6. Variable Interest Entity

6 Months Ended

Jul. 02, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entity

The financial position and results of operations of AAP are consolidated in our financial statements based on our conclusion that AAP is a variable interest entity due to our contribution in excess of 50% of the total equity, subordinated debt and other forms of financial support. We have a controlling financial interest in AAP through our contractual agreement with GE, which is material to AAP, and we have provided substantial financial support to fund the operations of AAP since its inception. The financial position and results of operations for AAP are reported in our recycling segment.

The following table summarizes the assets and liabilities of AAP as of July 2, 2016, and January 2, 2016:

	July 2, 2016		January 2, 2016
Assets
Current assets	$	659	$	696
Property and equipment, net		7,701		8,077
Other assets		83		83
Total Assets	$	8,443	$	8,856
Liabilities
Accounts payable (a)	$	1,809	$	1,872
Accrued expenses		461		399
Current maturities of long-term debt obligations		1,050		946
Long-term debt obligations, net of current maturities		3,337		3,439
Other liabilities (b)		859		759
Total Liabilities	$	7,516	$	7,415

(a)     As of July 2, 2016, AAP has $311 in advances payable to 4301 included in accounts payable.

(b)    Other liabilities represent loans and advances between ARCA and AAP that are eliminated in consolidation.

In April 2016, an officer of the Company loaned $75 to AAP through the issuance of an 8% promissory note. The note is expected to be repaid with the collection of carbon offset program revenues in August 2016.

The following table summarizes the operating results of AAP for the three months and six months ended July 2, 2016, and July 4, 2015:

	Three Months Ended						Six Months Ended
	July 2, 2016			July 4, 2015			July 2, 2016			July 4, 2015
Revenues	$	1,695		$	2,028		$	3,480		$	3,878
Gross profit		319			297			475			303
Operating loss		(93	)		(166	)		(364	)		(682	)
Net loss		(159	)		(230	)		(514	)		(800	)