Segment Information

12 Months Ended

Dec. 30, 2017

Segment Information

(20) Segment Information

The Company has three operating segments: West; East; and Cement, which are its reporting segments. These segments are consistent with the Company’s management reporting structure. The operating results of each segment are regularly reviewed and evaluated by the Chief Executive Officer, the Company’s Chief Operating Decision Maker (“CODM”). The CODM primarily evaluates the performance of its segments and allocates resources to them based on a segment profit metric that we call Adjusted EBITDA, which is computed as earnings from continuing operations before interest, taxes, depreciation, depletion, amortization, accretion, share-based compensation, and transaction costs, as well as various other non-recurring, non-cash amounts.

The West and East segments have several acquired subsidiaries that are engaged in various activities including quarry mining, aggregate production and contracting. The Cement segment is engaged in the production of Portland cement. Assets employed by each segment include assets directly identified with those operations. Corporate assets consist primarily of cash, property, plant and equipment for corporate operations and other assets not directly identifiable with a reportable business segment. The accounting policies applicable to each segment are consistent with those used in the consolidated financial statements.

The following tables display selected financial data for the Company’s reportable business segments as of and for the years ended December 30, 2017, December 31, 2016 and January 2, 2016:

	2017		2016		2015
Revenue*:
West	$	998,843	$	813,682	$	804,503
East		629,919		531,294		432,310
Cement		303,813		281,087		195,484
Total revenue	$	1,932,575	$	1,626,063	$	1,432,297

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

	2017		2016		2015
(Loss) income from continuing operations before taxes	$	(158,200)	$	40,827	$	(19,194)
Interest expense		108,549		97,536		84,629
Depreciation, depletion and amortization		177,643		147,736		118,321
Accretion		1,875		1,564		1,402
IPO/ Legacy equity modification costs		—		37,257		28,296
Loss on debt financings		4,815		—		71,631
Tax receivable agreement expense		271,016		14,938		—
Transaction costs		7,733		6,797		9,519
Management fees and expenses		—		(1,379)		1,046
Non-cash compensation		21,140		12,683		5,448
Other		1,206		13,388		(13,570)
Total Adjusted EBITDA	$	435,777	$	371,347	$	287,528
Total Adjusted EBITDA by Segment:
West	$	203,590	$	167,434	$	150,764
East		139,108		126,007		92,303
Cement		127,547		112,991		74,845
Corporate and other		(34,468)		(35,085)		(30,384)
Total Adjusted EBITDA	$	435,777	$	371,347	$	287,528

	2017		2016		2015
Purchases of property, plant and equipment
West	$	83,591	$	77,335	$	39,896
East		68,556		45,492		26,268
Cement		35,803		25,408		17,151
Total reportable segments		187,950		148,235		83,315
Corporate and other		6,196		5,248		5,635
Total purchases of property, plant and equipment	$	194,146	$	153,483	$	88,950

	2017		2016		2015
Depreciation, depletion, amortization and accretion:
West	$	71,314	$	65,345	$	53,727
East		67,252		51,540		38,923
Cement		38,351		30,006		24,758
Total reportable segments		176,917		146,891		117,408
Corporate and other		2,601		2,409		2,315
Total depreciation, depletion, amortization and accretion	$	179,518	$	149,300	$	119,723

	2017		2016		2015
Total assets:
West	$	1,225,463	$	902,763	$	821,479
East		1,035,609		870,613		545,187
Cement		870,652		868,440		843,941
Total reportable segments		3,131,724		2,641,816		2,210,607
Corporate and other		655,609		139,650		185,572
Total	$	3,787,333	$	2,781,466	$	2,396,179

	2017		2016		2015
Revenue by product*:
Aggregates	$	313,383	$	264,609	$	219,040
Cement		282,041		250,349		167,696
Ready-mix concrete		492,302		395,917		350,262
Asphalt		285,653		239,419		252,031
Paving and related services		371,763		304,041		295,995
Other		187,433		171,728		147,273
Total revenue	$	1,932,575	$	1,626,063	$	1,432,297

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

Summit Materials, LLC

Segment Information

(19) Segment Information

The Company has three operating segments: West; East; and Cement, which are its reporting segments. These segments are consistent with the Company’s management reporting structure. The operating results of each segment are regularly reviewed and evaluated by the Chief Executive Officer, the Company’s Chief Operating Decision Maker (“CODM”). The CODM primarily evaluates the performance of its segments and allocates resources to them based on a segment profit metric that we call Adjusted EBITDA, which is computed as earnings from continuing operations before interest, taxes, depreciation, depletion, amortization, accretion, share-based compensation, and transaction costs, as well as various other non-recurring, non-cash amounts.

The West and East segments have several acquired subsidiaries that are engaged in various activities including quarry mining, aggregate production and contracting. The Cement segment is engaged in the production of Portland cement. Assets employed by each segment include assets directly identified with those operations. Corporate assets consist primarily of cash, property, plant and equipment for corporate operations and other assets not directly identifiable with a reportable business segment. The accounting policies applicable to each segment are consistent with those used in the consolidated financial statements.

The following tables display selected financial data for the Company’s reportable business segments as of and for the years ended December 30, 2017, December 31, 2016 and January 2, 2016:

	2017		2016		2015
Revenue*:
West	$	998,843	$	813,682	$	804,503
East		629,919		531,294		432,310
Cement		303,813		281,087		195,484
Total revenue	$	1,932,575	$	1,626,063	$	1,432,297

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

	2017		2016		2015
Income (loss) from continuing operations before taxes	$	113,696	$	56,805	$	(18,322)
Interest expense		107,655		96,483		83,757
Depreciation, depletion and amortization		177,643		147,736		118,321
Accretion		1,875		1,564		1,402
IPO/ Legacy equity modification costs		—		37,257		28,296
Loss on debt financings		4,815		—		71,631
Transaction costs		7,733		6,797		9,519
Management fees and expenses		—		(1,379)		1,046
Non-cash compensation		21,140		12,683		5,448
Other		1,206		13,388		(13,570)
Total Adjusted EBITDA	$	435,763	$	371,334	$	287,528
Total Adjusted EBITDA by Segment:
West	$	203,590	$	167,434	$	150,764
East		139,108		126,007		92,303
Cement		127,547		112,991		74,845
Corporate and other		(34,482)		(35,098)		(30,384)
Total Adjusted EBITDA	$	435,763	$	371,334	$	287,528

	2017		2016		2015
Purchases of property, plant and equipment
West	$	83,591	$	77,335	$	39,896
East		68,556		45,492		26,268
Cement		35,803		25,408		17,151
Total reportable segments		187,950		148,235		83,315
Corporate and other		6,196		5,248		5,635
Total purchases of property, plant and equipment	$	194,146	$	153,483	$	88,950

	2017		2016		2015
Depreciation, depletion, amortization and accretion:
West	$	71,314	$	65,345	$	53,727
East		67,252		51,540		38,923
Cement		38,351		30,006		24,758
Total reportable segments		176,917		146,891		117,408
Corporate and other		2,601		2,409		2,315
Total depreciation, depletion, amortization and accretion	$	179,518	$	149,300	$	119,723

	2017		2016		2015
Total assets:
West	$	1,225,463	$	902,763	$	821,479
East		1,035,609		870,613		545,187
Cement		870,652		868,440		843,941
Total reportable segments		3,131,724		2,641,816		2,210,607
Corporate and other		372,517		134,604		184,555
Total	$	3,504,241	$	2,776,420	$	2,395,162

	2017		2016		2015
Revenue by product*:
Aggregates	$	313,383	$	264,609	$	219,040
Cement		282,041		250,349		167,696
Ready-mix concrete		492,302		395,917		350,262
Asphalt		285,653		239,419		252,031
Paving and related services		371,763		304,041		295,995
Other		187,433		171,728		147,273
Total revenue	$	1,932,575	$	1,626,063	$	1,432,297

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