Exhibit 99.1
 
SUMMIT MATERIALS, LLC AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands) 
 October 1,January 1,
 20222022
 (unaudited)(audited)
Assets  
Current assets:  
Cash and cash equivalents$437,299 $380,961 
Accounts receivable, net363,956 287,226 
Costs and estimated earnings in excess of billings33,568 7,600 
Inventories202,783 180,760 
Other current assets20,132 11,827 
Current assets held for sale1,205 1,236 
Total current assets1,058,943 869,610 
Property, plant and equipment, less accumulated depreciation, depletion and amortization (October 1, 2022 - $1,241,028 and January 1, 2022 - $1,266,513)
1,768,394 1,842,908 
Goodwill1,132,764 1,164,750 
Intangible assets, less accumulated amortization (October 1, 2022 - $14,642 and January 1, 2022 - $15,269)
67,253 69,396 
Operating lease right-of-use assets31,057 30,150 
Other assets42,078 58,745 
Total assets$4,100,489 $4,035,559 
Liabilities and Members' Interest  
Current liabilities:  
Current portion of debt$6,354 $6,354 
Current portion of acquisition-related liabilities12,215 13,110 
Accounts payable166,592 128,843 
Accrued expenses124,643 148,136 
Current operating lease liabilities6,481 6,497 
Billings in excess of costs and estimated earnings7,143 7,401 
Total current liabilities323,428 310,341 
Long-term debt1,492,429 1,591,019 
Acquisition-related liabilities23,953 33,369 
Noncurrent operating lease liabilities29,945 28,880 
Other noncurrent liabilities179,508 187,006 
Total liabilities2,049,263 2,150,615 
Commitments and contingencies (see note 11)
Members' equity1,387,207 1,507,859 
Accumulated earnings694,158 393,111 
Accumulated other comprehensive loss(30,139)(16,026)
Total members' interest2,051,226 1,884,944 
Total liabilities and members' interest$4,100,489 $4,035,559 
 
See notes to unaudited consolidated financial statements.




SUMMIT MATERIALS, LLC AND SUBSIDIARIES
Unaudited Consolidated Statements of Operations
(In thousands)
 
 Three months endedNine months ended
 October 1, 2022October 2, 2021October 1, 2022October 2, 2021
Revenue:    
Product$587,138 $561,938 $1,485,746 $1,443,972 
Service98,871 100,321 224,676 235,298 
Net revenue686,009 662,259 1,710,422 1,679,270 
Delivery and subcontract revenue66,738 54,981 149,826 133,731 
Total revenue752,747 717,240 1,860,248 1,813,001 
Cost of revenue (excluding items shown separately below):
Product392,187 356,214 1,042,888 980,045 
Service76,011 75,741 179,807 187,570 
Net cost of revenue468,198 431,955 1,222,695 1,167,615 
Delivery and subcontract cost66,738 54,981 149,826 133,731 
Total cost of revenue534,936 486,936 1,372,521 1,301,346 
General and administrative expenses39,959 47,364 139,534 146,454 
Depreciation, depletion, amortization and accretion52,133 59,082 150,483 173,651 
Gain on sale of property, plant and equipment (1,343)(1,159)(6,293)(4,331)
Operating income127,062 125,017 204,003 195,881 
Interest expense21,980 24,134 62,728 72,474 
Loss on debt financings— 6,016 — 6,016 
(Gain) loss on sale of businesses(4,115)113 (174,373)(15,319)
Other income, net(3,283)(1,137)(4,956)(10,721)
Income from operations before taxes112,480 95,891 320,604 143,431 
Income tax expense7,147 7,016 19,557 12,531 
Net income attributable to Summit LLC$105,333 $88,875 $301,047 $130,900 
 
See notes to unaudited consolidated financial statements.




SUMMIT MATERIALS, LLC AND SUBSIDIARIES
Unaudited Consolidated Statements of Comprehensive Income
(In thousands)
 
 Three months endedNine months ended
 October 1, 2022October 2, 2021October 1, 2022October 2, 2021
Net income$105,333 $88,875 $301,047 $130,900 
Other comprehensive income (loss):    
Foreign currency translation adjustment(10,247)(4,076)(14,113)682 
Comprehensive income attributable to Summit LLC$95,086 $84,799 $286,934 $131,582 
 
See notes to unaudited consolidated financial statements.




SUMMIT MATERIALS, LLC AND SUBSIDIARIES
Unaudited Consolidated Statements of Cash Flows
(In thousands)
 
 Nine months ended
 October 1, 2022October 2, 2021
Cash flows from operating activities:  
Net income$301,047 $130,900 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, amortization and accretion160,162 177,779 
Share-based compensation expense15,058 14,875 
Net gain on asset and business disposals(180,240)(19,295)
Non-cash loss on debt financings— 2,116 
Change in deferred tax asset, net3,842 8,058 
Other(396)(586)
Decrease (increase) in operating assets, net of acquisitions and dispositions:
Accounts receivable, net(96,724)(78,108)
Inventories(53,762)(12,002)
Costs and estimated earnings in excess of billings(32,042)(26,969)
Other current assets(6,961)(2,556)
Other assets3,432 6,459 
(Decrease) increase in operating liabilities, net of acquisitions and dispositions:
Accounts payable43,899 33,756 
Accrued expenses(21,780)(15,598)
Billings in excess of costs and estimated earnings646 (2,907)
Other liabilities(4,601)(8,549)
Net cash provided by operating activities131,580 207,373 
Cash flows from investing activities:
Acquisitions, net of cash acquired(1,933)(7,263)
Purchases of property, plant and equipment(189,008)(170,070)
Proceeds from the sale of property, plant and equipment8,298 8,827 
Proceeds from sale of businesses373,790 103,649 
Other(2,214)(459)
Net cash provided by (used in) investing activities188,933 (65,316)
Cash flows from financing activities:
Capital (distributions to) contributions by member(100,781)32,416 
Payments on debt(113,769)(323,802)
Payments on acquisition-related liabilities(12,964)(7,255)
Distributions(34,155)(2,500)
Other(774)(951)
Net cash used in financing activities(262,443)(302,092)
Impact of foreign currency on cash(1,732)(63)
Net increase (decrease) in cash56,338 (160,098)
Cash and cash equivalents – beginning of period380,961 418,181 
Cash and cash equivalents – end of period$437,299 $258,083 
 
See notes to unaudited consolidated financial statements.




SUMMIT MATERIALS, LLC AND SUBSIDIARIES
Unaudited Consolidated Statements of Changes in Members' Interest
(In thousands)
 
 Total Members' Interest 
   Accumulated 
   otherTotal
 Members'Accumulatedcomprehensivemembers'
 equityearningslossinterest
Balance — January 1, 2022$1,507,859 $393,111 $(16,026)$1,884,944 
Net contributed capital(47,482)— — (47,482)
Net loss— (46,387)— (46,387)
Other comprehensive loss— — 1,744 1,744 
Share-based compensation5,422 — — 5,422 
Shares redeemed to settle taxes and other(1,180)— — (1,180)
Balance — April 2, 2022$1,464,619 $346,724 $(14,282)$1,797,061 
Net contributed capital96 — — 96 
Net income— 242,101 — 242,101 
Other comprehensive income— — (5,610)(5,610)
Distributions(25)— — (25)
Share-based compensation4,734 — — 4,734 
Shares redeemed to settle taxes and other991 — — 991 
Balance — July 2, 2022$1,470,415 $588,825 $(19,892)$2,039,348 
Net contributed capital(53,395)— — (53,395)
Net income— 105,333 — 105,333 
Other comprehensive loss— — (10,247)(10,247)
Distributions(34,130)— — (34,130)
Share-based compensation4,902 — — 4,902 
Shares redeemed to settle taxes and other(585)— — (585)
Balance — October 1, 2022$1,387,207 $694,158 $(30,139)$2,051,226 
Balance — January 2, 2021$1,459,211 $222,140 $(18,583)$1,662,768 
Net contributed capital15,920 — — 15,920 
Net loss— (27,790)— (27,790)
Other comprehensive loss— — 2,126 2,126 
Distributions(2,500)— — (2,500)
Share-based compensation5,363 — — 5,363 
Shares redeemed to settle taxes and other(416)— — (416)
Balance — April 3, 2021$1,477,578 $194,350 $(16,457)$1,655,471 
Net contributed capital15,846 — — 15,846 
Net income— 69,815 — 69,815 
Other comprehensive income— — 2,632 2,632 
Share-based compensation4,827 — — 4,827 
Shares redeemed to settle taxes and other— — — — 
Balance — July 3, 2021$1,498,251 $264,165 $(13,825)$1,748,591 
Net contributed capital650 — — 650 
Net income— 88,875 — 88,875 
Other comprehensive loss— — (4,076)(4,076)
Share-based compensation4,685 — — 4,685 
Shares redeemed to settle taxes and other(535)— — (535)
Balance — October 2, 2021$1,503,051 $353,040 $(17,901)$1,838,190 
 
See notes to unaudited consolidated financial statements




SUMMIT MATERIALS, LLC
 
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 
(Dollars in tables in thousands)

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, weather 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.

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 January 1, 2022. 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 October 1, 2022, the results of operations for the three and nine months ended October 1, 2022 and October 2, 2021 and cash flows for the nine months ended October 1, 2022 and October 2, 2021.
 
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 21 U.S. states and in British Columbia, Canada, with the most significant revenue generated in Texas, Utah, Kansas and Missouri. The Company’s accounts receivable consist primarily of amounts due from customers within these areas. Therefore, collection of these accounts is dependent on the economic conditions in the aforementioned states, as well as specific situations affecting individual customers. Credit granted within the Company’s trade areas has been granted to many customers, and management does not


believe that a significant concentration of credit exists with respect to any individual customer or group of customers. No single customer accounted for more than 10% of the Company’s total revenue in the three and nine months ended October 1, 2022 or October 2, 2021.
 
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 from the provision of services, which are primarily paving and related services.

Products: Revenue for product sales is recognized when evidence of an arrangement exists and when control passes, which generally is when the product is shipped.

Services: We earn revenue from the provision of services, which are primarily paving and related services, which are typically calculated using monthly progress based on the percentage of completion or a customer’s engineer review of progress.

The majority of our construction service contracts are completed within one year, but may occasionally extend beyond this time frame. The majority of our construction service contracts are for work that occurs mostly during the spring, summer and fall. 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.

The percentage of completion method of accounting involves the use of various estimating techniques to project costs at completion, and in some cases includes estimates of recoveries asserted against the customer for changes in specifications or other disputes.

Prior Period Reclassifications—We reclassified $1.2 million of other current assets to current assets held for sale for the year ended January 1, 2022 to be consistent with the current year presentation.

2. ACQUISITIONS, DISPOSITIONS, GOODWILL AND INTANGIBLES
 
The Company has completed numerous acquisitions since its formation, which have been financed through a combination of debt and equity funding and available cash. 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. Goodwill acquired during a business combination has an indefinite life and is not amortized.

The following table summarizes the Company’s acquisitions by region and period:

Nine months endedYear ended
October 1, 2022January 1, 2022
West— — 
East13
 
The purchase price allocation, primarily the valuation of property, plant and equipment for the acquisitions completed during the nine months ended October 1, 2022, as well as the acquisitions completed during 2021 that occurred after October 2, 2021, have not yet been finalized due to the recent timing of the acquisitions, status of the valuation of property, plant and equipment and finalization of related tax returns. The following table summarizes aggregated information regarding the fair values of the assets acquired and liabilities assumed as of the respective acquisition dates:



Nine months endedYear ended
October 1, 2022    January 1, 2022
Financial assets$— $— 
Inventories16 2,406 
Property, plant and equipment1,877 19,668 
Intangible assets— 702 
Other assets83 98 
Financial liabilities— (1,742)
Other long-term liabilities(43)(470)
Net assets acquired1,933 20,662 
Goodwill— — 
Purchase price1,933 20,662 
Acquisition-related liabilities— (1,149)
Other— — 
Net cash paid for acquisitions$1,933 $19,513 

Changes in the carrying amount of goodwill, by reportable segment, from January 1, 2022 to October 1, 2022 are summarized as follows:
 WestEastCement
Total  
Balance—January 1, 2022$571,509 $388,585 $204,656 $1,164,750 
Dispositions (1)— (27,084)— (27,084)
Foreign currency translation adjustments(4,902)— — (4,902)
Balance—October 1, 2022$566,607 $361,501 $204,656 $1,132,764 
_______________________________________________________________________
(1) Reflects goodwill derecognition from dispositions completed during the nine months ended October 1, 2022.

The Company’s intangible assets subject to amortization are primarily composed of operating permits, mineral lease agreements and reserve rights. Operating permits relate to permitting and zoning rights acquired outside of a business combination. The assets related to mineral 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 certain 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 or permits. The following table shows intangible assets by type and in total:
 
 October 1, 2022January 1, 2022
Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount		Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount
Operating permits$36,036 $(3,739)$32,297 $33,671 $(2,467)$31,204 
Mineral leases15,463 (6,529)8,934 19,927 (8,922)11,005 
Reserve rights25,586 (3,947)21,639 25,586 (3,329)22,257 
Other4,810 (427)4,383 5,481 (551)4,930 
Total intangible assets$81,895 $(14,642)$67,253 $84,665 $(15,269)$69,396 
 
Amortization expense totaled $0.8 million and $2.6 million for the three and nine months ended October 1, 2022, respectively, and $0.9 million and $2.8 million for the three and nine months ended October 2, 2021, respectively. The estimated amortization expense for the intangible assets for each of the five years subsequent to October 1, 2022 is as follows:
 
2022 (three months)$959 
20233,845 
20243,819 
20253,775 
20263,726 
20273,714 
Thereafter47,415 
Total$67,253 


In the nine months ended October 1, 2022, as part of the Company's strategy to rationalize assets, the Company sold three businesses in the East segment, resulting in cash proceeds of $373.8 million and a total gain on disposition of $174.4 million.

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 and nine months ended October 1, 2022 and October 2, 2021 is as follows:
 Three months endedNine months ended
 October 1, 2022October 2, 2021October 1, 2022October 2, 2021
Revenue by product*:    
Aggregates$163,524 $160,317 $448,397 $431,201 
Cement112,489 87,645 241,858 207,953 
Ready-mix concrete189,081 183,114 530,001 525,208 
Asphalt106,804 116,364 218,083 238,674 
Paving and related services120,327 112,671 249,547 257,966 
Other60,522 57,129 172,362 151,999 
Total revenue$752,747 $717,240 $1,860,248 $1,813,001 
*Revenue from liquid asphalt terminals is included in asphalt revenue.

Accounts receivable, net consisted of the following as of October 1, 2022 and January 1, 2022:
 
 October 1, 2022January 1, 2022
Trade accounts receivable$299,467 $230,714 
Construction contract receivables57,734 47,054 
Retention receivables11,633 13,094 
Receivables from related parties— 292 
Accounts receivable368,834 291,154 
Less: Allowance for doubtful accounts(4,878)(3,928)
Accounts receivable, net$363,956 $287,226 
 
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 October 1, 2022 and January 1, 2022:
October 1, 2022January 1, 2022
Aggregate stockpiles$139,330 $130,640 
Finished goods33,502 22,690 
Work in process10,245 8,277 
Raw materials19,706 19,153 
Total$202,783 $180,760 
 

5. ACCRUED EXPENSES
 
Accrued expenses consisted of the following as of October 1, 2022 and January 1, 2022:


October 1, 2022January 1, 2022
Interest$8,926 $22,762 
Payroll and benefits27,869 38,894 
Finance lease obligations9,697 17,624 
Insurance21,759 20,480 
Non-income taxes27,458 20,069 
Deferred asset purchase payments4,238 4,912 
Professional fees1,683 1,524 
Other (1)23,013 21,871 
Total$124,643 $148,136 
_______________________________________________________________________
(1) Consists primarily of current portion of asset retirement obligations and miscellaneous accruals.

6. DEBT
 
Debt consisted of the following as of October 1, 2022 and January 1, 2022:
October 1, 2022January 1, 2022
Term Loan, due 2024:  
$509.6 million and $610.0 million, net of $0.5 million and $0.7 million discount at October 1, 2022 and January 1, 2022, respectively
$509,068 $609,298 
6 1/2% Senior Notes, due 2027
300,000 300,000 
5 1/4% Senior Notes, due 2029
700,000 700,000 
Total1,509,068 1,609,298 
Current portion of long-term debt6,354 6,354 
Long-term debt$1,502,714 $1,602,944 
 
The contractual payments of long-term debt, including current maturities, for the five years subsequent to October 1, 2022, are as follows:
2022 (three months)$1,588 
20236,354 
2024501,618 
2025— 
2026— 
2027300,000 
Thereafter700,000 
Total1,509,560 
Less: Original issue net discount(492)
Less: Capitalized loan costs(10,285)
Total debt$1,498,783 
 
Senior Notes—On August 11, 2020, Summit LLC and Summit Finance (together, the “Issuers”) issued $700.0 million in aggregate principal amount of 5.250% senior notes due January 15, 2029 (the “2029 Notes”). The 2029 Notes were issued at 100.0% of their par value with proceeds of $690.4 million, net of related fees and expenses. The 2029 Notes were issued under an indenture dated August 11, 2020 (the "2020 Indenture"). The 2020 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 2020 Indenture also contains customary events of default. Interest on the 2029 Notes is payable semi-annually on January 15 and July 15 of each year commencing on January 15, 2021.

On March 15, 2019, the Issuers issued $300.0 million in aggregate principal amount of 6.500% senior notes due March 15, 2027 (the “2027 Notes”). The 2027 Notes were issued at 100.0% of their par value with proceeds of $296.3 million, net of related fees and expenses. The 2027 Notes were issued under an indenture dated March 25, 2019, the terms of which are generally consistent with the 2020 Indenture. Interest on the 2027 Notes is payable semi-annually on March 15 and September 15 of each year commencing on September 15, 2019.
 


As of October 1, 2022 and January 1, 2022, the Company was in compliance with all 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 $345.0 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 interest rate on the term loan is a variable rate, it was 5.12% as of October 1, 2022. During the nine months ended October 1, 2022, the Company repaid $95.6 million of its term loan under provisions related to divestitures of businesses. Should the Company consummate additional divestitures during the remainder of the year, additional prepayments of the term loan may be required. The unpaid principal balance is due in full on the maturity date, which is November 21, 2024.
 
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 2.00% 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. The maturity date with respect to revolving credit commitments under the revolving credit facility is February 25, 2024.
 
There were no outstanding borrowings under the revolving credit facility as of October 1, 2022 and January 1, 2022, with borrowing capacity of $324.9 million remaining as of October 1, 2022, which is net of $20.1 million of outstanding letters of credit. The outstanding letters of credit are renewed annually and support required bonding on construction projects, large leases, workers compensation claims 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 October 1, 2022 and January 1, 2022, 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 nine months ended October 1, 2022 and October 2, 2021:
 Deferred financing fees
Balance—January 1, 2022$13,049 
Amortization(2,028)
Balance—October 1, 2022$11,021 
  
  
Balance - January 2, 2021$18,367 
Amortization(2,510)
Write off of deferred financing fees(2,116)
Balance -October 2, 2021$13,741 
 
Other—On January 15, 2015, the Company’s wholly-owned subsidiary in British Columbia, Canada entered into an agreement with HSBC Bank Canada 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) $0.3 million CAD revolving credit commitment to provide guarantees on behalf of that subsidiary. There were no amounts outstanding under this agreement as of October 1, 2022 or January 1, 2022, which may be terminated upon demand.
 
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) basis differences in assets divested, (3) state income taxes and the effect of graduated tax rates and


(4) 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.
 
No material interest or penalties were recognized in income tax expense during the three and nine months ended October 1, 2022 and October 2, 2021.

8. MEMBERS’ INTEREST
 
Accumulated other comprehensive income (loss) —The changes in each component of accumulated other comprehensive income (loss) consisted of the following:
 
   Accumulated
  Foreign currencyother
 Change intranslationcomprehensive
 retirement plansadjustments(loss) income
Balance — January 1, 2022$(7,243)$(8,783)$(16,026)
Foreign currency translation adjustment— (14,113)(14,113)
Balance — October 1, 2022$(7,243)$(22,896)$(30,139)
Balance — January 2, 2021$(8,546)$(10,037)$(18,583)
Foreign currency translation adjustment— 682 682 
Balance — October 2, 2021$(8,546)$(9,355)$(17,901)
 
9. SUPPLEMENTAL CASH FLOW INFORMATION
 
Supplemental cash flow information is as follows:
 Nine months ended
October 1, 2022October 2, 2021
Cash payments:  
Interest$70,184 $77,890 
Payments for income taxes, net15,888 6,694 
Operating cash payments on operating leases7,112 7,894 
Operating cash payments on finance leases890 1,722 
Finance cash payments on finance leases13,465 13,739 
Non cash investing and financing activities:
Accrued liabilities for purchases of property, plant and equipment$16,778 $12,188 
Right of use assets obtained in exchange for operating lease obligations13,302 6,476 
Right of use assets obtained in exchange for finance leases obligations258 600 
 
10. LEASES

We lease construction and office equipment, distribution facilities and office space. Leases with an initial term of 12 months or less, including month to month leases, are not recorded on the balance sheet. Lease expense for short-term leases is recognized on a straight line basis over the lease term. For lease agreements we have entered into or reassessed, we combine lease and nonlease components. While we also own mineral leases for mining operations, those leases are outside the scope of Accounting Standards Update No. 2016-2, Leases (Topic 842). Assets acquired under finance leases are included in property, plant and equipment.

Many of our leases include options to purchase the leased equipment. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease expense were as follows:


Three months endedNine months ended
October 1, 2022October 2, 2021October 1, 2022October 2, 2021
Operating lease cost$2,398 $1,755 $7,181$5,175 
Variable lease cost70 90 225263
Short-term lease cost11,916 12,373 31,09730,517
Financing lease cost:
Amortization of right-of-use assets1,235 2,168 4,5987,835
Interest on lease liabilities239 475 8791,689
Total lease cost$15,858 $16,861 $43,980$45,479
October 1, 2022January 1, 2022
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets$31,057$30,150
Current operating lease liabilities$6,481$6,497
Noncurrent operating lease liabilities29,94528,880
Total operating lease liabilities$36,426$35,377
Finance leases:
Property and equipment, gross$52,558$68,982
Less accumulated depreciation(29,204)(31,404)
Property and equipment, net$23,354$37,578
Current finance lease liabilities$9,697$17,624
Long-term finance lease liabilities8,24614,982
Total finance lease liabilities$17,943$32,606
Weighted average remaining lease term (years):
Operating leases9.49.7
Finance lease2.62.3
Weighted average discount rate:
Operating leases4.4 %4.4 %
Finance leases5.1 %5.2 %
Maturities of lease liabilities, as of October 1, 2022, were as follows:
Operating LeasesFinance Leases
2022 (three months)$1,967$3,870
20237,5717,491
20246,3272,936
20254,5702,415
20263,459980
20272,705750
Thereafter18,7111,083
Total lease payments45,31019,525
Less imputed interest(8,884)(1,582)
Present value of lease payments$36,426$17,943

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 current pending or threatened claims and


litigation will not have a material effect on the Company’s consolidated financial position, results of operations or liquidity. The Company records legal fees as incurred.

In March 2018, we were notified of an investigation by the Canadian Competition Bureau (the “CCB”) into pricing practices by certain asphalt paving contractors in British Columbia, including Winvan Paving, Ltd. (“Winvan”). We believe the investigation is focused on time periods prior to our April 2017 acquisition of Winvan and we are cooperating with the CCB. Although we currently do not believe this matter will have a material adverse effect on our business, financial condition or results of operations, we are currently not able to predict the ultimate outcome or cost of the investigation.
 
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 October 1, 2022 and January 1, 2022, $36.7 million and $37.7 million, respectively, were included in other noncurrent liabilities on the consolidated balance sheets and $4.1 million and $7.4 million, respectively, were included in accrued expenses for future reclamation costs. The total undiscounted anticipated costs for site reclamation as of October 1, 2022 and January 1, 2022 were $109.0 million and $112.4 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 fair value of contingent consideration as of October 1, 2022 and January 1, 2022 was: 
October 1, 2022January 1, 2022
Current portion of acquisition-related liabilities and Accrued expenses:  
Contingent consideration$133 $129 
Acquisition-related liabilities and Other noncurrent liabilities:
Contingent consideration$1,208 $1,239 
 
The fair value of contingent consideration was based on unobservable, or Level 3, inputs, including projected probability-weighted cash payments and a 9.5% 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. There were no material valuation adjustments to contingent consideration as of October 1, 2022 and October 2, 2021.

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 October 1, 2022 and January 1, 2022 was:


 October 1, 2022January 1, 2022
 Fair ValueCarrying ValueFair ValueCarrying Value
Level 1    
Long-term debt(1)$1,402,577 $1,509,068 $1,653,085 $1,609,298 
Level 3    
Current portion of deferred consideration and noncompete obligations(2)12,082 12,082 12,981 12,981 
Long term portion of deferred consideration and noncompete obligations(3)22,745 22,745 32,130 32,130 
(1)$6.4 million was included in current portion of debt as of October 1, 2022 and January 1, 2022.
(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 operations before interest, taxes, depreciation, depletion, amortization, accretion and share-based compensation, as well as various other non-recurring, non-cash amounts. Beginning with the first quarter of 2021, the Company no longer adjusts for transaction costs, as those costs are recurring cash payments, and are included in general and administrative expenses.
 
The West and East segments have several 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 October 1, 2022 and January 1, 2022 and for the three and nine months ended October 1, 2022 and October 2, 2021:
 Three months endedNine months ended
 October 1, 2022October 2, 2021October 1, 2022October 2, 2021
Revenue*:    
West$439,411 $369,250 $1,075,393 $958,351 
East193,421 255,490 525,064 635,659 
Cement119,915 92,500 259,791 218,991 
Total revenue$752,747 $717,240 $1,860,248 $1,813,001 
*Intercompany sales are immaterial and the presentation above only reflects sales to external customers.
 


 Three months endedNine months ended
 October 1, 2022October 2, 2021October 1, 2022October 2, 2021
Income from operations before taxes$112,480 $95,891 $320,604 $143,431 
Interest expense21,980 24,134 62,728 72,474 
Depreciation, depletion and amortization51,439 58,381 148,373 171,474 
Accretion694 701 2,110 2,177 
Loss on debt financings— 6,016 — 6,016 
(Gain) loss on sale of businesses(4,115)113 (174,373)(15,319)
Non-cash compensation4,902 4,685 15,058 14,875 
Other(2,492)363 (2,315)682 
Total Adjusted EBITDA$184,888 $190,284 $372,185 $395,810 
Total Adjusted EBITDA by Segment:
West$98,281 $92,303 $215,617 $211,722 
East44,119 69,084 98,949 138,113 
Cement46,597 40,360 84,019 82,281 
Corporate and other(4,109)(11,463)(26,400)(36,306)
Total Adjusted EBITDA$184,888 $190,284 $372,185 $395,810 
 
 Nine months ended
October 1, 2022October 2, 2021
Purchases of property, plant and equipment  
West$85,462 $85,137 
East65,116 69,469 
Cement30,503 14,852 
Total reportable segments181,081 169,458 
Corporate and other7,927 612 
Total purchases of property, plant and equipment$189,008 $170,070 
 
 Three months endedNine months ended
 October 1, 2022October 2, 2021October 1, 2022October 2, 2021
Depreciation, depletion, amortization and accretion:    
West$24,908 $24,796 $71,495 $75,287 
East15,445 22,809 48,655 66,306 
Cement10,959 10,409 27,993 28,785 
Total reportable segments51,312 58,014 148,143 170,378 
Corporate and other821 1,068 2,340 3,273 
Total depreciation, depletion, amortization and accretion$52,133 $59,082 $150,483 $173,651 

October 1, 2022January 1, 2022
Total assets:  
West$1,625,846 $1,512,298 
East1,136,239 1,292,638 
Cement893,471 844,086 
Total reportable segments3,655,556 3,649,022 
Corporate and other444,933 386,537 
Total$4,100,489 $4,035,559 
 


14. 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 Guarantors in the form of dividends or loans. Additionally, there are no significant restrictions on a Guarantor’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 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 Guarantors or Non-Guarantors operated as independent entities.



Condensed Consolidating Balance Sheets
October 1, 2022
     
  Non-  
 Issuers
Guarantors 
Guarantors 
Eliminations 
Consolidated
Assets     
Current assets:     
Cash and cash equivalents$417,784 $1,800 $22,651 $(4,936)$437,299 
Accounts receivable, net884 335,650 27,517 (95)363,956 
Intercompany receivables338,861 1,824,615 — (2,163,476)— 
Cost and estimated earnings in excess of billings— 30,929 2,639 — 33,568 
Inventories— 196,350 6,433 — 202,783 
Other current assets4,969 15,215 1,153 — 21,337 
Total current assets762,498 2,404,559 60,393 (2,168,507)1,058,943 
Property, plant and equipment, net15,610 1,674,139 78,645 — 1,768,394 
Goodwill— 1,076,936 55,828 — 1,132,764 
Intangible assets, net— 62,868 4,385 — 67,253 
Operating lease right-of-use assets4,902 21,124 5,031 — 31,057 
Other assets4,467,294 198,135 875 (4,624,226)42,078 
Total assets$5,250,304 $5,437,761 $205,157 $(6,792,733)$4,100,489 
Liabilities and Members' Interest
Current liabilities:
Current portion of debt$6,354 $— $— $— $6,354 
Current portion of acquisition-related liabilities— 12,215 — — 12,215 
Accounts payable2,462 151,916 12,309 (95)166,592 
Accrued expenses36,384 90,110 3,085 (4,936)124,643 
Current operating lease liabilities834 4,892 755 — 6,481 
Intercompany payables1,646,848 514,590 2,038 (2,163,476)— 
Billings in excess of costs and estimated earnings— 6,314 829 — 7,143 
Total current liabilities1,692,882 780,037 19,016 (2,168,507)323,428 
Long-term debt1,492,429 — — — 1,492,429 
Acquisition-related liabilities— 23,953 — — 23,953 
Noncurrent operating lease liabilities9,013 16,778 4,154 — 29,945 
Other noncurrent liabilities4,754 221,041 118,134 (164,421)179,508 
Total liabilities3,199,078 1,041,809 141,304 (2,332,928)2,049,263 
Total members' interest2,051,226 4,395,952 63,853 (4,459,805)2,051,226 
Total liabilities and members' interest$5,250,304 $5,437,761 $205,157 $(6,792,733)$4,100,489 
        


Condensed Consolidating Balance Sheets
January 1, 2022
 
     
  Non-  
 Issuers
Guarantors 
Guarantors 
Eliminations 
Consolidated
Assets     
Current assets:     
Cash and cash equivalents$365,044 $2,264 $18,337 $(4,684)$380,961 
Accounts receivable, net94 264,888 22,185 59 287,226 
Intercompany receivables366,619 1,746,909 — (2,113,528)— 
Cost and estimated earnings in excess of billings— 6,942 658 — 7,600 
Inventories— 175,211 5,549 — 180,760 
Other current assets3,036 8,920 1,107 — 13,063 
Total current assets734,793 2,205,134 47,836 (2,118,153)869,610 
Property, plant and equipment, net10,013 1,742,721 90,174 — 1,842,908 
Goodwill— 1,104,019 60,731 — 1,164,750 
Intangible assets, net— 64,466 4,930 — 69,396 
Operating lease right-of-use assets5,612 19,693 4,845 — 30,150 
Other assets4,417,039 220,500 576 (4,579,370)58,745 
Total assets$5,167,457 $5,356,533 $209,092 $(6,697,523)$4,035,559 
Liabilities and Members' Interest
Current liabilities:
Current portion of debt$6,354 $— $— $— $6,354 
Current portion of acquisition-related liabilities— 13,110 — — 13,110 
Accounts payable6,284 114,405 8,095 59 128,843 
Accrued expenses55,440 94,858 2,522 (4,684)148,136 
Current operating lease liabilities780 5,053 664 — 6,497 
Intercompany payables1,607,816 502,334 3,378 (2,113,528)— 
Billings in excess of costs and estimated earnings— 6,960 441 — 7,401 
Total current liabilities1,676,674 736,720 15,100 (2,118,153)310,341 
Long-term debt1,591,019 — — — 1,591,019 
Acquisition-related liabilities— 33,369 — — 33,369 
Noncurrent operating lease liabilities9,647 15,101 4,132 — 28,880 
Other noncurrent liabilities5,173 227,348 118,906 (164,421)187,006 
Total liabilities3,282,513 1,012,538 138,138 (2,282,574)2,150,615 
Total members' interest1,884,944 4,343,995 70,954 (4,414,949)1,884,944 
Total liabilities and members' interest$5,167,457 $5,356,533 $209,092 $(6,697,523)$4,035,559 



Condensed Consolidating Statements of Operations
For the three months ended October 1, 2022

Non-
IssuersGuarantors Guarantors EliminationsConsolidated 
Revenue$— $718,510 $37,112 $(2,875)$752,747 
Cost of revenue (excluding items shown separately below)— 511,848 25,963 (2,875)534,936 
General and administrative expenses9,138 27,717 1,761 — 38,616 
Depreciation, depletion, amortization and accretion822 48,442 2,869 — 52,133 
Operating (loss) income(9,960)130,503 6,519 — 127,062 
Other income, net(147,353)(399)(106)144,575 (3,283)
Interest expense (income)35,536 (14,926)1,370 — 21,980 
(Gain) loss on sale of business(5,120)1,005 — — (4,115)
Income from operation before taxes106,977 144,823 5,255 (144,575)112,480 
Income tax expense1,644 4,119 1,384 — 7,147 
Net income attributable to Summit LLC$105,333 $140,704 $3,871 $(144,575)$105,333 
Comprehensive income attributable to member of Summit Materials, LLC$95,086 $140,704 $14,118 $(154,822)$95,086 

Condensed Consolidating Statements of Operations
For the nine months ended October 1, 2022
 
     
  Non-  
 Issuers
Guarantors 
Guarantors 
Eliminations
Consolidated 
Revenue$— $1,770,642 $97,972 $(8,366)$1,860,248 
Cost of revenue (excluding items shown separately below)— 1,310,495 70,392 (8,366)1,372,521 
General and administrative expenses42,360 85,816 5,065 — 133,241 
Depreciation, depletion, amortization and accretion2,341 139,280 8,862 — 150,483 
Operating (loss) income(44,701)235,051 13,653 — 204,003 
Other income, net(320,069)(1,384)(17)316,514 (4,956)
Interest expense (income)103,017 (44,399)4,110 — 62,728 
Gain on sale of business(131,721)(42,652)— — (174,373)
Income from operation before taxes304,072 323,486 9,560 (316,514)320,604 
Income tax expense3,025 13,985 2,547 — 19,557 
Net income attributable to Summit LLC$301,047 $309,501 $7,013 $(316,514)$301,047 
Comprehensive income attributable to member of Summit Materials, LLC$286,934 $309,501 $21,126 $(330,627)$286,934 




Condensed Consolidating Statements of Operations
For the three months ended October 2, 2021

Non-
IssuersGuarantors GuarantorsEliminationsConsolidated
Revenue$— $686,736 $34,655 $(4,151)$717,240 
Cost of revenue (excluding items shown separately below)— 465,966 25,121 (4,151)486,936 
General and administrative expenses16,372 28,373 1,460 — 46,205 
Depreciation, depletion, amortization and accretion1,068 55,081 2,933 — 59,082 
Operating (loss) income(17,440)137,316 5,141 — 125,017 
Other (income) loss, net(141,753)(1,044)130 147,546 4,879 
Interest expense (income)35,033 (12,276)1,377 — 24,134 
Loss on sale of business— 113 — — 113 
Income from operation before taxes89,280 150,523 3,634 (147,546)95,891 
Income tax expense405 5,634 977 — 7,016 
Net income attributable to Summit LLC$88,875 $144,889 $2,657 $(147,546)$88,875 
Comprehensive income attributable to member of Summit Materials, LLC$84,799 $144,889 $6,733 $(151,622)$84,799 

Condensed Consolidating Statements of Operations
For the nine months ended October 2, 2021
 
     
  Non-  
 Issuers
Guarantors 
GuarantorsEliminationsConsolidated
Revenue$— $1,735,193 $87,982 $(10,174)$1,813,001 
Cost of revenue (excluding items shown separately below)— 1,247,002 64,518 (10,174)1,301,346 
General and administrative expenses51,555 87,968 2,600 — 142,123 
Depreciation, depletion, amortization and accretion3,273 161,783 8,595 — 173,651 
Operating (loss) income(54,828)238,440 12,269 — 195,881 
Other income, net(290,566)(9,784)(563)296,208 (4,705)
Interest expense (income)102,981 (34,635)4,128 — 72,474 
Gain on sale of business— (15,319)— — (15,319)
Income from operation before taxes132,757 298,178 8,704 (296,208)143,431 
Income tax expense1,857 8,314 2,360 — 12,531 
Net income attributable to Summit LLC$130,900 $289,864 $6,344 $(296,208)$130,900 
Comprehensive income attributable to member of Summit Materials, LLC$131,582 $289,864 $5,662 $(295,526)$131,582 



Condensed Consolidating Statements of Cash Flows
For the nine months ended October 1, 2022
 
     
  Non-  
 Issuers
Guarantors 
GuarantorsEliminationsConsolidated
Net cash (used in) provided by operating activities$(109,265)$225,563 $15,282 $— $131,580 
Cash flow from investing activities:
Acquisitions, net of cash acquired— (1,933)— — (1,933)
Purchase of property, plant and equipment(7,927)(177,028)(4,053)— (189,008)
Proceeds from the sale of property, plant, and equipment— 8,033 265 — 8,298 
Proceeds from the sale of a business5,924 367,866 — — 373,790 
Other— (2,214)— — (2,214)
Net cash (used for) provided by investing activities(2,003)194,724 (3,788)— 188,933 
Cash flow from financing activities:
Capital distributions to member(102,713)1,932 — — (100,781)
Loans received from and payments made on loans from other Summit Companies402,030 (396,330)(5,448)(252)— 
Payments on long-term debt(100,400)(13,369)— — (113,769)
Payments on acquisition-related liabilities— (12,964)— — (12,964)
Distributions from partnership(34,155)— — — (34,155)
Other(754)(20)— — (774)
Net cash provided by (used in) financing activities164,008 (420,751)(5,448)(252)(262,443)
Impact of cash on foreign currency— — (1,732)— (1,732)
Net increase (decrease) in cash52,740 (464)4,314 (252)56,338 
Cash — Beginning of period365,044 2,264 18,337 (4,684)380,961 
Cash — End of period$417,784 $1,800 $22,651 $(4,936)$437,299 

























Condensed Consolidating Statements of Cash Flows
For the nine months ended October 2, 2021
 
     
  Non-  
 Issuers
Guarantors 
GuarantorsEliminationsConsolidated
Net cash (used in) provided by operating activities$(121,357)$304,403 $24,327 $— $207,373 
Cash flow from investing activities:
Acquisitions, net of cash acquired— (7,263)— — (7,263)
Purchase of property, plant and equipment(612)(161,224)(8,234)— (170,070)
Proceeds from the sale of property, plant, and equipment— 8,168 659 — 8,827 
Proceeds from the sale of a business— 103,649 — — 103,649 
Other— (459)— — (459)
Net cash used for investing activities(612)(57,129)(7,575)— (65,316)
Cash flow from financing activities:
Proceeds from investment by member29,650 2,766 — — 32,416 
Loans received from and payments made on loans from other Summit Companies240,746 (232,861)(8,846)961 — 
Payments on long-term debt(304,765)(18,393)(644)— (323,802)
Payments on acquisition-related liabilities— (7,255)— — (7,255)
Distributions from partnership(2,500)— — — (2,500)
Other(951)— — — (951)
Net cash used in financing activities(37,820)(255,743)(9,490)961 (302,092)
Impact of cash on foreign currency— — (63)— (63)
Net (decrease) increase in cash(159,789)(8,469)7,199 961 (160,098)
Cash — Beginning of period401,074 10,287 10,461 (3,641)418,181 
Cash — End of period$241,285 $1,818 $17,660 $(2,680)$258,083