6. Variable Interest Entity

9 Months Ended

Oct. 01, 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 and 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 October 1, 2016, and January 2, 2016:

	October 1, 2016		January 2, 2016
Assets
Current assets	$	522	$	696
Property and equipment, net		7,511		8,077
Other assets		83		83
Total Assets	$	8,116	$	8,856
Liabilities
Accounts payable (a)	$	1,496	$	1,872
Accrued expenses		500		399
Current maturities of long-term debt obligations		705		946
Long-term debt obligations, net of current maturities		3,337		3,439
Other liabilities (b)		1,126		759
Total Liabilities	$	7,164	$	7,415

(a) As of October 1, 2016, AAP has $431 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. In August 2016, the note was repaid with the collection of carbon offset program revenues.

The following table summarizes the operating results of AAP for the three months and nine months ended July 2, 2016, and October 3, 2015:

	Three Months Ended					Nine Months Ended
	October 1, 2016		October 3, 2015			October 1, 2016			October 3, 2015
Revenues	$	2,076	$	1,577		$	5,557		$	5,455
Gross profit		492		(234	)		967			69
Operating income (loss)		79		(684	)		(285	)		(1,366	)
Net income (loss)		24		(748	)		(490	)		(1,548	)