LEASES

9 Months Ended

Oct. 02, 2021

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 we have entered into or reassessed we combine lease and nonlease components. While we also own mineral leases for mining operations, those leases are outside the scope of ASU No. 2016-2, Leases (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
	October 2, 2021		September 26, 2020		October 2, 2021			September 26, 2020
Operating lease cost	$	1,755	$	2,478	$	5,175		$	7,576
Variable lease cost	90		90		263			253
Short-term lease cost	12,373		14,335		30,517			33,369
Financing lease cost:
Amortization of right-of-use assets	2,168		3,439		7,835			9,307
Interest on lease liabilities	475		780		1,689			2,329
Total lease cost	$	16,861	$	21,122	$	45,479		$	52,834
					October 2, 2021			January 2, 2021
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets					$	27,339		$	28,543
Current operating lease liabilities					$	6,818		$	8,188
Noncurrent operating lease liabilities					21,596			21,500
Total operating lease liabilities					$	28,414		$	29,688
Finance leases:
Property and equipment, gross					$	69,115		$	92,679
Less accumulated depreciation					(29,387)			(32,828)
Property and equipment, net					$	39,728		$	59,851
Current finance lease liabilities					$	17,424		$	24,601
Long-term finance lease liabilities					18,249			31,727
Total finance lease liabilities					$	35,673		$	56,328
Weighted average remaining lease term (years):
Operating leases					9.1			8.7
Finance lease					2.5			2.4
Weighted average discount rate:
Operating leases					5.0		%	5.3		%
Finance leases					5.3		%	5.2		%
Maturities of lease liabilities, as of October 2, 2021, were as follows:
					Operating Leases			Finance Leases
2021 (three months)					$	2,103		$	3,950
2022					7,489			18,668
2023					5,830			7,386
2024					3,662			3,209
2025					2,444			2,583
2026					1,794			990
Thereafter					12,976			1,843
Total lease payments					36,298			38,629
Less imputed interest					(7,884)			(2,956)
Present value of lease payments					$	28,414		$	35,673

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 we have entered into or reassessed we combine lease and nonlease components. While we also own mineral leases for mining operations, those leases are outside the scope of ASU No. 2016-2, Leases (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
	October 2, 2021		September 26, 2020		October 2, 2021			September 26, 2020
Operating lease cost	$	1,755	$	2,478	$	5,175		$	7,576
Variable lease cost	90		90		263			253
Short-term lease cost	12,373		14,335		30,517			33,369
Financing lease cost:
Amortization of right-of-use assets	2,168		3,439		7,835			9,307
Interest on lease liabilities	475		780		1,689			2,329
Total lease cost	$	16,861	$	21,122	$	45,479		$	52,834
					October 2, 2021			January 2, 2021
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets					$	27,339		$	28,543
Current operating lease liabilities					$	6,818		$	8,188
Noncurrent operating lease liabilities					21,596			21,500
Total operating lease liabilities					$	28,414		$	29,688
Finance leases:
Property and equipment, gross					$	69,115		$	92,679
Less accumulated depreciation					(29,387)			(32,828)
Property and equipment, net					$	39,728		$	59,851
Current finance lease liabilities					$	17,424		$	24,601
Long-term finance lease liabilities					18,249			31,727
Total finance lease liabilities					$	35,673		$	56,328
Weighted average remaining lease term (years):
Operating leases					9.1			8.7
Finance lease					2.5			2.4
Weighted average discount rate:
Operating leases					5.0		%	5.3		%
Finance leases					5.3		%	5.2		%
Maturities of lease liabilities, as of October 2, 2021, were as follows:
					Operating Leases			Finance Leases
2021 (three months)					$	2,103		$	3,950
2022					7,489			18,668
2023					5,830			7,386
2024					3,662			3,209
2025					2,444			2,583
2026					1,794			990
Thereafter					12,976			1,843
Total lease payments					36,298			38,629
Less imputed interest					(7,884)			(2,956)
Present value of lease payments					$	28,414		$	35,673

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 we have entered into or reassessed, we combine lease and nonlease components. While we also own mineral leases for mining operations, those leases are outside the scope of ASU No. 2016-2, Leases (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
	October 2, 2021		September 26, 2020		October 2, 2021			September 26, 2020
Operating lease cost	$	1,755	$	2,478	$	5,175		$	7,576
Variable lease cost	90		90		263			253
Short-term lease cost	12,373		14,335		30,517			33,369
Financing lease cost:
Amortization of right-of-use assets	2,168		3,439		7,835			9,307
Interest on lease liabilities	475		780		1,689			2,329
Total lease cost	$	16,861	$	21,122	$	45,479		$	52,834
					October 2, 2021			January 2, 2021
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets					$	27,339		$	28,543
Current operating lease liabilities					$	6,818		$	8,188
Noncurrent operating lease liabilities					21,596			21,500
Total operating lease liabilities					$	28,414		$	29,688
Finance leases:
Property and equipment, gross					$	69,115		$	92,679
Less accumulated depreciation					(29,387)			(32,828)
Property and equipment, net					$	39,728		$	59,851
Current finance lease liabilities					$	17,424		$	24,601
Long-term finance lease liabilities					18,249			31,727
Total finance lease liabilities					$	35,673		$	56,328
Weighted average remaining lease term (years):
Operating leases					9.1			8.7
Finance lease					2.5			2.4
Weighted average discount rate:
Operating leases					5.0		%	5.3		%
Finance leases					5.3		%	5.2		%
Maturities of lease liabilities, as of October 2, 2021, were as follows:
					Operating Leases			Finance Leases
2021 (three months)					$	2,103		$	3,950
2022					7,489			18,668
2023					5,830			7,386
2024					3,662			3,209
2025					2,444			2,583
2026					1,794			990
Thereafter					12,976			1,843
Total lease payments					36,298			38,629
Less imputed interest					(7,884)			(2,956)
Present value of lease payments					$	28,414		$	35,673

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 we have entered into or reassessed, we combine lease and nonlease components. While we also own mineral leases for mining operations, those leases are outside the scope of ASU No. 2016-2, Leases (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
	October 2, 2021		September 26, 2020		October 2, 2021			September 26, 2020
Operating lease cost	$	1,755	$	2,478	$	5,175		$	7,576
Variable lease cost	90		90		263			253
Short-term lease cost	12,373		14,335		30,517			33,369
Financing lease cost:
Amortization of right-of-use assets	2,168		3,439		7,835			9,307
Interest on lease liabilities	475		780		1,689			2,329
Total lease cost	$	16,861	$	21,122	$	45,479		$	52,834
					October 2, 2021			January 2, 2021
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets					$	27,339		$	28,543
Current operating lease liabilities					$	6,818		$	8,188
Noncurrent operating lease liabilities					21,596			21,500
Total operating lease liabilities					$	28,414		$	29,688
Finance leases:
Property and equipment, gross					$	69,115		$	92,679
Less accumulated depreciation					(29,387)			(32,828)
Property and equipment, net					$	39,728		$	59,851
Current finance lease liabilities					$	17,424		$	24,601
Long-term finance lease liabilities					18,249			31,727
Total finance lease liabilities					$	35,673		$	56,328
Weighted average remaining lease term (years):
Operating leases					9.1			8.7
Finance lease					2.5			2.4
Weighted average discount rate:
Operating leases					5.0		%	5.3		%
Finance leases					5.3		%	5.2		%
Maturities of lease liabilities, as of October 2, 2021, were as follows:
					Operating Leases			Finance Leases
2021 (three months)					$	2,103		$	3,950
2022					7,489			18,668
2023					5,830			7,386
2024					3,662			3,209
2025					2,444			2,583
2026					1,794			990
Thereafter					12,976			1,843
Total lease payments					36,298			38,629
Less imputed interest					(7,884)			(2,956)
Present value of lease payments					$	28,414		$	35,673