v3.22.4
Leases
 12 Months Ended
Dec. 31, 2022
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 we have entered into or reassessed, we combine lease and nonlease components. While we also own mineral leases for mining operations, those leases are outside the scope of ASU No. 2016-2, Leases (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:
202220212020
Operating lease cost$9,543 $10,650 $10,134 
Variable lease cost243 382 316 
Short-term lease cost42,320 42,764 44,066 
Financing lease cost:
Amortization of right-of-use assets5,659 9,902 12,598 
Interest on lease liabilities1,081 2,097 3,068 
Total lease cost$58,846 $65,795 $70,182 
20222021
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets$37,889 $30,150 
Current operating lease liabilities$7,296 $6,497 
Noncurrent operating lease liabilities35,737 28,880 
Total operating lease liabilities$43,033 $35,377 
Finance leases:
Property and equipment, gross$32,119 $68,982 
Less accumulated depreciation(14,992)(31,404)
Property and equipment, net$17,127 $37,578 
Current finance lease liabilities$6,959 $17,624 
Long-term finance lease liabilities7,167 14,982 
Total finance lease liabilities$14,126 $32,606 
20222021
Weighted average remaining lease term (years):
Operating leases9.19.7
Finance lease2.82.3
Weighted average discount rate:
Operating leases4.7 %4.4 %
Finance leases5.3 %5.2 %
Maturities of lease liabilities, as of December 31, 2022, were as follows:
Operating LeasesFinance Leases
2023$9,061 $7,443 
20247,996 2,829 
20256,199 2,415 
20264,959 990 
20274,154 760 
Thereafter21,006 1,083 
Total lease payments53,375 15,520 
Less imputed interest(10,342)(1,394)
Present value of lease payments$43,033 $14,126 
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 December 31, 2022, January 1, 2022 and January 2, 2021 was $33.5 million, $34.8 million and $29.2 million, respectively. Minimum contractual commitments for the subsequent five years under royalty agreements are as follows:

 Royalty
 Agreements
2023$10,794 
202410,431 
202510,202 
20269,060 
20278,468 
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 we have entered into or reassessed, we combine lease and nonlease components. While we also own mineral leases for mining operations, those leases are outside the scope of ASU No. 2016-2, Leases (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:
202220212020
Operating lease cost$9,543 $10,650 $10,134 
Variable lease cost243 382 316 
Short-term lease cost42,320 42,764 44,066 
Financing lease cost:
Amortization of right-of-use assets5,659 9,902 12,598 
Interest on lease liabilities1,081 2,097 3,068 
Total lease cost$58,846 $65,795 $70,182 
20222021
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets$37,889 $30,150 
Current operating lease liabilities$7,296 $6,497 
Noncurrent operating lease liabilities35,737 28,880 
Total operating lease liabilities$43,033 $35,377 
Finance leases:
Property and equipment, gross$32,119 $68,982 
Less accumulated depreciation(14,992)(31,404)
Property and equipment, net$17,127 $37,578 
Current finance lease liabilities$6,959 $17,624 
Long-term finance lease liabilities7,167 14,982 
Total finance lease liabilities$14,126 $32,606 
20222021
Weighted average remaining lease term (years):
Operating leases9.19.7
Finance lease2.82.3
Weighted average discount rate:
Operating leases4.7 %4.4 %
Finance leases5.3 %5.2 %
Maturities of lease liabilities, as of December 31, 2022, were as follows:
Operating LeasesFinance Leases
2023$9,061 $7,443 
20247,996 2,829 
20256,199 2,415 
20264,959 990 
20274,154 760 
Thereafter21,006 1,083 
Total lease payments53,375 15,520 
Less imputed interest(10,342)(1,394)
Present value of lease payments$43,033 $14,126 
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 December 31, 2022, January 1, 2022 and January 2, 2021 was $33.5 million, $34.8 million and $29.2 million, respectively. Minimum contractual commitments for the subsequent five years under royalty agreements are as follows:

 Royalty
 Agreements
2023$10,794 
202410,431 
202510,202 
20269,060 
20278,468 
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 we have entered into or reassessed, we combine lease and nonlease components. While we also own mineral leases for mining operations, those leases are outside the scope of ASU No. 2016-2, Leases (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:
202220212020
Operating lease cost$9,543 $10,650 $10,134 
Variable lease cost243 382 316 
Short-term lease cost42,320 42,764 44,066 
Financing lease cost:
Amortization of right-of-use assets5,659 9,902 12,598 
Interest on lease liabilities1,081 2,097 3,068 
Total lease cost$58,846 $65,795 $70,182 
20222021
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets$37,889 $30,150 
Current operating lease liabilities$7,296 $6,497 
Noncurrent operating lease liabilities35,737 28,880 
Total operating lease liabilities$43,033 $35,377 
Finance leases:
Property and equipment, gross$32,119 $68,982 
Less accumulated depreciation(14,992)(31,404)
Property and equipment, net$17,127 $37,578 
Current finance lease liabilities$6,959 $17,624 
Long-term finance lease liabilities7,167 14,982 
Total finance lease liabilities$14,126 $32,606 
20222021
Weighted average remaining lease term (years):
Operating leases9.19.7
Finance lease2.82.3
Weighted average discount rate:
Operating leases4.7 %4.4 %
Finance leases5.3 %5.2 %
Maturities of lease liabilities, as of December 31, 2022, were as follows:
Operating LeasesFinance Leases
2023$9,061 $7,443 
20247,996 2,829 
20256,199 2,415 
20264,959 990 
20274,154 760 
Thereafter21,006 1,083 
Total lease payments53,375 15,520 
Less imputed interest(10,342)(1,394)
Present value of lease payments$43,033 $14,126 
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 December 31, 2022, January 1, 2022 and January 2, 2021 was $33.5 million, $34.8 million and $29.2 million, respectively. Minimum contractual commitments for the subsequent five years under royalty agreements are as follows:
 
Royalty
Agreements
2023$10,794 
202410,431 
202510,202 
20269,060 
20278,468 
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 we have entered into or reassessed, we combine lease and nonlease components. While we also own mineral leases for mining operations, those leases are outside the scope of ASU No. 2016-2, Leases (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:
202220212020
Operating lease cost$9,543 $10,650 $10,134 
Variable lease cost243 382 316 
Short-term lease cost42,320 42,764 44,066 
Financing lease cost:
Amortization of right-of-use assets5,659 9,902 12,598 
Interest on lease liabilities1,081 2,097 3,068 
Total lease cost$58,846 $65,795 $70,182 
20222021
Supplemental balance sheet information related to leases:
Operating leases:
Operating lease right-of-use assets$37,889 $30,150 
Current operating lease liabilities$7,296 $6,497 
Noncurrent operating lease liabilities35,737 28,880 
Total operating lease liabilities$43,033 $35,377 
Finance leases:
Property and equipment, gross$32,119 $68,982 
Less accumulated depreciation(14,992)(31,404)
Property and equipment, net$17,127 $37,578 
Current finance lease liabilities$6,959 $17,624 
Long-term finance lease liabilities7,167 14,982 
Total finance lease liabilities$14,126 $32,606 
20222021
Weighted average remaining lease term (years):
Operating leases9.19.7
Finance lease2.82.3
Weighted average discount rate:
Operating leases4.7 %4.4 %
Finance leases5.3 %5.2 %
Maturities of lease liabilities, as of December 31, 2022, were as follows:
Operating LeasesFinance Leases
2023$9,061 $7,443 
20247,996 2,829 
20256,199 2,415 
20264,959 990 
20274,154 760 
Thereafter21,006 1,083 
Total lease payments53,375 15,520 
Less imputed interest(10,342)(1,394)
Present value of lease payments$43,033 $14,126 
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 December 31, 2022, January 1, 2022 and January 2, 2021 was $33.5 million, $34.8 million and $29.2 million, respectively. Minimum contractual commitments for the subsequent five years under royalty agreements are as follows:
 
Royalty
Agreements
2023$10,794 
202410,431 
202510,202 
20269,060 
20278,468