Acquisitions

12 Months Ended

Jan. 02, 2021

Acquisitions

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 purchase price allocation for the 2020 acquisitions has not yet been finalized due to the recent timing of the acquisitions. The following table summarizes the Company’s acquisitions by region and year:

	2020	2019	2018
West	2	2	5
East (1)	1	—	7

______________________

(1)    In addition, the Company acquired certain assets of a small ready-mix concrete operation in the second quarter of 2018.

The table below summarizes aggregated information regarding the fair values of the assets acquired and liabilities assumed as of the respective acquisition dates.

	2020		2019
Financial assets	$	8,696	$	—
Inventories	2,856		52
Property, plant and equipment	130,042		3,542
Other assets	2,790		—
Financial liabilities	(4,469)		(36)
Other long-term liabilities	(16,069)		—
Net assets acquired	123,846		3,558
Goodwill	—		1,834
Purchase price	123,846		5,392
Other	(369)		—
Net cash paid for acquisitions	$	123,477	$	5,392

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 5 to 20 years in annual installments. The remaining payments due under these noncompete and deferred consideration agreements are as follows: 

2021	$	9,705
2022	3,411
2023	2,657
2024	2,620
2025	2,567
Thereafter	4,454
Total scheduled payments	25,414
Present value adjustments	(4,766)
Total noncompete obligations and deferred consideration	$	20,648

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

Summit Materials, LLC

Acquisitions

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 purchase price allocation for the 2020 acquisitions has not yet been finalized due to the recent timing of the acquisitions. The following table summarizes the Company’s acquisitions by region and year:

	2020	2019	2018
West	2	2	5
East (1)	1	—	7

______________________

(1)     In addition, the Company acquired certain assets of a small ready-mix concrete operation in the second quarter of 2018.

The table below summarizes aggregated information regarding the fair values of the assets acquired and liabilities assumed as of the respective acquisition dates.

	2020		2019
Financial assets	$	8,696	$	—
Inventories	2,856		52
Property, plant and equipment	130,042		3,542
Other assets	2,790		—
Financial liabilities	(4,469)		(36)
Other long-term liabilities	(16,069)		—
Net assets acquired	123,846		3,558
Goodwill	—		1,834
Purchase price	123,846		5,392
Other	(369)		—
Net cash paid for acquisitions	$	123,477	$	5,392

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 5 to 20 years in annual installments. The remaining payments due under these noncompete and deferred consideration agreements are as follows:

2021	$	7,205
2022	3,411
2023	2,657
2024	2,620
2025	2,567
Thereafter	4,454
Total scheduled payments	22,914
Present value adjustments	(4,704)
Total noncompete obligations and deferred consideration	$	18,210

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