10-K

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 

For the fiscal year ended January 2, 2021

OR

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 

For the transition period from                      to                      

Commission file numbers:

001-36873 (Summit Materials, Inc.)

333-187556 (Summit Materials, LLC) 

SUMMIT MATERIALS, INC.

SUMMIT MATERIALS, LLC

(exact name of registrants as specified in their charters)

Delaware (Summit Materials, Inc.)

Delaware (Summit Materials, LLC)

(State or other jurisdiction of incorporation or organization)

1550 Wynkoop Street, 3rd Floor

Denver, Colorado

(Address of principal executive offices)

47-1984212

26-4138486

(I.R.S. Employer Identification No.)

80202

(Zip Code)

Registrants’ telephone number, including area code: (303) 893-0012

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock (par value $.01 per share)	SUM	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Summit Materials, Inc.	Yes	☒	No	☐
Summit Materials, LLC	Yes	☐	No	☒
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
Summit Materials, LLC	Yes	☐	No	☒
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Summit Materials, Inc.	Yes	☒	No	☐
Summit Materials, LLC	Yes	☒	No	☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Summit Materials, Inc.	Yes	☒	No	☐
Summit Materials, LLC	Yes	☒	No	☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Summit Materials, Inc.
Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐
Summit Materials, LLC
Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.7262(b)) by the registered public accounting firm that prepared or issued its audit report.
Summit Materials, Inc.	Yes	☒	No	☐
Summit Materials, LLC	Yes	☒	No	☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Summit Materials, Inc.	Yes	☐	No	☒
Summit Materials, LLC	Yes	☐	No	☒

The aggregate market value of the Summit Materials, Inc. voting stock held by non-affiliates of the Registrants as of June 27, 2020 was approximately $1.7 billion.

As of February 22, 2021, the number of shares of Summit Materials, Inc.’s outstanding Class A and Class B common stock, par value $0.01 per share for each class, was 114,796,060 and 99, respectively.

As of February 22, 2021, 100% of Summit Materials, LLC’s outstanding limited liability company interests were held by Summit Materials Intermediate Holdings, LLC, its sole member and an indirect subsidiary of Summit Materials, Inc.

DOCUMENTS INCORPORATED BY REFERENCE

1

Table of Contents

Certain information required by Items 10, 11, 12, 13 and 14 of Part III incorporate information by reference from Summit Materials, Inc.’s definitive proxy statement relating to its 2021 annual meeting of stockholders to be filed with the Securities and Exchange Commission within 120 days after the close of Summit Materials, Inc.’s fiscal year.

2

Table of Contents

PART	ITEM		PAGE
I	1	Business	7
	1A	Risk Factors	20
	1B	Unresolved Staff Comments	35
	2	Properties	35
	3	Legal Proceedings	36
	4	Mine Safety Disclosures	36
		Executive Officers of the Company	36
II	5	Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	38
	6	Selected Financial Data	39
	7	Management’s Discussion and Analysis of Financial Condition and Results of Operations	39
	7A	Quantitative and Qualitative Disclosures about Market Risk	64
	8	Financial Statements and Supplementary Data	66
	9	Changes in and Disagreements With Accountants on Accounting and Financial Disclosure	102
	9A	Controls and Procedures	102
	9B	Other Information	105
III	10	Directors, Executive Officers and Corporate Governance	105
	11	Executive Compensation	105
	12	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	105
	13	Certain Relationships and Related Transactions, and Director Independence	106
	14	Principal Accounting Fees and Services	106
IV	15	Exhibits, Financial Statement Schedules	106
	16	Form 10-K Summary	109
		Signatures	110

3

Table of Contents

EXPLANATORY NOTE

This annual report on Form 10-K (this “report”) is a combined annual report being filed separately by two registrants: Summit Materials, Inc. and Summit Materials, LLC. Each registrant hereto is filing on its own behalf all of the information contained in this report that relates to such registrant. Each registrant hereto is not filing any information that does not relate to such registrant, and therefore makes no representation as to any such information. We believe that combining the annual reports on Form 10-K of Summit Materials, Inc. and Summit Materials, LLC into this single report eliminates duplicative and potentially confusing disclosure and provides a more streamlined presentation since a substantial amount of the disclosure applies to both registrants.

Unless stated otherwise or the context requires otherwise, references to “Summit Inc.” mean Summit Materials, Inc., a Delaware corporation, and references to “Summit LLC” mean Summit Materials, LLC, a Delaware limited liability company. The references to Summit Inc. and Summit LLC are used in cases where it is important to distinguish between them. We use the terms “we,” “our,” “Summit Materials” or “the Company” to refer to Summit Inc. and Summit LLC together with their respective subsidiaries, unless otherwise noted or the context otherwise requires.

Summit Inc. was formed on September 23, 2014 to be a holding company. As of January 2, 2021, its sole material asset was a 97.5% economic interest in Summit Materials Holdings L.P. (“Summit Holdings”). Summit Inc. has 100% of the voting rights of Summit Holdings, which is the indirect parent of Summit LLC. Summit LLC is a co-issuer of our 5 1/8% senior notes due 2025 (“2025 Notes”), our 6 1/2% senior notes due 2027 (“2027 Notes”) and our 5 1/4% senior notes due 2029 (“2029 Notes” and collectively with the 2025 Notes and 2027 Notes, the “Senior Notes”). Summit Inc.’s only revenue for the year ended January 2, 2021 is that generated by Summit LLC and its consolidated subsidiaries. Summit Inc. controls all of the business and affairs of Summit Holdings and, in turn, Summit LLC.

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

This report includes “forward-looking statements” within the meaning of the federal securities laws, which involve risks and uncertainties. Forward-looking statements include all statements that do not relate solely to historical or current facts, and you can identify forward-looking statements because they contain words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “trends,” “plans,” “estimates,” “projects” or “anticipates” or similar expressions that concern our strategy, plans, expectations or intentions. All statements made relating to our estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and financial results are forward-looking statements. These forward-looking statements are subject to risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. We derive many of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, it is very difficult to predict the effect of known factors, and, of course, it is impossible to anticipate all factors that could affect our actual results. 

Some of the important factors that could cause actual results to differ materially from our expectations are disclosed under “Risk Factors” and elsewhere in this report. All subsequent written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by these cautionary statements.

We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

CERTAIN DEFINITIONS

As used in this report, unless otherwise noted or the context otherwise requires:

•“Continental Cement” refers to Continental Cement Company, L.L.C.;

•“EBITDA” refers to net income (loss) before interest expense, income tax expense (benefit), depreciation, depletion and amortization expense;

•“Finance Corp.” refers to Summit Materials Finance Corp., an indirect wholly-owned subsidiary of Summit LLC and the co-issuer of the Senior Notes;

•“Issuers” refers to Summit LLC and Finance Corp. as co‑issuers of the Senior Notes;

4

Table of Contents

•“LP Units” refers to the Class A limited partnership units of Summit Holdings;

•“Mainland” refers to Mainland Construction Materials ULC, which is the surviving entity from the acquisition of Rock Head Holdings Ltd., B.I.M. Holdings Ltd., Carlson Ventures Ltd., Mainland Sand and Gravel Ltd. and Jamieson Quarries Ltd.;

•"APAC Assets" refers to two quarries, one landfill and two asphalt plants located in northeast Kansas;

•"Blake and Augusta Assets" refers to two quarries located in southeast Kansas; and

•“TRA” refers to a tax receivable agreement between Summit Inc. and holders of LP Units.

See “Business—Acquisition History” for a table of acquisitions we have completed since January 2018.

5

Table of Contents

Corporate Structure

The following chart summarizes our organizational structure, equity ownership and our principal indebtedness as of January 2, 2021. This chart is provided for illustrative purposes only and does not show all of our legal entities or all obligations of such entities.

 

______________________

(1)U.S. Securities and Exchange Commission (“SEC”) registrant.

(2)The shares of Class B Common Stock are currently held by pre-initial public offering investors, including certain members of management or their family trusts that directly hold LP Units. A holder of Class B Common Stock is entitled, without regard to the number of shares of Class B Common Stock held by such holder, to a number of votes that is equal to the aggregate number of LP Units held by such holder.

(3)Guarantor under the senior secured credit facilities, but not the Senior Notes.

(4)Summit LLC and Finance Corp are the issuers of the Senior Notes and Summit LLC is the borrower under our senior secured credit facilities. Finance Corp. was formed solely for the purpose of serving as co-issuer or guarantor of certain indebtedness, including the Senior Notes. Finance Corp. does not and will not have operations of any kind and does not and will not have revenue or assets other than as may be incidental to its activities as a co-issuer or guarantor of certain indebtedness.

6

Table of Contents

PART I 

ITEM 1.    BUSINESS.

Overview

We are one of the fastest growing construction materials companies in the United States, with a 63% increase in revenue between the year ended January 2, 2016 (the year of our initial public offering) and the year ended January 2, 2021. Within our markets, we offer customers a single‑source provider for construction materials and related downstream products through our vertical integration. Our materials include aggregates, which we supply across the United States, and in British Columbia, Canada, and cement, which we supply to surrounding states along the Mississippi River from Minnesota to Louisiana. In addition to supplying aggregates to customers, we use a portion of our materials internally to produce ready‑mix concrete and asphalt paving mix, which may be sold externally or used in our paving and related services businesses. Our vertical integration creates opportunities to increase aggregates volumes, optimize margin at each stage of production and provide customers with efficiency gains, convenience and reliability, which we believe gives us a competitive advantage.

Since our inception in 2009, we have become a major participant in the U.S. construction materials industry. We believe that, by volume, we are a top 10 aggregates supplier, a top 15 cement producer and a major producer of ready‑mix concrete and asphalt paving mix. Our proven and probable aggregates reserves were 4.1 billion tons as of January 2, 2021. In the year ended January 2, 2021 we sold 59.1 million tons of aggregates, 2.3 million tons of cement, 5.7 million cubic yards of ready-mix concrete and 5.8 million tons of asphalt paving mix across our more than 400 sites and plants.

The rapid growth we have achieved over the years has been due in large part to our acquisitions, which we funded through equity issuances, debt financings and cash from operations. Over the past decade, the U.S. economy witnessed a cyclical decline followed by a gradual recovery in the private construction market and modest growth in public infrastructure spending. The U.S. private construction market has grown in recent years both nationally and in our markets. During 2020, although the overall U.S. economy experienced a decline related to the COVID-19 pandemic, we continued to see positive indicators for the construction market, including positive trends in housing starts and highway construction letting. We believe we are well positioned to capitalize on growth in the construction market to continue to expand our business.

Our revenue in 2020 was $2.3 billion with net income of $141.2 million. As of January 2, 2021, our total indebtedness outstanding was approximately $1.9 billion.

We anticipate continued growth in our primary end markets, public infrastructure and the private construction market. Public infrastructure, which includes spending by federal, state and local governments for roads, highways, bridges, airports and other public infrastructure projects, has been a relatively stable portion of government budgets providing consistent demand to our industry and is projected by the Portland Cement Association (“PCA”) to grow approximately 8% in the U.S. from 2021 to 2025. We believe states will continue to institute state and local level funding initiatives dedicated towards increased infrastructure spending. We believe that growth in infrastructure spending will not be consistent across the United States, but will vary across different geographies. Economic conditions in our markets do vary by state, and public infrastructure funding has been impacted by COVID -19, particularly in Kentucky and Vancouver, British Columbia. The public infrastructure market represented 39% of our revenue in 2020.

The private construction market includes residential and nonresidential new construction and the repair and remodel market. According to the PCA, the number of total housing starts in the United States, a leading indicator for our residential business, is expected to grow 8% from 2021 to 2025. In addition, the PCA projects that spending in private nonresidential construction will grow 3% over the same period. Growth in private construction spending is influenced by changes in population, employment and general economic activity, among other factors which vary by geography across the United States. Residential activity in our key markets remains strong, particularly in the Houston and Salt Lake City areas, two of the largest metro areas where we operate. We believe residential activity in our key markets will continue to be a driver for volumes in future periods. The private construction market represented 61% of our revenue in 2020.

In addition to anticipated demand growth in our end markets, we expect continued improvement in pricing, especially in our materials businesses. The United States Geological Survey ("USGS") reports that aggregates pricing has increased in 70 of the last 75 years. Accordingly, we believe that this trend will continue in the future. The PCA estimates that cement consumption will increase approximately 10% in the U.S. from 2021 to 2025, reflecting rising demand in the major end markets. We believe that the increased demand will drive higher cement pricing as production capacity in the United States tightens.

7

Table of Contents

Historically, we have supplemented organic growth with acquisitions by strategically targeting attractive, new markets and expanding in existing markets. We consider population trends, employment rates, competitive landscape, private and public construction outlook, public funding and various other factors prior to entering a new market. In addition to considering macroeconomic data, we seek to establish, and believe that we have, a top three position in our local markets, which we believe supports improving profit margins and sustainable organic growth. This positioning provides local economies of scale and synergies, which benefits our profitability. In addition, we also focus on developing greenfield and brownfield sites in our existing markets.

We believe that significant opportunities remain for growth through acquisitions. We estimate that approximately 65% of the U.S. construction materials market is privately owned. Our management team maintains contact with hundreds of private companies. These long‑standing relationships, cultivated over decades, have been the primary source for our past acquisitions and, we believe, will continue to be an important source for future acquisitions. We believe we offer a compelling value proposition for private company sellers, including secure ongoing stewardship of their legacy businesses.

Our Business Segments

We operate in 21 U.S. states and in British Columbia, Canada and have assets in 23 U.S. states and in British Columbia, Canada through our platforms that make up our operating segments: West; East; and Cement. The 10 platform businesses in the West and East segments have their own management teams. The platform management teams are responsible for overseeing the operating platforms, implementing best practices, developing growth opportunities and integrating acquired businesses. We seek to enhance value through increased scale, efficiencies and cost savings within local markets.

•West Segment:  Our West segment includes operations in Texas, Utah, Colorado, Idaho, Wyoming, Oklahoma, Nevada and British Columbia, Canada. We supply aggregates, ready‑mix concrete, asphalt paving mix and paving and related services in the West segment. As of January 2, 2021, the West segment controlled approximately 1.3 billion tons of proven and probable aggregates reserves and $602.6 million of net property, plant and equipment and inventories (“hard assets”). During the year ended January 2, 2021, approximately 54% of our revenue was generated in the West segment.

•East Segment:  Our East segment serves markets extending across the Midwestern and Eastern United States, most notably in Kansas, Missouri, Virginia, Kentucky, North Carolina, South Carolina, Georgia, Arkansas and Nebraska where we supply aggregates, ready‑mix concrete, asphalt paving mix and paving and related services. As of January 2, 2021, the East segment controlled approximately 2.3 billion tons of proven and probable aggregates reserves and $745.5 million of hard assets. During the year ended January 2, 2021, approximately 34% of our revenue was generated in the East segment.

•Cement Segment:  Our Cement segment consists of our Hannibal, Missouri and Davenport, Iowa cement plants and nine distribution terminals along the Mississippi River from Minnesota to Louisiana. Our highly efficient plants are complemented by our integrated distribution system that spans the Mississippi River. We process solid and liquid waste into fuel for the plants, which can reduce the plants’ fuel costs by up to 50%. The Hannibal, Missouri plant is one of very few cement facilities in the United States that can process both hazardous and non-hazardous solid and liquid waste into fuel. As of January 2, 2021, the Cement segment controlled approximately 0.5 billion tons of proven and probable aggregates reserves, which serve its cement business, and $584.7 million of hard assets. During the year ended January 2, 2021, approximately 12% of our revenue was generated in the Cement segment.

8

Table of Contents

Acquisition History

The following table lists acquisitions we have completed in the last three years:

Company	Date of Acquisition	Segment
Metro Ready Mix, LLC	January 5, 2018	West
Price Construction, Ltd and affiliates	January 12, 2018	West
Mertens Construction Company, Inc. and affiliates	January 26, 2018	East
Stoner Sand, LLC	February 16, 2018	East
Day Concrete Block Company, Inc. and affiliate	April 2, 2018	West
Midwest Minerals, LLC	April 27, 2018	East
Superior Ready Mix, Inc.	April 27, 2018	East
Buckingham Slate Company, LLC	June 1, 2018	East
Buildex, LLC	July 1, 2018	East
APAC Assets	July 2, 2018	East
XIT Sand and Gravel, LLC and affiliate	July 16, 2018	West
Walker Sand and Gravel Ltd. Co.	October 1, 2018	West
Jefferson Quarry, LLC and affiliate	October 10, 2018	East
Pete Lien & Sons, Inc.	January 4, 2019	West
Tomball Ready Mix, LLC and affiliate	November 8, 2019	West
Blake and Augusta Assets	July 2, 2020	East
Multisources, LTD. and affiliates	July 10, 2020	West
Valley Gravel Sales LTD. and affiliates	August 21, 2020	West

Our End Markets

Public Infrastructure.  Public infrastructure construction includes spending by federal, state and local governments for highways, bridges, airports, schools, public buildings and other public infrastructure projects. Public infrastructure spending has historically been more stable than private sector construction. We believe that public infrastructure spending is less sensitive to interest rate changes and economic cycles and often is supported by multi-year federal and state legislation and programs. A significant portion of our revenue is derived from public infrastructure projects. As a result, the supply of federal and state funding for public infrastructure highway construction significantly affects our public infrastructure end-use business.

In the past, public infrastructure sector funding was underpinned by a series of six‑year federal highway authorization bills. Federal funds are allocated to the states, which are required to match a portion of the federal funds they receive. Federal highway spending uses funds predominantly from the Federal Highway Trust Fund, which derives its revenue from taxes on diesel fuel, gasoline and other user fees. The dependability of federal funding allows the state departments of transportation to plan for their long-term highway construction and maintenance needs. The Fixing America’s Surface Transportation (“FAST”) Act was signed into law on December 4, 2015 and authorized $305 billion of funding from 2016 through 2020. Through a continuing resolution signed by the President in October 2020, funding for the existing federal transportation funding program now extends through September 2021. It provides funding for surface transportation infrastructure, including roads, bridges, transit systems, and the rail transportation network.

Residential Construction.  Residential construction includes single family homes and multi‑family units such as apartments and condominiums. Demand for residential construction is influenced primarily by employment prospects, new household formation and mortgage interest rates. In recent years, residential construction demand has been growing, although the rate of growth has varied across the U.S. As a result of the COVID-19 pandemic, migration trends towards rural and exurban U.S. markets has begun, including a notable influx in our Texas and Utah markets.

Nonresidential Construction.  Nonresidential construction encompasses all privately financed construction other than residential structures. Demand for nonresidential construction is driven primarily by population and economic growth, and activity tends to following residential activity by 12-24 months. Population growth spurs demand for stores, shopping centers and restaurants. Economic growth creates demand for projects such as hotels, office buildings, warehouses and factories,

9

Table of Contents

although growth rates vary across the U.S. The supply of nonresidential construction projects is also affected by interest rates and the availability of credit to finance these projects.

Our Competitive Strengths

Leading market positions.  We believe each of our operating companies has a top three market share position in its local market area achieved through their respective, extensive operating histories, averaging over 30 years. We believe we are a top 10 supplier of aggregates, a top 15 producer of cement and a major producer of ready‑mix concrete and asphalt paving mix in the United States by volume. We focus on acquiring aggregate-based companies that have leading local market positions, which we seek to enhance by building scale through additional bolt-on acquisitions. The construction materials industry is highly local in nature due to transportation costs from the high weight‑to‑value ratio of the products. Given this dynamic, we believe achieving local market scale provides a competitive advantage that drives growth and profitability for our business. We believe that our ability to prudently acquire, rapidly integrate and improve multiple businesses has enabled, and will continue to enable, us to become market leaders.

Operations positioned to benefit from attractive industry fundamentals.  We believe the construction materials industry has attractive fundamentals, characterized by high barriers to entry and a stable competitive environment in the majority of markets. Barriers to entry are created by scarcity of raw material resources, limited efficient distribution range, asset intensity of equipment, land required for quarry operations and a time‑consuming and complex regulatory and permitting process. According to a January 2020 U.S. Geological Survey, aggregates pricing in the United States had increased in 70 of the previous 75 years, with growth accelerating since 2002 as continuing resource scarcity in the industry has led companies to focus increasingly on improved pricing strategies.

One contributing factor that supports pricing growth through the economic cycles is that aggregates and asphalt paving mix have significant exposure to public road construction, which has demonstrated growth over the past 30 years, even during times of broader economic weakness. The majority of public road construction spending is funded at the state level through the states’ respective departments of transportation. Texas, Utah, Kansas and Missouri, four of the states in which we have had our highest revenues, have funds with certain constitutional protections for revenue sources dedicated for transportation projects. These dedicated, earmarked funding sources limit the negative effect state deficits may have on public spending. As a result, we believe our business’ profitability is significantly more stable than most other building product subsectors.

Vertically‑integrated business model.  We generate revenue across a spectrum of related products and services. Approximately 21% of the aggregates used in our products and services are internally supplied. Our vertically‑integrated business model enables us to operate as a single source provider of materials and paving and related services, creating cost, convenience and reliability advantages for our customers, while at the same time creating significant cross‑marketing opportunities among our interrelated businesses. We believe this creates opportunities to increase aggregates volumes, optimize margin at each stage of production, foster more stable demand for aggregates through a captive demand outlet, create a competitive advantage through the efficiency gains, convenience and reliability provided to customers and enhance our acquisition strategy by providing a greater population of target companies.

Attractive diversity, scale and product portfolio.  We operate in dozens of metropolitan statistical areas across 23 U.S. states and in British Columbia, Canada. Between the year ended January 2, 2016 (the year of our initial public offering) and the year ended January 2, 2021, we grew our revenue by 63% and brought substantial additional scale and geographic diversity to our operations. In the year ended January 2, 2021, 59% of our operating income increase came from the West segment, 23% from East segment and 18% from the Cement segment, excluding corporate charges. As of January 2, 2021, we had approximately 4.1 billion tons of proven and probable aggregates reserves serving our aggregates and cement business. We estimate that the useful life of our proven and probable reserves serving our aggregates and cement businesses are approximately 74 years and 273 years, respectively, based on the average production rates in 2020 and 2019.

Our dry process cement plants in Hannibal, Missouri and Davenport, Iowa were commissioned in 2008 and 1981, respectively. These low-cost cement plants have efficient manufacturing capabilities and are strategically located on the Mississippi River and complemented by an extensive network of river and rail fed distribution terminals. Our terminal network can accept imported cement to supplement our internal production capacity as demand and market conditions dictate. Due to the location of our Hannibal and Davenport plants on the Mississippi River, in 2020, approximately 66% of cement distributed to our terminals was shipped by barge, which is generally more cost-effective than truck transport.

Proven ability to incorporate new acquisitions and grow businesses.  Since our inception, we have acquired dozens of businesses, successfully integrating them into three segments through the implementation of operational improvements, industry‑proven information technology systems, a comprehensive safety program and best in class management programs. A

10

Table of Contents

typical acquisition and subsequent integration generally involves implementing common safety and financial back office systems, driving best practices in pricing and productivity. In addition, we seek to leverage scale while maintaining local branding and management decision-making and providing management support, strategic direction and financial capital for investment. These acquisitions have helped us achieve significant revenue growth, from $0.4 billion in 2010 to $2.3 billion in 2020.

Experienced and proven leadership driving organic growth and acquisition strategy. Our management team, including corporate and segment managers, corporate development, finance executives and other heavy side industry operators, has extensive experience in the industry. Our management team has successfully enhanced the operations of acquired companies, focusing on scale advantages, cost efficiencies and price optimization to improve profitability and cash flow.

Our Business Strategy

Utilize vertically‑integrated and strategically located operations for growth.  We believe that our vertical integration of construction materials, products and services is a significant competitive advantage that we will utilize to grow share in our existing markets and enter into new markets. A significant portion of materials used to produce our products and provide services to our customers is internally supplied, which enables us to operate as a single source provider of materials, products and paving and related services. This creates cost, convenience and reliability advantages for our customers and enables us to capture additional value throughout the supply chain, while at the same time creating significant cross‑marketing opportunities among our interrelated businesses.

Enhance margins and free cash flow generation through implementation of operational improvements.  Our management team includes individuals with decades of experience in our industry and proven success in integrating acquired businesses and organically growing operations. We have enhanced margins through proven profit optimization plans, managed working capital and achieved scale‑driven purchasing synergies and fixed overhead control and reduction. Our platform management teams, supported by our operations, development, risk management, information technology and finance teams, drive the implementation of detailed and thorough profit optimization plans for each acquisition post close. These integration and improvement plans typically include, among other things, implementation of a common pricing strategy, safety and financial systems, systematic commercial strategies, operational benefits, efficiency improvement plans and business-wide cost reduction techniques.

Expand local positions in the most attractive markets through targeted capital investments and bolt‑on acquisitions.  We seek to expand our business through organic growth and bolt‑on acquisitions in each of our local markets. In addition to our greenfield and brownfield project initiatives, our acquisition strategy involves acquiring platforms that serve as the foundation for continued incremental and complementary growth via locally situated bolt‑on acquisitions to these platforms. We believe that increased local market scale drives profitable growth through efficiencies. Our existing platform of operations is expected to enable us to continue our growth as we expand in our existing markets. In pursuing our growth strategy, we may also pursue larger acquisition transactions that may require us to raise additional equity capital and or debt from time to time. Consistent with this strategy, we regularly evaluate potential acquisition opportunities, including ones that would be significant to us.

Drive profitable growth through strategic acquisitions.  Based on aggregates sales, by volume, we believe that we are currently one of the ten largest producers in the United States. Our growth has been a result of the successful execution of our acquisition strategy and implementation of best practices to drive organic growth. We believe that the relative fragmentation of our industry creates an environment in which we can continue to acquire companies at attractive valuations and increase scale and diversity over time. We believe we have opportunity for further growth through strategic acquisitions in markets adjacent to our existing markets within the states where we currently operate, as well as into additional states as market and competitive conditions permit.

Capitalize on growth in the U.S. economy and construction markets.  Given the nation’s aging infrastructure and considering longstanding historical spending trends, we expect U.S. infrastructure investment to grow over time. We believe we are well positioned to capitalize on any such increase in investment.  The PCA forecasts total housing starts to accelerate to 1.48 million in the United States by 2025. The American Institute of Architects’ Consensus Construction Forecast projects nonresidential construction to shrink 4.8% in 2021. We believe nonresidential activity tends to follow residential activity after about 12 to 24 months. However, the COVID-19 pandemic may impact these trends in ways we cannot foresee. We believe that exposure to the public infrastructure, residential and nonresidential end markets across our markets will benefit us if the U.S. economy improves.

11

Table of Contents

Our Industry

The U.S. construction materials industry is composed of four primary sectors: aggregates; cement; ready‑mix concrete; and asphalt paving mix. Each of these materials is widely used in most forms of construction activity. Participants in these sectors typically range from small, privately‑held companies focused on a single material, product or market to publicly traded multinational corporations that offer a wide array of construction materials and services. Competition is constrained in part by the distance materials can be transported efficiently, resulting in predominantly local or regional operations. Due to the lack of product differentiation, competition for all of our products is predominantly based on price and, to a lesser extent, quality of products and service. As a result, the prices we charge our customers are not likely to be materially different from the prices charged by other producers in the same markets. Accordingly, our profitability is generally dependent on the level of demand for our products and materials and our ability to control operating costs.

Transportation infrastructure projects, driven by both federal and state funding programs, represent a significant share of the U.S. construction materials market. Federal funds are allocated to the states, which are required to match a portion of the federal funds they receive. Federal highway spending uses funds predominantly from the Federal Highway Trust Fund, which derives its revenue from taxes on diesel fuel, gasoline and other user fees. The dependability of federal funding allows the state departments of transportation to plan for their long-term highway construction and maintenance needs. Funding for the existing federal transportation funding program extends through September 2021. With the nation’s infrastructure aging, there is increased demand by states and municipalities for long-term federal funding to support the construction of new roads, highways and bridges in addition to the maintenance of existing infrastructure.

In addition to federal funding, state, county and local agencies provide highway construction and maintenance funding. Our four largest states by revenue, Texas, Utah, Kansas and Missouri, represented approximately 25%, 14%, 13% and 9%, respectively, of our total revenue in 2020.

Our Industry and Operations

Demand for our materials and products is observed to have low elasticity in relation to prices. We believe this is partially explained by the absence of competitive replacement products. We do not believe that increases in our prices of materials or products are likely to affect the decision to undertake a construction project since these costs usually represent a small portion of total construction costs.

We operate our construction materials, products and paving and related services businesses through local management teams, which work closely with our end customers to deliver the materials, products and services that meet each customer’s specific needs for a project. We believe that this strong local presence gives us a competitive advantage by allowing us to obtain a unique understanding for the evolving needs of our customers.

We have operations in 23 U.S. states and in British Columbia, Canada. Our business in each region is vertically‑integrated. We supply aggregates internally for the production of cement, ready‑mix concrete and asphalt paving mix and a significant portion of our asphalt paving mix is used internally by our paving and related services businesses. In the year ended January 2, 2021, approximately 79% of our aggregates production was sold directly to outside customers with the remaining amount being further processed by us and sold as a downstream product. In addition, we operate a municipal waste landfill in our East segment, and have construction and demolition debris landfills and liquid asphalt terminal operations in our West and East segments.

Approximately 69% of our asphalt paving mix was installed by our paving and related services businesses in the year ended January 2, 2021. We charge a market price and competitive margin at each stage of the production process in order to optimize profitability across our operations. Our production value chain is illustrated as follows:

12

Table of Contents

Aggregates

Aggregates are key material components used in the production of cement, ready‑mix concrete and asphalt paving mixes for the public infrastructure, residential and nonresidential end markets and are also widely used for various applications and products, such as road and building foundations, railroad ballast, erosion control, filtration, roofing granules and in solutions for snow and ice control. Generally extracted from the earth using surface or underground mining methods, aggregates are produced from natural deposits of various materials such as limestone, sand and gravel, granite and trap rock. Aggregates are produced mainly from blasting hard rock from quarries and then crushing and screening it to various sizes to meet our customers’ needs. The production of aggregates also involves the extraction of sand and gravel, which requires less crushing, but still requires screening for different sizes. Aggregate production utilizes capital intensive heavy equipment which includes the use of loaders, large haul trucks, crushers, screens and other heavy equipment at quarries and sand and gravel pits. Once extracted, processed and/or crushed and graded on-site into crushed stone, concrete and masonry sand, specialized sand, pulverized lime or agricultural lime, they are supplied directly to their end use or incorporated for further processing into construction materials and products, such as cement, ready‑mix concrete and asphalt paving mix. The minerals are processed to meet customer specifications or to meet industry standard sizes. Crushed stone is used primarily in ready‑mix concrete, asphalt paving mix, and the construction of road base for highways.

We believe that the long‑term growth of the market for aggregates is predominantly driven by growth in population, employment and households, which in turn affects demand for transportation infrastructure, residential and nonresidential construction, including stores, shopping centers and restaurants. While short‑term demand for aggregates fluctuates with economic cycles, the declines have historically been followed by strong recovery, with each peak establishing a new historical high.

We mine limestone, gravel, and other natural resources from 132 crushed stone quarries and 116 sand and gravel deposits throughout the United States and in British Columbia, Canada. Our extensive network of quarries, plants and facilities, located throughout the regions in which we operate, enables us to have a nearby operation to meet the needs of customers in each of our markets. As of January 2, 2021, we had approximately 4.1 billion tons of proven and probable reserves of recoverable stone, and sand and gravel of suitable quality for economic extraction. Our estimate is based on drilling and studies by geologists and engineers, recognizing reasonable economic and operating restraints as to maximum depth of extraction and permit or other restrictions. Reported proven and probable reserves include only quantities that are owned or under lease, and for which all required zoning and permitting have been obtained. Of the 4.1 billion tons of proven and probable aggregates reserves, 2.4 billion, or 58%, are located on owned land and 1.7 billion are located on leased land.

According to the September 2020 U.S. Geological Survey, approximately 1.7 billion tons of crushed stone with a value of approximately $18.4 billion was produced in the United States in 2019, which was an increase from the 1.5 billion tons produced in 2018. Sand and gravel production was approximately 1.1 billion tons in 2019 and 2018, valued at approximately $9.0 billion in 2019. The U.S. aggregate industry is highly fragmented relative to other building product markets, with numerous participants operating in localized markets and the top ten players controlling approximately 35% of the national market in 2020. In February 2020, the U.S. Geological Survey reported that a total of 1,430 companies operating 3,440 quarries

13

Table of Contents

and 176 sales/distribution yards produced or sold crushed stone in 2019 in the United States. This fragmentation is a result of the cost of transporting aggregates, which typically limits producers to a market area within approximately 40 miles of their production facilities.

Transportation costs are a major variable in determining the marketing radius for our products. The cost of transporting aggregate products from the plant to the market often equates to or exceeds the sale price of the product at the plant. As a result of the high transportation costs and the large quantities of bulk material that have to be shipped, finished products are typically marketed locally. High transportation costs are responsible for the wide dispersion of production sites. Where possible, construction material producers maintain operations adjacent to highly populated areas to reduce transportation costs and enhance margins. However, more recently, rising land values combined with local environmental concerns have been forcing production sites to move further away from the end‑use locations.

Each of our aggregates operations is responsible for the sale and marketing of its aggregates products. Approximately 79% of our aggregates production is sold directly to outside customers and the remaining amount is further processed by us and sold as a downstream product. Even though aggregates are a commodity product, we work to optimize pricing depending on the site location, availability of a particular product, customer type, project type and haul cost. We sell aggregates to internal downstream operations at market prices.

A significant portion of annual demand for aggregates is derived from large public infrastructure and highway construction projects. According to the Montana Contractors’ Association, approximately 38,000 tons of aggregate are required to construct a one mile stretch of a typical four‑lane interstate highway. Highways located in markets with significant seasonal temperature variances are particularly vulnerable to freeze‑thaw conditions that exert excessive stress on pavement and lead to more rapid surface degradation. Surface maintenance repairs, as well as general highway construction, occur in the warmer months, resulting in a majority of aggregates production and sales in the period from April through November in most states.

Our competitors in aggregates supply include large vertically‑integrated companies, that have a combined estimated market share of approximately 30%, in addition to various local suppliers.

We believe we have a strong competitive advantage in aggregates through our well located reserves and assets in key markets, high quality reserves and our logistic networks. We further share and implement best practices relating to safety, strategy, sales and marketing, production, and environmental and land management. Our vertical integration and local market knowledge enable us to maintain a strong understanding of the needs of our aggregates customers. In addition, our companies have a reputation for responsible environmental stewardship and land restoration, which assists us in obtaining new permits and new reserves.

Cement

Portland cement, an industry term for the common cement in general use around the world, is made from a combination of limestone, shale, clay, silica and iron ore. It is a fundamental building material consumed in several stages throughout the construction cycle of public infrastructure, residential and nonresidential projects. It is a binding agent that, when mixed with sand or aggregates and water, produces either ready‑mix concrete or mortar and is an important component of other essential construction materials. Few construction projects can take place without utilizing cement somewhere in the design, making it a key ingredient used in the construction industry. The majority of all cement shipments are sent to ready‑mix concrete operators. Sales are made on the basis of competitive terms and prices in each market. Nearly two‑thirds of U.S. consumption occurs between May and November, coinciding with end‑market construction activity.

Cement production in the United States is distributed among over 90 production facilities located across a majority of the states and is a capital‑intensive business with variable costs dominated by raw materials and energy required to fuel the kiln. Most U.S. cement producers are owned by large foreign companies operating in multiple international markets. Our largest competitors include large vertically integrated companies. Construction of cement production facilities is highly capital intensive and requires long lead times to complete engineering design, obtain regulatory permits, acquire equipment and construct a plant.

As reported by the PCA, consumption is up from the industry trough of approximately 77.6 million tons in 2010, to approximately 112.6 million tons in 2019, consistent with an increase in U.S. construction activity. Cement sales are still below their peak, but we believe there will be additional growth in the cement industry. U.S. cement consumption has at times outpaced domestic production capacity with the shortfall being supplied with imports, primarily from Canada, Turkey, Greece, Mexico and China. The PCA reports that cement imports are above their trough of approximately 7.2 million tons in 2011 versus approximately 17.8 million tons in 2019.

14

Table of Contents

We operate a highly‑efficient, low-cost integrated cement manufacturing and distribution network through our cement plants in Hannibal, Missouri, and Davenport, Iowa and our nine terminals along the Mississippi River from Minnesota to Louisiana. The combined potential capacity at our Hannibal and Davenport cement plants is approximately 2.4 million short tons per annum. We also operate on‑site waste fuel processing facilities at the plants, which can reduce plant fuel costs by up to 50%. Our Hannibal plant is one of very few with hazardous waste fuel facilities permitted and operating out of over 90 cement plants in the United States. Competitive factors include price, reliability of deliveries, location, quality of cement and support services. With two cement plants, on‑site raw material supply, a network of cement terminals, and longstanding customer relationships, we believe we are well positioned to serve our customers.

Cement is a product that is costly to transport. Consequently, the radius within which a typical cement plant is competitive with truck transportation is typically limited to 150 miles from any shipping/distribution point. However, access to rail and barge can extend the distribution radius significantly. With both of our plants located on the Mississippi River, we are able to cost effectively distribute cement from both of our plants by truck, rail and barge directly to customers or to our nine storage and distribution terminals along the Mississippi River. Our Hannibal and Davenport plants are located on the Mississippi River and, consequently, in 2020, approximately 66% of cement distributed to our terminals was shipped by barge, which is significantly more cost‑effective than truck transport.

The majority of U.S. cement plants are subject to the Portland Cement – Maximum Achievable Control Technology (“PC‑MACT”). Our Hannibal and Davenport cement plants utilize alternative fuels, hazardous and non‑hazardous at Hannibal and non‑hazardous at Davenport, as well as coal, natural gas and petroleum coke and, as a result, are subject to the Hazardous Waste Combustor – Maximum Achievable Control Technology (“HWC-MACT”) and Commercial/Industrial Solid Waste Incinerators (“CISWI”) standards, respectively, rather than PC‑MACT standards.

Ready‑mix Concrete

Ready‑mix concrete is one of the most versatile and widely used materials in construction today. Its flexible recipe characteristics allow for an end product that can assume almost any color, shape, texture and strength to meet the many requirements of end users that range from bridges, foundations, skyscrapers, pavements, dams, houses, parking garages, water treatment facilities, airports, tunnels, power plants, hospitals and schools. The versatility of ready‑mix concrete gives engineers significant flexibility when designing these projects.

Cement, coarse aggregate, fine aggregate, water and admixtures are the primary ingredients in ready‑mix concrete. Other materials commonly used in the production of ready‑mix concrete include fly‑ash, a waste by‑product from coal burning power plants, silica fume, a waste by‑product generated from the manufacture of silicon and ferro‑silicon metals, and ground granulated blast furnace slag, a by‑product of the iron and steel manufacturing process. These materials are available directly from the producer or via specialist distributors who intermediate between the ready‑mix concrete producers and the users.

Competition among ready‑mix concrete suppliers is generally based on product characteristics, delivery times, customer service and price. Product characteristics such as tensile strength, resistance to pressure, durability, set times, ease of placing, aesthetics, workability under various weather and construction conditions as well as environmental effect are the main criteria that our customers consider for selecting their product. Our quality assurance program produces results in excess of design strengths while optimizing material costs. Additionally, we believe our strategic network of locations and superior customer service gives us a competitive advantage relative to other producers. Our ready‑mix concrete operations compete with CEMEX in Texas and Nevada and CRH plc in Utah and Colorado and various other privately owned competitors in other parts of the West and East segments.

Given the high weight‑to‑value ratio, delivery of ready‑mix concrete is typically limited to a one‑hour haul from a production plant and is further limited by a 90 minute window in which newly‑mixed concrete must be poured to maintain quality and performance. As a result of the transportation constraints, the ready‑mix concrete market is highly localized, with an estimated 5,500 ready‑mix concrete plants in the United States according to the NRMCA. According to the NRMCA, 371.2 million cubic yards of ready‑mix concrete were produced in 2019, which is a 4% increase from the 358.2 million cubic yards produced in 2018 but a 19% decrease from the industry peak of 458.3 million cubic yards in 2005.

We believe our West and East segments are leaders in the supply of ready‑mix concrete in their respective markets. The West segment has ready‑mix concrete operations in the Texas, Utah, Nevada, Idaho and Colorado markets. Our East segment supplies ready‑mix concrete in the Kansas, Missouri, Arkansas, North Carolina, South Carolina, Kentucky and Virginia markets and surrounding areas. We operated 69 ready-mix concrete plants and over 700 concrete delivery trucks in the West segment and 55 ready-mix concrete plants and almost 350 concrete delivery trucks in the East segment as of January 2,

15

Table of Contents

2021. Our aggregates business serves as the primary source of the raw materials for our concrete production, functioning essentially as a supplier to our ready‑mix concrete operations.

Asphalt Paving Mix

Asphalt paving mix is the most common roadway material used today. It is a versatile and essential building material that has been used to surface 94% of the more than 2.7 million miles of paved roadways in the United States, according to the National Asphalt Pavement Association (“NAPA”).

Typically, asphalt paving mix is placed in three distinct layers to create a flexible pavement structure. These layers consist of a base course, an intermediate or binder course, and a surface or wearing course. These layers vary in thicknesses of three to six inches for base mix, two to four inches for intermediate mix and one to two inches for surface mix.

Asphalt pavement is generally 100% recyclable and reusable and is the most reused and recycled pavement material in the United States. Reclaimed asphalt pavement can be incorporated into new pavement at replacement rates in excess of 30% depending upon the mix and the application of the product. We actively engage in the recycling of previously used asphalt pavement and concrete. This material is crushed and repurposed in the construction cycle. Approximately 89.2 million tons of used asphalt is recycled annually by the industry according to a September 2020 NAPA survey. As of January 2, 2021, we operated 26 and 23 asphalt paving mix plants in the West and East segments, respectively. Approximately 98% of our plants can utilize recycled asphalt pavement.

The use of warm mix asphalt (“WMA”) or “green” asphalt is gaining popularity. The immediate benefit to producing WMA is the reduction in energy consumption required by burning fuels to heat traditional hot mix asphalt (“HMA”) to temperatures in excess of 300°F at the production plant. These high production temperatures are needed to allow the asphalt binder to become viscous enough to completely coat the aggregate in the HMA, have good workability during laying and compaction, and durability during traffic exposure. According to the Federal Highway Administration, WMA can reduce the mixing temperature by 50°F to 70°F, resulting in lower emissions, fumes and odors generated at the plant and the paving site.

Approximately 69% of the asphalt paving mix we produce is installed by our own paving crews. The rest is sold on a per ton basis to road contractors, state departments of transportation and local agencies. Asphalt paving mix is used by our paving crews and by our customers primarily for the construction of roads, driveways and parking lots.

According to NAPA, there were approximately 3,500 asphalt paving mix plants in the United States in 2019 and an estimated 421.9 million tons of asphalt paving mix was produced in 2019 compared to 389.3 million tons produced in 2018. Our asphalt paving mix operations compete with CRH plc and other local suppliers. Based on availability of internal aggregate supply, quality, operating efficiencies, and location advantages, we believe we are well positioned vis‑à‑vis our competitors.

Asphalt paving mix is generally applied at high temperatures. Prolonged exposure to air causes the mix to lose temperature and harden. Therefore, delivery is typically within close proximity to the asphalt paving mix plant. Local market demand, proximity to competition, transportation costs and supply of aggregates and liquid asphalt vary widely from market to market. Most of our asphalt operations use a combination of company‑owned and hired haulers to deliver materials to job sites.

As part of our vertical integration strategy, we provide asphalt paving and related services to both the private and public infrastructure sectors as either a prime or sub‑contractor. These services complement our construction materials and products businesses by providing a reliable downstream outlet, in addition to our external distribution channels.

Our asphalt paving and related services businesses bid on both private construction and public infrastructure projects in their respective local markets. We only provide paving and related services operations as a complement to our aggregates operations, which we believe is a major competitive strength. Factors affecting competitiveness in this business segment include price, estimating abilities, knowledge of local markets and conditions, project management, financial strength, reputation for quality and the availability of machinery and equipment.

Contracts with our customers are primarily fixed price or fixed unit price. Under fixed unit price contracts, we provide materials or services at fixed unit prices (for example, dollars per ton of asphalt placed). While the fixed unit price contract shifts the risk of estimating the quantity of units required for a particular project to the customer, any increase in our unit cost over the bid amount, whether due to inflation, inefficiency, errors in our estimates or other factors, is borne by us unless otherwise provided in the contract. Most of our contracts contain adjustment provisions to account for changes in liquid asphalt prices.

16

Table of Contents

Customers

Our business is not dependent on any single customer or a few customers. Therefore, the loss of any single or particular small number of customers would not have a material adverse effect on any individual respective market in which we operate or on us as a whole. No individual customer accounted for more than 10% of our 2020 revenue.

Seasonality

Use and consumption of our products fluctuate due to seasonality. Nearly all of the products used by us, and by our customers, in the private construction or public infrastructure industries are used outdoors. Our highway operations and production and distribution facilities are also located outdoors. Therefore, seasonal changes and other weather‑related conditions, in particular extended rainy and cold weather in the spring and fall and major weather events, such as hurricanes, tornadoes, tropical storms, heavy snows and flooding, can adversely affect our business and operations through a decline in both the use of our products and demand for our services. In addition, construction materials production and shipment levels follow activity in the construction industry, which typically occurs in the spring, summer and fall. Warmer and drier weather during the second and third quarters of our fiscal year typically result in higher activity and revenue levels during those quarters. The first quarter of our fiscal year typically has lower levels of activity due to weather conditions.

Backlog

Our products are generally delivered upon receipt of orders or requests from customers, or shortly thereafter. Accordingly, the backlog associated with product sales is converted into revenue within a relatively short period of time. Inventory for products is generally maintained in sufficient quantities to meet rapid delivery requirements of customers. Therefore, a period over period increase or decrease of backlog does not necessarily result in an improvement or a deterioration of our business. Our backlog includes only those products and projects for which we have obtained a purchase order or a signed contract with the customer and does not include products purchased and sold or services awarded and provided within the period.

Subject to applicable contract terms, substantially all contracts in our backlog may be canceled or modified by our customers. Historically, we have not been materially adversely affected by significant contract cancellations or modifications.

Intellectual Property

We do not own or have a license or other rights under any patents that are material to our business.

Corporate Information

Summit Materials, Inc. and Summit Materials, LLC were formed under the laws of the State of Delaware on September 23, 2014 and September 24, 2008, respectively. Our principal executive office is located at 1550 Wynkoop Street, 3rd Floor, Denver, Colorado 80202. Through its predecessor, Summit Inc. commenced operations in 2009 when Summit Holdings was formed. Our telephone number is (303) 893-0012.

Human Capital Resources

As of January 2, 2021, we employed approximately 6,000 employees, of which approximately 5,700 were employed in the United States with the remainder being employed in Canada. Approximately 80% of our employees are hourly workers, with the remainder being salaried. Approximately 7% of our employees are union members, substantially all in our cement division and at our Canadian operations, with whom we believe we enjoy a satisfactory working relationship. Our collective bargaining agreements for employees who are union members generally expire between 2022 and 2026. Because of the seasonal nature of our industry, many of our hourly and certain of our salaried employees are subject to seasonal layoffs. The scope of layoffs varies greatly from season to season as they are predominantly a function of the type of projects in process and the weather during the late fall through early spring.

Health and Safety: We maintain a safety culture grounded on the premise of striving to eliminate workplace incidents, risks and hazards. We have created and implemented processes to help eliminate safety events by reducing their frequency and severity. We also review and monitor our performance closely. Our goal is to reduce Occupational Safety and Health Administration ("OSHA") recordable incidents each year. During fiscal 2020, our recordable incident rate declined 6% compared to fiscal 2019.

17

Table of Contents

As a result of the COVID-19 pandemic, we have implemented safety protocols to protect our employees, contractors and customers. These protocols include complying with social distancing and other health and safety standards as required by federal, state and local government agencies, taking into consideration guidelines of the Centers for Disease Control and Prevention and other public health authorities. We continue to provide personal protective equipment and additional cleaning supplies. Many of our administrative and operational functions during this time have required modification, including some of our workforce working remotely. Our experienced employees adapted to the changes in our work environment and continued to successfully manage our business successfully during this challenging time.

Inclusion and Diversity: We embrace the diversity of our team members, customers, stakeholders and consumers, including their unique backgrounds, experiences, thoughts and talents. Everyone is valued and appreciated for their distinct contributions to the growth and sustainability of our business. We strive to cultivate a culture and vision that supports and enhances our ability to recruit, develop and retain diverse talent at every level. We have a goal to build a highly engaged team by increasing retention year over year.

Talent Development: We prioritize and invest in creating opportunities to help employees grow and build their careers, through various training and development programs. These include on-the-job learning formats as well as executive talent and succession planning paired with an individualized development approach.

Compensation and Benefits: We provide compensation and benefit programs to help meet the needs of our employees. In addition to base compensation, we offer incentive plans for both safety and operational results, stock awards, a 401(k) plan, healthcare and insurance benefits, health savings and flexible spending accounts, paid time off, family leave programs, employee assistance programs, among others. Our 401(k) plan covers all U.S. employees, and provides for matching contributions to the plan, including 100% of pre‑tax employee contributions, up to 4% of eligible compensation. Employer contributions vest immediately.

Legal Proceedings

We are party to certain legal actions arising from the ordinary course of business activities. 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 our consolidated financial condition, results of operations or liquidity.

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. Although we currently do not believe this matter will have a material adverse effect on our business, financial condition or results of operations, we are not able to predict the ultimate outcome or cost of the investigation at this time.

Environmental and Government Regulation

We are subject to federal, state, provincial and local laws and regulations relating to the environment and to health and safety, including noise, discharges to air and water, waste management including the management of hazardous waste used as a fuel substitute in our cement plants, remediation of contaminated sites, mine reclamation, operation and closure of landfills and dust control and zoning, land use and permitting. Our failure to comply with such laws and regulations can result in sanctions such as fines or the cessation of part or all of our operations. From time to time, we may also be required to conduct investigation or remediation activities. There also can be no assurance that our compliance costs or liabilities associated with such laws and regulations or activities will not be significant.

In addition, our operations require numerous governmental approvals and permits. Environmental operating permits are subject to modification, renewal and revocation and can require us to make capital, maintenance and operational expenditures to comply with the applicable requirements. Stricter laws and regulations, or more stringent interpretations of existing laws or regulations, may impose new liabilities on us, reduce operating hours, require additional investment by us in pollution control equipment or impede our opening new, expanding or maintaining existing plants or facilities. We regularly monitor and review our operations, procedures and policies for compliance with environmental laws and regulations, changes in interpretations of existing laws and enforcement policies, new laws that are adopted, and new requirements that we anticipate will be adopted that could affect our operations.

Multiple permits are required for our operations, including those required to operate our cement plants. Applicable permits may include conditional use permits to allow us to operate in certain areas absent zoning approval and operational permits governing, among other matters, air and water emissions, dust, particulate matter and storm water management and

18

Table of Contents

control. In addition, we are often required to obtain bonding for future reclamation costs, most commonly specific to restorative grading and seeding of disturbed surface areas.

Like others in our industry, we expend substantial amounts to comply with applicable environmental laws and regulations and permit limitations, which include amounts for pollution control equipment required to monitor and regulate emissions into the environment. The Hannibal and Davenport cement plants are subject to HWC-MACT and CISWI standards, respectively, for which we do not expect any material incremental costs to maintain compliance. Since many environmental requirements are likely to be affected by future legislation or rule making by government agencies, and are therefore not quantifiable, it is not possible to accurately predict the aggregate future costs of compliance and their effect on our future financial condition, results of operations and liquidity.

At most of our quarries, we incur reclamation obligations as part of our mining activities. Reclamation methods and requirements can vary depending on the individual site and state regulations. Generally, we are required to grade the mined properties to a certain slope and seed the property to prevent erosion. We record a mining reclamation liability in our consolidated financial statements to reflect the estimated fair value of the cost to reclaim each property including active and closed sites.

Our operations in Kansas include one municipal waste landfill and four construction and demolition debris landfills, one of which has been closed and in Colorado, we have a construction and demolition debris landfill. In Vancouver, British Columbia, we operate a landfill site that accepts environmentally clean soil deposits. Among other environmental, health and safety requirements, we are subject to obligations to appropriately close those landfills at the end of their useful lives and provide for appropriate post‑closure care. Asset retirement obligations relating to these landfills are recorded in our consolidated financial statements.

Health and Safety

Our facilities and operations are subject to a variety of worker health and safety requirements, particularly those administered by the federal Occupational Safety and Health Administration (“OSHA”) and Mine Safety and Health Administration (“MSHA”). Throughout our organization, we strive for a zero‑incident safety culture and full compliance with safety regulations. Failure to comply with these requirements can result in sanctions such as fines and penalties and claims for personal injury and property damage. These requirements may also result in increased operating and capital costs in the future.

Worker safety and health matters are overseen by our corporate risk management and safety department as well as operating company level safety managers. We provide our operating company level safety managers leadership and support, comprehensive training, and other tools designed to accomplish health and safety goals, reduce risk, eliminate hazards, and ultimately make our work places safer.

Where You Can Find More Information

We file annual, quarterly and current reports, proxy statements and other information with the SEC. Our SEC filings are available to the public over the internet at the SEC’s website at http://www.sec.gov. Our SEC filings are also available on our website, free of charge, at http://www.summit-materials.com as soon as reasonably practicable after they are filed with or furnished to the SEC.

We maintain an internet site at http://www.summit-materials.com. Our website and the information contained on or connected to that site are not incorporated into this report.

19

Table of Contents

ITEM  1A.    RISK FACTORS

Risks Related to Our Industry and Our Business

Industry Risks

Our business depends on activity within the construction industry and the strength of the local economies in which we operate.

We sell most of our construction materials and products and provide all of our paving and related services to the construction industry, so our results are significantly affected by the strength of the construction industry. Federal and state budget issues may negatively affect the amount of funding available for infrastructure spending, particularly highway construction, which constitutes a significant portion of our business. Demand for our products, particularly in the residential and nonresidential construction markets, could decline if companies and consumers cannot obtain funding for construction projects. In addition, a slow pace of economic activity typically results in delays or cancellations of capital projects.

Our earnings depend on the strength of the local economies in which we operate because of the high cost to transport our products relative to their price. Although some states in recent years, such as Texas, have increased their budgets for road construction, maintenance, rehabilitation and acquiring right of way for public roads, certain other states, such as Kentucky, have reduced their construction spending due to budget shortfalls from lower tax revenue and other factors. As a result, there has been a reduction in certain states’ investment in infrastructure spending. If economic and construction activity diminishes in one or more areas, particularly in our top revenue‑generating markets of Texas, Utah, Kansas and Missouri, our financial condition, results of operations and liquidity could be materially adversely affected.

Our business is cyclical and requires significant working capital to fund operations.

Our business is cyclical and requires that we maintain significant working capital to fund our operations. Our ability to generate sufficient cash flow depends on future performance, which will be subject to general economic conditions, industry cycles and financial, business and other factors affecting our operations, many of which are beyond our control. If we are unable to generate sufficient cash to operate our business and service our outstanding debt and other obligations, we may be required, among other things, to further reduce or delay planned capital or operating expenditures, sell assets or take other measures, including the restructuring of all or a portion of our debt, which may only be available, if at all, on unsatisfactory terms.

Weather can materially affect our business and we are subject to seasonality.

Nearly all of the products we sell and the services we provide are used or performed outdoors. Therefore, seasonal changes and other weather‑related conditions can adversely affect our business and operations through a decline in both the use and production of our products and demand for our services. Adverse weather conditions such as heavy or sustained rainy and cold weather in the spring and fall can reduce demand for our products and reduce sales, render our contracting operations less efficient or restrict our ability to ship our products. For example, unusually severe flooding conditions on the Mississippi River during the first half of 2019, negatively impacted our operations which affected our financial results. Major weather events such as hurricanes, tornadoes, tropical storms and heavy snows have adversely affected and could adversely affect sales in the near term and may be more severe due to climate change. In particular, our operations in the southeastern and Gulf Coast regions of the United States are at risk for hurricane activity, most notably in August, September and October. For example, in 2017, Hurricane Harvey adversely affected our operations not only during the days immediately before and after the storm, but also in the weeks and months after the storm as our customers recovered and reallocated resources in response to damage caused by the storm.

Construction materials production and shipment levels follow activity in the construction industry, which typically occurs in the spring, summer and fall. Warmer and drier weather during the second and third quarters of our fiscal year typically result in higher activity and revenue levels during those quarters. The first quarter of our fiscal year has typically lower levels of activity due to the weather conditions. Our second quarter varies greatly with spring rains and wide temperature variations. A cool wet spring increases drying time on projects, which can delay sales in the second quarter, while a warm dry spring may enable earlier project startup. Such adverse weather conditions can adversely affect our business, financial condition and results of operations if they occur with unusual intensity, during abnormal periods or last longer than usual in our major markets, especially during peak construction periods.

20

Table of Contents

Our industry is capital intensive and we have significant fixed and semi‑fixed costs. Therefore, our profitability is sensitive to changes in volume.

The property and machinery needed to produce our materials and products can be very expensive. Therefore, we need to spend a substantial amount of capital to purchase and maintain the equipment necessary to operate our business. Although we believe that our current cash balance, along with our projected internal cash flows and our available financing resources, will provide sufficient cash to support our currently anticipated operating and capital needs, if we are unable to generate sufficient cash to purchase and maintain the property and machinery necessary to operate our business, we may be required to reduce or delay planned capital expenditures or incur additional debt. In addition, given the level of fixed and semi‑fixed costs within our business, particularly at our cement production facilities, decreases in volumes could have a material adverse effect on our financial condition, results of operations and liquidity.

Within our local markets, we operate in a highly competitive industry.

The U.S. construction aggregates industry is highly fragmented with a large number of independent local producers in a number of our markets. Additionally, in most markets, we compete against large private and public infrastructure companies, some of which are also vertically‑integrated. Therefore, there is intense competition in a number of the markets in which we operate. This significant competition could lead to lower prices, lower sales volumes and higher costs in some markets, negatively affecting our financial condition, results of operations and liquidity.

Growth Risks

The success of our business depends in part on our ability to execute on our acquisition strategy.

A significant portion of our historical growth has occurred through acquisitions, and we will likely execute acquisition transactions in the future. We are presently evaluating, and we expect to continue to evaluate on an ongoing basis, possible acquisition transactions. We are presently engaged, and at any time in the future we may be engaged, in discussions or negotiations with respect to possible acquisitions, including larger transactions that would be significant to us. We regularly make, and we expect to continue to make, non‑binding acquisition proposals, and we may enter into letters of intent, in each case allowing us to conduct due diligence on a confidential basis. In addition, from time to time we may enter into dispositions or other transactions involving certain of our assets or businesses. We cannot predict the timing of any contemplated transactions. To successfully acquire a significant target, we may need to raise additional capital through additional equity issuances, additional indebtedness, or a combination of equity and debt issuances. There can be no assurance that we will enter into definitive agreements with respect to any contemplated transactions or that they will be completed. Our acquisition related growth has placed, and will continue to place, significant demands on our management and operational and financial resources. Acquisitions involve risks that, among other things, the businesses acquired will not perform as expected.

Our results of operations from these acquisitions could, in the future, result in impairment charges for any of our intangible assets, including goodwill, or other long‑lived assets, particularly if economic conditions worsen unexpectedly. As a result of these changes, our financial condition, results of operations and liquidity could be materially adversely affected. In addition, many of the businesses that we have acquired and will acquire have unaudited financial statements that have been prepared by the management of such companies and have not been independently reviewed or audited. We cannot assure you that the financial statements of companies we have acquired or will acquire would not be materially different if such statements were independently reviewed or audited. If such statements were to be materially different, the tangible and intangible assets we acquire may be more susceptible to impairment charges, which could have a material adverse effect on us.

The success of our business depends on our ability to successfully integrate acquisitions.

Acquisitions may require integration of the acquired companies’ sales and marketing, distribution, production, purchasing, information technology, finance and administrative organizations. We may not be able to integrate successfully any business we may acquire or have acquired into our existing business and any acquired businesses may not be profitable or as profitable as we had expected. Our inability to complete the integration of new businesses in a timely and orderly manner could increase costs and lower profits. Factors affecting the successful integration of acquired businesses include, but are not limited to, the following:

•We may become liable for certain liabilities of any acquired business, whether or not known to us. These risks could include, among others, tax liabilities, product liabilities, environmental liabilities and liabilities for employment practices. These liabilities may be significant.

21

Table of Contents

•Substantial attention from our senior management and the management of the acquired business may be required, which could decrease the time that they have to service and attract customers.

•Capital equipment at acquired businesses may require additional maintenance or need to be replaced sooner than we expected.

•The complete integration of acquired companies depends, to a certain extent, on the full implementation of our financial systems and policies.

•We may actively pursue a number of opportunities simultaneously and we may encounter unforeseen expenses, complications and delays, including difficulties in employing sufficient staff and maintaining operational and management oversight.

The success of our business depends on our ability to retain key employees of our acquired businesses.

We cannot assure you we will be able to retain local managers and employees who are important to the operations of our acquired businesses. The loss of key employees may have an adverse effect on the acquired business and on our business as a whole.

Our long‑term success is dependent upon securing and permitting aggregate reserves in strategically located areas. The inability to secure and permit such reserves could negatively affect our earnings in the future.

Aggregates are bulky and heavy and therefore difficult to transport efficiently. Because of the nature of the products, the freight costs can quickly surpass production costs. Therefore, except for geographic regions that do not possess commercially viable deposits of aggregates and are served by rail, barge or ship, the markets for our products tend to be localized around our quarry sites and are served by truck. New quarry sites often take a number of years to develop. Our strategic planning and new site development must stay ahead of actual growth. Additionally, in a number of urban and suburban areas in which we operate, it is increasingly difficult to permit new sites or expand existing sites due to community resistance. Therefore, our future success is dependent, in part, on our ability to accurately forecast future areas of high growth in order to locate optimal facility sites and on our ability to either acquire existing quarries or secure operating and environmental permits to open new quarries. If we are unable to accurately forecast areas of future growth, acquire existing quarries or secure the necessary permits to open new quarries, our financial condition, results of operations and liquidity could be materially adversely affected.

Economic Risks

The ongoing outbreak of the novel coronavirus (COVID-19) has caused severe disruptions in the U.S. and global economy and is expected to continue to adversely impact the economy, at least for the near term. While the full scale and scope of the long-term effects of the COVID-19 outbreak are unknown at this time, the overall impact on our business, operating results, cash flows and/or financial condition could be material.

As of the date of this report, there is an ongoing outbreak of COVID-19, which has spread to over 200 countries and territories, including the United States, and to every state in the United States. The United States and other countries have reacted to the COVID-19 outbreak with unprecedented government intervention. The global impact of the outbreak has been rapidly evolving, and many countries have reacted by instituting, or strongly encouraging quarantines and restrictions on travel, closing financial markets and/or restricting trading, limiting operations of non-essential businesses, and taking other restrictive measures designed to help slow the spread of COVID-19. Such actions are disrupting global supply chains, increasing rates of unemployment and adversely impacting many industries. The outbreak has had an adverse impact on economic and market conditions. The outbreak of COVID-19 caused significant volatility on the market price of our Class A common stock and the extent of its impact on our future results of operations and overall financial performance remains uncertain.

The scale and scope of the COVID-19 pandemic may heighten the potential adverse effects on our business, operating results, cash flows and/or financial condition of the risks described in this report, including the impact of:

•potentially unfavorable economic conditions for our clients and customers, particularly in the residential and non-residential sectors, and the construction industry generally;

•delays or cancellation of projects and delays in collecting on certain of our accounts receivable from our customers;

22

Table of Contents

•increased costs associated with compliance with new government regulations or restrictions, such as quarantines or social distancing mandates, which regulations or restrictions may curtail our normal operations in one or more of the markets in which we operate;

•significant disruptions at one or more of our locations, which could disrupt our operations, raise costs and reduce revenue and earnings in the affected areas;

•fluctuations in equity market prices (including that of our Class A common stock), interest rates and credit spreads limiting our ability to raise or deploy capital and affecting our overall liquidity: and

•a sustained longer term reduction in cash flows may be an indication some or all of our goodwill may not be realizable.

In addition, the COVID-19 pandemic has to date and may further adversely impact our business and financial condition in other areas, including as a result of:

•increased costs, including as a result of implementing health and safety protocols at our locations;

•disruptions to our supply and distribution channels, including delivery trucks;

•lower sales volumes due to reduced demand; and

•reduced state and local transportation budgets, particularly if such are not augmented by federal funding or if the federal government fails to act on a highway infrastructure bill.

The fluidity of this situation precludes any prediction as to the ultimate adverse impact of COVID-19 on economic and market conditions, and, as a result, present material uncertainty and risk with respect to our business. The duration and extent of the impact from the COVID-19 pandemic depends on future developments that cannot be accurately predicted at this time, such as the extent and effectiveness of containment actions, the success of vaccination efforts and the impact of these and other factors on our employees, customers, suppliers and partners. It is also possible that negative consequences of the pandemic may continue once the pandemic is controlled.

The adverse impact on our business, financial condition, operating results or liquidity or future results from the COVID-19 pandemic, or any similar future crisis could be material. The inherent uncertainty surrounding COVID-19, and likewise any similar crisis, also makes it more challenging for our management to estimate the future performance of our business and develop strategies to generate growth or achieve our objectives for fiscal 2021.

A decline in public infrastructure construction and reductions in governmental funding could adversely affect our earnings in the future.

A significant portion of our revenue is generated from publicly‑funded construction projects. As a result, if publicly‑funded construction decreases due to reduced federal or state funding or otherwise, our financial condition, results of operations and liquidity could be materially adversely affected.

Under U.S. law, annual funding levels for highways is subject to yearly appropriation reviews. This annual review of funding increases the uncertainty of many state departments of transportation regarding funds for highway projects. This uncertainty could result in states being reluctant to undertake large multi‑year highway projects which could, in turn, negatively affect our sales. We cannot be assured of the existence, amount and timing of appropriations for spending on federal, state or local projects. Federal support for the cost of highway maintenance and construction is dependent on congressional action. In addition, each state funds its infrastructure spending from specially allocated amounts collected from various taxes, typically gasoline taxes and vehicle fees, along with voter‑approved bond programs. Shortages in state tax revenues can reduce the amounts spent on state infrastructure projects, even below amounts awarded under legislative bills. In recent years, certain states have experienced state‑level funding pressures caused by lower tax revenues and an inability to finance approved projects. Delays or cancellations of state infrastructure spending could have a material adverse effect on our financial condition, results of operations and liquidity.

Our business relies on private investment in infrastructure, and periods of economic stagnation or recession may adversely affect our earnings in the future.

A significant portion of our sales are for projects with non‑public owners whose construction spending is affected by developers’ ability to finance projects. Residential and nonresidential construction could decline if companies and consumers are unable to finance construction projects or in periods of economic stagnation or recession, which could result in delays or cancellations of capital projects. If housing starts and nonresidential projects stagnate or decline, sale of our construction materials, downstream products and paving and related services may decline and our financial condition, results of operations and liquidity could be materially adversely affected.

23

Table of Contents

Environmental, health and safety laws and regulations and any changes to, or liabilities or litigation arising under, such laws and regulations could have a material adverse effect on our financial condition, results of operations and liquidity.

We are subject to a variety of federal, state, provincial and local laws and regulations relating to, among other things: (i) the release or discharge of materials into the environment; (ii) the management, use, generation, treatment, processing, handling, storage, transport or disposal of hazardous materials, including the management of hazardous and non-hazardous waste used as a fuel substitute in our cement kiln in Hannibal, Missouri; (iii) the management, use, generation, treatment, processing, handling, storage, transport or disposal of non‑hazardous solid waste used as a fuel substitute in our cement kiln in Davenport, Iowa; and (iv) the protection of public and employee health and safety and the environment. These laws and regulations impose strict liability in some cases without regard to negligence or fault and expose us to liability for the environmental condition of our currently or formerly owned, leased or operated facilities or third‑party waste disposal sites, and may expose us to liability for the conduct of others or for our actions, even if such actions complied with all applicable laws at the time these actions were taken. In particular, we may incur remediation costs and other related expenses because our facilities were constructed and operated before the adoption of current environmental laws and the institution of compliance practices or because certain of our processes are regulated. These laws and regulations may also expose us to liability for claims of personal injury or property or natural resource damage related to alleged exposure to, or releases of, regulated or hazardous materials. The existence of contamination at properties we own, lease or operate could also result in increased operational costs or restrictions on our ability to use those properties as intended.

There is an inherent risk of liability in the operation of our business, and despite our compliance efforts, we may be in noncompliance with environmental, health and safety laws and regulations from time to time. These potential liabilities or events of noncompliance could have a material adverse effect on our operations and profitability. In many instances, we must have government approvals, certificates, permits or licenses in order to conduct our business, which could require us to make significant capital, operating and maintenance expenditures to comply with environmental, health and safety laws and regulations. Our failure to obtain and maintain required approvals, certificates, permits or licenses or to comply with applicable governmental requirements could result in sanctions, including substantial fines or possible revocation of our authority to conduct some or all of our operations. Governmental requirements that affect our operations also include those relating to air and water quality, waste management, asset reclamation, the operation and closure of municipal waste and construction and demolition debris landfills, remediation of contaminated sites and worker health and safety. These requirements are complex and subject to frequent change, often in connection with changes in the presidential administration. Stricter laws and regulations, more stringent interpretations of existing laws or regulations or the future discovery of environmental conditions may impose new liabilities on us, reduce operating hours, require additional investment by us in pollution control equipment or impede our opening new or expanding existing plants or facilities.

We have incurred, and may in the future incur, significant capital and operating expenditures to comply with such laws and regulations, and in some cases we have been or could be named as a defendant in litigation brought by governmental agencies or private parties. In addition, we have recorded liabilities in connection with our reclamation and landfill closure obligations, but there can be no assurances that the costs of our obligations will not exceed our estimates. The cost of complying with such laws and defending against any litigation could have a material adverse effect on our financial condition, results of operations and liquidity.

We may incur significant costs in connection with pending and future litigation.

We have seen increases in litigation as the scope of our business and operations has grown. We are, or may become, party to various lawsuits, claims, investigations, and proceedings, including but not limited to personal injury, environmental, property entitlements and land use, commercial, contract, product liability, health and safety, and employment matters. The outcome of pending or future lawsuits, claims, investigations, or proceedings is often difficult to predict and could be adverse and material in amount. Development in these proceedings can lead to changes in management’s estimates of liabilities associated with these proceedings including the judge’s rulings or judgments, jury verdicts, settlements, or changes in applicable law. Future adverse rulings, settlements, or unfavorable developments could result in charges that could have a material adverse effect on our results of operations and cash flows in a particular period. In addition, the defense of these lawsuits, claims, investigations, and proceedings may divert our management’s attention, and we may incur significant costs in defending these matters.

Shortages of, or increases in prices for, commodities, labor and other production and delivery inputs could restrict our ability to operate our business and could have significant impacts on our operating costs.

24

Table of Contents

Shortages of, or increases in prices for, production and delivery inputs, including commodities and labor, and other inputs related to the production and delivery of our products, could adversely affect our business. Our cost of revenue consists of production and delivery inputs, which primarily include labor, utilities, raw materials, fuel, transportation, royalties and other direct costs incurred in the production and delivery of our products and services. Increases in these costs, as a result of general economic conditions, inflationary pressures or otherwise, may reduce our operating margin and adversely affect our financial position if we are unable to hedge or otherwise offset such increases. Specifically, significant increases or fluctuations in the prices of certain energy commodities, including diesel fuel, liquid asphalt and other petroleum-based resources, which we consume significant amounts of in our production and distribution processes, could negatively affect the results of our business operations or cause our results to suffer. Additionally, labor is a meaningful component in our ability to operate our business and can have a significant impact on the cost of operating our business. Labor shortages could restrict our ability to operate our business or result in increased labor costs as a result of wage increases due to competition for qualified workers. Increased labor costs, whether due to labor shortages, changing demographics of the overall work force or otherwise may reduce our operating margin and adversely affect our financial position.

Availability of and pricing for raw materials and labor can be affected by various national, regional, local, economic and political factors. For example, recent government-imposed tariffs and trade regulations on imported raw materials could have significant impacts on our costs to operate our business.

Financial Risks

Difficult and volatile conditions in the credit markets could affect our financial condition, results of operations and liquidity.

Demand for our products is primarily dependent on the overall health of the economy, and federal, state and local public infrastructure funding levels. A stagnant or declining economy tends to produce less tax revenue for public infrastructure agencies, thereby decreasing a source of funds available for spending on public infrastructure improvements, which constitute a significant part of our business.

There is a likelihood that we will not be able to collect on certain of our accounts receivable from our customers. If our customers are unable to obtain credit or unable to obtain credit in a timely manner, they may be unable to pay us, which could have a material adverse effect on our financial condition, results of operations and liquidity.

If we are unable to accurately estimate the overall risks, requirements or costs when we bid on or negotiate contracts that are ultimately awarded to us, we may achieve lower than anticipated profits or incur contract losses.

Even though the majority of our government contracts contain raw material escalators to protect us from certain input material price increases, a portion or all of the contracts are often on a fixed cost basis. Pricing on a contract with a fixed unit price is based on approved quantities irrespective of our actual costs and contracts with a fixed total price require that the total amount of work be performed for a single price irrespective of our actual costs. We realize profit on our contracts only if our revenue exceeds actual costs, which requires that we successfully estimate our costs and then successfully control actual costs and avoid cost overruns. If our cost estimates for a contract are inadequate, or if we do not execute the contract within our cost estimates, then cost overruns may cause us to incur a loss or cause the contract not to be as profitable as we expected. The costs incurred and profit realized, if any, on our contracts can vary, sometimes substantially, from our original projections due to a variety of factors, including, but not limited to:

•failure to include materials or work in a bid, or the failure to estimate properly the quantities or costs needed to complete a lump sum contract;

•delays caused by weather conditions or otherwise failing to meet scheduled acceptance dates;

•contract or project modifications or conditions creating unanticipated costs that are not covered by change orders;

•changes in availability, proximity and costs of materials, including liquid asphalt, cement, aggregates and other construction materials (such as stone, gravel, sand and oil for asphalt paving), as well as fuel and lubricants for our equipment;

•to the extent not covered by contractual cost escalators, variability and inability to predict the costs of purchasing diesel, liquid asphalt and cement;

25

Table of Contents

•availability and skill level of workers;

•failure by our suppliers, subcontractors, designers, engineers or customers to perform their obligations;

•fraud, theft or other improper activities by our suppliers, subcontractors, designers, engineers, customers or our own personnel;

•mechanical problems with our machinery or equipment;

•citations issued by any governmental authority, including OSHA and MSHA;

•difficulties in obtaining required governmental permits or approvals;

•changes in applicable laws and regulations;

•uninsured claims or demands from third parties for alleged damages arising from the design, construction or use and operation of a project of which our work is part; and

•public infrastructure customers may seek to impose contractual risk‑shifting provisions more aggressively which may result in us facing increased risks.

These factors, as well as others, may cause us to incur losses, which could have a material adverse effect on our financial condition, results of operations and liquidity.

We could incur material costs and losses as a result of claims that our products do not meet regulatory requirements or contractual specifications.

We provide our customers with products designed to meet building code or other regulatory requirements and contractual specifications for measurements such as durability, compressive strength, weight‑bearing capacity and other characteristics. If we fail or are unable to provide products meeting these requirements and specifications, material claims may arise against us and our reputation could be damaged. Additionally, if a significant uninsured, non‑indemnified or product‑related claim is resolved against us in the future, that resolution could have a material adverse effect on our financial condition, results of operations and liquidity.

The cancellation of a significant number of contracts or our disqualification from bidding for new contracts could have a material adverse effect on our financial condition, results of operations and liquidity.

We could be prohibited from bidding on certain government contracts if we fail to maintain qualifications required by the relevant government entities. In addition, contracts with governmental entities can usually be canceled at any time by them with payment only for the work completed. A cancellation of an unfinished contract or our disqualification from the bidding process could result in lost revenue and cause our equipment to be idled for a significant period of time until other comparable work becomes available, which could have a material adverse effect on our financial condition, results of operations and liquidity.

Our operations are subject to special hazards that may cause personal injury or property damage, subjecting us to liabilities and possible losses which may not be covered by insurance.

Operating hazards inherent in our business, some of which may be outside our control, can cause personal injury and loss of life, damage to or destruction of property, plant and equipment and environmental damage. We maintain insurance coverage in amounts and against the risks we believe are consistent with industry practice, but this insurance may not be adequate or available to cover all losses or liabilities we may incur in our operations. Our insurance policies are subject to varying levels of deductibles. However, liabilities subject to insurance are difficult to estimate due to unknown factors, including the severity of an injury, the determination of our liability in proportion to other parties, the number of incidents not reported and the effectiveness of our safety programs. If we were to experience insurance claims or costs above our estimates, our financial condition, results of operations and liquidity could be materially adversely affected.

Unexpected factors affecting self‑insurance claims and reserve estimates could adversely affect our business.

26

Table of Contents

We use a combination of third‑party insurance and self‑insurance to provide for potential liabilities for workers’ compensation, general liability, vehicle accident, property and medical benefit claims. Although we seek to minimize our exposure on individual claims, for the benefit of costs savings we have accepted the risk of multiple independent material claims arising. We estimate the projected losses and liabilities associated with the risks retained by us, in part, by considering historical claims experience, demographic and severity factors and other actuarial assumptions which, by their nature, are subject to a high degree of variability. Among the causes of this variability are unpredictable external factors affecting future inflation rates, discount rates, litigation trends, legal interpretations, benefit level changes and claim settlement patterns. Any such matters could have a material adverse effect on our financial condition, results of operations and liquidity.

Our substantial leverage could adversely affect our financial condition, our ability to raise additional capital to fund our operations, our ability to operate our business, our ability to react to changes in the economy or our industry and our ability to pay our debts, which could divert our cash flow from operations to debt payments.

We are highly leveraged. As of January 2, 2021, our total debt was approximately $1.9 billion, which includes $1.3 billion of Senior Notes and $616.3 million of senior secured indebtedness under our senior secured credit facilities and we had an additional $329.1 million of unutilized capacity under our senior secured revolving credit facility (after giving effect to approximately $15.9 million of letters of credit outstanding).

Our high degree of leverage could have important consequences, including:

•increasing our vulnerability to general economic and industry conditions;

•requiring a substantial portion of cash flow from operations to be dedicated to the payment of principal and interest on our indebtedness, thereby reducing our ability to use our cash flow to fund our operations, capital expenditures and future business opportunities;

•the deductibility of our interest expense is currently limited under existing law and would be further limited if proposed regulations are finalized in their current form;

•subject us to the risk of increased interest rates as a portion of our borrowings under our senior secured credit facilities are exposed to variable rates of interest;

•restricting us from making strategic acquisitions or causing us to make non-strategic divestitures;

•limiting our ability to obtain additional financing for working capital, capital expenditures, debt service requirements, acquisitions and general corporate or other purposes;

•limiting our ability to adjust to changing market conditions and placing us at a competitive disadvantage compared to our competitors who are less highly leveraged; and

•making it more difficult for us to make payments on our debt.

Borrowings under our senior secured credit facilities are at variable rates of interest and expose us to interest rate risk. If interest rates increase, our debt service obligations on the variable rate indebtedness will increase even though the amount borrowed remained the same, and our net income and cash flows, including cash available for servicing our indebtedness, will correspondingly decrease. We historically have and may in the future enter into interest rate swaps that involve the exchange of floating for fixed rate interest payments in order to reduce interest rate volatility. However, we may not maintain interest rate swaps with respect to all of our variable rate indebtedness, and any interest rate swaps we enter into may not fully mitigate our interest rate risk. In addition, certain of our variable rate indebtedness uses London Inter-bank Offered Rate (“LIBOR”) as a benchmark for establishing the rate of interest. LIBOR has been the subject of national, international and other regulatory guidance and proposals for reform. The United Kingdom's Financial Conduct Authority, which regulates LIBOR, announced in 2017 that it intends to stop encouraging banks to submit LIBOR rates after 2021. However, the ICE Benchmark Administration, in its capacity as administrator of USD LIBOR, has announced that it intends to extend publication of USD LIBOR (other than one-week and two-month tenors) by 18 months to June 2023. Notwithstanding this possible extension, a joint statement by key regulatory authorities calls on banks to cease entering into new contracts that use USD LIBOR as a reference rate by no later than December 31, 2021. The consequences of these developments cannot be entirely predicted, but could include an increase in the cost of our variable rate indebtedness. If LIBOR ceases to exist or if the methods of calculating LIBOR change from their current form, we may also need to renegotiate our variable rate indebtedness that utilizes LIBOR as a factor in determining the interest rate to replace LIBOR with the new standard that is established. In addition, the

27

Table of Contents

indentures that govern the Senior Notes and the amended and restated credit agreement governing our senior secured credit facilities (“Credit Agreement”) contain restrictive covenants that limit our ability to engage in activities that may be in our long-term best interest. Our failure to comply with those covenants could result in an event of default which, if not cured or waived, could result in the acceleration of all our debt.

Despite our current level of indebtedness, we and our subsidiaries may still incur substantially more debt. This could reduce our ability to satisfy our current obligations and further exacerbate the risks to our financial condition described above.

We and our subsidiaries may incur significant additional indebtedness in the future to fund acquisitions as part of our growth strategy. Although the indentures governing the Senior Notes and the Credit Agreement contain restrictions on the incurrence of additional indebtedness, these restrictions are subject to a number of qualifications and exceptions, and we could incur substantial additional indebtedness in compliance with these restrictions.

Our senior secured credit facilities include an uncommitted incremental facility that allows us the option to increase the amount available under the term loan facility and/or the senior secured revolving credit facility by (i) $225.0 million plus (ii) an additional amount so long as we are in pro forma compliance with a consolidated first lien net leverage ratio. Availability of such incremental facilities will be subject to, among other conditions, the absence of an event of default and the receipt of commitments by existing or additional financial institutions.

We may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful.

Our ability to make scheduled payments on our debt obligations, refinance our debt obligations and fund planned capital expenditures and other corporate expenses depends on our financial condition and operating performance, which is subject to prevailing economic and competitive conditions. We are also subject to certain financial, business, legislative, regulatory and legal restrictions on the payment of distributions and dividends. Many of these factors are beyond our control. We may not be able to maintain a level of cash flows from operating activities sufficient to permit us to pay the principal, premium, if any, and interest on our indebtedness, which would constitute an event of default if not cured. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources.” If our cash flows and capital resources are insufficient to fund our debt service obligations or our other needs, we may be forced to reduce or delay investments and capital expenditures, seek additional capital, restructure or refinance our indebtedness or sell assets. These alternative measures may not be successful and may not permit us to meet our scheduled debt service obligations or fund planned capital expenditures. Significant delays in our planned capital expenditures may materially and adversely affect our future revenue prospects. In addition, our ability to restructure or refinance our debt will depend on the capital markets and our financial condition at such time. Any refinancing of our debt could be at higher interest rates and may require us to comply with more onerous covenants, which could further restrict our business operations. The Credit Agreement and the indentures governing the Senior Notes restrict our ability to use the proceeds from asset sales. We may not be able to consummate those asset sales to raise capital or sell assets at prices that we believe are fair and proceeds that we do receive may not be adequate to meet any debt service obligations then due. In addition, any failure to make payments of interest and principal on our outstanding indebtedness on a timely basis would likely result in a reduction of our credit rating, which could harm our ability to incur additional indebtedness.

The indentures governing the Senior Notes and the Credit Agreement contain covenants and provisions that are restrictive.

The indentures governing the Senior Notes and Credit Agreement contain restrictive covenants that, among other things, limit our ability, and the ability of our restricted subsidiaries, to:

•incur additional indebtedness, issue certain preferred shares or issue guarantees;

•pay dividends, redeem our membership interests or make other restricted payments, including purchasing our Class A common stock;

•make investments, loans or advances;

•incur additional liens;

•transfer or sell assets;

28

Table of Contents

•merge or engage in consolidations;

•enter into certain transactions with our affiliates;

•designate subsidiaries as unrestricted subsidiaries;

•repay subordinated indebtedness; and

•change our lines of business.

The senior secured credit facilities also require us to maintain a maximum first lien net leverage ratio. The Credit Agreement also contains certain customary representations and warranties, affirmative covenants and events of default (including, among others, an event of default upon a change of control). If an event of default occurs, the lenders under our senior secured credit facilities will be entitled to take various actions, including the acceleration of amounts due under our senior secured credit facilities and all actions permitted to be taken by a secured creditor. Our failure to comply with obligations under the indentures governing the Senior Notes and the Credit Agreement may result in an event of default under the indenture or the amended and restated Credit Agreement. A default, if not cured or waived, may permit acceleration of our indebtedness. If our indebtedness is accelerated, we may not have sufficient funds available to pay the accelerated indebtedness or the ability to refinance the accelerated indebtedness on terms favorable to us or at all.

Other Risks

Our success is dependent on our senior management team and our ability to retain and attract qualified personnel.

Our success depends on the continuing services of key members of our management team. We believe our senior management team possesses valuable knowledge and skills that are crucial to our success and would be difficult to replicate or replace.

Competition for senior management is intense, and we may not be able to retain our management team or attract additional qualified personnel. The unexpected loss of a member of senior management has in the past and could in the future require certain of our remaining senior officers to divert immediate attention, which can be substantial or require costly external resources in the short term. While we are developing plans for key management succession and have long-term compensation plans designed to retain our senior employees, if our retention and succession plans do not operate effectively, our business could be adversely affected. The inability to adequately fill vacancies in our senior executive positions on a timely basis could negatively affect our ability to implement our business strategy, which could have a material adverse effect on our results of operations, financial condition and liquidity.

We use large amounts of electricity, diesel fuel, liquid asphalt and other petroleum‑based resources that are subject to potential reliability issues, supply constraints and significant price fluctuation, which could have a material adverse effect on our financial condition, results of operations and liquidity.

In our production and distribution processes, we consume significant amounts of electricity, diesel fuel, liquid asphalt and other petroleum‑based resources. The availability and pricing of these resources are subject to market forces that are beyond our control. Furthermore, we are vulnerable to any reliability issues experienced by our suppliers, which also are beyond our control. Our suppliers contract separately for the purchase of such resources and our sources of supply could be interrupted should our suppliers not be able to obtain these materials due to higher demand or other factors that interrupt their availability. Variability in the supply and prices of these resources could have a material adverse effect on our financial condition, results of operations and liquidity.

Climate change and climate change legislation or regulations may adversely affect our business.

A number of governmental bodies have finalized, proposed or are contemplating legislative and regulatory changes in response to the potential effects of climate change, and Canada and the United States have agreed to the Paris Agreement, the successor to the Kyoto Protocol to the United Nations Framework Convention on Climate Change, which could lead to additional legislative and regulatory changes in those countries. In addition, in the United States, there may be additional legislative and regulatory changes in connection with the recent change in presidential administration. Such legislation or regulation has and potentially could include provisions for a “cap and trade” system of allowances and credits, among other provisions. The EPA promulgated a mandatory reporting rule covering greenhouse gas (“GHG”) emissions from sources considered to be large emitters. The EPA has also promulgated a GHG emissions permitting rule, referred to as the “Tailoring

29

Table of Contents

Rule” which sets forth criteria for determining which facilities are required to obtain permits for GHG emissions pursuant to the U.S. Clean Air Act’s Prevention of Significant Deterioration (“PSD”) and Title V operating permit programs. The U.S. Supreme Court ruled in June 2014 that the EPA exceeded its statutory authority in issuing the Tailoring Rule but upheld the Best Available Control Technology (“BACT”) requirements for GHGs emitted by sources already subject to PSD requirements for other pollutants. Our cement plants and one of our landfills hold Title V Permits. If future modifications to our facilities require PSD review for other pollutants, GHG BACT requirements may also be triggered, which could require significant additional costs.

Other potential effects of climate change include physical effects such as disruption in production and product distribution as a result of major storm events and shifts in regional weather patterns and intensities. There is also a potential for climate change legislation and regulation to adversely affect the cost of purchased energy and electricity.

The effects of climate change on our operations are highly uncertain and difficult to estimate. However, because a chemical reaction inherent to the manufacture of Portland cement releases carbon dioxide, a GHG, cement kiln operations may be disproportionately affected by future regulation of GHGs. Climate change and legislation and regulation concerning GHGs could have a material adverse effect on our financial condition, results of operations and liquidity.

Unexpected operational difficulties at our facilities could disrupt operations, raise costs, and reduce revenue and earnings in the affected locations.

The reliability and efficiency of certain of our facilities is dependent upon vital pieces of equipment, such as our cement manufacturing kilns in Hannibal, Missouri and Davenport, Iowa. Although we have scheduled outages to perform maintenance on certain of our facilities, vital equipment may periodically experience unanticipated disruptions due to accidents, mechanical failures or other unanticipated events such as fires, explosions, violent weather conditions or other unexpected operational difficulties. A substantial interruption of one of our facilities could require us to make significant capital expenditures to restore operations and could disrupt our operations, raise costs, and reduce revenue and earnings in the affected locations.

We are dependent on information technology. Our systems and infrastructure face certain risks, including cyber security risks and data leakage risks.

We are dependent on information technology systems and infrastructure to carry out important operational activities and to maintain our business records. In addition, we rely on the systems of third parties, such as third-party vendors. As part of our normal business activities, we collect and store certain personal identifying and confidential information relating to our customers, employees, vendors and suppliers, and maintain operational and financial information related to our business. We may share some of this confidential information with our vendors. We rely on our vendors and third-party service providers to maintain effective cybersecurity measures to keep our information secure. Any significant breakdown, invasion, destruction or interruption of our existing or future systems by employees, third parties, vendors, others with authorized access to our systems, or unauthorized persons could negatively affect operations. In addition, future systems upgrades or changes could be time consuming, costly and result in unexpected interruptions or other adverse effects on our business. There is also a risk that we could experience a business interruption, theft of information or reputational damage as a result of a cyber-attack, such as an infiltration of a data center, or data leakage of confidential information either internally or at our third‑party providers.

While we have invested in the protection of our data and information technology to reduce these risks and periodically test the security of our information systems network, there can be no assurance that our efforts will prevent breakdowns or breaches in our systems that could have a material adverse effect on our financial condition, results of operations and liquidity. Our or our vendors’ and third-party service providers’ failure to maintain the security of the data we are required to protect could result in damage to our reputation, financial obligations to third parties, fines, penalties, regulatory proceedings and private litigation with potentially large costs, and also in deterioration in customers’ confidence in us and other competitive disadvantages. While, to date, we have not had a significant cybersecurity breach or attack that has a material impact on our business or results of operations, there can be no assurance that our efforts to maintain the security and integrity of our information technology networks and related systems will be effective or that attempted security breaches or disruptions would not be successful or damaging.

Labor disputes, strikes, other forms of work stoppage or slowdown or other union activities could disrupt operations of our businesses.

As of January 2, 2021, labor unions represented approximately 7% of our total employees, substantially all in our cement division and at our Canadian operations. Our collective bargaining agreements for employees generally expire between

30

Table of Contents

2022 and 2026. Although we believe we have good relations with our employees and unions, disputes with our trade unions, union organizing activity, or the inability to renew our labor agreements or adverse labor relations at any of our locations, could lead to strikes, other forms of work stoppage, slowdowns or other actions that could disrupt our operations and, consequently, have a material adverse effect on our financial condition, results of operations and liquidity.

Organizational Structure Risks

Summit Inc.’s only material asset is its interest in Summit Holdings, and it is accordingly dependent upon distributions from Summit Holdings to pay taxes, make payments under the TRA and pay dividends.

Summit Inc. is a holding company and has no material assets other than its ownership of LP Units and has no independent means of generating revenue. Summit Inc. intends to cause Summit Holdings to make distributions to holders and former holders of LP Units in an amount sufficient to cover all applicable taxes at assumed tax rates, payments under the TRA and cash distributions, if any, declared by it. Deterioration in the financial condition, earnings or cash flow of Summit Holdings and its subsidiaries for any reason, or restrictions on payments by subsidiaries to their parent companies under applicable laws, including laws that require companies to maintain minimum amounts of capital and to make payments to stockholders only from profits, could limit or impair their ability to pay such distributions. Additionally, to the extent that Summit Inc. needs funds, and Summit Holdings is restricted from making such distributions under applicable law or regulation or under the terms of our financing arrangements, or is otherwise unable to provide such funds, it could have a material adverse effect on our financial condition, results of operations and liquidity.

Payments of dividends, if any, are at the discretion of our board of directors after taking into account various factors, including our business, operating results and financial condition, current and anticipated cash needs, plans for expansion and any legal or contractual limitations on our ability to pay dividends. Any financing arrangement that we enter into in the future may include restrictive covenants that limit our ability to pay dividends. In addition, Summit Holdings is generally prohibited under Delaware law from making a distribution to a limited partner to the extent that, at the time of the distribution, after giving effect to the distribution, liabilities of Summit Holdings (with certain exceptions) exceed the fair value of its assets. Subsidiaries of Summit Holdings are generally subject to similar legal limitations on their ability to make distributions to Summit Holdings.

Summit Inc. anticipates using certain distributions from Summit Holdings to acquire additional LP Units.

The limited partnership agreement of Summit Holdings provides for cash distributions, which we refer to as “tax distributions,” to be made to the holders of the LP Units if it is determined that the income of Summit Inc. will give rise to net taxable income allocable to holders of LP Units. To the extent that future tax distributions Summit Inc. receives exceed the amounts it actually requires to pay taxes and make payments under the TRA, we expect that our board of directors will cause Summit Inc. to use such excess cash to acquire additional newly-issued LP Units at a per unit price determined by reference to the volume weighted average price per share of the Class A common stock during the five trading days immediately preceding the date of the relevant board action. See “Part II, Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities–Dividends.” Although we anticipate that any such decision by our board of directors would be approved by a majority of our independent directors, any cash used by Summit Inc. to acquire additional LP Units would not then be available to fund cash dividends on the Class A common stock.

Summit Inc. is required to pay exchanging holders of LP Units for most of the benefits relating to any additional tax depreciation or amortization deductions that we may claim as a result of the tax basis step-up we receive in connection with sales or exchanges of LP Units and related transactions.

Holders of LP Units (other than Summit Inc.) may, subject to the vesting and minimum retained ownership requirements and transfer restrictions applicable to such holders as set forth in the limited partnership agreement of Summit Holdings, and subject to the terms of an exchange agreement, exchange their LP Units for Class A common stock on a one-for-one basis. The exchanges are expected to result in increases in the tax basis of the tangible and intangible assets of Summit Holdings. These increases in tax basis may increase (for tax purposes) depreciation and amortization deductions and therefore reduce the amount of tax that Summit Inc. would otherwise be required to pay in the future, although the Internal Revenue Service (the “IRS”) may challenge all or part of the tax basis increase, and a court could sustain such a challenge.

In connection with the initial public offering ("IPO"), we entered into a TRA with the holders of LP Units that provides for the payment by Summit Inc. to exchanging holders of LP Units of 85% of the benefits, if any, that Summit Inc. is deemed to realize as a result of the increases in tax basis described above and certain other tax benefits related to entering into the TRA, including tax benefits attributable to payments under the TRA. This payment obligation is an obligation of Summit

31

Table of Contents

Inc. and not of Summit Holdings. While the actual increase in tax basis and the actual amount and utilization of net operating losses, as well as the amount and timing of any payments under the TRA, will vary depending upon a number of factors, including the timing of exchanges, the price of shares of our Class A common stock at the time of the exchange, the extent to which such exchanges are taxable and the amount and timing of our income, we expect that as a result of the size of the transfers and increases in the tax basis of the tangible and intangible assets of Summit Holdings and our possible utilization of net operating losses, the payments that Summit Inc. may make under the TRA will be substantial.

In certain cases, payments under the TRA may be accelerated or significantly exceed the actual benefits Summit Inc. realizes in respect of the tax attributes subject to the TRA.

The TRA provides that upon certain changes of control, or if, at any time, Summit Inc. elects an early termination of the TRA, Summit Inc.’s obligations under the TRA may be accelerated. Summit Inc.’s ability to achieve benefits from any tax basis increase or net operating losses, and the payments to be made under the TRA, will depend upon a number of factors, including the timing and amount of our future income. As a result, even in the absence of a change of control or an election to terminate the TRA, payments under the TRA could be in excess of 85% of Summit Inc.’s actual cash tax savings.

The actual cash tax savings realized by Summit Inc. under the TRA may be less than the corresponding TRA payments. Further, payments under the TRA may be made years in advance of when the benefits, if any, are realized on our federal and state income tax returns. Accordingly, there may be a material negative effect on our liquidity if the payments under the TRA exceed the actual cash tax savings that Summit Inc. realizes in respect of the tax attributes subject to the TRA and/or distributions to Summit Inc. by Summit Holdings are not sufficient to permit Summit Inc. to make payments under the TRA. Based upon a $20.08 share price of our Class A common stock, which was the closing price on December 31, 2020, and a contractually defined discount rate of 1.34%, we estimate that if Summit Inc. were to exercise its termination right, the aggregate amount of these termination payments would be approximately $312 million. The foregoing number is merely an estimate and the actual payments could differ materially. We may need to incur debt to finance payments under the TRA to the extent our cash resources are insufficient to meet our obligations under the TRA as a result of timing discrepancies or otherwise.

Ownership of Our Class A Common Stock Risks

The market price of shares of our Class A common stock has fluctuated significantly, which could cause the value of your investment to decline.

The market price of our Class A common stock has fluctuated significantly in the past and could be subject to wide fluctuations in the future. During the year ended January 2, 2021, the closing price of our Class A common stock on the New York Stock Exchange has fluctuated from a low of $8.48 per share to a high of $24.59 per share. Securities markets worldwide experience significant price and volume fluctuations. This market volatility, as well as general economic, market or political conditions, could reduce the market price of shares of our Class A common stock regardless of our operating performance. In addition, our operating results could be below the expectations of public market analysts and investors due to a number of potential factors, including variations in our quarterly operating results or dividends, if any, to stockholders, additions or departures of key management personnel, failure to meet analysts’ earnings estimates, publication of research reports about our industry, litigation and government investigations, changes or proposed changes in laws or regulations or differing interpretations or enforcement thereof affecting our business, adverse market reaction to any indebtedness we may incur or securities we may issue in the future, changes in market valuations of similar companies or speculation in the press or investment community, announcements by our competitors of significant contracts, acquisitions, dispositions, strategic partnerships, joint ventures or capital commitments, adverse publicity about the industries we participate in or individual scandals, and in response the market price of shares of our Class A common stock could decrease significantly. You may be unable to resell your shares of Class A common stock for a profit.

In recent years, stock markets have experienced extreme price and volume fluctuations. In the past, following periods of volatility in the overall market and the market price of a company’s securities, securities class action litigation has often been instituted against these companies. Such litigation, if instituted against us, could result in substantial costs and a diversion of our management’s attention and resources.

Because we have no current plans to pay cash dividends on our Class A common stock, you may not receive any return on investment unless you sell your Class A common stock for a price greater than that which you paid for it.

32

Table of Contents

We have no current plans to pay any cash dividends. The declaration, amount and payment of any future dividends on shares of Class A common stock will be at the sole discretion of our board of directors. Our board of directors may take into account general and economic conditions, our financial condition and results of operations, our available cash and current and anticipated cash needs, capital requirements, contractual, legal, tax and regulatory restrictions and implications on the payment of dividends by us to our stockholders or by our subsidiaries to us and such other factors as our board of directors may deem relevant. In addition, our ability to pay dividends is limited by our senior secured credit facilities and our Senior Notes and may be limited by covenants of other indebtedness we or our subsidiaries incur in the future. As a result, you may not receive any return on an investment in our Class A common stock unless you sell our Class A common stock for a price greater than that which you paid for it.

Future issuance of additional Class A common stock, or securities convertible or exchangeable for Class A common stock, may adversely affect the market price of the shares of our Class A common stock.

As of January 2, 2021, we had 114,390,595 shares of Class A common stock issued and outstanding, and 885,609,405 shares authorized but unissued. The number of unissued shares includes 2,873,170 shares available for issuance upon exchange of LP Units held by limited partners of Summit Holdings. Our amended and restated certificate of incorporation authorizes us to issue shares of Class A common stock and options, rights, warrants and appreciation rights relating to Class A common stock for the consideration and on the terms and conditions established by our board of directors in its sole discretion. We may need to raise significant additional equity capital in connection with acquisitions or otherwise. Similarly, the limited partnership agreement of Summit Holdings permits Summit Holdings to issue an unlimited number of additional limited partnership interests of Summit Holdings with designations, preferences, rights, powers and duties that are different from, and may be senior to, those applicable to the LP Units, and which may be exchangeable for shares of our Class A common stock. Sales of substantial amounts of Class A common stock, or securities convertible or exchangeable for Class A common stock, or the perception that such sales could occur may adversely affect the prevailing market price for the shares of our Class A common stock. Thus holders of our Class A common stock will bear the risk of our future issuances reducing the market price of our Class A common stock and diluting the value of their stock holdings in us.

An aggregate of 13,500,000 shares of Class A common stock may be granted under the Summit Materials, Inc. 2015 Omnibus Incentive Plan (the “Omnibus Incentive Plan”) of which 4.3 million shares were available for grant as of January 2, 2021. In addition, as of January 2, 2021 we had outstanding warrants to purchase an aggregate of 100,037 shares of Class A common stock. Any Class A common stock that we issue, including under our Omnibus Incentive Plan or other equity incentive plans that we may adopt in the future, or upon exercise of outstanding options or warrants, or other securities convertible or exchangeable for Class A common stock would dilute the percentage ownership held by the investors of our Class A common stock and may adversely affect the market price of the shares of our Class A common stock.

Anti-takeover provisions in our organizational documents and Delaware law might discourage or delay acquisition attempts for us that you might consider favorable.

Our amended and restated certificate of incorporation and amended and restated bylaws contain provisions that may make the merger or acquisition of our company more difficult without the approval of our board of directors. Among other things, these provisions:

•would allow us to authorize the issuance of undesignated preferred stock in connection with a stockholder rights plan or otherwise, the terms of which may be established and the shares of which may be issued without stockholder approval, and which may include super voting, special approval, dividend, or other rights or preferences superior to the rights of the holders of Class A common stock;

•prohibit stockholder action by written consent unless such action is recommended by all directors then in office; 

•provide that the board of directors is expressly authorized to make, alter, or repeal our bylaws and that our stockholders may only amend our bylaws with the approval of 66 2/3% or more in voting power of all outstanding shares of our capital stock.

•establish advance notice requirements for nominations for elections to our board or for proposing matters that can be acted upon by stockholders at stockholder meetings.

Further, as a Delaware corporation, we are also subject to provisions of Delaware law, which may impede or discourage a takeover attempt that our stockholders may find beneficial. These anti-takeover provisions and other provisions under Delaware law could discourage, delay or prevent a transaction involving a change in control of our company, including

33

Table of Contents

actions that our stockholders may deem advantageous, or negatively affect the trading price of our Class A common stock. These provisions could also discourage proxy contests and make it more difficult for you and other stockholders to elect directors of your choosing and to cause us to take other corporate actions you desire.

34

Table of Contents

ITEM  1B.    UNRESOLVED STAFF COMMENTS  

None.

ITEM 2.     PROPERTIES.

Properties

Our headquarters are located in a 21,615 square foot office space, which we lease in Denver, Colorado, under a lease expiring on January 31, 2024.

As of January 2, 2021, we had 4.1 billion tons of proven and probable aggregates reserves serving our aggregates and cement businesses and operated over 400 sites and plants, to which we believe we have adequate road, barge and/or railroad access. By segment, our estimate of proven and probable reserves as of January 2, 2021 for which we have permits for extraction and that we consider to be recoverable aggregates of suitable quality for economic extraction are shown in the table below along with average annual production.

		Tonnage of reserves for
		each general type of			Average years	Percent of
	Number of	aggregate			until depletion	reserves owned and
	producing		Sand and	Annual	at current	percent leased
Segment	quarries	Hard rock(1)	gravel(1)	production(1)	production(2)	Owned		Leased(3)
West	85	351,127	922,799	28,953	44	30	%	70	%
East	160	1,984,747	309,582	25,493	90	65	%	35	%
Cement	3	500,468	—	1,833	273	100	%	—
Total	248	2,836,342	1,232,381	56,279

______________________

(1)Hard rock, sand and gravel and annual production tons are shown in thousands.    

(2)Calculated based on total reserves divided by our average of 2020 and 2019 annual production    

(3)Lease terms range from monthly to on-going with an average lease expiry of 2027.    

As of January 2, 2021, we operated the following production and distribution facilities:

	Quarries and Sand Deposits	Cement Plants	Cement Distribution Terminals	Fixed and portable ready-mix concrete plants	Asphalt paving mix plants
Owned	97	2	5	97	28
Leased	133	—	4	27	17
Partially owned and leased	18	—	—	—	4
Total	248	2	9	124	49

35

Table of Contents

The following chart summarizes our production and distribution facilities by state as of January 2, 2021:

State	Sand & Gravel	Limestone	Cement	Ready-mix Concrete	Asphalt Plant	Landfill	Other*
Arkansas	5	—	—	17	2	—	2
Colorado	29	1	—	9	7	—	2
Georgia	4	—	—	—	—	—	—
Idaho	4	—	—	3	—	—	2
Iowa	—	1	2	—	—	—	1
Kansas	9	45	—	17	6	8	17
Kentucky	1	18	—	10	13	—	9
Louisiana	—	—	3	—	—	—	1
Minnesota	—	—	2	—	—	—	—
Missouri	2	47	2	6	—	—	7
Nebraska	—	1	—	—	—	—	—
Nevada	1	—	—	3	—	—	—
North Carolina	4	—	—	—	—	—	2
Oklahoma	5	1	—	12	—	—	2
South Carolina	14	1	—	1	—	—	—
Tennessee	—	1	1	—	—	—	—
Texas	17	3	—	22	12	—	20
Utah	19	2	—	19	4	—	3
Virginia	1	9	—	4	4	—	5
Wisconsin	—	—	1	—	—	—	—
Wyoming	1	—	—	1	—	—	2
Total US	116	130	11	124	48	8	75
British Columbia, Canada	—	2	—	—	1	—	6
Total	116	132	11	124	49	8	81

______________________

*Other primarily consists of office space.

ITEM  3.    LEGAL PROCEEDINGS.  

The information set forth under “—Legal Proceedings” in Item 1, “Business,” is incorporated herein by reference.

ITEM  4.    MINE SAFETY DISCLOSURES. 

The information concerning mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.104) is included in Exhibit 95.1 to this report.

INFORMATION ABOUT OUR EXECUTIVE OFFICERS

Pursuant to General Instruction G(3) to Form 10-K, certain of the information regarding our executive officers required by Items 401(b) and (e) of Regulation S-K is hereby included in Part I of this report.

Anne P. Noonan, 57, President and Chief Executive Officer. Ms. Noonan joined the Company in September 2020. Prior to joining the Company, Ms. Noonan served as president and chief executive officer and as a director of OMNOVA Solutions Inc. (“OMNOVA”), a global provider of emulsion polymers, specialty chemicals, and engineered surfaces for a variety of commercial, industrial, and residential end uses, with manufacturing, technical, and other facilities located in North America, Europe, China, and Thailand, from December 2016 until April 1, 2020 when OMNOVA was acquired by Synthomer plc. Before being appointed President and Chief Executive Officer, Ms. Noonan served as OMNOVA’s President, Performance Chemicals, from 2014 until December 2016. Ms. Noonan previously held several positions of increasing responsibility with Chemtura Corporation, a global specialty chemicals company, from 1987 through 2014, including most recently as senior vice

36

Table of Contents

president and president of Chemtura’s Industrial Engineered Products business and Corporate Development function. Ms. Noonan serves on the board of CF Industries Holdings, Inc., a global leader in nitrogen fertilizer manufacturing and distribution.

Anne Lee Benedict, 48, Executive Vice President, Chief Legal Officer and Secretary. Ms. Benedict joined the Company in October 2013. Prior to joining the Company, Ms. Benedict was a corporate partner in the Washington, D.C. office of Gibson, Dunn & Crutcher LLP, where she had practiced since 2000. Ms. Benedict's practice involved a wide range of corporate law matters, including mergers and acquisitions, joint ventures and other strategic transactions, securities offerings, securities regulation and corporate governance matters. Ms. Benedict received a Bachelor of Arts degree in English and Psychology from the University of Michigan and a Juris Doctor from the University of Pennsylvania Law School.

Michael J. Brady, 53, Executive Vice President and Chief Business Development Officer. Mr. Brady joined the Company in April 2009 after having been a Senior Vice President at CRH Plc’s U.S. subsidiary, Oldcastle, with overall responsibility for acquisitions and business development, having joined Oldcastle in 2000. Prior to that, Mr. Brady worked in several operational and general management positions in the paper and packaging industry in Ireland, the United Kingdom and Asia Pacific with the Jefferson Smurfit Group, plc (now Smurfit Kappa Group plc). Mr. Brady received a Bachelor of Engineering (Electrical) and a Master of Engineering Science (Microelectronics) from University College, Cork in Ireland and a Master of Business Administration degree from INSEAD in France.

Brian J. Harris, 64, Executive Vice President and Chief Financial Officer. Mr. Harris joined the Company as Chief Financial Officer in October 2013 after having been Executive Vice President and Chief Financial Officer of Bausch & Lomb Holdings Incorporated, a leading global eye health company, from 2009 to 2013. From 1990 to 2009, Mr. Harris held positions of increasing responsibility with industrial, automotive, building products and engineering manufacturing conglomerate Tomkins plc, including President of the $2 billion worldwide power transmission business for Gates Corporation, and Senior Vice President for Strategic Business Development and Business Administration, Chief Financial Officer and Secretary of Gates Corporation. Mr. Harris received a Bachelor of Accountancy from Glasgow University and is qualified as a Scottish Chartered Accountant.

37

Table of Contents

PART II 

ITEM  5.     MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

Market Information

Summit Inc.’s Class A common stock began publicly trading on the NYSE under the symbol “SUM” on March 11, 2015. Prior to that time, there was no public market for our Class A common stock. Our Class B common stock is not publicly traded. As of February 22, 2021, there were five holders of record of our Class A common stock and 30 holders of record of our Class B common stock.

These stockholder figures do not include a substantially greater number of holders whose shares are held of record by banks, brokers and other financial institutions.

All of the outstanding limited liability company interests of Summit LLC are held by Summit Materials Intermediate Holdings, LLC, an indirect subsidiary of Summit Inc. There is no established public trading market for limited liability company interests of Summit LLC.

Dividends

If Summit Inc. uses future excess tax distributions to purchase additional LP Units, we anticipate that in order to maintain the relationship between the shares of Class A common stock and the LP Units, our board of directors may continue to declare stock dividends on the Class A common stock.

Summit Inc. has no current plans to pay cash dividends on its Class A common stock. The declaration, amount and payment of any future dividends on shares of Class A common stock is at the sole discretion of our board of directors and we may reduce or discontinue entirely the payment of any such dividends at any time. Our board of directors may take into account general and economic conditions, our financial condition and operating results, our available cash and current and anticipated cash needs, capital requirements, contractual, legal, tax and regulatory restrictions and implications on the payment of dividends by us to our stockholders or by our subsidiaries to us, and such other factors as our board of directors may deem relevant.

Summit Inc. is a holding company and has no material assets other than its ownership of LP Units. Should we decide to pay a cash dividend on our Class A common stock in the future, we anticipate funding this cash dividend by causing Summit Holdings to make distributions to Summit Inc. in an amount sufficient to cover such dividend, whereupon the other holders of LP Units will also be entitled to receive distributions pro rata in accordance with the percentages of their respective limited partnership interests. Because Summit Inc. must pay taxes and make payments under the TRA, any amounts ultimately distributed as dividends to holders of our Class A common stock are expected to be less on a per share basis than the amounts distributed by Summit Holdings to its partners on a per LP Unit basis.

The agreements governing our senior secured credit facilities and the Senior Notes contain a number of covenants that restrict, subject to certain exceptions, Summit LLC’s ability to pay distributions to its parent company and ultimately to Summit Inc. See Note 8, Debt, to our consolidated financial statements.

Any financing arrangements that we enter into in the future may include restrictive covenants that limit our ability to pay dividends. In addition, Summit Holdings is generally prohibited under Delaware law from making a distribution to a limited partner to the extent that, at the time of the distribution, after giving effect to the distribution, liabilities of Summit Holdings (with certain exceptions) exceed the fair value of its assets.

Subsidiaries of Summit Holdings are generally subject to similar legal limitations on their ability to make distributions to Summit Holdings.

Issuer Purchases of Equity Securities

During the quarter and year ended January 2, 2021, we did not purchase any of our equity securities that are registered under Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

Unregistered Sales of Equity Securities

38

Table of Contents

There were no unregistered sales of equity securities which have not been previously disclosed in a quarterly report on Form 10-Q or a current report on Form 8-K during the year ended January 2, 2021.

ITEM  6.     SELECTED FINANCIAL DATA.

The selected financial data previously required by Item 301 of Regulation S-K has been omitted in reliance on SEC Release No. 33-10890.

ITEM 7.     MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Management’s Discussion and Analysis of Financial Condition and Results of Operations is intended to assist in understanding and assessing the trends and significant changes in our results of operations and financial condition. Historical results may not be indicative of future performance. Forward-looking statements reflect our current views about future events, are based on assumptions and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those contemplated by these statements. Factors that may cause differences between actual results and those contemplated by forward-looking statements include, but are not limited to, those discussed in the section entitled “Risk Factors” and any factors discussed in the sections entitled “Disclosure Regarding Forward-Looking Statements” and “Risk Factors” of this report. This Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the “Selected Historical Consolidated Financial Data,” our audited consolidated annual financial statements and the related notes thereto and other information included in this report. A discussion and analysis of our results of operations and changes in financial condition for fiscal 2019 compared to 2018 may be found in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation of our Annual Report on Form 10-K for the year ended December 29, 2019, filed with the SEC on February 5, 2020, which discussion is incorporated herein by reference.

Overview

We are one of the fastest growing construction materials companies in the United States, with a 63% increase in revenue between the year ended January 2, 2016 (the year of our initial public offering) and the year ended January 2, 2021. Within our markets, we offer customers a single-source provider for construction materials and related downstream products through our vertical integration. Our materials include aggregates, which we supply across the United States, and in British Columbia, Canada, and cement, which we supply to surrounding states along the Mississippi River from Minnesota to Louisiana. In addition to supplying aggregates to customers, we use a portion of our materials internally to produce ready-mix concrete and asphalt paving mix, which may be sold externally or used in our paving and related services businesses. Our vertical integration creates opportunities to increase aggregates volumes, optimize margin at each stage of production and provide customers with efficiency gains, convenience and reliability, which we believe gives us a competitive advantage. 

Since our inception in 2009, we have completed dozens of acquisitions, which are organized into 11 operating companies that make up our three distinct operating segments—West, East and Cement. We operate in 21 U.S. states and in British Columbia, Canada and currently have assets in 23 U.S. states and British Columbia, Canada. The map below illustrates our geographic footprint:

39

Table of Contents

 

Business Trends and Conditions

The U.S. construction materials industry is composed of four primary sectors: aggregates; cement; ready-mix concrete; and asphalt paving mix. Each of these materials is widely used in most forms of construction activity. Participants in these sectors typically range from small, privately-held companies focused on a single material, product or market to publicly traded multinational corporations that offer a wide array of construction materials and services. Competition is constrained in part by the distance materials can be transported efficiently, resulting in predominantly local or regional operations. Due to the lack of product differentiation, competition for all of our products is predominantly based on price and, to a lesser extent, quality of products and service. As a result, the prices we charge our customers are not likely to be materially different from the prices charged by other producers in the same markets. Accordingly, our profitability is generally dependent on the level of demand for our materials and products and our ability to control operating costs.

Our revenue is derived from multiple end-use markets including public infrastructure construction and private residential and nonresidential construction. Public infrastructure includes spending by federal, state, provincial and local governments for roads, highways, bridges, airports and other infrastructure projects. Public infrastructure projects have

historically been a relatively stable portion of state and federal budgets. Residential and nonresidential construction consists of new construction and repair and remodel markets. Any economic stagnation or decline, which could vary by local region and market, could affect our results of operations. Our sales and earnings are sensitive to national, regional and local economic conditions and particularly to cyclical changes in construction spending, especially in the private sector. From a macroeconomic view, we see positive indicators for the construction sector, including positive trends in highway obligations, housing starts and construction employment.

40

Table of Contents

Transportation infrastructure projects, driven by both federal and state funding programs, represent a significant share of the U.S. construction materials market. Federal funds are allocated to the states, which are required to match a portion of the federal funds they receive. Federal highway spending uses funds predominantly from the Federal Highway Trust Fund, which derives its revenue from taxes on diesel fuel, gasoline and other user fees. The dependability of federal funding allows the state departments of transportation to plan for their long term highway construction and maintenance needs. Funding for the existing federal transportation funding program was extended in late 2020 through 2021. With the nation’s infrastructure aging, there is increased demand by states and municipalities for long-term federal funding to support the construction of new roads, highways and bridges in addition to the maintenance of the existing infrastructure.

In addition to federal funding, state, county and local agencies provide highway construction and maintenance funding. Our four largest states by revenue, Texas, Utah, Kansas and Missouri, represented approximately 25%, 14%, 13% and 9%, respectively, of our total revenue in 2020. The following is a summary of key funding initiatives in those states:

•According to the Texas Department of Transportation (“TXDOT”), annual funding available for transportation infrastructure, including state and federal funding, is estimated to average $14.9 billion in total for fiscal year 2021 (which commenced September 1, 2020) and fiscal year 2022 combined. Further, the 2021 Unified Transportation Program (“UTP”) approved by the Texas Transportation Commission in September 2020 provides for $75 billion through fiscal year 2030 to fund transportation projects; more than double the fiscal year 2016 level, which was prior to the Proposition 1 and Proposition 7 funding initiatives. The funding available in any given year is separate and distinct from lettings, or the process of providing notice, issuing proposals, receiving proposals, and awarding contracts. In January 2021, TXDOT updated its fiscal year 2021 lettings estimate to $9.6 billion up from $7.5 billion in fiscal year 2020 and $8.9 billion in fiscal year 2019. Longer term, TXDOT has indicated a target of $8 billion per year in total state and local lettings. The Texas Comptroller released its biennial revenue estimate for fiscal year 2022 – 2023 in January 2021 and expects economic output to return to pre-pandemic levels in 2022, and despite revenue shortfalls due to COVID-19 it is expected that the state highway fund will be granted its full allotment of $2.5 billion for fiscal year 2021 and 2022 from Proposition 7 funding.

•In December 2020, Utah updated its revenue estimate for transportation funding to $639 million in fiscal year 2021 (which commenced July 1, 2020) up from $614 million in fiscal year 2020, with growth driven by increases in vehicle registration fees, diesel fuel tax and other revenue sources. In January 2020, the Utah Department of Transportation increased fees on electric and hybrid vehicles by 50% in 2020 and another 33% in 2021 and launched an alternative to a road usage charge program for those vehicles in the form of a pay per mile charge. In December 2019, Utah passed new legislation imposing a 4.85% sales tax on gas purchases and a 6 cents per gallon increase to the diesel tax, with an additional 4 cents per gallon diesel tax increase in 2022. The tax is estimated to generate an additional $170 million for transportation investment in 2021.

•In January 2021, the Governor of Kansas submitted a revised budget for fiscal year 2021 (which commenced July 1, 2020) and an initial budget recommendation for fiscal year 2022 with $1.9 billion in transportation funding budgeted in 2021 and $2.2 billion for 2022. Transfers from the State Highway Fund (“SHF”) to the State General Fund (“SGF”) are expected to be eliminated by fiscal year 2023 with $134 million currently estimated to be transferred to the SGF in fiscal year 2021 and $67 million in fiscal year 2022. The elimination of transfers out of the SHF is expected to help pave the way for the issuance of new transportation bonds and keep funds available to continue moving forward the 10-year, $10 billion Eisenhower Legacy Plan that was approved by the Kansas Legislature in early 2020. The Eisenhower Legacy Plan selects new modernization and expansion projects every two years, requires previously selected projects under the prior T-Works program to be let prior to July 1, 2023 and levies 16.2% of the state sales tax for the benefit of the SHF.

•In December 2020, new Missouri legislation was submitted that calls for five consecutive years of a two-cent gas tax increase starting in January 2022, which would raise an incremental $100 million of revenue annually; Missouri currently has the second-lowest motor fuel tax in the United States at 17 cents per gallon. Despite the impact of COVID-19, the Missouri Department of Transportation had one of its strongest construction programs on record with payments to contractors of $821 million in calendar year-to-date November 2020 versus $662 million in the prior period and has now scheduled or is scheduled to let during the remainder of fiscal year 2021 (which commenced July 1, 2020) the entire $360 million of construction projects delayed in early 2020 as a result of COVID-19.

The table below sets forth additional details regarding our four key states, including growth rates as compared to the U.S. as a whole:

41

Table of Contents

					Projected Industry Growth by End Market
			Revenue by End Market(1)		2021 to 2023(2)
	Percentage of		Residential and
	Our Total		Nonresidential		Residential		Nonresidential
State	Revenue		Construction		Construction		Construction
Texas	25	%	56	%	2.4	%	1.1	%
Utah	14	%	82	%	4.1	%	4.4	%
Kansas	13	%	44	%	5.1	%	1.4	%
Missouri	9	%	69	%	2.5	%	2.9	%
Weighted average(3)					3.4	%	2.2	%
United States(2)					1.9	%	2.2	%

______________________

(1)Percentages based on our revenue by state for the year ended January 2, 2021 and management’s estimates as to end markets.

(2)Source: 2019 PCA

(3)Calculated using a weighted average based on each state’s percentage contribution to our total revenue.

Use and consumption of our products fluctuate due to seasonality. Nearly all of the products used by us, and by our customers, in the private construction or public infrastructure industries are used outdoors. Our highway operations and production and distribution facilities are also located outdoors. Therefore, seasonal changes and other weather-related conditions, in particular extended rainy and cold weather in the spring and fall and major weather events, such as hurricanes, tornadoes, tropical storms, heavy snows and flooding, can adversely affect our business and operations through a decline in both the use of our products and demand for our services. In addition, construction materials production and shipment levels follow activity in the construction industry, which typically occurs in the spring, summer and fall. Warmer and drier weather during the second and third quarters of our fiscal year typically result in higher activity and revenue levels during those quarters. The first quarter of our fiscal year typically has lower levels of activity due to weather conditions.

We are subject to commodity price risk with respect to price changes in liquid asphalt and energy, including fossil fuels and electricity for aggregates, cement, ready-mix concrete and asphalt paving mix production, natural gas for hot mix asphalt production and diesel fuel for distribution vehicles and production related mobile equipment. Liquid asphalt escalator provisions in most of our private and commercial contracts limit our exposure to price fluctuations in this commodity. We often obtain similar escalators on public infrastructure contracts. In addition, we enter into various firm purchase commitments, with terms generally less than one year, for certain raw materials.    

Financial Highlights— Year ended January 2, 2021

The principal factors in evaluating our financial condition and operating results for the year ended January 2, 2021 are:

•Net revenue increased 5.1% or $104.1 million in 2020 as compared to 2019, primarily resulting from organic growth and to a lesser extent, contributions from our acquisitions.

•Our operating income increased 5.4% or $11.6 million in 2020 as compared to 2019, as pricing and volume increases exceeded the increases in cost of revenue.

•In August 2020, we issued $700.0 million of 5.250% senior notes due 2029 (the “2029 Notes”), resulting in net proceeds of $690.4 million, after related fees and expenses. The proceeds from the 2029 Notes were used to redeem the $650.0 million of 6.125% senior notes due 2023 (the “2023 Notes”) at par.

Components of Operating Results

Total Revenue

We derive our revenue predominantly by selling construction materials and 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 services that we provide are primarily asphalt paving services.

42

Table of Contents

Revenue derived from the sale of construction materials is recognized when risks associated with ownership have passed to unaffiliated customers. Typically this occurs when products are shipped. Product revenue generally includes sales of aggregates, cement and related downstream products and other materials to customers, net of discounts or allowances and taxes, if any.

Revenue derived from paving and related services is recognized on the percentage-of-completion basis, measured by the cost incurred to date compared to estimated total cost of each project. This method is used because management considers cost incurred to be the best available measure of progress on these contracts. Due to the inherent uncertainties in estimating costs, it is at least reasonably possible that the estimates used will change over the life of the contract.

Operating Costs and Expenses

The key components of our operating costs and expenses consist of the following:

Cost of Revenue (excluding items shown separately)

Cost of revenue consists of all direct production and delivery costs and primarily includes labor, repair and maintenance, utilities, raw materials, fuel, transportation, subcontractor costs, and royalties. Our cost of revenue is directly affected by fluctuations in commodity energy prices, primarily diesel fuel, liquid asphalt and other petroleum-based resources. As a result, our adjusted cash gross profit margins can be significantly affected by changes in the underlying cost of certain raw materials if they are not recovered through corresponding changes in revenue. We attempt to limit our exposure to changes in commodity energy prices by entering into forward purchase commitments when appropriate. In addition, we have sales price adjustment provisions that provide for adjustments based on fluctuations outside a limited range in certain energy-related production costs. These provisions are in place for most of our public infrastructure contracts, and we seek to include similar price adjustment provisions in our private contracts.

General and Administrative Expenses

General and administrative expenses consist primarily of salaries and personnel costs, including stock-based compensation charges, for our sales and marketing, administration, finance and accounting, legal, information systems, human resources and certain managerial employees. Additional expenses include audit, consulting and professional fees, travel, insurance, rental costs, property taxes and other corporate and overhead expenses.

Depreciation, Depletion, Amortization and Accretion

Our business is capital intensive. We carry property, plant and equipment on our balance sheet at cost, net of applicable depreciation, depletion and amortization. Depreciation on property, plant and equipment is computed on a straight-line basis or based on the economic usage over the estimated useful life of the asset. The general range of depreciable lives by category, excluding mineral reserves, which are depleted based on the units of production method on a site-by-site basis, is as follows:

Buildings and improvements	10 - 30	years
Plant, machinery and equipment	7 - 20	years
Office equipment	3 - 7	years
Truck and auto fleet	5 - 8	years
Mobile equipment and barges	6 - 8	years
Landfill airspace and improvements	10 - 30	years
Other	4 - 20	years

Amortization expense is the periodic expense related to leasehold improvements and intangible assets. The intangible assets were recognized with certain acquisitions and are generally amortized on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized over the lesser of the life of the underlying asset or the remaining lease term.

Accretion expense is the periodic expense recorded for the accrued mining reclamation liabilities and landfill closure and post-closure liabilities using the effective interest method.

43

Table of Contents

Results of Operations

In late 2019, a novel strain of the coronavirus ("COVID-19") virus was first reported to have surfaced. COVID-19 has since spread globally, including to every state in the United States. In March 2020, the World Health Organization declared the COVID-19 outbreak a global pandemic and the United States declared a national emergency with respect to COVID-19. As construction activities were deemed essential businesses in all of our markets, we continued to operate while many businesses were forced to close or reduce operations. During 2020, our operating markets remained substantially unaffected by COVID-19, except for Kentucky and to a lesser degree, Vancouver, British Columbia. However, we believe its impact may negatively affect our operations in subsequent periods if construction activity in future periods slows due to COVID-19. Residential construction activity remains strong, particularly in the Houston and Salt Lake City areas, two of the largest metro areas in which we operate. We believe residential activity in our key markets will continue to be a driver for volumes in future periods. While Kentucky had experienced fiscal shortfalls prior to COVID-19, those shortfalls were extended by COVID-19, and subsequently, Kentucky suspended lettings of department of transportation projects for May and June, and subsequent lettings have been significantly reduced from prior levels. In the Vancouver, British Columbia area, the provincial government has cancelled or delayed certain infrastructure projects. Our cement segment has also been impacted by lower sales demand, which we believe to be related to COVID-19, notably in our southern markets. In most of our other markets, we have not experienced any significant delays or cancellations of projects. Typically, state revenues decrease as the economy slows, and ultimately, some infrastructure projects may be delayed or cancelled, which would reduce our revenues in future periods. In 2020, approximately 61% of our revenue was derived from the private construction market, and the remaining revenue from the public markets. In addition to the volume impact on the cement segment, our annual cement price increases were delayed in 2020 from April 1 to June 1 due to COVID-19. We continue to monitor our operations, the operations of our customers, and the recommendations of the various national, state and local governments in the areas in which we operate. We implemented work-from-home protocols at all of our administrative locations late in the first quarter of 2020, and while some locations have returned, other locations, including our headquarters location, continue to work remotely. In addition, we implemented additional safety measures specific to COVID-19 at all of our operating locations, which did not significantly increase our costs. The extent to which the COVID-19 pandemic impacts the national and local economies in which we operate, and ultimately our business, will depend on numerous developments, which are highly uncertain and difficult to predict. These events, as they continue to develop, could result in business disruption, including reduced revenues, profitability and cash flow.

The following discussion of our results of operations is focused on the key financial measures we use to evaluate the performance of our business from both a consolidated and operating segment perspective. Operating income and margins are discussed in terms of changes in volume, pricing and mix of revenue source (i.e., type of product sales or service revenue). We focus on operating margin, which we define as operating income as a percentage of net revenue, as a key metric when assessing the performance of the business, as we believe that analyzing changes in costs in relation to changes in revenue provides more meaningful insight into the results of operations than examining costs in isolation.

Operating income (loss) reflects our profit after taking into consideration cost of revenue, general and administrative expenses, depreciation, depletion, amortization and accretion and gain on sale of property, plant and equipment. Cost of revenue generally increases ratably with revenue, as labor, transportation costs and subcontractor costs are recorded in cost of revenue. In periods where our revenue growth occurs primarily through acquisitions, general and administrative expenses and depreciation, depletion, amortization and accretion have historically grown ratably with revenue. However, as organic volumes increase, we expect these costs, as a percentage of revenue, to decrease. General and administrative expenses as a percentage of revenue vary throughout the year due to the seasonality of our business.

The table below includes revenue and operating income by segment for the periods indicated. Operating income (loss) by segment is computed as earnings before interest, loss on debt financings, tax receivable agreement expense, gain on sale of business, other income / expense and taxes.

44

Table of Contents

	Year ended
	January 2, 2021				December 28, 2019				December 29, 2018
			Operating				Operating				Operating
(in thousands)	Revenue		income (loss)		Revenue		income (loss)		Revenue		income (loss)
West	$	1,262,196	$	176,528	$	1,122,338	$	109,182	$	1,117,066	$	92,068
East	799,633		69,796		809,098		101,775		703,147		59,554
Cement	270,622		55,335		290,704		64,697		280,789		75,843
Corporate (1)	—		(76,486)		—		(62,096)		—		(64,999)
Total	$	2,332,451	$	225,173	$	2,222,140	$	213,558	$	2,101,002	$	162,466

______________________

(1)    Corporate results primarily consist of compensation and office expenses for employees included in the Company's headquarters.  

Consolidated Results of Operations

The table below sets forth our consolidated results of operations for the periods indicated:

	2020		2019		2018
($ in thousands)
Net revenue	$	2,134,754	$	2,030,647	$	1,909,258
Delivery and subcontract revenue	197,697		191,493		191,744
Total revenue	2,332,451		2,222,140		2,101,002
Cost of revenue (excluding items shown separately below)	1,583,996		1,526,332		1,475,779
General and administrative expenses	309,531		275,813		270,402
Depreciation, depletion, amortization and accretion	221,320		217,102		204,910
Gain on sale of property, plant and equipment	(7,569)		(10,665)		(12,555)
Operating income	225,173		213,558		162,466
Interest expense (1)	103,595		116,509		116,548
Loss on debt financings	4,064		14,565		149
Tax receivable agreement (benefit) expense	(7,559)		16,237		(22,684)
Gain on sale of business	—		—		(12,108)
Other income, net	(3,982)		(11,977)		(15,516)
Income from operations before taxes	129,055		78,224		96,077
Income tax expense (benefit)	(12,185)		17,101		59,747
Net income	$	141,240	$	61,123	$	36,330

______________________

(1)The statement of operations above is based on the financial results of Summit Inc. and its subsidiaries, which was $20.5 million greater, $27.5 million less and $27.5 million less than Summit LLC and its subsidiaries in the years ended January 2, 2021, December 28, 2019 and December 29, 2018, respectively, due to interest expense associated with a deferred consideration obligation, TRA expense and income tax benefit are obligations of Summit Holdings and Summit Inc., respectively and are thus excluded from Summit LLC’s consolidated net income.

45

Table of Contents

Fiscal Year 2020 Compared to 2019

($ in thousands)	2020			2019			Variance
Net revenue	$	2,134,754		$	2,030,647		$	104,107	5.1	%
Operating income	225,173			213,558			11,615		5.4	%
Operating margin percentage	10.5		%	10.5		%
Adjusted EBITDA (1)	$	485,036		$	461,462		$	23,574	5.1	%

______________________

(1)Adjusted EBITDA is a non-GAAP measure that we find helpful in monitoring the performance of our business. See the definition of and the reconciliation below of Adjusted EBITDA to net income, which is the most directly comparable GAAP measure.

Net revenue increased $104.1 million in the year ended January 2, 2021, primarily resulting from organic growth in our aggregates and ready-mix concrete operations. Of the increase in net revenue, $80.5 million was from increased sales of products, $19.7 million from increased sales of materials and $3.9 million from increased service revenue. We generated organic volume growth of 3.6%, 5.0% and 4.7% in aggregates, ready-mix concrete and asphalt, respectively, during 2020 over the prior year period, while our organic cement volumes declined 4.6% compared to 2019. We had organic price growth in our cement, ready-mix and asphalt lines of business of 1.5%, 4.7% and 1.4%, respectively, during 2020. Operating income increased by $11.6 million in 2020 as compared to 2019, primarily as net revenue gains exceeded increases in costs of revenue and general and administrative expenses.

For the year ended January 2, 2021, our operating margin percentage remained flat as compared to the year ended December 28, 2019, due to the items noted above. Adjusted EBITDA, as defined below, increased by $23.6 million in the year ended January 2, 2021 as compared to the year ended December 28, 2019.

As a vertically-integrated company, we include intercompany sales from materials to products and from products to services when assessing the operating results of our business. We refer to revenue inclusive of intercompany sales as gross revenue. These intercompany transactions are eliminated in the consolidated financial statements. Gross revenue by line of business was as follows:

($ in thousands)	2020		2019		Variance
Revenue by product*:
Aggregates	$	636,254	$	593,027	$	43,227	7.3	%
Cement	266,989		275,530		(8,541)		(3.1)	%
Ready-mix concrete	668,488		608,168		60,320		9.9	%
Asphalt	377,742		369,650		8,092		2.2	%
Paving and related services	639,493		603,271		36,222		6.0	%
Other	(256,515)		(227,506)		(29,009)		(12.8)	%
Total revenue	$	2,332,451	$	2,222,140	$	110,311	5.0	%

______________________

*        Revenue by product includes intercompany and intracompany sales transferred at market value. The elimination of intracompany transactions is included in Other. Revenue from the liquid asphalt terminals is included in asphalt revenue.

Detail of our volumes and average selling prices by product for the years ended January 2, 2021 and December 28, 2019 were as follows:  

46

Table of Contents

	2020			2019
	Volume(1)			Volume(1)			Percentage Change in
	(in thousands)	Pricing(2)		(in thousands)	Pricing(2)		Volume		Pricing
Aggregates	59,098	$	10.77	53,954	$	10.99	9.5	%	(2.0)	%
Cement	2,286	116.80		2,395	115.03		(4.6)	%	1.5	%
Ready-mix concrete	5,740	116.47		5,466	111.27		5.0	%	4.7	%
Asphalt	5,831	59.76		5,568	58.93		4.7	%	1.4	%

______________________

(1)Volumes are shown in tons for aggregates, cement and asphalt and in cubic yards for ready-mix concrete.

(2)Pricing is shown on a per ton basis for aggregates, cement and asphalt and on a per cubic yard basis for ready-mix concrete.

Revenue from aggregates increased $43.2 million in the year ended January 2, 2021. In 2020, increases in our northern Texas and Virginia markets were partially offset by organic aggregate volumes declines in Missouri as flood repair work in 2020 was less than in 2019 and Kentucky due to COVID-19 impacts. Overall, our average sales price in 2020 decreased over 2019 primarily as the product mix shifted away from higher priced flood repair products to lower priced products and the impact of lower priced acquisition related sales volumes in Texas. For the year ended January 2, 2021, our aggregate volumes increased primarily due to acquisition volumes, and to a lesser extent, due to increased organic volumes. Aggregate volumes growth was attributable to organic growth in both the West and East segments. Organic aggregate volumes increased 3.6% in 2020 as compared to 2019, primarily due to increases in our North Texas, Intermountain West and Kansas markets. Aggregate average sales prices of $10.77 per ton decreased 2.0% in 2020 as compared to 2019, primarily due to lower priced products in our Missouri markets and acquisition related volumes noted above.  

Revenue from cement decreased $8.5 million in the year ended January 2, 2021. In 2020, organic cement volumes decreased 4.6% and organic cement average sales prices increased 1.5%, respectively, as compared to 2019.

Revenue from ready-mix concrete increased $60.3 million in the year ended January 2, 2021. In 2020, our ready-mix volumes increased 5.0% and our average sales prices increased 4.7%. These volume and price increases in 2020 occurred in both the West and East segments. Volumes in the Intermountain, Texas and Kansas geographies were impacted by more favorable weather conditions during 2020 as compared to 2019.

Revenue from asphalt increased $8.1 million in the year ended January 2, 2021. In 2020, organic pricing increased 1.4%, with strong pricing gains in the Kansas and North Texas geographies. Further, in 2020, we had strong volume increases in North Texas offset by decreases in Kentucky due to COVID-19 impacts.

Other Financial Information

General and Administrative Expense

Our general and administrative expenses in 2020 increased $32.2 million over 2019, due primarily to increased incentive compensation expenses, and expenses recognized in connection with the transition of our chief executive officer. Our stock based compensation expense increased $8.5 million over 2019, primarily due to additional equity grants related to the transition of our chief executive officer.

Loss on Debt Financings

In August 2020, we used the net proceeds from the offering of the 2029 Notes to redeem all of the outstanding 2023 Notes. In connection with that transaction, charges of $4.1 million were recognized in fiscal 2020. The charges included $0.8 million for the write-off of unamortized original issue discount and $3.3 million for the write-off of unamortized deferred financing fees.

In March 2019, we used the net proceeds from the offering of the 6.500% senior notes due March 15, 2027 (the "2027 Notes") to redeem all of the outstanding 8.500% senior notes due 2022 (the “2022 Notes”). In connection with this transaction, charges of $14.6 million were recognized in fiscal 2019. The charges included $11.7 million for the applicable prepayment premium and $2.9 million for the write-off of unamortized deferred financing fees.    

47

Table of Contents

Tax Receivable Agreement (Benefit) Expense

Our TRA benefit for the year ended January 2, 2021 was $7.6 million as compared to TRA expense of $16.2 million in the year ended December 28, 2019. Each year, we update our estimate as to when TRA payments will be made. When payments are made under the TRA, a portion of the payment made will be characterized as imputed interest under IRS regulations. We also updated our estimate of the state income tax rate that will be in effect at the date the TRA payments are made. As a result of updated state income tax rate, and the imputed interest limitation noted above, we decreased our TRA liability by $7.6 million as of January 2, 2021 and increased our TRA liability by $16.2 million as of December 28, 2019.

Income Tax Expense (Benefit)

Our income tax benefit was $12.2 million for the year ended January 2, 2021 as compared to income tax expense of $17.1 million for the year ended December 28, 2019. Our effective tax rate for Summit Inc. differs from the federal statutory tax rate primarily due to (1) unrecognized tax benefits, (2) changes in the valuation allowance, (3) state taxes, (4) tax depletion expense in excess of the expense recorded under U.S. GAAP, (5) the minority interest in the Summit Holdings partnership that is allocated outside of the Company and (6) various other items such as limitations on meals and entertainment, certain stock compensation and other costs. The Company's income tax provision is calculated under the provisions of the final regulations related to tax reform legislation, which may limit our ability to deduct interest expense in calculating our taxable income. All adjustments resulting from the issuance of the final regulations have been recorded.

As of January 2, 2021 and December 28, 2019, Summit Inc. had a valuation allowance of $1.7 million and $1.7 million against our deferred tax assets, respectively.

Segment Results of Operations

West Segment

($ in thousands)	2020			2019			Variance
Net revenue	$	1,147,921		$	1,022,730		$	125,191	12.2	%
Operating income	176,528			109,182			67,346		61.7	%
Operating margin percentage	15.4		%	10.7		%
Adjusted EBITDA (1)	$	271,052		$	204,964		$	66,088	32.2	%

______________________

(1)Adjusted EBITDA is a non-GAAP measure that we find helpful in monitoring the performance of our business. See the reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure below.

Net revenue in the West segment increased $125.2 million in the year ended January 2, 2021, due to increases in net revenues in all lines of business. Organic aggregate volumes increased 4.4% in 2020 as compared to 2019, and organic aggregates average sales prices increased 1.8%, primarily due to product mix. Organic ready-mix concrete volumes increased 3.0% and our organic ready-mix concrete average sales prices increased 4.7%.

The West segment’s operating income increased $67.3 million in the year ended January 2, 2021. Adjusted EBITDA increased $66.1 million in the year ended January 2, 2021. The increases in operating income and Adjusted EBITDA occurred as the weather conditions in 2020 have been generally more favorable as compared to 2019, which has resulted in operational efficiencies and increased sales volumes. The operating margin percentage in the West segment increased in 2020 as compared to 2019, due to the impact of the same factors noted above.

Gross revenue by product/service was as follows:   

($ in thousands)	2020		2019		Variance
Revenue by product*:
Aggregates	$	282,989	$	244,138	$	38,851	15.9	%
Ready-mix concrete	496,118		460,137		35,981		7.8	%
Asphalt	277,522		246,301		31,221		12.7	%
Paving and related services	436,018		359,577		76,441		21.3	%
Other	(230,451)		(187,815)		(42,636)		(22.7)	%
Total revenue	$	1,262,196	$	1,122,338	$	139,858	12.5	%

48

Table of Contents

______________________

*        Revenue by product includes intercompany and intracompany sales transferred at market value. The elimination of intracompany transactions is included in Other. Revenue from the liquid asphalt terminals is included in asphalt revenue.

The West segment’s percent changes in sales volumes and pricing comparing 2020 to 2019 were as follows: 

	Percentage Change in
	Volume		Pricing
Aggregates	16.9	%	(0.8)	%
Ready-mix concrete	3.0	%	4.7	%
Asphalt	10.3	%	2.9	%

Gross revenue from aggregates in the West segment increased $38.9 million in 2020 over 2019, primarily due to an increase in sales volumes that more than offset a slight decrease in average sales price. Aggregates volumes increased in 2020 mainly in our Texas markets which had organic growth coupled with increased acquisition volumes, and increased organic volumes in our Intermountain markets. In 2020, organic aggregate volumes decreased in the Vancouver, British Columbia area due to COVID-19 related delays in projects. Aggregates pricing in 2020 decreased 0.8% when compared to 2019, due to product mix primarily in our Texas markets, resulting primarily from the impact of lower prices on acquisition related volumes.

Gross revenue from ready-mix concrete in the West segment increased $36.0 million in 2020 over 2019. For the year ended January 2, 2021, organic ready-mix concrete prices increased 4.7%. For the year ended January 2, 2021, our ready-mix concrete organic volumes increased 3.0%, as volume increases in the Intermountain geographies were offset by volume decreases in North Texas. We continue to see strong residential volumes in the Salt Lake City and Houston areas, while volumes in the Permian basin area have decreased due to an economic slowdown in that area.

Gross revenue from asphalt in the West segment increased $31.2 million and asphalt volumes increased 10.3% in 2020, due to organic volume and price increases. Average sales prices for asphalt increased 2.9% in 2020. Gross revenue for paving and related services in the West segment increased by $76.4 million in 2020 due to greater activity in our North Texas markets, partially offset by our Intermountain geography and in Vancouver, British Columbia.

Prior to eliminations of intercompany transactions, the net effect of volume and pricing changes on gross revenue for the year ended January 2, 2021 was approximately $79.4 million and $26.7 million, respectively. 

East Segment 

($ in thousands)	2020			2019			Variance
Net revenue	$	716,211		$	717,213		$	(1,002)	(0.1)	%
Operating income	69,796			101,775			(31,979)		(31.4)	%
Operating margin percentage	9.7		%	14.2		%
Adjusted EBITDA (1)	$	162,275		$	187,625		$	(25,350)	(13.5)	%

______________________

(1)Adjusted EBITDA is a non-GAAP measure that we find helpful in monitoring the performance of our business. See the reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, net income, below.

Net revenue in the East segment decreased $1.0 million in 2020 over 2019, as the decrease in asphalt and paving and services revenues exceeded the increase in aggregates and ready-mix concrete revenues. Organic aggregate volumes increased 3.0% in 2020 over 2019 levels, while organic aggregate pricing decreased 2.1%. Organic ready mix volumes and pricing increased 11.2% and 4.6%, respectively. Due to weakness in our Kentucky market, organic asphalt volumes decreased (7.9)% in 2020 over 2019 levels, and paving and related services revenue decreased $40.2 million.

Operating income in the East segment decreased $32.0 million and Adjusted EBITDA decreased $25.4 million in 2020 over 2019, primarily due to lower margins on our asphalt and paving business, which resulted from decreased activity in Kentucky. In addition, our organic sales prices decreased in Missouri as 2019 included more higher priced flood and levy volumes. Further, our Kentucky operations worked to sell lower priced inventory to generate cash flow. Operating margin percentage in 2020 decreased to 9.7% from 14.2% in 2019, due to the items noted above.

Gross revenue by product/service was as follows:   

49

Table of Contents

($ in thousands)	2020		2019		Variance
Revenue by product*:
Aggregates	$	353,265	$	348,889	$	4,376	1.3	%
Ready-mix concrete	172,370		148,031		24,339		16.4	%
Asphalt	100,220		123,349		(23,129)		(18.8)	%
Paving and related services	203,475		243,694		(40,219)		(16.5)	%
Other	(29,697)		(54,865)		25,168		45.9	%
Total revenue	$	799,633	$	809,098	$	(9,465)	(1.2)	%

______________________

*        Revenue by product includes intercompany and intracompany sales transferred at market value. The elimination of intracompany transactions is included in Other. Revenue from the liquid asphalt terminals is included in asphalt revenue.

The East segment’s percent changes in sales volumes and pricing in 2020 as compared to 2019 were as follows:

	Percentage Change in
	Volume		Pricing
Aggregates	3.5	%	(2.2)	%
Ready-mix concrete	11.2	%	4.6	%
Asphalt	(7.9)	%	(3.3)	%

Revenue from aggregates in the East segment increased $4.4 million in the year ended January 2, 2021. Aggregate volumes in 2020 increased 3.5%, primarily due to organic growth in our Kansas markets from wind farm and other large non-residential project activity, offset by volume decreases in our Missouri and Kentucky markets. Our volumes decreased in Kentucky as the state continues to deal with lower tax revenues that preceded COVID-19, and those revenues further decreased after the onset of COVID-19. Aggregates pricing decreased 2.1% in 2020 due primarily to product mix in Missouri and Kentucky.

Revenue from ready-mix concrete in the East segment increased $24.3 million in 2020, as we realized higher organic volumes and pricing in all of our markets except Virginia. In 2020, ready-mix concrete volumes increased 11.2%, and average sales prices increased 4.6%.

Revenue from asphalt decreased $23.1 million in 2020, which was mainly attributable to lower volumes in Kentucky, due to the items mentioned above, which more than offset strong asphalt volumes in Kansas. Asphalt pricing decreased 3.3% in 2020, as lower prices occurred in most of our markets. Paving and related service revenue decreased $40.2 million in 2020, primarily due to lower activity in Kentucky as noted above.

Prior to eliminations of intercompany transactions, the net effect of volume and pricing changes on gross revenue for the year ended January 2, 2021 was approximately $6.9 million and $(1.3) million, respectively.

Cement Segment 

($ in thousands)	2020			2019			Variance
Net revenue	$	270,622		$	290,704		$	(20,082)	(6.9)	%
Operating income	55,335			64,697			(9,362)		(14.5)	%
Operating margin percentage	20.4		%	22.3		%
Adjusted EBITDA (1)	$	92,956		$	103,438		$	(10,482)	(10.1)	%

______________________

(1)Adjusted EBITDA is a non-GAAP measure that we find helpful in monitoring the performance of our business. See the reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, net income, below.

Net revenue in the Cement segment decreased $20.1 million in 2020 over 2019, primarily due to decreased organic cement volumes of 4.6%. In addition, an explosion in April 2020 that shut down our solid waste processing facility contributed to the revenue decline in 2020 compared to 2019.

The Cement segment’s operating income decreased $9.4 million and Adjusted EBITDA decreased $10.5 million in 2020. Although our sales volumes decreased, our production volumes increased as we did not purchase as much cement from

50

Table of Contents

international producers as we did in 2019. As such, our overall operating costs increased in 2020 over 2019. We believe our lower sales volumes are related to COVID-19, notably in our southern markets. Additionally, our solid waste processing facility that provides fuel for one of our plants remained closed to processing solid waste due to an explosion in April 2020, which also increased our operating costs. We expect to receive the necessary approvals to reopen that facility sometime late in the first quarter 2021.

Operating margin percentage for the year ended January 2, 2021 decreased to 20.4% from 22.3% in the prior year, primarily due to the same factors noted above.

Gross revenue by product was as follows:   

($ in thousands)	2020		2019		Variance
Revenue by product*:
Cement	$	266,989	$	275,530	$	(8,541)	(3.1)	%
Other	3,633		15,174		(11,541)		(76.1)	%
Total revenue	$	270,622	$	290,704	$	(20,082)	(6.9)	%

______________________

*        Revenue from waste processing and the elimination of intracompany transactions are included in Other.

The Cement segment’s percent changes in sales volumes and pricing in 2020 from 2019 were as follows:

	Percentage Change in
	Volume		Pricing
Cement	(4.6)	%	1.5	%

Revenue from cement decreased $8.5 million in 2020, as volume decreases of 4.6% were only partially offset by small organic cement pricing gains. We have historically implemented cement pricing increases in April each year; however, in 2020, those increases were deferred until June 1 as a result of COVID-19. We believe the decreases in volume are the result of COVID-19, primarily in southern markets, where the demand for cement is partially driven by the energy industry.

Liquidity and Capital Resources

Our primary sources of liquidity include cash on-hand, cash provided by our operations and amounts available for borrowing under our credit facilities and capital-raising activities in the debt capital markets. In addition to our current sources of liquidity, we have access to liquidity through public offerings of shares of our Class A common stock. To facilitate such offerings, in January 2020, we filed a shelf registration statement with the SEC that is effective for a term of three years and will expire in January 2023. The amount of Class A common stock to be issued pursuant to this shelf registration statement was not specified when it was filed and there is no specific limit on the amount we may issue. The specifics of any future offerings, along with the use of the proceeds thereof, will be described in detail in a prospectus supplement, or other offering materials, at the time of any offering.

As of January 2, 2021, we had $418.2 million in cash and cash equivalents and $570.6 million of working capital as compared to $311.3 million and $497.0 million, respectively, at December 28, 2019. Working capital is calculated as current assets less current liabilities. There were no restricted cash balances as of January 2, 2021 or December 28, 2019.

Our remaining borrowing capacity on our $345.0 million senior secured revolving credit facility as of January 2, 2021 was $329.1 million, which is net of $15.9 million of outstanding letters of credit, and is fully available to us within the terms and covenant requirements of our credit agreement.

Given the seasonality of our business, we typically experience significant fluctuations in working capital needs and balances throughout the year. Our working capital requirements generally increase during the first half of the year as we build up inventory and focus on repair and maintenance and other set-up costs for the upcoming season. Working capital levels then decrease as the construction season winds down and we enter the winter months, which is when we see significant inflows of cash from the collection of receivables.

Our acquisition strategy has historically required us to raise capital through equity issuances or debt financings. As of January 2, 2021 and December 28, 2019, our long-term borrowings totaled $1.9 billion, for which we incurred $91.2 million and $102.0 million of interest expense, respectively. Our senior secured revolving facility has been adequate to fund our

51

Table of Contents

seasonal working capital needs and certain acquisitions. We had no outstanding borrowings on the revolving credit facility as of January 2, 2021.

We believe we have access to sufficient financial resources from our liquidity sources to fund our business and operations, including contractual obligations, capital expenditures and debt service obligations, for at least the next twelve months. Our growth strategy contemplates future acquisitions for which we believe we have sufficient access to capital.

As market conditions warrant we may, from time to time, seek to purchase our outstanding debt securities or loans, including Senior Notes and borrowings under our senior secured credit facilities. Such transactions could be privately negotiated, open market transactions, tender offers or otherwise. Subject to any applicable limitations contained in the agreements governing our indebtedness, any purchases made by us may be funded by the use of cash on our balance sheet or the incurrence of new secured or unsecured debt. The amounts involved in any such purchase transactions, individually or in the aggregate, may be material. Any such purchases may equate to a substantial amount of a particular class or series of debt, which may reduce the trading liquidity of such class or series.

Our Long-Term Debt

Please refer to the notes to the consolidated financial statements found elsewhere in this report for detailed information regarding our long-term debt and senior secured revolving credit facility, scheduled maturities of long-term debt and affirmative and negative covenants. Among other things, we are required to maintain a Consolidated First Lien Net Leverage Ratio that is no greater than 4.75 to 1.00. Our first lien net leverage ratio, for purposes of this maintenance requirement, is calculated following each quarter based on information for the most recently ended four fiscal quarters for which internal financial information is available by dividing our Consolidated First Lien Net Debt as of the end of such period by our Consolidated EBITDA for such period. Consolidated EBITDA for purposes of our senior secured credit facility is calculated in accordance with our presentation of Further Adjusted EBITDA below. We define Further Adjusted EBITDA as Adjusted EBITDA plus the EBITDA contribution of certain recent acquisitions.

For the years ended January 2, 2021 and December 28, 2019, our Consolidated First Lien Net Leverage Ratio was 0.51 to 1.00 and 0.80 to 1.00, respectively, based on consolidated first lien net debt of $254.5 million and $369.4 million as of January 2, 2021 and December 28, 2019, respectively, divided by Further Adjusted EBITDA of $496.5 million and $461.5 million for the years ended January 2, 2021 and December 28, 2019, respectively. As of January 2, 2021 and December 28, 2019, we were in compliance with all debt covenants.

The following table sets forth a reconciliation of net income to Adjusted EBITDA and Further Adjusted EBITDA for the periods indicated. Adjusted EBITDA and Further Adjusted EBITDA are not U.S. GAAP measures and should not be considered in isolation, or as a substitute for our results as reported under U.S. GAAP.

($ in thousands)	2020		2019		2018
Net income	$	141,240	$	61,123	$	36,330
Interest expense	103,595		116,509		116,548
Income tax expense (benefit)	(12,185)		17,101		59,747
Depreciation, depletion, and amortization	218,682		214,886		203,305
EBITDA	$	451,332	$	409,619	$	415,930
Accretion	2,638		2,216		1,605
Loss on debt financings	4,064		14,565		149
Tax receivable agreement (benefit) expense	(7,559)		16,237		(22,684)
Gain on sale of business	—		—		(12,108)
Transaction costs(a)	2,747		2,222		4,238
Non-cash compensation(b)	28,857		20,403		25,378
Other(c)	2,957		(3,800)		(6,247)
Adjusted EBITDA	$	485,036	$	461,462	$	406,261
EBITDA for certain acquisitions(d)	11,448		—		2,119
Further Adjusted EBITDA	$	496,484	$	461,462	$	408,380

______________________

(a)Represents the transaction expenses associated with closed and probable acquisitions, consisting primarily of accounting, legal, valuation and financial advisory fees for the acquisitions. 

52

Table of Contents

(b)Represents non-cash equity-based compensation granted to employees.

(c)Represents the net (gain) loss recognized on assets identified for disposal. Includes non-recurring or one time income and expense items that were incurred outside normal operating activities such as integration costs, unrealized currency gains and losses and interest, tax, depreciation on unconsolidated joint ventures and fair value adjustments to contingent consideration obligations that originated with various acquisitions.

(d)Under the terms of our credit facilities, we include EBITDA from our acquisitions, net of dispositions, in each fiscal year for periods prior to acquisition. We believe this provides our lenders with a more meaningful view of our EBITDA across all periods by making the information more comparable.

At January 2, 2021 and December 28, 2019, $1.9 billion of total debt was outstanding under our respective debt agreements. Summit LLC’s senior secured credit facilities provide for term loans in an aggregate amount of $650.0 million and revolving credit commitments in an aggregate amount of $345.0 million (the “Senior Secured Credit Facilities”). Summit LLC’s domestic wholly-owned subsidiary companies are named as guarantors of the Senior Notes and the Senior Secured Credit Facilities. Certain other partially-owned subsidiaries, and the wholly-owned Canadian subsidiary, Mainland, do not guarantee the Senior Notes or Senior Secured Credit Facilities. Summit LLC has pledged substantially all of its assets as collateral for the Senior Secured Credit Facilities. 

On February 28, 2019, Summit LLC entered into Incremental Amendment No. 4 to the Credit Agreement which, among other things, increased the total amount available under the revolving credit facility to $345.0 million and extended the maturity date of the Credit Agreement to February 2024.

Senior Notes

On August 11, 2020, Summit LLC and Summit Finance (together, the “Issuers”) issued $700.0 million in aggregate principal amount of 5.250% senior notes due January 15, 2029. The 2029 Notes were issued at 100.0% of their par value with proceeds of $690.4 million, net of related fees and expenses. Interest on the 2029 Notes is payable semi-annually on January 15 and July 15 of each year commencing on January 15, 2021.

In August 2020, using the proceeds from the 2029 Notes, all of the outstanding $650.0 million 6.125% senior notes due 2023 were redeemed at a price equal to par and the indenture under which the 2023 Notes were issued was satisfied and discharged. As a result of the extinguishment, charges of $4.1 million were recognized in the quarter ended September 26, 2020, which included charges of $0.8 million for the write-off of original issue discount and $3.3 million for the write-off of deferred financing fees.

On March 15, 2019, the Issuers issued $300 million in aggregate principal amount of 6.500% senior notes due March 15, 2027. The 2027 Notes were issued at 100.0% of their par value with proceeds of $296.3 million, net of related fees and expenses. 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 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 $14.6 million were recognized in the quarter ended March 30, 2019, which included charges of $11.7 million for the applicable redemption premium and $2.9 million for the write-off of deferred financing fees.

On June 1, 2017, the Issuers issued $300.0 million in aggregate principal amount of 5.125% senior notes due June 1, 2025. The 2025 Notes were issued at par value, resulting in proceeds of $295.4 million, net of related fees and expenses. Interest on the 2025 Notes is payable semi-annually on June 1 and December 1 of each year commencing on December 1, 2017.

Senior Secured Credit Facilities

Summit LLC has credit facilities that provide for term loans in an aggregate amount of $650 million and revolving credit commitments in an aggregate amount of $345 million (the "Senior Secured Credit Facilities"). Under the terms of Senior Secured Credit Facilities, as amended through February 2019, required principal payments of 0.25% of the refinanced aggregate amount of term debt are due on the last business day of each March, June, September and December. The unpaid principal balance is due in full on the maturity date of November 21, 2024.

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 0.50%, (b) the prime rate of Bank of America, N.A. and (c) LIBOR plus 1.00% plus an applicable margin of 2.00% for base rate loans or (ii) a LIBOR rate determined by reference to

53

Table of Contents

Reuters prior to the interest period relevant to such borrowing adjusted for certain additional costs plus an applicable margin of 3.00% for LIBOR rate loans.

There were no outstanding borrowings under the revolving credit facility as of January 2, 2021 or December 28, 2019. As of January 2, 2021, we had remaining borrowing capacity of $329.1 million under the revolving credit facility, which is net of $15.9 million of outstanding letters of credit. The outstanding letters of credit are renewed annually and support required bonding on construction projects 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 4.75:1.0 as of each quarter-end. As of January 2, 2021 and December 28, 2019, Summit LLC was in compliance with all financial covenants under the Credit Agreement.

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.

Cash Flows

The following table summarizes our net cash provided by and used for operating, investing and financing activities and our capital expenditures for the periods indicated: 

	Summit Inc.				Summit LLC
($ in thousands)	2020		2019		2020		2019
Net cash provided by (used in):
Operating activities	$	408,869	$	337,184	$	408,869	$	337,184
Investing activities	(285,587)		(162,809)		(285,587)		(162,809)
Financing activities	(16,771)		8,150		(16,771)		8,150

Operating Activities

During the year ended January 2, 2021, cash provided by operating activities was $408.9 million primarily as a result of:

•Net income of $141.2 million, adjusted for $235.4 million of non-cash expenses, including $227.8 million of depreciation, depletion, amortization and accretion, $28.9 million of share-based compensation and $(18.4) million of change in deferred tax asset, net.

•Billed and unbilled accounts receivable decreased by $10.0 million in fiscal 2020 as a result of the seasonality of our business. The majority of our sales occur in the spring, summer and fall and we typically incur an increase in accounts receivable (net billed and unbilled) during the second and third quarters of each year. This amount is typically converted to cash in the fourth and first quarters.

•The timing of payments associated with accounts payable and accrued expenses of cash, which is consistent with the seasonality of our business whereby we build-up inventory levels and incur repairs and maintenance costs to ready the business for increased sales volumes in the summer and fall. These costs are typically incurred in the first half of the year and paid by year-end. In addition, we made $99.6 million of interest payments in 2020. Our cash interest payments are expected to decrease slightly from this amount in 2021 and beyond.

During the year ended December 28, 2019, cash provided by operating activities was $337.2 million primarily as a result of:

•Net income of $61.1 million, adjusted for $249.7 million of non-cash expenses, including $222.9 million of depreciation, depletion, amortization and accretion, $20.4 million of share-based compensation and $16.0 million of change in deferred tax asset, net.

•Billed and unbilled accounts receivable increased by $31.5 million in fiscal 2019 as a result of increased revenue from our acquisitions as compared to fiscal 2018.

54

Table of Contents

•The timing of payments associated with accounts payable and accrued expenses of cash, which is consistent with the seasonality of our business whereby we build-up inventory levels and incur repairs and maintenance costs to ready the business for increased sales volumes in the summer and fall. These costs are typically incurred in the first half of the year and paid by year-end. In addition, we made $104.6 million of interest payments in 2019.

Investing Activities

During the year ended January 2, 2021, cash used for investing activities was $285.6 million, of which $123.5 million related to acquisitions completed in the period and $177.2 million was invested in capital expenditures, which was partially offset by $14.0 million of proceeds from asset sales.

During the year ended December 28, 2019, cash used for investing activities was $162.8 million, of which $5.4 million related to acquisitions completed in the period and $177.5 million was invested in capital expenditures, which was partially offset by $21.2 million of proceeds from asset sales.

Financing Activities

During the year ended January 2, 2021, cash used in financing activities was $16.8 million. We received $700.0 million from proceeds of debt issuance, which was offset by $33.3 million of payments on acquisition related liabilities and $674.0 million in debt payments, which includes $14.4 million of finance lease cash payments. Our future payments under our finance lease obligations are expected to decrease slightly from 2020 levels.

During the year ended December 28, 2019, cash provided by financing activities was $8.2 million. We received $19.1 million of proceeds from stock option exercises and $300.0 million from proceeds of debt issuance, which was offset by $33.9 million of payments on acquisition related liabilities and $270.2 million in debt payments.

Cash Paid for Capital Expenditures

We expended approximately $177.2 million in capital expenditures for the year ended January 2, 2021 compared to $177.5 million and $220.7 million in the years ended December 28, 2019 and December 29, 2018, respectively.

We estimate that we will invest between $200 million and $220 million in capital expenditures in 2021, which includes $25 - $35 million for our greenfield development projects. The timing of our greenfield expenditures is dependent upon the timing of when permits may be issued. We expect to fund our capital expenditure program through cash on hand, cash from operations, outside financing arrangements and available borrowings under our revolving credit facility.

Tax Receivable Agreement

Exchanges of LP Units for shares of Class A common stock are expected to result in increases in the tax basis of the tangible and intangible assets of Summit Holdings. These increases in tax basis may increase (for tax purposes) depreciation and amortization deductions and therefore reduce the amount of tax that Summit Inc. would otherwise be required to pay in the future. In connection with the IPO, we entered into a TRA with the holders of LP Units that provides for the payment by Summit Inc. to exchanging holders of LP Units of 85% of the benefits, if any, that Summit Inc. is deemed to realize as a result of these increases in tax basis and certain other tax benefits related to entering into the TRA, including tax benefits attributable to payments under the TRA. The increases in tax basis as a result of an exchange of LP Units for shares of Class A common stock, as well as the amount and timing of any payments under the TRA, are difficult to accurately estimate as they will vary depending upon a number of factors, including:

•the timing of exchanges—for instance, the increase in any tax deductions will vary depending on the fair market value, which may fluctuate over time, of the depreciable or amortizable assets of Summit Holdings at the time of each exchange;

•the price of shares of our Class  A common stock at the time of the exchange—the increase in any tax deductions, as well as the tax basis increase in other assets, of Summit Holdings, is directly proportional to the price of shares of our Class A common stock at the time of the exchange;

•the extent to which such exchanges are taxable—if an exchange is not taxable for any reason, increased deductions will not be available;

55

Table of Contents

•the amount and timing of our income—Summit Inc. is required to pay 85% of the cash tax savings, if any, as and when realized. If Summit Inc. does not have taxable income, Summit Inc. is not required (absent a change of control or circumstances requiring an early termination payment) to make payments under the TRA for that taxable year because no cash tax savings will have been realized. However, any tax attributes that do not result in realized benefits in a given tax year will likely generate tax attributes that may be utilized to generate benefits in previous or future tax years. The utilization of such tax attributes will result in cash tax savings that will result in payments under the tax receivable agreement; and

•the effective tax rate – The benefit that Summit Inc. realizes is dependent on the tax rate in effect at the time taxable income is generated.

We anticipate funding payments under the TRA from cash flows from operations, available cash and available borrowings under our Senior Secured Revolving Credit Facilities. As of January 2, 2021, we had accrued $321.7 million as TRA liability. The entire TRA liability is a long term liability as no additional payments are expected in the next twelve months.

In addition, the TRA provides that upon certain changes of control, Summit Inc.’s (or its successor’s) obligations would be based on certain assumptions, including that Summit Inc. would have sufficient taxable income to fully utilize the deductions arising from tax basis and other tax attributes subject to the TRA. With respect to our obligations under the TRA relating to previously exchanged or acquired LP Units and certain net operating losses, we would be required to make a payment equal to the present value (at a discount rate equal to one year LIBOR plus 100 basis points) of the anticipated future tax benefits determined using assumptions (ii) through (v) of the following paragraph.

Furthermore, Summit Inc. may elect to terminate the TRA early by making an immediate payment equal to the present value of the anticipated future cash tax savings. In determining such anticipated future cash tax savings, the TRA includes several assumptions, including that (i) any LP Units that have not been exchanged are deemed exchanged for the market value of the shares of Class A common stock at the time of termination, (ii) Summit Inc. will have sufficient taxable income in each future taxable year to fully realize all potential tax savings, (iii) Summit Inc. will have sufficient taxable income to fully utilize any remaining net operating losses subject to the TRA on a straight line basis over the shorter of the statutory expiration period for such net operating losses or the five-year period after the early termination or change of control, (iv) the tax rates for future years will be those specified in the law as in effect at the time of termination and (v) certain non-amortizable assets are deemed disposed of within specified time periods. In addition, the present value of such anticipated future cash tax savings are discounted at a rate equal to LIBOR plus 100 basis points.

As a result of the change in control provisions and the early termination right, Summit Inc. could be required to make payments under the TRA that are greater than or less than the specified percentage of the actual cash tax savings that Summit Inc. realizes in respect of the tax attributes subject to the TRA (although any such overpayment would be taken into account in calculating future payments, if any, under the TRA) or that are prior to the actual realization, if any, of such future tax benefits. Also, the obligations of Summit Inc. would be automatically accelerated and be immediately due and payable in the event that Summit Inc. breaches any of its material obligations under the agreement and in certain events of bankruptcy or liquidation. In these situations, our obligations under the TRA could have a substantial negative impact on our liquidity.

Under the terms of the TRA, we can terminate the TRA at any time, which would trigger a cash payment to the pre-IPO owners. Based upon a $20.08 per share price of our Class A common stock, the closing price of our stock on January 2, 2021 and a contractually defined discount rate of 1.34%, we estimate that if we were to exercise our right to terminate the TRA, the aggregate amount required to settle the TRA would be approximately $312 million.

Contractual Obligations

The following table presents, as of January 2, 2021, our obligations and commitments to make future payments under contracts and contingent commitments (in thousands).

56

Table of Contents

	Payments Due by Period
	Total		2021		2022		2023		2024		2025		Thereafter
(in thousands)
Short term borrowings and long-term debt, including current portion	$	1,916,314	$	6,354	$	6,354	$	6,354	$	597,252	$	300,000	$	1,000,000
Finance lease obligations	61,009		26,742		18,603		7,053		3,207		2,573		2,831
Operating lease obligations	37,847		9,491		6,088		4,663		2,863		1,781		12,961
Interest payments (1)	556,898		82,360		84,803		84,665		83,257		63,938		157,875
Acquisition-related liabilities	31,956		10,360		3,522		2,774		2,742		2,696		9,862
Royalty payments	149,410		9,916		9,880		9,594		9,295		9,052		101,673
Defined benefit plans (2)	22,214		2,327		2,323		2,313		2,273		2,241		10,737
Asset retirement obligation payments	112,806		11,300		5,115		2,677		3,132		2,062		88,520
Purchase commitments (3)	29,200		29,037		163		—		—		—		—
Payments pursuant to tax receivable agreement (4)	321,679		—		—		455		2,292		3,786		315,146
Other	12,334		6,209		3,379		2,746		—		—		—
Total contractual obligations	$	3,251,667	$	194,096	$	140,230	$	123,294	$	706,313	$	388,129	$	1,699,605

______________________

(1)Future interest payments were calculated using the applicable fixed and floating rates charged by our lenders in effect as of January 2, 2021 and may differ from actual results.

(2)Future payments to fund our defined benefit plans are estimated based on multiple assumptions which are enumerated in Note 14 to the consolidated financial statements included elsewhere in this report.

(3)Amounts represent purchase commitments entered into in the normal course of business, primarily for fuel purchases, the terms of which are generally one year.

(4)The total amount payable under our TRA is estimated at $321.7 million as of January 2, 2021. Under the terms of the TRA, payment of amounts benefiting us is due to the pre-IPO owners within four months of the tax returns being submitted to the respective regulatory agencies when the benefits are realized.  We are currently estimating benefits next being realized in the 2021 tax year, and paid to TRA holders in early 2023. The estimated timing of TRA payments is subject to a number of factors, primarily around the timing of the generation of future taxable income in future years, which will be impacted by business activity in those periods.

Commitments and Contingencies

We are 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 our consolidated financial position, results of operations or liquidity. We record legal fees as incurred.

In March 2018, we were notified of an investigation by the CCB into pricing practices by certain asphalt paving contractors in British Columbia, including 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. Although we currently do not believe this matter will have a material adverse effect on our business, financial condition or results of operations, we are not able to predict the ultimate outcome or cost of the investigation at this time.

Environmental Remediation and Site Restoration—Our 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. We regularly monitor and review 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 our business, as it is with other companies engaged in similar businesses and there can be no assurance that environmental liabilities and noncompliance will not have a material adverse effect on our consolidated financial condition, results of operations or liquidity.

Other—We are 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 one year.

57

Table of Contents

Off-Balance Sheet Arrangements

As of January 2, 2021, we had no material off-balance sheet arrangements.

Non-GAAP Performance Measures

We evaluate our operating performance using metrics that we refer to as “Adjusted EBITDA,” “Adjusted Cash Gross Profit” and “Adjusted Cash Gross Margin” which are not defined by U.S. GAAP and should not be considered as an alternative to earnings measures defined by U.S. GAAP. We define Adjusted EBITDA as EBITDA, adjusted to exclude accretion, loss on debt financings, loss from discontinued operations and certain non-cash and non-operating items. We define Adjusted Cash Gross Profit as operating income before general and administrative expenses, depreciation, depletion, amortization and accretion and transaction costs and Adjusted Cash Gross Margin as Adjusted Cash Gross Profit as a percentage of net revenue.

We present Adjusted EBITDA, Adjusted Cash Gross Profit and Adjusted Cash Gross Margin for the convenience of investment professionals who use such metrics in their analyses. The investment community often uses these metrics to assess the operating performance of a company’s business and to provide a consistent comparison of performance from period to period. We use these metrics, among others, to assess the operating performance of our individual segments and the consolidated company.

Non-GAAP financial measures are not standardized; therefore, it may not be possible to compare such financial measures with other companies’ non-GAAP financial measures having the same or similar names. We strongly encourage investors to review our consolidated financial statements in their entirety and not rely on any single financial measure.

The tables below reconcile our net income (loss) to EBITDA and Adjusted EBITDA and present Adjusted EBITDA by segment and reconcile operating income to Adjusted Cash Gross Profit for the periods indicated:

Reconciliation of Net Income (Loss) to Adjusted EBITDA	Year ended January 2, 2021
by Segment	West		East		Cement		Corporate		Consolidated
($ in thousands)
Net income (loss)	$	178,460	$	74,781	$	69,484	$	(181,485)	$	141,240
Interest (income) expense (1)	(5,447)		(3,156)		(13,795)		125,993		103,595
Income tax expense (benefit)	4,287		(283)		—		(16,189)		(12,185)
Depreciation, depletion and amortization	93,279		84,504		36,917		3,982		218,682
EBITDA	$	270,579	$	155,846	$	92,606	$	(67,699)	$	451,332
Accretion	587		1,701		350		—		2,638
Loss on debt financings	—		—		—		4,064		4,064
Tax receivable agreement benefit (1)	—		—		—		(7,559)		(7,559)
Transaction costs	—		—		—		2,747		2,747
Non-cash compensation	—		—		—		28,857		28,857
Other	(114)		4,728		—		(1,657)		2,957
Adjusted EBITDA	$	271,052	$	162,275	$	92,956	$	(41,247)	$	485,036

58

Table of Contents

Reconciliation of Net Income (Loss) to Adjusted EBITDA	Year ended December 28, 2019
by Segment	West		East		Cement		Corporate		Consolidated
($ in thousands)
Net income (loss)	$	108,751	$	106,307	$	75,480	$	(229,415)	$	61,123
Interest expense (income) (1)	1,734		1,774		(10,489)		123,490		116,509
Income tax expense (benefit)	1,918		(267)		—		15,450		17,101
Depreciation, depletion and amortization	92,737		80,262		37,891		3,996		214,886
EBITDA	$	205,140	$	188,076	$	102,882	$	(86,479)	$	409,619
Accretion	519		1,141		556		—		2,216
Loss on debt financings	—		—		—		14,565		14,565
Tax receivable agreement expense (1)	—		—		—		16,237		16,237
Transaction costs	96		—		—		2,126		2,222
Non-cash compensation	—		—		—		20,403		20,403
Other (2)	(791)		(1,592)		—		(1,417)		(3,800)
Adjusted EBITDA	$	204,964	$	187,625	$	103,438	$	(34,565)	$	461,462

Reconciliation of Net Income (Loss) to Adjusted EBITDA	Year ended December 29, 2018
by Segment	West		East		Cement		Corporate		Consolidated
($ in thousands)
Net income (loss)	$	109,363	$	58,579	$	83,148	$	(214,760)	$	36,330
Interest expense (income) (1)	5,064		3,491		(6,815)		114,808		116,548
Income tax expense	535		32		—		59,180		59,747
Depreciation, depletion and amortization	91,224		74,463		34,996		2,622		203,305
EBITDA	$	206,186	$	136,565	$	111,329	$	(38,150)	$	415,930
Accretion	570		970		65		—		1,605
Loss on debt financings	—		—		—		149		149
Tax receivable agreement benefit	—		—		—		(22,684)		(22,684)
Gain on sale of business	(12,108)		—		—		—		(12,108)
Transaction costs	(3)		—		—		4,241		4,238
Non-cash compensation	—		—		—		25,378		25,378
Other (2)	(5,646)		497		—		(1,098)		(6,247)
Adjusted EBITDA	$	188,999	$	138,032	$	111,394	$	(32,164)	$	406,261

______________________

(1)The reconciliation of net income (loss) to Adjusted EBITDA is based on the financial results of Summit Inc. and its subsidiaries, which was $20.5 million greater, $27.5 million less and 27.5 million less than Summit LLC and its subsidiaries in the years ended January 2, 2021, December 28, 2019 and December 29, 2018, respectively, due to interest expense associated with a deferred consideration obligation, TRA expense and income tax benefit are obligations of Summit Holdings and Summit Inc., respectively, and are thus excluded from Summit LLC’s consolidated net income.

(2)For the year ended December 28, 2019, we negotiated a $2.0 million reduction in the amount of a contingent liability from one of our acquisitions. For the year ended December 29, 2018, we negotiated a $6.9 million reduction in the amount of a contingent liability from one of our acquisitions. As we had passed the period to revise the opening balance sheet for this acquisition, the adjustment was recorded as other income.

Reconciliation of Working Capital	2020		2019
($ in thousands)
Total current assets	$	893,279	$	796,281
Less total current liabilities	(322,689)		(299,297)
Working capital	$	570,590	$	496,984

59

Table of Contents

Reconciliation of Operating Income to Adjusted Cash Gross Profit	2020			2019			2018
($ in thousands)
Operating income	$	225,173		$	213,558		$	162,466
General and administrative expenses	309,531			275,813			270,402
Depreciation, depletion, amortization and accretion	221,320			217,102			204,910
Gain on sale of property, plant and equipment	(7,569)			(10,665)			(12,555)
Adjusted Cash Gross Profit (exclusive of items shown separately)	$	748,455		$	695,808		$	625,223
Adjusted Cash Gross Profit Margin (exclusive of items shown separately) (1)	35.1		%	34.3		%	32.7		%

_____________________

(1)Adjusted Cash Gross Margin is defined as Adjusted Cash Gross Profit as a percentage of net revenue.

Critical Accounting Policies and Estimates

Our management’s discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements, which have been prepared in accordance with U.S. GAAP. The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reported period.

On an ongoing basis, management evaluates its estimates, including those related to the valuation of accounts receivable, inventories, goodwill, intangibles and other long-lived assets, pension and other postretirement obligations and asset retirement obligations. We base our estimates and judgments on historical experience and on various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Acquisitions—Purchase Price Allocation

We regularly review strategic long-term plans, including potential investments in value-added acquisitions of related or similar businesses, which would increase our market share and/or are related to our existing markets. When an acquisition is completed, our consolidated statement of operations includes the operating results of the acquired business starting from the date of acquisition, which is the date that control is obtained. The purchase price is determined based on the estimated fair value of assets given to and liabilities assumed from the seller as of the date of acquisition. We allocate the purchase price to the estimated fair values of the tangible and intangible assets acquired and liabilities assumed as valued at the date of acquisition. Goodwill is recorded for the excess of the purchase price over the net of the fair value of the identifiable assets acquired and liabilities assumed as of the acquisition date. The estimation of fair values of acquired assets and assumed liabilities is judgmental and requires various assumptions and the amounts and useful lives assigned to depreciable and amortizable assets compared to amounts assigned to goodwill, which is not amortized, can significantly affect the results of operations in the period of and periods subsequent to a business combination.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction, and therefore represents an exit price. A fair value measurement assumes the highest and best use of the asset by market participants, considering the use of the asset that is physically possible, legally permissible, and financially feasible at the measurement date. We assign the highest level of fair value available to assets acquired and liabilities assumed based on the following options:

•Level 1—Quoted prices in active markets for identical assets and liabilities.

•Level 2—Observable inputs, other than quoted prices, for similar assets or liabilities in active markets.

•Level 3—Unobservable inputs, which includes the use of valuation models.

Level 1 fair values are used to value investments in publicly-traded entities and assumed obligations for publicly-traded long-term debt.    

60

Table of Contents

Level 2 inputs are typically used to estimate the fair value of acquired machinery, equipment and land and assumed liabilities for asset retirement obligations, environmental remediation and compliance obligations and contingencies.

Level 3 fair values are used to value acquired mineral reserves and leased mineral interests and other identifiable intangible assets. The fair values of mineral reserves and leased mineral interests are determined using an excess earnings approach, which require management to estimate future cash flows. The estimate of future cash flows is based on available historical information and forecasts determined by management, but is inherently uncertain. Key assumptions in estimating future cash flows include sales price, volumes and expected profit margins, net of capital requirements. The present value of the projected net cash flows represents the fair value assigned to mineral reserves and mineral interests. The discount rate is a significant assumption used in the valuation model and is based on the required rate of return that a hypothetical market participant would assume if purchasing the acquired business.

There is a measurement period after the acquisition date during which we may adjust the amounts recognized for a business combination. Any such adjustments are based on us obtaining additional information that existed at the acquisition date regarding the assets acquired or the liabilities assumed. Measurement period adjustments are generally recorded as increases or decreases to the goodwill recognized in the transaction. The measurement period ends once we have obtained all necessary information that existed as of the acquisition date, but does not extend beyond one year from the date of acquisition. Any adjustments to assets acquired or liabilities assumed beyond the measurement period are recorded in earnings.

We paid cash of $123.5 million and $5.4 million, net of cash acquired, in business combinations and allocated this amount to assets acquired and liabilities assumed during the years ended January 2, 2021 and December 28, 2019, respectively.

Goodwill

Goodwill is tested annually for impairment and in interim periods if events occur indicating that the carrying amounts may be impaired. The evaluation involves the use of significant estimates and assumptions and considerable management judgment. Our judgments regarding the existence of impairment indicators and future cash flows are based on operational performance of our businesses, market conditions and other factors. Although there are inherent uncertainties in this assessment process, the estimates and assumptions we use, including estimates of future cash flows, volumes, market penetration and discount rates, are consistent with our internal planning. The estimated future cash flows are derived from internal operating budgets and forecasts for long-term demand and pricing in our industry and markets. If these estimates or their related assumptions change in the future, we may be required to record an impairment charge on all or a portion of our goodwill. Furthermore, we cannot predict the occurrence of future impairment-triggering events nor the affect such events might have on our reported values. Future events could cause us to conclude that impairment indicators exist and that goodwill associated with our acquired businesses are impaired. Any resulting impairment loss could have an adverse effect on our financial condition and results of operations.

The annual goodwill test is performed by first assessing qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If, as a result of the qualitative assessment, it is determined that an impairment is more likely than not, we are then required to perform the two-step quantitative impairment test, otherwise further analysis is not required. We also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. The ultimate outcome of the goodwill impairment review for a reporting unit should be the same whether we choose to perform the qualitative assessment or proceed directly to the two-step quantitative impairment test.

Under the two-step quantitative impairment test, step one of the evaluation of impairment involves comparing the current fair value of each reporting unit to its carrying value, including goodwill. We use a discounted cash flow (“DCF”) model to estimate the current fair value of our reporting units when testing for impairment, as management believes forecasted cash flows are the best indicator of fair value. A number of significant assumptions and estimates are involved in the application of the DCF model to forecast operating cash flows, including macroeconomic trends in the reporting unit’s geographic area impacting private construction and public infrastructure industries, the timing of work embedded in our backlog, our performance and profitability under our contracts, our success in securing future sales and the appropriate interest rate used to discount the projected cash flows. We also perform a market assessment of our enterprise value. We believe the estimates and assumptions used in the valuations are reasonable.

In conjunction with our annual review of goodwill on the first day of the fourth quarter, we performed the qualitative assessment for our reporting units. In 2020, we performed a two-step quantitative analysis on four of our reporting units. Step 1 of that analysis compares the estimated the fair value of the reporting units using an income approach (i.e., a discounted cash flow technique) and a market approach to the carrying value of the reporting unit. If the estimated fair value exceeds its

61

Table of Contents

carrying value, the goodwill of the reporting unit is not considered impaired. If the carrying value of the reporting unit exceeds its fair value, we proceed to the second step to measure the amount of potential impairment loss.

As of January 2, 2021, we determined that no events or circumstances from September 28, 2020 through January 2, 2021 indicated that a further assessment was necessary.

Service Revenue Recognition

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.

Collectability of service contracts is due reasonably after certain milestones in the contract are performed. Milestones vary by project, but are typically calculated using monthly progress based on the percentage of completion or a customer’s engineer review of progress. The majority of the time, collection occurs within 90 days of billing and cash is received within the same fiscal year as services performed. On most projects the customer will withhold a portion of the invoice for retainage which may last longer than a year depending on the job. 

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. The majority of our construction service contracts, and therefore, revenue, are opened and completed within one year, with most activity during the spring, summer and fall. 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 year ended January 2, 2021.

We recognize claims when the amount of the claim can be estimated reliably and its legally enforceable. In evaluating these criteria, we consider the contractual basis for the claim, the cause of any additional costs incurred, the reasonableness of those costs and the objective evidence available to support the claim.

When the contract includes variable consideration, we estimate the amount of consideration to which we will be entitled in exchange for transferring the promised goods or services to a customer. The amount of estimated variable consideration included in the transaction price is the amount for which it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Types of variable consideration include, but are not limited to, liquidated damages and other performance penalties and production and placement bonuses. 

The majority of contract modifications relate to the original contract and are often an extension of the original performance obligation. Predominately, modifications are not distinct from the terms in the original contract; therefore, they are considered part of a single performance obligation. We account for the modification using a cumulative catch-up adjustment. However, there are instances where goods or services in a modification are distinct from those transferred prior to the

62

Table of Contents

modification. In these situations, we account for the modifications as either a separate contract or prospectively depending on the facts and circumstances of the modification. 

Generally, construction contracts contain mobilization costs which are categorized as costs to fulfill a contract. These costs are excluded from any measure of progress toward contract fulfillment. These costs do not result in the transfer of control of a good or service to the customer and are amortized over the life of the contract. 

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.

Income Taxes

Summit Inc. is a corporation subject to income taxes in the United States. Certain subsidiaries, including Summit Holdings, or subsidiary groups of the Company are taxable separate from Summit Inc. The provisions for income taxes, or Summit Inc.’s proportional share of the provision, are included in the Company’s consolidated financial statements.

The Company’s deferred income tax assets and liabilities are computed for differences between the tax basis and financial statement amounts that will result in taxable or deductible amounts in the future. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible, as well as consideration of tax-planning strategies to determine whether we may seek to utilize any net operating loss carryforwards scheduled to expire in the near future. The estimates of future taxable income involves the use of significant estimates and assumptions and considerable management judgment. Our judgments regarding future taxable income and future cash flows are based on operational performance of our businesses, market conditions and other factors. Although there are inherent uncertainties in this assessment process, the estimates and assumptions we use, including estimates of future cash flows, are consistent with our internal planning. The computed deferred balances are based on enacted tax laws and applicable rates for the periods in which the differences are expected to affect taxable income. A valuation allowance is recognized for deferred tax assets if it is more likely than not that some portion or all of the net deferred tax assets will not be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines it would be able to realize its deferred tax assets for which a valuation allowance had been recorded, then an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

The Company evaluates the tax positions taken on income tax returns that remain open and positions expected to be taken on the current year tax returns to identify uncertain tax positions. Unrecognized tax benefits on uncertain tax positions are recorded on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is more than 50 percent likely to be realized is recognized. Interest and penalties related to unrecognized tax benefits are recorded in income tax benefit.

Tax Receivable Agreement

Tax Receivable Agreement— When Summit Inc. purchases LP Units for cash or LP Units are exchanged for shares of Class A common stock, this results in increases in Summit Inc.’s share of the tax basis of the tangible and intangible assets of Summit Holdings, which increases the tax depreciation and amortization deductions that otherwise would not have been available to Summit Inc.  These increases in tax basis and tax depreciation and amortization deductions are expected to reduce the amount of cash taxes that we would otherwise be required to pay in the future. In connection with our IPO, we entered into a TRA with the holders of the LP Units and the pre-IPO owners that provides for the payment by Summit Inc. to exchanging holders of LP Units of 85% of the benefits, if any, that Summit Inc. actually realizes (or, under certain circumstances such as an early termination of the TRA is deemed to realize) as a result of (i) these increases in tax basis and (ii) our utilization of certain net operating losses of the pre-IPO owners and certain other tax benefits related to entering into the TRA, including tax benefits attributable to payments under the TRA.

We periodically evaluate the realizability of the deferred tax assets resulting from the exchange of LP Units for Class A common stock. Our evaluation considers all sources of taxable income; all evidence, both positive and negative, is considered to determine whether, based on the weight of that evidence, a valuation allowance is needed for some portion or all

63

Table of Contents

of the deferred tax assets. If the deferred tax assets are determined to be realizable, we then assess whether payment of amounts under the TRA have become probable. If so, we record a TRA liability of 85% of such deferred tax assets. In subsequent periods, we assess the realizability of all of our deferred tax assets subject to the TRA. Should we determine a deferred tax asset with a valuation allowance is realizable in a subsequent period, the related valuation allowance will be released and consideration of a corresponding TRA liability will be assessed. The realizability of deferred tax assets, including those subject to the TRA, is dependent upon the generation of future taxable income during the periods in which those deferred tax assets become deductible and consideration of prudent and feasible tax-planning strategies.

The measurement of the TRA liability is accounted for as a contingent liability. Therefore, once we determine that a payment to a pre-IPO owner has become probable and can be estimated, the estimate of payment will be accrued.

ITEM 7A.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

We are exposed to certain market risks arising from transactions that are entered into in the normal course of business. Our operations are highly dependent upon the interest rate‑sensitive construction industry as well as the general economic environment. Consequently, these marketplaces could experience lower levels of economic activity in an environment of rising interest rates or escalating costs. Management has considered the current economic environment and its potential effect to our business. Demand for materials‑based products, particularly in the residential and nonresidential construction markets, could decline if companies and consumers are unable to obtain financing for construction projects or if an economic recession causes delays or cancellations to capital projects. Additionally, in preceding years, declining tax revenue, state budget deficits and unpredictable or inconsistent federal funding have negatively affected states’ abilities to finance infrastructure construction projects.

Commodity and Energy Price Risk

We are subject to commodity price risk with respect to price changes in liquid asphalt and energy, including fossil fuels and electricity for aggregates, cement, ready‑mix concrete and asphalt paving mix production, natural gas for hot mix asphalt production and diesel fuel for distribution vehicles and production related mobile equipment. Liquid asphalt escalators in most of our public infrastructure contracts limit our exposure to price fluctuations in this commodity, and we seek to obtain escalators on private and commercial contracts. Similarly, in periods of decreasing oil prices, a portion of the cost savings will be recouped by our end customers. Changes in oil prices also could affect demand in certain of our markets, particularly in Midland/Odessa, Texas and indirectly in Houston, Texas, which collectively represented approximately 13.0% of our consolidated revenue in 2020. In addition, we enter into various firm purchase commitments, with terms generally less than one year, for certain raw materials.

For the year ended January 2, 2021, our costs associated with liquid asphalt and energy amounted to approximately $257.3 million. Accordingly, a 10% increase or decrease in the total cost of liquid asphalt and energy would have decreased or increased, respectively, our operating results for the year by approximately $25.7 million. However, this does not take into consideration liquid asphalt escalators in certain contracts or forward purchase commitments put into place before January 2, 2021.

Inflation Risk

Inflation rates in recent years have not been a significant factor in our revenue or earnings due to relatively low inflation and our ability to recover increasing costs by obtaining higher prices for our products, including sale price escalators in place for most public infrastructure sector contracts. Inflation risk varies with the level of activity in the construction industry, the number, size and strength of competitors and the availability of products to supply a local market.

Foreign Currency Risk

In 2014, we expanded our operations into Canada with the acquisition of Mainland. With this expansion, we became subject to foreign currency risk related to changes in the U.S. dollar/Canadian dollar exchange rates. A 10% adverse change in foreign currency rates from December 2020 levels would not have had a material effect on our financial condition, results of operations or liquidity.

Interest Rate Risk

As of January 2, 2021, we had $616.3 million in term loans outstanding which bear interest at a variable rate. As of January 2, 2021, the rate in effect was the one‑month LIBOR of 0.15%, plus the Applicable Rate of 200 basis points. Therefore,

64

Table of Contents

a 100 basis point increase in the interest rate at January 2, 2021 would only have increased the all-in rate from 2.15% to 3.15%, the effect of which would have been an increase of $6.2 million on annual interest expense.

On January 19, 2017, we amended the Credit Agreement and, as a result, the floor decreased from 1.00% to 0.75% and the applicable margin was reduced. On November 21, 2017, Summit LLC entered into Amendment No. 2 to the Amended and Restated Credit Agreement, which, among other things, extended the maturity date from 2022 to 2024, brought the floor to zero and reduced the applicable margin in respect of the $635.4 million outstanding principal amount of term loans thereunder. On May 22, 2018, Summit LLC entered into Amendment No. 3 to the Amended and Restated Credit Agreement, which further reduced the applicable margin in respect of the $633.8 million outstanding principal amount of term loans thereunder.

We have entered into interest rate derivatives on $200.0 million of our term loan borrowings to add stability to interest expense and to manage exposure to interest rate movements. The derivative expired in September 2019.

At our cement plants, we sponsored two non‑contributory defined benefit pension plans for certain hourly and salaried employees and two healthcare and life insurance benefits plans for certain eligible retired employees. As of January 2014, the two pension plans had been frozen to new participants and future benefit accruals and the healthcare and life insurance benefit plan has been amended to eliminate all future retiree health and life coverage for current employees. As a result of the acquisition of a cement and quarry in Davenport, Iowa and cement distribution terminals along the Mississippi River in 2015, the hourly defined benefit pension plan was amended to permit a new group of participants into the plan to accrue benefits in accordance with the terms of the collective bargaining agreement covering such Davenport employees. As a result of the collective bargaining unit negotiations in 2017, the hourly defined benefit pension plan was amended to stop future benefit accruals for the Davenport employees effective December 31, 2017. In 2015, the company adopted one new retiree healthcare plan to provide benefits prior to Medicare eligibility for certain hourly Davenport employees. As a result of the collective bargaining unit negotiations in 2017, hourly Davenport employees hired on or after January 1, 2018 are no longer eligible for retiree medical benefits. Our results of operations are affected by our net periodic benefit cost from these plans, which was $0.2 million in 2019. Assumptions that affect this expense include the discount rate and, for the pension plans only, the expected long‑term rate of return on assets. Beginning in 2021, we decreased our estimated rate of return on assets from 7% to 5%, to better align with actual returns. Therefore, we have interest rate risk associated with these factors. Our cash flow obligations related to this change in estimate are not expected to change materially over the next five years.

The healthcare and life insurance benefit plans are exposed to changes in the cost of healthcare services. A one percentage‑point increase or decrease in assumed health care cost trend rates would have affected the accumulated postretirement benefit obligation by approximately $0.8 million or $(0.7) million, respectively, at January 2, 2021.

65

Table of Contents

ITEM 8.    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors

Summit Materials, Inc.:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Summit Materials, Inc. and subsidiaries (the Company) as of January 2, 2021 and December 28, 2019, the related consolidated statements of operations, comprehensive income, stockholders’ equity, and cash flows for each of the fiscal years ended January 2, 2021, December 28, 2019, and December 29, 2018 and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of January 2, 2021 and December 28, 2019, and the results of its operations and its cash flows for each of the fiscal years ended January 2, 2021, December 28, 2019, and December 29, 2018 in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of January 2, 2021, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 24, 2021 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Change in Accounting Principle

As discussed in Note 1 to the consolidated financial statements, the Company has changed its method of accounting for leases as of December 30, 2018 due to the adoption of Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 842, Leases.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Revenue recognized over time on paving and related services contracts

As discussed in Notes 1 and 4 to the consolidated financial statements, the Company earns revenue from providing paving and related services, which are recognized over time as performance obligations are satisfied. The Company recognizes paving and related services revenue as services are rendered based on the proportion of costs incurred to date relative to total estimated costs to complete. For the year ended January 2, 2021, the Company recognized service revenue related to paving and related services of $310 million.

66

Table of Contents

We identified the assessment of revenue recognized over time on paving and related services contracts in-progress as a critical audit matter. Paving and related services contracts in-progress required challenging auditor judgment to evaluate the forecast of remaining costs to complete, which had a significant impact on the amount of revenue recognized during the period.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s revenue recognition process related to paving and related services, including controls over the forecasting of estimated costs to complete. We selected a sample of in-progress paving and related services costs incurred and compared the amounts and dates incurred to underlying supporting documentation. We analyzed prior year end in-progress contracts that were completed in the current year to evaluate the Company’s ability to accurately estimate paving and related services contract forecasted costs to complete. For certain contracts, we evaluated the estimated costs to complete by performing project manager interviews to obtain an understanding of the facts and circumstances of each selected contract, including changes in scope to the contract, additional estimated costs to complete, and expected completion date. For certain contracts, we also confirmed with the Company’s customers that the original contract amount, terms of the contact, modifications and billings to the customer were accurate.

 /s/ KPMG LLP

We have served as the Company’s auditor since  2012.

Denver, Colorado  

February 24, 2021

67

Table of Contents

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

January 2, 2021 and December 28, 2019

(In thousands, except share and per share amounts) 

	2020		2019
Assets
Current assets:
Cash and cash equivalents	$	418,181	$	311,319
Accounts receivable, net	254,696		253,256
Costs and estimated earnings in excess of billings	8,666		13,088
Inventories	200,308		204,787
Other current assets	11,428		13,831
Total current assets	893,279		796,281
Property, plant and equipment	1,850,169		1,747,449
Goodwill	1,201,291		1,199,699
Intangible assets	47,852		23,498
Deferred tax assets	231,877		212,333
Operating lease right-of-use assets	28,543		32,777
Other assets	55,000		55,519
Total assets	$	4,308,011	$	4,067,556
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion of debt	$	6,354	$	7,942
Current portion of acquisition-related liabilities	10,265		32,700
Accounts payable	120,813		116,359
Accrued expenses	160,570		120,005
Current operating lease liabilities	8,188		8,427
Billings in excess of costs and estimated earnings	16,499		13,864
Total current liabilities	322,689		299,297
Long-term debt	1,892,347		1,851,057
Acquisition-related liabilities	12,246		19,801
Tax receivable agreement liability	321,680		326,965
Noncurrent operating lease liabilities	21,500		25,381
Other noncurrent liabilities	121,281		100,282
Total liabilities	2,691,743		2,622,783
Commitments and contingencies (see note 16)
Stockholders’ equity:
Class A common stock, par value $0.01 per share; 1,000,000,000 shares authorized, 114,390,595 and 113,309,385 shares issued and outstanding as of January 2, 2021 and December 28, 2019, respectively	$	1,145	$	1,134
Class B common stock, par value $0.01 per share; 250,000,000 shares authorized, 99 shares issued and outstanding as of January 2, 2021 and December 28, 2019	—		—
Additional paid-in capital	1,264,681		1,234,020
Accumulated earnings	326,772		188,805
Accumulated other comprehensive income	5,203		3,448
Stockholders’ equity	1,597,801		1,427,407
Noncontrolling interest in Summit Holdings	18,467		17,366
Total stockholders’ equity	1,616,268		1,444,773
Total liabilities and stockholders’ equity	$	4,308,011	$	4,067,556

See accompanying notes to consolidated financial statements.

68

Table of Contents

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

Years ended January 2, 2021, December 28, 2019 and December 29, 2018

(In thousands, except share and per share amounts)

	2020		2019		2018
Revenue:
Product	$	1,824,679	$	1,724,462	$	1,600,159
Service	310,075		306,185		309,099
Net revenue	2,134,754		2,030,647		1,909,258
Delivery and subcontract revenue	197,697		191,493		191,744
Total revenue	2,332,451		2,222,140		2,101,002
Cost of revenue (excluding items shown separately below):
Product	1,166,266		1,116,662		1,058,544
Service	220,033		218,177		225,491
Net cost of revenue	1,386,299		1,334,839		1,284,035
Delivery and subcontract cost	197,697		191,493		191,744
Total cost of revenue	1,583,996		1,526,332		1,475,779
General and administrative expenses	309,531		275,813		270,402
Depreciation, depletion, amortization and accretion	221,320		217,102		204,910
Gain on sale of property, plant and equipment	(7,569)		(10,665)		(12,555)
Operating income	225,173		213,558		162,466
Interest expense	103,595		116,509		116,548
Loss on debt financings	4,064		14,565		149
Tax receivable agreement (benefit) expense	(7,559)		16,237		(22,684)
Gain on sale of business	—		—		(12,108)
Other income, net	(3,982)		(11,977)		(15,516)
Income from operations before taxes	129,055		78,224		96,077
Income tax expense (benefit)	(12,185)		17,101		59,747
Net income	141,240		61,123		36,330
Net income attributable to Summit Holdings	3,273		2,057		2,424
Net income attributable to Summit Inc.	$	137,967	$	59,066	$	33,906
Earnings per share of Class A common stock:
Basic	$	1.21	$	0.53	$	0.30
Diluted	$	1.20	$	0.52	$	0.30
Weighted average shares of Class A common stock:
Basic	114,227,192		112,204,067		111,380,175
Diluted	114,631,768		112,684,718		112,316,646

See accompanying notes to consolidated financial statements.

69

Table of Contents

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

Years ended January 2, 2021, December 28, 2019 and December 29, 2018

(In thousands)

	2020		2019		2018
Net income	$	141,240	$	61,123	$	36,330
Other comprehensive income (loss):
Postretirement liability adjustment	(2,229)		(1,925)		1,661
Foreign currency translation adjustment	4,617		4,716		(9,348)
Income (loss) on cash flow hedges	—		(146)		1,206
Less tax effect of other comprehensive (loss) income items	(575)		—		1,578
Other comprehensive income	1,813		2,645		(4,903)
Comprehensive income	143,053		63,768		31,427
Less comprehensive income attributable to Summit Holdings	3,331		3,935		2,226
Comprehensive income attributable to Summit Inc.	$	139,722	$	59,833	$	29,201

See accompanying notes to consolidated financial statements.

70

Table of Contents

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

Years ended January 2, 2021, December 28, 2019 and December 29, 2018

(In thousands)

	2020		2019		2018
Cash flow from operating activities:
Net income	$	141,240	$	61,123	$	36,330
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation, depletion, amortization and accretion	227,817		222,862		208,772
Share-based compensation expense	28,857		20,403		25,378
Net gain on asset disposals	(7,548)		(10,294)		(30,093)
Non-cash loss on debt financings	4,064		2,850		—
Change in deferred tax asset, net	(18,384)		16,012		57,490
Other	619		(2,135)		2,018
Decrease (increase) in operating assets, net of acquisitions and dispositions:
Accounts receivable, net	5,467		(37,049)		(5,796)
Inventories	3,339		8,582		(11,598)
Costs and estimated earnings in excess of billings	4,535		5,558		(8,702)
Other current assets	472		5,465		(7,159)
Other assets	10,264		5,085		(106)
(Decrease) increase in operating liabilities, net of acquisitions and dispositions:
Accounts payable	(4,231)		18,903		(13,403)
Accrued expenses	15,476		7,640		(16,544)
Billings in excess of costs and estimated earnings	2,616		1,988		(5,052)
Tax receivable agreement liability	(5,285)		17,291		(21,666)
Other liabilities	(449)		(7,100)		(501)
Net cash provided by operating activities	408,869		337,184		209,368
Cash flow from investing activities:
Acquisitions, net of cash acquired	(123,477)		(5,392)		(246,017)
Purchases of property, plant and equipment	(177,249)		(177,495)		(220,685)
Proceeds from the sale of property, plant and equipment	14,018		21,173		21,635
Proceeds from sale of business	—		—		21,564
Other	1,121		(1,095)		3,804
Net cash used in investing activities	(285,587)		(162,809)		(419,699)
Cash flow from financing activities:
Proceeds from debt issuances	700,000		300,000		64,500
Debt issuance costs	(9,605)		(6,312)		(550)
Payments on debt	(674,045)		(270,229)		(85,042)
Payments on acquisition-related liabilities	(33,257)		(33,883)		(36,504)
Distributions from partnership	—		—		(69)
Proceeds from stock option exercises	1,043		19,076		15,615
Other	(907)		(502)		(1,943)
Net cash (used in) provided by financing activities	(16,771)		8,150		(43,993)
Impact of foreign currency on cash	351		286		(724)
Net increase in cash	106,862		182,811		(255,048)
Cash and cash equivalents—beginning of period	311,319		128,508		383,556
Cash and cash equivalents—end of period	$	418,181	$	311,319	$	128,508

See accompanying notes to consolidated financial statements.

71

Table of Contents

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

Consolidated Statements of Changes in Stockholders’ Equity

Years ended January 2, 2021, December 28, 2019 and December 29, 2018

(In thousands, except share amounts)

	Summit Materials, Inc.
			Accumulated
			Other		Class A			Class B			Additional		Noncontrolling		Total
	Accumulated		Comprehensive		Common Stock			Common Stock			Paid-in		Interest in		Stockholders’
	Earnings		income		Shares	Dollars		Shares	Dollars		Capital		Summit Holdings		Equity
Balance — December 30, 2017	$	95,833	$	7,386	110,350,594	$	1,104	100	$	—	$	1,154,220	$	13,178	$	1,271,721
Net income	33,906		—		—	—		—	—		—		2,424		36,330
LP Unit exchanges	—		—		254,102	2		—	—		929		(931)		—
Other comprehensive income, net of tax	—		(4,705)		—	—		—	—		—		(198)		(4,903)
Stock option exercises	—		—		863,898	9		—	—		15,607		—		15,616
Share-based compensation	—		—		—	—		—	—		25,378		—		25,378
Distributions from partnership	—		—		—	—		—	—		—		(69)		(69)
Shares redeemed to settle taxes and other	—		—		190,333	2		(1)	—		(1,930)		—		(1,928)
Balance — December 29, 2018	$	129,739	$	2,681	111,658,927	$	1,117	99	$	—	$	1,194,204	$	14,404	$	1,342,145
Net income	59,066		—		—	—		—	—		—		2,057		61,123
LP Unit exchanges	—		—		185,861	2		—	—		971		(973)		—
Other comprehensive income, net of tax	—		767		—	—		—	—		—		1,878		2,645
Stock option exercises	—		—		1,065,446	11		—	—		19,065		—		19,076
Share-based compensation	—		—		—	—		—	—		20,403		—		20,403
Shares redeemed to settle taxes and other	—		—		399,151	4		—	—		(623)		—		(619)
Balance — December 28, 2019	$	188,805	$	3,448	113,309,385	$	1,134	99	$	—	$	1,234,020	$	17,366	$	1,444,773
Net income	137,967		—		—	—		—	—		—		3,273		141,240
LP Unit exchanges	—		—		376,487	4		—	—		2,226		(2,230)		—
Other comprehensive income, net of tax	—		1,755		—	—		—	—		—		58		1,813
Stock option exercises	—		—		54,517	1		—	—		1,042		—		1,043
Share-based compensation	—		—		—	—		—	—		28,857		—		28,857
Shares redeemed to settle taxes and other	—		—		650,206	6		—	—		(1,464)		—		(1,458)
Balance — January 2, 2021	$	326,772	$	5,203	114,390,595	$	1,145	99	$	—	$	1,264,681	$	18,467	$	1,616,268

See accompanying notes to consolidated financial statements.

72

Table of Contents

SUMMIT MATERIALS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in tables in thousands, unless otherwise noted)

(1) Summary of Organization and Significant Accounting Policies

Summit Materials, Inc. (“Summit Inc.” 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, 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 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.

On September 23, 2014, Summit Inc. was formed as a Delaware corporation to be a holding company. Its sole material asset is a controlling equity interest in Summit Materials Holdings L.P. (“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 ("IPO"), Summit Inc. became a holding corporation operating and controlling all of the business and affairs of Summit Holdings and its subsidiaries. Summit Inc. owns the majority of the partnership interests of Summit Holdings (see note 11, Stockholders’ Equity).  Summit Materials, LLC (“Summit LLC”) an indirect wholly owned subsidiary of Summit Holdings, conducts the majority of our operations. Continental Cement Company, L.L.C. (“Continental Cement”) is also a wholly owned subsidiary of Summit LLC. Summit Materials Finance Corp. (“Summit Finance”), an indirect wholly owned subsidiary of Summit LLC, has jointly issued our Senior Notes as described below.

Principles of Consolidation—The consolidated financial statements include the accounts of Summit Inc. and its majority owned subsidiaries. All intercompany balances and transactions have been eliminated. As a result of the Reorganization, Summit Holdings became a variable interest entity over which Summit Inc. has 100% voting power and control and for which Summit Inc. has the obligation to absorb losses and the right to receive benefits.

The Company’s fiscal year is based on a 52-53 week year with each quarter composed of 13 weeks ending on a Saturday. The year ended January 2, 2021 was a 53-week year.

For a summary of the changes in Summit Inc.’s ownership of Summit Holdings, see Note 11, Stockholders’ Equity.

The Company attributes consolidated stockholders’ equity and net income separately to the controlling and noncontrolling interests. The Company accounts for investments in entities for which it has an ownership of 20% to 50% using the equity method of accounting. 

Use of Estimates—Preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles (“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, the tax receivable agreement (“TRA”) liability, 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.  

73

Table of Contents

Business and Credit Concentrations—The Company’s operations are conducted primarily across 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 2020, 2019 or 2018.

Accounts Receivable—Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the collectability of individual accounts. In establishing the allowance, management considers historical losses adjusted to take into account current market conditions and its customers’ financial condition, the amount of receivables in dispute, the current receivables aging and current payment terms. Balances that remain outstanding after reasonable collection efforts are exercised are written off through a charge to the valuation allowance.

The balances billed but not paid by customers, pursuant to retainage provisions included in contracts, are generally due upon completion of the contracts.

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.

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. Revenue for product sales is recognized when evidence of an arrangement exists and when control passes, which generally is when the product is shipped. 

Aggregates and cement products are sold point-of-sale through purchase orders. When the product is sold on account, collectability typically occurs 30 to 60 days after the sale.  Revenue is recognized when cash is received from the customer at the point of sale or when the products are delivered or collected on site. There are no other timing implications that will create a contract asset or liability, and contract modifications are unlikely given the timing and nature of the transaction. Material sales are likely to have multiple performance obligations if the product is sold with delivery. In these instances, delivery most often occurs on the same day as the control of the product transfers to the customer. As a result, even in the case of multiple performance obligations, the performance obligations are satisfied concurrently and revenue is recognized simultaneously. 

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.

Collectability of service contracts is due reasonably after certain milestones in the contract are performed. Milestones vary by project, but are typically calculated using monthly progress based on the percentage of completion or a customer’s engineer review of progress. The majority of the time, collection occurs within 90 days of billing and cash is received within the same fiscal year as services performed. On most projects, the customer will withhold a portion of the invoice for retainage, which may last longer than a year depending on the job. 

Revenue derived from paving and related services is recognized over time based on the proportion of costs incurred to date relative to the total estimated costs at completion, which approximates progress towards completion. Under this 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. The majority of our construction service contracts, and therefore, revenue, are opened and completed within one year, with most activity during the spring, summer and fall. 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-

74

Table of Contents

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 actual cost to total estimated cost 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 year ended January 2, 2021.

We recognize claims when the amount of the claim can be estimated reliably and it is legally enforceable. In evaluating these criteria, we consider the contractual basis for the claim, the cause of any additional costs incurred, the reasonableness of those costs and the objective evidence available to support the claim.

When the contract includes variable consideration, we estimate the amount of consideration to which we will be entitled in exchange for transferring the promised goods or services to a customer. The amount of estimated variable consideration included in the transaction price is the amount for which it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Types of variable consideration include, but are not limited to, liquidated damages and other performance penalties and production and placement bonuses. 

The majority of contract modifications relate to the original contract and are often an extension of the original performance obligation. Predominately, modifications are not distinct from the terms in the original contract; therefore, they are considered part of a single performance obligation. We account for the modification using a cumulative catch-up adjustment. However, there are instances where goods or services in a modification are distinct from those transferred prior to the modification. In these situations, we account for the modifications as either a separate contract or prospectively depending on the facts and circumstances of the modification. 

Generally, construction contracts contain mobilization costs which are categorized as costs to fulfill a contract. These costs are excluded from any measure of progress toward contract fulfillment. These costs do not result in the transfer of control of a good or service to the customer and are amortized over the life of the contract. 

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.

Inventories—Inventories consist of stone that has been removed from quarries and processed for future sale, cement, raw materials and finished concrete blocks. Inventories are valued at the lower of cost or net realizable value and are accounted for on a first-in first-out basis or an average cost basis. If items become obsolete or otherwise unusable or if quantities exceed what is projected to be sold within a reasonable period of time, they will be charged to costs of revenue in the period that the items are designated as obsolete or excess inventory. Stripping costs are costs of removing overburden and waste material to access aggregate materials and are expensed as incurred.

Property, Plant and Equipment, net—Property, plant and equipment are recorded at cost, less accumulated depreciation, depletion and amortization. Expenditures for additions and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Repair and maintenance costs that do not substantially expand productive capacity or extend the life of property, plant and equipment are expensed as incurred.

Landfill airspace is included in property, plant and equipment at cost and is amortized based on the portion of the airspace used during the period compared to the gross estimated value of available airspace, which is updated periodically as circumstances dictate. Management reassesses the landfill airspace capacity with any changes in value recorded in cost of

75

Table of Contents

revenue. Capitalized landfill costs include expenditures for the acquisition of land and related airspace, engineering and permitting costs, cell construction costs and direct site improvement costs.

Upon disposal of an asset, the cost and related accumulated depreciation are removed from the Company’s accounts and any gain or loss is included in general and administrative expenses.

The Company reviews the carrying value of property, plant and equipment for impairment whenever events or circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. Such indicators may include, among others, deterioration in general economic conditions, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows or a trend of negative or declining cash flows over multiple periods.

Property, plant and equipment is tested for impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. As a result, the property, plant and equipment impairment test is at a significantly lower level than the level at which goodwill is tested for impairment. In markets where the Company does not produce downstream products, such as ready-mix concrete, asphalt paving mix and paving and related services, the lowest level of largely independent identifiable cash flows is at the individual aggregates operation or a group of aggregates operations collectively serving a local market or the cement operations. Conversely, in vertically-integrated markets, the cash flows of the downstream and upstream businesses are not largely independently identifiable and the vertically-integrated operations are considered the lowest level of largely independent identifiable cash flows.

Aggregates mineral bearing land and interests are included in property, plant and equipment. When leased mineral interests are acquired during a business combination, they are valued using an excess earnings approach for the life of the proven and probable reserves. Depletion expense is recorded using a units of production methodology.

Accrued Mining and Landfill Reclamation—The mining reclamation reserve and financial commitments for landfill closure and post-closure activities are based on management’s estimate of future cost requirements to reclaim property at both currently operating and closed sites. Estimates of these obligations have been developed based on management’s interpretation of current requirements and proposed regulatory changes and are intended to approximate fair value. Costs are estimated in current dollars, inflated until the expected time of payment, and then discounted back to present value using a credit-adjusted risk-free rate on obligations of similar maturity, adjusted to reflect the Company’s credit rating. Changes in the credit-adjusted risk-free rate do not change recorded liabilities. However, subsequent increases in the recognized obligations are measured using a current credit-adjusted risk-free rate. Decreases in the recognized obligations are measured at the initial credit-adjusted risk-free rate.

Significant changes in inflation rates, or the amount or, timing of future cost estimates typically result in both (1) a current adjustment to the recorded liability (and corresponding adjustment to the asset) and (2) a change in accretion of the liability and depreciation of the asset to be recorded prospectively over the remaining capacity of the unmined quarry or landfill.

Goodwill—Goodwill represents the purchase price paid in excess of the fair value of net tangible and intangible assets acquired. Goodwill recorded in connection with the Company’s acquisitions is primarily attributable to the expected profitability, assembled workforces of the acquired businesses and the synergies expected to arise after the Company’s acquisition of those businesses. Goodwill is not amortized, but is tested annually for impairment as of the first day of the fourth quarter and at any time that events or circumstances indicate that goodwill may be impaired. A qualitative approach may first be applied to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If, as a result of the qualitative assessment, it is determined that an impairment is more likely than not, the two-step quantitative impairment test is then performed, otherwise further analysis is not required. The two-step impairment test first identifies potential goodwill impairment for each reporting unit and then, if necessary, measures the amount of the impairment loss.

Income Taxes—Summit Inc. is a corporation subject to income taxes in the United States. Certain subsidiaries, including Summit Holdings, or subsidiary groups of the Company are taxable separate from Summit Inc. The provision for income taxes, or Summit Inc.’s proportional share of the provision, are included in the Company’s consolidated financial statements.

The Company’s deferred income tax assets and liabilities are computed for differences between the tax basis and financial statement amounts that will result in taxable or deductible amounts in the future. The computed deferred balances are based on enacted tax laws and applicable rates for the periods in which the differences are expected to affect taxable income. A

76

Table of Contents

valuation allowance is recognized for deferred tax assets if it is more likely than not that some portion or all of the net deferred tax assets will not be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines it would be able to realize its deferred tax assets for which a valuation allowance had been recorded then an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

The Company evaluates the tax positions taken on income tax returns that remain open and positions expected to be taken on the current year tax returns to identify uncertain tax positions. Unrecognized tax benefits on uncertain tax positions are recorded on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is more than 50 percent likely to be realized is recognized. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense (benefit).

Tax Receivable Agreement— When Class A limited partnership units of Summit Holdings (“LP Units”) are exchanged for shares of Class A common stock of Summit Inc. or Summit Inc. purchases LP Units for cash, this results in increases in Summit Inc.’s share of the tax basis of the tangible and intangible assets, which increases the tax depreciation and amortization deductions that otherwise would not have been available to Summit Inc.  These increases in tax basis and tax depreciation and amortization deductions are expected to reduce the amount of cash taxes that we would otherwise be required to pay in the future. Prior to our IPO, we entered into a TRA with the pre-IPO owners that requires us to pay the pre-IPO owners or their permitted assignees 85% of the amount of cash savings, if any, in U.S. federal, state, and local income tax that we actually realize as a result of these exchanges.  These benefits include (1) increases in the tax basis of tangible and intangible assets of Summit Holdings and certain other tax benefits related to entering into the TRA, (2) tax benefits attributable to payments under the TRA, or (3) under certain circumstances such as an early termination of the TRA, we are deemed to realize, as a result of the increases in tax basis in connection with exchanges by the pre-IPO owners described above and certain other tax benefits attributable to payments under the TRA.

As noted above, we periodically evaluate the realizability of the deferred tax assets resulting from the exchange of LP Units for Class A common stock. If the deferred tax assets are determined to be realizable, we then assess whether payment of amounts under the TRA have become probable. If so, we record a TRA liability equal to 85% of such deferred tax assets. In subsequent periods, we assess the realizability of all of our deferred tax assets subject to the TRA. Should we determine a deferred tax asset with a valuation allowance is realizable in a subsequent period, the related valuation allowance will be released and consideration of a corresponding TRA liability will be assessed. The realizability of deferred tax assets, including those subject to the TRA, is dependent upon the generation of future taxable income during the periods in which those deferred tax assets become deductible and consideration of prudent and feasible tax-planning strategies.

The measurement of the TRA liability is accounted for as a contingent liability. Therefore, once we determine that a payment to a pre-IPO owner has become probable and can be estimated, the estimate of payment will be accrued.

Earnings per Share—The Company computes basic earnings per share attributable to stockholders by dividing income attributable to Summit Inc. by the weighted-average shares of Class A common stock outstanding. Diluted earnings per share reflects the potential dilution beyond shares for basic earnings per share that could occur if securities or other contracts to issue common stock were exercised, converted into common stock, or resulted in the issuance of common stock that would have shared in the Company’s earnings. Since the Class B common stock has no economic value, those shares are not included in the weighted-average common share amount for basic or diluted earnings per share. In addition, as the shares of Class A common stock are issued by Summit Inc., the earnings and equity interests of noncontrolling interests are not included in basic earnings per share.

Prior Year Reclassifications — We have reclassified transaction costs of $2.2 million and $4.2 million for the years ended 2019 and 2018, respectively, from a separate line item included in operating income to general and administrative expenses to conform to the current year presentation. In addition, we reclassified $10.7 million and $12.6 million for the years ended 2019 and 2018, respectively, of gain on sale of property, plant and equipment from general and administrative expenses to its own line item included within operating income, also to conform to the current year presentation.

New Accounting Standards — In February 2016, the Financial Accounting Standards Board FASB ("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,

77

Table of Contents

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 $36.8 million of operating lease right-of-use assets and $36.8 million operating lease liabilities. The standard had no material impact on our statements of operations and 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.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which reduces the accounting complexity of implementing a cloud computing service arrangement. The ASU aligns the capitalization of implementation costs among hosting arrangements and costs incurred to develop internal-use software. We adopted this ASU in the first quarter of 2020 and the adoption of this ASU did not have a material impact on the consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework Changes to The Disclosure Requirements for Defined Benefits Plans, which modifies the disclosure requirements of employer-sponsored defined benefit and other postretirement benefits plans. The ASU is effective for fiscal years beginning after December 15, 2020 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) Acquisitions

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. The purchase price allocation for the 2020 acquisitions has not yet been finalized due to the recent timing of the acquisitions. The following table summarizes the Company’s acquisitions by region and year:

	2020	2019	2018
West	2	2	5
East (1)	1	—	7

______________________

(1)    In addition, the Company acquired certain assets of a small ready-mix concrete operation in the second quarter of 2018.

The table below summarizes aggregated information regarding the fair values of the assets acquired and liabilities assumed as of the respective acquisition dates.

78

Table of Contents

	2020		2019
Financial assets	$	8,696	$	—
Inventories	2,856		52
Property, plant and equipment	130,042		3,542
Other assets	2,790		—
Financial liabilities	(4,469)		(36)
Other long-term liabilities	(16,069)		—
Net assets acquired	123,846		3,558
Goodwill	—		1,834
Purchase price	123,846		5,392
Other	(369)		—
Net cash paid for acquisitions	$	123,477	$	5,392

Acquisition-Related Liabilities—A number of acquisition-related liabilities have been recorded subject to terms in the relevant purchase agreements, including deferred consideration and noncompete payments. Noncompete payments have been accrued where certain former owners of newly acquired companies have entered into standard noncompete arrangements. Subject to terms and conditions stated in these noncompete agreements, payments are generally made over a five-year period. Deferred consideration is purchase price consideration paid in the future as agreed to in the purchase agreement and is not contingent on future events. Deferred consideration is generally scheduled to be paid in years ranging from 5 to 20 years in annual installments. The remaining payments due under these noncompete and deferred consideration agreements are as follows: 

2021	$	9,705
2022	3,411
2023	2,657
2024	2,620
2025	2,567
Thereafter	4,454
Total scheduled payments	25,414
Present value adjustments	(4,766)
Total noncompete obligations and deferred consideration	$	20,648

Accretion on the deferred consideration and noncompete obligations is recorded in interest expense.

(3) Goodwill

As of January 2, 2021, the Company had 11 reporting units with goodwill for which the annual goodwill impairment test was completed. We perform the annual impairment test on the first day of the fourth quarter each year. We initially perform a qualitative analysis. As a result of this analysis, it was determined that it is more likely than not that the fair value of seven reporting units were greater than its carrying value. For the remaining reporting units we perform a two-step quantitative analysis. Step 1 of that analysis compares the estimated the fair value of the reporting units using an income approach (i.e., a discounted cash flow technique) and a market approach to the carrying value of the reporting unit. If the estimated fair value exceeds its carrying value, the goodwill of the reporting unit is not considered impaired. If the carrying value of the reporting unit exceeds its fair value, we proceed to the second step to measure the amount of potential impairment loss. Based on this analysis, it was determined that the reporting units’ fair values were greater than their carrying values and no impairment charges were recognized in 2020. The accumulated impairment charges recognized in periods prior to 2018 totaled $68.2 million.

These estimates of a reporting unit’s fair value involve significant management estimates and assumptions, including but not limited to sales prices of similar assets, assumptions related to future profitability, cash flows, and discount rates. These estimates are based upon historical trends, management’s knowledge and experience and overall economic factors, including projections of future earnings potential. Developing discounted future cash flow estimates in applying the income approach required management to evaluate its intermediate to longer-term strategies, including, but not limited to, estimates about revenue growth, operating margins, capital requirements, inflation and working capital management. The development of

79

Table of Contents

appropriate rates to discount the estimated future cash flows required the selection of risk premiums, which can materially affect the present value of estimated future cash flows.

The following table presents goodwill by reportable segments and in total:

	West		East		Cement		Total
Balance—December 29, 2018	$	580,567	$	406,805	$	204,656	$	1,192,028
Acquisitions	1,657		3,621		—		5,278
Foreign currency translation adjustments	2,393		—		—		2,393
Balance—December 28, 2019	$	584,617	$	410,426	$	204,656	$	1,199,699
Acquisitions (1)	19		—		—		19
Foreign currency translation adjustments	1,573		—		—		1,573
Balance—January 2, 2021	$	586,209	$	410,426	$	204,656	$	1,201,291

______________________

(1)Reflects goodwill from 2020 acquisitions and working capital adjustments from prior year acquisitions.

(4) 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, and is recognized based on the proportion of costs incurred to date relative to the total estimated costs at completion. The majority of our construction service contracts, and therefore revenue, are opened and completed within one year, with the most activity during the spring, summer and fall.

Revenue by product for the years ended January 2, 2021, December 28, 2019 and December 29, 2018 consisted of the following:

	2020		2019		2018
Revenue by product*:
Aggregates	$	498,007	$	469,670	$	373,824
Cement	257,629		266,235		258,876
Ready-mix concrete	668,060		607,622		584,114
Asphalt	349,350		330,750		301,247
Paving and related services	381,430		360,234		379,540
Other	177,975		187,629		203,401
Total revenue	$	2,332,451	$	2,222,140	$	2,101,002

______________________

 *       Revenue from the liquid asphalt terminals is included in asphalt revenue.

The following table outlines the significant changes in contract assets and contract liability balances from December 28, 2019 to January 2, 2021. Also included in the table is the net change in the 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 28, 2019	$	13,088	$	13,864
Changes in revenue billed, contract price or cost estimates	(4,535)		2,616
Other	113		19
Balance—January 2, 2021	$	8,666	$	16,499

Accounts receivable, net consisted of the following as of January 2, 2021 and December 28, 2019:

80

Table of Contents

	2020		2019
Trade accounts receivable	$	191,871	$	191,672
Construction contract receivables	47,179		47,966
Retention receivables	18,824		17,808
Receivables from related parties	1,339		1,596
Accounts receivable	259,213		259,042
Less: Allowance for doubtful accounts	(4,517)		(5,786)
Accounts receivable, net	$	254,696	$	253,256

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 one year.

(5) Inventories

Inventories consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Aggregate stockpiles	$	137,938	$	140,461
Finished goods	32,993		33,023
Work in process	9,281		7,664
Raw materials	20,096		23,639
Total	$	200,308	$	204,787

(6) Property, Plant and Equipment, net and Intangibles, net

Property, plant and equipment, net consisted of the following as of January 2, 2021 and December 28, 2019: 

	2020		2019
Mineral bearing land and leased interests	$	468,966	$	333,024
Land (non-mineral bearing)	197,432		182,065
Buildings and improvements	181,198		178,088
Plants, machinery and equipment	1,397,410		1,318,512
Mobile equipment and barges	543,133		501,809
Truck and auto fleet	56,163		54,838
Landfill airspace and improvements	52,202		49,766
Office equipment	45,942		43,155
Construction in progress	40,648		42,007
Property, plant and equipment	2,983,094		2,703,264
Less accumulated depreciation, depletion and amortization	(1,132,925)		(955,815)
Property, plant and equipment, net	$	1,850,169	$	1,747,449

Depreciation on property, plant and equipment, including assets subject to capital leases, is generally computed on a straight-line basis. Depletion of mineral reserves and leased mineral interests are computed based on the portion of the reserves used during the period compared to the gross estimated value of proven and probable reserves, which is updated periodically as circumstances dictate. Leasehold improvements are amortized on a straight-line basis over the lesser of the asset’s useful life or the remaining lease term. The estimated useful lives are generally as follows:

81

Table of Contents

Buildings and improvements	10 - 30	years
Plant, machinery and equipment	7 - 20	years
Office equipment	3 - 7	years
Truck and auto fleet	5 - 8	years
Mobile equipment and barges	6 - 8	years
Landfill airspace and improvements	10 - 30	years
Other	4 - 20	years

Depreciation, depletion and amortization expense of property, plant and equipment was $195.3 million, $196.8 million and $199.6 million in the years ended January 2, 2021, December 28, 2019 and December 29, 2018, respectively.

Property, plant and equipment at January 2, 2021 and December 28, 2019 included $92.7 million and $82.7 million, respectively, of finance leases for certain equipment and a building with accumulated amortization of $32.8 million and $24.9 million, respectively. The equipment leases generally have terms of less than five years and the building lease had an original term of 30 years. Approximately $24.6 million and $16.0 million of the future obligations associated with the finance leases are included in accrued expenses as of January 2, 2021 and December 28, 2019, respectively, and the present value of the remaining finance lease payments, $31.7 million and $40.4 million, respectively, is included in other noncurrent liabilities on the consolidated balance sheets. Future minimum rental commitments under long-term capital leases are $26.7 million, $18.6 million, $7.1 million, $3.2 million, and $2.6 million for the years ended 2021, 2022, 2023, 2024 and 2025, respectively.

Assets are assessed for impairment charges when identified for disposition. The net gain from asset dispositions recognized in general and administrative expenses in fiscal years 2020, 2019 and 2018 was $7.6 million, $10.7 million and $12.6 million, respectively. No material impairment charges have been recognized on assets held for use in fiscal 2020, 2019 or 2018.

Intangible Assets—The Company’s intangible assets subject to amortization are primarily composed of operating permits, mineral lease agreements and reserve rights. Operating permits relate to permitting and zoning rights acquired outside of a business combination. 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 or permits, or computed based on the portion of the reserves used during the period compared to the gross estimated value of proven and probable reserves. The following table shows intangible assets by type and in total: 

	January 2, 2021						December 28, 2019
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Operating permits	$	33,671	$	(1,207)	$	32,464	$	6,609	$	(290)	$	6,319
Mineral leases	19,225		(7,571)		11,654		19,064		(6,408)		12,656
Reserve rights	6,234		(2,504)		3,730		6,234		(2,248)		3,986
Trade names	—		—		—		1,000		(958)		42
Other	586		(582)		4		957		(462)		495
Total intangible assets	$	59,716	$	(11,864)	$	47,852	$	33,864	$	(10,366)	$	23,498

Amortization expense in fiscal 2020, 2019 and 2018 was $2.7 million, $2.1 million and $1.5 million, respectively. The estimated amortization expense for intangible assets for each of the next five years and thereafter is as follows:

82

Table of Contents

2021	$	3,129
2022	3,136
2023	3,003
2024	2,908
2025	2,863
Thereafter	32,813
Total	$	47,852

(7) Accrued Expenses

Accrued expenses consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Interest	$	21,860	$	26,892
Payroll and benefits	46,026		29,356
Finance lease obligations	24,601		16,007
Insurance	18,355		14,968
Non-income taxes	15,669		7,666
Deferred asset purchase payments	9,749		3,525
Professional fees	828		902
Other (1)	23,482		20,689
Total	$	160,570	$	120,005

______________________

(1)Consists primarily of current portion of asset retirement obligations and miscellaneous accruals.

(8) Debt

Debt consisted of the following as of January 2, 2021 and December 28, 2019: 

	2020		2019
Term Loan, due 2024:
$616.3 million and $624.3 million, net of $0.9 million and $1.1 million discount at January 2, 2021 and December 28, 2019, respectively	$	615,425	$	623,140
6 1⁄8% Senior Notes, due 2023:
$650.0 million, net of $0.9 million discount at December 28, 2019	—		649,133
5 1⁄8% Senior Notes, due 2025	300,000		300,000
6 1⁄2% Senior Notes, due 2027	300,000		300,000
5 1⁄4% Senior Notes, due 2029	700,000		—
Total	1,915,425		1,872,273
Current portion of long-term debt	6,354		7,942
Long-term debt	$	1,909,071	$	1,864,331

The contractual payments of long-term debt, including current maturities, for the five years subsequent to January 2, 2021, are as follows:

83

Table of Contents

2021	$	6,354
2022	6,354
2023	6,354
2024	597,252
2025	300,000
Thereafter	1,000,000
Total	1,916,314
Less: Original issue net discount	(889)
Less: Capitalized loan costs	(16,724)
Total debt	$	1,898,701

Senior Notes—On August 11, 2020, Summit LLC and Summit Finance (together, the “Issuers”) issued $700.0 million in aggregate principal amount of 5.250% senior notes due January 15, 2029 (the “2029 Notes”). The 2029 Notes were issued at 100.0% of their par value with proceeds of $690.4 million, net of related fees and expenses. The 2029 Notes were issued under an indenture dated August 11, 2020 (the "2020 Indenture"). The 2020 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 2020 Indenture also contains customary events of default. Interest on the 2029 Notes is payable semi-annually on January 15 and July 15 of each year commencing on January 15, 2021.

In August 2020, using the proceeds from the 2029 Notes, all of the outstanding $650.0 million 6.125% senior notes due 2023 (the “2023 Notes”) were redeemed at a price equal to par and the indenture under which the 2023 Notes were issued was satisfied and discharged. As a result of the extinguishment, charges of $4.1 million were recognized in the quarter ended September 26, 2020, which included charges of $0.8 million for the write-off of original issue discount and $3.3 million for the write-off of deferred financing fees.

On March 15, 2019, the Issuers issued $300.0 million in aggregate principal amount of 6.500% senior notes due March 15, 2027 (the “2027 Notes”). The 2027 Notes were issued at 100.0% of their par value with proceeds of $296.3 million, net of related fees and expenses. The 2027 Notes were issued under an indenture dated March 25, 2019, the terms of which are generally consistent with the 2020 Indenture. 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 $250.0 million 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 $14.6 million were recognized in the quarter ended March 30, 2019, which included charges of $11.7 million for the applicable redemption premium and $2.9 million for the write-off of deferred financing fees.

In 2017, the Issuers issued $300.0 million of 5.125% senior notes due June 1, 2025 (the “2025 Notes”). The 2025 Notes were issued at 100.0% of their par value with proceeds of $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 2020 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 $650.0 million of 6.125% senior notes due July 2023 (the “2023 Notes” and collectively with the 2022 Notes and the 2027 Notes, the “Senior Notes”). Of the aggregate $650.0 million of 2023 Notes, $350.0 million were issued at par and $300.0 million were issued at 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 2020 Indenture. The 2023 Notes were paid in full in August 2020 as noted above.

As of January 2, 2021 and December 28, 2019, 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 $650.0 million and revolving credit commitments in an aggregate amount of $345.0 million (the “Senior Secured Credit Facilities”). Under the Senior Secured Credit Facilities, required principal repayments of 0.25% of the refinanced

84

Table of Contents

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 $345.0 million and extended the maturity date of the Credit Agreement with respect to the revolving credit commitments to February 25, 2024.

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 0.50%, (b) the prime rate of Bank of America, N.A. and (c) LIBOR plus 1.00%, plus an applicable margin of 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 3.00% for LIBOR rate loans.

There were no outstanding borrowings under the revolving credit facility as of January 2, 2021 or December 28, 2019. As of January 2, 2021, we had remaining borrowing capacity of $329.1 million under the revolving credit facility, which is net of $15.9 million of outstanding letters of credit. The outstanding letters of credit are renewed annually and support required bonding on construction projects 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 4.75:1.0 as of each quarter-end. As of January 2, 2021 and December 28, 2019, Summit LLC was in compliance with all financial covenants under the Credit Agreement.

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.

The following table presents the activity for the deferred financing fees for the years ended January 2, 2021 and December 28, 2019:

	Deferred financing fees
Balance—December 29, 2018	$	15,475
Loan origination fees	6,312
Amortization	(3,501)
Write off of deferred financing fees	(2,850)
Balance—December 28, 2019	$	15,436
Loan origination fees	9,605
Amortization	(3,336)
Write off of deferred financing fees	(3,338)
Balance—January 2, 2021	$	18,367

Other—On January 15, 2015, the Company’s wholly-owned subsidiary in British Columbia, Canada entered into an agreement with HSBC for a (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 0.20%, (ii) $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 0.90% and (iii) $0.4 million CAD revolving credit commitment to provide guarantees on behalf of that subsidiary. There were no amounts outstanding under this agreement as of January 2, 2021 or December 28, 2019.

(9) Income Taxes

Summit Inc.’s tax provision includes its proportional share of Summit Holdings’ tax attributes. Summit Holdings’ subsidiaries are primarily limited liability companies, but do include certain entities organized as C corporations and a Canadian subsidiary. The tax attributes related to the limited liability companies are passed on to Summit Holdings and then to its partners, including Summit Inc. The tax attributes associated with the C corporation and Canadian subsidiaries are fully reflected in the Company’s consolidated financial statements. For the years ended January 2, 2021, December 28, 2019 and December 29, 2018, income taxes consisted of the following:

85

Table of Contents

	2020		2019		2018
Provision for income taxes:
Current	$	3,827	$	69	$	463
Deferred	(16,012)		17,032		59,284
Income tax expense (benefit)	$	(12,185)	$	17,101	$	59,747

The effective tax rate on pre-tax income differs from the U.S. statutory rate of 21% for 2020, 2019 and 2018, respectively, due to the following:

	2020		2019		2018
Income tax expense (benefit) at federal statutory tax rate	$	27,100	$	16,427	$	20,177
Less: Income tax benefit at federal statutory tax rate for LLC entities	(593)		(658)		(561)
State and local income taxes	5,067		3,792		4,894
Permanent differences	(3,345)		(6,272)		(5,537)
Effective tax rate change	4,257		(2,006)		4,034
Unrecognized tax benefits	(41,548)		18,885		22,663
Tax receivable agreement (benefit) expense	(6)		2,436		(8,282)
Change in valuation allowance	—		(17,691)		17,592
Other	(3,117)		2,188		4,767
Income tax expense (benefit)	$	(12,185)	$	17,101	$	59,747

The following table summarizes the components of the net deferred income tax asset (liability) as January 2, 2021 and December 28, 2019: 

	2020		2019
Deferred tax assets (liabilities):
Net intangible assets	$	199,497	$	240,790
Accelerated depreciation	(209,644)		(201,126)
Net operating loss	227,560		164,335
Investment in limited partnership	(33,139)		(31,987)
Mining reclamation reserve	3,306		2,018
Working capital (e.g., accrued compensation, prepaid assets)	45,972		37,287
Interest expense limitation carryforward	—		2,691
Less valuation allowance	(1,675)		(1,675)
Deferred tax assets	231,877		212,333
Less foreign deferred tax liability (included in other noncurrent liabilities)	(18,393)		(8,267)
Net deferred tax asset	$	213,484	$	204,066

As of January 2, 2021, $378.5 million of our deferred tax assets subject to our TRA are included in the net intangible assets and the net operating loss line items above.

Our income tax expense (benefit) was $(12.2) million, $17.1 million and $59.7 million in the fiscal years ended 2020, 2019 and 2018, respectively. Our effective income tax rate in 2020 and 2019 was impacted by the IRS interpretative guidance of TCJA, a change in state tax rates and a change in the amount of our TRA liability.

The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible, as well as consideration of tax-planning strategies we may seek to utilize net operating loss carryforwards that begin to expire in 2030. The Company updates the analysis, and adjusted the valuation allowance for interest expense carryforwards limited under the TCJA based on updated forecast models each year. 

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“TCJA”) was enacted. Among other things, the TCJA, beginning January 1, 2018, reduced the federal statutory rate from 35% to 21% and extended bonus depreciation provisions. In

86

Table of Contents

addition, the TCJA prescribes the application of net operating loss carryforwards generated in 2018 and beyond will be limited, 100% asset expensing will be allowed through 2022 and begin to phase out in 2023, and the amount of interest expense we are able to deduct may also be limited in future years.  We completed our analysis of the TCJA in 2018 consistent with the guidance of Staff Accounting Bulletin 118 and any adjustments during the measurement period were included in net earnings from continuing operations as an adjustment to income tax expense. As such, in the fourth quarter of 2018, we recorded additional tax expense of $17.6 million resulting from the IRS interpretative guidance of TCJA.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Unrecognized Tax Benefits
Balance—December 29, 2018	$	22,663
Additions based on tax position in 2018	18,885
Balance—December 28, 2019	$	41,548
Reductions based on new regulations	(41,548)
Balance—January 2, 2021	$	—

At January 2, 2021, December 28, 2019 and December 29, 2018 there was $0.0 million, $41.5 million and $22.7 million, respectively, of unrecognized tax benefits that if recognized would affect the annual effective tax rate. We did not recognize interest or penalties related to this amount as it is offset by other attributes.

Our net operating loss carryforward deferred tax assets begin to expire in 2030 and are expected to reverse before expiration. Therefore, we have not given consideration to any potential tax planning strategies as a source of future taxable income to monetize those net operating loss carryforwards. The Company will continue to monitor facts and circumstances, including our analysis of other sources of taxable income, in the reassessment of the likelihood that the tax benefit of our deferred tax assets will be realized.

As of January 2, 2021, Summit Inc. had federal net operating loss carryforwards of $917 million, a portion of which expire between 2030 and 2038. As of January 2, 2021, $497 million of our federal net operating losses were under the terms of our TRA. As of January 2, 2021 and December 28, 2019, Summit Inc. had a valuation allowance on net deferred tax assets of $1.7 million and $1.7 million, respectively, where realization of our net operating losses are not more likely than not.

	2020		2019
Valuation Allowance:
Beginning balance	$	(1,675)	$	(19,366)
Current year decreases (increases) from operations	—		17,691
Ending balance	$	(1,675)	$	(1,675)

Tax Receivable Agreement— During 2015, the Company entered into a TRA with the holders of LP Units and certain other pre-initial public offering owners (“Investor Entities”) that provides for the payment by Summit Inc. to exchanging holders of LP Units of 85% of the benefits, if any, that Summit Inc. actually realizes (or, under certain circumstances such as an early termination of the TRA, is deemed to realize) as a result of increases in the tax basis of tangible and intangible assets of Summit Holdings and certain other tax benefits related to entering into the TRA, including tax benefits attributable to payments under the TRA.

When LP Units are exchanged for an equal number of newly-issued shares of Summit Inc.’s Class A common stock, these exchanges result in new deferred tax assets. Using tax rates in effect as of each year end, $2.4 million and $1.1 million of deferred tax assets were created during the years ended January 2, 2021 and December 28, 2019, respectively, when LP Units were exchanged for shares of Class A common stock.

Each year, we update our estimate as to when TRA payments will be made. As noted above, when payments are made under the TRA, a portion of the payment made will be characterized as imputed interest under IRS regulations. The TCJA enacted in late 2017 contained provisions whereby interest expense deductions may be limited, and the IRS issued proposed regulations in late 2018 around the deductibility of interest expense. Under our forecast prepared at the end of 2018, we expected the amount of imputed interest based on future TRA payments would result in interest expense deductions being limited, and therefore we would not benefit from that deduction. However, based on the updated forecast model at the end of 2019, which updated our forecast of the timing of TRA payments, we believe that our interest expense deductions will not be

87

Table of Contents

limited under the proposed regulations. We also updated our estimate of the state income tax rate that will be in effect at the date the TRA payments are made. As a result of our updated state income tax rate, and the imputed interest limitation noted above, we have decreased our TRA liability $7.6 million and increased by $16.2 million as of January 2, 2021 and December 28, 2019, respectively.

Our TRA liability as of January 2, 2021 and December 28, 2019 was $321.7 million and $327.0 million, respectively.

Tax Distributions – The holders of Summit Holdings’ LP Units, including Summit Inc., incur U.S. federal, state and local income taxes on their share of any taxable income of Summit Holdings. The limited partnership agreement of

Summit Holdings provides for pro rata cash distributions (“tax distributions”) to the holders of the LP Units in an amount generally calculated to provide each holder of LP Units with sufficient cash to cover its tax liability in respect of the LP Units. In general, these tax distributions are computed based on Summit Holdings’ estimated taxable income allocated to Summit Inc. multiplied by an assumed tax rate equal to the highest effective marginal combined U.S. federal, state and local income tax rate applicable to a corporate resident in New York, New York.

For the years ended January 2, 2021 and December 28, 2019, Summit Holdings did not pay any tax distributions and paid tax distributions totaling $0.1 million, respectively, to holders of its LP Units, other than Summit Inc.

C Corporation Subsidiaries — The effective income tax rate for the C corporations differ from the statutory federal rate primarily due to (1) tax depletion expense (benefit) in excess of the expense recorded under U.S. GAAP, (2) state income taxes and the effect of graduated tax rates, (3) various other items such as limitations on meals and entertainment and other costs and (4) unrecognized tax benefits. The effective income tax rate for the Canadian subsidiary is not significantly different from its historical effective tax rate.

No material interest or penalties were recognized in income tax expense during the years ended January 2, 2021, December 28, 2019 or December 29, 2018. Tax years from 2014 to 2018 remain open and subject to audit by federal, Canadian, and state tax authorities.

(10) Earnings Per Share

Basic earnings per share is computed by dividing net earnings by the weighted average common shares outstanding and diluted net earnings is computed by dividing net earnings, adjusted for changes in the earnings allocated to Summit Inc. as a result of the assumed conversion of LP Units, by the weighted-average common shares outstanding assuming dilution.

The following table shows the calculation of basic income per share:  

	2020		2019		2018
Net income attributable to Summit Inc.	$	137,967	$	59,066	$	33,906
Weighted average shares of Class A stock outstanding
Add: Nonvested restricted stock awards of retirement eligible shares	212,443		—		—
Add: Weighted average shares of Class A stock outstanding	114,014,749		112,204,067		111,380,175
Weighted average basic shares outstanding	114,227,192		112,204,067		111,380,175
Basic earnings per share	$	1.21	$	0.53	$	0.30
Diluted net income attributable to Summit Inc.	$	137,967	$	59,066	$	33,906
Weighted average shares of Class A stock outstanding	114,014,749		112,204,067		111,380,175
Add: stock options	3,390		87,290		282,329
Add: warrants	—		4,206		25,049
Add: restricted stock units	520,871		342,620		459,280
Add: performance stock units	92,758		46,535		169,813
Weighted average dilutive shares outstanding	114,631,768		112,684,718		112,316,646
Diluted earnings per share	$	1.20	$	0.52	$	0.30

88

Table of Contents

Excluded from the above calculations were the shares noted below as they were antidilutive:

	2020	2019	2018
Antidilutive shares:
LP Units	3,060,248	3,372,706	3,512,669
Warrants	100,037	—	—

(11) Stockholders’ Equity

Our capital stock consists of 1.0 billion shares of $0.01 par value Class A common stock authorized, of which 114,390,595 shares were issued and outstanding as of January 2, 2021. We also have authorized 250 million shares of $0.01 par value Class B common stock, of which 99 shares were issued and outstanding as of January 2, 2021. The Class B common stock entitles holders thereof, who are also holders of LP Units, with a number of votes that is equal to the number of LP Units they hold. The Class B common stock does not participate in dividends and does not have any liquidation rights.

From time to time, limited partners of Summit Holdings exchange their LP Units for shares of Class A common stock of Summit Inc. The following table summarizes the changes in our ownership of Summit Holdings: 

	Summit Inc. Shares (Class A)	LP Units	Total	Summit Inc. Ownership Percentage
Balance — December 29, 2018	111,658,927	3,435,518	115,094,445	97.0	%
Exchanges during period	185,861	(185,861)	—
Stock option exercises	1,065,446	—	1,065,446
Other equity transactions	399,151	—	399,151
Balance — December 28, 2019	113,309,385	3,249,657	116,559,042	97.2	%
Exchanges during period	376,487	(376,487)	—
Stock option exercises	54,517	—	54,517
Other equity transactions	650,206	—	650,206
Balance — January 2, 2021	114,390,595	2,873,170	117,263,765	97.5	%

Accumulated other comprehensive income (loss) - 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		income (loss)
Balance — December 29, 2018	$	3,573	$	(2,147)	$	1,255	$	2,681
Postretirement liability adjustment, net of tax	(1,402)		—		—		(1,402)
Foreign currency translation adjustment, net of tax	—		3,424		—		3,424
Income on cash flow hedges, net of tax	—		—		(1,255)		(1,255)
Balance — December 28, 2019	$	2,171	$	1,277	$	—	$	3,448
Postretirement liability adjustment, net of tax	(1,638)		—		—		(1,638)
Foreign currency translation adjustment, net of tax	—		3,393		—		3,393
Balance — January 2, 2021	$	533	$	4,670	$	—	$	5,203

(12) Supplemental Cash Flow Information

Supplemental cash flow information for the years ended January 2, 2021, December 28, 2019 and December 29, 2018 was as follows:

89

Table of Contents

	2020		2019		2018
Cash payments:
Interest	$	99,551	$	104,614	$	103,250
Payments (refunds) for income taxes, net	1,754		(919)		3,340
Operating cash payments on operating leases	10,452		10,618		N/A
Operating cash payments on finance leases	3,132		3,051		N/A
Finance cash payments on finance leases	14,408		13,164		N/A
Non cash financing activities:
Right of use assets obtained in exchange for operating lease obligations	$	4,849	$	5,842	N/A
Right of use assets obtained in exchange for finance leases obligations	18,016		23,965		N/A
Exchange of LP Units to shares of Class A common stock	8,227		3,847		7,499

(13) Stock-Based Compensation

Prior to the IPO and related Reorganization, the capital structure of Summit Holdings consisted of six different classes of limited partnership units, each of which was subject to unique distribution rights. In connection with the IPO and the related Reorganization, the limited partnership agreement of Summit Holdings was amended and restated to, among other things, modify its capital structure by creating LP Units. Holders of the LP Units periodically exchange their LP Units for shares of Class A common Stock of Summit Inc.

In the first quarter of 2018, the Board of Directors vested the time-vesting units outstanding and we recognized the remaining $1.0 million of stock based compensation related to these LP units.

Omnibus Incentive Plan

In 2015, our Board of Directors and stockholders adopted the Summit Materials, Inc. 2015 Omnibus Incentive Plan (the "Plan"), which allows for grants of equity-based awards in the form of stock options, stock appreciation rights, restricted stock and restricted stock units, performance units, and other stock-based awards. The Plan authorizes the issuance of up to 13,500,000 shares of Class A common stock in the form of restricted stock units and stock options, of which 4.3 million shares were available for future grants as of January 2, 2021.

Restricted Stock

Restricted Stock with Service-Based Vesting—Under the Plan, the Compensation Committee of the Board of Directors (the “Compensation Committee”) has granted restricted stock to members of the Board of Directors, executive officers and other key employees. These awards contain service conditions associated with continued employment or service. The terms of the restricted stock provide voting and regular dividend rights to holders of the awards. Upon vesting, the restrictions on the restricted stock lapse and the shares are considered issued and outstanding for accounting purposes.

In each of 2020, 2019 and 2018, the Compensation Committee granted restricted stock to executives and key employees under the Plan as part of our annual equity award program, which vest over a two or three year period, subject to continued employment or service.  From time to time, the Compensation Committee grants restricted stock to newly hired or promoted employees or other employees who have achieved extraordinary personal performance objectives.

Further, in each of 2020, 2019 and 2018, the Compensation Committee granted 42,736, 65,144 and 38,232 shares, respectively, to non-employee members of the Board of Directors for their annual service as directors. These restricted stock grants vest over a one year period.

In measuring compensation expense associated with the grant of restricted stock, we use the fair value of the award, determined as the closing stock price for our Class A common stock on the date of grant. Compensation expense is recorded monthly over the vesting period of the award.

Restricted stock with Service- and Market-Condition-Based Vesting—In 2020, 2019 and 2018, the Compensation Committee granted restricted stock to certain members of our executive team as part of their annual compensation package. The restricted stock vests at the end of a three year performance period, based on our total stock return (“TSR”) ranking relative to companies in the S&P Building & Construction Select Industry Index, subject to continued employment.

90

Table of Contents

Compensation expense is recorded monthly over the vesting period of the awards. The following table summarizes information for the equity awards granted in 2020:

	Options			Restricted Stock Units			Performance Stock Units			Warrants
		Weighted			Weighted			Weighted			Weighted
		average grant-		Number of	average grant-		Number of	average grant-			average grant-
	Number of	date fair value		restricted	date fair value		performance	date fair value		Number of	date fair value
	options	per unit		stock units	per unit		stock units	per unit		warrants	per unit
Beginning balance—December 28, 2019	2,128,107	$	9.08	1,556,636	$	20.29	390,645	$	31.08	100,037	$	18.00
Granted	—	—		1,379,943	18.10		199,946	23.43		—	—
Forfeited/ Canceled	(35,117)	12.30		(154,283)	19.12		(112,416)	26.54		—	—
Exercised	(54,517)	10.10		—	—		—	—		—	—
Vested	—	—		(647,345)	21.28		(49,300)	32		—	—
Balance—January 2, 2021	2,038,473	$	9.16	2,134,951	$	18.64	428,875	$	28.64	100,037	$	18.00

The fair value of the time-vesting options granted was estimated as of the grant date using the Black-Scholes-Merton model, which requires the input of subjective assumptions, including the expected volatility and the expected term. The fair value of the performance stock units granted was estimated as of the grant date using Monte Carlo simulations, which requires the input of subjective assumptions, including the expected volatility and the expected term. No options to purchase common stock were granted in 2020, 2019 and 2018.

The risk-free rate is based on the yield at the date of grant of a U.S. Treasury security with a maturity period approximating the expected term. As Summit Holdings has not historically and does not plan to issue regular dividends, a dividend yield of zero was used. The volatility assumption is based on reported data of a peer group of publicly traded companies for which historical information was available adjusted for the Company’s capital structure. The expected term is based on expectations about future exercises and represents the period of time that the units granted are expected to be outstanding.

Compensation expense for time-vesting interests granted is based on the grant date fair value. The Company recognizes compensation costs on a straight-line basis over the service period, which is generally the vesting period of the award. Forfeitures are recognized as they occur. Share-based compensation expense, which is recognized in general and administrative expenses, totaled $28.9 million, $20.4 million and $25.4 million in the years ended January 2, 2021, December 28, 2019 and December 29, 2018, respectively. As of January 2, 2021, unrecognized compensation cost totaled $22.0 million. The weighted average remaining contractual term over which the unrecognized compensation cost is to be recognized is 1.7 years as of year-end 2020.

As of January 2, 2021, the intrinsic value of outstanding options, restricted stock units and performance stock units was $3.8 million, $42.9 million and $8.6 million, respectively, and the remaining contractual term was 3.3 years, 1.0 year and 1.3 years, respectively. The weighted average strike price of stock options outstanding as of January 2, 2021 was $18.75 per share. The intrinsic value of 2.0 million exercisable stock options as of January 2, 2021 was $3.8 million with a weighted average strike price of $18.75 and a weighted average remaining contractual period of 3.3 years.

(14) Employee Benefit Plans

Defined Contribution Plan—The Company sponsors employee 401(k) savings plans for its employees, including certain union employees. The plans provide for various required and discretionary Company matches of employees’ eligible compensation contributed to the plans. The expense for the defined contribution plans was $12.1 million, $11.7 million and $11.2 million for the years ended January 2, 2021, December 28, 2019 and December 29, 2018, respectively.

Defined Benefit and Other Postretirement Benefits Plans—The Company’s subsidiary, Continental Cement, sponsors two noncontributory defined benefit pension plans for hourly and salaried employees. The plans are closed to new participants and benefits are frozen. As a result of the collective bargaining unit negotiations in 2017, the hourly defined benefit pension

91

Table of Contents

plan was amended to stop future benefit accruals for the Davenport employees effective December 31, 2017. Pension benefits for eligible hourly employees are based on a monthly pension factor for each year of credited service. Pension benefits for eligible salaried employees are generally based on years of service and average eligible compensation.

Continental Cement also sponsors two unfunded healthcare and life insurance benefits plans for certain eligible retired employees. Effective January 1, 2014, the plan covering employees of the Hannibal, Missouri location was amended to eliminate all future retiree health and life coverage for current employees. During 2015, Continental Cement adopted one new unfunded healthcare plan to provide benefits prior to Medicare eligibility for certain hourly employees of the Davenport, Iowa location. As a result of the collective bargaining unit negotiations in 2017, hourly Davenport employees hired on or after January 1, 2018 are no longer eligible for retiree medical benefits.

The funded status of the pension and other postretirement benefit plans is recognized in the consolidated balance sheets as the difference between the fair value of plan assets and the benefit obligations. For defined benefit pension plans, the benefit obligation is the projected benefit obligation (“PBO”) and for the healthcare and life insurance benefits plans, the benefit obligation is the accumulated postretirement benefit obligation (“APBO”). The PBO represents the actuarial present value of benefits expected to be paid upon retirement based on estimated future compensation levels. However, since the plans’ participants are not subject to future compensation increases, the plans’ PBO equals the accumulated benefit obligation (“ABO”). The APBO represents the actuarial present value of postretirement benefits attributed to employee services already rendered. The fair value of plan assets represents the current market value of assets held by an irrevocable trust fund for the sole benefit of participants. The measurement of the benefit obligations is based on the Company’s estimates and actuarial valuations. These valuations reflect the terms of the plan and use participant-specific information, such as compensation, age and years of service, as well as certain assumptions that require significant judgment, including estimates of discount rates, expected return on plan assets, rate of compensation increases, interest-crediting rates and mortality rates.

The Company uses December 31 as the measurement date for its defined benefit pension and other postretirement benefit plans.

Obligations and Funded Status—The following information is as of January 2, 2021 and December 28, 2019 and for the years ended January 2, 2021, December 28, 2019 and December 29, 2018:

92

Table of Contents

	2020				2019
	Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.
Change in benefit obligations:
Beginning of period	$	26,181	$	9,090	$	24,203	$	9,203
Service cost	71		176		60		166
Interest cost	733		242		928		321
Actuarial (gain) loss	2,425		676		2,571		165
Benefits paid	(1,583)		(955)		(1,581)		(765)
End of period	$	27,827	$	9,229	$	26,181	$	9,090
Change in fair value of plan assets:
Beginning of period	$	18,242	$	—	$	17,449	$	—
Actual return on plan assets	1,916		—		2,055		—
Employer contributions	483		955		319		765
Benefits paid	(1,583)		(955)		(1,581)		(765)
End of period	$	19,058	$	—	$	18,242	$	—
Funded status of plans	$	(8,769)	$	(9,229)	$	(7,939)	$	(9,090)
Current liabilities	$	—	$	(636)	$	—	$	(653)
Noncurrent liabilities	(8,769)		(8,593)		(7,939)		(8,437)
Liability recognized	$	(8,769)	$	(9,229)	$	(7,939)	$	(9,090)
Amounts recognized in accumulated other comprehensive income:
Net actuarial (gain) loss	$	10,689	$	2,707	$	9,286	$	2,121
Prior service cost	—		(1,690)		—		(1,931)
Total amount recognized	$	10,689	$	1,017	$	9,286	$	190

The amount recognized in accumulated other comprehensive income (“AOCI”) is the actuarial loss (credit) and prior service cost, which has not yet been recognized in periodic benefit cost.

	2020				2019				2018
	Pension		Healthcare		Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.		benefits		& Life Ins.
Amounts recognized in other comprehensive (income) loss:
Net actuarial loss (gain)	$	1,728	$	675	$	1,760	$	165	$	(1,300)	$	(172)
Amortization of prior year service cost	—		241		—		241		—		241
Amortization of gain	(326)		(89)		(202)		(39)		(312)		(118)
Total amount recognized	$	1,402	$	827	$	1,558	$	367	$	(1,612)	$	(49)

Components of net periodic benefit cost:
Service cost	$	71	$	176	$	60	$	166	$	67	$	170
Interest cost	733		242		928		321		898		317
Amortization of gain	326		89		202		39		312		118
Expected return on plan assets	(1,221)		—		(1,244)		—		(1,284)		—
Amortization of prior service credit	—		(241)		—		(241)		—		(241)
Net periodic (expense) benefit cost	$	(91)	$	266	$	(54)	$	285	$	(7)	$	364

93

Table of Contents

Assumptions—Weighted-average assumptions used to determine the benefit obligations as of year-end 2020 and 2019 are:

	2020		2019
		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	1.84% - 2.14%	1.80% - 1.82%	2.78% - 2.96%	2.73% - 2.79%
Expected long-term rate of return on plan assets	7.00%	N/A	7.00%	N/A

Weighted-average assumptions used to determine net periodic benefit cost for years ended January 2, 2021, December 28, 2019 and December 29, 2018:

	2020		2019		2018
		Healthcare		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	2.78% - 2.96%	2.73% - 2.79%	3.90% - 4.02%	3.87% - 3.91%	3.23% - 3.37%	3.20% - 3.25%
Expected long-term rate of return on plan assets	7.00%	N/A	7.00%	N/A	7.00%	N/A

The expected long-term return on plan assets is based upon the Plans’ consideration of historical and forward-looking returns and the Company’s estimation of what a portfolio, with the target allocation described below, will earn over a long-term horizon. The discount rate is derived using the FTSE Pension Discount Curve.

Assumed health care cost trend rates were 8.0% as of year-end 2020 and 2019, grading to an ultimate trend rate of 4.5% in 2034 and 2033. Assumed health care cost trend rates have a significant effect on the amounts reported for the Company’s healthcare and life insurance benefits plans.

Plan Assets—The defined benefit pension plans’ (the “Plans”) investment strategy is to minimize investment risk while generating acceptable returns. The Plans currently invest a relatively high proportion of the plan assets in fixed income securities, while the remainder is invested in equity securities, cash reserves and precious metals. The equity securities are diversified into funds with growth and value investment strategies. The target allocation for plan assets is as follows: equity securities—30%; fixed income securities—63%; cash reserves—5%; and precious metals—2%. The Plans’ current investment allocations are within the tolerance of the target allocation. The Company had no Level 3 investments as of or for the years ended January 2, 2021 and December 28, 2019.

At year-end 2020 and 2019, the Plans’ assets were invested predominantly in fixed-income securities and publicly traded equities, but may invest in other asset classes in the future subject to the parameters of the investment policy. The Plans’ investments in fixed-income assets include U.S. Treasury and U.S. agency securities and corporate bonds. The Plans’ investments in equity assets include U.S. and international securities and equity funds. The Company estimates the fair value of the Plans’ assets using various valuation techniques and, to the extent available, quoted market prices in active markets or observable market inputs. The descriptions and fair value methodologies for the Plans’ assets are as follows:

Fixed Income Securities—Corporate and government bonds are classified as Level 2 assets, as they are either valued at quoted market prices from observable pricing sources at the reporting date or valued based upon comparable securities with similar yields and credit ratings.

Equity Securities—Equity securities are valued at the closing market price reported on a U.S. exchange where the security is actively traded and are therefore classified as Level 1 assets.

Cash—The carrying amounts of cash approximate fair value due to the short-term maturity.

Precious Metals—Precious metals are valued at the closing market price reported on a U.S. exchange where the security is actively traded and are therefore classified as Level 1 assets.

The fair value of the Plans’ assets by asset class and fair value hierarchy level as of January 2, 2021 and December 28, 2019 are as follows:

94

Table of Contents

	2020
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	3,294	$	3,294	$	—
Intermediate—corporate	3,218		—		3,218
Short-term—government	705		705		—
Short-term—corporate	448		—		448
International	1,086		—		1,086
Equity securities:
U.S. Large cap value	1,516		1,516		—
U.S. Large cap growth	1,483		1,483		—
U.S. Mid cap value	631		631		—
U.S. Mid cap growth	619		619		—
U.S. Small cap value	663		663		—
U.S. Small cap growth	650		650		—
International	1,227		407		820
Emerging Markets	409		409		—
Commodities Broad Basket	1,002		182		820
Cash	2,107		2,107		—
Total	$	19,058	$	12,666	$	6,392

	2019
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	2,482	$	2,482	$	—
Intermediate—corporate	1,066		—		1,066
Short-term—government	1,387		1,387		—
Short-term—corporate	3,173		—		3,173
International	1,387		—		1,387
Equity securities:
U.S. Large cap value	1,225		1,225		—
U.S. Large cap growth	1,167		1,167		—
U.S. Mid cap value	581		581		—
U.S. Mid cap growth	578		578		—
U.S. Small cap value	583		583		—
U.S. Small cap growth	593		593		—
Managed Futures	340		—		340
International	1,174		386		788
Emerging Markets	394		394		—
Commodities Broad Basket	1,118		362		756
Cash	994		994		—
Total	$	18,242	$	10,732	$	7,510

Cash Flows—The Company expects to contribute approximately $1.2 million and $0.6 million in 2021 to its pension plans and to its healthcare and life insurance benefits plans, respectively.

95

Table of Contents

The estimated benefit payments for each of the next five years and the five-year period thereafter are as follows:

	Pension		Healthcare and Life
	benefits		Insurance Benefits
2021	$	1,692	$	636
2022	1,693		630
2023	1,696		617
2024	1,655		619
2025	1,613		627
2026 - 2030	7,597		3,139

Multiemployer Pension Plans— In 2018, the Company acquired Buildex, LLC and assumed its obligation to contribute to a number of multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover its union-represented employees. The risks of participating in multiemployer pension plans are different from single-employer plans. Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer ceases contributing to the plan, the unfunded obligations of the plan are the responsibility of the remaining participating employers.

The Company's participation in these plans for the annual period ended December 31, 2020, is outlined in the table below. The ''EIN/Pension Plan Number" column provides the Employer Identification Number (EIN) and the three-digit plan number, if applicable. Unless otherwise noted, the most recent Pension Protection Act (PPA) zone status available in 2020 and 2019 is for the plan 's year end at December 31, 2020, and December 31, 2019, respectively. The zone status is based on information the Company received from the plan and is certified by the plan's actuary. Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are less than 80% funded and plans in the green zone are at least 80% funded. The "FIP/RP Status Pending/Implemented" column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. The "Surcharge Imposed" column indicates whether a surcharge has been imposed on contributions to the plan. The last column lists the expiration date(s) of the collective-bargaining agreement(s) to which the plans are subject. There have been no significant changes that affect the comparability of 2020 and 2019 contributions.

										Expiration Date of
		Pension Protection Act		FIP/RP Status	Contributions of Company					Collective-
Pension	EIN/ Pension	Zone Status		Pending/	($ in thousands)				Surcharge	Bargaining
Trust Fund	Plan Number	2020	2019	Implemented	2020		2019		Imposed	Agreement
Construction Industry Laborers Pension Fund	43-6060737/001	Green - as of December 31, 2019	Green - as of December 31, 2018	None	$	100	$	112	No	3/31/2021
Operating Engineers Local 101 Pension Plan	43-6059213/001	Green - as of December 31, 2019	Green - as of December 31, 2018	None	20		23		No	3/31/2021
Total Contributions					$	120	$	135

The Company was not listed as providing more than 5% of the total contributions for the Operating Engineers Local 101 Pension Plan or the Construction Industry Laborers Pension Fund for the plan years 2020 and 2019 per the plans' Forms 5500. As of the date of the filing of this annual report on Form 10-K, Forms 5500 were not available for the plan year ending December 31, 2020.

(15) Accrued Mining and Landfill Reclamation

The Company has asset retirement obligations arising from regulatory or contractual requirements to perform certain reclamation activities at the time that certain quarries and landfills are closed, which are primarily included in other noncurrent liabilities on the consolidated balance sheets. The current portion of the liabilities, $10.0 million and $7.9 million as of January 2, 2021 and December 28, 2019, respectively, is included in accrued expenses on the consolidated balance sheets. The total undiscounted anticipated costs for site reclamation as of January 2, 2021 and December 28, 2019 were $112.8 million and $97.4 million, respectively. The liabilities were initially measured at fair value and are subsequently adjusted for accretion

96

Table of Contents

expense, payments and changes in the amount or timing of the estimated cash flows. The corresponding asset retirement costs are capitalized as part of the carrying amount of the related long-lived asset and depreciated over the asset’s remaining useful life. The following table presents the activity for the asset retirement obligations for the years ended January 2, 2021 and December 28, 2019: 

	2020		2019
Beginning balance	$	36,676	$	30,999
Acquired obligations	861		805
Change in cost estimate	6,523		4,468
Settlement of reclamation obligations	(3,095)		(1,812)
Accretion expense	2,638		2,216
Ending balance	$	43,603	$	36,676

(16) 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. Although we currently do not believe this matter will have a material adverse effect on our business, financial condition or results of operations, we are not able to predict the ultimate outcome or cost of the investigation at this time.

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.

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 one year.

(17) 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 Topic 842, we combine lease and nonlease components. While we also own mineral leases for mining operations, those leases are outside the scope of Topic 842. Assets acquired under finance leases are included in property, plant and equipment.

Many of our leases include options to purchase the leased equipment. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease expense were as follows:

97

Table of Contents

	2020			2019
Operating lease cost	$	10,134		$	10,451
Variable lease cost	316			423
Short-term lease cost	44,066			38,417
Financing lease cost:
Amortization of right-of-use assets	12,598			11,062
Interest on lease liabilities	3,068			3,171
Total lease cost	$	70,182		$	63,524
	2020			2019
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets	$	28,543		$	32,777
Current operating lease liabilities	$	8,188		$	8,427
Noncurrent operating lease liabilities	21,500			25,381
Total operating lease liabilities	$	29,688		$	33,808
Finance leases:
Property and equipment, gross	$	92,679		$	82,660
Less accumulated depreciation	(32,828)			(24,907)
Property and equipment, net	$	59,851		$	57,753
Current finance lease liabilities	$	24,601		$	16,007
Long-term finance lease liabilities	31,727			40,410
Total finance lease liabilities	$	56,328		$	56,417
	2020			2019
Weighted average remaining lease term (years):
Operating leases	8.7			8.6
Finance lease	2.4			2.6
Weighted average discount rate:
Operating leases	5.3		%	5.5		%
Finance lease	5.2		%	5.5		%
Maturities of lease liabilities were as follows:
	Operating Leases			Finance Leases
2021	$	9,491		$	26,742
2022	6,088			18,603
2023	4,663			7,053
2024	2,863			3,207
2025	1,781			2,573
Thereafter	12,961			2,831
Total lease payments	37,847			61,009
Less imputed interest	(8,159)			(4,681)
Present value of lease payments	$	29,688		$	56,328

98

Table of Contents

The Company has lease agreements associated with quarry facilities under which royalty payments are made. The payments are generally based on tons sold in a particular period; however, certain agreements have minimum annual payments. Royalty expense recorded in cost of revenue during the years ended January 2, 2021, December 28, 2019 and December 29, 2018 was $29.2 million, $24.3 million and $20.1 million, respectively. Minimum contractual commitments for the subsequent five years under royalty agreements are as follows:

	Royalty
	Agreements
2021	$	9,916
2022	9,880
2023	9,594
2024	9,295
2025	9,052

(18) Fair Value of Financial Instruments

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 fair value of contingent consideration as of January 2, 2021 and December 28, 2019 was: 

	2020		2019
Current portion of acquisition-related liabilities and Accrued expenses:
Contingent consideration	$	654	$	1,967
Acquisition-related liabilities and Other noncurrent liabilities:
Contingent consideration	$	1,209	$	1,302

The fair value accounting guidance establishes the following fair value hierarchy that prioritizes the inputs used to measure fair value:

Level  1 —  Quoted prices in active markets for identical assets and liabilities.

Level 2 —  Observable inputs, other than quoted prices, for similar assets or liabilities in active markets.

Level 3 —  Unobservable inputs, which includes the use of valuation models.

Financial Instruments—The Company’s financial instruments include debt and certain acquisition-related liabilities (deferred consideration and noncompete obligations). The carrying value and fair value of these financial instruments as of January 2, 2021 and December 28, 2019 were: 

	January 2, 2021				December 28, 2019
	Fair Value		Carrying Value		Fair Value		Carrying Value
Level 1
Long-term debt(1)	$	1,971,087	$	1,915,425	$	1,918,720	$	1,872,273
Level 3
Current portion of deferred consideration and noncompete obligations(2)	9,611		9,611		30,733		30,733
Long term portion of deferred consideration and noncompete obligations(3)	11,037		11,037		18,499		18,499

_____________________

(1)$6.4 million and $7.9 million were included in current portion of debt as of January 2, 2021 and December 28, 2019, respectively.

(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.

99

Table of Contents

Level 1 fair values are used to value investments in publicly-traded entities and assumed obligations for publicly-traded long-term debt.

Level 2 fair values are typically used to value acquired receivables, inventories, machinery and equipment, land, buildings, deferred income tax assets and liabilities, liabilities for asset retirement obligations, environmental remediation and compliance obligations. Additionally, Level 2 fair values are typically used to value assumed contracts at other-than-market rates.

Level 3 fair values are used to value acquired mineral reserves and leased mineral interests and other identifiable intangible assets. The fair values of mineral reserves and leased mineral interests are determined using an excess earnings approach, which requires management to estimate future cash flows. The estimate of future cash flows is based on available historical information and forecasts determined by management, but is inherently uncertain. Key assumptions in estimating future cash flows include sales price, volumes and expected profit margins, net of capital requirements. The present value of the projected net cash flows represents the fair value assigned to mineral reserves and mineral interests. The discount rate is a significant assumption used in the valuation model and is based on the required rate of return that a hypothetical market participant would assume if purchasing the acquired business.

The Level 3 fair values of contingent consideration were based on projected probability-weighted cash payments and a 9.5% 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. There were no material adjustments to the fair value of contingent consideration in 2020 or 2019. The fair values of the deferred consideration and noncompete obligations were determined based on 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.

(19) Segment Information

The Company has 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, the Company’s Chief Operating Decision Maker (“CODM”). The CODM primarily evaluates the performance of its 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.

The following tables display selected financial data for the Company’s reportable business segments as of and for the years ended January 2, 2021, December 28, 2019 and December 29, 2018: 

	2020		2019		2018
Revenue*:
West	$	1,262,196	$	1,122,338	$	1,117,066
East	799,633		809,098		703,147
Cement	270,622		290,704		280,789
Total revenue	$	2,332,451	$	2,222,140	$	2,101,002

______________________

*       Intercompany sales are immaterial and the presentation above only reflects sales to external customers.

100

Table of Contents

	2020		2019		2018
Income from operations before taxes	$	129,055	$	78,224	$	96,077
Interest expense	103,595		116,509		116,548
Depreciation, depletion and amortization	218,682		214,886		203,305
Accretion	2,638		2,216		1,605
Loss on debt financings	4,064		14,565		149
Tax receivable agreement (benefit) expense	(7,559)		16,237		(22,684)
Gain on sale of business	—		—		(12,108)
Transaction costs	2,747		2,222		4,238
Non-cash compensation	28,857		20,403		25,378
Other	2,957		(3,800)		(6,247)
Total Adjusted EBITDA	$	485,036	$	461,462	$	406,261
Total Adjusted EBITDA by Segment:
West	$	271,052	$	204,964	$	188,999
East	162,275		187,625		138,032
Cement	92,956		103,438		111,394
Corporate and other	(41,247)		(34,565)		(32,164)
Total Adjusted EBITDA	$	485,036	$	461,462	$	406,261

	2020		2019		2018
Purchases of property, plant and equipment
West	$	67,500	$	71,397	$	120,657
East	92,528		77,894		64,384
Cement	15,071		25,691		28,036
Total reportable segments	175,099		174,982		213,077
Corporate and other	2,150		2,513		7,608
Total purchases of property, plant and equipment	$	177,249	$	177,495	$	220,685

	2020		2019		2018
Depreciation, depletion, amortization and accretion:
West	$	93,866	$	93,256	$	91,794
East	86,205		81,403		75,433
Cement	37,267		38,447		35,061
Total reportable segments	217,338		213,106		202,288
Corporate and other	3,982		3,996		2,622
Total depreciation, depletion, amortization and accretion	$	221,320	$	217,102	$	204,910

	2020		2019		2018
Total assets:
West	$	1,503,382	$	1,379,684	$	1,370,501
East	1,303,742		1,288,835		1,253,640
Cement	850,835		868,528		877,586
Total reportable segments	3,657,959		3,537,047		3,501,727
Corporate and other	650,052		530,509		355,914
Total	$	4,308,011	$	4,067,556	$	3,857,641

101

Table of Contents

SUMMIT MATERIALS, LLC AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements and notes thereto for Summit Materials, LLC and subsidiaries are included as Exhibit 99.1 to this Annual Report on Form 10-K and are incorporated by reference herein.

ITEM 9.    CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

None.

ITEM  9A.    CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures

Summit Inc. and Summit LLC maintain disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, that are designed to ensure that information required to be disclosed in Summit Inc.’s reports under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to Summit Inc.’s and Summit LLC’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of achieving the desired control objectives. Summit Inc.’s and Summit LLC’s management, with the participation of its Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of Summit Inc.’s disclosure controls and procedures as of January 2, 2021. Based upon that evaluation, Summit Inc.’s and Summit LLC’s Chief Executive Officer and Chief Financial Officer concluded that, as of January 2, 2021, Summit Inc.’s and Summit LLC’s disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.

102

Table of Contents

Management’s Report on Internal Control Over Financial Reporting

The Stockholders of Summit Materials, Inc.:

The management of Summit Materials, Inc. and Summit Materials, LLC is responsible for establishing and maintaining adequate internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control system was designed to provide reasonable assurance to our management and board of directors regarding the preparation and fair presentation of published financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management evaluated the effectiveness of our internal control over financial reporting as of January 2, 2021. In making this evaluation, we used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control – Integrated Framework (2013). Based on our evaluation we believe that, as of January 2, 2021 our internal control over financial reporting is effective based on those criteria.

KPMG LLP has issued an audit report on the effectiveness of Summit Materials, Inc.’s internal control over financial reporting. The KPMG report immediately follows this report. This annual report does not include an attestation report of Summit Materials, LLC’s independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by Summit Materials, LLC’s registered public accounting firm pursuant to rules of the Securities and Exchange Commission applicable to “non-accelerated filers.”  

/s/ Anne P. Noonan	/s/ Brian J. Harris
Chief Executive Officer	Chief Financial Officer

103

Table of Contents

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors

Summit Materials, Inc.:

Opinion on Internal Control Over Financial Reporting

We have audited Summit Materials, Inc. and subsidiaries' (the Company) internal control over financial reporting as of January 2, 2021, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of January 2, 2021, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of January 2, 2021 and December 28, 2019, the related consolidated statements of operations, comprehensive income, changes in stockholders’ equity, and cash flows for each of the fiscal years ended January 2, 2021, December 28, 2019, and December 29, 2018 and the related notes (collectively, the consolidated financial statements), and our report dated February 24, 2021 expressed an unqualified opinion on those consolidated financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

	/s/ KPMG LLP
Denver, Colorado
February 24, 2021

104

Table of Contents

Changes in Internal Control over Financial Reporting

There was no change in Summit Materials, Inc.’s or Summit Materials, LLC’s internal control over financial reporting that occurred during their last fiscal quarter that has materially affected, or is reasonably likely to materially affect, their internal control over financial reporting.

ITEM  9B.    OTHER INFORMATION.

None.

PART III  

ITEM 10.     DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required by this item is incorporated by reference to our definitive proxy statement with respect to the 2021 annual meeting of stockholders to be filed with the SEC within 120 days of the fiscal year ended January 2, 2021 (the “2021 Proxy Statement”), except that certain information regarding our executive officers called for by Item 401(b) and (e) of Regulation S-K has been included in Part 1 of this Annual Report on Form 10-K.

ITEM 11.     EXECUTIVE COMPENSATION

The information set forth under the heading “Our Pay” in our 2021 Proxy Statement is incorporated herein by reference.

ITEM 12.     SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

The information required to be set forth herein pursuant to Item 403 of Regulation S–K is included in the section entitled “Our Stockholders—Holdings of Major Stockholders” in our 2021 Proxy Statement is incorporated herein by reference. The information regarding certain Company equity compensation plans called for by Item 201(d) of Regulation S–K is set forth below.

Securities Authorized for Issuance Under Equity Compensation Plans

	As of January 2, 2021
	Number of securities			Number of securities
	to be issued upon	Weighted-average		remaining available
	exercise of	exercise price of		for future issuance
	outstanding options	outstanding options		under equity
	and rights	and rights		compensation plans
Equity compensation plan approved by stockholders(1)	13,500,000	$	18.75	4,322,852

_______________________

(1)Relates only to the Omnibus Incentive Plan detailed below.

In connection with our IPO, the board of directors and our then sole voting stockholder adopted the Omnibus Incentive Plan under which 13,500,000 shares of common stock were reserved. The Omnibus Incentive Plan provides for the granting of stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based and performance compensation awards to eligible employees, officers, directors, consultants and advisors of the Company. If an award under the Omnibus Incentive Plan terminates, lapses or is settled without the payment of the full number of shares subject to the award, the undelivered shares may be granted again under the Omnibus Incentive Plan. As of January 2, 2021, there were no equity compensation plans not approved by stockholders of Summit Inc.

105

Table of Contents

ITEM 13.     CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.

The information required to be set forth herein is included in the sections entitled “Certain Relationships and Related Person Transactions” in our 2021 Proxy Statement is incorporated herein by reference.

ITEM  14.    PRINCIPAL ACCOUNTING FEES AND SERVICES.

The information provided under the heading “Item 3—Ratification of Appointment of KPMG” included in our 2021 Proxy Statement is incorporated herein by reference.

PART IV  

ITEM  15.    EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.

1.    Financial statements:

Financial statements for Summit Inc. and Summit LLC are included under Item 8 of this report, which incorporates Exhibit 99.1 with respect to Summit LLC.

2.    Financial statement schedules:

Financial statement schedules are omitted because of the absence of conditions under which they are required or because the required information is provided in the financial statements or notes thereto.

3.    Exhibits:

2.1	Asset Purchase Agreement, dated as of April 16, 2015, among Continental Cement Company, L.L.C., Lafarge North America Inc., Summit Materials, LLC and Summit Materials Holdings L.P. (incorporated by reference to Exhibit 2.1 of Summit Materials, LLC’s Current Report on Form 8-K filed on April 17, 2015 (File No. 333-187556)).
2.2	Asset Purchase Agreement, dated as of April 16, 2015, among Continental Cement Company, L.L.C., Lafarge North America Inc., Summit Materials, LLC and Summit Materials Holdings L.P. (incorporated by reference to Exhibit 2.2 of Summit Materials, LLC’s Current Report on Form 8-K filed on April 17, 2015 (File No. 333-187556)).
3.1	Certificate of Formation of Summit Materials, LLC, as amended (incorporated by reference to Exhibit 3.1 to Summit Materials, LLC’s Registration Statement on Form S-4, filed March 27, 2013 (File No. 333-187556)).
3.2	Second Amended and Restated Limited Liability Company Agreement of Summit Materials, LLC (incorporated by reference to Exhibit 3.4 to the Registrants’ Quarterly Report on Form 10-Q filed on October 30, 2019 (File No. 001-36783)).
3.3	Amended and Restated Certificate of Incorporation of Summit Materials, Inc. (incorporated by reference to Exhibit 3.1 to Summit Materials, Inc.’s Current Report on Form 8-K filed on March 17, 2015 (File No. 001-36873)).
3.4	Amended and Restated By-Laws of Summit Materials, Inc. (incorporated by reference to Exhibit 3.2 to Summit Materials, Inc.’s Current Report on Form 8-K filed on March 17, 2015 (File No. 001-36873)).
4.1	Description of Registrant's Securities (incorporated by Reference to Exhibit 4.1 to the Registrant’s Annual Report on Form 10-K filed on February 5, 2020 (File No. 001-36873))

4.2	Indenture, dated as of June 1, 2017, by and among Summit Materials, LLC, Summit Materials Finance Corp., the subsidiary guarantors named on the signature pages thereto and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.2 to the Registrants’ Current Report on Form 8-K, filed June 1, 2017 (File No. 001-36873)).
4.3	Form of 5.125% Senior Note due 2025 (included in Exhibit 4.2).
4.4	Indenture, dated as of March 15, 2019, among Summit Materials, LLC as the Issuer, Summit Materials Finance Corp. as the Co-Issuer, the Guarantors named therein and Wilmington Trust, National Association, as trustee, (incorporated by reference to Exhibit 4.1 to the Registrants’ Current Report on Form 8-K, filed March 15, 2019 (File No. 001-36873)).
4.5	Form of 6.500% Senior Note due 2027 (included in Exhibit 4.4).

106

Table of Contents

4.6	Indenture, dated as of August 11, 2020, by and among Summit Materials, LLC, Summit Materials Finance Corp., the subsidiary guarantors on the signature pages thereto and Wilmington Trust, National Association, as trustee, (incorporated by reference to Exhibit 4.1 to the Registrants’ Current Report on Form 8-K, filed August 11, 2020 (File No. 001-36873)).
4.7	Form of 5.25% Senior Note due 2029 (included in Exhibit 4.6).

10.1	Fourth Amended and Restated Limited Partnership Agreement of Summit Materials Holdings L.P., dated as of March 11, 2015 (incorporated by reference to Exhibit 10.1 to Summit Materials, Inc.’s Current Report on Form 8-K filed on March 17, 2015 (File No. 001-36873)).
10.2	Tax Receivable Agreement, dated as of March 11, 2015, by and among Summit Materials, Inc. and each of the other persons from time to time party thereto (incorporated by reference to Exhibit 10.3 to Summit Materials, Inc.’s Current Report on Form 8-K filed on March 17, 2015 (File No. 001-36873)).
10.3	Exchange Agreement, dated as of March 11, 2015, among Summit Materials, Inc., Summit Holdings and the holders of LP Units from time to time party thereto (incorporated by reference to Exhibit 10.2 to Summit Materials, Inc.’s Current Report on Form 8-K filed on March 17, 2015 (File No. 001-36873)).
10.4	Amendment No. 1 to Exchange Agreement, dated as of August 4, 2015, among Summit Materials, Inc., Summit Holdings and the other parties identified on the signature pages thereto (incorporated by reference to Exhibit 10.1 to Summit Materials, LLC’s Quarterly Report on Form 10-Q filed on November 3, 2015 (File No. 333-187556)).
10.5+	Summit Materials, Inc. 2015 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.7 to Summit Materials, Inc.’s Current Report on Form 8-K filed on March 17, 2015 (File No. 001-36873)).
10.6+	Form of Restricted LP Unit Agreement (incorporated by reference to Exhibit 10.7 to Summit Materials, Inc.’s Amendment No. 1 to the Registration Statement on Form S-1, filed January 9, 2015 (File No. 333-201058)).
10.7+	Form of Stock Option Agreement (Leverage Restoration Options) (incorporated by reference to Exhibit 10.8 to Summit Materials, Inc.’s Amendment No. 1 to the Registration Statement on Form S-1, filed January 9, 2015 (File No. 333-201058)).
10.8+	Form of Restricted Stock Unit Award Notice and Agreement for Directors (incorporated by reference to Exhibit 10.1 to the Registrants’ Quarterly Report on Form 10-Q, filed May 4, 2016 (File No. 001-36873)).
10.9+	Form of Restricted Stock Unit Award Notice and Agreement for Executive Officers (incorporated by reference to Exhibit 10.2 to the Registrants’ Quarterly Report on Form 10-Q, filed May 4, 2016 (File No. 001-36873)).
10.10+	Form of Nonqualified Stock Option Award Notice and Agreement for Executive Officers (incorporated by reference to Exhibit 10.3 to the Registrants’ Quarterly Report on Form 10-Q, filed May 4, 2016 (File No. 001-36873)).
10.11+	Form of Performance Unit Award Notice and Agreement for Executive Officers (incorporated by reference to Exhibit 10.4 to the Registrants’ Quarterly Report on Form 10-Q, filed May 4, 2016 (File No. 001-36873)).
10.12+	Form of Director and Officer Indemnification Agreement (incorporated by reference to Exhibit 10.9 to Summit Materials, Inc.’s Amendment No. 1 to the Registration Statement on Form S-1, filed January 9, 2015 (File No. 333-201058)).

10.13	Credit Agreement, dated as of January 30, 2012, by and among Summit Materials, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Citigroup Global Markets Inc., as joint lead arrangers, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., UBS Securities LLC, Barclays Capital, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc., as joint bookrunners, Bank of America, N.A., as administrative agent, collateral agent and swing line lender, Bank of America, N.A., as letter of credit issuer, and Citigroup Global Markets Inc., as syndication agent (incorporated by reference to Exhibit 10.1 of Amendment No. 1 to Summit Materials, LLC’s Registration Statement on Form S-4, filed May 3, 2013 (File No. 333-187556)).
10.14	Amendment No. 1, dated as of February 5, 2013, to the Credit Agreement, dated as of January 30, 2012, by and among Summit Materials, LLC, Bank of America, N.A. as sole lead arranger, and Bank of America, N.A. and Citigroup Global Markets Inc., as joint bookrunners (incorporated by reference to Exhibit 10.2 of Summit Materials, LLC’s Registration Statement on Form S-4, filed March 27, 2013 (File No. 333-187556)).
10.15	Amendment No. 2, dated as of January 16, 2014, to the Credit Agreement, dated as of January 30, 2012, by and among Summit Materials, LLC, the guarantors party thereto, Bank of America, N.A., as administrative agent, collateral agent, L/C issuer and swing line lender and the other parties thereto (incorporated by reference to Exhibit 10.1 to Summit Materials, LLC’s Current Report on Form 8-K, filed January 23, 2014 (File No. 333-187556)).
10.16	Amendment No. 3, dated as of March 11, 2015, to the Credit Agreement, dated as of January 30, 2012, by and among Summit Materials, LLC, the guarantors party thereto, Bank of America, N.A., as administrative agent, collateral agent, L/C issuer and swing line lender and the other parties thereto (incorporated by reference to Exhibit 10.1 filed Summit Materials, LLC’s Current Report on Form 8-K, filed March 17, 2015 (File No. 333-187556)).

107

Table of Contents

10.17	Tranche A Revolving Credit Commitment Conversion Agreement, dated as of February 11, 2013, under the Credit Agreement, dated as of January 30, 2012, among Summit Materials, LLC, the guarantors party thereto, the several banks and other financial institutions or entities from time to time parties to the Credit Agreement, Bank of America, N.A., as administrative agent, collateral agent, L/C issuer and swing line lender and the other parties thereto (incorporated by reference to Exhibit 10.3 of Summit Materials, LLC’s Registration Statement on Form S-4, filed March 27, 2013 (File No. 333-187556)).
10.18	Security Agreement, dated as of January 30, 2012, by and among the grantors identified therein and Bank of America, N.A., as collateral agent (incorporated by reference to Exhibit 10.4 of Summit Materials, LLC’s Registration Statement on Form S-4, filed March 27, 2013 (File No. 333-187556)).
10.19	Restatement Agreement, providing for the Amended and Restated Credit Agreement, dated as of July 17, 2015, among Summit Materials, LLC, Summit Materials Intermediate Holdings, LLC, the subsidiary guarantors party thereto, the lenders party thereto and Bank of America, N.A., as administrative agent, collateral agent, L/C issuer and swing line lender (incorporated by reference to Exhibit 10.1 to Summit Materials, Inc.’s Current Report on Form 8-K filed on July 20, 2015 (File No. 001-36873)).
10.20	Amendment No. 1, dated as of January 19, 2017, to the Amended and Restated Credit Agreement, dated as of July 17, 2015, among Summit Materials, LLC, as the borrower, the guarantors party thereto, the several banks and other financial institutions or entities from time to time party thereto, Bank of America, N.A., as administrative agent, collateral agent, L/C issuer and swing line lender and the other parties thereto (incorporated by reference to Exhibit 10.1 to the Registrants’ Current Report on Form 8-K, filed January 19, 2017 (File No. 001-36873)).
10.21	Amendment No. 2, dated as of November 21, 2017, to the Amended and Restated Credit Agreement, dated as of July 17, 2015, among Summit Materials, LLC, as the borrower, the guarantors party thereto, the several banks and other financial institutions or entities from time to time party thereto, Bank of America, N.A., as administrative agent, collateral agent, L/C issuer and swing line lender and the other parties thereto (incorporated by reference to Exhibit 10.1 to the Registrants’ Current Report on Form 8-K filed on November 21, 2017 (File No. 001-36873)).

10.22	Amendment No. 3, dated as of May 22, 2018, to the Amended and Restated Credit Agreement, dated as of July 17, 2015 (as amended by Amendment No. 1, dated as of January 19, 2017 and Amendment No. 2, dated as of November 21, 2017), among Summit Materials, LLC, as the borrower, the guarantors party thereto, the several banks and other financial institutions or entities from time to time party thereto, Bank of America, N.A., as administrative agent, collateral agent, L/C issuer and swing line lender and the other parties thereto (incorporated by reference to Exhibit 10.1 to the Registrants’ Current Report on Form 8-K, filed May 22, 2018).
10.23	Incremental Amendment No. 4, dated as of February 25, 2019, to the Amended and Restated Credit Agreement, dated as of July 17, 2015 (as amended by Amendment No. 1, dated as of January 19, 2017, Amendment No. 2, dated as of November 21, 2017, and Amendment No. 3, dated as of May 22, 2018), among Summit Materials, LLC, as the borrower, the guarantors party thereto, the several banks and other financial institutions or entities from time to time party thereto, Bank of America, N.A., as administrative agent, collateral agent, L/C issuer and swing line lender and the other parties thereto (incorporated by reference to Exhibit 10.1 to the Registrants’ Current Report on Form 8-K, filed February 25, 2019).
10.24+	Form of Management Interest Subscription Agreement for executive officers (incorporated by reference to Exhibit 10.8 to Summit Materials, LLC’s Annual Report on Form 10-K, filed March 7, 2014 (File No. 333-187556)).
10.25+	Form of Management Interest Subscription Agreement for directors (incorporated by reference to Exhibit 10.9 to Summit Materials, LLC’s Annual Report on Form 10-K, filed March 7, 2014 (File No. 333-187556)).
10.26+	Employment Agreement, dated as of December 3, 2013, between Summit Materials Holdings L.P. and Brian J. Harris (incorporated by reference to Exhibit 10.1 to Summit Materials, LLC’s current Quarterly Report on Form 8-K/A, filed December 4, 2013 (File No. 333-187556)).
10.27	Contribution and Purchase Agreement, dated December 18, 2014, between Summit Materials, Inc., Summit Materials Holdings L.P., Summit Materials Holdings GP, Ltd., and Summit Owner Holdco LLC, and Missouri Materials Company, L.L.C., J&J Midwest Group, L.L.C., R. Michael Johnson Family Limited Liability Company, and Thomas A. Beck Family, LLC, and Continental Cement Company, L.L.C (incorporated by reference to Exhibit 10.27 to Summit Materials, Inc.’s Registration Statement on Form S-1/A, filed on January 9, 2015 (File No. 333-201058)).
10.28+	Michael J. Brady offer letter (incorporated by reference to Exhibit 10.19 of Summit Materials, LLC’s Annual Report on Form 10-K, filed February 23, 2015 (File No. 333-187556)).
10.29+	Form of Warrant to Purchase Class A Common Stock (incorporated by reference to Exhibit 10.28 to Summit Materials, Inc.’s Amendment No. 3 to the Registration Statement on Form S-1, filed March 2, 2015 (File No. 333-201058)).
10.30+	Summit Materials, Inc. Executive Severance Plan (incorporated by reference to Exhibit 10.2 to Summit Materials, Inc.’s Current Report on Form 8-K filed on December 21, 2017 (File No. 001-36873).
10.31+	Form of Restricted Stock Unit Award Notice and Agreement (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q, filed October 28, 2020 (File No. 001-36873)).

108

Table of Contents

10.32+	Form of Performance Unit Award Notice and Agreement (incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q, filed October 28, 2020 (File No. 001-36873)).
10.33+	Form of Special Executive Restricted Stock Unit Award Notice and Agreement (incorporated by reference to Exhibit 10.1 to the Registrants’ Current Report on Form 8-K, filed August 3, 2020 (File No. 001-36873)).
10.34+	Offer Letter, dated as of July 20, 2020, by and between Summit Materials, Inc. and Anne P. Noonan ((incorporated by reference to Exhibit 10.1 to the Summit Materials, Inc.’s Current Report on Form 8-K, filed July 21, 2020 (File No. 001-36873)).
10.35+	Transition and Consulting Agreement, dated as of July 20, 2020, by and between Summit Materials, Inc. and Thomas W. Hill ((incorporated by reference to Exhibit 10.2 to the Summit Materials, Inc.’s Current Report on Form 8-K, filed July 21, 2020 (File No. 001-36873)).

21*	Subsidiaries of Summit Materials, LLC and Summit Materials, Inc.
23.1*	Consent of KPMG LLP, Independent Registered Public Accounting Firm.
31.1*	Summit Materials, Inc.’s Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Summit Materials, Inc.’s Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.3*	Summit Materials, LLC’s Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.4*	Summit Materials, LLC’s Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Summit Materials, Inc.’s Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Summit Materials, Inc.’s Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.3**	Summit Materials, LLC’s Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.4**	Summit Materials, LLC’s Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
95.1*	Mine Safety Disclosures.
99.1*	Summit Materials, LLC’s Consolidated Financial Statements and Notes to Consolidated Financial Statements.
101.1NS*	Inline XBRL Instance Document
101.SCH*	Inline XBRL Taxonomy Extension Schema Document.
101.CAL*	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*	Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*	Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104.1*	Cover Page Interactive Data File (embedded with the Inline XBRL document).

*        Filed herewith

**      Furnished herewith

+        Indicates management or compensating plan or arrangement

The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.

ITEM  16.    FORM 10-K SUMMARY

None.

109

Table of Contents

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized. 

		SUMMIT MATERIALS, INC.
		SUMMIT MATERIALS, LLC
Date:	February 24, 2021	By:	/s/ Anne P. Noonan
			Anne P. Noonan
			Chief Executive Officer
			(Principal Executive Officer)

Pursuant to the requirements of the Securities Act of 1934, this report has been signed by the following persons in the capacities indicated on the 24th day of February 2021.

Signature	Title
/s/     Anne P. Noonan	President and Chief Executive Officer; Director of Summit Materials, Inc. (Principal Executive Officer)
Anne P. Noonan
/s/    Brian J. Harris	Chief Financial Officer (Principal Financial and Accounting Officer)
Brian J. Harris
/s/     Joseph S. Cantie	Director of Summit Materials, Inc.
Joseph S. Cantie
/s/     Anne M. Cooney	Director of Summit Materials, Inc.
Anne M. Cooney
/s/     Susan A. Ellerbusch	Director of Summit Materials, Inc.
Susan A. Ellerbusch
/s/     Howard L. Lance	Director of Summit Materials, Inc.
Howard L. Lance
/s/    John R. Murphy	Director of Summit Materials, Inc.
John R. Murphy
/s/    Anne K. Wade	Director of Summit Materials, Inc.
Anne K. Wade
/s/    Steven H. Wunning	Director of Summit Materials, Inc.
Steven H. Wunning

110

EX-21

Exhibit 21

SUBSIDIARIES OF SUMMIT MATERIALS, INC.

SUBSIDIARIES OF SUMMIT MATERIALS, LLC

(as of February 24, 2021)

Name	Jurisdiction of Incorporation or Organization
Alan Ritchey Materials Company, L.C.	Oklahoma
Alleyton Resource Company, LLC	Delaware
Alleyton Services Company, LLC	Delaware
American Materials Company, LLC	North Carolina
Austin Materials, LLC	Delaware
B&B Resources, Inc.	Utah
Bourbon Limestone Company	Kentucky
Boxley Materials Company	Virginia
Buckingham Slate Company, LLC	Virginia
Buckingham Slate #1, LLC	Virginia
Buckingham Slate #2, LLC	Virginia
Buildex, LLC	Delaware
Colorado County Sand & Gravel Co., L.L.C.	Texas
Columbia Aggregates, LLC	South Carolina
Con-Agg Companies, LLC	Missouri
Concrete Supply of Topeka, LLC	Kansas
Continental Cement Company, L.L.C.	Delaware
Cornejo & Sons, L.L.C.	Kansas
Elam Construction, Inc.	Colorado
Georgia Stone Products, LLC	Georgia
Glasscock Company, Inc.	South Carolina
Glasscock Logistics Company, LLC	South Carolina
Green America Recycling, LLC	Missouri
Hamm, Inc.	Kansas
H.C. Rustin Corporation	Oklahoma
Hinkle Contracting Company LLC	Kentucky
Industrial Asphalt, LLC	Texas
Jefferson Quarry, LLC	Georgia
Kilgore Companies, LLC	Delaware
Kilgore Partners, L.P.	Utah
Laredo Paving, Inc.	Texas
LeGrand Johnson Construction Co.	Utah
Lewis & Lewis, Inc.	Wyoming
Mainland Construction Materials ULC	British Columbia
Metro Ready Mix, L.L.C.	Utah
Mid-Missouri Limestone, LLC	Missouri
Multisource Sand and Gravel Co., Ltd.	Texas
N.R. Hamm Contractor, LLC	Kansas
N.R. Hamm Quarry, LLC	Kansas
Northwest Aggregates, Inc.	Colorado

Northwest Ready Mix, Inc.	Colorado
Ohio Valley Asphalt, LLC	Kentucky
Peak Materials, LLC	Delaware
Peak Ready Mix, LLC	New Mexico
Pelican Asphalt Company, LLC	Texas
Penny’s Concrete and Ready Mix, L.L.C.	Kansas
Price Construction, Ltd.	Texas
Razorback Concrete Company	Arkansas
R.D. Johnson Excavating Company, LLC	Kansas
Ready Mix Concrete of Somerset, LLC	Kentucky
RK Hall, LLC	Delaware
SAGE, L.L.C.	Texas
SCS Materials, LLC	Texas
Sierra Ready Mix Limited Liability Company	Nevada
Stoner Sand, L.L.C.	Missouri
Summit Finance Group, LLC	Delaware
Summit Materials Corporations I, Inc.	Delaware
Summit Materials Finance Corp.	Delaware
Summit Materials Holdings, LLC(1)	Delaware
Summit Materials Holdings L.P.(1)	Delaware
Summit Materials Intermediate Holdings, LLC(1)	Delaware
Summit Materials International, LLC	Delaware
Summit Materials, LLC(1)	Delaware
Troy Vines, Inc.	Texas
Valley Real Estate Holdings, LLC	Virginia
Walker Sand & Gravel Ltd. Co.	Idaho
XIT Sand and Gravel, LLC	Texas

__________________

(1) Subsidiary of Summit Materials, Inc. but not of Summit Materials, LLC.

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Stockholders

of Summit Materials, Inc.:

We consent to the incorporation by reference in the registration statements (No. 333-202669 and No. 333-210036) on Form S-8 and registration statement (No. 333-235820) on Form S-3 of Summit Materials, Inc. and subsidiaries of our reports dated February 24, 2021, with respect to the consolidated balance sheets of Summit Materials, Inc. and subsidiaries as of January 2, 2021 and December 28, 2019, and the related consolidated statements of operations, comprehensive income, cash flows, and changes in stockholders’ equity for each of the fiscal years ended January 2, 2021, December 28, 2019, and December 29, 2018 and the related notes, and the effectiveness of internal control over financial reporting as of January 2, 2021, which reports appear in the January 2, 2021 annual report on Form 10-K of Summit Materials, Inc. Our report refers to the change in accounting for leases as of December 30, 2018 due to the adoption of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 842, Leases.

                                /s/ KPMG LLP

Denver, Colorado

February 24, 2021

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Anne P. Noonan, certify that:

1.    I have reviewed this Annual Report on Form 10-K of Summit Materials, Inc. (the “registrant”);

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 24, 2021

/s/ Anne P. Noonan

Anne P. Noonan

Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Brian J. Harris, certify that:

1.    I have reviewed this Annual Report on Form 10-K of Summit Materials, Inc. (the “registrant”);

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 24, 2021

/s/ Brian J. Harris

Brian J. Harris

Chief Financial Officer

(Principal Financial Officer)

EX-31.3

Exhibit 31.3

CERTIFICATION

I, Anne P. Noonan, certify that:

1.    I have reviewed this Annual Report on Form 10-K of Summit Materials, LLC (the “registrant”);

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 24, 2021

/s/ Anne P. Noonan

Anne P. Noonan

Chief Executive Officer

(Principal Executive Officer)

EX-31.4

Exhibit 31.4

CERTIFICATION

I, Brian J. Harris, certify that:

1.    I have reviewed this Annual Report on Form 10-K of Summit Materials, LLC (the “registrant”);

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 24, 2021

/s/ Brian J. Harris

Brian J. Harris

Chief Financial Officer

(Principal Financial Officer)

EX-32.1

Exhibit 32.1

Certification

Pursuant to 18 U.S.C. Section 1350

As adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Annual Report of Summit Materials, Inc. (the “Company”) on Form 10-K for the fiscal year ended January 2, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Anne P. Noonan, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(i)    The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii)    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 24, 2021

/s/ Anne P. Noonan

Anne P. Noonan

Chief Executive Officer

(Principal Executive Officer)

EX-32.2

Exhibit 32.2

Certification

Pursuant to 18 U.S.C. Section 1350

As adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Annual Report of Summit Materials, Inc. (the “Company”) on Form 10-K for the fiscal year ended January 2, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Brian J. Harris, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(i)    The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii)    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 24, 2021

/s/ Brian J. Harris

Brian J. Harris

Chief Financial Officer

(Principal Financial Officer)

EX-32.3

Exhibit 32.3

Certification

Pursuant to 18 U.S.C. Section 1350

As adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Annual Report of Summit Materials, LLC (the “Company”) on Form 10-K for the fiscal year ended January 2, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Anne P. Noonan, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(i)    The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii)    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 24, 2021

/s/ Anne P. Noonan

Anne P. Noonan

Chief Executive Officer

(Principal Executive Officer)

EX-32.4

Exhibit 32.4

Certification

Pursuant to 18 U.S.C. Section 1350

As adopted pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Annual Report of Summit Materials, LLC (the “Company”) on Form 10-K for the fiscal year ended January 2, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Brian J. Harris, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(i)    The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii)    The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 24, 2021

/s/ Brian J. Harris

Brian J. Harris

Chief Financial Officer

(Principal Financial Officer)

EX-95.1

Exhibit 95.1

Mine Safety Disclosures

The operation of Summit Materials, Inc.’s and its subsidiaries’ (collectively, the “Company’s”) domestic aggregates quarries and mines are subject to regulation by the federal Mine Safety and Health Administration (“MSHA”) under the Federal Mine Safety and Health Act of 1977 (the “Mine Act”). MSHA inspects the Company’s quarries and mines on a regular basis and issues various citations and orders when it believes a violation has occurred under the Mine Act. Whenever MSHA issues a citation or order, it also generally proposes a civil penalty, or fine, related to the alleged violation. Citations or orders may be contested and appealed, and as part of that process, are often reduced in severity and amount, and are sometimes dismissed.

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”), the Company is required to present information regarding certain mining safety and health citations which MSHA has issued with respect to its aggregates mining operations in its periodic reports filed with the Securities and Exchange Commission (“SEC”). In evaluating this information, consideration should be given to factors such as: (i) the number of citations and orders will vary depending on the size of the quarry or mine and types of operations (underground or surface); (ii) the number of citations issued will vary from inspector to inspector and location to location; and (iii) citations and orders can be contested and appealed, and in that process, may be reduced in severity and amount, and are sometimes dismissed.

The Company has provided the information below in response to the rules and regulations of the SEC issued under Section 1503(a) of the Dodd-Frank Act. The disclosures reflect U.S. mining operations only, as the requirements of the Dodd-Frank Act and the SEC rules and regulations thereunder do not apply to the Company's quarries and mines operated outside the United States.

The Company presents the following items regarding certain mining safety and health matters for the year ended January 2, 2021 as applicable (Appendix 1):

•Total number of violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a mine safety or health hazard under Section 104 of the Mine Act for which the Company has received a citation from MSHA (hereinafter, “Section 104 S&S Citations”). If MSHA determines that a violation of a mandatory health or safety standard is likely to result in a reasonably serious injury or illness under the unique circumstance contributed to by the violation, MSHA will classify the violation as a “significant and substantial” violation (commonly referred to as a “S&S” violation). MSHA inspectors will classify each citation or order written as a “S&S” violation or not.

•Total number of orders issued under Section 104(b) of the Mine Act (hereinafter, “Section 104(b) Orders”). These orders are issued for situations in which MSHA determines a previous violation covered by a Section 104(a) citation has not been totally abated within the prescribed time period, so a further order is needed to require the mine operator to immediately withdraw all persons (except authorized persons) from the affected area of a quarry or mine.

•Total number of citations and orders for unwarrantable failure of the mine operator to comply with mandatory health or safety standards under Section 104(d) of the Mine Act (hereinafter, “Section 104(d) Citations and Orders”). These violations are similar to those described above, but the standard is that the violation could significantly and substantially contribute to the cause and effect of a safety or health hazard, but the conditions do not cause imminent danger, and the MSHA inspector finds that the violation is caused by an unwarranted failure of the operator to comply with the health and safety standards.

•Total number of flagrant violations under Section 110(b)(2) of the Mine Act (hereinafter, “Section 110(b)(2) Violations”). These violations are penalty violations issued if MSHA determines that violations are “flagrant”, for which civil penalties may be assessed. A “flagrant” violation means a reckless or repeated failure to make reasonable efforts to eliminate a known violation of a mandatory health or safety standard that substantially and proximately caused, or reasonably could have been expected to cause, death or serious bodily injury.

•Total number of imminent danger orders issued under Section 107(a) of the Mine Act (hereinafter, “Section 107(a) Orders”). These orders are issued for situations in which MSHA determines an imminent danger exists in the quarry or mine and results in orders of immediate withdrawal of all persons (except certain authorized persons) from the area of the quarry or mine affected by its condition until the imminent danger and the underlying conditions causing the imminent danger no longer exist.

•Total dollar value of proposed assessments from MSHA under the Mine Act. These are the amounts of proposed assessments issued by MSHA with each citation or order for the time period covered by the reports. Penalties are assessed by MSHA according to a formula that considers a number of factors, including the mine operator’s history, size, negligence, gravity of the violation, good faith in trying to correct the violation promptly, and the effect of the penalty on the operator’s ability to continue in business.

•Total number of mining-related fatalities. Mines subject to the Mine Act are required to report all fatalities occurring at their facilities unless the fatality is determined to be “non-chargeable” to the mining industry. The final rules of the SEC require disclosure of mining-related fatalities at mines subject to the Mine Act. Only fatalities determined by MSHA not to be mining-related may be excluded.

•Receipt of written notice from MSHA of a pattern (or a potential to have such a pattern) of violations of mandatory health or safety standards that are of such nature as could have significantly and substantially contributed to the cause and effect of other mine health or safety hazards under Section 104(e) of the Mine Act. If MSHA determines that a mine has a “pattern” of these types of violations, or the potential to have such a pattern, MSHA is required to notify the mine operator of the existence of such a thing.

•Legal actions before the Federal Mine Safety and Health Review Commission (the “Commission”) pending as of the last day of period.

•Legal actions before the Commission initiated during period.

•Legal actions before the Commission resolved during period.

The Commission is an independent adjudicative agency that provides administrative trial and appellate review of legal disputes arising under the Mine Act. The cases may involve, among other questions, challenges by operators to citations, orders and penalties they have received from MSHA, or complaints of discrimination by miners under Section 105 of the Mine Act. There were no legal actions pending before the Commission for any of the Company’s quarries or mines, as of or during the year ended January 2, 2021.

Appendix 1 follows.

Appendix 1

										Total				Received
					Total					Dollar		Total	Received	Written			Total
					Number of					Value of		Number of	Written	Notice of			Dollar		Number of
					Section 104	Section 104(b)	Section 104(d)			Proposed		Mining	Notice Under	Potential	Number of	Number of	Value of		Complaints of
				Number of	S&S	Citations and	Citations and	Section 110(b)(2)	Section 107(a)	MSHA		Related	Section 104(e)	Violation under	Contested	Contested	Penalties in		Discharge or
Name of Company	Name or Operation	MSHA ID	State	Inspections	Citation	Orders	Orders	Violations	Orders	Assessments		Fatalities	(yes/no)	104(e) (yes/no)	Citations	Penalties	Contest		Discrimination
Alleyton Resources	4L Ranch	4104416	TX	—	—	—	—	—	—	$	—	—	No	No	—	—	$	—	—
Alleyton Resources	Altair Plant	4104375	TX	4	—	—	—	—	—		—	—	No	No	—	—		—	—
Alleyton Resources	Duncan Plant	4105187	TX	2	—	—	—	—	—		—	—	No	No	—	—		—	—
Alleyton Resources	Hanna's Bend Plant	4104631	TX	5	—	—	—	—	—		246	—	No	No	—	—		—	—
Alleyton Resources	Monahan	4104552	TX	—	—	—	—	—	—		—	—	No	No	—	—		—	—
Alleyton Resources	Potter Plant	4104987	TX	2	—	—	—	—	—		—	—	No	No	—	—		—	—
Alleyton Resources	Smith Plant	4105210	TX	3	—	—	—	—	—		—	—	No	No	—	—		—	—
Alleyton Resources	Vox Plant	4105081	TX	4	—	—	—	—	—		—	—	No	No	—	—		—	—
American Materials	Bailey Mine	3102289	NC	1	—	—	—	—	—		—	—	No	No	—	—		—	—
American Materials	Black Creek Sand Mine	3800722	SC	3	—	—	—	—	—		—	—	No	No	—	—		—	—
American Materials	DIXIANA MINE	3800125	SC	4	—	—	—	—	—		—	—	No	No	—	—		—	—
American Materials	Dupree Mine	3102282	NC	2	—	—	—	—	—		—	—	No	No	—	—		—	—
American Materials	Edisto Sand	3800745	SC	2	—	—	—	—	—		—	—	No	No	—	—		—	—
American Materials	EDMUND MINE & MILL	3800124	SC	1	—	—	—	—	—		—	—	No	No	—	—		—	—
American Materials	Gresham Mine	3800673	SC	2	—	—	—	—	—		—	—	No	No	—	—		—	—
American Materials	Ingram Plant	3800751	SC	—	—	—	—	—	—		—	—	No	No	—	—		—	—
American Materials	IVANHOE PIT	3102011	NC	5	—	—	—	—	—		—	—	No	No	—	—		—	—
American Materials	Johnsonville Plant	3800608	SC	4	—	—	—	—	—		—	—	No	No	—	—		—	—
American Materials	Pee Dee Plant	3800621	SC	—	—	—	—	—	—		—	—	No	No	—	—		—	—
American Materials	Pinner Mine	3102105	NC	—	—	—	—	—	—		—	—	No	No	—	—		—	—
American Materials	Richardson Mine	3800719	SC	2	—	—	—	—	—		—	—	No	No	2	—		—	—
American Materials	Shuler Mine	3800124	SC	1	—	—	—	—	—		—	—	No	No	—	—		—	—
American Materials	Sumter County Sand	3800575	SC	4	—	—	—	—	—		—	—	No	No	—	—		—	—
American Materials	Wade Mine	3102089	NC	4	—	—	—	—	—		—	—	No	No	—	—		—	—
Austin Materials	Florence Quarry	4104807	TX	4	—	—	—	—	—		—	—	No	No	—	—		—	—
Austin Materials	Hays Quarry	4104514	TX	4	2	—	—	—	—		500	—	No	No	—	—		—	—
Boxley Materials	Boxley Aggregate-Arvonia Plant	4400061	VA	5	—	—	—	—	—		—	—	No	No	—	—		—	—
Boxley Materials	Boxley Aggregates-Blue Ridge Plant	4400014	VA	11	—	—	—	—	—		—	—	No	No	—	—		—	—
Boxley Materials	Boxley Aggregates-Fieldale Plant	4400074	VA	9	—	—	—	—	—		123	—	No	No	—	—		—	—
Boxley Materials	Boxley Aggregates-Lawyers Rd Plt	4400015	VA	18	—	—	—	—	—		882	—	No	No	—	—		—	—

Boxley Materials	Boxley Aggregates-Mt Athos Plant	4400106	VA	7	—	—	—	—	—	—	—	No	No	—	—	—	—
Boxley Materials	Boxley Aggregates-Piney River Plant	4400035	VA	5	—	—	—	—	—	123	—	No	No	—	—	—	—
Boxley Materials	Boxley Aggregates-Rich Patch Quarry	4406897	VA	3	—	—	—	—	—	—	—	No	No	—	—	—	—
Boxley Materials	Broad River Crushed Stone, LLC	901225	GA	3	2	—	—	—	1	2,136	—	No	No	—	—	—	—
Boxley Materials	Georgia Stone-Forsyth Plant	901124	GA	3	—	—	—	—	—	—	—	No	No	—	—	—	—
Boxley Materials	Lynches River Quarry	3800715	SC	8	1	—	—	—	—	—	—	No	No	1	—	—	—
Boxley Materials	McLanahan Crushed Stone	900050	GA	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Boxley Materials	PSC1 - EXTEC 5000S Screen	4404196	VA	1	—	—	—	—	—	—	—	No	No	—	—	—	—
Con-Agg of MO	Big Spring	2300951	MO	1	—	—	—	—	—	—	—	No	No	—	—	—	—
Con-Agg of MO	Boon Quarries East	2300078	MO	6	2	—	—	—	—	310	—	No	No	—	—	—	—
Con-Agg of MO	Boon Quarries West	2300022	MO	3	—	—	—	—	—	110	—	No	No	—	—	—	—
Con-Agg of MO	Boone Quarries Houstonia	2302119	MO	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Con-Agg of MO	Boone Quarries Jeff City BQJC	2302221	MO	3	—	—	—	—	—	110	—	No	No	—	—	—	—
Con-Agg of MO	Boone Quarries Millersburg	2300160	MO	6	—	—	—	—	—	110	—	No	No	—	—	—	—
Con-Agg of MO	Boone Quarries Riggs	2302099	MO	3	—	—	—	—	—	110	—	No	No	—	—	—	—
Con-Agg of MO	Boone Quarries Tipton	2301586	MO	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Con-Agg of MO	Boone Quarries-North Telsmith Plant	2301894	MO	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Con-Agg of MO	Boonville Quarry	2300097	MO	6	—	—	—	—	—	110	—	No	No	—	—	—	—
Con-Agg of MO	Con-Agg LLC dba Boone Quarries	2302153	MO	2	—	—	—	—	—	110	—	No	No	—	—	—	—
Con-Agg of MO	Harrisburg Plant 671	301603	AR	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Con-Agg of MO	Huntsville Quarry	2302004	MO	8	2	—	—	—	—	330	—	No	No	—	—	—	—
Con-Agg of MO	Jonesboro Plant 675	300566	AR	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Con-Agg of MO	Marshall Junction Quarry	2301253	MO	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Con-Agg of MO	Marshall Quarry	2300099	MO	7	1	—	—	—	—	440	—	No	No	—	—	—	—
Con-Agg of MO	Mid-Missouri Limestone	2302009	MO	4	1	—	—	—	—	220	—	No	No	—	—	—	—
Con-Agg of MO	Mid-Missouri Limestone New Haven	2301765	MO	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Con-Agg of MO	Mid-Missouri Limestone Reform	2301447	MO	6	—	—	—	—	—	110	—	No	No	—	—	—	—
Con-Agg of MO	Norris Quarries Plant # 02	2302541	MO	2	—	—	—	—	—	123	—	No	No	—	—	—	—
Con-Agg of MO	Norris Quarries Plant # 1	2301929	MO	7	1	—	—	—	—	322	—	No	No	—	—	—	—
Con-Agg of MO	Norris Quarries Plant #2	2302399	MO	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Con-Agg of MO	Norris Quarries Plant #3	2301930	MO	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Con-Agg of MO	Norris Quarries Stoner Sand	2302014	MO	3	—	—	—	—	—	—	—	No	No	—	—	—	—
Con-Agg of MO	Plant # 65	2301922	MO	6	—	—	—	—	—	—	—	No	No	—	—	—	—

Con-Agg of MO	plant # 80	2302071	MO	9	—	—	—	—	—	123	—	No	No	—	—	—	—
Con-Agg of MO	Plant # 81	2302296	MO	8	—	—	—	—	—	—	—	No	No	—	—	—	—
Con-Agg of MO	Plant #83	2302338	MO	2	—	—	—	—	—	—	—	No	No	—	—	—	—
Con-Agg of MO	Wesphalia	2301908	MO	1	—	—	—	—	—	—	—	No	No	—	—	—	—
Concrete Supply	Oakland Sand River Plant	1401742	KS	5	1	—	—	—	—	1,535	—	No	No	4	—	484	—
Concrete Supply	Silver Lake Plant	1401702	KS	4	—	—	—	—	—	624	—	No	No	—	—	—	—
Continental Cement Company	Davenport Plant	1300125	IA	14	1	—	—	—	—	3,311	—	No	No	—	—	—	—
Continental Cement Company	Hannibal Underground	2302434	MO	203	47	—	—	—	—	188,135	—	No	No	12	12	17,843	—
Continental Cement Company	Owensville Plant	2301038	MO	2	—	—	—	—	—	369	—	No	No	—	—	—	—
Cornejo & Sons	Augusta Quarry	1400126	KS	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Cornejo & Sons	Durbin Quarry	1401719	KS	8	2	—	—	—	—	830	—	No	No	—	—	—	—
Cornejo & Sons	Grove	1401539	KS	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Cornejo & Sons	Kingsbury	1400624	KS	1	—	—	—	—	—	—	—	No	No	—	—	—	—
Cornejo & Sons	Oxford Sand and Gravel	1400522	KS	3	—	—	—	—	—	—	—	No	No	—	—	—	—
Cornejo & Sons	Portable Plant #1	1401462	KS	2	2	—	—	—	1	1,796	—	No	No	—	—	—	—
Cornejo & Sons	Portable Plant #2	1401463	KS	4	—	—	—	—	—	—	—	No	No	—	—	—	—
Cornejo & Sons	Portable Plant #3	1401464	KS	1	—	—	—	—	—	—	—	No	No	—	—	—	—
Cornejo & Sons	Portable Plant #4	1400156	KS	3	5	—	—	—	—	2,478	—	No	No	—	—	—	—
Cornejo & Sons	Portable Plant #5	1401648	KS	1	—	—	—	—	—	—	—	No	No	—	—	—	—
Cornejo & Sons	Severy Quarry	1401584	KS	1	1	—	—	—	—	157	—	No	No	—	—	—	—
Cornejo & Sons	Wichita Sand and Gravel	1400543	KS	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Hamm Companies	85.9	300566	AR	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Hamm Companies	Buildex	2300319	MO	21	1	—	—	—	—	350	—	No	No	—	—	—	—
Hamm Companies	Contractor Stripping	B3200	KS	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Hamm Companies	Lip Man Rip Rap	1401709	KS	3	—	—	—	—	—	—	—	No	No	—	—	—	—
Hamm Companies	Lotawana	2301889	MO	2	2	—	—	—	—	400	—	No	No	—	—	—	—
Hamm Companies	LouisBurg	1400823	KS	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Hamm Companies	LouisBurg Quarry	1400823	KS	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Hamm Companies	Metso Portable	1401811	KS	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Hamm Companies	Olathe	1401704	KS	3	—	—	—	—	—	—	—	No	No	—	—	—	—
Hamm Companies	Plant # 80002	1401583	KS	6	2	—	—	—	—	350	—	No	No	—	—	—	—
Hamm Companies	Plant # 80003	1401474	KS	3	—	—	—	—	—	320	—	No	No	—	—	—	—
Hamm Companies	Plant # 80010	1401687	KS	5	—	—	—	—	—	120	—	No	No	—	—	—	—
Hamm Companies	Plant # 80011	1401470	KS	4	1	—	—	—	—	320	—	No	No	—	—	—	—
Hamm Companies	Plant # 80013	1401609	KS	12	—	—	—	—	—	—	—	No	No	—	—	—	—
Hamm Companies	Plant #80006	1401471	KS	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Hamm Companies	Plant #80012	1401472	KS	8	—	—	—	—	—	—	—	No	No	—	—	—	—
Hamm Companies	Plant #81038	1401709	KS	2	—	—	—	—	—	—	—	No	No	—	—	—	—
Hamm Companies	RDJ Portable	1401807	KS	1	—	—	—	—	—	—	—	No	No	—	—	—	—
Hinkle Contracting Company	Allen Co. Stone	1500063	KY	6	—	—	—	—	—	—	—	No	No	—	—	—	—
Hinkle Contracting Company	Barren Co Stone	1506863	KY	6	—	—	—	—	—	—	—	No	No	—	—	—	—
Hinkle Contracting Company	Bassett Stone Company	1500004	KY	2	—	—	—	—	—	—	—	No	No	—	—	—	—
Hinkle Contracting Company	Bourbon Limestone Company	1518415	KY	14	2	—	—	—	—	246	—	No	No	—	—	—	—
Hinkle Contracting Company	Casey Stone Company	1500012	KY	2	—	—	—	—	—	—	—	No	No	—	—	—	—
Hinkle Contracting Company	Cave Run Stone	1507194	KY	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Hinkle Contracting Company	Ewing Stone	4400234	VA	9	—	—	—	—	—	—	—	No	No	—	—	—	—
Hinkle Contracting Company	Glass Sand and Gravel	1504261	KY	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Hinkle Contracting Company	Hart County Stone Company	1500035	KY	1	—	—	—	—	—	—	—	No	No	—	—	—	—

Hinkle Contracting Company	Jellico Stone Company	4000057	TN	6	—	—	—	—	—	—		—	No	No	—	—	—	—
Hinkle Contracting Company	Lake Cumberland Stone	1500099	KY	4	—	—	—	—	—	—		—	No	No	—	—	—	—
Hinkle Contracting Company	Monroe Co. Stone	1500101	KY	5	—	—	—	—	—	—		—	No	No	—	—	—	—
Hinkle Contracting Company	Natural Bridge Stone	1500075	KY	7	—	—	—	—	—	—		—	No	No	—	—	—	—
Hinkle Contracting Company	Pulaski Stone Company	1519092	KY	—	—	—	—	—	—	—		—	No	No	—	—	—	—
Hinkle Contracting Company	Somerset Stone Company	1500094	KY	2	—	—	—	—	—	—		—	No	No	—	—	—	—
Hinkle Contracting Company	Tipton Ridge Quarry	1500019	KY	6	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Black Canyon 2100	1002146	ID	—	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Crusher 2	504645	CO	3	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Crusher 3	504593	CO	—	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Crusher1	504296	CO	5	7	—	—	—	—	2,645		—	No	No	—	—	—	—
Kilgore Companies	Elam Construction Inc	504593	CO	—	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	ESG Portable 1	505047	CO	2	4	—	—	—	—	4,520		—	No	No	—	—	—	—
Kilgore Companies	Extec S-5 Track Mounted Screen sn9617	502366	CO	3	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Grey Goose	503869	CO	6	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Highland Pit	4200941	UT	4	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	HP 300	504594	CO	3	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	KC-Portable 2 (WY)	501013	CO	—	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	KC-Portable 3 (WY)	4801626	WY	—	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Kolberg Portable Belt & Grizzly	4202384	UT	—	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Lewis & Lewis, Inc Pit #2	4801482	WY	—	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Maryland Creek	503800	CO	5	5	—	—	—	—	1,785		—	No	No	—	—	—	—
Kilgore Companies	Metso LT106Track Mounted Jaw Crusher	504872	CO	—	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Mona Pit	4202212	UT	5	2	—	—	—	—	554		—	No	No	—	—	—	—
Kilgore Companies	Parleys Stone	4202102	UT	5	1	—	—	—	—	340		—	No	No	—	—	—	—
Kilgore Companies	Portable 1	4202528	UT	4	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Portable 2	4201479	UT	—	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Portable 3	4201823	UT	—	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Portable 4	4202465	UT	—	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Portable Crusher G	4202360	UT	8	1	—	—	—	—	1,415		—	No	No	—	—	—	—
Kilgore Companies	Portable Crusher K	4202523	UT	4	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	PORTABLE CRUSHER UNIT B	4201963	UT	2	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Kilgore Companies	Portable Crusher, Unit F	4202042	UT	3	7	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Powerscreen 2100-2	1002147	ID	—	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Rental Plant 1	504616	CO	—	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Roadrunner Screen	1001916	ID	—	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Sierra Ready Mix Quarry Site	2602594	NV	2	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Snowstorm Portable Plant	501013	CO	—	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Stockton Pit	4202480	UT	4	1	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Unit A Portable	4201736	UT	6	1	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Valley Pit	4200400	UT	4	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Washplant 1	504873	CO	1	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Washplant 2	504746	CO	—	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Washplant 3	504565	CO	1	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	Washplant 4	503809	CO	2	—	—	—	—	—	—		—	No	No	—	—	—	—
Kilgore Companies	West Valley	4201980	UT	2	—	—	—	—	—	—		—	No	No	—	—	—	—

RK Hall Construction	Clements Pit	41-4129	TX	—	—	—	—	—	—	—	—	No	No	—	—	—	—
RK Hall Construction	Kirby Crusher #15	301958	AR	—	—	—	—	—	—	—	—	No	No	—	—	—	—
RK Hall Construction	Pope's Point	3401930	OK	—	—	—	—	—	—	—	—	No	No	—	—	—	—
RK Hall Construction	Sawyer Plant	3401950	OK	6	—	—	—	—	—	—	—	No	No	—	—	—	—
RK Hall Construction	XIT Quarry	4104785	TX	4	2	—	—	—	—	—	—	No	No	—	—	—	—
Troy Vines	Vines Portable Plant	4103607	TX	—	—	—	—	—	—	—	—	No	No	—	—	—	—
Troy Vines	Vines Sand and Gravel	4103348	TX	—	—	—	—	—	—	—	—	No	No	—	—	—	—

EX-99.1

Exhibit 99.1

Report of Independent Registered Public Accounting Firm

To the Members and Board of Directors

Summit Materials, LLC:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Summit Materials, LLC and subsidiaries (the Company) as of January 2, 2021 and December 28, 2019, the related consolidated statements of operations, comprehensive income, changes in members’ interest, and cash flows for each of the fiscal years ended January 2, 2021, December 28, 2019, and December 29, 2018 and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of January 2, 2021 and December 28, 2019, and the results of its operations and its cash flows for each of the fiscal years ended January 2, 2021, December 28, 2019, and December 29, 2018 in conformity with U.S. generally accepted accounting principles.

Change in Accounting Principle

As discussed in Note 1 to the consolidated financial statements, the Company has changed its method of accounting for leases as of December 30, 2018 due to the adoption of Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 842, Leases.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Revenue recognized over time on paving and related services contracts

As discussed in Notes 1 and 4 to the consolidated financial statements, the Company earns revenue from providing paving and related services, which are recognized over time as performance obligations are satisfied. The Company recognizes paving and related services revenue as services are rendered based on the proportion of costs incurred to date relative to total estimated costs to complete. For the year ended January 2, 2021, the Company recognized service revenue related to paving and related services of $310 million.

1

We identified the assessment of revenue recognized over time on paving and related services contracts in-progress as a critical audit matter. Paving and related services contracts in-progress required challenging auditor judgment to evaluate the forecast of remaining costs to complete, which had a significant impact on the amount of revenue recognized during the period.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s revenue recognition process related to paving and related services, including controls over the forecasting of estimated costs to complete. We selected a sample of in-progress paving and related services costs incurred and compared the amounts and dates incurred to underlying supporting documentation. We analyzed prior year end in-progress contracts that were completed in the current year to evaluate the Company’s ability to accurately estimate paving and related services contract forecasted costs to complete. For certain contracts, we evaluated the estimated costs to complete by performing project manager interviews to obtain an understanding of the facts and circumstances of each selected contract, including changes in scope to the contract, additional estimated costs to complete, and expected completion date. For certain contracts, we also confirmed with the Company’s customers that the original contract amount, terms of the contact, modifications and billings to the customer were accurate.

/s/ KPMG LLP

We have served as the Company’s auditor since 2012.

Denver, Colorado

February 24, 2021

2

SUMMIT MATERIALS, LLC AND SUBSIDIARIES

Consolidated Balance Sheets

January 2, 2021 and December 28, 2019

(In thousands) 

	2020		2019
Assets
Current assets:
Cash and cash equivalents	$	418,181	$	311,319
Accounts receivable, net	254,696		253,256
Costs and estimated earnings in excess of billings	8,666		13,088
Inventories	200,308		204,787
Other current assets	11,428		13,831
Total current assets	893,279		796,281
Property, plant and equipment	1,850,169		1,747,449
Goodwill	1,202,291		1,200,699
Intangible assets	47,852		23,498
Operating lease right-of-use assets	28,543		32,777
Other assets	55,000		55,519
Total assets	$	4,077,134	$	3,856,223
Liabilities and Members' Interest
Current liabilities:
Current portion of debt	$	6,354	$	7,942
Current portion of acquisition-related liabilities	7,827		30,200
Accounts payable	121,422		116,970
Accrued expenses	160,801		120,237
Current operating lease liabilities	8,188		8,427
Billings in excess of costs and estimated earnings	16,499		13,864
Total current liabilities	321,091		297,640
Long-term debt	1,892,347		1,851,057
Acquisition-related liabilities	12,246		17,666
Noncurrent operating lease liabilities	21,500		25,381
Other noncurrent liabilities	167,182		151,329
Total liabilities	2,414,366		2,343,073
Commitments and contingencies (see note 15)
Members' equity	1,459,211		1,432,718
Accumulated earnings	222,140		101,403
Accumulated other comprehensive loss	(18,583)		(20,971)
Total members' interest	1,662,768		1,513,150
Total liabilities and members' interest	$	4,077,134	$	3,856,223

See accompanying notes to consolidated financial statements.

3

SUMMIT MATERIALS, LLC AND SUBSIDIARIES

Consolidated Statements of Operations

Years ended January 2, 2021, December 28, 2019 and December 29, 2018

(In thousands)

	2020		2019		2018
Revenue:
Product	$	1,824,679	$	1,724,462	$	1,600,159
Service	310,075		306,185		309,099
Net revenue	2,134,754		2,030,647		1,909,258
Delivery and subcontract revenue	197,697		191,493		191,744
Total revenue	2,332,451		2,222,140		2,101,002
Cost of revenue (excluding items shown separately below):
Product	1,166,266		1,116,662		1,058,544
Service	220,033		218,177		225,491
Net cost of revenue	1,386,299		1,334,839		1,284,035
Delivery and subcontract cost	197,697		191,493		191,744
Total cost of revenue	1,583,996		1,526,332		1,475,779
General and administrative expenses	309,531		275,813		270,402
Depreciation, depletion, amortization and accretion	221,320		217,102		204,910
Gain on sale of property, plant and equipment	(7,569)		(10,665)		(12,555)
Operating income	225,173		213,558		162,466
Interest expense	103,291		115,988		115,831
Loss on debt financings	4,064		14,565		149
Gain on sale of business	—		—		(12,108)
Other income, net	(3,982)		(11,977)		(15,516)
Income from operations before taxes	121,800		94,982		74,110
Income tax expense (benefit)	1,063		6,385		10,273
Net income attributable to Summit LLC	$	120,737	$	88,597	$	63,837

See accompanying notes to consolidated financial statements.

4

SUMMIT MATERIALS, LLC AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

Years ended January 2, 2021, December 28, 2019, and December 29, 2018

(In thousands)

	2020		2019		2018
Net income	$	120,737	$	88,597	$	63,837
Other comprehensive income (loss):
Postretirement liability adjustment	(2,229)		(1,925)		1,661
Foreign currency translation adjustment	4,617		4,716		(9,348)
Income (loss) on cash flow hedges	—		(146)		1,206
Other comprehensive income (loss)	2,388		2,645		(6,481)
Comprehensive income attributable to Summit LLC	$	123,125	$	91,242	$	57,356

See accompanying notes to consolidated financial statements.

5

SUMMIT MATERIALS, LLC AND SUBSIDIARIES

Consolidated Statements of Cash Flows

Years ended January 2, 2021, December 28, 2019, and December 29, 2018

(In thousands)

	2020		2019		2018
Cash flow from operating activities:
Net income	$	120,737	$	88,597	$	63,837
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation, depletion, amortization and accretion	227,513		222,341		208,055
Share-based compensation expense	28,857		20,403		25,378
Net gain on asset disposals	(7,548)		(10,294)		(30,093)
Non-cash loss on debt financings	4,064		2,850		—
Change in deferred tax asset, net	(2,862)		6,350		9,729
Other	619		(2,135)		2,018
Decrease (increase) in operating assets, net of acquisitions and dispositions:
Accounts receivable, net	5,467		(37,049)		(5,796)
Inventories	3,339		8,582		(11,598)
Costs and estimated earnings in excess of billings	4,535		5,558		(8,702)
Other current assets	472		5,465		(7,159)
Other assets	10,264		5,085		(106)
(Decrease) increase in operating liabilities, net of acquisitions and dispositions:
Accounts payable	(4,231)		18,208		(13,989)
Accrued expenses	15,476		8,335		(16,653)
Billings in excess of costs and estimated earnings	2,616		1,988		(5,052)
Other liabilities	(449)		(7,100)		(501)
Net cash provided by operating activities	408,869		337,184		209,368
Cash flow from investing activities:
Acquisitions, net of cash acquired	(123,477)		(5,392)		(246,017)
Purchases of property, plant and equipment	(177,249)		(177,495)		(220,685)
Proceeds from the sale of property, plant and equipment	14,018		21,173		21,635
Proceeds from sale of business	—		—		21,564
Other	1,121		(1,095)		3,804
Net cash used in investing activities	(285,587)		(162,809)		(419,699)
Cash flow from financing activities:
Capital contributions by member	1,043		19,076		15,615
Proceeds from debt issuances	700,000		300,000		64,500
Debt issuance costs	(9,605)		(6,312)		(550)
Payments on debt	(674,045)		(270,229)		(85,042)
Payments on acquisition-related liabilities	(30,757)		(31,383)		(34,004)
Distributions	(2,500)		(2,500)		(2,569)
Other	(907)		(502)		(1,943)
Net cash (used in) provided by financing activities	(16,771)		8,150		(43,993)
Impact of foreign currency on cash	351		286		(724)
Net increase in cash	106,862		182,811		(255,048)
Cash and cash equivalents – beginning of period	311,319		128,508		383,556
Cash and cash equivalents – end of period	$	418,181	$	311,319	$	128,508

See accompanying notes to consolidated financial statements.

6

SUMMIT MATERIALS, LLC AND SUBSIDIARIES

Consolidated Statements of Changes in Members’ Interest

Years ended January 2, 2021, December 28, 2019 and December 29, 2018

(In thousands)

	Total Member’s Interest
					Accumulated
					other		Total
	Member’s		Accumulated		comprehensive		member’s
	equity		deficit		loss		interest
Balance — December 30, 2017	$	1,359,760	$	(51,031)	$	(17,135)	$	1,291,594
Net contributed capital	15,615		—		—		15,615
Net income	—		63,837		—		63,837
Other comprehensive loss	—		—		(6,481)		(6,481)
Distributions	(2,569)		—		—		(2,569)
Share-based compensation	25,378		—		—		25,378
Shares redeemed to settle taxes and other	(1,943)		—		—		(1,943)
Balance — December 29, 2018	$	1,396,241	$	12,806	$	(23,616)	$	1,385,431
Net contributed capital	19,076		—		—		19,076
Net income	—		88,597		—		88,597
Other comprehensive income	—		—		2,645		2,645
Distributions	(2,500)		—		—		(2,500)
Share-based compensation	20,403		—		—		20,403
Shares redeemed to settle taxes and other	(502)		—		—		(502)
Balance — December 28, 2019	$	1,432,718	$	101,403	$	(20,971)	$	1,513,150
Net contributed capital	1,043		—		—		1,043
Net income	—		120,737		—		120,737
Other comprehensive income	—		—		2,388		2,388
Distributions	(2,500)		—		—		(2,500)
Share-based compensation	28,857		—		—		28,857
Shares redeemed to settle taxes and other	(907)		—		—		(907)
Balance — January 2, 2021	$	1,459,211	$	222,140	$	(18,583)	$	1,662,768

See accompanying notes to consolidated financial statements. 

7

SUMMIT MATERIALS, LLC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in tables in thousands, unless otherwise noted)

(1) Summary of Organization and Significant Accounting Policies

Summit Materials, LLC (“Summit LLC” and, together with its subsidiaries, 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, 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 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”) 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.

Principles of Consolidation–The consolidated financial statements include the accounts of Summit LLC and its majority owned subsidiaries. All intercompany balances and transactions have been eliminated. The Company attributes consolidated member’s interest and net income separately to the controlling and noncontrolling interests. Noncontrolling interests in consolidated subsidiaries represent a 20% ownership in Ohio Valley Asphalt, LLC and, prior to the initial public offering (“IPO”) and concurrent purchase of the noncontrolling interests Continental Cement Company, L.L.C. (“Continental Cement”), a 30% redeemable ownership in Continental Cement. The Company accounts for investments in entities for which it has an ownership of 20% to 50% using the equity method of accounting.

The Company’s fiscal year is based on a 52-53 week year with each quarter composed of 13 weeks ending on a Saturday. The year ended January 2, 2021 was a 53-week year.

Use of Estimates— Preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles (“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.

Business and Credit Concentrations—The Company’s operations are conducted primarily across 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

8

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 2020, 2019 or 2018.

Accounts Receivable—Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the collectability of individual accounts. In establishing the allowance, management considers historical losses adjusted to take into account current market conditions and its customers’ financial condition, the amount of receivables in dispute, the current receivables aging and current payment terms. Balances that remain outstanding after reasonable collection efforts are exercised are written off through a charge to the valuation allowance.

The balances billed but not paid by customers, pursuant to retainage provisions included in contracts, are generally due upon completion of the contracts.

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.

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. Revenue for product sales is recognized when evidence of an arrangement exists and when control passes, which generally is when the product is shipped.

Aggregates and cement products are sold point-of-sale through purchase orders. When the product is sold on account, collectability typically occurs 30 to 60 days after the sale. Revenue is recognized when cash is received from the customer at the point of sale or when the products are delivered or collected on site. There are no other timing implications that will create a contract asset or liability, and contract modifications are unlikely given the timing and nature of the transaction. Material sales are likely to have multiple performance obligations if the product is sold with delivery. In these instances, delivery most often occurs on the same day as the control of the product transfers to the customer. As a result, even in the case of multiple performance obligations, the performance obligations are satisfied concurrently and revenue is recognized simultaneously.

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.

Collectability of service contracts is due reasonably after certain milestones in the contract are performed. Milestones vary by project, but are typically calculated using monthly progress based on the percentage of completion or a customer’s engineer review of progress. The majority of the time, collection occurs within 90 days of billing and cash is received within the same fiscal year as services performed. On most projects, the customer will withhold a portion of the invoice for retainage, which may last longer than a year depending on the job.

Revenue derived from paving and related services is recognized over time based on the proportion of costs incurred to date relative to the total estimated costs at completion, which approximates progress towards completion. Under this 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. The majority of our construction service contracts, and therefore, revenue, are opened and completed within one year, with most activity during the spring, summer and fall. 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.

9

The actual cost to total estimated cost 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 year ended January 2, 2021.

We recognize claims when the amount of the claim can be estimated reliably and it is legally enforceable. In evaluating these criteria, we consider the contractual basis for the claim, the cause of any additional costs incurred, the reasonableness of those costs and the objective evidence available to support the claim.

When the contract includes variable consideration, we estimate the amount of consideration to which we will be entitled in exchange for transferring the promised goods or services to a customer. The amount of estimated variable consideration included in the transaction price is the amount for which it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Types of variable consideration include, but are not limited to, liquidated damages and other performance penalties and production and placement bonuses.

The majority of contract modifications relate to the original contract and are often an extension of the original performance obligation. Predominately, modifications are not distinct from the terms in the original contract; therefore, they are considered part of a single performance obligation. We account for the modification using a cumulative catch-up adjustment. However, there are instances where goods or services in a modification are distinct from those transferred prior to the modification. In these situations, we account for the modifications as either a separate contract or prospectively depending on the facts and circumstances of the modification.

Generally, construction contracts contain mobilization costs which are categorized as costs to fulfill a contract. These costs are excluded from any measure of progress toward contract fulfillment. These costs do not result in the transfer of control of a good or service to the customer and are amortized over the life of the contract.

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.

Inventories—Inventories consist of stone that has been removed from quarries and processed for future sale, cement, raw materials and finished concrete blocks. Inventories are valued at the lower of cost or net realizable value and are accounted for on a first-in first-out basis or an average cost basis. If items become obsolete or otherwise unusable or if quantities exceed what is projected to be sold within a reasonable period of time, they will be charged to costs of revenue in the period that the items are designated as obsolete or excess inventory. Stripping costs are costs of removing overburden and waste material to access aggregate materials and are expensed as incurred.

Property, Plant and Equipment, net—Property, plant and equipment are recorded at cost, less accumulated depreciation, depletion and amortization. Expenditures for additions and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Repair and maintenance costs that do not substantially expand productive capacity or extend the life of property, plant and equipment are expensed as incurred.

Landfill airspace is included in property, plant and equipment at cost and is amortized based on the portion of the airspace used during the period compared to the gross estimated value of available airspace, which is updated periodically as circumstances dictate. Management reassesses the landfill airspace capacity with any changes in value recorded in cost of revenue. Capitalized landfill costs include expenditures for the acquisition of land and related airspace, engineering and permitting costs, cell construction costs and direct site improvement costs.

Upon disposal of an asset, the cost and related accumulated depreciation are removed from the Company’s accounts and any gain or loss is included in general and administrative expenses.

10

The Company reviews the carrying value of property, plant and equipment for impairment whenever events or circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. Such indicators may include, among others, deterioration in general economic conditions, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows or a trend of negative or declining cash flows over multiple periods.

Property, plant and equipment is tested for impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. As a result, the property, plant and equipment impairment test is at a significantly lower level than the level at which goodwill is tested for impairment. In markets where the Company does not produce downstream products, such as ready-mix concrete, asphalt paving mix and paving and related services, the lowest level of largely independent identifiable cash flows is at the individual aggregates operation or a group of aggregates operations collectively serving a local market or the cement operations. Conversely, in vertically-integrated markets, the cash flows of the downstream and upstream businesses are not largely independently identifiable and the vertically-integrated operations are considered the lowest level of largely independent identifiable cash flows.

Aggregates mineral bearing land and interests are included in property, plant and equipment. When leased mineral interests are acquired during a business combination, they are valued using an excess earnings approach for the life of the proven and probable reserves. Depletion expense is recorded using a units of production methodology.

Accrued Mining and Landfill Reclamation—The mining reclamation reserve and financial commitments for landfill closure and post-closure activities are based on management’s estimate of future cost requirements to reclaim property at both currently operating and closed sites. Estimates of these obligations have been developed based on management’s interpretation of current requirements and proposed regulatory changes and are intended to approximate fair value. Costs are estimated in current dollars, inflated until the expected time of payment, and then discounted back to present value using a credit-adjusted risk-free rate on obligations of similar maturity, adjusted to reflect the Company’s credit rating. Changes in the credit-adjusted risk-free rate do not change recorded liabilities. However, subsequent increases in the recognized obligations are measured using a current credit-adjusted risk-free rate. Decreases in the recognized obligations are measured at the initial credit-adjusted risk-free rate.

Significant changes in inflation rates, or the amount or, timing of future cost estimates typically result in both (1) a current adjustment to the recorded liability (and corresponding adjustment to the asset) and (2) a change in accretion of the liability and depreciation of the asset to be recorded prospectively over the remaining capacity of the unmined quarry or landfill.

Goodwill—Goodwill represents the purchase price paid in excess of the fair value of net tangible and intangible assets acquired. Goodwill recorded in connection with the Company’s acquisitions is primarily attributable to the expected profitability, assembled workforces of the acquired businesses and the synergies expected to arise after the Company’s acquisition of those businesses. Goodwill is not amortized, but is tested annually for impairment as of the first day of the fourth quarter and at any time that events or circumstances indicate that goodwill may be impaired. A qualitative approach may first be applied to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If, as a result of the qualitative assessment, it is determined that an impairment is more likely than not, the two-step quantitative impairment test is then performed, otherwise further analysis is not required. The two-step impairment test first identifies potential goodwill impairment for each reporting unit and then, if necessary, measures the amount of the impairment loss.

Income Taxes—As a limited liability company, the Company’s federal and state income tax attributes are generally passed to its member. However, certain subsidiaries, or subsidiary groups, of the Company are taxable entities subject to income taxes in the United States and Canada, the provisions for which are included in the consolidated financial statements. Significant judgments and estimates are required in the determination of the consolidated income tax expense.

The Company’s deferred income tax assets and liabilities are computed for differences between the tax basis and financial statement amounts that will result in taxable or deductible amounts in the future. The computed deferred balances are based on enacted tax laws and applicable rates for the periods in which the differences are expected to affect taxable income. A valuation allowance is recognized for deferred tax assets if it is more likely than not that some portion or all of the net deferred tax assets will not be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines it would be able to realize its deferred tax assets for which a

11

valuation allowance had been recorded then an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

The Company evaluates the tax positions taken on income tax returns that remain open and positions expected to be taken on the current year tax returns to identify uncertain tax positions. Unrecognized tax benefits on uncertain tax positions are recorded on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is more than 50 percent likely to be realized is recognized. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense (benefit).

Prior Year Reclassifications — We have reclassified transaction costs of $2.2 million and $4.2 million for the years ended 2019 and 2018, respectively, from a separate line item included in operating income to general and administrative expenses to conform to the current year presentation. In addition, we reclassified $10.7 million and $12.6 million for the years ended 2019 and 2018, respectively, of gain on sale of property, plant and equipment from general and administrative expenses to its own line item included within operating income, also to conform to the current year presentation.

New Accounting Standards — In February 2016, the Financial Accounting Standards Board FASB ("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 $36.8 million of operating lease right-of-use assets and $36.8 million operating lease liabilities. The standard had no material impact on our statements of operations and 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.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which reduces the accounting complexity of implementing a cloud computing service arrangement. The ASU aligns the capitalization of implementation costs among hosting arrangements and costs incurred to develop internal-use software. We adopted this ASU in the first quarter of 2020 and the adoption of this ASU did not have a material impact on the consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework Changes to The Disclosure Requirements for Defined Benefits Plans, which modifies the disclosure requirements of employer-sponsored defined benefit and other postretirement benefits plans. The ASU is effective for fiscal years beginning after December 15, 2020 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) Acquisitions

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. The purchase price allocation for the 2020 acquisitions has not yet been finalized due to the recent timing of the acquisitions. The following table summarizes the Company’s acquisitions by region and year:

12

	2020	2019	2018
West	2	2	5
East (1)	1	—	7

______________________

(1)     In addition, the Company acquired certain assets of a small ready-mix concrete operation in the second quarter of 2018.

The table below summarizes aggregated information regarding the fair values of the assets acquired and liabilities assumed as of the respective acquisition dates.

	2020		2019
Financial assets	$	8,696	$	—
Inventories	2,856		52
Property, plant and equipment	130,042		3,542
Other assets	2,790		—
Financial liabilities	(4,469)		(36)
Other long-term liabilities	(16,069)		—
Net assets acquired	123,846		3,558
Goodwill	—		1,834
Purchase price	123,846		5,392
Other	(369)		—
Net cash paid for acquisitions	$	123,477	$	5,392

Acquisition-Related Liabilities—A number of acquisition-related liabilities have been recorded subject to terms in the relevant purchase agreements, including deferred consideration and noncompete payments. Noncompete payments have been accrued where certain former owners of newly acquired companies have entered into standard noncompete arrangements. Subject to terms and conditions stated in these noncompete agreements, payments are generally made over a five-year period. Deferred consideration is purchase price consideration paid in the future as agreed to in the purchase agreement and is not contingent on future events. Deferred consideration is generally scheduled to be paid in years ranging from 5 to 20 years in annual installments. The remaining payments due under these noncompete and deferred consideration agreements are as follows:

2021	$	7,205
2022	3,411
2023	2,657
2024	2,620
2025	2,567
Thereafter	4,454
Total scheduled payments	22,914
Present value adjustments	(4,704)
Total noncompete obligations and deferred consideration	$	18,210

Accretion on the deferred consideration and noncompete obligations is recorded in interest expense. 

(3) Goodwill

As of January 2, 2021, the Company had 11 reporting units with goodwill for which the annual goodwill impairment test was completed. We perform the annual impairment test on the first day of the fourth quarter each year. We initially perform a qualitative analysis. As a result of this analysis, it was determined that it is more likely than not that the fair value of seven reporting units were greater than its carrying value. For the remaining reporting units we perform a two-step quantitative analysis. Step 1 of that analysis compares the estimated the fair value of the reporting units using an income approach (i.e., a discounted cash flow technique) and a market approach to the carrying value of the reporting unit. If the estimated fair value

13

exceeds its carrying value, the goodwill of the reporting unit is not considered impaired. If the carrying value of the reporting unit exceeds its fair value, we proceed to the second step to measure the amount of potential impairment loss. Based on this analysis, it was determined that the reporting units’ fair values were greater than their carrying values and no impairment charges were recognized in 2020. The accumulated impairment charges recognized in periods prior to 2018 totaled $68.2 million.

These estimates of a reporting unit’s fair value involve significant management estimates and assumptions, including but not limited to sales prices of similar assets, assumptions related to future profitability, cash flows, and discount rates. These estimates are based upon historical trends, management’s knowledge and experience and overall economic factors, including projections of future earnings potential. Developing discounted future cash flow estimates in applying the income approach required management to evaluate its intermediate to longer-term strategies, including, but not limited to, estimates about revenue growth, operating margins, capital requirements, inflation and working capital management. The development of appropriate rates to discount the estimated future cash flows required the selection of risk premiums, which can materially affect the present value of estimated future cash flows.

The following table presents goodwill by reportable segments and in total:

	West		East		Cement		Total
Balance—December 29, 2018	$	581,567	$	406,805	$	204,656	$	1,193,028
Acquisitions	1,657		3,621		—		5,278
Foreign currency translation adjustments	2,393		—		—		2,393
Balance—December 28, 2019	$	585,617	$	410,426	$	204,656	$	1,200,699
Acquisitions (1)	19		—		—		19
Foreign currency translation adjustments	1,573		—		—		1,573
Balance—January 2, 2021	$	587,209	$	410,426	$	204,656	$	1,202,291

______________________

(1)Reflects goodwill from 2020 acquisitions and working capital adjustments from prior year acquisitions.

(4) 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, and is recognized based on the proportion of costs incurred to date relative to the total estimated costs at completion. The majority of our construction service contracts, and therefore revenue, are opened and completed within one year, with the most activity during the spring, summer and fall.

Revenue by product for the years ended January 2, 2021, December 28, 2019 and December 29, 2018 consisted of the following:

	2020		2019		2018
Revenue by product*:
Aggregates	$	498,007	$	469,670	$	373,824
Cement	257,629		266,235		258,876
Ready-mix concrete	668,060		607,622		584,114
Asphalt	349,350		330,750		301,247
Paving and related services	381,430		360,234		379,540
Other	177,975		187,629		203,401
Total revenue	$	2,332,451	$	2,222,140	$	2,101,002

______________________

*Revenue from the liquid asphalt terminals is included in asphalt revenue.

The following table outlines the significant changes in contract assets and contract liability balances from December 28, 2019 to January 2, 2021. Also included in the table is the net change in the estimate as a percentage of aggregate revenue for such contracts: 

14

	Costs and estimated		Billings in excess
	earnings in		of costs and
	excess of billings		estimated earnings
Balance—December 28, 2019	$	13,088	$	13,864
Changes in revenue billed, contract price or cost estimates	(4,535)		2,616
Other	113		19
Balance—January 2, 2021	$	8,666	$	16,499

Accounts receivable, net consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Trade accounts receivable	$	191,871	$	191,672
Construction contract receivables	47,179		47,966
Retention receivables	18,824		17,808
Receivables from related parties	1,339		1,596
Accounts receivable	259,213		259,042
Less: Allowance for doubtful accounts	(4,517)		(5,786)
Accounts receivable, net	$	254,696	$	253,256

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 one year.

(5) Inventories

Inventories consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Aggregate stockpiles	$	137,938	$	140,461
Finished goods	32,993		33,023
Work in process	9,281		7,664
Raw materials	20,096		23,639
Total	$	200,308	$	204,787

(6) Property, Plant and Equipment, net and Intangibles, net

Property, plant and equipment, net consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Mineral bearing land and leased interests	$	468,966	$	333,024
Land (non-mineral bearing)	197,432		182,065
Buildings and improvements	181,198		178,088
Plants, machinery and equipment	1,397,410		1,318,512
Mobile equipment and barges	543,133		501,809
Truck and auto fleet	56,163		54,838
Landfill airspace and improvements	52,202		49,766
Office equipment	45,942		43,155
Construction in progress	40,648		42,007
Property, plant and equipment	2,983,094		2,703,264
Less accumulated depreciation, depletion and amortization	(1,132,925)		(955,815)
Property, plant and equipment, net	$	1,850,169	$	1,747,449

15

Depreciation on property, plant and equipment, including assets subject to capital leases, is generally computed on a straight-line basis. Depletion of mineral reserves and leased mineral interests are computed based on the portion of the reserves used during the period compared to the gross estimated value of proven and probable reserves, which is updated periodically as circumstances dictate. Leasehold improvements are amortized on a straight-line basis over the lesser of the asset’s useful life or the remaining lease term. The estimated useful lives are generally as follows:

Buildings and improvements	10 - 30 years
Plant, machinery and equipment	7 - 20 years
Office equipment	3 - 7 years
Truck and auto fleet	5 - 8 years
Mobile equipment and barges	6 - 8 years
Landfill airspace and improvements	10 - 30 years
Other	4 - 20 years

Depreciation, depletion and amortization expense of property, plant and equipment was $195.3 million, $196.8 million and $199.6 million in the years ended January 2, 2021, December 28, 2019 and December 29, 2018, respectively.

Property, plant and equipment at January 2, 2021 and December 28, 2019 included $92.7 million and $82.7 million, respectively, of finance leases for certain equipment and a building with accumulated amortization of $32.8 million and $24.9 million, respectively. The equipment leases generally have terms of less than five years and the building lease had an original term of 30 years. Approximately $24.6 million and $16.0 million of the future obligations associated with the finance leases are included in accrued expenses as of January 2, 2021 and December 28, 2019, respectively, and the present value of the remaining finance lease payments, $31.7 million and $40.4 million, respectively, is included in other noncurrent liabilities on the consolidated balance sheets. Future minimum rental commitments under long-term capital leases are $26.7 million, $18.6 million, $7.1 million, $3.2 million, and $2.6 million for the years ended 2021, 2022, 2023, 2024 and 2025, respectively.

Assets are assessed for impairment charges when identified for disposition. The net gain from asset dispositions recognized in general and administrative expenses in fiscal years 2020, 2019 and 2018 was $7.6 million, $10.7 million and $12.6 million, respectively. No material impairment charges have been recognized on assets held for use in fiscal 2020, 2019 or 2018.

Intangible Assets—The Company’s intangible assets subject to amortization are primarily composed of operating permits, mineral lease agreements and reserve rights. Operating permits relate to permitting and zoning rights acquired outside of a business combination. 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 or permits, or computed based on the portion of the reserves used during the period compared to the gross estimated value of proven and probable reserves. The following table shows intangible assets by type and in total:

	January 2, 2021						December 28, 2019
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Operating permits	$	33,671	$	(1,207)	$	32,464	$	6,609	$	(290)	$	6,319
Mineral leases	19,225		(7,571)		11,654		19,064		(6,408)		12,656
Reserve rights	6,234		(2,504)		3,730		6,234		(2,248)		3,986
Trade names	—		—		—		1,000		(958)		42
Other	586		(582)		4		957		(462)		495
Total intangible assets	$	59,716	$	(11,864)	$	47,852	$	33,864	$	(10,366)	$	23,498

Amortization expense in fiscal 2020, 2019 and 2018 was $2.7 million, $2.1 million and $1.5 million, respectively. The estimated amortization expense for intangible assets for each of the next five years and thereafter is as follows:

16

2021	$	3,129
2022	3,136
2023	3,003
2024	2,908
2025	2,863
Thereafter	32,813
Total	$	47,852

(7) Accrued Expenses

Accrued expenses consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Interest	$	21,860	$	26,892
Payroll and benefits	46,026		29,356
Finance lease obligations	24,601		16,007
Insurance	18,355		14,968
Non-income taxes	15,900		7,898
Deferred asset purchase payments	9,749		3,525
Professional fees	828		902
Other (1)	23,482		20,689
Total	$	160,801	$	120,237

______________________

(1)Consists primarily of current portion of asset retirement obligations and miscellaneous accruals.

(8) Debt

Debt consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Term Loan, due 2024:
$616.3 million and $624.3 million, net of $0.9 million and $1.1 million discount at January 2, 2021 and December 28, 2019, respectively	$	615,425	$	623,140
6 1⁄8% Senior Notes, due 2023:
$650.0 million, net of $0.9 million discount at December 28, 2019	—		649,133
5 1⁄8% Senior Notes, due 2025	300,000		300,000
6 1⁄2% Senior Notes, due 2027	300,000		300,000
5 1⁄4% Senior Notes, due 2029	700,000		—
Total	1,915,425		1,872,273
Current portion of long-term debt	6,354		7,942
Long-term debt	$	1,909,071	$	1,864,331

The contractual payments of long-term debt, including current maturities, for the five years subsequent to January 2, 2021, are as follows:

17

2021	$	6,354
2022	6,354
2023	6,354
2024	597,252
2025	300,000
Thereafter	1,000,000
Total	1,916,314
Less: Original issue net discount	(889)
Less: Capitalized loan costs	(16,724)
Total debt	$	1,898,701

Senior Notes—On August 11, 2020, Summit LLC and Summit Finance (together, the “Issuers”) issued $700.0 million in aggregate principal amount of 5.250% senior notes due January 15, 2029 (the “2029 Notes”). The 2029 Notes were issued at 100.0% of their par value with proceeds of $690.4 million, net of related fees and expenses. The 2029 Notes were issued under an indenture dated August 11, 2020 (the "2020 Indenture"). The 2020 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 2020 Indenture also contains customary events of default. Interest on the 2029 Notes is payable semi-annually on January 15 and July 15 of each year commencing on January 15, 2021.

In August 2020, using the proceeds from the 2029 Notes, all of the outstanding $650.0 million 6.125% senior notes due 2023 (the “2023 Notes”) were redeemed at a price equal to par and the indenture under which the 2023 Notes were issued was satisfied and discharged. As a result of the extinguishment, charges of $4.1 million were recognized in the quarter ended September 26, 2020, which included charges of $0.8 million for the write-off of original issue discount and $3.3 million for the write-off of deferred financing fees.

On March 15, 2019, the Issuers issued $300.0 million in aggregate principal amount of 6.500% senior notes due March 15, 2027 (the “2027 Notes”). The 2027 Notes were issued at 100.0% of their par value with proceeds of $296.3 million, net of related fees and expenses. The 2027 Notes were issued under an indenture dated March 25, 2019, the terms of which are generally consistent with the 2020 Indenture. 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 $250.0 million 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 $14.6 million were recognized in the quarter ended March 30, 2019, which included charges of $11.7 million for the applicable redemption premium and $2.9 million for the write-off of deferred financing fees.

In 2017, the Issuers issued $300.0 million of 5.125% senior notes due June 1, 2025 (the “2025 Notes”). The 2025 Notes were issued at 100.0% of their par value with proceeds of $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 2020 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 $650.0 million of 6.125% senior notes due July 2023 (the “2023 Notes” and collectively with the 2022 Notes and the 2027 Notes, the “Senior Notes”). Of the aggregate $650.0 million of 2023 Notes, $350.0 million were issued at par and $300.0 million were issued at 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 2020 Indenture. The 2023 Notes were paid in full in August 2020 as noted above.

As of January 2, 2021 and December 28, 2019, 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 $650.0 million and revolving credit commitments in an aggregate amount of $345.0 million (the “Senior Secured Credit Facilities”). Under the Senior Secured Credit Facilities, required principal repayments of 0.25% of the refinanced

18

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 $345.0 million and extended the maturity date of the Credit Agreement with respect to the revolving credit commitments to February 25, 2024.

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 0.50%, (b) the prime rate of Bank of America, N.A. and (c) LIBOR plus 1.00%, plus an applicable margin of 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 3.00% for LIBOR rate loans.

There were no outstanding borrowings under the revolving credit facility as of January 2, 2021 or December 28, 2019. As of January 2, 2021, we had remaining borrowing capacity of $329.1 million under the revolving credit facility, which is net of $15.9 million of outstanding letters of credit. The outstanding letters of credit are renewed annually and support required bonding on construction projects 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 4.75:1.0 as of each quarter-end. As of January 2, 2021 and December 28, 2019, Summit LLC was in compliance with all financial covenants under the Credit Agreement.

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.

The following table presents the activity for the deferred financing fees for the years ended January 2, 2021 and December 28, 2019: 

	Deferred financing fees
Balance—December 29, 2018	$	15,475
Loan origination fees	6,312
Amortization	(3,501)
Write off of deferred financing fees	(2,850)
Balance—December 28, 2019	$	15,436
Loan origination fees	9,605
Amortization	(3,336)
Write off of deferred financing fees	(3,338)
Balance—January 2, 2021	$	18,367

Other—On January 15, 2015, the Company’s wholly-owned subsidiary in British Columbia, Canada entered into an agreement with HSBC for a (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 0.20%, (ii) $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 0.90% and (iii) $0.4 million CAD revolving credit commitment to provide guarantees on behalf of that subsidiary. There were no amounts outstanding under this agreement as of January 2, 2021 or December 28, 2019.

(9) Income Taxes

Summit LLC is a limited liability company and passes its tax attributes for federal and state tax purposes to its member and is generally not subject to federal or state income tax. However, certain subsidiaries, or subsidiary groups, file federal, state, and Canadian income tax returns due to their status as C corporations or laws within that jurisdiction. The provision for income taxes is primarily composed of federal, state and local income taxes for the subsidiary entities that have C corporation status.

For the years ended January 2, 2021, December 28, 2019 and December 29, 2018, income taxes consisted of the following:

19

	2020		2019		2018
Provision for income taxes:
Current	$	3,827	$	69	$	463
Deferred	(2,764)		6,316		9,810
Income tax expense (benefit)	$	1,063	$	6,385	$	10,273

The effective tax rate on pre-tax income differs from the U.S. statutory rate of 21% for 2020, 2019 and 2018, respectively, due to the following:

	2020		2019		2018
Income tax expense (benefit) at federal statutory tax rate	$	25,577	$	19,947	$	15,563
Less: Income tax benefit at federal statutory tax rate for LLC entities	(17,647)		(15,387)		(13,863)
State and local income taxes	2,073		1,680		1,614
Permanent differences	2,479		13		(1,194)
Effective tax rate change	681		(725)		(1,148)
Unrecognized tax benefits	(11,525)		5,038		6,487
Valuation allowance	—		(2,478)		2,586
Other	(575)		(1,703)		228
Income tax benefit	$	1,063	$	6,385	$	10,273

The following table summarizes the components of the net deferred income tax asset (liability) as January 2, 2021 and December 28, 2019:

	2020		2019
Deferred tax (liabilities) assets:
Accelerated depreciation	$	(70,588)	$	(60,216)
Net operating loss	26,929		18,036
Investment in limited partnership	(18,931)		(17,686)
Net intangible assets	(3,264)		(2,554)
Mining reclamation reserve	1,652		723
Working capital (e.g., accrued compensation, prepaid assets)	1,590		1,366
Interest expense limitation carryforward	—		2,691
Net deferred tax liabilities	(62,612)		(57,640)
Less valuation allowance	(1,675)		(1,675)
Net deferred tax liability	$	(64,287)	$	(59,315)

The net deferred income tax liability as of January 2, 2021 and December 28, 2019, are included in other noncurrent liabilities on the consolidated balance sheets. As of January 2, 2021, Summit LLC had federal net operating loss carryforwards of $120.3 million, which expire between 2030 and 2037. 

Valuation Allowance—The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible (including the effect of available carryback and carryforward periods) and tax-planning strategies. The deferred income tax asset related to net operating losses resides with two separate tax paying subsidiaries (or subsidiary groups) of Summit LLC. These tax payers have historically generated taxable income and forecast to continue generating taxable income; however, the use of a portion of the net operating may be limited.

20

	2020		2019
Valuation Allowance:
Beginning balance	$	(1,675)	$	(4,261)
Loss carryforwards	—		—
Current year decreases (increases) from operations	—		2,586
Release of valuation allowance and other	—		—
Ending balance	$	(1,675)	$	(1,675)

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“TCJA”) was enacted. Among other things, the TCJA, beginning January 1, 2018, reduced the federal statutory rate from 35% to 21% and extended bonus depreciation provisions. In addition, the TCJA prescribes the application of net operating loss carryforwards generated in 2018 and beyond will be limited, 100% asset expensing will be allowed through 2022 and begin to phase out in 2023, and the amount of interest expense we are able deduct may also be limited in future years. The TCJA contains many provisions which continue to be clarified through new regulations. As permitted by Staff Accounting Bulletin 118 issued by the SEC on December 22, 2017, we completed our accounting of the impacts of the TCJA. We have completed our analysis within 2018 consistent with the guidance of SAB 118 and any adjustments during the measurement period have been included in net earnings from continuing operations as an adjustment to income tax expense. As such, in the fourth quarter of 2018, the Company recorded additional tax expense of

$2.6 million resulting from the IRS interpretative guidance of TCJA. As of January 2, 2021 and December 28, 2019, a $1.7 million and $1.7 million, respectively, valuation allowance has been recorded on net deferred tax assets where realization of our net operating losses are not more likely than not.

The Company has recognized a reserve against the deferred tax assets for unrecognized tax benefits in the amount of $0.0 million and $11.6 million as of January 2, 2021 and December 28, 2019, respectively. The Company records interest and penalties as a component of the income tax provision. No material interest or penalties were recognized in income tax expense during the years ended January 2, 2021 and December 28, 2019.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Unrealized Tax Benefits
Balance—December 29, 2018	$	6,487
Additions based on tax position in 2018	5,132
Balance—December 28, 2019	$	11,619
Reductions based on new regulations	(11,619)
Balance—January 2, 2021	$	—

Tax years from 2014 to 2019 remain open and subject to audit by federal, Canadian, and state tax authorities. No income tax expense or benefit was recognized in other comprehensive loss in 2019, 2018 or 2017.

Tax Distributions  – The holders of Summit Holdings’ LP Units, including Summit Inc., incur U.S. federal, state and local income taxes on their share of any taxable income of Summit Holdings. The limited partnership agreement of Summit Holdings provides for pro rata cash distributions (“tax distributions”) to the holders of the LP Units in an amount generally calculated to provide each holder of LP Units with sufficient cash to cover its tax liability in respect of the LP Units. In general, these tax distributions are computed based on Summit Holdings’ estimated taxable income allocated to Summit Inc. multiplied by an assumed tax rate equal to the highest effective marginal combined U.S. federal, state and local income tax rate applicable to a corporate resident in New York, New York. No material distributions were made in the years ended January 2, 2021 and December 28, 2019.

(10) Members’ Interest

Summit LLC is a wholly owned indirect subsidiary of Summit Holdings, whose primary owner is 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”) 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.

21

Accumulated other comprehensive income (loss) - 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		income (loss)
Balance — December 29, 2018	$	(4,392)	$	(19,370)	$	146	$	(23,616)
Postretirement liability adjustment	(1,925)		—		—		(1,925)
Foreign currency translation adjustment	—		4,716		—		4,716
Income on cash flow hedges	—		—		(146)		(146)
Balance — December 28, 2019	$	(6,317)	$	(14,654)	$	—	$	(20,971)
Postretirement liability adjustment	(2,229)		—		—		(2,229)
Foreign currency translation adjustment	—		4,617		—		4,617
Balance — January 2, 2021	$	(8,546)	$	(10,037)	$	—	$	(18,583)

(11) Supplemental Cash Flow Information

Supplemental cash flow information for the years ended January 2, 2021, December 28, 2019 and December 29, 2018 was as follows:

	2020		2019		2018
Cash payments:
Interest	$	99,551	$	104,614	$	103,250
Payments (refunds) for income taxes, net	1,754		(919)		3,340
Operating cash payments on operating leases	10,452		10,618		N/A
Operating cash payments on finance leases	3,132		3,051		N/A
Finance cash payments on finance leases	14,408		13,164		N/A
Non cash financing activities:
Right of use assets obtained in exchange for operating lease obligations	$	4,849	$	5,842	N/A
Right of use assets obtained in exchange for finance leases obligations	18,016		23,965		N/A

(12) Stock-Based Compensation

Prior to the IPO and related Reorganization, the capital structure of Summit Holdings consisted of six different classes of limited partnership units, each of which was subject to unique distribution rights. In connection with the IPO and the related Reorganization, the limited partnership agreement of Summit Holdings was amended and restated to, among other things, modify its capital structure by creating LP Units. Holders of the LP Units periodically exchange their LP Units for shares of Class A common Stock of Summit Inc.

In the first quarter of 2018, the Board of Directors vested the time-vesting units outstanding and we recognized the remaining $1.0 million of stock based compensation related to these LP units.

Omnibus Incentive Plan

In 2015, our Board of Directors and stockholders adopted the Summit Materials, Inc. 2015 Omnibus Incentive Plan (the "Plan"), which allows for grants of equity-based awards in the form of stock options, stock appreciation rights, restricted stock and restricted stock units, performance units, and other stock-based awards. The Plan authorizes the issuance of up to 13,500,000 shares of Class A common stock in the form of restricted stock units and stock options, of which 4.3 million shares were available for future grants as of January 2, 2021.

Restricted Stock

Restricted Stock with Service-Based Vesting—Under the Plan, the Compensation Committee of the Board of Directors (the “Compensation Committee”) has granted restricted stock to members of the Board of Directors, executive officers and

22

other key employees. These awards contain service conditions associated with continued employment or service. The terms of the restricted stock provide voting and regular dividend rights to holders of the awards. Upon vesting, the restrictions on the restricted stock lapse and the shares are considered issued and outstanding for accounting purposes.

In each of 2020, 2019 and 2018, the Compensation Committee granted restricted stock to executives and key employees under the Plan as part of our annual equity award program, which vest over a two or three year period, subject to continued employment or service. From time to time, the Compensation Committee grants restricted stock to newly hired or promoted employees or other employees who have achieved extraordinary personal performance objectives.

Further, in each of 2020, 2019 and 2018, the Compensation Committee granted 42,736, 65,144 and 38,232 shares, respectively, to non-employee members of the Board of Directors for their annual service as directors. These restricted stock grants vest over a one year period.

In measuring compensation expense associated with the grant of restricted stock, we use the fair value of the award, determined as the closing stock price for our Class A common stock on the date of grant. Compensation expense is recorded monthly over the vesting period of the award.

Restricted stock with Service- and Market-Condition-Based Vesting—In 2020, 2019 and 2018, the Compensation Committee granted restricted stock to certain members of our executive team as part of their annual compensation package. The restricted stock vests at the end of a three year performance period, based on our total stock return (“TSR”) ranking relative to companies in the S&P Building & Construction Select Industry Index, subject to continued employment.

Compensation expense is recorded monthly over the vesting period of the awards. The following table summarizes information for the equity awards granted in 2020:

	Options			Restricted Stock Units			Performance Stock Units			Warrants
		Weighted			Weighted			Weighted			Weighted
		average grant-		Number of	average grant-		Number of	average grant-			average grant-
	Number of	date fair value		restricted	date fair value		performance	date fair value		Number of	date fair value
	options	per unit		stock units	per unit		stock units	per unit		warrants	per unit
Beginning balance—December 28, 2019	2,128,107	$	9.08	1,556,636	$	20.29	390,645	$	31.08	100,037	$	18.00
Granted	—	—		1,379,943	18.10		199,946	23.43		—	—
Forfeited/ Canceled	(35,117)	12.30		(154,283)	19.12		(112,416)	26.54		—	—
Exercised	(54,517)	10.10		—	—		—	—		—	—
Vested	—	—		(647,345)	21.28		(49,300)	32		—	—
Balance—January 2, 2021	2,038,473	$	9.16	2,134,951	$	18.64	428,875	$	28.64	100,037	$	18.00

The fair value of the time-vesting options granted was estimated as of the grant date using the Black-Scholes-Merton model, which requires the input of subjective assumptions, including the expected volatility and the expected term. The fair value of the performance stock units granted was estimated as of the grant date using Monte Carlo simulations, which requires the input of subjective assumptions, including the expected volatility and the expected term. No options to purchase common stock were granted in 2020, 2019 and 2018.

The risk-free rate is based on the yield at the date of grant of a U.S. Treasury security with a maturity period approximating the expected term. As Summit Holdings has not historically and does not plan to issue regular dividends, a dividend yield of zero was used. The volatility assumption is based on reported data of a peer group of publicly traded companies for which historical information was available adjusted for the Company’s capital structure. The expected term is based on expectations about future exercises and represents the period of time that the units granted are expected to be outstanding.

Compensation expense for time-vesting interests granted is based on the grant date fair value. The Company recognizes compensation costs on a straight-line basis over the service period, which is generally the vesting period of the award. Forfeitures are recognized as they occur. Share-based compensation expense, which is recognized in general and administrative expenses, totaled $28.9 million, $20.4 million and $25.4 million in the years ended January 2, 2021, December

23

28, 2019 and December 29, 2018, respectively. As of January 2, 2021, unrecognized compensation cost totaled $22.0 million. The weighted average remaining contractual term over which the unrecognized compensation cost is to be recognized is 1.7 years as of year-end 2020.

As of January 2, 2021, the intrinsic value of outstanding options, restricted stock units and performance stock units was $3.8 million, $42.9 million and $8.6 million, respectively, and the remaining contractual term was 3.3 years, 1.0 year and 1.3 years, respectively. The weighted average strike price of stock options outstanding as of January 2, 2021 was $18.75 per share. The intrinsic value of 2.0 million exercisable stock options as of January 2, 2021 was $3.8 million with a weighted average strike price of $18.75 and a weighted average remaining contractual period of 3.3 years.

(13) Employee Benefit Plans

Defined Contribution Plan—The Company sponsors employee 401(k) savings plans for its employees, including certain union employees. The plans provide for various required and discretionary Company matches of employees’ eligible compensation contributed to the plans. The expense for the defined contribution plans was $12.1 million, $11.7 million and $11.2 million for the years ended January 2, 2021, December 28, 2019 and December 29, 2018, respectively.

Defined Benefit and Other Postretirement Benefits Plans—The Company’s subsidiary, Continental Cement, sponsors two noncontributory defined benefit pension plans for hourly and salaried employees. The plans are closed to new participants and benefits are frozen. As a result of the collective bargaining unit negotiations in 2017, the hourly defined benefit pension plan was amended to stop future benefit accruals for the Davenport employees effective December 31, 2017. Pension benefits for eligible hourly employees are based on a monthly pension factor for each year of credited service. Pension benefits for eligible salaried employees are generally based on years of service and average eligible compensation.

Continental Cement also sponsors two unfunded healthcare and life insurance benefits plans for certain eligible retired employees. Effective January 1, 2014, the plan covering employees of the Hannibal, Missouri location was amended to eliminate all future retiree health and life coverage for current employees. During 2015, Continental Cement adopted one new unfunded healthcare plan to provide benefits prior to Medicare eligibility for certain hourly employees of the Davenport, Iowa location. As a result of the collective bargaining unit negotiations in 2017, hourly Davenport employees hired on or after January 1, 2018 are no longer eligible for retiree medical benefits.

The funded status of the pension and other postretirement benefit plans is recognized in the consolidated balance sheets as the difference between the fair value of plan assets and the benefit obligations. For defined benefit pension plans, the benefit obligation is the projected benefit obligation (“PBO”) and for the healthcare and life insurance benefits plans, the benefit obligation is the accumulated postretirement benefit obligation (“APBO”). The PBO represents the actuarial present value of benefits expected to be paid upon retirement based on estimated future compensation levels. However, since the plans’ participants are not subject to future compensation increases, the plans’ PBO equals the accumulated benefit obligation (“ABO”). The APBO represents the actuarial present value of postretirement benefits attributed to employee services already rendered. The fair value of plan assets represents the current market value of assets held by an irrevocable trust fund for the sole benefit of participants. The measurement of the benefit obligations is based on the Company’s estimates and actuarial valuations. These valuations reflect the terms of the plan and use participant-specific information, such as compensation, age and years of service, as well as certain assumptions that require significant judgment, including estimates of discount rates, expected return on plan assets, rate of compensation increases, interest-crediting rates and mortality rates.

The Company uses December 31 as the measurement date for its defined benefit pension and other postretirement benefit plans.

Obligations and Funded Status—The following information is as of January 2, 2021 and December 28, 2019 and for the years ended January 2, 2021, December 28, 2019 and December 29, 2018: 

24

	2020				2019
	Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.
Change in benefit obligations:
Beginning of period	$	26,181	$	9,090	$	24,203	$	9,203
Service cost	71		176		60		166
Interest cost	733		242		928		321
Actuarial (gain) loss	2,425		676		2,571		165
Benefits paid	(1,583)		(955)		(1,581)		(765)
End of period	$	27,827	$	9,229	$	26,181	$	9,090
Change in fair value of plan assets:
Beginning of period	$	18,242	$	—	$	17,449	$	—
Actual return on plan assets	1,916		—		2,055		—
Employer contributions	483		955		319		765
Benefits paid	(1,583)		(955)		(1,581)		(765)
End of period	$	19,058	$	—	$	18,242	$	—
Funded status of plans	$	(8,769)	$	(9,229)	$	(7,939)	$	(9,090)
Current liabilities	$	—	$	(636)	$	—	$	(653)
Noncurrent liabilities	(8,769)		(8,593)		(7,939)		(8,437)
Liability recognized	$	(8,769)	$	(9,229)	$	(7,939)	$	(9,090)
Amounts recognized in accumulated other comprehensive income:
Net actuarial (gain) loss	$	10,689	$	2,707	$	9,286	$	2,121
Prior service cost	—		(1,690)		—		(1,931)
Total amount recognized	$	10,689	$	1,017	$	9,286	$	190

The amount recognized in accumulated other comprehensive income (“AOCI”) is the actuarial loss (credit) and prior service cost, which has not yet been recognized in periodic benefit cost.

	2020				2019				2018
	Pension		Healthcare		Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.		benefits		& Life Ins.
Amounts recognized in other comprehensive (income) loss:
Net actuarial loss (gain)	$	1,728	$	675	$	1,760	$	165	$	(1,300)	$	(172)
Amortization of prior year service cost	—		241		—		241		—		241
Amortization of gain	(326)		(89)		(202)		(39)		(312)		(118)
Total amount recognized	$	1,402	$	827	$	1,558	$	367	$	(1,612)	$	(49)
Components of net periodic benefit cost:
Service cost	$	71	$	176	$	60	$	166	$	67	$	170
Interest cost	733		242		928		321		898		317
Amortization of gain	326		89		202		39		312		118
Expected return on plan assets	(1,221)		—		(1,244)		—		(1,284)		—
Amortization of prior service credit	—		(241)		—		(241)		—		(241)
Net periodic (expense) benefit cost	$	(91)	$	266	$	(54)	$	285	$	(7)	$	364

25

Assumptions—Weighted-average assumptions used to determine the benefit obligations as of year-end 2020 and 2019 are:

	2020		2019
		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	1.84% - 2.14%	1.80% - 1.82%	2.78% - 2.96%	2.73% - 2.79%
Expected long-term rate of return on plan assets	7.00%	N/A	7.00%	N/A

Weighted-average assumptions used to determine net periodic benefit cost for years ended January 2, 2021, December 28, 2019 and December 29, 2018:

	2020		2019		2018
		Healthcare		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	2.78% - 2.96%	2.73% - 2.79%	3.90% - 4.02%	3.87% - 3.91%	3.23% - 3.37%	3.20% - 3.25%
Expected long-term rate of return on plan assets	7.00%	N/A	7.00%	N/A	7.00%	N/A

The expected long-term return on plan assets is based upon the Plans’ consideration of historical and forward-looking returns and the Company’s estimation of what a portfolio, with the target allocation described below, will earn over a long-term horizon. The discount rate is derived using the FTSE Pension Discount Curve.

Assumed health care cost trend rates were 8.0% as of year-end 2020 and 2019, grading to an ultimate trend rate of 4.5% in 2034 and 2033. Assumed health care cost trend rates have a significant effect on the amounts reported for the Company’s healthcare and life insurance benefits plans.

Plan Assets—The defined benefit pension plans’ (the “Plans”) investment strategy is to minimize investment risk while generating acceptable returns. The Plans currently invest a relatively high proportion of the plan assets in fixed income securities, while the remainder is invested in equity securities, cash reserves and precious metals. The equity securities are diversified into funds with growth and value investment strategies. The target allocation for plan assets is as follows: equity securities—30%; fixed income securities—63%; cash reserves—5%; and precious metals—2%. The Plans’ current investment allocations are within the tolerance of the target allocation. The Company had no Level 3 investments as of or for the years ended January 2, 2021 and December 28, 2019.

At year-end 2020 and 2019, the Plans’ assets were invested predominantly in fixed-income securities and publicly traded equities, but may invest in other asset classes in the future subject to the parameters of the investment policy. The Plans’ investments in fixed-income assets include U.S. Treasury and U.S. agency securities and corporate bonds. The Plans’ investments in equity assets include U.S. and international securities and equity funds. The Company estimates the fair value of the Plans’ assets using various valuation techniques and, to the extent available, quoted market prices in active markets or observable market inputs. The descriptions and fair value methodologies for the Plans’ assets are as follows:

Fixed Income Securities—Corporate and government bonds are classified as Level 2 assets, as they are either valued at quoted market prices from observable pricing sources at the reporting date or valued based upon comparable securities with similar yields and credit ratings.

Equity Securities—Equity securities are valued at the closing market price reported on a U.S. exchange where the security is actively traded and are therefore classified as Level 1 assets.

Cash—The carrying amounts of cash approximate fair value due to the short-term maturity.

Precious Metals—Precious metals are valued at the closing market price reported on a U.S. exchange where the security is actively traded and are therefore classified as Level 1 assets.

The fair value of the Plans’ assets by asset class and fair value hierarchy level as of January 2, 2021 and December 28, 2019 are as follows:

26

	2020
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	3,294	$	3,294	$	—
Intermediate—corporate	3,218		—		3,218
Short-term—government	705		705		—
Short-term—corporate	448		—		448
International	1,086		—		1,086
Equity securities:
U.S. Large cap value	1,516		1,516		—
U.S. Large cap growth	1,483		1,483		—
U.S. Mid cap value	631		631		—
U.S. Mid cap growth	619		619		—
U.S. Small cap value	663		663		—
U.S. Small cap growth	650		650		—
International	1,227		407		820
Emerging Markets	409		409		—
Commodities Broad Basket	1,002		182		820
Cash	2,107		2,107		—
Total	$	19,058	$	12,666	$	6,392

	2019
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	2,482	$	2,482	$	—
Intermediate—corporate	1,066		—		1,066
Short-term—government	1,387		1,387		—
Short-term—corporate	3,173		—		3,173
International	1,387		—		1,387
Equity securities:
U.S. Large cap value	1,225		1,225		—
U.S. Large cap growth	1,167		1,167		—
U.S. Mid cap value	581		581		—
U.S. Mid cap growth	578		578		—
U.S. Small cap value	583		583		—
U.S. Small cap growth	593		593		—
Managed Futures	340		—		340
International	1,174		386		788
Emerging Markets	394		394		—
Commodities Broad Basket	1,118		362		756
Cash	994		994		—
Total	$	18,242	$	10,732	$	7,510

Cash Flows—The Company expects to contribute approximately $1.2 million and $0.6 million in 2021 to its pension plans and to its healthcare and life insurance benefits plans, respectively.

27

The estimated benefit payments for each of the next five years and the five-year period thereafter are as follows:

	Pension		Healthcare and Life
	benefits		Insurance Benefits
2021	$	1,692	$	636
2022	1,693		630
2023	1,696		617
2024	1,655		619
2025	1,613		627
2026 - 2030	7,597		3,139

Multiemployer Pension Plans— In 2018, the Company acquired Buildex, LLC and assumed its obligation to contribute to a number of multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover its union-represented employees. The risks of participating in multiemployer pension plans are different from single-employer plans. Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer ceases contributing to the plan, the unfunded obligations of the plan are the responsibility of the remaining participating employers.

The Company's participation in these plans for the annual period ended December 31, 2020, is outlined in the table below. The ''EIN/Pension Plan Number" column provides the Employer Identification Number (EIN) and the three-digit plan number, if applicable. Unless otherwise noted, the most recent Pension Protection Act (PPA) zone status available in 2020 and 2019 is for the plan 's year end at December 31, 2020, and December 31, 2019, respectively. The zone status is based on information the Company received from the plan and is certified by the plan's actuary. Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are less than 80% funded and plans in the green zone are at least 80% funded. The "FIP/RP Status Pending/Implemented" column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. The "Surcharge Imposed" column indicates whether a surcharge has been imposed on contributions to the plan. The last column lists the expiration date(s) of the collective-bargaining agreement(s) to which the plans are subject. There have been no significant changes that affect the comparability of 2020 and 2019 contributions.

										Expiration Date of
		Pension Protection Act		FIP/RP Status	Contributions of Company					Collective-
Pension	EIN/ Pension	Zone Status		Pending/	($ in thousands)				Surcharge	Bargaining
Trust Fund	Plan Number	2020	2019	Implemented	2020		2019		Imposed	Agreement
Construction Industry Laborers Pension Fund	43-6060737/001	Green - as of December 31, 2019	Green - as of December 31, 2018	None	$	100	$	112	No	3/31/2021
Operating Engineers Local 101 Pension Plan	43-6059213/001	Green - as of December 31, 2019	Green - as of December 31, 2018	None	20		23		No	3/31/2021
Total Contributions					$	120	$	135

The Company was not listed as providing more than 5% of the total contributions for the Operating Engineers Local 101 Pension Plan or the Construction Industry Laborers Pension Fund for the plan years 2020 and 2019 per the plans' Forms 5500. As of the date of the filing of this annual report on Form 10-K, Forms 5500 were not available for the plan year ending December 31, 2020.

(14) Accrued Mining and Landfill Reclamation

The Company has asset retirement obligations arising from regulatory or contractual requirements to perform certain reclamation activities at the time that certain quarries and landfills are closed, which are primarily included in other noncurrent liabilities on the consolidated balance sheets. The current portion of the liabilities, $10.0 million and $7.9 million as of January 2, 2021 and December 28, 2019, respectively, is included in accrued expenses on the consolidated balance sheets. The total

28

undiscounted anticipated costs for site reclamation as of January 2, 2021 and December 28, 2019 were $112.8 million and $97.4 million, respectively. The liabilities were initially measured at fair value and are subsequently adjusted for accretion expense, payments and changes in the amount or timing of the estimated cash flows. The corresponding asset retirement costs are capitalized as part of the carrying amount of the related long-lived asset and depreciated over the asset’s remaining useful life. The following table presents the activity for the asset retirement obligations for the years ended January 2, 2021 and December 28, 2019:

	2020		2019
Beginning balance	$	36,676	$	30,999
Acquired obligations	861		805
Change in cost estimate	6,523		4,468
Settlement of reclamation obligations	(3,095)		(1,812)
Accretion expense	2,638		2,216
Ending balance	$	43,603	$	36,676

(15) 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. Although we currently do not believe this matter will have a material adverse effect on our business, financial condition or results of operations, we are not able to predict the ultimate outcome or cost of the investigation at this time.

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.

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 one year.

(16) 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 Topic 842, we combine lease and nonlease components. While we also own mineral leases for mining operations, those leases are outside the scope of Topic 842. Assets acquired under finance leases are included in property, plant and equipment.

Many of our leases include options to purchase the leased equipment. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease expense were as follows:

29

	2020			2019
Operating lease cost	$	10,134		$	10,451
Variable lease cost	316			423
Short-term lease cost	44,066			38,417
Financing lease cost:
Amortization of right-of-use assets	12,598			11,062
Interest on lease liabilities	3,068			3,171
Total lease cost	$	70,182		$	63,524
	2020			2019
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets	$	28,543		$	32,777
Current operating lease liabilities	$	8,188		$	8,427
Noncurrent operating lease liabilities	21,500			25,381
Total operating lease liabilities	$	29,688		$	33,808
Finance leases:
Property and equipment, gross	$	92,679		$	82,660
Less accumulated depreciation	(32,828)			(24,907)
Property and equipment, net	$	59,851		$	57,753
Current finance lease liabilities	$	24,601		$	16,007
Long-term finance lease liabilities	31,727			40,410
Total finance lease liabilities	$	56,328		$	56,417
	2020			2019
Weighted average remaining lease term (years):
Operating leases	8.7			8.6
Finance lease	2.4			2.6
Weighted average discount rate:
Operating leases	5.3		%	5.5		%
Finance lease	5.2		%	5.5		%
Maturities of lease liabilities were as follows:
	Operating Leases			Finance Leases
2021	$	9,491		$	26,742
2022	6,088			18,603
2023	4,663			7,053
2024	2,863			3,207
2025	1,781			2,573
Thereafter	12,961			2,831
Total lease payments	37,847			61,009
Less imputed interest	(8,159)			(4,681)
Present value of lease payments	$	29,688		$	56,328

30

The Company has lease agreements associated with quarry facilities under which royalty payments are made. The payments are generally based on tons sold in a particular period; however, certain agreements have minimum annual payments. Royalty expense recorded in cost of revenue during the years ended January 2, 2021, December 28, 2019 and December 29, 2018 was $29.2 million, $24.3 million and $20.1 million, respectively. Minimum contractual commitments for the subsequent five years under royalty agreements are as follows:

	Royalty
	Agreements
2021	$	9,916
2022	9,880
2023	9,594
2024	9,295
2025	9,052

(17) Fair Value of Financial Instruments

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 fair value of contingent consideration as of January 2, 2021 and December 28, 2019 was:

	2020		2019
Current portion of acquisition-related liabilities and Accrued expenses:
Contingent consideration	$	654	$	1,967
Acquisition-related liabilities and Other noncurrent liabilities:
Contingent consideration	$	1,209	$	1,302

The fair value accounting guidance establishes the following fair value hierarchy that prioritizes the inputs used to measure fair value:

Level  1 —  Quoted prices in active markets for identical assets and liabilities.

Level 2 —  Observable inputs, other than quoted prices, for similar assets or liabilities in active markets.

Level 3 —  Unobservable inputs, which includes the use of valuation models.

Financial Instruments—The Company’s financial instruments include debt and certain acquisition-related liabilities (deferred consideration and noncompete obligations). The carrying value and fair value of these financial instruments as of January 2, 2021 and December 28, 2019 were:

	January 2, 2021				December 28, 2019
	Fair Value		Carrying Value		Fair Value		Carrying Value
Level 1
Long-term debt(1)	$	1,971,087	$	1,915,425	$	1,918,720	$	1,872,273
Level 3
Current portion of deferred consideration and noncompete obligations(2)	7,173		7,173		28,233		28,233
Long term portion of deferred consideration and noncompete obligations(3)	11,037		11,037		16,364		16,364

______________________

(1)    $6.4 million and $7.9 million were included in current portion of debt as of January 2, 2021 and December 28, 2019, respectively.

(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.

31

Level 1 fair values are used to value investments in publicly-traded entities and assumed obligations for publicly-traded long-term debt.

Level 2 fair values are typically used to value acquired receivables, inventories, machinery and equipment, land, buildings, deferred income tax assets and liabilities, liabilities for asset retirement obligations, environmental remediation and compliance obligations. Additionally, Level 2 fair values are typically used to value assumed contracts at other-than-market rates.

Level 3 fair values are used to value acquired mineral reserves and leased mineral interests and other identifiable intangible assets. The fair values of mineral reserves and leased mineral interests are determined using an excess earnings approach, which requires management to estimate future cash flows. The estimate of future cash flows is based on available historical information and forecasts determined by management, but is inherently uncertain. Key assumptions in estimating future cash flows include sales price, volumes and expected profit margins, net of capital requirements. The present value of the projected net cash flows represents the fair value assigned to mineral reserves and mineral interests. The discount rate is a significant assumption used in the valuation model and is based on the required rate of return that a hypothetical market participant would assume if purchasing the acquired business.

The Level 3 fair values of contingent consideration were based on projected probability-weighted cash payments and a 9.5% 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. There were no material adjustments to the fair value of contingent consideration in 2020 or 2019. The fair values of the deferred consideration and noncompete obligations were determined based on 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.

(18) Segment Information

The Company has 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, the Company’s Chief Operating Decision Maker (“CODM”). The CODM primarily evaluates the performance of its 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.

The following tables display selected financial data for the Company’s reportable business segments as of and for the years ended January 2, 2021, December 28, 2019 and December 29, 2018:

	2020		2019		2018
Revenue*:
West	$	1,262,196	$	1,122,338	$	1,117,066
East	799,633		809,098		703,147
Cement	270,622		290,704		280,789
Total revenue	$	2,332,451	$	2,222,140	$	2,101,002

______________________

32

*   Intercompany sales are immaterial and the presentation above only reflects sales to external customers.

	2020		2019		2018
Income from operations before taxes	$	121,800	$	94,982	$	74,110
Interest expense	103,291		115,988		115,831
Depreciation, depletion and amortization	218,682		214,886		203,305
Accretion	2,638		2,216		1,605
Loss on debt financings	4,064		14,565		149
Gain on sale of business	—		—		(12,108)
Transaction costs	2,747		2,222		4,238
Non-cash compensation	28,857		20,403		25,378
Other	2,957		(3,800)		(6,247)
Total Adjusted EBITDA	$	485,036	$	461,462	$	406,261
Total Adjusted EBITDA by Segment:
West	$	271,052	$	204,964	$	188,999
East	162,275		187,625		138,032
Cement	92,956		103,438		111,394
Corporate and other	(41,247)		(34,565)		(32,164)
Total Adjusted EBITDA	$	485,036	$	461,462	$	406,261

	2020		2019		2018
Purchases of property, plant and equipment
West	$	67,500	$	71,397	$	120,657
East	92,528		77,894		64,384
Cement	15,071		25,691		28,036
Total reportable segments	175,099		174,982		213,077
Corporate and other	2,150		2,513		7,608
Total purchases of property, plant and equipment	$	177,249	$	177,495	$	220,685

	2020		2019		2018
Depreciation, depletion, amortization and accretion:
West	$	93,866	$	93,256	$	91,794
East	86,205		81,403		75,433
Cement	37,267		38,447		35,061
Total reportable segments	217,338		213,106		202,288
Corporate and other	3,982		3,996		2,622
Total depreciation, depletion, amortization and accretion	$	221,320	$	217,102	$	204,910

	2020		2019		2018
Total assets:
West	$	1,503,382	$	1,379,684	$	1,370,501
East	1,303,742		1,288,835		1,253,640
Cement	850,835		868,528		877,586
Total reportable segments	3,657,959		3,537,047		3,501,727
Corporate and other	419,175		319,176		131,517
Total	$	4,077,134	$	3,856,223	$	3,633,244

33

(19) Senior Notes’ 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. 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.

34

Condensed Consolidating Balance Sheets

January 2, 2021

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	401,074	$	10,287	$	10,461	$	(3,641)	$	418,181
Accounts receivable, net	4		230,199		24,384		109		254,696
Intercompany receivables	404,459		1,303,293		—		(1,707,752)		—
Cost and estimated earnings in excess of billings	—		7,504		1,162		—		8,666
Inventories	—		193,417		6,891		—		200,308
Other current assets	2,840		6,797		1,791		—		11,428
Total current assets	808,377		1,751,497		44,689		(1,711,284)		893,279
Property, plant and equipment, net	9,410		1,746,045		94,714		—		1,850,169
Goodwill	—		1,142,083		60,208		—		1,202,291
Intangible assets, net	—		47,852		—		—		47,852
Operating lease right-of-use assets	2,615		21,880		4,048		—		28,543
Other assets	4,022,729		207,699		493		(4,175,921)		55,000
Total assets	$	4,843,131	$	4,917,056	$	204,152	$	(5,887,205)	$	4,077,134
Liabilities and Member’s Interest
Current liabilities:
Current portion of debt	$	6,354	$	—	$	—	$	—	$	6,354
Current portion of acquisition-related liabilities	—		7,827		—		—		7,827
Accounts payable	3,889		108,805		8,619		109		121,422
Accrued expenses	54,108		106,320		4,014		(3,641)		160,801
Current operating lease liabilities	913		6,114		1,161		—		8,188
Intercompany payables	1,215,043		485,401		7,308		(1,707,752)		—
Billings in excess of costs and estimated earnings	—		15,508		991		—		16,499
Total current liabilities	1,280,307		729,975		22,093		(1,711,284)		321,091
Long-term debt	1,892,347		—		—		—		1,892,347
Acquisition-related liabilities	—		12,246		—		—		12,246
Noncurrent operating lease liabilities	2,567		16,062		2,871		—		21,500
Other noncurrent liabilities	5,142		208,540		117,921		(164,421)		167,182
Total liabilities	3,180,363		966,823		142,885		(1,875,705)		2,414,366
Total member's interest	1,662,768		3,950,233		61,267		(4,011,500)		1,662,768
Total liabilities and member’s interest	$	4,843,131	$	4,917,056	$	204,152	$	(5,887,205)	$	4,077,134

35

Condensed Consolidating Balance Sheets

December 28, 2019

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	302,474	$	5,488	$	9,834	$	(6,477)	$	311,319
Accounts receivable, net	—		234,053		19,236		(33)		253,256
Intercompany receivables	443,323		942,385		—		(1,385,708)		—
Cost and estimated earnings in excess of billings	—		12,291		797		—		13,088
Inventories	—		199,794		4,993		—		204,787
Other current assets	1,763		10,308		1,760		—		13,831
Total current assets	747,560		1,404,319		36,620		(1,392,218)		796,281
Property, plant and equipment, net	11,602		1,674,443		61,404		—		1,747,449
Goodwill	—		1,142,063		58,636		—		1,200,699
Intangible assets, net	—		23,498		—		—		23,498
Operating lease right-of-use assets	3,316		24,551		4,910		—		32,777
Other assets	3,596,161		168,314		734		(3,709,690)		55,519
Total assets	$	4,358,639	$	4,437,188	$	162,304	$	(5,101,908)	$	3,856,223
Liabilities and Member’s Interest
Current liabilities:
Current portion of debt	$	7,942	$	—	$	—	$	—	$	7,942
Current portion of acquisition-related liabilities	—		30,200		—		—		30,200
Accounts payable	4,588		103,812		8,603		(33)		116,970
Accrued expenses	51,043		72,970		2,701		(6,477)		120,237
Current operating lease liabilities	764		6,571		1,092		—		8,427
Intercompany payables	922,356		447,827		15,525		(1,385,708)		—
Billings in excess of costs and estimated earnings	—		12,183		1,681		—		13,864
Total current liabilities	986,693		673,563		29,602		(1,392,218)		297,640
Long-term debt	1,851,057		—		—		—		1,851,057
Acquisition-related liabilities	—		17,666		—		—		17,666
Noncurrent operating lease liabilities	3,480		18,047		3,854		—		25,381
Other noncurrent liabilities	4,259		203,919		80,169		(137,018)		151,329
Total liabilities	2,845,489		913,195		113,625		(1,529,236)		2,343,073
Total member's interest	1,513,150		3,523,993		48,679		(3,572,672)		1,513,150
Total liabilities and member’s interest	$	4,358,639	$	4,437,188	$	162,304	$	(5,101,908)	$	3,856,223

36

Condensed Consolidating Statements of Operations and Comprehensive Income

Year Ended January 2, 2021

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—	$	2,259,865	$	89,752	$	(17,166)	$	2,332,451
Cost of revenue (excluding items shown separately below)	—		1,542,586		58,576		(17,166)		1,583,996
General and administrative expenses	72,504		217,897		11,561		—		301,962
Depreciation, depletion, amortization and accretion	3,983		210,038		7,299		—		221,320
Operating (loss) income	(76,487)		289,344		12,316		—		225,173
Other (income) loss, net	(328,914)		(2,473)		(198)		331,667		82
Interest expense (income)	130,176		(31,402)		4,517		—		103,291
Income from operation before taxes	122,251		323,219		7,997		(331,667)		121,800
Income tax expense (benefit)	1,514		(4,737)		4,286		—		1,063
Net income attributable to Summit LLC	$	120,737	$	327,956	$	3,711	$	(331,667)	$	120,737
Comprehensive income (loss) attributable to member of Summit Materials, LLC	$	123,125	$	330,185	$	(906)	$	(329,279)	$	123,125

37

Condensed Consolidating Statements of Operations and Comprehensive Income

Year ended December 28, 2019

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—	$	2,139,457	$	94,879	$	(12,196)	$	2,222,140
Cost of revenue (excluding items shown separately below)	—		1,473,124		65,404		(12,196)		1,526,332
General and administrative expenses	58,099		195,683		11,366		—		265,148
Depreciation, depletion, amortization and accretion	3,997		207,277		5,828		—		217,102
Operating (loss) income	(62,096)		263,373		12,281		—		213,558
Other (income) loss, net	(279,517)		(8,767)		(790)		291,662		2,588
Interest expense (income)	127,734		(16,561)		4,815		—		115,988
Income from operation before taxes	89,687		288,701		8,256		(291,662)		94,982
Income tax expense	1,090		3,377		1,918		—		6,385
Net income attributable to Summit LLC	$	88,597	$	285,324	$	6,338	$	(291,662)	$	88,597
Comprehensive income attributable to member of Summit Materials, LLC	$	91,242	$	287,395	$	1,622	$	(289,017)	$	91,242

38

Condensed Consolidating Statements of Operations and Comprehensive Income

Year ended December 29, 2018

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—	$	2,018,428	$	88,658	$	(6,084)	$	2,101,002
Cost of revenue (excluding items shown separately below)	—		1,416,222		65,641		(6,084)		1,475,779
General and administrative expenses	62,376		184,917		10,554		—		257,847
Depreciation, depletion, amortization and accretion	2,622		197,406		4,882		—		204,910
Operating (loss) income	(64,998)		219,883		7,581		—		162,466
Other (income) loss, net	(249,204)		(14,643)		823		247,657		(15,367)
Interest expense	118,857		(7,818)		4,792		—		115,831
Gain on sale of business	—		(12,108)		—		—		(12,108)
Income from continuing operations before taxes	65,349		254,452		1,966		(247,657)		74,110
Income tax (benefit) expense	1,512		8,226		535		—		10,273
Net income attributable to member of Summit Materials, LLC	$	63,837	$	246,226	$	1,431	$	(247,657)	$	63,837
Comprehensive income attributable to member of Summit Materials, LLC	$	57,356	$	243,359	$	10,779	$	(254,138)	$	57,356

39

Condensed Consolidating Statements of Cash Flows

For the year ended January 2, 2021

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(135,895)	$	502,595	$	42,169	$	—	$	408,869
Cash flow from investing activities:
Acquisitions, net of cash acquired	—		(92,085)		(31,392)		—		(123,477)
Purchase of property, plant and equipment	(2,150)		(173,228)		(1,871)		—		(177,249)
Proceeds from the sale of property, plant, and equipment	—		13,935		83		—		14,018
Other	—		1,121		—		—		1,121
Net cash used for investing activities	(2,150)		(250,257)		(33,180)		—		(285,587)
Cash flow from financing activities:
Proceeds from investment by member	(91,142)		87,925		4,260		—		1,043
Net proceeds from debt issuance	700,000		—		—		—		700,000
Loans received from and payments made on loans from other Summit Companies	298,656		(288,711)		(12,781)		2,836		—
Payments on long-term debt	(657,942)		(15,911)		(192)		—		(674,045)
Payments on acquisition-related liabilities	—		(30,757)		—		—		(30,757)
Debt issuance costs	(9,605)		—		—		—		(9,605)
Distributions from partnership	(2,500)		—		—		—		(2,500)
Other	(822)		(85)		—		—		(907)
Net cash provided by (used in) financing activities	236,645		(247,539)		(8,713)		2,836		(16,771)
Impact of cash on foreign currency	—		—		351		—		351
Net increase in cash	98,600		4,799		627		2,836		106,862
Cash — Beginning of period	302,474		5,488		9,834		(6,477)		311,319
Cash — End of period	$	401,074	$	10,287	$	10,461	$	(3,641)	$	418,181

40

Condensed Consolidating Statements of Cash Flows

For the year ended December 28, 2019

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(112,019)	$	431,323	$	17,880	$	—	$	337,184
Cash flow from investing activities:
Acquisitions, net of cash acquired	—		(5,392)		—		—		(5,392)
Purchase of property, plant and equipment	(2,513)		(163,652)		(11,330)		—		(177,495)
Proceeds from the sale of property, plant, and equipment	—		21,083		90		—		21,173
Proceeds from the sale of a business	—		21,564		—		—		21,564
Other	—		(1,095)		—		—		(1,095)
Net cash used for investing activities	(2,513)		(149,056)		(11,240)		—		(162,809)
Cash flow from financing activities:
Proceeds from investment by member	(21,614)		40,690		—		—		19,076
Net proceeds from debt issuance	300,000		—		—		—		300,000
Loans received from and payments made on loans from other Summit Companies	287,029		(280,836)		(4,586)		(1,607)		—
Payments on long-term debt	(256,354)		(13,650)		(225)		—		(270,229)
Payments on acquisition-related liabilities	—		(31,383)		—		—		(31,383)
Financing costs	(6,312)		—		—		—		(6,312)
Distributions from partnership	(2,500)		—		—		—		(2,500)
Other	(462)		(40)		—		—		(502)
Net cash provided by (used in) financing activities	299,787		(285,219)		(4,811)		(1,607)		8,150
Impact of cash on foreign currency	—		—		286		—		286
Net increase (decrease) in cash	185,255		(2,952)		2,115		(1,607)		182,811
Cash — Beginning of period	117,219		8,440		7,719		(4,870)		128,508
Cash — End of period	$	302,474	$	5,488	$	9,834	$	(6,477)	$	311,319

41

Condensed Consolidating Statements of Cash Flows

For the year ended December 29, 2018

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(142,315)	$	340,401	$	11,282	$	—	$	209,368
Cash flow from investing activities:
Acquisitions, net of cash acquired	—		(246,017)		—		—		(246,017)
Purchase of property, plant and equipment	(7,607)		(188,435)		(24,643)		—		(220,685)
Proceeds from the sale of property, plant, and equipment	—		21,263		372		—		21,635
Proceeds from the sale of a business	—		21,564		—		—		21,564
Other	—		3,804		—		—		3,804
Net cash used for investing activities	(7,607)		(387,821)		(24,271)		—		(419,699)
Cash flow from financing activities:
Proceeds from investment by member	(146,533)		162,148		—		—		15,615
Net proceeds from debt issuance	64,500		—		—		—		64,500
Loans received from and payments made on loans from other Summit Companies	51,696		(65,845)		6,647		7,502		—
Payments on long-term debt	(69,265)		(15,662)		(115)		—		(85,042)
Payments on acquisition-related liabilities	—		(34,004)		—		—		(34,004)
Financing costs	(550)		—		—		—		(550)
Distributions from partnership	(2,569)		—		—		—		(2,569)
Other	(879)		(1,031)		(33)		—		(1,943)
Net cash provided by financing activities	(103,600)		45,606		6,499		7,502		(43,993)
Impact of cash on foreign currency	—		—		(724)		—		(724)
Net (decrease) increase in cash	(253,522)		(1,814)		(7,214)		7,502		(255,048)
Cash — Beginning of period	370,741		10,254		14,933		(12,372)		383,556
Cash — End of period	$	117,219	$	8,440	$	7,719	$	(4,870)	$	128,508

42

XML

Cover - USD ($) $ in Billions	12 Months Ended
	Jan. 02, 2021	Feb. 22, 2021	Jun. 27, 2020
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Jan. 02, 2021
Current Fiscal Year End Date	--01-02
Document Transition Report	false
Entity File Number	001-36873
Entity Registrant Name	SUMMIT MATERIALS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-1984212
Entity Address, Address Line One	1550 Wynkoop Street
Entity Address, Address Line Two	3rd Floor
Entity Address, City or Town	Denver
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80202
City Area Code	303
Local Phone Number	893-0012
Title of 12(b) Security	Class A Common Stock (par value $.01 per share)
Trading Symbol	SUM
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 1.7
Documents Incorporated by Reference	Certain information required by Items 10, 11, 12, 13 and 14 of Part III incorporate information by reference from Summit Materials, Inc.’s definitive proxy statement relating to its 2021 annual meeting of stockholders to be filed with the Securities and Exchange Commission within 120 days after the close of Summit Materials, Inc.’s fiscal year.
Entity Central Index Key	0001621563
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Common Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		114,796,060
Common Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		99
Summit Materials, LLC
Document Information [Line Items]
Entity File Number	333-187556
Entity Registrant Name	SUMMIT MATERIALS, LLC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-4138486
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Central Index Key	0001571371
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019
Current assets:
Cash and cash equivalents	$ 418,181	$ 311,319
Accounts receivable, net	254,696	253,256
Costs and estimated earnings in excess of billings	8,666	13,088
Inventories	200,308	204,787
Other current assets	11,428	13,831
Total current assets	893,279	796,281
Property, plant and equipment including finance lease right-of-use assets, net	1,850,169	1,747,449
Goodwill	1,201,291	1,199,699
Intangible assets	47,852	23,498
Deferred tax assets	231,877	212,333
Operating lease right-of-use assets	28,543	32,777
Other assets	55,000	55,519
Total assets	4,308,011	4,067,556
Current liabilities:
Current portion of debt	6,354	7,942
Current portion of acquisition-related liabilities	10,265	32,700
Accounts payable	120,813	116,359
Accrued expenses	160,570	120,005
Current operating lease liabilities	8,188	8,427
Billings in excess of costs and estimated earnings	16,499	13,864
Total current liabilities	322,689	299,297
Long-term debt	1,892,347	1,851,057
Acquisition-related liabilities	12,246	19,801
Tax receivable agreement liability	321,680	326,965
Noncurrent operating lease liabilities	21,500	25,381
Other noncurrent liabilities	121,281	100,282
Total liabilities	2,691,743	2,622,783
Commitments and contingencies (see note 16)
Stockholders' equity / Member's interest
Additional paid-in capital	1,264,681	1,234,020
Accumulated earnings	326,772	188,805
Accumulated other comprehensive income	5,203	3,448
Stockholders’ equity	1,597,801	1,427,407
Noncontrolling interest in Summit Holdings	18,467	17,366
Total stockholders’ equity	1,616,268	1,444,773
Total liabilities and stockholders' equity / member's interest	4,308,011	4,067,556
Common Class A
Stockholders' equity / Member's interest
Common stock	1,145	1,134
Common Class B
Stockholders' equity / Member's interest
Common stock	0	0
Summit Materials, LLC
Current assets:
Cash and cash equivalents	418,181	311,319
Accounts receivable, net	254,696	253,256
Costs and estimated earnings in excess of billings	8,666	13,088
Inventories	200,308	204,787
Other current assets	11,428	13,831
Total current assets	893,279	796,281
Property, plant and equipment including finance lease right-of-use assets, net	1,850,169	1,747,449
Goodwill	1,202,291	1,200,699
Intangible assets	47,852	23,498
Operating lease right-of-use assets	28,543	32,777
Other assets	55,000	55,519
Total assets	4,077,134	3,856,223
Current liabilities:
Current portion of debt	6,354	7,942
Current portion of acquisition-related liabilities	7,827	30,200
Accounts payable	121,422	116,970
Accrued expenses	160,801	120,237
Current operating lease liabilities	8,188	8,427
Billings in excess of costs and estimated earnings	16,499	13,864
Total current liabilities	321,091	297,640
Long-term debt	1,892,347	1,851,057
Acquisition-related liabilities	12,246	17,666
Noncurrent operating lease liabilities	21,500	25,381
Other noncurrent liabilities	167,182	151,329
Total liabilities	2,414,366	2,343,073
Stockholders' equity / Member's interest
Member's equity	1,459,211	1,432,718
Accumulated earnings	222,140	101,403
Accumulated other comprehensive income	(18,583)	(20,971)
Total member's interest	1,662,768	1,513,150
Total liabilities and stockholders' equity / member's interest	$ 4,077,134	$ 3,856,223

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Common Class A
Common stock, par value (USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	1,000,000,000.0	1,000,000,000
Common stock, shares issued (in shares)	114,390,595	113,309,385	111,658,927
Common stock, shares outstanding (in shares)	114,390,595	113,309,385
Common Class B
Common stock, par value (USD per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	99	99
Common stock, shares outstanding (in shares)	99	99

XML

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Revenue:
Revenue	$ 2,332,451	$ 2,222,140	$ 2,101,002
Cost of revenue (excluding items shown separately below):
Cost of revenue	1,583,996	1,526,332	1,475,779
General and administrative expenses	309,531	275,813	270,402
Depreciation, depletion, amortization and accretion	221,320	217,102	204,910
Gain on sale of property, plant and equipment	(7,569)	(10,665)	(12,555)
Operating income	225,173	213,558	162,466
Interest expense	103,595	116,509	116,548
Loss on debt financings	4,064	14,565	149
Tax receivable agreement (benefit) expense	(7,559)	16,237	(22,684)
Gain on sale of business	0	0	(12,108)
Other income, net	(3,982)	(11,977)	(15,516)
Income from operations before taxes	129,055	78,224	96,077
Income tax expense (benefit)	(12,185)	17,101	59,747
Net income	141,240	61,123	36,330
Net income attributable to noncontrolling interest	3,273	2,057	2,424
Net income attributable to Summit Inc.	137,967	59,066	33,906
Summit Materials, LLC
Revenue:
Revenue	2,332,451	2,222,140	2,101,002
Cost of revenue (excluding items shown separately below):
Cost of revenue	1,583,996	1,526,332	1,475,779
General and administrative expenses	309,531	275,813	270,402
Depreciation, depletion, amortization and accretion	221,320	217,102	204,910
Gain on sale of property, plant and equipment	(7,569)	(10,665)	(12,555)
Operating income	225,173	213,558	162,466
Interest expense	103,291	115,988	115,831
Loss on debt financings	4,064	14,565	149
Gain on sale of business	0	0	(12,108)
Other income, net	(3,982)	(11,977)	(15,516)
Income from operations before taxes	121,800	94,982	74,110
Income tax expense (benefit)	1,063	6,385	10,273
Net income	120,737	88,597	63,837
Net income attributable to Summit Inc.	$ 120,737	$ 88,597	$ 63,837
Common Class A
Earnings per share of Class A common stock:
Basic (USD per share)	$ 1.21	$ 0.53	$ 0.30
Diluted (USD per share)	$ 1.20	$ 0.52	$ 0.30
Weighted average shares of Class A common stock:
Basic (in shares)	114,014,749	112,204,067	111,380,175
Diluted (in shares)	114,631,768	112,684,718	112,316,646
Common Class A and Restricted Stock
Earnings per share of Class A common stock:
Basic (USD per share)	$ 1.21	$ 0.53	$ 0.30
Weighted average shares of Class A common stock:
Basic (in shares)	114,227,192	112,204,067	111,380,175
Product
Revenue:
Revenue	$ 1,824,679	$ 1,724,462	$ 1,600,159
Cost of revenue (excluding items shown separately below):
Cost of revenue	1,166,266	1,116,662	1,058,544
Product | Summit Materials, LLC
Revenue:
Revenue	1,824,679	1,724,462	1,600,159
Cost of revenue (excluding items shown separately below):
Cost of revenue	1,166,266	1,116,662	1,058,544
Service
Revenue:
Revenue	310,075	306,185	309,099
Cost of revenue (excluding items shown separately below):
Cost of revenue	220,033	218,177	225,491
Service | Summit Materials, LLC
Revenue:
Revenue	310,075	306,185	309,099
Cost of revenue (excluding items shown separately below):
Cost of revenue	220,033	218,177	225,491
Excluding delivery and subcontract revenue
Revenue:
Revenue	2,134,754	2,030,647	1,909,258
Cost of revenue (excluding items shown separately below):
Cost of revenue	1,386,299	1,334,839	1,284,035
Excluding delivery and subcontract revenue | Summit Materials, LLC
Revenue:
Revenue	2,134,754	2,030,647	1,909,258
Cost of revenue (excluding items shown separately below):
Cost of revenue	1,386,299	1,334,839	1,284,035
Delivery and subcontract revenue
Revenue:
Revenue	197,697	191,493	191,744
Cost of revenue (excluding items shown separately below):
Cost of revenue	197,697	191,493	191,744
Delivery and subcontract revenue | Summit Materials, LLC
Revenue:
Revenue	197,697	191,493	191,744
Cost of revenue (excluding items shown separately below):
Cost of revenue	$ 197,697	$ 191,493	$ 191,744

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Net income	$ 141,240	$ 61,123	$ 36,330
Other comprehensive income (loss):
Postretirement liability adjustment	(2,229)	(1,925)	1,661
Foreign currency translation adjustment	4,617	4,716	(9,348)
Income (loss) on cash flow hedges	0	(146)
Income (loss) on cash flow hedges			1,206
Less tax effect of other comprehensive (loss) income items	(575)	0	1,578
Other comprehensive income	1,813	2,645	(4,903)
Comprehensive income	143,053	63,768	31,427
Less comprehensive income attributable to Summit Holdings	3,331	3,935	2,226
Comprehensive income attributable to Summit Materials, Inc. / Summit Materials, LLC	139,722	59,833	29,201
Summit Materials, LLC
Net income	120,737	88,597	63,837
Other comprehensive income (loss):
Postretirement liability adjustment	(2,229)	(1,925)	1,661
Foreign currency translation adjustment	4,617	4,716	(9,348)
Income (loss) on cash flow hedges	0	(146)
Income (loss) on cash flow hedges			1,206
Other comprehensive income	2,388	2,645	(6,481)
Comprehensive income attributable to Summit Materials, Inc. / Summit Materials, LLC	$ 123,125	$ 91,242	$ 57,356

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Cash flow from operating activities:
Net income	$ 141,240	$ 61,123	$ 36,330
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation, depletion, amortization and accretion	227,817	222,862	208,772
Share-based compensation expense	28,857	20,403	25,378
Net gain on asset disposals	(7,548)	(10,294)	(30,093)
Non-cash loss on debt financings	4,064	2,850	0
Change in deferred tax asset, net	(18,384)	16,012	57,490
Other	619	(2,135)	2,018
Decrease (increase) in operating assets, net of acquisitions and dispositions:
Accounts receivable, net	5,467	(37,049)	(5,796)
Inventories	3,339	8,582	(11,598)
Costs and estimated earnings in excess of billings	4,535	5,558	(8,702)
Other current assets	472	5,465	(7,159)
Other assets	10,264	5,085	(106)
(Decrease) increase in operating liabilities, net of acquisitions and dispositions:
Accounts payable	(4,231)	18,903	(13,403)
Accrued expenses	15,476	7,640	(16,544)
Billings in excess of costs and estimated earnings	2,616	1,988	(5,052)
Tax receivable agreement liability	(5,285)	17,291	(21,666)
Other liabilities	(449)	(7,100)	(501)
Net cash provided by operating activities	408,869	337,184	209,368
Cash flow from investing activities:
Acquisitions, net of cash acquired	(123,477)	(5,392)	(246,017)
Purchases of property, plant and equipment	(177,249)	(177,495)	(220,685)
Proceeds from the sale of property, plant and equipment	14,018	21,173	21,635
Proceeds from sale of business	0	0	21,564
Other	1,121	(1,095)	3,804
Net cash used in investing activities	(285,587)	(162,809)	(419,699)
Cash flow from financing activities:
Proceeds from debt issuances	700,000	300,000	64,500
Debt issuance costs	(9,605)	(6,312)	(550)
Payments on debt	(674,045)	(270,229)	(85,042)
Payments on acquisition-related liabilities	(33,257)	(33,883)	(36,504)
Distributions from partnership	0	0	(69)
Proceeds from stock option exercises	1,043	19,076	15,615
Other	(907)	(502)	(1,943)
Net cash (used in) provided by financing activities	(16,771)	8,150	(43,993)
Impact of foreign currency on cash	351	286	(724)
Net increase in cash	106,862	182,811	(255,048)
Cash and cash equivalents—beginning of period	311,319	128,508	383,556
Cash and cash equivalents—end of period	418,181	311,319	128,508
Summit Materials, LLC
Cash flow from operating activities:
Net income	120,737	88,597	63,837
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation, depletion, amortization and accretion	227,513	222,341	208,055
Share-based compensation expense	28,857	20,403	25,378
Net gain on asset disposals	(7,548)	(10,294)	(30,093)
Non-cash loss on debt financings	4,064	2,850	0
Change in deferred tax asset, net	(2,862)	6,350	9,729
Other	619	(2,135)	2,018
Decrease (increase) in operating assets, net of acquisitions and dispositions:
Accounts receivable, net	5,467	(37,049)	(5,796)
Inventories	3,339	8,582	(11,598)
Costs and estimated earnings in excess of billings	4,535	5,558	(8,702)
Other current assets	472	5,465	(7,159)
Other assets	10,264	5,085	(106)
(Decrease) increase in operating liabilities, net of acquisitions and dispositions:
Accounts payable	(4,231)	18,208	(13,989)
Accrued expenses	15,476	8,335	(16,653)
Billings in excess of costs and estimated earnings	2,616	1,988	(5,052)
Other liabilities	(449)	(7,100)	(501)
Net cash provided by operating activities	408,869	337,184	209,368
Cash flow from investing activities:
Acquisitions, net of cash acquired	(123,477)	(5,392)	(246,017)
Purchases of property, plant and equipment	(177,249)	(177,495)	(220,685)
Proceeds from the sale of property, plant and equipment	14,018	21,173	21,635
Proceeds from sale of business	0	0	21,564
Other	1,121	(1,095)	3,804
Net cash used in investing activities	(285,587)	(162,809)	(419,699)
Cash flow from financing activities:
Capital contributions by member	1,043	19,076	15,615
Proceeds from debt issuances	700,000	300,000	64,500
Debt issuance costs	(9,605)	(6,312)	(550)
Payments on debt	(674,045)	(270,229)	(85,042)
Payments on acquisition-related liabilities	(30,757)	(31,383)	(34,004)
Distributions from partnership	(2,500)	(2,500)	(2,569)
Other	(907)	(502)	(1,943)
Net cash (used in) provided by financing activities	(16,771)	8,150	(43,993)
Impact of foreign currency on cash	351	286	(724)
Net increase in cash	106,862	182,811	(255,048)
Cash and cash equivalents—beginning of period	311,319	128,508	383,556
Cash and cash equivalents—end of period	$ 418,181	$ 311,319	$ 128,508

XML

Consolidated Statements of Changes in Stockholders' Equity / Member's Interest - USD ($) $ in Thousands	Total	Common Class A	Common Class B	Accumulated Earnings/Deficit	Accumulated Other Comprehensive Income (Loss)	Common Stock Common Class A	Common Stock Common Class B	Additional Paid-in Capital	Noncontrolling Interest	Summit Materials, LLC	Summit Materials, LLC Members' equity	Summit Materials, LLC Accumulated Earnings/Deficit	Summit Materials, LLC Accumulated Other Comprehensive Income (Loss)
Beginning balance stockholders' equity at Dec. 30, 2017	$ 1,271,721			$ 95,833	$ 7,386	$ 1,104	$ 0	$ 1,154,220	$ 13,178
Beginning balance stockholders' equity (in shares) at Dec. 30, 2017						110,350,594	100
Beginning balance members' interest at Dec. 30, 2017										$ 1,291,594	$ 1,359,760	$ (51,031)	$ (17,135)
Increase (Decrease) In Stockholders' Equity [Rollforward]
Net contributed capital										15,615	15,615
Net income	36,330			33,906					2,424	63,837		63,837
LP Unit exchanges (in shares)						254,102
LP Unit exchanges	0					$ 2		929	(931)
Other comprehensive income (loss), net of tax	(4,903)				(4,705)				(198)	(6,481)			(6,481)
Distributions										(2,569)	(2,569)
Stock option exercises (in shares)						863,898
Stock option exercises	15,616					$ 9		15,607
Share-based compensation	25,378							25,378		25,378	25,378
Distributions from partnership	(69)								(69)
Shares redeemed to settle taxes and other (in shares)						190,333	1
Shares redeemed to settle taxes and other	(1,928)					$ 2		(1,930)		(1,943)	(1,943)
Ending balance stockholders' equity at Dec. 29, 2018	1,342,145			129,739	2,681	$ 1,117	$ 0	1,194,204	14,404				(23,616)
Ending balance stockholders' equity (in shares) at Dec. 29, 2018		111,658,927				111,658,927	99
Ending balance members' interest at Dec. 29, 2018										1,385,431	1,396,241	12,806	(23,616)
Increase (Decrease) In Stockholders' Equity [Rollforward]
Net contributed capital										19,076	19,076
Net income	61,123			59,066					2,057	88,597		88,597
LP Unit exchanges (in shares)		185,861				185,861
LP Unit exchanges	0					$ 2		971	(973)
Other comprehensive income (loss), net of tax	$ 2,645				767				1,878	2,645			2,645
Distributions										(2,500)	(2,500)
Stock option exercises (in shares)	1,065,446	1,065,446				1,065,446
Stock option exercises	$ 19,076					$ 11		19,065
Share-based compensation	20,403							20,403		20,403	20,403
Shares redeemed to settle taxes and other (in shares)		399,151				399,151	0
Shares redeemed to settle taxes and other	(619)					$ 4		(623)		(502)	(502)
Ending balance stockholders' equity at Dec. 28, 2019	1,444,773			188,805	3,448	$ 1,134	$ 0	1,234,020	17,366				(20,971)
Ending balance stockholders' equity (in shares) at Dec. 28, 2019		113,309,385	99			113,309,385	99
Ending balance members' interest at Dec. 28, 2019										1,513,150	1,432,718	101,403	(20,971)
Increase (Decrease) In Stockholders' Equity [Rollforward]
Net contributed capital										1,043	1,043
Net income	141,240									120,737		120,737
LP Unit exchanges (in shares)		376,487
Other comprehensive income (loss), net of tax	1,813									2,388			2,388
Distributions										(2,500)	(2,500)
Stock option exercises (in shares)		54,517
Share-based compensation										28,857	28,857
Shares redeemed to settle taxes and other (in shares)		650,206
Shares redeemed to settle taxes and other										(907)	(907)
Ending balance stockholders' equity at Jan. 02, 2021	$ 1,616,268			$ 326,772	$ 5,203	$ 1,145	$ 0	$ 1,264,681	$ 18,467				(18,583)
Ending balance stockholders' equity (in shares) at Jan. 02, 2021		114,390,595	99			114,390,595	99
Ending balance members' interest at Jan. 02, 2021										$ 1,662,768	$ 1,459,211	$ 222,140	$ (18,583)

XML

Summary of Organization and Significant Accounting Policies

12 Months Ended

Jan. 02, 2021

Company Information

Summary of Organization and Significant Accounting Policies

Summary of Organization and Significant Accounting Policies

Summit Materials, Inc. (“Summit Inc.” 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, 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 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.

On September 23, 2014, Summit Inc. was formed as a Delaware corporation to be a holding company. Its sole material asset is a controlling equity interest in Summit Materials Holdings L.P. (“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 ("IPO"), Summit Inc. became a holding corporation operating and controlling all of the business and affairs of Summit Holdings and its subsidiaries. Summit Inc. owns the majority of the partnership interests of Summit Holdings (see note 11, Stockholders’ Equity).  Summit Materials, LLC (“Summit LLC”) an indirect wholly owned subsidiary of Summit Holdings, conducts the majority of our operations. Continental Cement Company, L.L.C. (“Continental Cement”) is also a wholly owned subsidiary of Summit LLC. Summit Materials Finance Corp. (“Summit Finance”), an indirect wholly owned subsidiary of Summit LLC, has jointly issued our Senior Notes as described below.

Principles of Consolidation—The consolidated financial statements include the accounts of Summit Inc. and its majority owned subsidiaries. All intercompany balances and transactions have been eliminated. As a result of the Reorganization, Summit Holdings became a variable interest entity over which Summit Inc. has 100% voting power and control and for which Summit Inc. has the obligation to absorb losses and the right to receive benefits.

The Company’s fiscal year is based on a 52-53 week year with each quarter composed of 13 weeks ending on a Saturday. The year ended January 2, 2021 was a 53-week year.

For a summary of the changes in Summit Inc.’s ownership of Summit Holdings, see Note 11, Stockholders’ Equity.

The Company attributes consolidated stockholders’ equity and net income separately to the controlling and noncontrolling interests. The Company accounts for investments in entities for which it has an ownership of 20% to 50% using the equity method of accounting. 

Use of Estimates—Preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles (“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, the tax receivable agreement (“TRA”) liability, 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.  

Business and Credit Concentrations—The Company’s operations are conducted primarily across 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 2020, 2019 or 2018.

Accounts Receivable—Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the collectability of individual accounts. In establishing the allowance, management considers historical losses adjusted to take into account current market conditions and its customers’ financial condition, the amount of receivables in dispute, the current receivables aging and current payment terms. Balances that remain outstanding after reasonable collection efforts are exercised are written off through a charge to the valuation allowance.

The balances billed but not paid by customers, pursuant to retainage provisions included in contracts, are generally due upon completion of the contracts.

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.

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. Revenue for product sales is recognized when evidence of an arrangement exists and when control passes, which generally is when the product is shipped. 

Aggregates and cement products are sold point-of-sale through purchase orders. When the product is sold on account, collectability typically occurs 30 to 60 days after the sale.  Revenue is recognized when cash is received from the customer at the point of sale or when the products are delivered or collected on site. There are no other timing implications that will create a contract asset or liability, and contract modifications are unlikely given the timing and nature of the transaction. Material sales are likely to have multiple performance obligations if the product is sold with delivery. In these instances, delivery most often occurs on the same day as the control of the product transfers to the customer. As a result, even in the case of multiple performance obligations, the performance obligations are satisfied concurrently and revenue is recognized simultaneously. 

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.

Collectability of service contracts is due reasonably after certain milestones in the contract are performed. Milestones vary by project, but are typically calculated using monthly progress based on the percentage of completion or a customer’s engineer review of progress. The majority of the time, collection occurs within 90 days of billing and cash is received within the same fiscal year as services performed. On most projects, the customer will withhold a portion of the invoice for retainage, which may last longer than a year depending on the job. 

Revenue derived from paving and related services is recognized over time based on the proportion of costs incurred to date relative to the total estimated costs at completion, which approximates progress towards completion. Under this 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. The majority of our construction service contracts, and therefore, revenue, are opened and completed within one year, with most activity during the spring, summer and fall. 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 actual cost to total estimated cost 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 year ended January 2, 2021.

We recognize claims when the amount of the claim can be estimated reliably and it is legally enforceable. In evaluating these criteria, we consider the contractual basis for the claim, the cause of any additional costs incurred, the reasonableness of those costs and the objective evidence available to support the claim.

When the contract includes variable consideration, we estimate the amount of consideration to which we will be entitled in exchange for transferring the promised goods or services to a customer. The amount of estimated variable consideration included in the transaction price is the amount for which it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Types of variable consideration include, but are not limited to, liquidated damages and other performance penalties and production and placement bonuses. 

The majority of contract modifications relate to the original contract and are often an extension of the original performance obligation. Predominately, modifications are not distinct from the terms in the original contract; therefore, they are considered part of a single performance obligation. We account for the modification using a cumulative catch-up adjustment. However, there are instances where goods or services in a modification are distinct from those transferred prior to the modification. In these situations, we account for the modifications as either a separate contract or prospectively depending on the facts and circumstances of the modification. 

Generally, construction contracts contain mobilization costs which are categorized as costs to fulfill a contract. These costs are excluded from any measure of progress toward contract fulfillment. These costs do not result in the transfer of control of a good or service to the customer and are amortized over the life of the contract. 

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.

Inventories—Inventories consist of stone that has been removed from quarries and processed for future sale, cement, raw materials and finished concrete blocks. Inventories are valued at the lower of cost or net realizable value and are accounted for on a first-in first-out basis or an average cost basis. If items become obsolete or otherwise unusable or if quantities exceed what is projected to be sold within a reasonable period of time, they will be charged to costs of revenue in the period that the items are designated as obsolete or excess inventory. Stripping costs are costs of removing overburden and waste material to access aggregate materials and are expensed as incurred.

Property, Plant and Equipment, net—Property, plant and equipment are recorded at cost, less accumulated depreciation, depletion and amortization. Expenditures for additions and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Repair and maintenance costs that do not substantially expand productive capacity or extend the life of property, plant and equipment are expensed as incurred.

Landfill airspace is included in property, plant and equipment at cost and is amortized based on the portion of the airspace used during the period compared to the gross estimated value of available airspace, which is updated periodically as circumstances dictate. Management reassesses the landfill airspace capacity with any changes in value recorded in cost of

revenue. Capitalized landfill costs include expenditures for the acquisition of land and related airspace, engineering and permitting costs, cell construction costs and direct site improvement costs.

Upon disposal of an asset, the cost and related accumulated depreciation are removed from the Company’s accounts and any gain or loss is included in general and administrative expenses.

The Company reviews the carrying value of property, plant and equipment for impairment whenever events or circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. Such indicators may include, among others, deterioration in general economic conditions, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows or a trend of negative or declining cash flows over multiple periods.

Property, plant and equipment is tested for impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. As a result, the property, plant and equipment impairment test is at a significantly lower level than the level at which goodwill is tested for impairment. In markets where the Company does not produce downstream products, such as ready-mix concrete, asphalt paving mix and paving and related services, the lowest level of largely independent identifiable cash flows is at the individual aggregates operation or a group of aggregates operations collectively serving a local market or the cement operations. Conversely, in vertically-integrated markets, the cash flows of the downstream and upstream businesses are not largely independently identifiable and the vertically-integrated operations are considered the lowest level of largely independent identifiable cash flows.

Aggregates mineral bearing land and interests are included in property, plant and equipment. When leased mineral interests are acquired during a business combination, they are valued using an excess earnings approach for the life of the proven and probable reserves. Depletion expense is recorded using a units of production methodology.

Accrued Mining and Landfill Reclamation—The mining reclamation reserve and financial commitments for landfill closure and post-closure activities are based on management’s estimate of future cost requirements to reclaim property at both currently operating and closed sites. Estimates of these obligations have been developed based on management’s interpretation of current requirements and proposed regulatory changes and are intended to approximate fair value. Costs are estimated in current dollars, inflated until the expected time of payment, and then discounted back to present value using a credit-adjusted risk-free rate on obligations of similar maturity, adjusted to reflect the Company’s credit rating. Changes in the credit-adjusted risk-free rate do not change recorded liabilities. However, subsequent increases in the recognized obligations are measured using a current credit-adjusted risk-free rate. Decreases in the recognized obligations are measured at the initial credit-adjusted risk-free rate.

Significant changes in inflation rates, or the amount or, timing of future cost estimates typically result in both (1) a current adjustment to the recorded liability (and corresponding adjustment to the asset) and (2) a change in accretion of the liability and depreciation of the asset to be recorded prospectively over the remaining capacity of the unmined quarry or landfill.

Goodwill—Goodwill represents the purchase price paid in excess of the fair value of net tangible and intangible assets acquired. Goodwill recorded in connection with the Company’s acquisitions is primarily attributable to the expected profitability, assembled workforces of the acquired businesses and the synergies expected to arise after the Company’s acquisition of those businesses. Goodwill is not amortized, but is tested annually for impairment as of the first day of the fourth quarter and at any time that events or circumstances indicate that goodwill may be impaired. A qualitative approach may first be applied to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If, as a result of the qualitative assessment, it is determined that an impairment is more likely than not, the two-step quantitative impairment test is then performed, otherwise further analysis is not required. The two-step impairment test first identifies potential goodwill impairment for each reporting unit and then, if necessary, measures the amount of the impairment loss.

Income Taxes—Summit Inc. is a corporation subject to income taxes in the United States. Certain subsidiaries, including Summit Holdings, or subsidiary groups of the Company are taxable separate from Summit Inc. The provision for income taxes, or Summit Inc.’s proportional share of the provision, are included in the Company’s consolidated financial statements.

The Company’s deferred income tax assets and liabilities are computed for differences between the tax basis and financial statement amounts that will result in taxable or deductible amounts in the future. The computed deferred balances are based on enacted tax laws and applicable rates for the periods in which the differences are expected to affect taxable income. A

valuation allowance is recognized for deferred tax assets if it is more likely than not that some portion or all of the net deferred tax assets will not be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines it would be able to realize its deferred tax assets for which a valuation allowance had been recorded then an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

The Company evaluates the tax positions taken on income tax returns that remain open and positions expected to be taken on the current year tax returns to identify uncertain tax positions. Unrecognized tax benefits on uncertain tax positions are recorded on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is more than 50 percent likely to be realized is recognized. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense (benefit).

Tax Receivable Agreement— When Class A limited partnership units of Summit Holdings (“LP Units”) are exchanged for shares of Class A common stock of Summit Inc. or Summit Inc. purchases LP Units for cash, this results in increases in Summit Inc.’s share of the tax basis of the tangible and intangible assets, which increases the tax depreciation and amortization deductions that otherwise would not have been available to Summit Inc.  These increases in tax basis and tax depreciation and amortization deductions are expected to reduce the amount of cash taxes that we would otherwise be required to pay in the future. Prior to our IPO, we entered into a TRA with the pre-IPO owners that requires us to pay the pre-IPO owners or their permitted assignees 85% of the amount of cash savings, if any, in U.S. federal, state, and local income tax that we actually realize as a result of these exchanges.  These benefits include (1) increases in the tax basis of tangible and intangible assets of Summit Holdings and certain other tax benefits related to entering into the TRA, (2) tax benefits attributable to payments under the TRA, or (3) under certain circumstances such as an early termination of the TRA, we are deemed to realize, as a result of the increases in tax basis in connection with exchanges by the pre-IPO owners described above and certain other tax benefits attributable to payments under the TRA.

As noted above, we periodically evaluate the realizability of the deferred tax assets resulting from the exchange of LP Units for Class A common stock. If the deferred tax assets are determined to be realizable, we then assess whether payment of amounts under the TRA have become probable. If so, we record a TRA liability equal to 85% of such deferred tax assets. In subsequent periods, we assess the realizability of all of our deferred tax assets subject to the TRA. Should we determine a deferred tax asset with a valuation allowance is realizable in a subsequent period, the related valuation allowance will be released and consideration of a corresponding TRA liability will be assessed. The realizability of deferred tax assets, including those subject to the TRA, is dependent upon the generation of future taxable income during the periods in which those deferred tax assets become deductible and consideration of prudent and feasible tax-planning strategies.

The measurement of the TRA liability is accounted for as a contingent liability. Therefore, once we determine that a payment to a pre-IPO owner has become probable and can be estimated, the estimate of payment will be accrued.

Earnings per Share—The Company computes basic earnings per share attributable to stockholders by dividing income attributable to Summit Inc. by the weighted-average shares of Class A common stock outstanding. Diluted earnings per share reflects the potential dilution beyond shares for basic earnings per share that could occur if securities or other contracts to issue common stock were exercised, converted into common stock, or resulted in the issuance of common stock that would have shared in the Company’s earnings. Since the Class B common stock has no economic value, those shares are not included in the weighted-average common share amount for basic or diluted earnings per share. In addition, as the shares of Class A common stock are issued by Summit Inc., the earnings and equity interests of noncontrolling interests are not included in basic earnings per share.

Prior Year Reclassifications — We have reclassified transaction costs of $2.2 million and $4.2 million for the years ended 2019 and 2018, respectively, from a separate line item included in operating income to general and administrative expenses to conform to the current year presentation. In addition, we reclassified $10.7 million and $12.6 million for the years ended 2019 and 2018, respectively, of gain on sale of property, plant and equipment from general and administrative expenses to its own line item included within operating income, also to conform to the current year presentation.

New Accounting Standards — In February 2016, the Financial Accounting Standards Board FASB ("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 $36.8 million of operating lease right-of-use assets and $36.8 million operating lease liabilities. The standard had no material impact on our statements of operations and 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.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which reduces the accounting complexity of implementing a cloud computing service arrangement. The ASU aligns the capitalization of implementation costs among hosting arrangements and costs incurred to develop internal-use software. We adopted this ASU in the first quarter of 2020 and the adoption of this ASU did not have a material impact on the consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework Changes to The Disclosure Requirements for Defined Benefits Plans, which modifies the disclosure requirements of employer-sponsored defined benefit and other postretirement benefits plans. The ASU is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. The adoption of this new ASU did not have a material impact on our consolidated financial results.

Summit Materials, LLC

Company Information

Summary of Organization and Significant Accounting Policies

Summary of Organization and Significant Accounting Policies

Summit Materials, LLC (“Summit LLC” and, together with its subsidiaries, 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, 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 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”) 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.

Principles of Consolidation–The consolidated financial statements include the accounts of Summit LLC and its majority owned subsidiaries. All intercompany balances and transactions have been eliminated. The Company attributes consolidated member’s interest and net income separately to the controlling and noncontrolling interests. Noncontrolling interests in consolidated subsidiaries represent a 20% ownership in Ohio Valley Asphalt, LLC and, prior to the initial public offering (“IPO”) and concurrent purchase of the noncontrolling interests Continental Cement Company, L.L.C. (“Continental Cement”), a 30% redeemable ownership in Continental Cement. The Company accounts for investments in entities for which it has an ownership of 20% to 50% using the equity method of accounting.

The Company’s fiscal year is based on a 52-53 week year with each quarter composed of 13 weeks ending on a Saturday. The year ended January 2, 2021 was a 53-week year.

Use of Estimates— Preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles (“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.

Business and Credit Concentrations—The Company’s operations are conducted primarily across 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 2020, 2019 or 2018.

Accounts Receivable—Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the collectability of individual accounts. In establishing the allowance, management considers historical losses adjusted to take into account current market conditions and its customers’ financial condition, the amount of receivables in dispute, the current receivables aging and current payment terms. Balances that remain outstanding after reasonable collection efforts are exercised are written off through a charge to the valuation allowance.

The balances billed but not paid by customers, pursuant to retainage provisions included in contracts, are generally due upon completion of the contracts.

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.

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. Revenue for product sales is recognized when evidence of an arrangement exists and when control passes, which generally is when the product is shipped.

Aggregates and cement products are sold point-of-sale through purchase orders. When the product is sold on account, collectability typically occurs 30 to 60 days after the sale. Revenue is recognized when cash is received from the customer at the point of sale or when the products are delivered or collected on site. There are no other timing implications that will create a contract asset or liability, and contract modifications are unlikely given the timing and nature of the transaction. Material sales are likely to have multiple performance obligations if the product is sold with delivery. In these instances, delivery most often occurs on the same day as the control of the product transfers to the customer. As a result, even in the case of multiple performance obligations, the performance obligations are satisfied concurrently and revenue is recognized simultaneously.

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.

Collectability of service contracts is due reasonably after certain milestones in the contract are performed. Milestones vary by project, but are typically calculated using monthly progress based on the percentage of completion or a customer’s engineer review of progress. The majority of the time, collection occurs within 90 days of billing and cash is received within the same fiscal year as services performed. On most projects, the customer will withhold a portion of the invoice for retainage, which may last longer than a year depending on the job.

Revenue derived from paving and related services is recognized over time based on the proportion of costs incurred to date relative to the total estimated costs at completion, which approximates progress towards completion. Under this 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. The majority of our construction service contracts, and therefore, revenue, are opened and completed within one year, with most activity during the spring, summer and fall. 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 actual cost to total estimated cost 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 year ended January 2, 2021.

We recognize claims when the amount of the claim can be estimated reliably and it is legally enforceable. In evaluating these criteria, we consider the contractual basis for the claim, the cause of any additional costs incurred, the reasonableness of those costs and the objective evidence available to support the claim.

When the contract includes variable consideration, we estimate the amount of consideration to which we will be entitled in exchange for transferring the promised goods or services to a customer. The amount of estimated variable consideration included in the transaction price is the amount for which it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Types of variable consideration include, but are not limited to, liquidated damages and other performance penalties and production and placement bonuses.

The majority of contract modifications relate to the original contract and are often an extension of the original performance obligation. Predominately, modifications are not distinct from the terms in the original contract; therefore, they are considered part of a single performance obligation. We account for the modification using a cumulative catch-up adjustment. However, there are instances where goods or services in a modification are distinct from those transferred prior to the modification. In these situations, we account for the modifications as either a separate contract or prospectively depending on the facts and circumstances of the modification.

Generally, construction contracts contain mobilization costs which are categorized as costs to fulfill a contract. These costs are excluded from any measure of progress toward contract fulfillment. These costs do not result in the transfer of control of a good or service to the customer and are amortized over the life of the contract.

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.

Inventories—Inventories consist of stone that has been removed from quarries and processed for future sale, cement, raw materials and finished concrete blocks. Inventories are valued at the lower of cost or net realizable value and are accounted for on a first-in first-out basis or an average cost basis. If items become obsolete or otherwise unusable or if quantities exceed what is projected to be sold within a reasonable period of time, they will be charged to costs of revenue in the period that the items are designated as obsolete or excess inventory. Stripping costs are costs of removing overburden and waste material to access aggregate materials and are expensed as incurred.

Property, Plant and Equipment, net—Property, plant and equipment are recorded at cost, less accumulated depreciation, depletion and amortization. Expenditures for additions and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Repair and maintenance costs that do not substantially expand productive capacity or extend the life of property, plant and equipment are expensed as incurred.

Landfill airspace is included in property, plant and equipment at cost and is amortized based on the portion of the airspace used during the period compared to the gross estimated value of available airspace, which is updated periodically as circumstances dictate. Management reassesses the landfill airspace capacity with any changes in value recorded in cost of revenue. Capitalized landfill costs include expenditures for the acquisition of land and related airspace, engineering and permitting costs, cell construction costs and direct site improvement costs.

Upon disposal of an asset, the cost and related accumulated depreciation are removed from the Company’s accounts and any gain or loss is included in general and administrative expenses.

The Company reviews the carrying value of property, plant and equipment for impairment whenever events or circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. Such indicators may include, among others, deterioration in general economic conditions, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows or a trend of negative or declining cash flows over multiple periods.

Property, plant and equipment is tested for impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. As a result, the property, plant and equipment impairment test is at a significantly lower level than the level at which goodwill is tested for impairment. In markets where the Company does not produce downstream products, such as ready-mix concrete, asphalt paving mix and paving and related services, the lowest level of largely independent identifiable cash flows is at the individual aggregates operation or a group of aggregates operations collectively serving a local market or the cement operations. Conversely, in vertically-integrated markets, the cash flows of the downstream and upstream businesses are not largely independently identifiable and the vertically-integrated operations are considered the lowest level of largely independent identifiable cash flows.

Aggregates mineral bearing land and interests are included in property, plant and equipment. When leased mineral interests are acquired during a business combination, they are valued using an excess earnings approach for the life of the proven and probable reserves. Depletion expense is recorded using a units of production methodology.

Accrued Mining and Landfill Reclamation—The mining reclamation reserve and financial commitments for landfill closure and post-closure activities are based on management’s estimate of future cost requirements to reclaim property at both currently operating and closed sites. Estimates of these obligations have been developed based on management’s interpretation of current requirements and proposed regulatory changes and are intended to approximate fair value. Costs are estimated in current dollars, inflated until the expected time of payment, and then discounted back to present value using a credit-adjusted risk-free rate on obligations of similar maturity, adjusted to reflect the Company’s credit rating. Changes in the credit-adjusted risk-free rate do not change recorded liabilities. However, subsequent increases in the recognized obligations are measured using a current credit-adjusted risk-free rate. Decreases in the recognized obligations are measured at the initial credit-adjusted risk-free rate.

Significant changes in inflation rates, or the amount or, timing of future cost estimates typically result in both (1) a current adjustment to the recorded liability (and corresponding adjustment to the asset) and (2) a change in accretion of the liability and depreciation of the asset to be recorded prospectively over the remaining capacity of the unmined quarry or landfill.

Goodwill—Goodwill represents the purchase price paid in excess of the fair value of net tangible and intangible assets acquired. Goodwill recorded in connection with the Company’s acquisitions is primarily attributable to the expected profitability, assembled workforces of the acquired businesses and the synergies expected to arise after the Company’s acquisition of those businesses. Goodwill is not amortized, but is tested annually for impairment as of the first day of the fourth quarter and at any time that events or circumstances indicate that goodwill may be impaired. A qualitative approach may first be applied to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If, as a result of the qualitative assessment, it is determined that an impairment is more likely than not, the two-step quantitative impairment test is then performed, otherwise further analysis is not required. The two-step impairment test first identifies potential goodwill impairment for each reporting unit and then, if necessary, measures the amount of the impairment loss.

Income Taxes—As a limited liability company, the Company’s federal and state income tax attributes are generally passed to its member. However, certain subsidiaries, or subsidiary groups, of the Company are taxable entities subject to income taxes in the United States and Canada, the provisions for which are included in the consolidated financial statements. Significant judgments and estimates are required in the determination of the consolidated income tax expense.

The Company’s deferred income tax assets and liabilities are computed for differences between the tax basis and financial statement amounts that will result in taxable or deductible amounts in the future. The computed deferred balances are based on enacted tax laws and applicable rates for the periods in which the differences are expected to affect taxable income. A valuation allowance is recognized for deferred tax assets if it is more likely than not that some portion or all of the net deferred tax assets will not be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines it would be able to realize its deferred tax assets for which a

valuation allowance had been recorded then an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

The Company evaluates the tax positions taken on income tax returns that remain open and positions expected to be taken on the current year tax returns to identify uncertain tax positions. Unrecognized tax benefits on uncertain tax positions are recorded on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is more than 50 percent likely to be realized is recognized. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense (benefit).

Prior Year Reclassifications — We have reclassified transaction costs of $2.2 million and $4.2 million for the years ended 2019 and 2018, respectively, from a separate line item included in operating income to general and administrative expenses to conform to the current year presentation. In addition, we reclassified $10.7 million and $12.6 million for the years ended 2019 and 2018, respectively, of gain on sale of property, plant and equipment from general and administrative expenses to its own line item included within operating income, also to conform to the current year presentation.

New Accounting Standards — In February 2016, the Financial Accounting Standards Board FASB ("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 $36.8 million of operating lease right-of-use assets and $36.8 million operating lease liabilities. The standard had no material impact on our statements of operations and 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.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which reduces the accounting complexity of implementing a cloud computing service arrangement. The ASU aligns the capitalization of implementation costs among hosting arrangements and costs incurred to develop internal-use software. We adopted this ASU in the first quarter of 2020 and the adoption of this ASU did not have a material impact on the consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework Changes to The Disclosure Requirements for Defined Benefits Plans, which modifies the disclosure requirements of employer-sponsored defined benefit and other postretirement benefits plans. The ASU is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. The adoption of this new ASU did not have a material impact on our consolidated financial results.

XML

Acquisitions

12 Months Ended

Jan. 02, 2021

Acquisitions

Acquisitions

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. The purchase price allocation for the 2020 acquisitions has not yet been finalized due to the recent timing of the acquisitions. The following table summarizes the Company’s acquisitions by region and year:

	2020	2019	2018
West	2	2	5
East (1)	1	—	7

______________________

(1)    In addition, the Company acquired certain assets of a small ready-mix concrete operation in the second quarter of 2018.

The table below summarizes aggregated information regarding the fair values of the assets acquired and liabilities assumed as of the respective acquisition dates.

	2020		2019
Financial assets	$	8,696	$	—
Inventories	2,856		52
Property, plant and equipment	130,042		3,542
Other assets	2,790		—
Financial liabilities	(4,469)		(36)
Other long-term liabilities	(16,069)		—
Net assets acquired	123,846		3,558
Goodwill	—		1,834
Purchase price	123,846		5,392
Other	(369)		—
Net cash paid for acquisitions	$	123,477	$	5,392

Acquisition-Related Liabilities—A number of acquisition-related liabilities have been recorded subject to terms in the relevant purchase agreements, including deferred consideration and noncompete payments. Noncompete payments have been accrued where certain former owners of newly acquired companies have entered into standard noncompete arrangements. Subject to terms and conditions stated in these noncompete agreements, payments are generally made over a five-year period. Deferred consideration is purchase price consideration paid in the future as agreed to in the purchase agreement and is not contingent on future events. Deferred consideration is generally scheduled to be paid in years ranging from 5 to 20 years in annual installments. The remaining payments due under these noncompete and deferred consideration agreements are as follows: 

2021	$	9,705
2022	3,411
2023	2,657
2024	2,620
2025	2,567
Thereafter	4,454
Total scheduled payments	25,414
Present value adjustments	(4,766)
Total noncompete obligations and deferred consideration	$	20,648

Accretion on the deferred consideration and noncompete obligations is recorded in interest expense.

Summit Materials, LLC

Acquisitions

Acquisitions

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. The purchase price allocation for the 2020 acquisitions has not yet been finalized due to the recent timing of the acquisitions. The following table summarizes the Company’s acquisitions by region and year:

	2020	2019	2018
West	2	2	5
East (1)	1	—	7

______________________

(1)     In addition, the Company acquired certain assets of a small ready-mix concrete operation in the second quarter of 2018.

The table below summarizes aggregated information regarding the fair values of the assets acquired and liabilities assumed as of the respective acquisition dates.

	2020		2019
Financial assets	$	8,696	$	—
Inventories	2,856		52
Property, plant and equipment	130,042		3,542
Other assets	2,790		—
Financial liabilities	(4,469)		(36)
Other long-term liabilities	(16,069)		—
Net assets acquired	123,846		3,558
Goodwill	—		1,834
Purchase price	123,846		5,392
Other	(369)		—
Net cash paid for acquisitions	$	123,477	$	5,392

Acquisition-Related Liabilities—A number of acquisition-related liabilities have been recorded subject to terms in the relevant purchase agreements, including deferred consideration and noncompete payments. Noncompete payments have been accrued where certain former owners of newly acquired companies have entered into standard noncompete arrangements. Subject to terms and conditions stated in these noncompete agreements, payments are generally made over a five-year period. Deferred consideration is purchase price consideration paid in the future as agreed to in the purchase agreement and is not contingent on future events. Deferred consideration is generally scheduled to be paid in years ranging from 5 to 20 years in annual installments. The remaining payments due under these noncompete and deferred consideration agreements are as follows:

2021	$	7,205
2022	3,411
2023	2,657
2024	2,620
2025	2,567
Thereafter	4,454
Total scheduled payments	22,914
Present value adjustments	(4,704)
Total noncompete obligations and deferred consideration	$	18,210

Accretion on the deferred consideration and noncompete obligations is recorded in interest expense.

XML

Goodwill

12 Months Ended

Jan. 02, 2021

Goodwill

Goodwill

As of January 2, 2021, the Company had 11 reporting units with goodwill for which the annual goodwill impairment test was completed. We perform the annual impairment test on the first day of the fourth quarter each year. We initially perform a qualitative analysis. As a result of this analysis, it was determined that it is more likely than not that the fair value of seven reporting units were greater than its carrying value. For the remaining reporting units we perform a two-step quantitative analysis. Step 1 of that analysis compares the estimated the fair value of the reporting units using an income approach (i.e., a discounted cash flow technique) and a market approach to the carrying value of the reporting unit. If the estimated fair value exceeds its carrying value, the goodwill of the reporting unit is not considered impaired. If the carrying value of the reporting unit exceeds its fair value, we proceed to the second step to measure the amount of potential impairment loss. Based on this analysis, it was determined that the reporting units’ fair values were greater than their carrying values and no impairment charges were recognized in 2020. The accumulated impairment charges recognized in periods prior to 2018 totaled $68.2 million.

These estimates of a reporting unit’s fair value involve significant management estimates and assumptions, including but not limited to sales prices of similar assets, assumptions related to future profitability, cash flows, and discount rates. These estimates are based upon historical trends, management’s knowledge and experience and overall economic factors, including projections of future earnings potential. Developing discounted future cash flow estimates in applying the income approach required management to evaluate its intermediate to longer-term strategies, including, but not limited to, estimates about revenue growth, operating margins, capital requirements, inflation and working capital management. The development of

appropriate rates to discount the estimated future cash flows required the selection of risk premiums, which can materially affect the present value of estimated future cash flows.

The following table presents goodwill by reportable segments and in total:

	West		East		Cement		Total
Balance—December 29, 2018	$	580,567	$	406,805	$	204,656	$	1,192,028
Acquisitions	1,657		3,621		—		5,278
Foreign currency translation adjustments	2,393		—		—		2,393
Balance—December 28, 2019	$	584,617	$	410,426	$	204,656	$	1,199,699
Acquisitions (1)	19		—		—		19
Foreign currency translation adjustments	1,573		—		—		1,573
Balance—January 2, 2021	$	586,209	$	410,426	$	204,656	$	1,201,291

______________________

(1)Reflects goodwill from 2020 acquisitions and working capital adjustments from prior year acquisitions.

Summit Materials, LLC

Goodwill

Goodwill

As of January 2, 2021, the Company had 11 reporting units with goodwill for which the annual goodwill impairment test was completed. We perform the annual impairment test on the first day of the fourth quarter each year. We initially perform a qualitative analysis. As a result of this analysis, it was determined that it is more likely than not that the fair value of seven reporting units were greater than its carrying value. For the remaining reporting units we perform a two-step quantitative analysis. Step 1 of that analysis compares the estimated the fair value of the reporting units using an income approach (i.e., a discounted cash flow technique) and a market approach to the carrying value of the reporting unit. If the estimated fair value

exceeds its carrying value, the goodwill of the reporting unit is not considered impaired. If the carrying value of the reporting unit exceeds its fair value, we proceed to the second step to measure the amount of potential impairment loss. Based on this analysis, it was determined that the reporting units’ fair values were greater than their carrying values and no impairment charges were recognized in 2020. The accumulated impairment charges recognized in periods prior to 2018 totaled $68.2 million.

These estimates of a reporting unit’s fair value involve significant management estimates and assumptions, including but not limited to sales prices of similar assets, assumptions related to future profitability, cash flows, and discount rates. These estimates are based upon historical trends, management’s knowledge and experience and overall economic factors, including projections of future earnings potential. Developing discounted future cash flow estimates in applying the income approach required management to evaluate its intermediate to longer-term strategies, including, but not limited to, estimates about revenue growth, operating margins, capital requirements, inflation and working capital management. The development of appropriate rates to discount the estimated future cash flows required the selection of risk premiums, which can materially affect the present value of estimated future cash flows.

The following table presents goodwill by reportable segments and in total:

	West		East		Cement		Total
Balance—December 29, 2018	$	581,567	$	406,805	$	204,656	$	1,193,028
Acquisitions	1,657		3,621		—		5,278
Foreign currency translation adjustments	2,393		—		—		2,393
Balance—December 28, 2019	$	585,617	$	410,426	$	204,656	$	1,200,699
Acquisitions (1)	19		—		—		19
Foreign currency translation adjustments	1,573		—		—		1,573
Balance—January 2, 2021	$	587,209	$	410,426	$	204,656	$	1,202,291

______________________

(1)Reflects goodwill from 2020 acquisitions and working capital adjustments from prior year acquisitions.

XML

Revenue Recognition

12 Months Ended

Jan. 02, 2021

Revenue from External Customer [Line Items]

Revenue Recognition

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, and is recognized based on the proportion of costs incurred to date relative to the total estimated costs at completion. The majority of our construction service contracts, and therefore revenue, are opened and completed within one year, with the most activity during the spring, summer and fall.

Revenue by product for the years ended January 2, 2021, December 28, 2019 and December 29, 2018 consisted of the following:

	2020		2019		2018
Revenue by product*:
Aggregates	$	498,007	$	469,670	$	373,824
Cement	257,629		266,235		258,876
Ready-mix concrete	668,060		607,622		584,114
Asphalt	349,350		330,750		301,247
Paving and related services	381,430		360,234		379,540
Other	177,975		187,629		203,401
Total revenue	$	2,332,451	$	2,222,140	$	2,101,002

______________________

 *       Revenue from the liquid asphalt terminals is included in asphalt revenue.

The following table outlines the significant changes in contract assets and contract liability balances from December 28, 2019 to January 2, 2021. Also included in the table is the net change in the 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 28, 2019	$	13,088	$	13,864
Changes in revenue billed, contract price or cost estimates	(4,535)		2,616
Other	113		19
Balance—January 2, 2021	$	8,666	$	16,499

Accounts receivable, net consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Trade accounts receivable	$	191,871	$	191,672
Construction contract receivables	47,179		47,966
Retention receivables	18,824		17,808
Receivables from related parties	1,339		1,596
Accounts receivable	259,213		259,042
Less: Allowance for doubtful accounts	(4,517)		(5,786)
Accounts receivable, net	$	254,696	$	253,256

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 one year.

Summit Materials, LLC

Revenue from External Customer [Line Items]

Revenue Recognition

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, and is recognized based on the proportion of costs incurred to date relative to the total estimated costs at completion. The majority of our construction service contracts, and therefore revenue, are opened and completed within one year, with the most activity during the spring, summer and fall.

Revenue by product for the years ended January 2, 2021, December 28, 2019 and December 29, 2018 consisted of the following:

	2020		2019		2018
Revenue by product*:
Aggregates	$	498,007	$	469,670	$	373,824
Cement	257,629		266,235		258,876
Ready-mix concrete	668,060		607,622		584,114
Asphalt	349,350		330,750		301,247
Paving and related services	381,430		360,234		379,540
Other	177,975		187,629		203,401
Total revenue	$	2,332,451	$	2,222,140	$	2,101,002

______________________

*Revenue from the liquid asphalt terminals is included in asphalt revenue.

The following table outlines the significant changes in contract assets and contract liability balances from December 28, 2019 to January 2, 2021. Also included in the table is the net change in the 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 28, 2019	$	13,088	$	13,864
Changes in revenue billed, contract price or cost estimates	(4,535)		2,616
Other	113		19
Balance—January 2, 2021	$	8,666	$	16,499

Accounts receivable, net consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Trade accounts receivable	$	191,871	$	191,672
Construction contract receivables	47,179		47,966
Retention receivables	18,824		17,808
Receivables from related parties	1,339		1,596
Accounts receivable	259,213		259,042
Less: Allowance for doubtful accounts	(4,517)		(5,786)
Accounts receivable, net	$	254,696	$	253,256

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 one year.

XML

Inventories

12 Months Ended

Jan. 02, 2021

Inventory [Line Items]

Inventories

Inventories

Inventories consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Aggregate stockpiles	$	137,938	$	140,461
Finished goods	32,993		33,023
Work in process	9,281		7,664
Raw materials	20,096		23,639
Total	$	200,308	$	204,787

Summit Materials, LLC

Inventory [Line Items]

Inventories

Inventories

Inventories consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Aggregate stockpiles	$	137,938	$	140,461
Finished goods	32,993		33,023
Work in process	9,281		7,664
Raw materials	20,096		23,639
Total	$	200,308	$	204,787

XML

Property, Plant and Equipment, net and Intangibles, net

12 Months Ended

Jan. 02, 2021

Property, Plant and Equipment [Line Items]

Property, Plant and Equipment, net and Intangibles, net

Property, Plant and Equipment, net and Intangibles, net

Property, plant and equipment, net consisted of the following as of January 2, 2021 and December 28, 2019: 

	2020		2019
Mineral bearing land and leased interests	$	468,966	$	333,024
Land (non-mineral bearing)	197,432		182,065
Buildings and improvements	181,198		178,088
Plants, machinery and equipment	1,397,410		1,318,512
Mobile equipment and barges	543,133		501,809
Truck and auto fleet	56,163		54,838
Landfill airspace and improvements	52,202		49,766
Office equipment	45,942		43,155
Construction in progress	40,648		42,007
Property, plant and equipment	2,983,094		2,703,264
Less accumulated depreciation, depletion and amortization	(1,132,925)		(955,815)
Property, plant and equipment, net	$	1,850,169	$	1,747,449

Depreciation on property, plant and equipment, including assets subject to capital leases, is generally computed on a straight-line basis. Depletion of mineral reserves and leased mineral interests are computed based on the portion of the reserves used during the period compared to the gross estimated value of proven and probable reserves, which is updated periodically as circumstances dictate. Leasehold improvements are amortized on a straight-line basis over the lesser of the asset’s useful life or the remaining lease term. The estimated useful lives are generally as follows:

Buildings and improvements	10 - 30	years
Plant, machinery and equipment	7 - 20	years
Office equipment	3 - 7	years
Truck and auto fleet	5 - 8	years
Mobile equipment and barges	6 - 8	years
Landfill airspace and improvements	10 - 30	years
Other	4 - 20	years

Depreciation, depletion and amortization expense of property, plant and equipment was $195.3 million, $196.8 million and $199.6 million in the years ended January 2, 2021, December 28, 2019 and December 29, 2018, respectively.

Property, plant and equipment at January 2, 2021 and December 28, 2019 included $92.7 million and $82.7 million, respectively, of finance leases for certain equipment and a building with accumulated amortization of $32.8 million and $24.9 million, respectively. The equipment leases generally have terms of less than five years and the building lease had an original term of 30 years. Approximately $24.6 million and $16.0 million of the future obligations associated with the finance leases are included in accrued expenses as of January 2, 2021 and December 28, 2019, respectively, and the present value of the remaining finance lease payments, $31.7 million and $40.4 million, respectively, is included in other noncurrent liabilities on the consolidated balance sheets. Future minimum rental commitments under long-term capital leases are $26.7 million, $18.6 million, $7.1 million, $3.2 million, and $2.6 million for the years ended 2021, 2022, 2023, 2024 and 2025, respectively.

Assets are assessed for impairment charges when identified for disposition. The net gain from asset dispositions recognized in general and administrative expenses in fiscal years 2020, 2019 and 2018 was $7.6 million, $10.7 million and $12.6 million, respectively. No material impairment charges have been recognized on assets held for use in fiscal 2020, 2019 or 2018.

Intangible Assets—The Company’s intangible assets subject to amortization are primarily composed of operating permits, mineral lease agreements and reserve rights. Operating permits relate to permitting and zoning rights acquired outside of a business combination. 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 or permits, or computed based on the portion of the reserves used during the period compared to the gross estimated value of proven and probable reserves. The following table shows intangible assets by type and in total: 

	January 2, 2021						December 28, 2019
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Operating permits	$	33,671	$	(1,207)	$	32,464	$	6,609	$	(290)	$	6,319
Mineral leases	19,225		(7,571)		11,654		19,064		(6,408)		12,656
Reserve rights	6,234		(2,504)		3,730		6,234		(2,248)		3,986
Trade names	—		—		—		1,000		(958)		42
Other	586		(582)		4		957		(462)		495
Total intangible assets	$	59,716	$	(11,864)	$	47,852	$	33,864	$	(10,366)	$	23,498

Amortization expense in fiscal 2020, 2019 and 2018 was $2.7 million, $2.1 million and $1.5 million, respectively. The estimated amortization expense for intangible assets for each of the next five years and thereafter is as follows:

2021	$	3,129
2022	3,136
2023	3,003
2024	2,908
2025	2,863
Thereafter	32,813
Total	$	47,852

Summit Materials, LLC

Property, Plant and Equipment [Line Items]

Property, Plant and Equipment, net and Intangibles, net

Property, Plant and Equipment, net and Intangibles, net

Property, plant and equipment, net consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Mineral bearing land and leased interests	$	468,966	$	333,024
Land (non-mineral bearing)	197,432		182,065
Buildings and improvements	181,198		178,088
Plants, machinery and equipment	1,397,410		1,318,512
Mobile equipment and barges	543,133		501,809
Truck and auto fleet	56,163		54,838
Landfill airspace and improvements	52,202		49,766
Office equipment	45,942		43,155
Construction in progress	40,648		42,007
Property, plant and equipment	2,983,094		2,703,264
Less accumulated depreciation, depletion and amortization	(1,132,925)		(955,815)
Property, plant and equipment, net	$	1,850,169	$	1,747,449

Depreciation on property, plant and equipment, including assets subject to capital leases, is generally computed on a straight-line basis. Depletion of mineral reserves and leased mineral interests are computed based on the portion of the reserves used during the period compared to the gross estimated value of proven and probable reserves, which is updated periodically as circumstances dictate. Leasehold improvements are amortized on a straight-line basis over the lesser of the asset’s useful life or the remaining lease term. The estimated useful lives are generally as follows:

Buildings and improvements	10 - 30 years
Plant, machinery and equipment	7 - 20 years
Office equipment	3 - 7 years
Truck and auto fleet	5 - 8 years
Mobile equipment and barges	6 - 8 years
Landfill airspace and improvements	10 - 30 years
Other	4 - 20 years

Depreciation, depletion and amortization expense of property, plant and equipment was $195.3 million, $196.8 million and $199.6 million in the years ended January 2, 2021, December 28, 2019 and December 29, 2018, respectively.

Property, plant and equipment at January 2, 2021 and December 28, 2019 included $92.7 million and $82.7 million, respectively, of finance leases for certain equipment and a building with accumulated amortization of $32.8 million and $24.9 million, respectively. The equipment leases generally have terms of less than five years and the building lease had an original term of 30 years. Approximately $24.6 million and $16.0 million of the future obligations associated with the finance leases are included in accrued expenses as of January 2, 2021 and December 28, 2019, respectively, and the present value of the remaining finance lease payments, $31.7 million and $40.4 million, respectively, is included in other noncurrent liabilities on the consolidated balance sheets. Future minimum rental commitments under long-term capital leases are $26.7 million, $18.6 million, $7.1 million, $3.2 million, and $2.6 million for the years ended 2021, 2022, 2023, 2024 and 2025, respectively.

Assets are assessed for impairment charges when identified for disposition. The net gain from asset dispositions recognized in general and administrative expenses in fiscal years 2020, 2019 and 2018 was $7.6 million, $10.7 million and $12.6 million, respectively. No material impairment charges have been recognized on assets held for use in fiscal 2020, 2019 or 2018.

Intangible Assets—The Company’s intangible assets subject to amortization are primarily composed of operating permits, mineral lease agreements and reserve rights. Operating permits relate to permitting and zoning rights acquired outside of a business combination. 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 or permits, or computed based on the portion of the reserves used during the period compared to the gross estimated value of proven and probable reserves. The following table shows intangible assets by type and in total:

	January 2, 2021						December 28, 2019
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Operating permits	$	33,671	$	(1,207)	$	32,464	$	6,609	$	(290)	$	6,319
Mineral leases	19,225		(7,571)		11,654		19,064		(6,408)		12,656
Reserve rights	6,234		(2,504)		3,730		6,234		(2,248)		3,986
Trade names	—		—		—		1,000		(958)		42
Other	586		(582)		4		957		(462)		495
Total intangible assets	$	59,716	$	(11,864)	$	47,852	$	33,864	$	(10,366)	$	23,498

Amortization expense in fiscal 2020, 2019 and 2018 was $2.7 million, $2.1 million and $1.5 million, respectively. The estimated amortization expense for intangible assets for each of the next five years and thereafter is as follows:

2021	$	3,129
2022	3,136
2023	3,003
2024	2,908
2025	2,863
Thereafter	32,813
Total	$	47,852

XML

Accrued Expenses

12 Months Ended

Jan. 02, 2021

Schedule Of Accrued Expenses [Line Items]

Accrued Expenses

Accrued Expenses

Accrued expenses consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Interest	$	21,860	$	26,892
Payroll and benefits	46,026		29,356
Finance lease obligations	24,601		16,007
Insurance	18,355		14,968
Non-income taxes	15,669		7,666
Deferred asset purchase payments	9,749		3,525
Professional fees	828		902
Other (1)	23,482		20,689
Total	$	160,570	$	120,005

______________________

(1)Consists primarily of current portion of asset retirement obligations and miscellaneous accruals.

Summit Materials, LLC

Schedule Of Accrued Expenses [Line Items]

Accrued Expenses

Accrued Expenses

Accrued expenses consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Interest	$	21,860	$	26,892
Payroll and benefits	46,026		29,356
Finance lease obligations	24,601		16,007
Insurance	18,355		14,968
Non-income taxes	15,900		7,898
Deferred asset purchase payments	9,749		3,525
Professional fees	828		902
Other (1)	23,482		20,689
Total	$	160,801	$	120,237

______________________

(1)Consists primarily of current portion of asset retirement obligations and miscellaneous accruals.

XML

Debt

12 Months Ended

Jan. 02, 2021

Debt

Debt

Debt consisted of the following as of January 2, 2021 and December 28, 2019: 

	2020		2019
Term Loan, due 2024:
$616.3 million and $624.3 million, net of $0.9 million and $1.1 million discount at January 2, 2021 and December 28, 2019, respectively	$	615,425	$	623,140
6 1⁄8% Senior Notes, due 2023:
$650.0 million, net of $0.9 million discount at December 28, 2019	—		649,133
5 1⁄8% Senior Notes, due 2025	300,000		300,000
6 1⁄2% Senior Notes, due 2027	300,000		300,000
5 1⁄4% Senior Notes, due 2029	700,000		—
Total	1,915,425		1,872,273
Current portion of long-term debt	6,354		7,942
Long-term debt	$	1,909,071	$	1,864,331

The contractual payments of long-term debt, including current maturities, for the five years subsequent to January 2, 2021, are as follows:

2021	$	6,354
2022	6,354
2023	6,354
2024	597,252
2025	300,000
Thereafter	1,000,000
Total	1,916,314
Less: Original issue net discount	(889)
Less: Capitalized loan costs	(16,724)
Total debt	$	1,898,701

Senior Notes—On August 11, 2020, Summit LLC and Summit Finance (together, the “Issuers”) issued $700.0 million in aggregate principal amount of 5.250% senior notes due January 15, 2029 (the “2029 Notes”). The 2029 Notes were issued at 100.0% of their par value with proceeds of $690.4 million, net of related fees and expenses. The 2029 Notes were issued under an indenture dated August 11, 2020 (the "2020 Indenture"). The 2020 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 2020 Indenture also contains customary events of default. Interest on the 2029 Notes is payable semi-annually on January 15 and July 15 of each year commencing on January 15, 2021.

In August 2020, using the proceeds from the 2029 Notes, all of the outstanding $650.0 million 6.125% senior notes due 2023 (the “2023 Notes”) were redeemed at a price equal to par and the indenture under which the 2023 Notes were issued was satisfied and discharged. As a result of the extinguishment, charges of $4.1 million were recognized in the quarter ended September 26, 2020, which included charges of $0.8 million for the write-off of original issue discount and $3.3 million for the write-off of deferred financing fees.

On March 15, 2019, the Issuers issued $300.0 million in aggregate principal amount of 6.500% senior notes due March 15, 2027 (the “2027 Notes”). The 2027 Notes were issued at 100.0% of their par value with proceeds of $296.3 million, net of related fees and expenses. The 2027 Notes were issued under an indenture dated March 25, 2019, the terms of which are generally consistent with the 2020 Indenture. 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 $250.0 million 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 $14.6 million were recognized in the quarter ended March 30, 2019, which included charges of $11.7 million for the applicable redemption premium and $2.9 million for the write-off of deferred financing fees.

In 2017, the Issuers issued $300.0 million of 5.125% senior notes due June 1, 2025 (the “2025 Notes”). The 2025 Notes were issued at 100.0% of their par value with proceeds of $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 2020 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 $650.0 million of 6.125% senior notes due July 2023 (the “2023 Notes” and collectively with the 2022 Notes and the 2027 Notes, the “Senior Notes”). Of the aggregate $650.0 million of 2023 Notes, $350.0 million were issued at par and $300.0 million were issued at 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 2020 Indenture. The 2023 Notes were paid in full in August 2020 as noted above.

As of January 2, 2021 and December 28, 2019, 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 $650.0 million and revolving credit commitments in an aggregate amount of $345.0 million (the “Senior Secured Credit Facilities”). Under the Senior Secured Credit Facilities, required principal repayments of 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 $345.0 million and extended the maturity date of the Credit Agreement with respect to the revolving credit commitments to February 25, 2024.

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 0.50%, (b) the prime rate of Bank of America, N.A. and (c) LIBOR plus 1.00%, plus an applicable margin of 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 3.00% for LIBOR rate loans.

There were no outstanding borrowings under the revolving credit facility as of January 2, 2021 or December 28, 2019. As of January 2, 2021, we had remaining borrowing capacity of $329.1 million under the revolving credit facility, which is net of $15.9 million of outstanding letters of credit. The outstanding letters of credit are renewed annually and support required bonding on construction projects 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 4.75:1.0 as of each quarter-end. As of January 2, 2021 and December 28, 2019, Summit LLC was in compliance with all financial covenants under the Credit Agreement.

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.

The following table presents the activity for the deferred financing fees for the years ended January 2, 2021 and December 28, 2019:

	Deferred financing fees
Balance—December 29, 2018	$	15,475
Loan origination fees	6,312
Amortization	(3,501)
Write off of deferred financing fees	(2,850)
Balance—December 28, 2019	$	15,436
Loan origination fees	9,605
Amortization	(3,336)
Write off of deferred financing fees	(3,338)
Balance—January 2, 2021	$	18,367

Other—On January 15, 2015, the Company’s wholly-owned subsidiary in British Columbia, Canada entered into an agreement with HSBC for a (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 0.20%, (ii) $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 0.90% and (iii) $0.4 million CAD revolving credit commitment to provide guarantees on behalf of that subsidiary. There were no amounts outstanding under this agreement as of January 2, 2021 or December 28, 2019.

Summit Materials, LLC

Debt

Debt

Debt consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Term Loan, due 2024:
$616.3 million and $624.3 million, net of $0.9 million and $1.1 million discount at January 2, 2021 and December 28, 2019, respectively	$	615,425	$	623,140
6 1⁄8% Senior Notes, due 2023:
$650.0 million, net of $0.9 million discount at December 28, 2019	—		649,133
5 1⁄8% Senior Notes, due 2025	300,000		300,000
6 1⁄2% Senior Notes, due 2027	300,000		300,000
5 1⁄4% Senior Notes, due 2029	700,000		—
Total	1,915,425		1,872,273
Current portion of long-term debt	6,354		7,942
Long-term debt	$	1,909,071	$	1,864,331

The contractual payments of long-term debt, including current maturities, for the five years subsequent to January 2, 2021, are as follows:

2021	$	6,354
2022	6,354
2023	6,354
2024	597,252
2025	300,000
Thereafter	1,000,000
Total	1,916,314
Less: Original issue net discount	(889)
Less: Capitalized loan costs	(16,724)
Total debt	$	1,898,701

Senior Notes—On August 11, 2020, Summit LLC and Summit Finance (together, the “Issuers”) issued $700.0 million in aggregate principal amount of 5.250% senior notes due January 15, 2029 (the “2029 Notes”). The 2029 Notes were issued at 100.0% of their par value with proceeds of $690.4 million, net of related fees and expenses. The 2029 Notes were issued under an indenture dated August 11, 2020 (the "2020 Indenture"). The 2020 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 2020 Indenture also contains customary events of default. Interest on the 2029 Notes is payable semi-annually on January 15 and July 15 of each year commencing on January 15, 2021.

In August 2020, using the proceeds from the 2029 Notes, all of the outstanding $650.0 million 6.125% senior notes due 2023 (the “2023 Notes”) were redeemed at a price equal to par and the indenture under which the 2023 Notes were issued was satisfied and discharged. As a result of the extinguishment, charges of $4.1 million were recognized in the quarter ended September 26, 2020, which included charges of $0.8 million for the write-off of original issue discount and $3.3 million for the write-off of deferred financing fees.

On March 15, 2019, the Issuers issued $300.0 million in aggregate principal amount of 6.500% senior notes due March 15, 2027 (the “2027 Notes”). The 2027 Notes were issued at 100.0% of their par value with proceeds of $296.3 million, net of related fees and expenses. The 2027 Notes were issued under an indenture dated March 25, 2019, the terms of which are generally consistent with the 2020 Indenture. 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 $250.0 million 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 $14.6 million were recognized in the quarter ended March 30, 2019, which included charges of $11.7 million for the applicable redemption premium and $2.9 million for the write-off of deferred financing fees.

In 2017, the Issuers issued $300.0 million of 5.125% senior notes due June 1, 2025 (the “2025 Notes”). The 2025 Notes were issued at 100.0% of their par value with proceeds of $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 2020 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 $650.0 million of 6.125% senior notes due July 2023 (the “2023 Notes” and collectively with the 2022 Notes and the 2027 Notes, the “Senior Notes”). Of the aggregate $650.0 million of 2023 Notes, $350.0 million were issued at par and $300.0 million were issued at 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 2020 Indenture. The 2023 Notes were paid in full in August 2020 as noted above.

As of January 2, 2021 and December 28, 2019, 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 $650.0 million and revolving credit commitments in an aggregate amount of $345.0 million (the “Senior Secured Credit Facilities”). Under the Senior Secured Credit Facilities, required principal repayments of 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 $345.0 million and extended the maturity date of the Credit Agreement with respect to the revolving credit commitments to February 25, 2024.

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 0.50%, (b) the prime rate of Bank of America, N.A. and (c) LIBOR plus 1.00%, plus an applicable margin of 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 3.00% for LIBOR rate loans.

There were no outstanding borrowings under the revolving credit facility as of January 2, 2021 or December 28, 2019. As of January 2, 2021, we had remaining borrowing capacity of $329.1 million under the revolving credit facility, which is net of $15.9 million of outstanding letters of credit. The outstanding letters of credit are renewed annually and support required bonding on construction projects 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 4.75:1.0 as of each quarter-end. As of January 2, 2021 and December 28, 2019, Summit LLC was in compliance with all financial covenants under the Credit Agreement.

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.

The following table presents the activity for the deferred financing fees for the years ended January 2, 2021 and December 28, 2019: 

	Deferred financing fees
Balance—December 29, 2018	$	15,475
Loan origination fees	6,312
Amortization	(3,501)
Write off of deferred financing fees	(2,850)
Balance—December 28, 2019	$	15,436
Loan origination fees	9,605
Amortization	(3,336)
Write off of deferred financing fees	(3,338)
Balance—January 2, 2021	$	18,367

Other—On January 15, 2015, the Company’s wholly-owned subsidiary in British Columbia, Canada entered into an agreement with HSBC for a (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 0.20%, (ii) $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 0.90% and (iii) $0.4 million CAD revolving credit commitment to provide guarantees on behalf of that subsidiary. There were no amounts outstanding under this agreement as of January 2, 2021 or December 28, 2019.

XML

Income Taxes

12 Months Ended

Jan. 02, 2021

Income Taxes [Line Items]

Income Taxes

Income Taxes

Summit Inc.’s tax provision includes its proportional share of Summit Holdings’ tax attributes. Summit Holdings’ subsidiaries are primarily limited liability companies, but do include certain entities organized as C corporations and a Canadian subsidiary. The tax attributes related to the limited liability companies are passed on to Summit Holdings and then to its partners, including Summit Inc. The tax attributes associated with the C corporation and Canadian subsidiaries are fully reflected in the Company’s consolidated financial statements. For the years ended January 2, 2021, December 28, 2019 and December 29, 2018, income taxes consisted of the following:

	2020		2019		2018
Provision for income taxes:
Current	$	3,827	$	69	$	463
Deferred	(16,012)		17,032		59,284
Income tax expense (benefit)	$	(12,185)	$	17,101	$	59,747

The effective tax rate on pre-tax income differs from the U.S. statutory rate of 21% for 2020, 2019 and 2018, respectively, due to the following:

	2020		2019		2018
Income tax expense (benefit) at federal statutory tax rate	$	27,100	$	16,427	$	20,177
Less: Income tax benefit at federal statutory tax rate for LLC entities	(593)		(658)		(561)
State and local income taxes	5,067		3,792		4,894
Permanent differences	(3,345)		(6,272)		(5,537)
Effective tax rate change	4,257		(2,006)		4,034
Unrecognized tax benefits	(41,548)		18,885		22,663
Tax receivable agreement (benefit) expense	(6)		2,436		(8,282)
Change in valuation allowance	—		(17,691)		17,592
Other	(3,117)		2,188		4,767
Income tax expense (benefit)	$	(12,185)	$	17,101	$	59,747

The following table summarizes the components of the net deferred income tax asset (liability) as January 2, 2021 and December 28, 2019: 

	2020		2019
Deferred tax assets (liabilities):
Net intangible assets	$	199,497	$	240,790
Accelerated depreciation	(209,644)		(201,126)
Net operating loss	227,560		164,335
Investment in limited partnership	(33,139)		(31,987)
Mining reclamation reserve	3,306		2,018
Working capital (e.g., accrued compensation, prepaid assets)	45,972		37,287
Interest expense limitation carryforward	—		2,691
Less valuation allowance	(1,675)		(1,675)
Deferred tax assets	231,877		212,333
Less foreign deferred tax liability (included in other noncurrent liabilities)	(18,393)		(8,267)
Net deferred tax asset	$	213,484	$	204,066

As of January 2, 2021, $378.5 million of our deferred tax assets subject to our TRA are included in the net intangible assets and the net operating loss line items above.

Our income tax expense (benefit) was $(12.2) million, $17.1 million and $59.7 million in the fiscal years ended 2020, 2019 and 2018, respectively. Our effective income tax rate in 2020 and 2019 was impacted by the IRS interpretative guidance of TCJA, a change in state tax rates and a change in the amount of our TRA liability.

The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible, as well as consideration of tax-planning strategies we may seek to utilize net operating loss carryforwards that begin to expire in 2030. The Company updates the analysis, and adjusted the valuation allowance for interest expense carryforwards limited under the TCJA based on updated forecast models each year. 

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“TCJA”) was enacted. Among other things, the TCJA, beginning January 1, 2018, reduced the federal statutory rate from 35% to 21% and extended bonus depreciation provisions. In

addition, the TCJA prescribes the application of net operating loss carryforwards generated in 2018 and beyond will be limited, 100% asset expensing will be allowed through 2022 and begin to phase out in 2023, and the amount of interest expense we are able to deduct may also be limited in future years.  We completed our analysis of the TCJA in 2018 consistent with the guidance of Staff Accounting Bulletin 118 and any adjustments during the measurement period were included in net earnings from continuing operations as an adjustment to income tax expense. As such, in the fourth quarter of 2018, we recorded additional tax expense of $17.6 million resulting from the IRS interpretative guidance of TCJA.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Unrecognized Tax Benefits
Balance—December 29, 2018	$	22,663
Additions based on tax position in 2018	18,885
Balance—December 28, 2019	$	41,548
Reductions based on new regulations	(41,548)
Balance—January 2, 2021	$	—

At January 2, 2021, December 28, 2019 and December 29, 2018 there was $0.0 million, $41.5 million and $22.7 million, respectively, of unrecognized tax benefits that if recognized would affect the annual effective tax rate. We did not recognize interest or penalties related to this amount as it is offset by other attributes.

Our net operating loss carryforward deferred tax assets begin to expire in 2030 and are expected to reverse before expiration. Therefore, we have not given consideration to any potential tax planning strategies as a source of future taxable income to monetize those net operating loss carryforwards. The Company will continue to monitor facts and circumstances, including our analysis of other sources of taxable income, in the reassessment of the likelihood that the tax benefit of our deferred tax assets will be realized.

As of January 2, 2021, Summit Inc. had federal net operating loss carryforwards of $917 million, a portion of which expire between 2030 and 2038. As of January 2, 2021, $497 million of our federal net operating losses were under the terms of our TRA. As of January 2, 2021 and December 28, 2019, Summit Inc. had a valuation allowance on net deferred tax assets of $1.7 million and $1.7 million, respectively, where realization of our net operating losses are not more likely than not.

	2020		2019
Valuation Allowance:
Beginning balance	$	(1,675)	$	(19,366)
Current year decreases (increases) from operations	—		17,691
Ending balance	$	(1,675)	$	(1,675)

Tax Receivable Agreement— During 2015, the Company entered into a TRA with the holders of LP Units and certain other pre-initial public offering owners (“Investor Entities”) that provides for the payment by Summit Inc. to exchanging holders of LP Units of 85% of the benefits, if any, that Summit Inc. actually realizes (or, under certain circumstances such as an early termination of the TRA, is deemed to realize) as a result of increases in the tax basis of tangible and intangible assets of Summit Holdings and certain other tax benefits related to entering into the TRA, including tax benefits attributable to payments under the TRA.

When LP Units are exchanged for an equal number of newly-issued shares of Summit Inc.’s Class A common stock, these exchanges result in new deferred tax assets. Using tax rates in effect as of each year end, $2.4 million and $1.1 million of deferred tax assets were created during the years ended January 2, 2021 and December 28, 2019, respectively, when LP Units were exchanged for shares of Class A common stock.

Each year, we update our estimate as to when TRA payments will be made. As noted above, when payments are made under the TRA, a portion of the payment made will be characterized as imputed interest under IRS regulations. The TCJA enacted in late 2017 contained provisions whereby interest expense deductions may be limited, and the IRS issued proposed regulations in late 2018 around the deductibility of interest expense. Under our forecast prepared at the end of 2018, we expected the amount of imputed interest based on future TRA payments would result in interest expense deductions being limited, and therefore we would not benefit from that deduction. However, based on the updated forecast model at the end of 2019, which updated our forecast of the timing of TRA payments, we believe that our interest expense deductions will not be

limited under the proposed regulations. We also updated our estimate of the state income tax rate that will be in effect at the date the TRA payments are made. As a result of our updated state income tax rate, and the imputed interest limitation noted above, we have decreased our TRA liability $7.6 million and increased by $16.2 million as of January 2, 2021 and December 28, 2019, respectively.

Our TRA liability as of January 2, 2021 and December 28, 2019 was $321.7 million and $327.0 million, respectively.

Tax Distributions – The holders of Summit Holdings’ LP Units, including Summit Inc., incur U.S. federal, state and local income taxes on their share of any taxable income of Summit Holdings. The limited partnership agreement of

Summit Holdings provides for pro rata cash distributions (“tax distributions”) to the holders of the LP Units in an amount generally calculated to provide each holder of LP Units with sufficient cash to cover its tax liability in respect of the LP Units. In general, these tax distributions are computed based on Summit Holdings’ estimated taxable income allocated to Summit Inc. multiplied by an assumed tax rate equal to the highest effective marginal combined U.S. federal, state and local income tax rate applicable to a corporate resident in New York, New York.

For the years ended January 2, 2021 and December 28, 2019, Summit Holdings did not pay any tax distributions and paid tax distributions totaling $0.1 million, respectively, to holders of its LP Units, other than Summit Inc.

C Corporation Subsidiaries — The effective income tax rate for the C corporations differ from the statutory federal rate primarily due to (1) tax depletion expense (benefit) in excess of the expense recorded under U.S. GAAP, (2) state income taxes and the effect of graduated tax rates, (3) various other items such as limitations on meals and entertainment and other costs and (4) unrecognized tax benefits. The effective income tax rate for the Canadian subsidiary is not significantly different from its historical effective tax rate.

No material interest or penalties were recognized in income tax expense during the years ended January 2, 2021, December 28, 2019 or December 29, 2018. Tax years from 2014 to 2018 remain open and subject to audit by federal, Canadian, and state tax authorities.

Summit Materials, LLC

Income Taxes [Line Items]

Income Taxes

Income Taxes

Summit LLC is a limited liability company and passes its tax attributes for federal and state tax purposes to its member and is generally not subject to federal or state income tax. However, certain subsidiaries, or subsidiary groups, file federal, state, and Canadian income tax returns due to their status as C corporations or laws within that jurisdiction. The provision for income taxes is primarily composed of federal, state and local income taxes for the subsidiary entities that have C corporation status.

For the years ended January 2, 2021, December 28, 2019 and December 29, 2018, income taxes consisted of the following:

	2020		2019		2018
Provision for income taxes:
Current	$	3,827	$	69	$	463
Deferred	(2,764)		6,316		9,810
Income tax expense (benefit)	$	1,063	$	6,385	$	10,273

The effective tax rate on pre-tax income differs from the U.S. statutory rate of 21% for 2020, 2019 and 2018, respectively, due to the following:

	2020		2019		2018
Income tax expense (benefit) at federal statutory tax rate	$	25,577	$	19,947	$	15,563
Less: Income tax benefit at federal statutory tax rate for LLC entities	(17,647)		(15,387)		(13,863)
State and local income taxes	2,073		1,680		1,614
Permanent differences	2,479		13		(1,194)
Effective tax rate change	681		(725)		(1,148)
Unrecognized tax benefits	(11,525)		5,038		6,487
Valuation allowance	—		(2,478)		2,586
Other	(575)		(1,703)		228
Income tax benefit	$	1,063	$	6,385	$	10,273

The following table summarizes the components of the net deferred income tax asset (liability) as January 2, 2021 and December 28, 2019:

	2020		2019
Deferred tax (liabilities) assets:
Accelerated depreciation	$	(70,588)	$	(60,216)
Net operating loss	26,929		18,036
Investment in limited partnership	(18,931)		(17,686)
Net intangible assets	(3,264)		(2,554)
Mining reclamation reserve	1,652		723
Working capital (e.g., accrued compensation, prepaid assets)	1,590		1,366
Interest expense limitation carryforward	—		2,691
Net deferred tax liabilities	(62,612)		(57,640)
Less valuation allowance	(1,675)		(1,675)
Net deferred tax liability	$	(64,287)	$	(59,315)

The net deferred income tax liability as of January 2, 2021 and December 28, 2019, are included in other noncurrent liabilities on the consolidated balance sheets. As of January 2, 2021, Summit LLC had federal net operating loss carryforwards of $120.3 million, which expire between 2030 and 2037. 

Valuation Allowance—The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible (including the effect of available carryback and carryforward periods) and tax-planning strategies. The deferred income tax asset related to net operating losses resides with two separate tax paying subsidiaries (or subsidiary groups) of Summit LLC. These tax payers have historically generated taxable income and forecast to continue generating taxable income; however, the use of a portion of the net operating may be limited.

	2020		2019
Valuation Allowance:
Beginning balance	$	(1,675)	$	(4,261)
Loss carryforwards	—		—
Current year decreases (increases) from operations	—		2,586
Release of valuation allowance and other	—		—
Ending balance	$	(1,675)	$	(1,675)

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“TCJA”) was enacted. Among other things, the TCJA, beginning January 1, 2018, reduced the federal statutory rate from 35% to 21% and extended bonus depreciation provisions. In addition, the TCJA prescribes the application of net operating loss carryforwards generated in 2018 and beyond will be limited, 100% asset expensing will be allowed through 2022 and begin to phase out in 2023, and the amount of interest expense we are able deduct may also be limited in future years. The TCJA contains many provisions which continue to be clarified through new regulations. As permitted by Staff Accounting Bulletin 118 issued by the SEC on December 22, 2017, we completed our accounting of the impacts of the TCJA. We have completed our analysis within 2018 consistent with the guidance of SAB 118 and any adjustments during the measurement period have been included in net earnings from continuing operations as an adjustment to income tax expense. As such, in the fourth quarter of 2018, the Company recorded additional tax expense of

$2.6 million resulting from the IRS interpretative guidance of TCJA. As of January 2, 2021 and December 28, 2019, a $1.7 million and $1.7 million, respectively, valuation allowance has been recorded on net deferred tax assets where realization of our net operating losses are not more likely than not.

The Company has recognized a reserve against the deferred tax assets for unrecognized tax benefits in the amount of $0.0 million and $11.6 million as of January 2, 2021 and December 28, 2019, respectively. The Company records interest and penalties as a component of the income tax provision. No material interest or penalties were recognized in income tax expense during the years ended January 2, 2021 and December 28, 2019.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Unrealized Tax Benefits
Balance—December 29, 2018	$	6,487
Additions based on tax position in 2018	5,132
Balance—December 28, 2019	$	11,619
Reductions based on new regulations	(11,619)
Balance—January 2, 2021	$	—

Tax years from 2014 to 2019 remain open and subject to audit by federal, Canadian, and state tax authorities. No income tax expense or benefit was recognized in other comprehensive loss in 2019, 2018 or 2017.

Tax Distributions  – The holders of Summit Holdings’ LP Units, including Summit Inc., incur U.S. federal, state and local income taxes on their share of any taxable income of Summit Holdings. The limited partnership agreement of Summit Holdings provides for pro rata cash distributions (“tax distributions”) to the holders of the LP Units in an amount generally calculated to provide each holder of LP Units with sufficient cash to cover its tax liability in respect of the LP Units. In general, these tax distributions are computed based on Summit Holdings’ estimated taxable income allocated to Summit Inc. multiplied by an assumed tax rate equal to the highest effective marginal combined U.S. federal, state and local income tax rate applicable to a corporate resident in New York, New York. No material distributions were made in the years ended January 2, 2021 and December 28, 2019.

XML

Earnings Per Share

12 Months Ended

Jan. 02, 2021

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per share is computed by dividing net earnings by the weighted average common shares outstanding and diluted net earnings is computed by dividing net earnings, adjusted for changes in the earnings allocated to Summit Inc. as a result of the assumed conversion of LP Units, by the weighted-average common shares outstanding assuming dilution.

The following table shows the calculation of basic income per share:  

	2020		2019		2018
Net income attributable to Summit Inc.	$	137,967	$	59,066	$	33,906
Weighted average shares of Class A stock outstanding
Add: Nonvested restricted stock awards of retirement eligible shares	212,443		—		—
Add: Weighted average shares of Class A stock outstanding	114,014,749		112,204,067		111,380,175
Weighted average basic shares outstanding	114,227,192		112,204,067		111,380,175
Basic earnings per share	$	1.21	$	0.53	$	0.30
Diluted net income attributable to Summit Inc.	$	137,967	$	59,066	$	33,906
Weighted average shares of Class A stock outstanding	114,014,749		112,204,067		111,380,175
Add: stock options	3,390		87,290		282,329
Add: warrants	—		4,206		25,049
Add: restricted stock units	520,871		342,620		459,280
Add: performance stock units	92,758		46,535		169,813
Weighted average dilutive shares outstanding	114,631,768		112,684,718		112,316,646
Diluted earnings per share	$	1.20	$	0.52	$	0.30

Excluded from the above calculations were the shares noted below as they were antidilutive:

	2020	2019	2018
Antidilutive shares:
LP Units	3,060,248	3,372,706	3,512,669
Warrants	100,037	—	—

XML

Stockholder's Equity/Members' Interest

12 Months Ended

Jan. 02, 2021

Schedule of Capitalization, Equity [Line Items]

Stockholder's Equity

Stockholders’ Equity

Our capital stock consists of 1.0 billion shares of $0.01 par value Class A common stock authorized, of which 114,390,595 shares were issued and outstanding as of January 2, 2021. We also have authorized 250 million shares of $0.01 par value Class B common stock, of which 99 shares were issued and outstanding as of January 2, 2021. The Class B common stock entitles holders thereof, who are also holders of LP Units, with a number of votes that is equal to the number of LP Units they hold. The Class B common stock does not participate in dividends and does not have any liquidation rights.

From time to time, limited partners of Summit Holdings exchange their LP Units for shares of Class A common stock of Summit Inc. The following table summarizes the changes in our ownership of Summit Holdings: 

	Summit Inc. Shares (Class A)	LP Units	Total	Summit Inc. Ownership Percentage
Balance — December 29, 2018	111,658,927	3,435,518	115,094,445	97.0	%
Exchanges during period	185,861	(185,861)	—
Stock option exercises	1,065,446	—	1,065,446
Other equity transactions	399,151	—	399,151
Balance — December 28, 2019	113,309,385	3,249,657	116,559,042	97.2	%
Exchanges during period	376,487	(376,487)	—
Stock option exercises	54,517	—	54,517
Other equity transactions	650,206	—	650,206
Balance — January 2, 2021	114,390,595	2,873,170	117,263,765	97.5	%

Accumulated other comprehensive income (loss) - 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		income (loss)
Balance — December 29, 2018	$	3,573	$	(2,147)	$	1,255	$	2,681
Postretirement liability adjustment, net of tax	(1,402)		—		—		(1,402)
Foreign currency translation adjustment, net of tax	—		3,424		—		3,424
Income on cash flow hedges, net of tax	—		—		(1,255)		(1,255)
Balance — December 28, 2019	$	2,171	$	1,277	$	—	$	3,448
Postretirement liability adjustment, net of tax	(1,638)		—		—		(1,638)
Foreign currency translation adjustment, net of tax	—		3,393		—		3,393
Balance — January 2, 2021	$	533	$	4,670	$	—	$	5,203

Summit Materials, LLC

Schedule of Capitalization, Equity [Line Items]

Members' Interest

Members’ Interest

Summit LLC is a wholly owned indirect subsidiary of Summit Holdings, whose primary owner is 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”) 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.

Accumulated other comprehensive income (loss) - 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		income (loss)
Balance — December 29, 2018	$	(4,392)	$	(19,370)	$	146	$	(23,616)
Postretirement liability adjustment	(1,925)		—		—		(1,925)
Foreign currency translation adjustment	—		4,716		—		4,716
Income on cash flow hedges	—		—		(146)		(146)
Balance — December 28, 2019	$	(6,317)	$	(14,654)	$	—	$	(20,971)
Postretirement liability adjustment	(2,229)		—		—		(2,229)
Foreign currency translation adjustment	—		4,617		—		4,617
Balance — January 2, 2021	$	(8,546)	$	(10,037)	$	—	$	(18,583)

XML

Supplemental Cash Flow Information

12 Months Ended

Jan. 02, 2021

Schedule Of Cash Flow Supplemental [Line Items]

Supplemental Cash Flow Information

Supplemental Cash Flow Information

Supplemental cash flow information for the years ended January 2, 2021, December 28, 2019 and December 29, 2018 was as follows:

	2020		2019		2018
Cash payments:
Interest	$	99,551	$	104,614	$	103,250
Payments (refunds) for income taxes, net	1,754		(919)		3,340
Operating cash payments on operating leases	10,452		10,618		N/A
Operating cash payments on finance leases	3,132		3,051		N/A
Finance cash payments on finance leases	14,408		13,164		N/A
Non cash financing activities:
Right of use assets obtained in exchange for operating lease obligations	$	4,849	$	5,842	N/A
Right of use assets obtained in exchange for finance leases obligations	18,016		23,965		N/A
Exchange of LP Units to shares of Class A common stock	8,227		3,847		7,499

Summit Materials, LLC

Schedule Of Cash Flow Supplemental [Line Items]

Supplemental Cash Flow Information

Supplemental Cash Flow Information

Supplemental cash flow information for the years ended January 2, 2021, December 28, 2019 and December 29, 2018 was as follows:

	2020		2019		2018
Cash payments:
Interest	$	99,551	$	104,614	$	103,250
Payments (refunds) for income taxes, net	1,754		(919)		3,340
Operating cash payments on operating leases	10,452		10,618		N/A
Operating cash payments on finance leases	3,132		3,051		N/A
Finance cash payments on finance leases	14,408		13,164		N/A
Non cash financing activities:
Right of use assets obtained in exchange for operating lease obligations	$	4,849	$	5,842	N/A
Right of use assets obtained in exchange for finance leases obligations	18,016		23,965		N/A

XML

Stock-Based Compensation

12 Months Ended

Jan. 02, 2021

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock-Based Compensation

Stock-Based Compensation

Prior to the IPO and related Reorganization, the capital structure of Summit Holdings consisted of six different classes of limited partnership units, each of which was subject to unique distribution rights. In connection with the IPO and the related Reorganization, the limited partnership agreement of Summit Holdings was amended and restated to, among other things, modify its capital structure by creating LP Units. Holders of the LP Units periodically exchange their LP Units for shares of Class A common Stock of Summit Inc.

In the first quarter of 2018, the Board of Directors vested the time-vesting units outstanding and we recognized the remaining $1.0 million of stock based compensation related to these LP units.

Omnibus Incentive Plan

In 2015, our Board of Directors and stockholders adopted the Summit Materials, Inc. 2015 Omnibus Incentive Plan (the "Plan"), which allows for grants of equity-based awards in the form of stock options, stock appreciation rights, restricted stock and restricted stock units, performance units, and other stock-based awards. The Plan authorizes the issuance of up to 13,500,000 shares of Class A common stock in the form of restricted stock units and stock options, of which 4.3 million shares were available for future grants as of January 2, 2021.

Restricted Stock

Restricted Stock with Service-Based Vesting—Under the Plan, the Compensation Committee of the Board of Directors (the “Compensation Committee”) has granted restricted stock to members of the Board of Directors, executive officers and other key employees. These awards contain service conditions associated with continued employment or service. The terms of the restricted stock provide voting and regular dividend rights to holders of the awards. Upon vesting, the restrictions on the restricted stock lapse and the shares are considered issued and outstanding for accounting purposes.

In each of 2020, 2019 and 2018, the Compensation Committee granted restricted stock to executives and key employees under the Plan as part of our annual equity award program, which vest over a two or three year period, subject to continued employment or service.  From time to time, the Compensation Committee grants restricted stock to newly hired or promoted employees or other employees who have achieved extraordinary personal performance objectives.

Further, in each of 2020, 2019 and 2018, the Compensation Committee granted 42,736, 65,144 and 38,232 shares, respectively, to non-employee members of the Board of Directors for their annual service as directors. These restricted stock grants vest over a one year period.

In measuring compensation expense associated with the grant of restricted stock, we use the fair value of the award, determined as the closing stock price for our Class A common stock on the date of grant. Compensation expense is recorded monthly over the vesting period of the award.

Restricted stock with Service- and Market-Condition-Based Vesting—In 2020, 2019 and 2018, the Compensation Committee granted restricted stock to certain members of our executive team as part of their annual compensation package. The restricted stock vests at the end of a three year performance period, based on our total stock return (“TSR”) ranking relative to companies in the S&P Building & Construction Select Industry Index, subject to continued employment.

Compensation expense is recorded monthly over the vesting period of the awards. The following table summarizes information for the equity awards granted in 2020:

	Options			Restricted Stock Units			Performance Stock Units			Warrants
		Weighted			Weighted			Weighted			Weighted
		average grant-		Number of	average grant-		Number of	average grant-			average grant-
	Number of	date fair value		restricted	date fair value		performance	date fair value		Number of	date fair value
	options	per unit		stock units	per unit		stock units	per unit		warrants	per unit
Beginning balance—December 28, 2019	2,128,107	$	9.08	1,556,636	$	20.29	390,645	$	31.08	100,037	$	18.00
Granted	—	—		1,379,943	18.10		199,946	23.43		—	—
Forfeited/ Canceled	(35,117)	12.30		(154,283)	19.12		(112,416)	26.54		—	—
Exercised	(54,517)	10.10		—	—		—	—		—	—
Vested	—	—		(647,345)	21.28		(49,300)	32		—	—
Balance—January 2, 2021	2,038,473	$	9.16	2,134,951	$	18.64	428,875	$	28.64	100,037	$	18.00

The fair value of the time-vesting options granted was estimated as of the grant date using the Black-Scholes-Merton model, which requires the input of subjective assumptions, including the expected volatility and the expected term. The fair value of the performance stock units granted was estimated as of the grant date using Monte Carlo simulations, which requires the input of subjective assumptions, including the expected volatility and the expected term. No options to purchase common stock were granted in 2020, 2019 and 2018.

The risk-free rate is based on the yield at the date of grant of a U.S. Treasury security with a maturity period approximating the expected term. As Summit Holdings has not historically and does not plan to issue regular dividends, a dividend yield of zero was used. The volatility assumption is based on reported data of a peer group of publicly traded companies for which historical information was available adjusted for the Company’s capital structure. The expected term is based on expectations about future exercises and represents the period of time that the units granted are expected to be outstanding.

Compensation expense for time-vesting interests granted is based on the grant date fair value. The Company recognizes compensation costs on a straight-line basis over the service period, which is generally the vesting period of the award. Forfeitures are recognized as they occur. Share-based compensation expense, which is recognized in general and administrative expenses, totaled $28.9 million, $20.4 million and $25.4 million in the years ended January 2, 2021, December 28, 2019 and December 29, 2018, respectively. As of January 2, 2021, unrecognized compensation cost totaled $22.0 million. The weighted average remaining contractual term over which the unrecognized compensation cost is to be recognized is 1.7 years as of year-end 2020.

As of January 2, 2021, the intrinsic value of outstanding options, restricted stock units and performance stock units was $3.8 million, $42.9 million and $8.6 million, respectively, and the remaining contractual term was 3.3 years, 1.0 year and 1.3 years, respectively. The weighted average strike price of stock options outstanding as of January 2, 2021 was $18.75 per share. The intrinsic value of 2.0 million exercisable stock options as of January 2, 2021 was $3.8 million with a weighted average strike price of $18.75 and a weighted average remaining contractual period of 3.3 years.

Summit Materials, LLC

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock-Based Compensation

Stock-Based Compensation

Prior to the IPO and related Reorganization, the capital structure of Summit Holdings consisted of six different classes of limited partnership units, each of which was subject to unique distribution rights. In connection with the IPO and the related Reorganization, the limited partnership agreement of Summit Holdings was amended and restated to, among other things, modify its capital structure by creating LP Units. Holders of the LP Units periodically exchange their LP Units for shares of Class A common Stock of Summit Inc.

In the first quarter of 2018, the Board of Directors vested the time-vesting units outstanding and we recognized the remaining $1.0 million of stock based compensation related to these LP units.

Omnibus Incentive Plan

In 2015, our Board of Directors and stockholders adopted the Summit Materials, Inc. 2015 Omnibus Incentive Plan (the "Plan"), which allows for grants of equity-based awards in the form of stock options, stock appreciation rights, restricted stock and restricted stock units, performance units, and other stock-based awards. The Plan authorizes the issuance of up to 13,500,000 shares of Class A common stock in the form of restricted stock units and stock options, of which 4.3 million shares were available for future grants as of January 2, 2021.

Restricted Stock

Restricted Stock with Service-Based Vesting—Under the Plan, the Compensation Committee of the Board of Directors (the “Compensation Committee”) has granted restricted stock to members of the Board of Directors, executive officers and

other key employees. These awards contain service conditions associated with continued employment or service. The terms of the restricted stock provide voting and regular dividend rights to holders of the awards. Upon vesting, the restrictions on the restricted stock lapse and the shares are considered issued and outstanding for accounting purposes.

In each of 2020, 2019 and 2018, the Compensation Committee granted restricted stock to executives and key employees under the Plan as part of our annual equity award program, which vest over a two or three year period, subject to continued employment or service. From time to time, the Compensation Committee grants restricted stock to newly hired or promoted employees or other employees who have achieved extraordinary personal performance objectives.

Further, in each of 2020, 2019 and 2018, the Compensation Committee granted 42,736, 65,144 and 38,232 shares, respectively, to non-employee members of the Board of Directors for their annual service as directors. These restricted stock grants vest over a one year period.

In measuring compensation expense associated with the grant of restricted stock, we use the fair value of the award, determined as the closing stock price for our Class A common stock on the date of grant. Compensation expense is recorded monthly over the vesting period of the award.

Restricted stock with Service- and Market-Condition-Based Vesting—In 2020, 2019 and 2018, the Compensation Committee granted restricted stock to certain members of our executive team as part of their annual compensation package. The restricted stock vests at the end of a three year performance period, based on our total stock return (“TSR”) ranking relative to companies in the S&P Building & Construction Select Industry Index, subject to continued employment.

Compensation expense is recorded monthly over the vesting period of the awards. The following table summarizes information for the equity awards granted in 2020:

	Options			Restricted Stock Units			Performance Stock Units			Warrants
		Weighted			Weighted			Weighted			Weighted
		average grant-		Number of	average grant-		Number of	average grant-			average grant-
	Number of	date fair value		restricted	date fair value		performance	date fair value		Number of	date fair value
	options	per unit		stock units	per unit		stock units	per unit		warrants	per unit
Beginning balance—December 28, 2019	2,128,107	$	9.08	1,556,636	$	20.29	390,645	$	31.08	100,037	$	18.00
Granted	—	—		1,379,943	18.10		199,946	23.43		—	—
Forfeited/ Canceled	(35,117)	12.30		(154,283)	19.12		(112,416)	26.54		—	—
Exercised	(54,517)	10.10		—	—		—	—		—	—
Vested	—	—		(647,345)	21.28		(49,300)	32		—	—
Balance—January 2, 2021	2,038,473	$	9.16	2,134,951	$	18.64	428,875	$	28.64	100,037	$	18.00

The fair value of the time-vesting options granted was estimated as of the grant date using the Black-Scholes-Merton model, which requires the input of subjective assumptions, including the expected volatility and the expected term. The fair value of the performance stock units granted was estimated as of the grant date using Monte Carlo simulations, which requires the input of subjective assumptions, including the expected volatility and the expected term. No options to purchase common stock were granted in 2020, 2019 and 2018.

The risk-free rate is based on the yield at the date of grant of a U.S. Treasury security with a maturity period approximating the expected term. As Summit Holdings has not historically and does not plan to issue regular dividends, a dividend yield of zero was used. The volatility assumption is based on reported data of a peer group of publicly traded companies for which historical information was available adjusted for the Company’s capital structure. The expected term is based on expectations about future exercises and represents the period of time that the units granted are expected to be outstanding.

Compensation expense for time-vesting interests granted is based on the grant date fair value. The Company recognizes compensation costs on a straight-line basis over the service period, which is generally the vesting period of the award. Forfeitures are recognized as they occur. Share-based compensation expense, which is recognized in general and administrative expenses, totaled $28.9 million, $20.4 million and $25.4 million in the years ended January 2, 2021, December

28, 2019 and December 29, 2018, respectively. As of January 2, 2021, unrecognized compensation cost totaled $22.0 million. The weighted average remaining contractual term over which the unrecognized compensation cost is to be recognized is 1.7 years as of year-end 2020.

As of January 2, 2021, the intrinsic value of outstanding options, restricted stock units and performance stock units was $3.8 million, $42.9 million and $8.6 million, respectively, and the remaining contractual term was 3.3 years, 1.0 year and 1.3 years, respectively. The weighted average strike price of stock options outstanding as of January 2, 2021 was $18.75 per share. The intrinsic value of 2.0 million exercisable stock options as of January 2, 2021 was $3.8 million with a weighted average strike price of $18.75 and a weighted average remaining contractual period of 3.3 years.

XML

Employee Benefit Plans

12 Months Ended

Jan. 02, 2021

Defined Benefit Plan Disclosure [Line Items]

Employee Benefit Plans

Employee Benefit Plans

Defined Contribution Plan—The Company sponsors employee 401(k) savings plans for its employees, including certain union employees. The plans provide for various required and discretionary Company matches of employees’ eligible compensation contributed to the plans. The expense for the defined contribution plans was $12.1 million, $11.7 million and $11.2 million for the years ended January 2, 2021, December 28, 2019 and December 29, 2018, respectively.

Defined Benefit and Other Postretirement Benefits Plans—The Company’s subsidiary, Continental Cement, sponsors two noncontributory defined benefit pension plans for hourly and salaried employees. The plans are closed to new participants and benefits are frozen. As a result of the collective bargaining unit negotiations in 2017, the hourly defined benefit pension

plan was amended to stop future benefit accruals for the Davenport employees effective December 31, 2017. Pension benefits for eligible hourly employees are based on a monthly pension factor for each year of credited service. Pension benefits for eligible salaried employees are generally based on years of service and average eligible compensation.

Continental Cement also sponsors two unfunded healthcare and life insurance benefits plans for certain eligible retired employees. Effective January 1, 2014, the plan covering employees of the Hannibal, Missouri location was amended to eliminate all future retiree health and life coverage for current employees. During 2015, Continental Cement adopted one new unfunded healthcare plan to provide benefits prior to Medicare eligibility for certain hourly employees of the Davenport, Iowa location. As a result of the collective bargaining unit negotiations in 2017, hourly Davenport employees hired on or after January 1, 2018 are no longer eligible for retiree medical benefits.

The funded status of the pension and other postretirement benefit plans is recognized in the consolidated balance sheets as the difference between the fair value of plan assets and the benefit obligations. For defined benefit pension plans, the benefit obligation is the projected benefit obligation (“PBO”) and for the healthcare and life insurance benefits plans, the benefit obligation is the accumulated postretirement benefit obligation (“APBO”). The PBO represents the actuarial present value of benefits expected to be paid upon retirement based on estimated future compensation levels. However, since the plans’ participants are not subject to future compensation increases, the plans’ PBO equals the accumulated benefit obligation (“ABO”). The APBO represents the actuarial present value of postretirement benefits attributed to employee services already rendered. The fair value of plan assets represents the current market value of assets held by an irrevocable trust fund for the sole benefit of participants. The measurement of the benefit obligations is based on the Company’s estimates and actuarial valuations. These valuations reflect the terms of the plan and use participant-specific information, such as compensation, age and years of service, as well as certain assumptions that require significant judgment, including estimates of discount rates, expected return on plan assets, rate of compensation increases, interest-crediting rates and mortality rates.

The Company uses December 31 as the measurement date for its defined benefit pension and other postretirement benefit plans.

Obligations and Funded Status—The following information is as of January 2, 2021 and December 28, 2019 and for the years ended January 2, 2021, December 28, 2019 and December 29, 2018:

	2020				2019
	Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.
Change in benefit obligations:
Beginning of period	$	26,181	$	9,090	$	24,203	$	9,203
Service cost	71		176		60		166
Interest cost	733		242		928		321
Actuarial (gain) loss	2,425		676		2,571		165
Benefits paid	(1,583)		(955)		(1,581)		(765)
End of period	$	27,827	$	9,229	$	26,181	$	9,090
Change in fair value of plan assets:
Beginning of period	$	18,242	$	—	$	17,449	$	—
Actual return on plan assets	1,916		—		2,055		—
Employer contributions	483		955		319		765
Benefits paid	(1,583)		(955)		(1,581)		(765)
End of period	$	19,058	$	—	$	18,242	$	—
Funded status of plans	$	(8,769)	$	(9,229)	$	(7,939)	$	(9,090)
Current liabilities	$	—	$	(636)	$	—	$	(653)
Noncurrent liabilities	(8,769)		(8,593)		(7,939)		(8,437)
Liability recognized	$	(8,769)	$	(9,229)	$	(7,939)	$	(9,090)
Amounts recognized in accumulated other comprehensive income:
Net actuarial (gain) loss	$	10,689	$	2,707	$	9,286	$	2,121
Prior service cost	—		(1,690)		—		(1,931)
Total amount recognized	$	10,689	$	1,017	$	9,286	$	190

The amount recognized in accumulated other comprehensive income (“AOCI”) is the actuarial loss (credit) and prior service cost, which has not yet been recognized in periodic benefit cost.

	2020				2019				2018
	Pension		Healthcare		Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.		benefits		& Life Ins.
Amounts recognized in other comprehensive (income) loss:
Net actuarial loss (gain)	$	1,728	$	675	$	1,760	$	165	$	(1,300)	$	(172)
Amortization of prior year service cost	—		241		—		241		—		241
Amortization of gain	(326)		(89)		(202)		(39)		(312)		(118)
Total amount recognized	$	1,402	$	827	$	1,558	$	367	$	(1,612)	$	(49)

Components of net periodic benefit cost:
Service cost	$	71	$	176	$	60	$	166	$	67	$	170
Interest cost	733		242		928		321		898		317
Amortization of gain	326		89		202		39		312		118
Expected return on plan assets	(1,221)		—		(1,244)		—		(1,284)		—
Amortization of prior service credit	—		(241)		—		(241)		—		(241)
Net periodic (expense) benefit cost	$	(91)	$	266	$	(54)	$	285	$	(7)	$	364

Assumptions—Weighted-average assumptions used to determine the benefit obligations as of year-end 2020 and 2019 are:

	2020		2019
		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	1.84% - 2.14%	1.80% - 1.82%	2.78% - 2.96%	2.73% - 2.79%
Expected long-term rate of return on plan assets	7.00%	N/A	7.00%	N/A

Weighted-average assumptions used to determine net periodic benefit cost for years ended January 2, 2021, December 28, 2019 and December 29, 2018:

	2020		2019		2018
		Healthcare		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	2.78% - 2.96%	2.73% - 2.79%	3.90% - 4.02%	3.87% - 3.91%	3.23% - 3.37%	3.20% - 3.25%
Expected long-term rate of return on plan assets	7.00%	N/A	7.00%	N/A	7.00%	N/A

The expected long-term return on plan assets is based upon the Plans’ consideration of historical and forward-looking returns and the Company’s estimation of what a portfolio, with the target allocation described below, will earn over a long-term horizon. The discount rate is derived using the FTSE Pension Discount Curve.

Assumed health care cost trend rates were 8.0% as of year-end 2020 and 2019, grading to an ultimate trend rate of 4.5% in 2034 and 2033. Assumed health care cost trend rates have a significant effect on the amounts reported for the Company’s healthcare and life insurance benefits plans.

Plan Assets—The defined benefit pension plans’ (the “Plans”) investment strategy is to minimize investment risk while generating acceptable returns. The Plans currently invest a relatively high proportion of the plan assets in fixed income securities, while the remainder is invested in equity securities, cash reserves and precious metals. The equity securities are diversified into funds with growth and value investment strategies. The target allocation for plan assets is as follows: equity securities—30%; fixed income securities—63%; cash reserves—5%; and precious metals—2%. The Plans’ current investment allocations are within the tolerance of the target allocation. The Company had no Level 3 investments as of or for the years ended January 2, 2021 and December 28, 2019.

At year-end 2020 and 2019, the Plans’ assets were invested predominantly in fixed-income securities and publicly traded equities, but may invest in other asset classes in the future subject to the parameters of the investment policy. The Plans’ investments in fixed-income assets include U.S. Treasury and U.S. agency securities and corporate bonds. The Plans’ investments in equity assets include U.S. and international securities and equity funds. The Company estimates the fair value of the Plans’ assets using various valuation techniques and, to the extent available, quoted market prices in active markets or observable market inputs. The descriptions and fair value methodologies for the Plans’ assets are as follows:

Fixed Income Securities—Corporate and government bonds are classified as Level 2 assets, as they are either valued at quoted market prices from observable pricing sources at the reporting date or valued based upon comparable securities with similar yields and credit ratings.

Equity Securities—Equity securities are valued at the closing market price reported on a U.S. exchange where the security is actively traded and are therefore classified as Level 1 assets.

Cash—The carrying amounts of cash approximate fair value due to the short-term maturity.

Precious Metals—Precious metals are valued at the closing market price reported on a U.S. exchange where the security is actively traded and are therefore classified as Level 1 assets.

The fair value of the Plans’ assets by asset class and fair value hierarchy level as of January 2, 2021 and December 28, 2019 are as follows:

	2020
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	3,294	$	3,294	$	—
Intermediate—corporate	3,218		—		3,218
Short-term—government	705		705		—
Short-term—corporate	448		—		448
International	1,086		—		1,086
Equity securities:
U.S. Large cap value	1,516		1,516		—
U.S. Large cap growth	1,483		1,483		—
U.S. Mid cap value	631		631		—
U.S. Mid cap growth	619		619		—
U.S. Small cap value	663		663		—
U.S. Small cap growth	650		650		—
International	1,227		407		820
Emerging Markets	409		409		—
Commodities Broad Basket	1,002		182		820
Cash	2,107		2,107		—
Total	$	19,058	$	12,666	$	6,392

	2019
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	2,482	$	2,482	$	—
Intermediate—corporate	1,066		—		1,066
Short-term—government	1,387		1,387		—
Short-term—corporate	3,173		—		3,173
International	1,387		—		1,387
Equity securities:
U.S. Large cap value	1,225		1,225		—
U.S. Large cap growth	1,167		1,167		—
U.S. Mid cap value	581		581		—
U.S. Mid cap growth	578		578		—
U.S. Small cap value	583		583		—
U.S. Small cap growth	593		593		—
Managed Futures	340		—		340
International	1,174		386		788
Emerging Markets	394		394		—
Commodities Broad Basket	1,118		362		756
Cash	994		994		—
Total	$	18,242	$	10,732	$	7,510

Cash Flows—The Company expects to contribute approximately $1.2 million and $0.6 million in 2021 to its pension plans and to its healthcare and life insurance benefits plans, respectively.

The estimated benefit payments for each of the next five years and the five-year period thereafter are as follows:

	Pension		Healthcare and Life
	benefits		Insurance Benefits
2021	$	1,692	$	636
2022	1,693		630
2023	1,696		617
2024	1,655		619
2025	1,613		627
2026 - 2030	7,597		3,139

Multiemployer Pension Plans— In 2018, the Company acquired Buildex, LLC and assumed its obligation to contribute to a number of multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover its union-represented employees. The risks of participating in multiemployer pension plans are different from single-employer plans. Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer ceases contributing to the plan, the unfunded obligations of the plan are the responsibility of the remaining participating employers.

The Company's participation in these plans for the annual period ended December 31, 2020, is outlined in the table below. The ''EIN/Pension Plan Number" column provides the Employer Identification Number (EIN) and the three-digit plan number, if applicable. Unless otherwise noted, the most recent Pension Protection Act (PPA) zone status available in 2020 and 2019 is for the plan 's year end at December 31, 2020, and December 31, 2019, respectively. The zone status is based on information the Company received from the plan and is certified by the plan's actuary. Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are less than 80% funded and plans in the green zone are at least 80% funded. The "FIP/RP Status Pending/Implemented" column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. The "Surcharge Imposed" column indicates whether a surcharge has been imposed on contributions to the plan. The last column lists the expiration date(s) of the collective-bargaining agreement(s) to which the plans are subject. There have been no significant changes that affect the comparability of 2020 and 2019 contributions.

										Expiration Date of
		Pension Protection Act		FIP/RP Status	Contributions of Company					Collective-
Pension	EIN/ Pension	Zone Status		Pending/	($ in thousands)				Surcharge	Bargaining
Trust Fund	Plan Number	2020	2019	Implemented	2020		2019		Imposed	Agreement
Construction Industry Laborers Pension Fund	43-6060737/001	Green - as of December 31, 2019	Green - as of December 31, 2018	None	$	100	$	112	No	3/31/2021
Operating Engineers Local 101 Pension Plan	43-6059213/001	Green - as of December 31, 2019	Green - as of December 31, 2018	None	20		23		No	3/31/2021
Total Contributions					$	120	$	135

The Company was not listed as providing more than 5% of the total contributions for the Operating Engineers Local 101 Pension Plan or the Construction Industry Laborers Pension Fund for the plan years 2020 and 2019 per the plans' Forms 5500. As of the date of the filing of this annual report on Form 10-K, Forms 5500 were not available for the plan year ending December 31, 2020.

Summit Materials, LLC

Defined Benefit Plan Disclosure [Line Items]

Employee Benefit Plans

Employee Benefit Plans

Defined Contribution Plan—The Company sponsors employee 401(k) savings plans for its employees, including certain union employees. The plans provide for various required and discretionary Company matches of employees’ eligible compensation contributed to the plans. The expense for the defined contribution plans was $12.1 million, $11.7 million and $11.2 million for the years ended January 2, 2021, December 28, 2019 and December 29, 2018, respectively.

Defined Benefit and Other Postretirement Benefits Plans—The Company’s subsidiary, Continental Cement, sponsors two noncontributory defined benefit pension plans for hourly and salaried employees. The plans are closed to new participants and benefits are frozen. As a result of the collective bargaining unit negotiations in 2017, the hourly defined benefit pension plan was amended to stop future benefit accruals for the Davenport employees effective December 31, 2017. Pension benefits for eligible hourly employees are based on a monthly pension factor for each year of credited service. Pension benefits for eligible salaried employees are generally based on years of service and average eligible compensation.

Continental Cement also sponsors two unfunded healthcare and life insurance benefits plans for certain eligible retired employees. Effective January 1, 2014, the plan covering employees of the Hannibal, Missouri location was amended to eliminate all future retiree health and life coverage for current employees. During 2015, Continental Cement adopted one new unfunded healthcare plan to provide benefits prior to Medicare eligibility for certain hourly employees of the Davenport, Iowa location. As a result of the collective bargaining unit negotiations in 2017, hourly Davenport employees hired on or after January 1, 2018 are no longer eligible for retiree medical benefits.

The funded status of the pension and other postretirement benefit plans is recognized in the consolidated balance sheets as the difference between the fair value of plan assets and the benefit obligations. For defined benefit pension plans, the benefit obligation is the projected benefit obligation (“PBO”) and for the healthcare and life insurance benefits plans, the benefit obligation is the accumulated postretirement benefit obligation (“APBO”). The PBO represents the actuarial present value of benefits expected to be paid upon retirement based on estimated future compensation levels. However, since the plans’ participants are not subject to future compensation increases, the plans’ PBO equals the accumulated benefit obligation (“ABO”). The APBO represents the actuarial present value of postretirement benefits attributed to employee services already rendered. The fair value of plan assets represents the current market value of assets held by an irrevocable trust fund for the sole benefit of participants. The measurement of the benefit obligations is based on the Company’s estimates and actuarial valuations. These valuations reflect the terms of the plan and use participant-specific information, such as compensation, age and years of service, as well as certain assumptions that require significant judgment, including estimates of discount rates, expected return on plan assets, rate of compensation increases, interest-crediting rates and mortality rates.

The Company uses December 31 as the measurement date for its defined benefit pension and other postretirement benefit plans.

Obligations and Funded Status—The following information is as of January 2, 2021 and December 28, 2019 and for the years ended January 2, 2021, December 28, 2019 and December 29, 2018: 

	2020				2019
	Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.
Change in benefit obligations:
Beginning of period	$	26,181	$	9,090	$	24,203	$	9,203
Service cost	71		176		60		166
Interest cost	733		242		928		321
Actuarial (gain) loss	2,425		676		2,571		165
Benefits paid	(1,583)		(955)		(1,581)		(765)
End of period	$	27,827	$	9,229	$	26,181	$	9,090
Change in fair value of plan assets:
Beginning of period	$	18,242	$	—	$	17,449	$	—
Actual return on plan assets	1,916		—		2,055		—
Employer contributions	483		955		319		765
Benefits paid	(1,583)		(955)		(1,581)		(765)
End of period	$	19,058	$	—	$	18,242	$	—
Funded status of plans	$	(8,769)	$	(9,229)	$	(7,939)	$	(9,090)
Current liabilities	$	—	$	(636)	$	—	$	(653)
Noncurrent liabilities	(8,769)		(8,593)		(7,939)		(8,437)
Liability recognized	$	(8,769)	$	(9,229)	$	(7,939)	$	(9,090)
Amounts recognized in accumulated other comprehensive income:
Net actuarial (gain) loss	$	10,689	$	2,707	$	9,286	$	2,121
Prior service cost	—		(1,690)		—		(1,931)
Total amount recognized	$	10,689	$	1,017	$	9,286	$	190

The amount recognized in accumulated other comprehensive income (“AOCI”) is the actuarial loss (credit) and prior service cost, which has not yet been recognized in periodic benefit cost.

	2020				2019				2018
	Pension		Healthcare		Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.		benefits		& Life Ins.
Amounts recognized in other comprehensive (income) loss:
Net actuarial loss (gain)	$	1,728	$	675	$	1,760	$	165	$	(1,300)	$	(172)
Amortization of prior year service cost	—		241		—		241		—		241
Amortization of gain	(326)		(89)		(202)		(39)		(312)		(118)
Total amount recognized	$	1,402	$	827	$	1,558	$	367	$	(1,612)	$	(49)
Components of net periodic benefit cost:
Service cost	$	71	$	176	$	60	$	166	$	67	$	170
Interest cost	733		242		928		321		898		317
Amortization of gain	326		89		202		39		312		118
Expected return on plan assets	(1,221)		—		(1,244)		—		(1,284)		—
Amortization of prior service credit	—		(241)		—		(241)		—		(241)
Net periodic (expense) benefit cost	$	(91)	$	266	$	(54)	$	285	$	(7)	$	364

Assumptions—Weighted-average assumptions used to determine the benefit obligations as of year-end 2020 and 2019 are:

	2020		2019
		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	1.84% - 2.14%	1.80% - 1.82%	2.78% - 2.96%	2.73% - 2.79%
Expected long-term rate of return on plan assets	7.00%	N/A	7.00%	N/A

Weighted-average assumptions used to determine net periodic benefit cost for years ended January 2, 2021, December 28, 2019 and December 29, 2018:

	2020		2019		2018
		Healthcare		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	2.78% - 2.96%	2.73% - 2.79%	3.90% - 4.02%	3.87% - 3.91%	3.23% - 3.37%	3.20% - 3.25%
Expected long-term rate of return on plan assets	7.00%	N/A	7.00%	N/A	7.00%	N/A

The expected long-term return on plan assets is based upon the Plans’ consideration of historical and forward-looking returns and the Company’s estimation of what a portfolio, with the target allocation described below, will earn over a long-term horizon. The discount rate is derived using the FTSE Pension Discount Curve.

Assumed health care cost trend rates were 8.0% as of year-end 2020 and 2019, grading to an ultimate trend rate of 4.5% in 2034 and 2033. Assumed health care cost trend rates have a significant effect on the amounts reported for the Company’s healthcare and life insurance benefits plans.

Plan Assets—The defined benefit pension plans’ (the “Plans”) investment strategy is to minimize investment risk while generating acceptable returns. The Plans currently invest a relatively high proportion of the plan assets in fixed income securities, while the remainder is invested in equity securities, cash reserves and precious metals. The equity securities are diversified into funds with growth and value investment strategies. The target allocation for plan assets is as follows: equity securities—30%; fixed income securities—63%; cash reserves—5%; and precious metals—2%. The Plans’ current investment allocations are within the tolerance of the target allocation. The Company had no Level 3 investments as of or for the years ended January 2, 2021 and December 28, 2019.

At year-end 2020 and 2019, the Plans’ assets were invested predominantly in fixed-income securities and publicly traded equities, but may invest in other asset classes in the future subject to the parameters of the investment policy. The Plans’ investments in fixed-income assets include U.S. Treasury and U.S. agency securities and corporate bonds. The Plans’ investments in equity assets include U.S. and international securities and equity funds. The Company estimates the fair value of the Plans’ assets using various valuation techniques and, to the extent available, quoted market prices in active markets or observable market inputs. The descriptions and fair value methodologies for the Plans’ assets are as follows:

Fixed Income Securities—Corporate and government bonds are classified as Level 2 assets, as they are either valued at quoted market prices from observable pricing sources at the reporting date or valued based upon comparable securities with similar yields and credit ratings.

Equity Securities—Equity securities are valued at the closing market price reported on a U.S. exchange where the security is actively traded and are therefore classified as Level 1 assets.

Cash—The carrying amounts of cash approximate fair value due to the short-term maturity.

Precious Metals—Precious metals are valued at the closing market price reported on a U.S. exchange where the security is actively traded and are therefore classified as Level 1 assets.

The fair value of the Plans’ assets by asset class and fair value hierarchy level as of January 2, 2021 and December 28, 2019 are as follows:

	2020
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	3,294	$	3,294	$	—
Intermediate—corporate	3,218		—		3,218
Short-term—government	705		705		—
Short-term—corporate	448		—		448
International	1,086		—		1,086
Equity securities:
U.S. Large cap value	1,516		1,516		—
U.S. Large cap growth	1,483		1,483		—
U.S. Mid cap value	631		631		—
U.S. Mid cap growth	619		619		—
U.S. Small cap value	663		663		—
U.S. Small cap growth	650		650		—
International	1,227		407		820
Emerging Markets	409		409		—
Commodities Broad Basket	1,002		182		820
Cash	2,107		2,107		—
Total	$	19,058	$	12,666	$	6,392

	2019
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	2,482	$	2,482	$	—
Intermediate—corporate	1,066		—		1,066
Short-term—government	1,387		1,387		—
Short-term—corporate	3,173		—		3,173
International	1,387		—		1,387
Equity securities:
U.S. Large cap value	1,225		1,225		—
U.S. Large cap growth	1,167		1,167		—
U.S. Mid cap value	581		581		—
U.S. Mid cap growth	578		578		—
U.S. Small cap value	583		583		—
U.S. Small cap growth	593		593		—
Managed Futures	340		—		340
International	1,174		386		788
Emerging Markets	394		394		—
Commodities Broad Basket	1,118		362		756
Cash	994		994		—
Total	$	18,242	$	10,732	$	7,510

Cash Flows—The Company expects to contribute approximately $1.2 million and $0.6 million in 2021 to its pension plans and to its healthcare and life insurance benefits plans, respectively.

The estimated benefit payments for each of the next five years and the five-year period thereafter are as follows:

	Pension		Healthcare and Life
	benefits		Insurance Benefits
2021	$	1,692	$	636
2022	1,693		630
2023	1,696		617
2024	1,655		619
2025	1,613		627
2026 - 2030	7,597		3,139

Multiemployer Pension Plans— In 2018, the Company acquired Buildex, LLC and assumed its obligation to contribute to a number of multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover its union-represented employees. The risks of participating in multiemployer pension plans are different from single-employer plans. Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer ceases contributing to the plan, the unfunded obligations of the plan are the responsibility of the remaining participating employers.

The Company's participation in these plans for the annual period ended December 31, 2020, is outlined in the table below. The ''EIN/Pension Plan Number" column provides the Employer Identification Number (EIN) and the three-digit plan number, if applicable. Unless otherwise noted, the most recent Pension Protection Act (PPA) zone status available in 2020 and 2019 is for the plan 's year end at December 31, 2020, and December 31, 2019, respectively. The zone status is based on information the Company received from the plan and is certified by the plan's actuary. Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are less than 80% funded and plans in the green zone are at least 80% funded. The "FIP/RP Status Pending/Implemented" column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. The "Surcharge Imposed" column indicates whether a surcharge has been imposed on contributions to the plan. The last column lists the expiration date(s) of the collective-bargaining agreement(s) to which the plans are subject. There have been no significant changes that affect the comparability of 2020 and 2019 contributions.

										Expiration Date of
		Pension Protection Act		FIP/RP Status	Contributions of Company					Collective-
Pension	EIN/ Pension	Zone Status		Pending/	($ in thousands)				Surcharge	Bargaining
Trust Fund	Plan Number	2020	2019	Implemented	2020		2019		Imposed	Agreement
Construction Industry Laborers Pension Fund	43-6060737/001	Green - as of December 31, 2019	Green - as of December 31, 2018	None	$	100	$	112	No	3/31/2021
Operating Engineers Local 101 Pension Plan	43-6059213/001	Green - as of December 31, 2019	Green - as of December 31, 2018	None	20		23		No	3/31/2021
Total Contributions					$	120	$	135

The Company was not listed as providing more than 5% of the total contributions for the Operating Engineers Local 101 Pension Plan or the Construction Industry Laborers Pension Fund for the plan years 2020 and 2019 per the plans' Forms 5500. As of the date of the filing of this annual report on Form 10-K, Forms 5500 were not available for the plan year ending December 31, 2020.

XML

Accrued Mining and Landfill Reclamation

12 Months Ended

Jan. 02, 2021

Asset Retirement Obligations [Line Items]

Accrued Mining and Landfill Reclamation

Accrued Mining and Landfill Reclamation

The Company has asset retirement obligations arising from regulatory or contractual requirements to perform certain reclamation activities at the time that certain quarries and landfills are closed, which are primarily included in other noncurrent liabilities on the consolidated balance sheets. The current portion of the liabilities, $10.0 million and $7.9 million as of January 2, 2021 and December 28, 2019, respectively, is included in accrued expenses on the consolidated balance sheets. The total undiscounted anticipated costs for site reclamation as of January 2, 2021 and December 28, 2019 were $112.8 million and $97.4 million, respectively. The liabilities were initially measured at fair value and are subsequently adjusted for accretion

expense, payments and changes in the amount or timing of the estimated cash flows. The corresponding asset retirement costs are capitalized as part of the carrying amount of the related long-lived asset and depreciated over the asset’s remaining useful life. The following table presents the activity for the asset retirement obligations for the years ended January 2, 2021 and December 28, 2019: 

	2020		2019
Beginning balance	$	36,676	$	30,999
Acquired obligations	861		805
Change in cost estimate	6,523		4,468
Settlement of reclamation obligations	(3,095)		(1,812)
Accretion expense	2,638		2,216
Ending balance	$	43,603	$	36,676

Summit Materials, LLC

Asset Retirement Obligations [Line Items]

Accrued Mining and Landfill Reclamation

Accrued Mining and Landfill Reclamation

The Company has asset retirement obligations arising from regulatory or contractual requirements to perform certain reclamation activities at the time that certain quarries and landfills are closed, which are primarily included in other noncurrent liabilities on the consolidated balance sheets. The current portion of the liabilities, $10.0 million and $7.9 million as of January 2, 2021 and December 28, 2019, respectively, is included in accrued expenses on the consolidated balance sheets. The total

undiscounted anticipated costs for site reclamation as of January 2, 2021 and December 28, 2019 were $112.8 million and $97.4 million, respectively. The liabilities were initially measured at fair value and are subsequently adjusted for accretion expense, payments and changes in the amount or timing of the estimated cash flows. The corresponding asset retirement costs are capitalized as part of the carrying amount of the related long-lived asset and depreciated over the asset’s remaining useful life. The following table presents the activity for the asset retirement obligations for the years ended January 2, 2021 and December 28, 2019:

	2020		2019
Beginning balance	$	36,676	$	30,999
Acquired obligations	861		805
Change in cost estimate	6,523		4,468
Settlement of reclamation obligations	(3,095)		(1,812)
Accretion expense	2,638		2,216
Ending balance	$	43,603	$	36,676

XML

Commitments and Contingencies

12 Months Ended

Jan. 02, 2021

Loss Contingencies [Line Items]

Commitments and Contingencies

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. Although we currently do not believe this matter will have a material adverse effect on our business, financial condition or results of operations, we are not able to predict the ultimate outcome or cost of the investigation at this time.

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.

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 one year.

Summit Materials, LLC

Loss Contingencies [Line Items]

Commitments and Contingencies

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. Although we currently do not believe this matter will have a material adverse effect on our business, financial condition or results of operations, we are not able to predict the ultimate outcome or cost of the investigation at this time.

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.

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 one year.

XML

Leases

12 Months Ended

Jan. 02, 2021

Lessee, Lease, Description [Line Items]

Leases

Leases

We lease construction and office equipment, distribution facilities and office space. Leases with an initial term of 12 months or less, including month to month leases, are not recorded on the balance sheet. Lease expense for short-term leases is recognized on a straight line basis over the lease term. For lease agreements entered into or reassessed after the adoption of Topic 842, we combine lease and nonlease components. While we also own mineral leases for mining operations, those leases are outside the scope of Topic 842. Assets acquired under finance leases are included in property, plant and equipment.

Many of our leases include options to purchase the leased equipment. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease expense were as follows:

	2020			2019
Operating lease cost	$	10,134		$	10,451
Variable lease cost	316			423
Short-term lease cost	44,066			38,417
Financing lease cost:
Amortization of right-of-use assets	12,598			11,062
Interest on lease liabilities	3,068			3,171
Total lease cost	$	70,182		$	63,524
	2020			2019
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets	$	28,543		$	32,777
Current operating lease liabilities	$	8,188		$	8,427
Noncurrent operating lease liabilities	21,500			25,381
Total operating lease liabilities	$	29,688		$	33,808
Finance leases:
Property and equipment, gross	$	92,679		$	82,660
Less accumulated depreciation	(32,828)			(24,907)
Property and equipment, net	$	59,851		$	57,753
Current finance lease liabilities	$	24,601		$	16,007
Long-term finance lease liabilities	31,727			40,410
Total finance lease liabilities	$	56,328		$	56,417
	2020			2019
Weighted average remaining lease term (years):
Operating leases	8.7			8.6
Finance lease	2.4			2.6
Weighted average discount rate:
Operating leases	5.3		%	5.5		%
Finance lease	5.2		%	5.5		%
Maturities of lease liabilities were as follows:
	Operating Leases			Finance Leases
2021	$	9,491		$	26,742
2022	6,088			18,603
2023	4,663			7,053
2024	2,863			3,207
2025	1,781			2,573
Thereafter	12,961			2,831
Total lease payments	37,847			61,009
Less imputed interest	(8,159)			(4,681)
Present value of lease payments	$	29,688		$	56,328

The Company has lease agreements associated with quarry facilities under which royalty payments are made. The payments are generally based on tons sold in a particular period; however, certain agreements have minimum annual payments. Royalty expense recorded in cost of revenue during the years ended January 2, 2021, December 28, 2019 and December 29, 2018 was $29.2 million, $24.3 million and $20.1 million, respectively. Minimum contractual commitments for the subsequent five years under royalty agreements are as follows:

	Royalty
	Agreements
2021	$	9,916
2022	9,880
2023	9,594
2024	9,295
2025	9,052

Leases

Leases

We lease construction and office equipment, distribution facilities and office space. Leases with an initial term of 12 months or less, including month to month leases, are not recorded on the balance sheet. Lease expense for short-term leases is recognized on a straight line basis over the lease term. For lease agreements entered into or reassessed after the adoption of Topic 842, we combine lease and nonlease components. While we also own mineral leases for mining operations, those leases are outside the scope of Topic 842. Assets acquired under finance leases are included in property, plant and equipment.

Many of our leases include options to purchase the leased equipment. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease expense were as follows:

	2020			2019
Operating lease cost	$	10,134		$	10,451
Variable lease cost	316			423
Short-term lease cost	44,066			38,417
Financing lease cost:
Amortization of right-of-use assets	12,598			11,062
Interest on lease liabilities	3,068			3,171
Total lease cost	$	70,182		$	63,524
	2020			2019
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets	$	28,543		$	32,777
Current operating lease liabilities	$	8,188		$	8,427
Noncurrent operating lease liabilities	21,500			25,381
Total operating lease liabilities	$	29,688		$	33,808
Finance leases:
Property and equipment, gross	$	92,679		$	82,660
Less accumulated depreciation	(32,828)			(24,907)
Property and equipment, net	$	59,851		$	57,753
Current finance lease liabilities	$	24,601		$	16,007
Long-term finance lease liabilities	31,727			40,410
Total finance lease liabilities	$	56,328		$	56,417
	2020			2019
Weighted average remaining lease term (years):
Operating leases	8.7			8.6
Finance lease	2.4			2.6
Weighted average discount rate:
Operating leases	5.3		%	5.5		%
Finance lease	5.2		%	5.5		%
Maturities of lease liabilities were as follows:
	Operating Leases			Finance Leases
2021	$	9,491		$	26,742
2022	6,088			18,603
2023	4,663			7,053
2024	2,863			3,207
2025	1,781			2,573
Thereafter	12,961			2,831
Total lease payments	37,847			61,009
Less imputed interest	(8,159)			(4,681)
Present value of lease payments	$	29,688		$	56,328

The Company has lease agreements associated with quarry facilities under which royalty payments are made. The payments are generally based on tons sold in a particular period; however, certain agreements have minimum annual payments. Royalty expense recorded in cost of revenue during the years ended January 2, 2021, December 28, 2019 and December 29, 2018 was $29.2 million, $24.3 million and $20.1 million, respectively. Minimum contractual commitments for the subsequent five years under royalty agreements are as follows:

	Royalty
	Agreements
2021	$	9,916
2022	9,880
2023	9,594
2024	9,295
2025	9,052

Summit Materials, LLC

Lessee, Lease, Description [Line Items]

Leases

Leases

We lease construction and office equipment, distribution facilities and office space. Leases with an initial term of 12 months or less, including month to month leases, are not recorded on the balance sheet. Lease expense for short-term leases is recognized on a straight line basis over the lease term. For lease agreements entered into or reassessed after the adoption of Topic 842, we combine lease and nonlease components. While we also own mineral leases for mining operations, those leases are outside the scope of Topic 842. Assets acquired under finance leases are included in property, plant and equipment.

Many of our leases include options to purchase the leased equipment. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease expense were as follows:

	2020			2019
Operating lease cost	$	10,134		$	10,451
Variable lease cost	316			423
Short-term lease cost	44,066			38,417
Financing lease cost:
Amortization of right-of-use assets	12,598			11,062
Interest on lease liabilities	3,068			3,171
Total lease cost	$	70,182		$	63,524
	2020			2019
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets	$	28,543		$	32,777
Current operating lease liabilities	$	8,188		$	8,427
Noncurrent operating lease liabilities	21,500			25,381
Total operating lease liabilities	$	29,688		$	33,808
Finance leases:
Property and equipment, gross	$	92,679		$	82,660
Less accumulated depreciation	(32,828)			(24,907)
Property and equipment, net	$	59,851		$	57,753
Current finance lease liabilities	$	24,601		$	16,007
Long-term finance lease liabilities	31,727			40,410
Total finance lease liabilities	$	56,328		$	56,417
	2020			2019
Weighted average remaining lease term (years):
Operating leases	8.7			8.6
Finance lease	2.4			2.6
Weighted average discount rate:
Operating leases	5.3		%	5.5		%
Finance lease	5.2		%	5.5		%
Maturities of lease liabilities were as follows:
	Operating Leases			Finance Leases
2021	$	9,491		$	26,742
2022	6,088			18,603
2023	4,663			7,053
2024	2,863			3,207
2025	1,781			2,573
Thereafter	12,961			2,831
Total lease payments	37,847			61,009
Less imputed interest	(8,159)			(4,681)
Present value of lease payments	$	29,688		$	56,328

The Company has lease agreements associated with quarry facilities under which royalty payments are made. The payments are generally based on tons sold in a particular period; however, certain agreements have minimum annual payments. Royalty expense recorded in cost of revenue during the years ended January 2, 2021, December 28, 2019 and December 29, 2018 was $29.2 million, $24.3 million and $20.1 million, respectively. Minimum contractual commitments for the subsequent five years under royalty agreements are as follows:

	Royalty
	Agreements
2021	$	9,916
2022	9,880
2023	9,594
2024	9,295
2025	9,052

Leases

Leases

We lease construction and office equipment, distribution facilities and office space. Leases with an initial term of 12 months or less, including month to month leases, are not recorded on the balance sheet. Lease expense for short-term leases is recognized on a straight line basis over the lease term. For lease agreements entered into or reassessed after the adoption of Topic 842, we combine lease and nonlease components. While we also own mineral leases for mining operations, those leases are outside the scope of Topic 842. Assets acquired under finance leases are included in property, plant and equipment.

Many of our leases include options to purchase the leased equipment. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease expense were as follows:

	2020			2019
Operating lease cost	$	10,134		$	10,451
Variable lease cost	316			423
Short-term lease cost	44,066			38,417
Financing lease cost:
Amortization of right-of-use assets	12,598			11,062
Interest on lease liabilities	3,068			3,171
Total lease cost	$	70,182		$	63,524
	2020			2019
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets	$	28,543		$	32,777
Current operating lease liabilities	$	8,188		$	8,427
Noncurrent operating lease liabilities	21,500			25,381
Total operating lease liabilities	$	29,688		$	33,808
Finance leases:
Property and equipment, gross	$	92,679		$	82,660
Less accumulated depreciation	(32,828)			(24,907)
Property and equipment, net	$	59,851		$	57,753
Current finance lease liabilities	$	24,601		$	16,007
Long-term finance lease liabilities	31,727			40,410
Total finance lease liabilities	$	56,328		$	56,417
	2020			2019
Weighted average remaining lease term (years):
Operating leases	8.7			8.6
Finance lease	2.4			2.6
Weighted average discount rate:
Operating leases	5.3		%	5.5		%
Finance lease	5.2		%	5.5		%
Maturities of lease liabilities were as follows:
	Operating Leases			Finance Leases
2021	$	9,491		$	26,742
2022	6,088			18,603
2023	4,663			7,053
2024	2,863			3,207
2025	1,781			2,573
Thereafter	12,961			2,831
Total lease payments	37,847			61,009
Less imputed interest	(8,159)			(4,681)
Present value of lease payments	$	29,688		$	56,328

The Company has lease agreements associated with quarry facilities under which royalty payments are made. The payments are generally based on tons sold in a particular period; however, certain agreements have minimum annual payments. Royalty expense recorded in cost of revenue during the years ended January 2, 2021, December 28, 2019 and December 29, 2018 was $29.2 million, $24.3 million and $20.1 million, respectively. Minimum contractual commitments for the subsequent five years under royalty agreements are as follows:

	Royalty
	Agreements
2021	$	9,916
2022	9,880
2023	9,594
2024	9,295
2025	9,052

XML

Fair Value of Financial Instruments

12 Months Ended

Jan. 02, 2021

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

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 fair value of contingent consideration as of January 2, 2021 and December 28, 2019 was: 

	2020		2019
Current portion of acquisition-related liabilities and Accrued expenses:
Contingent consideration	$	654	$	1,967
Acquisition-related liabilities and Other noncurrent liabilities:
Contingent consideration	$	1,209	$	1,302

The fair value accounting guidance establishes the following fair value hierarchy that prioritizes the inputs used to measure fair value:

Level  1 —  Quoted prices in active markets for identical assets and liabilities.

Level 2 —  Observable inputs, other than quoted prices, for similar assets or liabilities in active markets.

Level 3 —  Unobservable inputs, which includes the use of valuation models.

Financial Instruments—The Company’s financial instruments include debt and certain acquisition-related liabilities (deferred consideration and noncompete obligations). The carrying value and fair value of these financial instruments as of January 2, 2021 and December 28, 2019 were: 

	January 2, 2021				December 28, 2019
	Fair Value		Carrying Value		Fair Value		Carrying Value
Level 1
Long-term debt(1)	$	1,971,087	$	1,915,425	$	1,918,720	$	1,872,273
Level 3
Current portion of deferred consideration and noncompete obligations(2)	9,611		9,611		30,733		30,733
Long term portion of deferred consideration and noncompete obligations(3)	11,037		11,037		18,499		18,499

_____________________

(1)$6.4 million and $7.9 million were included in current portion of debt as of January 2, 2021 and December 28, 2019, respectively.

(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.

Level 1 fair values are used to value investments in publicly-traded entities and assumed obligations for publicly-traded long-term debt.

Level 2 fair values are typically used to value acquired receivables, inventories, machinery and equipment, land, buildings, deferred income tax assets and liabilities, liabilities for asset retirement obligations, environmental remediation and compliance obligations. Additionally, Level 2 fair values are typically used to value assumed contracts at other-than-market rates.

Level 3 fair values are used to value acquired mineral reserves and leased mineral interests and other identifiable intangible assets. The fair values of mineral reserves and leased mineral interests are determined using an excess earnings approach, which requires management to estimate future cash flows. The estimate of future cash flows is based on available historical information and forecasts determined by management, but is inherently uncertain. Key assumptions in estimating future cash flows include sales price, volumes and expected profit margins, net of capital requirements. The present value of the projected net cash flows represents the fair value assigned to mineral reserves and mineral interests. The discount rate is a significant assumption used in the valuation model and is based on the required rate of return that a hypothetical market participant would assume if purchasing the acquired business.

The Level 3 fair values of contingent consideration were based on projected probability-weighted cash payments and a 9.5% 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. There were no material adjustments to the fair value of contingent consideration in 2020 or 2019. The fair values of the deferred consideration and noncompete obligations were determined based on 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.

Summit Materials, LLC

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

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 fair value of contingent consideration as of January 2, 2021 and December 28, 2019 was:

	2020		2019
Current portion of acquisition-related liabilities and Accrued expenses:
Contingent consideration	$	654	$	1,967
Acquisition-related liabilities and Other noncurrent liabilities:
Contingent consideration	$	1,209	$	1,302

The fair value accounting guidance establishes the following fair value hierarchy that prioritizes the inputs used to measure fair value:

Level  1 —  Quoted prices in active markets for identical assets and liabilities.

Level 2 —  Observable inputs, other than quoted prices, for similar assets or liabilities in active markets.

Level 3 —  Unobservable inputs, which includes the use of valuation models.

Financial Instruments—The Company’s financial instruments include debt and certain acquisition-related liabilities (deferred consideration and noncompete obligations). The carrying value and fair value of these financial instruments as of January 2, 2021 and December 28, 2019 were:

	January 2, 2021				December 28, 2019
	Fair Value		Carrying Value		Fair Value		Carrying Value
Level 1
Long-term debt(1)	$	1,971,087	$	1,915,425	$	1,918,720	$	1,872,273
Level 3
Current portion of deferred consideration and noncompete obligations(2)	7,173		7,173		28,233		28,233
Long term portion of deferred consideration and noncompete obligations(3)	11,037		11,037		16,364		16,364

______________________

(1)    $6.4 million and $7.9 million were included in current portion of debt as of January 2, 2021 and December 28, 2019, respectively.

(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.

Level 1 fair values are used to value investments in publicly-traded entities and assumed obligations for publicly-traded long-term debt.

Level 2 fair values are typically used to value acquired receivables, inventories, machinery and equipment, land, buildings, deferred income tax assets and liabilities, liabilities for asset retirement obligations, environmental remediation and compliance obligations. Additionally, Level 2 fair values are typically used to value assumed contracts at other-than-market rates.

Level 3 fair values are used to value acquired mineral reserves and leased mineral interests and other identifiable intangible assets. The fair values of mineral reserves and leased mineral interests are determined using an excess earnings approach, which requires management to estimate future cash flows. The estimate of future cash flows is based on available historical information and forecasts determined by management, but is inherently uncertain. Key assumptions in estimating future cash flows include sales price, volumes and expected profit margins, net of capital requirements. The present value of the projected net cash flows represents the fair value assigned to mineral reserves and mineral interests. The discount rate is a significant assumption used in the valuation model and is based on the required rate of return that a hypothetical market participant would assume if purchasing the acquired business.

The Level 3 fair values of contingent consideration were based on projected probability-weighted cash payments and a 9.5% 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. There were no material adjustments to the fair value of contingent consideration in 2020 or 2019. The fair values of the deferred consideration and noncompete obligations were determined based on 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.

XML

Segment Information

12 Months Ended

Jan. 02, 2021

Segment Reporting Information [Line Items]

Segment Information

Segment Information

The Company has 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, the Company’s Chief Operating Decision Maker (“CODM”). The CODM primarily evaluates the performance of its 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.

The following tables display selected financial data for the Company’s reportable business segments as of and for the years ended January 2, 2021, December 28, 2019 and December 29, 2018: 

	2020		2019		2018
Revenue*:
West	$	1,262,196	$	1,122,338	$	1,117,066
East	799,633		809,098		703,147
Cement	270,622		290,704		280,789
Total revenue	$	2,332,451	$	2,222,140	$	2,101,002

______________________

*       Intercompany sales are immaterial and the presentation above only reflects sales to external customers.

	2020		2019		2018
Income from operations before taxes	$	129,055	$	78,224	$	96,077
Interest expense	103,595		116,509		116,548
Depreciation, depletion and amortization	218,682		214,886		203,305
Accretion	2,638		2,216		1,605
Loss on debt financings	4,064		14,565		149
Tax receivable agreement (benefit) expense	(7,559)		16,237		(22,684)
Gain on sale of business	—		—		(12,108)
Transaction costs	2,747		2,222		4,238
Non-cash compensation	28,857		20,403		25,378
Other	2,957		(3,800)		(6,247)
Total Adjusted EBITDA	$	485,036	$	461,462	$	406,261
Total Adjusted EBITDA by Segment:
West	$	271,052	$	204,964	$	188,999
East	162,275		187,625		138,032
Cement	92,956		103,438		111,394
Corporate and other	(41,247)		(34,565)		(32,164)
Total Adjusted EBITDA	$	485,036	$	461,462	$	406,261

	2020		2019		2018
Purchases of property, plant and equipment
West	$	67,500	$	71,397	$	120,657
East	92,528		77,894		64,384
Cement	15,071		25,691		28,036
Total reportable segments	175,099		174,982		213,077
Corporate and other	2,150		2,513		7,608
Total purchases of property, plant and equipment	$	177,249	$	177,495	$	220,685

	2020		2019		2018
Depreciation, depletion, amortization and accretion:
West	$	93,866	$	93,256	$	91,794
East	86,205		81,403		75,433
Cement	37,267		38,447		35,061
Total reportable segments	217,338		213,106		202,288
Corporate and other	3,982		3,996		2,622
Total depreciation, depletion, amortization and accretion	$	221,320	$	217,102	$	204,910

	2020		2019		2018
Total assets:
West	$	1,503,382	$	1,379,684	$	1,370,501
East	1,303,742		1,288,835		1,253,640
Cement	850,835		868,528		877,586
Total reportable segments	3,657,959		3,537,047		3,501,727
Corporate and other	650,052		530,509		355,914
Total	$	4,308,011	$	4,067,556	$	3,857,641

Summit Materials, LLC

Segment Reporting Information [Line Items]

Segment Information

Segment Information

The Company has 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, the Company’s Chief Operating Decision Maker (“CODM”). The CODM primarily evaluates the performance of its 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.

The following tables display selected financial data for the Company’s reportable business segments as of and for the years ended January 2, 2021, December 28, 2019 and December 29, 2018:

	2020		2019		2018
Revenue*:
West	$	1,262,196	$	1,122,338	$	1,117,066
East	799,633		809,098		703,147
Cement	270,622		290,704		280,789
Total revenue	$	2,332,451	$	2,222,140	$	2,101,002

______________________

*   Intercompany sales are immaterial and the presentation above only reflects sales to external customers.

	2020		2019		2018
Income from operations before taxes	$	121,800	$	94,982	$	74,110
Interest expense	103,291		115,988		115,831
Depreciation, depletion and amortization	218,682		214,886		203,305
Accretion	2,638		2,216		1,605
Loss on debt financings	4,064		14,565		149
Gain on sale of business	—		—		(12,108)
Transaction costs	2,747		2,222		4,238
Non-cash compensation	28,857		20,403		25,378
Other	2,957		(3,800)		(6,247)
Total Adjusted EBITDA	$	485,036	$	461,462	$	406,261
Total Adjusted EBITDA by Segment:
West	$	271,052	$	204,964	$	188,999
East	162,275		187,625		138,032
Cement	92,956		103,438		111,394
Corporate and other	(41,247)		(34,565)		(32,164)
Total Adjusted EBITDA	$	485,036	$	461,462	$	406,261

	2020		2019		2018
Purchases of property, plant and equipment
West	$	67,500	$	71,397	$	120,657
East	92,528		77,894		64,384
Cement	15,071		25,691		28,036
Total reportable segments	175,099		174,982		213,077
Corporate and other	2,150		2,513		7,608
Total purchases of property, plant and equipment	$	177,249	$	177,495	$	220,685

	2020		2019		2018
Depreciation, depletion, amortization and accretion:
West	$	93,866	$	93,256	$	91,794
East	86,205		81,403		75,433
Cement	37,267		38,447		35,061
Total reportable segments	217,338		213,106		202,288
Corporate and other	3,982		3,996		2,622
Total depreciation, depletion, amortization and accretion	$	221,320	$	217,102	$	204,910

	2020		2019		2018
Total assets:
West	$	1,503,382	$	1,379,684	$	1,370,501
East	1,303,742		1,288,835		1,253,640
Cement	850,835		868,528		877,586
Total reportable segments	3,657,959		3,537,047		3,501,727
Corporate and other	419,175		319,176		131,517
Total	$	4,077,134	$	3,856,223	$	3,633,244

XML

Senior Notes' Guarantor and Non-Guarantor Financial Information

12 Months Ended

Jan. 02, 2021

Summit Materials, LLC

Condensed Financial Statements, Captions [Line Items]

Senior Notes' Guarantor and Non-Guarantor Financial Information

Senior Notes’ 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. 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.

Condensed Consolidating Balance Sheets

January 2, 2021

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	401,074	$	10,287	$	10,461	$	(3,641)	$	418,181
Accounts receivable, net	4		230,199		24,384		109		254,696
Intercompany receivables	404,459		1,303,293		—		(1,707,752)		—
Cost and estimated earnings in excess of billings	—		7,504		1,162		—		8,666
Inventories	—		193,417		6,891		—		200,308
Other current assets	2,840		6,797		1,791		—		11,428
Total current assets	808,377		1,751,497		44,689		(1,711,284)		893,279
Property, plant and equipment, net	9,410		1,746,045		94,714		—		1,850,169
Goodwill	—		1,142,083		60,208		—		1,202,291
Intangible assets, net	—		47,852		—		—		47,852
Operating lease right-of-use assets	2,615		21,880		4,048		—		28,543
Other assets	4,022,729		207,699		493		(4,175,921)		55,000
Total assets	$	4,843,131	$	4,917,056	$	204,152	$	(5,887,205)	$	4,077,134
Liabilities and Member’s Interest
Current liabilities:
Current portion of debt	$	6,354	$	—	$	—	$	—	$	6,354
Current portion of acquisition-related liabilities	—		7,827		—		—		7,827
Accounts payable	3,889		108,805		8,619		109		121,422
Accrued expenses	54,108		106,320		4,014		(3,641)		160,801
Current operating lease liabilities	913		6,114		1,161		—		8,188
Intercompany payables	1,215,043		485,401		7,308		(1,707,752)		—
Billings in excess of costs and estimated earnings	—		15,508		991		—		16,499
Total current liabilities	1,280,307		729,975		22,093		(1,711,284)		321,091
Long-term debt	1,892,347		—		—		—		1,892,347
Acquisition-related liabilities	—		12,246		—		—		12,246
Noncurrent operating lease liabilities	2,567		16,062		2,871		—		21,500
Other noncurrent liabilities	5,142		208,540		117,921		(164,421)		167,182
Total liabilities	3,180,363		966,823		142,885		(1,875,705)		2,414,366
Total member's interest	1,662,768		3,950,233		61,267		(4,011,500)		1,662,768
Total liabilities and member’s interest	$	4,843,131	$	4,917,056	$	204,152	$	(5,887,205)	$	4,077,134

Condensed Consolidating Balance Sheets

December 28, 2019

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	302,474	$	5,488	$	9,834	$	(6,477)	$	311,319
Accounts receivable, net	—		234,053		19,236		(33)		253,256
Intercompany receivables	443,323		942,385		—		(1,385,708)		—
Cost and estimated earnings in excess of billings	—		12,291		797		—		13,088
Inventories	—		199,794		4,993		—		204,787
Other current assets	1,763		10,308		1,760		—		13,831
Total current assets	747,560		1,404,319		36,620		(1,392,218)		796,281
Property, plant and equipment, net	11,602		1,674,443		61,404		—		1,747,449
Goodwill	—		1,142,063		58,636		—		1,200,699
Intangible assets, net	—		23,498		—		—		23,498
Operating lease right-of-use assets	3,316		24,551		4,910		—		32,777
Other assets	3,596,161		168,314		734		(3,709,690)		55,519
Total assets	$	4,358,639	$	4,437,188	$	162,304	$	(5,101,908)	$	3,856,223
Liabilities and Member’s Interest
Current liabilities:
Current portion of debt	$	7,942	$	—	$	—	$	—	$	7,942
Current portion of acquisition-related liabilities	—		30,200		—		—		30,200
Accounts payable	4,588		103,812		8,603		(33)		116,970
Accrued expenses	51,043		72,970		2,701		(6,477)		120,237
Current operating lease liabilities	764		6,571		1,092		—		8,427
Intercompany payables	922,356		447,827		15,525		(1,385,708)		—
Billings in excess of costs and estimated earnings	—		12,183		1,681		—		13,864
Total current liabilities	986,693		673,563		29,602		(1,392,218)		297,640
Long-term debt	1,851,057		—		—		—		1,851,057
Acquisition-related liabilities	—		17,666		—		—		17,666
Noncurrent operating lease liabilities	3,480		18,047		3,854		—		25,381
Other noncurrent liabilities	4,259		203,919		80,169		(137,018)		151,329
Total liabilities	2,845,489		913,195		113,625		(1,529,236)		2,343,073
Total member's interest	1,513,150		3,523,993		48,679		(3,572,672)		1,513,150
Total liabilities and member’s interest	$	4,358,639	$	4,437,188	$	162,304	$	(5,101,908)	$	3,856,223

Condensed Consolidating Statements of Operations and Comprehensive Income

Year Ended January 2, 2021

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—	$	2,259,865	$	89,752	$	(17,166)	$	2,332,451
Cost of revenue (excluding items shown separately below)	—		1,542,586		58,576		(17,166)		1,583,996
General and administrative expenses	72,504		217,897		11,561		—		301,962
Depreciation, depletion, amortization and accretion	3,983		210,038		7,299		—		221,320
Operating (loss) income	(76,487)		289,344		12,316		—		225,173
Other (income) loss, net	(328,914)		(2,473)		(198)		331,667		82
Interest expense (income)	130,176		(31,402)		4,517		—		103,291
Income from operation before taxes	122,251		323,219		7,997		(331,667)		121,800
Income tax expense (benefit)	1,514		(4,737)		4,286		—		1,063
Net income attributable to Summit LLC	$	120,737	$	327,956	$	3,711	$	(331,667)	$	120,737
Comprehensive income (loss) attributable to member of Summit Materials, LLC	$	123,125	$	330,185	$	(906)	$	(329,279)	$	123,125

Condensed Consolidating Statements of Operations and Comprehensive Income

Year ended December 28, 2019

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—	$	2,139,457	$	94,879	$	(12,196)	$	2,222,140
Cost of revenue (excluding items shown separately below)	—		1,473,124		65,404		(12,196)		1,526,332
General and administrative expenses	58,099		195,683		11,366		—		265,148
Depreciation, depletion, amortization and accretion	3,997		207,277		5,828		—		217,102
Operating (loss) income	(62,096)		263,373		12,281		—		213,558
Other (income) loss, net	(279,517)		(8,767)		(790)		291,662		2,588
Interest expense (income)	127,734		(16,561)		4,815		—		115,988
Income from operation before taxes	89,687		288,701		8,256		(291,662)		94,982
Income tax expense	1,090		3,377		1,918		—		6,385
Net income attributable to Summit LLC	$	88,597	$	285,324	$	6,338	$	(291,662)	$	88,597
Comprehensive income attributable to member of Summit Materials, LLC	$	91,242	$	287,395	$	1,622	$	(289,017)	$	91,242

Condensed Consolidating Statements of Operations and Comprehensive Income

Year ended December 29, 2018

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—	$	2,018,428	$	88,658	$	(6,084)	$	2,101,002
Cost of revenue (excluding items shown separately below)	—		1,416,222		65,641		(6,084)		1,475,779
General and administrative expenses	62,376		184,917		10,554		—		257,847
Depreciation, depletion, amortization and accretion	2,622		197,406		4,882		—		204,910
Operating (loss) income	(64,998)		219,883		7,581		—		162,466
Other (income) loss, net	(249,204)		(14,643)		823		247,657		(15,367)
Interest expense	118,857		(7,818)		4,792		—		115,831
Gain on sale of business	—		(12,108)		—		—		(12,108)
Income from continuing operations before taxes	65,349		254,452		1,966		(247,657)		74,110
Income tax (benefit) expense	1,512		8,226		535		—		10,273
Net income attributable to member of Summit Materials, LLC	$	63,837	$	246,226	$	1,431	$	(247,657)	$	63,837
Comprehensive income attributable to member of Summit Materials, LLC	$	57,356	$	243,359	$	10,779	$	(254,138)	$	57,356

Condensed Consolidating Statements of Cash Flows

For the year ended January 2, 2021

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(135,895)	$	502,595	$	42,169	$	—	$	408,869
Cash flow from investing activities:
Acquisitions, net of cash acquired	—		(92,085)		(31,392)		—		(123,477)
Purchase of property, plant and equipment	(2,150)		(173,228)		(1,871)		—		(177,249)
Proceeds from the sale of property, plant, and equipment	—		13,935		83		—		14,018
Other	—		1,121		—		—		1,121
Net cash used for investing activities	(2,150)		(250,257)		(33,180)		—		(285,587)
Cash flow from financing activities:
Proceeds from investment by member	(91,142)		87,925		4,260		—		1,043
Net proceeds from debt issuance	700,000		—		—		—		700,000
Loans received from and payments made on loans from other Summit Companies	298,656		(288,711)		(12,781)		2,836		—
Payments on long-term debt	(657,942)		(15,911)		(192)		—		(674,045)
Payments on acquisition-related liabilities	—		(30,757)		—		—		(30,757)
Debt issuance costs	(9,605)		—		—		—		(9,605)
Distributions from partnership	(2,500)		—		—		—		(2,500)
Other	(822)		(85)		—		—		(907)
Net cash provided by (used in) financing activities	236,645		(247,539)		(8,713)		2,836		(16,771)
Impact of cash on foreign currency	—		—		351		—		351
Net increase in cash	98,600		4,799		627		2,836		106,862
Cash — Beginning of period	302,474		5,488		9,834		(6,477)		311,319
Cash — End of period	$	401,074	$	10,287	$	10,461	$	(3,641)	$	418,181

Condensed Consolidating Statements of Cash Flows

For the year ended December 28, 2019

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(112,019)	$	431,323	$	17,880	$	—	$	337,184
Cash flow from investing activities:
Acquisitions, net of cash acquired	—		(5,392)		—		—		(5,392)
Purchase of property, plant and equipment	(2,513)		(163,652)		(11,330)		—		(177,495)
Proceeds from the sale of property, plant, and equipment	—		21,083		90		—		21,173
Proceeds from the sale of a business	—		21,564		—		—		21,564
Other	—		(1,095)		—		—		(1,095)
Net cash used for investing activities	(2,513)		(149,056)		(11,240)		—		(162,809)
Cash flow from financing activities:
Proceeds from investment by member	(21,614)		40,690		—		—		19,076
Net proceeds from debt issuance	300,000		—		—		—		300,000
Loans received from and payments made on loans from other Summit Companies	287,029		(280,836)		(4,586)		(1,607)		—
Payments on long-term debt	(256,354)		(13,650)		(225)		—		(270,229)
Payments on acquisition-related liabilities	—		(31,383)		—		—		(31,383)
Financing costs	(6,312)		—		—		—		(6,312)
Distributions from partnership	(2,500)		—		—		—		(2,500)
Other	(462)		(40)		—		—		(502)
Net cash provided by (used in) financing activities	299,787		(285,219)		(4,811)		(1,607)		8,150
Impact of cash on foreign currency	—		—		286		—		286
Net increase (decrease) in cash	185,255		(2,952)		2,115		(1,607)		182,811
Cash — Beginning of period	117,219		8,440		7,719		(4,870)		128,508
Cash — End of period	$	302,474	$	5,488	$	9,834	$	(6,477)	$	311,319

Condensed Consolidating Statements of Cash Flows

For the year ended December 29, 2018

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(142,315)	$	340,401	$	11,282	$	—	$	209,368
Cash flow from investing activities:
Acquisitions, net of cash acquired	—		(246,017)		—		—		(246,017)
Purchase of property, plant and equipment	(7,607)		(188,435)		(24,643)		—		(220,685)
Proceeds from the sale of property, plant, and equipment	—		21,263		372		—		21,635
Proceeds from the sale of a business	—		21,564		—		—		21,564
Other	—		3,804		—		—		3,804
Net cash used for investing activities	(7,607)		(387,821)		(24,271)		—		(419,699)
Cash flow from financing activities:
Proceeds from investment by member	(146,533)		162,148		—		—		15,615
Net proceeds from debt issuance	64,500		—		—		—		64,500
Loans received from and payments made on loans from other Summit Companies	51,696		(65,845)		6,647		7,502		—
Payments on long-term debt	(69,265)		(15,662)		(115)		—		(85,042)
Payments on acquisition-related liabilities	—		(34,004)		—		—		(34,004)
Financing costs	(550)		—		—		—		(550)
Distributions from partnership	(2,569)		—		—		—		(2,569)
Other	(879)		(1,031)		(33)		—		(1,943)
Net cash provided by financing activities	(103,600)		45,606		6,499		7,502		(43,993)
Impact of cash on foreign currency	—		—		(724)		—		(724)
Net (decrease) increase in cash	(253,522)		(1,814)		(7,214)		7,502		(255,048)
Cash — Beginning of period	370,741		10,254		14,933		(12,372)		383,556
Cash — End of period	$	117,219	$	8,440	$	7,719	$	(4,870)	$	128,508

XML

Summary of Organization and Significant Accounting Policies (Policies)

12 Months Ended

Jan. 02, 2021

Company Information

Principles of Consolidation

Principles of Consolidation—The consolidated financial statements include the accounts of Summit Inc. and its majority owned subsidiaries. All intercompany balances and transactions have been eliminated. As a result of the Reorganization, Summit Holdings became a variable interest entity over which Summit Inc. has 100% voting power and control and for which Summit Inc. has the obligation to absorb losses and the right to receive benefits.

The Company’s fiscal year is based on a 52-53 week year with each quarter composed of 13 weeks ending on a Saturday. The year ended January 2, 2021 was a 53-week year.

For a summary of the changes in Summit Inc.’s ownership of Summit Holdings, see Note 11, Stockholders’ Equity.

The Company attributes consolidated stockholders’ equity and net income separately to the controlling and noncontrolling interests. The Company accounts for investments in entities for which it has an ownership of 20% to 50% using the equity method of accounting.

Use of Estimates

Use of Estimates—Preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles (“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, the tax receivable agreement (“TRA”) liability, 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.

Business and Credit Concentrations

Business and Credit Concentrations—The Company’s operations are conducted primarily across 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.

Accounts Receivable

Accounts Receivable—Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the collectability of individual accounts. In establishing the allowance, management considers historical losses adjusted to take into account current market conditions and its customers’ financial condition, the amount of receivables in dispute, the current receivables aging and current payment terms. Balances that remain outstanding after reasonable collection efforts are exercised are written off through a charge to the valuation allowance.

The balances billed but not paid by customers, pursuant to retainage provisions included in contracts, are generally due upon completion of the contracts.

Revenue Recognition

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.

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. Revenue for product sales is recognized when evidence of an arrangement exists and when control passes, which generally is when the product is shipped. 

Aggregates and cement products are sold point-of-sale through purchase orders. When the product is sold on account, collectability typically occurs 30 to 60 days after the sale.  Revenue is recognized when cash is received from the customer at the point of sale or when the products are delivered or collected on site. There are no other timing implications that will create a contract asset or liability, and contract modifications are unlikely given the timing and nature of the transaction. Material sales are likely to have multiple performance obligations if the product is sold with delivery. In these instances, delivery most often occurs on the same day as the control of the product transfers to the customer. As a result, even in the case of multiple performance obligations, the performance obligations are satisfied concurrently and revenue is recognized simultaneously. 

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.

Collectability of service contracts is due reasonably after certain milestones in the contract are performed. Milestones vary by project, but are typically calculated using monthly progress based on the percentage of completion or a customer’s engineer review of progress. The majority of the time, collection occurs within 90 days of billing and cash is received within the same fiscal year as services performed. On most projects, the customer will withhold a portion of the invoice for retainage, which may last longer than a year depending on the job. 

Revenue derived from paving and related services is recognized over time based on the proportion of costs incurred to date relative to the total estimated costs at completion, which approximates progress towards completion. Under this 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. The majority of our construction service contracts, and therefore, revenue, are opened and completed within one year, with most activity during the spring, summer and fall. 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 actual cost to total estimated cost 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 year ended January 2, 2021.

We recognize claims when the amount of the claim can be estimated reliably and it is legally enforceable. In evaluating these criteria, we consider the contractual basis for the claim, the cause of any additional costs incurred, the reasonableness of those costs and the objective evidence available to support the claim.

When the contract includes variable consideration, we estimate the amount of consideration to which we will be entitled in exchange for transferring the promised goods or services to a customer. The amount of estimated variable consideration included in the transaction price is the amount for which it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Types of variable consideration include, but are not limited to, liquidated damages and other performance penalties and production and placement bonuses. 

The majority of contract modifications relate to the original contract and are often an extension of the original performance obligation. Predominately, modifications are not distinct from the terms in the original contract; therefore, they are considered part of a single performance obligation. We account for the modification using a cumulative catch-up adjustment. However, there are instances where goods or services in a modification are distinct from those transferred prior to the modification. In these situations, we account for the modifications as either a separate contract or prospectively depending on the facts and circumstances of the modification. 

Generally, construction contracts contain mobilization costs which are categorized as costs to fulfill a contract. These costs are excluded from any measure of progress toward contract fulfillment. These costs do not result in the transfer of control of a good or service to the customer and are amortized over the life of the contract. 

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.

Inventories

Inventories—Inventories consist of stone that has been removed from quarries and processed for future sale, cement, raw materials and finished concrete blocks. Inventories are valued at the lower of cost or net realizable value and are accounted for on a first-in first-out basis or an average cost basis. If items become obsolete or otherwise unusable or if quantities exceed what is projected to be sold within a reasonable period of time, they will be charged to costs of revenue in the period that the items are designated as obsolete or excess inventory. Stripping costs are costs of removing overburden and waste material to access aggregate materials and are expensed as incurred.

Property, Plant and Equipment, net

Property, Plant and Equipment, net—Property, plant and equipment are recorded at cost, less accumulated depreciation, depletion and amortization. Expenditures for additions and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Repair and maintenance costs that do not substantially expand productive capacity or extend the life of property, plant and equipment are expensed as incurred.

Landfill airspace is included in property, plant and equipment at cost and is amortized based on the portion of the airspace used during the period compared to the gross estimated value of available airspace, which is updated periodically as circumstances dictate. Management reassesses the landfill airspace capacity with any changes in value recorded in cost of

revenue. Capitalized landfill costs include expenditures for the acquisition of land and related airspace, engineering and permitting costs, cell construction costs and direct site improvement costs.

Upon disposal of an asset, the cost and related accumulated depreciation are removed from the Company’s accounts and any gain or loss is included in general and administrative expenses.

The Company reviews the carrying value of property, plant and equipment for impairment whenever events or circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. Such indicators may include, among others, deterioration in general economic conditions, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows or a trend of negative or declining cash flows over multiple periods.

Property, plant and equipment is tested for impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. As a result, the property, plant and equipment impairment test is at a significantly lower level than the level at which goodwill is tested for impairment. In markets where the Company does not produce downstream products, such as ready-mix concrete, asphalt paving mix and paving and related services, the lowest level of largely independent identifiable cash flows is at the individual aggregates operation or a group of aggregates operations collectively serving a local market or the cement operations. Conversely, in vertically-integrated markets, the cash flows of the downstream and upstream businesses are not largely independently identifiable and the vertically-integrated operations are considered the lowest level of largely independent identifiable cash flows.

Aggregates mineral bearing land and interests are included in property, plant and equipment. When leased mineral interests are acquired during a business combination, they are valued using an excess earnings approach for the life of the proven and probable reserves. Depletion expense is recorded using a units of production methodology.

Accrued Mining and Landfill Reclamation

Accrued Mining and Landfill Reclamation—The mining reclamation reserve and financial commitments for landfill closure and post-closure activities are based on management’s estimate of future cost requirements to reclaim property at both currently operating and closed sites. Estimates of these obligations have been developed based on management’s interpretation of current requirements and proposed regulatory changes and are intended to approximate fair value. Costs are estimated in current dollars, inflated until the expected time of payment, and then discounted back to present value using a credit-adjusted risk-free rate on obligations of similar maturity, adjusted to reflect the Company’s credit rating. Changes in the credit-adjusted risk-free rate do not change recorded liabilities. However, subsequent increases in the recognized obligations are measured using a current credit-adjusted risk-free rate. Decreases in the recognized obligations are measured at the initial credit-adjusted risk-free rate.

Significant changes in inflation rates, or the amount or, timing of future cost estimates typically result in both (1) a current adjustment to the recorded liability (and corresponding adjustment to the asset) and (2) a change in accretion of the liability and depreciation of the asset to be recorded prospectively over the remaining capacity of the unmined quarry or landfill.

Goodwill

Goodwill—Goodwill represents the purchase price paid in excess of the fair value of net tangible and intangible assets acquired. Goodwill recorded in connection with the Company’s acquisitions is primarily attributable to the expected profitability, assembled workforces of the acquired businesses and the synergies expected to arise after the Company’s acquisition of those businesses. Goodwill is not amortized, but is tested annually for impairment as of the first day of the fourth quarter and at any time that events or circumstances indicate that goodwill may be impaired. A qualitative approach may first be applied to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If, as a result of the qualitative assessment, it is determined that an impairment is more likely than not, the two-step quantitative impairment test is then performed, otherwise further analysis is not required. The two-step impairment test first identifies potential goodwill impairment for each reporting unit and then, if necessary, measures the amount of the impairment loss.

Income Taxes

Income Taxes—Summit Inc. is a corporation subject to income taxes in the United States. Certain subsidiaries, including Summit Holdings, or subsidiary groups of the Company are taxable separate from Summit Inc. The provision for income taxes, or Summit Inc.’s proportional share of the provision, are included in the Company’s consolidated financial statements.

The Company’s deferred income tax assets and liabilities are computed for differences between the tax basis and financial statement amounts that will result in taxable or deductible amounts in the future. The computed deferred balances are based on enacted tax laws and applicable rates for the periods in which the differences are expected to affect taxable income. A

valuation allowance is recognized for deferred tax assets if it is more likely than not that some portion or all of the net deferred tax assets will not be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines it would be able to realize its deferred tax assets for which a valuation allowance had been recorded then an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

The Company evaluates the tax positions taken on income tax returns that remain open and positions expected to be taken on the current year tax returns to identify uncertain tax positions. Unrecognized tax benefits on uncertain tax positions are recorded on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is more than 50 percent likely to be realized is recognized. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense (benefit).

Tax Receivable Agreement

Tax Receivable Agreement— When Class A limited partnership units of Summit Holdings (“LP Units”) are exchanged for shares of Class A common stock of Summit Inc. or Summit Inc. purchases LP Units for cash, this results in increases in Summit Inc.’s share of the tax basis of the tangible and intangible assets, which increases the tax depreciation and amortization deductions that otherwise would not have been available to Summit Inc.  These increases in tax basis and tax depreciation and amortization deductions are expected to reduce the amount of cash taxes that we would otherwise be required to pay in the future. Prior to our IPO, we entered into a TRA with the pre-IPO owners that requires us to pay the pre-IPO owners or their permitted assignees 85% of the amount of cash savings, if any, in U.S. federal, state, and local income tax that we actually realize as a result of these exchanges.  These benefits include (1) increases in the tax basis of tangible and intangible assets of Summit Holdings and certain other tax benefits related to entering into the TRA, (2) tax benefits attributable to payments under the TRA, or (3) under certain circumstances such as an early termination of the TRA, we are deemed to realize, as a result of the increases in tax basis in connection with exchanges by the pre-IPO owners described above and certain other tax benefits attributable to payments under the TRA.

As noted above, we periodically evaluate the realizability of the deferred tax assets resulting from the exchange of LP Units for Class A common stock. If the deferred tax assets are determined to be realizable, we then assess whether payment of amounts under the TRA have become probable. If so, we record a TRA liability equal to 85% of such deferred tax assets. In subsequent periods, we assess the realizability of all of our deferred tax assets subject to the TRA. Should we determine a deferred tax asset with a valuation allowance is realizable in a subsequent period, the related valuation allowance will be released and consideration of a corresponding TRA liability will be assessed. The realizability of deferred tax assets, including those subject to the TRA, is dependent upon the generation of future taxable income during the periods in which those deferred tax assets become deductible and consideration of prudent and feasible tax-planning strategies.

The measurement of the TRA liability is accounted for as a contingent liability. Therefore, once we determine that a payment to a pre-IPO owner has become probable and can be estimated, the estimate of payment will be accrued.

Earnings per Share

Earnings per Share—The Company computes basic earnings per share attributable to stockholders by dividing income attributable to Summit Inc. by the weighted-average shares of Class A common stock outstanding. Diluted earnings per share reflects the potential dilution beyond shares for basic earnings per share that could occur if securities or other contracts to issue common stock were exercised, converted into common stock, or resulted in the issuance of common stock that would have shared in the Company’s earnings. Since the Class B common stock has no economic value, those shares are not included in the weighted-average common share amount for basic or diluted earnings per share. In addition, as the shares of Class A common stock are issued by Summit Inc., the earnings and equity interests of noncontrolling interests are not included in basic earnings per share.

New Accounting Standards

New Accounting Standards — In February 2016, the Financial Accounting Standards Board FASB ("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 $36.8 million of operating lease right-of-use assets and $36.8 million operating lease liabilities. The standard had no material impact on our statements of operations and 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.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which reduces the accounting complexity of implementing a cloud computing service arrangement. The ASU aligns the capitalization of implementation costs among hosting arrangements and costs incurred to develop internal-use software. We adopted this ASU in the first quarter of 2020 and the adoption of this ASU did not have a material impact on the consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework Changes to The Disclosure Requirements for Defined Benefits Plans, which modifies the disclosure requirements of employer-sponsored defined benefit and other postretirement benefits plans. The ASU is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. The adoption of this new ASU did not have a material impact on our consolidated financial results.

Summit Materials, LLC

Company Information

Principles of Consolidation

Principles of Consolidation–The consolidated financial statements include the accounts of Summit LLC and its majority owned subsidiaries. All intercompany balances and transactions have been eliminated. The Company attributes consolidated member’s interest and net income separately to the controlling and noncontrolling interests. Noncontrolling interests in consolidated subsidiaries represent a 20% ownership in Ohio Valley Asphalt, LLC and, prior to the initial public offering (“IPO”) and concurrent purchase of the noncontrolling interests Continental Cement Company, L.L.C. (“Continental Cement”), a 30% redeemable ownership in Continental Cement. The Company accounts for investments in entities for which it has an ownership of 20% to 50% using the equity method of accounting.

The Company’s fiscal year is based on a 52-53 week year with each quarter composed of 13 weeks ending on a Saturday. The year ended January 2, 2021 was a 53-week year.

Use of Estimates

Use of Estimates— Preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles (“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.

Business and Credit Concentrations

Business and Credit Concentrations—The Company’s operations are conducted primarily across 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.

Accounts Receivable

Accounts Receivable—Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the collectability of individual accounts. In establishing the allowance, management considers historical losses adjusted to take into account current market conditions and its customers’ financial condition, the amount of receivables in dispute, the current receivables aging and current payment terms. Balances that remain outstanding after reasonable collection efforts are exercised are written off through a charge to the valuation allowance.

The balances billed but not paid by customers, pursuant to retainage provisions included in contracts, are generally due upon completion of the contracts.

Revenue Recognition

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.

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. Revenue for product sales is recognized when evidence of an arrangement exists and when control passes, which generally is when the product is shipped.

Aggregates and cement products are sold point-of-sale through purchase orders. When the product is sold on account, collectability typically occurs 30 to 60 days after the sale. Revenue is recognized when cash is received from the customer at the point of sale or when the products are delivered or collected on site. There are no other timing implications that will create a contract asset or liability, and contract modifications are unlikely given the timing and nature of the transaction. Material sales are likely to have multiple performance obligations if the product is sold with delivery. In these instances, delivery most often occurs on the same day as the control of the product transfers to the customer. As a result, even in the case of multiple performance obligations, the performance obligations are satisfied concurrently and revenue is recognized simultaneously.

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.

Collectability of service contracts is due reasonably after certain milestones in the contract are performed. Milestones vary by project, but are typically calculated using monthly progress based on the percentage of completion or a customer’s engineer review of progress. The majority of the time, collection occurs within 90 days of billing and cash is received within the same fiscal year as services performed. On most projects, the customer will withhold a portion of the invoice for retainage, which may last longer than a year depending on the job.

Revenue derived from paving and related services is recognized over time based on the proportion of costs incurred to date relative to the total estimated costs at completion, which approximates progress towards completion. Under this 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. The majority of our construction service contracts, and therefore, revenue, are opened and completed within one year, with most activity during the spring, summer and fall. 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 actual cost to total estimated cost 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 year ended January 2, 2021.

We recognize claims when the amount of the claim can be estimated reliably and it is legally enforceable. In evaluating these criteria, we consider the contractual basis for the claim, the cause of any additional costs incurred, the reasonableness of those costs and the objective evidence available to support the claim.

When the contract includes variable consideration, we estimate the amount of consideration to which we will be entitled in exchange for transferring the promised goods or services to a customer. The amount of estimated variable consideration included in the transaction price is the amount for which it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. Types of variable consideration include, but are not limited to, liquidated damages and other performance penalties and production and placement bonuses.

The majority of contract modifications relate to the original contract and are often an extension of the original performance obligation. Predominately, modifications are not distinct from the terms in the original contract; therefore, they are considered part of a single performance obligation. We account for the modification using a cumulative catch-up adjustment. However, there are instances where goods or services in a modification are distinct from those transferred prior to the modification. In these situations, we account for the modifications as either a separate contract or prospectively depending on the facts and circumstances of the modification.

Generally, construction contracts contain mobilization costs which are categorized as costs to fulfill a contract. These costs are excluded from any measure of progress toward contract fulfillment. These costs do not result in the transfer of control of a good or service to the customer and are amortized over the life of the contract.

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.

Inventories

Inventories—Inventories consist of stone that has been removed from quarries and processed for future sale, cement, raw materials and finished concrete blocks. Inventories are valued at the lower of cost or net realizable value and are accounted for on a first-in first-out basis or an average cost basis. If items become obsolete or otherwise unusable or if quantities exceed what is projected to be sold within a reasonable period of time, they will be charged to costs of revenue in the period that the items are designated as obsolete or excess inventory. Stripping costs are costs of removing overburden and waste material to access aggregate materials and are expensed as incurred.

Property, Plant and Equipment, net

Property, Plant and Equipment, net—Property, plant and equipment are recorded at cost, less accumulated depreciation, depletion and amortization. Expenditures for additions and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Repair and maintenance costs that do not substantially expand productive capacity or extend the life of property, plant and equipment are expensed as incurred.

Landfill airspace is included in property, plant and equipment at cost and is amortized based on the portion of the airspace used during the period compared to the gross estimated value of available airspace, which is updated periodically as circumstances dictate. Management reassesses the landfill airspace capacity with any changes in value recorded in cost of revenue. Capitalized landfill costs include expenditures for the acquisition of land and related airspace, engineering and permitting costs, cell construction costs and direct site improvement costs.

Upon disposal of an asset, the cost and related accumulated depreciation are removed from the Company’s accounts and any gain or loss is included in general and administrative expenses.

The Company reviews the carrying value of property, plant and equipment for impairment whenever events or circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. Such indicators may include, among others, deterioration in general economic conditions, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows or a trend of negative or declining cash flows over multiple periods.

Property, plant and equipment is tested for impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets. As a result, the property, plant and equipment impairment test is at a significantly lower level than the level at which goodwill is tested for impairment. In markets where the Company does not produce downstream products, such as ready-mix concrete, asphalt paving mix and paving and related services, the lowest level of largely independent identifiable cash flows is at the individual aggregates operation or a group of aggregates operations collectively serving a local market or the cement operations. Conversely, in vertically-integrated markets, the cash flows of the downstream and upstream businesses are not largely independently identifiable and the vertically-integrated operations are considered the lowest level of largely independent identifiable cash flows.

Aggregates mineral bearing land and interests are included in property, plant and equipment. When leased mineral interests are acquired during a business combination, they are valued using an excess earnings approach for the life of the proven and probable reserves. Depletion expense is recorded using a units of production methodology.

Accrued Mining and Landfill Reclamation

Accrued Mining and Landfill Reclamation—The mining reclamation reserve and financial commitments for landfill closure and post-closure activities are based on management’s estimate of future cost requirements to reclaim property at both currently operating and closed sites. Estimates of these obligations have been developed based on management’s interpretation of current requirements and proposed regulatory changes and are intended to approximate fair value. Costs are estimated in current dollars, inflated until the expected time of payment, and then discounted back to present value using a credit-adjusted risk-free rate on obligations of similar maturity, adjusted to reflect the Company’s credit rating. Changes in the credit-adjusted risk-free rate do not change recorded liabilities. However, subsequent increases in the recognized obligations are measured using a current credit-adjusted risk-free rate. Decreases in the recognized obligations are measured at the initial credit-adjusted risk-free rate.

Significant changes in inflation rates, or the amount or, timing of future cost estimates typically result in both (1) a current adjustment to the recorded liability (and corresponding adjustment to the asset) and (2) a change in accretion of the liability and depreciation of the asset to be recorded prospectively over the remaining capacity of the unmined quarry or landfill.

Goodwill

Goodwill—Goodwill represents the purchase price paid in excess of the fair value of net tangible and intangible assets acquired. Goodwill recorded in connection with the Company’s acquisitions is primarily attributable to the expected profitability, assembled workforces of the acquired businesses and the synergies expected to arise after the Company’s acquisition of those businesses. Goodwill is not amortized, but is tested annually for impairment as of the first day of the fourth quarter and at any time that events or circumstances indicate that goodwill may be impaired. A qualitative approach may first be applied to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its carrying amount. If, as a result of the qualitative assessment, it is determined that an impairment is more likely than not, the two-step quantitative impairment test is then performed, otherwise further analysis is not required. The two-step impairment test first identifies potential goodwill impairment for each reporting unit and then, if necessary, measures the amount of the impairment loss.

Income Taxes

Income Taxes—As a limited liability company, the Company’s federal and state income tax attributes are generally passed to its member. However, certain subsidiaries, or subsidiary groups, of the Company are taxable entities subject to income taxes in the United States and Canada, the provisions for which are included in the consolidated financial statements. Significant judgments and estimates are required in the determination of the consolidated income tax expense.

The Company’s deferred income tax assets and liabilities are computed for differences between the tax basis and financial statement amounts that will result in taxable or deductible amounts in the future. The computed deferred balances are based on enacted tax laws and applicable rates for the periods in which the differences are expected to affect taxable income. A valuation allowance is recognized for deferred tax assets if it is more likely than not that some portion or all of the net deferred tax assets will not be realized. In making such a determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines it would be able to realize its deferred tax assets for which a

valuation allowance had been recorded then an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.

The Company evaluates the tax positions taken on income tax returns that remain open and positions expected to be taken on the current year tax returns to identify uncertain tax positions. Unrecognized tax benefits on uncertain tax positions are recorded on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the largest amount of tax benefit that is more than 50 percent likely to be realized is recognized. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense (benefit).

New Accounting Standards

New Accounting Standards — In February 2016, the Financial Accounting Standards Board FASB ("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 $36.8 million of operating lease right-of-use assets and $36.8 million operating lease liabilities. The standard had no material impact on our statements of operations and 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.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which reduces the accounting complexity of implementing a cloud computing service arrangement. The ASU aligns the capitalization of implementation costs among hosting arrangements and costs incurred to develop internal-use software. We adopted this ASU in the first quarter of 2020 and the adoption of this ASU did not have a material impact on the consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework Changes to The Disclosure Requirements for Defined Benefits Plans, which modifies the disclosure requirements of employer-sponsored defined benefit and other postretirement benefits plans. The ASU is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. The adoption of this new ASU did not have a material impact on our consolidated financial results.

XML

Acquisitions (Tables)

12 Months Ended

Jan. 02, 2021

Summary of Acquisitions by Region

The following table summarizes the Company’s acquisitions by region and year:

	2020	2019	2018
West	2	2	5
East (1)	1	—	7

______________________

(1)    In addition, the Company acquired certain assets of a small ready-mix concrete operation in the second quarter of 2018.

Summary of Assets Acquired and Liabilities Assumed

The table below summarizes aggregated information regarding the fair values of the assets acquired and liabilities assumed as of the respective acquisition dates.

	2020		2019
Financial assets	$	8,696	$	—
Inventories	2,856		52
Property, plant and equipment	130,042		3,542
Other assets	2,790		—
Financial liabilities	(4,469)		(36)
Other long-term liabilities	(16,069)		—
Net assets acquired	123,846		3,558
Goodwill	—		1,834
Purchase price	123,846		5,392
Other	(369)		—
Net cash paid for acquisitions	$	123,477	$	5,392

Schedule of remaining payments under noncompete and deferred consideration agreements

The remaining payments due under these noncompete and deferred consideration agreements are as follows: 

2021	$	9,705
2022	3,411
2023	2,657
2024	2,620
2025	2,567
Thereafter	4,454
Total scheduled payments	25,414
Present value adjustments	(4,766)
Total noncompete obligations and deferred consideration	$	20,648

Summit Materials, LLC

Summary of Acquisitions by Region

The following table summarizes the Company’s acquisitions by region and year:

	2020	2019	2018
West	2	2	5
East (1)	1	—	7

______________________

(1)     In addition, the Company acquired certain assets of a small ready-mix concrete operation in the second quarter of 2018.

Summary of Assets Acquired and Liabilities Assumed

The table below summarizes aggregated information regarding the fair values of the assets acquired and liabilities assumed as of the respective acquisition dates.

	2020		2019
Financial assets	$	8,696	$	—
Inventories	2,856		52
Property, plant and equipment	130,042		3,542
Other assets	2,790		—
Financial liabilities	(4,469)		(36)
Other long-term liabilities	(16,069)		—
Net assets acquired	123,846		3,558
Goodwill	—		1,834
Purchase price	123,846		5,392
Other	(369)		—
Net cash paid for acquisitions	$	123,477	$	5,392

Schedule of remaining payments under noncompete and deferred consideration agreements

The remaining payments due under these noncompete and deferred consideration agreements are as follows:

2021	$	7,205
2022	3,411
2023	2,657
2024	2,620
2025	2,567
Thereafter	4,454
Total scheduled payments	22,914
Present value adjustments	(4,704)
Total noncompete obligations and deferred consideration	$	18,210

XML

Goodwill (Tables)

12 Months Ended

Jan. 02, 2021

Goodwill by Reportable Segment and in Total

The following table presents goodwill by reportable segments and in total:

	West		East		Cement		Total
Balance—December 29, 2018	$	580,567	$	406,805	$	204,656	$	1,192,028
Acquisitions	1,657		3,621		—		5,278
Foreign currency translation adjustments	2,393		—		—		2,393
Balance—December 28, 2019	$	584,617	$	410,426	$	204,656	$	1,199,699
Acquisitions (1)	19		—		—		19
Foreign currency translation adjustments	1,573		—		—		1,573
Balance—January 2, 2021	$	586,209	$	410,426	$	204,656	$	1,201,291

______________________

(1)Reflects goodwill from 2020 acquisitions and working capital adjustments from prior year acquisitions.

Summit Materials, LLC

Goodwill by Reportable Segment and in Total

The following table presents goodwill by reportable segments and in total:

	West		East		Cement		Total
Balance—December 29, 2018	$	581,567	$	406,805	$	204,656	$	1,193,028
Acquisitions	1,657		3,621		—		5,278
Foreign currency translation adjustments	2,393		—		—		2,393
Balance—December 28, 2019	$	585,617	$	410,426	$	204,656	$	1,200,699
Acquisitions (1)	19		—		—		19
Foreign currency translation adjustments	1,573		—		—		1,573
Balance—January 2, 2021	$	587,209	$	410,426	$	204,656	$	1,202,291

______________________

(1)Reflects goodwill from 2020 acquisitions and working capital adjustments from prior year acquisitions.

XML

Revenue Recognition (Tables)

12 Months Ended

Jan. 02, 2021

Revenue from External Customer [Line Items]

Summary of Revenue by Products

Revenue by product for the years ended January 2, 2021, December 28, 2019 and December 29, 2018 consisted of the following:

	2020		2019		2018
Revenue by product*:
Aggregates	$	498,007	$	469,670	$	373,824
Cement	257,629		266,235		258,876
Ready-mix concrete	668,060		607,622		584,114
Asphalt	349,350		330,750		301,247
Paving and related services	381,430		360,234		379,540
Other	177,975		187,629		203,401
Total revenue	$	2,332,451	$	2,222,140	$	2,101,002

______________________

 *       Revenue from the liquid asphalt terminals is included in asphalt revenue.

Summary of Contract Assets and Liabilities

The following table outlines the significant changes in contract assets and contract liability balances from December 28, 2019 to January 2, 2021. Also included in the table is the net change in the 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 28, 2019	$	13,088	$	13,864
Changes in revenue billed, contract price or cost estimates	(4,535)		2,616
Other	113		19
Balance—January 2, 2021	$	8,666	$	16,499

Summary of Accounts Receivable, Net

Accounts receivable, net consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Trade accounts receivable	$	191,871	$	191,672
Construction contract receivables	47,179		47,966
Retention receivables	18,824		17,808
Receivables from related parties	1,339		1,596
Accounts receivable	259,213		259,042
Less: Allowance for doubtful accounts	(4,517)		(5,786)
Accounts receivable, net	$	254,696	$	253,256

Summit Materials, LLC

Revenue from External Customer [Line Items]

Summary of Revenue by Products

Revenue by product for the years ended January 2, 2021, December 28, 2019 and December 29, 2018 consisted of the following:

	2020		2019		2018
Revenue by product*:
Aggregates	$	498,007	$	469,670	$	373,824
Cement	257,629		266,235		258,876
Ready-mix concrete	668,060		607,622		584,114
Asphalt	349,350		330,750		301,247
Paving and related services	381,430		360,234		379,540
Other	177,975		187,629		203,401
Total revenue	$	2,332,451	$	2,222,140	$	2,101,002

______________________

*Revenue from the liquid asphalt terminals is included in asphalt revenue.

Summary of Contract Assets and Liabilities

The following table outlines the significant changes in contract assets and contract liability balances from December 28, 2019 to January 2, 2021. Also included in the table is the net change in the 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 28, 2019	$	13,088	$	13,864
Changes in revenue billed, contract price or cost estimates	(4,535)		2,616
Other	113		19
Balance—January 2, 2021	$	8,666	$	16,499

Summary of Accounts Receivable, Net

Accounts receivable, net consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Trade accounts receivable	$	191,871	$	191,672
Construction contract receivables	47,179		47,966
Retention receivables	18,824		17,808
Receivables from related parties	1,339		1,596
Accounts receivable	259,213		259,042
Less: Allowance for doubtful accounts	(4,517)		(5,786)
Accounts receivable, net	$	254,696	$	253,256

XML

Inventories (Tables)

12 Months Ended

Jan. 02, 2021

Inventory [Line Items]

Components of Inventories

Inventories consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Aggregate stockpiles	$	137,938	$	140,461
Finished goods	32,993		33,023
Work in process	9,281		7,664
Raw materials	20,096		23,639
Total	$	200,308	$	204,787

Summit Materials, LLC

Inventory [Line Items]

Components of Inventories

Inventories consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Aggregate stockpiles	$	137,938	$	140,461
Finished goods	32,993		33,023
Work in process	9,281		7,664
Raw materials	20,096		23,639
Total	$	200,308	$	204,787

XML

Property, Plant and Equipment, net and Intangibles, net (Tables)

12 Months Ended

Jan. 02, 2021

Property, Plant and Equipment [Line Items]

Summary of Property, Plant and Equipment

Property, plant and equipment, net consisted of the following as of January 2, 2021 and December 28, 2019: 

	2020		2019
Mineral bearing land and leased interests	$	468,966	$	333,024
Land (non-mineral bearing)	197,432		182,065
Buildings and improvements	181,198		178,088
Plants, machinery and equipment	1,397,410		1,318,512
Mobile equipment and barges	543,133		501,809
Truck and auto fleet	56,163		54,838
Landfill airspace and improvements	52,202		49,766
Office equipment	45,942		43,155
Construction in progress	40,648		42,007
Property, plant and equipment	2,983,094		2,703,264
Less accumulated depreciation, depletion and amortization	(1,132,925)		(955,815)
Property, plant and equipment, net	$	1,850,169	$	1,747,449

The estimated useful lives are generally as follows:

Buildings and improvements	10 - 30	years
Plant, machinery and equipment	7 - 20	years
Office equipment	3 - 7	years
Truck and auto fleet	5 - 8	years
Mobile equipment and barges	6 - 8	years
Landfill airspace and improvements	10 - 30	years
Other	4 - 20	years

Intangible Assets by Type and in Total

The following table shows intangible assets by type and in total: 

	January 2, 2021						December 28, 2019
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Operating permits	$	33,671	$	(1,207)	$	32,464	$	6,609	$	(290)	$	6,319
Mineral leases	19,225		(7,571)		11,654		19,064		(6,408)		12,656
Reserve rights	6,234		(2,504)		3,730		6,234		(2,248)		3,986
Trade names	—		—		—		1,000		(958)		42
Other	586		(582)		4		957		(462)		495
Total intangible assets	$	59,716	$	(11,864)	$	47,852	$	33,864	$	(10,366)	$	23,498

Estimated Amortization Expense for Intangible Assets

The estimated amortization expense for intangible assets for each of the next five years and thereafter is as follows: 

2021	$	3,129
2022	3,136
2023	3,003
2024	2,908
2025	2,863
Thereafter	32,813
Total	$	47,852

Summit Materials, LLC

Property, Plant and Equipment [Line Items]

Summary of Property, Plant and Equipment

Property, plant and equipment, net consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Mineral bearing land and leased interests	$	468,966	$	333,024
Land (non-mineral bearing)	197,432		182,065
Buildings and improvements	181,198		178,088
Plants, machinery and equipment	1,397,410		1,318,512
Mobile equipment and barges	543,133		501,809
Truck and auto fleet	56,163		54,838
Landfill airspace and improvements	52,202		49,766
Office equipment	45,942		43,155
Construction in progress	40,648		42,007
Property, plant and equipment	2,983,094		2,703,264
Less accumulated depreciation, depletion and amortization	(1,132,925)		(955,815)
Property, plant and equipment, net	$	1,850,169	$	1,747,449

The estimated useful lives are generally as follows:

Buildings and improvements	10 - 30 years
Plant, machinery and equipment	7 - 20 years
Office equipment	3 - 7 years
Truck and auto fleet	5 - 8 years
Mobile equipment and barges	6 - 8 years
Landfill airspace and improvements	10 - 30 years
Other	4 - 20 years

Intangible Assets by Type and in Total

:

	January 2, 2021						December 28, 2019
	Gross				Net		Gross				Net
	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Amount		Amortization		Amount		Amount		Amortization		Amount
Operating permits	$	33,671	$	(1,207)	$	32,464	$	6,609	$	(290)	$	6,319
Mineral leases	19,225		(7,571)		11,654		19,064		(6,408)		12,656
Reserve rights	6,234		(2,504)		3,730		6,234		(2,248)		3,986
Trade names	—		—		—		1,000		(958)		42
Other	586		(582)		4		957		(462)		495
Total intangible assets	$	59,716	$	(11,864)	$	47,852	$	33,864	$	(10,366)	$	23,498

Estimated Amortization Expense for Intangible Assets

The estimated amortization expense for intangible assets for each of the next five years and thereafter is as follows: 

2021	$	3,129
2022	3,136
2023	3,003
2024	2,908
2025	2,863
Thereafter	32,813
Total	$	47,852

XML

Accrued Expenses (Tables)

12 Months Ended

Jan. 02, 2021

Schedule Of Accrued Expenses [Line Items]

Components of Accrued Expenses

Accrued expenses consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Interest	$	21,860	$	26,892
Payroll and benefits	46,026		29,356
Finance lease obligations	24,601		16,007
Insurance	18,355		14,968
Non-income taxes	15,669		7,666
Deferred asset purchase payments	9,749		3,525
Professional fees	828		902
Other (1)	23,482		20,689
Total	$	160,570	$	120,005

______________________

(1)Consists primarily of current portion of asset retirement obligations and miscellaneous accruals.

Summit Materials, LLC

Schedule Of Accrued Expenses [Line Items]

Components of Accrued Expenses

Accrued expenses consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Interest	$	21,860	$	26,892
Payroll and benefits	46,026		29,356
Finance lease obligations	24,601		16,007
Insurance	18,355		14,968
Non-income taxes	15,900		7,898
Deferred asset purchase payments	9,749		3,525
Professional fees	828		902
Other (1)	23,482		20,689
Total	$	160,801	$	120,237

______________________

(1)Consists primarily of current portion of asset retirement obligations and miscellaneous accruals.

XML

Debt (Tables)

12 Months Ended

Jan. 02, 2021

Schedule of Debt

Debt consisted of the following as of January 2, 2021 and December 28, 2019: 

	2020		2019
Term Loan, due 2024:
$616.3 million and $624.3 million, net of $0.9 million and $1.1 million discount at January 2, 2021 and December 28, 2019, respectively	$	615,425	$	623,140
6 1⁄8% Senior Notes, due 2023:
$650.0 million, net of $0.9 million discount at December 28, 2019	—		649,133
5 1⁄8% Senior Notes, due 2025	300,000		300,000
6 1⁄2% Senior Notes, due 2027	300,000		300,000
5 1⁄4% Senior Notes, due 2029	700,000		—
Total	1,915,425		1,872,273
Current portion of long-term debt	6,354		7,942
Long-term debt	$	1,909,071	$	1,864,331

Schedule of Contractual Payments of Long-Term Debt

The contractual payments of long-term debt, including current maturities, for the five years subsequent to January 2, 2021, are as follows:

2021	$	6,354
2022	6,354
2023	6,354
2024	597,252
2025	300,000
Thereafter	1,000,000
Total	1,916,314
Less: Original issue net discount	(889)
Less: Capitalized loan costs	(16,724)
Total debt	$	1,898,701

Summary of Activity for Deferred Financing Fees

The following table presents the activity for the deferred financing fees for the years ended January 2, 2021 and December 28, 2019:

	Deferred financing fees
Balance—December 29, 2018	$	15,475
Loan origination fees	6,312
Amortization	(3,501)
Write off of deferred financing fees	(2,850)
Balance—December 28, 2019	$	15,436
Loan origination fees	9,605
Amortization	(3,336)
Write off of deferred financing fees	(3,338)
Balance—January 2, 2021	$	18,367

Summit Materials, LLC

Schedule of Debt

Debt consisted of the following as of January 2, 2021 and December 28, 2019:

	2020		2019
Term Loan, due 2024:
$616.3 million and $624.3 million, net of $0.9 million and $1.1 million discount at January 2, 2021 and December 28, 2019, respectively	$	615,425	$	623,140
6 1⁄8% Senior Notes, due 2023:
$650.0 million, net of $0.9 million discount at December 28, 2019	—		649,133
5 1⁄8% Senior Notes, due 2025	300,000		300,000
6 1⁄2% Senior Notes, due 2027	300,000		300,000
5 1⁄4% Senior Notes, due 2029	700,000		—
Total	1,915,425		1,872,273
Current portion of long-term debt	6,354		7,942
Long-term debt	$	1,909,071	$	1,864,331

Schedule of Contractual Payments of Long-Term Debt

The contractual payments of long-term debt, including current maturities, for the five years subsequent to January 2, 2021, are as follows:

2021	$	6,354
2022	6,354
2023	6,354
2024	597,252
2025	300,000
Thereafter	1,000,000
Total	1,916,314
Less: Original issue net discount	(889)
Less: Capitalized loan costs	(16,724)
Total debt	$	1,898,701

Summary of Activity for Deferred Financing Fees

The following table presents the activity for the deferred financing fees for the years ended January 2, 2021 and December 28, 2019: 

	Deferred financing fees
Balance—December 29, 2018	$	15,475
Loan origination fees	6,312
Amortization	(3,501)
Write off of deferred financing fees	(2,850)
Balance—December 28, 2019	$	15,436
Loan origination fees	9,605
Amortization	(3,336)
Write off of deferred financing fees	(3,338)
Balance—January 2, 2021	$	18,367

XML

Income Taxes (Tables)

12 Months Ended

Jan. 02, 2021

Income Taxes [Line Items]

Components of Income Tax Benefit

For the years ended January 2, 2021, December 28, 2019 and December 29, 2018, income taxes consisted of the following: 

	2020		2019		2018
Provision for income taxes:
Current	$	3,827	$	69	$	463
Deferred	(16,012)		17,032		59,284
Income tax expense (benefit)	$	(12,185)	$	17,101	$	59,747

Schedule of Reconciliation of Income Tax (Benefit) Expense

The effective tax rate on pre-tax income differs from the U.S. statutory rate of 21% for 2020, 2019 and 2018, respectively, due to the following:

	2020		2019		2018
Income tax expense (benefit) at federal statutory tax rate	$	27,100	$	16,427	$	20,177
Less: Income tax benefit at federal statutory tax rate for LLC entities	(593)		(658)		(561)
State and local income taxes	5,067		3,792		4,894
Permanent differences	(3,345)		(6,272)		(5,537)
Effective tax rate change	4,257		(2,006)		4,034
Unrecognized tax benefits	(41,548)		18,885		22,663
Tax receivable agreement (benefit) expense	(6)		2,436		(8,282)
Change in valuation allowance	—		(17,691)		17,592
Other	(3,117)		2,188		4,767
Income tax expense (benefit)	$	(12,185)	$	17,101	$	59,747

Components of Net Deferred Income Tax Liability

The following table summarizes the components of the net deferred income tax asset (liability) as January 2, 2021 and December 28, 2019: 

	2020		2019
Deferred tax assets (liabilities):
Net intangible assets	$	199,497	$	240,790
Accelerated depreciation	(209,644)		(201,126)
Net operating loss	227,560		164,335
Investment in limited partnership	(33,139)		(31,987)
Mining reclamation reserve	3,306		2,018
Working capital (e.g., accrued compensation, prepaid assets)	45,972		37,287
Interest expense limitation carryforward	—		2,691
Less valuation allowance	(1,675)		(1,675)
Deferred tax assets	231,877		212,333
Less foreign deferred tax liability (included in other noncurrent liabilities)	(18,393)		(8,267)
Net deferred tax asset	$	213,484	$	204,066

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Unrecognized Tax Benefits
Balance—December 29, 2018	$	22,663
Additions based on tax position in 2018	18,885
Balance—December 28, 2019	$	41,548
Reductions based on new regulations	(41,548)
Balance—January 2, 2021	$	—

Summary of Valuation Allowance

	2020		2019
Valuation Allowance:
Beginning balance	$	(1,675)	$	(19,366)
Current year decreases (increases) from operations	—		17,691
Ending balance	$	(1,675)	$	(1,675)

Summit Materials, LLC

Income Taxes [Line Items]

Components of Income Tax Benefit

For the years ended January 2, 2021, December 28, 2019 and December 29, 2018, income taxes consisted of the following:

	2020		2019		2018
Provision for income taxes:
Current	$	3,827	$	69	$	463
Deferred	(2,764)		6,316		9,810
Income tax expense (benefit)	$	1,063	$	6,385	$	10,273

Schedule of Reconciliation of Income Tax (Benefit) Expense

The effective tax rate on pre-tax income differs from the U.S. statutory rate of 21% for 2020, 2019 and 2018, respectively, due to the following:

	2020		2019		2018
Income tax expense (benefit) at federal statutory tax rate	$	25,577	$	19,947	$	15,563
Less: Income tax benefit at federal statutory tax rate for LLC entities	(17,647)		(15,387)		(13,863)
State and local income taxes	2,073		1,680		1,614
Permanent differences	2,479		13		(1,194)
Effective tax rate change	681		(725)		(1,148)
Unrecognized tax benefits	(11,525)		5,038		6,487
Valuation allowance	—		(2,478)		2,586
Other	(575)		(1,703)		228
Income tax benefit	$	1,063	$	6,385	$	10,273

Components of Net Deferred Income Tax Liability

The following table summarizes the components of the net deferred income tax asset (liability) as January 2, 2021 and December 28, 2019:

	2020		2019
Deferred tax (liabilities) assets:
Accelerated depreciation	$	(70,588)	$	(60,216)
Net operating loss	26,929		18,036
Investment in limited partnership	(18,931)		(17,686)
Net intangible assets	(3,264)		(2,554)
Mining reclamation reserve	1,652		723
Working capital (e.g., accrued compensation, prepaid assets)	1,590		1,366
Interest expense limitation carryforward	—		2,691
Net deferred tax liabilities	(62,612)		(57,640)
Less valuation allowance	(1,675)		(1,675)
Net deferred tax liability	$	(64,287)	$	(59,315)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Unrealized Tax Benefits
Balance—December 29, 2018	$	6,487
Additions based on tax position in 2018	5,132
Balance—December 28, 2019	$	11,619
Reductions based on new regulations	(11,619)
Balance—January 2, 2021	$	—

Summary of Valuation Allowance

	2020		2019
Valuation Allowance:
Beginning balance	$	(1,675)	$	(4,261)
Loss carryforwards	—		—
Current year decreases (increases) from operations	—		2,586
Release of valuation allowance and other	—		—
Ending balance	$	(1,675)	$	(1,675)

XML

Earnings Per Share (Tables)

12 Months Ended

Jan. 02, 2021

Earnings Per Share [Abstract]

Schedule of Basic Earnings Per Share

The following table shows the calculation of basic income per share:  

	2020		2019		2018
Net income attributable to Summit Inc.	$	137,967	$	59,066	$	33,906
Weighted average shares of Class A stock outstanding
Add: Nonvested restricted stock awards of retirement eligible shares	212,443		—		—
Add: Weighted average shares of Class A stock outstanding	114,014,749		112,204,067		111,380,175
Weighted average basic shares outstanding	114,227,192		112,204,067		111,380,175
Basic earnings per share	$	1.21	$	0.53	$	0.30
Diluted net income attributable to Summit Inc.	$	137,967	$	59,066	$	33,906
Weighted average shares of Class A stock outstanding	114,014,749		112,204,067		111,380,175
Add: stock options	3,390		87,290		282,329
Add: warrants	—		4,206		25,049
Add: restricted stock units	520,871		342,620		459,280
Add: performance stock units	92,758		46,535		169,813
Weighted average dilutive shares outstanding	114,631,768		112,684,718		112,316,646
Diluted earnings per share	$	1.20	$	0.52	$	0.30

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

Excluded from the above calculations were the shares noted below as they were antidilutive:

	2020	2019	2018
Antidilutive shares:
LP Units	3,060,248	3,372,706	3,512,669
Warrants	100,037	—	—

XML

Stockholder's Equity/Members' Interest (Tables)

12 Months Ended

Jan. 02, 2021

Company Information

Schedule of Changes in Ownership of Summit Holdings

The following table summarizes the changes in our ownership of Summit Holdings: 

	Summit Inc. Shares (Class A)	LP Units	Total	Summit Inc. Ownership Percentage
Balance — December 29, 2018	111,658,927	3,435,518	115,094,445	97.0	%
Exchanges during period	185,861	(185,861)	—
Stock option exercises	1,065,446	—	1,065,446
Other equity transactions	399,151	—	399,151
Balance — December 28, 2019	113,309,385	3,249,657	116,559,042	97.2	%
Exchanges during period	376,487	(376,487)	—
Stock option exercises	54,517	—	54,517
Other equity transactions	650,206	—	650,206
Balance — January 2, 2021	114,390,595	2,873,170	117,263,765	97.5	%

Schedule of Changes in Each Component of Accumulated Other Comprehensive Income (Loss)

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		income (loss)
Balance — December 29, 2018	$	3,573	$	(2,147)	$	1,255	$	2,681
Postretirement liability adjustment, net of tax	(1,402)		—		—		(1,402)
Foreign currency translation adjustment, net of tax	—		3,424		—		3,424
Income on cash flow hedges, net of tax	—		—		(1,255)		(1,255)
Balance — December 28, 2019	$	2,171	$	1,277	$	—	$	3,448
Postretirement liability adjustment, net of tax	(1,638)		—		—		(1,638)
Foreign currency translation adjustment, net of tax	—		3,393		—		3,393
Balance — January 2, 2021	$	533	$	4,670	$	—	$	5,203

Summit Materials, LLC

Company Information

Schedule of Changes in Each Component of Accumulated Other Comprehensive Income (Loss)

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		income (loss)
Balance — December 29, 2018	$	(4,392)	$	(19,370)	$	146	$	(23,616)
Postretirement liability adjustment	(1,925)		—		—		(1,925)
Foreign currency translation adjustment	—		4,716		—		4,716
Income on cash flow hedges	—		—		(146)		(146)
Balance — December 28, 2019	$	(6,317)	$	(14,654)	$	—	$	(20,971)
Postretirement liability adjustment	(2,229)		—		—		(2,229)
Foreign currency translation adjustment	—		4,617		—		4,617
Balance — January 2, 2021	$	(8,546)	$	(10,037)	$	—	$	(18,583)

XML

Supplemental Cash Flow Information (Tables)

12 Months Ended

Jan. 02, 2021

Schedule Of Cash Flow Supplemental [Line Items]

Schedule of Supplemental Cash Flow Information

Supplemental cash flow information for the years ended January 2, 2021, December 28, 2019 and December 29, 2018 was as follows:

	2020		2019		2018
Cash payments:
Interest	$	99,551	$	104,614	$	103,250
Payments (refunds) for income taxes, net	1,754		(919)		3,340
Operating cash payments on operating leases	10,452		10,618		N/A
Operating cash payments on finance leases	3,132		3,051		N/A
Finance cash payments on finance leases	14,408		13,164		N/A
Non cash financing activities:
Right of use assets obtained in exchange for operating lease obligations	$	4,849	$	5,842	N/A
Right of use assets obtained in exchange for finance leases obligations	18,016		23,965		N/A
Exchange of LP Units to shares of Class A common stock	8,227		3,847		7,499

Summit Materials, LLC

Schedule Of Cash Flow Supplemental [Line Items]

Schedule of Supplemental Cash Flow Information

Supplemental cash flow information for the years ended January 2, 2021, December 28, 2019 and December 29, 2018 was as follows:

	2020		2019		2018
Cash payments:
Interest	$	99,551	$	104,614	$	103,250
Payments (refunds) for income taxes, net	1,754		(919)		3,340
Operating cash payments on operating leases	10,452		10,618		N/A
Operating cash payments on finance leases	3,132		3,051		N/A
Finance cash payments on finance leases	14,408		13,164		N/A
Non cash financing activities:
Right of use assets obtained in exchange for operating lease obligations	$	4,849	$	5,842	N/A
Right of use assets obtained in exchange for finance leases obligations	18,016		23,965		N/A

XML

Stock-Based Compensation (Tables)

12 Months Ended

Jan. 02, 2021

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of Information for the Equity Awards Granted

The following table summarizes information for the equity awards granted in 2020:

	Options			Restricted Stock Units			Performance Stock Units			Warrants
		Weighted			Weighted			Weighted			Weighted
		average grant-		Number of	average grant-		Number of	average grant-			average grant-
	Number of	date fair value		restricted	date fair value		performance	date fair value		Number of	date fair value
	options	per unit		stock units	per unit		stock units	per unit		warrants	per unit
Beginning balance—December 28, 2019	2,128,107	$	9.08	1,556,636	$	20.29	390,645	$	31.08	100,037	$	18.00
Granted	—	—		1,379,943	18.10		199,946	23.43		—	—
Forfeited/ Canceled	(35,117)	12.30		(154,283)	19.12		(112,416)	26.54		—	—
Exercised	(54,517)	10.10		—	—		—	—		—	—
Vested	—	—		(647,345)	21.28		(49,300)	32		—	—
Balance—January 2, 2021	2,038,473	$	9.16	2,134,951	$	18.64	428,875	$	28.64	100,037	$	18.00

Summit Materials, LLC

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of Information for the Equity Awards Granted

The following table summarizes information for the equity awards granted in 2020:

	Options			Restricted Stock Units			Performance Stock Units			Warrants
		Weighted			Weighted			Weighted			Weighted
		average grant-		Number of	average grant-		Number of	average grant-			average grant-
	Number of	date fair value		restricted	date fair value		performance	date fair value		Number of	date fair value
	options	per unit		stock units	per unit		stock units	per unit		warrants	per unit
Beginning balance—December 28, 2019	2,128,107	$	9.08	1,556,636	$	20.29	390,645	$	31.08	100,037	$	18.00
Granted	—	—		1,379,943	18.10		199,946	23.43		—	—
Forfeited/ Canceled	(35,117)	12.30		(154,283)	19.12		(112,416)	26.54		—	—
Exercised	(54,517)	10.10		—	—		—	—		—	—
Vested	—	—		(647,345)	21.28		(49,300)	32		—	—
Balance—January 2, 2021	2,038,473	$	9.16	2,134,951	$	18.64	428,875	$	28.64	100,037	$	18.00

XML

Employee Benefit Plans (Tables)

12 Months Ended

Jan. 02, 2021

Defined Benefit Plan Disclosure [Line Items]

Obligations and Funded Status

The following information is as of January 2, 2021 and December 28, 2019 and for the years ended January 2, 2021, December 28, 2019 and December 29, 2018: 

	2020				2019
	Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.
Change in benefit obligations:
Beginning of period	$	26,181	$	9,090	$	24,203	$	9,203
Service cost	71		176		60		166
Interest cost	733		242		928		321
Actuarial (gain) loss	2,425		676		2,571		165
Benefits paid	(1,583)		(955)		(1,581)		(765)
End of period	$	27,827	$	9,229	$	26,181	$	9,090
Change in fair value of plan assets:
Beginning of period	$	18,242	$	—	$	17,449	$	—
Actual return on plan assets	1,916		—		2,055		—
Employer contributions	483		955		319		765
Benefits paid	(1,583)		(955)		(1,581)		(765)
End of period	$	19,058	$	—	$	18,242	$	—
Funded status of plans	$	(8,769)	$	(9,229)	$	(7,939)	$	(9,090)
Current liabilities	$	—	$	(636)	$	—	$	(653)
Noncurrent liabilities	(8,769)		(8,593)		(7,939)		(8,437)
Liability recognized	$	(8,769)	$	(9,229)	$	(7,939)	$	(9,090)
Amounts recognized in accumulated other comprehensive income:
Net actuarial (gain) loss	$	10,689	$	2,707	$	9,286	$	2,121
Prior service cost	—		(1,690)		—		(1,931)
Total amount recognized	$	10,689	$	1,017	$	9,286	$	190

Amounts Recognized in Other Comprehensive (Gain) Loss

The amount recognized in accumulated other comprehensive income (“AOCI”) is the actuarial loss (credit) and prior service cost, which has not yet been recognized in periodic benefit cost.

	2020				2019				2018
	Pension		Healthcare		Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.		benefits		& Life Ins.
Amounts recognized in other comprehensive (income) loss:
Net actuarial loss (gain)	$	1,728	$	675	$	1,760	$	165	$	(1,300)	$	(172)
Amortization of prior year service cost	—		241		—		241		—		241
Amortization of gain	(326)		(89)		(202)		(39)		(312)		(118)
Total amount recognized	$	1,402	$	827	$	1,558	$	367	$	(1,612)	$	(49)

Schedule of Net Benefit Costs

Components of net periodic benefit cost:
Service cost	$	71	$	176	$	60	$	166	$	67	$	170
Interest cost	733		242		928		321		898		317
Amortization of gain	326		89		202		39		312		118
Expected return on plan assets	(1,221)		—		(1,244)		—		(1,284)		—
Amortization of prior service credit	—		(241)		—		(241)		—		(241)
Net periodic (expense) benefit cost	$	(91)	$	266	$	(54)	$	285	$	(7)	$	364

Schedule of Assumptions Used

Weighted-average assumptions used to determine the benefit obligations as of year-end 2020 and 2019 are:

	2020		2019
		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	1.84% - 2.14%	1.80% - 1.82%	2.78% - 2.96%	2.73% - 2.79%
Expected long-term rate of return on plan assets	7.00%	N/A	7.00%	N/A

Weighted-average assumptions used to determine net periodic benefit cost for years ended January 2, 2021, December 28, 2019 and December 29, 2018:

	2020		2019		2018
		Healthcare		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	2.78% - 2.96%	2.73% - 2.79%	3.90% - 4.02%	3.87% - 3.91%	3.23% - 3.37%	3.20% - 3.25%
Expected long-term rate of return on plan assets	7.00%	N/A	7.00%	N/A	7.00%	N/A

Fair Value of Company's Pension Plans' Assets

The fair value of the Plans’ assets by asset class and fair value hierarchy level as of January 2, 2021 and December 28, 2019 are as follows:

	2020
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	3,294	$	3,294	$	—
Intermediate—corporate	3,218		—		3,218
Short-term—government	705		705		—
Short-term—corporate	448		—		448
International	1,086		—		1,086
Equity securities:
U.S. Large cap value	1,516		1,516		—
U.S. Large cap growth	1,483		1,483		—
U.S. Mid cap value	631		631		—
U.S. Mid cap growth	619		619		—
U.S. Small cap value	663		663		—
U.S. Small cap growth	650		650		—
International	1,227		407		820
Emerging Markets	409		409		—
Commodities Broad Basket	1,002		182		820
Cash	2,107		2,107		—
Total	$	19,058	$	12,666	$	6,392

	2019
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	2,482	$	2,482	$	—
Intermediate—corporate	1,066		—		1,066
Short-term—government	1,387		1,387		—
Short-term—corporate	3,173		—		3,173
International	1,387		—		1,387
Equity securities:
U.S. Large cap value	1,225		1,225		—
U.S. Large cap growth	1,167		1,167		—
U.S. Mid cap value	581		581		—
U.S. Mid cap growth	578		578		—
U.S. Small cap value	583		583		—
U.S. Small cap growth	593		593		—
Managed Futures	340		—		340
International	1,174		386		788
Emerging Markets	394		394		—
Commodities Broad Basket	1,118		362		756
Cash	994		994		—
Total	$	18,242	$	10,732	$	7,510

Estimated Benefit Payments

The estimated benefit payments for each of the next five years and the five-year period thereafter are as follows:

	Pension		Healthcare and Life
	benefits		Insurance Benefits
2021	$	1,692	$	636
2022	1,693		630
2023	1,696		617
2024	1,655		619
2025	1,613		627
2026 - 2030	7,597		3,139

Schedule of Multiemployer Plans

										Expiration Date of
		Pension Protection Act		FIP/RP Status	Contributions of Company					Collective-
Pension	EIN/ Pension	Zone Status		Pending/	($ in thousands)				Surcharge	Bargaining
Trust Fund	Plan Number	2020	2019	Implemented	2020		2019		Imposed	Agreement
Construction Industry Laborers Pension Fund	43-6060737/001	Green - as of December 31, 2019	Green - as of December 31, 2018	None	$	100	$	112	No	3/31/2021
Operating Engineers Local 101 Pension Plan	43-6059213/001	Green - as of December 31, 2019	Green - as of December 31, 2018	None	20		23		No	3/31/2021
Total Contributions					$	120	$	135

Summit Materials, LLC

Defined Benefit Plan Disclosure [Line Items]

Obligations and Funded Status

The following information is as of January 2, 2021 and December 28, 2019 and for the years ended January 2, 2021, December 28, 2019 and December 29, 2018:  

	2020				2019
	Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.
Change in benefit obligations:
Beginning of period	$	26,181	$	9,090	$	24,203	$	9,203
Service cost	71		176		60		166
Interest cost	733		242		928		321
Actuarial (gain) loss	2,425		676		2,571		165
Benefits paid	(1,583)		(955)		(1,581)		(765)
End of period	$	27,827	$	9,229	$	26,181	$	9,090
Change in fair value of plan assets:
Beginning of period	$	18,242	$	—	$	17,449	$	—
Actual return on plan assets	1,916		—		2,055		—
Employer contributions	483		955		319		765
Benefits paid	(1,583)		(955)		(1,581)		(765)
End of period	$	19,058	$	—	$	18,242	$	—
Funded status of plans	$	(8,769)	$	(9,229)	$	(7,939)	$	(9,090)
Current liabilities	$	—	$	(636)	$	—	$	(653)
Noncurrent liabilities	(8,769)		(8,593)		(7,939)		(8,437)
Liability recognized	$	(8,769)	$	(9,229)	$	(7,939)	$	(9,090)
Amounts recognized in accumulated other comprehensive income:
Net actuarial (gain) loss	$	10,689	$	2,707	$	9,286	$	2,121
Prior service cost	—		(1,690)		—		(1,931)
Total amount recognized	$	10,689	$	1,017	$	9,286	$	190

Amounts Recognized in Other Comprehensive (Gain) Loss

	2020				2019				2018
	Pension		Healthcare		Pension		Healthcare		Pension		Healthcare
	benefits		& Life Ins.		benefits		& Life Ins.		benefits		& Life Ins.
Amounts recognized in other comprehensive (income) loss:
Net actuarial loss (gain)	$	1,728	$	675	$	1,760	$	165	$	(1,300)	$	(172)
Amortization of prior year service cost	—		241		—		241		—		241
Amortization of gain	(326)		(89)		(202)		(39)		(312)		(118)
Total amount recognized	$	1,402	$	827	$	1,558	$	367	$	(1,612)	$	(49)
Components of net periodic benefit cost:
Service cost	$	71	$	176	$	60	$	166	$	67	$	170
Interest cost	733		242		928		321		898		317
Amortization of gain	326		89		202		39		312		118
Expected return on plan assets	(1,221)		—		(1,244)		—		(1,284)		—
Amortization of prior service credit	—		(241)		—		(241)		—		(241)
Net periodic (expense) benefit cost	$	(91)	$	266	$	(54)	$	285	$	(7)	$	364

Schedule of Assumptions Used

Weighted-average assumptions used to determine the benefit obligations as of year-end 2020 and 2019 are:

	2020		2019
		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	1.84% - 2.14%	1.80% - 1.82%	2.78% - 2.96%	2.73% - 2.79%
Expected long-term rate of return on plan assets	7.00%	N/A	7.00%	N/A

Weighted-average assumptions used to determine net periodic benefit cost for years ended January 2, 2021, December 28, 2019 and December 29, 2018:

	2020		2019		2018
		Healthcare		Healthcare		Healthcare
	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.	Pension benefits	& Life Ins.
Discount rate	2.78% - 2.96%	2.73% - 2.79%	3.90% - 4.02%	3.87% - 3.91%	3.23% - 3.37%	3.20% - 3.25%
Expected long-term rate of return on plan assets	7.00%	N/A	7.00%	N/A	7.00%	N/A

Fair Value of Company's Pension Plans' Assets

The fair value of the Plans’ assets by asset class and fair value hierarchy level as of January 2, 2021 and December 28, 2019 are as follows:

	2020
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	3,294	$	3,294	$	—
Intermediate—corporate	3,218		—		3,218
Short-term—government	705		705		—
Short-term—corporate	448		—		448
International	1,086		—		1,086
Equity securities:
U.S. Large cap value	1,516		1,516		—
U.S. Large cap growth	1,483		1,483		—
U.S. Mid cap value	631		631		—
U.S. Mid cap growth	619		619		—
U.S. Small cap value	663		663		—
U.S. Small cap growth	650		650		—
International	1,227		407		820
Emerging Markets	409		409		—
Commodities Broad Basket	1,002		182		820
Cash	2,107		2,107		—
Total	$	19,058	$	12,666	$	6,392

	2019
			Quoted prices in active
	Total fair		markets for identical		Observable
	value		assets (Level 1)		inputs (Level 2)
Fixed income securities:
Intermediate—government	$	2,482	$	2,482	$	—
Intermediate—corporate	1,066		—		1,066
Short-term—government	1,387		1,387		—
Short-term—corporate	3,173		—		3,173
International	1,387		—		1,387
Equity securities:
U.S. Large cap value	1,225		1,225		—
U.S. Large cap growth	1,167		1,167		—
U.S. Mid cap value	581		581		—
U.S. Mid cap growth	578		578		—
U.S. Small cap value	583		583		—
U.S. Small cap growth	593		593		—
Managed Futures	340		—		340
International	1,174		386		788
Emerging Markets	394		394		—
Commodities Broad Basket	1,118		362		756
Cash	994		994		—
Total	$	18,242	$	10,732	$	7,510

Estimated Benefit Payments

The estimated benefit payments for each of the next five years and the five-year period thereafter are as follows:

	Pension		Healthcare and Life
	benefits		Insurance Benefits
2021	$	1,692	$	636
2022	1,693		630
2023	1,696		617
2024	1,655		619
2025	1,613		627
2026 - 2030	7,597		3,139

Schedule of Multiemployer Plans

										Expiration Date of
		Pension Protection Act		FIP/RP Status	Contributions of Company					Collective-
Pension	EIN/ Pension	Zone Status		Pending/	($ in thousands)				Surcharge	Bargaining
Trust Fund	Plan Number	2020	2019	Implemented	2020		2019		Imposed	Agreement
Construction Industry Laborers Pension Fund	43-6060737/001	Green - as of December 31, 2019	Green - as of December 31, 2018	None	$	100	$	112	No	3/31/2021
Operating Engineers Local 101 Pension Plan	43-6059213/001	Green - as of December 31, 2019	Green - as of December 31, 2018	None	20		23		No	3/31/2021
Total Contributions					$	120	$	135

XML

Accrued Mining and Landfill Reclamation (Tables)

12 Months Ended

Jan. 02, 2021

Asset Retirement Obligations [Line Items]

Activity for Asset Retirement Obligations

The following table presents the activity for the asset retirement obligations for the years ended January 2, 2021 and December 28, 2019: 

	2020		2019
Beginning balance	$	36,676	$	30,999
Acquired obligations	861		805
Change in cost estimate	6,523		4,468
Settlement of reclamation obligations	(3,095)		(1,812)
Accretion expense	2,638		2,216
Ending balance	$	43,603	$	36,676

Summit Materials, LLC

Asset Retirement Obligations [Line Items]

Activity for Asset Retirement Obligations

The following table presents the activity for the asset retirement obligations for the years ended January 2, 2021 and December 28, 2019:

	2020		2019
Beginning balance	$	36,676	$	30,999
Acquired obligations	861		805
Change in cost estimate	6,523		4,468
Settlement of reclamation obligations	(3,095)		(1,812)
Accretion expense	2,638		2,216
Ending balance	$	43,603	$	36,676

XML

Leases (Tables)

12 Months Ended

Jan. 02, 2021

Lessee, Lease, Description [Line Items]

Schedule of Lease Cost

The components of lease expense were as follows:

	2020			2019
Operating lease cost	$	10,134		$	10,451
Variable lease cost	316			423
Short-term lease cost	44,066			38,417
Financing lease cost:
Amortization of right-of-use assets	12,598			11,062
Interest on lease liabilities	3,068			3,171
Total lease cost	$	70,182		$	63,524
	2020			2019
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets	$	28,543		$	32,777
Current operating lease liabilities	$	8,188		$	8,427
Noncurrent operating lease liabilities	21,500			25,381
Total operating lease liabilities	$	29,688		$	33,808
Finance leases:
Property and equipment, gross	$	92,679		$	82,660
Less accumulated depreciation	(32,828)			(24,907)
Property and equipment, net	$	59,851		$	57,753
Current finance lease liabilities	$	24,601		$	16,007
Long-term finance lease liabilities	31,727			40,410
Total finance lease liabilities	$	56,328		$	56,417
	2020			2019
Weighted average remaining lease term (years):
Operating leases	8.7			8.6
Finance lease	2.4			2.6
Weighted average discount rate:
Operating leases	5.3		%	5.5		%
Finance lease	5.2		%	5.5		%
Maturities of lease liabilities were as follows:
	Operating Leases			Finance Leases
2021	$	9,491		$	26,742
2022	6,088			18,603
2023	4,663			7,053
2024	2,863			3,207
2025	1,781			2,573
Thereafter	12,961			2,831
Total lease payments	37,847			61,009
Less imputed interest	(8,159)			(4,681)
Present value of lease payments	$	29,688		$	56,328

Schedule of Lease Assets and Liabilities

The components of lease expense were as follows:

	2020			2019
Operating lease cost	$	10,134		$	10,451
Variable lease cost	316			423
Short-term lease cost	44,066			38,417
Financing lease cost:
Amortization of right-of-use assets	12,598			11,062
Interest on lease liabilities	3,068			3,171
Total lease cost	$	70,182		$	63,524
	2020			2019
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets	$	28,543		$	32,777
Current operating lease liabilities	$	8,188		$	8,427
Noncurrent operating lease liabilities	21,500			25,381
Total operating lease liabilities	$	29,688		$	33,808
Finance leases:
Property and equipment, gross	$	92,679		$	82,660
Less accumulated depreciation	(32,828)			(24,907)
Property and equipment, net	$	59,851		$	57,753
Current finance lease liabilities	$	24,601		$	16,007
Long-term finance lease liabilities	31,727			40,410
Total finance lease liabilities	$	56,328		$	56,417
	2020			2019
Weighted average remaining lease term (years):
Operating leases	8.7			8.6
Finance lease	2.4			2.6
Weighted average discount rate:
Operating leases	5.3		%	5.5		%
Finance lease	5.2		%	5.5		%
Maturities of lease liabilities were as follows:
	Operating Leases			Finance Leases
2021	$	9,491		$	26,742
2022	6,088			18,603
2023	4,663			7,053
2024	2,863			3,207
2025	1,781			2,573
Thereafter	12,961			2,831
Total lease payments	37,847			61,009
Less imputed interest	(8,159)			(4,681)
Present value of lease payments	$	29,688		$	56,328

Schedule of Finance Lease Liability Maturities

The components of lease expense were as follows:

	2020			2019
Operating lease cost	$	10,134		$	10,451
Variable lease cost	316			423
Short-term lease cost	44,066			38,417
Financing lease cost:
Amortization of right-of-use assets	12,598			11,062
Interest on lease liabilities	3,068			3,171
Total lease cost	$	70,182		$	63,524
	2020			2019
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets	$	28,543		$	32,777
Current operating lease liabilities	$	8,188		$	8,427
Noncurrent operating lease liabilities	21,500			25,381
Total operating lease liabilities	$	29,688		$	33,808
Finance leases:
Property and equipment, gross	$	92,679		$	82,660
Less accumulated depreciation	(32,828)			(24,907)
Property and equipment, net	$	59,851		$	57,753
Current finance lease liabilities	$	24,601		$	16,007
Long-term finance lease liabilities	31,727			40,410
Total finance lease liabilities	$	56,328		$	56,417
	2020			2019
Weighted average remaining lease term (years):
Operating leases	8.7			8.6
Finance lease	2.4			2.6
Weighted average discount rate:
Operating leases	5.3		%	5.5		%
Finance lease	5.2		%	5.5		%
Maturities of lease liabilities were as follows:
	Operating Leases			Finance Leases
2021	$	9,491		$	26,742
2022	6,088			18,603
2023	4,663			7,053
2024	2,863			3,207
2025	1,781			2,573
Thereafter	12,961			2,831
Total lease payments	37,847			61,009
Less imputed interest	(8,159)			(4,681)
Present value of lease payments	$	29,688		$	56,328

Schedule of Operating Lease Liability Maturities

The components of lease expense were as follows:

	2020			2019
Operating lease cost	$	10,134		$	10,451
Variable lease cost	316			423
Short-term lease cost	44,066			38,417
Financing lease cost:
Amortization of right-of-use assets	12,598			11,062
Interest on lease liabilities	3,068			3,171
Total lease cost	$	70,182		$	63,524
	2020			2019
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets	$	28,543		$	32,777
Current operating lease liabilities	$	8,188		$	8,427
Noncurrent operating lease liabilities	21,500			25,381
Total operating lease liabilities	$	29,688		$	33,808
Finance leases:
Property and equipment, gross	$	92,679		$	82,660
Less accumulated depreciation	(32,828)			(24,907)
Property and equipment, net	$	59,851		$	57,753
Current finance lease liabilities	$	24,601		$	16,007
Long-term finance lease liabilities	31,727			40,410
Total finance lease liabilities	$	56,328		$	56,417
	2020			2019
Weighted average remaining lease term (years):
Operating leases	8.7			8.6
Finance lease	2.4			2.6
Weighted average discount rate:
Operating leases	5.3		%	5.5		%
Finance lease	5.2		%	5.5		%
Maturities of lease liabilities were as follows:
	Operating Leases			Finance Leases
2021	$	9,491		$	26,742
2022	6,088			18,603
2023	4,663			7,053
2024	2,863			3,207
2025	1,781			2,573
Thereafter	12,961			2,831
Total lease payments	37,847			61,009
Less imputed interest	(8,159)			(4,681)
Present value of lease payments	$	29,688		$	56,328

Schedule of Contractual Commitments for Royalty Agreements

Minimum contractual commitments for the subsequent five years under royalty agreements are as follows:

	Royalty
	Agreements
2021	$	9,916
2022	9,880
2023	9,594
2024	9,295
2025	9,052

Summit Materials, LLC

Lessee, Lease, Description [Line Items]

Schedule of Lease Cost

The components of lease expense were as follows:

	2020			2019
Operating lease cost	$	10,134		$	10,451
Variable lease cost	316			423
Short-term lease cost	44,066			38,417
Financing lease cost:
Amortization of right-of-use assets	12,598			11,062
Interest on lease liabilities	3,068			3,171
Total lease cost	$	70,182		$	63,524
	2020			2019
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets	$	28,543		$	32,777
Current operating lease liabilities	$	8,188		$	8,427
Noncurrent operating lease liabilities	21,500			25,381
Total operating lease liabilities	$	29,688		$	33,808
Finance leases:
Property and equipment, gross	$	92,679		$	82,660
Less accumulated depreciation	(32,828)			(24,907)
Property and equipment, net	$	59,851		$	57,753
Current finance lease liabilities	$	24,601		$	16,007
Long-term finance lease liabilities	31,727			40,410
Total finance lease liabilities	$	56,328		$	56,417
	2020			2019
Weighted average remaining lease term (years):
Operating leases	8.7			8.6
Finance lease	2.4			2.6
Weighted average discount rate:
Operating leases	5.3		%	5.5		%
Finance lease	5.2		%	5.5		%
Maturities of lease liabilities were as follows:
	Operating Leases			Finance Leases
2021	$	9,491		$	26,742
2022	6,088			18,603
2023	4,663			7,053
2024	2,863			3,207
2025	1,781			2,573
Thereafter	12,961			2,831
Total lease payments	37,847			61,009
Less imputed interest	(8,159)			(4,681)
Present value of lease payments	$	29,688		$	56,328

Schedule of Lease Assets and Liabilities

The components of lease expense were as follows:

	2020			2019
Operating lease cost	$	10,134		$	10,451
Variable lease cost	316			423
Short-term lease cost	44,066			38,417
Financing lease cost:
Amortization of right-of-use assets	12,598			11,062
Interest on lease liabilities	3,068			3,171
Total lease cost	$	70,182		$	63,524
	2020			2019
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets	$	28,543		$	32,777
Current operating lease liabilities	$	8,188		$	8,427
Noncurrent operating lease liabilities	21,500			25,381
Total operating lease liabilities	$	29,688		$	33,808
Finance leases:
Property and equipment, gross	$	92,679		$	82,660
Less accumulated depreciation	(32,828)			(24,907)
Property and equipment, net	$	59,851		$	57,753
Current finance lease liabilities	$	24,601		$	16,007
Long-term finance lease liabilities	31,727			40,410
Total finance lease liabilities	$	56,328		$	56,417
	2020			2019
Weighted average remaining lease term (years):
Operating leases	8.7			8.6
Finance lease	2.4			2.6
Weighted average discount rate:
Operating leases	5.3		%	5.5		%
Finance lease	5.2		%	5.5		%
Maturities of lease liabilities were as follows:
	Operating Leases			Finance Leases
2021	$	9,491		$	26,742
2022	6,088			18,603
2023	4,663			7,053
2024	2,863			3,207
2025	1,781			2,573
Thereafter	12,961			2,831
Total lease payments	37,847			61,009
Less imputed interest	(8,159)			(4,681)
Present value of lease payments	$	29,688		$	56,328

Schedule of Finance Lease Liability Maturities

The components of lease expense were as follows:

	2020			2019
Operating lease cost	$	10,134		$	10,451
Variable lease cost	316			423
Short-term lease cost	44,066			38,417
Financing lease cost:
Amortization of right-of-use assets	12,598			11,062
Interest on lease liabilities	3,068			3,171
Total lease cost	$	70,182		$	63,524
	2020			2019
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets	$	28,543		$	32,777
Current operating lease liabilities	$	8,188		$	8,427
Noncurrent operating lease liabilities	21,500			25,381
Total operating lease liabilities	$	29,688		$	33,808
Finance leases:
Property and equipment, gross	$	92,679		$	82,660
Less accumulated depreciation	(32,828)			(24,907)
Property and equipment, net	$	59,851		$	57,753
Current finance lease liabilities	$	24,601		$	16,007
Long-term finance lease liabilities	31,727			40,410
Total finance lease liabilities	$	56,328		$	56,417
	2020			2019
Weighted average remaining lease term (years):
Operating leases	8.7			8.6
Finance lease	2.4			2.6
Weighted average discount rate:
Operating leases	5.3		%	5.5		%
Finance lease	5.2		%	5.5		%
Maturities of lease liabilities were as follows:
	Operating Leases			Finance Leases
2021	$	9,491		$	26,742
2022	6,088			18,603
2023	4,663			7,053
2024	2,863			3,207
2025	1,781			2,573
Thereafter	12,961			2,831
Total lease payments	37,847			61,009
Less imputed interest	(8,159)			(4,681)
Present value of lease payments	$	29,688		$	56,328

Schedule of Operating Lease Liability Maturities

The components of lease expense were as follows:

	2020			2019
Operating lease cost	$	10,134		$	10,451
Variable lease cost	316			423
Short-term lease cost	44,066			38,417
Financing lease cost:
Amortization of right-of-use assets	12,598			11,062
Interest on lease liabilities	3,068			3,171
Total lease cost	$	70,182		$	63,524
	2020			2019
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets	$	28,543		$	32,777
Current operating lease liabilities	$	8,188		$	8,427
Noncurrent operating lease liabilities	21,500			25,381
Total operating lease liabilities	$	29,688		$	33,808
Finance leases:
Property and equipment, gross	$	92,679		$	82,660
Less accumulated depreciation	(32,828)			(24,907)
Property and equipment, net	$	59,851		$	57,753
Current finance lease liabilities	$	24,601		$	16,007
Long-term finance lease liabilities	31,727			40,410
Total finance lease liabilities	$	56,328		$	56,417
	2020			2019
Weighted average remaining lease term (years):
Operating leases	8.7			8.6
Finance lease	2.4			2.6
Weighted average discount rate:
Operating leases	5.3		%	5.5		%
Finance lease	5.2		%	5.5		%
Maturities of lease liabilities were as follows:
	Operating Leases			Finance Leases
2021	$	9,491		$	26,742
2022	6,088			18,603
2023	4,663			7,053
2024	2,863			3,207
2025	1,781			2,573
Thereafter	12,961			2,831
Total lease payments	37,847			61,009
Less imputed interest	(8,159)			(4,681)
Present value of lease payments	$	29,688		$	56,328

Schedule of Contractual Commitments for Royalty Agreements

Minimum contractual commitments for the subsequent five years under royalty agreements are as follows:

	Royalty
	Agreements
2021	$	9,916
2022	9,880
2023	9,594
2024	9,295
2025	9,052

XML

Fair Value (Tables)

12 Months Ended

Jan. 02, 2021

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Contingent Consideration and Derivatives Measured at Fair Value

The fair value of contingent consideration as of January 2, 2021 and December 28, 2019 was: 

	2020		2019
Current portion of acquisition-related liabilities and Accrued expenses:
Contingent consideration	$	654	$	1,967
Acquisition-related liabilities and Other noncurrent liabilities:
Contingent consideration	$	1,209	$	1,302

Schedule of Carrying Value and Fair Value of Financial Instruments

The carrying value and fair value of these financial instruments as of January 2, 2021 and December 28, 2019 were: 

	January 2, 2021				December 28, 2019
	Fair Value		Carrying Value		Fair Value		Carrying Value
Level 1
Long-term debt(1)	$	1,971,087	$	1,915,425	$	1,918,720	$	1,872,273
Level 3
Current portion of deferred consideration and noncompete obligations(2)	9,611		9,611		30,733		30,733
Long term portion of deferred consideration and noncompete obligations(3)	11,037		11,037		18,499		18,499

_____________________

(1)$6.4 million and $7.9 million were included in current portion of debt as of January 2, 2021 and December 28, 2019, respectively.

(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.

Summit Materials, LLC

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Schedule of Contingent Consideration and Derivatives Measured at Fair Value

The fair value of contingent consideration as of January 2, 2021 and December 28, 2019 was:

	2020		2019
Current portion of acquisition-related liabilities and Accrued expenses:
Contingent consideration	$	654	$	1,967
Acquisition-related liabilities and Other noncurrent liabilities:
Contingent consideration	$	1,209	$	1,302

Schedule of Carrying Value and Fair Value of Financial Instruments

The carrying value and fair value of these financial instruments as of January 2, 2021 and December 28, 2019 were:

	January 2, 2021				December 28, 2019
	Fair Value		Carrying Value		Fair Value		Carrying Value
Level 1
Long-term debt(1)	$	1,971,087	$	1,915,425	$	1,918,720	$	1,872,273
Level 3
Current portion of deferred consideration and noncompete obligations(2)	7,173		7,173		28,233		28,233
Long term portion of deferred consideration and noncompete obligations(3)	11,037		11,037		16,364		16,364

______________________

(1)    $6.4 million and $7.9 million were included in current portion of debt as of January 2, 2021 and December 28, 2019, respectively.

(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.

XML

Segment Information (Tables)

12 Months Ended

Jan. 02, 2021

Segment Reporting Information [Line Items]

Summary of Financial Data for Company's Reportable Business Segments

The following tables display selected financial data for the Company’s reportable business segments as of and for the years ended January 2, 2021, December 28, 2019 and December 29, 2018: 

	2020		2019		2018
Revenue*:
West	$	1,262,196	$	1,122,338	$	1,117,066
East	799,633		809,098		703,147
Cement	270,622		290,704		280,789
Total revenue	$	2,332,451	$	2,222,140	$	2,101,002

______________________

*       Intercompany sales are immaterial and the presentation above only reflects sales to external customers.

	2020		2019		2018
Income from operations before taxes	$	129,055	$	78,224	$	96,077
Interest expense	103,595		116,509		116,548
Depreciation, depletion and amortization	218,682		214,886		203,305
Accretion	2,638		2,216		1,605
Loss on debt financings	4,064		14,565		149
Tax receivable agreement (benefit) expense	(7,559)		16,237		(22,684)
Gain on sale of business	—		—		(12,108)
Transaction costs	2,747		2,222		4,238
Non-cash compensation	28,857		20,403		25,378
Other	2,957		(3,800)		(6,247)
Total Adjusted EBITDA	$	485,036	$	461,462	$	406,261
Total Adjusted EBITDA by Segment:
West	$	271,052	$	204,964	$	188,999
East	162,275		187,625		138,032
Cement	92,956		103,438		111,394
Corporate and other	(41,247)		(34,565)		(32,164)
Total Adjusted EBITDA	$	485,036	$	461,462	$	406,261

	2020		2019		2018
Purchases of property, plant and equipment
West	$	67,500	$	71,397	$	120,657
East	92,528		77,894		64,384
Cement	15,071		25,691		28,036
Total reportable segments	175,099		174,982		213,077
Corporate and other	2,150		2,513		7,608
Total purchases of property, plant and equipment	$	177,249	$	177,495	$	220,685

	2020		2019		2018
Depreciation, depletion, amortization and accretion:
West	$	93,866	$	93,256	$	91,794
East	86,205		81,403		75,433
Cement	37,267		38,447		35,061
Total reportable segments	217,338		213,106		202,288
Corporate and other	3,982		3,996		2,622
Total depreciation, depletion, amortization and accretion	$	221,320	$	217,102	$	204,910

	2020		2019		2018
Total assets:
West	$	1,503,382	$	1,379,684	$	1,370,501
East	1,303,742		1,288,835		1,253,640
Cement	850,835		868,528		877,586
Total reportable segments	3,657,959		3,537,047		3,501,727
Corporate and other	650,052		530,509		355,914
Total	$	4,308,011	$	4,067,556	$	3,857,641

Summit Materials, LLC

Segment Reporting Information [Line Items]

Summary of Financial Data for Company's Reportable Business Segments

The following tables display selected financial data for the Company’s reportable business segments as of and for the years ended January 2, 2021, December 28, 2019 and December 29, 2018:

	2020		2019		2018
Revenue*:
West	$	1,262,196	$	1,122,338	$	1,117,066
East	799,633		809,098		703,147
Cement	270,622		290,704		280,789
Total revenue	$	2,332,451	$	2,222,140	$	2,101,002

______________________

*   Intercompany sales are immaterial and the presentation above only reflects sales to external customers.

	2020		2019		2018
Income from operations before taxes	$	121,800	$	94,982	$	74,110
Interest expense	103,291		115,988		115,831
Depreciation, depletion and amortization	218,682		214,886		203,305
Accretion	2,638		2,216		1,605
Loss on debt financings	4,064		14,565		149
Gain on sale of business	—		—		(12,108)
Transaction costs	2,747		2,222		4,238
Non-cash compensation	28,857		20,403		25,378
Other	2,957		(3,800)		(6,247)
Total Adjusted EBITDA	$	485,036	$	461,462	$	406,261
Total Adjusted EBITDA by Segment:
West	$	271,052	$	204,964	$	188,999
East	162,275		187,625		138,032
Cement	92,956		103,438		111,394
Corporate and other	(41,247)		(34,565)		(32,164)
Total Adjusted EBITDA	$	485,036	$	461,462	$	406,261

	2020		2019		2018
Purchases of property, plant and equipment
West	$	67,500	$	71,397	$	120,657
East	92,528		77,894		64,384
Cement	15,071		25,691		28,036
Total reportable segments	175,099		174,982		213,077
Corporate and other	2,150		2,513		7,608
Total purchases of property, plant and equipment	$	177,249	$	177,495	$	220,685

	2020		2019		2018
Depreciation, depletion, amortization and accretion:
West	$	93,866	$	93,256	$	91,794
East	86,205		81,403		75,433
Cement	37,267		38,447		35,061
Total reportable segments	217,338		213,106		202,288
Corporate and other	3,982		3,996		2,622
Total depreciation, depletion, amortization and accretion	$	221,320	$	217,102	$	204,910

	2020		2019		2018
Total assets:
West	$	1,503,382	$	1,379,684	$	1,370,501
East	1,303,742		1,288,835		1,253,640
Cement	850,835		868,528		877,586
Total reportable segments	3,657,959		3,537,047		3,501,727
Corporate and other	419,175		319,176		131,517
Total	$	4,077,134	$	3,856,223	$	3,633,244

XML

Senior Notes' Guarantor and Non-Guarantor Financial Information (Tables) - Summit Materials, LLC

12 Months Ended

Jan. 02, 2021

Condensed Financial Statements, Captions [Line Items]

Condensed Consolidating Balance Sheets

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	401,074	$	10,287	$	10,461	$	(3,641)	$	418,181
Accounts receivable, net	4		230,199		24,384		109		254,696
Intercompany receivables	404,459		1,303,293		—		(1,707,752)		—
Cost and estimated earnings in excess of billings	—		7,504		1,162		—		8,666
Inventories	—		193,417		6,891		—		200,308
Other current assets	2,840		6,797		1,791		—		11,428
Total current assets	808,377		1,751,497		44,689		(1,711,284)		893,279
Property, plant and equipment, net	9,410		1,746,045		94,714		—		1,850,169
Goodwill	—		1,142,083		60,208		—		1,202,291
Intangible assets, net	—		47,852		—		—		47,852
Operating lease right-of-use assets	2,615		21,880		4,048		—		28,543
Other assets	4,022,729		207,699		493		(4,175,921)		55,000
Total assets	$	4,843,131	$	4,917,056	$	204,152	$	(5,887,205)	$	4,077,134
Liabilities and Member’s Interest
Current liabilities:
Current portion of debt	$	6,354	$	—	$	—	$	—	$	6,354
Current portion of acquisition-related liabilities	—		7,827		—		—		7,827
Accounts payable	3,889		108,805		8,619		109		121,422
Accrued expenses	54,108		106,320		4,014		(3,641)		160,801
Current operating lease liabilities	913		6,114		1,161		—		8,188
Intercompany payables	1,215,043		485,401		7,308		(1,707,752)		—
Billings in excess of costs and estimated earnings	—		15,508		991		—		16,499
Total current liabilities	1,280,307		729,975		22,093		(1,711,284)		321,091
Long-term debt	1,892,347		—		—		—		1,892,347
Acquisition-related liabilities	—		12,246		—		—		12,246
Noncurrent operating lease liabilities	2,567		16,062		2,871		—		21,500
Other noncurrent liabilities	5,142		208,540		117,921		(164,421)		167,182
Total liabilities	3,180,363		966,823		142,885		(1,875,705)		2,414,366
Total member's interest	1,662,768		3,950,233		61,267		(4,011,500)		1,662,768
Total liabilities and member’s interest	$	4,843,131	$	4,917,056	$	204,152	$	(5,887,205)	$	4,077,134

Condensed Consolidating Balance Sheets

December 28, 2019

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Assets
Current assets:
Cash and cash equivalents	$	302,474	$	5,488	$	9,834	$	(6,477)	$	311,319
Accounts receivable, net	—		234,053		19,236		(33)		253,256
Intercompany receivables	443,323		942,385		—		(1,385,708)		—
Cost and estimated earnings in excess of billings	—		12,291		797		—		13,088
Inventories	—		199,794		4,993		—		204,787
Other current assets	1,763		10,308		1,760		—		13,831
Total current assets	747,560		1,404,319		36,620		(1,392,218)		796,281
Property, plant and equipment, net	11,602		1,674,443		61,404		—		1,747,449
Goodwill	—		1,142,063		58,636		—		1,200,699
Intangible assets, net	—		23,498		—		—		23,498
Operating lease right-of-use assets	3,316		24,551		4,910		—		32,777
Other assets	3,596,161		168,314		734		(3,709,690)		55,519
Total assets	$	4,358,639	$	4,437,188	$	162,304	$	(5,101,908)	$	3,856,223
Liabilities and Member’s Interest
Current liabilities:
Current portion of debt	$	7,942	$	—	$	—	$	—	$	7,942
Current portion of acquisition-related liabilities	—		30,200		—		—		30,200
Accounts payable	4,588		103,812		8,603		(33)		116,970
Accrued expenses	51,043		72,970		2,701		(6,477)		120,237
Current operating lease liabilities	764		6,571		1,092		—		8,427
Intercompany payables	922,356		447,827		15,525		(1,385,708)		—
Billings in excess of costs and estimated earnings	—		12,183		1,681		—		13,864
Total current liabilities	986,693		673,563		29,602		(1,392,218)		297,640
Long-term debt	1,851,057		—		—		—		1,851,057
Acquisition-related liabilities	—		17,666		—		—		17,666
Noncurrent operating lease liabilities	3,480		18,047		3,854		—		25,381
Other noncurrent liabilities	4,259		203,919		80,169		(137,018)		151,329
Total liabilities	2,845,489		913,195		113,625		(1,529,236)		2,343,073
Total member's interest	1,513,150		3,523,993		48,679		(3,572,672)		1,513,150
Total liabilities and member’s interest	$	4,358,639	$	4,437,188	$	162,304	$	(5,101,908)	$	3,856,223

Condensed Consolidating Statements of Operations and Comprehensive Loss

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—	$	2,259,865	$	89,752	$	(17,166)	$	2,332,451
Cost of revenue (excluding items shown separately below)	—		1,542,586		58,576		(17,166)		1,583,996
General and administrative expenses	72,504		217,897		11,561		—		301,962
Depreciation, depletion, amortization and accretion	3,983		210,038		7,299		—		221,320
Operating (loss) income	(76,487)		289,344		12,316		—		225,173
Other (income) loss, net	(328,914)		(2,473)		(198)		331,667		82
Interest expense (income)	130,176		(31,402)		4,517		—		103,291
Income from operation before taxes	122,251		323,219		7,997		(331,667)		121,800
Income tax expense (benefit)	1,514		(4,737)		4,286		—		1,063
Net income attributable to Summit LLC	$	120,737	$	327,956	$	3,711	$	(331,667)	$	120,737
Comprehensive income (loss) attributable to member of Summit Materials, LLC	$	123,125	$	330,185	$	(906)	$	(329,279)	$	123,125

Condensed Consolidating Statements of Operations and Comprehensive Income

Year ended December 28, 2019

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—	$	2,139,457	$	94,879	$	(12,196)	$	2,222,140
Cost of revenue (excluding items shown separately below)	—		1,473,124		65,404		(12,196)		1,526,332
General and administrative expenses	58,099		195,683		11,366		—		265,148
Depreciation, depletion, amortization and accretion	3,997		207,277		5,828		—		217,102
Operating (loss) income	(62,096)		263,373		12,281		—		213,558
Other (income) loss, net	(279,517)		(8,767)		(790)		291,662		2,588
Interest expense (income)	127,734		(16,561)		4,815		—		115,988
Income from operation before taxes	89,687		288,701		8,256		(291,662)		94,982
Income tax expense	1,090		3,377		1,918		—		6,385
Net income attributable to Summit LLC	$	88,597	$	285,324	$	6,338	$	(291,662)	$	88,597
Comprehensive income attributable to member of Summit Materials, LLC	$	91,242	$	287,395	$	1,622	$	(289,017)	$	91,242

Condensed Consolidating Statements of Operations and Comprehensive Income

Year ended December 29, 2018

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Revenue	$	—	$	2,018,428	$	88,658	$	(6,084)	$	2,101,002
Cost of revenue (excluding items shown separately below)	—		1,416,222		65,641		(6,084)		1,475,779
General and administrative expenses	62,376		184,917		10,554		—		257,847
Depreciation, depletion, amortization and accretion	2,622		197,406		4,882		—		204,910
Operating (loss) income	(64,998)		219,883		7,581		—		162,466
Other (income) loss, net	(249,204)		(14,643)		823		247,657		(15,367)
Interest expense	118,857		(7,818)		4,792		—		115,831
Gain on sale of business	—		(12,108)		—		—		(12,108)
Income from continuing operations before taxes	65,349		254,452		1,966		(247,657)		74,110
Income tax (benefit) expense	1,512		8,226		535		—		10,273
Net income attributable to member of Summit Materials, LLC	$	63,837	$	246,226	$	1,431	$	(247,657)	$	63,837
Comprehensive income attributable to member of Summit Materials, LLC	$	57,356	$	243,359	$	10,779	$	(254,138)	$	57,356

Condensed Consolidating Statements of Cash Flows

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(135,895)	$	502,595	$	42,169	$	—	$	408,869
Cash flow from investing activities:
Acquisitions, net of cash acquired	—		(92,085)		(31,392)		—		(123,477)
Purchase of property, plant and equipment	(2,150)		(173,228)		(1,871)		—		(177,249)
Proceeds from the sale of property, plant, and equipment	—		13,935		83		—		14,018
Other	—		1,121		—		—		1,121
Net cash used for investing activities	(2,150)		(250,257)		(33,180)		—		(285,587)
Cash flow from financing activities:
Proceeds from investment by member	(91,142)		87,925		4,260		—		1,043
Net proceeds from debt issuance	700,000		—		—		—		700,000
Loans received from and payments made on loans from other Summit Companies	298,656		(288,711)		(12,781)		2,836		—
Payments on long-term debt	(657,942)		(15,911)		(192)		—		(674,045)
Payments on acquisition-related liabilities	—		(30,757)		—		—		(30,757)
Debt issuance costs	(9,605)		—		—		—		(9,605)
Distributions from partnership	(2,500)		—		—		—		(2,500)
Other	(822)		(85)		—		—		(907)
Net cash provided by (used in) financing activities	236,645		(247,539)		(8,713)		2,836		(16,771)
Impact of cash on foreign currency	—		—		351		—		351
Net increase in cash	98,600		4,799		627		2,836		106,862
Cash — Beginning of period	302,474		5,488		9,834		(6,477)		311,319
Cash — End of period	$	401,074	$	10,287	$	10,461	$	(3,641)	$	418,181

Condensed Consolidating Statements of Cash Flows

For the year ended December 28, 2019

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(112,019)	$	431,323	$	17,880	$	—	$	337,184
Cash flow from investing activities:
Acquisitions, net of cash acquired	—		(5,392)		—		—		(5,392)
Purchase of property, plant and equipment	(2,513)		(163,652)		(11,330)		—		(177,495)
Proceeds from the sale of property, plant, and equipment	—		21,083		90		—		21,173
Proceeds from the sale of a business	—		21,564		—		—		21,564
Other	—		(1,095)		—		—		(1,095)
Net cash used for investing activities	(2,513)		(149,056)		(11,240)		—		(162,809)
Cash flow from financing activities:
Proceeds from investment by member	(21,614)		40,690		—		—		19,076
Net proceeds from debt issuance	300,000		—		—		—		300,000
Loans received from and payments made on loans from other Summit Companies	287,029		(280,836)		(4,586)		(1,607)		—
Payments on long-term debt	(256,354)		(13,650)		(225)		—		(270,229)
Payments on acquisition-related liabilities	—		(31,383)		—		—		(31,383)
Financing costs	(6,312)		—		—		—		(6,312)
Distributions from partnership	(2,500)		—		—		—		(2,500)
Other	(462)		(40)		—		—		(502)
Net cash provided by (used in) financing activities	299,787		(285,219)		(4,811)		(1,607)		8,150
Impact of cash on foreign currency	—		—		286		—		286
Net increase (decrease) in cash	185,255		(2,952)		2,115		(1,607)		182,811
Cash — Beginning of period	117,219		8,440		7,719		(4,870)		128,508
Cash — End of period	$	302,474	$	5,488	$	9,834	$	(6,477)	$	311,319

Condensed Consolidating Statements of Cash Flows

For the year ended December 29, 2018

			100%
			Owned		Non-
	Issuers		Guarantors		Guarantors		Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(142,315)	$	340,401	$	11,282	$	—	$	209,368
Cash flow from investing activities:
Acquisitions, net of cash acquired	—		(246,017)		—		—		(246,017)
Purchase of property, plant and equipment	(7,607)		(188,435)		(24,643)		—		(220,685)
Proceeds from the sale of property, plant, and equipment	—		21,263		372		—		21,635
Proceeds from the sale of a business	—		21,564		—		—		21,564
Other	—		3,804		—		—		3,804
Net cash used for investing activities	(7,607)		(387,821)		(24,271)		—		(419,699)
Cash flow from financing activities:
Proceeds from investment by member	(146,533)		162,148		—		—		15,615
Net proceeds from debt issuance	64,500		—		—		—		64,500
Loans received from and payments made on loans from other Summit Companies	51,696		(65,845)		6,647		7,502		—
Payments on long-term debt	(69,265)		(15,662)		(115)		—		(85,042)
Payments on acquisition-related liabilities	—		(34,004)		—		—		(34,004)
Financing costs	(550)		—		—		—		(550)
Distributions from partnership	(2,569)		—		—		—		(2,569)
Other	(879)		(1,031)		(33)		—		(1,943)
Net cash provided by financing activities	(103,600)		45,606		6,499		7,502		(43,993)
Impact of cash on foreign currency	—		—		(724)		—		(724)
Net (decrease) increase in cash	(253,522)		(1,814)		(7,214)		7,502		(255,048)
Cash — Beginning of period	370,741		10,254		14,933		(12,372)		383,556
Cash — End of period	$	117,219	$	8,440	$	7,719	$	(4,870)	$	128,508

XML

Summary of Organization and Significant Accounting Policies - General Information and Equity Offerings (Details)	12 Months Ended
	Jan. 02, 2021 state segment plant	Dec. 28, 2019
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Number of operating segments	3
Number of reportable segments	3
Number of states in which the entity operates | state	23
Summit Materials, LLC
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Number of operating segments	3
Number of reportable segments	3
Number of states in which the entity operates | state	23
Summit Materials, LLC | Ohio Valley Asphalt
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Noncontrolling interest elimination (as a percent)	20.00%
Summit Materials, LLC | Continental Cement
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Noncontrolling interest elimination (as a percent)	30.00%
Summit Holdings LP
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Voting power (as a percent)		100.00%
Cement Plant
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Number of plants | plant	2
Cement Plant | Summit Materials, LLC
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Number of plants | plant	2
Tax Receivable Agreement | Summit Holdings LP
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Percentage of benefits to be paid on tax receivable agreement	85.00%
Minimum | Product
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Collection terms	30 days
Minimum | Product | Summit Materials, LLC
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Collection terms	30 days
Maximum | Product
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Collection terms	60 days
Maximum | Product | Summit Materials, LLC
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Collection terms	60 days
Maximum | Service
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Collection terms	90 days
Maximum | Service | Summit Materials, LLC
Summary Of Significant Accounting Policies And Recent Accounting Pronouncements
Collection terms	90 days

XML

Summary of Organization and Significant Accounting Policies - Prior Year Reclassifications (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Reclassification [Line Items]
Transaction costs	$ 2,747	$ 2,222	$ 4,238
Gain on sale of property, plant and equipment	7,569	10,665	12,555
Summit Materials, LLC
Reclassification [Line Items]
Transaction costs	2,747	2,222	4,238
Gain on sale of property, plant and equipment	$ 7,569	10,665	12,555
Reclass From Separate Line Item To General And Administrative Expenses
Reclassification [Line Items]
Transaction costs		2,200	4,200
Reclass From Separate Line Item To General And Administrative Expenses | Summit Materials, LLC
Reclassification [Line Items]
Transaction costs		2,200	4,200
Reclass From General And Administrative Expenses To Separate Line Item
Reclassification [Line Items]
Gain on sale of property, plant and equipment		10,700	12,600
Reclass From General And Administrative Expenses To Separate Line Item | Summit Materials, LLC
Reclassification [Line Items]
Gain on sale of property, plant and equipment		$ 10,700	$ 12,600

XML

Summary of Organization and Significant Accounting Policies - New Accounting Standards (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019	Dec. 30, 2018
New Accounting Standards
Operating lease right-of-use assets	$ 28,543	$ 32,777
Operating lease liability	29,688	33,808
Accounting Standards Update 2016-02
New Accounting Standards
Operating lease right-of-use assets			$ 36,800
Operating lease liability			36,800
Summit Materials, LLC
New Accounting Standards
Operating lease right-of-use assets	28,543	32,777
Operating lease liability	$ 29,688	$ 33,808
Summit Materials, LLC | Accounting Standards Update 2016-02
New Accounting Standards
Operating lease right-of-use assets			36,800
Operating lease liability			$ 36,800

XML

Acquisitions - Acquisitions by Region (Details) - acquistiion	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
West
Business Acquisition [Line Items]
Number of business acquisitions	2	2	5
East
Business Acquisition [Line Items]
Number of business acquisitions	1	0	7
Summit Materials, LLC | West
Business Acquisition [Line Items]
Number of business acquisitions	2	2	5
Summit Materials, LLC | East
Business Acquisition [Line Items]
Number of business acquisitions	1	0	7

XML

Acquisitions - Summary of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Business Acquisition [Line Items]
Goodwill	$ 1,201,291	$ 1,199,699	$ 1,192,028
Summit Materials, LLC
Business Acquisition [Line Items]
Goodwill	1,202,291	1,200,699	$ 1,193,028
Series of Individually Immaterial Business Acquisitions
Business Acquisition [Line Items]
Financial assets	8,696	0
Inventories	2,856	52
Property, plant and equipment	130,042	3,542
Other assets	2,790	0
Financial liabilities	(4,469)	(36)
Other long-term liabilities	(16,069)	0
Net assets acquired	123,846	3,558
Goodwill	0	1,834
Purchase price	123,846	5,392
Other	(369)	0
Net cash paid for acquisitions	123,477	5,392
Series of Individually Immaterial Business Acquisitions | Summit Materials, LLC
Business Acquisition [Line Items]
Financial assets	8,696	0
Inventories	2,856	52
Property, plant and equipment	130,042	3,542
Other assets	2,790	0
Financial liabilities	(4,469)	(36)
Other long-term liabilities	(16,069)	0
Net assets acquired	123,846	3,558
Goodwill	0	1,834
Purchase price	123,846	5,392
Other	(369)	0
Net cash paid for acquisitions	$ 123,477	$ 5,392

XML

Acquisitions - Contractual Obligations (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Remaining payments on contractual obligations
Noncompete agreements, payment term (in general)	5 years
Minimum
Remaining payments on contractual obligations
Term of payment for deferred consideration		5 years
Maximum
Remaining payments on contractual obligations
Term of payment for deferred consideration		20 years
Noncompete and Deferred Consideration Agreements
Remaining payments on contractual obligations
2021	$ 9,705
2022	3,411
2023	2,657
2024	2,620
2025	2,567
Thereafter	4,454
Total scheduled payments	25,414
Present value adjustments	(4,766)
Total noncompete obligations and deferred consideration	$ 20,648
Summit Materials, LLC
Remaining payments on contractual obligations
Noncompete agreements, payment term (in general)	5 years
Summit Materials, LLC | Minimum
Remaining payments on contractual obligations
Term of payment for deferred consideration	5 years
Summit Materials, LLC | Maximum
Remaining payments on contractual obligations
Term of payment for deferred consideration	20 years
Summit Materials, LLC | Noncompete and Deferred Consideration Agreements
Remaining payments on contractual obligations
2021	$ 7,205
2022	3,411
2023	2,657
2024	2,620
2025	2,567
Thereafter	4,454
Total scheduled payments	22,914
Present value adjustments	(4,704)
Total noncompete obligations and deferred consideration	$ 18,210

XML

Goodwill - Narrative (Details)	3 Months Ended	12 Months Ended
	Jan. 02, 2021 reportingUnit	Jan. 02, 2021 USD ($) reportingUnit	Dec. 29, 2018 USD ($)
Goodwill
Number of reporting units with goodwill | reportingUnit		11
Number of reporting units more likely than not fair value exceeds carrying value | reportingUnit	7
Goodwill, impairment loss | $		$ 0
Accumulated impairment losses | $			$ 68,200,000
Summit Materials, LLC
Goodwill
Number of reporting units with goodwill | reportingUnit		11
Number of reporting units more likely than not fair value exceeds carrying value | reportingUnit	7
Goodwill, impairment loss | $		$ 0
Accumulated impairment losses | $			$ 68,200,000

XML

Goodwill - Summary of Goodwill by Reportable Segments (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Goodwill [Roll Forward]
Beginning balance	$ 1,199,699	$ 1,192,028
Acquisitions	19	5,278
Foreign currency translation adjustments	1,573	2,393
Ending balance	1,201,291	1,199,699
Summit Materials, LLC
Goodwill [Roll Forward]
Beginning balance	1,200,699	1,193,028
Acquisitions	19	5,278
Foreign currency translation adjustments	1,573	2,393
Ending balance	1,202,291	1,200,699
West
Goodwill [Roll Forward]
Beginning balance	584,617	580,567
Acquisitions	19	1,657
Foreign currency translation adjustments	1,573	2,393
Ending balance	586,209	584,617
West | Summit Materials, LLC
Goodwill [Roll Forward]
Beginning balance	585,617	581,567
Acquisitions	19	1,657
Foreign currency translation adjustments	1,573	2,393
Ending balance	587,209	585,617
East
Goodwill [Roll Forward]
Beginning balance	410,426	406,805
Acquisitions	0	3,621
Foreign currency translation adjustments	0	0
Ending balance	410,426	410,426
East | Summit Materials, LLC
Goodwill [Roll Forward]
Beginning balance	410,426	406,805
Acquisitions	0	3,621
Foreign currency translation adjustments	0	0
Ending balance	410,426	410,426
Cement
Goodwill [Roll Forward]
Beginning balance	204,656	204,656
Acquisitions	0	0
Foreign currency translation adjustments	0	0
Ending balance	204,656	204,656
Cement | Summit Materials, LLC
Goodwill [Roll Forward]
Beginning balance	204,656	204,656
Acquisitions	0	0
Foreign currency translation adjustments	0	0
Ending balance	$ 204,656	$ 204,656

XML

Revenue Recognition - By Product (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Revenue from External Customer [Line Items]
Revenue	$ 2,332,451	$ 2,222,140	$ 2,101,002
Summit Materials, LLC
Revenue from External Customer [Line Items]
Revenue	2,332,451	2,222,140	2,101,002
Aggregates
Revenue from External Customer [Line Items]
Revenue	498,007	469,670	373,824
Aggregates | Summit Materials, LLC
Revenue from External Customer [Line Items]
Revenue	498,007	469,670	373,824
Cement
Revenue from External Customer [Line Items]
Revenue	257,629	266,235	258,876
Cement | Summit Materials, LLC
Revenue from External Customer [Line Items]
Revenue	257,629	266,235	258,876
Ready-mix concrete
Revenue from External Customer [Line Items]
Revenue	668,060	607,622	584,114
Ready-mix concrete | Summit Materials, LLC
Revenue from External Customer [Line Items]
Revenue	668,060	607,622	584,114
Asphalt
Revenue from External Customer [Line Items]
Revenue	349,350	330,750	301,247
Asphalt | Summit Materials, LLC
Revenue from External Customer [Line Items]
Revenue	349,350	330,750	301,247
Paving and related services
Revenue from External Customer [Line Items]
Revenue	381,430	360,234	379,540
Paving and related services | Summit Materials, LLC
Revenue from External Customer [Line Items]
Revenue	381,430	360,234	379,540
Other
Revenue from External Customer [Line Items]
Revenue	177,975	187,629	203,401
Other | Summit Materials, LLC
Revenue from External Customer [Line Items]
Revenue	$ 177,975	$ 187,629	$ 203,401

XML

Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Change in Contract with Customer, Asset [Abstract]
Balance—December 28, 2019	$ 13,088
Changes in revenue billed, contract price or cost estimates	(4,535)	$ (5,558)	$ 8,702
Other	113
Balance—January 2, 2021	8,666	13,088
Change in Contract with Customer, Liability [Abstract]
Balance—December 28, 2019	13,864
Changes in revenue billed, contract price or cost estimates	2,616	1,988	(5,052)
Other	19
Balance—January 2, 2021	16,499	13,864
Summit Materials, LLC
Change in Contract with Customer, Asset [Abstract]
Balance—December 28, 2019	13,088
Changes in revenue billed, contract price or cost estimates	(4,535)	(5,558)	8,702
Other	113
Balance—January 2, 2021	8,666	13,088
Change in Contract with Customer, Liability [Abstract]
Balance—December 28, 2019	13,864
Changes in revenue billed, contract price or cost estimates	2,616	1,988	$ (5,052)
Other	19
Balance—January 2, 2021	$ 16,499	$ 13,864

XML

Revenue Recognition - Summary of Accounts Receivable, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	$ 191,871	$ 191,672
Construction contract receivables	47,179	47,966
Retention receivables	18,824	17,808
Receivables from related parties	1,339	1,596
Accounts receivable	259,213	259,042
Less: Allowance for doubtful accounts	(4,517)	(5,786)
Accounts receivable, net	254,696	253,256
Summit Materials, LLC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade accounts receivable	191,871	191,672
Construction contract receivables	47,179	47,966
Retention receivables	18,824	17,808
Receivables from related parties	1,339	1,596
Accounts receivable	259,213	259,042
Less: Allowance for doubtful accounts	(4,517)	(5,786)
Accounts receivable, net	$ 254,696	$ 253,256
Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
General collection and billing period for retention receivables	1 year
Maximum | Summit Materials, LLC
Accounts, Notes, Loans and Financing Receivable [Line Items]
General collection and billing period for retention receivables	1 year

XML

Inventories - Components of Inventories (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019
Inventory [Line Items]
Aggregate stockpiles	$ 137,938	$ 140,461
Finished goods	32,993	33,023
Work in process	9,281	7,664
Raw materials	20,096	23,639
Total	200,308	204,787
Summit Materials, LLC
Inventory [Line Items]
Aggregate stockpiles	137,938	140,461
Finished goods	32,993	33,023
Work in process	9,281	7,664
Raw materials	20,096	23,639
Total	$ 200,308	$ 204,787

XML

Property, Plant and Equipment, net and Intangibles, net - Components of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Property, Plant and Equipment [Line Items]
Property, plant and equipment including finance lease right-of-use asset, gross	$ 2,983,094	$ 2,703,264
Less accumulated depreciation, depletion and amortization	(1,132,925)	(955,815)
Property, plant and equipment including finance lease right-of-use asset, net	1,850,169	1,747,449
Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment including finance lease right-of-use asset, gross	2,983,094	2,703,264
Less accumulated depreciation, depletion and amortization	(1,132,925)	(955,815)
Property, plant and equipment including finance lease right-of-use asset, net	1,850,169	1,747,449
Mineral bearing land and leased interests
Property, Plant and Equipment [Line Items]
Property, plant and equipment	468,966	333,024
Mineral bearing land and leased interests | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment	468,966	333,024
Land (non-mineral bearing)
Property, Plant and Equipment [Line Items]
Property, plant and equipment	197,432	182,065
Land (non-mineral bearing) | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment	197,432	182,065
Buildings and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 181,198	178,088
Buildings and improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years
Buildings and improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	30 years
Buildings and improvements | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 181,198	178,088
Buildings and improvements | Summit Materials, LLC | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years
Buildings and improvements | Summit Materials, LLC | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	30 years
Plants, machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment including finance lease right-of-use asset, gross	$ 1,397,410	1,318,512
Plants, machinery and equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	7 years
Plants, machinery and equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	20 years
Plants, machinery and equipment | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment including finance lease right-of-use asset, gross	$ 1,397,410	1,318,512
Plants, machinery and equipment | Summit Materials, LLC | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	7 years
Plants, machinery and equipment | Summit Materials, LLC | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	20 years
Mobile equipment and barges
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 543,133	501,809
Mobile equipment and barges | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	6 years
Mobile equipment and barges | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	8 years
Mobile equipment and barges | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 543,133	501,809
Mobile equipment and barges | Summit Materials, LLC | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	6 years
Mobile equipment and barges | Summit Materials, LLC | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	8 years
Truck and auto fleet
Property, Plant and Equipment [Line Items]
Property, plant and equipment including finance lease right-of-use asset, gross	$ 56,163	54,838
Truck and auto fleet | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Truck and auto fleet | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	8 years
Truck and auto fleet | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment including finance lease right-of-use asset, gross	$ 56,163	54,838
Truck and auto fleet | Summit Materials, LLC | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Truck and auto fleet | Summit Materials, LLC | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	8 years
Landfill airspace and improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 52,202	49,766
Landfill airspace and improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years
Landfill airspace and improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	30 years
Landfill airspace and improvements | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 52,202	49,766
Landfill airspace and improvements | Summit Materials, LLC | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years
Landfill airspace and improvements | Summit Materials, LLC | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	30 years
Office equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment including finance lease right-of-use asset, gross	$ 45,942	43,155
Office equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Office equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	7 years
Office equipment | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment including finance lease right-of-use asset, gross	$ 45,942	43,155
Office equipment | Summit Materials, LLC | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Office equipment | Summit Materials, LLC | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	7 years
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 40,648	42,007
Construction in progress | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 40,648	$ 42,007
Other | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	4 years
Other | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	20 years
Other | Summit Materials, LLC | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	4 years
Other | Summit Materials, LLC | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	20 years

XML

Property, Plant and Equipment, net and Intangibles, net - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Property, Plant and Equipment [Line Items]
Depreciation, depletion and amortization expense	$ 195,300	$ 196,800	$ 199,600
Property, plant and equipment including finance lease right-of-use asset, gross	2,983,094	2,703,264
Finance lease right-of-use asset accumulated amortization	1,132,925	955,815
Current finance lease liabilities	$ 24,601	16,007
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent
Long-term finance lease liabilities	$ 31,727	40,410
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesNoncurrent
2021	$ 26,742
2022	18,603
2023	7,053
2024	3,207
2025	2,573
Gain on sale of property, plant and equipment	7,569	10,665	12,555
General and administrative expenses
Property, Plant and Equipment [Line Items]
Gain on sale of property, plant and equipment	7,600	10,700	12,600
Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Depreciation, depletion and amortization expense	195,300	196,800	199,600
Property, plant and equipment including finance lease right-of-use asset, gross	2,983,094	2,703,264
Finance lease right-of-use asset accumulated amortization	1,132,925	955,815
Current finance lease liabilities	$ 24,601	16,007
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent
Long-term finance lease liabilities	$ 31,727	40,410
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesNoncurrent
2021	$ 26,742
2022	18,603
2023	7,053
2024	3,207
2025	2,573
Gain on sale of property, plant and equipment	7,569	10,665	12,555
Summit Materials, LLC | General and administrative expenses
Property, Plant and Equipment [Line Items]
Gain on sale of property, plant and equipment	7,600	10,700	$ 12,600
Equipment And Building
Property, Plant and Equipment [Line Items]
Property, plant and equipment including finance lease right-of-use asset, gross	92,700	82,700
Finance lease right-of-use asset accumulated amortization	32,800	24,900
Equipment And Building | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment including finance lease right-of-use asset, gross	92,700	82,700
Finance lease right-of-use asset accumulated amortization	$ 32,800	$ 24,900
Equipment
Property, Plant and Equipment [Line Items]
Equipment lease term	5 years
Equipment | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Equipment lease term	5 years
Building
Property, Plant and Equipment [Line Items]
Equipment lease term	30 years
Building | Summit Materials, LLC
Property, Plant and Equipment [Line Items]
Equipment lease term	30 years

XML

Property, Plant and Equipment, net and Intangibles, net - Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 59,716	$ 33,864
Accumulated Amortization	(11,864)	(10,366)
Net Carrying Amount	47,852	23,498
Amortization expense	2,700	2,100	$ 1,500
Estimated amortization expense
2021	3,129
2022	3,136
2023	3,003
2024	2,908
2025	2,863
Thereafter	32,813
Total	47,852	23,498
Summit Materials, LLC
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	59,716	33,864
Accumulated Amortization	(11,864)	(10,366)
Net Carrying Amount	47,852	23,498
Amortization expense	2,700	2,100	$ 1,500
Estimated amortization expense
2021	3,129
2022	3,136
2023	3,003
2024	2,908
2025	2,863
Thereafter	32,813
Total	47,852	23,498
Operating permits
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	33,671	6,609
Accumulated Amortization	(1,207)	(290)
Net Carrying Amount	32,464	6,319
Mineral leases
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	19,225	19,064
Accumulated Amortization	(7,571)	(6,408)
Net Carrying Amount	11,654	12,656
Mineral leases | Summit Materials, LLC
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	19,225	19,064
Accumulated Amortization	(7,571)	(6,408)
Net Carrying Amount	11,654	12,656
Reserve rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	6,234	6,234
Accumulated Amortization	(2,504)	(2,248)
Net Carrying Amount	3,730	3,986
Reserve rights | Summit Materials, LLC
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	6,234	6,234
Accumulated Amortization	(2,504)	(2,248)
Net Carrying Amount	3,730	3,986
Trade names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	0	1,000
Accumulated Amortization	0	(958)
Net Carrying Amount	0	42
Trade names | Summit Materials, LLC
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	0	1,000
Accumulated Amortization	0	(958)
Net Carrying Amount	0	42
Other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	586	957
Accumulated Amortization	(582)	(462)
Net Carrying Amount	4	495
Other | Summit Materials, LLC
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	586	957
Accumulated Amortization	(582)	(462)
Net Carrying Amount	$ 4	$ 495

XML

Accrued Expenses - Components of Accrued Expenses (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019
Schedule Of Accrued Expenses [Line Items]
Interest	$ 21,860	$ 26,892
Payroll and benefits	46,026	29,356
Finance lease obligations	24,601	16,007
Insurance	18,355	14,968
Non-income taxes	15,669	7,666
Deferred asset purchase payments	9,749	3,525
Professional fees	828	902
Other	23,482	20,689
Total	160,570	120,005
Summit Materials, LLC
Schedule Of Accrued Expenses [Line Items]
Interest	21,860	26,892
Payroll and benefits	46,026	29,356
Finance lease obligations	24,601	16,007
Insurance	18,355	14,968
Non-income taxes	15,900	7,898
Deferred asset purchase payments	9,749	3,525
Professional fees	828	902
Other	23,482	20,689
Total	$ 160,801	$ 120,237

XML

Debt - Schedule of Debt (Details) - USD ($)	Jan. 02, 2021	Dec. 28, 2019	Jun. 01, 2017
Debt
Total debt	$ 1,915,425,000	$ 1,872,273,000
Current portion of long-term debt	6,354,000	7,942,000
Long-term Debt, Excluding Current Maturities	1,909,071,000	1,864,331,000
Gross amount	1,916,314,000
Debt discount	889,000
Summit Materials, LLC
Debt
Total debt	1,915,425,000	1,872,273,000
Current portion of long-term debt	6,354,000	7,942,000
Long-term Debt, Excluding Current Maturities	1,909,071,000	1,864,331,000
Gross amount	1,916,314,000
Debt discount	889,000
Term Loan, due 2024:
Debt
Total debt	615,425,000	623,140,000
Gross amount	616,300,000	624,300,000
Debt discount	900,000	1,100,000
Term Loan, due 2024: | Summit Materials, LLC
Debt
Total debt	615,425,000	623,140,000
Gross amount	616,300,000	624,300,000
Debt discount	900,000	1,100,000
6 1⁄8% Senior Notes, due 2023:
Debt
Total debt	$ 0	649,133,000
Debt instrument interest rate (as a percent)	6.125%
Gross amount		650,000,000.0
Debt discount		900,000
6 1⁄8% Senior Notes, due 2023: | Summit Materials, LLC
Debt
Total debt	$ 0	649,133,000
Debt instrument interest rate (as a percent)	6.125%
Gross amount		650,000,000.0
Debt discount		900,000
5 1⁄8% Senior Notes, due 2025
Debt
Total debt	$ 300,000,000	300,000,000
5 1⁄8% Senior Notes, due 2025 | Summit Materials, LLC
Debt
Total debt	$ 300,000,000	300,000,000	$ 300,000,000.0
Debt instrument interest rate (as a percent)	5.125%		5.125%
Senior Notes | 6 1⁄2% Senior Notes, due 2027
Debt
Total debt	$ 300,000,000	300,000,000
Debt instrument interest rate (as a percent)	6.50%
Senior Notes | 6 1⁄2% Senior Notes, due 2027 | Summit Materials, LLC
Debt
Total debt	$ 300,000,000	300,000,000
Debt instrument interest rate (as a percent)	6.50%
Senior Notes | 5 1⁄4% Senior Notes, due 2029
Debt
Total debt	$ 700,000,000	0
Debt instrument interest rate (as a percent)	5.25%
Senior Notes | 5 1⁄4% Senior Notes, due 2029 | Summit Materials, LLC
Debt
Total debt	$ 700,000,000	$ 0
Debt instrument interest rate (as a percent)	5.25%

XML

Debt - Schedule of Contractual Payments of Long-Term Debt (Details) $ in Thousands	Jan. 02, 2021 USD ($)
Contractual payments of long-term debt
2021	$ 6,354
2022	6,354
2023	6,354
2024	597,252
2025	300,000
Thereafter	1,000,000
Total	1,916,314
Less: Original issue net discount	(889)
Less: Capitalized loan costs	(16,724)
Total debt	1,898,701
Summit Materials, LLC
Contractual payments of long-term debt
2021	6,354
2022	6,354
2023	6,354
2024	597,252
2025	300,000
Thereafter	1,000,000
Total	1,916,314
Less: Original issue net discount	(889)
Less: Capitalized loan costs	(16,724)
Total debt	$ 1,898,701

XML

Debt - Senior Notes (Details) - USD ($)				3 Months Ended		12 Months Ended
	Aug. 11, 2020	Mar. 15, 2019	Jun. 01, 2017	Sep. 26, 2020	Mar. 30, 2019	Jan. 02, 2021	Dec. 28, 2019	Jan. 02, 2016	Aug. 31, 2020	Mar. 31, 2019
Debt
Long-term debt						$ 1,915,425,000	$ 1,872,273,000
Write off of deferred financing fees						3,338,000	2,850,000
5 1⁄8% Senior Notes, due 2025
Debt
Long-term debt						300,000,000	300,000,000
6 1⁄8% Senior Notes, due 2023:
Debt
Long-term debt						$ 0	649,133,000
Senior notes, interest rate (as a percent)						6.125%
Issuers | 8 1/2% Senior Notes, due 2022
Debt
Senior notes, interest rate (as a percent)										8.50%
Senior notes, aggregate principal amount redeemed										$ 250,000,000.0
Loss on extinguishment of debt					$ (14,600,000)
Write off of deferred financing fees					2,900,000
Prepayment premium					11,700,000
Issuers | 5 1⁄8% Senior Notes, due 2025
Debt
Long-term debt			$ 300,000,000.0
Senior notes, interest rate (as a percent)			5.125%
Percentage of par value of senior notes			100.00%
Proceeds net of related fees and expenses			$ 295,400,000
Issuers | 6 1⁄8% Senior Notes, due 2023:
Debt
Senior notes, interest rate (as a percent)								6.125%	6.125%
Senior notes, aggregate principal amount redeemed									$ 650,000,000.0
Loss on extinguishment of debt				$ (4,100,000)
Write-off of debt discount				800,000
Write off of deferred financing fees				$ 3,300,000
Debt instrument, face amount								$ 650,000,000.0
Issuers | 6 1/8% Senior Notes, due 2023, issued at par
Debt
Debt instrument, face amount								$ 350,000,000.0
Issuers | 6 1/8% Senior Notes, due 2023, , issued at 99.375% of par
Debt
Percentage of par value of senior notes								99.375%
Debt instrument, face amount								$ 300,000,000.0
Issuers | 5 1⁄4% Senior Notes, due 2029
Debt
Long-term debt	$ 700,000,000.0
Senior notes, interest rate (as a percent)	5.25%
Proceeds net of related fees and expenses	$ 690,400,000
Summit Materials, LLC
Debt
Long-term debt						$ 1,915,425,000	1,872,273,000
Write off of deferred financing fees						3,338,000	2,850,000
Summit Materials, LLC | 8 1/2% Senior Notes, due 2022
Debt
Senior notes, interest rate (as a percent)										8.50%
Senior notes, aggregate principal amount redeemed										$ 250,000,000.0
Loss on extinguishment of debt					(14,600,000)
Write off of deferred financing fees					2,900,000
Prepayment premium					$ 11,700,000
Summit Materials, LLC | 5 1⁄8% Senior Notes, due 2025
Debt
Long-term debt			$ 300,000,000.0			$ 300,000,000	300,000,000
Senior notes, interest rate (as a percent)			5.125%			5.125%
Percentage of par value of senior notes			100.00%
Proceeds net of related fees and expenses			$ 295,400,000
Summit Materials, LLC | 6 1⁄8% Senior Notes, due 2023:
Debt
Long-term debt						$ 0	649,133,000
Senior notes, interest rate (as a percent)						6.125%
Senior Notes | 6 1⁄2% Senior Notes, due 2027
Debt
Long-term debt						$ 300,000,000	300,000,000
Senior notes, interest rate (as a percent)						6.50%
Senior Notes | 5 1⁄4% Senior Notes, due 2029
Debt
Long-term debt						$ 700,000,000	0
Senior notes, interest rate (as a percent)						5.25%
Senior Notes | Issuers | 6 1⁄2% Senior Notes, due 2027
Debt
Long-term debt		$ 300,000,000.0
Senior notes, interest rate (as a percent)		6.50%
Percentage of par value of senior notes		100.00%
Proceeds net of related fees and expenses		$ 296,300,000
Senior Notes | Issuers | 5 1⁄4% Senior Notes, due 2029
Debt
Percentage of par value of senior notes	100.00%
Senior Notes | Summit Materials, LLC | 6 1⁄2% Senior Notes, due 2027
Debt
Long-term debt						$ 300,000,000	300,000,000
Senior notes, interest rate (as a percent)						6.50%
Senior Notes | Summit Materials, LLC | 5 1⁄4% Senior Notes, due 2029
Debt
Long-term debt						$ 700,000,000	$ 0
Senior notes, interest rate (as a percent)						5.25%

XML

Debt - Senior Secured Credit Facilities (Details) - Summit Materials, LLC - USD ($)		12 Months Ended
	Feb. 25, 2019	Jan. 02, 2021	Dec. 28, 2019
Term Loan, due 2024:
Debt
Debt instrument, face amount		$ 650,000,000.0
Revolving Credit Facility
Debt
Maximum borrowing capacity	$ 345,000,000.0	$ 345,000,000.0
Basis spread on variable rate		0.25%
Amount outstanding		$ 0	$ 0
Remaining borrowing capacity		329,100,000
Revolving Credit Facility | Federal funds rate
Debt
Basis spread on variable rate	0.50%
Revolving Credit Facility | LIBOR Plus 1%
Debt
Basis spread on variable rate	2.00%
Percentage added to base rate	1.00%
Revolving Credit Facility | LIBOR
Debt
Basis spread on variable rate	3.00%
Letter of Credit
Debt
Amount outstanding		$ 15,900,000
Senior Secured Credit Facilities
Debt
First lien leverage ratio		4.75

XML

Debt - Summary of Activity for Deferred Financing Fees (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Deferred finance costs
Beginning balance	$ 15,436	$ 15,475
Loan origination fees	9,605	6,312
Amortization	(3,336)	(3,501)
Write off of deferred financing fees	(3,338)	(2,850)
Ending balance	18,367	15,436
Summit Materials, LLC
Deferred finance costs
Beginning balance	15,436	15,475
Loan origination fees	9,605	6,312
Amortization	(3,336)	(3,501)
Write off of deferred financing fees	(3,338)	(2,850)
Ending balance	$ 18,367	$ 15,436

XML

Debt - Other Narrative (Details)	Jan. 15, 2015 USD ($)	Jan. 02, 2021 USD ($)	Dec. 28, 2019 USD ($)	Jan. 15, 2015 CAD ($)
Canadian subsidiary credit agreement, Operating activities
Debt
Revolving credit commitment				$ 6,000,000.0
Canadian subsidiary credit agreement, Operating activities | Summit Materials, LLC
Debt
Revolving credit commitment	$ 6,000,000.0
Canadian subsidiary credit agreement, Capital equipment
Debt
Revolving credit commitment				500,000
Canadian subsidiary credit agreement, Capital equipment | Summit Materials, LLC
Debt
Revolving credit commitment	500,000
Canadian subsidiary credit agreement, Guarantees
Debt
Revolving credit commitment				$ 400,000
Canadian subsidiary credit agreement, Guarantees | Summit Materials, LLC
Debt
Revolving credit commitment	$ 400,000
Canadian subsidiary credit agreement
Debt
Amount outstanding		$ 0	$ 0
Canadian subsidiary credit agreement | Summit Materials, LLC
Debt
Amount outstanding		$ 0	$ 0
Prime rate | Canadian subsidiary credit agreement, Operating activities
Debt
Basis spread on variable rate	0.20%
Prime rate | Canadian subsidiary credit agreement, Operating activities | Summit Materials, LLC
Debt
Basis spread on variable rate	0.20%
Prime rate | Canadian subsidiary credit agreement, Capital equipment
Debt
Basis spread on variable rate	0.90%
Prime rate | Canadian subsidiary credit agreement, Capital equipment | Summit Materials, LLC
Debt
Basis spread on variable rate	0.90%

XML

Income Taxes - Components of Income Tax Benefit (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Provision for income taxes:
Current	$ 3,827	$ 69	$ 463
Deferred	(16,012)	17,032	59,284
Income tax expense (benefit)	(12,185)	17,101	59,747
Summit Materials, LLC
Provision for income taxes:
Current	3,827	69	463
Deferred	(2,764)	6,316	9,810
Income tax expense (benefit)	$ 1,063	$ 6,385	$ 10,273

XML

Income Taxes - Schedule of Income Tax Benefit (Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Line Items]
Income tax expense (benefit) at federal statutory tax rate	$ 27,100	$ 16,427	$ 20,177
Less: Income tax benefit at federal statutory tax rate for LLC entities	(593)	(658)	(561)
State and local income taxes	5,067	3,792	4,894
Permanent differences	(3,345)	(6,272)	(5,537)
Effective tax rate change	4,257	(2,006)	4,034
Unrecognized tax benefits	(41,548)	18,885	22,663
Tax receivable agreement (benefit) expense	(6)	2,436	(8,282)
Change in valuation allowance	0	(17,691)	17,592
Other	(3,117)	2,188	4,767
Income tax expense (benefit)	(12,185)	17,101	59,747
Summit Materials, LLC
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Line Items]
Income tax expense (benefit) at federal statutory tax rate	25,577	19,947	15,563
Less: Income tax benefit at federal statutory tax rate for LLC entities	(17,647)	(15,387)	(13,863)
State and local income taxes	2,073	1,680	1,614
Permanent differences	2,479	13	(1,194)
Effective tax rate change	681	(725)	(1,148)
Unrecognized tax benefits	(11,525)	5,038	6,487
Change in valuation allowance	0	(2,478)	2,586
Other	(575)	(1,703)	228
Income tax expense (benefit)	$ 1,063	$ 6,385	$ 10,273

XML

Income Taxes - Components of Net Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Deferred tax assets (liabilities):
Net intangible assets	$ 199,497	$ 240,790
Accelerated depreciation	(209,644)	(201,126)
Net operating loss	227,560	164,335
Investment in limited partnership	(33,139)	(31,987)
Mining reclamation reserve	3,306	2,018
Working capital (e.g., accrued compensation, prepaid assets)	45,972	37,287
Interest expense limitation carryforward	0	2,691
Less valuation allowance	(1,675)	(1,675)	$ (19,366)
Deferred tax assets	231,877	212,333
Less foreign deferred tax liability (included in other noncurrent liabilities)	(18,393)	(8,267)
Net deferred tax asset	213,484	204,066
Summit Materials, LLC
Deferred tax assets (liabilities):
Accelerated depreciation	(70,588)	(60,216)
Net operating loss	26,929	18,036
Investment in limited partnership	(18,931)	(17,686)
Net intangible assets	(3,264)	(2,554)
Mining reclamation reserve	1,652	723
Working capital (e.g., accrued compensation, prepaid assets)	1,590	1,366
Interest expense limitation carryforward	0	2,691
Less valuation allowance	(1,675)	(1,675)	$ (4,261)
Net deferred tax liabilities	(62,612)	(57,640)
Net deferred tax liability	$ (64,287)	$ (59,315)

XML

Income Taxes - Narrative (Details) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 29, 2018	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Income Taxes [Line Items]
Deferred tax assets subject to TRA		$ 378,500,000
Income tax expense (benefit)		(12,185,000)	$ 17,101,000	$ 59,747,000
Reduction of net deferred tax assets due to change in statutory rate	$ 17,600,000
Unrecognized tax benefits that if recognized would affect the annual effective tax rate	22,700,000	0.0	41,500,000	22,700,000
Unrecognized tax benefits	22,663,000	0	41,548,000	22,663,000
Deferred tax asset, valuation allowance	19,366,000	1,675,000	1,675,000	19,366,000
Deferred tax asset, Investment in limited partnership		2,400,000	1,100,000
Tax receivable agreement (benefit) expense		(7,559,000)	16,237,000	(22,684,000)
Tax receivable agreement liability		321,680,000	326,965,000
Penalties and interest expense		0	0	0
Summit Holdings LP
Income Taxes [Line Items]
Distributions to LP Unitholders		0	100,000
Summit Materials, LLC
Income Taxes [Line Items]
Income tax expense (benefit)		1,063,000	6,385,000	10,273,000
Reduction of net deferred tax assets due to change in statutory rate				2,600,000
Unrecognized tax benefits	6,487,000	0	11,619,000	6,487,000
Net operating loss carryforwards		120,300,000
Deferred tax asset, valuation allowance	$ 4,261,000	1,675,000	1,675,000	$ 4,261,000
Penalties and interest expense		$ 0	0
Tax Receivable Agreement
Income Taxes [Line Items]
Tax receivable agreement liability			$ 327,000,000.0
Tax Receivable Agreement | Summit Holdings LP
Income Taxes [Line Items]
Percentage of benefits to be paid on tax receivable agreement		85.00%
Federal
Income Taxes [Line Items]
Net operating loss carryforwards		$ 917,000,000
Federal | Tax Receivable Agreement
Income Taxes [Line Items]
Net operating loss carryforwards		$ 497,000,000

XML

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits, beginning balance	$ 41,548	$ 22,663
Additions based on tax position in 2018		18,885
Reductions based on new regulations	(41,548)
Unrecognized tax benefits, ending balance	0	41,548
Summit Materials, LLC
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits, beginning balance	11,619	6,487
Additions based on tax position in 2018		5,132
Reductions based on new regulations	(11,619)
Unrecognized tax benefits, ending balance	$ 0	$ 11,619

XML

Incomes Taxes - Deferred Tax Asset Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Valuation Allowance:
Beginning balance	$ (1,675)	$ (19,366)
Current year decreases (increases) from operations	0	17,691
Ending balance	(1,675)	(1,675)
Summit Materials, LLC
Valuation Allowance:
Beginning balance	(1,675)	(4,261)
Release of valuation allowance and other	0	2,586
Ending balance	$ (1,675)	$ (1,675)

XML

Earnings Per Share - Schedule of Basic to Diluted Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Reconciliation of basic to diluted loss per share
Net income attributable to Summit Inc.	$ 137,967	$ 59,066	$ 33,906
Diluted net income attributable to Summit Inc.	$ 137,967	$ 59,066	$ 33,906
LP Units
Reconciliation of basic to diluted loss per share
Anti dilutive shares excluded from calculation of earnings per share	3,060,248	3,372,706	3,512,669
Warrant
Reconciliation of basic to diluted loss per share
Anti dilutive shares excluded from calculation of earnings per share	100,037	0	0
Restricted Stock
Reconciliation of basic to diluted loss per share
Add: Nonvested restricted stock awards of retirement eligible shares (in shares)	212,443	0	0
Common Class A
Reconciliation of basic to diluted loss per share
Weighted average shares outstanding (in shares)	114,014,749	112,204,067	111,380,175
Basic (USD per share)	$ 1.21	$ 0.53	$ 0.30
Add: warrants	0	4,206	25,049
Weighted average dilutive shares outstanding (in shares)	114,631,768	112,684,718	112,316,646
Diluted (USD per share)	$ 1.20	$ 0.52	$ 0.30
Common Class A | Stock Options
Reconciliation of basic to diluted loss per share
Add: Share-based payment arrangements	3,390	87,290	282,329
Common Class A | Restricted stock
Reconciliation of basic to diluted loss per share
Add: Share-based payment arrangements	520,871	342,620	459,280
Common Class A | Performance Stock Units
Reconciliation of basic to diluted loss per share
Add: Share-based payment arrangements	92,758	46,535	169,813
Common Class A and Restricted Stock
Reconciliation of basic to diluted loss per share
Weighted average shares outstanding (in shares)	114,227,192	112,204,067	111,380,175
Basic (USD per share)	$ 1.21	$ 0.53	$ 0.30

XML

Stockholders' Equity/Members' Interest - Narrative (Details) - $ / shares	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Common Class A
Subsidiary, Sale of Stock [Line Items]
Common stock, shares authorized (in shares)	1,000,000,000.0	1,000,000,000
Common stock, par value (USD per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	114,390,595	113,309,385	111,658,927
Common stock, shares outstanding (in shares)	114,390,595	113,309,385
Common Class B
Subsidiary, Sale of Stock [Line Items]
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, par value (USD per share)	$ 0.01	$ 0.01
Common stock, shares issued (in shares)	99	99
Common stock, shares outstanding (in shares)	99	99

XML

Stockholders' Equity/Members' Interest - Change in Ownership (Details) - shares	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Increase (Decrease) In Stockholders' Equity [Rollforward]
Stock option exercises (in shares)		1,065,446
Summit Materials Incorporated And Summit Holdings LP
Increase (Decrease) In Stockholders' Equity [Rollforward]
Beginning balance stockholders' equity (in shares)	116,559,042	115,094,445
Exchanges during period (in shares)	0	0
Stock option exercises (in shares)	54,517
Other equity transactions (in shares)	650,206	399,151
Ending balance stockholders' equity (in shares)	117,263,765	116,559,042	115,094,445
LP Units | Summit Holdings LP
Increase (Decrease) In Stockholders' Equity [Rollforward]
Number of LP Units outstanding (in shares)	3,249,657	3,435,518
Number of LP Units exchanged	(376,487)	(185,861)
Number of LP Units outstanding (in shares)	2,873,170	3,249,657	3,435,518
Common Class A
Increase (Decrease) In Stockholders' Equity [Rollforward]
Beginning balance stockholders' equity (in shares)	113,309,385	111,658,927
Exchanges during period (in shares)	376,487	185,861
Stock option exercises (in shares)	54,517	1,065,446
Other equity transactions (in shares)	650,206	399,151
Ending balance stockholders' equity (in shares)	114,390,595	113,309,385	111,658,927
Summit Materials Inc
Increase (Decrease) In Stockholders' Equity [Rollforward]
Summit Inc. Ownership Percentage	97.50%	97.20%	97.00%

XML

Stockholders' Equity/Members' Interest - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Changes in each component of accumulated other comprehensive loss
Beginning balance stockholders' equity	$ 1,444,773	$ 1,342,145
Postretirement liability adjustment, net of tax	(1,638)	(1,402)
Foreign currency translation adjustment, net of tax	3,393	3,424
Income on cash flow hedges, net of tax		(1,255)
Ending balance stockholders' equity	1,616,268	1,444,773
Change in retirement plans
Changes in each component of accumulated other comprehensive loss
Beginning balance stockholders' equity	2,171	3,573
Postretirement liability adjustment, net of tax	(1,638)	(1,402)
Ending balance stockholders' equity	533	2,171
Foreign currency translation adjustment
Changes in each component of accumulated other comprehensive loss
Beginning balance stockholders' equity	1,277	(2,147)
Foreign currency translation adjustment, net of tax	3,393	3,424
Ending balance stockholders' equity	4,670	1,277
Cash flow hedge adjustments
Changes in each component of accumulated other comprehensive loss
Beginning balance stockholders' equity	0	1,255
Income on cash flow hedges, net of tax		(1,255)
Ending balance stockholders' equity	0	0
Accumulated Other Comprehensive Income (Loss)
Changes in each component of accumulated other comprehensive loss
Beginning balance stockholders' equity	3,448	2,681
Ending balance stockholders' equity	5,203	3,448
Summit Materials, LLC
Changes in each component of accumulated other comprehensive loss
Postretirement liability adjustment, net of tax	(2,229)	(1,925)
Foreign currency translation adjustment, net of tax	4,617	4,716
Income on cash flow hedges, net of tax		(146)
Summit Materials, LLC | Change in retirement plans
Changes in each component of accumulated other comprehensive loss
Beginning balance stockholders' equity	(6,317)	(4,392)
Postretirement liability adjustment, net of tax	(2,229)	(1,925)
Ending balance stockholders' equity	(8,546)	(6,317)
Summit Materials, LLC | Foreign currency translation adjustment
Changes in each component of accumulated other comprehensive loss
Beginning balance stockholders' equity	(14,654)	(19,370)
Foreign currency translation adjustment, net of tax	4,617	4,716
Ending balance stockholders' equity	(10,037)	(14,654)
Summit Materials, LLC | Cash flow hedge adjustments
Changes in each component of accumulated other comprehensive loss
Beginning balance stockholders' equity	0	146
Income on cash flow hedges, net of tax		(146)
Ending balance stockholders' equity	0	0
Summit Materials, LLC | Accumulated Other Comprehensive Income (Loss)
Changes in each component of accumulated other comprehensive loss
Beginning balance stockholders' equity	(20,971)	(23,616)
Ending balance stockholders' equity	$ (18,583)	$ (20,971)

XML

Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Cash payments:
Interest	$ 99,551	$ 104,614	$ 103,250
Payments (refunds) for income taxes, net	1,754	(919)	3,340
Operating cash payments on operating leases	10,452	10,618
Operating cash payments on finance leases	3,132	3,051
Finance cash payments on finance leases	14,408	13,164
Non cash financing activities:
Right of use assets obtained in exchange for operating lease obligations	4,849	5,842
Right of use assets obtained in exchange for finance leases obligations	18,016	23,965
Exchange of LP Units to shares of Class A common stock	8,227	3,847	7,499
Summit Materials, LLC
Cash payments:
Interest	99,551	104,614	103,250
Payments (refunds) for income taxes, net	1,754	(919)	$ 3,340
Operating cash payments on operating leases	10,452	10,618
Operating cash payments on finance leases	3,132	3,051
Finance cash payments on finance leases	14,408	13,164
Non cash financing activities:
Right of use assets obtained in exchange for operating lease obligations	4,849	5,842
Right of use assets obtained in exchange for finance leases obligations	$ 18,016	$ 23,965

XML

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018	Jan. 02, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 28.9	$ 20.4	$ 25.4
Dividend yield		0.00%
Unrecognized compensation cost		$ 22.0
Weighted average contractual term, unrecognized compensation cost		1 year 8 months 12 days
2015 Omnibus Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)					13,500,000
Shares available for grant (in shares)		4,300,000
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted during the period (in shares)		1,379,943
Intrinsic value, units outstanding		$ 42.9
Weighted average remaining contractual term		1 year
Restricted stock | 2015 Omnibus Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		1 year
Awards granted during the period (in shares)		42,736	65,144	38,232
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, granted (in shares)		0	0	0
Intrinsic value, options outstanding		$ 3.8
Weighted average remaining contractual term		3 years 3 months 18 days
Weighted average strike price, outstanding (in dollars per share)		$ 18.75
Exercisable (in shares)		2,000,000.0
Intrinsic value, exercisable stock options		$ 3.8
Weighted average strike price, exercisable (in dollars per share)		$ 18.75
Weighed average remaining contractual term, exercisable		3 years 3 months 18 days
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
Awards granted during the period (in shares)		199,946
Intrinsic value, units outstanding		$ 8.6
Weighted average remaining contractual term		1 year 3 months 18 days
Summit Materials, LLC
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 28.9	$ 20.4	$ 25.4
Dividend yield		0.00%
Unrecognized compensation cost		$ 22.0
Weighted average contractual term, unrecognized compensation cost			1 year 8 months 12 days
Weighed average remaining contractual term, exercisable		3 years 3 months 18 days
Summit Materials, LLC | Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards granted during the period (in shares)		1,379,943
Intrinsic value, units outstanding		$ 42.9
Weighted average remaining contractual term		1 year
Summit Materials, LLC | Restricted stock | 2015 Omnibus Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		1 year
Summit Materials, LLC | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, granted (in shares)		0	0	0
Intrinsic value, options outstanding		$ 3.8
Weighted average remaining contractual term		3 years 3 months 18 days
Weighted average strike price, outstanding (in dollars per share)		$ 18.75
Exercisable (in shares)		2,000,000.0
Intrinsic value, exercisable stock options		$ 3.8
Weighted average strike price, exercisable (in dollars per share)		$ 18.75
Summit Materials, LLC | Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
Awards granted during the period (in shares)		199,946
Intrinsic value, units outstanding		$ 8.6
Weighted average remaining contractual term		1 year 3 months 18 days
Summit Holdings LP | Leverage restoration options, time-vesting
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 1.0
Minimum | Restricted stock | 2015 Omnibus Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		2 years
Minimum | Summit Materials, LLC | Restricted stock | 2015 Omnibus Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		2 years
Maximum | Restricted stock | 2015 Omnibus Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years
Maximum | Summit Materials, LLC | Restricted stock | 2015 Omnibus Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		3 years

XML

Stock-Based Compensation - Summary of Award Activity (Details) - $ / shares	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options, Exercised (in shares)		(1,065,446)
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options, Beginning balance (in shares)	2,128,107
Options, Granted (in shares)	0	0	0
Options, Forfeited/Canceled (in shares)	(35,117)
Options, Exercised (in shares)	(54,517)
Options, Vested	0
Options, Ending balance (in shares)	2,038,473	2,128,107
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Options, Beginning balance (in dollars per share)	$ 9.08
Options, Granted (in dollars per share)	0
Options, Forfeited/Canceled (in dollars per share)	12.30
Options, Exercised (in dollars per share)	10.10
Options, Vested (in dollars per share)	0
Options, Ending balance (in dollars per share)	$ 9.16	$ 9.08
Stock Options | Summit Materials, LLC
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options, Beginning balance (in shares)	2,128,107
Options, Granted (in shares)	0	0	0
Options, Forfeited/Canceled (in shares)	(35,117)
Options, Exercised (in shares)	(54,517)
Options, Vested	0
Options, Ending balance (in shares)	2,038,473	2,128,107
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Options, Beginning balance (in dollars per share)	$ 9.08
Options, Granted (in dollars per share)	0
Options, Forfeited/Canceled (in dollars per share)	12.30
Options, Exercised (in dollars per share)	10.10
Options, Vested (in dollars per share)	0
Options, Ending balance (in dollars per share)	$ 9.16	$ 9.08
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of units, Beginning balance (in shares)	1,556,636
Number of units, granted (in shares)	1,379,943
Number of units, Forfeited/Canceled (in shares)	(154,283)
Number of units, Exercised (in shares)	0
Number of units, Vested (in shares)	(647,345)
Number of units, Ending balance (in shares)	2,134,951	1,556,636
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Number of units, Beginning balance (in dollars per share)	$ 20.29
Number of units, Granted (in dollars per share)	18.10
Number of units, Forfeited/Canceled (in dollars per share)	19.12
Number of units, Exercised (in dollars per share)	0
Number of units, Vested (in dollars per share)	21.28
Number of units, Ending balance (in dollars per share)	$ 18.64	$ 20.29
Restricted stock | Summit Materials, LLC
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of units, Beginning balance (in shares)	1,556,636
Number of units, granted (in shares)	1,379,943
Number of units, Forfeited/Canceled (in shares)	(154,283)
Number of units, Exercised (in shares)	0
Number of units, Vested (in shares)	(647,345)
Number of units, Ending balance (in shares)	2,134,951	1,556,636
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Number of units, Beginning balance (in dollars per share)	$ 20.29
Number of units, Granted (in dollars per share)	18.10
Number of units, Forfeited/Canceled (in dollars per share)	19.12
Number of units, Exercised (in dollars per share)	0
Number of units, Vested (in dollars per share)	21.28
Number of units, Ending balance (in dollars per share)	$ 18.64	$ 20.29
Performance Stock Units
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of units, Beginning balance (in shares)	390,645
Number of units, granted (in shares)	199,946
Number of units, Forfeited/Canceled (in shares)	(112,416)
Number of units, Exercised (in shares)	0
Number of units, Vested (in shares)	(49,300)
Number of units, Ending balance (in shares)	428,875	390,645
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Number of units, Beginning balance (in dollars per share)	$ 31.08
Number of units, Granted (in dollars per share)	23.43
Number of units, Forfeited/Canceled (in dollars per share)	26.54
Number of units, Exercised (in dollars per share)	0
Number of units, Vested (in dollars per share)	32
Number of units, Ending balance (in dollars per share)	$ 28.64	$ 31.08
Performance Stock Units | Summit Materials, LLC
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of units, Beginning balance (in shares)	390,645
Number of units, granted (in shares)	199,946
Number of units, Forfeited/Canceled (in shares)	(112,416)
Number of units, Exercised (in shares)	0
Number of units, Vested (in shares)	(49,300)
Number of units, Ending balance (in shares)	428,875	390,645
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Number of units, Beginning balance (in dollars per share)	$ 31.08
Number of units, Granted (in dollars per share)	23.43
Number of units, Forfeited/Canceled (in dollars per share)	26.54
Number of units, Exercised (in dollars per share)	0
Number of units, Vested (in dollars per share)	32
Number of units, Ending balance (in dollars per share)	$ 28.64	$ 31.08
Warrants
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of units, Beginning balance (in shares)	100,037
Number of units, granted (in shares)	0
Number of units, Forfeited/Canceled (in shares)	0
Number of units, Exercised (in shares)	0
Number of units, Vested (in shares)	0
Number of units, Ending balance (in shares)	100,037	100,037
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Number of units, Beginning balance (in dollars per share)	$ 18.00
Number of units, Granted (in dollars per share)	0
Number of units, Forfeited/Canceled (in dollars per share)	0
Number of units, Exercised (in dollars per share)	0
Number of units, Vested (in dollars per share)	0
Number of units, Ending balance (in dollars per share)	$ 18.00	$ 18.00
Warrants | Summit Materials, LLC
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Number of units, Beginning balance (in shares)	100,037
Number of units, granted (in shares)	0
Number of units, Forfeited/Canceled (in shares)	0
Number of units, Exercised (in shares)	0
Number of units, Vested (in shares)	0
Number of units, Ending balance (in shares)	100,037	100,037
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Number of units, Beginning balance (in dollars per share)	$ 18.00
Number of units, Granted (in dollars per share)	0
Number of units, Forfeited/Canceled (in dollars per share)	0
Number of units, Exercised (in dollars per share)	0
Number of units, Vested (in dollars per share)	0
Number of units, Ending balance (in dollars per share)	$ 18.00	$ 18.00

XML

Employee Benefit Plans - Narrative (Details) $ in Millions	12 Months Ended
	Jan. 02, 2021 USD ($) plan	Dec. 28, 2019 USD ($)	Dec. 29, 2018 USD ($)	Jan. 02, 2016 plan
Defined Benefit Plan Disclosure [Line Items]
Expense for defined contribution plans	$ 12.1	$ 11.7	$ 11.2
Number of noncontributory defined benefit pension plans | plan	2
Number of unfunded healthcare and life insurance benefit plans | plan	2
Number of unfunded healthcare plans for benefits prior to medicare eligibility | plan				1
Assumed health care cost trend rates	8.00%	8.00%
Assumed health care cost, grading	4.50%	4.50%
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Expected contributions in 2021	$ 1.2
Healthcare & Life Ins
Defined Benefit Plan Disclosure [Line Items]
Expected contributions in 2021	0.6
Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Expense for defined contribution plans	$ 12.1	$ 11.7	$ 11.2
Assumed health care cost trend rates	8.00%	8.00%
Assumed health care cost, grading	4.50%	4.50%
Summit Materials, LLC | Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Expected contributions in 2021	$ 1.2
Summit Materials, LLC | Healthcare & Life Ins
Defined Benefit Plan Disclosure [Line Items]
Expected contributions in 2021	$ 0.6
Equity Securities
Defined Benefit Plan Disclosure [Line Items]
Target allocation	30.00%
Equity Securities | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Target allocation	30.00%
Fixed Income Securities
Defined Benefit Plan Disclosure [Line Items]
Target allocation	63.00%
Fixed Income Securities | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Target allocation	63.00%
Cash
Defined Benefit Plan Disclosure [Line Items]
Target allocation	5.00%
Cash | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Target allocation	5.00%
Precious metals
Defined Benefit Plan Disclosure [Line Items]
Target allocation	2.00%
Precious metals | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Target allocation	2.00%

XML

Employee Benefit Plans - Obligations and Funded Status (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Change in fair value of plan assets:
Beginning of period	$ 18,242
End of period	19,058	$ 18,242
Summit Materials, LLC
Change in fair value of plan assets:
Beginning of period	18,242
End of period	19,058	18,242
Pension Benefits
Change in benefit obligations:
Beginning of period	26,181	24,203
Service cost	71	60	$ 67
Interest cost	733	928	898
Actuarial (gain) loss	2,425	2,571
Benefits paid	(1,583)	(1,581)
End of period	27,827	26,181	24,203
Change in fair value of plan assets:
Beginning of period	18,242	17,449
Actual return on plan assets	1,916	2,055
Employer contributions	483	319
Benefits paid	(1,583)	(1,581)
End of period	19,058	18,242	17,449
Funded status of plans	(8,769)	(7,939)
Current liabilities	0	0
Noncurrent liabilities	(8,769)	(7,939)
Liability recognized	(8,769)	(7,939)
Amounts recognized in accumulated other comprehensive income:
Net actuarial (gain) loss	10,689	9,286
Prior service cost	0	0
Total amount recognized	10,689	9,286
Pension Benefits | Summit Materials, LLC
Change in benefit obligations:
Beginning of period	26,181	24,203
Service cost	71	60	67
Interest cost	733	928	898
Actuarial (gain) loss	2,425	2,571
Benefits paid	(1,583)	(1,581)
End of period	27,827	26,181	24,203
Change in fair value of plan assets:
Beginning of period	18,242	17,449
Actual return on plan assets	1,916	2,055
Employer contributions	483	319
Benefits paid	(1,583)	(1,581)
End of period	19,058	18,242	17,449
Funded status of plans	(8,769)	(7,939)
Current liabilities	0	0
Noncurrent liabilities	(8,769)	(7,939)
Liability recognized	(8,769)	(7,939)
Amounts recognized in accumulated other comprehensive income:
Net actuarial (gain) loss	10,689	9,286
Prior service cost	0	0
Total amount recognized	10,689	9,286
Healthcare & Life Ins
Change in benefit obligations:
Beginning of period	9,090	9,203
Service cost	176	166	170
Interest cost	242	321	317
Actuarial (gain) loss	676	165
Benefits paid	(955)	(765)
End of period	9,229	9,090	9,203
Change in fair value of plan assets:
Beginning of period	0	0
Actual return on plan assets	0	0
Employer contributions	955	765
Benefits paid	(955)	(765)
End of period	0	0	0
Funded status of plans	(9,229)	(9,090)
Current liabilities	(636)	(653)
Noncurrent liabilities	(8,593)	(8,437)
Liability recognized	(9,229)	(9,090)
Amounts recognized in accumulated other comprehensive income:
Net actuarial (gain) loss	2,707	2,121
Prior service cost	(1,690)	(1,931)
Total amount recognized	1,017	190
Healthcare & Life Ins | Summit Materials, LLC
Change in benefit obligations:
Beginning of period	9,090	9,203
Service cost	176	166	170
Interest cost	242	321	317
Actuarial (gain) loss	676	165
Benefits paid	(955)	(765)
End of period	9,229	9,090	9,203
Change in fair value of plan assets:
Beginning of period	0	0
Actual return on plan assets	0	0
Employer contributions	955	765
Benefits paid	(955)	(765)
End of period	0	0	$ 0
Funded status of plans	(9,229)	(9,090)
Current liabilities	(636)	(653)
Noncurrent liabilities	(8,593)	(8,437)
Liability recognized	(9,229)	(9,090)
Amounts recognized in accumulated other comprehensive income:
Net actuarial (gain) loss	2,707	2,121
Prior service cost	(1,690)	(1,931)
Total amount recognized	$ 1,017	$ 190

XML

Employee Benefit Plans - Amounts Recognized in Other Comprehensive (Gain) Loss (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Pension Benefits
Amounts recognized in other comprehensive (income) loss:
Net actuarial loss (gain)	$ 1,728	$ 1,760	$ (1,300)
Amortization of prior year service cost	0	0	0
Amortization of gain	(326)	(202)	(312)
Total amount recognized	1,402	1,558	(1,612)
Pension Benefits | Summit Materials, LLC
Amounts recognized in other comprehensive (income) loss:
Net actuarial loss (gain)	1,728	1,760	(1,300)
Amortization of prior year service cost	0	0	0
Amortization of gain	(326)	(202)	(312)
Total amount recognized	1,402	1,558	(1,612)
Healthcare & Life Ins
Amounts recognized in other comprehensive (income) loss:
Net actuarial loss (gain)	675	165	(172)
Amortization of prior year service cost	241	241	241
Amortization of gain	(89)	(39)	(118)
Total amount recognized	827	367	(49)
Healthcare & Life Ins | Summit Materials, LLC
Amounts recognized in other comprehensive (income) loss:
Net actuarial loss (gain)	675	165	(172)
Amortization of prior year service cost	241	241	241
Amortization of gain	(89)	(39)	(118)
Total amount recognized	$ 827	$ 367	$ (49)

XML

Employee Benefit Plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Pension Benefits
Components of net periodic benefit cost:
Service cost	$ 71	$ 60	$ 67
Interest cost	733	928	898
Amortization of gain	326	202	312
Expected return on plan assets	(1,221)	(1,244)	(1,284)
Amortization of prior service credit	0	0	0
Net periodic (expense) benefit cost	(91)	(54)	(7)
Pension Benefits | Summit Materials, LLC
Components of net periodic benefit cost:
Service cost	71	60	67
Interest cost	733	928	898
Amortization of gain	326	202	312
Expected return on plan assets	(1,221)	(1,244)	(1,284)
Amortization of prior service credit	0	0	0
Net periodic (expense) benefit cost	(91)	(54)	(7)
Healthcare & Life Ins
Components of net periodic benefit cost:
Service cost	176	166	170
Interest cost	242	321	317
Amortization of gain	89	39	118
Expected return on plan assets	0	0	0
Amortization of prior service credit	(241)	(241)	(241)
Net periodic (expense) benefit cost	266	285	364
Healthcare & Life Ins | Summit Materials, LLC
Components of net periodic benefit cost:
Service cost	176	166	170
Interest cost	242	321	317
Amortization of gain	89	39	118
Expected return on plan assets	0	0	0
Amortization of prior service credit	(241)	(241)	(241)
Net periodic (expense) benefit cost	$ 266	$ 285	$ 364

XML

Employee Benefit Plans - Weighted-Average Assumptions Used to Determine Benefit Obligations (Detail)	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Expected long-term rate of return on plan assets, benefit obligation	7.00%	7.00%
Pension Benefits | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Expected long-term rate of return on plan assets, benefit obligation	7.00%	7.00%
Pension Benefits | Minimum
Defined Benefit Plan Disclosure [Line Items]
Discount rate	1.84%	2.78%
Pension Benefits | Minimum | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Discount rate	1.84%	2.78%
Pension Benefits | Maximum
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.14%	2.96%
Pension Benefits | Maximum | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.14%	2.96%
Healthcare & Life Ins | Minimum
Defined Benefit Plan Disclosure [Line Items]
Discount rate	1.80%	2.73%
Healthcare & Life Ins | Minimum | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Discount rate	1.80%	2.73%
Healthcare & Life Ins | Maximum
Defined Benefit Plan Disclosure [Line Items]
Discount rate	1.82%	2.79%
Healthcare & Life Ins | Maximum | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Discount rate	1.82%	2.79%

XML

Employee Benefit Plans - Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost (Detail)	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Expected long-term rate of return on plan assets, net periodic benefit cost	7.00%	7.00%	7.00%
Pension Benefits | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Expected long-term rate of return on plan assets, net periodic benefit cost	7.00%	7.00%	7.00%
Pension Benefits | Minimum
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.78%	3.90%	3.23%
Pension Benefits | Minimum | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.78%	3.90%	3.23%
Pension Benefits | Maximum
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.96%	4.02%	3.37%
Pension Benefits | Maximum | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.96%	4.02%	3.37%
Healthcare & Life Ins | Minimum
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.73%	3.87%	3.20%
Healthcare & Life Ins | Minimum | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.73%	3.87%	3.20%
Healthcare & Life Ins | Maximum
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.79%	3.91%	3.25%
Healthcare & Life Ins | Maximum | Summit Materials, LLC
Defined Benefit Plan Disclosure [Line Items]
Discount rate	2.79%	3.91%	3.25%

XML

Employee Benefit Plans - Fair Value of Company's Pension Plans' Assets (Detail) - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	$ 19,058	$ 18,242
Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	19,058	18,242
Intermediate—government
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	3,294	2,482
Intermediate—government | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	3,294	2,482
Intermediate—corporate
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	3,218	1,066
Intermediate—corporate | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	3,218	1,066
Short-term—government
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	705	1,387
Short-term—government | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	705	1,387
Short-term—corporate
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	448	3,173
Short-term—corporate | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	448	3,173
International
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	1,086	1,387
International | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	1,086	1,387
U.S. Large cap value
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	1,516	1,225
U.S. Large cap value | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	1,516	1,225
U.S. Large cap growth
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	1,483	1,167
U.S. Large cap growth | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	1,483	1,167
U.S. Mid cap value
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	631	581
U.S. Mid cap value | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	631	581
U.S. Mid cap growth
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	619	578
U.S. Mid cap growth | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	619	578
U.S. Small cap value
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	663	583
U.S. Small cap value | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	663	583
U.S. Small cap growth
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	650	593
U.S. Small cap growth | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	650	593
Managed Futures
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value		340
Managed Futures | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value		340
International
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	1,227	1,174
International | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	1,227	1,174
Emerging Markets
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	409	394
Emerging Markets | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	409	394
Commodities Broad Basket
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	1,002	1,118
Commodities Broad Basket | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	1,002	1,118
Cash
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	2,107	994
Cash | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	2,107	994
Quoted Prices in Active Markets for Identical Assets (Level 1)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	12,666	10,732
Quoted Prices in Active Markets for Identical Assets (Level 1) | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	12,666	10,732
Quoted Prices in Active Markets for Identical Assets (Level 1) | Intermediate—government
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	3,294	2,482
Quoted Prices in Active Markets for Identical Assets (Level 1) | Intermediate—government | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	3,294	2,482
Quoted Prices in Active Markets for Identical Assets (Level 1) | Intermediate—corporate
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Intermediate—corporate | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term—government
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	705	1,387
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term—government | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	705	1,387
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term—corporate
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term—corporate | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | International
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | International | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Large cap value
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	1,516	1,225
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Large cap value | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	1,516	1,225
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Large cap growth
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	1,483	1,167
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Large cap growth | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	1,483	1,167
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Mid cap value
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	631	581
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Mid cap value | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	631	581
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Mid cap growth
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	619	578
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Mid cap growth | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	619	578
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Small cap value
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	663	583
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Small cap value | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	663	583
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Small cap growth
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	650	593
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Small cap growth | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	650	593
Quoted Prices in Active Markets for Identical Assets (Level 1) | Managed Futures
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value		0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Managed Futures | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value		0
Quoted Prices in Active Markets for Identical Assets (Level 1) | International
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	407	386
Quoted Prices in Active Markets for Identical Assets (Level 1) | International | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	407	386
Quoted Prices in Active Markets for Identical Assets (Level 1) | Emerging Markets
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	409	394
Quoted Prices in Active Markets for Identical Assets (Level 1) | Emerging Markets | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	409	394
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commodities Broad Basket
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	182	362
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commodities Broad Basket | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	182	362
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	2,107	994
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	2,107	994
Observable Inputs (Level 2)
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	6,392	7,510
Observable Inputs (Level 2) | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	6,392	7,510
Observable Inputs (Level 2) | Intermediate—government
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Observable Inputs (Level 2) | Intermediate—government | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Observable Inputs (Level 2) | Intermediate—corporate
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	3,218	1,066
Observable Inputs (Level 2) | Intermediate—corporate | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	3,218	1,066
Observable Inputs (Level 2) | Short-term—government
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Observable Inputs (Level 2) | Short-term—government | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Observable Inputs (Level 2) | Short-term—corporate
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	448	3,173
Observable Inputs (Level 2) | Short-term—corporate | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	448	3,173
Observable Inputs (Level 2) | International
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	1,086	1,387
Observable Inputs (Level 2) | International | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	1,086	1,387
Observable Inputs (Level 2) | U.S. Large cap value
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Observable Inputs (Level 2) | U.S. Large cap value | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Observable Inputs (Level 2) | U.S. Large cap growth
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Observable Inputs (Level 2) | U.S. Large cap growth | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Observable Inputs (Level 2) | U.S. Mid cap value
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Observable Inputs (Level 2) | U.S. Mid cap value | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Observable Inputs (Level 2) | U.S. Mid cap growth
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Observable Inputs (Level 2) | U.S. Mid cap growth | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Observable Inputs (Level 2) | U.S. Small cap value
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Observable Inputs (Level 2) | U.S. Small cap value | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Observable Inputs (Level 2) | U.S. Small cap growth
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Observable Inputs (Level 2) | U.S. Small cap growth | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Observable Inputs (Level 2) | Managed Futures
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value		340
Observable Inputs (Level 2) | Managed Futures | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value		340
Observable Inputs (Level 2) | International
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	820	788
Observable Inputs (Level 2) | International | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	820	788
Observable Inputs (Level 2) | Emerging Markets
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Observable Inputs (Level 2) | Emerging Markets | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Observable Inputs (Level 2) | Commodities Broad Basket
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	820	756
Observable Inputs (Level 2) | Commodities Broad Basket | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	820	756
Observable Inputs (Level 2) | Cash
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	0	0
Observable Inputs (Level 2) | Cash | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Total fair value	$ 0	$ 0

XML

Employee Benefit Plans - Estimated Benefit Payments (Detail) $ in Thousands	Jan. 02, 2021 USD ($)
Pension Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
2021	$ 1,692
2022	1,693
2023	1,696
2024	1,655
2025	1,613
2026 - 2030	7,597
Pension Benefits | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
2021	1,692
2022	1,693
2023	1,696
2024	1,655
2025	1,613
2026 - 2030	7,597
Healthcare & Life Ins
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
2021	636
2022	630
2023	617
2024	619
2025	627
2026 - 2030	3,139
Healthcare & Life Ins | Summit Materials, LLC
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
2021	636
2022	630
2023	617
2024	619
2025	627
2026 - 2030	$ 3,139

XML

Employee Benefit Plans - Multiemployer Plans (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Multiemployer Plans [Line Items]
Contributions of Company	$ 120	$ 135
Construction Industry Laborers Pension Fund
Multiemployer Plans [Line Items]
Contributions of Company	100	112
Operating Engineers Local 101 Pension Plan
Multiemployer Plans [Line Items]
Contributions of Company	20	23
Summit Materials, LLC
Multiemployer Plans [Line Items]
Contributions of Company	120	135
Summit Materials, LLC | Construction Industry Laborers Pension Fund
Multiemployer Plans [Line Items]
Contributions of Company	100	112
Summit Materials, LLC | Operating Engineers Local 101 Pension Plan
Multiemployer Plans [Line Items]
Contributions of Company	$ 20	$ 23

XML

Accrued Mining and Landfill Reclamation - Narrative (Detail) - USD ($) $ in Millions	Jan. 02, 2021	Dec. 28, 2019
Asset Retirement Obligations [Line Items]
Anticipated costs	$ 112.8	$ 97.4
Accrued expenses
Asset Retirement Obligations [Line Items]
Asset retirement obligation, current	10.0	7.9
Summit Materials, LLC
Asset Retirement Obligations [Line Items]
Anticipated costs	112.8	97.4
Summit Materials, LLC | Accrued expenses
Asset Retirement Obligations [Line Items]
Asset retirement obligation, current	$ 10.0	$ 7.9

XML

Accrued Mining and Landfill Reclamation - Activity for Asset Retirement Obligations (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Asset Retirement Obligation, Activity
Beginning balance	$ 36,676	$ 30,999
Acquired obligations	861	805
Change in cost estimate	6,523	4,468
Settlement of reclamation obligations	(3,095)	(1,812)
Accretion expense	2,638	2,216	$ 1,605
Ending balance	43,603	36,676	30,999
Summit Materials, LLC
Asset Retirement Obligation, Activity
Beginning balance	36,676	30,999
Acquired obligations	861	805
Change in cost estimate	6,523	4,468
Settlement of reclamation obligations	(3,095)	(1,812)
Accretion expense	2,638	2,216	1,605
Ending balance	$ 43,603	$ 36,676	$ 30,999

XML

Commitments and Contingencies - Narrative (Details)	12 Months Ended
	Jan. 02, 2021
Loss Contingencies [Line Items]
Term of purchase commitments	1 year
Summit Materials, LLC
Loss Contingencies [Line Items]
Term of purchase commitments	1 year

XML

Leases - Operating and Finance Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019
Lease, Cost [Abstract]
Operating lease cost	$ 10,134	$ 10,451
Variable lease cost	316	423
Short-term lease cost	44,066	38,417
Financing lease cost:
Amortization of right-of-use assets	12,598	11,062
Interest on lease liabilities	3,068	3,171
Total lease cost	70,182	63,524
Operating leases:
Operating lease right-of-use assets	28,543	32,777
Current operating lease liabilities	8,188	8,427
Noncurrent operating lease liabilities	21,500	25,381
Total operating lease liabilities	29,688	33,808
Finance leases:
Property and equipment, gross	92,679	82,660
Less accumulated depreciation	$ (32,828)	(24,907)
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization
Property and equipment, net	$ 59,851	57,753
Current finance lease liabilities	24,601	16,007
Long-term finance lease liabilities	31,727	40,410
Total finance lease liabilities	$ 56,328	$ 56,417
Weighted average remaining lease term (years):
Operating leases	8 years 8 months 12 days	8 years 7 months 6 days
Finance lease	2 years 4 months 24 days	2 years 7 months 6 days
Weighted average discount rate:
Operating leases	5.30%	5.50%
Finance lease	5.20%	5.50%
Operating Leases
2021	$ 9,491
2022	6,088
2023	4,663
2024	2,863
2025	1,781
Thereafter	12,961
Total lease payments	37,847
Less imputed interest	(8,159)
Finance Leases
2021	26,742
2022	18,603
2023	7,053
2024	3,207
2025	2,573
Thereafter	2,831
Total lease payments	61,009
Less imputed interest	(4,681)
Summit Materials, LLC
Lease, Cost [Abstract]
Operating lease cost	10,134	$ 10,451
Variable lease cost	316	423
Short-term lease cost	44,066	38,417
Financing lease cost:
Amortization of right-of-use assets	12,598	11,062
Interest on lease liabilities	3,068	3,171
Total lease cost	70,182	63,524
Operating leases:
Operating lease right-of-use assets	28,543	32,777
Current operating lease liabilities	8,188	8,427
Noncurrent operating lease liabilities	21,500	25,381
Total operating lease liabilities	29,688	33,808
Finance leases:
Property and equipment, gross	92,679	82,660
Less accumulated depreciation	$ (32,828)	(24,907)
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization
Property and equipment, net	$ 59,851	57,753
Current finance lease liabilities	24,601	16,007
Long-term finance lease liabilities	31,727	40,410
Total finance lease liabilities	$ 56,328	$ 56,417
Weighted average remaining lease term (years):
Operating leases	8 years 8 months 12 days	8 years 7 months 6 days
Finance lease	2 years 4 months 24 days	2 years 7 months 6 days
Weighted average discount rate:
Operating leases	5.30%	5.50%
Finance lease	5.20%	5.50%
Operating Leases
2021	$ 9,491
2022	6,088
2023	4,663
2024	2,863
2025	1,781
Thereafter	12,961
Total lease payments	37,847
Less imputed interest	(8,159)
Finance Leases
2021	26,742
2022	18,603
2023	7,053
2024	3,207
2025	2,573
Thereafter	2,831
Total lease payments	61,009
Less imputed interest	$ (4,681)

XML

Leases - Narrative (Detail) - USD ($) $ in Millions	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Operating Leased Assets [Line Items]
Royalty expense recorded in cost of revenue	$ 29.2	$ 24.3	$ 20.1
Summit Materials, LLC
Operating Leased Assets [Line Items]
Royalty expense recorded in cost of revenue	$ 29.2	$ 24.3	$ 20.1

XML

Leases - Schedule of Minimum Contractual Agreements Under Royalty Agreements (Details) $ in Thousands	Jan. 02, 2021 USD ($)
Royalty Agreements
2021	$ 9,916
2022	9,880
2023	9,594
2024	9,295
2025	9,052
Summit Materials, LLC
Royalty Agreements
2021	9,916
2022	9,880
2023	9,594
2024	9,295
2025	$ 9,052

XML

Fair Value of Financial Instruments - Fair Value Measurements (Details) - Level 3 - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Current portion of acquisition-related liabilities and Accrued expenses - Contingent consideration	$ 654	$ 1,967
Acquisition-related liabilities and Other noncurrent liabilities - Contingent consideration	1,209	1,302
Summit Materials, LLC
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Current portion of acquisition-related liabilities and Accrued expenses - Contingent consideration	654	1,967
Acquisition-related liabilities and Other noncurrent liabilities - Contingent consideration	$ 1,209	$ 1,302

XML

Fair Value of Financial Instruments - Carrying Value and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019
Financial Instruments
Current portion of debt	$ 6,354	$ 7,942
Summit Materials, LLC
Financial Instruments
Current portion of debt	6,354	7,942
Level 1
Financial Instruments
Current portion of debt		7,900
Level 1 | Fair Value
Financial Instruments
Long-term debt	1,971,087	1,918,720
Current portion of debt	6,400
Level 1 | Carrying Value
Financial Instruments
Long-term debt	1,915,425	1,872,273
Level 1 | Summit Materials, LLC
Financial Instruments
Current portion of debt	6,400	7,900
Level 1 | Summit Materials, LLC | Fair Value
Financial Instruments
Long-term debt	1,971,087	1,918,720
Level 1 | Summit Materials, LLC | Carrying Value
Financial Instruments
Long-term debt	1,915,425	1,872,273
Level 3 | Fair Value
Financial Instruments
Current portion of deferred consideration and noncompete obligations	9,611	30,733
Long term portion of deferred consideration and noncompete obligations	11,037	18,499
Level 3 | Carrying Value
Financial Instruments
Current portion of deferred consideration and noncompete obligations	9,611	30,733
Long term portion of deferred consideration and noncompete obligations	11,037	18,499
Level 3 | Summit Materials, LLC | Fair Value
Financial Instruments
Current portion of deferred consideration and noncompete obligations	7,173	28,233
Long term portion of deferred consideration and noncompete obligations	11,037	16,364
Level 3 | Summit Materials, LLC | Carrying Value
Financial Instruments
Current portion of deferred consideration and noncompete obligations	7,173	28,233
Long term portion of deferred consideration and noncompete obligations	$ 11,037	$ 16,364

XML

Fair Value of Financial Instruments - Narrative (Details) - Discount Rate - Level 3	Jan. 02, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate	0.095
Summit Materials, LLC
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount rate	0.095

XML

Segment Information - Narrative (Details)	12 Months Ended
	Jan. 02, 2021 segment
Segment Reporting Information [Line Items]
Number of operating segments	3
Number of reportable segments	3
Summit Materials, LLC
Segment Reporting Information [Line Items]
Number of operating segments	3
Number of reportable segments	3

XML

Segment Information - Financial Data (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Segment Reporting Information [Line Items]
Revenue	$ 2,332,451	$ 2,222,140	$ 2,101,002
Income from operations before taxes	129,055	78,224	96,077
Interest expense	103,595	116,509	116,548
Depreciation, depletion and amortization	218,682	214,886	203,305
Accretion	2,638	2,216	1,605
Loss on debt financings	4,064	14,565	149
Tax receivable agreement (benefit) expense	(7,559)	16,237	(22,684)
Gain on sale of business	0	0	(12,108)
Transaction costs	2,747	2,222	4,238
Non-cash compensation	28,857	20,403	25,378
Other	2,957	(3,800)	(6,247)
Total Adjusted EBITDA	485,036	461,462	406,261
Total purchases of property, plant and equipment	177,249	177,495	220,685
Total depreciation, depletion, amortization and accretion	221,320	217,102	204,910
Total assets	4,308,011	4,067,556	3,857,641
Operating segment
Segment Reporting Information [Line Items]
Total purchases of property, plant and equipment	175,099	174,982	213,077
Total depreciation, depletion, amortization and accretion	217,338	213,106	202,288
Total assets	3,657,959	3,537,047	3,501,727
Corporate and other
Segment Reporting Information [Line Items]
Total Adjusted EBITDA	(41,247)	(34,565)	(32,164)
Total purchases of property, plant and equipment	2,150	2,513	7,608
Total depreciation, depletion, amortization and accretion	3,982	3,996	2,622
Total assets	650,052	530,509	355,914
West
Segment Reporting Information [Line Items]
Revenue	1,262,196	1,122,338	1,117,066
West | Operating segment
Segment Reporting Information [Line Items]
Total Adjusted EBITDA	271,052	204,964	188,999
Total purchases of property, plant and equipment	67,500	71,397	120,657
Total depreciation, depletion, amortization and accretion	93,866	93,256	91,794
Total assets	1,503,382	1,379,684	1,370,501
East
Segment Reporting Information [Line Items]
Revenue	799,633	809,098	703,147
East | Operating segment
Segment Reporting Information [Line Items]
Total Adjusted EBITDA	162,275	187,625	138,032
Total purchases of property, plant and equipment	92,528	77,894	64,384
Total depreciation, depletion, amortization and accretion	86,205	81,403	75,433
Total assets	1,303,742	1,288,835	1,253,640
Cement
Segment Reporting Information [Line Items]
Revenue	270,622	290,704	280,789
Cement | Operating segment
Segment Reporting Information [Line Items]
Total Adjusted EBITDA	92,956	103,438	111,394
Total purchases of property, plant and equipment	15,071	25,691	28,036
Total depreciation, depletion, amortization and accretion	37,267	38,447	35,061
Total assets	850,835	868,528	877,586
Summit Materials, LLC
Segment Reporting Information [Line Items]
Revenue	2,332,451	2,222,140	2,101,002
Income from operations before taxes	121,800	94,982	74,110
Interest expense	103,291	115,988	115,831
Depreciation, depletion and amortization	218,682	214,886	203,305
Accretion	2,638	2,216	1,605
Loss on debt financings	4,064	14,565	149
Gain on sale of business	0	0	(12,108)
Transaction costs	2,747	2,222	4,238
Non-cash compensation	28,857	20,403	25,378
Other	2,957	(3,800)	(6,247)
Total Adjusted EBITDA	485,036	461,462	406,261
Total purchases of property, plant and equipment	177,249	177,495	220,685
Total depreciation, depletion, amortization and accretion	221,320	217,102	204,910
Total assets	4,077,134	3,856,223	3,633,244
Summit Materials, LLC | Operating segment
Segment Reporting Information [Line Items]
Total purchases of property, plant and equipment	175,099	174,982	213,077
Total depreciation, depletion, amortization and accretion	217,338	213,106	202,288
Total assets	3,657,959	3,537,047	3,501,727
Summit Materials, LLC | Corporate and other
Segment Reporting Information [Line Items]
Total Adjusted EBITDA	(41,247)	(34,565)	(32,164)
Total purchases of property, plant and equipment	2,150	2,513	7,608
Total depreciation, depletion, amortization and accretion	3,982	3,996	2,622
Total assets	419,175	319,176	131,517
Summit Materials, LLC | West
Segment Reporting Information [Line Items]
Revenue	1,262,196	1,122,338	1,117,066
Summit Materials, LLC | West | Operating segment
Segment Reporting Information [Line Items]
Total Adjusted EBITDA	271,052	204,964	188,999
Total purchases of property, plant and equipment	67,500	71,397	120,657
Total depreciation, depletion, amortization and accretion	93,866	93,256	91,794
Total assets	1,503,382	1,379,684	1,370,501
Summit Materials, LLC | East
Segment Reporting Information [Line Items]
Revenue	799,633	809,098	703,147
Summit Materials, LLC | East | Operating segment
Segment Reporting Information [Line Items]
Total Adjusted EBITDA	162,275	187,625	138,032
Total purchases of property, plant and equipment	92,528	77,894	64,384
Total depreciation, depletion, amortization and accretion	86,205	81,403	75,433
Total assets	1,303,742	1,288,835	1,253,640
Summit Materials, LLC | Cement
Segment Reporting Information [Line Items]
Revenue	270,622	290,704	280,789
Summit Materials, LLC | Cement | Operating segment
Segment Reporting Information [Line Items]
Total Adjusted EBITDA	92,956	103,438	111,394
Total purchases of property, plant and equipment	15,071	25,691	28,036
Total depreciation, depletion, amortization and accretion	37,267	38,447	35,061
Total assets	$ 850,835	$ 868,528	$ 877,586

XML

Senior Notes' Guarantor and Non-Guarantor Financial Information - Schedule of Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Thousands	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018	Dec. 30, 2017
Current assets:
Cash and cash equivalents	$ 418,181	$ 311,319
Accounts receivable, net	254,696	253,256
Costs and estimated earnings in excess of billings	8,666	13,088
Inventories	200,308	204,787
Other current assets	11,428	13,831
Total current assets	893,279	796,281
Property, plant and equipment including finance lease right-of-use assets, net	1,850,169	1,747,449
Goodwill	1,201,291	1,199,699	$ 1,192,028
Intangible assets, net	47,852	23,498
Operating lease right-of-use assets	28,543	32,777
Other assets	55,000	55,519
Total assets	4,308,011	4,067,556	3,857,641
Current liabilities:
Current portion of debt	6,354	7,942
Current portion of acquisition-related liabilities	10,265	32,700
Accounts payable	120,813	116,359
Accrued expenses	160,570	120,005
Current operating lease liabilities	8,188	8,427
Billings in excess of costs and estimated earnings	16,499	13,864
Total current liabilities	322,689	299,297
Long-term debt	1,892,347	1,851,057
Acquisition-related liabilities	12,246	19,801
Noncurrent operating lease liabilities	21,500	25,381
Other noncurrent liabilities	121,281	100,282
Total liabilities	2,691,743	2,622,783
Total liabilities and stockholders' equity / member's interest	4,308,011	4,067,556
Summit Materials, LLC
Current assets:
Cash and cash equivalents	418,181	311,319
Accounts receivable, net	254,696	253,256
Intercompany receivables	0	0
Costs and estimated earnings in excess of billings	8,666	13,088
Inventories	200,308	204,787
Other current assets	11,428	13,831
Total current assets	893,279	796,281
Property, plant and equipment including finance lease right-of-use assets, net	1,850,169	1,747,449
Goodwill	1,202,291	1,200,699	1,193,028
Intangible assets, net	47,852	23,498
Operating lease right-of-use assets	28,543	32,777
Other assets	55,000	55,519
Total assets	4,077,134	3,856,223	3,633,244
Current liabilities:
Current portion of debt	6,354	7,942
Current portion of acquisition-related liabilities	7,827	30,200
Accounts payable	121,422	116,970
Accrued expenses	160,801	120,237
Current operating lease liabilities	8,188	8,427
Intercompany payables	0	0
Billings in excess of costs and estimated earnings	16,499	13,864
Total current liabilities	321,091	297,640
Long-term debt	1,892,347	1,851,057
Acquisition-related liabilities	12,246	17,666
Noncurrent operating lease liabilities	21,500	25,381
Other noncurrent liabilities	167,182	151,329
Total liabilities	2,414,366	2,343,073
Total member's interest	1,662,768	1,513,150	$ 1,385,431	$ 1,291,594
Total liabilities and stockholders' equity / member's interest	4,077,134	3,856,223
Summit Materials, LLC | Eliminations
Current assets:
Cash and cash equivalents	(3,641)	(6,477)
Accounts receivable, net	109	(33)
Intercompany receivables	(1,707,752)	(1,385,708)
Costs and estimated earnings in excess of billings	0	0
Inventories	0	0
Other current assets	0	0
Total current assets	(1,711,284)	(1,392,218)
Property, plant and equipment including finance lease right-of-use assets, net	0	0
Goodwill	0	0
Intangible assets, net	0	0
Operating lease right-of-use assets	0	0
Other assets	(4,175,921)	(3,709,690)
Total assets	(5,887,205)	(5,101,908)
Current liabilities:
Current portion of debt	0	0
Current portion of acquisition-related liabilities	0	0
Accounts payable	109	(33)
Accrued expenses	(3,641)	(6,477)
Current operating lease liabilities	0	0
Intercompany payables	(1,707,752)	(1,385,708)
Billings in excess of costs and estimated earnings	0	0
Total current liabilities	(1,711,284)	(1,392,218)
Long-term debt	0	0
Acquisition-related liabilities	0	0
Noncurrent operating lease liabilities	0	0
Other noncurrent liabilities	(164,421)	(137,018)
Total liabilities	(1,875,705)	(1,529,236)
Total member's interest	(4,011,500)	(3,572,672)
Total liabilities and stockholders' equity / member's interest	(5,887,205)	(5,101,908)
Issuers | Summit Materials, LLC | Reportable Legal Entities
Current assets:
Cash and cash equivalents	401,074	302,474
Accounts receivable, net	4	0
Intercompany receivables	404,459	443,323
Costs and estimated earnings in excess of billings	0	0
Inventories	0	0
Other current assets	2,840	1,763
Total current assets	808,377	747,560
Property, plant and equipment including finance lease right-of-use assets, net	9,410	11,602
Goodwill	0	0
Intangible assets, net	0	0
Operating lease right-of-use assets	2,615	3,316
Other assets	4,022,729	3,596,161
Total assets	4,843,131	4,358,639
Current liabilities:
Current portion of debt	6,354	7,942
Current portion of acquisition-related liabilities	0	0
Accounts payable	3,889	4,588
Accrued expenses	54,108	51,043
Current operating lease liabilities	913	764
Intercompany payables	1,215,043	922,356
Billings in excess of costs and estimated earnings	0	0
Total current liabilities	1,280,307	986,693
Long-term debt	1,892,347	1,851,057
Acquisition-related liabilities	0	0
Noncurrent operating lease liabilities	2,567	3,480
Other noncurrent liabilities	5,142	4,259
Total liabilities	3,180,363	2,845,489
Total member's interest	1,662,768	1,513,150
Total liabilities and stockholders' equity / member's interest	4,843,131	4,358,639
100% Owned Guarantors | Summit Materials, LLC | Reportable Legal Entities
Current assets:
Cash and cash equivalents	10,287	5,488
Accounts receivable, net	230,199	234,053
Intercompany receivables	1,303,293	942,385
Costs and estimated earnings in excess of billings	7,504	12,291
Inventories	193,417	199,794
Other current assets	6,797	10,308
Total current assets	1,751,497	1,404,319
Property, plant and equipment including finance lease right-of-use assets, net	1,746,045	1,674,443
Goodwill	1,142,083	1,142,063
Intangible assets, net	47,852	23,498
Operating lease right-of-use assets	21,880	24,551
Other assets	207,699	168,314
Total assets	4,917,056	4,437,188
Current liabilities:
Current portion of debt	0	0
Current portion of acquisition-related liabilities	7,827	30,200
Accounts payable	108,805	103,812
Accrued expenses	106,320	72,970
Current operating lease liabilities	6,114	6,571
Intercompany payables	485,401	447,827
Billings in excess of costs and estimated earnings	15,508	12,183
Total current liabilities	729,975	673,563
Long-term debt	0	0
Acquisition-related liabilities	12,246	17,666
Noncurrent operating lease liabilities	16,062	18,047
Other noncurrent liabilities	208,540	203,919
Total liabilities	966,823	913,195
Total member's interest	3,950,233	3,523,993
Total liabilities and stockholders' equity / member's interest	4,917,056	4,437,188
Non-Guarantors | Summit Materials, LLC | Reportable Legal Entities
Current assets:
Cash and cash equivalents	10,461	9,834
Accounts receivable, net	24,384	19,236
Intercompany receivables	0	0
Costs and estimated earnings in excess of billings	1,162	797
Inventories	6,891	4,993
Other current assets	1,791	1,760
Total current assets	44,689	36,620
Property, plant and equipment including finance lease right-of-use assets, net	94,714	61,404
Goodwill	60,208	58,636
Intangible assets, net	0	0
Operating lease right-of-use assets	4,048	4,910
Other assets	493	734
Total assets	204,152	162,304
Current liabilities:
Current portion of debt	0	0
Current portion of acquisition-related liabilities	0	0
Accounts payable	8,619	8,603
Accrued expenses	4,014	2,701
Current operating lease liabilities	1,161	1,092
Intercompany payables	7,308	15,525
Billings in excess of costs and estimated earnings	991	1,681
Total current liabilities	22,093	29,602
Long-term debt	0	0
Acquisition-related liabilities	0	0
Noncurrent operating lease liabilities	2,871	3,854
Other noncurrent liabilities	117,921	80,169
Total liabilities	142,885	113,625
Total member's interest	61,267	48,679
Total liabilities and stockholders' equity / member's interest	$ 204,152	$ 162,304

XML

Senior Notes' Guarantor and Non-Guarantor Financial Information - Schedule of Condensed Consolidating Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Condensed Financial Statements, Captions [Line Items]
Revenue	$ 2,332,451	$ 2,222,140	$ 2,101,002
Cost of revenue	1,583,996	1,526,332	1,475,779
Depreciation, depletion, amortization and accretion	221,320	217,102	204,910
Operating income	225,173	213,558	162,466
Gain on sale of business	0	0	(12,108)
Income from operations before taxes	129,055	78,224	96,077
Income tax expense (benefit)	(12,185)	17,101	59,747
Net income attributable to Summit Inc.	137,967	59,066	33,906
Comprehensive income (loss) income attributable to member of Summit Materials, LLC	139,722	59,833	29,201
Summit Materials, LLC
Condensed Financial Statements, Captions [Line Items]
Revenue	2,332,451	2,222,140	2,101,002
Cost of revenue	1,583,996	1,526,332	1,475,779
General and administrative expenses	301,962	265,148	257,847
Depreciation, depletion, amortization and accretion	221,320	217,102	204,910
Operating income	225,173	213,558	162,466
Other (income) loss, net	82	2,588	(15,367)
Interest expense (income)	103,291	115,988	115,831
Gain on sale of business	0	0	(12,108)
Income from operations before taxes	121,800	94,982	74,110
Income tax expense (benefit)	1,063	6,385	10,273
Net income attributable to Summit Inc.	120,737	88,597	63,837
Comprehensive income (loss) income attributable to member of Summit Materials, LLC	123,125	91,242	57,356
Summit Materials, LLC | Eliminations
Condensed Financial Statements, Captions [Line Items]
Revenue	(17,166)	(12,196)	(6,084)
Cost of revenue	(17,166)	(12,196)	(6,084)
General and administrative expenses	0	0	0
Depreciation, depletion, amortization and accretion	0	0	0
Operating income	0	0	0
Other (income) loss, net	331,667	291,662	247,657
Interest expense (income)	0	0	0
Gain on sale of business			0
Income from operations before taxes	(331,667)	(291,662)	(247,657)
Income tax expense (benefit)	0	0	0
Net income attributable to Summit Inc.	(331,667)	(291,662)	(247,657)
Comprehensive income (loss) income attributable to member of Summit Materials, LLC	(329,279)	(289,017)	(254,138)
Summit Materials, LLC | Issuers | Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Revenue	0	0	0
Cost of revenue	0	0	0
General and administrative expenses	72,504	58,099	62,376
Depreciation, depletion, amortization and accretion	3,983	3,997	2,622
Operating income	(76,487)	(62,096)	(64,998)
Other (income) loss, net	(328,914)	(279,517)	(249,204)
Interest expense (income)	130,176	127,734	118,857
Gain on sale of business			0
Income from operations before taxes	122,251	89,687	65,349
Income tax expense (benefit)	1,514	1,090	1,512
Net income attributable to Summit Inc.	120,737	88,597	63,837
Comprehensive income (loss) income attributable to member of Summit Materials, LLC	123,125	91,242	57,356
Summit Materials, LLC | 100% Owned Guarantors | Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Revenue	2,259,865	2,139,457	2,018,428
Cost of revenue	1,542,586	1,473,124	1,416,222
General and administrative expenses	217,897	195,683	184,917
Depreciation, depletion, amortization and accretion	210,038	207,277	197,406
Operating income	289,344	263,373	219,883
Other (income) loss, net	(2,473)	(8,767)	(14,643)
Interest expense (income)	(31,402)	(16,561)	(7,818)
Gain on sale of business			(12,108)
Income from operations before taxes	323,219	288,701	254,452
Income tax expense (benefit)	(4,737)	3,377	8,226
Net income attributable to Summit Inc.	327,956	285,324	246,226
Comprehensive income (loss) income attributable to member of Summit Materials, LLC	330,185	287,395	243,359
Summit Materials, LLC | Non-Guarantors | Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Revenue	89,752	94,879	88,658
Cost of revenue	58,576	65,404	65,641
General and administrative expenses	11,561	11,366	10,554
Depreciation, depletion, amortization and accretion	7,299	5,828	4,882
Operating income	12,316	12,281	7,581
Other (income) loss, net	(198)	(790)	823
Interest expense (income)	4,517	4,815	4,792
Gain on sale of business			0
Income from operations before taxes	7,997	8,256	1,966
Income tax expense (benefit)	4,286	1,918	535
Net income attributable to Summit Inc.	3,711	6,338	1,431
Comprehensive income (loss) income attributable to member of Summit Materials, LLC	$ (906)	$ 1,622	$ 10,779

XML

Senior Notes' Guarantor and Non-Guarantor Financial Information - Schedule of Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Jan. 02, 2021	Dec. 28, 2019	Dec. 29, 2018
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	$ 408,869	$ 337,184	$ 209,368
Cash flow from investing activities:
Acquisitions, net of cash acquired	(123,477)	(5,392)	(246,017)
Purchase of property, plant and equipment	(177,249)	(177,495)	(220,685)
Proceeds from the sale of property, plant, and equipment	14,018	21,173	21,635
Proceeds from sale of business	0	0	21,564
Other	1,121	(1,095)	3,804
Net cash used for investing activities	(285,587)	(162,809)	(419,699)
Cash flow from financing activities:
Net proceeds from debt issuance	700,000	300,000	64,500
Payments on long-term debt	(674,045)	(270,229)	(85,042)
Payments on acquisition-related liabilities	(33,257)	(33,883)	(36,504)
Debt issuance costs	(9,605)	(6,312)	(550)
Distributions from partnership	0	0	(69)
Other	(907)	(502)	(1,943)
Net cash (used in) provided by financing activities	(16,771)	8,150	(43,993)
Impact of foreign currency on cash	351	286	(724)
Net increase in cash	106,862	182,811	(255,048)
Cash and cash equivalents—beginning of period	311,319	128,508	383,556
Cash and cash equivalents—end of period	418,181	311,319	128,508
Summit Materials, LLC
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	408,869	337,184	209,368
Cash flow from investing activities:
Acquisitions, net of cash acquired	(123,477)	(5,392)	(246,017)
Purchase of property, plant and equipment	(177,249)	(177,495)	(220,685)
Proceeds from the sale of property, plant, and equipment	14,018	21,173	21,635
Proceeds from sale of business	0	0	21,564
Other	1,121	(1,095)	3,804
Net cash used for investing activities	(285,587)	(162,809)	(419,699)
Cash flow from financing activities:
Proceeds from investment by member	1,043	19,076	15,615
Net proceeds from debt issuance	700,000	300,000	64,500
Loans received from and payments made on loans from other Summit Companies	0	0	0
Payments on long-term debt	(674,045)	(270,229)	(85,042)
Payments on acquisition-related liabilities	(30,757)	(31,383)	(34,004)
Debt issuance costs	(9,605)	(6,312)	(550)
Distributions from partnership	(2,500)	(2,500)	(2,569)
Other	(907)	(502)	(1,943)
Net cash (used in) provided by financing activities	(16,771)	8,150	(43,993)
Impact of foreign currency on cash	351	286	(724)
Net increase in cash	106,862	182,811	(255,048)
Cash and cash equivalents—beginning of period	311,319	128,508	383,556
Cash and cash equivalents—end of period	418,181	311,319	128,508
Summit Materials, LLC | Eliminations
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	0	0	0
Cash flow from investing activities:
Acquisitions, net of cash acquired	0	0	0
Purchase of property, plant and equipment	0	0	0
Proceeds from the sale of property, plant, and equipment	0	0	0
Proceeds from sale of business			0
Other	0	0	0
Net cash used for investing activities	0	0	0
Cash flow from financing activities:
Proceeds from investment by member	0	0	0
Net proceeds from debt issuance	0	0	0
Loans received from and payments made on loans from other Summit Companies	2,836	(1,607)	7,502
Payments on long-term debt	0	0	0
Payments on acquisition-related liabilities	0	0	0
Debt issuance costs	0	0	0
Distributions from partnership	0	0	0
Other	0	0	0
Net cash (used in) provided by financing activities	2,836	(1,607)	7,502
Impact of foreign currency on cash	0	0	0
Net increase in cash	2,836	(1,607)	7,502
Cash and cash equivalents—beginning of period	(6,477)	(4,870)	(12,372)
Cash and cash equivalents—end of period	(3,641)	(6,477)	(4,870)
Issuers | Summit Materials, LLC | Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	(135,895)	(112,019)	(142,315)
Cash flow from investing activities:
Acquisitions, net of cash acquired	0	0	0
Purchase of property, plant and equipment	(2,150)	(2,513)	(7,607)
Proceeds from the sale of property, plant, and equipment	0	0	0
Proceeds from sale of business			0
Other	0	0	0
Net cash used for investing activities	(2,150)	(2,513)	(7,607)
Cash flow from financing activities:
Proceeds from investment by member	(91,142)	(21,614)	(146,533)
Net proceeds from debt issuance	700,000	300,000	64,500
Loans received from and payments made on loans from other Summit Companies	298,656	287,029	51,696
Payments on long-term debt	(657,942)	(256,354)	(69,265)
Payments on acquisition-related liabilities	0	0	0
Debt issuance costs	(9,605)	(6,312)	(550)
Distributions from partnership	(2,500)	(2,500)	(2,569)
Other	(822)	(462)	(879)
Net cash (used in) provided by financing activities	236,645	299,787	(103,600)
Impact of foreign currency on cash	0	0	0
Net increase in cash	98,600	185,255	(253,522)
Cash and cash equivalents—beginning of period	302,474	117,219	370,741
Cash and cash equivalents—end of period	401,074	302,474	117,219
100% Owned Guarantors | Summit Materials, LLC | Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	502,595	431,323	340,401
Cash flow from investing activities:
Acquisitions, net of cash acquired	(92,085)	(5,392)	(246,017)
Purchase of property, plant and equipment	(173,228)	(163,652)	(188,435)
Proceeds from the sale of property, plant, and equipment	13,935	21,083	21,263
Proceeds from sale of business			21,564
Other	1,121	(1,095)	3,804
Net cash used for investing activities	(250,257)	(149,056)	(387,821)
Cash flow from financing activities:
Proceeds from investment by member	87,925	40,690	162,148
Net proceeds from debt issuance	0	0	0
Loans received from and payments made on loans from other Summit Companies	(288,711)	(280,836)	(65,845)
Payments on long-term debt	(15,911)	(13,650)	(15,662)
Payments on acquisition-related liabilities	(30,757)	(31,383)	(34,004)
Debt issuance costs	0	0	0
Distributions from partnership	0	0	0
Other	(85)	(40)	(1,031)
Net cash (used in) provided by financing activities	(247,539)	(285,219)	45,606
Impact of foreign currency on cash	0	0	0
Net increase in cash	4,799	(2,952)	(1,814)
Cash and cash equivalents—beginning of period	5,488	8,440	10,254
Cash and cash equivalents—end of period	10,287	5,488	8,440
Non-Guarantors | Summit Materials, LLC | Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	42,169	17,880	11,282
Cash flow from investing activities:
Acquisitions, net of cash acquired	(31,392)	0	0
Purchase of property, plant and equipment	(1,871)	(11,330)	(24,643)
Proceeds from the sale of property, plant, and equipment	83	90	372
Proceeds from sale of business			0
Other	0	0	0
Net cash used for investing activities	(33,180)	(11,240)	(24,271)
Cash flow from financing activities:
Proceeds from investment by member	4,260	0	0
Net proceeds from debt issuance	0	0	0
Loans received from and payments made on loans from other Summit Companies	(12,781)	(4,586)	6,647
Payments on long-term debt	(192)	(225)	(115)
Payments on acquisition-related liabilities	0	0	0
Debt issuance costs	0	0	0
Distributions from partnership	0	0	0
Other	0	0	(33)
Net cash (used in) provided by financing activities	(8,713)	(4,811)	6,499
Impact of foreign currency on cash	351	286	(724)
Net increase in cash	627	2,115	(7,214)
Cash and cash equivalents—beginning of period	9,834	7,719	14,933
Cash and cash equivalents—end of period	$ 10,461	$ 9,834	$ 7,719

XML

Label	Element	Value
Stock Issued During Period, Value, Stock Options Exercised	us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised	$ 1,043,000
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue	28,857,000
Stock Issued During Period, Value, Conversion of Units	us-gaap_StockIssuedDuringPeriodValueConversionOfUnits	0
Other Equity Activity, Value	sum_OtherEquityActivityValue	(1,458,000)
Noncontrolling Interest In Lp [Member]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	3,273,000
Stock Issued During Period, Value, Conversion of Units	us-gaap_StockIssuedDuringPeriodValueConversionOfUnits	(2,230,000)
Other Comprehensive Income (Loss), Net of Tax	us-gaap_OtherComprehensiveIncomeLossNetOfTax	58,000
AOCI Attributable to Parent [Member]
Other Comprehensive Income (Loss), Net of Tax	us-gaap_OtherComprehensiveIncomeLossNetOfTax	1,755,000
Additional Paid-in Capital [Member]
Stock Issued During Period, Value, Stock Options Exercised	us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised	1,042,000
APIC, Share-based Payment Arrangement, Increase for Cost Recognition	us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue	28,857,000
Stock Issued During Period, Value, Conversion of Units	us-gaap_StockIssuedDuringPeriodValueConversionOfUnits	2,226,000
Other Equity Activity, Value	sum_OtherEquityActivityValue	(1,464,000)
Retained Earnings [Member]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	137,967,000
Common Class A [Member] | Common Stock [Member]
Stock Issued During Period, Value, Stock Options Exercised	us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised	$ 1,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	us-gaap_StockIssuedDuringPeriodSharesStockOptionsExercised	54,517
Other Equity Activity, Shares	sum_OtherEquityActivityShares	650,206
Stock Issued During Period, Value, Conversion of Units	us-gaap_StockIssuedDuringPeriodValueConversionOfUnits	$ 4,000
Other Equity Activity, Value	sum_OtherEquityActivityValue	$ 6,000
Stock Issued During Period, Shares, Conversion of Units	us-gaap_StockIssuedDuringPeriodSharesConversionOfUnits	376,487