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. |
|