XML 56 R28.htm IDEA: XBRL DOCUMENT v3.3.1.900
Segment Information
12 Months Ended
Jan. 02, 2016
Segment Information

(21) Segment Information

The Company has three operating segments: the West; East; and Cement segments, which are its reportable segments. These segments are consistent with the Company’s management reporting structure. In the fourth quarter of 2015, we reorganized the operations and management reporting structure of our cement business and East segment operations, resulting in a change to our reportable business segments. We now conduct our cement business separate from our regional segments. As a result, the cement business is a reportable business segment. In addition, we have combined the materials-based businesses centered in Kansas and Missouri with the Kentucky-based operations, creating an expanded East segment and eliminating what was the Central region. These changes did not affect the West segment. Amounts in prior periods have been revised to reflect the current 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, goodwill impairment, management fees, 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 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, 2016, December 27, 2014 and December 28, 2013:

 

     2015      2014      2013  

Revenue:

        

West

   $ 804,503       $ 665,716       $ 426,195   

East

     432,310         432,942         398,302   

Cement

     195,484         105,573         91,704   
  

 

 

    

 

 

    

 

 

 

Total revenue

   $ 1,432,297       $ 1,204,231       $ 916,201   
  

 

 

    

 

 

    

 

 

 

 

     2015      2014      2013  

Adjusted EBITDA

        

West

   $ 150,764       $ 102,272       $ 42,300   

East

     92,303         73,822         67,146   

Cement

     74,845         35,133         36,647   

Corporate and other

     (30,384      (22,194      (16,046
  

 

 

    

 

 

    

 

 

 

Total reportable segments and corporate

     287,528         189,033         130,047   

Interest expense

     84,629         86,742         56,443   

Depreciation, depletion and amortization

     118,321         86,955         72,217   

Accretion

     1,402         871         717   

Initial public offering costs

     28,296         —           —     

Loss on debt financings

     71,631         —           3,115   

Goodwill impairment

     —           —           68,202   

Acquisition transaction expenses

     9,519         8,554         3,990   

Management fees and expenses

     1,046         4,933         2,620   

Non-cash compensation

     5,448         2,235         2,315   

(Gain) loss on disposal and impairment of assets

     (16,561      8,735         12,419   

Other

     2,991         3,344         13,807   
  

 

 

    

 

 

    

 

 

 

Loss from continuing operations before taxes

   $ (19,194    $ (13,336    $ (105,798
  

 

 

    

 

 

    

 

 

 

 

     2015      2014      2013  

Cash paid for capital expenditures:

        

West

   $ 39,896       $ 31,968       $ 21,856   

East

     26,268         23,702         15,189   

Cement

     17,151         15,959         25,594   
  

 

 

    

 

 

    

 

 

 

Total reportable segments

     83,315         71,629         62,639   

Corporate and other

     5,635         4,533         3,360   
  

 

 

    

 

 

    

 

 

 

Total capital expenditures

   $ 88,950       $ 76,162       $ 65,999   
  

 

 

    

 

 

    

 

 

 

 

     2015      2014      2013  

Depreciation, depletion, amortization and accretion:

        

West

   $ 53,727       $ 33,271       $ 24,167   

East

     38,923         38,035         36,489   

Cement

     24,758         15,052         11,812   
  

 

 

    

 

 

    

 

 

 

Total reportable segments

     117,408         86,358         72,468   

Corporate and other

     2,315         1,468         466   
  

 

 

    

 

 

    

 

 

 

Total depreciation, depletion, amortization and accretion

   $ 119,723       $ 87,826       $ 72,934   
  

 

 

    

 

 

    

 

 

 

 

     2015      2014      2013  

Total assets:

        

West

   $ 821,479       $ 771,234       $ 376,190   

East

     545,187         553,843         482,380   

Cement

     843,941         364,351         361,079   
  

 

 

    

 

 

    

 

 

 

Total reportable segments

     2,210,607         1,689,428         1,219,649   

Corporate and other

     185,572         23,225         18,031   
  

 

 

    

 

 

    

 

 

 

Total

   $ 2,396,179       $ 1,712,653       $ 1,237,680   
  

 

 

    

 

 

    

 

 

 

 

     2015      2014      2013  

Revenue by product:*

        

Aggregates

   $ 296,960       $ 227,885       $ 159,508   

Cement

     181,901         94,402         80,757   

Ready-mixed concrete

     350,554         274,970         112,878   

Asphalt

     292,193         278,867         220,060   

Paving and related services

     504,459         530,297         478,280   

Other

     (193,770      (202,190      (135,282
  

 

 

    

 

 

    

 

 

 

Total revenue

   $ 1,432,297       $ 1,204,231       $ 916,201   
  

 

 

    

 

 

    

 

 

 

 

  * 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.

 

Summit Materials, LLC [Member]  
Segment Information

(20) Segment Information

The Company has three operating segments: the West; East; and Cement segments, which are its reportable segments. These segments are consistent with the Company’s management reporting structure. In the fourth quarter of 2015, we reorganized the operations and management reporting structure of our cement business and East segment operations, resulting in a change to our reportable business segments. We now conduct our cement business separate from our regional segments. As a result, the cement business is a reportable business segment. In addition, we have combined the materials-based businesses centered in Kansas and Missouri with the Kentucky-based operations, creating an expanded East segment and eliminating what was the Central region. These changes did not affect the West segment. Amounts in prior periods have been revised to reflect the current 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, goodwill impairment, management fees, 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 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, 2016, December 27, 2014 and December 28, 2013:

 

     2015      2014      2013  

Revenue:

        

West

   $ 804,503       $ 665,716       $ 426,195   

East

     432,310         432,942         398,302   

Cement

     195,484         105,573         91,704   
  

 

 

    

 

 

    

 

 

 

Total revenue

   $ 1,432,297       $ 1,204,231       $ 916,201   
  

 

 

    

 

 

    

 

 

 

 

     2015      2014      2013  

Adjusted EBITDA

        

West

   $ 150,764       $ 102,272       $ 42,300   

East

     92,303         73,822         67,146   

Cement

     74,845         35,133         36,647   

Corporate and other

     (30,384      (22,194      (16,046
  

 

 

    

 

 

    

 

 

 

Total reportable segments and corporate

     287,528         189,033         130,047   

Interest expense

     83,757         86,742         56,443   

Depreciation, depletion and amortization

     118,321         86,955         72,217   

Accretion

     1,402         871         717   

Initial public offering costs

     28,296         —           —     

Loss on debt financings

     71,631         —           3,115   

Goodwill impairment

     —           —           68,202   

Acquisition transaction expenses

     9,519         8,554         3,990   

Management fees and expenses

     1,046         4,933         2,620   

Non-cash compensation

     5,448         2,235         2,315   

(Gain) loss on disposal and impairment of assets

     (16,561      8,735         12,419   

Other

     2,991         3,344         13,807   
  

 

 

    

 

 

    

 

 

 

Loss from continuing operations before taxes

   $ (18,322    $ (13,336    $ (105,798
  

 

 

    

 

 

    

 

 

 

 

     2015      2014      2013  

Cash paid for capital expenditures:

        

West

   $ 39,896       $ 31,968       $ 21,856   

East

     26,268         23,702         15,189   

Cement

     17,151         15,959         25,594   
  

 

 

    

 

 

    

 

 

 

Total reportable segments

     83,315         71,629         62,639   

Corporate and other

     5,635         4,533         3,360   
  

 

 

    

 

 

    

 

 

 

Total capital expenditures

   $ 88,950       $ 76,162       $ 65,999   
  

 

 

    

 

 

    

 

 

 

 

     2015      2014      2013  

Depreciation, depletion, amortization and accretion:

        

West

   $ 53,727       $ 33,271       $ 24,167   

East

     38,923         38,035         36,489   

Cement

     24,758         15,052         11,812   
  

 

 

    

 

 

    

 

 

 

Total reportable segments

     117,408         86,358         72,468   

Corporate and other

     2,315         1,468         466   
  

 

 

    

 

 

    

 

 

 

Total depreciation, depletion, amortization and accretion

   $ 119,723       $ 87,826       $ 72,934   
  

 

 

    

 

 

    

 

 

 

 

     2015      2014      2013  

Total assets:

        

West

   $ 821,479       $ 771,234       $ 376,190   

East

     545,187         553,843         482,380   

Cement

     843,941         364,351         361,079   
  

 

 

    

 

 

    

 

 

 

Total reportable segments

     2,210,607         1,689,428         1,219,649   

Corporate and other

     184,555         23,225         14,765   
  

 

 

    

 

 

    

 

 

 

Total

   $ 2,395,162       $ 1,712,653       $ 1,234,414   
  

 

 

    

 

 

    

 

 

 

 

     2015      2014      2013  

Revenue by product:*

        

Aggregates

   $ 296,960       $ 227,885       $ 159,508   

Cement

     181,901         94,402         80,757   

Ready-mixed concrete

     350,554         274,970         112,878   

Asphalt

     292,193         278,867         220,060   

Paving and related services

     504,459         530,297         478,280   

Other

     (193,770      (202,190      (135,282
  

 

 

    

 

 

    

 

 

 

Total revenue

   $ 1,432,297       $ 1,204,231       $ 916,201   
  

 

 

    

 

 

    

 

 

 

 

  * 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.