Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2018 | May 03, 2018 | |
Document - Entity Information [Abstract] | ||
Entity Registrant Name | DARLING INGREDIENTS INC. | |
Entity Central Index Key | 916,540 | |
Current Fiscal Year End Date | --12-29 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 164,651,745 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 122,869 | $ 106,774 |
Restricted cash | 142 | 142 |
Accounts receivable, net | 413,659 | 391,847 |
Inventories | 373,121 | 358,183 |
Prepaid expenses | 40,707 | 38,326 |
Income taxes refundable | 4,694 | 4,509 |
Other current assets | 15,888 | 56,664 |
Total current assets | 971,080 | 956,445 |
Property, plant and equipment, less accumulated depreciation of $1,133,063 at March 31, 2018 and $1,075,448 at December 30, 2017 | 1,657,609 | 1,645,822 |
Intangible assets, less accumulated amortization of $399,331 at March 31, 2018 and $383,836 at December 30, 2017 | 659,855 | 676,500 |
Goodwill | 1,309,608 | 1,301,093 |
Investment in unconsolidated subsidiaries | 409,135 | 302,038 |
Other assets | 63,037 | 62,284 |
Deferred income taxes | 15,186 | 14,043 |
Total assets | 5,085,510 | 4,958,225 |
Current liabilities: | ||
Current portion of long-term debt | 16,722 | 16,143 |
Accounts payable, principally trade | 188,048 | 217,417 |
Income taxes payable | 11,290 | 12,300 |
Accrued expenses | 290,809 | 313,623 |
Total current liabilities | 506,869 | 559,483 |
Long-term debt, net of current portion | 1,764,423 | 1,698,050 |
Other non-current liabilities | 106,603 | 106,287 |
Deferred income taxes | 268,376 | 266,708 |
Total liabilities | 2,646,271 | 2,630,528 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 250,000,000 shares authorized; 168,046,483 and 167,892,500 shares issued at March 31, 2018 and at December 30, 2017, respectively | 1,680 | 1,679 |
Additional paid-in capital | 1,525,836 | 1,515,614 |
Treasury stock, at cost; 3,398,821 and 3,239,063 shares at March 31, 2018 and at December 30, 2017, respectively | (47,025) | (44,063) |
Accumulated other comprehensive loss | (198,444) | (209,524) |
Retained earnings | 1,083,314 | 981,227 |
Total Darling's stockholders’ equity | 2,365,361 | 2,244,933 |
Noncontrolling interests | 73,878 | 82,764 |
Total stockholders' equity | 2,439,239 | 2,327,697 |
Total liabilities and stockholders' equity | $ 5,085,510 | $ 4,958,225 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Assets: | ||
Property, plant and equipment, accumulated depreciation | $ 1,133,063 | $ 1,075,448 |
Intangible assets, accumulated amortization | $ 399,331 | $ 383,836 |
Stockholders’ equity: | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 168,046,483 | 167,892,500 |
Treasury stock, shares | 3,398,821 | 3,239,063 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 875,374 | $ 878,510 |
Costs and expenses: | ||
Cost of sales and operating expenses | 678,099 | 687,966 |
Selling, general and administrative expenses | 86,902 | 86,923 |
Depreciation and amortization | 78,619 | 71,114 |
Total costs and expenses | 843,620 | 846,003 |
Operating income | 31,754 | 32,507 |
Other expense: | ||
Interest expense | (23,124) | (21,680) |
Foreign currency loss | (1,481) | (264) |
Other expense, net | (2,516) | (2,053) |
Total other expense | (27,121) | (23,997) |
Equity in net income of unconsolidated subsidiaries | 97,154 | 706 |
Income before income taxes | 101,787 | 9,216 |
Income tax expense | 3,712 | 1,818 |
Net income | 98,075 | 7,398 |
Net income attributable to noncontrolling interests | (770) | (1,569) |
Net income attributable to Darling | $ 97,305 | $ 5,829 |
Basic income per share (in dollars per share) | $ 0.59 | $ 0.04 |
Diluted income per share (in dollars per share) | $ 0.58 | $ 0.04 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Net income | $ 98,075 | $ 7,398 |
Other comprehensive income/(loss), net of tax: | ||
Foreign currency translation | 17,295 | 15,679 |
Pension adjustments | 667 | 759 |
Net current-period other comprehensive income | 16,379 | 15,336 |
Total comprehensive income | 114,454 | 22,734 |
Comprehensive income attributable to noncontrolling interests | 1,287 | 1,247 |
Comprehensive income attributable to Darling | 113,167 | 21,487 |
Natural Gas Swap [Member] | ||
Other comprehensive income/(loss), net of tax: | ||
Derivative adjustments | 22 | 0 |
Corn Option [Member] | ||
Other comprehensive income/(loss), net of tax: | ||
Derivative adjustments | $ (1,605) | $ (1,102) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 98,075 | $ 7,398 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 78,619 | 71,114 |
Gain on disposal of property, plant, equipment and other assets | (462) | (125) |
Gain on insurance proceeds from insurance settlements | (503) | 0 |
Deferred taxes | (2,649) | (8,454) |
Increase in long-term pension liability | 159 | 702 |
Stock-based compensation expense | 8,992 | 6,732 |
Deferred loan cost amortization | 2,939 | 2,176 |
Equity in net income of unconsolidated subsidiaries | (97,154) | (706) |
Distributions of earnings from unconsolidated subsidiaries | 0 | 25,000 |
Changes in operating assets and liabilities, net of effects from acquisitions: | ||
Accounts receivable | (14,590) | (753) |
Income taxes refundable/payable | (1,384) | 7,576 |
Inventories and prepaid expenses | (10,182) | (10,660) |
Accounts payable and accrued expenses | (38,422) | (8,365) |
Other | 3,486 | 2,823 |
Net cash provided by operating activities | 26,924 | 94,458 |
Cash flows from investing activities: | ||
Capital expenditures | (56,587) | (62,292) |
Investment in unconsolidated subsidiary | (3,500) | (2,250) |
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | 2,805 | 0 |
Gross proceeds from disposal of property, plant and equipment and other assets | 1,479 | 1,340 |
Proceeds from insurance settlement | 503 | 3,301 |
Payments related to routes and other intangibles | (15) | 0 |
Net cash used by investing activities | (55,315) | (59,901) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 3,876 | 8,649 |
Payments on long-term debt | (9,622) | (9,265) |
Borrowings from revolving credit facility | 135,184 | 47,000 |
Payments on revolving credit facility | (80,019) | (52,327) |
Net cash overdraft financing | (331) | (1,077) |
Deferred loan costs | (1,094) | (1,135) |
Issuance of common stock | 182 | 22 |
Minimum withholding taxes paid on stock awards | (2,018) | (1,995) |
Distributions to noncontrolling interests | 0 | (433) |
Net cash provided/ (used) by financing activities | 46,158 | (10,561) |
Effect of exchange rate changes on cash | (1,672) | 309 |
Net increase in cash, cash equivalents and restricted cash | 16,095 | 24,305 |
Cash, cash equivalents and restricted cash at beginning of period | 106,916 | 114,857 |
Cash, cash equivalents and restricted cash at end of period | 123,011 | 139,162 |
Supplemental disclosure of cash flow information: | ||
Accrued capital expenditures | (1,934) | (2,787) |
Cash paid during the period for: | ||
Interest, net of capitalized interest | 19,142 | 19,022 |
Income taxes, net of refunds | 7,120 | 2,429 |
Debt issued for assets | $ 17 | $ 0 |
General
General | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General The accompanying consolidated financial statements for the three month periods ended March 31, 2018 and April 1, 2017 , have been prepared by Darling Ingredients Inc., a Delaware corporation (“Darling”, and together with its subsidiaries, the “Company”) in accordance with generally accepted accounting principles in the United States (“GAAP”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). The information furnished herein reflects all adjustments (consisting only of normal recurring accruals) that are, in the opinion of management, necessary to present a fair statement of the financial position and operating results of the Company as of and for the respective periods. However, these operating results are not necessarily indicative of the results expected for a full fiscal year. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. However, management of the Company believes, to the best of their knowledge, that the disclosures herein are adequate to make the information presented not misleading. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements contained in the Company’s Form 10-K for the fiscal year ended December 30, 2017 . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Basis of Presentation The consolidated financial statements include the accounts of Darling and its consolidated subsidiaries. Noncontrolling interests represent the outstanding ownership interest in the Company's consolidated subsidiaries that are not owned by the Company. In the accompanying Consolidated Statements of Operations, the noncontrolling interest in net income of the consolidated subsidiaries is shown as an allocation of the Company's net income and is presented separately as “Net income attributable to noncontrolling interests.” In the Company's Consolidated Balance Sheets, noncontrolling interests represent the ownership interests in the Company consolidated subsidiaries' net assets held by parties other than the Company. These ownership interests are presented separately as “Noncontrolling interests” within “Stockholders' Equity.” All significant intercompany balances and transactions have been eliminated in consolidation. (b) Fiscal Periods The Company has a 52 / 53 week fiscal year ending on the Saturday nearest December 31 . Fiscal periods for the consolidated financial statements included herein are as of March 31, 2018 , and include the 13 weeks ended March 31, 2018 , and the 13 weeks ended April 1, 2017 . (c) Cash, Cash Equivalents and Restricted Cash The Company considers all short-term highly liquid instruments, with an original maturity of three months or less, to be cash equivalents. Cash balances are recorded net of book overdrafts when a bank right-of-offset exists. All other book overdrafts are recorded in accounts payable and the change in the related balance is reflected in operating activities on the Consolidated Statement of Cash Flows. In addition, the Company has bank overdrafts, which are considered a form of short-term financing with changes in the related balance reflected in financing activities in the Consolidated Statement of Cash Flows. In November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ( “ ASU ” ) No. 2016-18, Restricted Cash. This ASU amends Topic 230, Statement of Cash Flows , which includes new guidance on the classification and presentation of restricted cash in the statement of cash flows in order to eliminate the discrepancies that currently exist in how companies present these changes. This ASU requires restricted cash to be included with cash and cash equivalents when explaining the changes in cash in the statement of cash flows. The Company adopted this on December 31, 2017 and it did not have a material impact on the Company's consolidated financial statements. Restricted cash represents amounts required to be set aside to cover self-insurance claims and collateral for environmental claims. The following table provides a reconciliation of cash, cash equivalents and restricted cash on the consolidated balance sheet that sum to the total of the same amounts shown in the consolidated statement of cash flows (in thousands): March 31, 2018 December 30, 2017 Cash and cash equivalents $ 122,869 $ 106,774 Restricted cash 142 142 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flow $ 123,011 $ 106,916 (d) Accounts Receivable and Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from customers’ non-payment of trade accounts receivable owed to the Company. These trade receivables arise in the ordinary course of business from sales of raw material, finished product or services to the Company’s customers. The estimate of allowance for doubtful accounts is based upon the Company’s bad debt experience, prevailing market conditions, and aging of trade accounts receivable, among other factors. If the financial condition of the Company’s customers deteriorates, resulting in the customers’ inability to pay the Company’s receivables as they come due, additional allowances for doubtful accounts may be required. The Company has entered into agreements with third party banks to factor certain of the Company's trade receivables in order to enhance working capital by turning trade receivables into cash faster. Under these agreements, the Company will sell certain selected customers trade receivables to the third party banks without recourse for cash less a nominal fee. For the three months ended March 31, 2018, the Company sold approximately $ 18.8 million of its trade receivables and incurred less than approximately $ 0.1 million in fees, which are recorded as interest expense. For the three month ended April 1, 2017, no receivables were factored. (e) Revenue Recognition The Company recognizes revenue on sales when control of the promised finished product is transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for the finished product. Service revenues are recognized in the fiscal month the service occurs. Certain customers may be required to prepay prior to shipment in order to maintain payment protection related to certain foreign and domestic sales. These amounts are recorded as unearned revenue and recognized when control of the promised finished product is transferred to the Company's customer. See Note 18 to the consolidated financial statements. (f) Foreign Currency Translation and Remeasurement Foreign currency translation is included as a component of accumulated other comprehensive loss and reflects the adjustments resulting from translating the foreign currency denominated financial statements of foreign subsidiaries into U.S. dollars. The functional currency of the Company's foreign subsidiaries is the currency of the primary economic environment in which the entity operates, which is generally the local currency of the country. Accordingly, assets and liabilities of the foreign subsidiaries are translated into U.S. dollars at fiscal period end exchange rates, including intercompany foreign currency transactions that are of long-term investment nature. Income and expense items are translated at average exchange rates occurring during the period. Changes in exchange rates that affect cash flows and the related receivables or payables are recognized as transaction gains and losses in determining net income. The Company incurred net foreign currency translation gains of approximately $ 16.8 million and approximately $ 16.0 million for the three months ended March 31, 2018 and April 1, 2017 , respectively. (g) Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. In the consolidated statements of operations, previously reported amounts have been adjusted to reflect the correction of an immaterial classification error in net sales and cost of sales as disclosed in Company’s Form 10-K for the fiscal year ended December 30, 2017 . In addition, previous reported net periodic pension costs have been reclassified in the consolidated statements of operations to conform to current year presentation, as described in Note 13 and previously reported amounts in the consolidated statements of cash flows have been adjusted to reflect the adoption of the presentation of restricted cash. (h) Earnings Per Share Basic income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares including non-vested and restricted shares outstanding during the period. Diluted income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares outstanding during the period increased by dilutive common equivalent shares determined using the treasury stock method. Net Income per Common Share (in thousands, except per share data) Three Months Ended March 31, 2018 April 1, 2017 Income Shares Per Share Income Shares Per Share Basic: Net Income attributable to Darling $ 97,305 164,772 $ 0.59 $ 5,829 164,738 $ 0.04 Diluted: Effect of dilutive securities: Add: Option shares in the money and dilutive effect of non-vested stock awards 5,071 2,012 Less: Pro forma treasury shares (2,101 ) (886 ) Diluted: Net income attributable to Darling $ 97,305 167,742 $ 0.58 $ 5,829 165,864 $ 0.04 For the three months ended March 31, 2018 and April 1, 2017 , respectively, 749,550 and 1,812,518 outstanding stock options were excluded from diluted income per common share as the effect was antidilutive. For the three months ended March 31, 2018 and April 1, 2017 , respectively, 385,216 and 636,445 shares of non-vested stock and stock equivalents were excluded from diluted income per common share as the effect was antidilutive. |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions In January 2018, the Company through a wholly-owned international subsidiary, sold a portion of its interest in a majority owned consolidated subsidiary for approximately $ 2.8 million . This transaction resulted in the foreign subsidiary being deconsolidated and accounted for using the equity method of accounting, effective January 2018. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories A summary of inventories follows (in thousands): March 31, 2018 December 30, 2017 Finished product $ 176,932 $ 171,277 Work in process 107,910 101,540 Raw material 32,648 33,173 Supplies and other 55,631 52,193 $ 373,121 $ 358,183 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Intangible Asset Disclosure Text Block [Abstract] | |
Intangible Assets | Intangible Assets The gross carrying amount of intangible assets not subject to amortization and intangible assets subject to amortization is as follows (in thousands): March 31, 2018 December 30, 2017 Indefinite Lived Intangible Assets Trade names $ 55,473 $ 54,682 55,473 54,682 Finite Lived Intangible Assets: Routes 392,477 397,808 Permits 515,830 512,659 Non-compete agreements 3,890 3,963 Trade names 76,354 76,558 Royalty, consulting, land use rights and leasehold 15,162 14,666 1,003,713 1,005,654 Accumulated Amortization: Routes (140,001 ) (136,592 ) Permits (221,317 ) (211,264 ) Non-compete agreements (2,497 ) (2,387 ) Trade names (31,839 ) (30,235 ) Royalty, consulting, land use rights and leasehold (3,677 ) (3,358 ) (399,331 ) (383,836 ) Total Intangible assets, less accumulated amortization $ 659,855 $ 676,500 Gross intangible routes, permits, trade names, non-compete agreements and other intangibles partially decreased in fiscal 2018 as a result of approximately $ 5.5 million of asset retirements and increased due to foreign currency translation. Amortization expense for the three months ended March 31, 2018 and April 1, 2017 , was approximately $ 19.5 million and $ 19.1 million . |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2018 | |
Intangible Asset Disclosure Text Block [Abstract] | |
Goodwill | Goodwill Changes in the carrying amount of goodwill (in thousands): Feed Ingredients Food Ingredients Fuel Ingredients Total Balance at December 30, 2017 Goodwill $ 848,167 $ 344,471 $ 124,369 $ 1,317,007 Accumulated impairment losses (15,914 ) — — (15,914 ) 832,253 344,471 124,369 1,301,093 Goodwill acquired during year — — — — Foreign currency translation 201 6,560 1,754 8,515 Balance at March 31, 2018 Goodwill 848,368 351,031 126,123 1,325,522 Accumulated impairment losses (15,914 ) — — (15,914 ) $ 832,454 $ 351,031 $ 126,123 $ 1,309,608 |
Investment in Unconsolidated Su
Investment in Unconsolidated Subsidiary | 3 Months Ended |
Mar. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Subsidiary | Investment in Unconsolidated Subsidiaries On January 21, 2011 , a wholly-owned subsidiary of Darling entered into a limited liability company agreement with a wholly-owned subsidiary of Valero Energy Corporation (“Valero”) to form Diamond Green Diesel Holdings LLC (the “DGD Joint Venture”). The DGD Joint Venture is owned 50% / 50% with Valero and was formed to design, engineer, construct and operate a renewable diesel plant (the “DGD Facility”), which is capable of processing approximately 12,000 barrels per day of input feedstock to produce renewable diesel fuel and certain other co-products, and is located adjacent to Valero's refinery in Norco, Louisiana. The DGD Joint Venture reached mechanical completion and began the production of renewable diesel in late June 2013. On May 31, 2011 , the DGD Joint Venture and Diamond Green Diesel LLC, a wholly-owned subsidiary of the DGD Joint Venture (“Opco”), entered into (i) a facility agreement (the “Facility Agreement”) with Diamond Alternative Energy, LLC, a wholly-owned subsidiary of Valero (the “Lender”), and (ii) a loan agreement (the “Loan Agreement”) with the Lender, which provided the DGD Joint Venture with a 14 year multiple advance term loan facility of approximately $ 221.3 million (the “JV Loan”) to support the design, engineering and construction of the DGD Facility, which is now in production. During the three months ended March 31, 2018, the DGD Joint Venture repaid all remaining outstanding amounts under the Facility Agreement and the Loan Agreement. In addition to the DGD Joint Venture, the Company has investments in other unconsolidated subsidiaries that are insignificant to the Company. Selected financial information for the Company's DGD Joint Venture is as follows (in thousands): (in thousands) March 31, 2018 December 31, 2017 Assets: Total current assets $ 295,775 $ 202,778 Property, plant and equipment, net 475,218 435,328 Other assets 11,959 4,655 Total assets $ 782,952 $ 642,761 Liabilities and members' equity: Total current portion of long term debt $ — $ 17,023 Total other current liabilities 40,242 40,705 Total long term debt — 36,730 Total other long term liabilities 458 450 Total members' equity 742,252 547,853 Total liabilities and member's equity $ 782,952 $ 642,761 Three Months Ended (in thousands) March 31, 2018 March 31, 2017 Revenues: Operating revenues $ 150,321 $ 125,397 Expenses: Total costs and expenses less depreciation, amortization and accretion expense (49,821 ) 115,322 Depreciation, amortization and accretion expense 6,120 8,113 Total costs and expenses (43,701 ) 123,435 Operating income 194,022 1,962 Other income 377 223 Interest and debt expense, net — (990 ) Net income $ 194,399 $ 1,195 As of March 31, 2018 under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $ 371.1 million on the consolidated balance sheet and has recorded an equity net gain of approximately $ 97.2 million and $0.6 million for the three months ended March 31, 2018 and April 1, 2017 , respectively. In February 2018, the blender tax credits for calendar year 2017 were retroactively reinstated by the U.S. Congress. Fiscal 2017 results do not include any blenders tax credits, while in the first quarter of fiscal 2018, the DGD Joint Venture recorded approximately $ 160.4 million for the 2017 reinstated blenders tax credits. The DGD Joint Venture recorded the blenders tax credits in the first quarter of fiscal 2018 as a reduction of total costs and expenses in the above table. The biodiesel blenders tax credit have not been reinstated for fiscal 2018. |
Accrued Expense Accrued Expense
Accrued Expense Accrued Expenses | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consist of the following (in thousands): March 31, 2018 December 30, 2017 Compensation and benefits $ 80,714 $ 102,474 Accrued income, ad valorem, and franchise taxes 36,081 30,546 Accrued operating expenses 67,878 61,230 Other accrued expense 106,136 119,373 $ 290,809 $ 313,623 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consists of the following (in thousands): March 31, 2018 December 30, 2017 Amended Credit Agreement: Revolving Credit Facility ($3.9 million denominated in CAD and $18.5 million denominated in euro at March 31, 2018) $ 55,374 $ — Term Loan A ($51.7 million and $53.1 million denominated in CAD at March 31, 2018 and December 30, 2017, respectively) 94,924 96,365 Less unamortized deferred loan costs (623 ) (671 ) Carrying value Term Loan A 94,301 95,694 Term Loan B 505,000 505,000 Less unamortized deferred loan costs (10,238 ) (10,578 ) Carrying value Term Loan B 494,762 494,422 5.375% Senior Notes due 2022 with effective interest of 5.72% 500,000 500,000 Less unamortized deferred loan costs (5,957 ) (6,638 ) Carrying value 5.375% Senior Notes due 2022 494,043 493,362 4.75% Senior Notes due 2022 - Denominated in euro with effective interest of 5.10% 634,918 617,356 Less unamortized deferred loan costs - Denominated in euro (8,529 ) (8,675 ) Carrying value 4.75% Senior Notes due 2022 626,389 608,681 Other Notes and Obligations 16,276 22,034 1,781,145 1,714,193 Less Current Maturities 16,722 16,143 $ 1,764,423 $ 1,698,050 As of March 31, 2018 , the Company had outstanding debt under a term loan facility and revolving credit facility denominated in Canadian dollars of CAD$ 66.6 million and CAD$ 5.0 million , respectively. See below for discussion relating to the Company's debt agreements. In addition, as of March 31, 2018 , the Company had capital lease obligations denominated in Canadian dollars included in debt. The current and long-term capital lease obligation was approximately CAD$ 0.7 million and CAD$ 0.4 million , respectively. As of March 31, 2018 , the Company had outstanding debt under a revolving credit facility and the Company's 4.75% Senior Notes due 2022 denominated in euros of € 15.0 million and € 515.0 million , respectively. See below for discussion relating to the Company's debt agreements. In addition, at March 31, 2018 , the Company had capital lease obligations denominated in euros included in debt. The current and long-term capital lease obligation was approximately € 0.1 million and € 0.1 million , respectively. Senior Secured Credit Facilities . On January 6, 2014 , Darling, Darling International Canada Inc. (“Darling Canada”) and Darling International NL Holdings B.V. (“Darling NL”) entered into a Second Amended and Restated Credit Agreement (as subsequently amended, the “Amended Credit Agreement”), restating its then existing Amended and Restated Credit Agreement dated September 27, 2013 (the Former Credit Agreement), with the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other agents from time to time party thereto. Effective December 18, 2017 , the Company, and certain of its subsidiaries entered into an amendment (the “Fifth Amendment”) with its lenders to the Amended Credit Agreement. Among other things, the Fifth Amendment (i) refinanced the term B loans under the Amended Credit Agreement with new term B loans in an aggregate principal amount of $ 525.0 million with a maturity date of December 18, 2024 ; (ii) adjusted the applicable margin pricing on borrowings under the term B loan; (iii) modified certain of the negative covenants to increase the allowances for certain actions, including debt and investments; and (iv) made other updates and changes. Effective December 16, 2016 , the Company, and certain of its subsidiaries entered into an amendment (the “Fourth Amendment”) with its lenders to the Amended Credit Agreement. Among other things, the Fourth Amendment (i) extended the maturity date of the term A loans and revolving credit facility loans under the Amended Credit Agreement from September 27, 2018 to December 16, 2021, subject to a 91 -day “springing” adjustment if the term B loans are outstanding 91 days prior to the maturity date of the term B loans; (ii) reset the amortization schedule of the term A loans to their original schedule; (iii) adjusted the applicable margin pricing grid on borrowings under the term A Loan and revolving credit facility which adjusts based on the Company's total leverage ratio as set forth in the Amended Credit Agreement; (iv) eliminated the secured leverage ratio financial maintenance covenant so that from and after the effective date of the Fourth Amendment the Company’s financial covenants consist of maintaining of total leverage ratio not to exceed 5.50 to 1.00 and maintaining an interest coverage ratio of not less than 3.00 to 1.00 ; (v) modified certain of the negative covenants to include a senior leverage ratio incurrence-based test and to increase the allowances for certain actions, including debt, investments and restricted payments; and (vi) made other updates and changes. The Company's Amended Credit Agreement provides for senior secured credit facilities in the aggregate principal amount of $ 1.88 billion comprised of (i) the Company's $ 350.0 million term loan A facility, (ii) the Company's $ 525.0 million term loan B facility and (iii) the Company's $ 1.0 billion five -year revolving loan facility (approximately $ 150.0 million of which is available for a letter of credit sub-facility and $ 50.0 million of which is available for a swingline sub-facility) (collectively, the “Senior Secured Credit Facilities”). The Amended Credit Agreement also permits Darling and the other borrowers thereunder to incur ancillary facilities provided by any revolving lender party to the Senior Secured Credit Facilities (with certain restrictions). Up to $ 948.3 million of the revolving loan facility is available to be borrowed by (x) Darling in U.S. dollars, Canadian dollars, euros and other currencies to be agreed and available to each applicable lender, (y) Darling Canada in Canadian dollars and (z) Darling NL, Darling Ingredients International Holding B.V. (“Darling BV”) and CTH Germany GmbH (“CTH”) in U.S. dollars, Canadian dollars, euros and other currencies to be agreed and available to each applicable lender. The revolving loan facility and term loan A facility will mature on December 16, 2021. The revolving loan facility will be used for working capital needs, general corporate purposes and other purposes not prohibited by the Amended Credit Agreement. The interest rate applicable to any borrowings under the term loan A facility and the revolving loan facility will equal either LIBOR/euro interbank offered rate/CDOR plus 2.00% per annum or base rate/Canadian prime rate plus 1.00% per annum, subject to certain step-ups or step-downs based on the Company's total leverage ratio. The interest rate applicable to any borrowings under the term loan B facility will equal the base rate plus 1.00% or LIBOR plus 2.00% . As of March 31, 2018 , the Company had $ 43.3 million outstanding under the term loan A facility and $ 10.0 million outstanding under the revolver at LIBOR plus a margin of 2.00% per annum for a total of 3.88% per annum. The Company had $ 23.0 million outstanding under the revolver at base rate plus a margin of 1.00% per annum for a total of 5.75% per annum. The Company had $ 500.0 million outstanding under the term loan B facility at LIBOR plus a margin of 2.00% per annum for a total of 3.88% per annum and $ 5.0 million outstanding under the term loan B facility at base rate plus a margin of 1.00% per annum for a total of 5.75% per annum. The Company had CAD$ 66.6 million outstanding under the term loan A facility at CDOR plus a margin of 2.00% per annum for a total of 3.7047% per annum and CAD$ 5.0 million outstanding under the revolver at CDOR plus a margin of 2.00% per annum for a total of 3.6691% per annum. The Company had € 15.0 million at LIBOR plus a margin of 2.00% per annum for a total of 2.00% per annum. As of March 31, 2018 , the Company had unused capacity of $ 921.8 million under the Amended Credit Agreement taking into account amounts borrowed and letters of credit issued of $ 22.9 million . The Company also has foreign bank guarantees that are not part of the Company's Amended Credit Agreement in the amount of approximately $ 19.2 million at March 31, 2018 . 5.375 % Senior Notes due 2022. On January 2, 2014, Darling Escrow Corporation, a wholly-owned subsidiary of Darling, issued and sold $ 500.0 million aggregate principal amount of its 5.375% Notes due 2022 (the “ 5.375% Notes”). The 5.375% Notes, which were offered in a private offering in connection with the Company's acquisition in January 2014 of its Darling Ingredients International business from VION Holding, N.V. (the “VION Acquisition”), were issued pursuant to a 5.375% Notes Indenture, dated as of January 2, 2014 (the “Original 5.375% Indenture”) (as supplemented, the “5.375% Indenture”), among Darling Escrow Corporation, the subsidiary guarantors party thereto from time to time, and U.S. Bank National Association, as trustee (the “ 5.375% Trustee”). 4.75 % Senior Notes due 2022. On June 3, 2015, Darling Global Finance B.V. (the “ 4.75% Issuer”), a wholly-owned subsidiary of Darling, issued and sold € 515.0 million aggregate principal amount of the 4.75% Senior Notes due 2022 (the “ 4.75% Notes”). The 4.75% Notes, which were offered in a private offering, were issued pursuant to a Senior Notes Indenture, dated as of June 3, 2015 (the “ 4.75% Indenture”), among the 4.75% Issuer, Darling, the subsidiary guarantors party thereto from time to time, Citibank, N.A., London Branch, as trustee (the “ 4.75% Trustee”) and principal paying agent, and Citigroup Global Markets Deutschland AG, as principal registrar. As of March 31, 2018 , the Company believes it is in compliance with all of the financial covenants under the Amended Credit Agreement, as well as all of the other covenants contained in the Amended Credit Agreement, the 5.375% Indenture and the 4.75% Indenture. 3.625% Senior Notes due 2026. On May 2, 2018, Darling Global Finance B.V. issued and sold € 515.0 million aggregate principal amount of 3.625% Senior Notes due 2026 (the “ 3.625% Notes”). The 3.625% Notes, which were offered in a private offering, were issued pursuant to a Senior Notes Indenture, dated as of May 2, 2018, among Darling Global Finance B.V., Darling, the subsidiary guarantors party thereto from time to time, Citibank, N.A., London Branch, as trustee and principal paying agent, and Citigroup Global Markets Deutschland AG, as principal registrar. The gross proceeds of the offering, together with borrowings under the Company’s revolving credit facility, are being used to refinance all of the 4.75% Notes by cash tender offer and redemption of those notes and to pay any applicable premiums for the refinancing, to pay the commission of the initial purchasers of the 3.625% Notes and to pay the other fees and expenses related to the offering. The refinancing of the 4.75% Notes is expected to be completed during the second quarter of 2018. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company has provided income taxes for the three month periods ended March 31, 2018 and April 1, 2017 , based on its estimate of the effective tax rate for the entire 2018 and 2017 fiscal years. The Company’s estimated annual effective tax rate is based on forecasts of income by jurisdiction, permanent differences between book and tax income, the relative proportion of income and losses by jurisdiction, and statutory income tax rates. Discrete events such as the assessment of the ultimate outcome of tax audits, audit settlements, recognizing previously unrecognized tax benefits due to the lapsing of statutes of limitation, recognizing or derecognizing deferred tax assets due to projections of income or loss and changes in tax laws are recognized in the period in which they occur. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company expects to have access to its offshore earnings with no material U.S. tax impact. Therefore, the Company does not consider earnings from its foreign subsidiaries to be permanently reinvested offshore. The Company periodically assesses whether it is more likely than not that it will generate sufficient taxable income to realize its deferred income tax assets. In making this determination, the Company considers all available positive and negative evidence and makes certain assumptions. The Company considers, among other things, its deferred tax liabilities, the overall business environment, its historical earnings and losses, current industry trends and its outlook for future years. Unrecognized tax benefits represent the difference between tax positions taken or expected to be taken in a tax return and the benefits recognized for financial statement purposes. As of March 31, 2018 , the Company had $ 2.4 million of gross unrecognized tax benefits and $ 1.3 million of related accrued interest and penalties. It is reasonably possible within the next twelve months that the Company’s gross unrecognized tax benefits may decrease by up to $ 2.1 million , excluding interest and penalties, primarily due to potential settlements and expiration of certain statutes of limitations. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act” or “U.S. tax reform”) was signed into law, effective January 1, 2018, that, among other things, lowered the corporate income tax rate from 35% to 21% , moved the country towards a territorial tax system with a one-time mandatory tax on previously deferred earnings of foreign subsidiaries, and introduced new provisions regarding the taxation of Global Intangible Low-Taxed Income (“GILTI”) of foreign subsidiaries. The Company is subject to the GILTI provisions beginning January 1, 2018. The FASB allows companies to adopt an accounting policy to either recognize deferred taxes for GILTI or treat such as a tax cost in the year incurred. The Company’s accounting policy election is to account for GILTI as incurred. The Company has reasonably estimated GILTI with no material impact to the estimated annual effective tax rate. Accounting Standards Codification 740, Accounting for Income Taxes, requires companies to recognize the effects of changes in tax laws and tax rates on deferred tax assets and liabilities in the period in which the new legislation is enacted. Due to the timing of the Tax Act and the substantial changes it brings, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which provides registrants a measurement period to report the impact of the new U.S. tax law. During the measurement period, provisional amounts for the effects of the tax law are recorded to the extent a reasonable estimate can be made. To the extent that all information necessary is not available, prepared or analyzed, companies may recognize provisional estimated amounts for a period of up to one year following enactment of the Tax Act. As a result of U.S. Tax Reform, the Company recorded a provisional tax benefit at December 30, 2017 of $ 12.1 million related to the mandatory deemed repatriation including an adjustment to the U.S. deferred tax liability associated with foreign earnings that were not permanently reinvested outside the U.S. and $ 62.9 million for the re-measurement of deferred taxes at the reduced 21% federal tax rate. The Company recorded provisional amounts for the mandatory repatriation including its impact on the Company’s deferred taxes because certain information related to the computation of earnings and profits is not readily available and there is limited information from federal and state taxing authorities regarding the application and interpretation of the recently enacted legislation. The Company has not revised any of its 2017 provisional estimates under SAB No. 118, but the Company is continuing to gather information and is waiting on further guidance from the IRS and other standard-setting bodies on the Tax Act. The Company’s major taxing jurisdictions include the United States (federal and state), Canada, the Netherlands, Belgium, Brazil, Germany, France and China. The Company is subject to regular examination by various tax authorities and although the final outcome of these examinations is not yet determinable, the Company does not anticipate that any of the examinations will have a significant impact on the Company's results of operations or financial position. The statute of limitations for the Company’s major tax jurisdictions is open for varying periods, but is generally closed through the 2010 tax year. |
Other Comprehensive Income
Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Other Comprehensive Income | Other Comprehensive Income The Company follows FASB authoritative guidance for reporting and presentation of comprehensive income and its components. Other comprehensive income (loss) is derived from adjustments that reflect pension adjustments, natural gas swap adjustments, corn option adjustments and foreign currency translation adjustments. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU amends Topic 220, Income Statement - Reporting Comprehensive Income , which will allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The ASU is effective for fiscal years beginning after December 15, 2018; however, the Company elected to early adopt ASU No. 2018-02 during the quarter ended March 31, 2018. The adoption resulted in a $ 4.8 million reclassification from accumulated other comprehensive income (loss) to retained earnings resulting from the Tax Cuts and Jobs Act. The components of other comprehensive income (loss) and the related tax impacts for the three months ended March 31, 2018 and April 1, 2017 are as follows (in thousands): Three Months Ended Before-Tax Tax (Expense) Net-of-Tax Amount or Benefit Amount March 31, 2018 April 1, 2017 March 31, 2018 April 1, 2017 March 31, 2018 April 1, 2017 Defined benefit pension plans Amortization of prior service cost/(benefit) $ 9 $ 9 $ (3 ) $ (3 ) $ 6 $ 6 Amortization of actuarial loss 888 1,203 (227 ) (450 ) 661 753 Total defined benefit pension plans 897 1,212 (230 ) (453 ) 667 759 Natural gas swap derivatives Loss/(gain) reclassified to net income 14 — (4 ) — 10 — Gain/(loss) activity recognized in other comprehensive income (loss) 16 — (4 ) — 12 — Total natural gas swap derivatives 30 — (8 ) — 22 — Corn option derivatives Loss/(gain) reclassified to net income (668 ) (1,185 ) 173 460 (495 ) (725 ) Gain/(loss) activity recognized in other comprehensive income (loss) (1,497 ) (615 ) 387 238 (1,110 ) (377 ) Total corn option derivatives (2,165 ) (1,800 ) 560 698 (1,605 ) (1,102 ) Foreign currency translation 17,295 15,679 — — 17,295 15,679 Other comprehensive income (loss) $ 16,057 $ 15,091 $ 322 $ 245 $ 16,379 $ 15,336 The following table presents the amounts reclassified out of each component of other comprehensive income (loss), net of tax for the three months ended March 31, 2018 and April 1, 2017 as follows (in thousands): Three Months Ended March 31, 2018 April 1, 2017 Statement of Operations Classification Derivative instruments Natural gas swap derivatives $ (14 ) $ — Cost of sales and operating expenses Corn option derivatives 668 1,185 Cost of sales and operating expenses 654 1,185 Total before tax (169 ) (460 ) Income taxes 485 725 Net of tax Defined benefit pension plans Amortization of prior service cost $ (9 ) $ (9 ) (a) Amortization of actuarial loss (888 ) (1,203 ) (a) (897 ) (1,212 ) Total before tax 230 453 Income taxes (667 ) (759 ) Net of tax Total reclassifications $ (182 ) $ (34 ) Net of tax (a) These items are included in the computation of net periodic pension cost. See Note 13 Employee Benefit Plans for additional information. The following table presents changes in each component of accumulated comprehensive income (loss) as of March 31, 2018 as follows (in thousands): Three Months Ended March 31, 2018 Foreign Currency Derivative Defined Benefit Translation Instruments Pension Plans Total Accumulated Other Comprehensive Income (loss) December 30, 2017, attributable to Darling, net of tax $ (183,161 ) $ 1,372 $ (27,735 ) $ (209,524 ) Other comprehensive gain (loss) before reclassifications 17,295 (1,098 ) — 16,197 Amounts reclassified from accumulated other comprehensive income (loss) — (485 ) 667 182 Reclassification of tax effect (a) — 291 (5,073 ) (4,782 ) Net current-period other comprehensive income 17,295 (1,292 ) (4,406 ) 11,597 Noncontrolling interest 517 — — 517 Accumulated Other Comprehensive Income (loss) March 31, 2018, attributable to Darling, net of tax (166,383 ) $ 80 $ (32,141 ) $ (198,444 ) (a) Stranded tax effects reclassified from accumulated other comprehensive income (loss) to retained earnings from the adoption of ASU 2018-02. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Fiscal 2018 Long-Term Incentive Opportunity Awards (2018 LTIP) . On January 29, 2018, the Compensation Committee (the “Committee”) of the Company's Board of Directors adopted the 2018 LTIP pursuant to which they awarded certain of the Company's key employees, 637,115 stock options and 295,514 performance share units (the “PSUs”) under the Company's 2017 Omnibus Incentive Plan. The stock options vest 33.33% on the first, second and third anniversaries of the grant date. The PSUs are tied to a three -year forward-looking performance period and will be earned based on the Company's average return on capital employed (ROCE), as calculated in accordance with the terms of the award agreement, relative to the average ROCE of the Company's performance peer group companies, with the earned award to be determined in the first quarter of fiscal 2021, after the final results for the relevant performance period are determined. The PSUs were granted at a target of 100% , but each PSU will reduce or increase depending on the Company's ROCE relative to that of the performance peer group companies and is also subject to the application of a total shareholder return (TSR) cap/collar modifier depending on the Company's TSR during the performance period relative to that of the performance peer group companies. On August 7, 2017, the Company's Board of Directors, approved the extension for an additional two years of its previously announced share repurchase program of up to an aggregate of $ 100.0 million of the Company's common stock depending on market conditions. As of March 31, 2018 , the Company has approximately $ 100.0 million remaining under the share repurchase program approved in August 2017. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company has retirement and pension plans covering a substantial number of its domestic and foreign employees. Most retirement benefits are provided by the Company under separate final-pay noncontributory and contributory defined benefit and defined contribution plans for all salaried and hourly employees (excluding those covered by union-sponsored plans) who meet service and age requirements. Although various defined benefit formulas exist for employees, generally these are based on length of service and earnings patterns during employment. Effective January 1, 2012, the Company's Board of Directors authorized the Company to proceed with the restructuring of its domestic retirement benefit program to include the closing of Darling's salaried and hourly defined benefit plans to new participants as well as the freezing of service and wage accruals thereunder effective December 31, 2011 (a curtailment of these plans for financial reporting purposes) and the enhancing of benefits under the Company's domestic defined contribution plans. The Company-sponsored domestic hourly union plan has not been curtailed; however, several locations of the Company-sponsored domestic hourly union plan have been curtailed as a result of collective bargaining renewals for those sites. In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU amends Topic 715, Compensation - Retirement Benefits , which requires that an employer report the service cost component of net benefit costs to be disaggregated from all other components and reported in the same line item or items as other compensation costs. The other components of net benefit cost are required to be presented in the income statement separately from the service cost. The Company adopted this ASU effective December 31, 2017. The Company used the practical expedient to retrospectively present the prior year amounts. The components of net period pension cost other than the service cost component are included in the line item “Other expense, net” in the Company's Consolidated Statements of Operations. Net pension cost for the three months ended March 31, 2018 and April 1, 2017 includes the following components (in thousands): Pension Benefits Three Months Ended March 31, April 1, Service cost $ 799 $ 735 Interest cost 1,625 1,669 Expected return on plan assets (2,064 ) (1,788 ) Amortization of prior service cost 9 9 Amortization of net loss 888 1,203 Net pension cost $ 1,257 $ 1,828 The Company's funding policy for employee benefit pension plans is to contribute annually not less than the minimum amount required nor more than the maximum amount that can be deducted for federal and foreign income tax purposes. Contributions are intended to provide not only for benefits attributed to service to date, but also for those expected to be earned in the future. Based on actuarial estimates at March 31, 2018 , the Company expects to contribute approximately $ 5.0 million to its pension plans to meet funding requirements during the next twelve months. Additionally, the Company has made tax deductible discretionary and required contributions to its pension plans for the three months ended March 31, 2018 and April 1, 2017 of approximately $ 0.8 million and $ 0.7 million , respectively. The Company participates in various multiemployer pension plans which provide defined benefits to certain employees covered by labor contracts. These plans are not administered by the Company and contributions are determined in accordance with provisions of negotiated labor contracts to meet their pension benefit obligations to their participants. The Company's contributions to each multiemployer plan represent less than 5% of the total contributions to each such plan. Based on the most currently available information, the Company has determined that, if a withdrawal were to occur, withdrawal liabilities on two of the plans in which the Company currently participates could be material to the Company, with one of these material plans certified as critical or red zone. With respect to the other multiemployer pension plans in which the Company participates and which are not individually significant, six plans have certified as critical or red zone, one plan has certified as endangered or yellow zone as defined by the Pension Protection Act of 2006. The Company has received notices of withdrawal liability from two U.S. multiemployer plans in which it participated. As of March 31, 2018 , the Company has an aggregate accrued liability of approximately $ 1.7 million representing the present value of scheduled withdrawal liability payments under these multiemployer plans. While the Company has no ability to calculate a possible current liability for under-funded multiemployer plans that could terminate or could require additional funding under the Pension Protection Act of 2006, the amounts could be material. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company’s operations are exposed to market risks relating to commodity prices that affect the Company’s cost of raw materials, finished product prices and energy costs and the risk of changes in interest rates and foreign currency exchange rates. The Company makes limited use of derivative instruments to manage cash flow risks related to natural gas usage, diesel fuel usage, inventory, forecasted sales and foreign currency exchange rates. The Company does not use derivative instruments for trading purposes. Natural gas swaps and options are entered into with the intent of managing the overall cost of natural gas usage by reducing the potential impact of seasonal weather demands on natural gas that increases natural gas prices. Heating oil swaps and options are entered into with the intent of managing the overall cost of diesel fuel usage by reducing the potential impact of seasonal weather demands on diesel fuel that increases diesel fuel prices. Soybean meal options are entered into with the intent of managing the impact of changing prices for poultry meal sales. Corn options and future contracts are entered into with the intent of managing U.S. forecasted sales of bakery by-products (“BBP”) by reducing the impact of changing prices. Foreign currency forward contracts are entered into to mitigate the foreign exchange rate risk for transactions designated in a currency other than the local functional currency. At March 31, 2018 , the Company had corn option contracts and soybean meal option contracts outstanding that qualified and were designated for hedge accounting as well as corn option and forward contracts, foreign currency forward contracts that did not qualify and were not designated for hedge accounting. Entities are required to report all derivative instruments in the statement of financial position at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, on the reason for holding the instrument. If certain conditions are met, entities may elect to designate a derivative instrument as a hedge of exposures to changes in fair value, cash flows or foreign currencies. If the hedged exposure is a cash flow exposure, the effective portion of the gain or loss on the derivative instrument is reported initially as a component of other comprehensive income (outside of earnings) and is subsequently reclassified into earnings when the forecasted transaction affects earnings. Any amounts excluded from the assessment of hedge effectiveness, as well as the ineffective portion of the gain or loss, are reported in earnings immediately. If the derivative instrument is not designated as a hedge, the gain or loss is recognized in earnings in the period of change. Cash Flow Hedges In the first three months of fiscal 2018, the Company entered into soybean meal option contracts that are considered cash flow hedges. Under the terms of the soybean meal option contracts, the Company hedged a portion of its forecasted poultry meal sales into the fourth quarter of fiscal 2018. As of March 31, 2018 , the contract positions and activity are disclosed below. In fiscal 2017, the Company entered into natural gas swap contracts that are considered cash flow hedges. Under the terms of the natural gas swap contracts, the Company fixed the expected purchase cost of a portion of its U.S. plants' forecasted natural gas usage into the first quarter of fiscal 2018. As of March 31, 2018 , the contracts have expired and settled according to the contracts. In fiscal 2017 and the first three months of fiscal 2018 , the Company entered into corn option contracts on the Chicago Board of Trade that are designated as cash flow hedges. Under the terms of the corn option contracts, the Company hedged a portion of its U.S. forecasted sales of BBP into the fourth quarter of fiscal 2018. As of March 31, 2018 , some of the contracts have been settled while the remaining contract positions and activity are disclosed below. From time to time, the Company may enter into corn option contracts in the future. As of March 31, 2018 , the Company had the following outstanding forward contract amounts that were entered into to hedge the future payments of intercompany note transactions, foreign currency transactions in currencies other than the functional currency and forecasted transactions in currencies other than the functional currency. All of these transactions are currently not designated for hedge accounting (in thousands): Functional Currency Contract Currency Type Amount Type Amount Brazilian real 45,094 Euro 11,210 Brazilian real 74,534 U.S. dollar 22,735 Euro 76,963 U.S. dollar 95,421 Euro 7,627 Polish zloty 32,280 Euro 5,772 Japanese yen 763,515 Euro 86,745 Chinese renminbi 680,847 Euro 11,573 Australian dollar 18,600 Euro 3,001 British pound 2,642 Polish zloty 70,770 Euro 16,740 British pound 184 Euro 161 British pound 49 U.S. dollar 70 Japanese yen 371,342 U.S. dollar 3,375 The Company estimates the amount that will be reclassified from accumulated other comprehensive gain at March 31, 2018 into earnings over the next 12 months will be approximately $ 0.1 million . As of March 31, 2018 , no amounts have been reclassified into earnings as a result of the discontinuance of cash flow hedges. The following table presents the fair value of the Company’s derivative instruments under FASB authoritative guidance as of March 31, 2018 and December 30, 2017 (in thousands): Derivatives Designated Balance Sheet Asset Derivatives Fair Value as Hedges Location March 31, 2018 December 30, 2017 Corn options Other current assets $ 282 $ 3,418 Total asset derivatives designated as hedges $ 282 $ 3,418 Derivatives Not Designated as Hedges Foreign currency contracts Other current assets $ 585 $ 332 Corn options and futures Other current assets 185 596 Total asset derivatives not designated as hedges $ 770 $ 928 Total asset derivatives $ 1,052 $ 4,346 Derivatives Designated Balance Sheet Liability Derivatives Fair Value as Hedges Location March 31, 2018 December 30, 2017 Corn options Accrued expenses $ 278 $ — Natural gas swaps Accrued expenses — 24 Soybean meal options Accrued expenses 194 — Total liability derivatives designated as hedges $ 472 $ 24 Derivatives Not Designated as Hedges Foreign currency contracts Accrued expenses $ 1,977 $ 2,288 Corn options and futures Accrued expenses 316 14 Total liability derivatives not designated as hedges $ 2,293 $ 2,302 Total liability derivatives $ 2,765 $ 2,326 The effect of the Company’s derivative instruments on the consolidated financial statements as of and for the three months ended March 31, 2018 and April 1, 2017 is as follows (in thousands): Derivatives Designated as Cash Flow Hedges Gain or (Loss) Recognized in Other Comprehensive Income (“OCI”) on Derivatives (Effective Portion) (a) Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (b) Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) (c) 2018 2017 2018 2017 2018 2017 Corn options $ (1,497 ) $ (615 ) $ 668 $ 1,185 $ (1,123 ) $ 88 Natural gas swaps 16 — (14 ) — 25 — Soybean meal options — — — — (648 ) — Total $ (1,481 ) $ (615 ) $ 654 $ 1,185 $ (1,746 ) $ 88 (a) Amount recognized in accumulated OCI (effective portion) is reported as accumulated other comprehensive income/(loss) of approximately $ (1.5) million and $ (0.6) million recorded net of taxes of approximately $ 0.4 million and $ 0.2 million as of March 31, 2018 and April 1, 2017 , respectively. (b) Gains and (losses) reclassified from accumulated OCI into income (effective portion) for corn options and natural gas swaps are included in cost of sales, respectively, in the Company’s consolidated statements of operations. (c) Gains and (losses) recognized in income on derivatives (ineffective portion) for corn options, natural gas swaps and soybean meal options are included in other income/ (expense), net in the Company’s consolidated statements of operations. The table below summarizes the effect of derivatives not designated as hedges on the Company's consolidated statements of operations for the three months ended March 31, 2018 and April 1, 2017 (in thousands): Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges Three Months Ended Derivatives not designated as hedging instruments Location March 31, 2018 April 1, 2017 Foreign Exchange Foreign currency loss/(gain) $ 1,654 $ 3,146 Foreign Exchange Selling, general and administrative expense 489 (1,481 ) Corn options and futures Net sales (309 ) (22 ) Corn options and futures Cost of sales and operating expenses 512 270 Soybean Meal Net sales — (272 ) Soybean Oil Net sales — 45 Total $ 2,346 $ 1,686 At March 31, 2018 , the Company had forward purchase agreements in place for purchases of approximately $ 31.6 million of natural gas and diesel fuel. These forward purchase agreements have no net settlement provisions and the Company intends to take physical delivery of the underlying product. Accordingly, the forward purchase agreements are not subject to the requirements of fair value accounting because they qualify and the Company has elected to account for these as normal purchases as defined in the FASB authoritative guidance. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements FASB authoritative guidance defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The following table presents the Company’s financial instruments that are measured at fair value on a recurring and nonrecurring basis as of March 31, 2018 and are categorized using the fair value hierarchy under FASB authoritative guidance. The fair value hierarchy has three levels based on the reliability of the inputs used to determine the fair value. Fair Value Measurements at March 31, 2018 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (In thousands of dollars) Total (Level 1) (Level 2) (Level 3) Assets: Derivative instruments $ 1,052 $ — $ 1,052 $ — Total Assets $ 1,052 $ — $ 1,052 $ — Liabilities: Derivative instruments $ 2,765 $ — $ 2,765 $ — 5.375% Senior notes 508,750 — 508,750 — 4.75% Senior notes 665,076 — 665,076 — Term loan A 94,450 — 94,450 — Term loan B 510,353 — 510,353 — Revolver debt 54,544 — 54,544 — Total Liabilities $ 1,835,938 $ — $ 1,835,938 $ — Fair Value Measurements at December 30, 2017 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (In thousands of dollars) Total (Level 1) (Level 2) (Level 3) Assets: Derivative instruments $ 4,346 $ — $ 4,346 $ — Total Assets $ 4,346 $ — $ 4,346 $ — Liabilities: Derivative instruments $ 2,326 $ — $ 2,326 $ — 5.375% Senior notes 513,100 — 513,100 — 4.75% Senior notes 646,681 — 646,681 — Term loan A 95,883 — 95,883 — Term loan B 511,616 — 511,616 — Total Liabilities $ 1,769,606 $ — $ 1,769,606 $ — Derivative assets and liabilities consist of the Company’s soybean meal contracts, natural gas contracts, corn option and future contracts and foreign currency contracts, which represents the difference between observable market rates of commonly quoted intervals for similar assets and liabilities in active markets and the fixed swap rate considering the instruments term, notional amount and credit risk. See Note 14 (Derivatives) for breakdown by instrument type. The carrying amount of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximates fair value due to the short maturity of these instruments and as such have been excluded from the table above. The carrying amount of the Company's other debt is not deemed to be significantly different from the fair value and all other instruments have been recorded at fair value. The fair value of the senior notes, term loan A, term loan B and revolver debt is based on market quotation from third-party banks. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies The Company is a party to various lawsuits, claims and loss contingencies arising in the ordinary course of its business, including insured worker's compensation, auto, and general liability claims, assertions by certain regulatory and governmental agencies related to permitting requirements and/or air, wastewater and storm water discharges from the Company’s processing facilities, litigation involving tort, contract, statutory, labor, employment, and other claims, and tax matters. The Company’s workers compensation, auto and general liability policies contain significant deductibles or self-insured retentions. The Company estimates and accrues its expected ultimate claim costs related to accidents occurring during each fiscal year under these insurance policies and carries this accrual as a reserve until these claims are paid by the Company. As a result of the matters discussed above, the Company has established loss reserves for insurance, environmental, litigation and tax contingencies. At March 31, 2018 and December 30, 2017 , the reserves for insurance, environmental, litigation and tax contingencies reflected on the balance sheet in accrued expenses and other non-current liabilities were approximately $ 62.4 million and $ 61.4 million , respectively. The Company has insurance recovery receivables of approximately $ 25.0 million as of March 31, 2018 and December 30, 2017 , related to the insurance contingencies. The Company's management believes these reserves for contingencies are reasonable and sufficient based upon present governmental regulations and information currently available to management; however, there can be no assurance that final costs related to these contingencies will not exceed current estimates. The Company believes that the likelihood is remote that any additional liability from the lawsuits and claims that may not be covered by insurance would have a material effect on the Company's financial position, results of operations or cash flows. Lower Passaic River Area . In December 2009 , the Company, along with numerous other entities, received notice from the United States Environmental Protection Agency (“EPA”) that the Company (as successor-in-interest to Standard Tallow Company) is considered a potentially responsible party (a “PRP”) with respect to alleged contamination in the lower Passaic River area which is part of the Diamond Alkali Superfund Site located in Newark, New Jersey. The Company’s designation as a PRP is based upon the operation of a former plant site located in Newark, New Jersey by Standard Tallow Company, an entity that the Company acquired in 1996. In the letter, EPA requested that the Company join a group of other parties in funding a remedial investigation and feasibility study at the site. As of the date of this report, the Company has not agreed to participate in the funding group. In March 2016, the Company received another letter from EPA notifying the Company that it had issued a Record of Decision selecting a remedy for the lower 8.3 miles of the lower Passaic River area at an estimated cost of $ 1.38 billion . The EPA letter makes no demand on the Company and lays out a framework for remedial design/remedial action implementation in which the EPA will first seek funding from major PRPs. The letter indicates that the EPA has sent the letter to over 100 parties, which include large chemical and refining companies, manufacturing companies, foundries, plastic companies, pharmaceutical companies and food and consumer product companies. The Company's ultimate liability, if any, for investigatory costs, remedial costs and/or natural resource damages in connection with the lower Passaic River area cannot be determined at this time; however, as of the date of this report, the Company has found no evidence that the former Standard Tallow Company plant site contributed any of the primary contaminants of concern to the Passaic River and, therefore, there is nothing that leads the Company to believe that this matter will have a material effect on the Company's financial position, results of operations or cash flows. Fresno Facility Permit Issue. The Company has been named as a defendant and a real party in interest in a lawsuit filed on April 9, 2012 in the Superior Court of the State of California, Fresno County, styled Concerned Citizens of West Fresno vs. Darling International Inc. The complaint, as subsequently amended, alleges that the Company's Fresno facility is operating without a proper use permit and seeks, among other things, injunctive relief. The complaint had at one time also alleged that the Company's Fresno facility constitutes a continuing private and public nuisance, but the plaintiff has since amended the complaint to drop these allegations. The City of Fresno was also named as a defendant in the original complaint but has since had a judgment entered in its favor and is no longer a defendant in the lawsuit; however, in December 2013 the City of Fresno filed a motion to intervene as a plaintiff in this matter. The Superior Court heard the motion on February 4, 2014, and entered an order on February 18, 2014 denying the motion. Rendering operations have been conducted on the site since 1955, and the Company believes that it possesses all of the required federal, state and local permits to continue to operate the facility in the manner currently conducted and that its operations do not constitute a private or public nuisance. Accordingly, the Company intends to defend itself vigorously in this matter. Discovery has begun and this matter was scheduled for trial in July 2014; however, the parties have agreed to stay the litigation while they participate in a mediation process, which remains ongoing. In January 2017, the Company entered into a non-binding letter of intent with the City of Fresno pursuant to which the City and the Company will work toward the execution of a definitive agreement to relocate the facility to a different location in Fresno. Whether an agreement to relocate the facility ultimately gets executed is subject to the Company’s receipt of certain incentives and an agreement by the Concerned Citizens of West Fresno to settle and dismiss the aforementioned litigation. While management cannot predict the ultimate outcome of this matter, management does not believe the outcome will have a material effect on the Company's financial condition, results of operations or cash flows. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company sells its products domestically and internationally, operating within three industry segments: Feed Ingredients, Food Ingredients and Fuel Ingredients. The measure of segment profit (loss) includes all revenues, operating expenses (excluding certain amortization of intangibles), and selling, general and administrative expenses incurred at all operating locations and excludes corporate activities. Included in corporate activities are general corporate expenses and the amortization of certain intangibles. Assets of corporate activities include cash, unallocated prepaid expenses, deferred tax assets, prepaid pension, and miscellaneous other assets. Feed Ingredients Feed Ingredients consists principally of (i) the Company's U.S. ingredients business, including the Company's fats and proteins, used cooking oil, trap grease and food residuals collection businesses, the Rothsay ingredients business, the ingredients and specialty products businesses conducted by Darling Ingredients International under the Sonac name (proteins, fats, and plasma products) and (ii) the Company's bakery residuals business. Feed Ingredients operations process animal by-products and used cooking oil into fats, proteins and hides. Food Ingredients Food Ingredients consists principally of (i) the gelatin and collagen hydrolysates business conducted by Darling Ingredients International under the Rousselot name, (ii) the natural casings and meat-by-products business conducted by Darling Ingredients International under the CTH name and (iii) certain specialty products businesses conducted by Darling Ingredients International under the Sonac name. Fuel Ingredients The Company's Fuel Ingredients segment consists of (i) the Company's biofuel business conducted under the Dar Pro® and Rothsay names (ii) the bioenergy business conducted by Darling Ingredients International under the Ecoson and Rendac names and (iii) the Company's investment in the DGD Joint Venture. Business Segments (in thousands): Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Three Months Ended March 31, 2018 Net Sales $ 485,798 $ 305,520 $ 84,056 $ — $ 875,374 Cost of sales and operating expenses 369,088 249,185 59,826 — 678,099 Gross Margin 116,710 56,335 24,230 — 197,275 Selling, general and administrative expense 48,265 23,861 (1,398 ) 16,174 86,902 Depreciation and amortization 46,789 20,640 8,471 2,719 78,619 Segment operating income/(loss) 21,656 11,834 17,157 (18,893 ) 31,754 Equity in net income of unconsolidated subsidiaries (45 ) — 97,199 — 97,154 Segment income/(loss) 21,611 11,834 114,356 (18,893 ) 128,908 Total other expense (27,121 ) Income before income taxes $ 101,787 Segment assets at March 31, 2018 $ 2,589,281 $ 1,525,149 $ 809,895 $ 161,185 $ 5,085,510 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Three Months Ended April 1, 2017 Net Sales $ 552,624 $ 266,226 $ 59,660 $ — $ 878,510 Cost of sales and operating expenses 432,576 209,392 45,998 — 687,966 Gross Margin 120,048 56,834 13,662 — 190,544 Selling, general and administrative expense 44,837 24,977 3,263 13,846 86,923 Depreciation and amortization 43,719 17,601 6,845 2,949 71,114 Segment operating income/(loss) 31,492 14,256 3,554 (16,795 ) 32,507 Equity in net income of unconsolidated subsidiaries 109 — 597 — 706 Segment income/(loss) 31,601 14,256 4,151 (16,795 ) 33,213 Total other expense (23,997 ) Income before income taxes $ 9,216 Segment assets at December 30, 2017 $ 2,614,545 $ 1,499,027 $ 688,890 $ 155,763 $ 4,958,225 |
Revenue (Notes)
Revenue (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue On December 31, 2017, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), using the modified retrospective basis. Results for reporting periods beginning December 31, 2017 are presented under Topic 606, while prior periods are not adjusted and continue to be reported in accordance with the Company's historic accounting under Topic 605. The adoption did not change the timing of revenue recognition as the Company's revenues have been determined to be recognized at a point in time and not over time. The Company elected not to capitalize contract fulfillment costs as the recovery of such costs are for a period of less than one year's time and are not material to the Company. At March 31, 2018, there were no contract assets recorded on the Consolidated Balance sheets. Also, the Company elected to treat shipping and handling as fulfillment costs under Topic 606, which will result in billed freight recorded in cost of sales and netted against freight costs. Sales, value-add, and other taxes collected concurrently with revenue-producing activities are excluded from revenue and booked on a net basis. The Company extends payment terms to its customers based on commercially acceptable practices. The term between invoicing and payment due date is not significant. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring finished products or performing services, which is generally based on executed agreement or purchase order. Most of the Company's products are shipped based on the customer specifications. Customer returns are infrequent and not material to the Company. Adjustments to net sales for sales deductions are generally recognized in the same period as the sale or when known. Customers in certain industries or countries may be required to prepay prior to shipment in order to maintain payment protection. These represent short-term prepayment from customers and are not material to the Company. The following table summarizes the impact of adopting Topic 606 on the Company's consolidated financial statements for the three months ended March 31, 2018 (in thousands): Impact of changes in accounting policies As reported Adjustments Balances without adoption of Topic 606 Net sales $ 875,374 46,187 $ 921,561 Cost of sales and operating expenses $ 678,099 46,187 $ 724,286 The following table presents the Company revenues disaggregated by geographic area and major product types by reportable segment for the three months ended March 31, 2018 and April 1, 2017 (in thousands): Three Months Ended March 31, 2018 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area North America $ 390,376 $ 44,277 $ 21,540 $ 456,193 Europe 87,790 183,639 62,516 333,945 China 5,678 43,912 — 49,590 South America — 14,344 — 14,344 Other 1,954 19,348 — 21,302 Net sales $ 485,798 $ 305,520 $ 84,056 $ 875,374 Major product types Fats $ 143,552 $ 44,819 $ — $ 188,371 Used cooking oil 36,608 — — 36,608 Proteins 203,395 — — 203,395 Bakery 46,751 — — 46,751 Other rendering 31,362 — — 31,362 Food ingredients — 233,923 — 233,923 Bioenergy — — 62,516 62,516 Biofuels — — 21,540 21,540 Other 24,130 26,778 — 50,908 Net sales $ 485,798 $ 305,520 $ 84,056 $ 875,374 Three Months Ended April 1, 2017 (a) Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area Revenues North America $ 422,935 $ 45,725 $ 8,083 $ 476,743 Europe 122,927 149,701 51,577 324,205 China 4,734 41,660 — 46,394 South America — 12,974 — 12,974 Other 2,028 16,166 — 18,194 Net sales $ 552,624 $ 266,226 $ 59,660 $ 878,510 Major product types Fats $ 158,005 $ 40,893 $ — $ 198,898 Used cooking oil 44,046 — — 44,046 Proteins 198,151 — — 198,151 Bakery 56,097 — — 56,097 Other rendering 73,600 — — 73,600 Food ingredients — 206,279 — 206,279 Bioenergy — — 51,577 51,577 Biofuels — — 8,083 8,083 Other 22,725 19,054 — 41,779 Net sales $ 552,624 $ 266,226 $ 59,660 $ 878,510 (a) As noted above prior year amounts have not been adjusted under the modified retrospective method for billed freight of approximately $ 38.2 million that is included in net sales in the three months ended April 1, 2017 . Revenue from Contracts with Customers The Company has two primary revenue streams. Finished product revenues are recognized when control of the promised finished product is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the finished product. Service revenues are recognized in the fiscal month the service occurs. Fats and Proteins . Fats and Proteins include the Company's global activities related to the collection and processing of beef, poultry and pork animal by-products into finished products of non-food grade oils, food grade fats and protein meal. Fats and proteins net sales are recognized when the Company ships the finished product to the customer and control has been transferred. Used Cooking Oil . Used cooking oil includes collection and processing of used cooking oil into finished products of non-food grade fats. Used cooking oil net sales are recognized when the Company ships the finished product to the customer and control has been transferred. Bakery . Bakery includes collection and processing of bakery residuals into finished product including Cookie Meal®, an animal feed ingredient primarily used in poultry and swine rations. Bakery net sales are recognized when the Company ships the finished product to the customer and control has been transferred. Other Rendering . Other rendering include hides, pet food products, and service charges. Hides and pet food net sales are recognized when the Company ships the finished product to the customer and control has been transferred. Service revenues are recognized when the service has occurred. Food Ingredients. Food ingredients includes collection and processing of pigskin, hide, bone and fish into finished product. Also includes harvesting, sorting and selling of hog and sheep casings as well as harvesting, purchasing and processing of hog, sheep and beef meat for pet food industry. Gelatin and CTH meat and casings net sales are recognized when the Company ships the finished product to the customer and control has been transferred. Bioenergy . Bioenergy includes Ecoson, which converts organic sludge and food waste into biogas and Rendac, which collects fallen stock and animal waste for a fee and processes these materials into fats and meals that can only be used as low grade energy or fuel for boilers and cement kilns. Net sales are recognized when the finished product is shipped to the customer and control has been transferred. Service revenues are recognized in net sales when the service has occurred. Biofuels . Biofuels includes the North American processing of rendered animal fats, recycled cooking oils and third party additives to produce diesel fuel. Biofuel net sales are recognized when the finished product is shipped to the customer and control has been transferred. Other . Other includes grease trap collection and environmental services to food processors in the Feed Ingredients segment and Sonac Bone and Sonac Heparin in the Food Ingredients segment. Net sales are recognized when the Company ships the finished product to the customer. Service revenues are recognized when the service has occurred. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Raw Material Agreement The Company entered into a Raw Material Agreement with the DGD Joint Venture in May 2011 pursuant to which the Company will offer to supply certain animal fats and used cooking oil at market prices, up to the DGD Joint Venture's full operational requirement of feedstock, but the DGD Joint Venture is not obligated to purchase the raw material offered by the Company. Additionally, the Company may offer other feedstocks to the DGD Joint Venture, such as inedible corn oil, purchased on a resale basis. For the three months ended March 31, 2018 and April 1, 2017 , the Company has recorded sales to the DGD Joint Venture of approximately $ 33.1 million and $ 35.7 million , respectively. At March 31, 2018 and December 30, 2017 , the Company has $ 8.8 million and $ 5.6 million in outstanding receivables due from the DGD Joint Venture, respectively. In addition, the Company has eliminated approximately $ 7.1 million of additional sales for the three months ended March 31, 2018 to defer the Company's portion of profit of approximately $ 2.0 million on those sales relating to inventory assets remaining on the DGD Joint Venture's balance sheet at March 31, 2018 . Revolving Loan Agreement On February 23, 2015, Darling through its wholly owned subsidiary Darling Green Energy LLC, (“Darling Green”) and a third party Diamond Alternative Energy, LLC (“Diamond Alternative” and together with Darling Green, the “DGD Lenders”) entered into a revolving loan agreement (the “DGD Loan Agreement”) with the DGD Joint Venture Opco. The DGD Lenders have committed to making loans available to Opco in the total amount of $ 10.0 million with each lender committed to $ 5.0 million of the total commitment. Any borrowings by Opco under the DGD Loan Agreement are at the applicable annum rate equal to the sum of (a) the LIBO Rate (meaning Reuters BBA Libor Rates Page 3750) on such day plus (b) 2.50% . The DGD Loan Agreement matures on December 31, 2018, unless extended by agreement of the parties. As of March 31, 2018 , no amounts are owed to Darling Green under the DGD Loan Agreement. |
New Accounting Pronoucements
New Accounting Pronoucements | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronoucements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In August 2017, the FASB issued ASU No. 2017-12, Targeted Improvement to Accounting for Hedging Activities. This ASU amends Topic 815, Derivatives and Hedging , which is intended to more closely align hedge accounting with companies' risk management strategies and simplify the application of hedge accounting. The guidance includes certain targeted improvements to ease the operational burden of applying hedge accounting. The ASU is effective for fiscal years beginning after December 15, 2018 and for interim periods therein with early adoption permitted. The Company will be required to apply the guidance on a cumulative-effect basis with adjustment to retained earnings as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of this standard. In January 2017, the FASB issued ASU No. 2017-04 Simplifying the Test for Goodwill Impairment. This ASU amends Topic 350, Intangibles-Goodwill and Other , which will simplify the goodwill impairment calculation by eliminating Step 2 from the current goodwill impairment test. Under the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The ASU eliminates existing guidance that requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of the assets and liabilities as if that reporting unit had been acquired in a business combination. This ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The initial adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). Under the new ASU, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance lessor accounting is largely unchanged. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. This ASU is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company is assessing the impact of this new standard, specifically on its consolidated balance sheets and disclosures, and does not expect adoption to significantly change the recognition, measurement or presentation of lease expense within the consolidated statements of operations or cash flows. |
Guarantor Financial Information
Guarantor Financial Information | 3 Months Ended |
Mar. 31, 2018 | |
Guarantor Financial Information [Abstract] | |
Guarantor Financial Information | Guarantor Financial Information The Company's 5.375% Notes and 4.75% Notes (see Note 9) are guaranteed on a senior unsecured basis by the following Notes Guarantors, each of which is a 100% directly or indirectly owned subsidiary of Darling and which constitute all of Darling's existing restricted subsidiaries that are Credit Agreement Guarantors (other than Darling's foreign subsidiaries, Darling Global Finance B.V., which issued the 4.75% Notes and is discussed further below, or any receivables entity): Darling National, Griffin and its subsidiary Craig Protein, Darling AWS LLC, Terra Holding Company, Darling Global Holdings Inc., Darling Northstar LLC, TRS, EV Acquisition, Inc., Rousselot Inc., Rousselot Dubuque Inc., Sonac USA LLC and Rousselot Peabody Inc. In addition, the 4.75% Notes, which were issued by Darling Global Finance B.V., a wholly-owned indirect subsidiary of Darling, are guaranteed on a senior unsecured basis by Darling. The Notes Guarantors, and Darling in the case of the 4.75% Notes, fully and unconditionally guaranteed the 5.375% Notes and 4.75% Notes on a joint and several basis. The following financial statements present condensed consolidated financial data for (i) Darling, (ii) the combined Notes Guarantors, (iii) the combined other subsidiaries of the Company that did not guarantee the 5.375% Notes or the 4.75% Notes (the “Non-guarantors”), and (iv) eliminations necessary to arrive at the Company's consolidated financial statements, which include condensed consolidated balance sheets as of March 31, 2018 and December 30, 2017 , and the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive income/(loss) and the condensed consolidated statements of cash flows for the three months ended March 31, 2018 and April 1, 2017 . Separate financial information is not presented for Darling Global Finance B.V. since it was formed as a special purpose finance subsidiary for the purpose of issuing the 4.75% Notes and therefore does not have any substantial operations or assets. Condensed Consolidated Balance Sheet As of March 31, 2018 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated ASSETS Cash and cash equivalents $ 899 $ 1,436 $ 120,534 $ — $ 122,869 Restricted cash 103 — 39 — 142 Accounts receivable 37,894 513,155 455,774 (593,164 ) 413,659 Inventories 12,547 84,727 275,847 — 373,121 Income taxes refundable 2,270 — 2,424 — 4,694 Prepaid expenses 11,188 2,636 26,883 — 40,707 Other current assets 3,066 71 12,751 — 15,888 Total current assets 67,967 602,025 894,252 (593,164 ) 971,080 Investment in subsidiaries 4,879,498 1,167,246 844,044 (6,890,788 ) — Property, plant and equipment, net 282,431 503,200 871,978 — 1,657,609 Intangible assets, net 16,041 250,400 393,414 — 659,855 Goodwill 21,860 551,837 735,911 — 1,309,608 Investment in unconsolidated subsidiaries 7,344 — 401,791 — 409,135 Other assets 41,953 314,159 199,755 (492,830 ) 63,037 Deferred taxes — — 15,186 — 15,186 $ 5,317,094 $ 3,388,867 $ 4,356,331 $ (7,976,782 ) $ 5,085,510 LIABILITIES AND STOCKHOLDERS’ EQUITY Current portion of long-term debt $ 4,093 $ — $ 12,629 $ — $ 16,722 Accounts payable 593,331 44,043 139,193 (588,519 ) 188,048 Income taxes payable (383 ) 373 11,300 — 11,290 Accrued expenses 75,308 25,988 194,158 (4,645 ) 290,809 Total current liabilities 672,349 70,404 357,280 (593,164 ) 506,869 Long-term debt, net of current portion 1,060,777 — 1,196,476 (492,830 ) 1,764,423 Other noncurrent liabilities 69,169 — 37,434 — 106,603 Deferred income taxes 105,029 — 163,347 — 268,376 Total liabilities 1,907,324 70,404 1,754,537 (1,085,994 ) 2,646,271 Total stockholders’ equity 3,409,770 3,318,463 2,601,794 (6,890,788 ) 2,439,239 $ 5,317,094 $ 3,388,867 $ 4,356,331 $ (7,976,782 ) $ 5,085,510 Condensed Consolidated Balance Sheet As of December 30, 2017 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated ASSETS Cash and cash equivalents $ 1,724 $ 2,993 $ 102,057 $ — $ 106,774 Restricted cash 103 — 39 — 142 Accounts receivable 37,453 465,653 436,874 (548,133 ) 391,847 Inventories 18,049 84,805 255,329 — 358,183 Income taxes refundable 1,591 — 2,918 — 4,509 Prepaid expenses 10,787 3,141 24,398 — 38,326 Other current assets 7,117 923 48,624 — 56,664 Total current assets 76,824 557,515 870,239 (548,133 ) 956,445 Investment in subsidiaries 4,734,618 1,167,246 844,044 (6,745,908 ) — Property, plant and equipment, net 278,121 501,842 865,859 — 1,645,822 Intangible assets, net 17,034 258,970 400,496 — 676,500 Goodwill 21,860 551,837 727,396 — 1,301,093 Investment in unconsolidated subsidiary 4,341 — 297,697 — 302,038 Other assets 42,078 314,166 193,923 (487,883 ) 62,284 Deferred income taxes — — 14,043 — 14,043 $ 5,174,876 $ 3,351,576 $ 4,213,697 $ (7,781,924 ) $ 4,958,225 LIABILITIES AND STOCKHOLDERS’ EQUITY Current portion of long-term debt $ 115 $ — $ 16,028 $ — $ 16,143 Accounts payable 555,894 37,466 169,033 (544,976 ) 217,417 Income taxes payable 32 373 11,895 — 12,300 Accrued expenses 105,625 30,542 180,613 (3,157 ) 313,623 Total current liabilities 661,666 68,381 377,569 (548,133 ) 559,483 Long-term debt, net of current portion 1,030,736 — 1,155,197 (487,883 ) 1,698,050 Other noncurrent liabilities 69,711 — 36,576 — 106,287 Deferred income taxes 106,543 — 160,165 — 266,708 Total liabilities 1,868,656 68,381 1,729,507 (1,036,016 ) 2,630,528 Total stockholders’ equity 3,306,220 3,283,195 2,484,190 (6,745,908 ) 2,327,697 $ 5,174,876 $ 3,351,576 $ 4,213,697 $ (7,781,924 ) $ 4,958,225 Condensed Consolidated Statements of Operations For the three months ended March 31, 2018 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 119,625 $ 344,603 $ 467,808 $ (56,662 ) $ 875,374 Cost and expenses: Cost of sales and operating expenses 95,868 271,237 367,656 (56,662 ) 678,099 Selling, general and administrative expenses 43,778 12,837 30,287 — 86,902 Depreciation and amortization 11,059 26,291 41,269 — 78,619 Total costs and expenses 150,705 310,365 439,212 (56,662 ) 843,620 Operating income/(loss) (31,080 ) 34,238 28,596 — 31,754 Interest expense (14,364 ) 3,763 (12,523 ) — (23,124 ) Foreign currency gains/(losses) (23 ) (63 ) (1,395 ) — (1,481 ) Other income/(expense), net (3,410 ) (1,326 ) 2,220 — (2,516 ) Equity in net income/(loss) of unconsolidated subsidiaries (498 ) — 97,652 — 97,154 Earnings in investments in subsidiaries 144,880 — — (144,880 ) — Income/(loss) before taxes 95,505 36,612 114,550 (144,880 ) 101,787 Income taxes (benefit) (1,800 ) 1,335 4,177 — 3,712 Net income attributable to noncontrolling interests — — (770 ) — (770 ) Net income/(loss) attributable to Darling $ 97,305 $ 35,277 $ 109,603 $ (144,880 ) $ 97,305 Condensed Consolidated Statements of Operations For the three months ended April 1, 2017 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 136,157 $ 360,184 $ 439,788 $ (57,619 ) $ 878,510 Cost and expenses: Cost of sales and operating expenses 109,663 292,771 343,151 (57,619 ) 687,966 Selling, general and administrative expenses 38,969 14,177 33,777 — 86,923 Depreciation and amortization 10,285 25,436 35,393 — 71,114 Total costs and expenses 158,917 332,384 412,321 (57,619 ) 846,003 Operating income/(loss) (22,760 ) 27,800 27,467 — 32,507 Interest expense (13,586 ) 4,023 (12,117 ) — (21,680 ) Foreign currency gains/(losses) (6 ) (25 ) (233 ) — (264 ) Other income/(expense), net (3,748 ) 32 1,663 — (2,053 ) Equity in net income/(loss) of unconsolidated subsidiaries (373 ) — 1,079 — 706 Earnings in investments in subsidiaries 38,318 — — (38,318 ) — Income/(loss) before taxes (2,155 ) 31,830 17,859 (38,318 ) 9,216 Income taxes (7,984 ) 6,279 3,523 — 1,818 Net income attributable to noncontrolling interests — — (1,569 ) — (1,569 ) Net income/(loss) attributable to Darling $ 5,829 $ 25,551 $ 12,767 $ (38,318 ) $ 5,829 Condensed Consolidated Statements of Comprehensive Income/(Loss) For the three months ended March 31, 2018 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income/(loss) $ 98,075 $ 35,277 $ 109,603 $ (144,880 ) $ 98,075 Other comprehensive income/(loss), net of tax: Foreign currency translation — — 17,295 — 17,295 Pension adjustments 566 — 101 — 667 Natural gas swap derivative adjustments 22 — — — 22 Corn option derivative adjustments (1,605 ) — — — (1,605 ) Total other comprehensive income/(loss), net of tax (1,017 ) — 17,396 — 16,379 Total comprehensive income/(loss) 97,058 35,277 126,999 (144,880 ) 114,454 Total comprehensive loss attributable to noncontrolling interest — — 1,287 — 1,287 Total comprehensive income/(loss) attributable to Darling $ 97,058 $ 35,277 $ 125,712 $ (144,880 ) $ 113,167 Condensed Consolidated Statements of Comprehensive Income/(Loss) For the three months ended April 1, 2017 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income/(loss) $ 7,398 $ 25,551 $ 12,767 $ (38,318 ) $ 7,398 Other comprehensive income/(loss), net of tax: Foreign currency translation — — 15,679 — 15,679 Pension adjustments 641 — 118 — 759 Corn option derivative adjustments (1,102 ) — — — (1,102 ) Total other comprehensive income/(loss), net of tax (461 ) — 15,797 — 15,336 Total comprehensive income/(loss) 6,937 25,551 28,564 (38,318 ) 22,734 Total comprehensive income attributable to noncontrolling interest — — 1,247 — 1,247 Total comprehensive income/(loss) attributable to Darling $ 6,937 $ 25,551 $ 27,317 $ (38,318 ) $ 21,487 Condensed Consolidated Statements of Cash Flows For the three months ended March 31, 2018 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Cash flows from operating activities: Net income/(loss) $ 98,075 $ 35,277 $ 109,603 $ (144,880 ) $ 98,075 Earnings in investments in subsidiaries (144,880 ) — — 144,880 — Other operating cash flows 30,782 (24,262 ) (77,671 ) — (71,151 ) Net cash provided by operating activities (16,023 ) 11,015 31,932 — 26,924 Cash flows from investing activities: Capital expenditures (12,183 ) (13,396 ) (31,008 ) — (56,587 ) Investment in subsidiaries and affiliates (3,500 ) — — — (3,500 ) Proceeds from sale of investment in subsidiary — — 2,805 — 2,805 Gross proceeds from sale of property, plant and equipment and other assets 828 321 330 — 1,479 Proceeds from insurance settlements — 503 — — 503 Payments related to routes and other intangibles — — (15 ) — (15 ) Net cash used in investing activities (14,855 ) (12,572 ) (27,888 ) — (55,315 ) Cash flows from financing activities: Proceeds for long-term debt — — 3,876 — 3,876 Payments on long-term debt (22 ) — (9,600 ) — (9,622 ) Borrowings from revolving facilities 62,000 — 73,184 — 135,184 Payments on revolving facilities (29,000 ) — (51,019 ) — (80,019 ) Net cash overdraft financing — — (331 ) — (331 ) Deferred loan costs (1,094 ) — — — (1,094 ) Issuances of common stock 182 — — — 182 Minimum withholding taxes paid on stock awards (2,013 ) — (5 ) — (2,018 ) Net cash used in financing activities 30,053 — 16,105 — 46,158 Effect of exchange rate changes on cash — — (1,672 ) — (1,672 ) Net increase/(decrease) in cash, cash equivalents and restricted cash (825 ) (1,557 ) 18,477 — 16,095 Cash, cash equivalents and restricted cash at beginning of period 1,827 2,993 102,096 — 106,916 Cash, cash equivalents and restricted cash at end of period $ 1,002 $ 1,436 $ 120,573 $ — $ 123,011 Condensed Consolidated Statements of Cash Flows For the three months ended April 1, 2017 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Cash flows from operating activities: Net income/(loss) $ 7,398 $ 25,551 $ 12,767 $ (38,318 ) $ 7,398 Earnings in investments in subsidiaries (38,318 ) — — 38,318 — Other operating cash flows 56,236 (9,676 ) 40,500 — 87,060 Net cash provided by operating activities 25,316 15,875 53,267 — 94,458 Cash flows from investing activities: Capital expenditures (18,732 ) (19,689 ) (23,871 ) — (62,292 ) Investment in subsidiaries and affiliates (2,250 ) — — — (2,250 ) Gross proceeds from sale of property, plant and equipment and other assets 304 608 428 — 1,340 Proceeds from insurance settlements — — 3,301 — 3,301 Net cash used in investing activities (20,678 ) (19,081 ) (20,142 ) — (59,901 ) Cash flows from financing activities: Proceeds for long-term debt — — 8,649 — 8,649 Payments on long-term debt (1,522 ) — (7,743 ) — (9,265 ) Borrowings from revolving credit facility 47,000 — — — 47,000 Payments on revolving credit facility (47,000 ) — (5,327 ) — (52,327 ) Net cash overdraft financing — — (1,077 ) — (1,077 ) Deferred loan costs (1,135 ) — — — (1,135 ) Issuances of common stock 22 — — — 22 Minimum withholding taxes paid on stock awards (1,981 ) — (14 ) — (1,995 ) Distributions to noncontrolling interests — — (433 ) — (433 ) Net cash used in financing activities (4,616 ) — (5,945 ) — (10,561 ) Effect of exchange rate changes on cash — — 309 — 309 Net increase/(decrease) in cash, cash equivalents and restricted cash 22 (3,206 ) 27,489 — 24,305 Cash, cash equivalents and restricted cash at beginning of period 1,573 5,754 107,530 — 114,857 Cash, cash equivalents and restricted cash at end of period $ 1,595 $ 2,548 $ 135,019 $ — $ 139,162 |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Darling and its consolidated subsidiaries. Noncontrolling interests represent the outstanding ownership interest in the Company's consolidated subsidiaries that are not owned by the Company. In the accompanying Consolidated Statements of Operations, the noncontrolling interest in net income of the consolidated subsidiaries is shown as an allocation of the Company's net income and is presented separately as “Net income attributable to noncontrolling interests.” In the Company's Consolidated Balance Sheets, noncontrolling interests represent the ownership interests in the Company consolidated subsidiaries' net assets held by parties other than the Company. These ownership interests are presented separately as “Noncontrolling interests” within “Stockholders' Equity.” All significant intercompany balances and transactions have been eliminated in consolidation. |
Fiscal Periods | Fiscal Periods The Company has a 52 / 53 week fiscal year ending on the Saturday nearest December 31 . Fiscal periods for the consolidated financial statements included herein are as of March 31, 2018 , and include the 13 weeks ended March 31, 2018 , and the 13 weeks ended April 1, 2017 . |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The Company considers all short-term highly liquid instruments, with an original maturity of three months or less, to be cash equivalents. Cash balances are recorded net of book overdrafts when a bank right-of-offset exists. All other book overdrafts are recorded in accounts payable and the change in the related balance is reflected in operating activities on the Consolidated Statement of Cash Flows. In addition, the Company has bank overdrafts, which are considered a form of short-term financing with changes in the related balance reflected in financing activities in the Consolidated Statement of Cash Flows. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from customers’ non-payment of trade accounts receivable owed to the Company. These trade receivables arise in the ordinary course of business from sales of raw material, finished product or services to the Company’s customers. The estimate of allowance for doubtful accounts is based upon the Company’s bad debt experience, prevailing market conditions, and aging of trade accounts receivable, among other factors. If the financial condition of the Company’s customers deteriorates, resulting in the customers’ inability to pay the Company’s receivables as they come due, additional allowances for doubtful accounts may be required. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue on sales when control of the promised finished product is transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for the finished product. Service revenues are recognized in the fiscal month the service occurs. Certain customers may be required to prepay prior to shipment in order to maintain payment protection related to certain foreign and domestic sales. These amounts are recorded as unearned revenue and recognized when control of the promised finished product is transferred to the Company's customer. |
Income Taxes | The Company has provided income taxes for the three month periods ended March 31, 2018 and April 1, 2017 , based on its estimate of the effective tax rate for the entire 2018 and 2017 fiscal years. The Company’s estimated annual effective tax rate is based on forecasts of income by jurisdiction, permanent differences between book and tax income, the relative proportion of income and losses by jurisdiction, and statutory income tax rates. Discrete events such as the assessment of the ultimate outcome of tax audits, audit settlements, recognizing previously unrecognized tax benefits due to the lapsing of statutes of limitation, recognizing or derecognizing deferred tax assets due to projections of income or loss and changes in tax laws are recognized in the period in which they occur. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company expects to have access to its offshore earnings with no material U.S. tax impact. Therefore, the Company does not consider earnings from its foreign subsidiaries to be permanently reinvested offshore. The Company periodically assesses whether it is more likely than not that it will generate sufficient taxable income to realize its deferred income tax assets. In making this determination, the Company considers all available positive and negative evidence and makes certain assumptions. The Company considers, among other things, its deferred tax liabilities, the overall business environment, its historical earnings and losses, current industry trends and its outlook for future years. |
Foreign Currency Translation and Remeasurement | Foreign Currency Translation and Remeasurement Foreign currency translation is included as a component of accumulated other comprehensive loss and reflects the adjustments resulting from translating the foreign currency denominated financial statements of foreign subsidiaries into U.S. dollars. The functional currency of the Company's foreign subsidiaries is the currency of the primary economic environment in which the entity operates, which is generally the local currency of the country. Accordingly, assets and liabilities of the foreign subsidiaries are translated into U.S. dollars at fiscal period end exchange rates, including intercompany foreign currency transactions that are of long-term investment nature. Income and expense items are translated at average exchange rates occurring during the period. Changes in exchange rates that affect cash flows and the related receivables or payables are recognized as transaction gains and losses in determining net income. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. In the consolidated statements of operations, previously reported amounts have been adjusted to reflect the correction of an immaterial classification error in net sales and cost of sales as disclosed in Company’s Form 10-K for the fiscal year ended December 30, 2017 . In addition, previous reported net periodic pension costs have been reclassified in the consolidated statements of operations to conform to current year presentation, as described in Note 13 and previously reported amounts in the consolidated statements of cash flows have been adjusted to reflect the adoption of the presentation of restricted cash. |
Earnings Per Share | Earnings Per Share Basic income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares including non-vested and restricted shares outstanding during the period. Diluted income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares outstanding during the period increased by dilutive common equivalent shares determined using the treasury stock method. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash on the consolidated balance sheet that sum to the total of the same amounts shown in the consolidated statement of cash flows (in thousands): March 31, 2018 December 30, 2017 Cash and cash equivalents $ 122,869 $ 106,774 Restricted cash 142 142 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flow $ 123,011 $ 106,916 |
Net Income per Common Share | Basic income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares including non-vested and restricted shares outstanding during the period. Diluted income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares outstanding during the period increased by dilutive common equivalent shares determined using the treasury stock method. Net Income per Common Share (in thousands, except per share data) Three Months Ended March 31, 2018 April 1, 2017 Income Shares Per Share Income Shares Per Share Basic: Net Income attributable to Darling $ 97,305 164,772 $ 0.59 $ 5,829 164,738 $ 0.04 Diluted: Effect of dilutive securities: Add: Option shares in the money and dilutive effect of non-vested stock awards 5,071 2,012 Less: Pro forma treasury shares (2,101 ) (886 ) Diluted: Net income attributable to Darling $ 97,305 167,742 $ 0.58 $ 5,829 165,864 $ 0.04 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | A summary of inventories follows (in thousands): March 31, 2018 December 30, 2017 Finished product $ 176,932 $ 171,277 Work in process 107,910 101,540 Raw material 32,648 33,173 Supplies and other 55,631 52,193 $ 373,121 $ 358,183 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Intangible Asset Disclosure Text Block [Abstract] | |
Schedule of Intangible Assets | The gross carrying amount of intangible assets not subject to amortization and intangible assets subject to amortization is as follows (in thousands): March 31, 2018 December 30, 2017 Indefinite Lived Intangible Assets Trade names $ 55,473 $ 54,682 55,473 54,682 Finite Lived Intangible Assets: Routes 392,477 397,808 Permits 515,830 512,659 Non-compete agreements 3,890 3,963 Trade names 76,354 76,558 Royalty, consulting, land use rights and leasehold 15,162 14,666 1,003,713 1,005,654 Accumulated Amortization: Routes (140,001 ) (136,592 ) Permits (221,317 ) (211,264 ) Non-compete agreements (2,497 ) (2,387 ) Trade names (31,839 ) (30,235 ) Royalty, consulting, land use rights and leasehold (3,677 ) (3,358 ) (399,331 ) (383,836 ) Total Intangible assets, less accumulated amortization $ 659,855 $ 676,500 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Intangible Asset Disclosure Text Block [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill (in thousands): Feed Ingredients Food Ingredients Fuel Ingredients Total Balance at December 30, 2017 Goodwill $ 848,167 $ 344,471 $ 124,369 $ 1,317,007 Accumulated impairment losses (15,914 ) — — (15,914 ) 832,253 344,471 124,369 1,301,093 Goodwill acquired during year — — — — Foreign currency translation 201 6,560 1,754 8,515 Balance at March 31, 2018 Goodwill 848,368 351,031 126,123 1,325,522 Accumulated impairment losses (15,914 ) — — (15,914 ) $ 832,454 $ 351,031 $ 126,123 $ 1,309,608 |
Investment in Unconsolidated 33
Investment in Unconsolidated Subsidiary (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Selected financial information for the Company's DGD Joint Venture is as follows (in thousands): (in thousands) March 31, 2018 December 31, 2017 Assets: Total current assets $ 295,775 $ 202,778 Property, plant and equipment, net 475,218 435,328 Other assets 11,959 4,655 Total assets $ 782,952 $ 642,761 Liabilities and members' equity: Total current portion of long term debt $ — $ 17,023 Total other current liabilities 40,242 40,705 Total long term debt — 36,730 Total other long term liabilities 458 450 Total members' equity 742,252 547,853 Total liabilities and member's equity $ 782,952 $ 642,761 Three Months Ended (in thousands) March 31, 2018 March 31, 2017 Revenues: Operating revenues $ 150,321 $ 125,397 Expenses: Total costs and expenses less depreciation, amortization and accretion expense (49,821 ) 115,322 Depreciation, amortization and accretion expense 6,120 8,113 Total costs and expenses (43,701 ) 123,435 Operating income 194,022 1,962 Other income 377 223 Interest and debt expense, net — (990 ) Net income $ 194,399 $ 1,195 |
Accrued Expense (Tables)
Accrued Expense (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following (in thousands): March 31, 2018 December 30, 2017 Compensation and benefits $ 80,714 $ 102,474 Accrued income, ad valorem, and franchise taxes 36,081 30,546 Accrued operating expenses 67,878 61,230 Other accrued expense 106,136 119,373 $ 290,809 $ 313,623 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consists of the following (in thousands): March 31, 2018 December 30, 2017 Amended Credit Agreement: Revolving Credit Facility ($3.9 million denominated in CAD and $18.5 million denominated in euro at March 31, 2018) $ 55,374 $ — Term Loan A ($51.7 million and $53.1 million denominated in CAD at March 31, 2018 and December 30, 2017, respectively) 94,924 96,365 Less unamortized deferred loan costs (623 ) (671 ) Carrying value Term Loan A 94,301 95,694 Term Loan B 505,000 505,000 Less unamortized deferred loan costs (10,238 ) (10,578 ) Carrying value Term Loan B 494,762 494,422 5.375% Senior Notes due 2022 with effective interest of 5.72% 500,000 500,000 Less unamortized deferred loan costs (5,957 ) (6,638 ) Carrying value 5.375% Senior Notes due 2022 494,043 493,362 4.75% Senior Notes due 2022 - Denominated in euro with effective interest of 5.10% 634,918 617,356 Less unamortized deferred loan costs - Denominated in euro (8,529 ) (8,675 ) Carrying value 4.75% Senior Notes due 2022 626,389 608,681 Other Notes and Obligations 16,276 22,034 1,781,145 1,714,193 Less Current Maturities 16,722 16,143 $ 1,764,423 $ 1,698,050 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of Comprehensive Income (Loss) | The components of other comprehensive income (loss) and the related tax impacts for the three months ended March 31, 2018 and April 1, 2017 are as follows (in thousands): Three Months Ended Before-Tax Tax (Expense) Net-of-Tax Amount or Benefit Amount March 31, 2018 April 1, 2017 March 31, 2018 April 1, 2017 March 31, 2018 April 1, 2017 Defined benefit pension plans Amortization of prior service cost/(benefit) $ 9 $ 9 $ (3 ) $ (3 ) $ 6 $ 6 Amortization of actuarial loss 888 1,203 (227 ) (450 ) 661 753 Total defined benefit pension plans 897 1,212 (230 ) (453 ) 667 759 Natural gas swap derivatives Loss/(gain) reclassified to net income 14 — (4 ) — 10 — Gain/(loss) activity recognized in other comprehensive income (loss) 16 — (4 ) — 12 — Total natural gas swap derivatives 30 — (8 ) — 22 — Corn option derivatives Loss/(gain) reclassified to net income (668 ) (1,185 ) 173 460 (495 ) (725 ) Gain/(loss) activity recognized in other comprehensive income (loss) (1,497 ) (615 ) 387 238 (1,110 ) (377 ) Total corn option derivatives (2,165 ) (1,800 ) 560 698 (1,605 ) (1,102 ) Foreign currency translation 17,295 15,679 — — 17,295 15,679 Other comprehensive income (loss) $ 16,057 $ 15,091 $ 322 $ 245 $ 16,379 $ 15,336 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | The following table presents the amounts reclassified out of each component of other comprehensive income (loss), net of tax for the three months ended March 31, 2018 and April 1, 2017 as follows (in thousands): Three Months Ended March 31, 2018 April 1, 2017 Statement of Operations Classification Derivative instruments Natural gas swap derivatives $ (14 ) $ — Cost of sales and operating expenses Corn option derivatives 668 1,185 Cost of sales and operating expenses 654 1,185 Total before tax (169 ) (460 ) Income taxes 485 725 Net of tax Defined benefit pension plans Amortization of prior service cost $ (9 ) $ (9 ) (a) Amortization of actuarial loss (888 ) (1,203 ) (a) (897 ) (1,212 ) Total before tax 230 453 Income taxes (667 ) (759 ) Net of tax Total reclassifications $ (182 ) $ (34 ) Net of tax (a) These items are included in the computation of net periodic pension cost. See Note 13 Employee Benefit Plans for additional information. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents changes in each component of accumulated comprehensive income (loss) as of March 31, 2018 as follows (in thousands): Three Months Ended March 31, 2018 Foreign Currency Derivative Defined Benefit Translation Instruments Pension Plans Total Accumulated Other Comprehensive Income (loss) December 30, 2017, attributable to Darling, net of tax $ (183,161 ) $ 1,372 $ (27,735 ) $ (209,524 ) Other comprehensive gain (loss) before reclassifications 17,295 (1,098 ) — 16,197 Amounts reclassified from accumulated other comprehensive income (loss) — (485 ) 667 182 Reclassification of tax effect (a) — 291 (5,073 ) (4,782 ) Net current-period other comprehensive income 17,295 (1,292 ) (4,406 ) 11,597 Noncontrolling interest 517 — — 517 Accumulated Other Comprehensive Income (loss) March 31, 2018, attributable to Darling, net of tax (166,383 ) $ 80 $ (32,141 ) $ (198,444 ) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Net pension cost | Net pension cost for the three months ended March 31, 2018 and April 1, 2017 includes the following components (in thousands): Pension Benefits Three Months Ended March 31, April 1, Service cost $ 799 $ 735 Interest cost 1,625 1,669 Expected return on plan assets (2,064 ) (1,788 ) Amortization of prior service cost 9 9 Amortization of net loss 888 1,203 Net pension cost $ 1,257 $ 1,828 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | All of these transactions are currently not designated for hedge accounting (in thousands): Functional Currency Contract Currency Type Amount Type Amount Brazilian real 45,094 Euro 11,210 Brazilian real 74,534 U.S. dollar 22,735 Euro 76,963 U.S. dollar 95,421 Euro 7,627 Polish zloty 32,280 Euro 5,772 Japanese yen 763,515 Euro 86,745 Chinese renminbi 680,847 Euro 11,573 Australian dollar 18,600 Euro 3,001 British pound 2,642 Polish zloty 70,770 Euro 16,740 British pound 184 Euro 161 British pound 49 U.S. dollar 70 Japanese yen 371,342 U.S. dollar 3,375 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the fair value of the Company’s derivative instruments under FASB authoritative guidance as of March 31, 2018 and December 30, 2017 (in thousands): Derivatives Designated Balance Sheet Asset Derivatives Fair Value as Hedges Location March 31, 2018 December 30, 2017 Corn options Other current assets $ 282 $ 3,418 Total asset derivatives designated as hedges $ 282 $ 3,418 Derivatives Not Designated as Hedges Foreign currency contracts Other current assets $ 585 $ 332 Corn options and futures Other current assets 185 596 Total asset derivatives not designated as hedges $ 770 $ 928 Total asset derivatives $ 1,052 $ 4,346 Derivatives Designated Balance Sheet Liability Derivatives Fair Value as Hedges Location March 31, 2018 December 30, 2017 Corn options Accrued expenses $ 278 $ — Natural gas swaps Accrued expenses — 24 Soybean meal options Accrued expenses 194 — Total liability derivatives designated as hedges $ 472 $ 24 Derivatives Not Designated as Hedges Foreign currency contracts Accrued expenses $ 1,977 $ 2,288 Corn options and futures Accrued expenses 316 14 Total liability derivatives not designated as hedges $ 2,293 $ 2,302 Total liability derivatives $ 2,765 $ 2,326 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The effect of the Company’s derivative instruments on the consolidated financial statements as of and for the three months ended March 31, 2018 and April 1, 2017 is as follows (in thousands): Derivatives Designated as Cash Flow Hedges Gain or (Loss) Recognized in Other Comprehensive Income (“OCI”) on Derivatives (Effective Portion) (a) Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (b) Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) (c) 2018 2017 2018 2017 2018 2017 Corn options $ (1,497 ) $ (615 ) $ 668 $ 1,185 $ (1,123 ) $ 88 Natural gas swaps 16 — (14 ) — 25 — Soybean meal options — — — — (648 ) — Total $ (1,481 ) $ (615 ) $ 654 $ 1,185 $ (1,746 ) $ 88 (a) Amount recognized in accumulated OCI (effective portion) is reported as accumulated other comprehensive income/(loss) of approximately $ (1.5) million and $ (0.6) million recorded net of taxes of approximately $ 0.4 million and $ 0.2 million as of March 31, 2018 and April 1, 2017 , respectively. (b) Gains and (losses) reclassified from accumulated OCI into income (effective portion) for corn options and natural gas swaps are included in cost of sales, respectively, in the Company’s consolidated statements of operations. (c) Gains and (losses) recognized in income on derivatives (ineffective portion) for corn options, natural gas swaps and soybean meal options are included in other income/ (expense), net in the Company’s consolidated statements of operations. |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The table below summarizes the effect of derivatives not designated as hedges on the Company's consolidated statements of operations for the three months ended March 31, 2018 and April 1, 2017 (in thousands): Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges Three Months Ended Derivatives not designated as hedging instruments Location March 31, 2018 April 1, 2017 Foreign Exchange Foreign currency loss/(gain) $ 1,654 $ 3,146 Foreign Exchange Selling, general and administrative expense 489 (1,481 ) Corn options and futures Net sales (309 ) (22 ) Corn options and futures Cost of sales and operating expenses 512 270 Soybean Meal Net sales — (272 ) Soybean Oil Net sales — 45 Total $ 2,346 $ 1,686 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair value measured on recurring basis | The fair value hierarchy has three levels based on the reliability of the inputs used to determine the fair value. Fair Value Measurements at March 31, 2018 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (In thousands of dollars) Total (Level 1) (Level 2) (Level 3) Assets: Derivative instruments $ 1,052 $ — $ 1,052 $ — Total Assets $ 1,052 $ — $ 1,052 $ — Liabilities: Derivative instruments $ 2,765 $ — $ 2,765 $ — 5.375% Senior notes 508,750 — 508,750 — 4.75% Senior notes 665,076 — 665,076 — Term loan A 94,450 — 94,450 — Term loan B 510,353 — 510,353 — Revolver debt 54,544 — 54,544 — Total Liabilities $ 1,835,938 $ — $ 1,835,938 $ — Fair Value Measurements at December 30, 2017 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (In thousands of dollars) Total (Level 1) (Level 2) (Level 3) Assets: Derivative instruments $ 4,346 $ — $ 4,346 $ — Total Assets $ 4,346 $ — $ 4,346 $ — Liabilities: Derivative instruments $ 2,326 $ — $ 2,326 $ — 5.375% Senior notes 513,100 — 513,100 — 4.75% Senior notes 646,681 — 646,681 — Term loan A 95,883 — 95,883 — Term loan B 511,616 — 511,616 — Total Liabilities $ 1,769,606 $ — $ 1,769,606 $ — |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Three Months Ended March 31, 2018 Net Sales $ 485,798 $ 305,520 $ 84,056 $ — $ 875,374 Cost of sales and operating expenses 369,088 249,185 59,826 — 678,099 Gross Margin 116,710 56,335 24,230 — 197,275 Selling, general and administrative expense 48,265 23,861 (1,398 ) 16,174 86,902 Depreciation and amortization 46,789 20,640 8,471 2,719 78,619 Segment operating income/(loss) 21,656 11,834 17,157 (18,893 ) 31,754 Equity in net income of unconsolidated subsidiaries (45 ) — 97,199 — 97,154 Segment income/(loss) 21,611 11,834 114,356 (18,893 ) 128,908 Total other expense (27,121 ) Income before income taxes $ 101,787 Segment assets at March 31, 2018 $ 2,589,281 $ 1,525,149 $ 809,895 $ 161,185 $ 5,085,510 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Three Months Ended April 1, 2017 Net Sales $ 552,624 $ 266,226 $ 59,660 $ — $ 878,510 Cost of sales and operating expenses 432,576 209,392 45,998 — 687,966 Gross Margin 120,048 56,834 13,662 — 190,544 Selling, general and administrative expense 44,837 24,977 3,263 13,846 86,923 Depreciation and amortization 43,719 17,601 6,845 2,949 71,114 Segment operating income/(loss) 31,492 14,256 3,554 (16,795 ) 32,507 Equity in net income of unconsolidated subsidiaries 109 — 597 — 706 Segment income/(loss) 31,601 14,256 4,151 (16,795 ) 33,213 Total other expense (23,997 ) Income before income taxes $ 9,216 Segment assets at December 30, 2017 $ 2,614,545 $ 1,499,027 $ 688,890 $ 155,763 $ 4,958,225 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of impact of adopting Topic 606 | The following table summarizes the impact of adopting Topic 606 on the Company's consolidated financial statements for the three months ended March 31, 2018 (in thousands): Impact of changes in accounting policies As reported Adjustments Balances without adoption of Topic 606 Net sales $ 875,374 46,187 $ 921,561 Cost of sales and operating expenses $ 678,099 46,187 $ 724,286 |
Disaggregation of Revenue | The following table presents the Company revenues disaggregated by geographic area and major product types by reportable segment for the three months ended March 31, 2018 and April 1, 2017 (in thousands): Three Months Ended March 31, 2018 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area North America $ 390,376 $ 44,277 $ 21,540 $ 456,193 Europe 87,790 183,639 62,516 333,945 China 5,678 43,912 — 49,590 South America — 14,344 — 14,344 Other 1,954 19,348 — 21,302 Net sales $ 485,798 $ 305,520 $ 84,056 $ 875,374 Major product types Fats $ 143,552 $ 44,819 $ — $ 188,371 Used cooking oil 36,608 — — 36,608 Proteins 203,395 — — 203,395 Bakery 46,751 — — 46,751 Other rendering 31,362 — — 31,362 Food ingredients — 233,923 — 233,923 Bioenergy — — 62,516 62,516 Biofuels — — 21,540 21,540 Other 24,130 26,778 — 50,908 Net sales $ 485,798 $ 305,520 $ 84,056 $ 875,374 Three Months Ended April 1, 2017 (a) Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area Revenues North America $ 422,935 $ 45,725 $ 8,083 $ 476,743 Europe 122,927 149,701 51,577 324,205 China 4,734 41,660 — 46,394 South America — 12,974 — 12,974 Other 2,028 16,166 — 18,194 Net sales $ 552,624 $ 266,226 $ 59,660 $ 878,510 Major product types Fats $ 158,005 $ 40,893 $ — $ 198,898 Used cooking oil 44,046 — — 44,046 Proteins 198,151 — — 198,151 Bakery 56,097 — — 56,097 Other rendering 73,600 — — 73,600 Food ingredients — 206,279 — 206,279 Bioenergy — — 51,577 51,577 Biofuels — — 8,083 8,083 Other 22,725 19,054 — 41,779 Net sales $ 552,624 $ 266,226 $ 59,660 $ 878,510 |
Guarantor Financial Informati42
Guarantor Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Guarantor Financial Information [Abstract] | |
Guarantor Financial Information Condensed Consolidating Balance Sheet | Condensed Consolidated Balance Sheet As of March 31, 2018 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated ASSETS Cash and cash equivalents $ 899 $ 1,436 $ 120,534 $ — $ 122,869 Restricted cash 103 — 39 — 142 Accounts receivable 37,894 513,155 455,774 (593,164 ) 413,659 Inventories 12,547 84,727 275,847 — 373,121 Income taxes refundable 2,270 — 2,424 — 4,694 Prepaid expenses 11,188 2,636 26,883 — 40,707 Other current assets 3,066 71 12,751 — 15,888 Total current assets 67,967 602,025 894,252 (593,164 ) 971,080 Investment in subsidiaries 4,879,498 1,167,246 844,044 (6,890,788 ) — Property, plant and equipment, net 282,431 503,200 871,978 — 1,657,609 Intangible assets, net 16,041 250,400 393,414 — 659,855 Goodwill 21,860 551,837 735,911 — 1,309,608 Investment in unconsolidated subsidiaries 7,344 — 401,791 — 409,135 Other assets 41,953 314,159 199,755 (492,830 ) 63,037 Deferred taxes — — 15,186 — 15,186 $ 5,317,094 $ 3,388,867 $ 4,356,331 $ (7,976,782 ) $ 5,085,510 LIABILITIES AND STOCKHOLDERS’ EQUITY Current portion of long-term debt $ 4,093 $ — $ 12,629 $ — $ 16,722 Accounts payable 593,331 44,043 139,193 (588,519 ) 188,048 Income taxes payable (383 ) 373 11,300 — 11,290 Accrued expenses 75,308 25,988 194,158 (4,645 ) 290,809 Total current liabilities 672,349 70,404 357,280 (593,164 ) 506,869 Long-term debt, net of current portion 1,060,777 — 1,196,476 (492,830 ) 1,764,423 Other noncurrent liabilities 69,169 — 37,434 — 106,603 Deferred income taxes 105,029 — 163,347 — 268,376 Total liabilities 1,907,324 70,404 1,754,537 (1,085,994 ) 2,646,271 Total stockholders’ equity 3,409,770 3,318,463 2,601,794 (6,890,788 ) 2,439,239 $ 5,317,094 $ 3,388,867 $ 4,356,331 $ (7,976,782 ) $ 5,085,510 Condensed Consolidated Balance Sheet As of December 30, 2017 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated ASSETS Cash and cash equivalents $ 1,724 $ 2,993 $ 102,057 $ — $ 106,774 Restricted cash 103 — 39 — 142 Accounts receivable 37,453 465,653 436,874 (548,133 ) 391,847 Inventories 18,049 84,805 255,329 — 358,183 Income taxes refundable 1,591 — 2,918 — 4,509 Prepaid expenses 10,787 3,141 24,398 — 38,326 Other current assets 7,117 923 48,624 — 56,664 Total current assets 76,824 557,515 870,239 (548,133 ) 956,445 Investment in subsidiaries 4,734,618 1,167,246 844,044 (6,745,908 ) — Property, plant and equipment, net 278,121 501,842 865,859 — 1,645,822 Intangible assets, net 17,034 258,970 400,496 — 676,500 Goodwill 21,860 551,837 727,396 — 1,301,093 Investment in unconsolidated subsidiary 4,341 — 297,697 — 302,038 Other assets 42,078 314,166 193,923 (487,883 ) 62,284 Deferred income taxes — — 14,043 — 14,043 $ 5,174,876 $ 3,351,576 $ 4,213,697 $ (7,781,924 ) $ 4,958,225 LIABILITIES AND STOCKHOLDERS’ EQUITY Current portion of long-term debt $ 115 $ — $ 16,028 $ — $ 16,143 Accounts payable 555,894 37,466 169,033 (544,976 ) 217,417 Income taxes payable 32 373 11,895 — 12,300 Accrued expenses 105,625 30,542 180,613 (3,157 ) 313,623 Total current liabilities 661,666 68,381 377,569 (548,133 ) 559,483 Long-term debt, net of current portion 1,030,736 — 1,155,197 (487,883 ) 1,698,050 Other noncurrent liabilities 69,711 — 36,576 — 106,287 Deferred income taxes 106,543 — 160,165 — 266,708 Total liabilities 1,868,656 68,381 1,729,507 (1,036,016 ) 2,630,528 Total stockholders’ equity 3,306,220 3,283,195 2,484,190 (6,745,908 ) 2,327,697 $ 5,174,876 $ 3,351,576 $ 4,213,697 $ (7,781,924 ) $ 4,958,225 |
Guarantor Financial Information Condensed Consolidating Statements Of Operations | Condensed Consolidated Statements of Operations For the three months ended March 31, 2018 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 119,625 $ 344,603 $ 467,808 $ (56,662 ) $ 875,374 Cost and expenses: Cost of sales and operating expenses 95,868 271,237 367,656 (56,662 ) 678,099 Selling, general and administrative expenses 43,778 12,837 30,287 — 86,902 Depreciation and amortization 11,059 26,291 41,269 — 78,619 Total costs and expenses 150,705 310,365 439,212 (56,662 ) 843,620 Operating income/(loss) (31,080 ) 34,238 28,596 — 31,754 Interest expense (14,364 ) 3,763 (12,523 ) — (23,124 ) Foreign currency gains/(losses) (23 ) (63 ) (1,395 ) — (1,481 ) Other income/(expense), net (3,410 ) (1,326 ) 2,220 — (2,516 ) Equity in net income/(loss) of unconsolidated subsidiaries (498 ) — 97,652 — 97,154 Earnings in investments in subsidiaries 144,880 — — (144,880 ) — Income/(loss) before taxes 95,505 36,612 114,550 (144,880 ) 101,787 Income taxes (benefit) (1,800 ) 1,335 4,177 — 3,712 Net income attributable to noncontrolling interests — — (770 ) — (770 ) Net income/(loss) attributable to Darling $ 97,305 $ 35,277 $ 109,603 $ (144,880 ) $ 97,305 Condensed Consolidated Statements of Operations For the three months ended April 1, 2017 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 136,157 $ 360,184 $ 439,788 $ (57,619 ) $ 878,510 Cost and expenses: Cost of sales and operating expenses 109,663 292,771 343,151 (57,619 ) 687,966 Selling, general and administrative expenses 38,969 14,177 33,777 — 86,923 Depreciation and amortization 10,285 25,436 35,393 — 71,114 Total costs and expenses 158,917 332,384 412,321 (57,619 ) 846,003 Operating income/(loss) (22,760 ) 27,800 27,467 — 32,507 Interest expense (13,586 ) 4,023 (12,117 ) — (21,680 ) Foreign currency gains/(losses) (6 ) (25 ) (233 ) — (264 ) Other income/(expense), net (3,748 ) 32 1,663 — (2,053 ) Equity in net income/(loss) of unconsolidated subsidiaries (373 ) — 1,079 — 706 Earnings in investments in subsidiaries 38,318 — — (38,318 ) — Income/(loss) before taxes (2,155 ) 31,830 17,859 (38,318 ) 9,216 Income taxes (7,984 ) 6,279 3,523 — 1,818 Net income attributable to noncontrolling interests — — (1,569 ) — (1,569 ) Net income/(loss) attributable to Darling $ 5,829 $ 25,551 $ 12,767 $ (38,318 ) $ 5,829 |
Guarantor Financial Information Condensed Consolidating Statements of Comprehensive Income/(Loss) | Condensed Consolidated Statements of Comprehensive Income/(Loss) For the three months ended March 31, 2018 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income/(loss) $ 98,075 $ 35,277 $ 109,603 $ (144,880 ) $ 98,075 Other comprehensive income/(loss), net of tax: Foreign currency translation — — 17,295 — 17,295 Pension adjustments 566 — 101 — 667 Natural gas swap derivative adjustments 22 — — — 22 Corn option derivative adjustments (1,605 ) — — — (1,605 ) Total other comprehensive income/(loss), net of tax (1,017 ) — 17,396 — 16,379 Total comprehensive income/(loss) 97,058 35,277 126,999 (144,880 ) 114,454 Total comprehensive loss attributable to noncontrolling interest — — 1,287 — 1,287 Total comprehensive income/(loss) attributable to Darling $ 97,058 $ 35,277 $ 125,712 $ (144,880 ) $ 113,167 Condensed Consolidated Statements of Comprehensive Income/(Loss) For the three months ended April 1, 2017 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income/(loss) $ 7,398 $ 25,551 $ 12,767 $ (38,318 ) $ 7,398 Other comprehensive income/(loss), net of tax: Foreign currency translation — — 15,679 — 15,679 Pension adjustments 641 — 118 — 759 Corn option derivative adjustments (1,102 ) — — — (1,102 ) Total other comprehensive income/(loss), net of tax (461 ) — 15,797 — 15,336 Total comprehensive income/(loss) 6,937 25,551 28,564 (38,318 ) 22,734 Total comprehensive income attributable to noncontrolling interest — — 1,247 — 1,247 Total comprehensive income/(loss) attributable to Darling $ 6,937 $ 25,551 $ 27,317 $ (38,318 ) $ 21,487 |
Guarantor Financial Information Condensed Consolidating Statements Of Cash Flows | Condensed Consolidated Statements of Cash Flows For the three months ended March 31, 2018 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Cash flows from operating activities: Net income/(loss) $ 98,075 $ 35,277 $ 109,603 $ (144,880 ) $ 98,075 Earnings in investments in subsidiaries (144,880 ) — — 144,880 — Other operating cash flows 30,782 (24,262 ) (77,671 ) — (71,151 ) Net cash provided by operating activities (16,023 ) 11,015 31,932 — 26,924 Cash flows from investing activities: Capital expenditures (12,183 ) (13,396 ) (31,008 ) — (56,587 ) Investment in subsidiaries and affiliates (3,500 ) — — — (3,500 ) Proceeds from sale of investment in subsidiary — — 2,805 — 2,805 Gross proceeds from sale of property, plant and equipment and other assets 828 321 330 — 1,479 Proceeds from insurance settlements — 503 — — 503 Payments related to routes and other intangibles — — (15 ) — (15 ) Net cash used in investing activities (14,855 ) (12,572 ) (27,888 ) — (55,315 ) Cash flows from financing activities: Proceeds for long-term debt — — 3,876 — 3,876 Payments on long-term debt (22 ) — (9,600 ) — (9,622 ) Borrowings from revolving facilities 62,000 — 73,184 — 135,184 Payments on revolving facilities (29,000 ) — (51,019 ) — (80,019 ) Net cash overdraft financing — — (331 ) — (331 ) Deferred loan costs (1,094 ) — — — (1,094 ) Issuances of common stock 182 — — — 182 Minimum withholding taxes paid on stock awards (2,013 ) — (5 ) — (2,018 ) Net cash used in financing activities 30,053 — 16,105 — 46,158 Effect of exchange rate changes on cash — — (1,672 ) — (1,672 ) Net increase/(decrease) in cash, cash equivalents and restricted cash (825 ) (1,557 ) 18,477 — 16,095 Cash, cash equivalents and restricted cash at beginning of period 1,827 2,993 102,096 — 106,916 Cash, cash equivalents and restricted cash at end of period $ 1,002 $ 1,436 $ 120,573 $ — $ 123,011 Condensed Consolidated Statements of Cash Flows For the three months ended April 1, 2017 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Cash flows from operating activities: Net income/(loss) $ 7,398 $ 25,551 $ 12,767 $ (38,318 ) $ 7,398 Earnings in investments in subsidiaries (38,318 ) — — 38,318 — Other operating cash flows 56,236 (9,676 ) 40,500 — 87,060 Net cash provided by operating activities 25,316 15,875 53,267 — 94,458 Cash flows from investing activities: Capital expenditures (18,732 ) (19,689 ) (23,871 ) — (62,292 ) Investment in subsidiaries and affiliates (2,250 ) — — — (2,250 ) Gross proceeds from sale of property, plant and equipment and other assets 304 608 428 — 1,340 Proceeds from insurance settlements — — 3,301 — 3,301 Net cash used in investing activities (20,678 ) (19,081 ) (20,142 ) — (59,901 ) Cash flows from financing activities: Proceeds for long-term debt — — 8,649 — 8,649 Payments on long-term debt (1,522 ) — (7,743 ) — (9,265 ) Borrowings from revolving credit facility 47,000 — — — 47,000 Payments on revolving credit facility (47,000 ) — (5,327 ) — (52,327 ) Net cash overdraft financing — — (1,077 ) — (1,077 ) Deferred loan costs (1,135 ) — — — (1,135 ) Issuances of common stock 22 — — — 22 Minimum withholding taxes paid on stock awards (1,981 ) — (14 ) — (1,995 ) Distributions to noncontrolling interests — — (433 ) — (433 ) Net cash used in financing activities (4,616 ) — (5,945 ) — (10,561 ) Effect of exchange rate changes on cash — — 309 — 309 Net increase/(decrease) in cash, cash equivalents and restricted cash 22 (3,206 ) 27,489 — 24,305 Cash, cash equivalents and restricted cash at beginning of period 1,573 5,754 107,530 — 114,857 Cash, cash equivalents and restricted cash at end of period $ 1,595 $ 2,548 $ 135,019 $ — $ 139,162 |
Summary of Significant Accoun43
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Summary of Significant Accounting Policies [Line Items] | ||
Financing Receivable, Significant Sales | $ 18,800 | $ 0 |
Financing Receivable, Significant Sales, Transaction Fees | 100 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | $ 16,800 | $ 16,000 |
Minimum fiscal year period in days | 364 days | |
Maximum fiscal year period in days | 371 days | |
Fiscal quarter period in days | 91 days | 91 days |
Basic: | ||
Net income | $ 97,305 | $ 5,829 |
Shares (in shares) | 164,772,000 | 164,738,000 |
Per Share (in usd per share) | $ 0.59 | $ 0.04 |
Effect of dilutive securities: [Abstract] | ||
Add: Option shares in the money and dilutive effect of non-vested stock (in shares) | 5,071,000 | 2,012,000 |
Less: Pro forma treasury shares (in shares) | (2,101,000) | (886,000) |
Diluted: | ||
Net Income | $ 97,305 | $ 5,829 |
Shares (in shares) | 167,742,000 | 165,864,000 |
Per Share (in usd per share) | $ 0.58 | $ 0.04 |
Stock Options [Member] | ||
Antidilutive Securities [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 749,550 | 1,812,518 |
Non Vested Stock [Member] | ||
Antidilutive Securities [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 385,216 | 636,445 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 | Apr. 01, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 122,869 | $ 106,774 | ||
Restricted cash | 142 | 142 | ||
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flow | $ 123,011 | $ 106,916 | $ 139,162 | $ 114,857 |
Acquisitions and Dispositions45
Acquisitions and Dispositions (Details) $ in Millions | 1 Months Ended |
Jan. 31, 2018USD ($) | |
Business Combinations [Abstract] | |
Proceeds from Divestiture of Businesses | $ 2.8 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Finished product | $ 176,932 | $ 171,277 |
Work in process | 107,910 | 101,540 |
Raw Material | 32,648 | 33,173 |
Supplies and other | 55,631 | 52,193 |
Inventories | $ 373,121 | $ 358,183 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Dec. 30, 2017 | |
Intangible Assets [Line Items] | |||
Indefinite Lived Intangible Assets | $ 55,473 | $ 54,682 | |
Finite Lived Intangible Assets: | 1,003,713 | 1,005,654 | |
Accumulated Amortization: | (399,331) | (383,836) | |
Intangible assets, net | 659,855 | 676,500 | |
Intangible assets, period increase (decrease) | 5,500 | ||
Amortization of Intangible Assets | 19,500 | $ 19,100 | |
Trade Names [Member] | |||
Intangible Assets [Line Items] | |||
Indefinite Lived Intangible Assets | 55,473 | 54,682 | |
Trade Names [Member] | |||
Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets: | 76,354 | 76,558 | |
Accumulated Amortization: | (31,839) | (30,235) | |
Collection Routes [Member] | |||
Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets: | 392,477 | 397,808 | |
Accumulated Amortization: | (140,001) | (136,592) | |
Royalty, consulting land use and leasehold [Member] | |||
Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets: | 15,162 | 14,666 | |
Accumulated Amortization: | (3,677) | (3,358) | |
Permits [Member] | |||
Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets: | 515,830 | 512,659 | |
Accumulated Amortization: | (221,317) | (211,264) | |
Noncompete Agreements [Member] | |||
Intangible Assets [Line Items] | |||
Finite Lived Intangible Assets: | 3,890 | 3,963 | |
Accumulated Amortization: | $ (2,497) | $ (2,387) |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 30, 2017 | |
Segment Reporting Information [Line Items] | ||
Goodwill | $ 1,325,522 | $ 1,317,007 |
Accumulated impairment losses | (15,914) | (15,914) |
Goodwill | 1,309,608 | 1,301,093 |
Goodwill acquired during year | 0 | |
Foreign currency translation | 8,515 | |
Feed Ingredients | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 848,368 | 848,167 |
Accumulated impairment losses | (15,914) | (15,914) |
Goodwill | 832,454 | 832,253 |
Goodwill acquired during year | 0 | |
Foreign currency translation | 201 | |
Fuel Ingredients | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 126,123 | 124,369 |
Accumulated impairment losses | 0 | 0 |
Goodwill | 126,123 | 124,369 |
Goodwill acquired during year | 0 | |
Foreign currency translation | 1,754 | |
Food Ingredients | ||
Segment Reporting Information [Line Items] | ||
Goodwill | 351,031 | 344,471 |
Accumulated impairment losses | 0 | 0 |
Goodwill | 351,031 | $ 344,471 |
Goodwill acquired during year | 0 | |
Foreign currency translation | $ 6,560 |
Investment in Unconsolidated 49
Investment in Unconsolidated Subsidiary (Details) barrel in Thousands, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018USD ($)barrel | Apr. 01, 2017USD ($) | Dec. 30, 2017USD ($) | Jan. 21, 2011 | |
Schedule of Equity Method Investments [Line Items] | ||||
Investment in the joint venture | $ 409,135 | $ 302,038 | ||
Income (loss) from equity method investments | $ 97,154 | $ 706 | ||
Diamond Green Diesel Holdings LLC Joint Venture [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% | |||
Processing cabaility | barrel | 12 | |||
Line of credit term | 14 years | |||
Term loan facility | $ 221,300 | |||
Investment in the joint venture | 371,100 | |||
Income (loss) from equity method investments | 97,200 | $ 600 | ||
Income Tax Credits and Adjustments | $ 160,400 | |||
Diamond Green Diesel Holdings LLC Joint Venture [Member] | Valero Energy Corporation [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% |
Investment in Unconsolidated 50
Investment in Unconsolidated Subsidiary (Assets, Liabilities and members' equity) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Property, plant and equipment, net | $ 475,218 | $ 435,328 |
Total assets | 782,952 | 642,761 |
Liabilities and members' equity: | ||
Total current portion of long term debt | 0 | 17,023 |
Total long term debt | 0 | 36,730 |
Total liabilities and member's equity | 742,252 | 547,853 |
Diamond Green Diesel Holdings LLC Joint Venture [Member] | ||
ASSETS | ||
Total current assets | 295,775 | 202,778 |
Other assets | 11,959 | 4,655 |
Liabilities and members' equity: | ||
Total other current liabilities | 40,242 | 40,705 |
Total other long term liabilities | 458 | 450 |
Equity Method Investment, Summarized Financial Information, Liabilities and Equity | $ 782,952 | $ 642,761 |
Investment in Unconsolidated 51
Investment in Unconsolidated Subsidiary (Revenues and Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Expenses: | ||
Operating income | $ 194,022 | $ 1,962 |
Interest and debt expense, net | 0 | (990) |
Diamond Green Diesel Holdings LLC Joint Venture [Member] | ||
Revenues: | ||
Operating revenues | 150,321 | 125,397 |
Expenses: | ||
Total costs and expenses less depreciation, amortization and accretion expense | (49,821) | 115,322 |
Depreciation, amortization and accretion expense | 6,120 | 8,113 |
Total costs and expenses | (43,701) | 123,435 |
Other income | 377 | 223 |
Net income | $ 194,399 | $ 1,195 |
Accrued Expense (Details)
Accrued Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Payables and Accruals [Abstract] | ||
Compensation and benefits | $ 80,714 | $ 102,474 |
Accrued income, ad valorem, and franchise taxes | 36,081 | 30,546 |
Accrued operating expenses | 67,878 | 61,230 |
Other accrued expense | 106,136 | 119,373 |
Accrued expenses | $ 290,809 | $ 313,623 |
Debt (Schedule of Long-term Deb
Debt (Schedule of Long-term Debt) (Details) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2018USD ($) | Mar. 31, 2018CAD ($) | Mar. 31, 2018EUR (€) | Dec. 30, 2017USD ($) | Jun. 03, 2015EUR (€) | Jan. 02, 2014USD ($) | |
Debt Instrument [Line Items] | ||||||
Debt and Capital Lease Obligations | $ 1,781,145,000 | $ 1,714,193,000 | ||||
Current portion of long-term debt | 16,722,000 | 16,143,000 | ||||
Long-term debt, net of current portion | 1,764,423,000 | 1,698,050,000 | ||||
Capital lease obligations, current | $ 0.7 | € 100,000 | ||||
Capital lease obligations, noncurrent | $ 0.4 | € 100,000 | ||||
Term Loan A Facility [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | 94,301,000 | 95,694,000 | ||||
Long-term Debt, Gross | 94,924,000 | 96,365,000 | ||||
Unamortized Debt Issuance Expense | (623,000) | (671,000) | ||||
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | 494,762,000 | 494,422,000 | ||||
Long-term Debt, Gross | 505,000,000 | 505,000,000 | ||||
Unamortized Debt Issuance Expense | (10,238,000) | (10,578,000) | ||||
Senior Notes [Member] | Senior Notes 5.375% Due 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | 494,043,000 | 493,362,000 | ||||
Long-term Debt, Gross | 500,000,000 | 500,000,000 | ||||
Unamortized Debt Issuance Expense | $ (5,957,000) | $ (6,638,000) | ||||
Stated interest rate | 5.375% | |||||
Debt instrument, interest rate, effective percentage | 5.72% | 5.72% | 5.72% | 5.72% | ||
Face amount of debt instrument | $ 500,000,000 | |||||
Senior Notes [Member] | Senior Notes 4.75% Due 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 626,389,000 | $ 608,681,000 | ||||
Long-term Debt, Gross | 634,918,000 | 617,356,000 | ||||
Unamortized Debt Issuance Expense | $ (8,529,000) | $ (8,675,000) | ||||
Line of credit outstanding | € | € 515,000,000 | |||||
Stated interest rate | 4.75% | |||||
Debt instrument, interest rate, effective percentage | 5.10% | 5.10% | 5.10% | 5.10% | ||
Face amount of debt instrument | € | € 515,000,000 | |||||
Notes Payable, Other Payables [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 16,276,000 | $ 22,034,000 | ||||
Letter of Credit [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit outstanding | 22,900,000 | |||||
Revolving Credit Facility [Member] | Line of Credit [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | 55,374,000 | 0 | ||||
Term Loan A Facility [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | 350,000,000 | |||||
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | 525,000,000 | |||||
Canada, Dollars | Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit outstanding | $ 5 | |||||
Canada, Dollars | Revolving Credit Facility [Member] | Line of Credit [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | 3,900,000 | 0 | ||||
Canada, Dollars | Term Loan A Facility [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit outstanding | 51,700,000 | $ 66.6 | 53,100,000 | |||
Euro Member Countries, Euro | Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit outstanding | € | € 15,000,000 | |||||
Euro Member Countries, Euro | Revolving Credit Facility [Member] | Line of Credit [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | 18,500,000 | $ 0 | ||||
U.S. dollar | Term Loan A Facility [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit outstanding | 43,300,000 | |||||
U.S. dollar | Term Loan B Facility [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit outstanding | $ 500,000,000 | |||||
Canadian Dealer Offered Rate (CDOR) [Member] | Canada, Dollars | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 3.7047% | 3.7047% | 3.7047% | |||
Canadian Dealer Offered Rate (CDOR) [Member] | Canada, Dollars | Secured Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.00% | |||||
Canadian Dealer Offered Rate (CDOR) [Member] | Canada, Dollars | Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.00% | |||||
Interest rate | 3.6691% | 3.6691% | 3.6691% | |||
London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.00% | |||||
Interest rate | 3.88% | 3.88% | 3.88% | |||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan B Facility [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.00% | |||||
Interest rate | 3.88% | 3.88% | 3.88% | |||
London Interbank Offered Rate (LIBOR) [Member] | Euro Member Countries, Euro | Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit outstanding | € | € 15,000,000 | |||||
London Interbank Offered Rate (LIBOR) [Member] | U.S. dollar | Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit outstanding | $ 10,000,000 | |||||
Base Rate [Member] | Secured Debt [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
Interest rate | 5.75% | 5.75% | 5.75% | |||
Base Rate [Member] | Term Loan B Facility [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
Interest rate | 5.75% | 5.75% | 5.75% | |||
Base Rate [Member] | U.S. dollar | Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit outstanding | $ 23,000,000 | |||||
Base Rate [Member] | U.S. dollar | Term Loan B Facility [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit outstanding | $ 5,000,000 |
Debt (Senior Secured Credit Fac
Debt (Senior Secured Credit Facilities) (Details) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2018USD ($) | Mar. 31, 2018CAD ($) | Mar. 31, 2018EUR (€) | Dec. 30, 2017USD ($) | Jun. 03, 2015EUR (€) | |
Canadian Dealer Offered Rate (CDOR) [Member] | Canada, Dollars | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.7047% | 3.7047% | 3.7047% | ||
Senior Secured Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit term | 5 years | ||||
Secured Debt [Member] | Canadian Dealer Offered Rate (CDOR) [Member] | Canada, Dollars | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.00% | ||||
Secured Debt [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.00% | ||||
Interest rate | 3.88% | 3.88% | 3.88% | ||
Secured Debt [Member] | Senior Secured Facilities [Member] | Euro Interbank Offered Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.00% | ||||
Interest rate | 2.00% | 2.00% | 2.00% | ||
Secured Debt [Member] | Senior Secured Facilities [Member] | Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Interest rate | 5.75% | 5.75% | 5.75% | ||
Term Loan A Facility [Member] | Senior Secured Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt instrument | $ 350,000,000 | ||||
Term Loan A Facility [Member] | Senior Secured Facilities [Member] | Canada, Dollars | |||||
Debt Instrument [Line Items] | |||||
Line of credit outstanding | 51,700,000 | $ 66.6 | $ 53,100,000 | ||
Term Loan A Facility [Member] | Senior Secured Facilities [Member] | U.S. dollar | |||||
Debt Instrument [Line Items] | |||||
Line of credit outstanding | 43,300,000 | ||||
Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit, maximum borrowing capacity | 1,000,000,000 | ||||
Company availability under revolving loan facility | 921,800,000 | ||||
Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | Canada, Dollars | |||||
Debt Instrument [Line Items] | |||||
Line of credit outstanding | $ 5 | ||||
Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | Euro | |||||
Debt Instrument [Line Items] | |||||
Line of credit outstanding | € | € 15,000,000 | ||||
Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | U.S. dollar | |||||
Debt Instrument [Line Items] | |||||
Line of credit outstanding | $ 10,000,000 | ||||
Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | Euro | |||||
Debt Instrument [Line Items] | |||||
Line of credit outstanding | € | € 15,000,000 | ||||
Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | Canadian Dealer Offered Rate (CDOR) [Member] | Canada, Dollars | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.00% | ||||
Interest rate | 3.6691% | 3.6691% | 3.6691% | ||
Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | Base Rate [Member] | U.S. dollar | |||||
Debt Instrument [Line Items] | |||||
Line of credit outstanding | $ 23,000,000 | ||||
Letter of Credit [Member] | Senior Secured Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Springing adjustment, term | 91 days | ||||
Line of credit, maximum borrowing capacity | $ 150,000,000 | ||||
Line of credit outstanding | 22,900,000 | ||||
Swingline Sub-Facility [Member] | Senior Secured Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit, maximum borrowing capacity | $ 50,000,000 | ||||
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Springing adjustment, loans outstanding, period | 91 days | ||||
Face amount of debt instrument | $ 525,000,000 | ||||
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | U.S. dollar | |||||
Debt Instrument [Line Items] | |||||
Line of credit outstanding | $ 500,000,000 | ||||
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.00% | ||||
Interest rate | 3.88% | 3.88% | 3.88% | ||
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Interest rate | 5.75% | 5.75% | 5.75% | ||
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | Base Rate [Member] | U.S. dollar | |||||
Debt Instrument [Line Items] | |||||
Line of credit outstanding | $ 5,000,000 | ||||
Foreign Line of Credit [Member] | Senior Secured Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit outstanding | 19,200,000 | ||||
Senior Notes [Member] | Senior Notes 4.75% Due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt instrument | € | € 515,000,000 | ||||
Line of credit outstanding | € | € 515,000,000 | ||||
Secured Debt [Member] | Senior Secured Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit, maximum borrowing capacity | $ 1,875,000,000 | ||||
Secured Debt [Member] | Term Loan A Facility [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.00% | ||||
Secured Debt [Member] | Term Loan A Facility [Member] | Senior Secured Facilities [Member] | Canadian Prime Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Secured Debt [Member] | Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Company availability under revolving loan facility | $ 948,300,000 | ||||
Secured Debt [Member] | Term Loan B Facility [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | U.S. dollar | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.00% | ||||
Secured Debt [Member] | Term Loan B Facility [Member] | Senior Secured Facilities [Member] | Base Rate [Member] | U.S. dollar | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Maximum [Member] | Letter of Credit [Member] | Senior Secured Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Covenant, Leverage Ratio | 5.50 | 5.50 | 5.50 | ||
Minimum [Member] | Letter of Credit [Member] | Senior Secured Facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Covenant, Interest Ratio | 3 | 3 | 3 |
Debt (Senior Notes Due 2022) (D
Debt (Senior Notes Due 2022) (Details) - Senior Notes [Member] | Jun. 03, 2015EUR (€) | Jan. 02, 2014USD ($) |
Senior Notes 5.375% Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | $ | $ 500,000,000 | |
Stated interest rate | 5.375% | |
Senior Notes 4.75% Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Face amount of debt instrument | € | € 515,000,000 | |
Stated interest rate | 4.75% |
Debt Debt (Senior Notes Due 202
Debt Debt (Senior Notes Due 2026) (Details) - Senior Notes [Member] - EUR (€) | May 02, 2018 | Jun. 03, 2015 |
Senior Notes 4.75% Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | € 515,000,000 | |
Stated interest rate | 4.75% | |
Subsequent Event [Member] | Senior Notes 3.625% Due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | € 515,000,000 | |
Stated interest rate | 3.625% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 2.4 | |
Income tax penalties and interest accrued | 1.3 | |
Significant change in unrecognized tax benefits is reasonably possible, estimated change, upper bound | 2.1 | |
Transition tax for accumulated foreign earnings, provisional income tax expense (benefit) | $ (12.1) | |
Change in enacted tax rate, amount | $ 62.9 |
Other Comprehensive Income (Sch
Other Comprehensive Income (Schedule of OCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Before-Tax Amount: | ||
Amortization of prior service cost | $ 9 | $ 9 |
Amortization of actuarial loss | 888 | 1,203 |
Total defined benefit pension plans | 897 | 1,212 |
Gain (loss) activity recognized in other comprehensive loss | (1,500) | |
Other Comprehensive income (loss) | 16,057 | 15,091 |
Tax (Expense) or Benefit: | ||
Amortization of prior service cost | (3) | (3) |
Amortization of actuarial loss | (227) | (450) |
Total defined benefit pension plans | (230) | (453) |
Gain (loss) activity recognized in other comprehensive loss | (400) | (200) |
Other Comprehensive income (loss) | 322 | 245 |
Net-of-Tax Amount: | ||
Amortization of prior service cost | 6 | 6 |
Amortization of actuarial loss | 661 | 753 |
Total defined benefit pension plans | 667 | 759 |
Gain (loss) activity recognized in other comprehensive loss | (600) | |
Foreign currency translation | 17,295 | 15,679 |
Net current-period other comprehensive income | 16,379 | 15,336 |
Natural Gas Swap [Member] | ||
Before-Tax Amount: | ||
Loss (gain) reclassified to net income | 14 | 0 |
Gain (loss) activity recognized in other comprehensive loss | 16 | 0 |
Total swap derivatives | 30 | 0 |
Tax (Expense) or Benefit: | ||
Loss (gain) reclassified to net income | (4) | 0 |
Gain (loss) activity recognized in other comprehensive loss | (4) | 0 |
Total swap derivatives | (8) | 0 |
Net-of-Tax Amount: | ||
Loss (gain) reclassified to net income | 10 | 0 |
Gain (loss) activity recognized in other comprehensive loss | 12 | 0 |
Total swap derivatives | 22 | 0 |
Corn Option [Member] | ||
Before-Tax Amount: | ||
Loss (gain) reclassified to net income | (668) | (1,185) |
Gain (loss) activity recognized in other comprehensive loss | (1,497) | (615) |
Total swap derivatives | (2,165) | (1,800) |
Tax (Expense) or Benefit: | ||
Loss (gain) reclassified to net income | 173 | 460 |
Gain (loss) activity recognized in other comprehensive loss | 387 | 238 |
Total swap derivatives | 560 | 698 |
Net-of-Tax Amount: | ||
Loss (gain) reclassified to net income | (495) | (725) |
Gain (loss) activity recognized in other comprehensive loss | (1,110) | (377) |
Total swap derivatives | (1,605) | (1,102) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Before-Tax Amount: | ||
Foreign currency translation | 17,295 | 15,679 |
Tax (Expense) or Benefit: | ||
Foreign currency translation | 0 | 0 |
Net-of-Tax Amount: | ||
Foreign currency translation | $ 17,295 | $ 15,679 |
Other Comprehensive Income (Rec
Other Comprehensive Income (Reclassification out of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of sales and operating expenses | $ 678,099 | $ 687,966 |
Total before tax | 101,787 | 9,216 |
Income taxes | (3,712) | (1,818) |
Amortization of prior service cost | 9 | 9 |
Amortization of actuarial loss | 888 | 1,203 |
Net income attributable to Darling | 97,305 | 5,829 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Net income attributable to Darling | (182) | (34) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before tax | 654 | 1,185 |
Income taxes | (169) | (460) |
Net income attributable to Darling | 485 | 725 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments [Member] | Natural Gas Swap [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of sales and operating expenses | (14) | 0 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments [Member] | Corn Option [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of sales and operating expenses | 668 | 1,185 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign Currency Translation [Member] | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||
Total before tax | (897) | (1,212) |
Income taxes | 230 | 453 |
Amortization of prior service cost | (9) | (9) |
Amortization of actuarial loss | (888) | (1,203) |
Net income attributable to Darling | $ (667) | $ (759) |
Other Comprehensive Income (S60
Other Comprehensive Income (Schedule of AOCI) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Accumulated Other Comprehensive Income (loss) December 30, 2017, attributable to Darling, net of tax | $ (209,524) |
Other comprehensive gain (loss) before reclassifications | 16,197 |
Amounts reclassified from accumulated other comprehensive income (loss) | 182 |
Reclassification of tax effect | (4,782) |
Net current-period other comprehensive income | 11,597 |
Noncontrolling interest | 517 |
Accumulated Other Comprehensive Income (loss) March 31, 2018, attributable to Darling, net of tax | (198,444) |
Foreign Currency Translation [Member] | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Accumulated Other Comprehensive Income (loss) December 30, 2017, attributable to Darling, net of tax | (183,161) |
Other comprehensive gain (loss) before reclassifications | 17,295 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 |
Reclassification of tax effect | 0 |
Net current-period other comprehensive income | 17,295 |
Noncontrolling interest | 517 |
Accumulated Other Comprehensive Income (loss) March 31, 2018, attributable to Darling, net of tax | (166,383) |
Derivative Instruments [Member] | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Accumulated Other Comprehensive Income (loss) December 30, 2017, attributable to Darling, net of tax | 1,372 |
Other comprehensive gain (loss) before reclassifications | (1,098) |
Amounts reclassified from accumulated other comprehensive income (loss) | (485) |
Reclassification of tax effect | 291 |
Net current-period other comprehensive income | (1,292) |
Noncontrolling interest | 0 |
Accumulated Other Comprehensive Income (loss) March 31, 2018, attributable to Darling, net of tax | 80 |
Defined Benefit Pension Plans [Member] | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Accumulated Other Comprehensive Income (loss) December 30, 2017, attributable to Darling, net of tax | (27,735) |
Other comprehensive gain (loss) before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 667 |
Reclassification of tax effect | (5,073) |
Net current-period other comprehensive income | (4,406) |
Noncontrolling interest | 0 |
Accumulated Other Comprehensive Income (loss) March 31, 2018, attributable to Darling, net of tax | $ (32,141) |
Other Comprehensive Income Othe
Other Comprehensive Income Other Comprehensive Income (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Equity [Abstract] | |
Reclassification of tax effect | $ (4,782) |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | Jan. 29, 2018 | Aug. 07, 2017 | Mar. 31, 2018 |
Class of Stock [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 637,115 | ||
Grants in period (in shares) | 295,514 | ||
Annual vesting after initial cliff | 33.33% | ||
Performance period two | 3 years | ||
Target percentage | 100.00% | ||
Period in force | 2 years | ||
Authorized amount | $ 100,000,000 | ||
Remaining authorized repurchase amount | $ 100,000,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)plan | Apr. 01, 2017USD ($) | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Amount Company expects to contribute to its pension plans | $ 5,000 | |
Payment for pension benefits | $ 800 | $ 700 |
Multiemployer Plans [Abstract] | ||
Number Of Multiemployer Plans, Withdrawal Obligation Could Be Material | plan | 2 | |
Number Of Multiemployer Plans Withdrawal Obligation Could Be Material Certified Red Zone | plan | 1 | |
Number of Multiemployer Plans, Certified Red Zone | plan | 6 | |
Number of Multiemployer Plans, Certified Yellow Zone | plan | 1 | |
Number Of Multiemployer Plans, Withdrawal Obligation | plan | 2 | |
Accrued liability representing the present value of scheduled withdrawal liability payments for under-funded multi-employer plan | $ 1,700 | |
Maximum [Member] | ||
Multiemployer Plans [Abstract] | ||
Multiemployer Plan, Contributions To Individual Plan, Percent | 5.00% | |
Pension Plan, Defined Benefit [Member] | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | $ 799 | 735 |
Interest cost | 1,625 | 1,669 |
Expected return on plan assets | (2,064) | (1,788) |
Amortization of prior service cost | 9 | 9 |
Amortization of net loss | 888 | 1,203 |
Net pension cost | $ 1,257 | $ 1,828 |
Derivatives (Forward Contracts
Derivatives (Forward Contracts Not Designated as Hedging Instruments) (Details) - Mar. 31, 2018 - Not Designated as Hedging Instrument [Member] € in Thousands, ¥ in Thousands, ¥ in Thousands, £ in Thousands, zł in Thousands, R$ in Thousands, $ in Thousands, $ in Thousands | GBP (£) | USD ($) | PLN (zł) | EUR (€) | AUD ($) | CNY (¥) | JPY (¥) | BRL (R$) |
BRI/EUR 1 [Member] | Short [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | R$ | R$ 45094 | |||||||
BRI/EUR 1 [Member] | Long [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | € 11,210 | |||||||
BRI/USD [Member] | Short [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | R$ | R$ 74534 | |||||||
BRI/USD [Member] | Long [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | $ | $ 22,735 | |||||||
EUR/USD [Member] | Short [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | 76,963 | |||||||
EUR/USD [Member] | Long [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | $ | 95,421 | |||||||
EUR/PLN [Member] | Short [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | 7,627 | |||||||
EUR/PLN [Member] | Long [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | zł | zł 32,280 | |||||||
EUR/JPN [Member] | Short [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | 5,772 | |||||||
EUR/JPN [Member] | Long [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | ¥ | ¥ 763,515 | |||||||
EUR/CNY [Member] | Short [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | 86,745 | |||||||
EUR/CNY [Member] | Long [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | ¥ | ¥ 680,847 | |||||||
EUR/AUD [Member] | Short [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | 11,573 | |||||||
EUR/AUD [Member] | Long [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | $ | $ 18,600 | |||||||
EUR/GBP [Member] | Short [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | £ 184 | 3,001 | ||||||
EUR/GBP [Member] | Long [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | 2,642 | 161 | ||||||
GBP/USD [Member] | Short [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | £ | £ 49 | |||||||
GBP/USD [Member] | Long [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | $ | 70 | |||||||
PLN/EUR [Member] | Short [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | zł | zł 70,770 | |||||||
PLN/EUR [Member] | Long [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | € 16,740 | |||||||
JPN/USD [Member] | Short [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | ¥ | ¥ 371,342 | |||||||
JPN/USD [Member] | Long [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | $ | $ 3,375 |
Derivatives (Fair Value) (Detai
Derivatives (Fair Value) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | $ 1,052 | $ 4,346 |
Liability Derivatives Fair Value | 2,765 | 2,326 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 282 | 3,418 |
Liability Derivatives Fair Value | 472 | 24 |
Designated as Hedging Instrument [Member] | Corn Option [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 282 | 3,418 |
Designated as Hedging Instrument [Member] | Corn Option [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | 278 | 0 |
Designated as Hedging Instrument [Member] | Natural Gas Swap [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | 0 | 24 |
Designated as Hedging Instrument [Member] | Soybean Meal [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | 194 | 0 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 770 | 928 |
Liability Derivatives Fair Value | 2,293 | 2,302 |
Not Designated as Hedging Instrument [Member] | Corn Option [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | 316 | 14 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 585 | 332 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | 1,977 | 2,288 |
Not Designated as Hedging Instrument [Member] | Corn options and futures [Member] | Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | $ 185 | $ 596 |
Derivatives (Gain (Loss) on Der
Derivatives (Gain (Loss) on Derivatives) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ (1,481) | $ (615) |
Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 654 | 1,185 |
Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (1,746) | 88 |
Gain (loss) activity recognized in other comprehensive loss | (1,500) | |
Gain (loss) activity recognized in other comprehensive loss | (600) | |
Gain (loss) activity recognized in other comprehensive loss | (400) | (200) |
Corn Option [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) activity recognized in other comprehensive loss | (1,497) | (615) |
Gain (loss) activity recognized in other comprehensive loss | (1,110) | (377) |
Gain (loss) activity recognized in other comprehensive loss | 387 | 238 |
Corn Option [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | (1,497) | (615) |
Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 668 | 1,185 |
Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (1,123) | 88 |
Natural Gas Swap [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) activity recognized in other comprehensive loss | 16 | 0 |
Gain (loss) activity recognized in other comprehensive loss | 12 | 0 |
Gain (loss) activity recognized in other comprehensive loss | (4) | 0 |
Natural Gas Swap [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | 16 | 0 |
Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | (14) | 0 |
Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 25 | 0 |
Soybean Meal [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | 0 | 0 |
Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | 0 | 0 |
Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $ (648) | $ 0 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Derivative [Line Items] | ||
Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $ (1,746,000) | $ 88,000 |
Net income | 98,075,000 | $ 7,398,000 |
Commodity Contract [Member] | ||
Derivative [Line Items] | ||
Forward purchase amount | 31,600,000 | |
Cash Flow Hedging [Member] | ||
Derivative [Line Items] | ||
Cash flow hedge gain (loss) to be reclassified within 12 months | 100,000 | |
Net income | $ 0 |
Derivatives Derivative Effect o
Derivatives Derivative Effect of Derivatives Not Designated As Hedges (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Derivative [Line Items] | ||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | $ 2,346 | $ 1,686 |
Foreign Exchange Contract [Member] | Foreign Currency Gain (Loss) [Member] | ||
Derivative [Line Items] | ||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | 1,654 | 3,146 |
Foreign Exchange Contract [Member] | Selling, General and Administrative Expenses [Member] | ||
Derivative [Line Items] | ||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | 489 | (1,481) |
Corn options and futures [Member] | Sales [Member] | ||
Derivative [Line Items] | ||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | (309) | (22) |
Corn options and futures [Member] | Cost of Sales [Member] | ||
Derivative [Line Items] | ||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | 512 | 270 |
Soybean Meal [Member] | Sales [Member] | ||
Derivative [Line Items] | ||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | 0 | (272) |
Soybean Oil Options [Member] | Sales [Member] | ||
Derivative [Line Items] | ||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | $ 0 | $ 45 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments | $ 1,052 | $ 4,346 |
Total Assets | 1,052 | 4,346 |
Derivative instruments | 2,765 | 2,326 |
Total Liabilities | 1,835,938 | 1,769,606 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments | 0 | 0 |
Total Assets | 0 | 0 |
Derivative instruments | 0 | 0 |
Total Liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments | 1,052 | 4,346 |
Total Assets | 1,052 | 4,346 |
Derivative instruments | 2,765 | 2,326 |
Total Liabilities | 1,835,938 | 1,769,606 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments | 0 | 0 |
Total Assets | 0 | 0 |
Derivative instruments | 0 | 0 |
Total Liabilities | 0 | 0 |
Term Loan A Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 94,450 | 95,883 |
Term Loan A Facility [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | 0 |
Term Loan A Facility [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 94,450 | 95,883 |
Term Loan A Facility [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | 0 |
Term Loan B Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 510,353 | 511,616 |
Term Loan B Facility [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | 0 |
Term Loan B Facility [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 510,353 | 511,616 |
Term Loan B Facility [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | 0 |
Revolving Credit Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 54,544 | |
Revolving Credit Facility [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | |
Revolving Credit Facility [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 54,544 | |
Revolving Credit Facility [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | |
Senior Notes 5.375% Due 2022 [Member] | Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 508,750 | 513,100 |
Senior Notes 5.375% Due 2022 [Member] | Senior Notes [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | 0 |
Senior Notes 5.375% Due 2022 [Member] | Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 508,750 | 513,100 |
Senior Notes 5.375% Due 2022 [Member] | Senior Notes [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | 0 |
Senior Notes 4.75% Due 2022 [Member] | Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 665,076 | 646,681 |
Senior Notes 4.75% Due 2022 [Member] | Senior Notes [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | 0 |
Senior Notes 4.75% Due 2022 [Member] | Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 665,076 | 646,681 |
Senior Notes 4.75% Due 2022 [Member] | Senior Notes [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | $ 0 | $ 0 |
Contingencies (Details)
Contingencies (Details) $ in Millions | 1 Months Ended | ||
Mar. 31, 2016Partymi | Mar. 31, 2018USD ($) | Dec. 30, 2017USD ($) | |
Loss Contingencies [Line Items] | |||
Loss Contingency, Estimate of Possible Loss, Area of Land | mi | 8.3 | ||
Loss Contingency, Estimate of Possible Loss | $ 1,380 | ||
Loss Contingency, Number of Parties | Party | 100 | ||
Insurance Environmental and Litigation Matters [Member] | |||
Loss Contingencies [Line Items] | |||
Reserves for insurance, environmental and litigation contingencies | 62.4 | $ 61.4 | |
Insurance Settlements Receivable, Noncurrent | $ 25 | $ 25 |
Business Segments (Narrative) (
Business Segments (Narrative) (Details) | Mar. 31, 2018segment |
Segment Reporting [Abstract] | |
Number of Business Segments | 3 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Apr. 01, 2017 | Dec. 30, 2017 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $ 875,374 | $ 878,510 | |
Cost of sales and operating expenses | 678,099 | 687,966 | |
Selling, general and administrative expenses | 86,902 | 86,923 | |
Depreciation and amortization | 78,619 | 71,114 | |
Operating income | 31,754 | 32,507 | |
Equity in net income of unconsolidated subsidiaries | 97,154 | 706 | |
Total other expense | (27,121) | (23,997) | |
Income before income taxes | 101,787 | 9,216 | |
Segment Assets | 5,085,510 | $ 4,958,225 | |
Feed Ingredients | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 485,798 | 552,624 | |
Cost of sales and operating expenses | 369,088 | 432,576 | |
Gross Margin | 116,710 | 120,048 | |
Selling, general and administrative expenses | 48,265 | 44,837 | |
Depreciation and amortization | 46,789 | 43,719 | |
Operating income | 21,656 | 31,492 | |
Equity in net income of unconsolidated subsidiaries | (45) | 109 | |
Segment income/(loss) | 21,611 | 31,601 | |
Segment Assets | 2,589,281 | 2,614,545 | |
Food Ingredients | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 305,520 | 266,226 | |
Cost of sales and operating expenses | 249,185 | 209,392 | |
Gross Margin | 56,335 | 56,834 | |
Selling, general and administrative expenses | 23,861 | 24,977 | |
Depreciation and amortization | 20,640 | 17,601 | |
Operating income | 11,834 | 14,256 | |
Equity in net income of unconsolidated subsidiaries | 0 | 0 | |
Segment income/(loss) | 11,834 | 14,256 | |
Segment Assets | 1,525,149 | 1,499,027 | |
Fuel Ingredients | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 84,056 | 59,660 | |
Cost of sales and operating expenses | 59,826 | 45,998 | |
Gross Margin | 24,230 | 13,662 | |
Selling, general and administrative expenses | (1,398) | 3,263 | |
Depreciation and amortization | 8,471 | 6,845 | |
Operating income | 17,157 | 3,554 | |
Equity in net income of unconsolidated subsidiaries | 97,199 | 597 | |
Segment income/(loss) | 114,356 | 4,151 | |
Segment Assets | 809,895 | 688,890 | |
Corporate [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 0 | 0 | |
Cost of sales and operating expenses | 0 | 0 | |
Gross Margin | 0 | 0 | |
Selling, general and administrative expenses | 16,174 | 13,846 | |
Depreciation and amortization | 2,719 | 2,949 | |
Operating income | (18,893) | (16,795) | |
Equity in net income of unconsolidated subsidiaries | 0 | 0 | |
Segment income/(loss) | (18,893) | (16,795) | |
Segment Assets | 161,185 | 155,763 | |
Operating Segments [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 875,374 | 878,510 | |
Cost of sales and operating expenses | 678,099 | 687,966 | |
Gross Margin | 197,275 | 190,544 | |
Selling, general and administrative expenses | 86,902 | 86,923 | |
Depreciation and amortization | 78,619 | 71,114 | |
Operating income | 31,754 | 32,507 | |
Equity in net income of unconsolidated subsidiaries | 97,154 | 706 | |
Segment income/(loss) | 128,908 | $ 33,213 | |
Segment Assets | $ 5,085,510 | $ 4,958,225 |
Revenue (Details)
Revenue (Details) | Mar. 31, 2018source |
Revenue from Contract with Customer [Abstract] | |
Number of revenue sources | 2 |
Revenue Impact of changes in ac
Revenue Impact of changes in accounting policies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net sales | $ 875,374 | $ 878,510 |
Cost of sales and operating expenses | 678,099 | $ 687,966 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net sales | 921,561 | |
Cost of sales and operating expenses | 724,286 | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Net sales | 46,187 | |
Cost of sales and operating expenses | $ 46,187 |
Revenue Disaggregation of Reven
Revenue Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 875,374 | $ 878,510 |
Revenue, Modified Retrospective Basis Effect | 38,200 | |
Feed Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 485,798 | 552,624 |
Food Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 305,520 | 266,226 |
Fuel Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 84,056 | 59,660 |
North America | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 456,193 | 476,743 |
North America | Feed Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 390,376 | 422,935 |
North America | Food Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 44,277 | 45,725 |
North America | Fuel Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 21,540 | 8,083 |
Europe | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 333,945 | 324,205 |
Europe | Feed Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 87,790 | 122,927 |
Europe | Food Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 183,639 | 149,701 |
Europe | Fuel Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 62,516 | 51,577 |
China | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 49,590 | 46,394 |
China | Feed Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 5,678 | 4,734 |
China | Food Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 43,912 | 41,660 |
China | Fuel Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
South America | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 14,344 | 12,974 |
South America | Feed Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
South America | Food Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 14,344 | 12,974 |
South America | Fuel Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Other | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 21,302 | 18,194 |
Other | Feed Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,954 | 2,028 |
Other | Food Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 19,348 | 16,166 |
Other | Fuel Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Fats | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 188,371 | 198,898 |
Fats | Feed Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 143,552 | 158,005 |
Fats | Food Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 44,819 | 40,893 |
Fats | Fuel Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Used cooking oil | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 36,608 | 44,046 |
Used cooking oil | Feed Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 36,608 | 44,046 |
Used cooking oil | Food Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Used cooking oil | Fuel Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Proteins | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 203,395 | 198,151 |
Proteins | Feed Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 203,395 | 198,151 |
Proteins | Food Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Proteins | Fuel Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Bakery | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 46,751 | 56,097 |
Bakery | Feed Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 46,751 | 56,097 |
Bakery | Food Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Bakery | Fuel Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Other rendering | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 31,362 | 73,600 |
Other rendering | Feed Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 31,362 | 73,600 |
Other rendering | Food Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Other rendering | Fuel Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Food ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 233,923 | 206,279 |
Food ingredients | Feed Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Food ingredients | Food Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 233,923 | 206,279 |
Food ingredients | Fuel Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Bioenergy | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 62,516 | 51,577 |
Bioenergy | Feed Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Bioenergy | Food Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Bioenergy | Fuel Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 62,516 | 51,577 |
Biofuels | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 21,540 | 8,083 |
Biofuels | Feed Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Biofuels | Food Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Biofuels | Fuel Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 21,540 | 8,083 |
Other | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 50,908 | 41,779 |
Other | Feed Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 24,130 | 22,725 |
Other | Food Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 26,778 | 19,054 |
Other | Fuel Ingredients | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 0 | $ 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Feb. 23, 2015 | Mar. 31, 2018 | Apr. 01, 2017 | Dec. 30, 2017 |
Related Party Transaction [Line Items] | ||||
Payments on long-term debt | $ (9,622,000) | $ (9,265,000) | ||
Diamond Green Diesel Holdings LLC Joint Venture [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue from Related Parties | 33,100,000 | $ 35,700,000 | ||
Accounts Receivable, Related Parties, Current | 8,800,000 | $ 5,600,000 | ||
Related Party Sales Eliminated | 7,100,000 | |||
Deferred Revenue, Additions | 2,000,000 | |||
Revolving Loan Agreement [Member] | Revolving Credit Facility [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revolving Loan Agreement, Maximum Borrowing Capacity | $ 10,000,000 | |||
Revolving Loan Agreement, Fair Value of Amount Outstanding | $ 0 | |||
Revolving Loan Agreement [Member] | Lender One [Member] | Revolving Credit Facility [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revolving Loan Agreement, Maximum Borrowing Capacity | $ 5,000,000 | |||
LIBO Rate [Member] | Revolving Loan Agreement [Member] | Revolving Credit Facility [Member] | ||||
Related Party Transaction [Line Items] | ||||
Basis spread on variable rate | 2.50% |
New Accounting Pronoucements (D
New Accounting Pronoucements (Details) | 12 Months Ended |
Jan. 02, 2016USD ($) | |
Accounting Standards Update 2014-09 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cost of sales, modified retrospective basis effect |
Guarantor Financial Informati78
Guarantor Financial Information (Narrative) (Details) | Mar. 31, 2018 |
Guarantor Financial Information [Abstract] | |
Company's percentage of directly and indirectly owned subsidiaries | 100.00% |
Guarantor Financial Informati79
Guarantor Financial Information (Condensed Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 30, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 122,869 | $ 106,774 |
Restricted cash | 142 | 142 |
Accounts receivable, net | 413,659 | 391,847 |
Inventories | 373,121 | 358,183 |
Income taxes refundable | 4,694 | 4,509 |
Prepaid expenses | 40,707 | 38,326 |
Other current assets | 15,888 | 56,664 |
Total current assets | 971,080 | 956,445 |
Investment in subsidiaries | 0 | 0 |
Property, plant and equipment, net | 1,657,609 | 1,645,822 |
Intangible assets, net | 659,855 | 676,500 |
Goodwill | 1,309,608 | 1,301,093 |
Investment in unconsolidated subsidiaries | 409,135 | 302,038 |
Other assets | 63,037 | 62,284 |
Deferred income taxes | 15,186 | 14,043 |
Total assets | 5,085,510 | 4,958,225 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Current portion of long-term debt | 16,722 | 16,143 |
Accounts payable | 188,048 | 217,417 |
Income taxes payable | 11,290 | 12,300 |
Accrued expenses | 290,809 | 313,623 |
Total current liabilities | 506,869 | 559,483 |
Long-term debt, net of current portion | 1,764,423 | 1,698,050 |
Other non-current liabilities | 106,603 | 106,287 |
Deferred income taxes | 268,376 | 266,708 |
Total liabilities | 2,646,271 | 2,630,528 |
Total stockholders’ equity | 2,439,239 | 2,327,697 |
Total liabilities and stockholders' equity | 5,085,510 | 4,958,225 |
Parent [Member] | ||
ASSETS | ||
Cash and cash equivalents | 899 | 1,724 |
Restricted cash | 103 | 103 |
Accounts receivable, net | 37,894 | 37,453 |
Inventories | 12,547 | 18,049 |
Income taxes refundable | 2,270 | 1,591 |
Prepaid expenses | 11,188 | 10,787 |
Other current assets | 3,066 | 7,117 |
Total current assets | 67,967 | 76,824 |
Investment in subsidiaries | 4,879,498 | 4,734,618 |
Property, plant and equipment, net | 282,431 | 278,121 |
Intangible assets, net | 16,041 | 17,034 |
Goodwill | 21,860 | 21,860 |
Investment in unconsolidated subsidiaries | 7,344 | 4,341 |
Other assets | 41,953 | 42,078 |
Deferred income taxes | 0 | 0 |
Total assets | 5,317,094 | 5,174,876 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Current portion of long-term debt | 4,093 | 115 |
Accounts payable | 593,331 | 555,894 |
Income taxes payable | (383) | 32 |
Accrued expenses | 75,308 | 105,625 |
Total current liabilities | 672,349 | 661,666 |
Long-term debt, net of current portion | 1,060,777 | 1,030,736 |
Other non-current liabilities | 69,169 | 69,711 |
Deferred income taxes | 105,029 | 106,543 |
Total liabilities | 1,907,324 | 1,868,656 |
Total stockholders’ equity | 3,409,770 | 3,306,220 |
Total liabilities and stockholders' equity | 5,317,094 | 5,174,876 |
Guarantors [Member] | ||
ASSETS | ||
Cash and cash equivalents | 1,436 | 2,993 |
Restricted cash | 0 | 0 |
Accounts receivable, net | 513,155 | 465,653 |
Inventories | 84,727 | 84,805 |
Income taxes refundable | 0 | 0 |
Prepaid expenses | 2,636 | 3,141 |
Other current assets | 71 | 923 |
Total current assets | 602,025 | 557,515 |
Investment in subsidiaries | 1,167,246 | 1,167,246 |
Property, plant and equipment, net | 503,200 | 501,842 |
Intangible assets, net | 250,400 | 258,970 |
Goodwill | 551,837 | 551,837 |
Investment in unconsolidated subsidiaries | 0 | 0 |
Other assets | 314,159 | 314,166 |
Deferred income taxes | 0 | 0 |
Total assets | 3,388,867 | 3,351,576 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Current portion of long-term debt | 0 | 0 |
Accounts payable | 44,043 | 37,466 |
Income taxes payable | 373 | 373 |
Accrued expenses | 25,988 | 30,542 |
Total current liabilities | 70,404 | 68,381 |
Long-term debt, net of current portion | 0 | 0 |
Other non-current liabilities | 0 | 0 |
Deferred income taxes | 0 | 0 |
Total liabilities | 70,404 | 68,381 |
Total stockholders’ equity | 3,318,463 | 3,283,195 |
Total liabilities and stockholders' equity | 3,388,867 | 3,351,576 |
Non-guarantors [Member] | ||
ASSETS | ||
Cash and cash equivalents | 120,534 | 102,057 |
Restricted cash | 39 | 39 |
Accounts receivable, net | 455,774 | 436,874 |
Inventories | 275,847 | 255,329 |
Income taxes refundable | 2,424 | 2,918 |
Prepaid expenses | 26,883 | 24,398 |
Other current assets | 12,751 | 48,624 |
Total current assets | 894,252 | 870,239 |
Investment in subsidiaries | 844,044 | 844,044 |
Property, plant and equipment, net | 871,978 | 865,859 |
Intangible assets, net | 393,414 | 400,496 |
Goodwill | 735,911 | 727,396 |
Investment in unconsolidated subsidiaries | 401,791 | 297,697 |
Other assets | 199,755 | 193,923 |
Deferred income taxes | 15,186 | 14,043 |
Total assets | 4,356,331 | 4,213,697 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Current portion of long-term debt | 12,629 | 16,028 |
Accounts payable | 139,193 | 169,033 |
Income taxes payable | 11,300 | 11,895 |
Accrued expenses | 194,158 | 180,613 |
Total current liabilities | 357,280 | 377,569 |
Long-term debt, net of current portion | 1,196,476 | 1,155,197 |
Other non-current liabilities | 37,434 | 36,576 |
Deferred income taxes | 163,347 | 160,165 |
Total liabilities | 1,754,537 | 1,729,507 |
Total stockholders’ equity | 2,601,794 | 2,484,190 |
Total liabilities and stockholders' equity | 4,356,331 | 4,213,697 |
Eliminations [Member] | ||
ASSETS | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Accounts receivable, net | (593,164) | (548,133) |
Inventories | 0 | 0 |
Income taxes refundable | 0 | 0 |
Prepaid expenses | 0 | 0 |
Other current assets | 0 | 0 |
Total current assets | (593,164) | (548,133) |
Investment in subsidiaries | (6,890,788) | (6,745,908) |
Property, plant and equipment, net | 0 | 0 |
Intangible assets, net | 0 | 0 |
Goodwill | 0 | 0 |
Investment in unconsolidated subsidiaries | 0 | 0 |
Other assets | (492,830) | (487,883) |
Deferred income taxes | 0 | 0 |
Total assets | (7,976,782) | (7,781,924) |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Current portion of long-term debt | 0 | 0 |
Accounts payable | (588,519) | (544,976) |
Income taxes payable | 0 | 0 |
Accrued expenses | (4,645) | (3,157) |
Total current liabilities | (593,164) | (548,133) |
Long-term debt, net of current portion | (492,830) | (487,883) |
Other non-current liabilities | 0 | 0 |
Deferred income taxes | 0 | 0 |
Total liabilities | (1,085,994) | (1,036,016) |
Total stockholders’ equity | (6,890,788) | (6,745,908) |
Total liabilities and stockholders' equity | $ (7,976,782) | $ (7,781,924) |
Guarantor Financial Informati80
Guarantor Financial Information (Condensed Consolidated Statements of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Net sales | $ 875,374 | $ 878,510 |
Costs and expenses: | ||
Cost of sales and operating expenses | 678,099 | 687,966 |
Selling, general and administrative expenses | 86,902 | 86,923 |
Depreciation and amortization | 78,619 | 71,114 |
Total costs and expenses | 843,620 | 846,003 |
Operating income | 31,754 | 32,507 |
Interest expense | (23,124) | (21,680) |
Foreign currency gains/ (losses) | (1,481) | (264) |
Other income/(expense), net | (2,516) | (2,053) |
Equity in net income of unconsolidated subsidiaries | 97,154 | 706 |
Earnings in investments in subsidiaries | 0 | 0 |
Income before income taxes | 101,787 | 9,216 |
Income tax expense | 3,712 | 1,818 |
Net income attributable to noncontrolling interests | (770) | (1,569) |
Net income attributable to Darling | 97,305 | 5,829 |
Parent [Member] | ||
Net sales | 119,625 | 136,157 |
Costs and expenses: | ||
Cost of sales and operating expenses | 95,868 | 109,663 |
Selling, general and administrative expenses | 43,778 | 38,969 |
Depreciation and amortization | 11,059 | 10,285 |
Total costs and expenses | 150,705 | 158,917 |
Operating income | (31,080) | (22,760) |
Interest expense | (14,364) | (13,586) |
Foreign currency gains/ (losses) | (23) | (6) |
Other income/(expense), net | (3,410) | (3,748) |
Equity in net income of unconsolidated subsidiaries | (498) | (373) |
Earnings in investments in subsidiaries | 144,880 | 38,318 |
Income before income taxes | 95,505 | (2,155) |
Income tax expense | (1,800) | (7,984) |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to Darling | 97,305 | 5,829 |
Guarantors [Member] | ||
Net sales | 344,603 | 360,184 |
Costs and expenses: | ||
Cost of sales and operating expenses | 271,237 | 292,771 |
Selling, general and administrative expenses | 12,837 | 14,177 |
Depreciation and amortization | 26,291 | 25,436 |
Total costs and expenses | 310,365 | 332,384 |
Operating income | 34,238 | 27,800 |
Interest expense | 3,763 | 4,023 |
Foreign currency gains/ (losses) | (63) | (25) |
Other income/(expense), net | (1,326) | 32 |
Equity in net income of unconsolidated subsidiaries | 0 | 0 |
Earnings in investments in subsidiaries | 0 | 0 |
Income before income taxes | 36,612 | 31,830 |
Income tax expense | 1,335 | 6,279 |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to Darling | 35,277 | 25,551 |
Non-guarantors [Member] | ||
Net sales | 467,808 | 439,788 |
Costs and expenses: | ||
Cost of sales and operating expenses | 367,656 | 343,151 |
Selling, general and administrative expenses | 30,287 | 33,777 |
Depreciation and amortization | 41,269 | 35,393 |
Total costs and expenses | 439,212 | 412,321 |
Operating income | 28,596 | 27,467 |
Interest expense | (12,523) | (12,117) |
Foreign currency gains/ (losses) | (1,395) | (233) |
Other income/(expense), net | 2,220 | 1,663 |
Equity in net income of unconsolidated subsidiaries | 97,652 | 1,079 |
Earnings in investments in subsidiaries | 0 | 0 |
Income before income taxes | 114,550 | 17,859 |
Income tax expense | 4,177 | 3,523 |
Net income attributable to noncontrolling interests | (770) | (1,569) |
Net income attributable to Darling | 109,603 | 12,767 |
Eliminations [Member] | ||
Net sales | (56,662) | (57,619) |
Costs and expenses: | ||
Cost of sales and operating expenses | (56,662) | (57,619) |
Selling, general and administrative expenses | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Total costs and expenses | (56,662) | (57,619) |
Operating income | 0 | 0 |
Interest expense | 0 | 0 |
Foreign currency gains/ (losses) | 0 | 0 |
Other income/(expense), net | 0 | 0 |
Equity in net income of unconsolidated subsidiaries | 0 | 0 |
Earnings in investments in subsidiaries | (144,880) | (38,318) |
Income before income taxes | (144,880) | (38,318) |
Income tax expense | 0 | 0 |
Net income attributable to noncontrolling interests | 0 | 0 |
Net income attributable to Darling | $ (144,880) | $ (38,318) |
Guarantor Financial Informati81
Guarantor Financial Information (Condensed Consolidated Statements of Comprehensive Income) (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Net income | $ 98,075 | $ 7,398 |
Other comprehensive income, net of tax: | ||
Foreign currency translation | 17,295 | 15,679 |
Pension adjustments | 667 | 759 |
Total other comprehensive income/(loss), net of tax | 16,379 | 15,336 |
Total comprehensive income | 114,454 | 22,734 |
Comprehensive income attributable to noncontrolling interests | 1,287 | 1,247 |
Comprehensive income attributable to Darling | 113,167 | 21,487 |
Parent [Member] | ||
Net income | 98,075 | 7,398 |
Other comprehensive income, net of tax: | ||
Foreign currency translation | 0 | 0 |
Pension adjustments | 566 | 641 |
Total other comprehensive income/(loss), net of tax | (1,017) | (461) |
Total comprehensive income | 97,058 | 6,937 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to Darling | 97,058 | 6,937 |
Guarantors [Member] | ||
Net income | 35,277 | 25,551 |
Other comprehensive income, net of tax: | ||
Foreign currency translation | 0 | 0 |
Pension adjustments | 0 | 0 |
Total other comprehensive income/(loss), net of tax | 0 | 0 |
Total comprehensive income | 35,277 | 25,551 |
Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to Darling | 35,277 | 25,551 |
Non-guarantors [Member] | ||
Net income | 109,603 | 12,767 |
Other comprehensive income, net of tax: | ||
Foreign currency translation | 17,295 | 15,679 |
Pension adjustments | 101 | 118 |
Total other comprehensive income/(loss), net of tax | 17,396 | 15,797 |
Total comprehensive income | 126,999 | 28,564 |
Comprehensive income attributable to noncontrolling interests | 1,287 | 1,247 |
Comprehensive income attributable to Darling | 125,712 | 27,317 |
Natural Gas Swap [Member] | ||
Other comprehensive income, net of tax: | ||
Derivative adjustments | 22 | 0 |
Natural Gas Swap [Member] | Parent [Member] | ||
Other comprehensive income, net of tax: | ||
Derivative adjustments | 22 | |
Natural Gas Swap [Member] | Guarantors [Member] | ||
Other comprehensive income, net of tax: | ||
Derivative adjustments | 0 | |
Natural Gas Swap [Member] | Non-guarantors [Member] | ||
Other comprehensive income, net of tax: | ||
Derivative adjustments | 0 | |
Corn Option [Member] | ||
Other comprehensive income, net of tax: | ||
Derivative adjustments | (1,605) | (1,102) |
Corn Option [Member] | Parent [Member] | ||
Other comprehensive income, net of tax: | ||
Derivative adjustments | (1,605) | (1,102) |
Corn Option [Member] | Guarantors [Member] | ||
Other comprehensive income, net of tax: | ||
Derivative adjustments | 0 | 0 |
Corn Option [Member] | Non-guarantors [Member] | ||
Other comprehensive income, net of tax: | ||
Derivative adjustments | 0 | 0 |
Eliminations [Member] | ||
Net income | (144,880) | (38,318) |
Other comprehensive income, net of tax: | ||
Foreign currency translation | 0 | 0 |
Pension adjustments | 0 | 0 |
Derivative adjustments | 0 | 0 |
Total other comprehensive income/(loss), net of tax | 0 | 0 |
Total comprehensive income | (144,880) | (38,318) |
Comprehensive income attributable to noncontrolling interests | 0 | 0 |
Comprehensive income attributable to Darling | (144,880) | $ (38,318) |
Eliminations [Member] | Natural Gas Swap [Member] | ||
Other comprehensive income, net of tax: | ||
Derivative adjustments | $ 0 |
Guarantor Financial Informati82
Guarantor Financial Information (Condensed Consolidated Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Apr. 01, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 98,075 | $ 7,398 |
Earnings in investments in subsidiaries | 0 | 0 |
Other operating cash flows | (71,151) | 87,060 |
Net cash provided by operating activities | 26,924 | 94,458 |
Cash flows from investing activities: | ||
Capital expenditures | (56,587) | (62,292) |
Investment in subsidiaries and affiliates | (3,500) | (2,250) |
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | 2,805 | 0 |
Gross proceeds from disposal of property, plant and equipment and other assets | 1,479 | 1,340 |
Proceeds from insurance settlement | 503 | 3,301 |
Payments related to routes and other intangibles | (15) | 0 |
Net cash used by investing activities | (55,315) | (59,901) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 3,876 | 8,649 |
Payments on long-term debt | (9,622) | (9,265) |
Borrowings from revolving credit facility | 135,184 | 47,000 |
Payments on revolving credit facility | (80,019) | (52,327) |
Net cash overdraft financing | (331) | (1,077) |
Deferred loan costs | (1,094) | (1,135) |
Issuance of common stock | 182 | 22 |
Minimum withholding taxes paid on stock awards | (2,018) | (1,995) |
Distributions to noncontrolling interests | 0 | (433) |
Net cash provided/ (used) by financing activities | 46,158 | (10,561) |
Effect of exchange rate changes on cash | (1,672) | 309 |
Net increase in cash, cash equivalents and restricted cash | 16,095 | 24,305 |
Cash, cash equivalents and restricted cash at beginning of period | 106,916 | 114,857 |
Cash, cash equivalents and restricted cash at end of period | 123,011 | 139,162 |
Parent [Member] | ||
Cash flows from operating activities: | ||
Net income | 98,075 | 7,398 |
Earnings in investments in subsidiaries | (144,880) | (38,318) |
Other operating cash flows | 30,782 | 56,236 |
Net cash provided by operating activities | (16,023) | 25,316 |
Cash flows from investing activities: | ||
Capital expenditures | (12,183) | (18,732) |
Investment in subsidiaries and affiliates | (3,500) | (2,250) |
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | 0 | |
Gross proceeds from disposal of property, plant and equipment and other assets | 828 | 304 |
Proceeds from insurance settlement | 0 | 0 |
Payments related to routes and other intangibles | 0 | |
Net cash used by investing activities | (14,855) | (20,678) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 0 | 0 |
Payments on long-term debt | (22) | (1,522) |
Borrowings from revolving credit facility | 62,000 | 47,000 |
Payments on revolving credit facility | (29,000) | (47,000) |
Net cash overdraft financing | 0 | 0 |
Deferred loan costs | (1,094) | (1,135) |
Issuance of common stock | 182 | 22 |
Minimum withholding taxes paid on stock awards | (2,013) | (1,981) |
Distributions to noncontrolling interests | 0 | |
Net cash provided/ (used) by financing activities | 30,053 | (4,616) |
Effect of exchange rate changes on cash | 0 | 0 |
Net increase in cash, cash equivalents and restricted cash | (825) | 22 |
Cash, cash equivalents and restricted cash at beginning of period | 1,827 | 1,573 |
Cash, cash equivalents and restricted cash at end of period | 1,002 | 1,595 |
Guarantors [Member] | ||
Cash flows from operating activities: | ||
Net income | 35,277 | 25,551 |
Earnings in investments in subsidiaries | 0 | 0 |
Other operating cash flows | (24,262) | (9,676) |
Net cash provided by operating activities | 11,015 | 15,875 |
Cash flows from investing activities: | ||
Capital expenditures | (13,396) | (19,689) |
Investment in subsidiaries and affiliates | 0 | 0 |
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | 0 | |
Gross proceeds from disposal of property, plant and equipment and other assets | 321 | 608 |
Proceeds from insurance settlement | 503 | 0 |
Payments related to routes and other intangibles | 0 | |
Net cash used by investing activities | (12,572) | (19,081) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Borrowings from revolving credit facility | 0 | 0 |
Payments on revolving credit facility | 0 | 0 |
Net cash overdraft financing | 0 | 0 |
Deferred loan costs | 0 | 0 |
Issuance of common stock | 0 | 0 |
Minimum withholding taxes paid on stock awards | 0 | 0 |
Distributions to noncontrolling interests | 0 | |
Net cash provided/ (used) by financing activities | 0 | 0 |
Effect of exchange rate changes on cash | 0 | 0 |
Net increase in cash, cash equivalents and restricted cash | (1,557) | (3,206) |
Cash, cash equivalents and restricted cash at beginning of period | 2,993 | 5,754 |
Cash, cash equivalents and restricted cash at end of period | 1,436 | 2,548 |
Non-guarantors [Member] | ||
Cash flows from operating activities: | ||
Net income | 109,603 | 12,767 |
Earnings in investments in subsidiaries | 0 | 0 |
Other operating cash flows | (77,671) | 40,500 |
Net cash provided by operating activities | 31,932 | 53,267 |
Cash flows from investing activities: | ||
Capital expenditures | (31,008) | (23,871) |
Investment in subsidiaries and affiliates | 0 | 0 |
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | 2,805 | |
Gross proceeds from disposal of property, plant and equipment and other assets | 330 | 428 |
Proceeds from insurance settlement | 0 | 3,301 |
Payments related to routes and other intangibles | (15) | |
Net cash used by investing activities | (27,888) | (20,142) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 3,876 | 8,649 |
Payments on long-term debt | (9,600) | (7,743) |
Borrowings from revolving credit facility | 73,184 | 0 |
Payments on revolving credit facility | (51,019) | (5,327) |
Net cash overdraft financing | (331) | (1,077) |
Deferred loan costs | 0 | 0 |
Issuance of common stock | 0 | 0 |
Minimum withholding taxes paid on stock awards | (5) | (14) |
Distributions to noncontrolling interests | (433) | |
Net cash provided/ (used) by financing activities | 16,105 | (5,945) |
Effect of exchange rate changes on cash | (1,672) | 309 |
Net increase in cash, cash equivalents and restricted cash | 18,477 | 27,489 |
Cash, cash equivalents and restricted cash at beginning of period | 102,096 | 107,530 |
Cash, cash equivalents and restricted cash at end of period | 120,573 | 135,019 |
Eliminations [Member] | ||
Cash flows from operating activities: | ||
Net income | (144,880) | (38,318) |
Earnings in investments in subsidiaries | 144,880 | 38,318 |
Other operating cash flows | 0 | 0 |
Net cash provided by operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Capital expenditures | 0 | 0 |
Investment in subsidiaries and affiliates | 0 | 0 |
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | 0 | |
Gross proceeds from disposal of property, plant and equipment and other assets | 0 | 0 |
Proceeds from insurance settlement | 0 | 0 |
Payments related to routes and other intangibles | 0 | |
Net cash used by investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Borrowings from revolving credit facility | 0 | 0 |
Payments on revolving credit facility | 0 | 0 |
Net cash overdraft financing | 0 | 0 |
Deferred loan costs | 0 | 0 |
Issuance of common stock | 0 | 0 |
Minimum withholding taxes paid on stock awards | 0 | 0 |
Distributions to noncontrolling interests | 0 | |
Net cash provided/ (used) by financing activities | 0 | 0 |
Effect of exchange rate changes on cash | 0 | 0 |
Net increase in cash, cash equivalents and restricted cash | 0 | 0 |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash at end of period | $ 0 | $ 0 |