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 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

September 30, 2017


			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	283,331	$	2,199	$	16,124	$	(14,572)	$	287,082
Accounts receivable, net		—		275,490		20,131		(130)		295,491
Intercompany receivables		592,870		363,129		—		(955,999)		—
Cost and estimated earnings in excess of billings		—		36,998		2,318		—		39,316
Inventories		—		176,310		5,474		—		181,784
Other current assets		1,927		9,006		736		—		11,669
Total current assets		878,128		863,132		44,783		(970,701)		815,342
Property, plant and equipment, net		8,938		1,572,349		38,836		—		1,620,123
Goodwill		—		951,482		61,289		—		1,012,771
Intangible assets, net		—		16,995		—		—		16,995
Other assets		3,756,415		166,889		2,246		(3,875,482)		50,068
Total assets	$	4,643,481	$	3,570,847	$	147,154	$	(4,846,183)	$	3,515,299
Liabilities and Member’s Interest
Current liabilities:
Current portion of debt	$	6,500	$	—	$	—	$	—	$	6,500
Current portion of acquisition-related liabilities		—		22,653		—		—		22,653
Accounts payable		2,295		120,086		12,067		(130)		134,318
Accrued expenses		44,464		97,815		2,795		(14,572)		130,502
Intercompany payables		571,155		381,373		3,471		(955,999)		—
Billings in excess of costs and estimated earnings		—		16,740		1,303		—		18,043
Total current liabilities		624,414		638,667		19,636		(970,701)		312,016
Long-term debt		1,807,064		—		—		—		1,807,064
Acquisition-related liabilities		—		30,644		—		—		30,644
Other noncurrent liabilities		3,344		224,157		75,364		(171,318)		131,547
Total liabilities		2,434,822		893,468		95,000		(1,142,019)		2,281,271
Total member's interest		2,208,659		2,677,379		52,154		(3,704,164)		1,234,028
Total liabilities and member’s interest	$	4,643,481	$	3,570,847	$	147,154	$	(4,846,183)	$	3,515,299

Condensed Consolidating Balance Sheets

December 31, 2016


			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	133,862	$	4,820	$	14,656	$	(10,666)	$	142,672
Accounts receivable, net		—		155,389		7,090		(102)		162,377
Intercompany receivables		521,658		321,776		—		(843,434)		—
Cost and estimated earnings in excess of billings		—		6,830		620		—		7,450
Inventories		—		153,374		4,305		—		157,679
Other current assets		1,259		11,012		529		—		12,800
Total current assets		656,779		653,201		27,200		(854,202)		482,978
Property, plant and equipment, net		7,033		1,418,902		20,517		—		1,446,452
Goodwill		—		735,490		46,722		—		782,212
Intangible assets, net		—		17,989		—		—		17,989
Other assets		3,202,706		125,270		1,946		(3,283,133)		46,789
Total assets	$	3,866,518	$	2,950,852	$	96,385	$	(4,137,335)	$	2,776,420
Liabilities and Member’s Interest
Current liabilities:
Current portion of debt	$	6,500	$	—	$	—	$	—	$	6,500
Current portion of acquisition-related liabilities		1,000		20,663		—		—		21,663
Accounts payable		1,497		76,886		3,329		(102)		81,610
Accrued expenses		46,460		73,807		872		(10,666)		110,473
Intercompany payables		509,503		327,405		6,526		(843,434)		—
Billings in excess of costs and estimated earnings		—		15,242		214		—		15,456
Total current liabilities		564,960		514,003		10,941		(854,202)		235,702
Long-term debt		1,514,456		—		—		—		1,514,456
Acquisition-related liabilities		—		25,161		—		—		25,161
Other noncurrent liabilities		2,395		231,199		56,356		(165,242)		124,708
Total liabilities		2,081,811		770,363		67,297		(1,019,444)		1,900,027
Total member's interest		1,784,707		2,180,489		29,088		(3,117,891)		876,393
Total liabilities and member’s interest	$	3,866,518	$	2,950,852	$	96,385	$	(4,137,335)	$	2,776,420

Condensed Consolidating Statements of Operations

For the three months ended September 30, 2017


			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated

Revenue	$	—		606,046		29,608		(1,473)	$	634,181
Cost of revenue (excluding items shown separately below)		—		389,716		21,302		(1,473)		409,545
General and administrative expenses		15,011		44,373		2,372		—		61,756
Depreciation, depletion, amortization and accretion		619		47,032		1,318		—		48,969
Operating (loss) income		(15,630)		124,925		4,616		—		113,911
Other income, net		(126,386)		(1,569)		(245)		125,484		(2,716)
Interest expense (income)		28,182		(670)		1,196		—		28,708
Income from operations before taxes		82,574		127,164		3,665		(125,484)		87,919
Income tax expense		—		4,397		889		—		5,286
Net income		82,574		122,767		2,776		(125,484)		82,633
Net income attributable to noncontrolling interest		—		—		—		59		59
Net income attributable to member of Summit Materials, LLC	$	82,574	$	122,767	$	2,776	$	(125,543)	$	82,574
Comprehensive income (loss) attributable to member of Summit Materials, LLC	$	87,160	$	122,555	$	(1,598)	$	(120,957)	$	87,160

Condensed Consolidating Statements of Operations

For the three months ended October 1, 2016


			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated

Revenue	$	—	$	518,218	$	13,182	$	(1,963)	$	529,437
Cost of revenue (excluding items shown separately below)		—		328,536		9,247		(1,963)		335,820
General and administrative expenses		25,877		38,655		1,248		—		65,780
Depreciation, depletion, amortization and accretion		571		37,819		1,037		—		39,427
Operating (loss) income		(26,448)		113,208		1,650		—		88,410
Other (income) expense, net		(109,291)		411		(54)		109,656		722
Interest expense		21,575		2,576		868		—		25,019
Income from operations before taxes		61,268		110,221		836		(109,656)		62,669
Income tax expense		—		1,212		97		—		1,309
Net income		61,268		109,009		739		(109,656)		61,360
Net income attributable to noncontrolling interest		—		—		—		92		92
Net income attributable to member of Summit Materials, LLC	$	61,268	$	109,009	$	739	$	(109,748)	$	61,268
Comprehensive income attributable to member of Summit Materials, LLC	$	60,017	$	108,949	$	2,050	$	(110,999)	$	60,017

Condensed Consolidating Statements of Operations

For the nine months ended September 30, 2017


			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated

Revenue	$	—		1,384,956		62,230		(4,635)	$	1,442,551
Cost of revenue (excluding items shown separately below)		—		922,024		45,632		(4,635)		963,021
General and administrative expenses		44,718		131,770		5,715		—		182,203
Depreciation, depletion, amortization and accretion		1,940		128,851		2,965		—		133,756
Operating (loss) income		(46,658)		202,311		7,918		—		163,571
Other income, net		(204,877)		(1,561)		(500)		203,165		(3,773)
Interest expense (income)		76,586		(533)		3,142		—		79,195
Income from operations before taxes		81,633		204,405		5,276		(203,165)		88,149
Income tax expense		—		5,119		1,424		—		6,543
Net income		81,633		199,286		3,852		(203,165)		81,606
Net loss attributable to noncontrolling interest		—		—		—		(27)		(27)
Net income attributable to member of Summit Materials, LLC	$	81,633	$	199,286	$	3,852	$	(203,138)	$	81,633
Comprehensive income (loss) attributable to member of Summit Materials, LLC	$	90,928	$	198,489	$	(4,646)	$	(193,843)	$	90,928

Condensed Consolidating Statements of Operations

For the nine months ended October 1, 2016


			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated

Revenue	$	—	$	1,174,695	$	34,364	$	(5,969)	$	1,203,090
Cost of revenue (excluding items shown separately below)		—		780,031		23,686		(5,969)		797,748
General and administrative expenses		77,603		108,403		4,240		—		190,246
Depreciation, depletion, amortization and accretion		1,848		104,117		3,230		—		109,195
Operating (loss) income		(79,451)		182,144		3,208		—		105,901
Other (income) expense, net		(178,290)		1,605		(363)		178,301		1,253
Interest expense		58,020		11,058		2,590		—		71,668
Income from operations before taxes		40,819		169,481		981		(178,301)		32,980
Income (benefit) tax benefit		—		(8,071)		175		—		(7,896)
Net income		40,819		177,552		806		(178,301)		40,876
Net income attributable to noncontrolling interest		—		—		—		57		57
Net income attributable to member of Summit Materials, LLC	$	40,819	$	177,552	$	806	$	(178,358)	$	40,819
Comprehensive income (loss) attributable to member of Summit Materials, LLC	$	41,553	$	180,784	$	(3,160)	$	(177,624)	$	41,553

Condensed Consolidating Statements of Cash Flows

For the nine months ended September 30, 2017


			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated

Net cash (used in) provided by operating activities	$	(92,840)	$	198,890	$	26,845	$	—	$	132,895
Cash flow from investing activities:
Acquisitions, net of cash acquired		(24,538)		(321,340)		(25,601)		—		(371,479)
Purchase of property, plant and equipment		(4,994)		(137,505)		(4,979)		—		(147,478)
Proceeds from the sale of property, plant, and equipment		—		13,231		59		—		13,290
Other		—		182		—		—		182
Net cash used for investing activities		(29,532)		(445,432)		(30,521)		—		(505,485)
Cash flow from financing activities:
Proceeds from investment by member		(3,409)		249,359		10,717		—		256,667
Capital issuance costs		(627)		—		—		—		(627)
Net proceeds from debt issuance		302,000		—		—		—		302,000
Loans received from and payments made on loans from other Summit Companies		(10,787)		20,975		(6,282)		(3,906)		—
Payments on long-term debt		(6,874)		(6,009)		(4)		—		(12,887)
Payments on acquisition-related liabilities		—		(20,116)		—		—		(20,116)
Financing costs		(5,317)		—		—		—		(5,317)
Distributions from partnership		(2,609)		—		—		—		(2,609)
Other		(536)		(288)		(21)		—		(845)
Net cash provided by financing activities		271,841		243,921		4,410		(3,906)		516,266
Impact of cash on foreign currency		—		—		734		—		734
Net increase (decrease) in cash		149,469		(2,621)		1,468		(3,906)		144,410
Cash — Beginning of period		133,862		4,820		14,656		(10,666)		142,672
Cash — End of period	$	283,331	$	2,199	$	16,124	$	(14,572)	$	287,082

Condensed Consolidating Statements of Cash Flows

For the nine months ended October 1, 2016


			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated

Net cash (used in) provided by operating activities	$	(135,318)	$	219,647	$	194	$	—	$	84,523
Cash flow from investing activities:
Acquisitions, net of cash acquired		(42,844)		(288,619)		—		—		(331,463)
Purchase of property, plant and equipment		(3,769)		(117,760)		(416)		—		(121,945)
Proceeds from the sale of property, plant, and equipment		—		16,129		93		—		16,222
Other		—		1,500		—		—		1,500
Net cash used for investing activities		(46,613)		(388,750)		(323)		—		(435,686)
Cash flow from financing activities:
Proceeds from investment by member		(476,386)		476,499		—		—		113
Capital issuance costs		(136)		—		—		—		(136)
Net proceeds from debt issuance		354,000		—		—		—		354,000
Loans received from and payments made on loans from other Summit Companies		281,013		(275,274)		309		(6,048)		—
Payments on long-term debt		(108,875)		(5,379)		—		—		(114,254)
Payments on acquisition-related liabilities		(400)		(26,020)		—		—		(26,420)
Financing costs		(5,675)		—		—		—		(5,675)
Distributions from partnership		(27,993)		—		—		—		(27,993)
Other		—		(8)		—		—		(8)
Net cash provided by financing activities		15,548		169,818		309		(6,048)		179,627
Impact of cash on foreign currency		—		—		330		—		330
Net (decrease) increase in cash		(166,383)		715		510		(6,048)		(171,206)
Cash — Beginning of period		180,712		4,068		12,208		(11,600)		185,388
Cash — End of period	$	14,329	$	4,783	$	12,718	$	(17,648)	$	14,182