Acquisitions

12 Months Ended

Dec. 30, 2017

Acquisitions

(2) Acquisitions

The Company has completed numerous acquisitions since its formation, 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 year:

	2017		2016		2015
West		6		3		3
East		8		5		—
Cement		—		1		1

The purchase price allocation for the 2017 acquisitions has not yet been finalized due to the recent timing of the acquisitions and status of the valuation of property, plant and equipment. The table below summarizes aggregated information regarding the fair values of the assets acquired and liabilities assumed as of the respective acquisition dates. Information related to the 2017 acquisitions is shown on an aggregated basis as the acquisitions were not material individually, or collectively.

	2017		2016
Financial assets (1)	$	31,615	$	22,204
Inventories		8,300		17,215
Property, plant and equipment		160,975		180,321
Intangible assets		161		5,531
Other assets		4,200		6,757
Financial liabilities (1)		(15,501)		(20,248)
Other long-term liabilities		(17,610)		(36,074)
Net assets acquired		172,140		175,706
Goodwill		247,536		176,319
Purchase price		419,676		352,025
Acquisition-related liabilities		(43,452)		(17,034)
Other		(1,294)		1,967
Net cash paid for acquisitions	$	374,930	$	336,958

(1) In the first quarter of 2017, we reclassified $1.2 million of accounts payable overdrafts from financial assets to financial liabilities for the year ended December 31, 2016.

Acquisition-Related Liabilities—A number of acquisition-related liabilities have been recorded subject to terms in the relevant purchase agreements, including deferred consideration and noncompete payments. Noncompete payments have been accrued where certain former owners of newly acquired companies have entered into standard noncompete arrangements. Subject to terms and conditions stated in these noncompete agreements, payments are generally made over a five-year period. Deferred consideration is purchase price consideration paid in the future as agreed to in the purchase agreement and is not contingent on future events. Deferred consideration is generally scheduled to be paid in years ranging from five to 20 years in annual installments. The remaining payments due under these noncompete and deferred consideration agreements are as follows:

2018	$	13,760
2019		9,187
2020		7,973
2021		7,958
2022		1,803
Thereafter		6,763
Total scheduled payments		47,444
Present value adjustments		(10,117)
Total noncompete obligations and deferred consideration	$	37,327

Accretion on the deferred consideration and noncompete obligations is recorded in interest expense.

Summit Materials, LLC

Acquisitions

(2) Acquisitions

The Company has completed numerous acquisitions since its formation, 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 year:

	2017		2016		2015
West		6		3		3
East		8		5		—
Cement		—		1		1

The purchase price allocation for the 2017 acquisitions has not yet been finalized due to the recent timing of the acquisitions and status of the valuation of property, plant and equipment. The table below summarizes aggregated information regarding the fair values of the assets acquired and liabilities assumed as of the respective acquisition dates. Information related to the 2017 acquisitions is shown on an aggregated basis as the acquisitions were not material individually, or collectively.

	2017		2016
Financial assets (1)	$	31,615	$	22,204
Inventories		8,300		17,215
Property, plant and equipment		160,975		180,321
Intangible assets		161		5,531
Other assets		4,200		6,757
Financial liabilities (1)		(15,501)		(20,248)
Other long-term liabilities		(17,610)		(36,074)
Net assets acquired		172,140		175,706
Goodwill		247,536		176,319
Purchase price		419,676		352,025
Acquisition-related liabilities		(43,452)		(17,034)
Other		(1,294)		1,967
Net cash paid for acquisitions	$	374,930	$	336,958

(1) In the first quarter of 2017, we reclassified $1.2 million of accounts payable overdrafts from financial assets to financial liabilities for the year ended December 31, 2016.

Acquisition-Related Liabilities—A number of acquisition-related liabilities have been recorded subject to terms in the relevant purchase agreements, including deferred consideration and noncompete payments. Noncompete payments have been accrued where certain former owners of newly acquired companies have entered into standard noncompete arrangements. Subject to terms and conditions stated in these noncompete agreements, payments are generally made over a five-year period. Deferred consideration is purchase price consideration paid in the future as agreed to in the purchase agreement and is not contingent on future events. Deferred consideration is generally scheduled to be paid in years ranging from five to 20 years in annual installments. The remaining payments due under these noncompete and deferred consideration agreements are as follows:

2018		11,260
2019		6,687
2020		5,473
2021		5,458
2022		1,803
Thereafter		6,763
Total scheduled payments		37,444
Present value adjustments		(8,513)
Total noncompete obligations and deferred consideration	$	28,931

Accretion on the deferred consideration and noncompete obligations is recorded in interest expense.