Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 28, 2019 | Oct. 31, 2019 | |
Cover page. | ||
Entity File Number | 001-13323 | |
Title of 12(b) Security | Common stock $0.01 par value per share | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Entity Registrant Name | DARLING INGREDIENTS INC. | |
Entity Central Index Key | 0000916540 | |
Current Fiscal Year End Date | --12-28 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 28, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 163,710,998 | |
Document Transition Report | false | |
Entity Tax Identification Number | 36-2495346 | |
Trading Symbol | DAR | |
Security Exchange Name | NYSE | |
Entity Address, Address Line One | 5601 N MacArthur Blvd. | |
Entity Address, City or Town | Irving | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75038 | |
City Area Code | 972 | |
Local Phone Number | 717-0300 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 69,122 | $ 107,262 |
Restricted cash | 159 | 107 |
Accounts receivable, net | 355,006 | 385,737 |
Inventories | 353,003 | 341,028 |
Prepaid expenses | 46,378 | 35,247 |
Income taxes refundable | 4,952 | 6,462 |
Other current assets | 25,061 | 22,099 |
Total current assets | 853,681 | 897,942 |
Property, plant and equipment, less accumulated depreciation of $1,370,145 at September 28, 2019 and $1,246,095 at December 29, 2018 | 1,714,768 | 1,687,858 |
Intangible assets, less accumulated amortization of $459,996 at September 28, 2019 and $423,575 at December 29, 2018 | 537,360 | 595,862 |
Goodwill | 1,212,313 | 1,229,159 |
Investment in unconsolidated subsidiaries | 447,689 | 410,177 |
Operating right-of-use assets, net | 119,063 | 0 |
Other assets | 46,179 | 53,375 |
Deferred income taxes | 13,846 | 14,981 |
Total assets | 4,944,899 | 4,889,354 |
Current liabilities: | ||
Current portion of long-term debt | 61,092 | 7,492 |
Accounts payable, principally trade | 192,010 | 219,479 |
Income taxes payable | 10,404 | 4,043 |
Operating lease liability, current | 35,223 | 0 |
Accrued expenses | 297,164 | 309,484 |
Total current liabilities | 595,893 | 540,498 |
Long-term debt, net of current portion | 1,559,809 | 1,666,940 |
Operating lease liability, non-current | 83,754 | 0 |
Other non-current liabilities | 113,222 | 115,032 |
Deferred income taxes | 219,329 | 231,063 |
Total liabilities | 2,572,007 | 2,553,533 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 250,000,000 shares authorized; 168,433,009 and 168,098,177 shares issued at September 28, 2019 and at December 29, 2018, respectively | 1,684 | 1,681 |
Additional paid-in capital | 1,556,792 | 1,536,157 |
Treasury stock, at cost; 4,314,935 and 3,437,579 shares at September 28, 2019 and at December 29, 2018, respectively | (64,633) | (47,756) |
Accumulated other comprehensive loss | (342,846) | (304,539) |
Retained earnings | 1,157,496 | 1,087,505 |
Total Darling's stockholders’ equity | 2,308,493 | 2,273,048 |
Noncontrolling interests | 64,399 | 62,773 |
Total stockholders' equity | 2,372,892 | 2,335,821 |
Total liabilities and stockholders' equity | $ 4,944,899 | $ 4,889,354 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Income Statement [Abstract] | ||||||||
Net sales | $ 842,049 | $ 812,576 | $ 2,504,477 | $ 2,534,596 | ||||
Costs and expenses: | ||||||||
Cost of sales and operating expenses | 652,923 | 647,929 | 1,948,552 | 1,978,729 | ||||
Loss (gain) on disposal of property, plant, equipment and other assets | (2,669) | 172 | (20,845) | 472 | ||||
Selling, general and administrative expenses | 83,549 | 67,447 | 249,569 | 232,907 | ||||
Restructuring and impairment charges | 0 | 0 | 0 | 14,965 | ||||
Depreciation and amortization | 80,407 | 78,842 | 239,057 | 235,915 | ||||
Total costs and expenses | 814,210 | 794,390 | 2,416,333 | 2,462,988 | ||||
Equity in net income/(loss) of Diamond Green Diesel | 32,020 | (2,630) | 94,390 | 109,655 | ||||
Operating income | 59,859 | 15,556 | 182,534 | 181,263 | ||||
Other expense: | ||||||||
Interest expense | (19,359) | (20,080) | (60,088) | (66,220) | ||||
Debt extinguishment costs | 0 | 0 | (12,126) | (23,509) | ||||
Foreign currency gain/(loss) | 466 | (2,106) | (654) | (7,082) | ||||
Gain/(loss) on disposal of subsidiaries | 0 | 3,038 | 0 | (12,500) | ||||
Other expense, net | (2,614) | (2,786) | (7,158) | (4,103) | ||||
Total other expense | (21,507) | (21,934) | (80,026) | (113,414) | ||||
Equity in net loss of other unconsolidated subsidiaries | (665) | (162) | (1,087) | (57) | ||||
Income/(loss) before income taxes | 37,687 | (6,540) | 101,421 | 67,792 | ||||
Income tax expense/(benefit) | 10,850 | (1,403) | 23,900 | 3,992 | ||||
Net income/(loss) | 26,837 | $ 31,044 | $ 19,640 | (5,137) | $ (29,138) | $ 98,075 | 77,521 | 63,800 |
Net income attributable to noncontrolling interests | (1,116) | (900) | (7,530) | (2,952) | ||||
Net income/(loss) attributable to Darling | $ 25,721 | $ (6,037) | $ 69,991 | $ 60,848 | ||||
Basic income per share (in dollars per share) | $ 0.16 | $ (0.04) | $ 0.42 | $ 0.37 | ||||
Diluted income per share (in dollars per share) | $ 0.15 | $ (0.04) | $ 0.42 | $ 0.37 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Assets: | ||
Property, plant and equipment, accumulated depreciation | $ 1,370,145 | $ 1,246,095 |
Intangible assets, accumulated amortization | $ 459,996 | $ 423,575 |
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 | 168,433,009 | 168,098,177 |
Treasury stock, shares | 4,314,935 | 3,437,579 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Net income/(loss) | $ 26,837 | $ 31,044 | $ 19,640 | $ (5,137) | $ (29,138) | $ 98,075 | $ 77,521 | $ 63,800 |
Other comprehensive income/(loss), net of tax: | ||||||||
Foreign currency translation | (47,626) | 16,326 | (4,886) | (5,584) | (76,837) | 17,295 | (36,186) | (65,126) |
Pension adjustments | 859 | 668 | 2,576 | 2,001 | ||||
Net current-period other comprehensive income | (52,841) | (4,644) | (38,015) | (63,989) | ||||
Total comprehensive income/(loss) | (26,004) | (9,781) | 39,506 | (189) | ||||
Comprehensive income attributable to noncontrolling interests | 1,120 | (538) | 7,822 | 1,981 | ||||
Comprehensive income/(loss) attributable to Darling | (27,124) | (9,243) | 31,684 | (2,170) | ||||
Natural Gas Swap [Member] | ||||||||
Other comprehensive income/(loss), net of tax: | ||||||||
Derivative adjustments | 0 | 0 | 22 | 0 | 22 | |||
Corn Option [Member] | ||||||||
Other comprehensive income/(loss), net of tax: | ||||||||
Derivative adjustments | 553 | 22 | (40) | 447 | (1,605) | 575 | (1,198) | |
Heating Oil Swaps And Options [Member] | ||||||||
Other comprehensive income/(loss), net of tax: | ||||||||
Derivative adjustments | (1,683) | 0 | 450 | 0 | ||||
Foreign Exchange Contract [Member] | ||||||||
Other comprehensive income/(loss), net of tax: | ||||||||
Derivative adjustments | (4,944) | 1,451 | (1,937) | 309 | $ (5,430) | $ 309 | ||
Parent [Member] | ||||||||
Net income/(loss) | 25,721 | 26,258 | 18,012 | (6,037) | (30,420) | 97,305 | ||
Other comprehensive income/(loss), net of tax: | ||||||||
Foreign currency translation | (47,630) | 17,797 | (6,645) | (4,146) | (76,787) | 16,778 | ||
Parent [Member] | Natural Gas Swap [Member] | ||||||||
Other comprehensive income/(loss), net of tax: | ||||||||
Derivative adjustments | 22 | |||||||
Parent [Member] | Corn Option [Member] | ||||||||
Other comprehensive income/(loss), net of tax: | ||||||||
Derivative adjustments | 553 | 22 | (40) | $ 447 | $ (1,605) | |||
Parent [Member] | Foreign Exchange Contract [Member] | ||||||||
Other comprehensive income/(loss), net of tax: | ||||||||
Derivative adjustments | $ (4,944) | $ 1,451 | $ (1,937) | $ 309 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Total | Natural Gas Swap [Member] | Heating Oil [Member] | Corn Option [Member] | Foreign Exchange Contract [Member] | Soybean Meal [Member] | Parent [Member] | Parent [Member]Natural Gas Swap [Member] | Parent [Member]Heating Oil [Member] | Parent [Member]Corn Option [Member] | Parent [Member]Foreign Exchange Contract [Member] | Parent [Member]Soybean Meal [Member] | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossNatural Gas Swap [Member] | Accumulated Other Comprehensive LossHeating Oil [Member] | Accumulated Other Comprehensive LossCorn Option [Member] | Accumulated Other Comprehensive LossForeign Exchange Contract [Member] | Accumulated Other Comprehensive LossSoybean Meal [Member] | Retained Earnings | Non-controlling Interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Adjustment to initially apply FASB ASC No. 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | $ (4,782) | $ 4,782 | |||||||||||||||||||||
Balance (in shares) at Dec. 30, 2017 | 164,653,437 | ||||||||||||||||||||||
Stockholders' Equity, Beginning Balance at Dec. 30, 2017 | $ 2,327,697 | $ 2,244,933 | $ 1,679 | $ 1,515,614 | $ (44,063) | (209,524) | 981,227 | $ 82,764 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Net income/(loss) | 98,075 | 97,305 | 97,305 | 770 | |||||||||||||||||||
Deductions to noncontrolling interests | (10,173) | (10,173) | |||||||||||||||||||||
Pension liability adjustments, net of tax | 667 | 667 | 667 | ||||||||||||||||||||
Foreign exchange derivative adjustment, net of tax | $ 22 | $ (1,605) | $ 22 | $ (1,605) | $ 22 | $ (1,605) | |||||||||||||||||
Foreign currency translation | 17,295 | 16,778 | 16,778 | 517 | |||||||||||||||||||
Stock-based compensation | 8,527 | 8,527 | 8,527 | ||||||||||||||||||||
Treasury stock (in shares) | (159,758) | ||||||||||||||||||||||
Treasury stock | (2,962) | (2,962) | (2,962) | ||||||||||||||||||||
Issuance of common stock (in shares) | 153,983 | ||||||||||||||||||||||
Issuance of common stock | 1,696 | 1,696 | $ 1 | 1,695 | |||||||||||||||||||
Balance (in shares) at Mar. 31, 2018 | 164,647,662 | ||||||||||||||||||||||
Stockholders' Equity, Ending Balance at Mar. 31, 2018 | 2,439,239 | 2,365,361 | $ 1,680 | 1,525,836 | (47,025) | (198,444) | 1,083,314 | 73,878 | |||||||||||||||
Balance (in shares) at Dec. 30, 2017 | 164,653,437 | ||||||||||||||||||||||
Stockholders' Equity, Beginning Balance at Dec. 30, 2017 | 2,327,697 | 2,244,933 | $ 1,679 | 1,515,614 | (44,063) | (209,524) | 981,227 | 82,764 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Net income/(loss) | 63,800 | ||||||||||||||||||||||
Foreign exchange derivative adjustment, net of tax | 22 | (1,198) | $ 309 | $ 3 | |||||||||||||||||||
Foreign currency translation | (65,126) | (65,126) | |||||||||||||||||||||
Balance (in shares) at Sep. 29, 2018 | 164,657,928 | ||||||||||||||||||||||
Stockholders' Equity, Ending Balance at Sep. 29, 2018 | 2,315,303 | 2,254,442 | $ 1,681 | 1,530,924 | (47,696) | (277,324) | 1,046,857 | 60,861 | |||||||||||||||
Balance (in shares) at Mar. 31, 2018 | 164,647,662 | ||||||||||||||||||||||
Stockholders' Equity, Beginning Balance at Mar. 31, 2018 | 2,439,239 | 2,365,361 | $ 1,680 | 1,525,836 | (47,025) | (198,444) | 1,083,314 | 73,878 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Net income/(loss) | (29,138) | (30,420) | (30,420) | 1,282 | |||||||||||||||||||
Deductions to noncontrolling interests | (482) | (482) | |||||||||||||||||||||
Pension liability adjustments, net of tax | 666 | 666 | 666 | ||||||||||||||||||||
Foreign exchange derivative adjustment, net of tax | 447 | 447 | 447 | ||||||||||||||||||||
Foreign currency translation | (76,837) | (76,787) | (76,787) | (50) | |||||||||||||||||||
Stock-based compensation | 4,219 | 4,219 | 4,219 | ||||||||||||||||||||
Treasury stock (in shares) | (21,389) | ||||||||||||||||||||||
Treasury stock | (378) | (378) | (378) | ||||||||||||||||||||
Issuance of common stock (in shares) | 27,636 | ||||||||||||||||||||||
Issuance of common stock | 295 | 295 | $ 1 | 294 | |||||||||||||||||||
Balance (in shares) at Jun. 30, 2018 | 164,653,909 | ||||||||||||||||||||||
Stockholders' Equity, Ending Balance at Jun. 30, 2018 | 2,338,031 | 2,263,403 | $ 1,681 | 1,530,349 | (47,403) | (274,118) | 1,052,894 | 74,628 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Net income/(loss) | (5,137) | (6,037) | (6,037) | 900 | |||||||||||||||||||
Deductions to noncontrolling interests | (13,229) | (13,229) | |||||||||||||||||||||
Pension liability adjustments, net of tax | 668 | 668 | 668 | ||||||||||||||||||||
Foreign exchange derivative adjustment, net of tax | 0 | (40) | 309 | 3 | (40) | $ 309 | $ 3 | (40) | $ 309 | $ 3 | |||||||||||||
Foreign currency translation | (5,584) | (4,146) | (4,146) | (1,438) | |||||||||||||||||||
Stock-based compensation | 374 | 374 | 374 | ||||||||||||||||||||
Treasury stock (in shares) | (14,499) | ||||||||||||||||||||||
Treasury stock | (293) | (293) | (293) | ||||||||||||||||||||
Issuance of common stock (in shares) | 18,518 | ||||||||||||||||||||||
Issuance of common stock | 201 | 201 | $ 0 | 201 | |||||||||||||||||||
Balance (in shares) at Sep. 29, 2018 | 164,657,928 | ||||||||||||||||||||||
Stockholders' Equity, Ending Balance at Sep. 29, 2018 | 2,315,303 | 2,254,442 | $ 1,681 | 1,530,924 | (47,696) | (277,324) | 1,046,857 | 60,861 | |||||||||||||||
Balance (in shares) at Dec. 29, 2018 | 164,660,598 | ||||||||||||||||||||||
Stockholders' Equity, Beginning Balance at Dec. 29, 2018 | 2,335,821 | 2,273,048 | $ 1,681 | 1,536,157 | (47,756) | (304,539) | 1,087,505 | 62,773 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Net income/(loss) | 19,640 | 18,012 | 18,012 | 1,628 | |||||||||||||||||||
Pension liability adjustments, net of tax | 858 | 858 | 858 | ||||||||||||||||||||
Foreign exchange derivative adjustment, net of tax | (1,937) | (1,937) | (1,937) | ||||||||||||||||||||
Foreign currency translation | (4,886) | (6,645) | (6,645) | 1,759 | |||||||||||||||||||
Stock-based compensation | 10,403 | 10,403 | 10,403 | ||||||||||||||||||||
Treasury stock (in shares) | (223,294) | ||||||||||||||||||||||
Treasury stock | (5,089) | (5,089) | (5,089) | ||||||||||||||||||||
Issuance of common stock (in shares) | 311,502 | ||||||||||||||||||||||
Issuance of common stock | 1,889 | 1,889 | $ 3 | 1,886 | |||||||||||||||||||
Balance (in shares) at Mar. 30, 2019 | 164,748,806 | ||||||||||||||||||||||
Stockholders' Equity, Ending Balance at Mar. 30, 2019 | 2,356,699 | 2,290,539 | $ 1,684 | 1,548,446 | (52,845) | (312,263) | 1,105,517 | 66,160 | |||||||||||||||
Balance (in shares) at Dec. 29, 2018 | 164,660,598 | ||||||||||||||||||||||
Stockholders' Equity, Beginning Balance at Dec. 29, 2018 | 2,335,821 | 2,273,048 | $ 1,681 | 1,536,157 | (47,756) | (304,539) | 1,087,505 | 62,773 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Net income/(loss) | 77,521 | ||||||||||||||||||||||
Foreign exchange derivative adjustment, net of tax | 0 | 575 | (5,430) | 0 | |||||||||||||||||||
Foreign currency translation | (36,186) | (36,186) | |||||||||||||||||||||
Balance (in shares) at Sep. 28, 2019 | 164,118,074 | ||||||||||||||||||||||
Stockholders' Equity, Ending Balance at Sep. 28, 2019 | 2,372,892 | 2,308,493 | $ 1,684 | 1,556,792 | (64,633) | (342,846) | 1,157,496 | 64,399 | |||||||||||||||
Balance (in shares) at Mar. 30, 2019 | 164,748,806 | ||||||||||||||||||||||
Stockholders' Equity, Beginning Balance at Mar. 30, 2019 | 2,356,699 | 2,290,539 | $ 1,684 | 1,548,446 | (52,845) | (312,263) | 1,105,517 | 66,160 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Net income/(loss) | 31,044 | 26,258 | 26,258 | 4,786 | |||||||||||||||||||
Deductions to noncontrolling interests | (5,751) | (5,751) | |||||||||||||||||||||
Pension liability adjustments, net of tax | 859 | 859 | 859 | ||||||||||||||||||||
Foreign exchange derivative adjustment, net of tax | $ 2,133 | 22 | 1,451 | $ 2,133 | 22 | 1,451 | $ 2,133 | 22 | 1,451 | ||||||||||||||
Foreign currency translation | 16,326 | 17,797 | 17,797 | (1,471) | |||||||||||||||||||
Stock-based compensation | 3,849 | 3,849 | 3,849 | ||||||||||||||||||||
Treasury stock (in shares) | (131) | ||||||||||||||||||||||
Treasury stock | (3) | (3) | (3) | ||||||||||||||||||||
Issuance of common stock (in shares) | 375 | ||||||||||||||||||||||
Issuance of common stock | 6 | 6 | $ 0 | 6 | |||||||||||||||||||
Balance (in shares) at Jun. 29, 2019 | 164,749,050 | ||||||||||||||||||||||
Stockholders' Equity, Ending Balance at Jun. 29, 2019 | 2,406,635 | 2,342,911 | $ 1,684 | 1,552,301 | (52,848) | (290,001) | 1,131,775 | 63,724 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Net income/(loss) | 26,837 | 25,721 | 25,721 | 1,116 | |||||||||||||||||||
Deductions to noncontrolling interests | (445) | (445) | |||||||||||||||||||||
Pension liability adjustments, net of tax | 859 | 859 | 859 | ||||||||||||||||||||
Foreign exchange derivative adjustment, net of tax | $ 0 | $ (1,683) | $ 553 | $ (4,944) | $ 0 | $ (1,683) | $ 553 | $ (4,944) | $ (1,683) | $ 553 | $ (4,944) | ||||||||||||
Foreign currency translation | (47,626) | (47,630) | (47,630) | 4 | |||||||||||||||||||
Stock-based compensation | 4,372 | 4,372 | 4,372 | ||||||||||||||||||||
Treasury stock (in shares) | (653,931) | ||||||||||||||||||||||
Treasury stock | (11,785) | (11,785) | (11,785) | ||||||||||||||||||||
Issuance of common stock (in shares) | 22,955 | ||||||||||||||||||||||
Issuance of common stock | 119 | 119 | $ 0 | 119 | |||||||||||||||||||
Balance (in shares) at Sep. 28, 2019 | 164,118,074 | ||||||||||||||||||||||
Stockholders' Equity, Ending Balance at Sep. 28, 2019 | $ 2,372,892 | $ 2,308,493 | $ 1,684 | $ 1,556,792 | $ (64,633) | $ (342,846) | $ 1,157,496 | $ 64,399 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders’ Equity (Parenthetical) - $ / shares | Sep. 28, 2019 | Dec. 29, 2018 | Sep. 29, 2018 |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Cash flows from operating activities: | ||
Net income/(loss) | $ 77,521 | $ 63,800 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 239,057 | 235,915 |
Loss (gain) on disposal of property, plant, equipment and other assets | (20,845) | 472 |
Loss on disposal of subsidiaries | 0 | 12,500 |
Asset impairment | 0 | 2,907 |
Gain on insurance proceeds from insurance settlements | (1,371) | (1,253) |
Deferred taxes | (4,765) | (15,708) |
Increase (decrease) in long-term pension liability | 1,122 | (375) |
Stock-based compensation expense | 18,543 | 13,606 |
Write-off deferred loan costs | 4,721 | 8,163 |
Deferred loan cost amortization | 4,435 | 6,265 |
Equity in net income of Diamond Green Diesel and other unconsolidated subsidiaries | (93,303) | (109,598) |
Distributions of earnings from Diamond Green Diesel and other unconsolidated subsidiaries | 57,118 | 27,418 |
Changes in operating assets and liabilities, net of effects from acquisitions: | ||
Accounts receivable | 20,388 | 9,657 |
Income taxes refundable/payable | 8,058 | (9,838) |
Inventories and prepaid expenses | (34,371) | (25,960) |
Accounts payable and accrued expenses | (19,799) | (23,004) |
Other | 6,173 | 4,731 |
Net cash provided by operating activities | 262,682 | 199,698 |
Cash flows from investing activities: | ||
Capital expenditures | (245,092) | (213,726) |
Acquisitions, net of cash acquired | (1,431) | (51,301) |
Investment in unconsolidated subsidiary | (2,000) | (10,000) |
Proceeds from sale of investment in subsidiary | 0 | 82,805 |
Gross proceeds from disposal of property, plant and equipment and other assets | 15,402 | 3,361 |
Proceeds from insurance settlement | 1,371 | 1,253 |
Payments related to routes and other intangibles | (3,150) | (1,253) |
Net cash used by investing activities | (234,900) | (188,861) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 511,985 | 623,698 |
Payments on long-term debt | (566,107) | (661,268) |
Borrowings from revolving credit facility | 325,485 | 386,436 |
Payments on revolving credit facility | (332,884) | (362,463) |
Net cash overdraft financing | 27,858 | 3,361 |
Deferred loan costs | (7,027) | (9,668) |
Issuance of common stock | 39 | 182 |
Repurchase of common stock | (11,740) | 0 |
Minimum withholding taxes paid on stock awards | (3,247) | (2,215) |
Distributions to noncontrolling interests | (4,500) | (8,005) |
Net cash used by financing activities | (60,138) | (29,942) |
Effect of exchange rate changes on cash | (5,732) | (6,238) |
Net decrease in cash, cash equivalents and restricted cash | (38,088) | (25,343) |
Cash, cash equivalents and restricted cash at beginning of period | 107,369 | 106,916 |
Cash, cash equivalents and restricted cash at end of period | 69,281 | 81,573 |
Supplemental disclosure of cash flow information: | ||
Accrued capital expenditures | 3,978 | (5,295) |
Cash paid during the period for: | ||
Interest, net of capitalized interest | 49,727 | 58,731 |
Income taxes, net of refunds | 21,475 | 28,682 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 16,425 | 0 |
Debt issued for assets | $ 0 | $ 24 |
General
General | 9 Months Ended |
Sep. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General The accompanying consolidated financial statements for the three and nine month periods ended September 28, 2019 and September 29, 2018 , 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 29, 2018 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 28, 2019 | |
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 September 28, 2019 , and include the 13 and 39 weeks ended September 28, 2019 , and the 13 and 39 weeks ended September 29, 2018 . (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. 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): September 28, 2019 December 29, 2018 Cash and cash equivalents $ 69,122 $ 107,262 Restricted cash 159 107 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flow $ 69,281 $ 107,369 (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 sells certain selected customers trade receivables to the third party banks without recourse for cash less a nominal fee. For the three months ended September 28, 2019 and September 29, 2018 , the Company sold approximately $ 53.1 million and $ 32.3 million of its trade receivables and incurred approximately $ 0.3 million and $ 0.2 million in fees, which are recorded as interest expense, respectively. For the nine months ended September 28, 2019 and September 29, 2018 , the Company sold approximately $ 136.3 million and $ 82.9 million of its trade receivables and incurred approximately $ 0.8 million and $ 0.4 million in fees, which are recorded as interest expense, respectively. (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 when 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 19 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 losses of approximately $ 36.5 million and $ 64.2 million for the nine months ended September 28, 2019 and September 29, 2018 , respectively. (g) Leases The Company accounts for leases in accordance with Accounting Standard Codification (“ASC”) Topic 842, leases. The Company determines if an arrangement is a lease at inception for which the Company recognizes the right-of-use (“ROU”) asset and a lease liability at the lease commencement date. For operating leases, the lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. In determining the lease liability, the Company applies a discount rate to the minimum lease payments within each lease. ASC 842 requires the Company to use the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. To estimate the Company's incremental borrowing rate over various terms, a comparable market yield curve consistent with the Company's credit quality is determined. The lease term for all of the Company's leases include the noncancellable period of the lease plus any additional periods covered by either a Company option to extend the lease that the Company is reasonably certain to exercise or when a triggering event occurs. The Company has elected to not recognize a ROU asset and lease liability with an initial term of 12 months or less at lease commencement. Current operating leases are included on the Company's balance sheet as a ROU asset, current operating lease liabilities and long-term operating lease liabilities. For finance leases, the lease liability is initially measured in the same manner and date as for the operating leases, and is subsequently measured at amortized cost using the effective interest method. Finance leases are included in property, plant and equipment, current portion of long-term debt and long-term debt, net of current portion, but are not significant to the Company. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any direct costs incurred less any lease incentives received. For operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of the lease incentives received. Some leases payments contain rent escalation clauses (including index-based escalations), initially measured using the index at the lease commencement date. The Company recognizes minimum rental expense on a straight-line basis based on the fixed components of the lease arrangement. The Company uses the long-lived assets impairment guidance in ASC subtopic 360-10, Property, Plant and Equipment - Overall, to determine whether the ROU asset is impaired, and if so, the amount of the impairment loss to recognize. The Company monitors for events or changes in circumstances that require a reassessment of one of its leases. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding ROU asset unless doing so would reduce the carrying amount of the ROU asset to an amount less than zero. In that case, the amount of the adjustment that would result in a negative ROU asset balance is recorded in the consolidated statement of operations. As a result of adopting the new lease standard, the Company recognized additional operating liabilities of approximately $ 134.4 million with a corresponding ROU asset of approximately $ 135.7 million as of December 30, 2018. (h) Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation including reclassification of the Company's investment equity in net income/(loss) of Diamond Green Diesel to operating income. See Note 3 for further discussion. (i) 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/(loss) per Common Share (in thousands, except per share data) Three Months Ended September 28, 2019 September 29, 2018 Income Shares Per Share Loss Shares Per Share Basic: Net Income (loss) attributable to Darling $ 25,721 164,747 $ 0.16 $ (6,037 ) 164,656 $ (0.04 ) Diluted: Effect of dilutive securities: Add: Option shares in the money and dilutive effect of non-vested stock awards 5,725 — Less: Pro forma treasury shares (2,206 ) — Diluted: Net income (loss) attributable to Darling $ 25,721 168,266 $ 0.15 $ (6,037 ) 164,656 $ (0.04 ) Net Income per Common Share (in thousands, except per share data) Nine Months Ended September 28, 2019 September 29, 2018 Income Shares Per Share Income Shares Per Share Basic: Net Income attributable to Darling $ 69,991 164,846 $ 0.42 $ 60,848 164,784 $ 0.37 Diluted: Effect of dilutive securities: Add: Option shares in the money and dilutive effect of non-vested stock awards 5,885 1,690 Less: Pro forma treasury shares (2,278 ) (700 ) Diluted: Net income attributable to Darling $ 69,991 168,453 $ 0.42 $ 60,848 165,774 $ 0.37 For the three months ended September 28, 2019 and September 29, 2018 , respectively, 839,979 and 3,774,610 outstanding stock options were excluded from diluted income per common share as the effect was antidilutive. For the three months ended September 28, 2019 and September 29, 2018 , respectively, 462,841 and 2,258,646 shares of non-vested stock and stock equivalents were excluded from diluted income per common share as the effect was antidilutive. For the nine months ended September 28, 2019 and September 29, 2018 , respectively, 641,399 and 2,773,030 outstanding stock options were excluded from diluted income per common share as the effect was antidilutive. For the nine months ended September 28, 2019 and September 29, 2018 , respectively, 557,900 and 1,448,719 shares of non-vested stock and stock equivalents were excluded from diluted income per common share as the effect was antidilutive. |
Investment in Unconsolidated Su
Investment in Unconsolidated Subsidiary | 9 Months Ended |
Sep. 28, 2019 | |
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 as a result of the recent expanded capacity is now capable of processing approximately 20,000 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. Effective May 1, 2019, the limited liability company agreement was amended and restated for the purpose of updating the agreement in certain respects, including to remove certain provisions that were no longer relevant and to add new provisions relating to the DGD Joint Venture’s recently approved expansion project to construct a new, parallel facility located next to the existing facility. In 2019, the Company continued to evaluate operational developments and the impact of anticipated significant expansion of the DGD Joint Venture. This evaluation was impactful to the consideration of how the Company most appropriately reflects its share of equity income from the DGD Joint Venture. Based on the Company's analysis, it was determined that the DGD Joint Venture has evolved into an integral and integrated part of the Company's ongoing operations. The Company determined this justifies a more meaningful and transparent presentation of equity in net income of the DGD Joint Venture as a component of the Company's operating income. As a result, the Company has reclassified its equity in net income of the DGD Joint Venture to operating income for all periods presented. Selected financial information for the Company's DGD Joint Venture is as follows (in thousands): (in thousands) September 30, 2019 December 31, 2018 Assets: Total current assets $ 193,457 $ 186,258 Property, plant and equipment, net 653,463 576,384 Other assets 30,587 24,601 Total assets $ 877,507 $ 787,243 Liabilities and members' equity: Total current portion of long term debt $ 293 $ 189 Total other current liabilities 47,373 40,619 Total long term debt 8,859 8,485 Total other long term liabilities 4,409 539 Total members' equity 816,573 737,411 Total liabilities and members' equity $ 877,507 $ 787,243 Three Months Ended Nine Months Ended (in thousands) September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Revenues: Operating revenues $ 262,118 $ 104,811 $ 859,647 $ 407,121 Expenses: Total costs and expenses less depreciation, amortization and accretion expense 183,022 103,794 633,109 169,632 Depreciation, amortization and accretion expense 15,242 6,516 38,574 18,890 Total costs and expenses 198,264 110,310 671,683 188,522 Operating income 63,854 (5,499 ) 187,964 218,599 Other income 506 556 1,781 1,348 Interest and debt expense, net (320 ) (318 ) (965 ) (637 ) Net income $ 64,040 $ (5,261 ) $ 188,780 $ 219,310 As of September 28, 2019 under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $ 408.3 million on the consolidated balance sheet. The Company has recorded an equity in net income of approximately $ 32.0 million and an equity in net loss of $ 2.6 million for the three months ended September 28, 2019 and September 29, 2018 , respectively. The Company has recorded an equity in net income of approximately $ 94.4 million and $ 109.7 million for the nine months ended September 28, 2019 and September 29, 2018, respectively. In February 2018, the blender tax credits for calendar year 2017 were retroactively reinstated by the U.S. Congress. Fiscal 2019 results do not include any blenders tax credits, while in the first nine months 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 credits have not been reinstated for fiscal 2018 or fiscal 2019. In the nine months ended September 28, 2019, the Company received dividend distributions of approximately $ 55.4 million from the DGD Joint Venture. In addition, in October 2019, the Company received a dividend distribution of approximately $ 12.1 million from the DGD Joint Venture. In addition to the DGD Joint Venture, the Company has investments in other unconsolidated subsidiaries that are insignificant to the Company. |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Notes) | 9 Months Ended |
Sep. 28, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions |
Inventories
Inventories | 9 Months Ended |
Sep. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories A summary of inventories follows (in thousands): September 28, 2019 December 29, 2018 Finished product $ 199,764 $ 176,184 Work in process 80,313 78,501 Raw material 35,852 32,502 Supplies and other 37,074 53,841 $ 353,003 $ 341,028 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 28, 2019 | |
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): September 28, 2019 December 29, 2018 Indefinite Lived Intangible Assets Trade names $ 52,241 $ 53,472 52,241 53,472 Finite Lived Intangible Assets: Routes 377,686 386,724 Permits 479,823 486,359 Non-compete agreements 3,808 3,784 Trade names 65,670 72,570 Royalty, consulting, land use rights and leasehold 18,128 16,528 945,115 965,965 Accumulated Amortization: Routes (159,318 ) (145,702 ) Permits (261,970 ) (238,123 ) Non-compete agreements (2,959 ) (2,501 ) Trade names (31,253 ) (33,242 ) Royalty, consulting, land use rights and leasehold (4,496 ) (4,007 ) (459,996 ) (423,575 ) Total Intangible assets, less accumulated amortization $ 537,360 $ 595,862 Gross intangible routes, permits, trade names, non-compete agreements and other intangibles partially decreased in fiscal 2019 as a result of approximately $ 13.4 million of fully amortized asset retirements. Amortization expense for the three and nine months ended September 28, 2019 and September 29, 2018 , was approximately $ 18.5 million , $ 18.3 million and $ 55.3 million and $ 56.7 million , respectively. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 28, 2019 | |
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 29, 2018 Goodwill $ 791,966 $ 335,701 $ 117,867 $ 1,245,534 Accumulated impairment losses (15,914 ) (461 ) — (16,375 ) 776,052 335,240 117,867 1,229,159 Goodwill acquired during year 396 91 — 487 Foreign currency translation (3,740 ) (10,280 ) (3,313 ) (17,333 ) Balance at September 28, 2019 Goodwill 788,622 325,512 114,554 1,228,688 Accumulated impairment losses (15,914 ) (461 ) — (16,375 ) $ 772,708 $ 325,051 $ 114,554 $ 1,212,313 |
Accrued Expense Accrued Expense
Accrued Expense Accrued Expenses | 9 Months Ended |
Sep. 28, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consist of the following (in thousands): September 28, 2019 December 29, 2018 Compensation and benefits $ 90,275 $ 91,851 Accrued income, ad valorem, and franchise taxes 28,578 31,366 Accrued operating expenses 63,138 62,247 Customer deposits 10,970 30,741 Other accrued expense 104,203 93,279 $ 297,164 $ 309,484 |
Leases
Leases | 9 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
Leases | Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). The Company adopted the new standard on December 30, 2018 and is using the effective date as the Company's date of initial application and consequently, financial information will not be updated and the disclosures required under the this ASU will not be provided for dates and periods before December 30, 2018. The Company has elected the package of expedients, which permits the Company not to reassess under the new standard the Company's prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to the Company. The Company leases certain real and personal property under non-cancelable operating leases. In addition, the Company leases a large portion of the Company's fleet of tractors, all of its rail cars, some IT equipment and other transportation equipment. The Company's office leases include certain lease and non-lease components, where the Company has elected to exclude the non-lease components from the calculation of the lease liability and ROU asset. The Company has finance leases, which are not significant to the Company and not separately disclosed in detail. The components of operating lease expense included in cost of sales and operating expenses and selling, general and administrative expenses were as follows (in thousands): Three months ended Nine months ended September 28, 2019 September 28, 2019 Operating lease expense $ 11,589 36,417 Short-term lease costs 4,903 10,653 Total lease cost $ 16,492 $ 47,070 Other information (in thousands, except lease terms and discount rates): Nine Months Ended September 28, 2019 Cash paid for amounts included in the measurement lease liabilities Operating cash flows from operating leases $ 35,325 As of September 28, 2019 Operating right-of-use assets, net $ 119,063 Operating lease liability, current $ 35,223 Operating lease liability, non-current 83,754 Total operating lease liabilities $ 118,977 Weighted average remaining lease term - operating leases 6.6 years Weighted average discount rate - operating leases 4.69 % Future annual minimum lease payments and capital lease commitments as of September 28, 2019 were as follows (in thousands): Period Ending Fiscal Operating Leases Capital Leases 2019 (excluding the nine months ended September 28, 2019) $ 11,140 $ 20 2020 38,842 154 2021 26,818 6 2022 17,239 6 2023 12,729 — Thereafter 31,572 — $ 138,340 $ 186 Less amounts representing interest $ (19,363 ) (7 ) Lease obligations included in current and long-term liabilities $ 118,977 $ 179 The Company adopted ASU 2016-02 on December 30, 2018 as noted above. The following disclosure is provided for periods prior to adoption. Future annual minimum lease payments and capital lease commitments as of December 29, 2018 were as follows (in thousands): Period Ending Fiscal Operating Leases Capital Leases 2019 $ 46,316 $ 271 2020 34,403 152 2021 22,252 6 2022 13,091 6 2023 8,478 — Thereafter 28,219 — $ 152,759 $ 435 Less amounts representing interest (20 ) Capital lease obligation included in current and long-term debt $ 415 |
Leases | Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). The Company adopted the new standard on December 30, 2018 and is using the effective date as the Company's date of initial application and consequently, financial information will not be updated and the disclosures required under the this ASU will not be provided for dates and periods before December 30, 2018. The Company has elected the package of expedients, which permits the Company not to reassess under the new standard the Company's prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to the Company. The Company leases certain real and personal property under non-cancelable operating leases. In addition, the Company leases a large portion of the Company's fleet of tractors, all of its rail cars, some IT equipment and other transportation equipment. The Company's office leases include certain lease and non-lease components, where the Company has elected to exclude the non-lease components from the calculation of the lease liability and ROU asset. The Company has finance leases, which are not significant to the Company and not separately disclosed in detail. The components of operating lease expense included in cost of sales and operating expenses and selling, general and administrative expenses were as follows (in thousands): Three months ended Nine months ended September 28, 2019 September 28, 2019 Operating lease expense $ 11,589 36,417 Short-term lease costs 4,903 10,653 Total lease cost $ 16,492 $ 47,070 Other information (in thousands, except lease terms and discount rates): Nine Months Ended September 28, 2019 Cash paid for amounts included in the measurement lease liabilities Operating cash flows from operating leases $ 35,325 As of September 28, 2019 Operating right-of-use assets, net $ 119,063 Operating lease liability, current $ 35,223 Operating lease liability, non-current 83,754 Total operating lease liabilities $ 118,977 Weighted average remaining lease term - operating leases 6.6 years Weighted average discount rate - operating leases 4.69 % Future annual minimum lease payments and capital lease commitments as of September 28, 2019 were as follows (in thousands): Period Ending Fiscal Operating Leases Capital Leases 2019 (excluding the nine months ended September 28, 2019) $ 11,140 $ 20 2020 38,842 154 2021 26,818 6 2022 17,239 6 2023 12,729 — Thereafter 31,572 — $ 138,340 $ 186 Less amounts representing interest $ (19,363 ) (7 ) Lease obligations included in current and long-term liabilities $ 118,977 $ 179 The Company adopted ASU 2016-02 on December 30, 2018 as noted above. The following disclosure is provided for periods prior to adoption. Future annual minimum lease payments and capital lease commitments as of December 29, 2018 were as follows (in thousands): Period Ending Fiscal Operating Leases Capital Leases 2019 $ 46,316 $ 271 2020 34,403 152 2021 22,252 6 2022 13,091 6 2023 8,478 — Thereafter 28,219 — $ 152,759 $ 435 Less amounts representing interest (20 ) Capital lease obligation included in current and long-term debt $ 415 |
Debt
Debt | 9 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consists of the following (in thousands): September 28, December 29, Amended Credit Agreement: Revolving Credit Facility ($32.1 million denominated in euro at December 29, 2018) $ 24,000 $ 32,105 Term Loan A ($14.0 million and $29.8 million denominated in CAD at September 28, 2019 and December 29, 2018, respectively) 14,005 68,080 Less unamortized deferred loan costs (57 ) (381 ) Carrying value Term Loan A 13,948 67,699 Term Loan B 495,000 495,000 Less unamortized deferred loan costs (8,048 ) (9,024 ) Carrying value Term Loan B 486,952 485,976 5.375% Senior Notes due 2022 with effective interest of 5.72% — 500,000 Less unamortized deferred loan costs — (4,876 ) Carrying value 5.375% Senior Notes due 2022 — 495,124 5.25% Senior Notes due 2027 with effective interest of 5.47% 500,000 — Less unamortized deferred loan costs (6,674 ) — Carrying value 5.25% Senior Notes due 2027 493,326 — 3.625% Senior Notes due 2026 - Denominated in euro with effective interest of 3.83% 563,178 590,499 Less unamortized deferred loan costs - Denominated in euro (7,086 ) (8,160 ) Carrying value 3.625% Senior Notes due 2026 556,092 582,339 Other Notes and Obligations 46,583 11,189 1,620,901 1,674,432 Less Current Maturities 61,092 7,492 $ 1,559,809 $ 1,666,940 As of September 28, 2019 , the Company had outstanding debt under a term loan facility denominated in Canadian dollars of CAD$ 18.6 million . See below for discussion relating to the Company's debt agreements. In addition, as of September 28, 2019 , the Company had capital lease obligations denominated in Canadian dollars included in debt. The total Canadian dollar finance lease obligation was approximately CAD$ 0.2 million . As of September 28, 2019 , the Company had outstanding debt under the Company's 3.625% Senior Notes due 2026 denominated in euros of € 515.0 million . See below for discussion relating to the Company's debt agreements. In addition, at September 28, 2019 , the Company had capital lease obligations denominated in euros included in debt. The total euro finance lease obligations was less than approximately € 0.1 million . As of September 28, 2019 , the Company had other notes and obligations that consist of various overdraft facilities of approximately $ 31.3 million , a China working capital line of credit of approximately $ 12.5 million and other debt of approximately $ 2.8 million . 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 Darling Ingredients Germany Holding GmbH 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 September 28, 2019 , the Company had $ 24.0 million outstanding under the revolver at base rate plus a margin of 1.00% per annum for a total of 6.00% per annum. The Company had $ 495.0 million outstanding under the term loan B facility at LIBOR plus a margin of 2.00% per annum for a total of 4.12% per annum. The Company had CAD$ 18.6 million outstanding under the term loan A facility at CDOR plus a margin of 2.00% per annum for a total of 4.0272% . As of September 28, 2019 , the Company had availability of $ 926.9 million under the Amended Credit Agreement taking into account amounts borrowed, ancillary facilities and letters of credit issued of $ 3.6 million . The Company also has foreign bank guarantees that are not part of the Company's Amended Credit Agreement in the amount of approximately $ 11.3 million at September 28, 2019 . 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 (the “ 3.625% Indenture”), 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 3.625% Notes are guaranteed on a senior unsecured basis by Darling and all of Darling's restricted subsidiaries (other than any foreign subsidiary or any receivable entity) that guarantee the Senior Secured Credit Facilities. 5.25% Senior Notes due 2027. On April 3, 2019, Darling issued and sold $ 500.0 million aggregate principal amount of 5.25% Senior Notes due 2027 (the “ 5.25% Notes”). The 5.25% Notes, which were offered in a private offering, were issued pursuant to a Senior Notes Indenture, dated as of April 3, 2019 (the “ 5.25% Indenture”), among Darling, the subsidiary guarantors party thereto from time to time, and Regions Bank, as trustee. The gross proceeds from the sale of the Notes, together with cash on hand, were used to refinance all of the Company's 5.375% Senior Notes due 2022, by cash tender offer for and redemption of those notes, to pay the discount of the initial purchasers and to pay the other fees and expenses related to the offering of the 5.25% Notes. The 5.25% Notes will mature on April 15, 2027. Darling will pay interest on the 5.25% Notes on April 15 and October 15 of each year, commencing on October 15, 2019. Interest on the 5.25% Notes accrues from April 3, 2019 at a rate of 5.25% per annum and is payable in cash. The 5.25% Notes are guaranteed on a senior unsecured basis by Darling and all of Darling's restricted subsidiaries (other than foreign subsidiaries). In addition, the Company capitalized $ 7.0 million of deferred loan costs for the issuance of the 5.25% Notes in the second quarter of 2019. 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 Company retired the 5.375% Notes in the second quarter of 2019 using the proceeds from the issuance of the 5.25% Notes and incurred charges of approximately $ 12.1 million in debt extinguishment charges including the write-off of deferred loan costs. As of September 28, 2019 , 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 5.25% Indenture and the 3.625% Indenture. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company has provided income taxes for the three and nine month periods ended September 28, 2019 and September 29, 2018 , based on its estimate of the effective tax rate for the entire 2019 and 2018 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 September 28, 2019 , the Company had $ 4.1 million of gross unrecognized tax benefits and $ 0.8 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 $ 0.2 million , excluding interest and penalties, primarily due to potential settlements and expiration of certain statutes of limitations. 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 | 9 Months Ended |
Sep. 28, 2019 | |
Equity [Abstract] | |
Other Comprehensive Income | Other Comprehensive Income/(Loss) The Company follows FASB authoritative guidance for reporting and presentation of comprehensive income/(loss) and its components. Other comprehensive income/(loss) is derived from adjustments that reflect pension adjustments, natural gas swap adjustments, corn option adjustments, soybean meal adjustments, foreign exchange forward adjustments and foreign currency translation adjustments. In the first nine months of fiscal 2019, the Company's DGD Joint Venture entered into heating oil derivatives that were deemed to be cash flow hedges. As a result, the Company has accrued the other comprehensive income/(loss) portion belonging to Darling with an offset to the investment in DGD as required by FASB ASC Topic 323. The components of other comprehensive income/(loss) and the related tax impacts for the three and nine months ended September 28, 2019 and September 29, 2018 are as follows (in thousands): Three Months Ended Before-Tax Tax (Expense) Net-of-Tax Amount or Benefit Amount September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Defined benefit pension plans Amortization of prior service cost/(benefit) $ 9 $ 9 $ (2 ) $ (3 ) $ 7 $ 6 Amortization of actuarial loss 1,146 888 (294 ) (226 ) 852 662 Total defined benefit pension plans 1,155 897 (296 ) (229 ) 859 668 Soybean meal option derivatives Loss/(gain) reclassified to net income — (4 ) — 1 — (3 ) Gain/(loss) activity recognized in other comprehensive income/(loss) — 8 — (2 ) — 6 Total soybean meal option derivatives — 4 — (1 ) — 3 Corn option derivatives Loss/(gain) reclassified to net income 206 (563 ) (54 ) 147 152 (416 ) Gain/(loss) activity recognized in other comprehensive income/(loss) 542 507 (141 ) (131 ) 401 376 Total corn option derivatives 748 (56 ) (195 ) 16 553 (40 ) Heating oil derivatives Gain/(loss) activity recognized in other comprehensive income/(loss) (2,268 ) — 585 — (1,683 ) — Total heating oil derivatives (2,268 ) — 585 — (1,683 ) — Foreign exchange derivatives Loss/(gain) reclassified to net income 1,178 — (362 ) — 816 — Gain/(loss) activity recognized in other comprehensive income/(loss) (8,405 ) 468 2,645 (159 ) (5,760 ) 309 Total foreign exchange derivatives (7,227 ) 468 2,283 (159 ) (4,944 ) 309 Foreign currency translation (48,954 ) (5,749 ) 1,328 165 (47,626 ) (5,584 ) Other comprehensive income/(loss) $ (56,546 ) $ (4,436 ) $ 3,705 $ (208 ) $ (52,841 ) $ (4,644 ) Nine Months Ended Before-Tax Tax (Expense) Net-of-Tax Amount or Benefit Amount September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Defined benefit pension plans Amortization of prior service cost/(benefit) $ 27 $ 26 $ (7 ) $ (7 ) $ 20 $ 19 Amortization of actuarial loss 3,439 2,664 (883 ) (682 ) 2,556 1,982 Total defined benefit pension plans 3,466 2,690 (890 ) (689 ) 2,576 2,001 Natural gas swap derivatives Loss/(gain) reclassified to net income — 14 — (3 ) — 11 Gain/(loss) activity recognized in other comprehensive income/(loss) — 15 — (4 ) — 11 Total natural gas swap derivatives — 29 — (7 ) — 22 Soybean meal option derivatives Loss/(gain) reclassified to net income — (4 ) — 1 — (3 ) Gain/(loss) activity recognized in other comprehensive income/(loss) — 8 — (2 ) — 6 Total soybean meal option derivatives — 4 — (1 ) — 3 Corn option derivatives Loss/(gain) reclassified to net income 169 (1,554 ) (44 ) 404 125 (1,150 ) Gain/(loss) activity recognized in other comprehensive income/(loss) 609 (65 ) (159 ) 17 450 (48 ) Total corn option derivatives 778 (1,619 ) (203 ) 421 575 (1,198 ) Heating oil derivatives Gain/(loss) activity recognized in other comprehensive income/(loss) 606 — (156 ) — 450 — Total heating oil derivatives 606 — (156 ) — 450 — Foreign exchange derivatives Loss/(gain) reclassified to net income 1,465 — (473 ) — 992 — Gain/(loss) activity recognized in other comprehensive income/(loss) (9,485 ) 468 3,063 (159 ) (6,422 ) 309 Total foreign exchange derivatives (8,020 ) 468 2,590 (159 ) (5,430 ) 309 Foreign currency translation (37,695 ) (66,407 ) 1,509 1,281 (36,186 ) (65,126 ) Other comprehensive income/(loss) $ (40,865 ) $ (64,835 ) $ 2,850 $ 846 $ (38,015 ) $ (63,989 ) The following table presents the amounts reclassified out of each component of other comprehensive income/(loss), net of tax for the three and nine months ended September 28, 2019 and September 29, 2018 as follows (in thousands): Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Statement of Operations Classification Derivative instruments Soybean meal derivatives $ — $ 4 $ — $ 4 Net sales Foreign exchange contracts (1,178 ) — (1,465 ) — Net sales Natural gas swap derivatives — — — (14 ) Cost of sales and operating expenses Corn option derivatives (206 ) 563 (169 ) 1,554 Cost of sales and operating expenses (1,384 ) 567 (1,634 ) 1,544 Total before tax 416 (148 ) 517 (402 ) Income taxes (968 ) 419 (1,117 ) 1,142 Net of tax Defined benefit pension plans Amortization of prior service cost $ (9 ) $ (9 ) $ (27 ) $ (26 ) (a) Amortization of actuarial loss (1,146 ) (888 ) (3,439 ) (2,664 ) (a) (1,155 ) (897 ) (3,466 ) (2,690 ) Total before tax 296 229 890 689 Income taxes (859 ) (668 ) (2,576 ) (2,001 ) Net of tax Total reclassifications $ (1,827 ) $ (249 ) $ (3,693 ) $ (859 ) Net of tax (a) These items are included in the computation of net periodic pension cost. See Note 14 Employee Benefit Plans for additional information. The following table presents changes in each component of accumulated other comprehensive income/(loss) as of September 28, 2019 as follows (in thousands): Nine Months Ended September 28, 2019 Foreign Currency Derivative Defined Benefit Translation Instruments Pension Plans Total Accumulated Other Comprehensive Income/(loss) December 29, 2018, attributable to Darling, net of tax $ (270,081 ) $ 1,081 $ (35,539 ) $ (304,539 ) Other comprehensive loss before reclassifications (36,186 ) (5,522 ) — (41,708 ) Amounts reclassified from accumulated other comprehensive loss — 1,117 2,576 3,693 Net current-period other comprehensive income/(loss) (36,186 ) (4,405 ) 2,576 (38,015 ) Noncontrolling interest 292 — — 292 Accumulated Other Comprehensive loss September 28, 2019, attributable to Darling, net of tax (306,559 ) $ (3,324 ) $ (32,963 ) $ (342,846 ) |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 28, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Fiscal 2019 Long-Term Incentive Opportunity Awards (2019 LTIP) . On January 25, 2019, the Compensation Committee (the “Committee”) of the Company's Board of Directors adopted the 2019 LTIP pursuant to which they awarded certain of the Company's key employees, 610,953 stock options and 305,195 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 2022, 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. During the third quarter of fiscal 2019, the Company repurchased approximately $ 11.7 million of its common stock in the open market. As of September 28, 2019 , the Company has approximately $ 188.3 million remaining under the share repurchase program initially approved in August 2017 and subsequently extended to August 13, 2020. Subsequent to the third quarter, the Company repurchased approximately $ 7.5 million of its common stock in the open market. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 28, 2019 | |
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. Net pension cost for the three and nine months ended September 28, 2019 and September 29, 2018 includes the following components (in thousands): Pension Benefits Pension Benefits Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, Service cost $ 664 $ 762 $ 2,025 $ 2,340 Interest cost 1,698 1,603 5,122 4,844 Expected return on plan assets (1,816 ) (2,053 ) (5,452 ) (6,176 ) Amortization of prior service cost 9 9 27 26 Amortization of net loss 1,146 888 3,439 2,664 Net pension cost $ 1,701 $ 1,209 $ 5,161 $ 3,698 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 September 28, 2019 , the Company expects to contribute approximately $ 4.2 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 nine months ended September 28, 2019 and September 29, 2018 of approximately $ 2.7 million and $ 2.8 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, five plans have certified as critical or red zone, two plans have certified as endangered or yellow zone as defined by the Pension Protection Act of 2006. The Company has received notices of withdrawal liability from five U.S. multiemployer plans in which it participated. As of September 28, 2019 , the Company has an aggregate accrued liability of approximately $ 6.1 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 | 9 Months Ended |
Sep. 28, 2019 | |
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 September 28, 2019 , the Company had corn option contracts and foreign exchange forward and option contracts outstanding that qualified and were designated for hedge accounting as well as corn forward contracts and 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 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 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 nine months of fiscal 2019, 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 second quarter of fiscal 2020. As of September 28, 2019, some of the contracts have been settled while the remaining contract positions and activity are not significant to the Company. At September 28, 2019, the aggregate fair value of these corn option contracts was approximately $ 0.8 million . As of December 29, 2018 there were no outstanding amounts. These amounts are included in other current assets on the balance sheet, with an offset recorded in accumulated other comprehensive income. The Company may enter into corn option contracts in the future from time to time. In fiscal 2018 and the first nine months of fiscal 2019, the Company entered into foreign exchange forward and option contracts that are considered cash flow hedges. Under the terms of the foreign exchange contracts, the Company hedged a portion of its forecasted collagen sales in currencies other than the functional currency through the fourth quarter of fiscal 2022. At September 28, 2019 and December 29, 2018 , the aggregate fair value of these foreign exchange contracts was approximately $ 0.9 million and $ 1.6 million , respectively. The September 28, 2019 amounts are included in other current assets, accrued expense and other assets on the balance sheet, with an offset recorded in accumulated other comprehensive loss. The December 29, 2018 amounts are included in other current assets, accrued expense and noncurrent liabilities on the balance sheet, with an offset recorded in accumulated other comprehensive loss. As of September 28, 2019 , the Company had the following outstanding forward and option contract amounts that were entered into to hedge foreign currency transactions in currencies other than the functional currency and forecasted transactions in currencies other than the functional currency (in thousands): Functional Currency Contract Currency Type Amount Type Amount Brazilian real 29,897 Euro 6,609 Brazilian real 1,105,749 U.S. dollar 309,020 Euro 65,145 U.S. dollar 72,542 Euro 24,654 Polish zloty 108,000 Euro 5,019 Japanese yen 601,153 Euro 15,147 Chinese renminbi 119,722 Euro 13,471 Australian dollar 21,850 Euro 5,677 British pound 5,138 Polish zloty 21,214 Euro 4,829 British pound 288 Euro 326 British pound 43 U.S. dollar 54 Japanese yen 229,604 U.S. dollar 2,130 U.S. dollar 634 Japanese yen 68,000 U.S. dollar 38,598 Euro 35,000 The Company estimates the amount that will be reclassified from accumulated other comprehensive loss at September 28, 2019 into earnings over the next 12 months will be approximately $ 0.7 million . As of September 28, 2019 , no amounts have been reclassified into earnings as a result of the discontinuance of cash flow hedges. The table below summarizes the effect of derivatives not designated as hedges on the Company's consolidated statements of operations for the three and nine months ended September 28, 2019 and September 29, 2018 (in thousands): Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges Three Months Ended Nine Months Ended Derivatives not designated as hedging instruments Location September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Foreign exchange Foreign currency loss $ 95 $ (1,389 ) $ 1,632 $ (3,216 ) Foreign exchange Net sales 1,244 3,652 1,306 3,652 Foreign exchange Cost of sales and operating expenses (567 ) (880 ) (661 ) (880 ) Foreign exchange Selling, general and administrative expense 1,915 359 2,437 3,354 Corn options and futures Net sales 881 294 619 748 Corn options and futures Cost of sales and operating expenses (2,509 ) (403 ) (1,866 ) (709 ) Heating Oil swaps and options Cost of sales and operating expenses — — (506 ) — Total $ 1,059 $ 1,633 $ 2,961 $ 2,949 At September 28, 2019 , the Company had forward purchase agreements in place for purchases of approximately $ 39.3 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 | 9 Months Ended |
Sep. 28, 2019 | |
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 September 28, 2019 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 September 28, 2019 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 $ 4,844 $ — $ 4,844 $ — Total Assets $ 4,844 $ — $ 4,844 $ — Liabilities: Derivative instruments $ 4,172 $ — $ 4,172 $ — 5.25% Senior notes 525,000 — 525,000 — 3.625% Senior notes 597,138 — 597,138 — Term loan A 13,935 — 13,935 — Term loan B 496,238 — 496,238 — Revolver debt 23,640 — 23,640 — Total Liabilities $ 1,660,123 $ — $ 1,660,123 $ — Fair Value Measurements at December 29, 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 $ 4,307 $ — $ 4,307 $ — Total Assets $ 4,307 $ — $ 4,307 $ — Liabilities: Derivative instruments $ 3,235 $ — $ 3,235 $ — 5.375% Senior notes 495,000 — 495,000 — 3.625% Senior notes 585,303 — 585,303 — Term loan A 67,739 — 67,739 — Term loan B 492,525 — 492,525 — Revolver debt 31,623 — 31,623 — Total Liabilities $ 1,675,425 $ — $ 1,675,425 $ — Derivative assets and liabilities consist of the Company’s corn 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 15 (Derivatives) for discussion on the Company's derivatives. 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. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 28, 2019 | |
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 environmental matters, including 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 September 28, 2019 and December 29, 2018 , the reserves for insurance, environmental, litigation and tax contingencies reflected on the balance sheet in accrued expenses and other non-current liabilities were approximately $ 66.8 million and $ 66.6 million , respectively. The Company has insurance recovery receivables of approximately $ 26.1 million as of September 28, 2019 and December 29, 2018 , 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 alleged successor-in-interest to The Standard Tallow Corporation) is considered a potentially responsible party (a “PRP”) with respect to alleged contamination in the lower 17 -mile area of the Passaic River 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 former plant sites located in Newark and Kearny, New Jersey by The Standard Tallow Corporation, 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 (the “ROD”) 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 EPA has already offered early cash out settlements to 20 of the other PRPs and has stated that other parties who did not discharge any of the eight contaminants of concern identified in the ROD (the “COCs”) may also be eligible for cash out settlements and has begun a settlement analysis using a third-party allocator. The Company is participating in this allocation process as it asserts that it is not responsible for any liabilities of its former subsidiary The Standard Tallow Corporation, which was legally dissolved in 2000, and that, in any event, The Standard Tallow Corporation did not discharge any of the COCs. On September 30, 2016, Occidental Chemical Corporation (“OCC”) entered into an agreement with the EPA to perform the remedial design for the cleanup plan for the lower 8.3 miles of the Passaic River. On June 30, 2018, OCC filed a complaint in the United States District Court for the District of New Jersey against over 100 companies, including the Company, seeking cost recovery or contribution for costs under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) relating to various investigations and cleanups OCC has conducted or is conducting in connection with the Passaic River. According to the complaint, OCC has incurred or is incurring costs which include the estimated cost to complete the remedial design for the cleanup plan for the lower 8.3 miles of the Passaic River. OCC is also seeking a declaratory judgment to hold the defendants liable for their proper shares of future response costs, including the remedial action for the lower 8.3 miles of the Passaic River. The Company, along with 40 of the other defendants, had previously received a release from OCC of its CERCLA contribution claim of $ 165 million associated with the costs to design the remedy for the lower 8.3 miles of the Passaic River. 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 definitive evidence that the former Standard Tallow Corporation plant sites contributed any of the COCs 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 agreed to work toward the execution of a definitive agreement to relocate the facility to a different location in Fresno. In September 2019, the Company and the City of Fresno entered into a Disposition and Development Agreement (the “DADA”) pursuant to which the Company has agreed, subject to the terms and conditions contained in the DADA, to relocate the facility to a new facility, construction of which is currently anticipated to be completed during the second half of 2021. As a condition to the Company’s obligation to relocate the facility, the Concerned Citizens of West Fresno will enter into an agreement to stay the aforementioned litigation until such time as the relocation is complete, at which time they will dismiss the litigation with prejudice. Management believes that any disruption to its operations in Fresno resulting from the litigation, relocation or otherwise, would not have a material effect on the Company's financial condition, results of operations or cash flows. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 28, 2019 | |
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 income (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 collagen 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, which primarily consists of an edible fat business. Fuel Ingredients The Company's Fuel Ingredients segment consists of (i) the portion of the Company's biofuel business related to its investment in the DGD Joint Venture (ii) the Company's biofuel business conducted under the Dar Pro® and Rothsay names and (iii) the bioenergy business conducted by Darling Ingredients International under the Ecoson and Rendac names. Business Segments (in thousands): Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Three Months Ended September 28, 2019 Net Sales $ 496,978 $ 276,467 $ 68,604 $ — $ 842,049 Cost of sales and operating expenses 379,792 214,643 58,488 — 652,923 Gross Margin 117,186 61,824 10,116 — 189,126 Loss/(gain) on sale of assets (2,429 ) (253 ) 13 — (2,669 ) Selling, general and administrative expenses 47,319 22,811 912 12,507 83,549 Depreciation and amortization 50,182 19,743 7,895 2,587 80,407 Equity in net income of Diamond Green Diesel — — 32,020 — 32,020 Segment operating income/(loss) 22,114 19,523 33,316 (15,094 ) 59,859 Equity in net loss of other unconsolidated subsidiaries (665 ) — — — (665 ) Segment income/(loss) 21,449 19,523 33,316 (15,094 ) 59,194 Total other expense (21,507 ) Income before income taxes $ 37,687 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Three Months Ended September 29, 2018 Net Sales $ 482,744 $ 265,208 $ 64,624 $ — $ 812,576 Cost of sales and operating expenses 383,739 210,730 53,460 — 647,929 Gross Margin 99,005 54,478 11,164 — 164,647 Loss/(gain) on sale of assets 107 (33 ) 98 — 172 Selling, general and administrative expenses 39,702 21,843 (2,822 ) 8,724 67,447 Depreciation and amortization 47,321 19,697 9,370 2,454 78,842 Equity in net loss of Diamond Green Diesel — — (2,630 ) — (2,630 ) Segment operating income/(loss) 11,875 12,971 1,888 (11,178 ) 15,556 Equity in net loss of other unconsolidated subsidiaries (162 ) — — — (162 ) Segment income/(loss) 11,713 12,971 1,888 (11,178 ) 15,394 Total other expense (21,934 ) Loss before income taxes $ (6,540 ) Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Nine Months Ended September 28, 2019 Net Sales $ 1,480,244 $ 830,466 $ 193,767 $ — $ 2,504,477 Cost of sales and operating expenses 1,143,606 643,091 161,855 — 1,948,552 Gross Margin 336,638 187,375 31,912 — 555,925 Loss (gain) on sale of assets (7,343 ) (13,518 ) 16 — (20,845 ) Selling, general and administrative expense 142,615 68,129 583 38,242 249,569 Depreciation and amortization 148,271 59,115 24,055 7,616 239,057 Equity in net income of Diamond Green Diesel — — 94,390 — 94,390 Segment operating income/(loss) 53,095 73,649 101,648 (45,858 ) 182,534 Equity in net loss of other unconsolidated subsidiaries (1,087 ) — — — (1,087 ) Segment income/(loss) 52,008 73,649 101,648 (45,858 ) 181,447 Total other expense (80,026 ) Income before income taxes $ 101,421 Segment assets at September 28, 2019 $ 2,592,298 $ 1,307,422 $ 789,692 $ 255,487 $ 4,944,899 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Nine Months Ended September 29, 2018 Net Sales $ 1,467,365 $ 847,457 $ 219,774 $ — $ 2,534,596 Cost of sales and operating expenses 1,123,196 684,962 170,571 — 1,978,729 Gross Margin 344,169 162,495 49,203 — 555,867 Loss (gain) on sale of assets 526 (244 ) 190 — 472 Selling, general and administrative expense 131,914 67,894 (4,056 ) 37,155 232,907 Restructuring and impairment charges — 14,965 — — 14,965 Depreciation and amortization 140,933 60,725 26,378 7,879 235,915 Equity in net income of Diamond Green Diesel — — 109,655 — 109,655 Segment operating income/(loss) 70,796 19,155 136,346 (45,034 ) 181,263 Equity in net loss of other unconsolidated subsidiaries (57 ) — — — (57 ) Segment income/(loss) 70,739 19,155 136,346 (45,034 ) 181,206 Total other expense (113,414 ) Income before income taxes $ 67,792 Segment assets at December 29, 2018 $ 2,566,106 $ 1,401,291 $ 761,817 $ 160,140 $ 4,889,354 |
Revenue (Notes)
Revenue (Notes) | 9 Months Ended |
Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue 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 tables presents the Company revenues disaggregated by geographic area and major product types by reportable segment for the three months ended September 28, 2019 and September 29, 2018 (in thousands): Three Months Ended September 28, 2019 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area North America $ 411,566 $ 53,483 $ 11,176 $ 476,225 Europe 76,526 150,647 57,428 284,601 China 6,413 43,447 — 49,860 South America — 13,154 — 13,154 Other 2,473 15,736 — 18,209 Net sales $ 496,978 $ 276,467 $ 68,604 $ 842,049 Major product types Fats $ 150,018 $ 33,186 $ — $ 183,204 Used cooking oil 45,793 — — 45,793 Proteins 196,912 — — 196,912 Bakery 51,570 — — 51,570 Other rendering 40,444 — — 40,444 Food ingredients — 221,091 — 221,091 Bioenergy — — 57,428 57,428 Biofuels — — 11,176 11,176 Other 12,241 22,190 — 34,431 Net sales $ 496,978 $ 276,467 $ 68,604 $ 842,049 Nine Months Ended September 28, 2019 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area North America $ 1,223,253 $ 157,097 $ 26,530 $ 1,406,880 Europe 235,381 450,106 167,237 852,724 China 14,318 133,368 — 147,686 South America — 37,944 — 37,944 Other 7,292 51,951 — 59,243 Net sales $ 1,480,244 $ 830,466 $ 193,767 $ 2,504,477 Major product types Fats $ 438,436 $ 99,109 $ — $ 537,545 Used cooking oil 136,498 — — 136,498 Proteins 603,110 — — 603,110 Bakery 141,641 — — 141,641 Other rendering 122,581 — — 122,581 Food ingredients — 666,235 — 666,235 Bioenergy — — 167,237 167,237 Biofuels — — 26,530 26,530 Other 37,978 65,122 — 103,100 Net sales $ 1,480,244 $ 830,466 $ 193,767 $ 2,504,477 Three Months Ended September 29, 2018 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area Revenues North America $ 388,088 $ 45,538 $ 8,616 $ 442,242 Europe 81,381 146,872 56,008 284,261 China 11,199 43,185 — 54,384 South America — 11,579 — 11,579 Other 2,076 18,034 — 20,110 Net sales $ 482,744 $ 265,208 $ 64,624 $ 812,576 Major product types Fats $ 142,453 $ 39,172 $ — $ 181,625 Used cooking oil 38,863 — — 38,863 Proteins 216,316 — — 216,316 Bakery 44,638 — — 44,638 Other rendering 27,519 — — 27,519 Food ingredients — 206,504 — 206,504 Bioenergy — — 56,008 56,008 Biofuels — — 8,616 8,616 Other 12,955 19,532 — 32,487 Net sales $ 482,744 $ 265,208 $ 64,624 $ 812,576 Nine Months Ended September 29, 2018 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area Revenues North America $ 1,186,866 $ 135,803 $ 40,668 $ 1,363,337 Europe 251,495 490,133 179,106 920,734 China 23,279 132,578 — 155,857 South America — 35,839 — 35,839 Other 5,725 53,104 — 58,829 Net sales $ 1,467,365 $ 847,457 $ 219,774 $ 2,534,596 Major product types Fats $ 423,148 $ 122,806 $ — $ 545,954 Used cooking oil 123,555 — — 123,555 Proteins 641,178 — — 641,178 Bakery 135,871 — — 135,871 Other rendering 87,860 — — 87,860 Food ingredients — 657,793 — 657,793 Bioenergy — — 179,106 179,106 Biofuels — — 40,668 40,668 Other 55,753 66,858 — 122,611 Net sales $ 1,467,365 $ 847,457 $ 219,774 $ 2,534,596 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 when 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. Collagen 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. Long-Term Performance Obligations . The Company from time to time enters into long-term contracts to supply certain volumes of finished products to certain customers. Revenue recognized to date in 2019 under these long-term supply contracts was approximately $ 24.2 million , with the remaining performance obligations to be recognized in future periods (generally 5 years) of approximately $ 297.6 million . |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 28, 2019 | |
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 September 28, 2019 and September 29, 2018 , the Company has recorded sales to the DGD Joint Venture of approximately $ 47.3 million and $ 23.9 million , respectively. For the nine months ended September 28, 2019 and September 29, 2018 , the Company recorded sales to the DGD Joint Venture of approximately $ 149.5 million and $ 90.8 million , respectively. At September 28, 2019 and December 29, 2018 , the Company has $ 8.6 million and $ 8.0 million in outstanding receivables due from the DGD Joint Venture, respectively. In addition, the Company has eliminated approximately $ 6.8 million of additional sales for the three months ended September 28, 2019 to defer the Company's portion of profit of approximately $ 1.0 million on those sales relating to inventory assets remaining on the DGD Joint Venture's balance sheet at September 28, 2019 . Revolving Loan Agreement On May 1, 2019, Darling through its wholly owned subsidiary Darling Green Energy LLC, (“Darling Green”), and Diamond Alternative Energy, LLC, a wholly owned subsidiary of Valero (“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. The DGD Lenders have committed to making loans available to the DGD Joint Venture in the total amount of $ 50.0 million with each lender committed to $ 25.0 million of the total commitment. Any borrowings by the DGD Joint Venture 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 April 29, 2020, unless extended by agreement of the parties. The DGD Loan Agreement replaces a similar agreement with lower commitment levels that expired on December 31, 2018. As of September 28, 2019 , no amounts are owed to Darling Green under the DGD Loan Agreement. |
New Accounting Pronoucements
New Accounting Pronoucements | 9 Months Ended |
Sep. 28, 2019 | |
New Accounting Pronoucements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. This ASU amends Subtopic 350-40, Intangibles - Goodwill and Other Internal - Use Software , which will align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for fiscal years beginning after December 15, 2019 and for interim periods therein, with early adoption permitted. Implementation should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company adopted the new accounting standard effective December 30, 2018 and the adoption did not have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans. This ASU amends Subtopic 715-20, Compensation - Retirement Benefits - Defined Benefit Plans - General , which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The standard is effective for fiscal years ending after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact of this standard. In August 2018, the FASB issued ASU No. 2018-13, Changes to the Disclosure Requirements for Fair Value Measurements. This ASU amends Topic 820, Fair Value Measurement , which changes the disclosure requirements for fair value measurements by removing, adding and modifying certain disclosures. The standard is effective for fiscal years beginning after December 15, 2019 and for interim periods therein, with early adoption permitted. The Company is currently evaluating the impact of this standard. 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 with disclosure on a prospective basis. The Company adopted this ASU on December 30, 2018 and the initial adoption of this ASU did not have a material impact on the Company's consolidated financial statements. 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. |
Guarantor Financial Information
Guarantor Financial Information | 9 Months Ended |
Sep. 28, 2019 | |
Guarantor Financial Information [Abstract] | |
Guarantor Financial Information | Guarantor Financial Information The Company's 5.25% Notes and 3.625% Notes (see Note 10) 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 3.625% Notes and is discussed further below, or any receivables entity): Darling National, Griffin and its subsidiary Craig Protein, Darling AWS LLC, Darling Global Holdings Inc., Darling Northstar LLC, EV Acquisition, LLC, Rousselot Inc., Rousselot Dubuque Inc., Sonac USA LLC and Rousselot Peabody Inc. In addition, the 3.625% 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 3.625% Notes, fully and unconditionally guaranteed the 5.25% Notes and 3.625% 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 5.25% Notes or the 3.625% 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 September 28, 2019 and December 29, 2018 , 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 and nine months ended September 28, 2019 and September 29, 2018 . 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 euro-denominated notes such as the 3.625% Notes and therefore does not have any substantial operations or assets. Condensed Consolidated Balance Sheet As of September 28, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated ASSETS Cash and cash equivalents $ 542 $ 26 $ 68,554 $ — $ 69,122 Restricted cash 103 — 56 — 159 Accounts receivable 42,305 682,090 500,072 (869,461 ) 355,006 Inventories 26,939 94,192 231,872 — 353,003 Income taxes refundable 1,544 — 3,408 — 4,952 Prepaid expenses 18,671 2,042 25,665 — 46,378 Other current assets 6,034 (2,057 ) 37,856 (16,772 ) 25,061 Total current assets 96,138 776,293 867,483 (886,233 ) 853,681 Investment in subsidiaries 5,056,589 1,366,517 844,043 (7,267,149 ) — Property, plant and equipment, net 426,046 510,433 778,289 — 1,714,768 Intangible assets, net 45,820 178,145 313,395 — 537,360 Goodwill 49,902 490,748 671,663 — 1,212,313 Investment in unconsolidated subsidiaries 12,878 — 434,811 — 447,689 Operating lease right-of-use asset 71,528 30,954 16,581 — 119,063 Other assets 36,165 145 48,143 (38,274 ) 46,179 Deferred taxes — — 13,846 — 13,846 $ 5,795,066 $ 3,353,235 $ 3,988,254 $ (8,191,656 ) $ 4,944,899 LIABILITIES AND STOCKHOLDERS’ EQUITY Current portion of long-term debt $ 24,509 $ 5 $ 53,350 $ (16,772 ) $ 61,092 Accounts payable 889,921 35,446 136,093 (869,450 ) 192,010 Income taxes payable (862 ) — 11,266 — 10,404 Current operating lease liability 19,220 10,225 5,778 — 35,223 Accrued expenses 103,571 28,667 164,936 (10 ) 297,164 Total current liabilities 1,036,359 74,343 371,423 (886,232 ) 595,893 Long-term debt, net of current portion 1,027,553 13 570,517 (38,274 ) 1,559,809 Long-term operating lease liability 53,459 20,262 10,033 — 83,754 Other noncurrent liabilities 79,126 — 34,096 — 113,222 Deferred income taxes 99,986 — 119,343 — 219,329 Total liabilities 2,296,483 94,618 1,105,412 (924,506 ) 2,572,007 Total stockholders’ equity 3,498,583 3,258,617 2,882,842 (7,267,150 ) 2,372,892 $ 5,795,066 $ 3,353,235 $ 3,988,254 $ (8,191,656 ) $ 4,944,899 Condensed Consolidated Balance Sheet As of December 29, 2018 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated ASSETS Cash and cash equivalents $ 995 $ 32 $ 106,235 $ — $ 107,262 Restricted cash 103 — 4 — 107 Accounts receivable 56,113 619,628 461,005 (751,009 ) 385,737 Inventories 23,752 83,261 234,015 — 341,028 Income taxes refundable 2,851 — 3,611 — 6,462 Prepaid expenses 12,890 2,936 19,421 — 35,247 Other current assets 2,680 (1,418 ) 20,837 — 22,099 Total current assets 99,384 704,439 845,128 (751,009 ) 897,942 Investment in subsidiaries 4,880,193 1,366,126 844,044 (7,090,363 ) — Property, plant and equipment, net 375,824 503,130 808,904 — 1,687,858 Intangible assets, net 50,132 200,936 344,794 — 595,862 Goodwill 49,506 490,748 688,905 — 1,229,159 Investment in unconsolidated subsidiary 13,969 — 396,208 — 410,177 Other assets 39,395 138 13,842 — 53,375 Deferred income taxes — — 14,981 — 14,981 $ 5,508,403 $ 3,265,517 $ 3,956,806 $ (7,841,372 ) $ 4,889,354 LIABILITIES AND STOCKHOLDERS’ EQUITY Current portion of long-term debt $ 3,558 $ 5 $ 3,929 $ — $ 7,492 Accounts payable 783,406 24,388 162,678 (750,993 ) 219,479 Income taxes payable (10 ) — 4,053 — 4,043 Accrued expenses 107,572 33,387 168,541 (16 ) 309,484 Total current liabilities 894,526 57,780 339,201 (751,009 ) 540,498 Long-term debt, net of current portion 1,019,130 18 647,792 — 1,666,940 Other noncurrent liabilities 78,589 — 36,443 — 115,032 Deferred income taxes 95,710 — 135,353 — 231,063 Total liabilities 2,087,955 57,798 1,158,789 (751,009 ) 2,553,533 Total stockholders’ equity 3,420,448 3,207,719 2,798,017 (7,090,363 ) 2,335,821 $ 5,508,403 $ 3,265,517 $ 3,956,806 $ (7,841,372 ) $ 4,889,354 Condensed Consolidated Statements of Operations For the three months ended September 28, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 164,488 $ 330,655 $ 403,749 $ (56,843 ) $ 842,049 Cost and expenses: Cost of sales and operating expenses 130,498 273,238 306,030 (56,843 ) 652,923 Gain on sale of assets (86 ) (2,343 ) (240 ) — (2,669 ) Selling, general and administrative expenses 41,225 12,319 30,005 — 83,549 Depreciation and amortization 15,071 25,317 40,019 — 80,407 Total costs and expenses 186,708 308,531 375,814 (56,843 ) 814,210 Equity in net income of Diamond Green Diesel — — 32,020 — 32,020 Operating income/(loss) (22,220 ) 22,124 59,955 — 59,859 Interest expense (13,862 ) (52 ) (5,445 ) — (19,359 ) Foreign currency losses (30 ) (4 ) 500 — 466 Other expense, net (2,026 ) (431 ) (157 ) — (2,614 ) Equity in net income/(loss) of other unconsolidated subsidiaries (1,172 ) — 507 — (665 ) Earnings in investments in subsidiaries 52,697 — — (52,697 ) — Income/(loss) before taxes 13,387 21,637 55,360 (52,697 ) 37,687 Income tax expense/(benefit) (12,334 ) 6,472 16,712 — 10,850 Net income attributable to noncontrolling interests — — (1,116 ) — (1,116 ) Net income/(loss) attributable to Darling $ 25,721 $ 15,165 $ 37,532 $ (52,697 ) $ 25,721 Condensed Consolidated Statements of Operations For the nine months ended September 28, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 481,645 $ 986,390 $ 1,206,999 $ (170,557 ) $ 2,504,477 Cost and expenses: Cost of sales and operating expenses 384,408 813,491 921,210 (170,557 ) 1,948,552 Gain on sale of assets (44 ) (7,331 ) (13,470 ) — (20,845 ) Selling, general and administrative expenses 129,218 35,042 85,309 — 249,569 Depreciation and amortization 43,668 76,594 118,795 — 239,057 Total costs and expenses 557,250 917,796 1,111,844 (170,557 ) 2,416,333 Equity in net income of Diamond Green Diesel — — 94,390 — 94,390 Operating income/(loss) (75,605 ) 68,594 189,545 — 182,534 Interest expense (42,967 ) (108 ) (17,013 ) — (60,088 ) Debt extinguishment costs (12,126 ) — — — (12,126 ) Foreign currency losses (31 ) (3 ) (620 ) — (654 ) Other income/(expense), net (4,878 ) (2,407 ) 127 — (7,158 ) Equity in net income/(loss) of other unconsolidated subsidiaries (3,090 ) — 2,003 — (1,087 ) Earnings in investments in subsidiaries 176,004 — — (176,004 ) — Income/(loss) before taxes 37,307 66,076 174,042 (176,004 ) 101,421 Income tax expense/(benefit) (32,684 ) 15,571 41,013 — 23,900 Net income attributable to noncontrolling interests — — (7,530 ) — (7,530 ) Net income/(loss) attributable to Darling $ 69,991 $ 50,505 $ 125,499 $ (176,004 ) $ 69,991 Condensed Consolidated Statements of Operations For the three months ended September 29, 2018 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 136,460 $ 328,148 $ 410,936 $ (62,968 ) $ 812,576 Cost and expenses: Cost of sales and operating expenses 108,008 274,159 328,730 (62,968 ) 647,929 Loss (gain) on sale of assets (29 ) (12 ) 213 — 172 Selling, general and administrative expenses 34,967 7,457 25,023 — 67,447 Restructuring and impairment charges — — — — — Depreciation and amortization 12,036 25,322 41,484 — 78,842 Total costs and expenses 154,982 306,926 395,450 (62,968 ) 794,390 Equity in net loss of Diamond Green Diesel — — (2,630 ) — (2,630 ) Operating income/(loss) (18,522 ) 21,222 12,856 — 15,556 Interest expense (13,823 ) 190 (6,447 ) — (20,080 ) Debt extinguishment costs — — — — — Foreign currency gains/(losses) (4 ) (2 ) (2,100 ) — (2,106 ) Loss on sale of subsidiary — — 3,038 — 3,038 Other income/(expense), net (1,791 ) (656 ) (339 ) — (2,786 ) Equity in net income/(loss) of other unconsolidated subsidiaries (732 ) — 570 — (162 ) Earnings in investments in subsidiaries 28,438 — — (28,438 ) — Income/(loss) before taxes (6,434 ) 20,754 7,578 (28,438 ) (6,540 ) Income tax expense/(benefit) (397 ) 179 (1,185 ) — (1,403 ) Net income attributable to noncontrolling interests — — (900 ) — (900 ) Net income/(loss) attributable to Darling $ (6,037 ) $ 20,575 $ 7,863 $ (28,438 ) $ (6,037 ) Condensed Consolidated Statements of Operations For the nine months ended September 29, 2018 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 391,281 $ 1,021,248 $ 1,302,210 $ (180,143 ) $ 2,534,596 Cost and expenses: Cost of sales and operating expenses 306,298 821,220 1,031,354 (180,143 ) 1,978,729 Loss (gain) on sale of assets (230 ) (227 ) 929 — 472 Selling, general and administrative expenses 115,138 32,719 85,050 — 232,907 Restructuring and impairment charges — — 14,965 — 14,965 Depreciation and amortization 34,672 77,555 123,688 — 235,915 Total costs and expenses 455,878 931,267 1,255,986 (180,143 ) 2,462,988 Equity in net income of Diamond Green Diesel — — 109,655 — 109,655 Operating income/(loss) (64,597 ) 89,981 155,879 — 181,263 Interest expense (42,380 ) 7,193 (31,033 ) — (66,220 ) Debt extinguishment costs (15,635 ) — (7,874 ) — (23,509 ) Foreign currency gains/(losses) (441 ) (96 ) (6,545 ) — (7,082 ) Loss on sale of subsidiary (15,538 ) — 3,038 — (12,500 ) Other income/(expense), net (15,405 ) (172 ) 11,474 — (4,103 ) Equity in net income/(loss) of other unconsolidated subsidiaries (1,807 ) — 1,750 — (57 ) Earnings in investments in subsidiaries 207,477 — — (207,477 ) — Income/(loss) before taxes 51,674 96,906 126,689 (207,477 ) 67,792 Income tax expense/(benefit) (9,174 ) 5,706 7,460 — 3,992 Net income attributable to noncontrolling interests — — (2,952 ) — (2,952 ) Net income/(loss) attributable to Darling $ 60,848 $ 91,200 $ 116,277 $ (207,477 ) $ 60,848 Condensed Consolidated Statements of Comprehensive Income/(Loss) For the three months ended September 28, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income/(loss) $ 26,837 $ 15,165 $ 37,532 $ (52,697 ) $ 26,837 Other comprehensive income/(loss), net of tax: Foreign currency translation 1,328 — (48,954 ) — (47,626 ) Pension adjustments 767 — 92 — 859 Corn option derivative adjustments 553 — — — 553 Heating oil derivative adjustments — — (1,683 ) — (1,683 ) Foreign exchange derivative adjustments — — (4,944 ) — (4,944 ) Total other comprehensive income/(loss), net of tax 2,648 — (55,489 ) — (52,841 ) Total comprehensive income/(loss) 29,485 15,165 (17,957 ) (52,697 ) (26,004 ) Total comprehensive loss attributable to noncontrolling interest — — 1,120 — 1,120 Total comprehensive income/(loss) attributable to Darling $ 29,485 $ 15,165 $ (19,077 ) $ (52,697 ) $ (27,124 ) Condensed Consolidated Statements of Comprehensive Income/(Loss) For the nine months ended September 28, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income/(loss) $ 77,521 $ 50,505 $ 125,499 $ (176,004 ) $ 77,521 Other comprehensive income/ (loss), net of tax: Foreign currency translation 1,509 — (37,695 ) — (36,186 ) Pension adjustments 2,300 — 276 — 2,576 Corn option derivative adjustments 575 — — — 575 Heating oil derivative adjustments — — 450 — 450 Foreign exchange derivative adjustments — — (5,430 ) — (5,430 ) Total other comprehensive income/(loss), net of tax 4,384 — (42,399 ) — (38,015 ) Total comprehensive income/(loss) 81,905 50,505 83,100 (176,004 ) 39,506 Total comprehensive income attributable to noncontrolling interest — — 7,822 — 7,822 Total comprehensive income/(loss) attributable to Darling $ 81,905 $ 50,505 $ 75,278 $ (176,004 ) $ 31,684 Condensed Consolidated Statements of Comprehensive Income/(Loss) For the three months ended September 29, 2018 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income/(loss) $ (5,137 ) $ 20,575 $ 7,863 $ (28,438 ) $ (5,137 ) Other comprehensive income/(loss), net of tax: Foreign currency translation 165 — (5,749 ) — (5,584 ) Pension adjustments 565 — 103 — 668 Soybean meal derivative adjustments 3 — — — 3 Corn option derivative adjustments (40 ) — — — (40 ) Foreign exchange derivative adjustment — — 309 — 309 Total other comprehensive income/(loss), net of tax 693 — (5,337 ) — (4,644 ) Total comprehensive income/(loss) (4,444 ) 20,575 2,526 (28,438 ) (9,781 ) Total comprehensive income attributable to noncontrolling interest — — (538 ) — (538 ) Total comprehensive income/(loss) attributable to Darling $ (4,444 ) $ 20,575 $ 3,064 $ (28,438 ) $ (9,243 ) Condensed Consolidated Statements of Comprehensive Income/(Loss) For the nine months ended September 29, 2018 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income/(loss) $ 63,800 $ 91,200 $ 116,277 $ (207,477 ) $ 63,800 Other comprehensive income/(loss), net of tax: Foreign currency translation 1,281 (53,387 ) (13,020 ) — (65,126 ) Pension adjustments 1,696 — 305 — 2,001 Natural gas swap derivative adjustments 22 — — — 22 Soybean meal derivative adjustments 3 — — — 3 Corn option derivative adjustments (1,198 ) — — — (1,198 ) Foreign exchange derivative adjustments — — 309 — 309 Total other comprehensive income, net of tax 1,804 (53,387 ) (12,406 ) — (63,989 ) Total comprehensive income/(loss) 65,604 37,813 103,871 (207,477 ) (189 ) Total comprehensive loss attributable to noncontrolling interest — — 1,981 — 1,981 Total comprehensive income/(loss) attributable to Darling $ 65,604 $ 37,813 $ 101,890 $ (207,477 ) $ (2,170 ) Condensed Consolidated Statements of Cash Flows For the nine months ended September 28, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Cash flows from operating activities: Net income/(loss) $ 77,521 $ 50,505 $ 125,499 $ (176,004 ) $ 77,521 Earnings in investments in subsidiaries (176,004 ) — — 176,004 — Other operating cash flows 189,575 (2,763 ) (1,651 ) — 185,161 Net cash provided by operating activities 91,092 47,742 123,848 — 262,682 Cash flows from investing activities: Capital expenditures (88,639 ) (61,337 ) (95,116 ) — (245,092 ) Acquisitions (1,157 ) — (274 ) — (1,431 ) Investment in subsidiaries and affiliates (2,393 ) (393 ) — 786 (2,000 ) Note receivable from affiliates 38,274 — (38,274 ) — — Gross proceeds from sale of property, plant and equipment and other assets 380 12,223 2,799 — 15,402 Proceeds from insurance settlements — 1,371 — — 1,371 Payments related to routes and other intangibles (131 ) — (3,019 ) — (3,150 ) Net cash used in investing activities (53,666 ) (48,136 ) (133,884 ) 786 (234,900 ) Cash flows from financing activities: Proceeds for long-term debt 500,000 — 11,985 — 511,985 Payments on long-term debt (545,872 ) (5 ) (20,230 ) — (566,107 ) Borrowings from revolving facilities 176,000 — 149,485 — 325,485 Payments on revolving facilities (152,000 ) — (180,884 ) — (332,884 ) Net cash overdraft financing 5,951 — 21,907 — 27,858 Deferred loan costs (7,027 ) — — — (7,027 ) Issuances of common stock 39 — — — 39 Repurchase of treasury stock (11,740 ) — — — (11,740 ) Contributions from parent — 393 393 (786 ) — Minimum withholding taxes paid on stock awards (3,230 ) — (17 ) — (3,247 ) Distributions to noncontrolling interests — — (4,500 ) — (4,500 ) Net cash provided/(used) in financing activities (37,879 ) 388 (21,861 ) (786 ) (60,138 ) Effect of exchange rate changes on cash — — (5,732 ) — (5,732 ) Net decrease in cash, cash equivalents and restricted cash (453 ) (6 ) (37,629 ) — (38,088 ) Cash, cash equivalents and restricted cash at beginning of period 1,098 32 106,239 — 107,369 Cash, cash equivalents and restricted cash at end of period $ 645 $ 26 $ 68,610 $ — $ 69,281 Condensed Consolidated Statements of Cash Flows For the nine months ended September 29, 2018 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Cash flows from operating activities: Net income/(loss) $ 63,800 $ 91,200 $ 116,277 $ (207,477 ) $ 63,800 Earnings in investments in subsidiaries (207,477 ) — — 207,477 — Other operating cash flows 187,663 (49,424 ) (2,341 ) — 135,898 Net cash provided/(used) by operating activities 43,986 41,776 113,936 — 199,698 Cash flows from investing activities: Capital expenditures (75,282 ) (65,079 ) (73,365 ) — (213,726 ) Acquisitions (51,301 ) — — — (51,301 ) Investment in subsidiaries and affiliates (10,000 ) (198,880 ) — 198,880 (10,000 ) Proceeds from sale of investment in subsidiary 80,000 — 2,805 — 82,805 Note receivable from affiliates — 217,880 (217,880 ) — — Gross proceeds from sale of property, plant and equipment and other assets 1,282 843 1,236 — 3,361 Proceeds from insurance settlements 750 503 — — 1,253 Payments related to routes and other intangibles (246 ) — (1,007 ) — (1,253 ) Net cash used in investing activities (54,797 ) (44,733 ) (288,211 ) 198,880 (188,861 ) Cash flows from financing activities: Proceeds for long-term debt — — 623,698 — 623,698 Payments on long-term debt (10,090 ) — (651,178 ) — (661,268 ) Borrowings from revolving credit facility 238,000 — 148,436 — 386,436 Payments on revolving credit facility (215,000 ) — (147,463 ) — (362,463 ) Net cash overdraft financing — — 3,361 — 3,361 Deferred loan costs (824 ) — (8,844 ) — (9,668 ) Issuances of common stock 182 — — — 182 Contributions from parent — — 198,880 (198,880 ) — Minimum withholding taxes paid on stock awards (2,152 ) — (63 ) — (2,215 ) Distributions to noncontrolling interests — — (8,005 ) — (8,005 ) Net cash provided by financing activities 10,116 — 158,822 (198,880 ) (29,942 ) Effect of exchange rate changes on cash — — (6,238 ) — (6,238 ) Net decrease in cash, cash equivalents and restricted cash (695 ) (2,957 ) (21,691 ) — (25,343 ) 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 $ 1,132 $ 36 $ 80,405 $ — $ 81,573 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 28, 2019 | |
Accounting Policies [Abstract] | |
Reclassifications [Text Block] | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation including reclassification of the Company's investment equity in net income/(loss) of Diamond Green Diesel to operating income. See Note 3 for further discussion. |
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 September 28, 2019 , and include the 13 and 39 weeks ended September 28, 2019 , and the 13 and 39 weeks ended September 29, 2018 . |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts |
Revenue Recognition | Revenue Recognition |
Income Taxes | The Company has provided income taxes for the three and nine month periods ended September 28, 2019 and September 29, 2018 , based on its estimate of the effective tax rate for the entire 2019 and 2018 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 |
Leases | Leases The Company accounts for leases in accordance with Accounting Standard Codification (“ASC”) Topic 842, leases. The Company determines if an arrangement is a lease at inception for which the Company recognizes the right-of-use (“ROU”) asset and a lease liability at the lease commencement date. For operating leases, the lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. In determining the lease liability, the Company applies a discount rate to the minimum lease payments within each lease. ASC 842 requires the Company to use the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. To estimate the Company's incremental borrowing rate over various terms, a comparable market yield curve consistent with the Company's credit quality is determined. The lease term for all of the Company's leases include the noncancellable period of the lease plus any additional periods covered by either a Company option to extend the lease that the Company is reasonably certain to exercise or when a triggering event occurs. The Company has elected to not recognize a ROU asset and lease liability with an initial term of 12 months or less at lease commencement. Current operating leases are included on the Company's balance sheet as a ROU asset, current operating lease liabilities and long-term operating lease liabilities. For finance leases, the lease liability is initially measured in the same manner and date as for the operating leases, and is subsequently measured at amortized cost using the effective interest method. Finance leases are included in property, plant and equipment, current portion of long-term debt and long-term debt, net of current portion, but are not significant to the Company. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any direct costs incurred less any lease incentives received. For operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of the lease incentives received. Some leases payments contain rent escalation clauses (including index-based escalations), initially measured using the index at the lease commencement date. The Company recognizes minimum rental expense on a straight-line basis based on the fixed components of the lease arrangement. The Company uses the long-lived assets impairment guidance in ASC subtopic 360-10, Property, Plant and Equipment - Overall, to determine whether the ROU asset is impaired, and if so, the amount of the impairment loss to recognize. The Company monitors for events or changes in circumstances that require a reassessment of one of its leases. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding ROU asset unless doing so would reduce the carrying amount of the ROU asset to an amount less than zero. In that case, the amount of the adjustment that would result in a negative ROU asset balance is recorded in the consolidated statement of operations. |
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 Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
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): September 28, 2019 December 29, 2018 Cash and cash equivalents $ 69,122 $ 107,262 Restricted cash 159 107 Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flow $ 69,281 $ 107,369 |
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/(loss) per Common Share (in thousands, except per share data) Three Months Ended September 28, 2019 September 29, 2018 Income Shares Per Share Loss Shares Per Share Basic: Net Income (loss) attributable to Darling $ 25,721 164,747 $ 0.16 $ (6,037 ) 164,656 $ (0.04 ) Diluted: Effect of dilutive securities: Add: Option shares in the money and dilutive effect of non-vested stock awards 5,725 — Less: Pro forma treasury shares (2,206 ) — Diluted: Net income (loss) attributable to Darling $ 25,721 168,266 $ 0.15 $ (6,037 ) 164,656 $ (0.04 ) Net Income per Common Share (in thousands, except per share data) Nine Months Ended September 28, 2019 September 29, 2018 Income Shares Per Share Income Shares Per Share Basic: Net Income attributable to Darling $ 69,991 164,846 $ 0.42 $ 60,848 164,784 $ 0.37 Diluted: Effect of dilutive securities: Add: Option shares in the money and dilutive effect of non-vested stock awards 5,885 1,690 Less: Pro forma treasury shares (2,278 ) (700 ) Diluted: Net income attributable to Darling $ 69,991 168,453 $ 0.42 $ 60,848 165,774 $ 0.37 |
Investment in Unconsolidated _2
Investment in Unconsolidated Subsidiary (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
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) September 30, 2019 December 31, 2018 Assets: Total current assets $ 193,457 $ 186,258 Property, plant and equipment, net 653,463 576,384 Other assets 30,587 24,601 Total assets $ 877,507 $ 787,243 Liabilities and members' equity: Total current portion of long term debt $ 293 $ 189 Total other current liabilities 47,373 40,619 Total long term debt 8,859 8,485 Total other long term liabilities 4,409 539 Total members' equity 816,573 737,411 Total liabilities and members' equity $ 877,507 $ 787,243 Three Months Ended Nine Months Ended (in thousands) September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Revenues: Operating revenues $ 262,118 $ 104,811 $ 859,647 $ 407,121 Expenses: Total costs and expenses less depreciation, amortization and accretion expense 183,022 103,794 633,109 169,632 Depreciation, amortization and accretion expense 15,242 6,516 38,574 18,890 Total costs and expenses 198,264 110,310 671,683 188,522 Operating income 63,854 (5,499 ) 187,964 218,599 Other income 506 556 1,781 1,348 Interest and debt expense, net (320 ) (318 ) (965 ) (637 ) Net income $ 64,040 $ (5,261 ) $ 188,780 $ 219,310 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | A summary of inventories follows (in thousands): September 28, 2019 December 29, 2018 Finished product $ 199,764 $ 176,184 Work in process 80,313 78,501 Raw material 35,852 32,502 Supplies and other 37,074 53,841 $ 353,003 $ 341,028 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
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): September 28, 2019 December 29, 2018 Indefinite Lived Intangible Assets Trade names $ 52,241 $ 53,472 52,241 53,472 Finite Lived Intangible Assets: Routes 377,686 386,724 Permits 479,823 486,359 Non-compete agreements 3,808 3,784 Trade names 65,670 72,570 Royalty, consulting, land use rights and leasehold 18,128 16,528 945,115 965,965 Accumulated Amortization: Routes (159,318 ) (145,702 ) Permits (261,970 ) (238,123 ) Non-compete agreements (2,959 ) (2,501 ) Trade names (31,253 ) (33,242 ) Royalty, consulting, land use rights and leasehold (4,496 ) (4,007 ) (459,996 ) (423,575 ) Total Intangible assets, less accumulated amortization $ 537,360 $ 595,862 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
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 29, 2018 Goodwill $ 791,966 $ 335,701 $ 117,867 $ 1,245,534 Accumulated impairment losses (15,914 ) (461 ) — (16,375 ) 776,052 335,240 117,867 1,229,159 Goodwill acquired during year 396 91 — 487 Foreign currency translation (3,740 ) (10,280 ) (3,313 ) (17,333 ) Balance at September 28, 2019 Goodwill 788,622 325,512 114,554 1,228,688 Accumulated impairment losses (15,914 ) (461 ) — (16,375 ) $ 772,708 $ 325,051 $ 114,554 $ 1,212,313 |
Accrued Expense (Tables)
Accrued Expense (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following (in thousands): September 28, 2019 December 29, 2018 Compensation and benefits $ 90,275 $ 91,851 Accrued income, ad valorem, and franchise taxes 28,578 31,366 Accrued operating expenses 63,138 62,247 Customer deposits 10,970 30,741 Other accrued expense 104,203 93,279 $ 297,164 $ 309,484 |
(Tables)
(Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of operating lease expense included in cost of sales and operating expenses and selling, general and administrative expenses were as follows (in thousands): Three months ended Nine months ended September 28, 2019 September 28, 2019 Operating lease expense $ 11,589 36,417 Short-term lease costs 4,903 10,653 Total lease cost $ 16,492 $ 47,070 Other information (in thousands, except lease terms and discount rates): Nine Months Ended September 28, 2019 Cash paid for amounts included in the measurement lease liabilities Operating cash flows from operating leases $ 35,325 As of September 28, 2019 Operating right-of-use assets, net $ 119,063 Operating lease liability, current $ 35,223 Operating lease liability, non-current 83,754 Total operating lease liabilities $ 118,977 Weighted average remaining lease term - operating leases 6.6 years Weighted average discount rate - operating leases 4.69 % |
Maturities of Operating Lease Liabilities | Future annual minimum lease payments and capital lease commitments as of September 28, 2019 were as follows (in thousands): Period Ending Fiscal Operating Leases Capital Leases 2019 (excluding the nine months ended September 28, 2019) $ 11,140 $ 20 2020 38,842 154 2021 26,818 6 2022 17,239 6 2023 12,729 — Thereafter 31,572 — $ 138,340 $ 186 Less amounts representing interest $ (19,363 ) (7 ) Lease obligations included in current and long-term liabilities $ 118,977 $ 179 |
Maturities of Financing Lease Liabilities | Future annual minimum lease payments and capital lease commitments as of September 28, 2019 were as follows (in thousands): Period Ending Fiscal Operating Leases Capital Leases 2019 (excluding the nine months ended September 28, 2019) $ 11,140 $ 20 2020 38,842 154 2021 26,818 6 2022 17,239 6 2023 12,729 — Thereafter 31,572 — $ 138,340 $ 186 Less amounts representing interest $ (19,363 ) (7 ) Lease obligations included in current and long-term liabilities $ 118,977 $ 179 |
Schedule of Future Minimum Rental Payments for Leases | The Company adopted ASU 2016-02 on December 30, 2018 as noted above. The following disclosure is provided for periods prior to adoption. Future annual minimum lease payments and capital lease commitments as of December 29, 2018 were as follows (in thousands): Period Ending Fiscal Operating Leases Capital Leases 2019 $ 46,316 $ 271 2020 34,403 152 2021 22,252 6 2022 13,091 6 2023 8,478 — Thereafter 28,219 — $ 152,759 $ 435 Less amounts representing interest (20 ) Capital lease obligation included in current and long-term debt $ 415 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consists of the following (in thousands): September 28, December 29, Amended Credit Agreement: Revolving Credit Facility ($32.1 million denominated in euro at December 29, 2018) $ 24,000 $ 32,105 Term Loan A ($14.0 million and $29.8 million denominated in CAD at September 28, 2019 and December 29, 2018, respectively) 14,005 68,080 Less unamortized deferred loan costs (57 ) (381 ) Carrying value Term Loan A 13,948 67,699 Term Loan B 495,000 495,000 Less unamortized deferred loan costs (8,048 ) (9,024 ) Carrying value Term Loan B 486,952 485,976 5.375% Senior Notes due 2022 with effective interest of 5.72% — 500,000 Less unamortized deferred loan costs — (4,876 ) Carrying value 5.375% Senior Notes due 2022 — 495,124 5.25% Senior Notes due 2027 with effective interest of 5.47% 500,000 — Less unamortized deferred loan costs (6,674 ) — Carrying value 5.25% Senior Notes due 2027 493,326 — 3.625% Senior Notes due 2026 - Denominated in euro with effective interest of 3.83% 563,178 590,499 Less unamortized deferred loan costs - Denominated in euro (7,086 ) (8,160 ) Carrying value 3.625% Senior Notes due 2026 556,092 582,339 Other Notes and Obligations 46,583 11,189 1,620,901 1,674,432 Less Current Maturities 61,092 7,492 $ 1,559,809 $ 1,666,940 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Equity [Abstract] | |
Schedule of Comprehensive Income (Loss) | The components of other comprehensive income/(loss) and the related tax impacts for the three and nine months ended September 28, 2019 and September 29, 2018 are as follows (in thousands): Three Months Ended Before-Tax Tax (Expense) Net-of-Tax Amount or Benefit Amount September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Defined benefit pension plans Amortization of prior service cost/(benefit) $ 9 $ 9 $ (2 ) $ (3 ) $ 7 $ 6 Amortization of actuarial loss 1,146 888 (294 ) (226 ) 852 662 Total defined benefit pension plans 1,155 897 (296 ) (229 ) 859 668 Soybean meal option derivatives Loss/(gain) reclassified to net income — (4 ) — 1 — (3 ) Gain/(loss) activity recognized in other comprehensive income/(loss) — 8 — (2 ) — 6 Total soybean meal option derivatives — 4 — (1 ) — 3 Corn option derivatives Loss/(gain) reclassified to net income 206 (563 ) (54 ) 147 152 (416 ) Gain/(loss) activity recognized in other comprehensive income/(loss) 542 507 (141 ) (131 ) 401 376 Total corn option derivatives 748 (56 ) (195 ) 16 553 (40 ) Heating oil derivatives Gain/(loss) activity recognized in other comprehensive income/(loss) (2,268 ) — 585 — (1,683 ) — Total heating oil derivatives (2,268 ) — 585 — (1,683 ) — Foreign exchange derivatives Loss/(gain) reclassified to net income 1,178 — (362 ) — 816 — Gain/(loss) activity recognized in other comprehensive income/(loss) (8,405 ) 468 2,645 (159 ) (5,760 ) 309 Total foreign exchange derivatives (7,227 ) 468 2,283 (159 ) (4,944 ) 309 Foreign currency translation (48,954 ) (5,749 ) 1,328 165 (47,626 ) (5,584 ) Other comprehensive income/(loss) $ (56,546 ) $ (4,436 ) $ 3,705 $ (208 ) $ (52,841 ) $ (4,644 ) Nine Months Ended Before-Tax Tax (Expense) Net-of-Tax Amount or Benefit Amount September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Defined benefit pension plans Amortization of prior service cost/(benefit) $ 27 $ 26 $ (7 ) $ (7 ) $ 20 $ 19 Amortization of actuarial loss 3,439 2,664 (883 ) (682 ) 2,556 1,982 Total defined benefit pension plans 3,466 2,690 (890 ) (689 ) 2,576 2,001 Natural gas swap derivatives Loss/(gain) reclassified to net income — 14 — (3 ) — 11 Gain/(loss) activity recognized in other comprehensive income/(loss) — 15 — (4 ) — 11 Total natural gas swap derivatives — 29 — (7 ) — 22 Soybean meal option derivatives Loss/(gain) reclassified to net income — (4 ) — 1 — (3 ) Gain/(loss) activity recognized in other comprehensive income/(loss) — 8 — (2 ) — 6 Total soybean meal option derivatives — 4 — (1 ) — 3 Corn option derivatives Loss/(gain) reclassified to net income 169 (1,554 ) (44 ) 404 125 (1,150 ) Gain/(loss) activity recognized in other comprehensive income/(loss) 609 (65 ) (159 ) 17 450 (48 ) Total corn option derivatives 778 (1,619 ) (203 ) 421 575 (1,198 ) Heating oil derivatives Gain/(loss) activity recognized in other comprehensive income/(loss) 606 — (156 ) — 450 — Total heating oil derivatives 606 — (156 ) — 450 — Foreign exchange derivatives Loss/(gain) reclassified to net income 1,465 — (473 ) — 992 — Gain/(loss) activity recognized in other comprehensive income/(loss) (9,485 ) 468 3,063 (159 ) (6,422 ) 309 Total foreign exchange derivatives (8,020 ) 468 2,590 (159 ) (5,430 ) 309 Foreign currency translation (37,695 ) (66,407 ) 1,509 1,281 (36,186 ) (65,126 ) Other comprehensive income/(loss) $ (40,865 ) $ (64,835 ) $ 2,850 $ 846 $ (38,015 ) $ (63,989 ) |
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 and nine months ended September 28, 2019 and September 29, 2018 as follows (in thousands): Three Months Ended Nine Months Ended September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Statement of Operations Classification Derivative instruments Soybean meal derivatives $ — $ 4 $ — $ 4 Net sales Foreign exchange contracts (1,178 ) — (1,465 ) — Net sales Natural gas swap derivatives — — — (14 ) Cost of sales and operating expenses Corn option derivatives (206 ) 563 (169 ) 1,554 Cost of sales and operating expenses (1,384 ) 567 (1,634 ) 1,544 Total before tax 416 (148 ) 517 (402 ) Income taxes (968 ) 419 (1,117 ) 1,142 Net of tax Defined benefit pension plans Amortization of prior service cost $ (9 ) $ (9 ) $ (27 ) $ (26 ) (a) Amortization of actuarial loss (1,146 ) (888 ) (3,439 ) (2,664 ) (a) (1,155 ) (897 ) (3,466 ) (2,690 ) Total before tax 296 229 890 689 Income taxes (859 ) (668 ) (2,576 ) (2,001 ) Net of tax Total reclassifications $ (1,827 ) $ (249 ) $ (3,693 ) $ (859 ) Net of tax (a) These items are included in the computation of net periodic pension cost. See Note 14 Employee Benefit Plans for additional information. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents changes in each component of accumulated other comprehensive income/(loss) as of September 28, 2019 as follows (in thousands): Nine Months Ended September 28, 2019 Foreign Currency Derivative Defined Benefit Translation Instruments Pension Plans Total Accumulated Other Comprehensive Income/(loss) December 29, 2018, attributable to Darling, net of tax $ (270,081 ) $ 1,081 $ (35,539 ) $ (304,539 ) Other comprehensive loss before reclassifications (36,186 ) (5,522 ) — (41,708 ) Amounts reclassified from accumulated other comprehensive loss — 1,117 2,576 3,693 Net current-period other comprehensive income/(loss) (36,186 ) (4,405 ) 2,576 (38,015 ) Noncontrolling interest 292 — — 292 Accumulated Other Comprehensive loss September 28, 2019, attributable to Darling, net of tax (306,559 ) $ (3,324 ) $ (32,963 ) $ (342,846 ) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Retirement Benefits [Abstract] | |
Net pension cost | Net pension cost for the three and nine months ended September 28, 2019 and September 29, 2018 includes the following components (in thousands): Pension Benefits Pension Benefits Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, Service cost $ 664 $ 762 $ 2,025 $ 2,340 Interest cost 1,698 1,603 5,122 4,844 Expected return on plan assets (1,816 ) (2,053 ) (5,452 ) (6,176 ) Amortization of prior service cost 9 9 27 26 Amortization of net loss 1,146 888 3,439 2,664 Net pension cost $ 1,701 $ 1,209 $ 5,161 $ 3,698 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | (in thousands): Functional Currency Contract Currency Type Amount Type Amount Brazilian real 29,897 Euro 6,609 Brazilian real 1,105,749 U.S. dollar 309,020 Euro 65,145 U.S. dollar 72,542 Euro 24,654 Polish zloty 108,000 Euro 5,019 Japanese yen 601,153 Euro 15,147 Chinese renminbi 119,722 Euro 13,471 Australian dollar 21,850 Euro 5,677 British pound 5,138 Polish zloty 21,214 Euro 4,829 British pound 288 Euro 326 British pound 43 U.S. dollar 54 Japanese yen 229,604 U.S. dollar 2,130 U.S. dollar 634 Japanese yen 68,000 U.S. dollar 38,598 Euro 35,000 |
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 and nine months ended September 28, 2019 and September 29, 2018 (in thousands): Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges Three Months Ended Nine Months Ended Derivatives not designated as hedging instruments Location September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Foreign exchange Foreign currency loss $ 95 $ (1,389 ) $ 1,632 $ (3,216 ) Foreign exchange Net sales 1,244 3,652 1,306 3,652 Foreign exchange Cost of sales and operating expenses (567 ) (880 ) (661 ) (880 ) Foreign exchange Selling, general and administrative expense 1,915 359 2,437 3,354 Corn options and futures Net sales 881 294 619 748 Corn options and futures Cost of sales and operating expenses (2,509 ) (403 ) (1,866 ) (709 ) Heating Oil swaps and options Cost of sales and operating expenses — — (506 ) — Total $ 1,059 $ 1,633 $ 2,961 $ 2,949 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
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 September 28, 2019 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 $ 4,844 $ — $ 4,844 $ — Total Assets $ 4,844 $ — $ 4,844 $ — Liabilities: Derivative instruments $ 4,172 $ — $ 4,172 $ — 5.25% Senior notes 525,000 — 525,000 — 3.625% Senior notes 597,138 — 597,138 — Term loan A 13,935 — 13,935 — Term loan B 496,238 — 496,238 — Revolver debt 23,640 — 23,640 — Total Liabilities $ 1,660,123 $ — $ 1,660,123 $ — Fair Value Measurements at December 29, 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 $ 4,307 $ — $ 4,307 $ — Total Assets $ 4,307 $ — $ 4,307 $ — Liabilities: Derivative instruments $ 3,235 $ — $ 3,235 $ — 5.375% Senior notes 495,000 — 495,000 — 3.625% Senior notes 585,303 — 585,303 — Term loan A 67,739 — 67,739 — Term loan B 492,525 — 492,525 — Revolver debt 31,623 — 31,623 — Total Liabilities $ 1,675,425 $ — $ 1,675,425 $ — |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Three Months Ended September 28, 2019 Net Sales $ 496,978 $ 276,467 $ 68,604 $ — $ 842,049 Cost of sales and operating expenses 379,792 214,643 58,488 — 652,923 Gross Margin 117,186 61,824 10,116 — 189,126 Loss/(gain) on sale of assets (2,429 ) (253 ) 13 — (2,669 ) Selling, general and administrative expenses 47,319 22,811 912 12,507 83,549 Depreciation and amortization 50,182 19,743 7,895 2,587 80,407 Equity in net income of Diamond Green Diesel — — 32,020 — 32,020 Segment operating income/(loss) 22,114 19,523 33,316 (15,094 ) 59,859 Equity in net loss of other unconsolidated subsidiaries (665 ) — — — (665 ) Segment income/(loss) 21,449 19,523 33,316 (15,094 ) 59,194 Total other expense (21,507 ) Income before income taxes $ 37,687 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Three Months Ended September 29, 2018 Net Sales $ 482,744 $ 265,208 $ 64,624 $ — $ 812,576 Cost of sales and operating expenses 383,739 210,730 53,460 — 647,929 Gross Margin 99,005 54,478 11,164 — 164,647 Loss/(gain) on sale of assets 107 (33 ) 98 — 172 Selling, general and administrative expenses 39,702 21,843 (2,822 ) 8,724 67,447 Depreciation and amortization 47,321 19,697 9,370 2,454 78,842 Equity in net loss of Diamond Green Diesel — — (2,630 ) — (2,630 ) Segment operating income/(loss) 11,875 12,971 1,888 (11,178 ) 15,556 Equity in net loss of other unconsolidated subsidiaries (162 ) — — — (162 ) Segment income/(loss) 11,713 12,971 1,888 (11,178 ) 15,394 Total other expense (21,934 ) Loss before income taxes $ (6,540 ) Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Nine Months Ended September 28, 2019 Net Sales $ 1,480,244 $ 830,466 $ 193,767 $ — $ 2,504,477 Cost of sales and operating expenses 1,143,606 643,091 161,855 — 1,948,552 Gross Margin 336,638 187,375 31,912 — 555,925 Loss (gain) on sale of assets (7,343 ) (13,518 ) 16 — (20,845 ) Selling, general and administrative expense 142,615 68,129 583 38,242 249,569 Depreciation and amortization 148,271 59,115 24,055 7,616 239,057 Equity in net income of Diamond Green Diesel — — 94,390 — 94,390 Segment operating income/(loss) 53,095 73,649 101,648 (45,858 ) 182,534 Equity in net loss of other unconsolidated subsidiaries (1,087 ) — — — (1,087 ) Segment income/(loss) 52,008 73,649 101,648 (45,858 ) 181,447 Total other expense (80,026 ) Income before income taxes $ 101,421 Segment assets at September 28, 2019 $ 2,592,298 $ 1,307,422 $ 789,692 $ 255,487 $ 4,944,899 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Nine Months Ended September 29, 2018 Net Sales $ 1,467,365 $ 847,457 $ 219,774 $ — $ 2,534,596 Cost of sales and operating expenses 1,123,196 684,962 170,571 — 1,978,729 Gross Margin 344,169 162,495 49,203 — 555,867 Loss (gain) on sale of assets 526 (244 ) 190 — 472 Selling, general and administrative expense 131,914 67,894 (4,056 ) 37,155 232,907 Restructuring and impairment charges — 14,965 — — 14,965 Depreciation and amortization 140,933 60,725 26,378 7,879 235,915 Equity in net income of Diamond Green Diesel — — 109,655 — 109,655 Segment operating income/(loss) 70,796 19,155 136,346 (45,034 ) 181,263 Equity in net loss of other unconsolidated subsidiaries (57 ) — — — (57 ) Segment income/(loss) 70,739 19,155 136,346 (45,034 ) 181,206 Total other expense (113,414 ) Income before income taxes $ 67,792 Segment assets at December 29, 2018 $ 2,566,106 $ 1,401,291 $ 761,817 $ 160,140 $ 4,889,354 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables presents the Company revenues disaggregated by geographic area and major product types by reportable segment for the three months ended September 28, 2019 and September 29, 2018 (in thousands): Three Months Ended September 28, 2019 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area North America $ 411,566 $ 53,483 $ 11,176 $ 476,225 Europe 76,526 150,647 57,428 284,601 China 6,413 43,447 — 49,860 South America — 13,154 — 13,154 Other 2,473 15,736 — 18,209 Net sales $ 496,978 $ 276,467 $ 68,604 $ 842,049 Major product types Fats $ 150,018 $ 33,186 $ — $ 183,204 Used cooking oil 45,793 — — 45,793 Proteins 196,912 — — 196,912 Bakery 51,570 — — 51,570 Other rendering 40,444 — — 40,444 Food ingredients — 221,091 — 221,091 Bioenergy — — 57,428 57,428 Biofuels — — 11,176 11,176 Other 12,241 22,190 — 34,431 Net sales $ 496,978 $ 276,467 $ 68,604 $ 842,049 Nine Months Ended September 28, 2019 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area North America $ 1,223,253 $ 157,097 $ 26,530 $ 1,406,880 Europe 235,381 450,106 167,237 852,724 China 14,318 133,368 — 147,686 South America — 37,944 — 37,944 Other 7,292 51,951 — 59,243 Net sales $ 1,480,244 $ 830,466 $ 193,767 $ 2,504,477 Major product types Fats $ 438,436 $ 99,109 $ — $ 537,545 Used cooking oil 136,498 — — 136,498 Proteins 603,110 — — 603,110 Bakery 141,641 — — 141,641 Other rendering 122,581 — — 122,581 Food ingredients — 666,235 — 666,235 Bioenergy — — 167,237 167,237 Biofuels — — 26,530 26,530 Other 37,978 65,122 — 103,100 Net sales $ 1,480,244 $ 830,466 $ 193,767 $ 2,504,477 Three Months Ended September 29, 2018 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area Revenues North America $ 388,088 $ 45,538 $ 8,616 $ 442,242 Europe 81,381 146,872 56,008 284,261 China 11,199 43,185 — 54,384 South America — 11,579 — 11,579 Other 2,076 18,034 — 20,110 Net sales $ 482,744 $ 265,208 $ 64,624 $ 812,576 Major product types Fats $ 142,453 $ 39,172 $ — $ 181,625 Used cooking oil 38,863 — — 38,863 Proteins 216,316 — — 216,316 Bakery 44,638 — — 44,638 Other rendering 27,519 — — 27,519 Food ingredients — 206,504 — 206,504 Bioenergy — — 56,008 56,008 Biofuels — — 8,616 8,616 Other 12,955 19,532 — 32,487 Net sales $ 482,744 $ 265,208 $ 64,624 $ 812,576 Nine Months Ended September 29, 2018 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area Revenues North America $ 1,186,866 $ 135,803 $ 40,668 $ 1,363,337 Europe 251,495 490,133 179,106 920,734 China 23,279 132,578 — 155,857 South America — 35,839 — 35,839 Other 5,725 53,104 — 58,829 Net sales $ 1,467,365 $ 847,457 $ 219,774 $ 2,534,596 Major product types Fats $ 423,148 $ 122,806 $ — $ 545,954 Used cooking oil 123,555 — — 123,555 Proteins 641,178 — — 641,178 Bakery 135,871 — — 135,871 Other rendering 87,860 — — 87,860 Food ingredients — 657,793 — 657,793 Bioenergy — — 179,106 179,106 Biofuels — — 40,668 40,668 Other 55,753 66,858 — 122,611 Net sales $ 1,467,365 $ 847,457 $ 219,774 $ 2,534,596 |
Guarantor Financial Informati_2
Guarantor Financial Information (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Guarantor Financial Information [Abstract] | |
Guarantor Financial Information Condensed Consolidating Balance Sheet | Condensed Consolidated Balance Sheet As of September 28, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated ASSETS Cash and cash equivalents $ 542 $ 26 $ 68,554 $ — $ 69,122 Restricted cash 103 — 56 — 159 Accounts receivable 42,305 682,090 500,072 (869,461 ) 355,006 Inventories 26,939 94,192 231,872 — 353,003 Income taxes refundable 1,544 — 3,408 — 4,952 Prepaid expenses 18,671 2,042 25,665 — 46,378 Other current assets 6,034 (2,057 ) 37,856 (16,772 ) 25,061 Total current assets 96,138 776,293 867,483 (886,233 ) 853,681 Investment in subsidiaries 5,056,589 1,366,517 844,043 (7,267,149 ) — Property, plant and equipment, net 426,046 510,433 778,289 — 1,714,768 Intangible assets, net 45,820 178,145 313,395 — 537,360 Goodwill 49,902 490,748 671,663 — 1,212,313 Investment in unconsolidated subsidiaries 12,878 — 434,811 — 447,689 Operating lease right-of-use asset 71,528 30,954 16,581 — 119,063 Other assets 36,165 145 48,143 (38,274 ) 46,179 Deferred taxes — — 13,846 — 13,846 $ 5,795,066 $ 3,353,235 $ 3,988,254 $ (8,191,656 ) $ 4,944,899 LIABILITIES AND STOCKHOLDERS’ EQUITY Current portion of long-term debt $ 24,509 $ 5 $ 53,350 $ (16,772 ) $ 61,092 Accounts payable 889,921 35,446 136,093 (869,450 ) 192,010 Income taxes payable (862 ) — 11,266 — 10,404 Current operating lease liability 19,220 10,225 5,778 — 35,223 Accrued expenses 103,571 28,667 164,936 (10 ) 297,164 Total current liabilities 1,036,359 74,343 371,423 (886,232 ) 595,893 Long-term debt, net of current portion 1,027,553 13 570,517 (38,274 ) 1,559,809 Long-term operating lease liability 53,459 20,262 10,033 — 83,754 Other noncurrent liabilities 79,126 — 34,096 — 113,222 Deferred income taxes 99,986 — 119,343 — 219,329 Total liabilities 2,296,483 94,618 1,105,412 (924,506 ) 2,572,007 Total stockholders’ equity 3,498,583 3,258,617 2,882,842 (7,267,150 ) 2,372,892 $ 5,795,066 $ 3,353,235 $ 3,988,254 $ (8,191,656 ) $ 4,944,899 Condensed Consolidated Balance Sheet As of December 29, 2018 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated ASSETS Cash and cash equivalents $ 995 $ 32 $ 106,235 $ — $ 107,262 Restricted cash 103 — 4 — 107 Accounts receivable 56,113 619,628 461,005 (751,009 ) 385,737 Inventories 23,752 83,261 234,015 — 341,028 Income taxes refundable 2,851 — 3,611 — 6,462 Prepaid expenses 12,890 2,936 19,421 — 35,247 Other current assets 2,680 (1,418 ) 20,837 — 22,099 Total current assets 99,384 704,439 845,128 (751,009 ) 897,942 Investment in subsidiaries 4,880,193 1,366,126 844,044 (7,090,363 ) — Property, plant and equipment, net 375,824 503,130 808,904 — 1,687,858 Intangible assets, net 50,132 200,936 344,794 — 595,862 Goodwill 49,506 490,748 688,905 — 1,229,159 Investment in unconsolidated subsidiary 13,969 — 396,208 — 410,177 Other assets 39,395 138 13,842 — 53,375 Deferred income taxes — — 14,981 — 14,981 $ 5,508,403 $ 3,265,517 $ 3,956,806 $ (7,841,372 ) $ 4,889,354 LIABILITIES AND STOCKHOLDERS’ EQUITY Current portion of long-term debt $ 3,558 $ 5 $ 3,929 $ — $ 7,492 Accounts payable 783,406 24,388 162,678 (750,993 ) 219,479 Income taxes payable (10 ) — 4,053 — 4,043 Accrued expenses 107,572 33,387 168,541 (16 ) 309,484 Total current liabilities 894,526 57,780 339,201 (751,009 ) 540,498 Long-term debt, net of current portion 1,019,130 18 647,792 — 1,666,940 Other noncurrent liabilities 78,589 — 36,443 — 115,032 Deferred income taxes 95,710 — 135,353 — 231,063 Total liabilities 2,087,955 57,798 1,158,789 (751,009 ) 2,553,533 Total stockholders’ equity 3,420,448 3,207,719 2,798,017 (7,090,363 ) 2,335,821 $ 5,508,403 $ 3,265,517 $ 3,956,806 $ (7,841,372 ) $ 4,889,354 |
Guarantor Financial Information Condensed Consolidating Statements Of Operations | Condensed Consolidated Statements of Operations For the three months ended September 28, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 164,488 $ 330,655 $ 403,749 $ (56,843 ) $ 842,049 Cost and expenses: Cost of sales and operating expenses 130,498 273,238 306,030 (56,843 ) 652,923 Gain on sale of assets (86 ) (2,343 ) (240 ) — (2,669 ) Selling, general and administrative expenses 41,225 12,319 30,005 — 83,549 Depreciation and amortization 15,071 25,317 40,019 — 80,407 Total costs and expenses 186,708 308,531 375,814 (56,843 ) 814,210 Equity in net income of Diamond Green Diesel — — 32,020 — 32,020 Operating income/(loss) (22,220 ) 22,124 59,955 — 59,859 Interest expense (13,862 ) (52 ) (5,445 ) — (19,359 ) Foreign currency losses (30 ) (4 ) 500 — 466 Other expense, net (2,026 ) (431 ) (157 ) — (2,614 ) Equity in net income/(loss) of other unconsolidated subsidiaries (1,172 ) — 507 — (665 ) Earnings in investments in subsidiaries 52,697 — — (52,697 ) — Income/(loss) before taxes 13,387 21,637 55,360 (52,697 ) 37,687 Income tax expense/(benefit) (12,334 ) 6,472 16,712 — 10,850 Net income attributable to noncontrolling interests — — (1,116 ) — (1,116 ) Net income/(loss) attributable to Darling $ 25,721 $ 15,165 $ 37,532 $ (52,697 ) $ 25,721 Condensed Consolidated Statements of Operations For the nine months ended September 28, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 481,645 $ 986,390 $ 1,206,999 $ (170,557 ) $ 2,504,477 Cost and expenses: Cost of sales and operating expenses 384,408 813,491 921,210 (170,557 ) 1,948,552 Gain on sale of assets (44 ) (7,331 ) (13,470 ) — (20,845 ) Selling, general and administrative expenses 129,218 35,042 85,309 — 249,569 Depreciation and amortization 43,668 76,594 118,795 — 239,057 Total costs and expenses 557,250 917,796 1,111,844 (170,557 ) 2,416,333 Equity in net income of Diamond Green Diesel — — 94,390 — 94,390 Operating income/(loss) (75,605 ) 68,594 189,545 — 182,534 Interest expense (42,967 ) (108 ) (17,013 ) — (60,088 ) Debt extinguishment costs (12,126 ) — — — (12,126 ) Foreign currency losses (31 ) (3 ) (620 ) — (654 ) Other income/(expense), net (4,878 ) (2,407 ) 127 — (7,158 ) Equity in net income/(loss) of other unconsolidated subsidiaries (3,090 ) — 2,003 — (1,087 ) Earnings in investments in subsidiaries 176,004 — — (176,004 ) — Income/(loss) before taxes 37,307 66,076 174,042 (176,004 ) 101,421 Income tax expense/(benefit) (32,684 ) 15,571 41,013 — 23,900 Net income attributable to noncontrolling interests — — (7,530 ) — (7,530 ) Net income/(loss) attributable to Darling $ 69,991 $ 50,505 $ 125,499 $ (176,004 ) $ 69,991 Condensed Consolidated Statements of Operations For the three months ended September 29, 2018 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 136,460 $ 328,148 $ 410,936 $ (62,968 ) $ 812,576 Cost and expenses: Cost of sales and operating expenses 108,008 274,159 328,730 (62,968 ) 647,929 Loss (gain) on sale of assets (29 ) (12 ) 213 — 172 Selling, general and administrative expenses 34,967 7,457 25,023 — 67,447 Restructuring and impairment charges — — — — — Depreciation and amortization 12,036 25,322 41,484 — 78,842 Total costs and expenses 154,982 306,926 395,450 (62,968 ) 794,390 Equity in net loss of Diamond Green Diesel — — (2,630 ) — (2,630 ) Operating income/(loss) (18,522 ) 21,222 12,856 — 15,556 Interest expense (13,823 ) 190 (6,447 ) — (20,080 ) Debt extinguishment costs — — — — — Foreign currency gains/(losses) (4 ) (2 ) (2,100 ) — (2,106 ) Loss on sale of subsidiary — — 3,038 — 3,038 Other income/(expense), net (1,791 ) (656 ) (339 ) — (2,786 ) Equity in net income/(loss) of other unconsolidated subsidiaries (732 ) — 570 — (162 ) Earnings in investments in subsidiaries 28,438 — — (28,438 ) — Income/(loss) before taxes (6,434 ) 20,754 7,578 (28,438 ) (6,540 ) Income tax expense/(benefit) (397 ) 179 (1,185 ) — (1,403 ) Net income attributable to noncontrolling interests — — (900 ) — (900 ) Net income/(loss) attributable to Darling $ (6,037 ) $ 20,575 $ 7,863 $ (28,438 ) $ (6,037 ) Condensed Consolidated Statements of Operations For the nine months ended September 29, 2018 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 391,281 $ 1,021,248 $ 1,302,210 $ (180,143 ) $ 2,534,596 Cost and expenses: Cost of sales and operating expenses 306,298 821,220 1,031,354 (180,143 ) 1,978,729 Loss (gain) on sale of assets (230 ) (227 ) 929 — 472 Selling, general and administrative expenses 115,138 32,719 85,050 — 232,907 Restructuring and impairment charges — — 14,965 — 14,965 Depreciation and amortization 34,672 77,555 123,688 — 235,915 Total costs and expenses 455,878 931,267 1,255,986 (180,143 ) 2,462,988 Equity in net income of Diamond Green Diesel — — 109,655 — 109,655 Operating income/(loss) (64,597 ) 89,981 155,879 — 181,263 Interest expense (42,380 ) 7,193 (31,033 ) — (66,220 ) Debt extinguishment costs (15,635 ) — (7,874 ) — (23,509 ) Foreign currency gains/(losses) (441 ) (96 ) (6,545 ) — (7,082 ) Loss on sale of subsidiary (15,538 ) — 3,038 — (12,500 ) Other income/(expense), net (15,405 ) (172 ) 11,474 — (4,103 ) Equity in net income/(loss) of other unconsolidated subsidiaries (1,807 ) — 1,750 — (57 ) Earnings in investments in subsidiaries 207,477 — — (207,477 ) — Income/(loss) before taxes 51,674 96,906 126,689 (207,477 ) 67,792 Income tax expense/(benefit) (9,174 ) 5,706 7,460 — 3,992 Net income attributable to noncontrolling interests — — (2,952 ) — (2,952 ) Net income/(loss) attributable to Darling $ 60,848 $ 91,200 $ 116,277 $ (207,477 ) $ 60,848 |
Guarantor Financial Information Condensed Consolidating Statements of Comprehensive Income/(Loss) | Condensed Consolidated Statements of Comprehensive Income/(Loss) For the three months ended September 28, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income/(loss) $ 26,837 $ 15,165 $ 37,532 $ (52,697 ) $ 26,837 Other comprehensive income/(loss), net of tax: Foreign currency translation 1,328 — (48,954 ) — (47,626 ) Pension adjustments 767 — 92 — 859 Corn option derivative adjustments 553 — — — 553 Heating oil derivative adjustments — — (1,683 ) — (1,683 ) Foreign exchange derivative adjustments — — (4,944 ) — (4,944 ) Total other comprehensive income/(loss), net of tax 2,648 — (55,489 ) — (52,841 ) Total comprehensive income/(loss) 29,485 15,165 (17,957 ) (52,697 ) (26,004 ) Total comprehensive loss attributable to noncontrolling interest — — 1,120 — 1,120 Total comprehensive income/(loss) attributable to Darling $ 29,485 $ 15,165 $ (19,077 ) $ (52,697 ) $ (27,124 ) Condensed Consolidated Statements of Comprehensive Income/(Loss) For the nine months ended September 28, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income/(loss) $ 77,521 $ 50,505 $ 125,499 $ (176,004 ) $ 77,521 Other comprehensive income/ (loss), net of tax: Foreign currency translation 1,509 — (37,695 ) — (36,186 ) Pension adjustments 2,300 — 276 — 2,576 Corn option derivative adjustments 575 — — — 575 Heating oil derivative adjustments — — 450 — 450 Foreign exchange derivative adjustments — — (5,430 ) — (5,430 ) Total other comprehensive income/(loss), net of tax 4,384 — (42,399 ) — (38,015 ) Total comprehensive income/(loss) 81,905 50,505 83,100 (176,004 ) 39,506 Total comprehensive income attributable to noncontrolling interest — — 7,822 — 7,822 Total comprehensive income/(loss) attributable to Darling $ 81,905 $ 50,505 $ 75,278 $ (176,004 ) $ 31,684 Condensed Consolidated Statements of Comprehensive Income/(Loss) For the three months ended September 29, 2018 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income/(loss) $ (5,137 ) $ 20,575 $ 7,863 $ (28,438 ) $ (5,137 ) Other comprehensive income/(loss), net of tax: Foreign currency translation 165 — (5,749 ) — (5,584 ) Pension adjustments 565 — 103 — 668 Soybean meal derivative adjustments 3 — — — 3 Corn option derivative adjustments (40 ) — — — (40 ) Foreign exchange derivative adjustment — — 309 — 309 Total other comprehensive income/(loss), net of tax 693 — (5,337 ) — (4,644 ) Total comprehensive income/(loss) (4,444 ) 20,575 2,526 (28,438 ) (9,781 ) Total comprehensive income attributable to noncontrolling interest — — (538 ) — (538 ) Total comprehensive income/(loss) attributable to Darling $ (4,444 ) $ 20,575 $ 3,064 $ (28,438 ) $ (9,243 ) Condensed Consolidated Statements of Comprehensive Income/(Loss) For the nine months ended September 29, 2018 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income/(loss) $ 63,800 $ 91,200 $ 116,277 $ (207,477 ) $ 63,800 Other comprehensive income/(loss), net of tax: Foreign currency translation 1,281 (53,387 ) (13,020 ) — (65,126 ) Pension adjustments 1,696 — 305 — 2,001 Natural gas swap derivative adjustments 22 — — — 22 Soybean meal derivative adjustments 3 — — — 3 Corn option derivative adjustments (1,198 ) — — — (1,198 ) Foreign exchange derivative adjustments — — 309 — 309 Total other comprehensive income, net of tax 1,804 (53,387 ) (12,406 ) — (63,989 ) Total comprehensive income/(loss) 65,604 37,813 103,871 (207,477 ) (189 ) Total comprehensive loss attributable to noncontrolling interest — — 1,981 — 1,981 Total comprehensive income/(loss) attributable to Darling $ 65,604 $ 37,813 $ 101,890 $ (207,477 ) $ (2,170 ) |
Guarantor Financial Information Condensed Consolidating Statements Of Cash Flows | Condensed Consolidated Statements of Cash Flows For the nine months ended September 28, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Cash flows from operating activities: Net income/(loss) $ 77,521 $ 50,505 $ 125,499 $ (176,004 ) $ 77,521 Earnings in investments in subsidiaries (176,004 ) — — 176,004 — Other operating cash flows 189,575 (2,763 ) (1,651 ) — 185,161 Net cash provided by operating activities 91,092 47,742 123,848 — 262,682 Cash flows from investing activities: Capital expenditures (88,639 ) (61,337 ) (95,116 ) — (245,092 ) Acquisitions (1,157 ) — (274 ) — (1,431 ) Investment in subsidiaries and affiliates (2,393 ) (393 ) — 786 (2,000 ) Note receivable from affiliates 38,274 — (38,274 ) — — Gross proceeds from sale of property, plant and equipment and other assets 380 12,223 2,799 — 15,402 Proceeds from insurance settlements — 1,371 — — 1,371 Payments related to routes and other intangibles (131 ) — (3,019 ) — (3,150 ) Net cash used in investing activities (53,666 ) (48,136 ) (133,884 ) 786 (234,900 ) Cash flows from financing activities: Proceeds for long-term debt 500,000 — 11,985 — 511,985 Payments on long-term debt (545,872 ) (5 ) (20,230 ) — (566,107 ) Borrowings from revolving facilities 176,000 — 149,485 — 325,485 Payments on revolving facilities (152,000 ) — (180,884 ) — (332,884 ) Net cash overdraft financing 5,951 — 21,907 — 27,858 Deferred loan costs (7,027 ) — — — (7,027 ) Issuances of common stock 39 — — — 39 Repurchase of treasury stock (11,740 ) — — — (11,740 ) Contributions from parent — 393 393 (786 ) — Minimum withholding taxes paid on stock awards (3,230 ) — (17 ) — (3,247 ) Distributions to noncontrolling interests — — (4,500 ) — (4,500 ) Net cash provided/(used) in financing activities (37,879 ) 388 (21,861 ) (786 ) (60,138 ) Effect of exchange rate changes on cash — — (5,732 ) — (5,732 ) Net decrease in cash, cash equivalents and restricted cash (453 ) (6 ) (37,629 ) — (38,088 ) Cash, cash equivalents and restricted cash at beginning of period 1,098 32 106,239 — 107,369 Cash, cash equivalents and restricted cash at end of period $ 645 $ 26 $ 68,610 $ — $ 69,281 Condensed Consolidated Statements of Cash Flows For the nine months ended September 29, 2018 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Cash flows from operating activities: Net income/(loss) $ 63,800 $ 91,200 $ 116,277 $ (207,477 ) $ 63,800 Earnings in investments in subsidiaries (207,477 ) — — 207,477 — Other operating cash flows 187,663 (49,424 ) (2,341 ) — 135,898 Net cash provided/(used) by operating activities 43,986 41,776 113,936 — 199,698 Cash flows from investing activities: Capital expenditures (75,282 ) (65,079 ) (73,365 ) — (213,726 ) Acquisitions (51,301 ) — — — (51,301 ) Investment in subsidiaries and affiliates (10,000 ) (198,880 ) — 198,880 (10,000 ) Proceeds from sale of investment in subsidiary 80,000 — 2,805 — 82,805 Note receivable from affiliates — 217,880 (217,880 ) — — Gross proceeds from sale of property, plant and equipment and other assets 1,282 843 1,236 — 3,361 Proceeds from insurance settlements 750 503 — — 1,253 Payments related to routes and other intangibles (246 ) — (1,007 ) — (1,253 ) Net cash used in investing activities (54,797 ) (44,733 ) (288,211 ) 198,880 (188,861 ) Cash flows from financing activities: Proceeds for long-term debt — — 623,698 — 623,698 Payments on long-term debt (10,090 ) — (651,178 ) — (661,268 ) Borrowings from revolving credit facility 238,000 — 148,436 — 386,436 Payments on revolving credit facility (215,000 ) — (147,463 ) — (362,463 ) Net cash overdraft financing — — 3,361 — 3,361 Deferred loan costs (824 ) — (8,844 ) — (9,668 ) Issuances of common stock 182 — — — 182 Contributions from parent — — 198,880 (198,880 ) — Minimum withholding taxes paid on stock awards (2,152 ) — (63 ) — (2,215 ) Distributions to noncontrolling interests — — (8,005 ) — (8,005 ) Net cash provided by financing activities 10,116 — 158,822 (198,880 ) (29,942 ) Effect of exchange rate changes on cash — — (6,238 ) — (6,238 ) Net decrease in cash, cash equivalents and restricted cash (695 ) (2,957 ) (21,691 ) — (25,343 ) 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 $ 1,132 $ 36 $ 80,405 $ — $ 81,573 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 30, 2018 | Dec. 29, 2018 | |
Summary of Significant Accounting Policies [Line Items] | ||||||
Term of contract not recognized | 12 months | |||||
Operating lease, liability | $ 118,977 | $ 118,977 | $ 134,400 | |||
Operating right-of-use assets, net | 119,063 | 119,063 | $ 135,700 | $ 0 | ||
Financing Receivable, Sale | 53,100 | $ 32,300 | 136,300 | $ 82,900 | ||
Financing Receivable, Significant Sales, Transaction Fees | $ 300 | $ 200 | 800 | 400 | ||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | $ (36,500) | (64,200) | ||||
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 | $ 25,721 | $ (6,037) | $ 69,991 | $ 60,848 | ||
Shares (in shares) | 164,747,000 | 164,656,000 | 164,846,000 | 164,784,000 | ||
Per Share (in usd per share) | $ 0.16 | $ (0.04) | $ 0.42 | $ 0.37 | ||
Effect of dilutive securities: [Abstract] | ||||||
Add: Option shares in the money and dilutive effect of non-vested stock (in shares) | 5,725,000 | 0 | 5,885,000 | 1,690,000 | ||
Less: Pro forma treasury shares (in shares) | (2,206,000) | 0 | (2,278,000) | (700,000) | ||
Diluted: | ||||||
Net Income | $ 25,721 | $ (6,037) | $ 69,991 | $ 60,848 | ||
Shares (in shares) | 168,266,000 | 164,656,000 | 168,453,000 | 165,774,000 | ||
Per Share (in usd per share) | $ 0.15 | $ (0.04) | $ 0.42 | $ 0.37 | ||
Antidilutive Securities [Abstract] | ||||||
Fiscal Year to Date in Days | 273 days | 273 days | ||||
Stock Options [Member] | ||||||
Antidilutive Securities [Abstract] | ||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 839,979 | 3,774,610 | 641,399 | 2,773,030 | ||
Non Vested Stock [Member] | ||||||
Antidilutive Securities [Abstract] | ||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 462,841 | 2,258,646 | 557,900 | 1,448,719 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Dec. 30, 2017 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 69,122 | $ 107,262 | ||
Restricted cash | 159 | 107 | ||
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flow | $ 69,281 | $ 107,369 | $ 81,573 | $ 106,916 |
Investment in Unconsolidated _3
Investment in Unconsolidated Subsidiary (Details) barrel in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2019USD ($) | Sep. 28, 2019USD ($) | Sep. 29, 2018USD ($) | Sep. 28, 2019USD ($)barrel | Sep. 29, 2018USD ($) | Dec. 29, 2018USD ($) | Jan. 21, 2011 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Investment in the joint venture | $ 447,689 | $ 447,689 | $ 410,177 | ||||
Income (loss) from equity method investments | (665) | $ (162) | (1,087) | $ (57) | |||
Distributions of earnings from Diamond Green Diesel and other unconsolidated subsidiaries | 55,400 | $ 57,118 | 27,418 | ||||
Diamond Green Diesel Holdings LLC Joint Venture [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 50.00% | ||||||
Processing cabaility | barrel | 20 | ||||||
Investment in the joint venture | 408,300 | $ 408,300 | |||||
Income (loss) from equity method investments | $ 32,000 | $ (2,600) | $ 94,400 | 109,700 | |||
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% | ||||||
Subsequent Event | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Distributions of earnings from Diamond Green Diesel and other unconsolidated subsidiaries | $ 12,100 |
Investment in Unconsolidated _4
Investment in Unconsolidated Subsidiary (Assets, Liabilities and members' equity) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 31, 2018 |
ASSETS | ||
Property, plant and equipment, net | $ 653,463 | $ 576,384 |
Diamond Green Diesel Holdings LLC Joint Venture [Member] | ||
ASSETS | ||
Total current assets | 193,457 | 186,258 |
Other assets | 30,587 | 24,601 |
Total assets | 877,507 | 787,243 |
Liabilities and members' equity: | ||
Total current portion of long term debt | 293 | 189 |
Total other current liabilities | 47,373 | 40,619 |
Total long term debt | 8,859 | 8,485 |
Total other long term liabilities | 4,409 | 539 |
Total liabilities and members' equity | 816,573 | 737,411 |
Equity Method Investment, Summarized Financial Information, Liabilities and Equity | $ 877,507 | $ 787,243 |
Investment in Unconsolidated _5
Investment in Unconsolidated Subsidiary (Revenues and Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 30, 2018 | Sep. 28, 2019 | Sep. 30, 2018 | |
Expenses: | ||||
Operating income | $ 63,854 | $ (5,499) | $ 187,964 | $ 218,599 |
Interest and debt expense, net | (320) | (318) | (965) | (637) |
Diamond Green Diesel Holdings LLC Joint Venture [Member] | ||||
Revenues: | ||||
Operating revenues | 262,118 | 104,811 | 859,647 | 407,121 |
Expenses: | ||||
Total costs and expenses less depreciation, amortization and accretion expense | 183,022 | 103,794 | 633,109 | 169,632 |
Depreciation, amortization and accretion expense | 15,242 | 6,516 | 38,574 | 18,890 |
Total costs and expenses | 198,264 | 110,310 | 671,683 | 188,522 |
Other income | 506 | 556 | 1,781 | 1,348 |
Net income | $ 64,040 | $ (5,261) | $ 188,780 | $ 219,310 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 29, 2018 | |
Subsequent Event [Line Items] | |||||
Acquisitions, net of cash acquired | $ 1,431 | $ 51,301 | |||
Goodwill | $ 1,212,313 | 1,212,313 | $ 1,229,159 | ||
Proceeds from sale of investment in subsidiary | 0 | 82,805 | |||
Loss on disposal of subsidiaries | $ 0 | $ (3,038) | $ 0 | $ 12,500 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Inventory Disclosure [Abstract] | ||
Finished product | $ 199,764 | $ 176,184 |
Work in process | 80,313 | 78,501 |
Raw Material | 35,852 | 32,502 |
Supplies and other | 37,074 | 53,841 |
Inventories | $ 353,003 | $ 341,028 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 29, 2018 | |
Intangible Assets [Line Items] | |||||
Indefinite Lived Intangible Assets | $ 52,241 | $ 52,241 | $ 53,472 | ||
Finite Lived Intangible Assets: | 945,115 | 945,115 | 965,965 | ||
Accumulated Amortization: | (459,996) | (459,996) | (423,575) | ||
Intangible assets, net | 537,360 | 537,360 | 595,862 | ||
Intangible assets, period decrease | 13,400 | ||||
Amortization of Intangible Assets | 18,500 | $ 18,300 | 55,300 | $ 56,700 | |
Trade Names [Member] | |||||
Intangible Assets [Line Items] | |||||
Indefinite Lived Intangible Assets | 52,241 | 52,241 | 53,472 | ||
Trade Names [Member] | |||||
Intangible Assets [Line Items] | |||||
Finite Lived Intangible Assets: | 65,670 | 65,670 | 72,570 | ||
Accumulated Amortization: | (31,253) | (31,253) | (33,242) | ||
Collection Routes [Member] | |||||
Intangible Assets [Line Items] | |||||
Finite Lived Intangible Assets: | 377,686 | 377,686 | 386,724 | ||
Accumulated Amortization: | (159,318) | (159,318) | (145,702) | ||
Royalty, consulting land use and leasehold [Member] | |||||
Intangible Assets [Line Items] | |||||
Finite Lived Intangible Assets: | 18,128 | 18,128 | 16,528 | ||
Accumulated Amortization: | (4,496) | (4,496) | (4,007) | ||
Permits [Member] | |||||
Intangible Assets [Line Items] | |||||
Finite Lived Intangible Assets: | 479,823 | 479,823 | 486,359 | ||
Accumulated Amortization: | (261,970) | (261,970) | (238,123) | ||
Noncompete Agreements [Member] | |||||
Intangible Assets [Line Items] | |||||
Finite Lived Intangible Assets: | 3,808 | 3,808 | 3,784 | ||
Accumulated Amortization: | $ (2,959) | $ (2,959) | $ (2,501) |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 28, 2019USD ($) | |
Goodwill [Roll Forward] | |
Goodwill | $ 1,245,534 |
Accumulated impairment losses | (16,375) |
Goodwill | 1,229,159 |
Goodwill acquired during year | 487 |
Foreign currency translation | (17,333) |
Goodwill | 1,228,688 |
Accumulated impairment losses | (16,375) |
Goodwill | 1,212,313 |
Feed Ingredients | |
Goodwill [Roll Forward] | |
Goodwill | 791,966 |
Accumulated impairment losses | (15,914) |
Goodwill | 776,052 |
Goodwill acquired during year | 396 |
Foreign currency translation | (3,740) |
Goodwill | 788,622 |
Accumulated impairment losses | (15,914) |
Goodwill | 772,708 |
Fuel Ingredients | |
Goodwill [Roll Forward] | |
Goodwill | 117,867 |
Accumulated impairment losses | 0 |
Goodwill | 117,867 |
Goodwill acquired during year | 0 |
Foreign currency translation | (3,313) |
Goodwill | 114,554 |
Accumulated impairment losses | 0 |
Goodwill | 114,554 |
Food Ingredients | |
Goodwill [Roll Forward] | |
Goodwill | 335,701 |
Accumulated impairment losses | (461) |
Goodwill | 335,240 |
Goodwill acquired during year | 91 |
Foreign currency translation | (10,280) |
Goodwill | 325,512 |
Accumulated impairment losses | (461) |
Goodwill | $ 325,051 |
Accrued Expense (Details)
Accrued Expense (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Payables and Accruals [Abstract] | ||
Compensation and benefits | $ 90,275 | $ 91,851 |
Accrued income, ad valorem, and franchise taxes | 28,578 | 31,366 |
Accrued operating expenses | 63,138 | 62,247 |
Customer Deposits, Current | 10,970 | 30,741 |
Other accrued expense | 104,203 | 93,279 |
Accrued expenses | $ 297,164 | $ 309,484 |
- Components of Lease Expense (
- Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 28, 2019 | Sep. 28, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 11,589 | $ 36,417 |
Short-term Lease, Cost | 4,903 | 10,653 |
Total lease costs | $ 16,492 | $ 47,070 |
- Maturities of Operating and F
- Maturities of Operating and Financing Lease Liabilities (Details) $ in Thousands, € in Millions, $ in Millions | Sep. 28, 2019USD ($) | Sep. 28, 2019CAD ($) | Sep. 28, 2019EUR (€) | Dec. 30, 2018USD ($) | Dec. 29, 2018USD ($) |
Operating Leases | |||||
2019 (excluding the nine months ended September 28, 2019) | $ 11,140 | ||||
2020 | 38,842 | ||||
2021 | 26,818 | ||||
2022 | 17,239 | ||||
2023 | 12,729 | ||||
Thereafter | 31,572 | ||||
Operating lease, obligations | 138,340 | ||||
Less amounts representing interest | (19,363) | ||||
Lease obligations included in current and long-term liabilities | 118,977 | $ 134,400 | |||
Capital Leases | |||||
2019 (excluding the nine months ended September 28, 2019) | 20 | ||||
2020 | 154 | ||||
2021 | 6 | ||||
2022 | 6 | ||||
2023 | 0 | ||||
Thereafter | 0 | ||||
Finance lease, obligations | 186 | ||||
Less amounts representing interest | (7) | $ (20) | |||
Lease obligations included in current and long-term liabilities | $ 179 | $ 0.2 | € 0.1 | $ 415 |
- Other Information (Details)
- Other Information (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 28, 2019 | Dec. 30, 2018 | Dec. 29, 2018 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 35,325 | ||
Operating right-of-use assets, net | 119,063 | $ 135,700 | $ 0 |
Operating lease liability, current | 35,223 | 0 | |
Operating lease liability, non-current | 83,754 | $ 0 | |
Operating Lease, Liability | $ 118,977 | $ 134,400 | |
Weighted average remaining lease term - operating leases | 6 years 7 months 6 days | ||
Weighted average discount rate - operating leases | 4.69% |
Leases - Future Annual Minimum
Leases - Future Annual Minimum Lease Payments and Capital Lease Commitments (Details) $ in Thousands, € in Millions, $ in Millions | Sep. 28, 2019USD ($) | Sep. 28, 2019CAD ($) | Sep. 28, 2019EUR (€) | Dec. 29, 2018USD ($) |
Lessee, Operating Lease, Description [Abstract] | ||||
2019 | $ 46,316 | |||
2020 | 34,403 | |||
2021 | 22,252 | |||
2022 | 13,091 | |||
2023 | 8,478 | |||
Thereafter | 28,219 | |||
Total lease payments | 152,759 | |||
Capital Lease Obligations [Abstract] | ||||
2019 | 271 | |||
2020 | 152 | |||
2021 | 6 | |||
2022 | 6 | |||
2023 | 0 | |||
Thereafter | 0 | |||
Capital leases, due | 435 | |||
Less amounts representing interest | $ (7) | (20) | ||
Capital lease obligation included in current and long-term debt | $ 179 | $ 0.2 | € 0.1 | $ 415 |
Debt (Schedule of Long-term Deb
Debt (Schedule of Long-term Debt) (Details) $ in Millions | 9 Months Ended | ||||||
Sep. 28, 2019USD ($) | Sep. 28, 2019CAD ($) | Sep. 28, 2019EUR (€) | Apr. 03, 2019USD ($) | Dec. 29, 2018USD ($) | May 02, 2018EUR (€) | Jan. 02, 2014USD ($) | |
Debt Instrument [Line Items] | |||||||
Debt and Lease Obligation | $ 1,620,901,000 | $ 1,674,432,000 | |||||
Current portion of long-term debt | 61,092,000 | 7,492,000 | |||||
Long-term debt, net of current portion | 1,559,809,000 | 1,666,940,000 | |||||
Capital lease obligation included in current and long-term debt | $ 179,000 | $ 0.2 | € 100,000 | 415,000 | |||
Senior Secured Facilities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit term | 5 years | ||||||
Term Loan A Facility [Member] | Senior Secured Facilities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 13,948,000 | 67,699,000 | |||||
Long-term Debt, Gross | 14,005,000 | 68,080,000 | |||||
Unamortized Debt Issuance Expense | (57,000) | (381,000) | |||||
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 486,952,000 | 485,976,000 | |||||
Long-term Debt, Gross | 495,000,000 | 495,000,000 | |||||
Unamortized Debt Issuance Expense | (8,048,000) | (9,024,000) | |||||
Senior Notes [Member] | Senior Notes 5.375% Due 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 0 | 495,124,000 | |||||
Long-term Debt, Gross | 0 | 500,000,000 | |||||
Unamortized Debt Issuance Expense | $ 0 | $ (4,876,000) | |||||
Stated interest rate | 5.375% | 5.375% | 5.375% | 5.375% | |||
Debt instrument, interest rate, effective percentage | 5.72% | ||||||
Face amount of debt instrument | $ 500,000,000 | ||||||
Senior Notes [Member] | Senior Notes 5.25% Due 2027 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 493,326,000 | $ 0 | |||||
Long-term Debt, Gross | 500,000,000 | 0 | |||||
Unamortized Debt Issuance Expense | $ (6,674,000) | 0 | |||||
Stated interest rate | 5.25% | 5.25% | 5.25% | 5.25% | |||
Debt instrument, interest rate, effective percentage | 5.47% | 5.47% | 5.47% | ||||
Face amount of debt instrument | $ 500,000,000 | ||||||
Senior Notes [Member] | Senior Notes 3.625% Due 2026 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 556,092,000 | 582,339,000 | |||||
Long-term Debt, Gross | 563,178,000 | 590,499,000 | |||||
Unamortized Debt Issuance Expense | $ (7,086,000) | (8,160,000) | |||||
Line of credit outstanding | € | € 515,000,000 | ||||||
Stated interest rate | 3.625% | 3.625% | 3.625% | 3.625% | |||
Debt instrument, interest rate, effective percentage | 3.83% | 3.83% | 3.83% | ||||
Face amount of debt instrument | € | € 515,000,000 | ||||||
Notes Payable, Other Payables [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 46,583,000 | 11,189,000 | |||||
Notes Payable, Other Payables [Member] | Other Debt Obligations [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 2,800,000 | ||||||
Notes Payable, Other Payables [Member] | Bank Overdrafts [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 31,300,000 | ||||||
Foreign Line of Credit [Member] | Senior Secured Facilities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit outstanding | 11,300,000 | ||||||
Foreign Line of Credit [Member] | Notes Payable, Other Payables [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit outstanding | 12,500,000 | ||||||
Letter of Credit [Member] | Senior Secured Facilities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit outstanding | 3,600,000 | ||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | Senior Secured Facilities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 24,000,000 | 32,105,000 | |||||
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 | ||||||
Euro Member Countries, Euro | Revolving Credit Facility [Member] | Line of Credit [Member] | Senior Secured Facilities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 0 | 32,100,000 | |||||
Canada, Dollars | Term Loan A Facility [Member] | Senior Secured Facilities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit outstanding | 14,000,000 | $ 18.6 | $ 29,800,000 | ||||
U.S. dollar | Term Loan B Facility [Member] | Senior Secured Facilities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit outstanding | $ 495,000,000 | ||||||
Canadian Dealer Offered Rate (CDOR) [Member] | Canada, Dollars | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 4.0272% | 4.0272% | 4.0272% | ||||
Canadian Dealer Offered Rate (CDOR) [Member] | Canada, Dollars | Secured Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.00% | ||||||
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 | 4.12% | 4.12% | 4.12% | ||||
Base Rate [Member] | Secured Debt [Member] | Senior Secured Facilities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.00% | ||||||
Interest rate | 6.00% | 6.00% | 6.00% | ||||
Base Rate [Member] | U.S. dollar | Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit outstanding | $ 24,000,000 |
Debt (Senior Secured Credit Fac
Debt (Senior Secured Credit Facilities) (Details) $ in Millions | 9 Months Ended | ||
Sep. 28, 2019USD ($) | Sep. 28, 2019CAD ($) | Dec. 29, 2018USD ($) | |
Canadian Dealer Offered Rate (CDOR) [Member] | Canada, Dollars | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.0272% | 4.0272% | |
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] | Base Rate [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Interest rate | 6.00% | 6.00% | |
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 | 14,000,000 | $ 18.6 | $ 29,800,000 |
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 | 926,900,000 | ||
Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | Base Rate [Member] | U.S. dollar | |||
Debt Instrument [Line Items] | |||
Line of credit outstanding | $ 24,000,000 | ||
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 | 3,600,000 | ||
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 | $ 495,000,000 | ||
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 | 4.12% | 4.12% | |
Foreign Line of Credit [Member] | Senior Secured Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit outstanding | $ 11,300,000 | ||
Secured Debt [Member] | Senior Secured Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit, maximum borrowing capacity | $ 1,880,000,000 | ||
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 | |
Minimum [Member] | Letter of Credit [Member] | Senior Secured Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Covenant, Interest Ratio | 3 | 3 |
Debt (Senior Notes Due 2022) (D
Debt (Senior Notes Due 2022) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Apr. 03, 2019 | Jan. 02, 2014 | |
Debt Instrument [Line Items] | ||||||
Loss on Extinguishment of Debt | $ 0 | $ 0 | $ 12,126,000 | $ 23,509,000 | ||
Senior Notes [Member] | Senior Notes 5.375% Due 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | $ 500,000,000 | |||||
Stated interest rate | 5.375% | 5.375% | 5.375% | |||
Senior Notes [Member] | Senior Notes 5.25% Due 2027 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | $ 500,000,000 | |||||
Stated interest rate | 5.25% | 5.25% | 5.25% | |||
Loss on Extinguishment of Debt | $ 12,100,000 |
Debt Debt (Senior Notes Due 202
Debt Debt (Senior Notes Due 2026) (Details) - Senior Notes [Member] - Senior Notes 3.625% Due 2026 [Member] - EUR (€) | Sep. 28, 2019 | May 02, 2018 |
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | € 515,000,000 | |
Stated interest rate | 3.625% | 3.625% |
Debt Debt (Senior Notes Due 2_2
Debt Debt (Senior Notes Due 2027) (Details) - USD ($) | Sep. 28, 2019 | Apr. 03, 2019 | Jan. 02, 2014 |
Debt Instrument [Line Items] | |||
Debt Issuance Costs, Gross | $ 7,000,000 | ||
Senior Notes [Member] | Senior Notes 5.375% Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt instrument | $ 500,000,000 | ||
Stated interest rate | 5.375% | 5.375% | |
Senior Notes [Member] | Senior Notes 5.25% Due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt instrument | $ 500,000,000 | ||
Stated interest rate | 5.25% | 5.25% |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | Sep. 28, 2019USD ($) |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 4.1 |
Income tax penalties and interest accrued | 0.8 |
Significant change in unrecognized tax benefits is reasonably possible, estimated change, upper bound | $ 0.2 |
Other Comprehensive Income (Sch
Other Comprehensive Income (Schedule of OCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Before-Tax Amount: | ||||||||
Amortization of prior service cost | $ 9 | $ 9 | $ 27 | $ 26 | ||||
Amortization of actuarial loss | 1,146 | 888 | 3,439 | 2,664 | ||||
Total defined benefit pension plans | 1,155 | 897 | 3,466 | 2,690 | ||||
Foreign currency translation | (48,954) | (5,749) | ||||||
Other Comprehensive income (loss) | (56,546) | (4,436) | (40,865) | (64,835) | ||||
Tax (Expense) or Benefit: | ||||||||
Amortization of prior service cost | (2) | (3) | (7) | (7) | ||||
Amortization of actuarial loss | (294) | (226) | (883) | (682) | ||||
Total defined benefit pension plans | (296) | (229) | (890) | (689) | ||||
Foreign currency translation | 1,328 | 165 | ||||||
Other Comprehensive income (loss) | 3,705 | (208) | 2,850 | 846 | ||||
Net-of-Tax Amount: | ||||||||
Amortization of prior service cost | 7 | 6 | 20 | 19 | ||||
Amortization of actuarial loss | 852 | 662 | 2,556 | 1,982 | ||||
Total defined benefit pension plans | 859 | 668 | 2,576 | 2,001 | ||||
Foreign currency translation | (47,626) | $ 16,326 | $ (4,886) | (5,584) | $ (76,837) | $ 17,295 | (36,186) | (65,126) |
Net current-period other comprehensive income | (52,841) | (4,644) | (38,015) | (63,989) | ||||
Natural Gas Swap [Member] | ||||||||
Before-Tax Amount: | ||||||||
Loss (gain) reclassified to net income | 0 | 14 | ||||||
Gain (loss) activity recognized in other comprehensive loss | 0 | 15 | ||||||
Total swap derivatives | 0 | 29 | ||||||
Tax (Expense) or Benefit: | ||||||||
Loss (gain) reclassified to net income | 0 | (3) | ||||||
Gain (loss) activity recognized in other comprehensive loss | 0 | (4) | ||||||
Total swap derivatives | 0 | (7) | ||||||
Net-of-Tax Amount: | ||||||||
Loss (gain) reclassified to net income | 0 | 11 | ||||||
Gain (loss) activity recognized in other comprehensive loss | 0 | 11 | ||||||
Total swap derivatives | 0 | 0 | 22 | 0 | 22 | |||
Soybean Meal [Member] | ||||||||
Before-Tax Amount: | ||||||||
Loss (gain) reclassified to net income | 0 | (4) | 0 | (4) | ||||
Gain (loss) activity recognized in other comprehensive loss | 0 | 8 | 0 | 8 | ||||
Total swap derivatives | 0 | 4 | 0 | 4 | ||||
Tax (Expense) or Benefit: | ||||||||
Loss (gain) reclassified to net income | 0 | 1 | 0 | 1 | ||||
Gain (loss) activity recognized in other comprehensive loss | 0 | (2) | 0 | (2) | ||||
Total swap derivatives | 0 | (1) | 0 | (1) | ||||
Net-of-Tax Amount: | ||||||||
Loss (gain) reclassified to net income | 0 | (3) | 0 | (3) | ||||
Gain (loss) activity recognized in other comprehensive loss | 0 | 6 | 0 | 6 | ||||
Total swap derivatives | 0 | 3 | 0 | 3 | ||||
Corn Option [Member] | ||||||||
Before-Tax Amount: | ||||||||
Loss (gain) reclassified to net income | 206 | (563) | 169 | (1,554) | ||||
Gain (loss) activity recognized in other comprehensive loss | 542 | 507 | 609 | (65) | ||||
Total swap derivatives | 748 | (56) | 778 | (1,619) | ||||
Tax (Expense) or Benefit: | ||||||||
Loss (gain) reclassified to net income | (54) | 147 | (44) | 404 | ||||
Gain (loss) activity recognized in other comprehensive loss | (141) | (131) | (159) | 17 | ||||
Total swap derivatives | (195) | 16 | (203) | 421 | ||||
Net-of-Tax Amount: | ||||||||
Loss (gain) reclassified to net income | 152 | (416) | 125 | (1,150) | ||||
Gain (loss) activity recognized in other comprehensive loss | 401 | 376 | 450 | (48) | ||||
Total swap derivatives | 553 | 22 | (40) | 447 | (1,605) | 575 | (1,198) | |
Heating Oil Swaps And Options [Member] | ||||||||
Before-Tax Amount: | ||||||||
Gain (loss) activity recognized in other comprehensive loss | (2,268) | 0 | 606 | 0 | ||||
Total swap derivatives | (2,268) | 0 | 606 | 0 | ||||
Tax (Expense) or Benefit: | ||||||||
Gain (loss) activity recognized in other comprehensive loss | 585 | 0 | (156) | 0 | ||||
Total swap derivatives | 585 | 0 | (156) | 0 | ||||
Net-of-Tax Amount: | ||||||||
Gain (loss) activity recognized in other comprehensive loss | (1,683) | 0 | 450 | 0 | ||||
Total swap derivatives | (1,683) | 0 | 450 | 0 | ||||
Foreign Exchange Contract [Member] | ||||||||
Before-Tax Amount: | ||||||||
Loss (gain) reclassified to net income | 1,178 | 0 | 1,465 | 0 | ||||
Gain (loss) activity recognized in other comprehensive loss | (8,405) | 468 | (9,485) | 468 | ||||
Total swap derivatives | (7,227) | 468 | (8,020) | 468 | ||||
Tax (Expense) or Benefit: | ||||||||
Loss (gain) reclassified to net income | (362) | 0 | (473) | 0 | ||||
Gain (loss) activity recognized in other comprehensive loss | 2,645 | (159) | 3,063 | (159) | ||||
Total swap derivatives | 2,283 | (159) | 2,590 | (159) | ||||
Net-of-Tax Amount: | ||||||||
Loss (gain) reclassified to net income | 816 | 0 | 992 | 0 | ||||
Gain (loss) activity recognized in other comprehensive loss | (5,760) | 309 | (6,422) | 309 | ||||
Total swap derivatives | (4,944) | 1,451 | (1,937) | 309 | (5,430) | 309 | ||
Accumulated Other Comprehensive Loss | ||||||||
Before-Tax Amount: | ||||||||
Foreign currency translation | (37,695) | (66,407) | ||||||
Tax (Expense) or Benefit: | ||||||||
Foreign currency translation | 1,509 | 1,281 | ||||||
Net-of-Tax Amount: | ||||||||
Foreign currency translation | (47,630) | 17,797 | (6,645) | (4,146) | (76,787) | 16,778 | $ (36,186) | $ (65,126) |
Accumulated Other Comprehensive Loss | Natural Gas Swap [Member] | ||||||||
Net-of-Tax Amount: | ||||||||
Total swap derivatives | 22 | |||||||
Accumulated Other Comprehensive Loss | Soybean Meal [Member] | ||||||||
Net-of-Tax Amount: | ||||||||
Total swap derivatives | 3 | |||||||
Accumulated Other Comprehensive Loss | Corn Option [Member] | ||||||||
Net-of-Tax Amount: | ||||||||
Total swap derivatives | 553 | 22 | (40) | $ 447 | $ (1,605) | |||
Accumulated Other Comprehensive Loss | Foreign Exchange Contract [Member] | ||||||||
Net-of-Tax Amount: | ||||||||
Total swap derivatives | $ (4,944) | $ 1,451 | $ (1,937) | $ 309 |
Other Comprehensive Income (Rec
Other Comprehensive Income (Reclassification out of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | $ 842,049 | $ 812,576 | $ 2,504,477 | $ 2,534,596 |
Cost of sales and operating expenses | 652,923 | 647,929 | 1,948,552 | 1,978,729 |
Total before tax | 37,687 | (6,540) | 101,421 | 67,792 |
Income taxes | (10,850) | 1,403 | (23,900) | (3,992) |
Amortization of prior service cost | 9 | 9 | 27 | 26 |
Amortization of actuarial loss | 1,146 | 888 | 3,439 | 2,664 |
Net income attributable to Darling | 25,721 | (6,037) | 69,991 | 60,848 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income attributable to Darling | (1,827) | (249) | (3,693) | (859) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | (1,384) | 567 | (1,634) | 1,544 |
Income taxes | 416 | (148) | 517 | (402) |
Net income attributable to Darling | (968) | 419 | (1,117) | 1,142 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments [Member] | Soybean Meal [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | 0 | 4 | 0 | 4 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments [Member] | Foreign Exchange Contract [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | (1,178) | 0 | (1,465) | 0 |
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 | 0 | 0 | 0 | (14) |
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 | (206) | 563 | (169) | 1,554 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign Currency Translation [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | (1,155) | (897) | (3,466) | (2,690) |
Income taxes | 296 | 229 | 890 | 689 |
Amortization of prior service cost | (9) | (9) | (27) | (26) |
Amortization of actuarial loss | (1,146) | (888) | (3,439) | (2,664) |
Net income attributable to Darling | $ (859) | $ (668) | $ (2,576) | $ (2,001) |
Other Comprehensive Income (S_2
Other Comprehensive Income (Schedule of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | $ (1,155) | $ (897) | $ (3,466) | $ (2,690) | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Accumulated Other Comprehensive Income/(loss) December 29, 2018, attributable to Darling, net of tax | $ (304,539) | (304,539) | ||||||
Other comprehensive loss before reclassifications | (41,708) | |||||||
Amounts reclassified from accumulated other comprehensive loss | 3,693 | |||||||
Net current-period other comprehensive income/(loss) | (38,015) | |||||||
Noncontrolling interest | 292 | |||||||
Accumulated Other Comprehensive loss September 28, 2019, attributable to Darling, net of tax | (342,846) | (342,846) | ||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | (296) | (229) | (890) | (689) | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (859) | (668) | (2,576) | (2,001) | ||||
Foreign currency translation | (48,954) | (5,749) | ||||||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | (1,328) | (165) | ||||||
Foreign currency translation | (47,626) | $ 16,326 | (4,886) | (5,584) | $ (76,837) | $ 17,295 | (36,186) | (65,126) |
Other Comprehensive income (loss) | (56,546) | (4,436) | (40,865) | (64,835) | ||||
Other Comprehensive Income (Loss), Tax | (3,705) | 208 | (2,850) | (846) | ||||
Total other comprehensive income/(loss), net of tax | (52,841) | (4,644) | (38,015) | (63,989) | ||||
Accumulated Other Comprehensive Loss | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Foreign currency translation | (37,695) | (66,407) | ||||||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | (1,509) | (1,281) | ||||||
Foreign currency translation | (47,630) | 17,797 | (6,645) | (4,146) | (76,787) | 16,778 | (36,186) | (65,126) |
Foreign Currency Translation [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Accumulated Other Comprehensive Income/(loss) December 29, 2018, attributable to Darling, net of tax | (270,081) | (270,081) | ||||||
Other comprehensive loss before reclassifications | (36,186) | |||||||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||||||
Net current-period other comprehensive income/(loss) | (36,186) | |||||||
Noncontrolling interest | 292 | |||||||
Accumulated Other Comprehensive loss September 28, 2019, attributable to Darling, net of tax | (306,559) | (306,559) | ||||||
Derivative Instruments [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Accumulated Other Comprehensive Income/(loss) December 29, 2018, attributable to Darling, net of tax | 1,081 | 1,081 | ||||||
Other comprehensive loss before reclassifications | (5,522) | |||||||
Amounts reclassified from accumulated other comprehensive loss | 1,117 | |||||||
Net current-period other comprehensive income/(loss) | (4,405) | |||||||
Noncontrolling interest | 0 | |||||||
Accumulated Other Comprehensive loss September 28, 2019, attributable to Darling, net of tax | (3,324) | (3,324) | ||||||
Defined Benefit Pension Plans [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Accumulated Other Comprehensive Income/(loss) December 29, 2018, attributable to Darling, net of tax | (35,539) | (35,539) | ||||||
Other comprehensive loss before reclassifications | 0 | |||||||
Amounts reclassified from accumulated other comprehensive loss | 2,576 | |||||||
Net current-period other comprehensive income/(loss) | 2,576 | |||||||
Noncontrolling interest | 0 | |||||||
Accumulated Other Comprehensive loss September 28, 2019, attributable to Darling, net of tax | (32,963) | (32,963) | ||||||
Natural Gas Swap [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 0 | (14) | ||||||
Loss (gain) reclassified to net income | 0 | (3) | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | (11) | ||||||
Gain (loss) activity recognized in other comprehensive loss | 0 | 15 | ||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 0 | 4 | ||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 0 | 11 | ||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | 0 | 29 | ||||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | 0 | 7 | ||||||
Foreign exchange derivative adjustment, net of tax | 0 | 0 | 22 | 0 | 22 | |||
Natural Gas Swap [Member] | Accumulated Other Comprehensive Loss | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Foreign exchange derivative adjustment, net of tax | 22 | |||||||
Soybean Meal [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 0 | 4 | 0 | 4 | ||||
Loss (gain) reclassified to net income | 0 | 1 | 0 | 1 | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 0 | 3 | 0 | 3 | ||||
Gain (loss) activity recognized in other comprehensive loss | 0 | 8 | 0 | 8 | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 0 | 2 | 0 | 2 | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 0 | 6 | 0 | 6 | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | 0 | 4 | 0 | 4 | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | 0 | 1 | 0 | 1 | ||||
Foreign exchange derivative adjustment, net of tax | 0 | 3 | 0 | 3 | ||||
Soybean Meal [Member] | Accumulated Other Comprehensive Loss | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Foreign exchange derivative adjustment, net of tax | 3 | |||||||
Corn Option [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (206) | 563 | (169) | 1,554 | ||||
Loss (gain) reclassified to net income | (54) | 147 | (44) | 404 | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (152) | 416 | (125) | 1,150 | ||||
Gain (loss) activity recognized in other comprehensive loss | 542 | 507 | 609 | (65) | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 141 | 131 | 159 | (17) | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 401 | 376 | 450 | (48) | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | 748 | (56) | 778 | (1,619) | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | 195 | (16) | 203 | (421) | ||||
Foreign exchange derivative adjustment, net of tax | 553 | 22 | (40) | 447 | (1,605) | 575 | (1,198) | |
Corn Option [Member] | Accumulated Other Comprehensive Loss | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Foreign exchange derivative adjustment, net of tax | 553 | 22 | (40) | $ 447 | $ (1,605) | |||
Heating Oil Swaps And Options [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Gain (loss) activity recognized in other comprehensive loss | (2,268) | 0 | 606 | 0 | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | (585) | 0 | 156 | 0 | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (1,683) | 0 | 450 | 0 | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | (2,268) | 0 | 606 | 0 | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | (585) | 0 | 156 | 0 | ||||
Foreign exchange derivative adjustment, net of tax | (1,683) | 0 | 450 | 0 | ||||
Foreign Exchange Contract [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (1,178) | 0 | (1,465) | 0 | ||||
Loss (gain) reclassified to net income | (362) | 0 | (473) | 0 | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (816) | 0 | (992) | 0 | ||||
Gain (loss) activity recognized in other comprehensive loss | (8,405) | 468 | (9,485) | 468 | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | (2,645) | 159 | (3,063) | 159 | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (5,760) | 309 | (6,422) | 309 | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | (7,227) | 468 | (8,020) | 468 | ||||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | (2,283) | 159 | (2,590) | 159 | ||||
Foreign exchange derivative adjustment, net of tax | (4,944) | 1,451 | (1,937) | 309 | $ (5,430) | $ 309 | ||
Foreign Exchange Contract [Member] | Accumulated Other Comprehensive Loss | ||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||||
Foreign exchange derivative adjustment, net of tax | $ (4,944) | $ 1,451 | $ (1,937) | $ 309 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Thousands | Jan. 25, 2019 | Nov. 06, 2019 | Sep. 28, 2019 | Sep. 28, 2019 | Sep. 29, 2018 |
Class of Stock [Line Items] | |||||
Grants in Period (in shares) | 610,953 | ||||
Grants in period (in shares) | 305,195 | ||||
Annual vesting after initial cliff | 33.33% | 33.33% | |||
Performance period two | 3 years | ||||
Target percentage | 100.00% | 100.00% | |||
Repurchase of common stock | $ 11,700 | $ 11,740 | $ 0 | ||
Remaining authorized repurchase amount | $ 188,300 | $ 188,300 | |||
Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Repurchase of common stock | $ 7,500 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019USD ($)plan | Sep. 29, 2018USD ($) | Sep. 28, 2019USD ($)plan | Sep. 29, 2018USD ($) | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Amount Company expects to contribute to its pension plans | $ 4,200 | $ 4,200 | ||
Payment for pension benefits | $ 2,700 | $ 2,800 | ||
Multiemployer Plans [Abstract] | ||||
Number Of Multiemployer Plans, Withdrawal Obligation Could Be Material | plan | 2 | 2 | ||
Number Of Multiemployer Plans Withdrawal Obligation Could Be Material Certified Red Zone | plan | 1 | 1 | ||
Number of Multiemployer Plans, Certified Red Zone | plan | 5 | 5 | ||
Number of Multiemployer Plans, Certified Yellow Zone | plan | 2 | 2 | ||
Number Of Multiemployer Plans, Withdrawal Obligation | plan | 5 | 5 | ||
Accrued liability representing the present value of scheduled withdrawal liability payments for under-funded multi-employer plan | $ 6,100 | $ 6,100 | ||
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 | 664 | $ 762 | $ 2,025 | 2,340 |
Interest cost | 1,698 | 1,603 | 5,122 | 4,844 |
Expected return on plan assets | (1,816) | (2,053) | (5,452) | (6,176) |
Amortization of prior service cost | 9 | 9 | 27 | 26 |
Amortization of net loss | 1,146 | 888 | 3,439 | 2,664 |
Net pension cost | $ 1,701 | $ 1,209 | $ 5,161 | $ 3,698 |
Derivatives (Forward Contracts
Derivatives (Forward Contracts Not Designated as Hedging Instruments) (Details) - Sep. 28, 2019 - Not Designated as Hedging Instrument [Member] € in Thousands, ¥ in Thousands, ¥ in Thousands, £ in Thousands, zł in Thousands, R$ in Thousands, $ in Thousands, $ in Thousands | USD ($) | CNY (¥) | GBP (£) | PLN (zł) | EUR (€) | AUD ($) | BRL (R$) | JPY (¥) |
BRI/EUR 1 [Member] | Short [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | R$ | R$ 29897 | |||||||
BRI/EUR 1 [Member] | Long [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | € 6,609 | |||||||
BRI/USD [Member] | Short [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | R$ | R$ 1105749 | |||||||
BRI/USD [Member] | Long [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | $ | $ 309,020 | |||||||
EUR/USD [Member] | Short [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | 38,598 | 65,145 | ||||||
EUR/USD [Member] | Long [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | 72,542 | 35,000 | ||||||
EUR/PLN [Member] | Short [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | 24,654 | |||||||
EUR/PLN [Member] | Long [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | zł | zł 108,000 | |||||||
EUR/JPN [Member] | Short [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | 5,019 | |||||||
EUR/JPN [Member] | Long [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | ¥ | ¥ 601,153 | |||||||
EUR/CNY [Member] | Short [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | 15,147 | |||||||
EUR/CNY [Member] | Long [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | ¥ | ¥ 119,722 | |||||||
EUR/AUD [Member] | Short [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | 13,471 | |||||||
EUR/AUD [Member] | Long [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | $ | $ 21,850 | |||||||
EUR/GBP [Member] | Short [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | £ 288 | 5,677 | ||||||
EUR/GBP [Member] | Long [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | 5,138 | 326 | ||||||
GBP/USD [Member] | Short [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | £ | £ 43 | |||||||
GBP/USD [Member] | Long [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | $ | 54 | |||||||
PLN/EUR [Member] | Short [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | zł | zł 21,214 | |||||||
PLN/EUR [Member] | Long [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | € 4,829 | |||||||
JPN/USD [Member] | Short [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | 634 | 229,604 | ||||||
JPN/USD [Member] | Long [Member] | ||||||||
Derivative [Line Items] | ||||||||
Derivative notional amount | $ 2,130 | ¥ 68,000 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 29, 2018 | |
Derivative [Line Items] | |||||||||
Net income/(loss) | $ 26,837,000 | $ 31,044,000 | $ 19,640,000 | $ (5,137,000) | $ (29,138,000) | $ 98,075,000 | $ 77,521,000 | $ 63,800,000 | |
Commodity Contract [Member] | |||||||||
Derivative [Line Items] | |||||||||
Forward purchase amount | 39,300,000 | 39,300,000 | |||||||
Cash Flow Hedging [Member] | |||||||||
Derivative [Line Items] | |||||||||
Cash flow hedge gain (loss) to be reclassified within 12 months | 700,000 | ||||||||
Net income/(loss) | 0 | ||||||||
Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Foreign Exchange Contract [Member] | |||||||||
Derivative [Line Items] | |||||||||
Asset Derivatives Fair Value | (900,000) | (900,000) | $ 1,600,000 | ||||||
Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Corn Option [Member] | |||||||||
Derivative [Line Items] | |||||||||
Asset Derivatives Fair Value | $ 800,000 | $ 800,000 |
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 | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Derivative [Line Items] | ||||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | $ 1,059 | $ 1,633 | $ 2,961 | $ 2,949 |
Foreign Exchange Contract [Member] | Foreign Currency Gain (Loss) [Member] | ||||
Derivative [Line Items] | ||||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | 95 | (1,389) | 1,632 | (3,216) |
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 | 1,915 | 359 | 2,437 | 3,354 |
Foreign Exchange Contract [Member] | Sales [Member] | ||||
Derivative [Line Items] | ||||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | 1,244 | 3,652 | 1,306 | 3,652 |
Foreign Exchange Contract [Member] | Cost of Sales [Member] | ||||
Derivative [Line Items] | ||||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | (567) | (880) | (661) | (880) |
Corn options and futures [Member] | Sales [Member] | ||||
Derivative [Line Items] | ||||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | 881 | 294 | 619 | 748 |
Corn options and futures [Member] | Cost of Sales [Member] | ||||
Derivative [Line Items] | ||||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | (2,509) | (403) | (1,866) | (709) |
Heating Oil Swaps And Options [Member] | Cost of Sales [Member] | ||||
Derivative [Line Items] | ||||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | $ 0 | $ 0 | $ (506) | $ 0 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments | $ 4,844 | $ 4,307 |
Total Assets | 4,844 | 4,307 |
Derivative instruments | 4,172 | 3,235 |
Total Liabilities | 1,660,123 | 1,675,425 |
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 | 4,844 | 4,307 |
Total Assets | 4,844 | 4,307 |
Derivative instruments | 4,172 | 3,235 |
Total Liabilities | 1,660,123 | 1,675,425 |
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 | 13,935 | 67,739 |
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 | 13,935 | 67,739 |
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 | 496,238 | 492,525 |
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 | 496,238 | 492,525 |
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 | 23,640 | 31,623 |
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 | 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 | 23,640 | 31,623 |
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 | 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 | 525,000 | 495,000 |
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 | 525,000 | 495,000 |
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 3.625% Due 2026 [Member] | Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 597,138 | 585,303 |
Senior Notes 3.625% Due 2026 [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 3.625% Due 2026 [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 | 597,138 | 585,303 |
Senior Notes 3.625% Due 2026 [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 | Jun. 30, 2018Party | Mar. 31, 2016Partymi | Sep. 28, 2019USD ($)contaminant | Dec. 29, 2018USD ($) |
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 | 100 | ||
Number of contaminants | contaminant | 8 | |||
Insurance Environmental and Litigation Matters [Member] | ||||
Loss Contingencies [Line Items] | ||||
Reserves for insurance, environmental and litigation contingencies | $ 66.8 | $ 66.6 | ||
Insurance Settlements Receivable, Noncurrent | 26.1 | $ 26.1 | ||
Settled Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency, Number of Parties | Party | 20 | |||
Pending Litigation [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency, Estimate of Possible Loss | $ 165 | |||
Loss Contingency, Number of Parties | Party | 40 |
Business Segments (Narrative) (
Business Segments (Narrative) (Details) | Sep. 28, 2019segment |
Segment Reporting [Abstract] | |
Number of Business Segments | 3 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 29, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | $ 842,049 | $ 812,576 | $ 2,504,477 | $ 2,534,596 | |
Cost of sales and operating expenses | 652,923 | 647,929 | 1,948,552 | 1,978,729 | |
Gain (Loss) on Disposition of Assets | 2,669 | (172) | 20,845 | (472) | |
Selling, general and administrative expenses | 83,549 | 67,447 | 249,569 | 232,907 | |
Depreciation and amortization | 80,407 | 78,842 | 239,057 | 235,915 | |
Equity in net income/(loss) of Diamond Green Diesel | 32,020 | (2,630) | 94,390 | 109,655 | |
Operating income | 59,859 | 15,556 | 182,534 | 181,263 | |
Equity in net loss of other unconsolidated subsidiaries | (665) | (162) | (1,087) | (57) | |
Total other expense | (21,507) | (21,934) | (80,026) | (113,414) | |
Income/(loss) before income taxes | 37,687 | (6,540) | 101,421 | 67,792 | |
Segment Assets | 4,944,899 | 4,944,899 | $ 4,889,354 | ||
Restructuring and impairment charges | 0 | 0 | 0 | 14,965 | |
Feed Ingredients | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | 496,978 | 482,744 | 1,480,244 | 1,467,365 | |
Cost of sales and operating expenses | 379,792 | 383,739 | 1,143,606 | 1,123,196 | |
Gross Margin | 117,186 | 99,005 | 336,638 | 344,169 | |
Gain (Loss) on Disposition of Assets | (2,429) | 107 | (7,343) | 526 | |
Selling, general and administrative expenses | 47,319 | 39,702 | 142,615 | 131,914 | |
Depreciation and amortization | 50,182 | 47,321 | 148,271 | 140,933 | |
Equity in net income/(loss) of Diamond Green Diesel | 0 | 0 | 0 | 0 | |
Operating income | 22,114 | 11,875 | 53,095 | 70,796 | |
Equity in net loss of other unconsolidated subsidiaries | (665) | (162) | (1,087) | (57) | |
Segment income/(loss) | 21,449 | 11,713 | 52,008 | 70,739 | |
Segment Assets | 2,592,298 | 2,592,298 | 2,566,106 | ||
Restructuring and impairment charges | 0 | ||||
Food Ingredients | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | 276,467 | 265,208 | 830,466 | 847,457 | |
Cost of sales and operating expenses | 214,643 | 210,730 | 643,091 | 684,962 | |
Gross Margin | 61,824 | 54,478 | 187,375 | 162,495 | |
Gain (Loss) on Disposition of Assets | (253) | (33) | (13,518) | (244) | |
Selling, general and administrative expenses | 22,811 | 21,843 | 68,129 | 67,894 | |
Depreciation and amortization | 19,743 | 19,697 | 59,115 | 60,725 | |
Equity in net income/(loss) of Diamond Green Diesel | 0 | 0 | 0 | 0 | |
Operating income | 19,523 | 12,971 | 73,649 | 19,155 | |
Equity in net loss of other unconsolidated subsidiaries | 0 | 0 | 0 | 0 | |
Segment income/(loss) | 19,523 | 12,971 | 73,649 | 19,155 | |
Segment Assets | 1,307,422 | 1,307,422 | 1,401,291 | ||
Restructuring and impairment charges | 14,965 | ||||
Fuel Ingredients | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | 68,604 | 64,624 | 193,767 | 219,774 | |
Cost of sales and operating expenses | 58,488 | 53,460 | 161,855 | 170,571 | |
Gross Margin | 10,116 | 11,164 | 31,912 | 49,203 | |
Gain (Loss) on Disposition of Assets | 13 | 98 | 16 | 190 | |
Selling, general and administrative expenses | 912 | (2,822) | 583 | (4,056) | |
Depreciation and amortization | 7,895 | 9,370 | 24,055 | 26,378 | |
Equity in net income/(loss) of Diamond Green Diesel | 32,020 | (2,630) | 94,390 | 109,655 | |
Operating income | 33,316 | 1,888 | 101,648 | 136,346 | |
Equity in net loss of other unconsolidated subsidiaries | 0 | 0 | 0 | 0 | |
Segment income/(loss) | 33,316 | 1,888 | 101,648 | 136,346 | |
Segment Assets | 789,692 | 789,692 | 761,817 | ||
Restructuring and impairment charges | 0 | ||||
Corporate | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Cost of sales and operating expenses | 0 | 0 | 0 | 0 | |
Gross Margin | 0 | 0 | 0 | 0 | |
Gain (Loss) on Disposition of Assets | 0 | 0 | 0 | 0 | |
Selling, general and administrative expenses | 12,507 | 8,724 | 38,242 | 37,155 | |
Depreciation and amortization | 2,587 | 2,454 | 7,616 | 7,879 | |
Equity in net income/(loss) of Diamond Green Diesel | 0 | 0 | 0 | 0 | |
Operating income | (15,094) | (11,178) | (45,858) | (45,034) | |
Equity in net loss of other unconsolidated subsidiaries | 0 | 0 | 0 | 0 | |
Segment income/(loss) | (15,094) | (11,178) | (45,858) | (45,034) | |
Segment Assets | 255,487 | 255,487 | 160,140 | ||
Restructuring and impairment charges | 0 | ||||
Total | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Restructuring and impairment charges | 14,965 | ||||
Total | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | 842,049 | 812,576 | 2,504,477 | 2,534,596 | |
Cost of sales and operating expenses | 652,923 | 647,929 | 1,948,552 | 1,978,729 | |
Gross Margin | 189,126 | 164,647 | 555,925 | 555,867 | |
Gain (Loss) on Disposition of Assets | (2,669) | 172 | (20,845) | 472 | |
Selling, general and administrative expenses | 83,549 | 67,447 | 249,569 | 232,907 | |
Depreciation and amortization | 80,407 | 78,842 | 239,057 | 235,915 | |
Equity in net income/(loss) of Diamond Green Diesel | 32,020 | (2,630) | 94,390 | 109,655 | |
Operating income | 59,859 | 15,556 | 182,534 | 181,263 | |
Equity in net loss of other unconsolidated subsidiaries | (665) | (162) | (1,087) | (57) | |
Segment income/(loss) | 59,194 | $ 15,394 | 181,447 | $ 181,206 | |
Segment Assets | $ 4,944,899 | $ 4,944,899 | $ 4,889,354 |
Revenue (Details)
Revenue (Details) | Sep. 28, 2019source |
Revenue from Contract with Customer [Abstract] | |
Number of revenue sources | 2 |
Revenue Disaggregation of Reven
Revenue Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | $ 842,049 | $ 812,576 | $ 2,504,477 | $ 2,534,596 |
Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 496,978 | 482,744 | 1,480,244 | 1,467,365 |
Food Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 276,467 | 265,208 | 830,466 | 847,457 |
Fuel Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 68,604 | 64,624 | 193,767 | 219,774 |
North America | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 476,225 | 442,242 | 1,406,880 | 1,363,337 |
North America | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 411,566 | 388,088 | 1,223,253 | 1,186,866 |
North America | Food Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 53,483 | 45,538 | 157,097 | 135,803 |
North America | Fuel Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 11,176 | 8,616 | 26,530 | 40,668 |
Europe | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 284,601 | 284,261 | 852,724 | 920,734 |
Europe | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 76,526 | 81,381 | 235,381 | 251,495 |
Europe | Food Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 150,647 | 146,872 | 450,106 | 490,133 |
Europe | Fuel Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 57,428 | 56,008 | 167,237 | 179,106 |
China | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 49,860 | 54,384 | 147,686 | 155,857 |
China | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 6,413 | 11,199 | 14,318 | 23,279 |
China | Food Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 43,447 | 43,185 | 133,368 | 132,578 |
China | Fuel Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
South America | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 13,154 | 11,579 | 37,944 | 35,839 |
South America | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
South America | Food Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 13,154 | 11,579 | 37,944 | 35,839 |
South America | Fuel Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 18,209 | 20,110 | 59,243 | 58,829 |
Other | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 2,473 | 2,076 | 7,292 | 5,725 |
Other | Food Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 15,736 | 18,034 | 51,951 | 53,104 |
Other | Fuel Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Fats | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 183,204 | 181,625 | 537,545 | 545,954 |
Fats | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 150,018 | 142,453 | 438,436 | 423,148 |
Fats | Food Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 33,186 | 39,172 | 99,109 | 122,806 |
Fats | Fuel Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Used cooking oil | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 45,793 | 38,863 | 136,498 | 123,555 |
Used cooking oil | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 45,793 | 38,863 | 136,498 | 123,555 |
Used cooking oil | Food Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Used cooking oil | Fuel Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Proteins | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 196,912 | 216,316 | 603,110 | 641,178 |
Proteins | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 196,912 | 216,316 | 603,110 | 641,178 |
Proteins | Food Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Proteins | Fuel Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Bakery | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 51,570 | 44,638 | 141,641 | 135,871 |
Bakery | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 51,570 | 44,638 | 141,641 | 135,871 |
Bakery | Food Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Bakery | Fuel Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other rendering | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 40,444 | 27,519 | 122,581 | 87,860 |
Other rendering | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 40,444 | 27,519 | 122,581 | 87,860 |
Other rendering | Food Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other rendering | Fuel Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Food ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 221,091 | 206,504 | 666,235 | 657,793 |
Food ingredients | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Food ingredients | Food Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 221,091 | 206,504 | 666,235 | 657,793 |
Food ingredients | Fuel Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Bioenergy | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 57,428 | 56,008 | 167,237 | 179,106 |
Bioenergy | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Bioenergy | Food Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Bioenergy | Fuel Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 57,428 | 56,008 | 167,237 | 179,106 |
Biofuels | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 11,176 | 8,616 | 26,530 | 40,668 |
Biofuels | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Biofuels | Food Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Biofuels | Fuel Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 11,176 | 8,616 | 26,530 | 40,668 |
Other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 34,431 | 32,487 | 103,100 | 122,611 |
Other | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 12,241 | 12,955 | 37,978 | 55,753 |
Other | Food Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 22,190 | 19,532 | 65,122 | 66,858 |
Other | Fuel Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue Revenue from Long-term
Revenue Revenue from Long-term Performance Obligations, Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 28, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized | $ 24.2 |
Revenue Revenue from Long-ter_2
Revenue Revenue from Long-term Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-06-30 $ in Millions | Sep. 28, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 5 years |
Remaining performance obligation | $ 297.6 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Mar. 30, 2019 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | May 01, 2019 | Dec. 29, 2018 |
Related Party Transaction [Line Items] | |||||||
Payments on long-term debt | $ (566,107,000) | $ (661,268,000) | |||||
Diamond Green Diesel Holdings LLC Joint Venture [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Revenue from Related Parties | $ 47,300,000 | $ 23,900,000 | 149,500,000 | $ 90,800,000 | |||
Accounts Receivable, Related Parties, Current | 8,600,000 | 8,600,000 | $ 8,000,000 | ||||
Related Party Sales Eliminated | 6,800,000 | ||||||
Deferred Revenue, Additions | 1,000,000 | ||||||
Revolving Loan Agreement [Member] | Revolving Credit Facility [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Revolving Loan Agreement, Maximum Borrowing Capacity | $ 50,000,000 | ||||||
Revolving Loan Agreement, Fair Value of Amount Outstanding | $ 0 | $ 0 | |||||
Revolving Loan Agreement [Member] | Lender One [Member] | Revolving Credit Facility [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Revolving Loan Agreement, Maximum Borrowing Capacity | $ 25,000,000 | ||||||
LIBO Rate [Member] | Revolving Loan Agreement [Member] | Revolving Credit Facility [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Basis spread on variable rate | 2.50% |
Guarantor Financial Informati_3
Guarantor Financial Information (Narrative) (Details) - Senior Notes [Member] | Sep. 28, 2019 | Apr. 03, 2019 | May 02, 2018 |
Senior Notes 5.25% Due 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 5.25% | 5.25% | |
Senior Notes 3.625% Due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.625% | 3.625% |
Guarantor Financial Informati_4
Guarantor Financial Information (Condensed Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 30, 2018 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 |
ASSETS | |||||||||
Cash and cash equivalents | $ 69,122 | $ 107,262 | |||||||
Restricted cash | 159 | 107 | |||||||
Accounts receivable, net | 355,006 | 385,737 | |||||||
Inventories | 353,003 | 341,028 | |||||||
Income taxes refundable | 4,952 | 6,462 | |||||||
Prepaid expenses | 46,378 | 35,247 | |||||||
Other current assets | 25,061 | 22,099 | |||||||
Total current assets | 853,681 | 897,942 | |||||||
Investment in subsidiaries | 0 | 0 | |||||||
Property, plant and equipment, net | 1,714,768 | 1,687,858 | |||||||
Intangible assets, net | 537,360 | 595,862 | |||||||
Goodwill | 1,212,313 | 1,229,159 | |||||||
Investment in unconsolidated subsidiaries | 447,689 | 410,177 | |||||||
Operating right-of-use assets, net | 119,063 | $ 135,700 | 0 | ||||||
Other assets | 46,179 | 53,375 | |||||||
Deferred income taxes | 13,846 | 14,981 | |||||||
Total assets | 4,944,899 | 4,889,354 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Current portion of long-term debt | 61,092 | 7,492 | |||||||
Accounts payable | 192,010 | 219,479 | |||||||
Income taxes payable | 10,404 | 4,043 | |||||||
Operating lease liability, current | 35,223 | 0 | |||||||
Accrued expenses | 297,164 | 309,484 | |||||||
Total current liabilities | 595,893 | 540,498 | |||||||
Long-term debt, net of current portion | 1,559,809 | 1,666,940 | |||||||
Operating lease liability, non-current | 83,754 | 0 | |||||||
Other non-current liabilities | 113,222 | 115,032 | |||||||
Deferred income taxes | 219,329 | 231,063 | |||||||
Total liabilities | 2,572,007 | 2,553,533 | |||||||
Total stockholders’ equity | 2,372,892 | $ 2,406,635 | $ 2,356,699 | 2,335,821 | $ 2,315,303 | $ 2,338,031 | $ 2,439,239 | $ 2,327,697 | |
Total liabilities and stockholders' equity | 4,944,899 | 4,889,354 | |||||||
Parent [Member] | |||||||||
ASSETS | |||||||||
Cash and cash equivalents | 542 | 995 | |||||||
Restricted cash | 103 | 103 | |||||||
Accounts receivable, net | 42,305 | 56,113 | |||||||
Inventories | 26,939 | 23,752 | |||||||
Income taxes refundable | 1,544 | 2,851 | |||||||
Prepaid expenses | 18,671 | 12,890 | |||||||
Other current assets | 6,034 | 2,680 | |||||||
Total current assets | 96,138 | 99,384 | |||||||
Investment in subsidiaries | 5,056,589 | 4,880,193 | |||||||
Property, plant and equipment, net | 426,046 | 375,824 | |||||||
Intangible assets, net | 45,820 | 50,132 | |||||||
Goodwill | 49,902 | 49,506 | |||||||
Investment in unconsolidated subsidiaries | 12,878 | 13,969 | |||||||
Operating right-of-use assets, net | 71,528 | ||||||||
Other assets | 36,165 | 39,395 | |||||||
Deferred income taxes | 0 | 0 | |||||||
Total assets | 5,795,066 | 5,508,403 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Current portion of long-term debt | 24,509 | 3,558 | |||||||
Accounts payable | 889,921 | 783,406 | |||||||
Income taxes payable | (862) | (10) | |||||||
Operating lease liability, current | 19,220 | ||||||||
Accrued expenses | 103,571 | 107,572 | |||||||
Total current liabilities | 1,036,359 | 894,526 | |||||||
Long-term debt, net of current portion | 1,027,553 | 1,019,130 | |||||||
Operating lease liability, non-current | 53,459 | ||||||||
Other non-current liabilities | 79,126 | 78,589 | |||||||
Deferred income taxes | 99,986 | 95,710 | |||||||
Total liabilities | 2,296,483 | 2,087,955 | |||||||
Total stockholders’ equity | 3,498,583 | 3,420,448 | |||||||
Total liabilities and stockholders' equity | 5,795,066 | 5,508,403 | |||||||
Guarantors [Member] | |||||||||
ASSETS | |||||||||
Cash and cash equivalents | 26 | 32 | |||||||
Restricted cash | 0 | 0 | |||||||
Accounts receivable, net | 682,090 | 619,628 | |||||||
Inventories | 94,192 | 83,261 | |||||||
Income taxes refundable | 0 | 0 | |||||||
Prepaid expenses | 2,042 | 2,936 | |||||||
Other current assets | (2,057) | (1,418) | |||||||
Total current assets | 776,293 | 704,439 | |||||||
Investment in subsidiaries | 1,366,517 | 1,366,126 | |||||||
Property, plant and equipment, net | 510,433 | 503,130 | |||||||
Intangible assets, net | 178,145 | 200,936 | |||||||
Goodwill | 490,748 | 490,748 | |||||||
Investment in unconsolidated subsidiaries | 0 | 0 | |||||||
Operating right-of-use assets, net | 30,954 | ||||||||
Other assets | 145 | 138 | |||||||
Deferred income taxes | 0 | 0 | |||||||
Total assets | 3,353,235 | 3,265,517 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Current portion of long-term debt | 5 | 5 | |||||||
Accounts payable | 35,446 | 24,388 | |||||||
Income taxes payable | 0 | 0 | |||||||
Operating lease liability, current | 10,225 | ||||||||
Accrued expenses | 28,667 | 33,387 | |||||||
Total current liabilities | 74,343 | 57,780 | |||||||
Long-term debt, net of current portion | 13 | 18 | |||||||
Operating lease liability, non-current | 20,262 | ||||||||
Other non-current liabilities | 0 | 0 | |||||||
Deferred income taxes | 0 | 0 | |||||||
Total liabilities | 94,618 | 57,798 | |||||||
Total stockholders’ equity | 3,258,617 | 3,207,719 | |||||||
Total liabilities and stockholders' equity | 3,353,235 | 3,265,517 | |||||||
Non-guarantors [Member] | |||||||||
ASSETS | |||||||||
Cash and cash equivalents | 68,554 | 106,235 | |||||||
Restricted cash | 56 | 4 | |||||||
Accounts receivable, net | 500,072 | 461,005 | |||||||
Inventories | 231,872 | 234,015 | |||||||
Income taxes refundable | 3,408 | 3,611 | |||||||
Prepaid expenses | 25,665 | 19,421 | |||||||
Other current assets | 37,856 | 20,837 | |||||||
Total current assets | 867,483 | 845,128 | |||||||
Investment in subsidiaries | 844,043 | 844,044 | |||||||
Property, plant and equipment, net | 778,289 | 808,904 | |||||||
Intangible assets, net | 313,395 | 344,794 | |||||||
Goodwill | 671,663 | 688,905 | |||||||
Investment in unconsolidated subsidiaries | 434,811 | 396,208 | |||||||
Operating right-of-use assets, net | 16,581 | ||||||||
Other assets | 48,143 | 13,842 | |||||||
Deferred income taxes | 13,846 | 14,981 | |||||||
Total assets | 3,988,254 | 3,956,806 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Current portion of long-term debt | 53,350 | 3,929 | |||||||
Accounts payable | 136,093 | 162,678 | |||||||
Income taxes payable | 11,266 | 4,053 | |||||||
Operating lease liability, current | 5,778 | ||||||||
Accrued expenses | 164,936 | 168,541 | |||||||
Total current liabilities | 371,423 | 339,201 | |||||||
Long-term debt, net of current portion | 570,517 | 647,792 | |||||||
Operating lease liability, non-current | 10,033 | ||||||||
Other non-current liabilities | 34,096 | 36,443 | |||||||
Deferred income taxes | 119,343 | 135,353 | |||||||
Total liabilities | 1,105,412 | 1,158,789 | |||||||
Total stockholders’ equity | 2,882,842 | 2,798,017 | |||||||
Total liabilities and stockholders' equity | 3,988,254 | 3,956,806 | |||||||
Eliminations [Member] | |||||||||
ASSETS | |||||||||
Operating right-of-use assets, net | 0 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Operating lease liability, current | 0 | ||||||||
Operating lease liability, non-current | 0 | ||||||||
Eliminations [Member] | |||||||||
ASSETS | |||||||||
Cash and cash equivalents | 0 | 0 | |||||||
Restricted cash | 0 | 0 | |||||||
Accounts receivable, net | (869,461) | (751,009) | |||||||
Inventories | 0 | 0 | |||||||
Income taxes refundable | 0 | 0 | |||||||
Prepaid expenses | 0 | 0 | |||||||
Other current assets | (16,772) | 0 | |||||||
Total current assets | (886,233) | (751,009) | |||||||
Investment in subsidiaries | (7,267,149) | (7,090,363) | |||||||
Property, plant and equipment, net | 0 | 0 | |||||||
Intangible assets, net | 0 | 0 | |||||||
Goodwill | 0 | 0 | |||||||
Investment in unconsolidated subsidiaries | 0 | 0 | |||||||
Other assets | (38,274) | 0 | |||||||
Deferred income taxes | 0 | 0 | |||||||
Total assets | (8,191,656) | (7,841,372) | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||
Current portion of long-term debt | (16,772) | 0 | |||||||
Accounts payable | (869,450) | (750,993) | |||||||
Income taxes payable | 0 | 0 | |||||||
Accrued expenses | (10) | (16) | |||||||
Total current liabilities | (886,232) | (751,009) | |||||||
Long-term debt, net of current portion | (38,274) | 0 | |||||||
Other non-current liabilities | 0 | 0 | |||||||
Deferred income taxes | 0 | 0 | |||||||
Total liabilities | (924,506) | (751,009) | |||||||
Total stockholders’ equity | (7,267,150) | (7,090,363) | |||||||
Total liabilities and stockholders' equity | $ (8,191,656) | $ (7,841,372) |
Guarantor Financial Informati_5
Guarantor Financial Information (Condensed Consolidated Statements of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Net sales | $ 842,049 | $ 812,576 | $ 2,504,477 | $ 2,534,596 |
Costs and expenses: | ||||
Cost of sales and operating expenses | 652,923 | 647,929 | 1,948,552 | 1,978,729 |
Loss (gain) on disposal of property, plant, equipment and other assets | (2,669) | 172 | (20,845) | 472 |
Selling, general and administrative expenses | 83,549 | 67,447 | 249,569 | 232,907 |
Restructuring and impairment charges | 0 | 0 | 0 | 14,965 |
Depreciation and amortization | 80,407 | 78,842 | 239,057 | 235,915 |
Total costs and expenses | 814,210 | 794,390 | 2,416,333 | 2,462,988 |
Equity in net income/(loss) of Diamond Green Diesel | 32,020 | (2,630) | 94,390 | 109,655 |
Operating income | 59,859 | 15,556 | 182,534 | 181,263 |
Interest expense | (19,359) | (20,080) | (60,088) | (66,220) |
Debt extinguishment costs | 0 | 0 | (12,126) | (23,509) |
Foreign currency gain/(loss) | 466 | (2,106) | (654) | (7,082) |
Gain/(loss) on disposal of subsidiaries | 0 | 3,038 | 0 | (12,500) |
Other expense, net | (2,614) | (2,786) | (7,158) | (4,103) |
Equity in net loss of other unconsolidated subsidiaries | (665) | (162) | (1,087) | (57) |
Earnings in investments in subsidiaries | 0 | 0 | 0 | 0 |
Income/(loss) before taxes | 37,687 | (6,540) | 101,421 | 67,792 |
Income tax expense/(benefit) | 10,850 | (1,403) | 23,900 | 3,992 |
Net income attributable to noncontrolling interests | (1,116) | (900) | (7,530) | (2,952) |
Net income/(loss) attributable to Darling | 25,721 | (6,037) | 69,991 | 60,848 |
Parent [Member] | ||||
Net sales | 164,488 | 136,460 | 481,645 | 391,281 |
Costs and expenses: | ||||
Cost of sales and operating expenses | 130,498 | 108,008 | 384,408 | 306,298 |
Loss (gain) on disposal of property, plant, equipment and other assets | (86) | (29) | (44) | (230) |
Selling, general and administrative expenses | 41,225 | 34,967 | 129,218 | 115,138 |
Restructuring and impairment charges | 0 | 0 | ||
Depreciation and amortization | 15,071 | 12,036 | 43,668 | 34,672 |
Total costs and expenses | 186,708 | 154,982 | 557,250 | 455,878 |
Equity in net income/(loss) of Diamond Green Diesel | 0 | 0 | 0 | 0 |
Operating income | (22,220) | (18,522) | (75,605) | (64,597) |
Interest expense | (13,862) | (13,823) | (42,967) | (42,380) |
Debt extinguishment costs | 0 | (12,126) | (15,635) | |
Foreign currency gain/(loss) | (30) | (4) | (31) | (441) |
Gain/(loss) on disposal of subsidiaries | 0 | (15,538) | ||
Other expense, net | (2,026) | (1,791) | (4,878) | (15,405) |
Equity in net loss of other unconsolidated subsidiaries | (1,172) | (732) | (3,090) | (1,807) |
Earnings in investments in subsidiaries | 52,697 | 28,438 | 176,004 | 207,477 |
Income/(loss) before taxes | 13,387 | (6,434) | 37,307 | 51,674 |
Income tax expense/(benefit) | (12,334) | (397) | (32,684) | (9,174) |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income/(loss) attributable to Darling | 25,721 | (6,037) | 69,991 | 60,848 |
Guarantors [Member] | ||||
Net sales | 330,655 | 328,148 | 986,390 | 1,021,248 |
Costs and expenses: | ||||
Cost of sales and operating expenses | 273,238 | 274,159 | 813,491 | 821,220 |
Loss (gain) on disposal of property, plant, equipment and other assets | (2,343) | (12) | (7,331) | (227) |
Selling, general and administrative expenses | 12,319 | 7,457 | 35,042 | 32,719 |
Restructuring and impairment charges | 0 | 0 | ||
Depreciation and amortization | 25,317 | 25,322 | 76,594 | 77,555 |
Total costs and expenses | 308,531 | 306,926 | 917,796 | 931,267 |
Equity in net income/(loss) of Diamond Green Diesel | 0 | 0 | 0 | 0 |
Operating income | 22,124 | 21,222 | 68,594 | 89,981 |
Interest expense | (52) | 190 | (108) | 7,193 |
Debt extinguishment costs | 0 | 0 | 0 | |
Foreign currency gain/(loss) | (4) | (2) | (3) | (96) |
Gain/(loss) on disposal of subsidiaries | 0 | 0 | ||
Other expense, net | (431) | (656) | (2,407) | (172) |
Equity in net loss of other unconsolidated subsidiaries | 0 | 0 | 0 | 0 |
Earnings in investments in subsidiaries | 0 | 0 | 0 | 0 |
Income/(loss) before taxes | 21,637 | 20,754 | 66,076 | 96,906 |
Income tax expense/(benefit) | 6,472 | 179 | 15,571 | 5,706 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income/(loss) attributable to Darling | 15,165 | 20,575 | 50,505 | 91,200 |
Non-guarantors [Member] | ||||
Net sales | 403,749 | 410,936 | 1,206,999 | 1,302,210 |
Costs and expenses: | ||||
Cost of sales and operating expenses | 306,030 | 328,730 | 921,210 | 1,031,354 |
Loss (gain) on disposal of property, plant, equipment and other assets | (240) | 213 | (13,470) | 929 |
Selling, general and administrative expenses | 30,005 | 25,023 | 85,309 | 85,050 |
Restructuring and impairment charges | 0 | 14,965 | ||
Depreciation and amortization | 40,019 | 41,484 | 118,795 | 123,688 |
Total costs and expenses | 375,814 | 395,450 | 1,111,844 | 1,255,986 |
Equity in net income/(loss) of Diamond Green Diesel | 32,020 | (2,630) | 94,390 | 109,655 |
Operating income | 59,955 | 12,856 | 189,545 | 155,879 |
Interest expense | (5,445) | (6,447) | (17,013) | (31,033) |
Debt extinguishment costs | 0 | 0 | (7,874) | |
Foreign currency gain/(loss) | 500 | (2,100) | (620) | (6,545) |
Gain/(loss) on disposal of subsidiaries | 3,038 | 3,038 | ||
Other expense, net | (157) | (339) | 127 | 11,474 |
Equity in net loss of other unconsolidated subsidiaries | 507 | 570 | 2,003 | 1,750 |
Earnings in investments in subsidiaries | 0 | 0 | 0 | 0 |
Income/(loss) before taxes | 55,360 | 7,578 | 174,042 | 126,689 |
Income tax expense/(benefit) | 16,712 | (1,185) | 41,013 | 7,460 |
Net income attributable to noncontrolling interests | (1,116) | (900) | (7,530) | (2,952) |
Net income/(loss) attributable to Darling | 37,532 | 7,863 | 125,499 | 116,277 |
Eliminations [Member] | ||||
Costs and expenses: | ||||
Equity in net income/(loss) of Diamond Green Diesel | 0 | 0 | 0 | 0 |
Debt extinguishment costs | 0 | 0 | 0 | |
Eliminations [Member] | ||||
Net sales | (56,843) | (62,968) | (170,557) | (180,143) |
Costs and expenses: | ||||
Cost of sales and operating expenses | (56,843) | (62,968) | (170,557) | (180,143) |
Loss (gain) on disposal of property, plant, equipment and other assets | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Restructuring and impairment charges | 0 | 0 | ||
Depreciation and amortization | 0 | 0 | 0 | 0 |
Total costs and expenses | (56,843) | (62,968) | (170,557) | (180,143) |
Operating income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Foreign currency gain/(loss) | 0 | 0 | 0 | 0 |
Gain/(loss) on disposal of subsidiaries | 0 | 0 | ||
Other expense, net | 0 | 0 | 0 | 0 |
Equity in net loss of other unconsolidated subsidiaries | 0 | 0 | 0 | 0 |
Earnings in investments in subsidiaries | (52,697) | (28,438) | (176,004) | (207,477) |
Income/(loss) before taxes | (52,697) | (28,438) | (176,004) | (207,477) |
Income tax expense/(benefit) | 0 | 0 | 0 | 0 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income/(loss) attributable to Darling | $ (52,697) | $ (28,438) | $ (176,004) | $ (207,477) |
Guarantor Financial Informati_6
Guarantor Financial Information (Condensed Consolidated Statements of Comprehensive Income) (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Net income/(loss) | $ 26,837 | $ 31,044 | $ 19,640 | $ (5,137) | $ (29,138) | $ 98,075 | $ 77,521 | $ 63,800 |
Other comprehensive income, net of tax: | ||||||||
Foreign currency translation | (47,626) | 16,326 | (4,886) | (5,584) | (76,837) | 17,295 | (36,186) | (65,126) |
Pension adjustments | 859 | 668 | 2,576 | 2,001 | ||||
Total other comprehensive income/(loss), net of tax | (52,841) | (4,644) | (38,015) | (63,989) | ||||
Total comprehensive income/(loss) | (26,004) | (9,781) | 39,506 | (189) | ||||
Comprehensive income attributable to noncontrolling interests | 1,120 | (538) | 7,822 | 1,981 | ||||
Comprehensive income/(loss) attributable to Darling | (27,124) | (9,243) | 31,684 | (2,170) | ||||
Parent [Member] | ||||||||
Net income/(loss) | 26,837 | (5,137) | 77,521 | 63,800 | ||||
Other comprehensive income, net of tax: | ||||||||
Foreign currency translation | 1,328 | 165 | 1,509 | 1,281 | ||||
Pension adjustments | 767 | 565 | 2,300 | 1,696 | ||||
Total other comprehensive income/(loss), net of tax | 2,648 | 693 | 4,384 | 1,804 | ||||
Total comprehensive income/(loss) | 29,485 | (4,444) | 81,905 | 65,604 | ||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||
Comprehensive income/(loss) attributable to Darling | 29,485 | (4,444) | 81,905 | 65,604 | ||||
Guarantors [Member] | ||||||||
Net income/(loss) | 15,165 | 20,575 | 50,505 | 91,200 | ||||
Other comprehensive income, net of tax: | ||||||||
Foreign currency translation | 0 | 0 | 0 | (53,387) | ||||
Pension adjustments | 0 | 0 | 0 | 0 | ||||
Total other comprehensive income/(loss), net of tax | 0 | 0 | 0 | (53,387) | ||||
Total comprehensive income/(loss) | 15,165 | 20,575 | 50,505 | 37,813 | ||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||
Comprehensive income/(loss) attributable to Darling | 15,165 | 20,575 | 50,505 | 37,813 | ||||
Non-guarantors [Member] | ||||||||
Net income/(loss) | 37,532 | 7,863 | 125,499 | 116,277 | ||||
Other comprehensive income, net of tax: | ||||||||
Foreign currency translation | (48,954) | (5,749) | (37,695) | (13,020) | ||||
Pension adjustments | 92 | 103 | 276 | 305 | ||||
Total other comprehensive income/(loss), net of tax | (55,489) | (5,337) | (42,399) | (12,406) | ||||
Total comprehensive income/(loss) | (17,957) | 2,526 | 83,100 | 103,871 | ||||
Comprehensive income attributable to noncontrolling interests | 1,120 | (538) | 7,822 | 1,981 | ||||
Comprehensive income/(loss) attributable to Darling | (19,077) | 3,064 | 75,278 | 101,890 | ||||
Eliminations [Member] | ||||||||
Other comprehensive income, net of tax: | ||||||||
Derivative adjustments | 0 | 0 | ||||||
Natural Gas Swap [Member] | ||||||||
Other comprehensive income, net of tax: | ||||||||
Derivative adjustments | 0 | 0 | 22 | 0 | 22 | |||
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 | |||||||
Soybean Meal [Member] | ||||||||
Other comprehensive income, net of tax: | ||||||||
Derivative adjustments | 0 | 3 | 0 | 3 | ||||
Soybean Meal [Member] | Parent [Member] | ||||||||
Other comprehensive income, net of tax: | ||||||||
Derivative adjustments | 3 | 3 | ||||||
Soybean Meal [Member] | Guarantors [Member] | ||||||||
Other comprehensive income, net of tax: | ||||||||
Derivative adjustments | 0 | 0 | ||||||
Soybean Meal [Member] | Non-guarantors [Member] | ||||||||
Other comprehensive income, net of tax: | ||||||||
Derivative adjustments | 0 | 0 | ||||||
Corn Option [Member] | ||||||||
Other comprehensive income, net of tax: | ||||||||
Derivative adjustments | 553 | 22 | (40) | $ 447 | $ (1,605) | 575 | (1,198) | |
Corn Option [Member] | Parent [Member] | ||||||||
Other comprehensive income, net of tax: | ||||||||
Derivative adjustments | 553 | (40) | 575 | (1,198) | ||||
Corn Option [Member] | Guarantors [Member] | ||||||||
Other comprehensive income, net of tax: | ||||||||
Derivative adjustments | 0 | 0 | 0 | 0 | ||||
Corn Option [Member] | Non-guarantors [Member] | ||||||||
Other comprehensive income, net of tax: | ||||||||
Derivative adjustments | 0 | 0 | 0 | 0 | ||||
Heating Oil Swaps And Options [Member] | ||||||||
Other comprehensive income, net of tax: | ||||||||
Derivative adjustments | (1,683) | 0 | 450 | 0 | ||||
Heating Oil Swaps And Options [Member] | Parent [Member] | ||||||||
Other comprehensive income, net of tax: | ||||||||
Derivative adjustments | 0 | 0 | ||||||
Heating Oil Swaps And Options [Member] | Guarantors [Member] | ||||||||
Other comprehensive income, net of tax: | ||||||||
Derivative adjustments | 0 | 0 | ||||||
Heating Oil Swaps And Options [Member] | Non-guarantors [Member] | ||||||||
Other comprehensive income, net of tax: | ||||||||
Derivative adjustments | (1,683) | 450 | ||||||
Foreign Exchange Contract [Member] | ||||||||
Other comprehensive income, net of tax: | ||||||||
Derivative adjustments | (4,944) | $ 1,451 | $ (1,937) | 309 | (5,430) | 309 | ||
Foreign Exchange Contract [Member] | Parent [Member] | ||||||||
Other comprehensive income, net of tax: | ||||||||
Derivative adjustments | 0 | 0 | 0 | 0 | ||||
Foreign Exchange Contract [Member] | Guarantors [Member] | ||||||||
Other comprehensive income, net of tax: | ||||||||
Derivative adjustments | 0 | 0 | 0 | 0 | ||||
Foreign Exchange Contract [Member] | Non-guarantors [Member] | ||||||||
Other comprehensive income, net of tax: | ||||||||
Derivative adjustments | (4,944) | 309 | (5,430) | 309 | ||||
Eliminations [Member] | ||||||||
Net income/(loss) | (52,697) | (28,438) | (176,004) | (207,477) | ||||
Other comprehensive income, net of tax: | ||||||||
Foreign currency translation | 0 | 0 | 0 | 0 | ||||
Pension adjustments | 0 | 0 | 0 | 0 | ||||
Derivative adjustments | 0 | 0 | 0 | 0 | ||||
Total other comprehensive income/(loss), net of tax | 0 | 0 | 0 | 0 | ||||
Total comprehensive income/(loss) | (52,697) | (28,438) | (176,004) | (207,477) | ||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||
Comprehensive income/(loss) attributable to Darling | $ (52,697) | $ (28,438) | $ (176,004) | $ (207,477) |
Guarantor Financial Informati_7
Guarantor Financial Information (Condensed Consolidated Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Cash flows from operating activities: | ||||||||
Net income/(loss) | $ 26,837 | $ 31,044 | $ 19,640 | $ (5,137) | $ (29,138) | $ 98,075 | $ 77,521 | $ 63,800 |
Earnings in investments in subsidiaries | 0 | 0 | 0 | 0 | ||||
Other operating cash flows | 185,161 | 135,898 | ||||||
Net cash provided by operating activities | 262,682 | 199,698 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (245,092) | (213,726) | ||||||
Acquisitions | (1,431) | (51,301) | ||||||
Investment in subsidiaries and affiliates | (2,000) | (10,000) | ||||||
Proceeds from sale of investment in subsidiary | 0 | 82,805 | ||||||
Note receivable from affiliates | 0 | 0 | ||||||
Gross proceeds from disposal of property, plant and equipment and other assets | 15,402 | 3,361 | ||||||
Proceeds from insurance settlement | 1,371 | 1,253 | ||||||
Payments related to routes and other intangibles | (3,150) | (1,253) | ||||||
Net cash used by investing activities | (234,900) | (188,861) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from long-term debt | 511,985 | 623,698 | ||||||
Payments on long-term debt | (566,107) | (661,268) | ||||||
Borrowings from revolving credit facility | 325,485 | 386,436 | ||||||
Payments on revolving credit facility | (332,884) | (362,463) | ||||||
Net cash overdraft financing | 27,858 | 3,361 | ||||||
Deferred loan costs | (7,027) | (9,668) | ||||||
Issuance of common stock | 39 | 182 | ||||||
Repurchase of common stock | (11,700) | (11,740) | 0 | |||||
Contributions from parent | 0 | 0 | ||||||
Minimum withholding taxes paid on stock awards | (3,247) | (2,215) | ||||||
Distributions to noncontrolling interests | (4,500) | (8,005) | ||||||
Net cash used by financing activities | (60,138) | (29,942) | ||||||
Effect of exchange rate changes on cash | (5,732) | (6,238) | ||||||
Net decrease in cash, cash equivalents and restricted cash | (38,088) | (25,343) | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 107,369 | 106,916 | 107,369 | 106,916 | ||||
Cash, cash equivalents and restricted cash at end of period | 69,281 | 81,573 | 69,281 | 81,573 | ||||
Parent [Member] | ||||||||
Cash flows from operating activities: | ||||||||
Net income/(loss) | 26,837 | (5,137) | 77,521 | 63,800 | ||||
Earnings in investments in subsidiaries | (52,697) | (28,438) | (176,004) | (207,477) | ||||
Other operating cash flows | 189,575 | 187,663 | ||||||
Net cash provided by operating activities | 91,092 | 43,986 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (88,639) | (75,282) | ||||||
Acquisitions | (1,157) | (51,301) | ||||||
Investment in subsidiaries and affiliates | (2,393) | (10,000) | ||||||
Proceeds from sale of investment in subsidiary | 80,000 | |||||||
Note receivable from affiliates | 38,274 | 0 | ||||||
Gross proceeds from disposal of property, plant and equipment and other assets | 380 | 1,282 | ||||||
Proceeds from insurance settlement | 0 | 750 | ||||||
Payments related to routes and other intangibles | (131) | (246) | ||||||
Net cash used by investing activities | (53,666) | (54,797) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from long-term debt | 500,000 | 0 | ||||||
Payments on long-term debt | (545,872) | (10,090) | ||||||
Borrowings from revolving credit facility | 176,000 | 238,000 | ||||||
Payments on revolving credit facility | (152,000) | (215,000) | ||||||
Net cash overdraft financing | 5,951 | 0 | ||||||
Deferred loan costs | (7,027) | (824) | ||||||
Issuance of common stock | 39 | 182 | ||||||
Repurchase of common stock | (11,740) | |||||||
Contributions from parent | 0 | 0 | ||||||
Minimum withholding taxes paid on stock awards | (3,230) | (2,152) | ||||||
Distributions to noncontrolling interests | 0 | 0 | ||||||
Net cash used by financing activities | (37,879) | 10,116 | ||||||
Effect of exchange rate changes on cash | 0 | 0 | ||||||
Net decrease in cash, cash equivalents and restricted cash | (453) | (695) | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 1,098 | 1,827 | 1,098 | 1,827 | ||||
Cash, cash equivalents and restricted cash at end of period | 645 | 1,132 | 645 | 1,132 | ||||
Guarantors [Member] | ||||||||
Cash flows from operating activities: | ||||||||
Net income/(loss) | 15,165 | 20,575 | 50,505 | 91,200 | ||||
Earnings in investments in subsidiaries | 0 | 0 | 0 | 0 | ||||
Other operating cash flows | (2,763) | (49,424) | ||||||
Net cash provided by operating activities | 47,742 | 41,776 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (61,337) | (65,079) | ||||||
Acquisitions | 0 | 0 | ||||||
Investment in subsidiaries and affiliates | (393) | (198,880) | ||||||
Proceeds from sale of investment in subsidiary | 0 | |||||||
Note receivable from affiliates | 0 | 217,880 | ||||||
Gross proceeds from disposal of property, plant and equipment and other assets | 12,223 | 843 | ||||||
Proceeds from insurance settlement | 1,371 | 503 | ||||||
Payments related to routes and other intangibles | 0 | 0 | ||||||
Net cash used by investing activities | (48,136) | (44,733) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from long-term debt | 0 | 0 | ||||||
Payments on long-term debt | (5) | 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 | ||||||
Repurchase of common stock | 0 | |||||||
Contributions from parent | 393 | 0 | ||||||
Minimum withholding taxes paid on stock awards | 0 | 0 | ||||||
Distributions to noncontrolling interests | 0 | 0 | ||||||
Net cash used by financing activities | 388 | 0 | ||||||
Effect of exchange rate changes on cash | 0 | 0 | ||||||
Net decrease in cash, cash equivalents and restricted cash | (6) | (2,957) | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 32 | 2,993 | 32 | 2,993 | ||||
Cash, cash equivalents and restricted cash at end of period | 26 | 36 | 26 | 36 | ||||
Non-guarantors [Member] | ||||||||
Cash flows from operating activities: | ||||||||
Net income/(loss) | 37,532 | 7,863 | 125,499 | 116,277 | ||||
Earnings in investments in subsidiaries | 0 | 0 | 0 | 0 | ||||
Other operating cash flows | (1,651) | (2,341) | ||||||
Net cash provided by operating activities | 123,848 | 113,936 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (95,116) | (73,365) | ||||||
Acquisitions | (274) | 0 | ||||||
Investment in subsidiaries and affiliates | 0 | 0 | ||||||
Proceeds from sale of investment in subsidiary | 2,805 | |||||||
Note receivable from affiliates | (38,274) | (217,880) | ||||||
Gross proceeds from disposal of property, plant and equipment and other assets | 2,799 | 1,236 | ||||||
Proceeds from insurance settlement | 0 | 0 | ||||||
Payments related to routes and other intangibles | (3,019) | (1,007) | ||||||
Net cash used by investing activities | (133,884) | (288,211) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from long-term debt | 11,985 | 623,698 | ||||||
Payments on long-term debt | (20,230) | (651,178) | ||||||
Borrowings from revolving credit facility | 149,485 | 148,436 | ||||||
Payments on revolving credit facility | (180,884) | (147,463) | ||||||
Net cash overdraft financing | 21,907 | 3,361 | ||||||
Deferred loan costs | 0 | (8,844) | ||||||
Issuance of common stock | 0 | 0 | ||||||
Repurchase of common stock | 0 | |||||||
Contributions from parent | 393 | 198,880 | ||||||
Minimum withholding taxes paid on stock awards | (17) | (63) | ||||||
Distributions to noncontrolling interests | (4,500) | (8,005) | ||||||
Net cash used by financing activities | (21,861) | 158,822 | ||||||
Effect of exchange rate changes on cash | (5,732) | (6,238) | ||||||
Net decrease in cash, cash equivalents and restricted cash | (37,629) | (21,691) | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 106,239 | 102,096 | 106,239 | 102,096 | ||||
Cash, cash equivalents and restricted cash at end of period | 68,610 | 80,405 | 68,610 | 80,405 | ||||
Eliminations [Member] | ||||||||
Cash flows from operating activities: | ||||||||
Net income/(loss) | (52,697) | (28,438) | (176,004) | (207,477) | ||||
Earnings in investments in subsidiaries | 52,697 | 28,438 | 176,004 | 207,477 | ||||
Other operating cash flows | 0 | 0 | ||||||
Net cash provided by operating activities | 0 | 0 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | 0 | 0 | ||||||
Acquisitions | 0 | 0 | ||||||
Investment in subsidiaries and affiliates | 786 | 198,880 | ||||||
Proceeds from sale of investment in subsidiary | 0 | |||||||
Note receivable from affiliates | 0 | 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 | 0 | ||||||
Net cash used by investing activities | 786 | 198,880 | ||||||
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 | ||||||
Repurchase of common stock | 0 | |||||||
Contributions from parent | (786) | (198,880) | ||||||
Minimum withholding taxes paid on stock awards | 0 | 0 | ||||||
Distributions to noncontrolling interests | 0 | 0 | ||||||
Net cash used by financing activities | (786) | (198,880) | ||||||
Effect of exchange rate changes on cash | 0 | 0 | ||||||
Net decrease in cash, cash equivalents and restricted cash | 0 | 0 | ||||||
Cash, cash equivalents and restricted cash at beginning of period | $ 0 | $ 0 | 0 | 0 | ||||
Cash, cash equivalents and restricted cash at end of period | $ 0 | $ 0 | $ 0 | $ 0 |