6. Variable Interest Entity

3 Months Ended

Apr. 01, 2017

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 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 April 1, 2017 and December 31, 2016:

	April 1, 2017		December 31, 2016
Assets
Current assets	$	307	$	438
Property and equipment, net		7,120		7,322
Other assets		83		83
Total assets	$	7,510	$	7,843
Liabilities
Accounts payable	$	2,439	$	1,388
Accrued expenses		555		523
Current maturities of long-term debt obligations		734		3,558
Long-term debt obligations, net of current maturities		3,208		435
Other liabilities		289		1,126
Total liabilities	$	7,225	$	7,030

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

The following table summarizes the operating results of AAP for the three months and nine months ended April 1, 2017, and April 2, 2016:

	Three Months Ended
	April 1, 2017			April 2, 2016
Revenues	$	485		$	1,715
Gross profit		(117	)		152
Operating loss		(475	)		(274	)
Net loss		(511	)		(358	)