10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended March 31, 2018

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.)	47-1984212
Delaware (Summit Materials, LLC)	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

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

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 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 a smaller reporting company)	Smaller reporting 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			Emerging growth company		☐
Exchange Act.	◻
Summit Materials, LLC
Large accelerated filer	◻		Accelerated filer		☐
Non-accelerated filer	☒	(Do not check if a smaller reporting company)	Smaller reporting 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			Emerging growth company		☐
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 ☒

As of May 1, 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 111,491,743 and 100, respectively.

As of May 1, 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.

EXPLANATORY NOTE

This quarterly report on Form 10-Q (this “report”) is a combined quarterly 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 quarterly reports on Form 10-Q 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,” “us” 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 March 31, 2018, its sole material asset was a 96.9% economic interest in Summit Materials Holdings L.P., a Delaware limited partnership (“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 three months ended March 31, 2018 was that generated by Summit LLC and its consolidated subsidiaries. Summit Inc. controls all of the business and affairs of Summit Holdings and, in turn, Summit LLC.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This report includes “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 statements made 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, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. 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, of course, it is impossible to anticipate all factors that could affect our actual results. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be realized. Important factors could affect our results and could cause results to differ materially from those expressed in our forward-looking statements, including but not limited to the factors discussed in the section entitled “Risk Factors” in Summit Inc.’s Annual Report on Form 10-K for the fiscal year ended December 30, 2017 (the “Annual Report”), as filed with the Securities and Exchange Commission (the “SEC”), any factors discussed in the section entitled “Risk Factors” of this report and the following:

· our dependence on the construction industry and the strength of the local economies in which we operate;

· the cyclical nature of our business;

· risks related to weather and seasonality;

· risks associated with our capital-intensive business;

· competition within our local markets;

· our ability to execute on our acquisition strategy, successfully integrate acquisitions with our existing operations and retain key employees of acquired businesses;

· our dependence on securing and permitting aggregate reserves in strategically located areas;

· declines in public infrastructure construction and delays or reductions in governmental funding, including the funding by transportation authorities and other state agencies;

· environmental, health, safety and climate change laws or governmental requirements or policies concerning zoning and land use;

· conditions in the credit markets;

· our ability to accurately estimate the overall risks, requirements or costs when we bid on or negotiate contracts that are ultimately awarded to us;

· material costs and losses as a result of claims that our products do not meet regulatory requirements or contractual specifications;

· cancellation of a significant number of contracts or our disqualification from bidding for new contracts;

· special hazards related to our operations that may cause personal injury or property damage not covered by insurance;

· our substantial current level of indebtedness;

· our dependence on senior management and other key personnel;

· supply constraints or significant price fluctuations in the petroleum-based resources that we use, including electricity, diesel and liquid asphalt;

· unexpected operational difficulties;

· interruptions in our information technology systems and infrastructure; and

· potential labor disputes.

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.

Any forward-looking statement that we make herein speaks only as of the date of this report. 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 required by law.

CERTAIN DEFINITIONS

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

· “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;  

· “IPO” refers to the March 2015 initial public offering of Summit Inc.;

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

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

Corporate Structure

The following chart summarizes our organizational structure, equity ownership and our principal indebtedness as of March 31, 2018. 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 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.

SUMMIT MATERIALS, INC.

SUMMIT MATERIALS, LLC

FORM 10-Q

TABLE OF CONTENTS

		Page No.
PART I—Financial Information
Item 1.	Financial Statements for Summit Materials, Inc.	1
	Consolidated Balance Sheets as of March 31, 2018 (unaudited) and December 30, 2017	1
	Unaudited Consolidated Statements of Operations for the three months ended March 31, 2018 and April 1, 2017	2
	Unaudited Consolidated Statements of Comprehensive Income for the three months ended March 31, 2018 and April 1, 2017	3
	Unaudited Consolidated Statements of Cash Flows for the three months ended March 31, 2018 and April 1, 2017	4
	Unaudited Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2018	5
	Notes to Unaudited Consolidated Financial Statements	6
	Financial Statements for Summit Materials, LLC	21
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	39
Item 4.	Controls and Procedures	39
PART II — Other Information
Item 1.	Legal Proceedings	40
Item 1A.	Risk Factors	40
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 3.	Defaults Upon Senior Securities	40
Item 4.	Mine Safety Disclosures	40
Item 5.	Other Information	40
Item 6.	Exhibits	41
SIGNATURES		43

PART I—FINANCIAL INFORMATION

ITEM 1.FINANCIAL STATEMENTS

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(In thousands, except share and per share amounts)

	March 31,		December 30,
	2018		2017
	(unaudited)		(audited)
Assets
Current assets:
Cash and cash equivalents	$	178,293	$	383,556
Accounts receivable, net		180,099		198,330
Costs and estimated earnings in excess of billings		12,668		9,512
Inventories		226,750		184,439
Other current assets		13,742		7,764
Total current assets		611,552		783,601
Property, plant and equipment, less accumulated depreciation, depletion and amortization (March 31, 2018 - $673,761 and December 30, 2017 - $631,841)		1,672,880		1,615,424
Goodwill		1,109,448		1,036,320
Intangible assets, less accumulated amortization (March 31, 2018 - $7,020 and December 30, 2017 - $6,698)		16,621		16,833
Deferred tax assets, less valuation allowance (March 31, 2018 and December 30, 2017 - $1,675)		297,729		284,092
Other assets		48,350		51,063
Total assets	$	3,756,580	$	3,787,333
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of debt	$	6,354	$	4,765
Current portion of acquisition-related liabilities		37,101		14,087
Accounts payable		110,348		98,744
Accrued expenses		112,329		116,629
Billings in excess of costs and estimated earnings		15,131		15,750
Total current liabilities		281,263		249,975
Long-term debt		1,808,535		1,810,833
Acquisition-related liabilities		28,894		58,135
Tax receivable agreement liability		332,162		331,340
Other noncurrent liabilities		70,379		65,329
Total liabilities		2,521,233		2,515,612
Commitments and contingencies (see note 11)
Stockholders’ equity:
Class A common stock, par value $0.01 per share; 1,000,000,000 shares authorized, 111,488,573 and 110,350,594 shares issued and outstanding as of March 31, 2018 and December 30, 2017, respectively		1,116		1,104
Class B common stock, par value $0.01 per share; 250,000,000 shares authorized, 100 shares issued and outstanding as of March 31, 2018 and December 30, 2017		—		—
Additional paid-in capital		1,176,906		1,154,220
Accumulated earnings		42,104		95,833
Accumulated other comprehensive income		4,823		7,386
Stockholders’ equity		1,224,949		1,258,543
Noncontrolling interest in Summit Holdings		10,398		13,178
Total stockholders’ equity		1,235,347		1,271,721
Total liabilities and stockholders’ equity	$	3,756,580	$	3,787,333

See notes to unaudited consolidated financial statements.

1

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Operations

(In thousands, except share and per share amounts)

	Three months ended
	March 31,		April 1,
	2018		2017
Revenue:
Product	$	256,807	$	225,017
Service		33,109		34,027
Net revenue		289,916		259,044
Delivery and subcontract revenue		24,505		25,233
Total revenue		314,421		284,277
Cost of revenue (excluding items shown separately below):
Product		197,433		166,968
Service		25,923		25,371
Net cost of revenue		223,356		192,339
Delivery and subcontract cost		24,505		25,233
Total cost of revenue		247,861		217,572
General and administrative expenses		69,861		58,468
Depreciation, depletion, amortization and accretion		46,958		39,748
Transaction costs		1,266		1,273
Operating loss		(51,525)		(32,784)
Interest expense		28,784		24,969
Loss on debt financings		—		190
Other income, net		(7,655)		(657)
Loss from operations before taxes		(72,654)		(57,286)
Income tax benefit		(16,706)		(2,178)
Net loss		(55,948)		(55,108)
Net loss attributable to noncontrolling interest in subsidiaries		—		(98)
Net loss attributable to Summit Holdings		(2,219)		(2,566)
Net loss attributable to Summit Inc.	$	(53,729)	$	(52,444)
Loss per share of Class A common stock:
Basic	$	(0.49)	$	(0.49)
Diluted	$	(0.49)	$	(0.49)
Weighted average shares of Class A common stock:
Basic		110,659,098		106,692,717
Diluted		110,659,098		106,692,717

See notes to unaudited consolidated financial statements.

2

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Comprehensive Income

(In thousands)

	Three months ended
	March 31,		April 1,
	2018		2017
Net loss	$	(55,948)	$	(55,108)
Other comprehensive (loss) income:
Foreign currency translation adjustment		(3,104)		706
Income on cash flow hedges		995		412
Less tax effect of other comprehensive income (loss) items		(520)		—
Other comprehensive (loss) income:		(2,629)		1,118
Comprehensive loss		(58,577)		(53,990)
Less comprehensive loss attributable to the noncontrolling interest in consolidated subsidiaries		—		(98)
Less comprehensive loss attributable to Summit Holdings		(2,285)		(1,448)
Comprehensive loss attributable to Summit Inc.	$	(56,292)	$	(52,444)

See notes to unaudited consolidated financial statements.

3

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Cash Flows

(In thousands)

	Three months ended
	March 31,		April 1,
	2018		2017
Cash flow from operating activities:
Net loss	$	(55,948)	$	(55,108)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, depletion, amortization and accretion		45,559		43,343
Share-based compensation expense		8,507		4,748
Net gain on asset disposals		(4,077)		(1,665)
Non-cash loss on debt financings		—		85
Change in deferred tax asset, net		(17,373)		(2,337)
Other		1,579		783
Decrease (increase) in operating assets, net of acquisitions:
Accounts receivable, net		27,979		13,847
Inventories		(35,248)		(24,677)
Costs and estimated earnings in excess of billings		(2,678)		(7,480)
Other current assets		(3,202)		1,477
Other assets		747		(726)
(Decrease) increase in operating liabilities, net of acquisitions:
Accounts payable		(7,742)		4,169
Accrued expenses		(8,660)		(20,664)
Billings in excess of costs and estimated earnings		(1,788)		(2,703)
Tax receivable agreement liability		822		—
Other liabilities		156		1,369
Net cash used in operating activities		(51,367)		(45,539)
Cash flow from investing activities:
Acquisitions, net of cash acquired		(113,993)		(112,333)
Purchases of property, plant and equipment		(49,505)		(51,056)
Proceeds from the sale of property, plant and equipment		7,788		4,325
Other		1,500		974
Net cash used for investing activities		(154,210)		(158,090)
Cash flow from financing activities:
Proceeds from equity offerings		—		237,600
Capital issuance costs		—		(638)
Debt issuance costs		—		(699)
Payments on debt		(3,972)		(3,566)
Payments on acquisition-related liabilities		(8,962)		(16,414)
Distributions from partnership		(9)		(79)
Proceeds from stock option exercises		15,475		771
Other		(1,820)		(731)
Net cash provided by financing activities		712		216,244
Impact of foreign currency on cash		(398)		100
Net (decrease) increase in cash		(205,263)		12,715
Cash and cash equivalents—beginning of period		383,556		143,392
Cash and cash equivalents—end of period	$	178,293	$	156,107

See notes to unaudited consolidated financial statements.

4

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Unaudited Consolidated Statements of Changes in Stockholders’ Equity

(In thousands, except share amounts)

	Summit Materials, Inc.
			Accumulated
			Other		Class A				Class B				Additional		Noncontrolling		Total
	Accumulated		Comprehensive		Common Stock				Common Stock				Paid-in		Interest in		Stockholders’
	Earnings		Income (Loss)		Shares		Dollars		Shares		Dollars		Capital		Summit Holdings		Equity
Balance — December 30, 2017	$	95,833	$	7,386		110,350,594	$	1,104		100	$	—	$	1,154,220	$	13,178	$	1,271,721
Net loss		(53,729)		—		—		—		—		—		—		(2,219)		(55,948)
LP Unit exchanges		—		—		104,104		1		—		—		485		(486)		—
Other comprehensive loss, net of tax		—		(2,563)		—		—		—		—		—		(66)		(2,629)
Stock option exercises		—		—		856,915		9		—		—		15,468		—		15,477
Share-based compensation		—		—		—		—		—		—		8,507		—		8,507
Distributions from partnership		—		—		—		—		—		—		—		(9)		(9)
Other		—		—		176,960		2		—		—		(1,774)		—		(1,772)
Balance — March 31, 2018	$	42,104	$	4,823		111,488,573	$	1,116		100	$	—	$	1,176,906	$	10,398	$	1,235,347

See notes to unaudited consolidated financial statements.

5

SUMMIT MATERIALS, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in tables in thousands, except per share amounts or otherwise noted)

1.SUMMARY OF ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Summit Materials, Inc. (“Summit Inc.” and, together with its subsidiaries, “Summit,” “we,” “us,” “our” or 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 construction materials, 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 (“IPO”), Summit Inc. became a holding corporation operating and controlling all of the business and affairs of Summit Holdings and its subsidiaries and, through Summit Holdings, conducts its business. Summit Inc. owns the majority of the partnership interests of Summit Holdings (see note 9, 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 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.

Basis of Presentation—These unaudited consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures typically included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and the notes thereto as of and for the year ended December 30, 2017. The Company continues to follow the accounting policies set forth in those audited consolidated financial statements.

Management believes that these consolidated interim financial statements include all adjustments, normal and recurring in nature, that are necessary to present fairly the financial position of the Company as of March 31, 2018, the results of operations for the three months ended March 31, 2018 and April 1, 2017 and cash flows for the three months ended March 31, 2018 and April 1, 2017.

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.

For a summary of the changes in Summit Inc.’s ownership of Summit Holdings, see Note 9, 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%

6

to 50% using the equity method of accounting. In October 2017, the Company acquired the 20% of Ohio Valley Asphalt, LLC held by noncontrolling interests, making it a wholly owned subsidiary.

Use of Estimates—Preparation of these consolidated financial statements in conformity with 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 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 those states, as well as specific situations affecting individual customers. Credit granted within the Company’s trade areas has been extended 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 the three months ended March 31, 2018 and April 1, 2017.

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.

Products

We earn revenue from the sale of products, which primarily include aggregates, cement, ready-mix concrete and asphalt, but also include concrete products, 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, control passes, which generally is 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 to 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.

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.

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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 is recognized using the input method, which approximates progress towards completion. Under the input 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 input 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 in the three months ended March 31, 2018.

We recognize claims 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.

When the contract includes variable consideration, we estimate the amount of consideration to which we will be entitled in exchange for transferring the promised goods or services to a customer. The amount of estimated variable consideration included in the transaction price is the amount for which it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Types of variable consideration include, but are not limited to, liquidated damages and other performance penalties and production and placement bonuses.

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 the terms in the original contract; therefore, they are considered part of a single performance obligation. We account 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, we account 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 input 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 estimated

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

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.

Tax Receivable Agreement— When Class A limited partnership units of Summit Holdings (“LP Units”) are exchanged for shares of Class A common stock of Summit Inc. purchases LP Units for cash, 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 requires 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.

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, and the remaining 15% as an increase to additional paid-in capital. If a deferred tax asset subject to the TRA is determined not to be realizable and therefore subject to a valuation allowance, we do not record a TRA liability for 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.

Reclassification —The Company reclassified $(2.4) million from Deferred income tax benefit and $17,000 from Other current assets to Change in deferred tax asset, net for the three months ended April 1, 2017 consolidated statements of cash flows, to conform to the current year presentation.

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 supersedes 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. We adopted this ASU in the first quarter of 2018 using the modified retrospective approach, which did not have a material impact on our consolidated financial statements.

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.

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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. We adopted this ASU in the first quarter of 2018 and the adoption of this ASU did not have a material impact on the consolidated financial statements.

2.ACQUISITIONS

Since its formation, the Company has completed numerous acquisitions, 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 period:

	Three months ended		Year ended
	March 31,		December 30,
	2018		2017
West		2		6
East		2		8

The purchase price allocation, primarily the valuation of property, plant and equipment for the 2018 acquisitions, as well as the 2017 acquisitions that occurred after April 1, 2017, has not yet been finalized due to the recent timing of the acquisitions and status of the valuation of property, plant and equipment. The following table summarizes aggregated information regarding the fair values of the assets acquired and liabilities assumed as of the respective acquisition dates:

	Three months ended		Year ended
	March 31,		December 30,
	2018		2017
Financial assets	$	10,372	$	31,615
Inventories		7,233		8,300
Property, plant and equipment		41,458		160,975
Intangible assets		108		161
Other assets		2,979		4,200
Financial liabilities		(9,307)		(15,501)
Other long-term liabilities		(3,597)		(17,610)
Net assets acquired		49,246		172,140
Goodwill		73,274		247,536
Purchase price		122,520		419,676
Acquisition-related liabilities		(8,527)		(43,452)
Other		—		(1,294)
Net cash paid for acquisitions	$	113,993	$	374,930

Changes in the carrying amount of goodwill, by reportable segment, from December 30, 2017 to March 31, 2018 are summarized as follows:

	West		East		Cement		Total
Balance, December 30, 2017	$	526,290	$	305,374	$	204,656	$	1,036,320
Acquisitions (1)		43,810		30,960		—		74,770
Foreign currency translation adjustments		(1,642)		—		—		(1,642)
Balance, March 31, 2018	$	568,458	$	336,334	$	204,656	$	1,109,448

(1) Reflects goodwill from 2018 acquisitions and working capital adjustments from prior year acquisitions.

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The Company’s intangible assets are primarily composed of goodwill, 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. The reserve rights relate to aggregate reserves to which the Company has the rights of ownership, but does 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:

	March 31, 2018						December 30, 2017
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Leases	$	15,998	$	(4,381)	$	11,617	$	15,888	$	(4,178)	$	11,710
Reserve rights		6,234		(1,699)		4,535		6,234		(1,625)		4,609
Trade names		1,000		(783)		217		1,000		(758)		242
Other		409		(157)		252		409		(137)		272
Total intangible assets	$	23,641	$	(7,020)	$	16,621	$	23,531	$	(6,698)	$	16,833

Amortization expense totaled $0.3 million and $0.3 million for the three months ended March 31, 2018 and April 1, 2017, respectively. The estimated amortization expense for the intangible assets for each of the five years subsequent to March 31, 2018 is as follows:

2018 (nine months)	$	938
2019		1,275
2020		1,162
2021		1,120
2022		1,120
2023		1,120
Thereafter		9,886
Total	$	16,621

3.REVENUE RECOGNITION

We derive our revenue predominantly by selling construction materials, 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 service revenue is generated primarily from the asphalt paving services that we provide.

Revenue by product for the three months ended March 31, 2018 and April 1, 2017 is as follows:

	Three months ended
	March 31,		April 1,
	2018		2017
Revenue by product*:
Aggregates	$	67,450	$	61,622
Cement		33,117		39,435
Ready-mix concrete		122,015		93,177
Asphalt		18,141		19,537
Paving and related services		34,336		36,296
Other		39,362		34,210
Total revenue	$	314,421	$	284,277

*Revenue from liquid asphalt terminals is included in asphalt revenue.

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The following table outlines the significant changes in contract assets and contract liability balances for the years ended 2018 and 2017. Also included in the table is the net change in estimate as a percentage of aggregate revenue for such contracts:

		Costs and estimated		Billings in excess
		earnings in		of costs and
		excess of billings		estimated earnings
Balance—December 30, 2017	$	9,512	$	15,750
Changes in revenue billed, contract price or cost estimates		2,678		(1,788)
Acquisitions		483		1,179
Other		(5)		(10)
Balance—March 31, 2018	$	12,668	$	15,131

Accounts receivable, net consisted of the following as of March 31, 2018 and December 30, 2017:

	March 31,		December 30,
	2018		2017
Trade accounts receivable	$	153,563	$	137,696
Construction contract receivables		19,304		49,832
Retention receivables		12,378		14,973
Receivables from related parties		320		468
Accounts receivable		185,565		202,969
Less: Allowance for doubtful accounts		(5,466)		(4,639)
Accounts receivable, net	$	180,099	$	198,330

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.

4.INVENTORIES

Inventories consisted of the following as of March 31, 2018 and December 30, 2017:

	March 31,		December 30,
	2018		2017
Aggregate stockpiles	$	142,817	$	126,791
Finished goods		54,258		34,667
Work in process		8,845		7,729
Raw materials		20,830		15,252
Total	$	226,750	$	184,439

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5.ACCRUED EXPENSES

Accrued expenses consisted of the following as of March 31, 2018 and December 30, 2017:

	March 31,		December 30,
	2018		2017
Interest	$	23,547	$	24,095
Payroll and benefits		22,278		33,915
Capital lease obligations		22,733		19,276
Insurance		11,423		11,455
Non-income taxes		9,553		7,236
Professional fees		2,785		1,717
Other (1)		20,010		18,935
Total	$	112,329	$	116,629

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

6.DEBT

Debt consisted of the following as of March 31, 2018 and December 30, 2017:

	March 31,		December 30,
	2018		2017
Term Loan, due 2024:
$633.8 million and $635.4 million, net of $1.5 million and $1.6 million discount at March 31, 2018 and December 30, 2017, respectively	$	632,275	$	633,805
81⁄2% Senior Notes, due 2022		250,000		250,000
61⁄8% Senior Notes, due 2023:
$650.0 million, net of $1.3 million and $1.4 million discount at March 31, 2018 and December 30, 2017, respectively		648,710		648,650
51⁄8% Senior Notes, due 2025		300,000		300,000
Total		1,830,985		1,832,455
Current portion of long-term debt		6,354		4,765
Long-term debt	$	1,824,631	$	1,827,690

The contractual payments of long-term debt, including current maturities, for the five years subsequent to March 31, 2018, are as follows:

2018 (nine months)	$	3,177
2019		6,354
2020		7,942
2021		6,354
2022		256,354
2023		656,354
Thereafter		897,253
Total		1,833,788
Less: Original issue net discount		(2,803)
Less: Capitalized loan costs		(16,096)
Total debt	$	1,814,889

Senior Notes—On June 1, 2017, Summit LLC and Summit Finance (together, the “Issuers”) issued $300.0 million of 5.125% 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

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or substantially all of its assets, enter into 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 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.

As of March 31, 2018 and December 30, 2017, 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 3.00% for LIBOR rate loans.

There were no outstanding borrowings under the revolving credit facility as of March 31, 2018 and December 30, 2017, leaving remaining borrowing capacity of $219.6 million as of March 31, 2018, which is net of $15.4 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 March 31, 2018 and December 30, 2017, Summit LLC was in compliance with all financial covenants.

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 three months ended March 31, 2018 and April 1, 2017:

	Deferred financing fees
Balance—December 30, 2017	$	19,033
Amortization		(1,013)
Balance—March 31, 2018	$	18,020
Balance—December 31, 2016	$	18,290
Loan origination fees		699
Amortization		(917)
Write off of deferred financing fees		(45)
Balance—April 1, 2017	$	18,027

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 March 31, 2018 or December 30, 2017.  

7.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 accounts.

Our income tax benefit was $16.7 million and $2.2 million in the three months ended March 31, 2018 and April 1, 2017, respectively. We recorded an income tax benefit in the three months ended March 31, 2018, primarily related to our loss before taxes. Our effective income tax rate was higher in the first quarter of 2018 as compared to the same period in 2017 as our deferred tax assets were subject to a valuation allowance as of April 1, 2017. The effective tax rate for Summit Inc. differs from the federal rate primarily due to (1) changes in valuation allowance for 2017, (2) tax depletion expense in excess of the expense recorded under U.S. GAAP, (3) the minority interest in the Summit Holdings partnership that is allocated outside of the Company and (4) 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 any net operating loss carryforwards scheduled to expire in the near future.

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 March 31, 2018 and December 30, 2017, Summit Inc. had a valuation allowance of $1.7 million, which relates to certain deferred tax assets in taxable entities where realization is not more likely than not.

Tax Receivable Agreement—The Company is party to 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. 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. 

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In the three months ended March 31, 2018, 104,104 LP Units were acquired by Summit Inc. in exchange for an equal number of newly-issued shares of Summit Inc.’s Class A common stock. These exchanges resulted in net new deferred tax assets of approximately $1.0 million. As we determined that the deferred tax assets created from these exchanges are realizable and payment under the TRA is considered probable, we have recorded 85% of the increase in deferred tax assets as TRA liability and the remainder as an increase in additional paid in capital. As of March 31, 2018 and December 30, 2017, we had recorded $332.2 million and $331.9 million of TRA liability of which $0.6 million was classified as accrued expenses as of December 30, 2017.

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 three months ended March 31, 2018 and April 1, 2017, we made tax distribution payments of $9,000 and $79,000, respectively.  

As of March 31, 2018 and December 30, 2017, Summit Inc. and its subsidiaries had 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 three months ended March 31, 2018 and April 1, 2017.

8.    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 earnings per share:

	Three months ended
	March 31,		April 1,
	2018		2017
Net loss attributable to Summit Inc.	$	(53,729)	$	(52,444)
Weighted average shares of Class A stock outstanding		110,659,098		106,692,717
Basic loss per share	$	(0.49)	$	(0.49)

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

	Three months ended
	March 31,		April 1,
	2018		2017
Antidilutive shares:
LP Units		3,585,516		4,915,202
Time-vesting stock options		3,296,133		5,311,863
Warrants		100,037		160,333
Time-vesting restricted stock units		854,482		527,393
Market-based restricted stock units		295,252		211,455

9.STOCKHOLDERS’ EQUITY

Equity Offering—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.

16

During 2017 and 2018, 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 — December 30, 2017	110,350,594	3,689,620	114,040,214	96.8	%
Exchanges during period	104,104	(104,104)	—
Other equity transactions	1,033,875	—	1,033,875
Balance — March 31, 2018	111,488,573	3,585,516	115,074,089	96.9	%
Balance — December 31, 2016	97,554,278	5,151,297	102,705,575	95.0	%
January 2017 public offering	10,000,000	—	10,000,000
Exchanges during period	236,095	(236,095)	—
Other equity transactions	134,423	—	134,423
Balance — April 1, 2017	107,924,796	4,915,202	112,839,998	95.6	%

As a result of the Reorganization, 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 3.1% and 3.2% as of March 31, 2018 and December 30, 2017, respectively.

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 — December 30, 2017	$	2,364	$	4,637	$	385	$	7,386
Foreign currency translation adjustment, net of tax		—		(3,772)		—		(3,772)
Income on cash flow hedges, net of tax		—		—		1,209		1,209
Balance — March 31, 2018	$	2,364	$	865	$	1,594	$	4,823
Balance — December 31, 2016	$	1,450	$	(3,106)	$	(593)	$	(2,249)
Foreign currency translation adjustment		—		670		—		670
Income on cash flow hedges		—		—		393		393
Balance — April 1, 2017	$	1,450	$	(2,436)	$	(200)	$	(1,186)

10.    SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flow information is as follows:

	Three months ended
	March 31,		April 1,
	2018		2017
Cash payments:
Interest	$	26,927	$	26,727
Income taxes		1,582		230
Non cash financing activities:
Exchange of LP Units to shares of Class A common stock		3,325		5,753

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11.    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.

Environmental Remediation and Site Restoration —TheCompany’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.

The Company has asset retirement obligations arising from regulatory and contractual requirements to perform reclamation activities at the time certain quarries and landfills are closed. As of March 31, 2018 and December 30, 2017, $20.5 million and $20.5 million, respectively, were included in other noncurrent liabilities on the consolidated balance sheets and $4.0 million and $3.9 million, respectively, were included in accrued expenses for future reclamation costs. The total undiscounted anticipated costs for site reclamation as of March 31, 2018 and December 30, 2017 were $71.7 million and $67.9 million, respectively.

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.

12.FAIR VALUE

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 (loss) 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 March 31, 2018 and December 30, 2017 was:

	March 31,		December 30,
	2018		2017
Current portion of acquisition-related liabilities and Accrued expenses:
Contingent consideration	$	23,474	$	594
Cash flow hedges		123		488
Acquisition-related liabilities and Other noncurrent liabilities
Contingent consideration	$	4,025	$	34,301
Cash flow hedges		—		492

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

18

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 is based on observable, or Level 2, inputs such as interest rates, bond yields and prices in inactive markets. There were no material valuation adjustments to contingent consideration or derivatives as of March 31, 2018 and April 1, 2017.

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 March 31, 2018 and December 30, 2017 was:

	March 31, 2018				December 30, 2017
	Fair Value		Carrying Value		Fair Value		Carrying Value
Level 2
Long-term debt(1)	$	1,860,811	$	1,830,985	$	1,893,239	$	1,832,455
Level 3
Current portion of deferred consideration and noncompete obligations(2)		13,627		13,627		13,493		13,493
Long term portion of deferred consideration and noncompete obligations(3)		24,869		24,869		23,834		23,834

(1) $6.4 million and $4.8 million included in current portion of debt as of March 31, 2018 and December 30, 2017, 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.

13.    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, our Company’s Chief Operating Decision Maker (“CODM”). The CODM primarily evaluates the performance of the Company’s 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.

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The following tables display selected financial data for the Company’s reportable business segments as of March 31, 2018 and December 30, 2017 and for the three months ended March 31, 2018 and April 1, 2017:

	Three months ended
	March 31,		April 1,
	2018		2017
Revenue*:
West	$	181,713	$	143,219
East		95,157		97,223
Cement		37,551		43,835
Total revenue	$	314,421	$	284,277

*Intercompany sales are immaterial and the presentation above only reflects sales to external customers.

	Three months ended
	March 31,		April 1,
	2018		2017
Loss from continuing operations before taxes	$	(72,654)	$	(57,286)
Interest expense		28,784		24,969
Depreciation, depletion and amortization		46,543		39,304
Accretion		415		444
Loss on debt financings		—		190
Transaction costs		1,266		1,273
Non-cash compensation		8,507		4,748
Other		(7,348)		(12)
Total Adjusted EBITDA	$	5,513	$	13,630
Total Adjusted EBITDA by Segment:
West	$	16,173	$	15,699
East		(3,203)		4,348
Cement		3,667		2,685
Corporate and other		(11,124)		(9,102)
Total Adjusted EBITDA	$	5,513	$	13,630

	Three months ended
	March 31,		April 1,
	2018		2017
Purchases of property, plant and equipment
West	$	28,909	$	26,562
East		14,464		15,706
Cement		4,468		7,673
Total reportable segments		47,841		49,941
Corporate and other		1,664		1,115
Total purchases of property, plant and equipment	$	49,505	$	51,056

	Three months ended
	March 31,		April 1,
	2018		2017
Depreciation, depletion, amortization and accretion:
West	$	22,151	$	15,663
East		17,727		15,378
Cement		6,370		8,048
Total reportable segments		46,248		39,089
Corporate and other		710		659
Total depreciation, depletion, amortization and accretion	$	46,958	$	39,748

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	March 31,		December 30,
	2018		2017
Total assets:
West	$	1,313,661	$	1,225,463
East		1,083,989		1,035,609
Cement		887,737		870,652
Total reportable segments		3,285,387		3,131,724
Corporate and other		471,193		655,609
Total	$	3,756,580	$	3,787,333

SUMMIT MATERIALS, LLC AND SUBSIDIARIES

UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The unaudited consolidated financial statements and notes thereto for Summit Materials, LLC and subsidiaries are included as Exhibit 99.1 to this Quarterly Report on Form 10-Q and are incorporated by reference herein.

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ITEM 2. 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” in the Annual Report and any factors discussed in the sections entitled “Cautionary Note 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 our consolidated interim financial statements and the related notes and other information included in this report.

Overview

We are one of the fastest growing construction materials companies in the United States. 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 a portion of 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 vertically-integrated business model creates opportunities to increase aggregates sales, optimize margin at each stage of production and provide customers with efficiency gains, convenience and reliability, which we believe provides us a competitive advantage in the markets we serve.

Since our inception in 2009, we have completed dozens of acquisitions, which are organized into 12 operating companies spanning 43 metropolitan statistical areas. Our highly experienced management team, led by our President and Chief Executive Officer, Thomas 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 price optimization to improve profitability and cash flow.

As of March 31, 2018, we had 3.6 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.

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We have three operating segments: West, East and Cement, which are also our reporting segments. We operate in 23 U.S. states and British Columbia, Canada and currently have assets in 22 U.S. states and British Columbia, Canada. The map below illustrates our geographic asset 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 in the local and regional markets and our ability to control operating costs.

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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 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. The funding available in any given year is separate and distinct from lettings, or the process of providing notice, issuing proposals, receiving proposals, and awarding contracts. In March 2018, the TXDOT updated its fiscal year 2018 lettings estimate from $4.8 billion to approximately $6.0 billion, which provides for more than 800 transportation projects, the majority of which are expected to have a total value of less than $15 million each. Longer-term, the TXDOT has indicated a target of $8 billion per year in total state and local lettings.

o In February 2018, the federal government approved a two-year budget agreement. Included within this package was approximately $89 billion in relief funding related to a series of natural disasters, including Hurricane Harvey, which impacted our Houston market in the second half of calendar 2017. We believe that significant federal funding stemming from the $89 billion relief package is expected to result in the construction of new water and transportation infrastructure in the Houston market from 2018 to 2020. Further, an omnibus appropriation was approved in March 2018. This bill provides approximately $2.0 billion in new funding for highway, bridge and tunnel obligations at the state level. We believe that this federal funding may utilized by state departments of transportation between March 2018 and September 2021 on the condition that the states provide some degree of matching funding, as set forth in the omnibus appropriation bill.

o In November 2015, Texas 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

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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.

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

· 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.

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

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.

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 escalator provisions in most of our private and commercial contracts limit our exposure to price fluctuations in this commodity. We often obtain similar escalators on public infrastructure contracts. In addition, we enter into various firm purchase commitments, with terms generally less than one year, for certain raw materials.

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 21% of aggregates sold were used internally in our ready-mix concrete and asphalt paving mixes and approximately 57% of the asphalt paving mix were laid by our paving crews during the three months ended March 31, 2018. Our backlog as of March 31, 2018, was 18.7 million tons of aggregates, 1.9 million cubic yards of ready-mix concrete, 3.4 million tons of asphalt and $479.4 million of construction services,

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which includes the value of the aggregate and asphalt tons and ready-mix concrete cubic yards that are expected to be sourced internally.

Financial Highlights

The principal factors in evaluating our financial condition and operating results for the three months ended March 31, 2018 as compared to April 1, 2017, are:

· Net revenue increased $30.9 million in the three months ended March 31, 2018, primarily resulting from contributions from our acquisitions.

· Our operating loss increased $18.7 million in the three months ended March 31, 2018, primarily due to increased depreciation and amortization in 2018 resulting from our acquisitions. Further, our general and administrative expenses for the three month period ended March 31, 2018 were higher than the comparable period in 2017 primarily due to the acquisitions which occurred in the last nine months of 2017, as well as increased stock-based compensation charges in the first quarter of 2018.

· 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.

Acquisitions

In addition to our organic growth, we continued to grow our business through acquisitions, completing a total of four acquisitions in the first quarter of 2018, of which two were in the West segment and two were in the East segment. 

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. General and administrative expenses as a percentage of revenue vary throughout the year due to the seasonality of our business. 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. Our transaction costs fluctuate with the level acquisition activity completed each year.

The table below includes revenue and operating loss by segment for the three months ended March 31, 2018 and April 1, 2017.

	Three months ended
	March 31, 2018				April 1, 2017
			Operating				Operating
(in thousands)	Revenue		loss		Revenue		loss
West	$	181,713	$	(6,130)	$	143,219	$	(287)
East		95,157		(20,888)		97,223		(11,518)
Cement		37,551		(2,848)		43,835		(5,270)
Corporate (1)		—		(21,659)		—		(15,709)
Total	$	314,421	$	(51,525)	$	284,277	$	(32,784)

(1) Corporate results primarily consist of compensation and office expenses for employees included in the Company's headquarters.

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Consolidated Results of Operations

The table below sets forth our consolidated results of operations for the three months ended March 31, 2018 and April 1, 2017.

	Three months ended
	March 31,		April 1,
	2018		2017
(in thousands)
Net revenue	$	289,916	$	259,044
Delivery and subcontract revenue		24,505		25,233
Total revenue		314,421		284,277
Cost of revenue (excluding items shown separately below)		247,861		217,572
General and administrative expenses		69,861		58,468
Depreciation, depletion, amortization and accretion		46,958		39,748
Transaction costs		1,266		1,273
Operating loss		(51,525)		(32,784)
Interest expense (1)		28,784		24,969
Loss on debt financings		—		190
Other income, net		(7,655)		(657)
Loss from operations before taxes (1)		(72,654)		(57,286)
Income tax benefit		(16,706)		(2,178)
Net loss (1)	$	(55,948)	$	(55,108)

(1) The statement of operations above is based on the financial results of Summit Inc. and its subsidiaries. The statement of operations of Summit LLC and its subsidiaries differs from Summit Inc. in that Summit LLC has $0.2 million less interest expense than Summit Inc., in the three months ended March 31, 2018. The additional interest expense for Summit Inc. is associated with a deferred consideration obligation of Summit Holdings, which is excluded from Summit LLC’s consolidated interest expense.

Three months ended March 31, 2018 compared to the three months ended April 1, 2017

	Three months ended
	March 31,			April 1,
($ in thousands)	2018			2017			Variance
Net revenue	$	289,916		$	259,044		$	30,872	11.9	%
Operating loss		(51,525)			(32,784)			(18,741)	(57.2)	%
Operating margin percentage		(17.8)	%		(12.7)	%
Adjusted EBITDA (1)	$	5,513		$	13,630		$	(8,117)	(59.6)	%

(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 increased $30.9 million in the three months ended March 31, 2018, primarily resulting from our acquisition program. Our increase in net revenue resulted primarily from increased sales of products, offset by minor decreases in sales of materials and service revenue. We generated organic volume growth in our ready-mix concrete line of business during the first quarter of 2018 over the prior year period, while the aggregates, cement and asphalt lines of business had declines in organic volumes. We had organic price growth in our aggregates, cement and ready-mix concrete lines of business during the first quarter of 2018. Additional discussion about the impact of acquisitions on each segment is presented in more detail below.

In the three months ended March 31, 2018, our net revenue growth was $40.8 million from acquisitions, offset by a $9.9 million decrease in organic revenues. Operating income decreased by $18.7 million in the first quarter of 2018 as compared to the first quarter of 2017 as a result of an increase in our general administrative expenses and depreciation, depletion, amortization and accretion expense. Our general and administrative expenses increased in the first quarter of 2018 as compared to the same period a year ago, due to the acquisitions that occurred in the last nine

27

months of 2017, as well as increases in stock-based compensation expenses. Our depreciation, depletion, amortization and accretion increased $7.2 million primarily due to acquisitions completed in 2017 and 2018.

Our operating margin percentage decreased from (12.7)% to (17.8)% in the three months ended March 31, 2018, due to the items noted above. Adjusted EBITDA, as defined below, decreased by $8.1 million in the three months ended March 31, 2018 due to increased general and administrative expenses as noted above.

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:

	Three months ended
	March 31,		April 1,
($ in thousands)	2018		2017		Variance
Revenue by product*:
Aggregates	$	86,879	$	78,370	$	8,509	10.9	%
Cement		33,766		40,304		(6,538)	(16.2)	%
Ready-mix concrete		122,308		93,358		28,950	31.0	%
Asphalt		18,302		21,279		(2,977)	(14.0)	%
Paving and related services		46,400		50,276		(3,876)	(7.7)	%
Other		6,766		690		6,076	880.6	%
Total revenue	$	314,421	$	284,277	$	30,144	10.6	%

*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.

Detail of our volumes and average selling prices by product in the three months ended March 31, 2018 and April 1, 2017 were as follows:  

	Three months ended
	March 31, 2018			April 1, 2017
	Volume(1)			Volume(1)			Percentage Change in
	(in thousands)	Pricing(2)		(in thousands)	Pricing(2)		Volume		Pricing
Aggregates	8,814	$	9.86	7,963	$	9.84	10.7	%	0.2	%
Cement	294		115.04	362		111.48	(18.8)	%	3.2	%
Ready-mix concrete	1,142		107.08	906		103.04	26.0	%	3.9	%
Asphalt	350		52.04	362		53.98	(3.3)	%	(3.6)	%

(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 $8.5 million in the three months ended March 31, 2018, primarily due to increased volumes. Aggregate volumes were positively affected by the acquisitions completed in late 2017 and early 2018, together with broad based growth in most of our markets, partially offset by declines in our Kansas market. Organic aggregate volumes decreased 6.8% in the first three months of 2018 as compared to the same period a year ago primarily from declines in our Midwest and Mid-Atlantic markets. Aggregate pricing of $9.86 per ton slightly increased compared to the first three months of 2017.

Revenue from cement decreased $6.5 million in the three ended March 31, 2018, due primarily to volume declines as weather conditions in 2017 were better than in 2018. During the first three months of 2018, pricing for cement improved by 3.2% to $115.04 per ton, primarily resulting from price increases implemented in 2017.

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Revenue from ready-mix concrete increased $29.0 million in the three months ended March 31, 2018, respectively, primarily from the acquisitions referred to above. Ready-mix concrete pricing of $107.08 per cubic yard ton in 2018 increased 3.9% as compared to the first three months of 2017.

Revenue from asphalt decreased $3.0 million in the three months ended March 31, 2018. Our organic asphalt volumes decreased 22.4%, primarily due to less favorable weather conditions in 2018, offset by increases in volume from acquisitions. Pricing for asphalt declined 3.6% due to product mix.

Other Financial Information

Income Tax Benefit

Our income tax benefit was $16.7 million and $2.2 million, in the three months ended March 31, 2018 and April 1, 2017, respectively. We recorded an income tax benefit in the three months ended March 31, 2018, primarily related to the loss before taxes. Our effective income tax rate was higher in the first quarter of 2018 as compared to the same period in 2017, as our deferred tax assets were subject to a valuation allowance as of April 1, 2017. The effective tax rate for Summit Inc. differs from the federal rate primarily due to (1) changes in the valuation allowance, (2) tax depletion expense in excess of the expense recorded under U.S. GAAP, (3) the minority interest in the Summit Holdings partnership that is allocated outside of the Company and (4) 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 any net operating loss carryforwards scheduled to expire in the near future.

As of March 31, 2018 and December 30, 2017, Summit Inc. had a valuation allowance of $1.7 million, which relates to certain deferred tax assets in taxable entities where realization is not more likely than not.

Segment results of operations

West Segment

	Three months ended
	March 31,			April 1,
($ in thousands)	2018			2017			Variance
Net revenue	$	168,944		$	131,974		$	36,970	28.0	%
Operating loss		(6,130)			(287)			(5,843)	(2,035.9)	%
Operating margin percentage		(3.6)	%		(0.2)	%
Adjusted EBITDA (1)	$	16,173		$	15,699		$	474	3.0	%

(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 $37.0 million in the three months ended March 31, 2018, primarily due to incremental revenue from acquisitions in 2018. Net revenue growth from acquisitions in the three months ended March 31, 2018 increased $28.3 million, with the balance attributable to organic operations.

The West segment’s operating loss increased $5.8 million in the three months ended March 31, 2018. Adjusted EBITDA improved $0.5 million in the three months ended March 31, 2018. The improvement in West Adjusted EBITDA was due to improved organic volume growth in ready-mix concrete, as well as contributions from the acquisitions mentioned above. The operating margin percentage in the West segment decreased in the three months ended March 31, 2018 to (3.6)% as compared to the three months ended April 1, 2017 at (0.2)%, due to increases in depreciation and amortization, as well as increases in general and administrative expenses resulting from acquisitions that occurred in the last nine months of 2017.  

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Gross revenue by product/ service was as follows:  

	Three months ended
	March 31,		April 1,
($ in thousands)	2018		2017		Variance
Revenue by product*:
Aggregates	$	42,716	$	35,674	$	7,042	19.7	%
Ready-mix concrete		99,259		72,029		27,230	37.8	%
Asphalt		16,879		18,760		(1,881)	(10.0)	%
Paving and related services		31,266		29,133		2,133	7.3	%
Other		(8,407)		(12,377)		3,970	32.1	%
Total revenue	$	181,713	$	143,219	$	38,494	26.9	%

*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 West segment’s percent changes in sales volumes and pricing in the three months ended March 31, 2018 from the three months ended April 1, 2017 were as follows:  

	Percentage Change in
	Volume		Pricing
Aggregates	15.4	%	3.7	%
Ready-mix concrete	31.3	%	5.0	%
Asphalt	1.0	%	(3.8)	%

Gross revenue from aggregates in the West segment increased $7.0 million in the three months ended March 31, 2018, primarily due to an increase in volumes in the first three months of 2018. The increase in aggregates volumes was primarily in the west and northeast Texas and western British Columbia markets. Aggregates volume increased mainly from the 2018 and 2017 acquisitions. Aggregates pricing for the three months ended March 31, 2018 increased 3.7% when compared to the same period of 2017.

Revenue from ready-mix concrete in the West segment increased $27.2 million in the three months ended March 31, 2018, due to 22.2% and 9.1% acquisition and organic volume growth, respectively.

Revenue from asphalt in the West segment decreased $1.9 million in the three months ended March 31, 2018, primarily due to decreased organic volumes. Revenue for paving and related services in the West segment increased by $2.1 million in the three months ended March 31, 2018, due to acquisitions.

Prior to eliminations of intercompany transactions, the net effect of volume and pricing changes on gross revenue in the three months ended March 31, 2018 was approximately $28.1 million and $4.3 million.

Our Austin operation operates a liquid asphalt terminal in the Houston area which was damaged by Hurricane Harvey in 2017. The terminal is expected to be down until mid-2018 while undergoing significant repairs. We anticipate filing insurance claims for not only damaged property, plant and equipment, but also under our business interruption policy. In the first quarter 2018, we received $1.5 million in insurance proceeds related to damaged or destroyed equipment.

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East Segment

	Three months ended
	March 31,			April 1,
($ in thousands)	2018			2017			Variance
Net revenue	$	83,421		$	83,235		$	186	0.2	%
Operating loss		(20,888)			(11,518)			(9,370)	(81.4)	%
Operating margin percentage		(25.0)	%		(13.8)	%
Adjusted EBITDA (1)	$	(3,203)		$	4,348		$	(7,551)	(173.7)	%

(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 remained consistent in the three month period ended March 31, 2018, primarily due to declines in our organic business which were offset by acquisition growth. Operating loss increased $9.4 million in the three months ended March 31, 2018, due to the impact of increases in depreciation and general and administrative expenses on the 2017 acquisitions. Adjusted EBITDA declined $7.6 million in the three months ended March 31, 2018, due to additional general and administrative expenses on acquired companies.

Operating margin percentage for the three months ended March 31, 2018 decreased to (25.0)% from (13.8)% in the comparable period a year ago, as we had lower revenues due to weather delays in 2018, as well as higher general and administrative expenses from 2017 acquisitions. 

Gross revenue by product/ service was as follows:  

	Three months ended
	March 31,		April 1,
($ in thousands)	2018		2017		Variance
Revenue by product*:
Aggregates	$	44,163	$	42,696	$	1,467	3.4	%
Ready-mix concrete		23,049		21,329		1,720	8.1	%
Asphalt		1,423		2,519		(1,096)	(43.5)	%
Paving and related services		15,134		21,143		(6,009)	(28.4)	%
Other		11,388		9,536		1,852	19.4	%
Total revenue	$	95,157	$	97,223	$	(2,066)	(2.1)	%

*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.

The East segment’s percent changes in sales volumes and pricing in the three months ended March 31, 2018 from the three months ended April 1, 2017 were as follows:  

	Percentage Change in
	Volume		Pricing
Aggregates	6.2	%	(2.6)	%
Ready-mix concrete	7.5	%	0.3	%
Asphalt	(30.6)	%	(10.7)	%

Gross revenue from aggregates in the East segment increased $1.5 million in the three months ended March 31, 2018, due to acquisitions in 2018, offsetting a decline in organic revenues. Aggregate volumes in the first three months of 2018 increased 6.2%, primarily as a result of those acquisitions. Aggregates pricing decreased in the first three months of 2018 due to the impact of lower prices from acquisitions.

Revenue from ready-mix concrete in the East segment increased $1.7 million in the three months ended March 31, 2018, as a result of the acquisitions mentioned above, offsetting organic decline. In the three months ended March 31, 2018, ready-mix volumes increased due to acquisitions, offset by a decrease in organic volumes of 19.6%.

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Revenue from asphalt decreased $1.1 million in the three months ended March 31, 2018, due to declines in asphalt volumes and pricing. The $6.0 million decrease in paving and related service revenue in the three months ended March 31, 2018, was primarily due to weather delays.

Prior to eliminations of intercompany transactions, the net effect of volume and pricing changes on gross revenue in the three months ended March 31, 2018 was approximately $3.2 million and $(1.1) million.

Cement Segment

	Three months ended
	March 31,			April 1,
($ in thousands)	2018			2017			Variance
Net revenue	$	37,551		$	43,835		$	(6,284)	(14.3)	%
Operating loss		(2,848)			(5,270)			2,422	46.0	%
Operating margin percentage		(7.6)	%		(12.0)	%
Adjusted EBITDA (1)	$	3,667		$	2,685		$	982	36.6	%

(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 Cement segment decreased $6.3 million in the three months ended March 31, 2018, primarily due to organic volume declines attributable to unfavorable weather conditions.

The Cement segment’s operating loss improved $2.4 million in the three months ended March 31, 2018. Adjusted EBITDA increased $1.0 million in the three months ended March 31, 2018. Operating margin percentage for the three months ended March 31, 2018 increased to (7.6)% from (12.0)% in the first quarter of 2017. The increase in operating income and margin was primarily due to improved pricing and reduction of costs, offset by decreases in organic volumes.

Gross revenue by product was as follows:  

	Three months ended
	March 31,		April 1,
($ in thousands)	2018		2017		Variance
Revenue by product*:
Cement	$	33,766	$	40,304	$	(6,538)	(16.2)	%
Other		3,785		3,531		254	7.2	%
Total revenue	$	37,551	$	43,835	$	(6,284)	(14.3)	%

*Revenue by product includes intercompany and intracompany sales transferred at market value. Revenue from waste processing and the elimination of intracompany transactions is included in Other.

The Cement segment’s percent changes in sales volumes and pricing in the three months ended March 31, 2018 from the three months ended April 1, 2017 were as follows:

	Percentage Change in
	Volume		Pricing
Cement	(18.8)	%	3.2	%

Revenue from cement decreased $6.5 million in the three months ended March 31, 2018, due primarily to decreased organic cement volumes. Organic cement volumes decreased 18.8% year over year.

Liquidity and Capital Resources

Our primary sources of liquidity include cash on-hand, cash provided by operations, amounts available for borrowing under our senior secured credit facilities and capital-raising activities in the debt and capital markets. As of March 31, 2018, we had $178.3 million in cash and cash equivalents and $330.3 million of working capital compared to $383.6 million and $533.6 million, respectively, at December 30, 2017. Working capital is calculated as current assets

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less current liabilities. There were no restricted cash balances as of March 31, 2018 or December 30, 2017. Our remaining borrowing capacity on our senior secured revolving credit facility was $219.6 million as of March 31, 2018, which is net of $15.4 million of outstanding letters of credit, and is fully available to us within the terms and covenant requirements of our credit agreement governing the senior secured credit facilities (the “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.

Our acquisition strategy has historically required us to raise capital through equity issuances or debt financings. As of March 31, 2018 and December 30, 2017, our long-term borrowings, totaled $1.8 billion, for which we incurred $25.7 million of interest expense for the three months ended March 31, 2018, and $21.6 million for the three months ended April 1, 2017. We remain in compliance with our debt covenants and, when we have made additional issuances of senior notes to fund acquisitions, we have complied with the incurrence tests in the indentures governing our senior notes. Our senior secured revolving credit facility 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 March 31, 2018.

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.

We and our affiliates may from time to time purchase our outstanding debt through open market purchases, privately negotiated transactions or otherwise. Purchases or retirement of debt, if any, will depend on prevailing market conditions, liquidity requirements, contractual restrictions and other factors. The amounts involved may be material.

Indebtedness

Please refer to the notes to the consolidated interim financial statements for detailed information about our long-term debt, scheduled maturities of long-term debt and affirmative and negative covenants, including the maximum allowable consolidated first lien net leverage ratio. As of March 31, 2018, we were in compliance with all debt covenants.

At both March 31, 2018 and December 30, 2017, $1.8 billion of total debt was outstanding under our respective debt agreements. Summit LLC has senior secured 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”). 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 Sand & Gravel ULC, 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 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 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 5.125% senior notes due June 1, 2025 (the “2025 Notes”). 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.

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On March 8, 2016, the Issuers issued $250.0 million in aggregate principal amount of 8.500% senior notes due April 15, 2022 (the “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.

Cash Flows

The following table summarizes our net cash used in or provided by operating, investing and financing activities and our capital expenditures in the three months ended March 31, 2018 and April 1, 2017:

	Summit Inc.
	March 31,		April 1,
(in thousands)	2018		2017
Net cash (used in) provided by:
Operating activities	$	(51,367)	$	(45,539)
Investing activities		(154,210)		(158,090)
Financing activities		712		216,244

Operating activities

During the three months ended March 31, 2018, cash used in operating activities was $51.4 million primarily as a result of:

· Net loss of $55.9 million, offset by non-cash expenses, including $45.6 million of depreciation, depletion, amortization and accretion and $8.5 million of share-based compensation.

· Additional investment in inventory of $35.2 million consistent with the seasonality of our business for which our inventory levels typically increase in the first half of the year in preparation for the upcoming season.  

· Billed and unbilled accounts receivable decreased by $25.3 million in the first three months of 2018 as a result of the seasonality of our business. The majority of our sales occur in the spring, summer and fall and we typically incur an increase in accounts receivable (net billed and unbilled) during the second and third quarters of each year. This amount is typically converted to cash in the fourth and first quarters.  

· 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 $26.2 million of interest payments in the three months ended March 31, 2018.  

During the three months ended April 1, 2017, cash used in operating activities was $45.5 million primarily as a result of:  

· Net loss of $55.1 million, adjusted for $44.9 million of non-cash expenses, including $43.3 million of depreciation, depletion, amortization and accretion and $4.7 million of share-based compensation.

· Additional investment in inventory of $24.7 million consistent with the seasonality of our business for which our inventory levels typically increase in the first half of the year in preparation for the upcoming season.  

· $6.4 million of accounts receivable collections (billed and unbilled) as a result of the seasonality of our business. The majority of our sales occur in the spring, summer and fall and we typically incur an increase in accounts receivable (net billed and unbilled) during the second and third quarters of each year. This amount is typically converted to cash in the fourth and first quarters.  

· The timing of payments associated with accounts payable and accrued expenses added $16.5 million 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

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fall. These costs are typically incurred in the first half of the year and paid by year-end. In addition, we made $26.7 million of interest payments in the three months ended April 1, 2017.  

Investing activities

During the three months ended March 31, 2018, cash used for investing activities was $154.2 million, of which $114.0 million related to the four acquisitions completed in the period and $49.5 million was invested in capital expenditures, which was partially offset by $7.8 million of proceeds from asset sales.  

During the three months ended April 1, 2017, cash used for investing activities was $158.1 million, of which $112.3 million related to the three acquisitions completed in the period and $51.1 million was invested in capital expenditures, which was partially offset by $4.3 million of proceeds from asset sales.

Financing activities

During the three months ended March 31, 2018, cash provided by financing activities was $0.7 million. We received $15.5 million of proceeds from stock option exercises, which was partially offset by $9.0 million of payments on acquisition related liabilities and $4.0 million of payments on debt.

During the three months ended April 1, 2017, cash provided by financing activities was $216.2 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. We made $16.4 million of payments on acquisition related liabilities, and $1.3 million in payments for debt and capital issuance costs.

Cash paid for capital expenditures

We expended approximately $49.5 million in capital expenditures in the three months ended March 31, 2018 compared to $51.1 million in the three months ended April 1, 2017.

We estimate that we will invest between $210.0 million and $225.0 million in capital expenditures in 2018, which we have funded or 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 $26 million on the completion of a new aggregates plant in Vancouver, as well as $12 million on new plants in Georgia and Utah. We plan on spending $6 million to complete a new cement terminal along the Mississippi River during 2018. Additionally, we expect to spend approximately $12 million on new and upgraded asphalt plants in northeast Texas and Kansas.

Tax Receivable Agreement

When the Company purchases LP Units for cash or LP Units are exchanged for shares of Class A common stock, this results in increases in the Company’s share of 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 our IPO, we entered into a TRA with the holders of the 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. actually realizes (or, under certain circumstances such as an early termination of the TRA 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 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 and timing of our income and the effective tax rate.

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 March 31, 2018, we had accrued $332.2 million as TRA liability in our consolidated financial statements. We do not expect significant payments on our TRA liability to occur within the next twelve months.

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Based upon a $30.28 per share price of our Class A common stock, the closing price of our stock on the last trading day of the three months ended March 31, 2018, and a contractually defined discount rate of 2.57%, we estimate that if Summit Inc. were to exercise its right to terminate the TRA, the aggregate amount required to settle the TRA would be approximately $283.4 million. Estimating the amount and the timing of payments that may be made under the TRA is by its nature difficult and imprecise, insofar as the amounts payable depends on a variety of factors, including, but not limited to, the timing of future exchanges, our stock price at the date of the exchange and the timing of the generation of future taxable income. The increases in tax basis as a result of an exchange, as well as the amount and timing of any payments under the TRA, will vary depending on a variety of factors.

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.

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 March 31, 2018, we had no material off-balance sheet arrangements.

New Accounting Pronouncements Not Yet Adopted

In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 beginning to compile all operating and capital leases to assess the impact of adopting this ASU. 

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,

36

depreciation, depletion, amortization and accretion and transaction costs and Adjusted Cash Gross Margin as Adjusted Cash Gross Profit as a percentage of net revenue.

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	Three months ended March 31, 2018
by Segment	West		East		Cement		Corporate		Consolidated
($ in thousands)
Net income (loss) (1)	$	72	$	(21,644)	$	(1,097)	$	(33,279)	$	(55,948)
Interest expense (income) (1)		1,180		606		(1,606)		28,604		28,784
Income tax expense (benefit)		(382)		(186)		—		(16,138)		(16,706)
Depreciation, depletion and amortization		22,008		17,512		6,313		710		46,543
EBITDA	$	22,878	$	(3,712)	$	3,610	$	(20,103)	$	2,673
Accretion		143		215		57		—		415
Transaction costs		(4)		—		—		1,270		1,266
Non-cash compensation		—		—		—		8,507		8,507
Other (2)		(6,844)		294		—		(798)		(7,348)
Adjusted EBITDA (1)	$	16,173	$	(3,203)	$	3,667	$	(11,124)	$	5,513

Reconciliation of Net Loss to Adjusted EBITDA	Three months ended April 1, 2017
by Segment	West		East		Cement		Corporate		Consolidated
($ in thousands)
Net loss (1)	$	(2,026)	$	(12,093)	$	(4,713)	$	(36,276)	$	(55,108)
Interest expense (1)		1,904		685		(650)		23,030		24,969
Income tax expense (benefit)		2		—		—		(2,180)		(2,178)
Depreciation, depletion and amortization		15,468		15,187		7,990		659		39,304
EBITDA	$	15,348	$	3,779	$	2,627	$	(14,767)	$	6,987
Accretion		195		191		58		—		444
Loss on debt financings		—		—		—		190		190
Transaction costs		37		—		—		1,236		1,273
Non-cash compensation		—		—		—		4,748		4,748
Other		119		378		—		(509)		(12)
Adjusted EBITDA (1)	$	15,699	$	4,348	$	2,685	$	(9,102)	$	13,630

(1) The reconciliation of net income (loss) to Adjusted EBITDA is based on the financial results of Summit Inc. and its subsidiaries, which was $0.3 million less than Summit LLC and its subsidiaries in the three ended April 1, 2017, and $0.2 million less in the three months ended March 31, 2018, due to interest expense associated with a deferred consideration obligation, which is an obligation of Summit Holdings and is thus excluded from Summit LLC’s consolidated interest expense.

(2) In the three months ended March 31, 2018, we negotiated a $6.9 million reduction in the amount of a contingent liability from one of our acquisitions. As we had passed the period to revise the opening balance sheet for this acquisition, the adjustment was recorded as other income.

37

	March 31,		December 30,
Reconciliation of Working Capital	2018		2017
($ in thousands)
Total current assets	$	611,552	$	783,601
Less total current liabilities		(281,263)		(249,975)
Working capital	$	330,289	$	533,626

	Three months ended
	March 31,			April 1,
Reconciliation of Operating Loss to Adjusted Cash Gross Profit	2018			2017
($ in thousands)
Operating loss	$	(51,525)		$	(32,784)
General and administrative expenses		69,861			58,468
Depreciation, depletion, amortization and accretion		46,958			39,748
Transaction costs		1,266			1,273
Adjusted Cash Gross Profit (exclusive of items shown separately)	$	66,560		$	66,705
Adjusted Cash Gross Profit Margin (exclusive of items shown separately) (1)		23.0	%		25.8	%

(1) Adjusted Cash Gross Margin, which we define as Adjusted Cash Gross Profit as a percentage of net revenue.

38

ITEM 3.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. These marketplaces could experience lower levels of economic activity in an environment of rising interest rates or escalating costs. For a discussion of quantitative and qualitative disclosures about market risk, please refer to the Annual Report from which our exposure to market risk has not materially changed.

ITEM  4.CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Summit Inc.

Summit Inc. maintains disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (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 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 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 March 31, 2018. Based upon that evaluation, Summit Inc.’s Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2018, Summit Inc.’s disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.

Summit LLC

Summit LLC maintains 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 LLC’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 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 LLC’s management, with the participation of its Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of Summit LLC’s disclosure controls and procedures as of March 31, 2018. Based upon that evaluation, Summit LLC’s Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2018, Summit LLC’s disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.

Changes in Internal Control over Financial Reporting

Summit Inc.

There was no change in Summit Inc.’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during its last fiscal quarter that has materially affected, or is reasonably likely to materially affect, Summit Inc.’s internal control over financial reporting.

Summit LLC

There was no change in Summit LLC’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during its last fiscal quarter that has materially affected, or is reasonably likely to materially affect, Summit LLC’s internal control over financial reporting.

39

Part II—OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

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 current pending or threatened claims and litigation will not have a material effect on our results of operations, financial position or liquidity.

ITEM  1A.RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the factors discussed in the section entitled “Risk Factors” in the Annual Report, which could materially affect the Company’s business, financial condition, operating results or liquidity or future results. The risks described in the Annual Report are not the only risks facing the Company. Additional risks and uncertainties not currently known to the Company or that it currently deems to be immaterial also may materially adversely affect its results of operations, financial condition or liquidity. Other than the additional risk factor noted below, there have been no material changes to the risk factors disclosed in the Annual Report.

Our operating costs could be adversely affected by rising prices for commodities, labor and other production and delivery costs, as a result of inflation or otherwise.

Increases in production and delivery costs, including rising costs for commodities and labor, and other costs related to the production and delivery of our products, could adversely affect our business. Our cost of revenue consists of production and delivery costs, which primarily include labor, utilities, raw materials, fuel, transportation, royalties and other direct costs incurred in the production and delivery of our products and services. Increases in these costs, as a result of general economic conditions, inflationary pressures or otherwise, may reduce our operating margin and adversely affect our financial position if we are unable to hedge or otherwise offset such increases. Specifically, significant increases or fluctuations in the prices of certain energy commodities, including diesel fuel, liquid asphalt and other petroleum-based resources, which we consume significant amounts of in our production and distribution processes, could negatively affect the results of our business operations or cause our results to suffer. Additionally, labor is a meaningful component in the cost of operating our business. Increased labor costs, and specifically costs resulting from wage increases due to competition for qualified workers may reduce our operating margin and adversely affect our financial position.

ITEM  2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

None.

ITEM  4.MINE SAFETY DISCLOSURES

The information concerning mine safety violations and 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.

ITEM  5.OTHER INFORMATION

None.

40

ITEM  6.EXHIBITS

3.1	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)).
3.2	Amended and Restated Bylaws 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).
3.3	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)).
3.4	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)).
4.1	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 (incorporated by reference to Exhibit 4.13 to the Registrants’ Annual Report on Form 10-K, filed February 14, 2018 (File No 001-36873)).
4.2	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 (incorporated by reference to Exhibit 4.23 to the Registrants’ Annual Report on Form 10-K, filed February 14, 2018 (File No 001-36873)).
4.3	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 (incorporated by reference to Exhibit 4.30 to the Registrants’ Annual Report on Form 10-K, filed February 14, 2018 (File No 001-36873)).
10.1	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. (incorporated by reference to Exhibit 10.35 to the Registrants’ Annual Report on Form 10-K, filed February 14, 2018 (File No 001-36873)).
31.1*	Summit Materials, Inc.’s Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 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 Rule 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 Rule 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 Rule 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 Executive 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

41

99.1*	Summit Materials, LLC’s Unaudited Consolidated Financial Statements and Notes to Unaudited Consolidated Financial Statements.
101.INS*	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

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 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.

42

SIGNATURES

Pursuant to the requirements 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: May 8, 2018	By:	/s/ Thomas W. Hill
		Thomas W. Hill
		Chief Executive Officer
		(Principal Executive Officer)
Date: May 8, 2018	By:	/s/ Brian J. Harris
		Brian J. Harris
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

43

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Thomas W. Hill, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q 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 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: May 8, 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 Quarterly Report on Form 10-Q 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 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: May 8, 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 Quarterly Report on Form 10-Q 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 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: May 8, 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 Quarterly Report on Form 10-Q 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 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: May 8, 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 Quarterly Report of Summit Materials, Inc. (the “Company”) on Form 10-Q for the quarterly period ended March 31, 2018 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.

Date: May 8, 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 Quarterly Report of Summit Materials, Inc. (the “Company”) on Form 10-Q for the quarterly period ended March 31, 2018 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: May 8, 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 Quarterly Report of Summit Materials, LLC (the “Company”) on Form 10-Q for the quarterly period ended March 31, 2018 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.

Date: May 8, 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 Quarterly Report of Summit Materials, LLC (the “Company”) on Form 10-Q for the quarterly period ended March 31, 2018 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: May 8, 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.

We have provided the information below in response to the rules and regulations of the SEC issued under Section 1503(a) of the Dodd-Frank Act. The disclosures reflect U.S. mining operations only, as the requirements of the Dodd-Frank Act and the SEC rules and regulations thereunder do not apply to our quarries and mines operated outside the United States.

The Company presents the following items regarding certain mining safety and health matters for the quarter ended March 31, 2018 as applicable (Appendix 1):

· 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 quarter ended March 31, 2018.

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	2	2	-	-	-	-	$	-	-	No	No	-	-	$	-	-
Alleyton Resources	Altair Plant	4104375	TX	1	-	-	-	-	-		-	-	No	No	-	-		-	-
Alleyton Resources	Monahan	4104552	TX	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Alleyton Resources	Potter Plant	4104987	TX	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Alleyton Resources	Vox Plant	4105081	TX	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Alleyton Resources	Duncan Plant	4105187	TX	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Alleyton Resources	Smith Plant	4105210	TX	-	-	-	-	-	-		-	-	No	No	-	-		-	-
American Materials	Bailey Mine	3102289	NC	1	-	-	-	-	-		-	-	No	No	-	-		-	-
American Materials	Dupree Mine	3102282	NC	1	-	-	-	-	-		-	-	No	No	-	-		-	-
American Materials	IVANHOE PIT	3102011	NC	2	-	-	-	-	-		-	-	No	No	-	-		-	-
American Materials	Pinner Mine	3102105	NC	-	-	-	-	-	-		-	-	No	No	-	-		-	-
American Materials	Wade Mine	3102089	NC	-	-	-	-	-	-		-	-	No	No	-	-		-	-
American Materials	Lynches River Quarry	3800715	SC	-	-	-	-	-	-		-	-	No	No	-	-		-	-
American Materials	Black Creek Sand Mine	3800722	SC	1	-	-	-	-	-		-	-	No	No	-	-		-	-
American Materials	CAROLINA SAND INC. #230	3800621	SC	-	-	-	-	-	-		-	-	No	No	-	-		-	-
American Materials	CAROLINA SAND INC. #240	3800608	SC	-	-	-	-	-	-		-	-	No	No	-	-		-	-
American Materials	CAROLINA SAND INC. #250	3800673	SC	-	-	-	-	-	-		-	-	No	No	-	-		-	-
American Materials	Richardson Mine	3800719	SC	-	-	-	-	-	-		-	-	No	No	-	-		-	-
American Materials	Sumter County Sand	3800575	SC	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Austin Materials	Hays Quarry	4104514	TX	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Austin Materials	Ramming Pit	4104807	TX	1	1	-	-	-	-		927	-	No	No	-	-		-	-
Boxley Materials	Boxley Aggregates-Blue Ridge Plant	4400014	VA	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Boxley Materials	Boxley Aggregates-Fieldale Plant	4400074	VA	1	-	-	-	-	-		-	-	No	No	-	-		-	-
Boxley Materials	Boxley Aggregates-Lawyers Rd Plt	4400015	VA	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Boxley Materials	Boxley Aggregates-Mt Athos Plant	4400106	VA	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Boxley Materials	Boxley Aggregates-Piney River Plant	4400035	VA	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Boxley Materials	Boxley Aggregates-Rich Patch Quarry	4406897	VA	1	-	-	-	-	-		-	-	No	No	-	-		-	-
Boxley Materials	PSC1 - EXTEC 5000S Screen	4404196	VA	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Boxley Materials	Broad River Crushed Stone, LLC	0901225	GA	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Boxley Materials	McLanahan Crushed Stone	0900050	GA	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Con-Agg of MO	Boon Quarries East	2300078	MO	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Con-Agg of MO	Boon Quarries West	2300022	MO	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Con-Agg of MO	Boone Quarries-North Telsmith Plant	2301894	MO	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Con-Agg of MO	Con-Agg LLC dba Boone Quarries	2302153	MO	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Con-Agg of MO	Huntsville Quarry	2302004	MO	1	-	-	-	-	-		-	-	No	No	1	1		1,944	-
Con-Agg of MO	Plant # 65	2301922	MO	1	-	-	-	-	-		354	-	No	No	-	-		-	-
Con-Agg of MO	plant # 80	2302071	MO	-	-	-	-	-	-		-	-	No	No	3	3		-	-
Con-Agg of MO	Plant # 81	2302296	MO	-	-	-	-	-	-		-	-	No	No	1	1		-	-
Con-Agg of MO	Plant #83	2302338	MO	1	-	-	-	-	-		118	-	No	No	-	-		-	-
Con-Agg of MO	Boone Quarries Jeff City BQJC	2302221	MO	1	-	-	-	-	-		-	-	No	No	-	-		-	-
Con-Agg of MO	Boonville Quarry	2300097	MO	1	-	-	-	-	-		-	-	No	No	-	-		-	-
Con-Agg of MO	Marshall Junction Quarry	2301253	MO	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Con-Agg of MO	Marshall Quarry	2300099	MO	1	-	-	-	-	-		-	-	No	No	-	-		-	-
Con-Agg of MO	Norris Quarries Plant # 1	2301929	MO	-	-	-	-	-	-		-	-	No	No	1	1		116	-
Con-Agg of MO	Norris Quarries Plant #2	2302399	MO	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Con-Agg of MO	Norris Quarries Plant #3	2301930	MO	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Concrete Supply	Oakland Sand River Plant	1401742	KS	1	-	-	-	-	-		-	-	No	No	3	3		392	-
Concrete Supply	Silver Lake Plant	1401702	KS	1	-	-	-	-	-		118	-	No	No	-	-		-	-
Continental Cement Company	Davenport Plant	1300125	IA	1	3	-	-	-	-		9,456	-	No	No	27	27		29,870	-
Continental Cement Company	Hannibal Plant	2300217	MO	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Continental Cement Company	Hannibal Underground	2302434	MO	3	1	-	-	-	-		-	-	No	No	5	5		28,001	-
Continental Cement Company	Owensville Plant	2301038	MO	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Cornejo & Sons	Durbin Quarry	1401719	KS	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Cornejo & Sons	Grove	1401539	KS	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Cornejo & Sons	Kingsbury	1400624	KS	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Cornejo & Sons	Oxford Sand and Gravel	1400522	KS	3	-	-	-	-	-		3,504	-	No	No	1	1		243	-
Cornejo & Sons	Wichita Sand and Gravel	1400543	KS	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Hamm, Inc	Plant # 80002	1401583	KS	1	-	-	-	-	-		-	-	No	No	-	-		-	-
Hamm, Inc	Plant # 80003	1401474	KS	2	1	-	-	-	-		597	-	No	No	-	-		-	-
Hamm, Inc	Plant # 80010	1401687	KS	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Hamm, Inc	Plant # 80011	1401470	KS	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Hamm, Inc	Plant # 80013	1401609	KS	2	-	-	-	-	-		236	-	No	No	-	-		-	-
Hamm, Inc	Plant #80006	1401471	KS	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Hamm, Inc	Plant #80012	1401472	KS	1	-	-	-	-	-		-	-	No	No	-	-		-	-
Hamm, Inc	Lip Man Rip Rap	1401709	KS	-	-	-	-	-	-		-	-	No	No	-	-		-	-
Hinkle Contracting Company	Allen Co. Stone	1500063	KY	-	-	-	-	-	-		-	-	No	No	-	-		-	-

Hinkle Contracting Company	Barren Co Stone	1506863	KY	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Hinkle Contracting Company	Bassett Stone Company	1500004	KY	1	-	-	-	-	-	-	-	No	No	-	-	-	-
Hinkle Contracting Company	Bourbon Limestone Company	1518415	KY	1	-	-	-	-	-	-	-	No	No	-	-	-	-
Hinkle Contracting Company	Casey Stone Company	1500012	KY	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Hinkle Contracting Company	Cave Run Stone	1507194	KY	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Hinkle Contracting Company	Ewing Stone	4400234	VA	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Hinkle Contracting Company	Glass Sand and Gravel	1504261	KY	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Hinkle Contracting Company	Hart County Stone Company	1500035	KY	1	-	-	-	-	-	-	-	No	No	-	-	-	-
Hinkle Contracting Company	Jellico Stone Company	4000057	TN	1	1	-	-	-	-	-	-	No	No	-	-	-	-
Hinkle Contracting Company	Lake Cumberland Stone	1500099	KY	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Hinkle Contracting Company	Monroe Co. Stone	1500101	KY	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Hinkle Contracting Company	Natural Bridge Stone	1500075	KY	1	-	-	-	-	-	-	-	No	No	-	-	-	-
Hinkle Contracting Company	Pulaski Stone Company	1519092	KY	1	-	-	-	-	-	-	-	No	No	-	-	-	-
Hinkle Contracting Company	Somerset Stone Company	1500094	KY	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Hinkle Contracting Company	Tipton Ridge Quarry	1500019	KY	1	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Black Canyon 2100	1002146	ID	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Crusher 2	0504645	CO	1	1	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Crusher 3	0504593	CO	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Crusher1	0504296	CO	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Elam Construction Inc	0504593	CO	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Extec S-5 Track Mounted Screen sn9617	0502366	CO	1	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Grey Goose	0503869	CO	1	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Highland Pit	4200941	UT	1	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	HP 300	0504594	CO	2	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	KC-Portable 2 (WY)	4801625	WY	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	KC-Portable 3 (WY)	4801626	WY	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Maryland Creek	0503800	CO	1	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Metso LT106Track Mounted Jaw Crusher	0504872	CO	1	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Mona Pit	4202212	UT	1	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Parleys Stone	4202102	UT	1	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Portable 1	4202528	UT	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Portable 2	4201479	UT	1	1	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Powerscreen 2100-2	1002147	ID	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Rental Plant 1	0504616	CO	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Roadrunner Screen	1001916	ID	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Stockton Pit	4202480	UT	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Valley Pit	4200400	UT	1	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Washplant 1	0504873	CO	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Washplant 2`	0504746	CO	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Washplant 3	0504565	CO	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Washplant 4	0503809	CO	1	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	West Valley	4201980	UT	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	ESG Portable 1	0505047	CO	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Kolberg Portable Belt & Grizzly	4202384	UT	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Lewis & Lewis, Inc Pit #2	4801482	WY	1	-	-	-	-	-	-	-	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	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Portable Crusher K	4202523	UT	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	PORTABLE CRUSHER UNIT B	4201963	UT	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Portable Crusher, Unit F	4202042	UT	1	-	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Sierra Ready Mix Quarry Site	2602594	NV	1	1	-	-	-	-	-	-	No	No	-	-	-	-
Kilgore Companies	Snowstorm Portable Plant	0501013	CO	1	-	-	-	-	-	-	-	No	No	-	-	-	-
RK Hall Construction	Kirby Crusher #15	0301958	AR	-	-	-	-	-	-	-	-	No	No	1	1	100	-
RK Hall Construction	Sawyer Plant	3401950	OK	1	-	-	-	-	-	151	-	No	No	1	1	100	-
RK Hall Construction	Pope's Point	3401930	OK	1	-	-	-	-	-	579	-	No	No	3	3	-	-
Troy Vines	Vines Portable Plant	4103607	TX	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Troy Vines	Vines Sand and Gravel	4103348	TX	3	1	-	-	-	-	-	-	No	No	-	-	-	-
Con-Agg of MO	Boone Quarries Millersburg	2300160	MO	1	1	-	-	-	-	-	-	No	No	-	-	-	-
Con-Agg of MO	Boone Quarries Tipton	2301586	MO	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Con-Agg of MO	Boone Quarries Houstonia	2302119	MO	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Con-Agg of MO	Boone Quarries Riggs	2302099	MO	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Con-Agg of MO	Mid-Missouri Limestone Reform	2301447	MO	1	-	-	-	-	-	-	-	No	No	-	-	-	-
Con-Agg of MO	Mid-Missouri Limestone	2302009	MO	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Con-Agg of MO	Jonesboro Plant 675	0300566	MO	-	-	-	-	-	-	-	-	No	No	-	-	-	-

Con-Agg of MO	Harrisburg Plant 671	0301603	MO	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Con-Agg of MO	Mid-Missouri Limestone New Haven	2301765	MO	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Con-Agg of MO	Wesphalia	2301908	MO	-	-	-	-	-	-	-	-	No	No	-	-	-	-
Con-Agg of MO	Big Spring	2300951	MO	-	-	-	-	-	-	-	-	No	No	-	-	-	-

EX-99.1

Exhibit 99.1

SUMMIT MATERIALS, LLC AND SUBSIDIARIES

Consolidated Balance Sheets

(In thousands)

	March 31,		December 30,
	2018		2017
	(unaudited)		(audited)
Assets
Current assets:
Cash and cash equivalents	$	178,293	$	383,556
Accounts receivable, net		180,099		198,330
Costs and estimated earnings in excess of billings		12,668		9,512
Inventories		226,750		184,439
Other current assets		13,742		7,764
Total current assets		611,552		783,601
Property, plant and equipment, less accumulated depreciation, depletion and amortization (March 31, 2018 - $673,761 and December 30, 2017 - $631,841)		1,672,880		1,615,424
Goodwill		1,110,448		1,037,320
Intangible assets, less accumulated amortization (March 31, 2018 - $7,020 and December 30, 2017 - $6,698)		16,621		16,833
Other assets		52,039		51,063
Total assets	$	3,463,540	$	3,504,241
Liabilities and Member’s Interest
Current liabilities:
Current portion of debt	$	6,354	$	4,765
Current portion of acquisition-related liabilities		34,601		11,587
Accounts payable		111,654		100,637
Accrued expenses		112,560		116,274
Billings in excess of costs and estimated earnings		15,131		15,750
Total current liabilities		280,300		249,013
Long-term debt		1,808,535		1,810,833
Acquisition-related liabilities		25,285		52,239
Other noncurrent liabilities		108,878		100,562
Total liabilities		2,222,998		2,212,647
Commitments and contingencies (see note 10)
Member’s equity		1,379,413		1,359,760
Accumulated deficit		(119,627)		(51,031)
Accumulated other comprehensive loss		(19,244)		(17,135)
Total member’s interest		1,240,542		1,291,594
Total liabilities and member’s interest	$	3,463,540	$	3,504,241

See notes to unaudited consolidated financial statements.

SUMMIT MATERIALS, LLC AND SUBSIDIARIES

Unaudited Consolidated Statements of Operations

(In thousands)

	Three months ended
	March 31,		April 1,
	2018		2017
Revenue:
Product	$	256,807	$	225,017
Service		33,109		34,027
Net revenue		289,916		259,044
Delivery and subcontract revenue		24,505		25,233
Total revenue		314,421		284,277
Cost of revenue (excluding items shown separately below):
Product		197,433		166,968
Service		25,923		25,371
Net cost of revenue		223,356		192,339
Delivery and subcontract cost		24,505		25,233
Total cost of revenue		247,861		217,572
General and administrative expenses		69,861		58,468
Depreciation, depletion, amortization and accretion		46,958		39,748
Transaction costs		1,266		1,273
Operating loss		(51,525)		(32,784)
Interest expense		28,570		24,715
Loss on debt financings		—		190
Other income, net		(7,655)		(657)
Loss from operations before taxes		(72,440)		(57,032)
Income tax benefit		(3,844)		(2,178)
Net loss		(68,596)		(54,854)
Net loss attributable to noncontrolling interest		—		(98)
Net loss attributable to member of Summit LLC	$	(68,596)	$	(54,756)

See notes to unaudited consolidated financial statements.

SUMMIT MATERIALS, LLC AND SUBSIDIARIES

Unaudited Consolidated Statements of Comprehensive Income

(In thousands)

	Three months ended
	March 31,		April 1,
	2018		2017
Net loss	$	(68,596)	$	(54,854)
Other comprehensive (loss) income:
Foreign currency translation adjustment		(3,104)		706
Income on cash flow hedges		995		412
Other comprehensive (loss) income:		(2,109)		1,118
Comprehensive loss		(70,705)		(53,736)
Less comprehensive loss attributable to the noncontrolling interest in consolidated subsidiaries		—		(98)
Comprehensive loss attributable to member of Summit LLC	$	(70,705)	$	(53,638)

See notes to unaudited consolidated financial statements.

SUMMIT MATERIALS, LLC AND SUBSIDIARIES

Unaudited Consolidated Statements of Cash Flows

(In thousands)

	Three months ended
	March 31,		April 1,
	2018		2017
Cash flow from operating activities:
Net loss	$	(68,596)	$	(54,854)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, depletion, amortization and accretion		45,345		43,088
Share-based compensation expense		8,507		4,748
Net gain on asset disposals		(4,077)		(1,665)
Non-cash loss on debt financings		—		85
Change in deferred tax asset, net		(3,689)		(2,354)
Other		1,579		783
Decrease (increase) in operating assets, net of acquisitions:
Accounts receivable, net		27,979		13,847
Inventories		(35,248)		(24,677)
Costs and estimated earnings in excess of billings		(2,678)		(7,480)
Other current assets		(3,202)		1,494
Other assets		747		(743)
(Decrease) increase in operating liabilities, net of acquisitions:
Accounts payable		(8,328)		3,517
Accrued expenses		(8,074)		(19,531)
Billings in excess of costs and estimated earnings		(1,788)		(2,703)
Other liabilities		156		1,369
Net cash used in operating activities		(51,367)		(45,076)
Cash flow from investing activities:
Acquisitions, net of cash acquired		(113,993)		(112,333)
Purchases of property, plant and equipment		(49,505)		(51,056)
Proceeds from the sale of property, plant and equipment		7,788		4,325
Other		1,500		974
Net cash used for investing activities		(154,210)		(158,090)
Cash flow from financing activities:
Capital contributions by member		15,475		238,629
Capital issuance costs		—		(638)
Debt issuance costs		—		(699)
Payments on debt		(3,972)		(3,566)
Payments on acquisition-related liabilities		(6,462)		(13,914)
Distributions		(2,509)		(2,579)
Other		(1,820)		(732)
Net cash provided by financing activities		712		216,501
Impact of foreign currency on cash		(398)		100
Net (decrease) increase in cash		(205,263)		13,435
Cash and cash equivalents – beginning of period		383,556		142,672
Cash and cash equivalents – end of period	$	178,293	$	156,107

See notes to unaudited consolidated financial statements.

SUMMIT MATERIALS, LLC AND SUBSIDIARIES

Unaudited Consolidated Statements of Changes in Member’s Interest and Redeemable Noncontrolling Interest

(In thousands)

	Total Member’s Interest
					Accumulated
					other		Total
	Member’s		Accumulated		comprehensive		member’s
	equity		deficit		loss		interest
Balance — December 30, 2017	$	1,359,760	$	(51,031)	$	(17,135)	$	1,291,594
Net contributed capital		15,475		—		—		15,475
Net loss		—		(68,596)		—		(68,596)
Other comprehensive loss		—		—		(2,109)		(2,109)
Distributions		(2,509)		—		—		(2,509)
Share-based compensation		8,507		—		—		8,507
Other		(1,820)		—		—		(1,820)
Balance — March 31, 2018	$	1,379,413	$	(119,627)	$	(19,244)	$	1,240,542

See notes to unaudited consolidated financial statements.

SUMMIT MATERIALS, LLC

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in tables in thousands, except per share amounts or otherwise noted)

1.SUMMARY OF ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Summit Materials, LLC (“Summit LLC” and, together with its subsidiaries, “Summit,” “we,” “us,” “our” or 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 construction materials, 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”) 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, including Summit LLC.

Summit Inc. Equity Offering—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 limited partnership interests in Summit Holdings (“LP Units”) and caused Summit Holdings to use a portion of the proceeds from the offering to acquire two materials-based companies for a combined purchase price of approximately $110 million in cash.

Basis of Presentation—These unaudited consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures typically included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto as of and for the year ended December 30, 2017. The Company continues to follow the accounting policies set forth in those audited consolidated financial statements.

Management believes that these consolidated interim financial statements include all adjustments, normal and recurring in nature, that are necessary to present fairly the financial position of the Company as of March 31, 2018, the results of operations for the three months ended March 31, 2018 and April 1, 2017, and cash flows for the three months ended March 31, 2018 and April 1, 2017.

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. The Company accounts for investments in entities for which it has an ownership of

20% to 50% using the equity method of accounting. In October 2017, the Company acquired the 20% of Ohio Valley Asphalt, LLC held by noncontrolling interests, making it a wholly owned subsidiary.

Use of Estimates—Preparation of these consolidated financial statements in conformity with 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 those states, as well as specific situations affecting individual customers. Credit granted within the Company’s trade areas has been extended 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 the three months ended March 31, 2018 and April 1, 2017.

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.

Products

We earn revenue from the sale of products, which primarily include aggregates, cement, ready-mix concrete and asphalt, but also include concrete products, 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, control passes, which generally is 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 to 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.

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 is recognized using the input method, which approximates progress towards completion. Under the input 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 input 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 in the three months ended March 31, 2018. 

We recognize claims 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.

When the contract includes variable consideration, we estimate the amount of consideration to which we will be entitled in exchange for transferring the promised goods or services to a customer. The amount of estimated variable consideration included in the transaction price is the amount for which it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Types of variable consideration include, but are not limited to, liquidated damages and other performance penalties and production and placement bonuses.

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 the terms in the original contract; therefore, they are considered part of a single performance obligation. We account 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, we account 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 input 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 estimated earnings represent billings in excess of revenue recognized. Contract assets and liabilities are netted on a contract-by-contract basis.

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 supersedes 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. We adopted this ASU in the first quarter of 2018 using the modified retrospective approach, which did not have a material impact on our consolidated financial statements.

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. We adopted this ASU in the first quarter of 2018 and the adoption of this ASU did not have a material impact on the consolidated financial statements.

2.ACQUISITIONS

Since its formation, the Company has completed numerous acquisitions, 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 period:

	Three months ended		Year ended
	March 31,		December 30,
	2018		2017
West		2		6
East		2		8

The purchase price allocation, primarily the valuation of property, plant and equipment for the 2018 acquisitions, as well as the 2017 acquisitions that occurred after April 1, 2017, has not yet been finalized due to the recent timing of the acquisitions and status of the valuation of property, plant and equipment. The

following table summarizes aggregated information regarding the fair values of the assets acquired and liabilities assumed as of the respective acquisition dates:

	Three months ended		Year ended
	March 31,		December 30,
	2018		2017
Financial assets	$	10,372	$	31,615
Inventories		7,233		8,300
Property, plant and equipment		41,458		160,975
Intangible assets		108		161
Other assets		2,979		4,200
Financial liabilities		(9,307)		(15,501)
Other long-term liabilities		(3,597)		(17,610)
Net assets acquired		49,246		172,140
Goodwill		73,274		247,536
Purchase price		122,520		419,676
Acquisition-related liabilities		(8,527)		(43,452)
Other		—		(1,294)
Net cash paid for acquisitions	$	113,993	$	374,930

Changes in the carrying amount of goodwill, by reportable segment, from December 30, 2017 to March 31, 2018 are summarized as follows:

	West		East		Cement		Total
Balance, December 30, 2017	$	527,290	$	305,374	$	204,656	$	1,037,320
Acquisitions (1)		43,810		30,960		—		74,770
Foreign currency translation adjustments		(1,642)		—		—		(1,642)
Balance, March 31, 2018	$	569,458	$	336,334	$	204,656	$	1,110,448

(1) Reflects goodwill from 2018 acquisitions and working capital adjustments from prior year acquisitions.

The Company’s intangible assets are primarily composed of goodwill, 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. The reserve rights relate to aggregate reserves to which the Company has the rights of ownership, but does 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:

	March 31, 2018						December 30, 2017
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Leases	$	15,998	$	(4,381)	$	11,617	$	15,888	$	(4,178)	$	11,710
Reserve rights		6,234		(1,699)		4,535		6,234		(1,625)		4,609
Trade names		1,000		(783)		217		1,000		(758)		242
Other		409		(157)		252		409		(137)		272
Total intangible assets	$	23,641	$	(7,020)	$	16,621	$	23,531	$	(6,698)	$	16,833

Amortization expense totaled $0.3 million and $0.3 million for the three months ended March 31, 2018 and April 1, 2017, respectively. The estimated amortization expense for the intangible assets for each of the five years subsequent to March 31, 2018 is as follows:

2018 (nine months)	$	938
2019		1,275
2020		1,162
2021		1,120
2022		1,120
2023		1,120
Thereafter		9,886
Total	$	16,621

3.REVENUE RECOGNITION

We derive our revenue predominantly by selling construction materials, 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 service revenue is generated primarily from the asphalt paving services that we provide.

Revenue by product for the three months ended March 31, 2018 and April 1, 2017 is as follows:

	Three months ended
	March 31,		April 1,
	2018		2017
Revenue by product*:
Aggregates	$	67,450	$	61,622
Cement		33,117		39,435
Ready-mix concrete		122,015		93,177
Asphalt		18,141		19,537
Paving and related services		34,336		36,296
Other		39,362		34,210
Total revenue	$	314,421	$	284,277

*     Revenue from liquid asphalt terminals is included in asphalt revenue.

The following table outlines the significant changes in contract assets and contract liability balances for the years ended 2018 and 2017. Also included in the table is the net change in estimate as a percentage of aggregate revenue for such contracts:

		Costs and estimated		Billings in excess
		earnings in		of costs and
		excess of billings		estimated earnings
Balance—December 30, 2017	$	9,512	$	15,750
Changes in revenue billed, contract price or cost estimates		2,678		(1,788)
Acquisitions		483		1,179
Other		(5)		(10)
Balance—March 31, 2018	$	12,668	$	15,131

Accounts receivable, net consisted of the following as of March 31, 2018 and December 30, 2017:

	March 31,		December 30,
	2018		2017
Trade accounts receivable	$	153,563	$	137,696
Construction contract receivables		19,304		49,832
Retention receivables		12,378		14,973
Receivables from related parties		320		468
Accounts receivable		185,565		202,969
Less: Allowance for doubtful accounts		(5,466)		(4,639)
Accounts receivable, net	$	180,099	$	198,330

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.

4.INVENTORIES

Inventories consisted of the following as of March 31, 2018 and December 30, 2017:

	March 31,		December 30,
	2018		2017
Aggregate stockpiles	$	142,817	$	126,791
Finished goods		54,258		34,667
Work in process		8,845		7,729
Raw materials		20,830		15,252
Total	$	226,750	$	184,439

5.ACCRUED EXPENSES

Accrued expenses consisted of the following as of March 31, 2018 and December 30, 2017:

	March 31,		December 30,
	2018		2017
Interest	$	23,547	$	24,095
Payroll and benefits		22,278		33,915
Capital lease obligations		22,733		19,276
Insurance		11,423		11,455
Non-income taxes		9,784		7,467
Professional fees		2,785		1,717
Other (1)		20,010		18,349
Total	$	112,560	$	116,274

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

6.DEBT

Debt consisted of the following as of March 31, 2018 and December 30, 2017:

	March 31,		December 30,
	2018		2017
Term Loan, due 2024:
$633.8 million and $635.4 million, net of $1.5 million and $1.6 million discount at March 31, 2018 and December 30, 2017, respectively	$	632,275	$	633,805
81⁄2% Senior Notes, due 2022		250,000		250,000
61⁄8% Senior Notes, due 2023:
$650.0 million, net of $1.3 million and $1.4 million discount at March 31, 2018 and December 30, 2017, respectively		648,710		648,650
51⁄8% Senior Notes, due 2025		300,000		300,000
Total		1,830,985		1,832,455
Current portion of long-term debt		6,354		4,765
Long-term debt	$	1,824,631	$	1,827,690

The contractual payments of long-term debt, including current maturities, for the five years subsequent to March 31, 2018, are as follows:

2018 (nine months)	$	3,177
2019		6,354
2020		7,942
2021		6,354
2022		256,354
2023		656,354
Thereafter		897,253
Total		1,833,788
Less: Original issue net discount		(2,803)
Less: Capitalized loan costs		(16,096)
Total debt	$	1,814,889

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 5.125% 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 into 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 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.

As of March 31, 2018 and December 30, 2017, 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 3.00% for LIBOR rate loans.

There were no outstanding borrowings under the revolving credit facility as of March 31, 2018 and December 30, 2017, leaving remaining borrowing capacity of $219.6 million as of March 31, 2018, which is net of $15.4 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 March 31, 2018 and December 30, 2017, Summit LLC was in compliance with all financial covenants.

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 three months ended March 31, 2018 and April 1, 2017:

	Deferred financing fees
Balance—December 30, 2017	$	19,033
Amortization		(1,013)
Balance—March 31, 2018	$	18,020
Balance—December 31, 2016	$	18,290
Loan origination fees		699
Amortization		(917)
Write off of deferred financing fees		(45)
Balance—April 1, 2017	$	18,027

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 March 31, 2018 or December 30, 2017.

7.INCOME TAXES

Summit LLC is a limited liability company and passes its tax attributes for federal and state tax purposes to its parent company and is generally not subject to federal or state income tax. However, certain subsidiary entities file federal, state and Canadian income tax returns due to their status as taxable entities in the respective jurisdiction. The effective income tax rate for the C Corporations differs from the statutory federal rate primarily due to (1) tax depletion expense 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 March 31, 2018 and December 30, 2017, the Company had 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 three months ended March 31, 2018 and April 1, 2017.

8.MEMBERS’ INTEREST

Summit Inc.’s Equity Offering—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.

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		(loss) income
Balance — December 30, 2017	$	(6,053)	$	(10,022)	$	(1,060)	$	(17,135)
Foreign currency translation adjustment		—		(3,104)		—		(3,104)
Income on cash flow hedges		—		—		995		995
Balance — March 31, 2018	$	(6,053)	$	(13,126)	$	(65)	$	(19,244)
Balance — December 31, 2016	$	(7,181)	$	(17,790)	$	(2,473)	$	(27,444)
Foreign currency translation adjustment		—		706		—		706
Income on cash flow hedges		—		—		412		412
Balance — April 1, 2017	$	(7,181)	$	(17,084)	$	(2,061)	$	(26,326)

9.SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flow information is as follows:

	Three months ended
	March 31,		April 1,
	2018		2017
Cash payments:
Interest	$	26,927	$	26,727
Income taxes		1,582		230

10.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.

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.

The Company has asset retirement obligations arising from regulatory and contractual requirements to perform reclamation activities at the time certain quarries and landfills are closed. As of March 31, 2018 and December 30, 2017, $20.5 million and $20.5 million, respectively, were included in other noncurrent liabilities on the consolidated balance sheets and $4.0 million and $3.9 million, respectively, were included in accrued expenses for future reclamation costs. The total undiscounted anticipated costs for site reclamation as of March 31, 2018 and December 30, 2017 were $71.7 million and $67.9 million, respectively.

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.

11.FAIR VALUE

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 (loss) 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 March 31, 2018 and December 30, 2017 was:

	March 31,		December 30,
	2018		2017
Current portion of acquisition-related liabilities and Accrued expenses:
Contingent consideration	$	23,474	$	594
Cash flow hedges		123		488
Acquisition-related liabilities and Other noncurrent liabilities
Contingent consideration	$	4,025	$	34,301
Cash flow hedges		—		492

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 is based on observable, or Level 2, inputs such as interest rates, bond yields and prices in inactive markets. There were no material valuation adjustments to contingent consideration or derivatives as of March 31, 2018 and April 1, 2017.

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 March 31, 2018 and December 30, 2017 was:

	March 31, 2018				December 30, 2017
	Fair Value		Carrying Value		Fair Value		Carrying Value
Level 2
Long-term debt(1)	$	1,860,811	$	1,830,985	$	1,893,239	$	1,832,455
Level 3
Current portion of deferred consideration and noncompete obligations(2)		11,127		11,127		10,993		10,993
Long term portion of deferred consideration and noncompete obligations(3)		21,260		21,260		17,938		17,938

(1) $6.4 million and $4.8 million included in current portion of debt as of March 31, 2018 and December 30, 2017, 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.

12.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, our Company’s Chief Operating Decision Maker (“CODM”). The CODM primarily evaluates the performance of the Company’s 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 March 31, 2018 and December 30, 2017 and for the three months ended March 31, 2018 and April 1, 2017:

	Three months ended
	March 31,		April 1,
	2018		2017
Revenue*:
West	$	181,713	$	143,219
East		95,157		97,223
Cement		37,551		43,835
Total revenue	$	314,421	$	284,277

*     Intercompany sales are immaterial and the presentation above only reflects sales to external customers.

	Three months ended
	March 31,		April 1,
	2018		2017
Loss from continuing operations before taxes	$	(72,440)	$	(57,032)
Interest expense		28,570		24,715
Depreciation, depletion and amortization		46,543		39,304
Accretion		415		444
Loss on debt financings		—		190
Transaction costs		1,266		1,273
Non-cash compensation		8,507		4,748
Other		(7,348)		(12)
Total Adjusted EBITDA	$	5,513	$	13,630
Total Adjusted EBITDA by Segment:
West	$	16,173	$	15,699
East		(3,203)		4,348
Cement		3,667		2,685
Corporate and other		(11,124)		(9,102)
Total Adjusted EBITDA	$	5,513	$	13,630

	Three months ended
	March 31,		April 1,
	2018		2017
Purchases of property, plant and equipment
West	$	28,909	$	26,562
East		14,464		15,706
Cement		4,468		7,673
Total reportable segments		47,841		49,941
Corporate and other		1,664		1,115
Total purchases of property, plant and equipment	$	49,505	$	51,056

	Three months ended
	March 31,		April 1,
	2018		2017
Depreciation, depletion, amortization and accretion:
West	$	22,151	$	15,663
East		17,727		15,378
Cement		6,370		8,048
Total reportable segments		46,248		39,089
Corporate and other		710		659
Total depreciation, depletion, amortization and accretion	$	46,958	$	39,748

	March 31,		December 30,
	2018		2017
Total assets:
West	$	1,313,661	$	1,225,463
East		1,083,989		1,035,609
Cement		887,737		870,652
Total reportable segments		3,285,387		3,131,724
Corporate and other		178,153		372,517
Total	$	3,463,540	$	3,504,241

13.     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. Finance Corp. does not and will not have any assets or operations other than as may be incidental to its activities as a co-issuer of the Senior Notes and other indebtedness. 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.

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

March 31, 2018

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	169,192	$	5,949	$	12,841	$	(9,689)	$	178,293
Accounts receivable, net		—		168,155		11,988		(44)		180,099
Intercompany receivables		560,676		427,497		—		(988,173)		—
Cost and estimated earnings in excess of billings		—		12,324		344		—		12,668
Inventories		—		222,277		4,473		—		226,750
Other current assets		1,232		10,977		1,533		—		13,742
Total current assets		731,100		847,179		31,179		(997,906)		611,552
Property, plant and equipment, net		10,159		1,626,147		36,574		—		1,672,880
Goodwill		—		1,050,976		59,472		—		1,110,448
Intangible assets, net		—		16,621		—		—		16,621
Other assets		2,958,528		159,408		1,322		(3,067,219)		52,039
Total assets	$	3,699,787	$	3,700,331	$	128,547	$	(4,065,125)	$	3,463,540
Liabilities and Member’s Interest
Current liabilities:
Current portion of debt	$	6,354	$	—	$	—	$	—	$	6,354
Current portion of acquisition-related liabilities		—		34,601		—		—		34,601
Accounts payable		4,769		100,108		6,821		(44)		111,654
Accrued expenses		44,605		75,989		1,655		(9,689)		112,560
Intercompany payables		591,792		393,342		3,039		(988,173)		—
Billings in excess of costs and estimated earnings		—		14,736		395		—		15,131
Total current liabilities		647,520		618,776		11,910		(997,906)		280,300
Long-term debt		1,808,535		—		—		—		1,808,535
Acquisition-related liabilities		—		25,285		—		—		25,285
Other noncurrent liabilities		3,190		201,719		75,286		(171,317)		108,878
Total liabilities		2,459,245		845,780		87,196		(1,169,223)		2,222,998
Total member's interest		1,240,542		2,854,551		41,351		(2,895,902)		1,240,542
Total liabilities and member’s interest	$	3,699,787	$	3,700,331	$	128,547	$	(4,065,125)	$	3,463,540

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 Statements of Operations

For the three months ended March 31, 2018

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—	$	300,658	$	15,181	$	(1,418)	$	314,421
Cost of revenue (excluding items shown separately below)		—		238,127		11,152		(1,418)		247,861
General and administrative expenses		20,947		47,177		3,003		—		71,127
Depreciation, depletion, amortization and accretion		710		44,993		1,255		—		46,958
Operating loss		(21,657)		(29,639)		(229)		—		(51,525)
Other income, net		17,365		(6,858)		51		(18,213)		(7,655)
Interest expense (income)		29,582		(2,203)		1,191		—		28,570
Loss from operations before taxes		(68,604)		(20,578)		(1,471)		18,213		(72,440)
Income tax expense		(8)		(3,454)		(382)		—		(3,844)
Net loss attributable to member of Summit Materials, LLC	$	(68,596)	$	(17,124)	$	(1,089)	$	18,213	$	(68,596)
Comprehensive (loss) income attributable to member of Summit Materials, LLC	$	(70,705)	$	(18,119)	$	2,015	$	16,104	$	(70,705)

Condensed Consolidating Statements of Operations

For the three months ended April 1, 2017

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—		276,375		9,410		(1,508)	$	284,277
Cost of revenue (excluding items shown separately below)		—		211,992		7,088		(1,508)		217,572
General and administrative expenses		15,050		43,373		1,318		—		59,741
Depreciation, depletion, amortization and accretion		658		38,439		651		—		39,748
Operating (loss) income		(15,708)		(17,429)		353		—		(32,784)
Other expense (income), net		15,410		235		(35)		(16,077)		(467)
Interest expense		23,638		213		864		—		24,715
Loss from operations before taxes		(54,756)		(17,877)		(476)		16,077		(57,032)
Income (benefit) tax benefit		—		(2,180)		2		—		(2,178)
Net loss		(54,756)		(15,697)		(478)		16,077		(54,854)
Net loss attributable to noncontrolling interest		—		—		—		(98)		(98)
Net loss attributable to member of Summit Materials, LLC	$	(54,756)	$	(15,697)	$	(478)	$	16,175	$	(54,756)
Comprehensive loss attributable to member of Summit Materials, LLC	$	(53,638)	$	(16,109)	$	(1,184)	$	17,293	$	(53,638)

Condensed Consolidating Statements of Cash Flows

For the three months ended March 31, 2018

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(38,210)	$	(15,050)	$	1,893	$	—	$	(51,367)
Cash flow from investing activities:
Acquisitions, net of cash acquired		—		(113,993)		—		—		(113,993)
Purchase of property, plant and equipment		(1,664)		(46,363)		(1,478)		—		(49,505)
Proceeds from the sale of property, plant, and equipment		—		7,668		120		—		7,788
Other		—		1,500		—		—		1,500
Net cash used for investing activities		(1,664)		(151,188)		(1,358)		—		(154,210)
Cash flow from financing activities:
Proceeds from investment by member		(73,661)		89,136		—		—		15,475
Loans received from and payments made on loans from other Summit Companies		(83,090)		82,599		(2,192)		2,683		—
Payments on long-term debt		(1,588)		(2,380)		(4)		—		(3,972)
Payments on acquisition-related liabilities		—		(6,462)		—		—		(6,462)
Distributions from partnership		(2,509)		—		—		—		(2,509)
Other		(827)		(960)		(33)		—		(1,820)
Net cash (used in) provided by financing activities		(161,675)		161,933		(2,229)		2,683		712
Impact of cash on foreign currency		—		—		(398)		—		(398)
Net decrease in cash		(201,549)		(4,305)		(2,092)		2,683		(205,263)
Cash — Beginning of period		370,741		10,254		14,933		(12,372)		383,556
Cash — End of period	$	169,192	$	5,949	$	12,841	$	(9,689)	$	178,293

Condensed Consolidating Statements of Cash Flows

For the three months ended April 1, 2017

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(42,891)	$	(4,035)	$	1,850	$	—	$	(45,076)
Cash flow from investing activities:
Acquisitions, net of cash acquired		—		(112,333)		—		—		(112,333)
Purchase of property, plant and equipment		(1,115)		(49,931)		(10)		—		(51,056)
Proceeds from the sale of property, plant, and equipment		—		4,325		—		—		4,325
Other		—		974		—		—		974
Net cash used for investing activities		(1,115)		(156,965)		(10)		—		(158,090)
Cash flow from financing activities:
Proceeds from investment by member		164,795		73,834		—		—		238,629
Capital issuance costs		(638)		—		—		—		(638)
Loans received from and payments made on loans from other Summit Companies		(92,904)		101,616		(154)		(8,558)		—
Payments on long-term debt		(1,625)		(1,941)		—		—		(3,566)
Payments on acquisition-related liabilities		—		(13,914)		—		—		(13,914)
Financing costs		(699)		—		—		—		(699)
Distributions from partnership		(2,579)		—		—		—		(2,579)
Other		(319)		(392)		(21)		—		(732)
Net cash provided by (used in) financing activities		66,031		159,203		(154)		(8,558)		216,501
Impact of cash on foreign currency		—		—		100		—		100
Net increase (decrease) in cash		22,025		(1,797)		1,786		(8,558)		13,435
Cash — Beginning of period		133,862		4,820		14,656		(10,666)		142,672
Cash — End of period	$	155,887	$	3,023	$	16,442	$	(19,224)	$	156,107

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 01, 2018
Document Information [Line Items]
Entity Registrant Name	Summit Materials, Inc.
Entity Central Index Key	0001621563
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-29
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Membership interests description	As of May 1, 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		111,491,743
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-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-29
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Membership interests percentage	100.00%

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 30, 2017
Current assets:
Cash and cash equivalents	$ 178,293	$ 383,556
Accounts receivable, net	180,099	198,330
Costs and estimated earnings in excess of billings	12,668	9,512
Inventories	226,750	184,439
Other current assets	13,742	7,764
Total current assets	611,552	783,601
Property, plant and equipment, less accumulated depreciation, depletion and amortization (March 31, 2018 - $673,761 and December 30, 2017 - $631,841)	1,672,880	1,615,424
Goodwill	1,109,448	1,036,320
Intangible assets, less accumulated amortization (March 31, 2018 - $7,020 and December 30, 2017 - $6,698)	16,621	16,833
Deferred tax assets, less valuation allowance (March 31, 2018 and December 30, 2017 - $1,675)	297,729	284,092
Other assets	48,350	51,063
Total assets	3,756,580	3,787,333
Current liabilities:
Current portion of debt	6,354	4,765
Current portion of acquisition-related liabilities	37,101	14,087
Accounts payable	110,348	98,744
Accrued expenses	112,329	116,629
Billings in excess of costs and estimated earnings	15,131	15,750
Total current liabilities	281,263	249,975
Long-term debt	1,808,535	1,810,833
Acquisition-related liabilities	28,894	58,135
Tax receivable agreement liability	332,162	331,340
Other noncurrent liabilities	70,379	65,329
Total liabilities	2,521,233	2,515,612
Commitments and contingencies
Stockholders' equity / Member's interest
Additional paid-in capital	1,176,906	1,154,220
Accumulated earnings	42,104	95,833
Accumulated other comprehensive income (loss)	4,823	7,386
Stockholders' equity	1,224,949	1,258,543
Noncontrolling interest in Summit Materials, Inc.	10,398	13,178
Total stockholders' equity	1,235,347	1,271,721
Total liabilities and stockholders' equity / member's interest	3,756,580	3,787,333
Common Class A
Stockholders' equity / Member's interest
Common stock	1,116	1,104
Summit Materials, LLC
Current assets:
Cash and cash equivalents	178,293	383,556
Accounts receivable, net	180,099	198,330
Costs and estimated earnings in excess of billings	12,668	9,512
Inventories	226,750	184,439
Other current assets	13,742	7,764
Total current assets	611,552	783,601
Property, plant and equipment, less accumulated depreciation, depletion and amortization (March 31, 2018 - $673,761 and December 30, 2017 - $631,841)	1,672,880	1,615,424
Goodwill	1,110,448	1,037,320
Intangible assets, less accumulated amortization (March 31, 2018 - $7,020 and December 30, 2017 - $6,698)	16,621	16,833
Other assets	52,039	51,063
Total assets	3,463,540	3,504,241
Current liabilities:
Current portion of debt	6,354	4,765
Current portion of acquisition-related liabilities	34,601	11,587
Accounts payable	111,654	100,637
Accrued expenses	112,560	116,274
Billings in excess of costs and estimated earnings	15,131	15,750
Total current liabilities	280,300	249,013
Long-term debt	1,808,535	1,810,833
Acquisition-related liabilities	25,285	52,239
Other noncurrent liabilities	108,878	100,562
Total liabilities	2,222,998	2,212,647
Commitments and contingencies
Stockholders' equity / Member's interest
Member's equity	1,379,413	1,359,760
Accumulated earnings	(119,627)	(51,031)
Accumulated other comprehensive income (loss)	(19,244)	(17,135)
Total member's interest	1,240,542	1,291,594
Total liabilities and stockholders' equity / member's interest	$ 3,463,540	$ 3,504,241

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 30, 2017
Property, plant and equipment, accumulated depreciation, depletion and amortization	$ 673,761	$ 631,841
Intangible assets, accumulated amortization	7,020	6,698
Deferred tax assets, valuation allowance	1,675	1,675
Summit Materials, LLC
Property, plant and equipment, accumulated depreciation, depletion and amortization	673,761	631,841
Intangible assets, accumulated amortization	$ 7,020	$ 6,698
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	111,488,573	110,350,594
Common stock, shares outstanding	111,488,573	110,350,594
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	3 Months Ended
	Mar. 31, 2018	Apr. 01, 2017
Revenue:
Product	$ 256,807	$ 225,017
Service	33,109	34,027
Net revenue	289,916	259,044
Delivery and subcontract revenue	24,505	25,233
Total revenue	314,421	284,277
Cost of revenue (excluding items shown separately below):
Product	197,433	166,968
Service	25,923	25,371
Net cost of revenue	223,356	192,339
Delivery and subcontract cost	24,505	25,233
Total cost of revenue	247,861	217,572
General and administrative expenses	69,861	58,468
Depreciation, depletion, amortization and accretion	46,958	39,748
Transaction costs	1,266	1,273
Operating income	(51,525)	(32,784)
Interest expense	28,784	24,969
Loss on debt financings		190
Other expense (income), net	7,655	657
(Loss) income from operations before taxes	(72,654)	(57,286)
Income tax benefit	(16,706)	(2,178)
Net income	(55,948)	(55,108)
Net income (loss) attributable to noncontrolling interest in subsidiaries		(98)
Net income (loss) attributable to Summit Holdings	(2,219)	(2,566)
Net income attributable to Summit Materials, Inc. / member of Summit Materials, LLC	(53,729)	(52,444)
Summit Materials, LLC
Revenue:
Product	256,807	225,017
Service	33,109	34,027
Net revenue	289,916	259,044
Delivery and subcontract revenue	24,505	25,233
Total revenue	314,421	284,277
Cost of revenue (excluding items shown separately below):
Product	197,433	166,968
Service	25,923	25,371
Net cost of revenue	223,356	192,339
Delivery and subcontract cost	24,505	25,233
Total cost of revenue	247,861	217,572
General and administrative expenses	69,861	58,468
Depreciation, depletion, amortization and accretion	46,958	39,748
Transaction costs	1,266	1,273
Operating income	(51,525)	(32,784)
Interest expense	28,570	24,715
Loss on debt financings		190
Other expense (income), net	7,655	657
(Loss) income from operations before taxes	(72,440)	(57,032)
Income tax benefit	(3,844)	(2,178)
Net income	(68,596)	(54,854)
Net income (loss) attributable to noncontrolling interest		(98)
Net income attributable to Summit Materials, Inc. / member of Summit Materials, LLC	$ (68,596)	$ (54,756)
Common Class A
Income per share of Class A common stock:
Basic	$ (0.49)	$ (0.49)
Diluted	$ (0.49)	$ (0.49)
Weighted average shares of Class A common stock:
Basic	110,659,098	106,692,717
Diluted	110,659,098	106,692,717

XML

Consolidated Statements of Comprehensive Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Apr. 01, 2017
Net loss	$ (55,948)	$ (55,108)
Other comprehensive (loss) income:
Foreign currency translation adjustment	(3,104)	706
Income on cash flow hedges	995	412
Less tax effect of other comprehensive (loss) income items	520
Other comprehensive (loss) income	(2,629)	1,118
Comprehensive loss	(58,577)	(53,990)
Less comprehensive loss attributable to the noncontrolling interest in consolidated subsidiaries		(98)
Less comprehensive loss attributable Summit Holdings	(2,285)	(1,448)
Comprehensive loss attributable to Summit Materials, Inc. / Summit Materials, LLC	(56,292)	(52,444)
Summit Materials, LLC
Net loss	(68,596)	(54,854)
Other comprehensive (loss) income:
Foreign currency translation adjustment	(3,104)	706
Income on cash flow hedges	995	412
Other comprehensive (loss) income	(2,109)	1,118
Comprehensive loss	(70,705)	(53,736)
Less comprehensive income (loss) attributable to noncontrolling interest		(98)
Comprehensive loss attributable to Summit Materials, Inc. / Summit Materials, LLC	$ (70,705)	$ (53,638)

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Apr. 01, 2017
Cash flow from operating activities:
Net loss	$ (55,948)	$ (55,108)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, depletion, amortization and accretion	45,559	43,343
Share-based compensation expense	8,507	4,748
Net gain on asset disposals	(4,077)	(1,665)
Non-cash loss on debt financings		85
Change in deferred tax asset, net	(17,373)	(2,337)
Other	1,579	783
Decrease (increase) in operating assets, net of acquisitions:
Accounts receivable, net	27,979	13,847
Inventories	(35,248)	(24,677)
Costs and estimated earnings in excess of billings	(2,678)	(7,480)
Other current assets	(3,202)	1,477
Other assets	747	(726)
(Decrease) increase in operating liabilities, net of acquisitions:
Accounts payable	(7,742)	4,169
Accrued expenses	(8,660)	(20,664)
Billings in excess of costs and estimated earnings	(1,788)	(2,703)
Tax receivable agreement liability	822
Other liabilities	156	1,369
Net cash used in operating activities	(51,367)	(45,539)
Cash flow from investing activities:
Acquisitions, net of cash acquired	(113,993)	(112,333)
Purchases of property, plant and equipment	(49,505)	(51,056)
Proceeds from the sale of property, plant and equipment	7,788	4,325
Other	1,500	974
Net cash used for investing activities	(154,210)	(158,090)
Cash flow from financing activities:
Proceeds from equity offerings		237,600
Capital issuance costs		(638)
Debt issuance costs		(699)
Payments on debt	(3,972)	(3,566)
Payments on acquisition-related liabilities	(8,962)	(16,414)
Distributions from partnership	(9)	(79)
Proceeds from stock option exercises	15,475	771
Other	(1,820)	(731)
Net cash provided by financing activities	712	216,244
Impact of cash on foreign currency	(398)	100
Net increase (decrease) in cash	(205,263)	12,715
Cash and cash equivalents-beginning of period	383,556	143,392
Cash and cash equivalents-end of period	178,293	156,107
Summit Materials, LLC
Cash flow from operating activities:
Net loss	(68,596)	(54,854)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation, depletion, amortization and accretion	45,345	43,088
Share-based compensation expense	8,507	4,748
Net gain on asset disposals	(4,077)	(1,665)
Non-cash loss on debt financings		85
Change in deferred tax asset, net	(3,689)	(2,354)
Other	1,579	783
Decrease (increase) in operating assets, net of acquisitions:
Accounts receivable, net	27,979	13,847
Inventories	(35,248)	(24,677)
Costs and estimated earnings in excess of billings	(2,678)	(7,480)
Other current assets	(3,202)	1,494
Other assets	747	(743)
(Decrease) increase in operating liabilities, net of acquisitions:
Accounts payable	(8,328)	3,517
Accrued expenses	(8,074)	(19,531)
Billings in excess of costs and estimated earnings	(1,788)	(2,703)
Other liabilities	156	1,369
Net cash used in operating activities	(51,367)	(45,076)
Cash flow from investing activities:
Acquisitions, net of cash acquired	(113,993)	(112,333)
Purchases of property, plant and equipment	(49,505)	(51,056)
Proceeds from the sale of property, plant and equipment	7,788	4,325
Other	1,500	974
Net cash used for investing activities	(154,210)	(158,090)
Cash flow from financing activities:
Capital contributions by member	15,475	238,629
Capital issuance costs		(638)
Debt issuance costs		(699)
Payments on debt	(3,972)	(3,566)
Payments on acquisition-related liabilities	(6,462)	(13,914)
Distributions from partnership	(2,509)	(2,579)
Other	(1,820)	(732)
Net cash provided by financing activities	712	216,501
Impact of cash on foreign currency	(398)	100
Net increase (decrease) in cash	(205,263)	13,435
Cash and cash equivalents-beginning of period	383,556	142,672
Cash and cash equivalents-end of period	$ 178,293	$ 156,107

XML

Consolidated Statements of Changes in Stockholders' Equity / Member's Interest and Redeemable Noncontrolling Interest - USD ($) $ in Thousands	Summit Materials, LLC Members' equity	Summit Materials, LLC Total Member's Interest	Summit Materials, LLC Accumulated Earnings/Deficit	Summit Materials, LLC Accumulated Other Comprehensive Operations	Summit Materials, LLC	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 (in shares) at Dec. 31, 2016												97,554,278
Increase (decrease) in stockholders' equity / members' interest and redeemable noncontrolling interest
Net loss					$ (54,854)									$ (55,108)
LP Unit exchanges (in shares)												236,095
Other comprehensive (loss) income					1,118									1,118
Other (in shares)												134,423
Ending Balance (in shares) at Apr. 01, 2017												107,924,796
Beginning Balance at Dec. 30, 2017						$ 95,833	$ 7,386	$ 1,104		$ 1,154,220	$ 13,178			1,271,721
Beginning Balance at Dec. 30, 2017	$ 1,359,760	$ 1,291,594	$ (51,031)	$ (17,135)	1,291,594
Beginning Balance (in shares) at Dec. 30, 2017								110,350,594	100			110,350,594	100
Increase (decrease) in stockholders' equity / members' interest and redeemable noncontrolling interest
Net contributed capital	15,475	15,475
Net loss		(68,596)	(68,596)		(68,596)	(53,729)					(2,219)			(55,948)
LP Unit exchanges								$ 1		485	(486)
LP Unit exchanges (in shares)								104,104				104,104
Other comprehensive (loss) income		(2,109)		(2,109)	(2,109)		(2,563)				(66)			(2,629)
Share-based compensation	8,507	8,507								8,507				8,507
Stock Option Exercises								$ 9		15,468				15,477
Options, Exercised (in shares)								856,915
Distributions	(2,509)	(2,509)
Other								$ 2		(1,774)				(1,772)
Other (in shares)								176,960				1,033,875
Other	(1,820)	(1,820)
Distributions from partnership											(9)			(9)
Ending Balance at Mar. 31, 2018						$ 42,104	$ 4,823	$ 1,116		$ 1,176,906	$ 10,398			$ 1,235,347
Ending Balance at Mar. 31, 2018	$ 1,379,413	$ 1,240,542	$ (119,627)	$ (19,244)	$ 1,240,542
Ending Balance (in shares) at Mar. 31, 2018								111,488,573	100			111,488,573	100

XML

Summary of Organization and Significant Accounting Policies

3 Months Ended

Mar. 31, 2018

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, “Summit,” “we,” “us,” “our” or 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 construction materials, 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 (“IPO”), Summit Inc. became a holding corporation operating and controlling all of the business and affairs of Summit Holdings and its subsidiaries and, through Summit Holdings, conducts its business. Summit Inc. owns the majority of the partnership interests of Summit Holdings (see note 9, 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 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.

Basis of Presentation—These unaudited consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures typically included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and the notes thereto as of and for the year ended December 30, 2017. The Company continues to follow the accounting policies set forth in those audited consolidated financial statements.

Management believes that these consolidated interim financial statements include all adjustments, normal and recurring in nature, that are necessary to present fairly the financial position of the Company as of March 31, 2018, the results of operations for the three months ended March 31, 2018 and April 1, 2017 and cash flows for the three months ended March 31, 2018 and April 1, 2017.  

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.

For a summary of the changes in Summit Inc.’s ownership of Summit Holdings, see Note 9, 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. In October 2017, the Company acquired the 20% of Ohio Valley Asphalt, LLC held by noncontrolling interests, making it a wholly owned subsidiary.

Use of Estimates—Preparation of these consolidated financial statements in conformity with 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 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 those states, as well as specific situations affecting individual customers. Credit granted within the Company’s trade areas has been extended 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 the three months ended March 31, 2018 and April 1, 2017.

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.

Products

We earn revenue from the sale of products, which primarily include aggregates, cement, ready-mix concrete and asphalt, but also include concrete products, 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, control passes, which generally is 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 to 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.

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 is recognized using the input method, which approximates progress towards completion. Under the input 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 input 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 in the three months ended March 31, 2018.

We recognize claims 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.

When the contract includes variable consideration, we estimate the amount of consideration to which we will be entitled in exchange for transferring the promised goods or services to a customer. The amount of estimated variable consideration included in the transaction price is the amount for which it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Types of variable consideration include, but are not limited to, liquidated damages and other performance penalties and production and placement bonuses.

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 the terms in the original contract; therefore, they are considered part of a single performance obligation. We account 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, we account 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 input 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 estimated earnings represent billings in excess of revenue recognized. Contract assets and liabilities are netted on a contract-by-contract basis.

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.

Tax Receivable Agreement— When Class A limited partnership units of Summit Holdings (“LP Units”) are exchanged for shares of Class A common stock of Summit Inc. purchases LP Units for cash, 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 requires 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.

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, and the remaining 15% as an increase to additional paid-in capital. If a deferred tax asset subject to the TRA is determined not to be realizable and therefore subject to a valuation allowance, we do not record a TRA liability for 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.

Reclassification —The Company reclassified $(2.4) million from Deferred income tax benefit and $17,000 from Other current assets to Change in deferred tax asset, net for the three months ended April 1, 2017 consolidated statements of cash flows, to conform to the current year presentation.

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 supersedes 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. We adopted this ASU in the first quarter of 2018 using the modified retrospective approach, which did not have a material impact on our consolidated financial statements.

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. We adopted this ASU in the first quarter of 2018 and the adoption of this ASU did not have a material impact on the consolidated financial statements.

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, “Summit,” “we,” “us,” “our” or 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 construction materials, 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”) 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, including Summit LLC.

Summit Inc. Equity Offering—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 limited partnership interests in Summit Holdings (“LP Units”) and caused Summit Holdings to use a portion of the proceeds from the offering to acquire two materials-based companies for a combined purchase price of approximately $110 million in cash.

Basis of Presentation—These unaudited consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures typically included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto as of and for the year ended December 30, 2017. The Company continues to follow the accounting policies set forth in those audited consolidated financial statements.

Management believes that these consolidated interim financial statements include all adjustments, normal and recurring in nature, that are necessary to present fairly the financial position of the Company as of March 31, 2018, the results of operations for the three months ended March 31, 2018 and April 1, 2017, and cash flows for the three months ended March 31, 2018 and April 1, 2017.  

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. The Company accounts for investments in entities for which it has an ownership of 20% to 50% using the equity method of accounting. In October 2017, the Company acquired the 20% of Ohio Valley Asphalt, LLC held by noncontrolling interests, making it a wholly owned subsidiary.

Use of Estimates—Preparation of these consolidated financial statements in conformity with 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 those states, as well as specific situations affecting individual customers. Credit granted within the Company’s trade areas has been extended 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 the three months ended March 31, 2018 and April 1, 2017.

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.

Products

We earn revenue from the sale of products, which primarily include aggregates, cement, ready-mix concrete and asphalt, but also include concrete products, 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, control passes, which generally is 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 to 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.

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 is recognized using the input method, which approximates progress towards completion. Under the input 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 input 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 in the three months ended March 31, 2018.

We recognize claims 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.

When the contract includes variable consideration, we estimate the amount of consideration to which we will be entitled in exchange for transferring the promised goods or services to a customer. The amount of estimated variable consideration included in the transaction price is the amount for which it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Types of variable consideration include, but are not limited to, liquidated damages and other performance penalties and production and placement bonuses.

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 the terms in the original contract; therefore, they are considered part of a single performance obligation. We account 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, we account 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 input 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 estimated earnings represent billings in excess of revenue recognized. Contract assets and liabilities are netted on a contract-by-contract basis.

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 supersedes 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. We adopted this ASU in the first quarter of 2018 using the modified retrospective approach, which did not have a material impact on our consolidated financial statements.

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. We adopted this ASU in the first quarter of 2018 and the adoption of this ASU did not have a material impact on the consolidated financial statements.

XML

Acquisitions

3 Months Ended

Mar. 31, 2018

Acquisitions

2.ACQUISITIONS

Since its formation, the Company has completed numerous acquisitions, 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 period:

	Three months ended		Year ended
	March 31,		December 30,
	2018		2017
West		2		6
East		2		8

The purchase price allocation, primarily the valuation of property, plant and equipment for the 2018 acquisitions, as well as the 2017 acquisitions that occurred after April 1, 2017, has not yet been finalized due to the recent timing of the acquisitions and status of the valuation of property, plant and equipment. The following table summarizes aggregated information regarding the fair values of the assets acquired and liabilities assumed as of the respective acquisition dates:

	Three months ended		Year ended
	March 31,		December 30,
	2018		2017
Financial assets	$	10,372	$	31,615
Inventories		7,233		8,300
Property, plant and equipment		41,458		160,975
Intangible assets		108		161
Other assets		2,979		4,200
Financial liabilities		(9,307)		(15,501)
Other long-term liabilities		(3,597)		(17,610)
Net assets acquired		49,246		172,140
Goodwill		73,274		247,536
Purchase price		122,520		419,676
Acquisition-related liabilities		(8,527)		(43,452)
Other		—		(1,294)
Net cash paid for acquisitions	$	113,993	$	374,930

Changes in the carrying amount of goodwill, by reportable segment, from December 30, 2017 to March 31, 2018 are summarized as follows:

	West		East		Cement		Total
Balance, December 30, 2017	$	526,290	$	305,374	$	204,656	$	1,036,320
Acquisitions (1)		43,810		30,960		—		74,770
Foreign currency translation adjustments		(1,642)		—		—		(1,642)
Balance, March 31, 2018	$	568,458	$	336,334	$	204,656	$	1,109,448

(1) Reflects goodwill from 2018 acquisitions and working capital adjustments from prior year acquisitions.

The Company’s intangible assets are primarily composed of goodwill, 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. The reserve rights relate to aggregate reserves to which the Company has the rights of ownership, but does 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:

	March 31, 2018						December 30, 2017
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Leases	$	15,998	$	(4,381)	$	11,617	$	15,888	$	(4,178)	$	11,710
Reserve rights		6,234		(1,699)		4,535		6,234		(1,625)		4,609
Trade names		1,000		(783)		217		1,000		(758)		242
Other		409		(157)		252		409		(137)		272
Total intangible assets	$	23,641	$	(7,020)	$	16,621	$	23,531	$	(6,698)	$	16,833

Amortization expense totaled $0.3 million and $0.3 million for the three months ended March 31, 2018 and April 1, 2017, respectively. The estimated amortization expense for the intangible assets for each of the five years subsequent to March 31, 2018 is as follows:

2018 (nine months)	$	938
2019		1,275
2020		1,162
2021		1,120
2022		1,120
2023		1,120
Thereafter		9,886
Total	$	16,621

Summit Materials, LLC

Acquisitions

2.ACQUISITIONS

Since its formation, the Company has completed numerous acquisitions, 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 period:

	Three months ended		Year ended
	March 31,		December 30,
	2018		2017
West		2		6
East		2		8

The purchase price allocation, primarily the valuation of property, plant and equipment for the 2018 acquisitions, as well as the 2017 acquisitions that occurred after April 1, 2017, has not yet been finalized due to the recent timing of the acquisitions and status of the valuation of property, plant and equipment. The following table summarizes aggregated information regarding the fair values of the assets acquired and liabilities assumed as of the respective acquisition dates:

	Three months ended		Year ended
	March 31,		December 30,
	2018		2017
Financial assets	$	10,372	$	31,615
Inventories		7,233		8,300
Property, plant and equipment		41,458		160,975
Intangible assets		108		161
Other assets		2,979		4,200
Financial liabilities		(9,307)		(15,501)
Other long-term liabilities		(3,597)		(17,610)
Net assets acquired		49,246		172,140
Goodwill		73,274		247,536
Purchase price		122,520		419,676
Acquisition-related liabilities		(8,527)		(43,452)
Other		—		(1,294)
Net cash paid for acquisitions	$	113,993	$	374,930

Changes in the carrying amount of goodwill, by reportable segment, from December 30, 2017 to March 31, 2018 are summarized as follows:

	West		East		Cement		Total
Balance, December 30, 2017	$	527,290	$	305,374	$	204,656	$	1,037,320
Acquisitions (1)		43,810		30,960		—		74,770
Foreign currency translation adjustments		(1,642)		—		—		(1,642)
Balance, March 31, 2018	$	569,458	$	336,334	$	204,656	$	1,110,448

(1) Reflects goodwill from 2018 acquisitions and working capital adjustments from prior year acquisitions.

The Company’s intangible assets are primarily composed of goodwill, 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. The reserve rights relate to aggregate reserves to which the Company has the rights of ownership, but does 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:

	March 31, 2018						December 30, 2017
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Leases	$	15,998	$	(4,381)	$	11,617	$	15,888	$	(4,178)	$	11,710
Reserve rights		6,234		(1,699)		4,535		6,234		(1,625)		4,609
Trade names		1,000		(783)		217		1,000		(758)		242
Other		409		(157)		252		409		(137)		272
Total intangible assets	$	23,641	$	(7,020)	$	16,621	$	23,531	$	(6,698)	$	16,833

Amortization expense totaled $0.3 million and $0.3 million for the three months ended March 31, 2018 and April 1, 2017, respectively. The estimated amortization expense for the intangible assets for each of the five years subsequent to March 31, 2018 is as follows:

2018 (nine months)	$	938
2019		1,275
2020		1,162
2021		1,120
2022		1,120
2023		1,120
Thereafter		9,886
Total	$	16,621

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Revenue Recognition

3 Months Ended

Mar. 31, 2018

Revenue Recognition

3.REVENUE RECOGNITION

We derive our revenue predominantly by selling construction materials, 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 service revenue is generated primarily from the asphalt paving services that we provide.

Revenue by product for the three months ended March 31, 2018 and April 1, 2017 is as follows:

	Three months ended
	March 31,		April 1,
	2018		2017
Revenue by product*:
Aggregates	$	67,450	$	61,622
Cement		33,117		39,435
Ready-mix concrete		122,015		93,177
Asphalt		18,141		19,537
Paving and related services		34,336		36,296
Other		39,362		34,210
Total revenue	$	314,421	$	284,277

*Revenue from liquid asphalt terminals is included in asphalt revenue.

The following table outlines the significant changes in contract assets and contract liability balances for the years ended 2018 and 2017. Also included in the table is the net change in estimate as a percentage of aggregate revenue for such contracts:

		Costs and estimated		Billings in excess
		earnings in		of costs and
		excess of billings		estimated earnings
Balance—December 30, 2017	$	9,512	$	15,750
Changes in revenue billed, contract price or cost estimates		2,678		(1,788)
Acquisitions		483		1,179
Other		(5)		(10)
Balance—March 31, 2018	$	12,668	$	15,131

Accounts receivable, net consisted of the following as of March 31, 2018 and December 30, 2017:  

	March 31,		December 30,
	2018		2017
Trade accounts receivable	$	153,563	$	137,696
Construction contract receivables		19,304		49,832
Retention receivables		12,378		14,973
Receivables from related parties		320		468
Accounts receivable		185,565		202,969
Less: Allowance for doubtful accounts		(5,466)		(4,639)
Accounts receivable, net	$	180,099	$	198,330

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

3.REVENUE RECOGNITION

We derive our revenue predominantly by selling construction materials, 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 service revenue is generated primarily from the asphalt paving services that we provide.

Revenue by product for the three months ended March 31, 2018 and April 1, 2017 is as follows:

	Three months ended
	March 31,		April 1,
	2018		2017
Revenue by product*:
Aggregates	$	67,450	$	61,622
Cement		33,117		39,435
Ready-mix concrete		122,015		93,177
Asphalt		18,141		19,537
Paving and related services		34,336		36,296
Other		39,362		34,210
Total revenue	$	314,421	$	284,277

*Revenue from liquid asphalt terminals is included in asphalt revenue.

The following table outlines the significant changes in contract assets and contract liability balances for the years ended 2018 and 2017. Also included in the table is the net change in estimate as a percentage of aggregate revenue for such contracts:

		Costs and estimated		Billings in excess
		earnings in		of costs and
		excess of billings		estimated earnings
Balance—December 30, 2017	$	9,512	$	15,750
Changes in revenue billed, contract price or cost estimates		2,678		(1,788)
Acquisitions		483		1,179
Other		(5)		(10)
Balance—March 31, 2018	$	12,668	$	15,131

Accounts receivable, net consisted of the following as of March 31, 2018 and December 30, 2017:

	March 31,		December 30,
	2018		2017
Trade accounts receivable	$	153,563	$	137,696
Construction contract receivables		19,304		49,832
Retention receivables		12,378		14,973
Receivables from related parties		320		468
Accounts receivable		185,565		202,969
Less: Allowance for doubtful accounts		(5,466)		(4,639)
Accounts receivable, net	$	180,099	$	198,330

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

3 Months Ended

Mar. 31, 2018

Inventories

4.INVENTORIES

Inventories consisted of the following as of March 31, 2018 and December 30, 2017:  

	March 31,		December 30,
	2018		2017
Aggregate stockpiles	$	142,817	$	126,791
Finished goods		54,258		34,667
Work in process		8,845		7,729
Raw materials		20,830		15,252
Total	$	226,750	$	184,439

Summit Materials, LLC

Inventories

4.INVENTORIES

Inventories consisted of the following as of March 31, 2018 and December 30, 2017:

	March 31,		December 30,
	2018		2017
Aggregate stockpiles	$	142,817	$	126,791
Finished goods		54,258		34,667
Work in process		8,845		7,729
Raw materials		20,830		15,252
Total	$	226,750	$	184,439

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Accrued Expenses

3 Months Ended

Mar. 31, 2018

Accrued Expenses

5.ACCRUED EXPENSES

Accrued expenses consisted of the following as of March 31, 2018 and December 30, 2017:  

	March 31,		December 30,
	2018		2017
Interest	$	23,547	$	24,095
Payroll and benefits		22,278		33,915
Capital lease obligations		22,733		19,276
Insurance		11,423		11,455
Non-income taxes		9,553		7,236
Professional fees		2,785		1,717
Other (1)		20,010		18,935
Total	$	112,329	$	116,629

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

Summit Materials, LLC

Accrued Expenses

5.ACCRUED EXPENSES

Accrued expenses consisted of the following as of March 31, 2018 and December 30, 2017:

	March 31,		December 30,
	2018		2017
Interest	$	23,547	$	24,095
Payroll and benefits		22,278		33,915
Capital lease obligations		22,733		19,276
Insurance		11,423		11,455
Non-income taxes		9,784		7,467
Professional fees		2,785		1,717
Other (1)		20,010		18,349
Total	$	112,560	$	116,274

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

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Debt

3 Months Ended

Mar. 31, 2018

Debt

6.DEBT

Debt consisted of the following as of March 31, 2018 and December 30, 2017:  

	March 31,		December 30,
	2018		2017
Term Loan, due 2024:
$633.8 million and $635.4 million, net of $1.5 million and $1.6 million discount at March 31, 2018 and December 30, 2017, respectively	$	632,275	$	633,805
81⁄2% Senior Notes, due 2022		250,000		250,000
61⁄8% Senior Notes, due 2023:
$650.0 million, net of $1.3 million and $1.4 million discount at March 31, 2018 and December 30, 2017, respectively		648,710		648,650
51⁄8% Senior Notes, due 2025		300,000		300,000
Total		1,830,985		1,832,455
Current portion of long-term debt		6,354		4,765
Long-term debt	$	1,824,631	$	1,827,690

The contractual payments of long-term debt, including current maturities, for the five years subsequent to March 31, 2018, are as follows:

2018 (nine months)	$	3,177
2019		6,354
2020		7,942
2021		6,354
2022		256,354
2023		656,354
Thereafter		897,253
Total		1,833,788
Less: Original issue net discount		(2,803)
Less: Capitalized loan costs		(16,096)
Total debt	$	1,814,889

Senior Notes—On June 1, 2017, Summit LLC and Summit Finance (together, the “Issuers”) issued $300.0 million of 5.125% 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 into 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 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.

As of March 31, 2018 and December 30, 2017, 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 3.00% for LIBOR rate loans.

There were no outstanding borrowings under the revolving credit facility as of March 31, 2018 and December 30, 2017, leaving remaining borrowing capacity of $219.6 million as of March 31, 2018, which is net of $15.4 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 March 31, 2018 and December 30, 2017, Summit LLC was in compliance with all financial covenants.

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 three months ended March 31, 2018 and April 1, 2017:  

	Deferred financing fees
Balance—December 30, 2017	$	19,033
Amortization		(1,013)
Balance—March 31, 2018	$	18,020
Balance—December 31, 2016	$	18,290
Loan origination fees		699
Amortization		(917)
Write off of deferred financing fees		(45)
Balance—April 1, 2017	$	18,027

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 March 31, 2018 or December 30, 2017.  

Summit Materials, LLC

Debt

6.DEBT

Debt consisted of the following as of March 31, 2018 and December 30, 2017:

	March 31,		December 30,
	2018		2017
Term Loan, due 2024:
$633.8 million and $635.4 million, net of $1.5 million and $1.6 million discount at March 31, 2018 and December 30, 2017, respectively	$	632,275	$	633,805
81⁄2% Senior Notes, due 2022		250,000		250,000
61⁄8% Senior Notes, due 2023:
$650.0 million, net of $1.3 million and $1.4 million discount at March 31, 2018 and December 30, 2017, respectively		648,710		648,650
51⁄8% Senior Notes, due 2025		300,000		300,000
Total		1,830,985		1,832,455
Current portion of long-term debt		6,354		4,765
Long-term debt	$	1,824,631	$	1,827,690

The contractual payments of long-term debt, including current maturities, for the five years subsequent to March 31, 2018, are as follows:

2018 (nine months)	$	3,177
2019		6,354
2020		7,942
2021		6,354
2022		256,354
2023		656,354
Thereafter		897,253
Total		1,833,788
Less: Original issue net discount		(2,803)
Less: Capitalized loan costs		(16,096)
Total debt	$	1,814,889

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 5.125% 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 into 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 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.

As of March 31, 2018 and December 30, 2017, 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 3.00% for LIBOR rate loans.

There were no outstanding borrowings under the revolving credit facility as of March 31, 2018 and December 30, 2017, leaving remaining borrowing capacity of $219.6 million as of March 31, 2018, which is net of $15.4 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 March 31, 2018 and December 30, 2017, Summit LLC was in compliance with all financial covenants.

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 three months ended March 31, 2018 and April 1, 2017:

	Deferred financing fees
Balance—December 30, 2017	$	19,033
Amortization		(1,013)
Balance—March 31, 2018	$	18,020
Balance—December 31, 2016	$	18,290
Loan origination fees		699
Amortization		(917)
Write off of deferred financing fees		(45)
Balance—April 1, 2017	$	18,027

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 March 31, 2018 or December 30, 2017.

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Income Taxes

3 Months Ended

Mar. 31, 2018

Income Taxes

7.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 accounts.

Our income tax benefit was $16.7 million and $2.2 million in the three months ended March 31, 2018 and April 1, 2017, respectively. We recorded an income tax benefit in the three months ended March 31, 2018, primarily related to our loss before taxes. Our effective income tax rate was higher in the first quarter of 2018 as compared to the same period in 2017 as our deferred tax assets were subject to a valuation allowance as of April 1, 2017. The effective tax rate for Summit Inc. differs from the federal rate primarily due to (1) changes in valuation allowance for 2017, (2) tax depletion expense in excess of the expense recorded under U.S. GAAP, (3) the minority interest in the Summit Holdings partnership that is allocated outside of the Company and (4) 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 any net operating loss carryforwards scheduled to expire in the near future.

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 March 31, 2018 and December 30, 2017, Summit Inc. had a valuation allowance of $1.7 million, which relates to certain deferred tax assets in taxable entities where realization is not more likely than not.

Tax Receivable Agreement—The Company is party to 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. 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. 

In the three months ended March 31, 2018, 104,104 LP Units were acquired by Summit Inc. in exchange for an equal number of newly-issued shares of Summit Inc.’s Class A common stock. These exchanges resulted in net new deferred tax assets of approximately $1.0 million. As we determined that the deferred tax assets created from these exchanges are realizable and payment under the TRA is considered probable, we have recorded 85% of the increase in deferred tax assets as TRA liability and the remainder as an increase in additional paid in capital. As of March 31, 2018 and December 30, 2017, we had recorded $332.2 million and $331.9 million of TRA liability of which $0.6 million was classified as accrued expenses as of December 30, 2017.

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 three months ended March 31, 2018 and April 1, 2017, we made tax distribution payments of $9,000 and $79,000, respectively.  

As of March 31, 2018 and December 30, 2017, Summit Inc. and its subsidiaries had 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 three months ended March 31, 2018 and April 1, 2017.  

Summit Materials, LLC

Income Taxes

7.INCOME TAXES

Summit LLC is a limited liability company and passes its tax attributes for federal and state tax purposes to its parent company and is generally not subject to federal or state income tax. However, certain subsidiary entities file federal, state and Canadian income tax returns due to their status as taxable entities in the respective jurisdiction. The effective income tax rate for the C Corporations differs from the statutory federal rate primarily due to (1) tax depletion expense 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 March 31, 2018 and December 30, 2017, the Company had 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 three months ended March 31, 2018 and April 1, 2017.  

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Earnings Per Share

3 Months Ended

Mar. 31, 2018

Net Earnings Per Share

Net Earnings Per Share

8.    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 earnings per share:

	Three months ended
	March 31,		April 1,
	2018		2017
Net loss attributable to Summit Inc.	$	(53,729)	$	(52,444)
Weighted average shares of Class A stock outstanding		110,659,098		106,692,717
Basic loss per share	$	(0.49)	$	(0.49)

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

	Three months ended
	March 31,		April 1,
	2018		2017
Antidilutive shares:
LP Units		3,585,516		4,915,202
Time-vesting stock options		3,296,133		5,311,863
Warrants		100,037		160,333
Time-vesting restricted stock units		854,482		527,393
Market-based restricted stock units		295,252		211,455

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Stockholder's Equity

3 Months Ended

Mar. 31, 2018

Stockholder's Equity

9.STOCKHOLDERS’ EQUITY

Equity Offering—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 2017 and 2018, 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 — December 30, 2017	110,350,594	3,689,620	114,040,214	96.8	%
Exchanges during period	104,104	(104,104)	—
Other equity transactions	1,033,875	—	1,033,875
Balance — March 31, 2018	111,488,573	3,585,516	115,074,089	96.9	%
Balance — December 31, 2016	97,554,278	5,151,297	102,705,575	95.0	%
January 2017 public offering	10,000,000	—	10,000,000
Exchanges during period	236,095	(236,095)	—
Other equity transactions	134,423	—	134,423
Balance — April 1, 2017	107,924,796	4,915,202	112,839,998	95.6	%

As a result of the Reorganization, 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 3.1% and 3.2% as of March 31, 2018 and December 30, 2017, respectively.

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 — December 30, 2017	$	2,364	$	4,637	$	385	$	7,386
Foreign currency translation adjustment, net of tax		—		(3,772)		—		(3,772)
Income on cash flow hedges, net of tax		—		—		1,209		1,209
Balance — March 31, 2018	$	2,364	$	865	$	1,594	$	4,823
Balance — December 31, 2016	$	1,450	$	(3,106)	$	(593)	$	(2,249)
Foreign currency translation adjustment		—		670		—		670
Income on cash flow hedges		—		—		393		393
Balance — April 1, 2017	$	1,450	$	(2,436)	$	(200)	$	(1,186)

Summit Materials, LLC

Members' Interest

8.MEMBERS’ INTEREST

Summit Inc.’s Equity Offering—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.

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		(loss) income
Balance — December 30, 2017	$	(6,053)	$	(10,022)	$	(1,060)	$	(17,135)
Foreign currency translation adjustment		—		(3,104)		—		(3,104)
Income on cash flow hedges		—		—		995		995
Balance — March 31, 2018	$	(6,053)	$	(13,126)	$	(65)	$	(19,244)
Balance — December 31, 2016	$	(7,181)	$	(17,790)	$	(2,473)	$	(27,444)
Foreign currency translation adjustment		—		706		—		706
Income on cash flow hedges		—		—		412		412
Balance — April 1, 2017	$	(7,181)	$	(17,084)	$	(2,061)	$	(26,326)

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Supplemental Cash Flow Information

3 Months Ended

Mar. 31, 2018

Supplemental Cash Flow Information

10.    SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flow information is as follows:

	Three months ended
	March 31,		April 1,
	2018		2017
Cash payments:
Interest	$	26,927	$	26,727
Income taxes		1,582		230
Non cash financing activities:
Exchange of LP Units to shares of Class A common stock		3,325		5,753

Summit Materials, LLC

Supplemental Cash Flow Information

9.SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flow information is as follows:

	Three months ended
	March 31,		April 1,
	2018		2017
Cash payments:
Interest	$	26,927	$	26,727
Income taxes		1,582		230

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2018

Commitments and Contingencies

11.    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.

Environmental Remediation and Site Restoration —TheCompany’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.

The Company has asset retirement obligations arising from regulatory and contractual requirements to perform reclamation activities at the time certain quarries and landfills are closed. As of March 31, 2018 and December 30, 2017,  $20.5 million and $20.5 million, respectively, were included in other noncurrent liabilities on the consolidated balance sheets and $4.0 million and $3.9 million, respectively, were included in accrued expenses for future reclamation costs. The total undiscounted anticipated costs for site reclamation as of March 31, 2018 and December 30, 2017 were $71.7 million and $67.9 million, respectively.

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

10.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.

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.

The Company has asset retirement obligations arising from regulatory and contractual requirements to perform reclamation activities at the time certain quarries and landfills are closed. As of March 31, 2018 and December 30, 2017,  $20.5 million and $20.5 million, respectively, were included in other noncurrent liabilities on the consolidated balance sheets and $4.0 million and $3.9 million, respectively, were included in accrued expenses for future reclamation costs. The total undiscounted anticipated costs for site reclamation as of March 31, 2018 and December 30, 2017 were $71.7 million and $67.9 million, respectively.

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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Fair Value

3 Months Ended

Mar. 31, 2018

Fair Value

12.FAIR VALUE

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 (loss) 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 March 31, 2018 and December 30, 2017 was:

	March 31,		December 30,
	2018		2017
Current portion of acquisition-related liabilities and Accrued expenses:
Contingent consideration	$	23,474	$	594
Cash flow hedges		123		488
Acquisition-related liabilities and Other noncurrent liabilities
Contingent consideration	$	4,025	$	34,301
Cash flow hedges		—		492

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 is based on observable, or Level 2, inputs such as interest rates, bond yields and prices in inactive markets. There were no material valuation adjustments to contingent consideration or derivatives as of March 31, 2018 and April 1, 2017.

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 March 31, 2018 and December 30, 2017 was:

	March 31, 2018				December 30, 2017
	Fair Value		Carrying Value		Fair Value		Carrying Value
Level 2
Long-term debt(1)	$	1,860,811	$	1,830,985	$	1,893,239	$	1,832,455
Level 3
Current portion of deferred consideration and noncompete obligations(2)		13,627		13,627		13,493		13,493
Long term portion of deferred consideration and noncompete obligations(3)		24,869		24,869		23,834		23,834

(1) $6.4 million and $4.8 million included in current portion of debt as of March 31, 2018 and December 30, 2017, 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

11.FAIR VALUE

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 (loss) 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 March 31, 2018 and December 30, 2017 was:

	March 31,		December 30,
	2018		2017
Current portion of acquisition-related liabilities and Accrued expenses:
Contingent consideration	$	23,474	$	594
Cash flow hedges		123		488
Acquisition-related liabilities and Other noncurrent liabilities
Contingent consideration	$	4,025	$	34,301
Cash flow hedges		—		492

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 is based on observable, or Level 2, inputs such as interest rates, bond yields and prices in inactive markets. There were no material valuation adjustments to contingent consideration or derivatives as of March 31, 2018 and April 1, 2017.

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 March 31, 2018 and December 30, 2017 was:

	March 31, 2018				December 30, 2017
	Fair Value		Carrying Value		Fair Value		Carrying Value
Level 2
Long-term debt(1)	$	1,860,811	$	1,830,985	$	1,893,239	$	1,832,455
Level 3
Current portion of deferred consideration and noncompete obligations(2)		11,127		11,127		10,993		10,993
Long term portion of deferred consideration and noncompete obligations(3)		21,260		21,260		17,938		17,938

(1) $6.4 million and $4.8 million included in current portion of debt as of March 31, 2018 and December 30, 2017, 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

3 Months Ended

Mar. 31, 2018

Segment Information

13.    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, our Company’s Chief Operating Decision Maker (“CODM”). The CODM primarily evaluates the performance of the Company’s 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 March 31, 2018 and December 30, 2017 and for the three months ended March 31, 2018 and April 1, 2017:  

	Three months ended
	March 31,		April 1,
	2018		2017
Revenue*:
West	$	181,713	$	143,219
East		95,157		97,223
Cement		37,551		43,835
Total revenue	$	314,421	$	284,277

*Intercompany sales are immaterial and the presentation above only reflects sales to external customers.

	Three months ended
	March 31,		April 1,
	2018		2017
Loss from continuing operations before taxes	$	(72,654)	$	(57,286)
Interest expense		28,784		24,969
Depreciation, depletion and amortization		46,543		39,304
Accretion		415		444
Loss on debt financings		—		190
Transaction costs		1,266		1,273
Non-cash compensation		8,507		4,748
Other		(7,348)		(12)
Total Adjusted EBITDA	$	5,513	$	13,630
Total Adjusted EBITDA by Segment:
West	$	16,173	$	15,699
East		(3,203)		4,348
Cement		3,667		2,685
Corporate and other		(11,124)		(9,102)
Total Adjusted EBITDA	$	5,513	$	13,630

	Three months ended
	March 31,		April 1,
	2018		2017
Purchases of property, plant and equipment
West	$	28,909	$	26,562
East		14,464		15,706
Cement		4,468		7,673
Total reportable segments		47,841		49,941
Corporate and other		1,664		1,115
Total purchases of property, plant and equipment	$	49,505	$	51,056

	Three months ended
	March 31,		April 1,
	2018		2017
Depreciation, depletion, amortization and accretion:
West	$	22,151	$	15,663
East		17,727		15,378
Cement		6,370		8,048
Total reportable segments		46,248		39,089
Corporate and other		710		659
Total depreciation, depletion, amortization and accretion	$	46,958	$	39,748

	March 31,		December 30,
	2018		2017
Total assets:
West	$	1,313,661	$	1,225,463
East		1,083,989		1,035,609
Cement		887,737		870,652
Total reportable segments		3,285,387		3,131,724
Corporate and other		471,193		655,609
Total	$	3,756,580	$	3,787,333

Summit Materials, LLC

Segment Information

12.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, our Company’s Chief Operating Decision Maker (“CODM”). The CODM primarily evaluates the performance of the Company’s 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 March 31, 2018 and December 30, 2017 and for the three months ended March 31, 2018 and April 1, 2017:

	Three months ended
	March 31,		April 1,
	2018		2017
Revenue*:
West	$	181,713	$	143,219
East		95,157		97,223
Cement		37,551		43,835
Total revenue	$	314,421	$	284,277

*Intercompany sales are immaterial and the presentation above only reflects sales to external customers.

	Three months ended
	March 31,		April 1,
	2018		2017
Loss from continuing operations before taxes	$	(72,440)	$	(57,032)
Interest expense		28,570		24,715
Depreciation, depletion and amortization		46,543		39,304
Accretion		415		444
Loss on debt financings		—		190
Transaction costs		1,266		1,273
Non-cash compensation		8,507		4,748
Other		(7,348)		(12)
Total Adjusted EBITDA	$	5,513	$	13,630
Total Adjusted EBITDA by Segment:
West	$	16,173	$	15,699
East		(3,203)		4,348
Cement		3,667		2,685
Corporate and other		(11,124)		(9,102)
Total Adjusted EBITDA	$	5,513	$	13,630

	Three months ended
	March 31,		April 1,
	2018		2017
Purchases of property, plant and equipment
West	$	28,909	$	26,562
East		14,464		15,706
Cement		4,468		7,673
Total reportable segments		47,841		49,941
Corporate and other		1,664		1,115
Total purchases of property, plant and equipment	$	49,505	$	51,056

	Three months ended
	March 31,		April 1,
	2018		2017
Depreciation, depletion, amortization and accretion:
West	$	22,151	$	15,663
East		17,727		15,378
Cement		6,370		8,048
Total reportable segments		46,248		39,089
Corporate and other		710		659
Total depreciation, depletion, amortization and accretion	$	46,958	$	39,748

	March 31,		December 30,
	2018		2017
Total assets:
West	$	1,313,661	$	1,225,463
East		1,083,989		1,035,609
Cement		887,737		870,652
Total reportable segments		3,285,387		3,131,724
Corporate and other		178,153		372,517
Total	$	3,463,540	$	3,504,241

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Senior Notes' Guarantor and Non-Guarantor Financial Information

3 Months Ended

Mar. 31, 2018

Summit Materials, LLC

Senior Notes' Guarantor and Non-Guarantor Financial Information

13.     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. Finance Corp. does not and will not have any assets or operations other than as may be incidental to its activities as a co-issuer of the Senior Notes and other indebtedness. 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.

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

March 31, 2018

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	169,192	$	5,949	$	12,841	$	(9,689)	$	178,293
Accounts receivable, net		—		168,155		11,988		(44)		180,099
Intercompany receivables		560,676		427,497		—		(988,173)		—
Cost and estimated earnings in excess of billings		—		12,324		344		—		12,668
Inventories		—		222,277		4,473		—		226,750
Other current assets		1,232		10,977		1,533		—		13,742
Total current assets		731,100		847,179		31,179		(997,906)		611,552
Property, plant and equipment, net		10,159		1,626,147		36,574		—		1,672,880
Goodwill		—		1,050,976		59,472		—		1,110,448
Intangible assets, net		—		16,621		—		—		16,621
Other assets		2,958,528		159,408		1,322		(3,067,219)		52,039
Total assets	$	3,699,787	$	3,700,331	$	128,547	$	(4,065,125)	$	3,463,540
Liabilities and Member’s Interest
Current liabilities:
Current portion of debt	$	6,354	$	—	$	—	$	—	$	6,354
Current portion of acquisition-related liabilities		—		34,601		—		—		34,601
Accounts payable		4,769		100,108		6,821		(44)		111,654
Accrued expenses		44,605		75,989		1,655		(9,689)		112,560
Intercompany payables		591,792		393,342		3,039		(988,173)		—
Billings in excess of costs and estimated earnings		—		14,736		395		—		15,131
Total current liabilities		647,520		618,776		11,910		(997,906)		280,300
Long-term debt		1,808,535		—		—		—		1,808,535
Acquisition-related liabilities		—		25,285		—		—		25,285
Other noncurrent liabilities		3,190		201,719		75,286		(171,317)		108,878
Total liabilities		2,459,245		845,780		87,196		(1,169,223)		2,222,998
Total member's interest		1,240,542		2,854,551		41,351		(2,895,902)		1,240,542
Total liabilities and member’s interest	$	3,699,787	$	3,700,331	$	128,547	$	(4,065,125)	$	3,463,540

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 Statements of Operations

For the three months ended March 31, 2018

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—	$	300,658	$	15,181	$	(1,418)	$	314,421
Cost of revenue (excluding items shown separately below)		—		238,127		11,152		(1,418)		247,861
General and administrative expenses		20,947		47,177		3,003		—		71,127
Depreciation, depletion, amortization and accretion		710		44,993		1,255		—		46,958
Operating loss		(21,657)		(29,639)		(229)		—		(51,525)
Other income, net		17,365		(6,858)		51		(18,213)		(7,655)
Interest expense (income)		29,582		(2,203)		1,191		—		28,570
Loss from operations before taxes		(68,604)		(20,578)		(1,471)		18,213		(72,440)
Income tax expense		(8)		(3,454)		(382)		—		(3,844)
Net loss attributable to member of Summit Materials, LLC	$	(68,596)	$	(17,124)	$	(1,089)	$	18,213	$	(68,596)
Comprehensive (loss) income attributable to member of Summit Materials, LLC	$	(70,705)	$	(18,119)	$	2,015	$	16,104	$	(70,705)

Condensed Consolidating Statements of Operations

For the three months ended April 1, 2017

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—		276,375		9,410		(1,508)	$	284,277
Cost of revenue (excluding items shown separately below)		—		211,992		7,088		(1,508)		217,572
General and administrative expenses		15,050		43,373		1,318		—		59,741
Depreciation, depletion, amortization and accretion		658		38,439		651		—		39,748
Operating (loss) income		(15,708)		(17,429)		353		—		(32,784)
Other expense (income), net		15,410		235		(35)		(16,077)		(467)
Interest expense		23,638		213		864		—		24,715
Loss from operations before taxes		(54,756)		(17,877)		(476)		16,077		(57,032)
Income (benefit) tax benefit		—		(2,180)		2		—		(2,178)
Net loss		(54,756)		(15,697)		(478)		16,077		(54,854)
Net loss attributable to noncontrolling interest		—		—		—		(98)		(98)
Net loss attributable to member of Summit Materials, LLC	$	(54,756)	$	(15,697)	$	(478)	$	16,175	$	(54,756)
Comprehensive loss attributable to member of Summit Materials, LLC	$	(53,638)	$	(16,109)	$	(1,184)	$	17,293	$	(53,638)

Condensed Consolidating Statements of Cash Flows

For the three months ended March 31, 2018

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(38,210)	$	(15,050)	$	1,893	$	—	$	(51,367)
Cash flow from investing activities:
Acquisitions, net of cash acquired		—		(113,993)		—		—		(113,993)
Purchase of property, plant and equipment		(1,664)		(46,363)		(1,478)		—		(49,505)
Proceeds from the sale of property, plant, and equipment		—		7,668		120		—		7,788
Other		—		1,500		—		—		1,500
Net cash used for investing activities		(1,664)		(151,188)		(1,358)		—		(154,210)
Cash flow from financing activities:
Proceeds from investment by member		(73,661)		89,136		—		—		15,475
Loans received from and payments made on loans from other Summit Companies		(83,090)		82,599		(2,192)		2,683		—
Payments on long-term debt		(1,588)		(2,380)		(4)		—		(3,972)
Payments on acquisition-related liabilities		—		(6,462)		—		—		(6,462)
Distributions from partnership		(2,509)		—		—		—		(2,509)
Other		(827)		(960)		(33)		—		(1,820)
Net cash (used in) provided by financing activities		(161,675)		161,933		(2,229)		2,683		712
Impact of cash on foreign currency		—		—		(398)		—		(398)
Net decrease in cash		(201,549)		(4,305)		(2,092)		2,683		(205,263)
Cash — Beginning of period		370,741		10,254		14,933		(12,372)		383,556
Cash — End of period	$	169,192	$	5,949	$	12,841	$	(9,689)	$	178,293

Condensed Consolidating Statements of Cash Flows

For the three months ended April 1, 2017

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(42,891)	$	(4,035)	$	1,850	$	—	$	(45,076)
Cash flow from investing activities:
Acquisitions, net of cash acquired		—		(112,333)		—		—		(112,333)
Purchase of property, plant and equipment		(1,115)		(49,931)		(10)		—		(51,056)
Proceeds from the sale of property, plant, and equipment		—		4,325		—		—		4,325
Other		—		974		—		—		974
Net cash used for investing activities		(1,115)		(156,965)		(10)		—		(158,090)
Cash flow from financing activities:
Proceeds from investment by member		164,795		73,834		—		—		238,629
Capital issuance costs		(638)		—		—		—		(638)
Loans received from and payments made on loans from other Summit Companies		(92,904)		101,616		(154)		(8,558)		—
Payments on long-term debt		(1,625)		(1,941)		—		—		(3,566)
Payments on acquisition-related liabilities		—		(13,914)		—		—		(13,914)
Financing costs		(699)		—		—		—		(699)
Distributions from partnership		(2,579)		—		—		—		(2,579)
Other		(319)		(392)		(21)		—		(732)
Net cash provided by (used in) financing activities		66,031		159,203		(154)		(8,558)		216,501
Impact of cash on foreign currency		—		—		100		—		100
Net increase (decrease) in cash		22,025		(1,797)		1,786		(8,558)		13,435
Cash — Beginning of period		133,862		4,820		14,656		(10,666)		142,672
Cash — End of period	$	155,887	$	3,023	$	16,442	$	(19,224)	$	156,107

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Summary of Organization and Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2018

Company Information

Initial Public Offering

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 (“IPO”), Summit Inc. became a holding corporation operating and controlling all of the business and affairs of Summit Holdings and its subsidiaries and, through Summit Holdings, conducts its business. Summit Inc. owns the majority of the partnership interests of Summit Holdings (see note 9, 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 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

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.

For a summary of the changes in Summit Inc.’s ownership of Summit Holdings, see Note 9, 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. In October 2017, the Company acquired the 20% of Ohio Valley Asphalt, LLC held by noncontrolling interests, making it a wholly owned subsidiary.

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.

Summit Materials, LLC

Company Information

Initial Public Offering

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”) 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, including Summit LLC.

Follow-On Offering

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 limited partnership interests in Summit Holdings (“LP Units”) and caused Summit Holdings to use a portion of the proceeds from the offering to acquire two materials-based companies for a combined purchase price of approximately $110 million in cash.

Basis of Presentation

Basis of Presentation—These unaudited consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures typically included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto as of and for the year ended December 30, 2017. The Company continues to follow the accounting policies set forth in those audited consolidated financial statements.

Management believes that these consolidated interim financial statements include all adjustments, normal and recurring in nature, that are necessary to present fairly the financial position of the Company as of March 31, 2018, the results of operations for the three months ended March 31, 2018 and April 1, 2017, and cash flows for the three months ended March 31, 2018 and April 1, 2017.

Use of Estimates

Use of Estimates—Preparation of these consolidated financial statements in conformity with 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.

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Acquisitions (Tables)

3 Months Ended

Mar. 31, 2018

Summary of Acquisitions by Region

	Three months ended		Year ended
	March 31,		December 30,
	2018		2017
West		2		6
East		2		8

Summary of Assets Acquired and Liabilities Assumed

	Three months ended		Year ended
	March 31,		December 30,
	2018		2017
Financial assets	$	10,372	$	31,615
Inventories		7,233		8,300
Property, plant and equipment		41,458		160,975
Intangible assets		108		161
Other assets		2,979		4,200
Financial liabilities		(9,307)		(15,501)
Other long-term liabilities		(3,597)		(17,610)
Net assets acquired		49,246		172,140
Goodwill		73,274		247,536
Purchase price		122,520		419,676
Acquisition-related liabilities		(8,527)		(43,452)
Other		—		(1,294)
Net cash paid for acquisitions	$	113,993	$	374,930

Goodwill by Reportable Segment and in Total

	West		East		Cement		Total
Balance, December 30, 2017	$	526,290	$	305,374	$	204,656	$	1,036,320
Acquisitions (1)		43,810		30,960		—		74,770
Foreign currency translation adjustments		(1,642)		—		—		(1,642)
Balance, March 31, 2018	$	568,458	$	336,334	$	204,656	$	1,109,448

(1) Reflects goodwill from 2018 acquisitions and working capital adjustments from prior year acquisitions.

Intangible Assets by Type and in Total

	March 31, 2018						December 30, 2017
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Leases	$	15,998	$	(4,381)	$	11,617	$	15,888	$	(4,178)	$	11,710
Reserve rights		6,234		(1,699)		4,535		6,234		(1,625)		4,609
Trade names		1,000		(783)		217		1,000		(758)		242
Other		409		(157)		252		409		(137)		272
Total intangible assets	$	23,641	$	(7,020)	$	16,621	$	23,531	$	(6,698)	$	16,833

Estimated Amortization Expense for Intangible Assets

The estimated amortization expense for the intangible assets for each of the five years subsequent to March 31, 2018 is as follows:

2018 (nine months)	$	938
2019		1,275
2020		1,162
2021		1,120
2022		1,120
2023		1,120
Thereafter		9,886
Total	$	16,621

Summit Materials, LLC

Summary of Acquisitions by Region

	Three months ended		Year ended
	March 31,		December 30,
	2018		2017
West		2		6
East		2		8

Summary of Assets Acquired and Liabilities Assumed

	Three months ended		Year ended
	March 31,		December 30,
	2018		2017
Financial assets	$	10,372	$	31,615
Inventories		7,233		8,300
Property, plant and equipment		41,458		160,975
Intangible assets		108		161
Other assets		2,979		4,200
Financial liabilities		(9,307)		(15,501)
Other long-term liabilities		(3,597)		(17,610)
Net assets acquired		49,246		172,140
Goodwill		73,274		247,536
Purchase price		122,520		419,676
Acquisition-related liabilities		(8,527)		(43,452)
Other		—		(1,294)
Net cash paid for acquisitions	$	113,993	$	374,930

Goodwill by Reportable Segment and in Total

	West		East		Cement		Total
Balance, December 30, 2017	$	527,290	$	305,374	$	204,656	$	1,037,320
Acquisitions (1)		43,810		30,960		—		74,770
Foreign currency translation adjustments		(1,642)		—		—		(1,642)
Balance, March 31, 2018	$	569,458	$	336,334	$	204,656	$	1,110,448

(1) Reflects goodwill from 2018 acquisitions and working capital adjustments from prior year acquisitions.

Intangible Assets by Type and in Total

	March 31, 2018						December 30, 2017
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Leases	$	15,998	$	(4,381)	$	11,617	$	15,888	$	(4,178)	$	11,710
Reserve rights		6,234		(1,699)		4,535		6,234		(1,625)		4,609
Trade names		1,000		(783)		217		1,000		(758)		242
Other		409		(157)		252		409		(137)		272
Total intangible assets	$	23,641	$	(7,020)	$	16,621	$	23,531	$	(6,698)	$	16,833

Estimated Amortization Expense for Intangible Assets

. The estimated amortization expense for the intangible assets for each of the five years subsequent to March 31, 2018 is as follows:

2018 (nine months)	$	938
2019		1,275
2020		1,162
2021		1,120
2022		1,120
2023		1,120
Thereafter		9,886
Total	$	16,621

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Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2018

Revenue by Product

	Three months ended
	March 31,		April 1,
	2018		2017
Revenue by product*:
Aggregates	$	67,450	$	61,622
Cement		33,117		39,435
Ready-mix concrete		122,015		93,177
Asphalt		18,141		19,537
Paving and related services		34,336		36,296
Other		39,362		34,210
Total revenue	$	314,421	$	284,277

*Revenue from liquid asphalt terminals is included in asphalt revenue.

Schedule of Contract Asset and Liability

		Costs and estimated		Billings in excess
		earnings in		of costs and
		excess of billings		estimated earnings
Balance—December 30, 2017	$	9,512	$	15,750
Changes in revenue billed, contract price or cost estimates		2,678		(1,788)
Acquisitions		483		1,179
Other		(5)		(10)
Balance—March 31, 2018	$	12,668	$	15,131

Summary of Accounts Receivable, Net

	March 31,		December 30,
	2018		2017
Trade accounts receivable	$	153,563	$	137,696
Construction contract receivables		19,304		49,832
Retention receivables		12,378		14,973
Receivables from related parties		320		468
Accounts receivable		185,565		202,969
Less: Allowance for doubtful accounts		(5,466)		(4,639)
Accounts receivable, net	$	180,099	$	198,330

Summit Materials, LLC

Revenue by Product

	Three months ended
	March 31,		April 1,
	2018		2017
Revenue by product*:
Aggregates	$	67,450	$	61,622
Cement		33,117		39,435
Ready-mix concrete		122,015		93,177
Asphalt		18,141		19,537
Paving and related services		34,336		36,296
Other		39,362		34,210
Total revenue	$	314,421	$	284,277

*Revenue from liquid asphalt terminals is included in asphalt revenue.

Schedule of Contract Asset and Liability

		Costs and estimated		Billings in excess
		earnings in		of costs and
		excess of billings		estimated earnings
Balance—December 30, 2017	$	9,512	$	15,750
Changes in revenue billed, contract price or cost estimates		2,678		(1,788)
Acquisitions		483		1,179
Other		(5)		(10)
Balance—March 31, 2018	$	12,668	$	15,131

Summary of Accounts Receivable, Net

	March 31,		December 30,
	2018		2017
Trade accounts receivable	$	153,563	$	137,696
Construction contract receivables		19,304		49,832
Retention receivables		12,378		14,973
Receivables from related parties		320		468
Accounts receivable		185,565		202,969
Less: Allowance for doubtful accounts		(5,466)		(4,639)
Accounts receivable, net	$	180,099	$	198,330

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Inventories (Tables)

3 Months Ended

Mar. 31, 2018

Components of Inventories

	March 31,		December 30,
	2018		2017
Aggregate stockpiles	$	142,817	$	126,791
Finished goods		54,258		34,667
Work in process		8,845		7,729
Raw materials		20,830		15,252
Total	$	226,750	$	184,439

Summit Materials, LLC

Components of Inventories

	March 31,		December 30,
	2018		2017
Aggregate stockpiles	$	142,817	$	126,791
Finished goods		54,258		34,667
Work in process		8,845		7,729
Raw materials		20,830		15,252
Total	$	226,750	$	184,439

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Accrued Expenses (Tables)

3 Months Ended

Mar. 31, 2018

Components of Accrued Expenses

	March 31,		December 30,
	2018		2017
Interest	$	23,547	$	24,095
Payroll and benefits		22,278		33,915
Capital lease obligations		22,733		19,276
Insurance		11,423		11,455
Non-income taxes		9,553		7,236
Professional fees		2,785		1,717
Other (1)		20,010		18,935
Total	$	112,329	$	116,629

Consists primarily of subcontractor and working capital settlement accruals.

Summit Materials, LLC

Components of Accrued Expenses

	March 31,		December 30,
	2018		2017
Interest	$	23,547	$	24,095
Payroll and benefits		22,278		33,915
Capital lease obligations		22,733		19,276
Insurance		11,423		11,455
Non-income taxes		9,784		7,467
Professional fees		2,785		1,717
Other (1)		20,010		18,349
Total	$	112,560	$	116,274

Consists primarily of subcontractor and working capital settlement accruals.

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Debt (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Debt

	March 31,		December 30,
	2018		2017
Term Loan, due 2024:
$633.8 million and $635.4 million, net of $1.5 million and $1.6 million discount at March 31, 2018 and December 30, 2017, respectively	$	632,275	$	633,805
81⁄2% Senior Notes, due 2022		250,000		250,000
61⁄8% Senior Notes, due 2023:
$650.0 million, net of $1.3 million and $1.4 million discount at March 31, 2018 and December 30, 2017, respectively		648,710		648,650
51⁄8% Senior Notes, due 2025		300,000		300,000
Total		1,830,985		1,832,455
Current portion of long-term debt		6,354		4,765
Long-term debt	$	1,824,631	$	1,827,690

Schedule of Contractual Payments of Long-Term Debt

The contractual payments of long-term debt, including current maturities, for the five years subsequent to March 31, 2018, are as follows:

2018 (nine months)	$	3,177
2019		6,354
2020		7,942
2021		6,354
2022		256,354
2023		656,354
Thereafter		897,253
Total		1,833,788
Less: Original issue net discount		(2,803)
Less: Capitalized loan costs		(16,096)
Total debt	$	1,814,889

Summary of Activity for Deferred Financing Fees

	Deferred financing fees
Balance—December 30, 2017	$	19,033
Amortization		(1,013)
Balance—March 31, 2018	$	18,020
Balance—December 31, 2016	$	18,290
Loan origination fees		699
Amortization		(917)
Write off of deferred financing fees		(45)
Balance—April 1, 2017	$	18,027

Summit Materials, LLC

Schedule of Debt

	March 31,		December 30,
	2018		2017
Term Loan, due 2024:
$633.8 million and $635.4 million, net of $1.5 million and $1.6 million discount at March 31, 2018 and December 30, 2017, respectively	$	632,275	$	633,805
81⁄2% Senior Notes, due 2022		250,000		250,000
61⁄8% Senior Notes, due 2023:
$650.0 million, net of $1.3 million and $1.4 million discount at March 31, 2018 and December 30, 2017, respectively		648,710		648,650
51⁄8% Senior Notes, due 2025		300,000		300,000
Total		1,830,985		1,832,455
Current portion of long-term debt		6,354		4,765
Long-term debt	$	1,824,631	$	1,827,690

Schedule of Contractual Payments of Long-Term Debt

The contractual payments of long-term debt, including current maturities, for the five years subsequent to March 31, 2018, are as follows:

2018 (nine months)	$	3,177
2019		6,354
2020		7,942
2021		6,354
2022		256,354
2023		656,354
Thereafter		897,253
Total		1,833,788
Less: Original issue net discount		(2,803)
Less: Capitalized loan costs		(16,096)
Total debt	$	1,814,889

Summary of Activity for Deferred Financing Fees

	Deferred financing fees
Balance—December 30, 2017	$	19,033
Amortization		(1,013)
Balance—March 31, 2018	$	18,020
Balance—December 31, 2016	$	18,290
Loan origination fees		699
Amortization		(917)
Write off of deferred financing fees		(45)
Balance—April 1, 2017	$	18,027

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2018

Net Earnings Per Share

Schedule of Basic Earnings Per Share

	Three months ended
	March 31,		April 1,
	2018		2017
Net loss attributable to Summit Inc.	$	(53,729)	$	(52,444)
Weighted average shares of Class A stock outstanding		110,659,098		106,692,717
Basic loss per share	$	(0.49)	$	(0.49)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

	Three months ended
	March 31,		April 1,
	2018		2017
Antidilutive shares:
LP Units		3,585,516		4,915,202
Time-vesting stock options		3,296,133		5,311,863
Warrants		100,037		160,333
Time-vesting restricted stock units		854,482		527,393
Market-based restricted stock units		295,252		211,455

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Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2018

Company Information

Schedule of changes in ownership of Summit Holdings

	Summit Inc. Shares (Class A)	LP Units	Total	Summit Inc. Ownership Percentage
Balance — December 30, 2017	110,350,594	3,689,620	114,040,214	96.8	%
Exchanges during period	104,104	(104,104)	—
Other equity transactions	1,033,875	—	1,033,875
Balance — March 31, 2018	111,488,573	3,585,516	115,074,089	96.9	%
Balance — December 31, 2016	97,554,278	5,151,297	102,705,575	95.0	%
January 2017 public offering	10,000,000	—	10,000,000
Exchanges during period	236,095	(236,095)	—
Other equity transactions	134,423	—	134,423
Balance — April 1, 2017	107,924,796	4,915,202	112,839,998	95.6	%

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 — December 30, 2017	$	2,364	$	4,637	$	385	$	7,386
Foreign currency translation adjustment, net of tax		—		(3,772)		—		(3,772)
Income on cash flow hedges, net of tax		—		—		1,209		1,209
Balance — March 31, 2018	$	2,364	$	865	$	1,594	$	4,823
Balance — December 31, 2016	$	1,450	$	(3,106)	$	(593)	$	(2,249)
Foreign currency translation adjustment		—		670		—		670
Income on cash flow hedges		—		—		393		393
Balance — April 1, 2017	$	1,450	$	(2,436)	$	(200)	$	(1,186)

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		(loss) income
Balance — December 30, 2017	$	(6,053)	$	(10,022)	$	(1,060)	$	(17,135)
Foreign currency translation adjustment		—		(3,104)		—		(3,104)
Income on cash flow hedges		—		—		995		995
Balance — March 31, 2018	$	(6,053)	$	(13,126)	$	(65)	$	(19,244)
Balance — December 31, 2016	$	(7,181)	$	(17,790)	$	(2,473)	$	(27,444)
Foreign currency translation adjustment		—		706		—		706
Income on cash flow hedges		—		—		412		412
Balance — April 1, 2017	$	(7,181)	$	(17,084)	$	(2,061)	$	(26,326)

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Supplemental Cash Flow Information (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Supplemental Cash Flow Information

	Three months ended
	March 31,		April 1,
	2018		2017
Cash payments:
Interest	$	26,927	$	26,727
Income taxes		1,582		230
Non cash financing activities:
Exchange of LP Units to shares of Class A common stock		3,325		5,753

Summit Materials, LLC

Schedule of Supplemental Cash Flow Information

	Three months ended
	March 31,		April 1,
	2018		2017
Cash payments:
Interest	$	26,927	$	26,727
Income taxes		1,582		230

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Fair Value (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Contingent Consideration and Derivatives Measured at Fair Value

	March 31,		December 30,
	2018		2017
Current portion of acquisition-related liabilities and Accrued expenses:
Contingent consideration	$	23,474	$	594
Cash flow hedges		123		488
Acquisition-related liabilities and Other noncurrent liabilities
Contingent consideration	$	4,025	$	34,301
Cash flow hedges		—		492

Schedule of Carrying Value and Fair Value of Financial Instruments

	March 31, 2018				December 30, 2017
	Fair Value		Carrying Value		Fair Value		Carrying Value
Level 2
Long-term debt(1)	$	1,860,811	$	1,830,985	$	1,893,239	$	1,832,455
Level 3
Current portion of deferred consideration and noncompete obligations(2)		13,627		13,627		13,493		13,493
Long term portion of deferred consideration and noncompete obligations(3)		24,869		24,869		23,834		23,834

(1) $6.4 million and $4.8 million included in current portion of debt as of March 31, 2018 and December 30, 2017, 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

	March 31,		December 30,
	2018		2017
Current portion of acquisition-related liabilities and Accrued expenses:
Contingent consideration	$	23,474	$	594
Cash flow hedges		123		488
Acquisition-related liabilities and Other noncurrent liabilities
Contingent consideration	$	4,025	$	34,301
Cash flow hedges		—		492

Schedule of Carrying Value and Fair Value of Financial Instruments

	March 31, 2018				December 30, 2017
	Fair Value		Carrying Value		Fair Value		Carrying Value
Level 2
Long-term debt(1)	$	1,860,811	$	1,830,985	$	1,893,239	$	1,832,455
Level 3
Current portion of deferred consideration and noncompete obligations(2)		11,127		11,127		10,993		10,993
Long term portion of deferred consideration and noncompete obligations(3)		21,260		21,260		17,938		17,938

(1) $6.4 million and $4.8 million included in current portion of debt as of March 31, 2018 and December 30, 2017, 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)

3 Months Ended

Mar. 31, 2018

Summary of Financial Data for Company's Reportable Business Segments

	Three months ended
	March 31,		April 1,
	2018		2017
Revenue*:
West	$	181,713	$	143,219
East		95,157		97,223
Cement		37,551		43,835
Total revenue	$	314,421	$	284,277

*Intercompany sales are immaterial and the presentation above only reflects sales to external customers.

	Three months ended
	March 31,		April 1,
	2018		2017
Loss from continuing operations before taxes	$	(72,654)	$	(57,286)
Interest expense		28,784		24,969
Depreciation, depletion and amortization		46,543		39,304
Accretion		415		444
Loss on debt financings		—		190
Transaction costs		1,266		1,273
Non-cash compensation		8,507		4,748
Other		(7,348)		(12)
Total Adjusted EBITDA	$	5,513	$	13,630
Total Adjusted EBITDA by Segment:
West	$	16,173	$	15,699
East		(3,203)		4,348
Cement		3,667		2,685
Corporate and other		(11,124)		(9,102)
Total Adjusted EBITDA	$	5,513	$	13,630

	Three months ended
	March 31,		April 1,
	2018		2017
Purchases of property, plant and equipment
West	$	28,909	$	26,562
East		14,464		15,706
Cement		4,468		7,673
Total reportable segments		47,841		49,941
Corporate and other		1,664		1,115
Total purchases of property, plant and equipment	$	49,505	$	51,056

	Three months ended
	March 31,		April 1,
	2018		2017
Depreciation, depletion, amortization and accretion:
West	$	22,151	$	15,663
East		17,727		15,378
Cement		6,370		8,048
Total reportable segments		46,248		39,089
Corporate and other		710		659
Total depreciation, depletion, amortization and accretion	$	46,958	$	39,748

	March 31,		December 30,
	2018		2017
Total assets:
West	$	1,313,661	$	1,225,463
East		1,083,989		1,035,609
Cement		887,737		870,652
Total reportable segments		3,285,387		3,131,724
Corporate and other		471,193		655,609
Total	$	3,756,580	$	3,787,333

Summit Materials, LLC

Summary of Financial Data for Company's Reportable Business Segments

	Three months ended
	March 31,		April 1,
	2018		2017
Revenue*:
West	$	181,713	$	143,219
East		95,157		97,223
Cement		37,551		43,835
Total revenue	$	314,421	$	284,277

*Intercompany sales are immaterial and the presentation above only reflects sales to external customers.

	Three months ended
	March 31,		April 1,
	2018		2017
Loss from continuing operations before taxes	$	(72,440)	$	(57,032)
Interest expense		28,570		24,715
Depreciation, depletion and amortization		46,543		39,304
Accretion		415		444
Loss on debt financings		—		190
Transaction costs		1,266		1,273
Non-cash compensation		8,507		4,748
Other		(7,348)		(12)
Total Adjusted EBITDA	$	5,513	$	13,630
Total Adjusted EBITDA by Segment:
West	$	16,173	$	15,699
East		(3,203)		4,348
Cement		3,667		2,685
Corporate and other		(11,124)		(9,102)
Total Adjusted EBITDA	$	5,513	$	13,630

	Three months ended
	March 31,		April 1,
	2018		2017
Purchases of property, plant and equipment
West	$	28,909	$	26,562
East		14,464		15,706
Cement		4,468		7,673
Total reportable segments		47,841		49,941
Corporate and other		1,664		1,115
Total purchases of property, plant and equipment	$	49,505	$	51,056

	Three months ended
	March 31,		April 1,
	2018		2017
Depreciation, depletion, amortization and accretion:
West	$	22,151	$	15,663
East		17,727		15,378
Cement		6,370		8,048
Total reportable segments		46,248		39,089
Corporate and other		710		659
Total depreciation, depletion, amortization and accretion	$	46,958	$	39,748

	March 31,		December 30,
	2018		2017
Total assets:
West	$	1,313,661	$	1,225,463
East		1,083,989		1,035,609
Cement		887,737		870,652
Total reportable segments		3,285,387		3,131,724
Corporate and other		178,153		372,517
Total	$	3,463,540	$	3,504,241

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Senior Notes' Guarantor and Non-Guarantor Financial Information (Tables) - Summit Materials, LLC

3 Months Ended

Mar. 31, 2018

Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheets

March 31, 2018

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	169,192	$	5,949	$	12,841	$	(9,689)	$	178,293
Accounts receivable, net		—		168,155		11,988		(44)		180,099
Intercompany receivables		560,676		427,497		—		(988,173)		—
Cost and estimated earnings in excess of billings		—		12,324		344		—		12,668
Inventories		—		222,277		4,473		—		226,750
Other current assets		1,232		10,977		1,533		—		13,742
Total current assets		731,100		847,179		31,179		(997,906)		611,552
Property, plant and equipment, net		10,159		1,626,147		36,574		—		1,672,880
Goodwill		—		1,050,976		59,472		—		1,110,448
Intangible assets, net		—		16,621		—		—		16,621
Other assets		2,958,528		159,408		1,322		(3,067,219)		52,039
Total assets	$	3,699,787	$	3,700,331	$	128,547	$	(4,065,125)	$	3,463,540
Liabilities and Member’s Interest
Current liabilities:
Current portion of debt	$	6,354	$	—	$	—	$	—	$	6,354
Current portion of acquisition-related liabilities		—		34,601		—		—		34,601
Accounts payable		4,769		100,108		6,821		(44)		111,654
Accrued expenses		44,605		75,989		1,655		(9,689)		112,560
Intercompany payables		591,792		393,342		3,039		(988,173)		—
Billings in excess of costs and estimated earnings		—		14,736		395		—		15,131
Total current liabilities		647,520		618,776		11,910		(997,906)		280,300
Long-term debt		1,808,535		—		—		—		1,808,535
Acquisition-related liabilities		—		25,285		—		—		25,285
Other noncurrent liabilities		3,190		201,719		75,286		(171,317)		108,878
Total liabilities		2,459,245		845,780		87,196		(1,169,223)		2,222,998
Total member's interest		1,240,542		2,854,551		41,351		(2,895,902)		1,240,542
Total liabilities and member’s interest	$	3,699,787	$	3,700,331	$	128,547	$	(4,065,125)	$	3,463,540

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 Statements of Operations and Comprehensive Loss

Condensed Consolidating Statements of Operations

For the three months ended March 31, 2018

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—	$	300,658	$	15,181	$	(1,418)	$	314,421
Cost of revenue (excluding items shown separately below)		—		238,127		11,152		(1,418)		247,861
General and administrative expenses		20,947		47,177		3,003		—		71,127
Depreciation, depletion, amortization and accretion		710		44,993		1,255		—		46,958
Operating loss		(21,657)		(29,639)		(229)		—		(51,525)
Other income, net		17,365		(6,858)		51		(18,213)		(7,655)
Interest expense (income)		29,582		(2,203)		1,191		—		28,570
Loss from operations before taxes		(68,604)		(20,578)		(1,471)		18,213		(72,440)
Income tax expense		(8)		(3,454)		(382)		—		(3,844)
Net loss attributable to member of Summit Materials, LLC	$	(68,596)	$	(17,124)	$	(1,089)	$	18,213	$	(68,596)
Comprehensive (loss) income attributable to member of Summit Materials, LLC	$	(70,705)	$	(18,119)	$	2,015	$	16,104	$	(70,705)

Condensed Consolidating Statements of Operations

For the three months ended April 1, 2017

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—		276,375		9,410		(1,508)	$	284,277
Cost of revenue (excluding items shown separately below)		—		211,992		7,088		(1,508)		217,572
General and administrative expenses		15,050		43,373		1,318		—		59,741
Depreciation, depletion, amortization and accretion		658		38,439		651		—		39,748
Operating (loss) income		(15,708)		(17,429)		353		—		(32,784)
Other expense (income), net		15,410		235		(35)		(16,077)		(467)
Interest expense		23,638		213		864		—		24,715
Loss from operations before taxes		(54,756)		(17,877)		(476)		16,077		(57,032)
Income (benefit) tax benefit		—		(2,180)		2		—		(2,178)
Net loss		(54,756)		(15,697)		(478)		16,077		(54,854)
Net loss attributable to noncontrolling interest		—		—		—		(98)		(98)
Net loss attributable to member of Summit Materials, LLC	$	(54,756)	$	(15,697)	$	(478)	$	16,175	$	(54,756)
Comprehensive loss attributable to member of Summit Materials, LLC	$	(53,638)	$	(16,109)	$	(1,184)	$	17,293	$	(53,638)

Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statements of Cash Flows

For the three months ended March 31, 2018

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(38,210)	$	(15,050)	$	1,893	$	—	$	(51,367)
Cash flow from investing activities:
Acquisitions, net of cash acquired		—		(113,993)		—		—		(113,993)
Purchase of property, plant and equipment		(1,664)		(46,363)		(1,478)		—		(49,505)
Proceeds from the sale of property, plant, and equipment		—		7,668		120		—		7,788
Other		—		1,500		—		—		1,500
Net cash used for investing activities		(1,664)		(151,188)		(1,358)		—		(154,210)
Cash flow from financing activities:
Proceeds from investment by member		(73,661)		89,136		—		—		15,475
Loans received from and payments made on loans from other Summit Companies		(83,090)		82,599		(2,192)		2,683		—
Payments on long-term debt		(1,588)		(2,380)		(4)		—		(3,972)
Payments on acquisition-related liabilities		—		(6,462)		—		—		(6,462)
Distributions from partnership		(2,509)		—		—		—		(2,509)
Other		(827)		(960)		(33)		—		(1,820)
Net cash (used in) provided by financing activities		(161,675)		161,933		(2,229)		2,683		712
Impact of cash on foreign currency		—		—		(398)		—		(398)
Net decrease in cash		(201,549)		(4,305)		(2,092)		2,683		(205,263)
Cash — Beginning of period		370,741		10,254		14,933		(12,372)		383,556
Cash — End of period	$	169,192	$	5,949	$	12,841	$	(9,689)	$	178,293

Condensed Consolidating Statements of Cash Flows

For the three months ended April 1, 2017

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(42,891)	$	(4,035)	$	1,850	$	—	$	(45,076)
Cash flow from investing activities:
Acquisitions, net of cash acquired		—		(112,333)		—		—		(112,333)
Purchase of property, plant and equipment		(1,115)		(49,931)		(10)		—		(51,056)
Proceeds from the sale of property, plant, and equipment		—		4,325		—		—		4,325
Other		—		974		—		—		974
Net cash used for investing activities		(1,115)		(156,965)		(10)		—		(158,090)
Cash flow from financing activities:
Proceeds from investment by member		164,795		73,834		—		—		238,629
Capital issuance costs		(638)		—		—		—		(638)
Loans received from and payments made on loans from other Summit Companies		(92,904)		101,616		(154)		(8,558)		—
Payments on long-term debt		(1,625)		(1,941)		—		—		(3,566)
Payments on acquisition-related liabilities		—		(13,914)		—		—		(13,914)
Financing costs		(699)		—		—		—		(699)
Distributions from partnership		(2,579)		—		—		—		(2,579)
Other		(319)		(392)		(21)		—		(732)
Net cash provided by (used in) financing activities		66,031		159,203		(154)		(8,558)		216,501
Impact of cash on foreign currency		—		—		100		—		100
Net increase (decrease) in cash		22,025		(1,797)		1,786		(8,558)		13,435
Cash — Beginning of period		133,862		4,820		14,656		(10,666)		142,672
Cash — End of period	$	155,887	$	3,023	$	16,442	$	(19,224)	$	156,107

XML

Summary of Organization and Significant Accounting Policies - General Information and Equity Offerings (Details)	1 Months Ended	3 Months Ended
	Oct. 31, 2017	Mar. 31, 2018 segment facility
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Number of operating segments		3
Minority interest purchased (as a percent)	20.00%
Cement plant
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Number of plants | facility		2
Summit Materials, LLC
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Number of operating segments		3
Summit Materials, LLC | Ohio Valley Asphalt
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Minority interest purchased (as a percent)	20.00%
Summit Holdings LP
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Voting power (as a percent)		100.00%

XML

Summary of Organization and Significant Accounting Policies - Business and Credit Concentration (Details)	3 Months Ended
	Mar. 31, 2018 state item
Business and Credit Concentrations
Number of states in which the entity operates | state	23
Sales | Customer Concentration Risk
Business and Credit Concentrations
Number of customers accounted for more than 10% of total revenue	0
Sales | Customer Concentration Risk | Maximum
Business and Credit Concentrations
Customer accounted revenue (as a percent)	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
Summit Materials, LLC | Sales | Customer Concentration Risk | Maximum
Business and Credit Concentrations
Customer accounted revenue (as a percent)	10.00%
Tax Receivable Agreement | Summit Holdings LP
Business and Credit Concentrations
Percentage of benefits to be paid on tax receivable agreement	85.00%
Percentage of the tax receivable agreement allocated to additional paid-in capital	15.00%

XML

Summary of Organization and Significant Accounting Policies - Reclassifications (Details)	3 Months Ended
	Apr. 01, 2017 USD ($)
Other assets
Reclassification amount	$ 17,000
Deferred tax assets, net
Reclassification amount	$ 2,400,000

XML

Acquisitions - Completed Acquisitions Information (Details) - item	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 30, 2017
West
Business Acquisition [Line Items]
Number of business acquisitions	2	6
East
Business Acquisition [Line Items]
Number of business acquisitions	2	8

XML

Acquisitions - Summary of Assets Acquired and Liabilities Assumed (Detail) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018 USD ($) facility	Apr. 01, 2017 USD ($)	Dec. 30, 2017 USD ($)
Business Acquisition [Line Items]
Net gain on asset disposals	$ 4,077	$ 1,665
Goodwill	$ 1,109,448		$ 1,036,320
Cement plant
Business Acquisition [Line Items]
Number of Plants Owned and Operated | facility	2
Cement
Business Acquisition [Line Items]
Goodwill	$ 204,656		204,656
Summit Materials, LLC
Business Acquisition [Line Items]
Net gain on asset disposals	4,077	$ 1,665
Goodwill	1,110,448		1,037,320
Summit Materials, LLC | Cement
Business Acquisition [Line Items]
Goodwill	204,656		204,656
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
2018 Acquisitions
Business Acquisition [Line Items]
Financial assets	10,372
Inventories	7,233
Property, plant and equipment	41,458
Intangible assets	108
Other assets	2,979
Financial liabilities	(9,307)
Other long-term liabilities	(3,597)
Net assets acquired	49,246
Goodwill	73,274
Purchase price	122,520
Acquisition related liabilities	(8,527)
Net cash paid for acquisitions	113,993
2018 Acquisitions | Summit Materials, LLC
Business Acquisition [Line Items]
Financial assets	10,372
Inventories	7,233
Property, plant and equipment	41,458
Intangible assets	108
Other assets	2,979
Financial liabilities	(9,307)
Other long-term liabilities	(3,597)
Net assets acquired	49,246
Goodwill	73,274
Purchase price	122,520
Acquisition related liabilities	(8,527)
Net cash paid for acquisitions	$ 113,993

XML

Acquisitions - Summary of Goodwill by Reportable Segments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 1,036,320
Acquisitions	74,770
Foreign currency translation adjustments	(1,642)
Ending balance	1,109,448
Summit Materials, LLC
Goodwill [Roll Forward]
Beginning balance	1,037,320
Acquisitions	74,770
Foreign currency translation adjustments	1,642
Ending balance	1,110,448
West
Goodwill [Roll Forward]
Beginning balance	526,290
Acquisitions	43,810
Foreign currency translation adjustments	(1,642)
Ending balance	568,458
West | Summit Materials, LLC
Goodwill [Roll Forward]
Beginning balance	527,290
Acquisitions	43,810
Foreign currency translation adjustments	1,642
Ending balance	569,458
East
Goodwill [Roll Forward]
Beginning balance	305,374
Acquisitions	30,960
Ending balance	336,334
East | Summit Materials, LLC
Goodwill [Roll Forward]
Beginning balance	305,374
Acquisitions	30,960
Ending balance	336,334
Cement
Goodwill [Roll Forward]
Beginning balance	204,656
Ending balance	204,656
Cement | Summit Materials, LLC
Goodwill [Roll Forward]
Beginning balance	204,656
Ending balance	$ 204,656

XML

Acquisitions - Intangible Assets By Type (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 23,641	$ 23,531
Accumulated Amortization	(7,020)	(6,698)
Net Carrying Amount	16,621	16,833
Summit Materials, LLC
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	23,641	23,531
Accumulated Amortization	(7,020)	(6,698)
Net Carrying Amount	16,621	16,833
Leases
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	15,998	15,888
Accumulated Amortization	(4,381)	(4,178)
Net Carrying Amount	11,617	11,710
Leases | Summit Materials, LLC
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	15,998	15,888
Accumulated Amortization	(4,381)	(4,178)
Net Carrying Amount	11,617	11,710
Reserve Rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	6,234	6,234
Accumulated Amortization	(1,699)	(1,625)
Net Carrying Amount	4,535	4,609
Reserve Rights | Summit Materials, LLC
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	6,234	6,234
Accumulated Amortization	(1,699)	(1,625)
Net Carrying Amount	4,535	4,609
Trade Names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,000	1,000
Accumulated Amortization	(783)	(758)
Net Carrying Amount	217	242
Trade Names | Summit Materials, LLC
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,000	1,000
Accumulated Amortization	(783)	(758)
Net Carrying Amount	217	242
Other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	409	409
Accumulated Amortization	(157)	(137)
Net Carrying Amount	252	272
Other | Summit Materials, LLC
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	409	409
Accumulated Amortization	(157)	(137)
Net Carrying Amount	$ 252	$ 272

XML

Acquisitions - Amortization Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Apr. 01, 2017	Dec. 30, 2017
Estimated amortization expense
2018 (nine months)	$ 938
2019	1,275
2020	1,162
2021	1,120
2022	1,120
2023	1,120
Thereafter	9,886
Total	16,621		$ 16,833
Amortization expense	300	$ 300
Summit Materials, LLC
Estimated amortization expense
2018 (nine months)	938
2019	1,275
2020	1,162
2021	1,120
2022	1,120
2023	1,120
Thereafter	9,886
Total	16,621		$ 16,833
Amortization expense	$ 300

XML

Revenue Recognition - By Product (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Apr. 01, 2017
Revenue by product
Total revenue	$ 314,421	$ 284,277
Aggregates
Revenue by product
Total revenue	67,450	61,622
Cement
Revenue by product
Total revenue	33,117	39,435
Ready-mixed concrete
Revenue by product
Total revenue	122,015	93,177
Asphalt
Revenue by product
Total revenue	18,141	19,537
Paving and related services
Revenue by product
Total revenue	34,336	36,296
Other
Revenue by product
Total revenue	39,362	34,210
Summit Materials, LLC
Revenue by product
Total revenue	314,421	284,277
Summit Materials, LLC | Aggregates
Revenue by product
Total revenue	67,450	61,622
Summit Materials, LLC | Cement
Revenue by product
Total revenue	33,117	39,435
Summit Materials, LLC | Ready-mixed concrete
Revenue by product
Total revenue	122,015	93,177
Summit Materials, LLC | Asphalt
Revenue by product
Total revenue	18,141	19,537
Summit Materials, LLC | Paving and related services
Revenue by product
Total revenue	34,336	36,296
Summit Materials, LLC | Other
Revenue by product
Total revenue	$ 39,362	$ 34,210

XML

Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 30, 2017
Change in Contract with Customer, Asset
Costs and estimated earnings in excess of billings	$ 12,668	$ 9,512
Changes in revenue billed, contract price or cost estimates	2,678
Acquisitions	483
Other	(5)
Change in Contract with Customer, Liability
Billings in excess of costs and estimated earnings	15,131	15,750
Changes in revenue billed, contract price or cost estimates	(1,788)
Acquisitions	1,179
Other	(10)
Summit Materials, LLC
Change in Contract with Customer, Asset
Costs and estimated earnings in excess of billings	12,668	9,512
Changes in revenue billed, contract price or cost estimates	2,678
Acquisitions	483
Other	(5)
Change in Contract with Customer, Liability
Billings in excess of costs and estimated earnings	15,131	$ 15,750
Changes in revenue billed, contract price or cost estimates	(1,788)
Acquisitions	1,179
Other	$ (10)

XML

Revenue Recognition - Summary of Accounts Receivable, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 30, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	$ 153,563	$ 137,696
Construction contract receivables	19,304	49,832
Retention receivables	12,378	14,973
Receivables from related parties	320	468
Accounts receivable	185,565	202,969
Less: Allowance for doubtful accounts	(5,466)	(4,639)
Accounts receivable, net	$ 180,099	198,330
Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
General collection and billing period for retention receivables	1 year
Summit Materials, LLC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	$ 153,563	137,696
Construction contract receivables	19,304	49,832
Retention receivables	12,378	14,973
Receivables from related parties	320	468
Accounts receivable	185,565	202,969
Less: Allowance for doubtful accounts	(5,466)	(4,639)
Accounts receivable, net	$ 180,099	$ 198,330

XML

Inventories - Components of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 30, 2017
Inventories
Aggregate stockpiles	$ 142,817	$ 126,791
Finished goods	54,258	34,667
Work in process	8,845	7,729
Raw materials	20,830	15,252
Total	226,750	184,439
Summit Materials, LLC
Inventories
Aggregate stockpiles	142,817	126,791
Finished goods	54,258	34,667
Work in process	8,845	7,729
Raw materials	20,830	15,252
Total	$ 226,750	$ 184,439

XML

Accrued Expenses - Components of Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 30, 2017
Schedule Of Accrued Expenses [Line Items]
Interest	$ 23,547	$ 24,095
Payroll and benefits	22,278	33,915
Capital lease obligations	22,733	19,276
Insurance	11,423	11,455
Non-income taxes	9,553	7,236
Professional fees	2,785	1,717
Other	20,010	18,935
Total	112,329	116,629
Summit Materials, LLC
Schedule Of Accrued Expenses [Line Items]
Interest	23,547	24,095
Payroll and benefits	22,278	33,915
Capital lease obligations	22,733	19,276
Insurance	11,423	11,455
Non-income taxes	9,784	7,467
Professional fees	2,785	1,717
Other	20,010	18,349
Total	$ 112,560	$ 116,274

XML

Debt - Schedule of Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 30, 2017	Jan. 19, 2017
Debt
Total debt	$ 1,830,985	$ 1,832,455
Current portion of long-term debt	6,354	4,765
Long-term debt	1,824,631	1,827,690
Gross amount	1,833,788
Debt discount	2,803
Summit Materials, LLC
Debt
Total debt	1,830,985	1,832,455
Current portion of long-term debt	6,354	4,765
Long-term debt	1,824,631	1,827,690
Gross amount	1,833,788
Debt discount	2,803
Term Loan, due 2022
Debt
Total debt	632,275	633,805
Gross amount	633,800	635,400	$ 640,300
Debt discount	1,500	1,600
Term Loan, due 2022 | Summit Materials, LLC
Debt
Total debt	632,275	633,805
Gross amount	633,800	635,400
Debt discount	1,500	1,600
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%
6 1/8% Senior Notes, due 2023
Debt
Total debt	$ 648,710	648,650
Gross amount	650,000
Debt discount	$ 1,300	1,400
Debt instrument interest rate (as a percent)	6.125%
6 1/8% Senior Notes, due 2023 | Summit Materials, LLC
Debt
Total debt	$ 648,710	648,650
Gross amount	650,000	650,000
Debt discount	$ 1,300	1,400
Debt instrument interest rate (as a percent)	6.125%
5 1/8% Senior Notes, due 2025
Debt
Total debt	$ 300,000	300,000
Debt instrument interest rate (as a percent)	5.125%
5 1/8% Senior Notes, due 2025 | Summit Materials, LLC
Debt
Long-term debt	$ 300,000	$ 300,000
Debt instrument interest rate (as a percent)	5.125%

XML

Debt - Schedule of Contractual Payments of Long-Term Debt (Details) $ in Thousands	Mar. 31, 2018 USD ($)
Contractual payments of long-term debt
2018 (nine months)	$ 3,177
2019	6,354
2020	7,942
2021	6,354
2022	256,354
2023	656,354
Thereafter	897,253
Total	1,833,788
Less: Original issue net discount	(2,803)
Less: Capitalized loan costs	(16,096)
Total debt	1,814,889
Summit Materials, LLC
Contractual payments of long-term debt
2018 (nine months)	3,177
2019	6,354
2020	7,942
2021	6,354
2022	256,354
2023	656,354
Thereafter	897,253
Total	1,833,788
Less: Original issue net discount	(2,803)
Less: Capitalized loan costs	(16,096)
Total debt	$ 1,814,889

XML

Debt - Senior Notes - Additional Information (Details) - USD ($) $ in Thousands			3 Months Ended	12 Months Ended
	Jun. 01, 2017	Mar. 08, 2016	Apr. 01, 2017	Jan. 02, 2016	Mar. 31, 2018
Debt
Write off of deferred financing fees			$ 45
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%
5 1/8% Senior Notes, due 2025
Debt
Senior notes, interest rate (as a percent)					5.125%
Issuers
Debt
Debt instrument, face amount	$ 300,000
Percentage of par value of senior notes	100.00%
Proceeds net of related fees and expenses	$ 295,400
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%
Summit Materials, LLC
Debt
Write off of deferred financing fees			$ 45
Summit Materials, LLC | 8 1/2% Senior Notes, due 2022
Debt
Senior notes, interest rate (as a percent)					8.50%
Summit Materials, LLC | 6 1/8% Senior Notes, due 2023
Debt
Senior notes, interest rate (as a percent)					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	3 Months Ended
	Mar. 31, 2018	Apr. 01, 2017	Dec. 30, 2017	Jan. 19, 2017
Debt
Outstanding principal amount	$ 1,833,788
Financing fees recognized	1,013	$ 917
Term Loan, due 2022
Debt
Outstanding principal amount	633,800		$ 635,400	$ 640,300
Summit Materials, LLC
Debt
Outstanding principal amount	1,833,788
Financing fees recognized	$ 1,013	$ 917
Summit Materials, LLC | Senior Secured Credit Facilities
Debt
First lien leverage ratio	4.75
Summit Materials, LLC | Term Loan, due 2022
Debt
Debt instrument, face amount	$ 650,000
Outstanding principal amount	$ 633,800		635,400
Quarterly principal repayments percentage	0.25%
Summit Materials, LLC | Revolving Credit Facility
Debt
Maximum borrowing capacity	$ 235,000
Amount outstanding	0		$ 0
Remaining borrowing capacity	$ 219,600
Summit Materials, LLC | Revolving Credit Facility | LIBOR
Debt
Basis spread on variable rate	3.00%
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	$ 15,400

XML

Debt - Summary of Activity for Deferred Financing Fees (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Apr. 01, 2017
Deferred finance costs
Beginning balance	$ 19,033	$ 18,290
Loan origination fees		699
Amortization	(1,013)	(917)
Write off of deferred financing fees		(45)
Ending balance	18,020	18,027
Summit Materials, LLC
Deferred finance costs
Beginning balance	19,033	18,290
Loan origination fees		699
Amortization	(1,013)	(917)
Write off of deferred financing fees		(45)
Ending balance	$ 18,020	$ 18,027

XML

Debt - Other - Additional Information (Details) - CAD ($) $ in Millions	Jan. 15, 2015	Mar. 31, 2018	Dec. 30, 2017
Canadian subsidiary credit agreement
Debt
Amount outstanding		$ 0.0	$ 0.0
Canadian subsidiary credit agreement | Summit Materials, LLC
Debt
Amount outstanding		$ 0.0
Canadian subsidiary credit agreement, Operating activities
Debt
Revolving credit commitment	$ 6.0
Canadian subsidiary credit agreement, Operating activities | Summit Materials, LLC
Debt
Revolving credit commitment	6.0
Canadian subsidiary credit agreement, Capital equipment
Debt
Revolving credit commitment	$ 0.5
Basis spread on variable rate	0.90%
Canadian subsidiary credit agreement, Capital equipment | Summit Materials, LLC
Debt
Revolving credit commitment	$ 0.5
Basis spread on variable rate	0.90%
Canadian subsidiary credit agreement, Guarantees
Debt
Revolving credit commitment	$ 0.4
Canadian subsidiary credit agreement, Guarantees | Summit Materials, LLC
Debt
Revolving credit commitment	$ 0.4
Prime rate | Canadian subsidiary credit agreement, Operating activities
Debt
Basis spread on variable rate	0.20%
Prime rate | Canadian subsidiary credit agreement, Operating activities | Summit Materials, LLC
Debt
Basis spread on variable rate	0.20%

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Income Taxes - Deferred Tax Assets and Tax Receivable Agreement (Details) - USD ($)	3 Months Ended			12 Months Ended
	Mar. 31, 2018	Mar. 31, 2018	Apr. 01, 2017	Dec. 30, 2017
Income Taxes
Income tax expense (benefit)	$ (16,706,000)		$ (2,178,000)	$ (2,200,000)
Tax receivable agreement liability	$ 332,162,000	$ 332,162,000		331,340,000
Number of Summit LP units purchased by Company, newly issued units (in shares)	104,104
Deferred tax asset, Investment in limited partnership	$ 1,000,000	1,000,000
Valuation Allowance
Valuation allowance	1,675,000	1,675,000		1,675,000
Liabilities recognized for uncertain tax positions	0	0		0
Income tax provision, interest or penalties recognized		0	0
Tax Receivable Agreement
Income Taxes
Tax receivable agreement liability	332,200,000	$ 332,200,000		331,900,000
Tax Receivable Agreement | Accrued expenses.
Income Taxes
Tax receivable agreement liability				$ 600,000
Summit Materials, LLC
Income Taxes
Income tax expense (benefit)	(3,844,000)		(2,178,000)
Summit Holdings LP
Income Taxes
Distributions to LP Unitholders	$ 9,000		$ 79,000
Summit Holdings LP | Tax Receivable Agreement
Income Taxes
Percentage of benefits to be paid on tax receivable agreement	85.00%

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Earnings Per Share - Schedule of Basic to Diluted Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Apr. 01, 2017
Reconciliation of basic to diluted loss per share
Net income (loss) attributable to Summit Inc.	$ (53,729)	$ (52,444)
Number of Summit LP units purchased by Company, newly issued units (in shares)	104,104
LP Units
Reconciliation of basic to diluted loss per share
Anti dilutive shares excluded from calculation of earnings per share	3,585,516	4,915,202
Time Vesting Restricted Stock Units
Reconciliation of basic to diluted loss per share
Anti dilutive shares excluded from calculation of earnings per share	854,482	527,393
Market Based Restricted Stock Units
Reconciliation of basic to diluted loss per share
Anti dilutive shares excluded from calculation of earnings per share	295,252	211,455
Stock options
Reconciliation of basic to diluted loss per share
Anti dilutive shares excluded from calculation of earnings per share	3,296,133	5,311,863
Warrants
Reconciliation of basic to diluted loss per share
Add: warrants	100,037	160,333
Common Class A
Reconciliation of basic to diluted loss per share
Weighted average shares of Class A common stock outstanding	110,659,098	106,692,717
Basic income (loss) per share	$ (0.49)	$ (0.49)
Weighted average dilutive shares outstanding	110,659,098	106,692,717
Diluted earnings per share	$ (0.49)	$ (0.49)
Summit Materials, LLC
Reconciliation of basic to diluted loss per share
Net income (loss) attributable to Summit Inc.	$ (68,596)	$ (54,756)

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Stockholders' Equity - Equity Offerings (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Jan. 10, 2017	Mar. 31, 2018	Apr. 01, 2017	Dec. 30, 2017	Dec. 31, 2016
Equity Offering
Proceeds from sale of common stock, net of underwriting discounts			$ 237,600
Ownership Percentage		96.90%	95.60%	96.80%	95.00%
Summit Holdings LP
Equity Offering
Noncontrolling interest elimination (as a percent)		3.10%		3.20%
Common Class A
Equity Offering
Beginning Balance (in shares)		110,350,594	97,554,278
Exchanges during period (in shares)		104,104	236,095
Other (in shares)		1,033,875	134,423
Ending Balance (in shares)		111,488,573	107,924,796
Common Class A | Follow on Public Offering
Equity Offering
Common stock issued (in shares)			10,000,000
Issuance of Shares (in shares)			10,000,000
Summit Materials, Inc. and Summit Holdings, LP
Equity Offering
Beginning Balance (in shares)		114,040,214	102,705,575
Other (in shares)		1,033,875	134,423
Ending Balance (in shares)		115,074,089	112,839,998
Summit Materials, Inc. and Summit Holdings, LP | Follow on Public Offering
Equity Offering
Common stock issued (in shares)			10,000,000
Issuance of Shares (in shares)			10,000,000
Summit Materials, Inc. and Summit Holdings, LP | Common Class A | Follow on Public Offering
Equity Offering
Proceeds from sale of common stock, net of underwriting discounts	$ 237,600
Common stock issued (in shares)	10,000,000
Offering price (in dollars per share)	$ 24.05
Issuance of Shares (in shares)	10,000,000
Summit Holdings LP
Equity Offering
Voting power (as a percent)		100.00%
LP Units | Summit Holdings LP
Equity Offering
Number of LP Units outstanding		3,585,516	4,915,202	3,689,620	5,151,297
Number of LP Units exchanged		(104,104)	(236,095)

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Stockholders' Equity - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Apr. 01, 2017
Changes in each component of accumulated other comprehensive loss
Beginning balance	$ 1,258,543
Ending balance	1,224,949
Accumulated Other Comprehensive Operations
Changes in each component of accumulated other comprehensive loss
Beginning balance	7,386	$ (2,249)
Foreign currency translation adjustment	(3,772)	670
Income on cash flow hedges	1,209	393
Ending balance	4,823	(1,186)
Change in retirement plans
Changes in each component of accumulated other comprehensive loss
Beginning balance	2,364	1,450
Ending balance	2,364	1,450
Foreign currency translation adjustment
Changes in each component of accumulated other comprehensive loss
Beginning balance	4,637	(3,106)
Foreign currency translation adjustment	(3,772)	670
Ending balance	865	(2,436)
Cash flow hedge adjustments
Changes in each component of accumulated other comprehensive loss
Beginning balance	385	(593)
Income on cash flow hedges	1,209	393
Ending balance	1,594	(200)
Summit Materials, LLC | Accumulated Other Comprehensive Operations
Changes in each component of accumulated other comprehensive loss
Beginning balance	(17,135)	(27,444)
Foreign currency translation adjustment	(3,104)	706
Income on cash flow hedges	995	412
Ending balance	(19,244)	(26,326)
Summit Materials, LLC | Change in retirement plans
Changes in each component of accumulated other comprehensive loss
Beginning balance	(6,053)	(7,181)
Ending balance	(6,053)	(7,181)
Summit Materials, LLC | Foreign currency translation adjustment
Changes in each component of accumulated other comprehensive loss
Beginning balance	(10,022)	(17,790)
Foreign currency translation adjustment	(3,104)	706
Ending balance	(13,126)	(17,084)
Summit Materials, LLC | Cash flow hedge adjustments
Changes in each component of accumulated other comprehensive loss
Beginning balance	(1,060)	(2,473)
Income on cash flow hedges	995	412
Ending balance	$ (65)	$ (2,061)

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Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Apr. 01, 2017
Cash payments:
Interest	$ 26,927	$ 26,727
Income taxes	1,582	230
Non cash financing activities:
Exchange of LP units to Common A Stock	3,325	5,753
Summit Materials, LLC
Cash payments:
Interest	26,927	26,727
Income taxes	$ 1,582	$ 230

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Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Dec. 30, 2017
Contingencies
Term of purchase commitments	1 year
Site Restoration Obligations
Contingencies
Anticipated costs	$ 71.7	$ 67.9
Site Restoration Obligations | Other noncurrent liabilities
Contingencies
Site restoration obligation, non-current	20.5	20.5
Site Restoration Obligations | Accrued expenses.
Contingencies
Asset retirement obligation, current	$ 4.0	3.9
Summit Materials, LLC
Contingencies
Term of purchase commitments	1 year
Summit Materials, LLC | Site Restoration Obligations
Contingencies
Anticipated costs	$ 71.7	67.9
Summit Materials, LLC | Site Restoration Obligations | Other noncurrent liabilities
Contingencies
Site restoration obligation, non-current	20.5	20.5
Summit Materials, LLC | Site Restoration Obligations | Accrued expenses.
Contingencies
Asset retirement obligation, current	$ 4.0	$ 3.9

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Fair Value - Fair Value Measurements (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2018	Apr. 01, 2017	Dec. 30, 2017
Level 3
Fair Value Measurements
Current portion of acquisition-related liabilities and Accrued expenses - Contingent consideration	$ 23,474	$ 23,474		$ 594
Acquisition-related liabilities and Other noncurrent liabilities - Contingent consideration	4,025	$ 4,025		34,301
Discount rate		11.00%
Adjustment to contingent consideration	0		$ 0
Cash flow hedges | Interest rate derivatives | Level 2
Fair Value Measurements
Current portion of acquisition-related liabilities and Accrued expenses - Cash flow hedge	123	$ 123		488
Acquisition-related liabilities and Other noncurrent liabilities - Cash flow hedge				492
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	23,474	23,474		594
Acquisition-related liabilities and Other noncurrent liabilities - Contingent consideration	4,025	$ 4,025		34,301
Discount rate		11.00%
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	123	$ 123		488
Acquisition-related liabilities and Other noncurrent liabilities - Cash flow hedge				$ 492
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	Mar. 31, 2018	Dec. 30, 2017
Financial Instruments
Current portion of debt	$ 6,354	$ 4,765
Summit Materials, LLC
Financial Instruments
Current portion of debt	6,354	4,765
Level 2
Financial Instruments
Current portion of debt	6,400	4,800
Level 2 | Fair Value.
Financial Instruments
Long-term debt	1,860,811	1,893,239
Level 2 | Carrying Value
Financial Instruments
Long-term debt	1,830,985	1,832,455
Level 2 | Summit Materials, LLC
Financial Instruments
Current portion of debt	6,400	4,800
Level 2 | Summit Materials, LLC | Fair Value.
Financial Instruments
Long-term debt	1,860,811	1,893,239
Level 2 | Summit Materials, LLC | Carrying Value
Financial Instruments
Long-term debt	1,830,985	1,832,455
Level 3 | Fair Value.
Financial Instruments
Current portion of deferred consideration and noncompete obligations	13,627	13,493
Long term portion of deferred consideration and noncompete obligations	24,869	23,834
Level 3 | Carrying Value
Financial Instruments
Current portion of deferred consideration and noncompete obligations	13,627	13,493
Long term portion of deferred consideration and noncompete obligations	24,869	23,834
Level 3 | Summit Materials, LLC | Fair Value.
Financial Instruments
Current portion of deferred consideration and noncompete obligations	11,127	10,993
Long term portion of deferred consideration and noncompete obligations	21,260	17,938
Level 3 | Summit Materials, LLC | Carrying Value
Financial Instruments
Current portion of deferred consideration and noncompete obligations	11,127	10,993
Long term portion of deferred consideration and noncompete obligations	$ 21,260	$ 17,938

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Segment Information - Financial Data (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018 USD ($) segment	Apr. 01, 2017 USD ($)	Dec. 30, 2017 USD ($)
Segment Information
Number of operating segments | segment	3
Total revenue	$ 314,421	$ 284,277
(Loss) income from operations before taxes	(72,654)	(57,286)
Interest expense	28,784	24,969
Depreciation, depletion and amortization	46,543	39,304
Accretion	415	444
Loss on debt financings		190
Transaction costs	1,266	1,273
Non-cash compensation	8,507	4,748
Other	(7,348)	(12)
Total Adjusted EBITDA	5,513	13,630
Total capital expenditures	49,505	51,056
Total depreciation, depletion, amortization and accretion	46,958	39,748
Total assets	$ 3,756,580		$ 3,787,333
Summit Materials, LLC
Segment Information
Number of operating segments | segment	3
Total revenue	$ 314,421	284,277
(Loss) income from operations before taxes	(72,440)	(57,032)
Interest expense	28,570	24,715
Depreciation, depletion and amortization	46,543	39,304
Accretion	415	444
Loss on debt financings		190
Transaction costs	1,266	1,273
Non-cash compensation	8,507	4,748
Other	(7,348)	(12)
Total Adjusted EBITDA	5,513	13,630
Total capital expenditures	49,505	51,056
Total depreciation, depletion, amortization and accretion	46,958	39,748
Total assets	3,463,540		3,504,241
West
Segment Information
Total revenue	181,713	143,219
West | Summit Materials, LLC
Segment Information
Total revenue	181,713	143,219
East
Segment Information
Total revenue	95,157	97,223
East | Summit Materials, LLC
Segment Information
Total revenue	95,157	97,223
Cement
Segment Information
Total revenue	37,551	43,835
Cement | Summit Materials, LLC
Segment Information
Total revenue	37,551	43,835
Operating segment
Segment Information
Total capital expenditures	47,841	49,941
Total depreciation, depletion, amortization and accretion	46,248	39,089
Total assets	3,285,387		3,131,724
Operating segment | Summit Materials, LLC
Segment Information
Total capital expenditures	47,841	49,941
Total depreciation, depletion, amortization and accretion	46,248	39,089
Total assets	3,285,387		3,131,724
Operating segment | West
Segment Information
Total Adjusted EBITDA	16,173	15,699
Total capital expenditures	28,909	26,562
Total depreciation, depletion, amortization and accretion	22,151	15,663
Total assets	1,313,661		1,225,463
Operating segment | West | Summit Materials, LLC
Segment Information
Total Adjusted EBITDA	16,173	15,699
Total capital expenditures	28,909	26,562
Total depreciation, depletion, amortization and accretion	22,151	15,663
Total assets	1,313,661		1,225,463
Operating segment | East
Segment Information
Total Adjusted EBITDA	(3,203)	4,348
Total capital expenditures	14,464	15,706
Total depreciation, depletion, amortization and accretion	17,727	15,378
Total assets	1,083,989		1,035,609
Operating segment | East | Summit Materials, LLC
Segment Information
Total Adjusted EBITDA	(3,203)	4,348
Total capital expenditures	14,464	15,706
Total depreciation, depletion, amortization and accretion	17,727	15,378
Total assets	1,083,989		1,035,609
Operating segment | Cement
Segment Information
Total Adjusted EBITDA	3,667	2,685
Total capital expenditures	4,468	7,673
Total depreciation, depletion, amortization and accretion	6,370	8,048
Total assets	887,737		870,652
Operating segment | Cement | Summit Materials, LLC
Segment Information
Total Adjusted EBITDA	3,667	2,685
Total capital expenditures	4,468	7,673
Total depreciation, depletion, amortization and accretion	6,370	8,048
Total assets	887,737		870,652
Corporate and other
Segment Information
Total Adjusted EBITDA	(11,124)	(9,102)
Total capital expenditures	1,664	1,115
Total depreciation, depletion, amortization and accretion	710	659
Total assets	471,193		655,609
Corporate and other | Summit Materials, LLC
Segment Information
Total Adjusted EBITDA	(11,124)	(9,102)
Total capital expenditures	1,664	1,115
Total depreciation, depletion, amortization and accretion	710	659
Total assets	178,153		$ 372,517
Aggregates
Segment Information
Total revenue	67,450	61,622
Aggregates | Summit Materials, LLC
Segment Information
Total revenue	67,450	61,622
Cement
Segment Information
Total revenue	33,117	39,435
Cement | Summit Materials, LLC
Segment Information
Total revenue	33,117	39,435
Ready-mixed concrete
Segment Information
Total revenue	122,015	93,177
Ready-mixed concrete | Summit Materials, LLC
Segment Information
Total revenue	122,015	93,177
Asphalt
Segment Information
Total revenue	18,141	19,537
Asphalt | Summit Materials, LLC
Segment Information
Total revenue	18,141	19,537
Paving and related services
Segment Information
Total revenue	34,336	36,296
Paving and related services | Summit Materials, LLC
Segment Information
Total revenue	34,336	36,296
Other
Segment Information
Total revenue	39,362	34,210
Other | Summit Materials, LLC
Segment Information
Total revenue	$ 39,362	$ 34,210

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Guarantor and Non-Guarantor Financial Information - Schedule of Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 30, 2017	Apr. 01, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 178,293	$ 383,556	$ 156,107	$ 143,392
Accounts receivable, net	180,099	198,330
Cost and estimated earnings in excess of billings	12,668	9,512
Inventories	226,750	184,439
Other current assets	13,742	7,764
Total current assets	611,552	783,601
Property, plant and equipment, net	1,672,880	1,615,424
Goodwill	1,109,448	1,036,320
Intangible assets	16,621	16,833
Other assets	48,350	51,063
Total assets	3,756,580	3,787,333
Current liabilities:
Current portion of debt	6,354	4,765
Current portion of acquisition-related liabilities	37,101	14,087
Accounts payable	110,348	98,744
Accrued expenses	112,329	116,629
Billings in excess of costs and estimated earnings	15,131	15,750
Total current liabilities	281,263	249,975
Long-term debt	1,808,535	1,810,833
Acquisition-related liabilities	28,894	58,135
Other noncurrent liabilities	70,379	65,329
Total liabilities	2,521,233	2,515,612
Total liabilities and stockholders' equity / member's interest	3,756,580	3,787,333
Summit Materials, LLC
Current assets:
Cash and cash equivalents	178,293	383,556	156,107	142,672
Accounts receivable, net	180,099	198,330
Cost and estimated earnings in excess of billings	12,668	9,512
Inventories	226,750	184,439
Other current assets	13,742	7,764
Total current assets	611,552	783,601
Property, plant and equipment, net	1,672,880	1,615,424
Goodwill	1,110,448	1,037,320
Intangible assets	16,621	16,833
Other assets	52,039	51,063
Total assets	3,463,540	3,504,241
Current liabilities:
Current portion of debt	6,354	4,765
Current portion of acquisition-related liabilities	34,601	11,587
Accounts payable	111,654	100,637
Accrued expenses	112,560	116,274
Billings in excess of costs and estimated earnings	15,131	15,750
Total current liabilities	280,300	249,013
Long-term debt	1,808,535	1,810,833
Acquisition-related liabilities	25,285	52,239
Other noncurrent liabilities	108,878	100,562
Total liabilities	2,222,998	2,212,647
Total member's interest	1,240,542	1,291,594
Total liabilities and stockholders' equity / member's interest	3,463,540	3,504,241
Summit Materials, LLC | Eliminations
Current assets:
Cash and cash equivalents	(9,689)	(12,372)	(19,224)	(10,666)
Accounts receivable, net	(44)
Intercompany receivables	(988,173)	(1,058,048)
Total current assets	(997,906)	(1,070,420)
Other assets	(3,067,219)	(3,003,593)
Total assets	(4,065,125)	(4,074,013)
Current liabilities:
Accounts payable	(44)
Accrued expenses	(9,689)	(12,372)
Intercompany payables	(988,173)	(1,058,048)
Total current liabilities	(997,906)	(1,070,420)
Other noncurrent liabilities	(171,317)	(171,318)
Total liabilities	(1,169,223)	(1,241,738)
Total member's interest	(2,895,902)	(2,832,275)
Total liabilities and stockholders' equity / member's interest	(4,065,125)	(4,074,013)
Summit Materials, LLC | Issuers
Current assets:
Cash and cash equivalents	169,192	370,741	155,887	133,862
Intercompany receivables	560,676	573,301
Other current assets	1,232	1,167
Total current assets	731,100	945,209
Property, plant and equipment, net	10,159	9,259
Other assets	2,958,528	2,890,674
Total assets	3,699,787	3,845,142
Current liabilities:
Current portion of debt	6,354	4,765
Accounts payable	4,769	3,976
Accrued expenses	44,605	47,047
Intercompany payables	591,792	684,057
Total current liabilities	647,520	739,845
Long-term debt	1,808,535	1,810,833
Other noncurrent liabilities	3,190	2,870
Total liabilities	2,459,245	2,553,548
Total member's interest	1,240,542	1,291,594
Total liabilities and stockholders' equity / member's interest	3,699,787	3,845,142
Summit Materials, LLC | Guarantors
Current assets:
Cash and cash equivalents	5,949	10,254	3,023	4,820
Accounts receivable, net	168,155	183,139
Intercompany receivables	427,497	484,747
Cost and estimated earnings in excess of billings	12,324	9,264
Inventories	222,277	180,283
Other current assets	10,977	6,354
Total current assets	847,179	874,041
Property, plant and equipment, net	1,626,147	1,569,118
Goodwill	1,050,976	976,206
Intangible assets	16,621	16,833
Other assets	159,408	162,711
Total assets	3,700,331	3,598,909
Current liabilities:
Current portion of acquisition-related liabilities	34,601	11,587
Accounts payable	100,108	89,912
Accrued expenses	75,989	79,372
Intercompany payables	393,342	369,918
Billings in excess of costs and estimated earnings	14,736	15,349
Total current liabilities	618,776	566,138
Acquisition-related liabilities	25,285	52,239
Other noncurrent liabilities	201,719	193,801
Total liabilities	845,780	812,178
Total member's interest	2,854,551	2,786,731
Total liabilities and stockholders' equity / member's interest	3,700,331	3,598,909
Summit Materials, LLC | Non Guarantors
Current assets:
Cash and cash equivalents	12,841	14,933	$ 16,442	$ 14,656
Accounts receivable, net	11,988	15,191
Cost and estimated earnings in excess of billings	344	248
Inventories	4,473	4,156
Other current assets	1,533	243
Total current assets	31,179	34,771
Property, plant and equipment, net	36,574	37,047
Goodwill	59,472	61,114
Other assets	1,322	1,271
Total assets	128,547	134,203
Current liabilities:
Accounts payable	6,821	6,749
Accrued expenses	1,655	2,227
Intercompany payables	3,039	4,073
Billings in excess of costs and estimated earnings	395	401
Total current liabilities	11,910	13,450
Other noncurrent liabilities	75,286	75,209
Total liabilities	87,196	88,659
Total member's interest	41,351	45,544
Total liabilities and stockholders' equity / member's interest	$ 128,547	$ 134,203

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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		12 Months Ended
	Mar. 31, 2018	Apr. 01, 2017	Dec. 30, 2017
Condensed Consolidating Statements of Operations
Revenue	$ 314,421	$ 284,277
Cost of revenue (excluding items shown separately below)	247,861	217,572
Depreciation, depletion, amortization and accretion	46,958	39,748
Operating income	(51,525)	(32,784)
(Loss) income from operations before taxes	(72,654)	(57,286)
Income tax expense (benefit)	(16,706)	(2,178)	$ (2,200)
Net loss	(55,948)	(55,108)
Net income (loss) attributable to member of Summit Materials, LLC	(53,729)	(52,444)
Comprehensive income (loss) income attributable to member of Summit Materials, LLC	(56,292)	(52,444)
Summit Materials, LLC
Condensed Consolidating Statements of Operations
Revenue	314,421	284,277
Cost of revenue (excluding items shown separately below)	247,861	217,572
General and administrative expenses	71,127	59,741
Depreciation, depletion, amortization and accretion	46,958	39,748
Operating income	(51,525)	(32,784)
Other (income) expense, net	(7,655)	(467)
Interest expense (income)	28,570	24,715
(Loss) income from operations before taxes	(72,440)	(57,032)
Income tax expense (benefit)	(3,844)	(2,178)
Net loss	(68,596)	(54,854)
Net income (loss) attributable to noncontrolling interest		(98)
Net income (loss) attributable to member of Summit Materials, LLC	(68,596)	(54,756)
Comprehensive income (loss) income attributable to member of Summit Materials, LLC	(70,705)	(53,638)
Summit Materials, LLC | Eliminations
Condensed Consolidating Statements of Operations
Revenue	(1,418)	(1,508)
Cost of revenue (excluding items shown separately below)	(1,418)	(1,508)
Other (income) expense, net	(18,213)	(16,077)
(Loss) income from operations before taxes	18,213	16,077
Net loss		16,077
Net income (loss) attributable to noncontrolling interest		(98)
Net income (loss) attributable to member of Summit Materials, LLC	18,213	16,175
Comprehensive income (loss) income attributable to member of Summit Materials, LLC	16,104	17,293
Summit Materials, LLC | Issuers
Condensed Consolidating Statements of Operations
General and administrative expenses	20,947	15,050
Depreciation, depletion, amortization and accretion	710	658
Operating income	(21,657)	(15,708)
Other (income) expense, net	17,365	15,410
Interest expense (income)	29,582	23,638
(Loss) income from operations before taxes	(68,604)	(54,756)
Income tax expense (benefit)	(8)
Net loss		(54,756)
Net income (loss) attributable to member of Summit Materials, LLC	(68,596)	(54,756)
Comprehensive income (loss) income attributable to member of Summit Materials, LLC	(70,705)	(53,638)
Summit Materials, LLC | Guarantors
Condensed Consolidating Statements of Operations
Revenue	300,658	276,375
Cost of revenue (excluding items shown separately below)	238,127	211,992
General and administrative expenses	47,177	43,373
Depreciation, depletion, amortization and accretion	44,993	38,439
Operating income	(29,639)	(17,429)
Other (income) expense, net	(6,858)	235
Interest expense (income)	(2,203)	213
(Loss) income from operations before taxes	(20,578)	(17,877)
Income tax expense (benefit)	(3,454)	(2,180)
Net loss		(15,697)
Net income (loss) attributable to member of Summit Materials, LLC	(17,124)	(15,697)
Comprehensive income (loss) income attributable to member of Summit Materials, LLC	(18,119)	(16,109)
Summit Materials, LLC | Non Guarantors
Condensed Consolidating Statements of Operations
Revenue	15,181	9,410
Cost of revenue (excluding items shown separately below)	11,152	7,088
General and administrative expenses	3,003	1,318
Depreciation, depletion, amortization and accretion	1,255	651
Operating income	(229)	353
Other (income) expense, net	51	(35)
Interest expense (income)	1,191	864
(Loss) income from operations before taxes	(1,471)	(476)
Income tax expense (benefit)	(382)	2
Net loss		(478)
Net income (loss) attributable to member of Summit Materials, LLC	(1,089)	(478)
Comprehensive income (loss) income attributable to member of Summit Materials, LLC	$ 2,015	$ (1,184)

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Guarantor and Non-Guarantor Financial Information - Schedule of Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Apr. 01, 2017
Condensed Consolidating Statements of Operations
Net cash used in operating activities	$ (51,367)	$ (45,539)
Cash flow from investing activities:
Acquisitions, net of cash acquired	(113,993)	(112,333)
Purchase of property, plant and equipment	(49,505)	(51,056)
Proceeds from the sale of property, plant, and equipment	7,788	4,325
Other	1,500	974
Net cash used for investing activities	(154,210)	(158,090)
Cash flow from financing activities:
Capital issuance costs		(638)
Payments on long-term debt	(3,972)	(3,566)
Payments on acquisition-related liabilities	(8,962)	(16,414)
Financing costs		(699)
Distributions from partnership	(9)	(79)
Other	(1,820)	(731)
Net cash provided by financing activities	712	216,244
Impact of cash on foreign currency	(398)	100
Net (decrease) increase in cash	(205,263)	12,715
Cash and cash equivalents-beginning of period	383,556	143,392
Cash and cash equivalents-end of period	178,293	156,107
Summit Materials, LLC
Condensed Consolidating Statements of Operations
Net cash used in operating activities	(51,367)	(45,076)
Cash flow from investing activities:
Acquisitions, net of cash acquired	(113,993)	(112,333)
Purchase of property, plant and equipment	(49,505)	(51,056)
Proceeds from the sale of property, plant, and equipment	7,788	4,325
Other	1,500	974
Net cash used for investing activities	(154,210)	(158,090)
Cash flow from financing activities:
Proceeds from investment by member	15,475	238,629
Capital issuance costs		(638)
Payments on long-term debt	(3,972)	(3,566)
Payments on acquisition-related liabilities	(6,462)	(13,914)
Financing costs		(699)
Distributions from partnership	(2,509)	(2,579)
Other	(1,820)	(732)
Net cash provided by financing activities	712	216,501
Impact of cash on foreign currency	(398)	100
Net (decrease) increase in cash	(205,263)	13,435
Cash and cash equivalents-beginning of period	383,556	142,672
Cash and cash equivalents-end of period	178,293	156,107
Summit Materials, LLC | Eliminations
Cash flow from financing activities:
Loans received from and payments made on loans from other Summit Companies	2,683	(8,558)
Net cash provided by financing activities	2,683	(8,558)
Net (decrease) increase in cash	2,683	(8,558)
Cash and cash equivalents-beginning of period	(12,372)	(10,666)
Cash and cash equivalents-end of period	(9,689)	(19,224)
Summit Materials, LLC | Issuers
Condensed Consolidating Statements of Operations
Net cash used in operating activities	(38,210)	(42,891)
Cash flow from investing activities:
Purchase of property, plant and equipment	(1,664)	(1,115)
Net cash used for investing activities	(1,664)	(1,115)
Cash flow from financing activities:
Proceeds from investment by member	(73,661)	164,795
Capital issuance costs		(638)
Loans received from and payments made on loans from other Summit Companies	(83,090)	(92,904)
Payments on long-term debt	(1,588)	(1,625)
Financing costs		(699)
Distributions from partnership	(2,509)	(2,579)
Other	(827)	(319)
Net cash provided by financing activities	(161,675)	66,031
Net (decrease) increase in cash	(201,549)	22,025
Cash and cash equivalents-beginning of period	370,741	133,862
Cash and cash equivalents-end of period	169,192	155,887
Summit Materials, LLC | Guarantors
Condensed Consolidating Statements of Operations
Net cash used in operating activities	(15,050)	(4,035)
Cash flow from investing activities:
Acquisitions, net of cash acquired	(113,993)	(112,333)
Purchase of property, plant and equipment	(46,363)	(49,931)
Proceeds from the sale of property, plant, and equipment	7,668	4,325
Other	1,500	974
Net cash used for investing activities	(151,188)	(156,965)
Cash flow from financing activities:
Proceeds from investment by member	89,136	73,834
Loans received from and payments made on loans from other Summit Companies	82,599	101,616
Payments on long-term debt	(2,380)	(1,941)
Payments on acquisition-related liabilities	(6,462)	(13,914)
Other	(960)	(392)
Net cash provided by financing activities	161,933	159,203
Net (decrease) increase in cash	(4,305)	(1,797)
Cash and cash equivalents-beginning of period	10,254	4,820
Cash and cash equivalents-end of period	5,949	3,023
Summit Materials, LLC | Non Guarantors
Condensed Consolidating Statements of Operations
Net cash used in operating activities	1,893	1,850
Cash flow from investing activities:
Purchase of property, plant and equipment	(1,478)	(10)
Proceeds from the sale of property, plant, and equipment	120
Net cash used for investing activities	(1,358)	(10)
Cash flow from financing activities:
Loans received from and payments made on loans from other Summit Companies	(2,192)	(154)
Payments on long-term debt	(4)
Other	(33)	(21)
Net cash provided by financing activities	(2,229)	(154)
Impact of cash on foreign currency	(398)	100
Net (decrease) increase in cash	(2,092)	1,786
Cash and cash equivalents-beginning of period	14,933	14,656
Cash and cash equivalents-end of period	$ 12,841	$ 16,442