LEASES

3 Months Ended

Mar. 28, 2020

Lessee, Lease, Description [Line Items]

LEASES

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 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
	March 28, 2020			March 30, 2019
Operating lease cost	$	2,607		$	2,455
Variable lease cost	57			72
Short-term lease cost	8,620			6,581
Financing lease cost:
Amortization of right-of-use assets	2,739			2,623
Interest on lease liabilities	771			755
Total lease cost	$	14,794		$	12,486
	March 28, 2020			December 28, 2019
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets	$	30,527		$	32,777
Current operating lease liabilities	$	8,131		$	8,427
Noncurrent operating lease liabilities	23,280			25,381
Total operating lease liabilities	$	31,411		$	33,808
Finance leases:
Property and equipment, gross	$	87,377		$	82,660
Less accumulated depreciation	(27,251		)	(24,907		)
Property and equipment, net	$	60,126		$	57,753
Current finance lease liabilities	$	20,724		$	16,007
Long-term finance lease liabilities	37,300			40,410
Total finance lease liabilities	$	58,024		$	56,417
Weighted average remaining lease term (years):
Operating leases	8.6			8.6
Finance lease	2.5			2.6
Weighted average discount rate (%):
Operating leases	5.5		%	5.5		%
Finance lease	5.5		%	5.5		%
Maturities of lease liabilities were as follows:
	Operating Leases			Finance Leases
2020 (nine months)	$	7,116		$	14,513
2021	8,033			23,292
2022	4,920			16,428
2023	3,877			4,472
2024	2,232			2,277
2025	1,414			1,104
Thereafter	12,613			1,743
Total lease payments	40,205			63,829
Less imputed interest	(8,794		)	(5,805		)
Present value of lease payments	$	31,411		$	58,024

LEASES

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 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
	March 28, 2020			March 30, 2019
Operating lease cost	$	2,607		$	2,455
Variable lease cost	57			72
Short-term lease cost	8,620			6,581
Financing lease cost:
Amortization of right-of-use assets	2,739			2,623
Interest on lease liabilities	771			755
Total lease cost	$	14,794		$	12,486
	March 28, 2020			December 28, 2019
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets	$	30,527		$	32,777
Current operating lease liabilities	$	8,131		$	8,427
Noncurrent operating lease liabilities	23,280			25,381
Total operating lease liabilities	$	31,411		$	33,808
Finance leases:
Property and equipment, gross	$	87,377		$	82,660
Less accumulated depreciation	(27,251		)	(24,907		)
Property and equipment, net	$	60,126		$	57,753
Current finance lease liabilities	$	20,724		$	16,007
Long-term finance lease liabilities	37,300			40,410
Total finance lease liabilities	$	58,024		$	56,417
Weighted average remaining lease term (years):
Operating leases	8.6			8.6
Finance lease	2.5			2.6
Weighted average discount rate (%):
Operating leases	5.5		%	5.5		%
Finance lease	5.5		%	5.5		%
Maturities of lease liabilities were as follows:
	Operating Leases			Finance Leases
2020 (nine months)	$	7,116		$	14,513
2021	8,033			23,292
2022	4,920			16,428
2023	3,877			4,472
2024	2,232			2,277
2025	1,414			1,104
Thereafter	12,613			1,743
Total lease payments	40,205			63,829
Less imputed interest	(8,794		)	(5,805		)
Present value of lease payments	$	31,411		$	58,024

Summit Materials, LLC

Lessee, Lease, Description [Line Items]

LEASES

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 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
	March 28, 2020			March 30, 2019
Operating lease cost	$	2,607		$	2,455
Variable lease cost	57			72
Short-term lease cost	8,620			6,581
Financing lease cost:
Amortization of right-of-use assets	2,739			2,623
Interest on lease liabilities	771			755
Total lease cost	$	14,794		$	12,486
	March 28, 2020			December 28, 2019
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets	$	30,527		$	32,777
Current operating lease liabilities	$	8,131		$	8,427
Noncurrent operating lease liabilities	23,280			25,381
Total operating lease liabilities	$	31,411		$	33,808
Finance leases:
Property and equipment, gross	$	87,377		$	82,660
Less accumulated depreciation	(27,251		)	(24,907		)
Property and equipment, net	$	60,126		$	57,753
Current finance lease liabilities	$	20,724		$	16,007
Long-term finance lease liabilities	37,300			40,410
Total finance lease liabilities	$	58,024		$	56,417
Weighted average remaining lease term (years):
Operating leases	8.6			8.6
Finance lease	2.5			2.6
Weighted average discount rate (%):
Operating leases	5.5		%	5.5		%
Finance lease	5.5		%	5.5		%
Maturities of lease liabilities were as follows:
	Operating Leases			Finance Leases
2020 (nine months)	$	7,116		$	14,513
2021	8,033			23,292
2022	4,920			16,428
2023	3,877			4,472
2024	2,232			2,277
2025	1,414			1,104
Thereafter	12,613			1,743
Total lease payments	40,205			63,829
Less imputed interest	(8,794		)	(5,805		)
Present value of lease payments	$	31,411		$	58,024

LEASES

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 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
	March 28, 2020			March 30, 2019
Operating lease cost	$	2,607		$	2,455
Variable lease cost	57			72
Short-term lease cost	8,620			6,581
Financing lease cost:
Amortization of right-of-use assets	2,739			2,623
Interest on lease liabilities	771			755
Total lease cost	$	14,794		$	12,486
	March 28, 2020			December 28, 2019
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets	$	30,527		$	32,777
Current operating lease liabilities	$	8,131		$	8,427
Noncurrent operating lease liabilities	23,280			25,381
Total operating lease liabilities	$	31,411		$	33,808
Finance leases:
Property and equipment, gross	$	87,377		$	82,660
Less accumulated depreciation	(27,251		)	(24,907		)
Property and equipment, net	$	60,126		$	57,753
Current finance lease liabilities	$	20,724		$	16,007
Long-term finance lease liabilities	37,300			40,410
Total finance lease liabilities	$	58,024		$	56,417
Weighted average remaining lease term (years):
Operating leases	8.6			8.6
Finance lease	2.5			2.6
Weighted average discount rate (%):
Operating leases	5.5		%	5.5		%
Finance lease	5.5		%	5.5		%
Maturities of lease liabilities were as follows:
	Operating Leases			Finance Leases
2020 (nine months)	$	7,116		$	14,513
2021	8,033			23,292
2022	4,920			16,428
2023	3,877			4,472
2024	2,232			2,277
2025	1,414			1,104
Thereafter	12,613			1,743
Total lease payments	40,205			63,829
Less imputed interest	(8,794		)	(5,805		)
Present value of lease payments	$	31,411		$	58,024