(20) Senior Notes’ Guarantor and Non-Guarantor Financial Information

Summit LLC’s domestic wholly-owned subsidiary companies other than Finance Corp. are named as guarantors (collectively, the “Guarantors”) of the Senior Notes. Certain other partially-owned subsidiaries and a non-U.S. entity do not guarantee the Senior Notes (collectively, the “Non-Guarantors”). The Guarantors provide a joint and several, full and unconditional guarantee of the Senior Notes.

There are no significant restrictions on Summit LLC’s ability to obtain funds from any of the Guarantor Subsidiaries in the form of dividends or loans. Additionally, there are no significant restrictions on a Guarantor Subsidiary’s ability to obtain funds from Summit LLC or its direct or indirect subsidiaries.

The following condensed consolidating balance sheets, statements of operations and cash flows are provided for the Issuers, the Wholly-owned Guarantors and the Non-Guarantors. On March 17, 2015, the noncontrolling interests of Continental Cement were purchased resulting in Continental Cement being a wholly-owned indirect subsidiary of Summit LLC. Continental Cement’s results of operations and cash flows are reflected with the Guarantors for the year ended December 30, 2017. In 2014, Continental Cement’s results are shown separately as a Non Wholly-owned Guarantor.

Earnings from subsidiaries are included in other income in the condensed consolidated statements of operations below. The financial information may not necessarily be indicative of the financial position, results of operations or cash flows had the guarantor or non-guarantor subsidiaries operated as independent entities.

Condensed Consolidating Balance Sheets

December 30, 2017


			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	370,741	$	10,254	$	14,933	$	(12,372)	$	383,556
Accounts receivable, net		—		183,139		15,191		—		198,330
Intercompany receivables		573,301		484,747		—		(1,058,048)		—
Cost and estimated earnings in excess of billings		—		9,264		248		—		9,512
Inventories		—		180,283		4,156		—		184,439
Other current assets		1,167		6,354		243		—		7,764
Total current assets		945,209		874,041		34,771		(1,070,420)		783,601
Property, plant and equipment, net		9,259		1,569,118		37,047		—		1,615,424
Goodwill		—		976,206		61,114		—		1,037,320
Intangible assets, net		—		16,833		—		—		16,833
Other assets		2,890,674		162,711		1,271		(3,003,593)		51,063
Total assets	$	3,845,142	$	3,598,909	$	134,203	$	(4,074,013)	$	3,504,241
Liabilities and Member’s Interest
Current liabilities:
Current portion of debt	$	4,765	$	—	$	—	$	—	$	4,765
Current portion of acquisition-related liabilities		—		11,587		—		—		11,587
Accounts payable		3,976		89,912		6,749		—		100,637
Accrued expenses		47,047		79,372		2,227		(12,372)		116,274
Intercompany payables		684,057		369,918		4,073		(1,058,048)		—
Billings in excess of costs and estimated earnings		—		15,349		401		—		15,750
Total current liabilities		739,845		566,138		13,450		(1,070,420)		249,013
Long-term debt		1,810,833		—		—		—		1,810,833
Acquisition-related liabilities		—		52,239		—		—		52,239
Other noncurrent liabilities		2,870		193,801		75,209		(171,318)		100,562
Total liabilities		2,553,548		812,178		88,659		(1,241,738)		2,212,647
Total member's interest		1,291,594		2,786,731		45,544		(2,832,275)		1,291,594
Total liabilities and member’s interest	$	3,845,142	$	3,598,909	$	134,203	$	(4,074,013)	$	3,504,241

Condensed Consolidating Balance Sheets

December 31, 2016


			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	133,862	$	4,820	$	14,656	$	(10,666)	$	142,672
Accounts receivable, net		—		155,389		7,090		(102)		162,377
Intercompany receivables		521,658		321,776		—		(843,434)		—
Cost and estimated earnings in excess of billings		—		6,830		620		—		7,450
Inventories		—		153,374		4,305		—		157,679
Other current assets		1,259		11,012		529		—		12,800
Total current assets		656,779		653,201		27,200		(854,202)		482,978
Property, plant and equipment, net		7,033		1,418,902		20,517		—		1,446,452
Goodwill		—		735,490		46,722		—		782,212
Intangible assets, net		—		17,989		—		—		17,989
Other assets		2,293,803		125,270		1,946		(2,374,230)		46,789
Total assets	$	2,957,615	$	2,950,852	$	96,385	$	(3,228,432)	$	2,776,420
Liabilities and Member’s Interest
Current liabilities:
Current portion of debt	$	6,500	$	—	$	—	$	—	$	6,500
Current portion of acquisition-related liabilities		1,000		20,663		—		—		21,663
Accounts payable		1,497		76,886		3,329		(102)		81,610
Accrued expenses		46,460		73,807		872		(10,666)		110,473
Intercompany payables		509,503		327,405		6,526		(843,434)		—
Billings in excess of costs and estimated earnings		—		15,242		214		—		15,456
Total current liabilities		564,960		514,003		10,941		(854,202)		235,702
Long-term debt		1,514,456		—		—		—		1,514,456
Acquisition-related liabilities		—		25,161		—		—		25,161
Other noncurrent liabilities		2,395		231,199		56,356		(165,242)		124,708
Total liabilities		2,081,811		770,363		67,297		(1,019,444)		1,900,027
Total member's interest		875,804		2,180,489		29,088		(2,208,988)		876,393
Total liabilities and member’s interest	$	2,957,615	$	2,950,852	$	96,385	$	(3,228,432)	$	2,776,420

Condensed Consolidating Statements of Operations and Comprehensive Loss

Year ended December 30, 2017


			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated

Revenue	$	—		1,854,434		84,020		(5,879)	$	1,932,575
Cost of revenue (excluding items shown separately below)		—		1,227,037		60,619		(5,879)		1,281,777
General and administrative expenses		63,954		178,023		8,426		—		250,403
Depreciation, depletion, amortization and accretion		2,601		172,738		4,179		—		179,518
Operating (loss) income		(66,555)		276,636		10,796		—		220,877
Other income, net		(307,876)		(1,925)		(533)		309,860		(474)
Interest expense (income)		105,735		(2,415)		4,335		—		107,655
Income from operations before taxes		135,586		280,976		6,994		(309,860)		113,696
Income tax expense		1,518		(23,774)		1,911		—		(20,345)
Net income		134,068		304,750		5,083		(309,860)		134,041
Net loss attributable to noncontrolling interest		—		—		—		(27)		(27)
Net income attributable to member of Summit Materials, LLC	$	134,068	$	304,750	$	5,083	$	(309,833)	$	134,068
Comprehensive income (loss) attributable to member of Summit Materials, LLC	$	144,377	$	302,209	$	(2,685)	$	(299,524)	$	144,377

Condensed Consolidating Statements of Operations and Comprehensive Loss

Year ended December 31, 2016


			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated

Revenue	$	—	$	1,586,858	$	47,064	$	(7,859)	$	1,626,063
Cost of revenue (excluding items shown separately below)		—		1,047,120		32,531		(7,859)		1,071,792
General and administrative expenses		91,533		152,402		6,374		—		250,309
Depreciation, depletion, amortization and accretion		2,410		142,773		4,117		—		149,300
Operating (loss) income		(93,943)		244,563		4,042		—		154,662
Other (income) expense, net		(239,082)		1,908		(326)		238,874		1,374
Interest expense		83,068		9,956		3,459		—		96,483
Income from operations before taxes		62,071		232,699		909		(238,874)		56,805
Income (benefit) tax benefit		—		(5,551)		269		—		(5,282)
Net income		62,071		238,250		640		(238,874)		62,087
Net income attributable to noncontrolling interest		—		—		—		16		16
Net income attributable to member of Summit Materials, LLC	$	62,071	$	238,250	$	640	$	(238,890)	$	62,071
Comprehensive income (loss) attributable to member of Summit Materials, LLC	$	63,093	$	239,353	$	(1,485)	$	(237,868)	$	63,093

Condensed Consolidating Statements of Operations and Comprehensive Loss

Year ended January 2, 2016



			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated

Revenue	$	—	$	1,364,622	$	100,360	$	(32,685)	$	1,432,297
Cost of revenue (excluding items shown separately below)		—		958,144		64,803		(32,685)		990,262
General and administrative expenses		73,555		107,282		6,451		—		187,288
Depreciation, depletion, amortization and accretion		2,316		112,166		5,241		—		119,723
Operating (loss) income		(75,871)		187,030		23,865		—		135,024
Other income, net		(107,275)		9,938		294		166,632		69,589
Interest expense		27,222		52,970		3,565		—		83,757
(Loss) income from continuing operations before taxes		4,182		124,122		20,006		(166,632)		(18,322)
Income tax (benefit) expense		—		(18,664)		401		—		(18,263)
(Loss) income from operations		4,182		142,786		19,605		(166,632)		(59)
Income from discontinued operations		—		(2,415)		—		—		(2,415)
Net (loss) income		4,182		145,201		19,605		(166,632)		2,356
Net income attributable to noncontrolling interest		—		—		—		(1,826)		(1,826)
Net (loss) income attributable to member of Summit Materials, LLC	$	4,182	$	145,201	$	19,605	$	(164,806)	$	4,182
Comprehensive (loss) income attributable to member of Summit Materials, LLC	$	(8,738)	$	146,380	$	5,506	$	(151,886)	$	(8,738)

Condensed Consolidating Statements of Cash Flows

For the year ended December 30, 2017


			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated

Net cash (used in) provided by operating activities	$	(127,102)	$	392,316	$	29,918	$	—	$	295,132
Cash flow from investing activities:
Acquisitions, net of cash acquired		(24,538)		(324,892)		(25,500)		—		(374,930)
Purchase of property, plant and equipment		(6,196)		(182,295)		(5,655)		—		(194,146)
Proceeds from the sale of property, plant, and equipment		—		16,822		250		—		17,072
Other		—		(471)		—		—		(471)
Net cash used for investing activities		(30,734)		(490,836)		(30,905)		—		(552,475)
Cash flow from financing activities:
Proceeds from investment by member		40,913		252,911		10,717		—		304,541
Capital issuance costs		(627)		—		—		—		(627)
Net proceeds from debt issuance		302,000		—		—		—		302,000
Loans received from and payments made on loans from other Summit Companies		119,858		(108,026)		(10,126)		(1,706)		—
Payments on long-term debt		(8,463)		(7,967)		(8)		—		(16,438)
Purchase of noncontrolling interests		—		(532)		—		—		(532)
Payments on acquisition-related liabilities		—		(32,150)		—		—		(32,150)
Debt issuance costs		(6,416)		—		—		—		(6,416)
Distributions from partnership		(51,986)		—		—		—		(51,986)
Other		(564)		(282)		(20)		—		(866)
Net cash provided by financing activities		394,715		103,954		563		(1,706)		497,526
Impact of cash on foreign currency		—		—		701		—		701
Net increase (decrease) in cash		236,879		5,434		277		(1,706)		240,884
Cash — Beginning of period		133,862		4,820		14,656		(10,666)		142,672
Cash — End of period	$	370,741	$	10,254	$	14,933	$	(12,372)	$	383,556

Condensed Consolidating Statements of Cash Flows

For the year ended December 31, 2016


			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated

Net cash (used in) provided by operating activities	$	(132,328)	$	373,588	$	3,617	$	—	$	244,877
Cash flow from investing activities:
Acquisitions, net of cash acquired		(42,844)		(294,114)		—		—		(336,958)
Purchase of property, plant and equipment		(5,247)		(146,336)		(1,900)		—		(153,483)
Proceeds from the sale of property, plant, and equipment		—		16,606		262		—		16,868
Other		—		2,921		—		—		2,921
Net cash used for investing activities		(48,091)		(420,923)		(1,638)		—		(470,652)
Cash flow from financing activities:
Proceeds from investment by member		(502,140)		529,517		—		—		27,377
Capital issuance costs		(136)		—		—		—		(136)
Net proceeds from debt issuance		354,000		—		—		—		354,000
Loans received from and payments made on loans from other Summit Companies		440,738		(442,072)		400		934		—
Payments on long-term debt		(110,500)		(10,202)		—		—		(120,702)
Payments on acquisition-related liabilities		(400)		(29,140)		—		—		(29,540)
Financing costs		(5,801)		—		—		—		(5,801)
Distributions from partnership		(42,192)		—		—		—		(42,192)
Other		—		(16)		—		—		(16)
Net cash provided by financing activities		133,569		48,087		400		934		182,990
Impact of cash on foreign currency		—		—		69		—		69
Net (decrease) increase in cash		(46,850)		752		2,448		934		(42,716)
Cash — Beginning of period		180,712		4,068		12,208		(11,600)		185,388
Cash — End of period	$	133,862	$	4,820	$	14,656	$	(10,666)	$	142,672

Condensed Consolidating Statements of Cash Flows

For the year ended January 2, 2016



			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated

Net cash (used in) provided by operating activities	$	(276,104)	$	356,187	$	18,287	$	(167)	$	98,203
Cash flow from investing activities:
Acquisitions, net of cash acquired		—		(510,017)		—		—		(510,017)
Purchase of property, plant and equipment		(5,636)		(81,980)		(1,334)		—		(88,950)
Proceeds from the sale of property, plant, and equipment		—		12,945		165		—		13,110
Other		—		1,510		—		—		1,510
Net cash used for investing activities		(5,636)		(577,542)		(1,169)		—		(584,347)
Cash flow from financing activities:
Proceeds from investment by member		(155,060)		662,826		—		—		507,766
Capital issuance costs		(12,930)		—		—		—		(12,930)
Net proceeds from debt issuance		1,748,875		—		—		—		1,748,875
Loans received from and payments made on loans from other Summit Companies		(208,459)		226,703		(12,700)		(5,544)		—
Payments on long-term debt		(859,796)		(646,746)		—		1,056		(1,505,486)
Payments on acquisition-related liabilities		(166)		(17,890)		—		—		(18,056)
Financing costs		(14,246)		—		—		—		(14,246)
Distributions from partnership		(46,603)		—		—		—		(46,603)
Other		—		(167)		—		167		—
Net cash provided by (used for) financing activities		451,615		224,726		(12,700)		(4,321)		659,320
Impact of cash on foreign currency		—		—		(1,003)		—		(1,003)
Net increase (decrease) in cash		169,875		3,371		3,415		(4,488)		172,173
Cash — Beginning of period		10,837		697		8,793		(7,112)		13,215
Cash — End of period	$	180,712	$	4,068	$	12,208	$	(11,600)	$	185,388