in Thousands	12 Months Ended
	Dec. 30, 2017 USD ($) segment	Dec. 31, 2016 USD ($)	Jan. 02, 2016 USD ($)
Segment Information
Number of operating segments | segment	3
Total revenue	$ 1,932,575	$ 1,626,063	$ 1,432,297
(Loss) income from operations before taxes	(158,200)	40,827	(19,194)
Interest expense	108,549	97,536	84,629
Depreciation, depletion and amortization	177,643	147,736	118,321
Accretion	1,875	1,564	1,402
IPO/Legacy modification costs		37,257	28,296
Loss on debt financings	4,815		71,631
Tax receivable agreement expense	271,016	14,938
Transaction costs	7,733	6,797	9,519
Management fees and expenses		(1,379)	1,046
Non-cash compensation	21,140	12,683	5,448
Other	1,206	13,388	(13,570)
Total Adjusted EBITDA	435,777	371,347	287,528
Total capital expenditures	194,146	153,483	88,950
Total depreciation, depletion, amortization and accretion	179,518	149,300	119,723
Total assets	$ 3,787,333	2,781,466	2,396,179
Summit Materials, LLC
Segment Information
Number of operating segments | segment	3
Total revenue	$ 1,932,575	1,626,063	1,432,297
(Loss) income from operations before taxes	113,696	56,805	(18,322)
Interest expense	107,655	96,483	83,757
Depreciation, depletion and amortization	177,643	147,736	118,321
Accretion	1,875	1,564	1,402
IPO/Legacy modification costs		37,257	28,296
Loss on debt financings	4,815		71,631
Transaction costs	7,733	6,797	9,519
Management fees and expenses		(1,379)	1,046
Non-cash compensation	21,140	12,683	5,448
Other	1,206	13,388	(13,570)
Total Adjusted EBITDA	435,763	371,334	287,528
Total capital expenditures	194,146	153,483	88,950
Total depreciation, depletion, amortization and accretion	179,518	149,300	119,723
Total assets	3,504,241	2,776,420	2,395,162
Operating segment
Segment Information
Total capital expenditures	187,950	148,235	83,315
Total depreciation, depletion, amortization and accretion	176,917	146,891	117,408
Total assets	3,131,724	2,641,816	2,210,607
Operating segment | Summit Materials, LLC
Segment Information
Total revenue	1,932,575	1,626,063	1,432,297
Total Adjusted EBITDA	139,108	126,007	92,303
Total capital expenditures	187,950	148,235	83,315
Total depreciation, depletion, amortization and accretion	176,917	146,891	117,408
Total assets	3,131,724	2,641,816	2,210,607
Operating segment | West
Segment Information
Total revenue	998,843	813,682	804,503
Total Adjusted EBITDA	203,590	167,434	150,764
Total capital expenditures	83,591	77,335	39,896
Total depreciation, depletion, amortization and accretion	71,314	65,345	53,727
Total assets	1,225,463	902,763	821,479
Operating segment | West | Summit Materials, LLC
Segment Information
Total revenue	998,843	813,682	804,503
Total Adjusted EBITDA	203,590	167,434	150,764
Total capital expenditures	83,591	77,335	39,896
Total depreciation, depletion, amortization and accretion	71,314	65,345	53,727
Total assets	1,225,463	902,763	821,479
Operating segment | East
Segment Information
Total revenue	629,919	531,294	432,310
Total Adjusted EBITDA	139,108	126,007	92,303
Total capital expenditures	68,556	45,492	26,268
Total depreciation, depletion, amortization and accretion	67,252	51,540	38,923
Total assets	1,035,609	870,613	545,187
Operating segment | East | Summit Materials, LLC
Segment Information
Total revenue	629,919	531,294	432,310
Total capital expenditures	68,556	45,492	26,268
Total depreciation, depletion, amortization and accretion	67,252	51,540	38,923
Total assets	1,035,609	870,613	545,187
Operating segment | Cement
Segment Information
Total revenue	303,813	281,087	195,484
Total Adjusted EBITDA	127,547	112,991	74,845
Total capital expenditures	35,803	25,408	17,151
Total depreciation, depletion, amortization and accretion	38,351	30,006	24,758
Total assets	870,652	868,440	843,941
Operating segment | Cement | Summit Materials, LLC
Segment Information
Total revenue	303,813	281,087	195,484
Total Adjusted EBITDA	127,547	112,991	74,845
Total capital expenditures	35,803	25,408	17,151
Total depreciation, depletion, amortization and accretion	38,351	30,006	24,758
Total assets	870,652	868,440	843,941
Corporate and other
Segment Information
Total Adjusted EBITDA	(34,468)	(35,085)	(30,384)
Total capital expenditures	6,196	5,248	5,635
Total depreciation, depletion, amortization and accretion	2,601	2,409	2,315
Total assets	655,609	139,650	185,572
Corporate and other | Summit Materials, LLC
Segment Information
Total Adjusted EBITDA	(34,482)	(35,098)	(30,384)
Total capital expenditures	6,196	5,248	5,635
Total depreciation, depletion, amortization and accretion	2,601	2,409	2,315
Total assets	372,517	134,604	184,555
Aggregates
Segment Information
Total revenue	313,383	264,609	219,040
Aggregates | Summit Materials, LLC
Segment Information
Total revenue	313,383	264,609	219,040
Cement
Segment Information
Total revenue	282,041	250,349	167,696
Cement | Summit Materials, LLC
Segment Information
Total revenue	282,041	250,349	167,696
Ready-mixed concrete
Segment Information
Total revenue	492,302	395,917	350,262
Ready-mixed concrete | Summit Materials, LLC
Segment Information
Total revenue	492,302	395,917	350,262
Asphalt
Segment Information
Total revenue	285,653	239,419	252,031
Asphalt | Summit Materials, LLC
Segment Information
Total revenue	285,653	239,419	252,031
Paving and related services
Segment Information
Total revenue	371,763	304,041	295,995
Paving and related services | Summit Materials, LLC
Segment Information
Total revenue	371,763	304,041	295,995
Other
Segment Information
Total revenue	187,433	171,728	147,273
Other | Summit Materials, LLC
Segment Information
Total revenue	$ 187,433	$ 171,728	$ 147,273

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Segment Information - By Product (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Revenue by product
Total revenue	$ 1,932,575	$ 1,626,063	$ 1,432,297
Aggregates
Revenue by product
Total revenue	313,383	264,609	219,040
Cement
Revenue by product
Total revenue	282,041	250,349	167,696
Ready-mixed concrete
Revenue by product
Total revenue	492,302	395,917	350,262
Asphalt
Revenue by product
Total revenue	285,653	239,419	252,031
Paving and related services
Revenue by product
Total revenue	371,763	304,041	295,995
Other
Revenue by product
Total revenue	187,433	171,728	147,273
Summit Materials, LLC
Revenue by product
Total revenue	1,932,575	1,626,063	1,432,297
Summit Materials, LLC | Aggregates
Revenue by product
Total revenue	313,383	264,609	219,040
Summit Materials, LLC | Cement
Revenue by product
Total revenue	282,041	250,349	167,696
Summit Materials, LLC | Ready-mixed concrete
Revenue by product
Total revenue	492,302	395,917	350,262
Summit Materials, LLC | Asphalt
Revenue by product
Total revenue	285,653	239,419	252,031
Summit Materials, LLC | Paving and related services
Revenue by product
Total revenue	371,763	304,041	295,995
Summit Materials, LLC | Other
Revenue by product
Total revenue	$ 187,433	$ 171,728	$ 147,273

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Segment Information - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Cash payments:
Income Taxes Paid	$ 1,711	$ 2,645	$ 1,685
Summit Materials, LLC
Cash payments:
Income Taxes Paid	$ 1,711	$ 2,645	$ 1,685

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Guarantor and Non-Guarantor Financial Information - Schedule of Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016	Dec. 27, 2014
Current assets:
Cash and cash equivalents	$ 383,556	$ 143,392	$ 186,405	$ 13,215
Accounts receivable, net	198,330	162,377
Cost and estimated earnings in excess of billings	9,512	7,450
Inventories	184,439	157,679
Other current assets	7,764	12,800
Total current assets	783,601	483,698
Property, plant and equipment, net	1,615,424	1,446,452
Goodwill	1,036,320	782,212	596,397
Intangible assets	16,833	17,989
Other assets	51,063	46,789
Total assets	3,787,333	2,781,466	2,396,179
Current liabilities:
Current portion of debt	4,765	6,500
Current portion of acquisition-related liabilities	14,087	24,162
Accounts payable	98,744	81,565
Accrued expenses	116,629	111,605
Billings in excess of costs and estimated earnings	15,750	15,456
Total current liabilities	249,975	239,288
Long-term debt	1,810,833	1,514,456
Acquisition-related liabilities	58,135	32,664
Other noncurrent liabilities	65,329	76,874
Total liabilities	2,515,612	1,921,427
Total liabilities and stockholders' equity / member's interest	3,787,333	2,781,466
Summit Materials, LLC
Current assets:
Cash and cash equivalents	383,556	142,672	185,388	13,215
Accounts receivable, net	198,330	162,377
Cost and estimated earnings in excess of billings	9,512	7,450
Inventories	184,439	157,679
Other current assets	7,764	12,800
Total current assets	783,601	482,978
Property, plant and equipment, net	1,615,424	1,446,452
Goodwill	1,037,320	782,212	596,397
Intangible assets	16,833	17,989
Other assets	51,063	46,789
Total assets	3,504,241	2,776,420	2,395,162
Current liabilities:
Current portion of debt	4,765	6,500
Current portion of acquisition-related liabilities	11,587	21,663
Accounts payable	100,637	81,610
Accrued expenses	116,274	110,473
Billings in excess of costs and estimated earnings	15,750	15,456
Total current liabilities	249,013	235,702
Long-term debt	1,810,833	1,514,456
Acquisition-related liabilities	52,239	25,161
Other noncurrent liabilities	100,562	124,708
Total liabilities	2,212,647	1,900,027
Total member's interest	1,291,594	876,393
Total liabilities and stockholders' equity / member's interest	3,504,241	2,776,420
Summit Materials, LLC | Eliminations
Current assets:
Cash and cash equivalents	(12,372)	(10,666)	(11,600)	(7,112)
Accounts receivable, net		(102)
Intercompany receivables	(1,058,048)	(843,434)
Total current assets	(1,070,420)	(854,202)
Other assets	(3,003,593)	(2,374,230)
Total assets	(4,074,013)	(3,228,432)
Current liabilities:
Accounts payable		(102)
Accrued expenses	(12,372)	(10,666)
Intercompany payables	(1,058,048)	(843,434)
Total current liabilities	(1,070,420)	(854,202)
Other noncurrent liabilities	(171,318)	(165,242)
Total liabilities	(1,241,738)	(1,019,444)
Total member's interest	(2,832,275)	(2,208,988)
Total liabilities and stockholders' equity / member's interest	(4,074,013)	(3,228,432)
Summit Materials, LLC | Issuers
Current assets:
Cash and cash equivalents	370,741	133,862	180,712	10,837
Intercompany receivables	573,301	521,658
Other current assets	1,167	1,259
Total current assets	945,209	656,779
Property, plant and equipment, net	9,259	7,033
Other assets	2,890,674	2,293,803
Total assets	3,845,142	2,957,615
Current liabilities:
Current portion of debt	4,765	6,500
Current portion of acquisition-related liabilities		1,000
Accounts payable	3,976	1,497
Accrued expenses	47,047	46,460
Intercompany payables	684,057	509,503
Total current liabilities	739,845	564,960
Long-term debt	1,810,833	1,514,456
Other noncurrent liabilities	2,870	2,395
Total liabilities	2,553,548	2,081,811
Total member's interest	1,291,594	875,804
Total liabilities and stockholders' equity / member's interest	3,845,142	2,957,615
Summit Materials, LLC | Guarantors
Current assets:
Cash and cash equivalents	10,254	4,820	4,068	697
Accounts receivable, net	183,139	155,389
Intercompany receivables	484,747	321,776
Cost and estimated earnings in excess of billings	9,264	6,830
Inventories	180,283	153,374
Other current assets	6,354	11,012
Total current assets	874,041	653,201
Property, plant and equipment, net	1,569,118	1,418,902
Goodwill	976,206	735,490
Intangible assets	16,833	17,989
Other assets	162,711	125,270
Total assets	3,598,909	2,950,852
Current liabilities:
Current portion of acquisition-related liabilities	11,587	20,663
Accounts payable	89,912	76,886
Accrued expenses	79,372	73,807
Intercompany payables	369,918	327,405
Billings in excess of costs and estimated earnings	15,349	15,242
Total current liabilities	566,138	514,003
Acquisition-related liabilities	52,239	25,161
Other noncurrent liabilities	193,801	231,199
Total liabilities	812,178	770,363
Total member's interest	2,786,731	2,180,489
Total liabilities and stockholders' equity / member's interest	3,598,909	2,950,852
Summit Materials, LLC | Non Guarantors
Current assets:
Cash and cash equivalents	14,933	14,656	$ 12,208	$ 8,793
Accounts receivable, net	15,191	7,090
Cost and estimated earnings in excess of billings	248	620
Inventories	4,156	4,305
Other current assets	243	529
Total current assets	34,771	27,200
Property, plant and equipment, net	37,047	20,517
Goodwill	61,114	46,722
Other assets	1,271	1,946
Total assets	134,203	96,385
Current liabilities:
Accounts payable	6,749	3,329
Accrued expenses	2,227	872
Intercompany payables	4,073	6,526
Billings in excess of costs and estimated earnings	401	214
Total current liabilities	13,450	10,941
Other noncurrent liabilities	75,209	56,356
Total liabilities	88,659	67,297
Total member's interest	45,544	29,088
Total liabilities and stockholders' equity / member's interest	$ 134,203	$ 96,385

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Guarantor and Non-Guarantor Financial Information - Schedule of Condensed Consolidating Statements of Operations and Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended								10 Months Ended	12 Months Ended
	Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 31, 2016	Oct. 01, 2016	Jul. 02, 2016	Apr. 02, 2016	Jan. 02, 2016	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Condensed Consolidating Statements of Operations
Revenue										$ 1,932,575	$ 1,626,063	$ 1,432,297
Cost of revenue (excluding items shown separately below)										1,281,777	1,071,792	990,262
Depreciation, depletion, amortization and accretion										179,518	149,300	119,723
Operating income	$ 57,306	$ 113,911	$ 82,444	$ (32,784)	$ 48,761	$ 88,410	$ 46,948	$ (29,457)		220,877	154,662	135,024
(Loss) income from operations before taxes										(158,200)	40,827	(19,194)
Income tax expense (benefit)										(283,977)	(5,299)	(18,263)
Income (loss) from continuing operations										125,777	46,126	(931)
Income from discontinued operations												(2,415)
Net income (loss)	44,510	84,287	52,088	(55,108)	6,049	61,106	21,505	(42,534)	$ 44,789	125,777	46,126	1,484
Net income (loss) attributable to member of Summit Materials, LLC	43,010	81,264	50,000	(52,444)	(290)	44,820	13,371	(21,118)		121,830	36,783	27,718
Comprehensive income (loss) income attributable to member of Summit Materials, LLC										131,465	37,329	24,923
Summit Materials, LLC
Condensed Consolidating Statements of Operations
Revenue										1,932,575	1,626,063	1,432,297
Cost of revenue (excluding items shown separately below)										1,281,777	1,071,792	990,262
General and administrative expenses										250,403	250,309	187,288
Depreciation, depletion, amortization and accretion										179,518	149,300	119,723
Operating income	57,306	113,911	82,444	(32,784)	48,761	88,410	46,948	(29,457)		220,877	154,662	135,024
Other (income) expense, net										(474)	1,374	69,589
Interest expense (income)										107,655	96,483	83,757
(Loss) income from operations before taxes										113,696	56,805	(18,322)
Income tax expense (benefit)										(20,345)	(5,282)	(18,263)
Income (loss) from continuing operations										134,041	62,087	(59)
Income from discontinued operations												(2,415)
Net income (loss)	$ 52,435	$ 82,633	$ 53,827	$ (54,854)	$ 21,211	$ 61,360	$ 21,759	$ (42,243)		134,041	62,087	2,356
Net income (loss) attributable to noncontrolling interest										(27)	16	(1,826)
Net income (loss) attributable to member of Summit Materials, LLC										134,068	62,071	4,182
Comprehensive income (loss) income attributable to member of Summit Materials, LLC										144,377	63,093	(8,738)
Summit Materials, LLC | Eliminations
Condensed Consolidating Statements of Operations
Revenue										(5,879)	(7,859)	(32,685)
Cost of revenue (excluding items shown separately below)										(5,879)	(7,859)	(32,685)
Other (income) expense, net										309,860	238,874	166,632
(Loss) income from operations before taxes										(309,860)	(238,874)	(166,632)
Income (loss) from continuing operations												(166,632)
Net income (loss)										(309,860)	(238,874)	(166,632)
Net income (loss) attributable to noncontrolling interest										(27)	16	(1,826)
Net income (loss) attributable to member of Summit Materials, LLC										(309,833)	(238,890)	(164,806)
Comprehensive income (loss) income attributable to member of Summit Materials, LLC										(299,524)	(237,868)	(151,886)
Summit Materials, LLC | Issuers
Condensed Consolidating Statements of Operations
General and administrative expenses										63,954	91,533	73,555
Depreciation, depletion, amortization and accretion										2,601	2,410	2,316
Operating income										(66,555)	(93,943)	(75,871)
Other (income) expense, net										(307,876)	(239,082)	(107,275)
Interest expense (income)										105,735	83,068	27,222
(Loss) income from operations before taxes										135,586	62,071	4,182
Income tax expense (benefit)										1,518
Income (loss) from continuing operations												4,182
Net income (loss)										134,068	62,071	4,182
Net income (loss) attributable to member of Summit Materials, LLC										134,068	62,071	4,182
Comprehensive income (loss) income attributable to member of Summit Materials, LLC										144,377	63,093	(8,738)
Summit Materials, LLC | Guarantors
Condensed Consolidating Statements of Operations
Revenue										1,854,434	1,586,858	1,364,622
Cost of revenue (excluding items shown separately below)										1,227,037	1,047,120	958,144
General and administrative expenses										178,023	152,402	107,282
Depreciation, depletion, amortization and accretion										172,738	142,773	112,166
Operating income										276,636	244,563	187,030
Other (income) expense, net										(1,925)	1,908	9,938
Interest expense (income)										(2,415)	9,956	52,970
(Loss) income from operations before taxes										280,976	232,699	124,122
Income tax expense (benefit)										(23,774)	(5,551)	(18,664)
Income (loss) from continuing operations												142,786
Income from discontinued operations												(2,415)
Net income (loss)										304,750	238,250	145,201
Net income (loss) attributable to member of Summit Materials, LLC										304,750	238,250	145,201
Comprehensive income (loss) income attributable to member of Summit Materials, LLC										302,209	239,353	146,380
Summit Materials, LLC | Non Guarantors
Condensed Consolidating Statements of Operations
Revenue										84,020	47,064	100,360
Cost of revenue (excluding items shown separately below)										60,619	32,531	64,803
General and administrative expenses										8,426	6,374	6,451
Depreciation, depletion, amortization and accretion										4,179	4,117	5,241
Operating income										10,796	4,042	23,865
Other (income) expense, net										(533)	(326)	294
Interest expense (income)										4,335	3,459	3,565
(Loss) income from operations before taxes										6,994	909	20,006
Income tax expense (benefit)										1,911	269	401
Income (loss) from continuing operations												19,605
Net income (loss)										5,083	640	19,605
Net income (loss) attributable to member of Summit Materials, LLC										5,083	640	19,605
Comprehensive income (loss) income attributable to member of Summit Materials, LLC										$ (2,685)	$ (1,485)	$ 5,506

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Guarantor and Non-Guarantor Financial Information - Schedule of Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Condensed Consolidating Statements of Operations
Net cash provided by operating activities	$ 292,183	$ 244,863	$ 98,203
Cash flow from investing activities:
Acquisitions, net of cash acquired	(374,930)	(336,958)	(510,017)
Purchase of property, plant and equipment	(194,146)	(153,483)	(88,950)
Proceeds from the sale of property, plant, and equipment	17,072	16,868	13,110
Other	(471)	2,921	1,510
Net cash used for investing activities	(552,475)	(470,652)	(584,347)
Cash flow from financing activities:
Capital issuance costs	(627)	(136)	(61,609)
Net proceeds from debt issuance	302,000	354,000	1,748,875
Payments on long-term debt	(16,438)	(120,702)	(1,505,486)
Purchase of noncontrolling interests	(532)		(497,848)
Payments on acquisition-related liabilities	(34,650)	(32,040)	(18,056)
Financing costs	(6,416)	(5,801)	(14,246)
Distributions from partnership	(1,974)	(13,034)	(28,736)
Other	(869)	(20)	(1)
Net cash provided by financing activities	499,755	182,707	660,337
Impact of cash on foreign currency	701	69	(1,003)
Net increase (decrease) in cash	240,164	(43,013)	173,190
Cash and cash equivalents-beginning of period	143,392	186,405	13,215
Cash and cash equivalents-end of period	383,556	143,392	186,405
Summit Materials, LLC
Condensed Consolidating Statements of Operations
Net cash provided by operating activities	295,132	244,877	98,203
Cash flow from investing activities:
Acquisitions, net of cash acquired	(374,930)	(336,958)	(510,017)
Purchase of property, plant and equipment	(194,146)	(153,483)	(88,950)
Proceeds from the sale of property, plant, and equipment	17,072	16,868	13,110
Other	(471)	2,921	1,510
Net cash used for investing activities	(552,475)	(470,652)	(584,347)
Cash flow from financing activities:
Proceeds from investment by member	304,541	27,377	507,766
Capital issuance costs	(627)	(136)	(12,930)
Net proceeds from debt issuance	302,000	354,000	1,748,875
Payments on long-term debt	(16,438)	(120,702)	(1,505,486)
Purchase of noncontrolling interests	(532)
Payments on acquisition-related liabilities	(32,150)	(29,540)	(18,056)
Financing costs	(6,416)	(5,801)	(14,246)
Distributions from partnership	(51,986)	(42,192)	(46,603)
Other	(866)	(16)
Net cash provided by financing activities	497,526	182,990	659,320
Impact of cash on foreign currency	701	69	(1,003)
Net increase (decrease) in cash	240,884	(42,716)	172,173
Cash and cash equivalents-beginning of period	142,672	185,388	13,215
Cash and cash equivalents-end of period	383,556	142,672	185,388
Summit Materials, LLC | Eliminations
Condensed Consolidating Statements of Operations
Net cash provided by operating activities			(167)
Cash flow from financing activities:
Loans received from and payments made on loans from other Summit Companies	(1,706)	934	(5,544)
Payments on long-term debt			1,056
Other			167
Net cash provided by financing activities	(1,706)	934	(4,321)
Net increase (decrease) in cash	(1,706)	934	(4,488)
Cash and cash equivalents-beginning of period	(10,666)	(11,600)	(7,112)
Cash and cash equivalents-end of period	(12,372)	(10,666)	(11,600)
Summit Materials, LLC | Issuers
Condensed Consolidating Statements of Operations
Net cash provided by operating activities	(127,102)	(132,328)	(276,104)
Cash flow from investing activities:
Acquisitions, net of cash acquired	(24,538)	(42,844)
Purchase of property, plant and equipment	(6,196)	(5,247)	(5,636)
Net cash used for investing activities	(30,734)	(48,091)	(5,636)
Cash flow from financing activities:
Proceeds from investment by member	40,913	(502,140)	(155,060)
Capital issuance costs	(627)	(136)	(12,930)
Net proceeds from debt issuance	302,000	354,000	1,748,875
Loans received from and payments made on loans from other Summit Companies	119,858	440,738	(208,459)
Payments on long-term debt	(8,463)	(110,500)	(859,796)
Payments on acquisition-related liabilities		(400)	(166)
Financing costs	(6,416)	(5,801)	(14,246)
Distributions from partnership	(51,986)	(42,192)	(46,603)
Other	(564)
Net cash provided by financing activities	394,715	133,569	451,615
Net increase (decrease) in cash	236,879	(46,850)	169,875
Cash and cash equivalents-beginning of period	133,862	180,712	10,837
Cash and cash equivalents-end of period	370,741	133,862	180,712
Summit Materials, LLC | Guarantors
Condensed Consolidating Statements of Operations
Net cash provided by operating activities	392,316	373,588	356,187
Cash flow from investing activities:
Acquisitions, net of cash acquired	(324,892)	(294,114)	(510,017)
Purchase of property, plant and equipment	(182,295)	(146,336)	(81,980)
Proceeds from the sale of property, plant, and equipment	16,822	16,606	12,945
Other	(471)	2,921	1,510
Net cash used for investing activities	(490,836)	(420,923)	(577,542)
Cash flow from financing activities:
Proceeds from investment by member	252,911	529,517	662,826
Loans received from and payments made on loans from other Summit Companies	(108,026)	(442,072)	226,703
Payments on long-term debt	(7,967)	(10,202)	(646,746)
Purchase of noncontrolling interests	(532)
Payments on acquisition-related liabilities	(32,150)	(29,140)	(17,890)
Other	(282)	(16)	(167)
Net cash provided by financing activities	103,954	48,087	224,726
Net increase (decrease) in cash	5,434	752	3,371
Cash and cash equivalents-beginning of period	4,820	4,068	697
Cash and cash equivalents-end of period	10,254	4,820	4,068
Summit Materials, LLC | Non Guarantors
Condensed Consolidating Statements of Operations
Net cash provided by operating activities	29,918	3,617	18,287
Cash flow from investing activities:
Acquisitions, net of cash acquired	(25,500)
Purchase of property, plant and equipment	(5,655)	(1,900)	(1,334)
Proceeds from the sale of property, plant, and equipment	250	262	165
Net cash used for investing activities	(30,905)	(1,638)	(1,169)
Cash flow from financing activities:
Proceeds from investment by member	10,717
Loans received from and payments made on loans from other Summit Companies	(10,126)	400	(12,700)
Payments on long-term debt	(8)
Other	(20)
Net cash provided by financing activities	563	400	(12,700)
Impact of cash on foreign currency	701	69	(1,003)
Net increase (decrease) in cash	277	2,448	3,415
Cash and cash equivalents-beginning of period	14,656	12,208	8,793
Cash and cash equivalents-end of period	$ 14,933	$ 14,656	$ 12,208

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Supplementary Data (Unaudited) - Supplemental Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								10 Months Ended	12 Months Ended
	Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 31, 2016	Oct. 01, 2016	Jul. 02, 2016	Apr. 02, 2016	Jan. 02, 2016	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Condensed Income Statements, Captions [Line Items]
Net revenue	$ 440,610	$ 574,387	$ 478,368	$ 259,044	$ 387,389	$ 480,210	$ 412,636	$ 208,039		$ 1,752,409	$ 1,488,274	$ 1,289,966
Operating income (loss)	57,306	113,911	82,444	(32,784)	48,761	88,410	46,948	(29,457)		220,877	154,662	135,024
Net income (loss)	44,510	84,287	52,088	(55,108)	6,049	61,106	21,505	(42,534)	$ 44,789	125,777	46,126	1,484
Net income (loss) attributable to Summit Inc.	$ 43,010	$ 81,264	$ 50,000	$ (52,444)	$ (290)	$ 44,820	$ 13,371	$ (21,118)		$ 121,830	$ 36,783	27,718
Basic earnings per share attributable to Summit Inc.	$ 0.39	$ 0.74	$ 0.46	$ (0.49)	$ 0.00	$ 0.59	$ 0.21	$ (0.40)
Diluted earnings per share attributable to Summit Inc.	$ 0.38	$ 0.73	$ 0.46	$ (0.49)	$ 0.00	$ 0.59	$ 0.20	$ (0.40)
Retroactive application of common stock issued as dividends (in shares)										1,521,056	1,135,962
Summit Materials, LLC
Condensed Income Statements, Captions [Line Items]
Net revenue	$ 440,610	$ 574,387	$ 478,368	$ 259,044	$ 387,389	$ 480,210	$ 412,636	$ 208,039		$ 1,752,409	$ 1,488,274	1,289,966
Operating income (loss)	57,306	113,911	82,444	(32,784)	48,761	88,410	46,948	(29,457)		220,877	154,662	135,024
Net income (loss)	$ 52,435	$ 82,633	$ 53,827	$ (54,854)	$ 21,211	$ 61,360	$ 21,759	$ (42,243)		134,041	62,087	2,356
Net income (loss) attributable to Summit Inc.										$ 134,068	$ 62,071	$ 4,182