v3.22.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Income Taxes [Line Items]  
Components of Income Tax Benefit For the years ended December 31, 2022, January 1, 2022 and January 2, 2021, income taxes consisted of the following:
 
 202220212020
Provision for income taxes:   
Current$15,654 $8,030 $3,827 
Deferred69,891 36,326 (16,012)
Income tax expense (benefit)$85,545 $44,356 $(12,185)
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 2022, 2021 and 2020, respectively, due to the following:
 202220212020
Income tax expense (benefit) at federal statutory tax rate$75,862 $41,273 $27,100 
Less: Income tax benefit at federal statutory tax rate for LLC entities(754)(459)(593)
State and local income taxes12,703 7,287 5,067 
Permanent differences(7,039)(5,493)(3,345)
Effective tax rate change(710)2,317 4,257 
Basis differences from divestitures 3,314 3,766 — 
Unrecognized tax benefits— — (41,548)
Tax receivable agreement (benefit) expense218 28 (6)
Change in valuation allowance(562)— — 
Other2,513 (4,363)(3,117)
Income tax expense (benefit)$85,545 $44,356 $(12,185)
Components of Net Deferred Income Tax Liability
The following table summarizes the components of the net deferred income tax asset (liability) as December 31, 2022 and January 1, 2022: 
 20222021
Deferred tax assets (liabilities):  
Net intangible assets$138,511 $177,220 
Accelerated depreciation(196,936)(199,357)
Net operating loss195,669 224,014 
Investment in limited partnership(44,690)(38,548)
Mining reclamation reserve3,213 3,341 
Working capital (e.g., accrued compensation, prepaid assets)39,231 39,571 
Interest expense limitation carryforward3,101 — 
Less valuation allowance(1,113)(1,675)
Deferred tax assets136,986 204,566 
Less foreign deferred tax liability (included in other noncurrent liabilities)(15,752)(16,939)
Net deferred tax asset$121,234 $187,627 
Summary of Valuation Allowance
 20222021
Valuation Allowance:  
Beginning balance$(1,675)$(1,675)
Release of valuation allowance and other562 — 
Ending balance$(1,113)$(1,675)
Summit Materials, LLC  
Income Taxes [Line Items]  
Components of Income Tax Benefit
For the years ended December 31, 2022, January 1, 2022 and January 2, 2021, income taxes consisted of the following:
 
 202220212020
Provision for income taxes:  
Current$16,280 $8,459 $3,827 
Deferred305 12,490 (2,764)
Income tax expense (benefit)$16,585 $20,949 $1,063 
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 2022, 2021 and 2020, respectively, due to the following:
 
 202220212020
Income tax expense (benefit) at federal statutory tax rate$76,172 $40,303 $25,577 
Less: Income tax benefit at federal statutory tax rate for LLC entities(63,498)(27,821)(17,647)
State and local income taxes4,170 3,604 2,073 
Permanent differences787 427 2,479 
Effective tax rate change(491)201 681 
Basis differences from divestitures 3,314 3,766 — 
Unrecognized tax benefits— — (11,525)
Valuation allowance(562)— — 
Other(3,307)469 (575)
Income tax benefit$16,585 $20,949 $1,063 
Components of Net Deferred Income Tax Liability
The following table summarizes the components of the net deferred income tax asset (liability) as December 31, 2022 and January 1, 2022:
 
 20222021
Deferred tax (liabilities) assets:  
Accelerated depreciation$(54,590)$(65,149)
Net operating loss6,147 11,602 
Investment in limited partnership(24,630)(21,737)
Net intangible assets(3,236)(2,734)
Mining reclamation reserve1,010 1,258 
Working capital (e.g., accrued compensation, prepaid assets)651 1,493 
Interest expense limitation carryforward482 — 
Net deferred tax liabilities(74,166)(75,267)
Less valuation allowance(1,113)(1,675)
Net deferred tax liability$(75,279)$(76,942)
Summary of Valuation Allowance
20222021
Valuation Allowance:
Beginning balance$(1,675)$(1,675)
Release of valuation allowance and other562 — 
Ending balance$(1,113)$(1,675)