Quarterly report pursuant to Section 13 or 15(d)

6. Variable Interest Entity

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6. Variable Interest Entity
 3 Months Ended
Apr. 01, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entity

The financial position and results of operations of AAP are consolidated in our financial statements based on our conclusion that AAP is a variable interest entity due to our contribution in excess of 50% of the total equity, subordinated debt and other forms of financial support. We have provided substantial financial support to fund the operations of AAP since its inception. The financial position and results of operations for AAP are reported in our recycling segment.

 

The following table summarizes the assets and liabilities of AAP as of April 1, 2017 and December 31, 2016:

 

    April 1,
2017		     December 31,
2016		  
Assets                
Current assets   $ 307     $ 438  
Property and equipment, net     7,120       7,322  
Other assets     83       83  
Total assets   $ 7,510     $ 7,843  
Liabilities                
Accounts payable   $ 2,439     $ 1,388  
Accrued expenses     555       523  
Current maturities of long-term debt obligations     734       3,558  
Long-term debt obligations, net of current maturities     3,208       435  
Other liabilities     289       1,126  
Total liabilities   $ 7,225     $ 7,030  

 

(a)    Other liabilities represent loans and advances between ARCA and AAP that are eliminated in consolidation.

 

The following table summarizes the operating results of AAP for the three months and nine months ended April 1, 2017, and April 2, 2016:

 

    Three Months Ended  
    April 1,
2017		     April 2,
2016		  
Revenues   $ 485     $ 1,715  
Gross profit     (117 )     152  
Operating loss     (475 )     (274 )
Net loss     (511 )     (358 )