SEC Info℠  
    Home      Search      My Interests      Help      Sign In      Please Sign In

Summit Materials, Inc., et al. – ‘10-Q’ for 9/28/19 – ‘EX-99.1’

On:  Wednesday, 10/30/19, at 12:42pm ET   ·   For:  9/28/19   ·   Accession #:  1628280-19-12765   ·   File #s:  1-36873, 333-187556

Previous ‘10-Q’:  ‘10-Q’ on 8/1/19 for 6/29/19   ·   Next:  ‘10-Q’ on 4/29/20 for 3/28/20   ·   Latest:  ‘10-Q’ on 5/2/24 for 3/30/24   ·   15 References:   

Find Words in Filings emoji
 		  in    Show  and   ↓Hints

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

10/30/19  Summit Materials, Inc.            10-Q        9/28/19   89:21M                                    Workiva Inc Wde… FA01/FA
          Summit Materials, LLC

Quarterly Report   —   Form 10-Q   —   Sect. 13 / 15(d) – SEA’34
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        Quarterly Report                                    HTML   1.52M 
 2: EX-3.4      Articles of Incorporation/Organization or Bylaws    HTML     46K 
11: EX-95.1     Mine-Safety Disclosure                              HTML    549K 
12: EX-99.1     Miscellaneous Exhibit                               HTML   1.32M 
 3: EX-31.1     Certification -- §302 - SOA'02                      HTML     31K 
 4: EX-31.2     Certification -- §302 - SOA'02                      HTML     31K 
 5: EX-31.3     Certification -- §302 - SOA'02                      HTML     31K 
 6: EX-31.4     Certification -- §302 - SOA'02                      HTML     31K 
 7: EX-32.1     Certification -- §906 - SOA'02                      HTML     27K 
 8: EX-32.2     Certification -- §906 - SOA'02                      HTML     27K 
 9: EX-32.3     Certification -- §906 - SOA'02                      HTML     27K 
10: EX-32.4     Certification -- §906 - SOA'02                      HTML     27K 
22: R1          Cover                                               HTML     90K 
67: R2          Consolidated Balance Sheets                         HTML    148K 
78: R3          Consolidated Balance Sheets (Parenthetical)         HTML     47K 
46: R4          Unaudited Consolidated Statements of Operations     HTML    122K 
21: R5          Unaudited Consolidated Statements of Comprehensive  HTML     61K 
                Income                                                           
66: R6          Unaudited Consolidated Statements of Cash Flows     HTML    141K 
77: R7          Unaudited Consolidated Statements of Changes in     HTML    159K 
                Stockholders' Equity / Members' Interest and                     
                Redeemable Noncontrolling Interest                               
47: R8          Summary of Organization and Significant Accounting  HTML     79K 
                Policies                                                         
19: R9          Goodwill and Intangibles                            HTML    141K 
59: R10         Revenue Recognition                                 HTML    137K 
83: R11         Inventories                                         HTML     50K 
42: R12         Accrued Expenses                                    HTML     59K 
33: R13         Debt                                                HTML    136K 
58: R14         Income Taxes                                        HTML     44K 
82: R15         Earnings Per Share                                  HTML     79K 
41: R16         Stockholders' Equity/Members' Interest              HTML    133K 
32: R17         Supplemental Cash Flow Information                  HTML     61K 
56: R18         Leases                                              HTML    223K 
84: R19         Commitments and Contingencies                       HTML     41K 
54: R20         Fair Value                                          HTML    100K 
28: R21         Segment Information                                 HTML    282K 
71: R22         Guarantor and Non-Guarantor Financial Information   HTML    644K 
80: R23         Summary of Organization and Significant Accounting  HTML     97K 
                Policies - (Policies)                                            
53: R24         Goodwill and Intangibles - (Tables)                 HTML    140K 
27: R25         Revenue Recognition - (Tables)                      HTML    139K 
70: R26         Inventories - (Tables)                              HTML     51K 
79: R27         Accrued Expenses - (Tables)                         HTML     58K 
55: R28         Debt - (Tables)                                     HTML    106K 
26: R29         Earnings Per Share - (Tables)                       HTML     81K 
29: R30         Stockholders' Equity/Members' Interest - (Tables)   HTML    132K 
39: R31         Supplemental Cash Flow Information - (Tables)       HTML     60K 
85: R32         Leases - (Tables)                                   HTML    382K 
60: R33         Fair Value - (Tables)                               HTML     92K 
30: R34         Segment Information - (Tables)                      HTML    279K 
40: R35         Guarantor and Non-Guarantor Financial Information   HTML    644K 
                - (Tables)                                                       
86: R36         SUMMARY OF ORGANIZATION AND SIGNIFICANT ACCOUNTING  HTML     40K 
                POLICIES - General Information (Details)                         
61: R37         SUMMARY OF ORGANIZATION AND SIGNIFICANT ACCOUNTING  HTML     35K 
                POLICIES - Business and Credit Concentration                     
                (Details)                                                        
31: R38         SUMMARY OF ORGANIZATION AND SIGNIFICANT ACCOUNTING  HTML     32K 
                POLICIES - New Accounting Standards (Details)                    
38: R39         GOODWILL AND INTANGIBLES - Summary of Goodwill by   HTML     49K 
                Reportable Segments (Details)                                    
23: R40         GOODWILL AND INTANGIBLES - Intangible Assets By     HTML     54K 
                Type (Details)                                                   
51: R41         GOODWILL AND INTANGIBLES - Amortization Expense     HTML     58K 
                (Details)                                                        
72: R42         GOODWILL AND INTANGIBLES - Completed Dispositions   HTML     38K 
                Information (Details)                                            
64: R43         REVENUE RECOGNITION - By Product (Details)          HTML     53K 
24: R44         REVENUE RECOGNITION - Contract Assets and           HTML     47K 
                Liabilities (Details)                                            
52: R45         REVENUE RECOGNITION - Summary of Accounts           HTML     55K 
                Receivable, Net (Details)                                        
73: R46         INVENTORIES - Components of Inventories (Details)   HTML     42K 
65: R47         ACCRUED EXPENSES - Components of Accrued Expenses   HTML     59K 
                (Details)                                                        
25: R48         DEBT - Schedule of Debt (Details)                   HTML     77K 
50: R49         DEBT - Schedule of Contractual Payments of          HTML     61K 
                Long-Term Debt (Details)                                         
44: R50         DEBT - Senior Notes (Details)                       HTML     92K 
37: R51         DEBT - Senior Secured Credit Facilities (Details)   HTML     60K 
63: R52         DEBT - Summary of Activity for Deferred Financing   HTML     40K 
                Fees (Details)                                                   
89: R53         DEBT - Other (Details)                              HTML     52K 
43: R54         INCOME TAXES - Narrative (Details)                  HTML     61K 
35: R55         EARNINGS PER SHARE - Schedule of Basic to Diluted   HTML     68K 
                Income Per Share (Details)                                       
62: R56         STOCKHOLDERS' EQUITY/MEMBERS' INTEREST - Equity     HTML     58K 
                Offerings (Details)                                              
88: R57         STOCKHOLDERS' EQUITY/MEMBERS' INTEREST -            HTML     57K 
                Accumulated Other Comprehensive Income (Loss)                    
                (Details)                                                        
45: R58         SUPPLEMENTAL CASH FLOW INFORMATION - Schedule of    HTML     53K 
                Supplemental Cash Flow Information (Details)                     
34: R59         LEASES - Operating and Finance Leases (Details)     HTML    142K 
69: R60         LEASES - Future Minimum Lease Payments Under Topic  HTML     44K 
                840 (Details)                                                    
75: R61         COMMITMENTS AND CONTINGENCIES - Additional          HTML     45K 
                Information (Details)                                            
49: R62         FAIR VALUE - Fair Value Measurements (Details)      HTML     62K 
20: R63         FAIR VALUE - Carrying Value and Fair Value of       HTML     52K 
                Financial Instruments (Details)                                  
68: R64         SEGMENT INFORMATION - Financial Data (Details)      HTML    124K 
74: R65         GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION   HTML    204K 
                - Schedule of Condensed Consolidating Balance                    
                Sheets (Details)                                                 
48: R66         GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION   HTML     93K 
                - Schedule of Condensed Consolidating Statements                 
                of Operations and Comprehensive Loss (Details)                   
18: R67         GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION   HTML    127K 
                - Schedule of Condensed Consolidating Statements                 
                of Cash Flows (Details)                                          
76: XML         IDEA XML File -- Filing Summary                      XML    151K 
57: XML         XBRL Instance -- a10q32019_htm                       XML   6.71M 
81: EXCEL       IDEA Workbook of Financial Reports                  XLSX    117K 
14: EX-101.CAL  XBRL Calculations -- sum-20190928_cal                XML    324K 
15: EX-101.DEF  XBRL Definitions -- sum-20190928_def                 XML   1.35M 
16: EX-101.LAB  XBRL Labels -- sum-20190928_lab                      XML   1.81M 
17: EX-101.PRE  XBRL Presentations -- sum-20190928_pre               XML   1.45M 
13: EX-101.SCH  XBRL Schema -- sum-20190928                          XSD    183K 
36: JSON        XBRL Instance as JSON Data -- MetaLinks              390±   605K 
87: ZIP         XBRL Zipped Folder -- 0001628280-19-012765-xbrl      Zip    643K

‘EX-99.1’   —   Miscellaneous Exhibit

This Exhibit is an HTML Document rendered as filed.  [ Alternative Formats ]

 iX:   C:   C:   C: 
  Exhibit  


Exhibit 99.1
 
SUMMIT MATERIALS, LLC AND SUBSIDIARIES
Consolidated Balance Sheets
(In thousands)
 
 
 
September 28,
 
December 29,
 
 
2019
 
2018
 
 
(unaudited)
 
(audited)
Assets
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
 i 182,589

 
$
 i 128,508

Accounts receivable, net
 
 i 337,060

 
 i 214,518

Costs and estimated earnings in excess of billings
 
 i 49,715

 
 i 18,602

Inventories
 
 i 197,015

 
 i 213,851

Other current assets
 
 i 12,037

 
 i 16,061

Total current assets
 
 i 778,416

 
 i 591,540

Property, plant and equipment, less accumulated depreciation, depletion and amortization (September 28, 2019 - $923,439 and December 29, 2018 - $794,251)
 
 i 1,762,307

 
 i 1,780,132

Goodwill
 
 i 1,199,496

 
 i 1,193,028

Intangible assets, less accumulated amortization (September 28, 2019 - $9,666 and December 29, 2018 - $8,247)
 
 i 24,446

 
 i 18,460

Operating lease right-of-use assets
 
 i 33,045

 
—

Other assets
 
 i 51,772

 
 i 50,084

Total assets
 
$
 i 3,849,482

 
$
 i 3,633,244

Liabilities and Member’s Interest
 
 
 
 
Current liabilities:
 
 
 
 
Current portion of debt
 
$
 i 6,354

 
$
 i 6,354

Current portion of acquisition-related liabilities
 
 i 31,898

 
 i 31,770

Accounts payable
 
 i 152,843

 
 i 109,008

Accrued expenses
 
 i 118,234

 
 i 100,029

Current operating lease liabilities
 
 i 8,609

 
—

Billings in excess of costs and estimated earnings
 
 i 12,476

 
 i 11,840

Total current liabilities
 
 i 330,414

 
 i 259,001

Long-term debt
 
 i 1,853,414

 
 i 1,807,502

Acquisition-related liabilities
 
 i 38,645

 
 i 45,354

Noncurrent operating lease liabilities
 
 i 25,329

 
—

Other noncurrent liabilities
 
 i 151,016

 
 i 135,956

Total liabilities
 
 i 2,398,818

 
 i 2,247,813

Commitments and contingencies (see note 11)
 
 i 
 
 i 
Member’s equity
 
 i 1,411,223

 
 i 1,396,241

Accumulated earnings
 
 i 59,942

 
 i 12,806

Accumulated other comprehensive loss
 
( i 20,501
)
 
( i 23,616
)
Total member’s interest
 
 i 1,450,664

 
 i 1,385,431

Total liabilities and member’s interest
 
$
 i 3,849,482

 
$
 i 3,633,244

 
See notes to unaudited consolidated financial statements.




SUMMIT MATERIALS, LLC AND SUBSIDIARIES
Unaudited Consolidated Statements of Operations
(In thousands)
 
 
 
Three months ended
 
Nine months ended
 
 
September 28,
 
September 29,
 
September 28,
 
September 29,
 
 
2019
 
2018
 
2019
 
2018
Revenue:
 
 
 
 
 
 
 
 
Product
 
$
 i 554,721

 
$
 i 512,822

 
$
 i 1,293,999

 
$
 i 1,229,596

Service
 
 i 111,126

 
 i 112,195

 
 i 230,389

 
 i 234,572

Net revenue
 
 i 665,847

 
 i 625,017

 
 i 1,524,388

 
 i 1,464,168

Delivery and subcontract revenue
 
 i 66,235

 
 i 69,644

 
 i 141,224

 
 i 145,804

Total revenue
 
 i 732,082

 
 i 694,661

 
 i 1,665,612

 
 i 1,609,972

Cost of revenue (excluding items shown separately below):
 
 
 
 
 
 
 
 
Product
 
 i 338,119

 
 i 321,586

 
 i 846,702

 
 i 814,166

Service
 
 i 78,625

 
 i 80,573

 
 i 167,550

 
 i 170,626

Net cost of revenue
 
 i 416,744

 
 i 402,159

 
 i 1,014,252

 
 i 984,792

Delivery and subcontract cost
 
 i 66,235

 
 i 69,644

 
 i 141,224

 
 i 145,804

Total cost of revenue
 
 i 482,979

 
 i 471,803

 
 i 1,155,476

 
 i 1,130,596

General and administrative expenses
 
 i 62,344

 
 i 59,457

 
 i 190,915

 
 i 190,975

Depreciation, depletion, amortization and accretion
 
 i 55,127

 
 i 53,974

 
 i 164,140

 
 i 150,663

Transaction costs
 
 i 751

 
 i 1,260

 
 i 1,449

 
 i 3,817

Operating income
 
 i 130,881

 
 i 108,167

 
 i 153,632

 
 i 133,921

Interest expense
 
 i 28,800

 
 i 28,720

 
 i 88,020

 
 i 86,066

Loss on debt financings
 
 i —

 
 i —

 
 i 14,565

 
 i 149

Gain on sale of business
 
 i —

 
( i 12,108
)
 
 i —

 
( i 12,108
)
Other income, net
 
( i 1,875
)
 
( i 3,371
)
 
( i 8,354
)
 
( i 11,942
)
Income from operations before taxes
 
 i 103,956

 
 i 94,926

 
 i 59,401

 
 i 71,756

Income tax expense
 
 i 18,757

 
 i 4,499

 
 i 12,265

 
 i 3,323

Net income attributable to Summit LLC
 
$
 i 85,199

 
$
 i 90,427

 
$
 i 47,136

 
$
 i 68,433

 
See notes to unaudited consolidated financial statements.











SUMMIT MATERIALS, LLC AND SUBSIDIARIES
Unaudited Consolidated Statements of Comprehensive Income
(In thousands)
 
 
 
Three months ended
 
Nine months ended
 
 
September 28,
 
September 29,
 
September 28,
 
September 29,
 
 
2019
 
2018
 
2019
 
2018
Net income
 
$
 i 85,199

 
$
 i 90,427

 
$
 i 47,136

 
$
 i 68,433

Other comprehensive income (loss):
 
 
 
 
 
 
 
 
Foreign currency translation adjustment
 
( i 1,328
)
 
 i 1,970

 
 i 3,263

 
( i 3,179
)
Income (loss) on cash flow hedges
 
 i 155

 
 i 87

 
( i 148
)
 
 i 1,443

Other comprehensive (loss) income
 
( i 1,173
)
 
 i 2,057

 
 i 3,115

 
( i 1,736
)
Comprehensive income attributable to Summit LLC
 
$
 i 84,026

 
$
 i 92,484

 
$
 i 50,251

 
$
 i 66,697

 
See notes to unaudited consolidated financial statements.




SUMMIT MATERIALS, LLC AND SUBSIDIARIES
Unaudited Consolidated Statements of Cash Flows
(In thousands)
 
 
 
Nine months ended
 
 
September 28,
 
September 29,
 
 
2019
 
2018
Cash flow from operating activities:
 
 
 
 
Net income
 
$
 i 47,136

 
$
 i 68,433

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
 
 
 
 
Depreciation, depletion, amortization and accretion
 
 i 166,594

 
 i 152,279

Share-based compensation expense
 
 i 15,424

 
 i 19,833

Net gain on asset disposals
 
( i 8,030
)
 
( i 27,261
)
Non-cash loss on debt financings
 
 i 2,850

 
 i —

Change in deferred tax asset, net
 
 i 11,153

 
 i 1,463

Other
 
( i 1,609
)
 
 i 873

(Increase) decrease in operating assets, net of acquisitions and dispositions:
 
 
 
 
Accounts receivable, net
 
( i 121,196
)
 
( i 90,481
)
Inventories
 
 i 16,296

 
( i 26,027
)
Costs and estimated earnings in excess of billings
 
( i 31,085
)
 
( i 37,643
)
Other current assets
 
 i 5,635

 
( i 6,819
)
Other assets
 
 i 4,992

 
( i 1,217
)
(Decrease) increase in operating liabilities, net of acquisitions and dispositions:
 
 
 
 
Accounts payable
 
 i 51,728

 
 i 24,392

Accrued expenses
 
 i 9,142

 
( i 1,611
)
Billings in excess of costs and estimated earnings
 
 i 618

 
( i 3,850
)
Other liabilities
 
( i 5,805
)
 
( i 1,807
)
Net cash provided by operating activities
 
 i 163,843

 
 i 70,557

Cash flow from investing activities:
 
 
 
 
Acquisitions, net of cash acquired
 
( i 2,842
)
 
( i 210,894
)
Purchases of property, plant and equipment
 
( i 139,762
)
 
( i 183,752
)
Proceeds from the sale of property, plant and equipment
 
 i 13,035

 
 i 18,426

Proceeds from sale of business
 
 i —

 
 i 21,564

Other
 
( i 207
)
 
 i 2,660

Net cash used for investing activities
 
( i 129,776
)
 
( i 351,996
)
Cash flow from financing activities:
 
 
 
 
Capital contributions by member
 
 i 2,559

 
 i 15,615

Proceeds from debt issuances
 
 i 300,000

 
 i 64,500

Debt issuance costs
 
( i 6,312
)
 
( i 550
)
Payments on debt
 
( i 264,906
)
 
( i 79,027
)
Payments on acquisition-related liabilities
 
( i 8,500
)
 
( i 32,821
)
Distributions
 
( i 2,500
)
 
( i 2,569
)
Other
 
( i 501
)
 
( i 1,913
)
Net cash provided by (used in) financing activities
 
 i 19,840

 
( i 36,765
)
Impact of foreign currency on cash
 
 i 174

 
( i 422
)
Net increase (decrease) in cash
 
 i 54,081

 
( i 318,626
)
Cash and cash equivalents – beginning of period
 
 i 128,508

 
 i 383,556

Cash and cash equivalents – end of period
 
$
 i 182,589

 
$
 i 64,930

 
See notes to unaudited consolidated financial statements.




SUMMIT MATERIALS, LLC AND SUBSIDIARIES
Unaudited Consolidated Statements of Changes in Member’s Interest and Redeemable Noncontrolling Interest
(In thousands)
 
 
 
Total Member’s Interest
 
 
 
 
 
 
 
 
Accumulated
 
 
 
 
 
 
 
 
other
 
Total
 
 
Member’s
 
Accumulated
 
comprehensive
 
member’s
 
 
equity
 
(deficit) earnings
 
loss
 
interest
Balance — December 29, 2018
 
$
 i 1,396,241

 
$
 i 12,806

 
$
( i 23,616
)
 
$
 i 1,385,431

Net contributed capital
 
 i 766

 
—

 
—

 
 i 766

Net loss
 
—

 
( i 91,564
)
 
—

 
( i 91,564
)
Other comprehensive income
 
—

 
—

 
 i 2,192

 
 i 2,192

Distributions
 
( i 2,500
)
 
—

 
—

 
( i 2,500
)
Share-based compensation
 
 i 5,906

 
—

 
—

 
 i 5,906

Shares redeemed to settle taxes and other
 
( i 501
)
 
—

 
—

 
( i 501
)
Balance — March 30, 2019
 
$
 i 1,399,912

 
$
( i 78,758
)
 
$
( i 21,424
)
 
$
 i 1,299,730

Net contributed capital
 
 i 18

 
—

 
—

 
 i 18

Net income
 
—

 
 i 53,501

 
—

 
 i 53,501

Other comprehensive income
 
—

 
—

 
 i 2,096

 
 i 2,096

Share-based compensation
 
 i 4,699

 
—

 
—

 
 i 4,699

Balance — June 29, 2019
 
$
 i 1,404,629

 
$
( i 25,257
)
 
$
( i 19,328
)
 
$
 i 1,360,044

Net contributed capital
 
 i 1,775

 
—

 
—

 
 i 1,775

Net income
 
—

 
 i 85,199

 
—

 
 i 85,199

Other comprehensive loss
 
—

 
—

 
( i 1,173
)
 
( i 1,173
)
Share-based compensation
 
 i 4,819

 
—

 
—

 
 i 4,819

Balance — September 28, 2019
 
$
 i 1,411,223

 
$
 i 59,942

 
$
( i 20,501
)
 
$
 i 1,450,664

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance — December 30, 2017
 
$
 i 1,359,760

 
$
( i 51,031
)
 
$
( i 17,135
)
 
$
 i 1,291,594

Net contributed capital
 
 i 15,475

 
—

 
—

 
 i 15,475

Net loss
 
—

 
( i 68,596
)
 
—

 
( i 68,596
)
Other comprehensive loss
 
—

 
—

 
( i 2,109
)
 
( i 2,109
)
Distributions
 
( i 2,509
)
 
—

 
—

 
( i 2,509
)
Share-based compensation
 
 i 8,507

 
—

 
—

 
 i 8,507

Shares redeemed to settle taxes and other
 
( i 1,820
)
 
—

 
—

 
( i 1,820
)
Balance — March 31, 2018
 
$
 i 1,379,413

 
$
( i 119,627
)
 
$
( i 19,244
)
 
$
 i 1,240,542

Net contributed capital
 
 i 140

 
—

 
—

 
 i 140

Net income
 
—

 
 i 46,602

 
—

 
 i 46,602

Other comprehensive loss
 
—

 
—

 
( i 1,684
)
 
( i 1,684
)
Distributions
 
( i 60
)
 
—

 
—

 
( i 60
)
Share-based compensation
 
 i 5,683

 
—

 
—

 
 i 5,683

Shares redeemed to settle taxes and other
 
( i 84
)
 
—

 
—

 
( i 84
)
Balance — June 30, 2018
 
$
 i 1,385,092

 
$
( i 73,025
)
 
$
( i 20,928
)
 
$
 i 1,291,139

Net income
 
—

 
 i 90,427

 
—

 
 i 90,427

Other comprehensive income
 
—

 
—

 
 i 2,057

 
 i 2,057

Share-based compensation
 
 i 5,643

 
—

 
—

 
 i 5,643

Shares redeemed to settle taxes and other
 
( i 9
)
 
—

 
—

 
( i 9
)
Balance — September 29, 2018
 
$
 i 1,390,726

 
$
 i 17,402

 
$
( i 18,871
)
 
$
 i 1,389,257

 
See notes to unaudited consolidated financial statements.




SUMMIT MATERIALS, LLC
 
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
 
(Dollars in tables in thousands)
 
1.  i SUMMARY OF ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
 
Summit Materials, LLC (“Summit LLC” and, together with its subsidiaries, “Summit,” “we,” “us,” “our” or the “Company”) is a vertically-integrated construction materials company. The Company is engaged in the production and sale of aggregates, cement, ready-mix concrete, asphalt paving mix and concrete products and owns and operates quarries, sand and gravel pits,  i two cement plants, cement distribution terminals, ready-mix concrete plants, asphalt plants and landfill sites. It is also engaged in paving and related services. The Company’s  i three operating and reporting segments are the West, East and Cement segments.
 
Substantially all of the Company’s construction materials, products and services are produced, consumed and performed outdoors, primarily in the spring, summer and fall. Seasonal changes and other weather-related conditions can affect the production and sales volumes of its products and delivery of services. Therefore, the financial results for any interim period are typically not indicative of the results expected for the full year. Furthermore, the Company’s sales and earnings are sensitive to national, regional and local economic conditions, weather conditions and to cyclical changes in construction spending, among other factors.
 
Summit LLC is a wholly owned indirect subsidiary of Summit Materials Holdings L.P. (“Summit Holdings”), whose primary owner is Summit Materials, Inc. (“Summit Inc.”). Summit Inc. was formed as a Delaware corporation on September 23, 2014. Its sole material asset is a controlling equity interest in Summit Holdings. Pursuant to a reorganization into a holding company structure (the “Reorganization”) consummated in connection with Summit Inc.’s March 2015 initial public offering, Summit Inc. became a holding corporation operating and controlling all of the business and affairs of Summit Holdings and its subsidiaries, including Summit LLC.
 
 i 
Basis of Presentation—These unaudited consolidated financial statements were prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures typically included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto as of and for the year ended December 29, 2018. The Company continues to follow the accounting policies set forth in those audited consolidated financial statements.
 
Management believes that these consolidated interim financial statements include all adjustments, normal and recurring in nature, that are necessary to present fairly the financial position of the Company as of September 28, 2019, the results of operations for the three and nine months ended September 28, 2019 and September 29, 2018 and cash flows for the nine months ended September 28, 2019 and September 29, 2018.
 
 i 
Use of Estimates—Preparation of these consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities and reported amounts of revenue and expenses. Such estimates include the valuation of accounts receivable, inventories, valuation of deferred tax assets, goodwill, intangibles and other long-lived assets, pension and other postretirement obligations and asset retirement obligations. Estimates also include revenue earned on contracts and costs to complete contracts. Most of the Company’s paving and related services are performed under fixed unit-price contracts with state and local governmental entities. Management regularly evaluates its estimates and assumptions based on historical experience and other factors, including the current economic environment. As future events and their effects cannot be determined with precision, actual results can differ significantly from estimates made. Changes in estimates, including those resulting from continuing changes in the economic environment, are reflected in the Company’s consolidated financial statements when the change in estimate occurs.
 
 i 
Business and Credit Concentrations—The Company’s operations are conducted primarily across  i 23 U.S. states and in British Columbia, Canada, with the most significant revenue generated in Texas, Utah, Kansas and Missouri. The Company’s accounts receivable consist primarily of amounts due from customers within these areas. Therefore, collection of these accounts is dependent on the economic conditions in the aforementioned states, as well as specific situations affecting individual customers. Credit granted within the Company’s trade areas has been granted to many customers, and management does not
 / 




believe that a significant concentration of credit exists with respect to any individual customer or group of customers. No single customer accounted for more than 10% of the Company’s total revenue in the three and nine months ended September 28, 2019 or September 29, 2018.
 
 i 
Revenue Recognition—We earn revenue from the sale of products, which primarily include aggregates, cement, ready-mix concrete and asphalt, but also include concrete products and plastics components, and from the provision of services, which are primarily paving and related services, but also include landfill operations, the receipt and disposal of waste that is converted to fuel for use in our cement plants and underground storage space rental.
 
Products
 
We earn revenue from the sale of products, which primarily include aggregates, cement, ready-mix concrete and asphalt, but also include concrete products, net of discounts or allowances, if any, and freight and delivery charges billed to customers. Freight and delivery charges associated with cement sales are recorded on a net basis together with freight costs within cost of sales. Revenue for product sales is recognized when evidence of an arrangement exists and when control passes, which generally is when the product is shipped.
 
Services
 
We earn revenue from the provision of services, which are primarily paving and related services, but also include landfill operations, and the receipt and disposal of waste that is converted to fuel for use in our cement plants. Revenue from the receipt of waste fuels is recognized when the waste is accepted and a corresponding liability is recognized for the costs to process the waste into fuel for the manufacturing of cement or to ship the waste offsite for disposal in accordance with applicable regulations.
 
Revenue derived from paving and related services is recognized using the percentage of completion method, which approximates progress towards completion. Under the percentage of completion method, we recognize paving and related services revenue as services are rendered. The majority of our construction service contracts are completed within one year, but may occasionally extend beyond this time frame. We estimate profit as the difference between total estimated revenue and total estimated cost of a contract and recognize that profit over the life of the contract based on input measures. We generally measure progress toward completion on long-term paving and related services contracts based on the proportion of costs incurred to date relative to total estimated costs at completion. We include revisions of estimated profits on contracts in earnings under the cumulative catch-up method, under which the effect of revisions in estimates is recognized immediately. If a revised estimate of contract profitability reveals an anticipated loss on the contract, we recognize the loss in the period it is identified.
 
The percentage of completion method of accounting involves the use of various estimating techniques to project costs at completion, and in some cases includes estimates of recoveries asserted against the customer for changes in specifications or other disputes. Contract estimates involve various assumptions and projections relative to the outcome of future events over multiple periods, including future labor productivity and availability, the nature and complexity of the work to be performed, the cost and availability of materials, the effect of delayed performance, and the availability and timing of funding from the customer. These estimates are based on our best judgment. A significant change in one or more of these estimates could affect the profitability of one or more of our contracts. We review our contract estimates regularly to assess revisions in contract values and estimated costs at completion. Inherent uncertainties in estimating costs make it at least reasonably possible that the estimates used will change within the near term and over the life of the contracts. No material adjustments to a contract were recognized in the three and nine months ended September 28, 2019.
 
Costs and estimated earnings in excess of billings are composed principally of revenue recognized on contracts on the percentage of completion method for which billings had not been presented to customers because the amounts were not billable under the contract terms at the balance sheet date. In accordance with the contract terms, the unbilled receivables at the balance sheet date are expected to be billed in following periods. Billings in excess of costs and estimated earnings represent billings in excess of revenue recognized. Contract assets and liabilities are netted on a contract-by-contract basis.
 
 i 
New Accounting Standards — In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on the balance sheet. Lessees are required to disclose more quantitative and qualitative information about the leases than current U.S. GAAP requires. The ASU and subsequent amendments issued in 2018 are effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. We adopted the standard effective December 30, 2018 using the modified retrospective approach.





The modified retrospective approach provides a method for recording existing leases at adoption. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. In addition, we elected the hindsight practical expedient to determine the lease term for existing leases.

The most significant impact upon adoption was the recognition of $ i 36.8 million of operating lease right-of-use assets and $ i 36.8 million operating lease liabilities. The standard had no material impact on our statement of cash flows.

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, allowing more financial and nonfinancial hedging strategies to be eligible for hedge accounting. The ASU is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. The adoption of this new ASU did not have a material impact on our consolidated financial results.

In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, increasing the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The ASU is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. The adoption of this new ASU did not have a material impact on our consolidated financial results.

2.  i GOODWILL AND INTANGIBLES
 
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.
 
 i 
Changes in the carrying amount of goodwill, by reportable segment, from December 29, 2018 to September 28, 2019 are summarized as follows:

 
 
West
 
East
 
Cement
 
Total  
Balance, December 29, 2018
 
$
 i 581,567

 
$
 i 406,805

 
$
 i 204,656

 
$
 i 1,193,028

Acquisitions (1)
 
 i 1,167

 
 i 3,621

 
 i —

 
 i 4,788

Foreign currency translation adjustments
 
 i 1,680

 
 i —

 
 i —

 
 i 1,680

Balance, September 28, 2019
 
$
 i 584,414

 
$
 i 410,426

 
$
 i 204,656

 
$
 i 1,199,496

_______________________________________________________________________
(1) Reflects goodwill from 2019 acquisitions and working capital adjustments from prior year acquisitions.
 / 

The Company’s intangible assets are primarily composed of goodwill, mineral lease agreements and reserve rights. The assets related to mineral lease agreements reflect the submarket royalty rates paid under agreements, primarily for extracting aggregates. The values were determined as of the respective acquisition dates by a comparison of market-royalty rates. The reserve rights relate to aggregate reserves to which the Company has the rights of ownership, but does not own the reserves. The intangible assets are amortized on a straight-line basis over the lives of the leases.  i The following table shows intangible assets by type and in total:
 
 
 
September 28, 2019
 
December 29, 2018
 
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Carrying
Amount
Mineral leases
 
$
 i 19,064

 
$
( i 6,124
)
 
$
 i 12,940

 
$
 i 19,064

 
$
( i 5,259
)
 
$
 i 13,805

Reserve rights
 
 i 6,234

 
( i 2,174
)
 
 i 4,060

 
 i 6,234

 
( i 1,940
)
 
 i 4,294

Trade names
 
 i 1,000

 
( i 933
)
 
 i 67

 
 i 1,000

 
( i 858
)
 
 i 142

Other
 
 i 7,814

 
( i 435
)
 
 i 7,379

 
 i 409

 
( i 190
)
 
 i 219

Total intangible assets
 
$
 i 34,112

 
$
( i 9,666
)
 
$
 i 24,446

 
$
 i 26,707

 
$
( i 8,247
)
 
$
 i 18,460


 




Amortization expense totaled $ i 0.6 million and $ i 1.4 million for the three and nine months ended September 28, 2019, respectively, and $ i 0.5 million and $ i 1.1 million for the three and nine months September 29, 2018, respectively.  i The estimated amortization expense for the intangible assets for each of the five years subsequent to September 28, 2019 is as follows:
 
2019 (three months)
$
 i 711

2020
 i 2,552

2021
 i 2,164

2022
 i 2,168

2023
 i 2,035

2024
 i 1,940

Thereafter
 i 12,876

Total
$
 i 24,446



In September 2018, the Company sold a non-core business in the West segment, resulting in cash proceeds of $ i 21.6 million, and a total gain on the disposition of the business of $ i 12.1 million.
 
3.  i REVENUE RECOGNITION
 
We derive our revenue predominantly by selling construction materials, products and providing paving and related services. Construction materials consist of aggregates and cement. Products consist of related downstream products, including ready-mix concrete, asphalt paving mix and concrete products. Paving and related service revenue is generated primarily from the asphalt paving services that we provide.
 
 i 
Revenue by product for the three and nine months ended September 28, 2019 and September 29, 2018 is as follows:
 
 
Three months ended
 
Nine months ended
 
 
September 28,
 
September 29,
 
September 28,
 
September 29,
 
 
2019
 
2018
 
2019
 
2018
Revenue by product*:
 
 
 
 
 
 
 
 
Aggregates
 
$
 i 137,528

 
$
 i 109,621

 
$
 i 354,050

 
$
 i 280,761

Cement
 
 i 92,482

 
 i 87,909

 
 i 202,780

 
 i 197,439

Ready-mix concrete
 
 i 172,758

 
 i 164,866

 
 i 444,258

 
 i 447,490

Asphalt
 
 i 137,753

 
 i 125,153

 
 i 254,156

 
 i 231,666

Paving and related services
 
 i 138,083

 
 i 146,477

 
 i 267,732

 
 i 288,119

Other
 
 i 53,478

 
 i 60,635

 
 i 142,636

 
 i 164,497

Total revenue
 
$
 i 732,082

 
$
 i 694,661

 
$
 i 1,665,612

 
$
 i 1,609,972

*Revenue from liquid asphalt terminals is included in asphalt revenue.
 / 
 
 i 
The following table outlines the significant changes in contract assets and contract liability balances from December 29, 2018 to September 28, 2019. Also included in the table is the net change in estimate as a percentage of aggregate revenue for such contracts:
 
 
Costs and estimated
 
Billings in excess
 
 
earnings in
 
of costs and
 
 
excess of billings
 
estimated earnings
Balance - December 29, 2018
 
$
 i 18,602

 
$
 i 11,840

Changes in revenue billed, contract price or cost estimates
 
 i 31,085

 
 i 618

Other
 
 i 28

 
 i 18

Balance - September 28, 2019
 
$
 i 49,715

 
$
 i 12,476


 / 

 i 
Accounts receivable, net consisted of the following as of September 28, 2019 and December 29, 2018:
 




 
 
September 28,
 
December 29,
 
 
2019
 
2018
Trade accounts receivable
 
$
 i 251,426

 
$
 i 157,601

Construction contract receivables
 
 i 71,903

 
 i 47,994

Retention receivables
 
 i 17,227

 
 i 15,010

Receivables from related parties
 
 i 1,783

 
 i 629

Accounts receivable
 
 i 342,339

 
 i 221,234

Less: Allowance for doubtful accounts
 
( i 5,279
)
 
( i 6,716
)
Accounts receivable, net
 
$
 i 337,060

 
$
 i 214,518


 
Retention receivables are amounts earned by the Company but held by customers until paving and related service contracts and projects are near completion or fully completed. Amounts are generally billed and collected within  i one year.
 
4.  i INVENTORIES
 
 i 
Inventories consisted of the following as of September 28, 2019 and December 29, 2018:
 
 
September 28, 2019
 
December 29, 2018
Aggregate stockpiles
 
$
 i 142,618

 
$
 i 151,300

Finished goods
 
 i 25,240

 
 i 34,993

Work in process
 
 i 7,478

 
 i 7,478

Raw materials
 
 i 21,679

 
 i 20,080

Total
 
$
 i 197,015

 
$
 i 213,851

 

5.  i ACCRUED EXPENSES
 
 i 
Accrued expenses consisted of the following as of September 28, 2019 and December 29, 2018:
 
 
September 28, 2019
 
December 29, 2018
Interest
 
$
 i 16,178

 
$
 i 26,223

Payroll and benefits
 
 i 27,860

 
 i 15,952

Finance lease obligations
 
 i 17,288

 
 i 15,557

Insurance
 
 i 17,035

 
 i 13,625

Non-income taxes
 
 i 16,495

 
 i 7,674

Professional fees
 
 i 1,051

 
 i 1,408

Other (1)
 
 i 22,327

 
 i 19,590

Total
 
$
 i 118,234

 
$
 i 100,029

_______________________________________________________________________
(1) Consists primarily of subcontractor and working capital settlement accruals.
 / 





6.  i DEBT
 
 i 
Debt consisted of the following as of September 28, 2019 and December 29, 2018:
 
 
September 28, 2019
 
December 29, 2018
Term Loan, due 2024:
 
 
 
 
$625.8 million and $630.6 million, net of $1.2 million and $1.3 million discount at September 28, 2019 and December 29, 2018, respectively
 
$
 i 624,672

 
$
 i 629,268

8 1/2% Senior Notes, due 2022
 
 i —

 
 i 250,000

6 1/8% Senior Notes, due 2023:
 
 

 
 

$650.0 million, net of $1.0 million and $1.1 million discount at September 28, 2019 and December 29, 2018, respectively
 
 i 649,073

 
 i 648,891

5 1/8% Senior Notes, due 2025
 
 i 300,000

 
 i 300,000

6 1/2% Senior Notes, due 2027
 
 i 300,000

 
 i —

Total
 
 i 1,873,745

 
 i 1,828,159

Current portion of long-term debt
 
 i 6,354

 
 i 6,354

Long-term debt
 
$
 i 1,867,391

 
$
 i 1,821,805


 / 
 
 i 
The contractual payments of long-term debt, including current maturities, for the five years subsequent to September 28, 2019, are as follows:
2019 (three months)
$
 i 1,588

2020
 i 7,942

2021
 i 6,354

2022
 i 6,354

2023
 i 656,354

2024
 i 597,252

Thereafter
 i 600,000

Total
 i 1,875,844

Less: Original issue net discount
( i 2,099
)
Less: Capitalized loan costs
( i 13,977
)
Total debt
$
 i 1,859,768


 / 
 
Senior Notes—On March 15, 2019, Summit LLC and Summit Materials Finance Corp., an indirect wholly-owned subsidiary of Summit LLC (“Finance Corp.” and together with Summit LLC, the “Issuers”) issued $ i 300.0 million in aggregate principal amount of  i 6.500% senior notes due March 15, 2027 (the “2027 Notes”). The 2027 Notes were issued at  i 100.0% of their par value with proceeds of $ i 296.3 million, net of related fees and expenses. The 2027 Notes were issued under an indenture dated March 25, 2019 (the "2019 Indenture"). The 2019 Indenture contains covenants limiting, among other things, Summit LLC and its restricted subsidiaries’ ability to incur additional indebtedness or issue certain preferred shares, pay dividends, redeem stock or make other distributions, make certain investments, sell or transfer certain assets, create liens, consolidate, merge, sell or otherwise dispose of all or substantially all of its assets, enter into certain transactions with affiliates, and designate subsidiaries as unrestricted subsidiaries. The 2019 Indenture also contains customary events of default. Interest on the 2027 Notes is payable semi-annually on March 15 and September 15 of each year commencing on September 15, 2019.

In March 2019, using the proceeds from the 2027 Notes, all of the outstanding $ i 250.0 million  i 8.500% senior notes due 2022 (the “2022 Notes”) were redeemed at a price equal to par plus an applicable premium and the indenture under which the 2022 Notes were issued was satisfied and discharged. As a result of the extinguishment, charges of $ i 14.6 million were recognized in the quarter ended March 30, 2019, which included charges of$ i 11.7 million for the applicable redemption premium and $ i 2.9 million for the write-off of deferred financing fees.

In 2017, the Issuers issued $ i 300.0 million of  i 5.125% senior notes due June 1, 2025 (the “2025 Notes”). The 2025 Notes were issued at  i 100.0% of their par value with proceeds of $ i 295.4 million, net of related fees and expenses. The 2025 Notes were issued under an indenture dated June 1, 2017, the terms of which are generally consistent with the 2019 Indenture. Interest on the 2025 Notes is payable semi-annually on June 1 and December 1 of each year commencing on December 1, 2017.
 
In 2015, the Issuers issued $ i 650.0 million of  i 6.125% senior notes due July 2023 (the “2023 Notes” and collectively with the 2025 Notes and the 2027 Notes, the “Senior Notes”). Of the aggregate $ i 650.0 million of 2023 Notes, $ i 350.0 million were




issued at par and $ i 300.0 million were issued at  i 99.375% of par. The 2023 Notes were issued under an indenture dated July 8, 2015, the terms of which are generally consistent with the 2019 Indenture. Interest on the 2023 Notes is payable semi-annually in arrears on January 15 and July 15 of each year.
 
As of September 28, 2019 and December 29, 2018, the Company was in compliance with all financial covenants under the applicable indentures.
 
Senior Secured Credit Facilities— Summit LLC has credit facilities that provide for term loans in an aggregate amount of $ i 650.0 million and revolving credit commitments in an aggregate amount of $ i 345.0 million (the “Senior Secured Credit Facilities”). Under the Senior Secured Credit Facilities, required principal repayments of  i 0.25% of the refinanced aggregate amount of term debt are due on the last business day of each March, June, September and December commencing with the March 2018 payment. The unpaid principal balance is due in full on the maturity date, which is November 21, 2024.
 
On February 25, 2019, Summit LLC entered into Incremental Amendment No. 4 to the credit agreement governing the Senior Secured Credit Facilities (the “Credit Agreement”) which, among other things, increased the total amount available under the revolving credit facility to $ i 345.0 million and extended the maturity date of the Credit Agreement with respect to the revolving credit commitments to February 25, 2024. During 2018 and 2017, Summit LLC entered into three different amendments to the Credit Agreement, which among other things, reduced the applicable margin in respect to the outstanding principal amount at the time of the respective amendments.
 
The revolving credit facility bears interest per annum equal to, at Summit LLC’s option, either (i) a base rate determined by reference to the highest of (a) the federal funds rate plus  i 0.50%, (b) the prime rate of Bank of America, N.A. and (c) LIBOR plus  i 1.00%, plus an applicable margin of  i 2.00% for base rate loans or (ii) a LIBOR rate determined by reference to Reuters prior to the interest period relevant to such borrowing adjusted for certain additional costs plus an applicable margin of  i 3.00% for LIBOR rate loans.
 
There were  i no outstanding borrowings under the revolving credit facility as of September 28, 2019 and December 29, 2018, with borrowing capacity of $ i 329.8 million remaining as of September 28, 2019, which is net of $ i 15.2 million of outstanding letters of credit. The outstanding letters of credit are renewed annually and support required bonding on construction projects, large leases, workers compensation claims and the Company’s insurance liabilities.
 
Summit LLC’s Consolidated First Lien Net Leverage Ratio, as such term is defined in the Credit Agreement, should be no greater than  i 4.75:1.0 as of each quarter-end. As of September 28, 2019 and December 29, 2018, Summit LLC was in compliance with all financial covenants.
 
Summit LLC’s wholly-owned domestic subsidiary companies, subject to certain exclusions and exceptions, are named as subsidiary guarantors of the Senior Notes and the Senior Secured Credit Facilities. In addition, Summit LLC has pledged substantially all of its assets as collateral, subject to certain exclusions and exceptions, for the Senior Secured Credit Facilities.

 i 
The following table presents the activity for the deferred financing fees for the nine months ended September 28, 2019 and September 29, 2018:
 
Deferred financing fees
Balance—December 29, 2018
$
 i 15,475

Loan origination fees
 i 6,312

Amortization
( i 2,668
)
Write off of deferred financing fees
( i 2,851
)
Balance—September 28, 2019
$
 i 16,268

 
 
 
 
Balance - December 30, 2017
$
 i 19,033

Loan origination fees
 i 550

Amortization
( i 3,074
)
Balance - September 29, 2018
$
 i 16,509


 / 
 
Other—On January 15, 2015, the Company’s wholly-owned subsidiary in British Columbia, Canada entered into an agreement with HSBC for a (i) $ i 6.0 million Canadian dollar (“CAD”) revolving credit commitment to be used for operating activities that bears interest per annum equal to the bank’s prime rate plus  i 0.20%, (ii) $ i 0.5 million CAD revolving credit commitment to be




used for capital equipment that bears interest per annum at the bank’s prime rate plus  i 0.90% and (iii) $ i 0.3 million CAD revolving credit commitment to provide guarantees on behalf of that subsidiary. There were  i no amounts outstanding under this agreement as of September 28, 2019 or December 29, 2018.
 
7.  i INCOME TAXES
 
Summit LLC is a limited liability company and passes its tax attributes for federal and state tax purposes to its parent company and is generally not subject to federal or state income tax. However, certain subsidiary entities file federal, state and Canadian income tax returns due to their status as taxable entities in the respective jurisdiction. The effective income tax rate for the C Corporations differs from the statutory federal rate primarily due to (1) tax depletion expense in excess of the expense recorded under U.S. GAAP, (2) state income taxes and the effect of graduated tax rates and (3) various other items, such as limitations on meals and entertainment and other costs.  The effective income tax rate for the Canadian subsidiary is not significantly different from its historical effective tax rate.
 
Summit LLC and its subsidiaries expect additional unrecognized tax benefits related to the deductibility of interest expense in 2019 that if recognized would affect the annual effective tax rate, and included that in its estimate of those amounts in its annual effective tax rate. We did not recognize interest or penalties related to this amount as it is offset by other attributes.  i No material interest or penalties were recognized in income tax expense during the three and nine months ended September 28, 2019 and September 29, 2018. No uncertain tax benefits were recognized in the three and nine months ended September 29, 2018.

8.  i MEMBERS’ INTEREST
 
Accumulated other comprehensive income (loss) — i The changes in each component of accumulated other comprehensive income (loss) consisted of the following:
 
 
 
 
 
 
 
 
 
Accumulated
 
 
 
 
Foreign currency
 
 
 
other
 
 
Change in
 
translation
 
Cash flow hedge
 
comprehensive
 
 
retirement plans
 
adjustments
 
adjustments
 
(loss) income
Balance — December 29, 2018
 
$
( i 4,392
)
 
$
( i 19,370
)
 
$
 i 146

 
$
( i 23,616
)
Foreign currency translation adjustment
 
—

 
 i 3,263

 
—

 
 i 3,263

Loss on cash flow hedges
 
—

 
—

 
( i 148
)
 
( i 148
)
Balance — September 28, 2019
 
$
( i 4,392
)
 
$
( i 16,107
)
 
$
( i 2
)
 
$
( i 20,501
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance - December 30, 2017
 
$
( i 6,053
)
 
$
( i 10,022
)
 
$
( i 1,060
)
 
$
( i 17,135
)
Foreign currency translation adjustment
 
—

 
( i 3,179
)
 
—

 
( i 3,179
)
Income on cash flow hedges
 
—

 
—

 
 i 1,443

 
 i 1,443

Balance - September 29, 2018
 
$
( i 6,053
)
 
$
( i 13,201
)
 
$
 i 383

 
$
( i 18,871
)

 




9.  i SUPPLEMENTAL CASH FLOW INFORMATION
 
 i 
Supplemental cash flow information is as follows:
 
 
 
Nine months ended
 
 
September 28, 2019
 
September 29, 2018
Cash payments:
 
 
 
 
Interest
 
$
 i 89,759

 
$
 i 79,367

(Refund) payments for income taxes, net
 
( i 912
)
 
 i 3,362

Operating cash payments on operating leases
 
 i 8,188

 
N/A

Operating cash payments on finance leases
 
 i 2,322

 
N/A

Finance cash payments on finance leases
 
 i 9,806

 
N/A

Non cash financing activities:
 
 
 
 
Right of use assets obtained in exchange for operating lease obligations
 
$
 i 4,387

 
N/A

Right of use assets obtained in exchange for finance leases obligations
 
 i 18,586

 
N/A


 / 
 
10.  i  i 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 entered into or reassessed after the adoption of ASC 842, we combine lease and nonlease components. While we also own mineral leases for mining operations, those leases are outside the scope of ASC 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.  i  i  i  i The components of lease expense were as follows: /  /  / 




 
Three months ended
Nine months ended
 
September 28, 2019
September 28, 2019
Operating lease cost
$
 i 2,608

$
 i 7,757

Variable lease cost
 i 151

 i 366

Short-term lease cost
 i 11,871

 i 28,043

Financing lease cost:
 
 
Amortization of right-of-use assets
 i 2,612

 i 7,905

Interest on lease liabilities
 i 773

 i 2,404

Total lease cost
$
 i 18,015

$
 i 46,475

 
 
 
September 28, 2019
Supplemental balance sheet information related to leases:
 
Operating leases:
 
Operating lease right-of-use assets
$
 i 33,045

 
 
Current operating lease liabilities
$
 i 8,609

Noncurrent operating lease liabilities
 i 25,329

Total operating lease liabilities
$
 i 33,938

Finance leases:
 
Property and equipment, gross
$
 i 80,197

Less accumulated depreciation
( i 23,552
)
Property and equipment, net
$
 i 56,645

 
 
Current finance lease liabilities
$
 i 17,288

Long-term finance lease liabilities
 i 39,093

Total finance lease liabilities
$
 i 56,381

 
 
 
September 28, 2019
 
Lease Term
Discount Rate
 
(years)
(%)
Weighted average:
 
 
Operating leases
 i 7.7

 i 5.6
%
Finance lease
 i 2.7

 i 5.5
%
 
 
 
Maturities of lease liabilities were as follows:
 
 
 
Operating Leases
Finance Leases
2019 (three months)
$
 i 2,551

$
 i 5,372

2020
 i 9,800

 i 17,870

2021
 i 7,813

 i 20,578

2022
 i 4,717

 i 12,240

2023
 i 3,570

 i 1,629

2024
 i 1,901

 i 2,131

Thereafter
 i 11,820

 i 2,662

Total lease payments
 i 42,172

 i 62,482

Less imputed interest
( i 8,234
)
( i 6,101
)
Present value of lease payments
$
 i 33,938

$
 i 56,381



 i 
As previously disclosed, our future minimum lease payment obligations as of December 29, 2018 were as follows:




 
Operating Leases
2019
$
 i 9,479

2020
 i 8,101

2021
 i 6,701

2022
 i 4,279

2023
 i 3,411



11.  i COMMITMENTS AND CONTINGENCIES
 
The Company is party to certain legal actions arising from the ordinary course of business activities. Accruals are recorded when the outcome is probable and can be reasonably estimated. While the ultimate results of claims and litigation cannot be predicted with certainty, management expects that the ultimate resolution of all current pending or threatened claims and litigation will not have a material effect on the Company’s consolidated financial position, results of operations or liquidity. The Company records legal fees as incurred.

In March 2018, we were notified of an investigation by the Canadian Competition Bureau (the “CCB”) into pricing practices by certain asphalt paving contractors in British Columbia, including Winvan Paving, Ltd. (“Winvan”). We believe the investigation is focused on time periods prior to our April 2017 acquisition of Winvan and we are cooperating with the CCB.
 
Environmental Remediation and Site Restoration—The Company’s operations are subject to and affected by federal, state, provincial and local laws and regulations relating to the environment, health and safety and other regulatory matters. These operations require environmental operating permits, which are subject to modification, renewal and revocation. The Company regularly monitors and reviews its operations, procedures and policies for compliance with these laws and regulations. Despite these compliance efforts, risk of environmental liability is inherent in the operation of the Company’s business, as it is with other companies engaged in similar businesses and there can be no assurance that environmental liabilities or noncompliance will not have a material adverse effect on the Company’s consolidated financial condition, results of operations or liquidity.
 
The Company has asset retirement obligations arising from regulatory and contractual requirements to perform reclamation activities at the time certain quarries and landfills are closed. As of September 28, 2019 and December 29, 2018, $ i 27.1 million and $ i 26.9 million, respectively, were included in other noncurrent liabilities on the consolidated balance sheets and $ i 4.8 million and $ i 4.1 million, respectively, were included in accrued expenses for future reclamation costs. The total undiscounted anticipated costs for site reclamation as of September 28, 2019 and December 29, 2018 were $ i 89.4 million and $ i 92.5 million, respectively.
 
Other—The Company is obligated under various firm purchase commitments for certain raw materials and services that are in the ordinary course of business. Management does not expect any significant changes in the market value of these goods and services during the commitment period that would have a material adverse effect on the financial condition, results of operations and cash flows of the Company. The terms of the purchase commitments generally approximate  i one year.
 
12.  i FAIR VALUE
 
Fair Value Measurements—Certain acquisitions made by the Company require the payment of contingent amounts of purchase consideration. These payments are contingent on specified operating results being achieved in periods subsequent to the acquisition and will only be made if earn-out thresholds are achieved. Contingent consideration obligations are measured at fair value each reporting period. Any adjustments to fair value are recognized in earnings in the period identified.
 
The Company entered into interest rate derivatives on $ i 200.0 million of its term loan borrowings to add stability to interest expense and to manage its exposure to interest rate movements. The interest rate derivative expired in September 2019. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (loss) and will be subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings.  i The fair value of contingent consideration and derivatives as of September 28, 2019 and December 29, 2018 was: 




 
 
September 28, 2019
 
December 29, 2018
Current portion of acquisition-related liabilities and Accrued expenses:
 
 
 
 
Contingent consideration
 
$
 i 2,674

 
$
 i 1,394

Cash flow hedges
 
 i —

 
 i —

Acquisition-related liabilities and Other noncurrent liabilities:
 
 
 
 
Contingent consideration
 
$
 i 1,270

 
$
 i 5,175

Cash flow hedges
 
 i —

 
 i —


 
The fair value of contingent consideration was based on unobservable, or Level 3, inputs, including projected probability-weighted cash payments and a  i 10.0% discount rate, which reflects a market discount rate. Changes in fair value may occur as a result of a change in actual or projected cash payments, the probability weightings applied by the Company to projected payments or a change in the discount rate. Significant increases or decreases in any of these inputs in isolation could result in a lower, or higher, fair value measurement. The fair value of the cash flow hedges is based on observable, or Level 2, inputs such as interest rates, bond yields and prices in inactive markets. There were  i no material valuation adjustments to contingent consideration or derivatives as of September 28, 2019 and September 29, 2018.

Financial Instruments—The Company’s financial instruments include debt and certain acquisition-related liabilities (deferred consideration and noncompete obligations).  i The carrying value and fair value of these financial instruments as of September 28, 2019 and December 29, 2018 was:
 
 
September 28, 2019
 
December 29, 2018
 
 
Fair Value
 
Carrying Value
 
Fair Value
 
Carrying Value
Level 2
 
 
 
 
 
 
 
 
Long-term debt(1)
 
$
 i 1,914,189

 
$
 i 1,873,745

 
$
 i 1,777,722

 
$
 i 1,828,159

Level 3
 
 
 
 
 
 
 
 
Current portion of deferred consideration and noncompete obligations(2)
 
 i 29,224

 
 i 29,224

 
 i 30,376

 
 i 30,376

Long term portion of deferred consideration and noncompete obligations(3)
 
 i 37,375

 
 i 37,375

 
 i 40,179

 
 i 40,179

(1)
$ i 6.4 million were included in current portion of debt as of September 28, 2019 and December 29, 2018.
(2)
Included in current portion of acquisition-related liabilities on the consolidated balance sheets.
(3)
Included in acquisition-related liabilities on the consolidated balance sheets.

The fair value of debt was determined based on observable, or Level 2 inputs, such as interest rates, bond yields and quoted prices in inactive markets. The fair values of the deferred consideration and noncompete obligations were determined based on unobservable, or Level 3, inputs, including the cash payment terms in the purchase agreements and a discount rate reflecting the Company’s credit risk. The discount rate used is generally consistent with that used when the obligations were initially recorded.
 
Securities with a maturity of three months or less are considered cash equivalents and the fair value of these assets approximates their carrying value.
 
13.  i SEGMENT INFORMATION
 
The Company has  i three operating segments: West, East, and Cement, which are its reporting segments. These segments are consistent with the Company’s management reporting structure.
 
The operating results of each segment are regularly reviewed and evaluated by the Chief Executive Officer, our Company’s Chief Operating Decision Maker (“CODM”). The CODM primarily evaluates the performance of the Company’s segments and allocates resources to them based on a segment profit metric that we call Adjusted EBITDA, which is computed as earnings from continuing operations before interest, taxes, depreciation, depletion, amortization, accretion, share-based compensation, and transaction costs, as well as various other non-recurring, non-cash amounts.
 
The West and East segments have several acquired subsidiaries that are engaged in various activities including quarry mining, aggregate production and contracting. The Cement segment is engaged in the production of Portland cement. Assets employed by each segment include assets directly identified with those operations. Corporate assets consist primarily of cash, property,




plant and equipment for corporate operations and other assets not directly identifiable with a reportable business segment. The accounting policies applicable to each segment are consistent with those used in the consolidated financial statements.

 i 
The following tables display selected financial data for the Company’s reportable business segments as of September 28, 2019 and December 29, 2018 and for the three and nine months ended September 28, 2019 and September 29, 2018:
 
 
 
Three months ended
 
Nine months ended
 
 
September 28,
 
September 29,
 
September 28,
 
September 29,
 
 
2019
 
2018
 
2019
 
2018
Revenue*:
 
 
 
 
 
 
 
 
West
 
$
 i 366,504

 
$
 i 367,912

 
$
 i 848,661

 
$
 i 871,338

East
 
 i 266,587

 
 i 232,777

 
 i 596,107

 
 i 525,270

Cement
 
 i 98,991

 
 i 93,972

 
 i 220,844

 
 i 213,364

Total revenue
 
$
 i 732,082

 
$
 i 694,661

 
$
 i 1,665,612

 
$
 i 1,609,972

*Intercompany sales are immaterial and the presentation above only reflects sales to external customers.
 
 
 
Three months ended
 
Nine months ended
 
 
September 28,
 
September 29,
 
September 28,
 
September 29,
 
 
2019
 
2018
 
2019
 
2018
Income from operation before taxes
 
$
 i 103,956

 
$
 i 94,926

 
$
 i 59,401

 
$
 i 71,756

Interest expense
 
 i 28,800

 
 i 28,720

 
 i 88,020

 
 i 86,066

Depreciation, depletion and amortization
 
 i 54,575

 
 i 53,494

 
 i 162,417

 
 i 149,439

Accretion
 
 i 552

 
 i 480

 
 i 1,723

 
 i 1,224

Loss on debt financings
 
 i —

 
 i —

 
 i 14,565

 
 i 149

Gain on sale of business
 
 i —

 
( i 12,108
)
 
 i —

 
( i 12,108
)
Transaction costs
 
 i 751

 
 i 1,260

 
 i 1,449

 
 i 3,817

Non-cash compensation
 
 i 4,819

 
 i 5,643

 
 i 15,424

 
 i 19,833

Other
 
( i 136
)
 
( i 409
)
 
( i 2,628
)
 
( i 7,316
)
Total Adjusted EBITDA
 
$
 i 193,317

 
$
 i 172,006

 
$
 i 340,371

 
$
 i 312,860

 
 
 
 
 
 
 
 
 
Total Adjusted EBITDA by Segment:
 
 
 
 
 
 
 
 
West
 
$
 i 81,936

 
$
 i 73,916

 
$
 i 151,054

 
$
 i 151,316

East
 
 i 76,825

 
 i 58,305

 
 i 134,479

 
 i 100,497

Cement
 
 i 42,683

 
 i 44,299

 
 i 75,537

 
 i 82,626

Corporate and other
 
( i 8,127
)
 
( i 4,514
)
 
( i 20,699
)
 
( i 21,579
)
Total Adjusted EBITDA
 
$
 i 193,317

 
$
 i 172,006

 
$
 i 340,371

 
$
 i 312,860

 
 
 
Nine months ended
 
 
September 28, 2019
 
September 29, 2018
Purchases of property, plant and equipment
 
 
 
 
West
 
$
 i 61,679

 
$
 i 104,217

East
 
 i 61,830

 
 i 51,968

Cement
 
 i 15,087

 
 i 21,621

Total reportable segments
 
 i 138,596

 
 i 177,806

Corporate and other
 
 i 1,166

 
 i 5,946

Total purchases of property, plant and equipment
 
$
 i 139,762

 
$
 i 183,752

 
 / 




 
 
Three months ended
 
Nine months ended
 
 
September 28,
 
September 29,
 
September 28,
 
September 29,
 
 
2019
 
2018
 
2019
 
2018
Depreciation, depletion, amortization and accretion:
 
 
 
 
 
 
 
 
West
 
$
 i 23,307

 
$
 i 23,289

 
$
 i 70,156

 
$
 i 68,029

East
 
 i 19,668

 
 i 19,429

 
 i 59,719

 
 i 54,982

Cement
 
 i 11,111

 
 i 10,682

 
 i 31,280

 
 i 25,733

Total reportable segments
 
 i 54,086

 
 i 53,400

 
 i 161,155

 
 i 148,744

Corporate and other
 
 i 1,041

 
 i 574

 
 i 2,985

 
 i 1,919

Total depreciation, depletion, amortization and accretion
 
$
 i 55,127

 
$
 i 53,974

 
$
 i 164,140

 
$
 i 150,663


 
 
September 28, 2019
 
December 29, 2018
Total assets:
 
 
 
 
West
 
$
 i 1,440,010

 
$
 i 1,370,501

East
 
 i 1,334,247

 
 i 1,253,640

Cement
 
 i 879,140

 
 i 877,586

Total reportable segments
 
 i 3,653,397

 
 i 3,501,727

Corporate and other
 
 i 196,085

 
 i 131,517

Total
 
$
 i 3,849,482

 
$
 i 3,633,244


 
14.  i GUARANTOR AND NON-GUARANTOR FINANCIAL INFORMATION
 
Summit LLC’s domestic wholly-owned subsidiary companies other than Finance Corp. are named as guarantors (collectively, the “Guarantors”) of the Senior Notes. Finance Corp. does not and will not have any assets or operations other than as may be incidental to its activities as a co-issuer of the Senior Notes and other indebtedness. Certain other partially-owned subsidiaries and a non-U.S. entity do not guarantee the Senior Notes (collectively, the “Non-Guarantors”). The Guarantors provide a joint and several, full and unconditional guarantee of the Senior Notes.
 
There are no significant restrictions on Summit LLC’s ability to obtain funds from any of the Guarantor Subsidiaries in the form of dividends or loans. Additionally, there are no significant restrictions on a Guarantor Subsidiary’s ability to obtain funds from Summit LLC or its direct or indirect subsidiaries.
 
The following condensed consolidating balance sheets, statements of operations and cash flows are provided for the Issuers, the wholly-owned guarantors and the Non-Guarantors.
 
Earnings from subsidiaries are included in other income in the condensed consolidated statements of operations below. The financial information may not necessarily be indicative of the financial position, results of operations or cash flows had the guarantor or non-guarantor subsidiaries operated as independent entities.





 i 
Condensed Consolidating Balance Sheets
September 28, 2019
 
 
 
 
100%
 
 
 
 
 
 
 
 
 
 
Owned
 
Non-
 
 
 
 
 
 
Issuers
 
Guarantors 
 
Guarantors 
 
Eliminations 
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
 i 178,242

 
$
 i 2,197

 
$
 i 7,069

 
$
( i 4,919
)
 
$
 i 182,589

Accounts receivable, net
 
 i —

 
 i 314,249

 
 i 23,005

 
( i 194
)
 
 i 337,060

Intercompany receivables
 
 i 449,895

 
 i 782,193

 
 i —

 
( i 1,232,088
)
 
 i —

Cost and estimated earnings in excess of billings
 
 i —

 
 i 47,033

 
 i 2,682

 
 i —

 
 i 49,715

Inventories
 
 i —

 
 i 193,195

 
 i 3,820

 
 i —

 
 i 197,015

Other current assets
 
 i 1,811

 
 i 9,382

 
 i 844

 
 i —

 
 i 12,037

Total current assets
 
 i 629,948

 
 i 1,348,249

 
 i 37,420

 
( i 1,237,201
)
 
 i 778,416

Property, plant and equipment, net
 
 i 11,348

 
 i 1,688,612

 
 i 62,347

 
 i —

 
 i 1,762,307

Goodwill
 
 i —

 
 i 1,141,574

 
 i 57,922

 
 i —

 
 i 1,199,496

Intangible assets, net
 
 i —

 
 i 24,446

 
 i —

 
 i —

 
 i 24,446

Operating lease right-of-use assets
 
 i 3,486

 
 i 24,447

 
 i 5,112

 
 i —

 
 i 33,045

Other assets
 
 i 3,499,351

 
 i 160,937

 
 i 799

 
( i 3,609,315
)
 
 i 51,772

Total assets
 
$
 i 4,144,133

 
$
 i 4,388,265

 
$
 i 163,600

 
$
( i 4,846,516
)
 
$
 i 3,849,482

Liabilities and Member’s Interest
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
Current portion of debt
 
$
 i 6,354

 
$
 i —

 
$
 i —

 
$
 i —

 
$
 i 6,354

Current portion of acquisition-related liabilities
 
 i —

 
 i 31,898

 
 i —

 
 i —

 
 i 31,898

Accounts payable
 
 i 3,318

 
 i 138,284

 
 i 11,435

 
( i 194
)
 
 i 152,843

Accrued expenses
 
 i 39,361

 
 i 80,757

 
 i 3,035

 
( i 4,919
)
 
 i 118,234

Current operating lease liabilities
 
 i 750

 
 i 6,796

 
 i 1,063

 
 i —

 
 i 8,609

Intercompany payables
 
 i 782,697

 
 i 429,858

 
 i 19,533

 
( i 1,232,088
)
 
 i —

Billings in excess of costs and estimated earnings
 
 i —

 
 i 11,543

 
 i 933

 
 i —

 
 i 12,476

Total current liabilities
 
 i 832,480

 
 i 699,136

 
 i 35,999

 
( i 1,237,201
)
 
 i 330,414

Long-term debt
 
 i 1,853,414

 
 i —

 
 i —

 
 i —

 
 i 1,853,414

Acquisition-related liabilities
 
 i —

 
 i 38,645

 
 i —

 
 i —

 
 i 38,645

Noncurrent operating lease liabilities
 
 i 3,674

 
 i 17,684

 
 i 3,971

 
 i —

 
 i 25,329

Other noncurrent liabilities
 
 i 3,901

 
 i 205,384

 
 i 78,749

 
( i 137,018
)
 
 i 151,016

Total liabilities
 
 i 2,693,469

 
 i 960,849

 
 i 118,719

 
( i 1,374,219
)
 
 i 2,398,818

Total member's interest
 
 i 1,450,664

 
 i 3,427,416

 
 i 44,881

 
( i 3,472,297
)
 
 i 1,450,664

Total liabilities and member’s interest
 
$
 i 4,144,133

 
$
 i 4,388,265

 
$
 i 163,600

 
$
( i 4,846,516
)
 
$
 i 3,849,482

        
 / 




Condensed Consolidating Balance Sheets
December 29, 2018
 
 
 
 
 
100%
 
 
 
 
 
 
 
 
 
 
Owned
 
Non-
 
 
 
 
 
 
Issuers
 
Guarantors 
 
Guarantors 
 
Eliminations 
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
 i 117,219

 
$
 i 8,440

 
$
 i 7,719

 
$
( i 4,870
)
 
$
 i 128,508

Accounts receivable, net
 
 i —

 
 i 199,538

 
 i 15,165

 
( i 185
)
 
 i 214,518

Intercompany receivables
 
 i 500,765

 
 i 624,427

 
 i —

 
( i 1,125,192
)
 
 i —

Cost and estimated earnings in excess of billings
 
 i —

 
 i 17,711

 
 i 891

 
 i —

 
 i 18,602

Inventories
 
 i —

 
 i 210,149

 
 i 3,702

 
 i —

 
 i 213,851

Other current assets
 
 i 1,953

 
 i 11,308

 
 i 2,800

 
 i —

 
 i 16,061

Total current assets
 
 i 619,937

 
 i 1,071,573

 
 i 30,277

 
( i 1,130,247
)
 
 i 591,540

Property, plant and equipment, net
 
 i 13,300

 
 i 1,709,083

 
 i 57,749

 
 i —

 
 i 1,780,132

Goodwill
 
 i —

 
 i 1,136,785

 
 i 56,243

 
 i —

 
 i 1,193,028

Intangible assets, net
 
 i —

 
 i 18,460

 
 i —

 
 i —

 
 i 18,460

Other assets
 
 i 3,292,851

 
 i 154,080

 
 i 947

 
( i 3,397,794
)
 
 i 50,084

Total assets
 
$
 i 3,926,088

 
$
 i 4,089,981

 
$
 i 145,216

 
$
( i 4,528,041
)
 
$
 i 3,633,244

Liabilities and Member’s Interest
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
Current portion of debt
 
$
 i 6,354

 
$
 i —

 
$
 i —

 
$
 i —

 
$
 i 6,354

Current portion of acquisition-related liabilities
 
 i —

 
 i 31,770

 
 i —

 
 i —

 
 i 31,770

Accounts payable
 
 i 4,712

 
 i 92,132

 
 i 12,349

 
( i 185
)
 
 i 109,008

Accrued expenses
 
 i 45,146

 
 i 57,826

 
 i 1,927

 
( i 4,870
)
 
 i 100,029

Intercompany payables
 
 i 673,175

 
 i 436,564

 
 i 15,453

 
( i 1,125,192
)
 
 i —

Billings in excess of costs and estimated earnings
 
 i —

 
 i 11,347

 
 i 493

 
 i —

 
 i 11,840

Total current liabilities
 
 i 729,387

 
 i 629,639

 
 i 30,222

 
( i 1,130,247
)
 
 i 259,001

Long-term debt
 
 i 1,807,502

 
 i —

 
 i —

 
 i —

 
 i 1,807,502

Acquisition-related liabilities
 
 i —

 
 i 45,354

 
 i —

 
 i —

 
 i 45,354

Other noncurrent liabilities
 
 i 3,768

 
 i 226,137

 
 i 77,368

 
( i 171,317
)
 
 i 135,956

Total liabilities
 
 i 2,540,657

 
 i 901,130

 
 i 107,590

 
( i 1,301,564
)
 
 i 2,247,813

Total member's interest
 
 i 1,385,431

 
 i 3,188,851

 
 i 37,626

 
( i 3,226,477
)
 
 i 1,385,431

Total liabilities and member’s interest
 
$
 i 3,926,088

 
$
 i 4,089,981

 
$
 i 145,216

 
$
( i 4,528,041
)
 
$
 i 3,633,244







 i 

Condensed Consolidating Statements of Operations
For the three months ended September 28, 2019

 
 
 
 
100%
 
 
 
 
 
 
 
 
 
 
Owned
 
Non-
 
 
 
 
 
 
Issuers
 
Guarantors 
 
Guarantors 
 
Eliminations
 
Consolidated 
Revenue
 
$
 i —

 
$
 i 706,999

 
$
 i 29,186

 
$
( i 4,103
)
 
$
 i 732,082

Cost of revenue (excluding items shown separately below)
 
 i —

 
 i 467,595

 
 i 19,487

 
( i 4,103
)
 
 i 482,979

General and administrative expenses
 
 i 13,603

 
 i 46,816

 
 i 2,676

 
 i —

 
 i 63,095

Depreciation, depletion, amortization and accretion
 
 i 1,042

 
 i 52,739

 
 i 1,346

 
 i —

 
 i 55,127

Operating (loss) income
 
( i 14,645
)
 
 i 139,849

 
 i 5,677

 
 i —

 
 i 130,881

Other (income) loss, net
 
( i 132,261
)
 
( i 1,501
)
 
 i 222

 
 i 131,665

 
( i 1,875
)
Interest expense (income)
 
 i 32,129

 
( i 4,532
)
 
 i 1,203

 
 i —

 
 i 28,800

Income from operation before taxes
 
 i 85,487

 
 i 145,882

 
 i 4,252

 
( i 131,665
)
 
 i 103,956

Income tax expense
 
 i 288

 
 i 17,325

 
 i 1,144

 
 i —

 
 i 18,757

Net income attributable to Summit LLC
 
$
 i 85,199

 
$
 i 128,557

 
$
 i 3,108

 
$
( i 131,665
)
 
$
 i 85,199

Comprehensive income attributable to member of Summit Materials, LLC
 
$
 i 84,026

 
$
 i 128,402

 
$
 i 4,436

 
$
( i 132,838
)
 
$
 i 84,026


Condensed Consolidating Statements of Operations
For the nine months ended September 28, 2019
 
 
 
 
 
100%
 
 
 
 
 
 
 
 
 
 
Owned
 
Non-
 
 
 
 
 
 
Issuers
 
Guarantors 
 
Guarantors 
 
Eliminations
 
Consolidated 
Revenue
 
$
 i —

 
$
 i 1,603,338

 
$
 i 70,321

 
$
( i 8,047
)
 
$
 i 1,665,612

Cost of revenue (excluding items shown separately below)
 
 i —

 
 i 1,114,401

 
 i 49,122

 
( i 8,047
)
 
 i 1,155,476

General and administrative expenses
 
 i 37,887

 
 i 146,136

 
 i 8,341

 
 i —

 
 i 192,364

Depreciation, depletion, amortization and accretion
 
 i 2,986

 
 i 156,827

 
 i 4,327

 
 i —

 
 i 164,140

Operating (loss) income
 
( i 40,873
)
 
 i 185,974

 
 i 8,531

 
 i —

 
 i 153,632

Other (income) loss, net
 
( i 183,971
)
 
( i 6,427
)
 
( i 553
)
 
 i 197,162

 
 i 6,211

Interest expense (income)
 
 i 94,848

 
( i 10,443
)
 
 i 3,615

 
 i —

 
 i 88,020

Income from operation before taxes
 
 i 48,250

 
 i 202,844

 
 i 5,469

 
( i 197,162
)
 
 i 59,401

Income tax expense
 
 i 1,114

 
 i 9,673

 
 i 1,478

 
 i —

 
 i 12,265

Net income attributable to Summit LLC
 
$
 i 47,136

 
$
 i 193,171

 
$
 i 3,991

 
$
( i 197,162
)
 
$
 i 47,136

Comprehensive income attributable to member of Summit Materials, LLC
 
$
 i 50,251

 
$
 i 193,319

 
$
 i 728

 
$
( i 194,047
)
 
$
 i 50,251

 / 




Condensed Consolidating Statements of Operations
For the three months ended September 29, 2018

 
 
 
 
100%
 
 
 
 
 
 
 
 
 
 
Owned
 
Non-
 
 
 
 
 
 
Issuers
 
Guarantors 
 
Guarantors
 
Eliminations
 
Consolidated
Revenue
 
$
 i —

 
$
 i 668,145

 
$
 i 28,064

 
$
( i 1,548
)
 
$
 i 694,661

Cost of revenue (excluding items shown separately below)
 
 i —

 
 i 452,394

 
 i 20,957

 
( i 1,548
)
 
 i 471,803

General and administrative expenses
 
 i 10,951

 
 i 46,910

 
 i 2,856

 
 i —

 
 i 60,717

Depreciation, depletion, amortization and accretion
 
 i 574

 
 i 52,213

 
 i 1,187

 
 i —

 
 i 53,974

Operating (loss) income
 
( i 11,525
)
 
 i 116,628

 
 i 3,064

 
 i —

 
 i 108,167

Other income, net
 
( i 132,382
)
 
( i 3,019
)
 
( i 236
)
 
 i 132,266

 
( i 3,371
)
Interest expense (income)
 
 i 29,396

 
( i 1,882
)
 
 i 1,206

 
 i —

 
 i 28,720

Gain on sale of business
 
 i —

 
( i 12,108
)
 
 i —

 
 i —

 
( i 12,108
)
Income from operation before taxes
 
 i 91,461

 
 i 133,637

 
 i 2,094

 
( i 132,266
)
 
 i 94,926

Income tax expense
 
 i 1,034

 
 i 2,898

 
 i 567

 
 i —

 
 i 4,499

Net income attributable to Summit LLC
 
$
 i 90,427

 
$
 i 130,739

 
$
 i 1,527

 
$
( i 132,266
)
 
$
 i 90,427

Comprehensive income (loss) attributable to member of Summit Materials, LLC
 
$
 i 92,484

 
$
 i 130,652

 
$
( i 443
)
 
$
( i 130,209
)
 
$
 i 92,484


Condensed Consolidating Statements of Operations
For the nine months ended September 29, 2018
 
 
 
 
 
100%
 
 
 
 
 
 
 
 
 
 
Owned
 
Non-
 
 
 
 
 
 
Issuers
 
Guarantors 
 
Guarantors
 
Eliminations
 
Consolidated
Revenue
 
$
 i —

 
$
 i 1,548,960

 
$
 i 65,597

 
$
( i 4,585
)
 
$
 i 1,609,972

Cost of revenue (excluding items shown separately below)
 
 i —

 
 i 1,087,150

 
 i 48,031

 
( i 4,585
)
 
 i 1,130,596

General and administrative expenses
 
 i 45,175

 
 i 141,372

 
 i 8,245

 
 i —

 
 i 194,792

Depreciation, depletion, amortization and accretion
 
 i 1,919

 
 i 145,135

 
 i 3,609

 
 i —

 
 i 150,663

Operating (loss) income
 
( i 47,094
)
 
 i 175,303

 
 i 5,712

 
 i —

 
 i 133,921

Other income, net
 
( i 204,677
)
 
( i 10,563
)
 
( i 87
)
 
 i 203,534

 
( i 11,793
)
Interest expense (income)
 
 i 87,924

 
( i 5,447
)
 
 i 3,589

 
 i —

 
 i 86,066

Gain on sale of business
 
 i —

 
( i 12,108
)
 
 i —

 
 i —

 
( i 12,108
)
Income from operation before taxes
 
 i 69,659

 
 i 203,421

 
 i 2,210

 
( i 203,534
)
 
 i 71,756

Income tax expense
 
 i 1,226

 
 i 1,481

 
 i 616

 
 i —

 
 i 3,323

Net income attributable to Summit LLC
 
$
 i 68,433

 
$
 i 201,940

 
$
 i 1,594

 
$
( i 203,534
)
 
$
 i 68,433

Comprehensive income attributable to member of Summit Materials, LLC
 
$
 i 66,697

 
$
 i 200,497

 
$
 i 4,773

 
$
( i 205,270
)
 
$
 i 66,697







 i 
Condensed Consolidating Statements of Cash Flows
For the nine months ended September 28, 2019
 
 
 
 
 
100%
 
 
 
 
 
 
 
 
 
 
Owned
 
Non-
 
 
 
 
 
 
Issuers
 
Guarantors 
 
Guarantors
 
Eliminations
 
Consolidated
Net cash (used in) provided by operating activities
 
$
( i 85,516
)
 
$
 i 241,172

 
$
 i 8,187

 
$
 i —

 
$
 i 163,843

Cash flow from investing activities:
 
 
 
 
 
 
 
 
 
 
Acquisitions, net of cash acquired
 
 i —

 
( i 2,842
)
 
 i —

 
 i —

 
( i 2,842
)
Purchase of property, plant and equipment
 
( i 1,166
)
 
( i 129,170
)
 
( i 9,426
)
 
 i —

 
( i 139,762
)
Proceeds from the sale of property, plant, and equipment
 
 i —

 
 i 12,950

 
 i 85

 
 i —

 
 i 13,035

Other
 
 i —

 
( i 207
)
 
 i —

 
 i —

 
( i 207
)
Net cash used for investing activities
 
( i 1,166
)
 
( i 119,269
)
 
( i 9,341
)
 
 i —

 
( i 129,776
)
Cash flow from financing activities:
 


 


 


 


 


Proceeds from investment by member
 
( i 35,581
)
 
 i 38,140

 
 i —

 
 i —

 
 i 2,559

Net proceeds from debt issuance
 
 i 300,000

 
 i —

 
 i —

 
 i —

 
 i 300,000

Loans received from and payments made on loans from other Summit Companies
 
 i 147,325

 
( i 147,782
)
 
 i 506

 
( i 49
)
 
 i —

Payments on long-term debt
 
( i 254,765
)
 
( i 9,965
)
 
( i 176
)
 
 i —

 
( i 264,906
)
Payments on acquisition-related liabilities
 
 i —

 
( i 8,500
)
 
 i —

 
 i —

 
( i 8,500
)
Debt issuance costs
 
( i 6,312
)
 
 i —

 
 i —

 
 i —

 
( i 6,312
)
Distributions from partnership
 
( i 2,500
)
 
 i —

 
 i —

 
 i —

 
( i 2,500
)
Other
 
( i 462
)
 
( i 39
)
 
 i —

 
 i —

 
( i 501
)
Net cash provided by (used in) financing activities
 
 i 147,705

 
( i 128,146
)
 
 i 330

 
( i 49
)
 
 i 19,840

Impact of cash on foreign currency
 
 i —

 
 i —

 
 i 174

 
 i —

 
 i 174

Net increase (decrease) in cash
 
 i 61,023

 
( i 6,243
)
 
( i 650
)
 
( i 49
)
 
 i 54,081

Cash — Beginning of period
 
 i 117,219

 
 i 8,440

 
 i 7,719

 
( i 4,870
)
 
 i 128,508

Cash — End of period
 
$
 i 178,242

 
$
 i 2,197

 
$
 i 7,069

 
$
( i 4,919
)
 
$
 i 182,589
























 / 




Condensed Consolidating Statements of Cash Flows
For the nine months ended September 29, 2018
 
 
 
 
 
100%
 
 
 
 
 
 
 
 
 
 
Owned
 
Non-
 
 
 
 
 
 
Issuers
 
Guarantors 
 
Guarantors
 
Eliminations
 
Consolidated
Net cash (used in) provided by operating activities
 
$
( i 107,736
)
 
$
 i 173,597

 
$
 i 4,696

 
$
 i —

 
$
 i 70,557

Cash flow from investing activities:
 
 
 
 
 
 
 
 
 
 
Acquisitions, net of cash acquired
 
 i —

 
( i 210,894
)
 
 i —

 
 i —

 
( i 210,894
)
Purchase of property, plant and equipment
 
( i 5,946
)
 
( i 156,016
)
 
( i 21,790
)
 
 i —

 
( i 183,752
)
Proceeds from the sale of property, plant, and equipment
 
 i —

 
 i 18,257

 
 i 169

 
 i —

 
 i 18,426

Proceeds from the sale of a business
 
 i —

 
 i 21,564

 
 i —

 
 i —

 
 i 21,564

Other
 
 i —

 
 i 2,660

 
 i —

 
 i —

 
 i 2,660

Net cash used for investing activities
 
( i 5,946
)
 
( i 324,429
)
 
( i 21,621
)
 
 i —

 
( i 351,996
)
Cash flow from financing activities:
 
 
 
 
 
 
 
 
 
 
Proceeds from investment by member
 
( i 112,386
)
 
 i 128,001

 
 i —

 
 i —

 
 i 15,615

Net proceeds from debt issuance
 
 i 64,500

 
 i —

 
 i —

 
 i —

 
 i 64,500

Loans received from and payments made on loans from other Summit Companies
 
( i 60,387
)
 
 i 58,052

 
 i 6,215

 
( i 3,880
)
 
 i —

Payments on long-term debt
 
( i 69,265
)
 
( i 9,701
)
 
( i 61
)
 
 i —

 
( i 79,027
)
Payments on acquisition-related liabilities
 
 i —

 
( i 32,821
)
 
 i —

 
 i —

 
( i 32,821
)
Financing costs
 
( i 550
)
 
 i —

 
 i —

 
 i —

 
( i 550
)
Distributions from partnership
 
( i 2,569
)
 
 i —

 
 i —

 
 i —

 
( i 2,569
)
Other
 
( i 873
)
 
( i 1,007
)
 
( i 33
)
 
 i —

 
( i 1,913
)
Net cash (used in) provided by financing activities
 
( i 181,530
)
 
 i 142,524

 
 i 6,121

 
( i 3,880
)
 
( i 36,765
)
Impact of cash on foreign currency
 
 i —

 
 i —

 
( i 422
)
 
 i —

 
( i 422
)
Net decrease in cash
 
( i 295,212
)
 
( i 8,308
)
 
( i 11,226
)
 
( i 3,880
)
 
( i 318,626
)
Cash — Beginning of period
 
 i 370,741

 
 i 10,254

 
 i 14,933

 
( i 12,372
)
 
 i 383,556

Cash — End of period
 
$
 i 75,529

 
$
 i 1,946

 
$
 i 3,707

 
$
( i 16,252
)
 
$
 i 64,930





Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘10-Q’ Filing    Date    Other Filings
3/15/27
6/1/25
11/21/24
2/25/24
12/29/19
Filed on:10/30/198-K
9/29/19
For Period end:9/28/19
9/15/19
6/29/1910-Q
3/30/1910-Q
3/25/19
3/15/198-K
2/25/198-K
12/30/18
12/29/1810-K,  10-K/A,  8-K
12/15/18
9/29/1810-Q
6/30/1810-Q
3/31/1810-Q
12/30/1710-K
12/1/17
6/1/178-K
7/8/158-K,  S-1
1/15/15UPLOAD
9/23/14
 List all Filings 

15 Subsequent Filings that Reference this Filing

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 5/02/24  Summit Materials, Inc.            10-Q        3/30/24  101:17M                                    Workiva Inc Wde… FA01/FA
 2/15/24  Summit Materials, Inc.            10-K       12/30/23  142:28M                                    Workiva Inc Wde… FA01/FA
11/02/23  Summit Materials, Inc.            10-Q        9/30/23   99:18M                                    Workiva Inc Wde… FA01/FA
 8/03/23  Summit Materials, Inc.            10-Q        7/01/23   96:18M                                    Workiva Inc Wde… FA01/FA
 5/04/23  Summit Materials, Inc.            10-Q        4/01/23   95:17M                                    Workiva Inc Wde… FA01/FA
 2/16/23  Summit Materials, Inc.            10-K       12/31/22  136:31M                                    Workiva Inc Wde… FA01/FA
11/03/22  Summit Materials, Inc.            10-Q       10/01/22   89:19M                                    Workiva Inc Wde… FA01/FA
 8/04/22  Summit Materials, Inc.            10-Q        7/02/22   89:19M                                    Workiva Inc Wde… FA01/FA
 5/05/22  Summit Materials, Inc.            10-Q        4/02/22   88:17M                                    Workiva Inc Wde… FA01/FA
 2/24/22  Summit Materials, Inc.            10-K        1/01/22  136:30M                                    Workiva Inc Wde… FA01/FA
11/04/21  Summit Materials, Inc.            10-Q       10/02/21   88:19M                                    Workiva Inc Wde… FA01/FA
 8/05/21  Summit Materials, Inc.            10-Q        7/03/21   90:19M                                    Workiva Inc Wde… FA01/FA
 5/11/21  Summit Materials, Inc.            10-Q        4/03/21   89:16M                                    Workiva Inc Wde… FA01/FA
 2/24/21  Summit Materials, Inc.            10-K        1/02/21  128:29M                                    Workiva Inc Wde… FA01/FA
10/28/20  Summit Materials, Inc.            10-Q        9/26/20   88:20M                                    Workiva Inc Wde… FA01/FA
↑Top
Filing Submission 0001628280-19-012765   –   Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)
Copyright © 2024 Fran Finnegan & Company LLC – All Rights Reserved.
About — Privacy — Redactions — Help — Fri., May 17, 4:50:04.3pm ET