LEASES

9 Months Ended

Sep. 28, 2019

Lessee, Lease, Description [Line Items]

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 entered into or reassessed after the adoption of Topic 842, we combine lease and nonlease components. While we also own mineral leases for mining operations, those leases are outside the scope of 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 ended			Nine months ended
	September 28, 2019			September 28, 2019
Operating lease cost	$	2,608		$	7,757
Variable lease cost	151			366
Short-term lease cost	11,871			28,043
Financing lease cost:
Amortization of right-of-use assets	2,612			7,905
Interest on lease liabilities	773			2,404
Total lease cost	$	18,015		$	46,475

				September 28, 2019
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets				$	33,045

Current operating lease liabilities				$	8,609
Noncurrent operating lease liabilities				25,329
Total operating lease liabilities				$	33,938
Finance leases:
Property and equipment, gross				$	80,197
Less accumulated depreciation				(23,552		)
Property and equipment, net				$	56,645

Current finance lease liabilities				$	17,288
Long-term finance lease liabilities				39,093
Total finance lease liabilities				$	56,381

	September 28, 2019
	Lease Term			Discount Rate
	(years)			(%)
Weighted average:
Operating leases	7.7			5.6		%
Finance lease	2.7			5.5		%

Maturities of lease liabilities were as follows:
	Operating Leases			Finance Leases
2019 (three months)	$	2,551		$	5,372
2020	9,800			17,870
2021	7,813			20,578
2022	4,717			12,240
2023	3,570			1,629
2024	1,901			2,131
Thereafter	11,820			2,662
Total lease payments	42,172			62,482
Less imputed interest	(8,234		)	(6,101		)
Present value of lease payments	$	33,938		$	56,381

As previously disclosed, our future minimum lease payment obligations as of December 29, 2018 were as follows:



	Operating Leases
2019	$	9,479
2020	8,101
2021	6,701
2022	4,279
2023	3,411

LEASES



	Three months ended			Nine months ended
	September 28, 2019			September 28, 2019
Operating lease cost	$	2,608		$	7,757
Variable lease cost	151			366
Short-term lease cost	11,871			28,043
Financing lease cost:
Amortization of right-of-use assets	2,612			7,905
Interest on lease liabilities	773			2,404
Total lease cost	$	18,015		$	46,475

				September 28, 2019
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets				$	33,045

Current operating lease liabilities				$	8,609
Noncurrent operating lease liabilities				25,329
Total operating lease liabilities				$	33,938
Finance leases:
Property and equipment, gross				$	80,197
Less accumulated depreciation				(23,552		)
Property and equipment, net				$	56,645

Current finance lease liabilities				$	17,288
Long-term finance lease liabilities				39,093
Total finance lease liabilities				$	56,381

	September 28, 2019
	Lease Term			Discount Rate
	(years)			(%)
Weighted average:
Operating leases	7.7			5.6		%
Finance lease	2.7			5.5		%

Maturities of lease liabilities were as follows:
	Operating Leases			Finance Leases
2019 (three months)	$	2,551		$	5,372
2020	9,800			17,870
2021	7,813			20,578
2022	4,717			12,240
2023	3,570			1,629
2024	1,901			2,131
Thereafter	11,820			2,662
Total lease payments	42,172			62,482
Less imputed interest	(8,234		)	(6,101		)
Present value of lease payments	$	33,938		$	56,381

As previously disclosed, our future minimum lease payment obligations as of December 29, 2018 were as follows:



	Operating Leases
2019	$	9,479
2020	8,101
2021	6,701
2022	4,279
2023	3,411

Summit Materials, LLC

Lessee, Lease, Description [Line Items]

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 entered into or reassessed after the adoption of ASC 842, we combine lease and nonlease components. While we also own mineral leases for mining operations, those leases are outside the scope of ASC 842. Assets acquired under finance leases are included in property, plant and equipment.



	Three months ended			Nine months ended
	September 28, 2019			September 28, 2019
Operating lease cost	$	2,608		$	7,757
Variable lease cost	151			366
Short-term lease cost	11,871			28,043
Financing lease cost:
Amortization of right-of-use assets	2,612			7,905
Interest on lease liabilities	773			2,404
Total lease cost	$	18,015		$	46,475

				September 28, 2019
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets				$	33,045

Current operating lease liabilities				$	8,609
Noncurrent operating lease liabilities				25,329
Total operating lease liabilities				$	33,938
Finance leases:
Property and equipment, gross				$	80,197
Less accumulated depreciation				(23,552		)
Property and equipment, net				$	56,645

Current finance lease liabilities				$	17,288
Long-term finance lease liabilities				39,093
Total finance lease liabilities				$	56,381

	September 28, 2019
	Lease Term			Discount Rate
	(years)			(%)
Weighted average:
Operating leases	7.7			5.6		%
Finance lease	2.7			5.5		%

Maturities of lease liabilities were as follows:
	Operating Leases			Finance Leases
2019 (three months)	$	2,551		$	5,372
2020	9,800			17,870
2021	7,813			20,578
2022	4,717			12,240
2023	3,570			1,629
2024	1,901			2,131
Thereafter	11,820			2,662
Total lease payments	42,172			62,482
Less imputed interest	(8,234		)	(6,101		)
Present value of lease payments	$	33,938		$	56,381

As previously disclosed, our future minimum lease payment obligations as of December 29, 2018 were as follows:



	Operating Leases
2019	$	9,479
2020	8,101
2021	6,701
2022	4,279
2023	3,411

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 entered into or reassessed after the adoption of ASC 842, we combine lease and nonlease components. While we also own mineral leases for mining operations, those leases are outside the scope of ASC 842. Assets acquired under finance leases are included in property, plant and equipment.



	Three months ended			Nine months ended
	September 28, 2019			September 28, 2019
Operating lease cost	$	2,608		$	7,757
Variable lease cost	151			366
Short-term lease cost	11,871			28,043
Financing lease cost:
Amortization of right-of-use assets	2,612			7,905
Interest on lease liabilities	773			2,404
Total lease cost	$	18,015		$	46,475

				September 28, 2019
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets				$	33,045

Current operating lease liabilities				$	8,609
Noncurrent operating lease liabilities				25,329
Total operating lease liabilities				$	33,938
Finance leases:
Property and equipment, gross				$	80,197
Less accumulated depreciation				(23,552		)
Property and equipment, net				$	56,645

Current finance lease liabilities				$	17,288
Long-term finance lease liabilities				39,093
Total finance lease liabilities				$	56,381

	September 28, 2019
	Lease Term			Discount Rate
	(years)			(%)
Weighted average:
Operating leases	7.7			5.6		%
Finance lease	2.7			5.5		%

Maturities of lease liabilities were as follows:
	Operating Leases			Finance Leases
2019 (three months)	$	2,551		$	5,372
2020	9,800			17,870
2021	7,813			20,578
2022	4,717			12,240
2023	3,570			1,629
2024	1,901			2,131
Thereafter	11,820			2,662
Total lease payments	42,172			62,482
Less imputed interest	(8,234		)	(6,101		)
Present value of lease payments	$	33,938		$	56,381

As previously disclosed, our future minimum lease payment obligations as of December 29, 2018 were as follows:



	Operating Leases
2019	$	9,479
2020	8,101
2021	6,701
2022	4,279
2023	3,411