Income Taxes (Tables)

12 Months Ended

Jan. 02, 2021

Income Taxes [Line Items]

Components of Income Tax Benefit

For the years ended January 2, 2021, December 28, 2019 and December 29, 2018, income taxes consisted of the following: 

	2020		2019		2018
Provision for income taxes:
Current	$	3,827	$	69	$	463
Deferred	(16,012)		17,032		59,284
Income tax expense (benefit)	$	(12,185)	$	17,101	$	59,747

Schedule of Reconciliation of Income Tax (Benefit) Expense

The effective tax rate on pre-tax income differs from the U.S. statutory rate of 21% for 2020, 2019 and 2018, respectively, due to the following:

	2020		2019		2018
Income tax expense (benefit) at federal statutory tax rate	$	27,100	$	16,427	$	20,177
Less: Income tax benefit at federal statutory tax rate for LLC entities	(593)		(658)		(561)
State and local income taxes	5,067		3,792		4,894
Permanent differences	(3,345)		(6,272)		(5,537)
Effective tax rate change	4,257		(2,006)		4,034
Unrecognized tax benefits	(41,548)		18,885		22,663
Tax receivable agreement (benefit) expense	(6)		2,436		(8,282)
Change in valuation allowance	—		(17,691)		17,592
Other	(3,117)		2,188		4,767
Income tax expense (benefit)	$	(12,185)	$	17,101	$	59,747

Components of Net Deferred Income Tax Liability

The following table summarizes the components of the net deferred income tax asset (liability) as January 2, 2021 and December 28, 2019: 

	2020		2019
Deferred tax assets (liabilities):
Net intangible assets	$	199,497	$	240,790
Accelerated depreciation	(209,644)		(201,126)
Net operating loss	227,560		164,335
Investment in limited partnership	(33,139)		(31,987)
Mining reclamation reserve	3,306		2,018
Working capital (e.g., accrued compensation, prepaid assets)	45,972		37,287
Interest expense limitation carryforward	—		2,691
Less valuation allowance	(1,675)		(1,675)
Deferred tax assets	231,877		212,333
Less foreign deferred tax liability (included in other noncurrent liabilities)	(18,393)		(8,267)
Net deferred tax asset	$	213,484	$	204,066

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Unrecognized Tax Benefits
Balance—December 29, 2018	$	22,663
Additions based on tax position in 2018	18,885
Balance—December 28, 2019	$	41,548
Reductions based on new regulations	(41,548)
Balance—January 2, 2021	$	—

Summary of Valuation Allowance

	2020		2019
Valuation Allowance:
Beginning balance	$	(1,675)	$	(19,366)
Current year decreases (increases) from operations	—		17,691
Ending balance	$	(1,675)	$	(1,675)

Summit Materials, LLC

Income Taxes [Line Items]

Components of Income Tax Benefit

For the years ended January 2, 2021, December 28, 2019 and December 29, 2018, income taxes consisted of the following:

	2020		2019		2018
Provision for income taxes:
Current	$	3,827	$	69	$	463
Deferred	(2,764)		6,316		9,810
Income tax expense (benefit)	$	1,063	$	6,385	$	10,273

Schedule of Reconciliation of Income Tax (Benefit) Expense

The effective tax rate on pre-tax income differs from the U.S. statutory rate of 21% for 2020, 2019 and 2018, respectively, due to the following:

	2020		2019		2018
Income tax expense (benefit) at federal statutory tax rate	$	25,577	$	19,947	$	15,563
Less: Income tax benefit at federal statutory tax rate for LLC entities	(17,647)		(15,387)		(13,863)
State and local income taxes	2,073		1,680		1,614
Permanent differences	2,479		13		(1,194)
Effective tax rate change	681		(725)		(1,148)
Unrecognized tax benefits	(11,525)		5,038		6,487
Valuation allowance	—		(2,478)		2,586
Other	(575)		(1,703)		228
Income tax benefit	$	1,063	$	6,385	$	10,273

Components of Net Deferred Income Tax Liability

The following table summarizes the components of the net deferred income tax asset (liability) as January 2, 2021 and December 28, 2019:

	2020		2019
Deferred tax (liabilities) assets:
Accelerated depreciation	$	(70,588)	$	(60,216)
Net operating loss	26,929		18,036
Investment in limited partnership	(18,931)		(17,686)
Net intangible assets	(3,264)		(2,554)
Mining reclamation reserve	1,652		723
Working capital (e.g., accrued compensation, prepaid assets)	1,590		1,366
Interest expense limitation carryforward	—		2,691
Net deferred tax liabilities	(62,612)		(57,640)
Less valuation allowance	(1,675)		(1,675)
Net deferred tax liability	$	(64,287)	$	(59,315)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Unrealized Tax Benefits
Balance—December 29, 2018	$	6,487
Additions based on tax position in 2018	5,132
Balance—December 28, 2019	$	11,619
Reductions based on new regulations	(11,619)
Balance—January 2, 2021	$	—

Summary of Valuation Allowance

	2020		2019
Valuation Allowance:
Beginning balance	$	(1,675)	$	(4,261)
Loss carryforwards	—		—
Current year decreases (increases) from operations	—		2,586
Release of valuation allowance and other	—		—
Ending balance	$	(1,675)	$	(1,675)