Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jun. 27, 2020 | Jul. 30, 2020 | |
Cover [Abstract] | ||
Entity File Number | 001-13323 | |
Title of 12(b) Security | Common stock $0.01 par value per share | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Entity Registrant Name | DARLING INGREDIENTS INC. | |
Entity Central Index Key | 0000916540 | |
Current Fiscal Year End Date | --01-02 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 27, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 161,961,180 | |
Document Transition Report | false | |
Entity Tax Identification Number | 36-2495346 | |
Trading Symbol | DAR | |
Security Exchange Name | NYSE | |
Entity Address, Address Line One | 5601 N MacArthur Blvd. | |
Entity Address, City or Town | Irving | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75038 | |
City Area Code | 972 | |
Local Phone Number | 717-0300 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 27, 2020 | Dec. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 76,185 | $ 72,935 |
Restricted cash | 103 | 110 |
Accounts receivable, less allowance for bad debts of $10,866 at June 27, 2020 and $8,802 at December 28, 2019 | 375,908 | 406,338 |
Inventories | 394,708 | 362,957 |
Prepaid expenses | 46,003 | 46,599 |
Income taxes refundable | 3,752 | 3,317 |
Other current assets | 34,392 | 25,032 |
Total current assets | 931,051 | 917,288 |
Property, plant and equipment, less accumulated depreciation of $1,524,837 at June 27, 2020 and $1,438,388 at December 28, 2019 | 1,773,329 | 1,802,411 |
Intangible assets, less accumulated amortization of $507,275 at June 27, 2020 and $482,442 at December 28, 2019 | 485,148 | 526,394 |
Goodwill | 1,217,177 | 1,223,291 |
Investment in unconsolidated subsidiaries | 729,094 | 689,354 |
Operating right-of-use assets, net | 134,901 | 124,726 |
Other assets | 41,651 | 47,400 |
Deferred income taxes | 14,803 | 14,394 |
Total assets | 5,327,154 | 5,345,258 |
Current liabilities: | ||
Current portion of long-term debt | 42,758 | 90,996 |
Accounts payable, principally trade | 197,528 | 239,252 |
Income taxes payable | 16,474 | 8,895 |
Operating lease liability, current | 39,532 | 37,805 |
Accrued expenses | 310,004 | 311,391 |
Total current liabilities | 606,296 | 688,339 |
Long-term debt, net of current portion | 1,553,118 | 1,558,429 |
Operating lease liability, non-current | 99,482 | 91,424 |
Other non-current liabilities | 109,046 | 115,785 |
Deferred income taxes | 260,858 | 247,931 |
Total liabilities | 2,628,800 | 2,701,908 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 250,000,000 shares authorized; 169,248,895 and 168,620,314 shares issued at June 27, 2020 and at December 28, 2019, respectively | 1,692 | 1,686 |
Additional paid-in capital | 1,581,812 | 1,560,897 |
Treasury stock, at cost; 7,290,619 and 4,845,203 shares at June 27, 2020 and at December 28, 2019, respectively | (136,676) | (75,022) |
Accumulated other comprehensive loss | (364,522) | (321,847) |
Retained earnings | 1,551,054 | 1,400,105 |
Total Darling's stockholders’ equity | 2,633,360 | 2,565,819 |
Noncontrolling interests | 64,994 | 77,531 |
Total stockholders' equity | 2,698,354 | 2,643,350 |
Total liabilities and stockholders' equity | 5,327,154 | 5,345,258 |
Accounts Receivable, Allowance for Credit Loss, Current | $ 10,866 | $ 8,802 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Property, plant and equipment, accumulated depreciation | $ 1,524,837 | $ 1,438,388 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Intangible assets, accumulated amortization | $ 507,275 | $ 482,442 |
Common stock, shares issued | 169,248,895 | 168,620,314 |
Treasury stock, shares | 7,290,619 | 4,845,203 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 27, 2020 | Dec. 28, 2019 | Jun. 29, 2019 |
Assets: | |||
Accounts Receivable, Allowance for Credit Loss, Current | $ 10,866 | $ 8,802 | |
Property, plant and equipment, accumulated depreciation | 1,524,837 | 1,438,388 | |
Intangible assets, accumulated amortization | $ 507,275 | $ 482,442 | |
Stockholders’ equity: | |||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 | |
Common stock, shares issued | 169,248,895 | 168,620,314 | |
Treasury stock, shares | 7,290,619 | 4,845,203 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 27, 2020 | Mar. 28, 2020 | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Income Statement [Abstract] | ||||||
Net sales | $ 848,673 | $ 827,324 | $ 1,701,515 | $ 1,662,428 | ||
Costs and expenses: | ||||||
Cost of sales and operating expenses | 632,347 | 644,716 | 1,279,255 | 1,295,629 | ||
Loss (gain) on disposal of property, plant, equipment and other assets | 27 | (13,926) | 88 | (18,176) | ||
Selling, general and administrative expenses | 90,193 | 81,017 | 186,386 | 166,020 | ||
Depreciation and amortization | 83,310 | 79,486 | 167,981 | 158,650 | ||
Total costs and expenses | 805,877 | 791,293 | 1,633,710 | 1,602,123 | ||
Equity in net income of Diamond Green Diesel | 63,492 | 38,093 | 161,312 | 62,370 | ||
Operating income | 106,288 | 74,124 | 229,117 | 122,675 | ||
Other expense: | ||||||
Interest expense | (17,920) | (20,853) | (37,010) | (40,729) | ||
Debt extinguishment costs | 0 | (12,126) | 0 | (12,126) | ||
Foreign currency gain/(loss) | (1,134) | (388) | 530 | (1,120) | ||
Other expense, net | (1,485) | (2,019) | (3,366) | (4,544) | ||
Total other expense | (20,539) | (35,386) | (39,846) | (58,519) | ||
Equity in net income/(loss) of other unconsolidated subsidiaries | 692 | 82 | 1,561 | (422) | ||
Income before income taxes | 86,441 | 38,820 | 190,832 | 63,734 | ||
Income tax expense | 19,946 | 7,776 | 38,246 | 13,050 | ||
Net income | 66,495 | $ 86,091 | 31,044 | $ 19,640 | 152,586 | 50,684 |
Net income attributable to noncontrolling interests | (1,056) | (4,786) | (1,637) | (6,414) | ||
Net income attributable to Darling | $ 65,439 | $ 26,258 | $ 150,949 | $ 44,270 | ||
Basic income per share (in dollars per share) | $ 0.40 | $ 0.16 | $ 0.93 | $ 0.27 | ||
Diluted income per share (in dollars per share) | $ 0.39 | $ 0.16 | $ 0.90 | $ 0.26 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 27, 2020 | Mar. 28, 2020 | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Net income | $ 66,495 | $ 86,091 | $ 31,044 | $ 19,640 | $ 152,586 | $ 50,684 |
Other comprehensive income/(loss), net of tax: | ||||||
Foreign currency translation | 20,139 | (65,236) | 16,326 | (4,886) | (45,097) | 11,440 |
Pension adjustments | 647 | 859 | 1,295 | 1,717 | ||
Net current-period other comprehensive income | 19,329 | 20,791 | (43,404) | 14,826 | ||
Total comprehensive income | 85,824 | 51,835 | 109,182 | 65,510 | ||
Comprehensive income attributable to noncontrolling interests | 416 | 3,315 | 908 | 6,702 | ||
Comprehensive income attributable to Darling | 85,408 | 48,520 | 108,274 | 58,808 | ||
Corn Option [Member] | ||||||
Other comprehensive income/(loss), net of tax: | ||||||
Derivative adjustments | 1,804 | 136 | 22 | 1,940 | 22 | |
Heating Oil Swaps And Options [Member] | ||||||
Other comprehensive income/(loss), net of tax: | ||||||
Derivative adjustments | (8,940) | 2,133 | 1,930 | 2,133 | ||
Foreign Exchange Contract [Member] | ||||||
Other comprehensive income/(loss), net of tax: | ||||||
Derivative adjustments | 5,679 | (9,151) | 1,451 | (1,937) | $ (3,472) | $ (486) |
Parent [Member] | ||||||
Net income | 65,439 | 85,510 | 26,258 | 18,012 | ||
Other comprehensive income/(loss), net of tax: | ||||||
Foreign currency translation | 20,779 | (65,147) | 17,797 | (6,645) | ||
Parent [Member] | Corn Option [Member] | ||||||
Other comprehensive income/(loss), net of tax: | ||||||
Derivative adjustments | 1,804 | 136 | 22 | |||
Parent [Member] | Foreign Exchange Contract [Member] | ||||||
Other comprehensive income/(loss), net of tax: | ||||||
Derivative adjustments | $ 5,679 | $ (9,151) | $ 1,451 | $ (1,937) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Total | Heating Oil [Member] | Corn Option [Member] | Foreign Exchange Contract [Member] | Parent [Member] | Parent [Member]Heating Oil [Member] | Parent [Member]Corn Option [Member] | Parent [Member]Foreign Exchange Contract [Member] | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive LossHeating Oil [Member] | Accumulated Other Comprehensive LossCorn Option [Member] | Accumulated Other Comprehensive LossForeign Exchange Contract [Member] | Retained Earnings | Non-controlling Interest |
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 | 19,640 | 18,012 | 18,012 | 1,628 | |||||||||||||
Pension liability adjustments, net of tax | 858 | 858 | 858 | ||||||||||||||
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 | 50,684 | ||||||||||||||||
Derivative adjustment, net of tax | $ 22 | (486) | |||||||||||||||
Foreign currency translation | 11,440 | ||||||||||||||||
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 | |||||||||
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 | 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 | ||||||||||||||
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 | 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] | |||||||||||||||||
Common stock, par value (in usd per share) | $ 0.01 | ||||||||||||||||
Common stock, par value (in usd per share) | $ 0.01 | ||||||||||||||||
Balance (in shares) at Dec. 28, 2019 | 163,775,111 | ||||||||||||||||
Stockholders' Equity, Beginning Balance at Dec. 28, 2019 | $ 2,643,350 | 2,565,819 | $ 1,686 | 1,560,897 | (75,022) | (321,847) | 1,400,105 | 77,531 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income | 86,091 | 85,510 | 85,510 | 581 | |||||||||||||
Deductions to noncontrolling interests | (9,875) | 3,271 | 3,271 | (13,146) | |||||||||||||
Pension liability adjustments, net of tax | 648 | 648 | 648 | ||||||||||||||
Derivative adjustment, net of tax | 10,870 | 136 | (9,151) | 10,870 | 136 | (9,151) | 10,870 | 136 | (9,151) | ||||||||
Foreign currency translation | (65,236) | (65,147) | (65,147) | (89) | |||||||||||||
Issuance of non-vested stock (in shares) | 8,000 | ||||||||||||||||
Issuance of non-vested stock | 40 | 40 | $ 0 | 40 | |||||||||||||
Stock-based compensation | 10,778 | 10,778 | 10,778 | ||||||||||||||
Treasury stock (in shares) | (2,372,876) | ||||||||||||||||
Treasury stock | (60,082) | (60,082) | (60,082) | ||||||||||||||
Issuance of common stock (in shares) | 447,729 | ||||||||||||||||
Issuance of common stock | 873 | 873 | $ 5 | 868 | |||||||||||||
Balance (in shares) at Mar. 28, 2020 | 161,857,964 | ||||||||||||||||
Stockholders' Equity, Ending Balance at Mar. 28, 2020 | 2,608,442 | 2,543,565 | $ 1,691 | 1,575,854 | (135,104) | (384,491) | 1,485,615 | 64,877 | |||||||||
Balance (in shares) at Dec. 28, 2019 | 163,775,111 | ||||||||||||||||
Stockholders' Equity, Beginning Balance at Dec. 28, 2019 | 2,643,350 | 2,565,819 | $ 1,686 | 1,560,897 | (75,022) | (321,847) | 1,400,105 | 77,531 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income | 152,586 | ||||||||||||||||
Derivative adjustment, net of tax | 1,940 | (3,472) | |||||||||||||||
Foreign currency translation | (45,097) | ||||||||||||||||
Balance (in shares) at Jun. 27, 2020 | 161,958,276 | ||||||||||||||||
Stockholders' Equity, Ending Balance at Jun. 27, 2020 | 2,698,354 | 2,633,360 | $ 1,692 | 1,581,812 | (136,676) | (364,522) | 1,551,054 | 64,994 | |||||||||
Balance (in shares) at Mar. 28, 2020 | 161,857,964 | ||||||||||||||||
Stockholders' Equity, Beginning Balance at Mar. 28, 2020 | 2,608,442 | 2,543,565 | $ 1,691 | 1,575,854 | (135,104) | (384,491) | 1,485,615 | 64,877 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income | 66,495 | 65,439 | 65,439 | 1,056 | |||||||||||||
Deductions to noncontrolling interests | (299) | (299) | |||||||||||||||
Pension liability adjustments, net of tax | 647 | 647 | 647 | ||||||||||||||
Derivative adjustment, net of tax | $ (8,940) | $ 1,804 | $ 5,679 | $ (8,940) | $ 1,804 | $ 5,679 | $ (8,940) | $ 1,804 | $ 5,679 | ||||||||
Foreign currency translation | 20,139 | 20,779 | 20,779 | (640) | |||||||||||||
Issuance of non-vested stock | 55 | 55 | 55 | ||||||||||||||
Stock-based compensation | 4,693 | 4,693 | 4,693 | ||||||||||||||
Treasury stock (in shares) | (72,540) | ||||||||||||||||
Treasury stock | (1,572) | (1,572) | (1,572) | ||||||||||||||
Issuance of common stock (in shares) | 172,852 | ||||||||||||||||
Issuance of common stock | 1,211 | 1,211 | $ 1 | 1,210 | |||||||||||||
Balance (in shares) at Jun. 27, 2020 | 161,958,276 | ||||||||||||||||
Stockholders' Equity, Ending Balance at Jun. 27, 2020 | $ 2,698,354 | $ 2,633,360 | $ 1,692 | $ 1,581,812 | $ (136,676) | $ (364,522) | $ 1,551,054 | $ 64,994 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Common stock, par value (in usd per share) | $ 0.01 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders’ Equity (Parenthetical) - $ / shares | Jun. 27, 2020 | Dec. 28, 2019 | Jun. 29, 2019 |
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 | 6 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 152,586 | $ 50,684 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 167,981 | 158,650 |
Loss (gain) on disposal of property, plant, equipment and other assets | 88 | (18,176) |
Gain on insurance proceeds from insurance settlements | 0 | (845) |
Deferred taxes | 13,998 | (3,137) |
Increase (decrease) in long-term pension liability | (890) | 1,010 |
Stock-based compensation expense | 15,566 | 14,182 |
Write-off deferred loan costs | 0 | 4,547 |
Deferred loan cost amortization | 2,835 | 3,010 |
Equity in net income of Diamond Green Diesel and other unconsolidated subsidiaries | (162,873) | (61,948) |
Distributions of earnings from Diamond Green Diesel and other unconsolidated subsidiaries | 125,891 | 17,755 |
Changes in operating assets and liabilities, net of effects from acquisitions: | ||
Accounts receivable | 26,077 | 27,218 |
Income taxes refundable/payable | 6,119 | 7,140 |
Inventories and prepaid expenses | (35,413) | (17,374) |
Accounts payable and accrued expenses | (33,375) | (29,849) |
Other | (14,941) | 1,437 |
Net cash provided by operating activities | 263,649 | 154,304 |
Cash flows from investing activities: | ||
Capital expenditures | (123,204) | (167,871) |
Acquisitions, net of cash acquired | 0 | (1,431) |
Investment in unconsolidated subsidiary | 0 | (1,000) |
Gross proceeds from disposal of property, plant and equipment and other assets | 1,053 | 9,814 |
Proceeds from insurance settlement | 0 | 845 |
Payments related to routes and other intangibles | (3,712) | (3,150) |
Net cash used by investing activities | (125,863) | (162,793) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 16,164 | 507,722 |
Payments on long-term debt | (18,239) | (526,230) |
Borrowings from revolving credit facility | 375,971 | 273,485 |
Payments on revolving credit facility | (405,800) | (266,884) |
Net cash overdraft financing | (26,461) | 11,178 |
Deferred loan costs | 0 | (7,003) |
Issuance of common stock | 67 | 12 |
Repurchase of common stock | (55,044) | 0 |
Minimum withholding taxes paid on stock awards | (4,863) | (3,193) |
Payments to Noncontrolling Interests | (8,784) | 0 |
Distributions to noncontrolling interests | (987) | 0 |
Net cash used by financing activities | (127,976) | (10,913) |
Effect of exchange rate changes on cash | (6,567) | (853) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 3,243 | (20,255) |
Cash, cash equivalents and restricted cash at beginning of period | 73,045 | 107,369 |
Cash, cash equivalents and restricted cash at end of period | 76,288 | 87,114 |
Supplemental disclosure of cash flow information: | ||
Accrued capital expenditures | 23 | (7,542) |
Cash paid during the period for: | ||
Interest, net of capitalized interest | 35,070 | 45,196 |
Income taxes, net of refunds | 18,030 | 12,607 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 28,801 | 7,492 |
Debt issued for assets | $ 21 | $ 0 |
General
General | 6 Months Ended |
Jun. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | GeneralThe accompanying consolidated financial statements for the three and six month periods ended June 27, 2020 and June 29, 2019, have been prepared by Darling Ingredients Inc., a Delaware corporation (“Darling”, and together with its subsidiaries, the “Company” or “we”, “us” or “our”) 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 28, 2019. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 27, 2020 | |
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 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 June 27, 2020, and include the 13 and 26 weeks ended June 27, 2020, and the 13 and 26 weeks ended June 29, 2019. (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. (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 adjusted for differences in asset-specific risk characteristic, current economic conditions, and forecasts of future economic conditions. 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 June 27, 2020 and June 29, 2019, the Company sold approximately $86.3 million and $50.7 million of its trade receivables and incurred approximately $0.3 million and $0.3 million in fees, which are recorded as interest expense, respectively. For the six months ended June 27, 2020 and June 29, 2019, the Company sold approximately $170.8 million and $83.2 million of its trade receivables and incurred approximately $0.7 million and $0.5 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 (Revenue) to the Company's Consolidated Financial Statements included herein. (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/(losses) in determining net income. The Company incurred net foreign currency translation gains/(losses) of approximately $(44.4) million and $11.2 million for the six months ended June 27, 2020 and June 29, 2019, 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. (h) Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. If it is at least reasonably possible that the estimate of the effect on the financial statements of a condition, situation, or set of circumstances that exist at the date of the financial statements will change in the near term due to one or more future confirming events, and the effect of the change would be material to the financial statements, the Company will disclose the nature of the uncertainty and include an indication that it is at least reasonably possible that a change in the estimate will occur in the near term. If the estimate involves certain loss contingencies, the disclosure will also include an estimate of the probable loss or range of loss or state that an estimate cannot be made. As a result of the current global COVID-19 pandemic, and related government imposed movement restrictions and initiatives implemented to reduce the global transmission of COVID-19, we have evaluated the potential impact to the Company's operations and for any indicators of potential triggering events that could indicate certain of the Company's assets may be impaired. Through the six months ended June 27, 2020, the Company has not observed any impairments of the Company's assets or a significant change in the fair value of due to the COVID-19 pandemic. (i) 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 of Diamond Green Diesel to operating income. See Note 3 (Investment in Unconsolidated Subsidiaries) to the Company's Consolidated Financial Statements included herein for further discussion. (j) Earnings Per Share Basic income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares including non-vested and restricted shares outstanding during the period. Diluted income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares outstanding during the period increased by dilutive common equivalent shares determined using the treasury stock method. Net Income per Common Share (in thousands, except per share data) Three Months Ended June 27, 2020 June 29, 2019 Income Shares Per Share Income Shares Per Share Basic: Net Income attributable to Darling $ 65,439 162,154 $ 0.40 $ 26,258 164,935 $ 0.16 Diluted: Effect of dilutive securities: Add: Option shares in the money and dilutive effect of non-vested stock awards 5,882 5,801 Less: Pro forma treasury shares (2,037) (2,304) Diluted: Net income attributable to Darling $ 65,439 165,999 $ 0.39 $ 26,258 168,432 $ 0.16 Net Income per Common Share (in thousands, except per share data) Six Months Ended June 27, 2020 June 29, 2019 Income Shares Per Share Income Shares Per Share Basic: Net Income attributable to Darling $ 150,949 162,814 $ 0.93 $ 44,270 164,895 $ 0.27 Diluted: Effect of dilutive securities: Add: Option shares in the money and dilutive effect of non-vested stock awards 6,315 5,964 Less: Pro forma treasury shares (2,166) (2,313) Diluted: Net income attributable to Darling $ 150,949 166,963 $ 0.90 $ 44,270 168,546 $ 0.26 For the three months ended June 27, 2020 and June 29, 2019, respectively, 1,157,300 and 641,399 outstanding stock options were excluded from diluted income per common share as the effect was antidilutive. For the three months ended June 27, 2020 and June 29, 2019, respectively, 626,783 and 556,418 shares of non-vested stock and stock equivalents were excluded from diluted income per common share as the effect was antidilutive. For the six months ended June 27, 2020 and June 29, 2019, respectively, 576,911 and 641,399 outstanding stock options were excluded from diluted income per common share as the effect was antidilutive. For the six months ended June 27, 2020 and June 29, 2019, respectively, 540,776 and 471,661 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 | 6 Months Ended |
Jun. 27, 2020 | |
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) June 30, 2020 December 31, 2019 Assets: Total current assets $ 581,334 $ 668,026 Property, plant and equipment, net 894,415 713,489 Other assets 27,959 30,710 Total assets $ 1,503,708 $ 1,412,225 Liabilities and members' equity: Total current portion of long term debt $ 495 $ 341 Total other current liabilities 89,533 75,802 Total long term debt 8,969 8,742 Total other long term liabilities 4,023 4,422 Total members' equity 1,400,688 1,322,918 Total liabilities and members' equity $ 1,503,708 $ 1,412,225 Three Months Ended Six Months Ended (in thousands) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Revenues: Operating revenues $ 295,826 $ 294,811 $ 654,441 $ 597,529 Expenses: Total costs and expenses less depreciation, amortization and accretion expense 157,611 207,024 308,958 450,087 Depreciation, amortization and accretion expense 11,114 11,914 22,888 23,332 Total costs and expenses 168,725 218,938 331,846 473,419 Operating income 127,101 75,873 322,595 124,110 Other income 200 634 661 1,275 Interest and debt expense, net (317) (321) (632) (645) Net income $ 126,984 $ 76,186 $ 322,624 $ 124,740 As of June 27, 2020 under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $700.3 million on the consolidated balance sheet. The Company has recorded an equity in net income of approximately $63.5 million and $38.1 million for the three months ended June 27, 2020 and June 29, 2019, respectively. The Company has recorded an equity in net income of approximately $161.3 million and $62.4 million for the six months ended June 27, 2020 and June 29, 2019, respectively. In December 2019, the blender tax credits for calendar year 2018 and 2019 were retroactively reinstated by the U.S. Congress. In addition, blenders tax credits were extended for calendar years 2020, 2021 and 2022. For the three and six months ended June 30, 2019, the DGD Joint Venture results do not include any blenders tax credits, while in the three and six months ended June 30, 2020, the DGD Joint Venture recorded approximately $72.2 million and $152.2 million of blenders tax credits, respectively. In April 2020, the Company received a $125.0 million dividend distribution from the DGD Joint Venture. In July 2020, the DGD Joint Venture made dividend distributions to each partner in the amount of approximately $80.2 million. 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) | 6 Months Ended |
Jun. 27, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and DispositionsIn December 2019, the Company began to consolidate EnviroFlight, LLC due to a loan issued by the Company, which resulted in more control by the Company based on variable interest entity literature. In January 2020, the Company acquired the other 50% minority interest in EnviroFlight, LLC from the other joint venture partner for approximately $8.8 million, along with the purchase of intellectual property of approximately $3.4 million for a total of approximately $12.2 million, thereby increasing the Company's ownership interest in EnviroFlight, LLC to 100%. |
Inventories
Inventories | 6 Months Ended |
Jun. 27, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories A summary of inventories follows (in thousands): June 27, 2020 December 28, 2019 Finished product $ 223,792 $ 199,799 Work in process 91,136 81,841 Raw material 37,663 41,964 Supplies and other 42,117 39,353 $ 394,708 $ 362,957 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 27, 2020 | |
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): June 27, 2020 December 28, 2019 Indefinite Lived Intangible Assets Trade names $ 52,878 $ 52,733 52,878 52,733 Finite Lived Intangible Assets: Routes 368,558 382,263 Permits 477,916 483,593 Non-compete agreements 3,110 3,840 Trade names 65,670 65,670 Royalty, consulting, land use rights and leasehold 24,291 20,737 939,545 956,103 Accumulated Amortization: Routes (175,721) (169,050) Permits (286,960) (272,213) Non-compete agreements (2,624) (3,111) Trade names (36,165) (32,890) Royalty, consulting, land use rights and leasehold (5,805) (5,178) (507,275) (482,442) Total Intangible assets, less accumulated amortization $ 485,148 $ 526,394 Gross intangible routes, permits, trade names, non-compete agreements and other intangibles partially decreased in fiscal 2020 as a result of approximately $5.8 million of fully amortized asset retirements with the remainder of the decrease as a result of foreign currency translation. Amortization expense for the three and six months ended June 27, 2020 and June 29, 2019, was approximately $18.0 million, $18.4 million and $36.1 million and $36.9 million, respectively. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 27, 2020 | |
Intangible Asset Disclosure Text Block [Abstract] | |
Goodwill | GoodwillChanges in the carrying amount of goodwill (in thousands): Feed Ingredients Food Ingredients Fuel Ingredients Total Balance at December 28, 2019 Goodwill $ 793,457 $ 329,654 $ 116,555 $ 1,239,666 Accumulated impairment losses (15,914) (461) — (16,375) 777,543 329,193 116,555 1,223,291 Foreign currency translation (6,458) 1,132 (788) (6,114) Balance at June 27, 2020 Goodwill 786,999 330,786 115,767 1,233,552 Accumulated impairment losses (15,914) (461) — (16,375) $ 771,085 $ 330,325 $ 115,767 $ 1,217,177 |
Accrued Expense Accrued Expense
Accrued Expense Accrued Expenses | 6 Months Ended |
Jun. 27, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consist of the following (in thousands): June 27, 2020 December 28, 2019 Compensation and benefits $ 95,224 $ 107,324 Accrued ad valorem, and franchise taxes 34,859 30,231 Accrued operating expenses 63,116 67,194 Other accrued expense 116,805 106,642 $ 310,004 $ 311,391 |
Leases
Leases | 6 Months Ended |
Jun. 27, 2020 | |
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 Six Months Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Operating lease expense $ 11,785 $ 12,511 $ 23,294 $ 24,828 Short-term lease costs 5,581 2,697 11,826 5,750 Total lease cost $ 17,366 $ 15,208 35,120 30,578 Other information (in thousands, except lease terms and discount rates): Six Months Ended June 27, 2020 June 29, 2019 Cash paid for amounts included in the measurement lease liabilities Operating cash flows from operating leases $ 25,282 $ 24,980 June 27, 2020 December 28, 2019 Operating right-of-use assets, net $ 134,901 $ 124,726 Operating lease liability, current $ 39,532 $ 37,805 Operating lease liability, non-current 99,482 91,424 Total operating lease liabilities $ 139,014 $ 129,229 Weighted average remaining lease term - operating leases 6.27 years 6.50 years Weighted average discount rate - operating leases 4.45 % 4.71 % Future annual minimum lease payments and capital lease commitments as of June 27, 2020 are as follows (in thousands): Period Ending Fiscal Operating Leases Capital Leases 2020 (excluding the six months ended June 27, 2020) $ 23,791 $ 73 2021 37,458 16 2022 26,870 16 2023 22,183 10 2024 16,170 8 Thereafter 27,160 1 $ 153,632 $ 124 Less amounts representing interest $ (14,618) (6) Lease obligations included in current and long-term liabilities $ 139,014 $ 118 |
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 Six Months Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Operating lease expense $ 11,785 $ 12,511 $ 23,294 $ 24,828 Short-term lease costs 5,581 2,697 11,826 5,750 Total lease cost $ 17,366 $ 15,208 35,120 30,578 Other information (in thousands, except lease terms and discount rates): Six Months Ended June 27, 2020 June 29, 2019 Cash paid for amounts included in the measurement lease liabilities Operating cash flows from operating leases $ 25,282 $ 24,980 June 27, 2020 December 28, 2019 Operating right-of-use assets, net $ 134,901 $ 124,726 Operating lease liability, current $ 39,532 $ 37,805 Operating lease liability, non-current 99,482 91,424 Total operating lease liabilities $ 139,014 $ 129,229 Weighted average remaining lease term - operating leases 6.27 years 6.50 years Weighted average discount rate - operating leases 4.45 % 4.71 % Future annual minimum lease payments and capital lease commitments as of June 27, 2020 are as follows (in thousands): Period Ending Fiscal Operating Leases Capital Leases 2020 (excluding the six months ended June 27, 2020) $ 23,791 $ 73 2021 37,458 16 2022 26,870 16 2023 22,183 10 2024 16,170 8 Thereafter 27,160 1 $ 153,632 $ 124 Less amounts representing interest $ (14,618) (6) Lease obligations included in current and long-term liabilities $ 139,014 $ 118 |
Debt
Debt | 6 Months Ended |
Jun. 27, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consists of the following (in thousands): June 27, 2020 December 28, 2019 Amended Credit Agreement: Revolving Credit Facility $ 10,000 $ 39,000 Term Loan B 495,000 495,000 Less unamortized deferred loan costs (6,983) (7,696) Carrying value Term Loan B 488,017 487,304 5.25% Senior Notes due 2027 with effective interest of 5.47% 500,000 500,000 Less unamortized deferred loan costs (6,126) (6,494) Carrying value 5.25% Senior Notes due 2027 493,874 493,506 3.625% Senior Notes due 2026 - Denominated in euro with effective interest of 3.83% 577,315 574,096 Less unamortized deferred loan costs - Denominated in euro (6,530) (6,982) Carrying value 3.625% Senior Notes due 2026 570,785 567,114 Other Notes and Obligations 33,200 62,501 1,595,876 1,649,425 Less Current Maturities 42,758 90,996 $ 1,553,118 $ 1,558,429 As of June 27, 2020, the Company had capital lease obligations denominated in Canadian dollars included in debt. The total Canadian dollar finance lease obligation was approximately CAD$0.1 million. As of June 27, 2020, 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 June 27, 2020, 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 June 27, 2020, the Company had other notes and obligations that consist of various overdraft facilities of approximately $15.2 million, a China working capital line of credit of approximately $17.4 million and other debt of approximately $0.6 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 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 June 27, 2020, the Company had $10.0 million outstanding under the revolver at base rate plus a margin of 1.00% per annum for a total of 4.25% 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 2.18% per annum. As of June 27, 2020, the Company had availability of $939.7 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 $10.3 million at June 27, 2020. 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 5.25% Notes are guaranteed on a senior unsecured basis by Darling and all of Darling's restricted subsidiaries (other than foreign subsidiaries). As of June 27, 2020, 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 | 6 Months Ended |
Jun. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company has provided income taxes for the three and six month periods ended June 27, 2020 and June 29, 2019, based on its estimate of the effective tax rate for the entire 2020 and 2019 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 June 27, 2020, the Company had $8.5 million of gross unrecognized tax benefits and $0.7 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 $3.9 million, excluding interest and penalties. The possible change in unrecognized tax benefits relates to the resolution of an uncertain tax position upon the restructuring of certain subsidiaries. On March 27, 2020, the CARES Act (the “Act”) was enacted in response to the COVID-19 pandemic. In addition, governments around the world have enacted or implemented various forms of tax relief measures in response to the economic conditions in the wake of COVID-19. The Company is continuing to evaluate the impact of the Act and changes to income tax laws and regulations in other jurisdictions and currently does not expect they will materially impact the Company. 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 2013 tax year. |
Other Comprehensive Income
Other Comprehensive Income | 6 Months Ended |
Jun. 27, 2020 | |
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, corn option adjustments, foreign exchange forward adjustments, heating oil swap adjustments and foreign currency translation adjustments. In the first six months of fiscal 2020, 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 six months ended June 27, 2020 and June 29, 2019 are as follows (in thousands): Three Months Ended Before-Tax Tax (Expense) Net-of-Tax Amount or Benefit Amount June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Defined benefit pension plans Amortization of prior service (cost)/benefit $ 8 $ 9 $ (2) $ (2) $ 6 $ 7 Amortization of actuarial loss 854 1,147 (213) (295) 641 852 Total defined benefit pension plans 862 1,156 (215) (297) 647 859 Corn option derivatives Gain/(loss) reclassified to net income 639 (37) (160) 10 479 (27) Gain/(loss) activity recognized in other comprehensive income/(loss) 1,768 67 (443) (18) 1,325 49 Total corn option derivatives 2,407 30 (603) (8) 1,804 22 Heating oil derivatives Gain/(loss) activity recognized in other comprehensive income/(loss) (11,921) 2,874 2,981 (741) (8,940) 2,133 Total heating oil derivatives (11,921) 2,874 2,981 (741) (8,940) 2,133 Foreign exchange derivatives Gain/(loss) reclassified to net income (4,835) 287 1,176 (111) (3,659) 176 Gain/(loss) activity recognized in other comprehensive income/(loss) 13,546 1,854 (4,208) (579) 9,338 1,275 Total foreign exchange derivatives 8,711 2,141 (3,032) (690) 5,679 1,451 Foreign currency translation 20,852 16,652 (713) (326) 20,139 16,326 Other comprehensive income/(loss) $ 20,911 $ 22,853 $ (1,582) $ (2,062) $ 19,329 $ 20,791 Six Months Ended Before-Tax Tax (Expense) Net-of-Tax Amount or Benefit Amount June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Defined benefit pension plans Amortization of prior service (cost)/benefit $ 16 $ 18 $ (4) $ (5) $ 12 $ 13 Amortization of actuarial loss 1,708 2,293 (425) (589) 1,283 1,704 Total defined benefit pension plans 1,724 2,311 (429) (594) 1,295 1,717 Corn option derivatives Gain/(loss) reclassified to net income 939 (37) (235) 10 704 (27) Gain/(loss) activity recognized in other comprehensive income/(loss) 1,649 67 (413) (18) 1,236 49 Total corn option derivatives 2,588 30 (648) (8) 1,940 22 Heating oil derivatives Gain/(loss) activity recognized in other comprehensive income/(loss) 2,573 2,874 (643) (741) 1,930 2,133 Total heating oil derivatives 2,573 2,874 (643) (741) 1,930 2,133 Foreign exchange derivatives Gain/(loss) reclassified to net income (5,247) 287 1,305 (111) (3,942) 176 Gain/(loss) activity recognized in other comprehensive income/(loss) 626 (1,080) (156) 418 470 (662) Total foreign exchange derivatives (4,621) (793) 1,149 307 (3,472) (486) Foreign currency translation (45,035) 11,259 (62) 181 (45,097) 11,440 Other comprehensive income/(loss) $ (42,771) $ 15,681 $ (633) $ (855) $ (43,404) $ 14,826 The following table presents the amounts reclassified out of each component of other comprehensive income/(loss), net of tax for the three and six months ended June 27, 2020 and June 29, 2019 as follows (in thousands): Three Months Ended Six Months Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Statement of Operations Classification Derivative instruments Foreign exchange contracts $ 4,835 $ (287) $ 5,247 $ (287) Net sales Corn option derivatives (639) 37 (939) 37 Cost of sales and operating expenses 4,196 (250) 4,308 (250) Total before tax (1,016) 101 (1,070) 101 Income taxes 3,180 (149) 3,238 (149) Net of tax Defined benefit pension plans Amortization of prior service cost $ (8) $ (9) $ (16) $ (18) (a) Amortization of actuarial loss (854) (1,147) (1,708) (2,293) (a) (862) (1,156) (1,724) (2,311) Total before tax 215 297 429 594 Income taxes (647) (859) (1,295) (1,717) Net of tax Total reclassifications $ 2,533 $ (1,008) $ 1,943 $ (1,866) Net of tax (a) These items are included in the computation of net periodic pension cost. See Note 14 (Employee Benefit Plans) to the Company's Consolidated Financial Statement included herein for additional information. The following table presents changes in each component of accumulated other comprehensive income/(loss) as of June 27, 2020 as follows (in thousands): Six Months Ended June 27, 2020 Foreign Currency Derivative Defined Benefit Translation Instruments Pension Plans Total Accumulated Other Comprehensive Income/(loss) December 28, 2019, attributable to Darling, net of tax $ (282,338) $ (5,505) $ (34,004) $ (321,847) Other comprehensive loss before reclassifications (45,097) 3,636 — (41,461) Amounts reclassified from accumulated other comprehensive loss — (3,238) 1,295 (1,943) Net current-period other comprehensive income/(loss) (45,097) 398 1,295 (43,404) Noncontrolling interest (729) — — (729) Accumulated Other Comprehensive Income/(loss) June 27, 2020, attributable to Darling, net of tax (326,706) $ (5,107) $ (32,709) $ (364,522) |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 27, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Fiscal 2020 Long-Term Incentive Opportunity Awards (2020 LTIP) . On January 6, 2020, the Compensation Committee (the “Committee”) of the Company's Board of Directors adopted the 2020 LTIP pursuant to which they awarded certain of the Company's key employees, 550,934 stock options and 224,481 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 During the first quarter of fiscal 2020, the Company repurchased approximately $55.0 million of its common stock in the open market and no common stock was repurchased in the second quarter of fiscal 2020. As of June 27, 2020, the Company had approximately $125.8 million remaining under the share repurchase program initially approved in August 2017 and subsequently extended to August 13, 2020. On August 3, 2020, the Company’s Board of Directors approved the extension for an additional two |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 27, 2020 | |
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 six months ended June 27, 2020 and June 29, 2019 includes the following components (in thousands): Pension Benefits Pension Benefits Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, Service cost $ 749 $ 683 $ 1,504 $ 1,361 Interest cost 1,430 1,714 2,858 3,424 Expected return on plan assets (2,032) (1,817) (4,071) (3,636) Amortization of prior service cost 8 9 16 18 Amortization of net loss 854 1,147 1,708 2,293 Net pension cost $ 1,009 $ 1,736 $ 2,015 $ 3,460 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 June 27, 2020, the Company expects to contribute approximately $4.8 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 six months ended June 27, 2020 and June 29, 2019 of approximately $2.4 million and $1.5 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. During the second quarter of fiscal 2020, the Company settled one of the withdrawal liabilities for approximately $2.5 million. As of June 27, 2020, the Company has an aggregate accrued liability of approximately $2.8 million representing the present value of scheduled withdrawal liability payments on the remaining multiemployer plans that have given notices of withdrawal. 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 | 6 Months Ended |
Jun. 27, 2020 | |
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 and option contracts are entered into to mitigate the foreign exchange rate risk for transactions designated in a currency other than the local functional currency. At June 27, 2020, 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 fiscal 2019 and fiscal 2020, the Company entered into corn option contracts on the Chicago Board of Trade that are designated as cash flow hedges. Under the terms of the corn option contracts, the Company hedged a portion of its U.S. forecasted sales of BBP into the fourth quarter of fiscal 2021. At June 27, 2020 and December 28, 2019, the aggregate fair value of these corn option contracts was approximately $3.6 million and $0.4 million, respectively. These amounts are included in other current assets and noncurrent assets on the balance sheet, with an offset recorded in accumulated other comprehensive loss. The Company may enter into corn option contracts in the future from time to time. In fiscal 2019 and fiscal 2020, the Company entered into foreign exchange forward and option contracts that are designated as 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 June 27, 2020 and December 28, 2019, the aggregate fair value of these foreign exchange contracts was approximately $0.1 million and $1.3 million, respectively. The June 27, 2020 amounts are included in other current assets, accrued expense and noncurrent assets on the balance sheet, with an offset recorded in accumulated other comprehensive loss. The December 28, 2019 amounts are included in other current assets, accrued expense and noncurrent assets on the balance sheet, with an offset recorded in accumulated other comprehensive loss. As of June 27, 2020, 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 40,217 Euro 6,750 Brazilian real 1,544,422 U.S. dollar 345,911 Euro 48,776 U.S. dollar 54,613 Euro 20,717 Polish zloty 92,000 Euro 7,241 Japanese yen 861,057 Euro 11,026 Chinese renminbi 87,689 Euro 15,266 Australian dollar 24,850 Euro 5,432 British pound 4,832 Euro 33 Canadian dollar 50 Polish zloty 19,707 Euro 4,427 British pound 157 Euro 173 British pound 33 U.S. dollar 41 Japanese yen 20,355 U.S. dollar 190 U.S. dollar 1,132 Japanese yen 121,000 U.S. dollar 49,784 Euro 45,000 Chinese renminbi 2,265 Euro 284 The Company estimates the amount that will be reclassified from accumulated other comprehensive loss at June 27, 2020 into earnings over the next 12 months will be approximately $8.1 million. As of June 27, 2020, 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 six months ended June 27, 2020 and June 29, 2019 (in thousands): Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges Three Months Ended Six Months Ended Derivatives not designated as hedging instruments Location June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Foreign exchange Foreign currency loss $ 1,257 $ (335) $ (38) $ 1,536 Foreign exchange Net sales (107) (234) 623 62 Foreign exchange Cost of sales and operating expenses (170) 151 (1,057) (94) Foreign exchange Selling, general and administrative expense 1,180 (351) 6,904 522 Corn options and futures Net sales 935 (612) 1,790 (262) Corn options and futures Cost of sales and operating expenses (1,245) 1,516 (3,086) 643 Heating oil swaps and options Net sales (38) — (38) — Heating Oil swaps and options Cost of sales and operating expenses — — — (506) Total $ 1,812 $ 135 $ 5,098 $ 1,901 At June 27, 2020, the Company had forward purchase agreements in place for purchases of approximately $32.7 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 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 | 6 Months Ended |
Jun. 27, 2020 | |
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 June 27, 2020 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 June 27, 2020 Using Quoted Prices in Significant Other Significant (In thousands of dollars) Total (Level 1) (Level 2) (Level 3) Assets: Derivative instruments $ 13,592 $ — $ 13,592 $ — Total Assets $ 13,592 $ — $ 13,592 $ — Liabilities: Derivative instruments $ 8,488 $ — $ 8,488 $ — 5.25% Senior notes 511,750 — 511,750 — 3.625% Senior notes 579,797 — 579,797 — Term loan B 487,575 — 487,575 — Revolver debt 9,800 — 9,800 — Total Liabilities $ 1,597,410 $ — $ 1,597,410 $ — Fair Value Measurements at December 28, 2019 Using Quoted Prices in Significant Other Significant (In thousands of dollars) Total (Level 1) (Level 2) (Level 3) Assets: Derivative instruments $ 4,140 $ — $ 4,140 $ — Total Assets $ 4,140 $ — $ 4,140 $ — Liabilities: Derivative instruments $ 1,593 $ — $ 1,593 $ — 5.25% Senior notes 531,850 — 531,850 — 3.625% Senior notes 605,327 — 605,327 — Term loan B 497,475 — 497,475 — Revolver debt 38,805 — 38,805 — Total Liabilities $ 1,675,050 $ — $ 1,675,050 $ — 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) to the Company's Consolidated Financial Statements included herein 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 | 6 Months Ended |
Jun. 27, 2020 | |
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 June 27, 2020 and December 28, 2019, the reserves for insurance, environmental, litigation and tax contingencies reflected on the balance sheet in accrued expenses and other non-current liabilities were approximately $67.5 million and $70.5 million, respectively. The Company has insurance recovery receivables of approximately $26.2 million as of June 27, 2020 and December 28, 2019, 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 conducted a settlement analysis using a third-party allocator. The Company participated 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. In November 2019, the Company received a cash out settlement offer from the EPA in the amount of $0.6 million ($0.3 million for each of the former plant sites in question) for liabilities relating to the lower 8.3 miles of the lower Passaic River area. The Company has accepted this settlement offer, which is now subject to the EPA's administrative approval process, which includes publication and a public comment period. 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. Furthermore, in the event the settlement with the EPA described above is consummated, it could preclude certain of the claims alleged by OCC against the Company. 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. Environmental Enforcement Matter . In February 2020, the Company entered into a Joint Consent Order with the Office of the Attorney General of the State of New Jersey (the “New Jersey AG”) resolving all but the penalty portion of a suit filed by the New Jersey AG in the Superior Court of New Jersey, Essex County, Chancery Division, Docket No. C-188-19, in which the New Jersey AG sought injunctive relief and penalties related to various alleged violations relating to emissions from the Company’s Newark, New Jersey facility. We are currently working with the New Jersey AG to resolve the penalty portion of the claim, which may exceed $100,000. Even though we expect this matter will have no material effect on our financial position, results of operations or liquidity, we are reporting this proceeding to comply with SEC regulations, which require us to disclose certain information about proceedings arising under federal, state, or local provisions regulating the discharge of materials into the environment or protecting the environment if we reasonably believe that such proceedings may result in monetary sanctions of $100,000 or more. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 27, 2020 | |
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 June 27, 2020 Net Sales $ 503,690 $ 278,934 $ 66,049 $ — $ 848,673 Cost of sales and operating expenses 367,902 220,159 44,286 — 632,347 Gross Margin 135,788 58,775 21,763 — 216,326 Loss/(gain) on sale of assets 76 (48) (1) — 27 Selling, general and administrative expenses 50,484 22,564 3,953 13,192 90,193 Depreciation and amortization 52,683 19,972 7,980 2,675 83,310 Equity in net income of Diamond Green Diesel — — 63,492 — 63,492 Segment operating income/(loss) 32,545 16,287 73,323 (15,867) 106,288 Equity in net income of other unconsolidated subsidiaries 692 — — — 692 Segment income/(loss) 33,237 16,287 73,323 (15,867) 106,980 Total other expense (20,539) Income before income taxes $ 86,441 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Three Months Ended June 29, 2019 Net Sales $ 487,447 $ 274,835 $ 65,042 $ — $ 827,324 Cost of sales and operating expenses 376,955 214,444 53,317 — 644,716 Gross Margin 110,492 60,391 11,725 — 182,608 Gain on sale of assets (524) (13,379) (23) — (13,926) Selling, general and administrative expenses 46,465 23,431 425 10,696 81,017 Depreciation and amortization 48,720 19,861 8,362 2,543 79,486 Equity in net income of Diamond Green Diesel — — 38,093 — 38,093 Segment operating income/(loss) 15,831 30,478 41,054 (13,239) 74,124 Equity in net Income of other unconsolidated subsidiaries 82 — — — 82 Segment income/(loss) 15,913 30,478 41,054 (13,239) 74,206 Total other expense (35,386) Income before income taxes $ 38,820 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Six Months Ended June 27, 2020 Net Sales $ 1,016,315 $ 549,228 $ 135,972 $ — $ 1,701,515 Cost of sales and operating expenses 756,355 425,589 97,311 — 1,279,255 Gross Margin 259,960 123,639 38,661 — 422,260 Loss/(gain) on sale of assets 126 (46) 8 — 88 Selling, general and administrative expense 104,431 48,040 5,607 28,308 186,386 Depreciation and amortization 106,204 40,277 16,072 5,428 167,981 Equity in net income of Diamond Green Diesel — — 161,312 — 161,312 Segment operating income/(loss) 49,199 35,368 178,286 (33,736) 229,117 Equity in net income of other unconsolidated subsidiaries 1,561 — — — 1,561 Segment income/(loss) 50,760 35,368 178,286 (33,736) 230,678 Total other expense (39,846) Income before income taxes $ 190,832 Segment assets at June 27, 2020 $ 2,600,884 $ 1,325,739 $ 1,090,623 $ 309,908 $ 5,327,154 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Six Months Ended June 29, 2019 Net Sales $ 983,266 $ 553,999 $ 125,163 $ — $ 1,662,428 Cost of sales and operating expenses 763,814 428,448 103,367 — 1,295,629 Gross Margin 219,452 125,551 21,796 — 366,799 Loss/(gain) on sale of assets (4,914) (13,265) 3 — (18,176) Selling, general and administrative expense 95,296 45,318 (329) 25,735 166,020 Depreciation and amortization 98,089 39,372 16,160 5,029 158,650 Equity in net income of Diamond Green Diesel — — 62,370 — 62,370 Segment operating income/(loss) 30,981 54,126 68,332 (30,764) 122,675 Equity in net loss of other unconsolidated subsidiaries (422) — — — (422) Segment income/(loss) 30,559 54,126 68,332 (30,764) 122,253 Total other expense (58,519) Income before income taxes $ 63,734 Segment assets at December 28, 2019 $ 2,653,363 $ 1,345,526 $ 1,087,701 $ 258,668 $ 5,345,258 |
Revenue (Notes)
Revenue (Notes) | 6 Months Ended |
Jun. 27, 2020 | |
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 and six months ended June 27, 2020 and June 29, 2019 (in thousands): Three Months Ended June 27, 2020 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area North America $ 419,318 $ 58,548 $ 991 $ 478,857 Europe 78,466 157,326 65,058 300,850 China 3,354 45,043 — 48,397 South America — 2,080 — 2,080 Other 2,552 15,937 — 18,489 Net sales $ 503,690 $ 278,934 $ 66,049 $ 848,673 Major product types Fats $ 167,507 $ 31,839 $ — $ 199,346 Used cooking oil 39,007 — — 39,007 Proteins 210,141 — — 210,141 Bakery 37,964 — — 37,964 Other rendering 39,464 — — 39,464 Food ingredients — 223,526 — 223,526 Bioenergy — — 65,058 65,058 Biofuels — — 991 991 Other 9,607 23,569 — 33,176 Net sales $ 503,690 $ 278,934 $ 66,049 $ 848,673 Six Months Ended June 27, 2020 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area North America $ 846,781 $ 104,963 $ 6,391 $ 958,135 Europe 158,909 315,913 129,581 604,403 China 5,777 84,999 — 90,776 South America — 12,666 — 12,666 Other 4,848 30,687 — 35,535 Net sales $ 1,016,315 $ 549,228 $ 135,972 $ 1,701,515 Major product types Fats $ 330,791 $ 65,315 $ — $ 396,106 Used cooking oil 86,615 — — 86,615 Proteins 406,121 — — 406,121 Bakery 85,065 — — 85,065 Other rendering 86,628 — — 86,628 Food ingredients — 438,319 — 438,319 Bioenergy — — 129,581 129,581 Biofuels — — 6,391 6,391 Other 21,095 45,594 — 66,689 Net sales $ 1,016,315 $ 549,228 $ 135,972 $ 1,701,515 Three Months Ended June 29, 2019 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area Revenues North America $ 401,450 $ 54,801 $ 9,644 $ 465,895 Europe 78,857 147,807 55,398 282,062 China 4,953 42,984 — 47,937 South America — 12,121 — 12,121 Other 2,187 17,122 — 19,309 Net sales $ 487,447 $ 274,835 $ 65,042 $ 827,324 Major product types Fats $ 143,542 $ 30,785 $ — $ 174,327 Used cooking oil 45,299 — — 45,299 Proteins 200,385 — — 200,385 Bakery 44,415 — — 44,415 Other rendering 40,883 — — 40,883 Food ingredients — 223,236 — 223,236 Bioenergy — — 55,398 55,398 Biofuels — — 9,644 9,644 Other 12,923 20,814 — 33,737 Net sales $ 487,447 $ 274,835 $ 65,042 $ 827,324 Six Months Ended June 29, 2019 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area Revenues North America $ 811,687 $ 103,614 $ 15,354 $ 930,655 Europe 158,855 299,459 109,809 568,123 China 7,905 89,921 — 97,826 South America — 24,790 — 24,790 Other 4,819 36,215 — 41,034 Net sales $ 983,266 $ 553,999 $ 125,163 $ 1,662,428 Major product types Fats $ 288,418 $ 65,923 $ — $ 354,341 Used cooking oil 90,705 — — 90,705 Proteins 406,198 — — 406,198 Bakery 90,071 — — 90,071 Other rendering 82,137 — — 82,137 Food ingredients — 445,144 — 445,144 Bioenergy — — 109,809 109,809 Biofuels — — 15,354 15,354 Other 25,737 42,932 — 68,669 Net sales $ 983,266 $ 553,999 $ 125,163 $ 1,662,428 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. It 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 2020 under these long-term supply contracts was approximately $16.6 million, with the remaining performance obligations to be recognized in future periods (generally 3 years) of approximately $204.9 million. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 27, 2020 | |
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 June 27, 2020 and June 29, 2019, the Company has recorded sales to the DGD Joint Venture of approximately $72.3 million and $51.0 million, respectively. For the six months ended June 27, 2020 and June 29, 2019, the Company has recorded sales to the DGD Joint Venture of approximately $134.4 million and $102.2 million, respectively. At June 27, 2020 and December 28, 2019, the Company has $13.7 million and $17.8 million in outstanding receivables due from the DGD Joint Venture, respectively. In addition, the Company has eliminated approximately $8.6 million and $7.8 million of additional sales for the three months ended June 27, 2020 and June 29, 2019, respectively to defer the Company's portion of profit of approximately $1.7 million and $1.4 million on those sales relating to inventory assets remaining on the DGD Joint Venture's balance sheet at June 27, 2020 and June 29, 2019, respectively. 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, 2021, unless extended by agreement of the parties. As of June 27, 2020, no amounts are owed to Darling Green under the DGD Loan Agreement. Guarantee Agreement In February 2020, in connection with the DGD Joint Venture’s expansion project at its Norco, LA facility, it has entered into two agreements (the “IMTT Terminaling Agreements”) with International-Matex Tank Terminals (“IMTT”), pursuant to which the DGD Joint Venture will move raw material and finished product to and from the IMTT terminal facility by pipeline, thereby providing better logistical capabilities. As a condition to entering into the IMTT Terminaling Agreements, IMTT required that the Company and Valero guarantee their proportionate share, up to $50 million each, of the DGD Joint Venture’s obligations under the IMTT Terminaling Agreements (the “ Guarantee ”), subject to the conditions provided for in the IMTT Terminaling Agreements. The Company has not recorded any liability as a result of the Guarantee, as the Company believes the likelihood of having to make any payments under the Guarantee is remote. |
New Accounting Pronoucements
New Accounting Pronoucements | 6 Months Ended |
Jun. 27, 2020 | |
New Accounting Pronoucements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform Topic 848, Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The update provides optional guidance for a limited period of time to ease the potential burden in accounting for (or reorganizing the effects of) contract modifications on financial reporting, caused by reference rate reform. This ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The adoption of this ASU in the first quarter of fiscal 2020 did not have a material impact on the Company's consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes. This ASU amends Topic 740 Income Taxes, which eliminates certain exceptions in accounting for income taxes, improves consistency in application and clarifies existing guidance. The standard is effective for fiscal years beginning 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. 2018-14, 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. While the adoption of this standard will impact the Company's disclosure, the Company does not expect it will materially impact the Company's consolidated financial statements. 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 adoption of this ASU at the beginning of fiscal year 2020 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 adoption of this ASU at the beginning of fiscal 2020 did not have a material impact on the Company's consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Under ASU 2016-13, existing guidance on reporting credit losses for trade and other receivables and available for sale debt securities will be replaced with a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. This ASU is effective for fiscal years beginning after December 15, 2019 and interim periods therein. The initial adoption of this ASU at the beginning of fiscal year 2020 did not have a material impact on the Company's consolidated financial statements. |
Guarantor Financial Information
Guarantor Financial Information | 6 Months Ended |
Jun. 27, 2020 | |
Guarantor Financial Information [Abstract] | |
Guarantor Financial Information | Guarantor Financial InformationThe Company's 5.25% Notes and 3.625% Notes (see Note 10 (Debt) to the Company's Consolidated Financial Statements included herein) 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 LLC, Griffin Industries LLC and its subsidiary Craig Protein Division, Inc., Darling Global Holdings Inc., 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 June 27, 2020 and December 28, 2019, 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 six months ended June 27, 2020 and June 29, 2019. 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 June 27, 2020 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated ASSETS Cash and cash equivalents $ 968 $ 25 $ 75,192 $ — $ 76,185 Restricted cash 103 — — — 103 Accounts receivable 45,605 694,352 642,619 (1,006,668) 375,908 Inventories 21,711 96,458 276,539 — 394,708 Income taxes refundable 1,322 — 2,430 — 3,752 Prepaid expenses 18,001 3,316 24,686 — 46,003 Other current assets 7,528 (3,720) 44,049 (13,465) 34,392 Total current assets 95,238 790,431 1,065,515 (1,020,133) 931,051 Investment in subsidiaries 5,602,453 1,283,699 844,045 (7,730,197) — Property, plant and equipment, net 432,057 518,120 823,152 — 1,773,329 Intangible assets, net 41,583 155,546 288,019 — 485,148 Goodwill 49,902 490,748 676,527 — 1,217,177 Investment in unconsolidated subsidiaries — — 729,094 — 729,094 Operating lease right-of-use asset 79,306 29,662 25,933 — 134,901 Other assets 34,704 134 57,258 (50,445) 41,651 Deferred taxes — — 14,803 — 14,803 $ 6,335,243 $ 3,268,340 $ 4,524,346 $ (8,800,775) $ 5,327,154 LIABILITIES AND STOCKHOLDERS’ EQUITY Current portion of long-term debt $ 20,315 $ 11 $ 35,897 $ (13,465) $ 42,758 Accounts payable 1,033,477 19,961 150,752 (1,006,662) 197,528 Income taxes payable 2,882 — 13,592 — 16,474 Current operating lease liability 20,873 10,520 8,139 — 39,532 Accrued expenses 93,432 26,689 189,889 (6) 310,004 Total current liabilities 1,170,979 57,181 398,269 (1,020,133) 606,296 Long-term debt, net of current portion 1,032,352 25 571,186 (50,445) 1,553,118 Long-term operating lease liability 63,948 18,767 16,767 — 99,482 Other noncurrent liabilities 75,902 — 33,144 — 109,046 Deferred income taxes 142,606 — 118,252 — 260,858 Total liabilities 2,485,787 75,973 1,137,618 (1,070,578) 2,628,800 Total stockholders’ equity 3,849,456 3,192,367 3,386,728 (7,730,197) 2,698,354 $ 6,335,243 $ 3,268,340 $ 4,524,346 $ (8,800,775) $ 5,327,154 Condensed Consolidated Balance Sheet As of December 28, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated ASSETS Cash and cash equivalents $ 551 $ 26 $ 72,358 $ — $ 72,935 Restricted cash 103 — 7 — 110 Accounts receivable 51,097 702,945 518,614 (866,318) 406,338 Inventories 26,893 86,609 249,455 — 362,957 Income taxes refundable 1,106 — 2,211 — 3,317 Prepaid expenses 20,888 2,241 23,470 — 46,599 Other current assets 5,399 (2,326) 40,872 (18,913) 25,032 Total current assets 106,037 789,495 906,987 (885,231) 917,288 Investment in subsidiaries 5,365,956 1,366,635 844,043 (7,576,634) — Property, plant and equipment, net 434,237 524,577 843,597 — 1,802,411 Intangible assets, net 44,404 170,581 311,409 — 526,394 Goodwill 49,902 490,748 682,641 — 1,223,291 Investment in unconsolidated subsidiary — — 689,354 — 689,354 Operating lease right-of-use asset 74,005 31,243 19,478 — 124,726 Other assets 35,456 134 61,974 (50,164) 47,400 Deferred income taxes — — 14,394 — 14,394 $ 6,109,997 $ 3,373,413 $ 4,373,877 $ (8,512,029) $ 5,345,258 LIABILITIES AND STOCKHOLDERS’ EQUITY Current portion of long-term debt $ 40,916 $ 10 $ 68,983 $ (18,913) $ 90,996 Accounts payable 893,490 29,535 182,484 (866,257) 239,252 Income taxes payable (10) — 8,905 — 8,895 Current operating lease liability 20,454 10,510 6,841 — 37,805 Accrued expenses 116,758 32,861 161,833 (61) 311,391 Total current liabilities 1,071,608 72,916 429,046 (885,231) 688,339 Long-term debt, net of current portion 1,040,974 30 567,589 (50,164) 1,558,429 Long-term operating lease liability 58,970 20,281 12,173 — 91,424 Other noncurrent liabilities 80,409 — 35,376 — 115,785 Deferred income taxes 122,109 — 125,822 — 247,931 Total liabilities 2,374,070 93,227 1,170,006 (935,395) 2,701,908 Total stockholders’ equity 3,735,927 3,280,186 3,203,871 (7,576,634) 2,643,350 $ 6,109,997 $ 3,373,413 $ 4,373,877 $ (8,512,029) $ 5,345,258 Condensed Consolidated Statements of Operations For the three months ended June 27, 2020 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 185,915 $ 310,650 $ 404,358 $ (52,250) $ 848,673 Cost and expenses: Cost of sales and operating expenses 140,742 245,968 297,887 (52,250) 632,347 Loss/(gain) on sale of assets 76 (8) (41) — 27 Selling, general and administrative expenses 44,937 11,024 34,232 — 90,193 Depreciation and amortization 16,989 26,223 40,098 — 83,310 Total costs and expenses 202,744 283,207 372,176 (52,250) 805,877 Equity in net income of Diamond Green Diesel — — 63,492 — 63,492 Operating income/(loss) (16,829) 27,443 95,674 — 106,288 Interest expense (12,451) (44) (5,425) — (17,920) Foreign currency gains/(losses) (184) (1) (949) — (1,134) Other income/(expense), net (1,200) (290) 5 — (1,485) Equity in net income of other unconsolidated subsidiaries — — 692 — 692 Earnings in investments in subsidiaries 88,848 — — (88,848) — Income/(loss) before taxes 58,184 27,108 89,997 (88,848) 86,441 Income tax expense/(benefit) (7,255) 6,045 21,156 — 19,946 Net income attributable to noncontrolling interests — — (1,056) — (1,056) Net income/(loss) attributable to Darling $ 65,439 $ 21,063 $ 67,785 $ (88,848) $ 65,439 Condensed Consolidated Statements of Operations For the six months ended June 27, 2020 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 366,834 $ 620,951 $ 809,383 $ (95,653) $ 1,701,515 Cost and expenses: Cost of sales and operating expenses 284,884 492,288 597,736 (95,653) 1,279,255 Loss/(gain) on sale of assets 38 55 (5) — 88 Selling, general and administrative expenses 93,011 23,541 69,834 — 186,386 Depreciation and amortization 34,261 52,816 80,904 — 167,981 Total costs and expenses 412,194 568,700 748,469 (95,653) 1,633,710 Equity in net income of Diamond Green Diesel — — 161,312 — 161,312 Operating income/(loss) (45,360) 52,251 222,226 — 229,117 Interest expense (26,226) (102) (10,682) — (37,010) Foreign currency losses (510) (25) 1,065 — 530 Other income/(expense), net (2,740) (629) 3 — (3,366) Equity in net income of other unconsolidated subsidiaries — — 1,561 — 1,561 Earnings in investments in subsidiaries 210,787 — — (210,787) — Income/(loss) before taxes 135,951 51,495 214,173 (210,787) 190,832 Income tax expense/(benefit) (14,998) 10,320 42,924 — 38,246 Net income attributable to noncontrolling interests — — (1,637) — (1,637) Net income/(loss) attributable to Darling $ 150,949 $ 41,175 $ 169,612 $ (210,787) $ 150,949 Condensed Consolidated Statements of Operations For the three months ended June 29, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 156,927 $ 325,744 $ 399,339 $ (54,686) $ 827,324 Cost and expenses: Cost of sales and operating expenses 125,586 268,582 305,234 (54,686) 644,716 Loss (gain) on sale of assets (26) (511) (13,389) — (13,926) Selling, general and administrative expenses 40,570 10,776 29,671 — 81,017 Depreciation and amortization 14,224 25,165 40,097 — 79,486 Total costs and expenses 180,354 304,012 361,613 (54,686) 791,293 Equity in net income of Diamond Green Diesel — — 38,093 — 38,093 Operating income/(loss) (23,427) 21,732 75,819 — 74,124 Interest expense (15,078) (24) (5,751) — (20,853) Debt extinguishment costs (12,126) — — — (12,126) Foreign currency gains/(losses) 3 1 (392) — (388) Other income/(expense), net (1,285) (764) 30 — (2,019) Equity in net income/(loss) of other unconsolidated subsidiaries (1,027) — 1,109 — 82 Earnings in investments in subsidiaries 68,680 — — (68,680) — Income/(loss) before taxes 15,740 20,945 70,815 (68,680) 38,820 Income tax expense/(benefit) (10,518) 4,126 14,168 — 7,776 Net income attributable to noncontrolling interests — — (4,786) — (4,786) Net income/(loss) attributable to Darling $ 26,258 $ 16,819 $ 51,861 $ (68,680) $ 26,258 Condensed Consolidated Statements of Operations For the six months ended June 29, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 317,157 $ 655,735 $ 803,250 $ (113,714) $ 1,662,428 Cost and expenses: Cost of sales and operating expenses 253,910 540,253 615,180 (113,714) 1,295,629 Loss (gain) on sale of assets 42 (4,988) (13,230) — (18,176) Selling, general and administrative expenses 87,993 22,723 55,304 — 166,020 Depreciation and amortization 28,597 51,277 78,776 — 158,650 Total costs and expenses 370,542 609,265 736,030 (113,714) 1,602,123 Equity in net income of Diamond Green Diesel — — 62,370 — 62,370 Operating income/(loss) (53,385) 46,470 129,590 — 122,675 Interest expense (29,105) (56) (11,568) — (40,729) Debt extinguishment costs (12,126) — — — (12,126) Foreign currency gains/(losses) (1) 1 (1,120) — (1,120) Other income/(expense), net (2,852) (1,976) 284 — (4,544) Equity in net income/(loss) of other unconsolidated subsidiaries (1,918) — 1,496 — (422) Earnings in investments in subsidiaries 123,307 — — (123,307) — Income/(loss) before taxes 23,920 44,439 118,682 (123,307) 63,734 Income tax expense/(benefit) (20,350) 9,099 24,301 — 13,050 Net income attributable to noncontrolling interests — — (6,414) — (6,414) Net income/(loss) attributable to Darling $ 44,270 $ 35,340 $ 87,967 $ (123,307) $ 44,270 Condensed Consolidated Statements of Comprehensive Income/(Loss) For the three months ended June 27, 2020 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income/(loss) $ 66,495 $ 21,063 $ 67,785 $ (88,848) $ 66,495 Other comprehensive income/(loss), net of tax: Foreign currency translation (1,364) — 21,503 — 20,139 Pension adjustments 518 — 129 — 647 Corn option derivative adjustments 1,804 — — — 1,804 Heating oil derivative adjustments — — (8,940) — (8,940) Foreign exchange derivative adjustments — — 5,679 — 5,679 Total other comprehensive income/(loss), net of tax 958 — 18,371 — 19,329 Total comprehensive income/(loss) 67,453 21,063 86,156 (88,848) 85,824 Total comprehensive loss attributable to noncontrolling interest — — 416 — 416 Total comprehensive income/(loss) attributable to Darling $ 67,453 $ 21,063 $ 85,740 $ (88,848) $ 85,408 Condensed Consolidated Statements of Comprehensive Income/(Loss) For the six months ended June 27, 2020 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income/(loss) $ 152,586 $ 41,175 $ 169,612 $ (210,787) $ 152,586 Other comprehensive income/ (loss), net of tax: Foreign currency translation (713) (128,994) 84,610 — (45,097) Pension adjustments 1,036 — 259 — 1,295 Corn option derivative adjustments 1,940 — — — 1,940 Heating oil derivative adjustments — — 1,930 — 1,930 Foreign exchange derivative adjustments — — (3,472) — (3,472) Total other comprehensive income/(loss), net of tax 2,263 (128,994) 83,327 — (43,404) Total comprehensive income/(loss) 154,849 (87,819) 252,939 (210,787) 109,182 Total comprehensive income attributable to noncontrolling interest — — 908 — 908 Total comprehensive income/(loss) attributable to Darling $ 154,849 $ (87,819) $ 252,031 $ (210,787) $ 108,274 Condensed Consolidated Statements of Comprehensive Income/(Loss) For the three months ended June 29, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income/(loss) $ 31,044 $ 16,819 $ 51,861 $ (68,680) $ 31,044 Other comprehensive income/(loss), net of tax: Foreign currency translation (326) — 16,652 — 16,326 Pension adjustments 766 — 93 — 859 Corn option derivative adjustments 22 — — — 22 Heating oil derivative adjustments — — 2,133 — 2,133 Foreign exchange derivative adjustment — — 1,451 — 1,451 Total other comprehensive income/(loss), net of tax 462 — 20,329 — 20,791 Total comprehensive income/(loss) 31,506 16,819 72,190 (68,680) 51,835 Total comprehensive income attributable to noncontrolling interest — — 3,315 — 3,315 Total comprehensive income/(loss) attributable to Darling $ 31,506 $ 16,819 $ 68,875 $ (68,680) $ 48,520 Condensed Consolidated Statements of Comprehensive Income/(Loss) For the six months ended June 29, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income/(loss) $ 50,684 $ 35,340 $ 87,967 $ (123,307) $ 50,684 Other comprehensive income/(loss), net of tax: Foreign currency translation 181 — 11,259 — 11,440 Pension adjustments 1,533 — 184 — 1,717 Corn option derivative adjustments 22 — — — 22 Heating oil derivative adjustments — — 2,133 — 2,133 Foreign exchange derivative adjustments — — (486) — (486) Total other comprehensive income, net of tax 1,736 — 13,090 — 14,826 Total comprehensive income/(loss) 52,420 35,340 101,057 (123,307) 65,510 Total comprehensive loss attributable to noncontrolling interest — — 6,702 — 6,702 Total comprehensive income/(loss) attributable to Darling $ 52,420 $ 35,340 $ 94,355 $ (123,307) $ 58,808 Condensed Consolidated Statements of Cash Flows For the six months ended June 27, 2020 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Cash flows from operating activities: Net income/(loss) $ 152,586 $ 41,175 $ 169,612 $ (210,787) $ 152,586 Earnings in investments in subsidiaries (210,787) — — 210,787 — Other operating cash flows 198,633 (7,774) (79,796) — 111,063 Net cash provided/(used) by operating activities 140,432 33,401 89,816 — 263,649 Cash flows from investing activities: Capital expenditures (28,661) (33,673) (60,870) — (123,204) Investment in subsidiaries and affiliates (17,534) — — 17,534 — Gross proceeds from sale of property, plant and equipment and other assets 30 275 748 — 1,053 Payments related to routes and other intangibles (3,416) — (296) — (3,712) Net cash provided/(used) in investing activities (49,581) (33,398) (60,418) 17,534 (125,863) Cash flows from financing activities: Proceeds for long-term debt — — 16,164 — 16,164 Payments on long-term debt (2) (4) (18,233) — (18,239) Borrowings from revolving facilities 233,000 — 142,971 — 375,971 Payments on revolving facilities (262,000) — (143,800) — (405,800) Net cash overdraft financing (1,604) — (24,857) — (26,461) Issuances of common stock 67 — — — 67 Repurchase of treasury stock (55,044) — — — (55,044) Contributions from parent — — 17,534 (17,534) — Minimum withholding taxes paid on stock awards (4,851) — (12) — (4,863) Acquisition of noncontrolling interest — — (8,784) — (8,784) Distributions to noncontrolling interests — — (987) — (987) Net cash provided/(used) in financing activities (90,434) (4) (20,004) (17,534) (127,976) Effect of exchange rate changes on cash — — (6,567) — (6,567) Net increase/(decrease) in cash, cash equivalents and restricted cash 417 (1) 2,827 — 3,243 Cash, cash equivalents and restricted cash at beginning of period 654 26 72,365 — 73,045 Cash, cash equivalents and restricted cash at end of period $ 1,071 $ 25 $ 75,192 $ — $ 76,288 Condensed Consolidated Statements of Cash Flows For the six months ended June 29, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Cash flows from operating activities: Net income/(loss) $ 50,684 $ 35,340 $ 87,967 $ (123,307) $ 50,684 Earnings in investments in subsidiaries (123,307) — — 123,307 — Other operating cash flows 116,433 884 (13,697) — 103,620 Net cash provided/(used) by operating activities 43,810 36,224 74,270 — 154,304 Cash flows from investing activities: Capital expenditures (63,517) (44,720) (59,634) — (167,871) Acquisitions (1,157) — (274) — (1,431) Investment in subsidiaries and affiliates (1,393) (393) — 786 (1,000) Gross proceeds from sale of property, plant and equipment and other assets 250 7,654 1,910 — 9,814 Proceeds from insurance settlements — 845 — — 845 Payments related to routes and other intangibles (131) — (3,019) — (3,150) Net cash provided/(used) by in investing activities (65,948) (36,614) (61,017) 786 (162,793) Cash flows from financing activities: Proceeds for long-term debt 500,000 — 7,722 — 507,722 Payments on long-term debt (507,622) (3) (18,605) — (526,230) Borrowings from revolving credit facility 134,000 — 139,485 — 273,485 Payments on revolving credit facility (96,000) — (170,884) — (266,884) Net cash overdraft financing 4,510 — 6,668 — 11,178 Deferred loan costs (7,003) — — — (7,003) Issuances of common stock 12 — — — 12 Contributions from parent — 393 393 (786) — Minimum withholding taxes paid on stock awards (3,192) — (1) — (3,193) Net cash provided/(used) by financing activities 24,705 390 (35,222) (786) (10,913) Effect of exchange rate changes on cash — — (853) — (853) Net increase/(decrease) in cash, cash equivalents and restricted cash 2,567 — (22,822) — (20,255) 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 $ 3,665 $ 32 $ 83,417 $ — $ 87,114 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 27, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe 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 intercompany balances and transactions have been eliminated in consolidation. |
Fiscal Periods | Fiscal PeriodsThe 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 June 27, 2020, and include the 13 and 26 weeks ended June 27, 2020, and the 13 and 26 weeks ended June 29, 2019. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted CashThe Company considers all short-term highly liquid instruments, with an original maturity of three months or less, to be cash equivalents. Cash balances are recorded net of book overdrafts when a bank right-of-offset exists. All other book overdrafts are recorded in accounts payable and the change in the related balance is reflected in operating activities on the Consolidated Statement of Cash Flows. In addition, the Company has bank overdrafts, which are considered a form of short-term financing with changes in the related balance reflected in financing activities in the Consolidated Statement of Cash Flows. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful AccountsThe 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 adjusted for differences in asset-specific risk characteristic, current economic conditions, and forecasts of future economic conditions. If the financial condition of the Company’s customers deteriorates, resulting in the customers’ inability to pay the Company’s receivables as they come due, additional allowances for doubtful accounts may be required. |
Revenue Recognition | Revenue RecognitionThe 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. |
Income Taxes | The Company has provided income taxes for the three and six month periods ended June 27, 2020 and June 29, 2019, based on its estimate of the effective tax rate for the entire 2020 and 2019 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 RemeasurementForeign 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/(losses) in determining net income. |
Leases | LeasesThe 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. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. If it is at least reasonably possible that the estimate of the effect on the financial statements of a condition, situation, or set of circumstances that exist at the date of the financial statements will change in the near term due to one or more future confirming events, and the effect of the change would be material to the financial statements, the Company will disclose the nature of the uncertainty and include an indication that it is at least reasonably possible that a change in the estimate will occur in the near term. If the estimate involves certain loss contingencies, the disclosure will also include an estimate of the probable loss or range of loss or state that an estimate cannot be made. |
Reclassifications | 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 of Diamond Green Diesel to operating income. See Note 3 (Investment in Unconsolidated Subsidiaries) to the Company's Consolidated Financial Statements included herein for further discussion. |
Earnings Per Share | Earnings Per ShareBasic 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) | 6 Months Ended |
Jun. 27, 2020 | |
Accounting Policies [Abstract] | |
Net Income per Common Share | Basic income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares including non-vested and restricted shares outstanding during the period. Diluted income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares outstanding during the period increased by dilutive common equivalent shares determined using the treasury stock method. Net Income per Common Share (in thousands, except per share data) Three Months Ended June 27, 2020 June 29, 2019 Income Shares Per Share Income Shares Per Share Basic: Net Income attributable to Darling $ 65,439 162,154 $ 0.40 $ 26,258 164,935 $ 0.16 Diluted: Effect of dilutive securities: Add: Option shares in the money and dilutive effect of non-vested stock awards 5,882 5,801 Less: Pro forma treasury shares (2,037) (2,304) Diluted: Net income attributable to Darling $ 65,439 165,999 $ 0.39 $ 26,258 168,432 $ 0.16 Net Income per Common Share (in thousands, except per share data) Six Months Ended June 27, 2020 June 29, 2019 Income Shares Per Share Income Shares Per Share Basic: Net Income attributable to Darling $ 150,949 162,814 $ 0.93 $ 44,270 164,895 $ 0.27 Diluted: Effect of dilutive securities: Add: Option shares in the money and dilutive effect of non-vested stock awards 6,315 5,964 Less: Pro forma treasury shares (2,166) (2,313) Diluted: Net income attributable to Darling $ 150,949 166,963 $ 0.90 $ 44,270 168,546 $ 0.26 |
Investment in Unconsolidated _2
Investment in Unconsolidated Subsidiary (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
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) June 30, 2020 December 31, 2019 Assets: Total current assets $ 581,334 $ 668,026 Property, plant and equipment, net 894,415 713,489 Other assets 27,959 30,710 Total assets $ 1,503,708 $ 1,412,225 Liabilities and members' equity: Total current portion of long term debt $ 495 $ 341 Total other current liabilities 89,533 75,802 Total long term debt 8,969 8,742 Total other long term liabilities 4,023 4,422 Total members' equity 1,400,688 1,322,918 Total liabilities and members' equity $ 1,503,708 $ 1,412,225 Three Months Ended Six Months Ended (in thousands) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Revenues: Operating revenues $ 295,826 $ 294,811 $ 654,441 $ 597,529 Expenses: Total costs and expenses less depreciation, amortization and accretion expense 157,611 207,024 308,958 450,087 Depreciation, amortization and accretion expense 11,114 11,914 22,888 23,332 Total costs and expenses 168,725 218,938 331,846 473,419 Operating income 127,101 75,873 322,595 124,110 Other income 200 634 661 1,275 Interest and debt expense, net (317) (321) (632) (645) Net income $ 126,984 $ 76,186 $ 322,624 $ 124,740 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | A summary of inventories follows (in thousands): June 27, 2020 December 28, 2019 Finished product $ 223,792 $ 199,799 Work in process 91,136 81,841 Raw material 37,663 41,964 Supplies and other 42,117 39,353 $ 394,708 $ 362,957 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
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): June 27, 2020 December 28, 2019 Indefinite Lived Intangible Assets Trade names $ 52,878 $ 52,733 52,878 52,733 Finite Lived Intangible Assets: Routes 368,558 382,263 Permits 477,916 483,593 Non-compete agreements 3,110 3,840 Trade names 65,670 65,670 Royalty, consulting, land use rights and leasehold 24,291 20,737 939,545 956,103 Accumulated Amortization: Routes (175,721) (169,050) Permits (286,960) (272,213) Non-compete agreements (2,624) (3,111) Trade names (36,165) (32,890) Royalty, consulting, land use rights and leasehold (5,805) (5,178) (507,275) (482,442) Total Intangible assets, less accumulated amortization $ 485,148 $ 526,394 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
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 28, 2019 Goodwill $ 793,457 $ 329,654 $ 116,555 $ 1,239,666 Accumulated impairment losses (15,914) (461) — (16,375) 777,543 329,193 116,555 1,223,291 Foreign currency translation (6,458) 1,132 (788) (6,114) Balance at June 27, 2020 Goodwill 786,999 330,786 115,767 1,233,552 Accumulated impairment losses (15,914) (461) — (16,375) $ 771,085 $ 330,325 $ 115,767 $ 1,217,177 |
Accrued Expense (Tables)
Accrued Expense (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following (in thousands): June 27, 2020 December 28, 2019 Compensation and benefits $ 95,224 $ 107,324 Accrued ad valorem, and franchise taxes 34,859 30,231 Accrued operating expenses 63,116 67,194 Other accrued expense 116,805 106,642 $ 310,004 $ 311,391 |
(Tables)
(Tables) | 6 Months Ended |
Jun. 27, 2020 | |
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 Six Months Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Operating lease expense $ 11,785 $ 12,511 $ 23,294 $ 24,828 Short-term lease costs 5,581 2,697 11,826 5,750 Total lease cost $ 17,366 $ 15,208 35,120 30,578 Other information (in thousands, except lease terms and discount rates): Six Months Ended June 27, 2020 June 29, 2019 Cash paid for amounts included in the measurement lease liabilities Operating cash flows from operating leases $ 25,282 $ 24,980 June 27, 2020 December 28, 2019 Operating right-of-use assets, net $ 134,901 $ 124,726 Operating lease liability, current $ 39,532 $ 37,805 Operating lease liability, non-current 99,482 91,424 Total operating lease liabilities $ 139,014 $ 129,229 Weighted average remaining lease term - operating leases 6.27 years 6.50 years Weighted average discount rate - operating leases 4.45 % 4.71 % |
Maturities of Operating Lease Liabilities | Future annual minimum lease payments and capital lease commitments as of June 27, 2020 are as follows (in thousands): Period Ending Fiscal Operating Leases Capital Leases 2020 (excluding the six months ended June 27, 2020) $ 23,791 $ 73 2021 37,458 16 2022 26,870 16 2023 22,183 10 2024 16,170 8 Thereafter 27,160 1 $ 153,632 $ 124 Less amounts representing interest $ (14,618) (6) Lease obligations included in current and long-term liabilities $ 139,014 $ 118 |
Maturities of Financing Lease Liabilities | Future annual minimum lease payments and capital lease commitments as of June 27, 2020 are as follows (in thousands): Period Ending Fiscal Operating Leases Capital Leases 2020 (excluding the six months ended June 27, 2020) $ 23,791 $ 73 2021 37,458 16 2022 26,870 16 2023 22,183 10 2024 16,170 8 Thereafter 27,160 1 $ 153,632 $ 124 Less amounts representing interest $ (14,618) (6) Lease obligations included in current and long-term liabilities $ 139,014 $ 118 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consists of the following (in thousands): June 27, 2020 December 28, 2019 Amended Credit Agreement: Revolving Credit Facility $ 10,000 $ 39,000 Term Loan B 495,000 495,000 Less unamortized deferred loan costs (6,983) (7,696) Carrying value Term Loan B 488,017 487,304 5.25% Senior Notes due 2027 with effective interest of 5.47% 500,000 500,000 Less unamortized deferred loan costs (6,126) (6,494) Carrying value 5.25% Senior Notes due 2027 493,874 493,506 3.625% Senior Notes due 2026 - Denominated in euro with effective interest of 3.83% 577,315 574,096 Less unamortized deferred loan costs - Denominated in euro (6,530) (6,982) Carrying value 3.625% Senior Notes due 2026 570,785 567,114 Other Notes and Obligations 33,200 62,501 1,595,876 1,649,425 Less Current Maturities 42,758 90,996 $ 1,553,118 $ 1,558,429 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Equity [Abstract] | |
Schedule of Comprehensive Income (Loss) | The components of other comprehensive income/(loss) and the related tax impacts for the three and six months ended June 27, 2020 and June 29, 2019 are as follows (in thousands): Three Months Ended Before-Tax Tax (Expense) Net-of-Tax Amount or Benefit Amount June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Defined benefit pension plans Amortization of prior service (cost)/benefit $ 8 $ 9 $ (2) $ (2) $ 6 $ 7 Amortization of actuarial loss 854 1,147 (213) (295) 641 852 Total defined benefit pension plans 862 1,156 (215) (297) 647 859 Corn option derivatives Gain/(loss) reclassified to net income 639 (37) (160) 10 479 (27) Gain/(loss) activity recognized in other comprehensive income/(loss) 1,768 67 (443) (18) 1,325 49 Total corn option derivatives 2,407 30 (603) (8) 1,804 22 Heating oil derivatives Gain/(loss) activity recognized in other comprehensive income/(loss) (11,921) 2,874 2,981 (741) (8,940) 2,133 Total heating oil derivatives (11,921) 2,874 2,981 (741) (8,940) 2,133 Foreign exchange derivatives Gain/(loss) reclassified to net income (4,835) 287 1,176 (111) (3,659) 176 Gain/(loss) activity recognized in other comprehensive income/(loss) 13,546 1,854 (4,208) (579) 9,338 1,275 Total foreign exchange derivatives 8,711 2,141 (3,032) (690) 5,679 1,451 Foreign currency translation 20,852 16,652 (713) (326) 20,139 16,326 Other comprehensive income/(loss) $ 20,911 $ 22,853 $ (1,582) $ (2,062) $ 19,329 $ 20,791 Six Months Ended Before-Tax Tax (Expense) Net-of-Tax Amount or Benefit Amount June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Defined benefit pension plans Amortization of prior service (cost)/benefit $ 16 $ 18 $ (4) $ (5) $ 12 $ 13 Amortization of actuarial loss 1,708 2,293 (425) (589) 1,283 1,704 Total defined benefit pension plans 1,724 2,311 (429) (594) 1,295 1,717 Corn option derivatives Gain/(loss) reclassified to net income 939 (37) (235) 10 704 (27) Gain/(loss) activity recognized in other comprehensive income/(loss) 1,649 67 (413) (18) 1,236 49 Total corn option derivatives 2,588 30 (648) (8) 1,940 22 Heating oil derivatives Gain/(loss) activity recognized in other comprehensive income/(loss) 2,573 2,874 (643) (741) 1,930 2,133 Total heating oil derivatives 2,573 2,874 (643) (741) 1,930 2,133 Foreign exchange derivatives Gain/(loss) reclassified to net income (5,247) 287 1,305 (111) (3,942) 176 Gain/(loss) activity recognized in other comprehensive income/(loss) 626 (1,080) (156) 418 470 (662) Total foreign exchange derivatives (4,621) (793) 1,149 307 (3,472) (486) Foreign currency translation (45,035) 11,259 (62) 181 (45,097) 11,440 Other comprehensive income/(loss) $ (42,771) $ 15,681 $ (633) $ (855) $ (43,404) $ 14,826 |
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 six months ended June 27, 2020 and June 29, 2019 as follows (in thousands): Three Months Ended Six Months Ended June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Statement of Operations Classification Derivative instruments Foreign exchange contracts $ 4,835 $ (287) $ 5,247 $ (287) Net sales Corn option derivatives (639) 37 (939) 37 Cost of sales and operating expenses 4,196 (250) 4,308 (250) Total before tax (1,016) 101 (1,070) 101 Income taxes 3,180 (149) 3,238 (149) Net of tax Defined benefit pension plans Amortization of prior service cost $ (8) $ (9) $ (16) $ (18) (a) Amortization of actuarial loss (854) (1,147) (1,708) (2,293) (a) (862) (1,156) (1,724) (2,311) Total before tax 215 297 429 594 Income taxes (647) (859) (1,295) (1,717) Net of tax Total reclassifications $ 2,533 $ (1,008) $ 1,943 $ (1,866) Net of tax (a) These items are included in the computation of net periodic pension cost. See Note 14 (Employee Benefit Plans) to the Company's Consolidated Financial Statement included herein 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 June 27, 2020 as follows (in thousands): Six Months Ended June 27, 2020 Foreign Currency Derivative Defined Benefit Translation Instruments Pension Plans Total Accumulated Other Comprehensive Income/(loss) December 28, 2019, attributable to Darling, net of tax $ (282,338) $ (5,505) $ (34,004) $ (321,847) Other comprehensive loss before reclassifications (45,097) 3,636 — (41,461) Amounts reclassified from accumulated other comprehensive loss — (3,238) 1,295 (1,943) Net current-period other comprehensive income/(loss) (45,097) 398 1,295 (43,404) Noncontrolling interest (729) — — (729) Accumulated Other Comprehensive Income/(loss) June 27, 2020, attributable to Darling, net of tax (326,706) $ (5,107) $ (32,709) $ (364,522) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Retirement Benefits [Abstract] | |
Net pension cost | Net pension cost for the three and six months ended June 27, 2020 and June 29, 2019 includes the following components (in thousands): Pension Benefits Pension Benefits Three Months Ended Six Months Ended June 27, June 29, June 27, June 29, Service cost $ 749 $ 683 $ 1,504 $ 1,361 Interest cost 1,430 1,714 2,858 3,424 Expected return on plan assets (2,032) (1,817) (4,071) (3,636) Amortization of prior service cost 8 9 16 18 Amortization of net loss 854 1,147 1,708 2,293 Net pension cost $ 1,009 $ 1,736 $ 2,015 $ 3,460 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | (in thousands): Functional Currency Contract Currency Type Amount Type Amount Brazilian real 40,217 Euro 6,750 Brazilian real 1,544,422 U.S. dollar 345,911 Euro 48,776 U.S. dollar 54,613 Euro 20,717 Polish zloty 92,000 Euro 7,241 Japanese yen 861,057 Euro 11,026 Chinese renminbi 87,689 Euro 15,266 Australian dollar 24,850 Euro 5,432 British pound 4,832 Euro 33 Canadian dollar 50 Polish zloty 19,707 Euro 4,427 British pound 157 Euro 173 British pound 33 U.S. dollar 41 Japanese yen 20,355 U.S. dollar 190 U.S. dollar 1,132 Japanese yen 121,000 U.S. dollar 49,784 Euro 45,000 Chinese renminbi 2,265 Euro 284 |
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 six months ended June 27, 2020 and June 29, 2019 (in thousands): Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges Three Months Ended Six Months Ended Derivatives not designated as hedging instruments Location June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019 Foreign exchange Foreign currency loss $ 1,257 $ (335) $ (38) $ 1,536 Foreign exchange Net sales (107) (234) 623 62 Foreign exchange Cost of sales and operating expenses (170) 151 (1,057) (94) Foreign exchange Selling, general and administrative expense 1,180 (351) 6,904 522 Corn options and futures Net sales 935 (612) 1,790 (262) Corn options and futures Cost of sales and operating expenses (1,245) 1,516 (3,086) 643 Heating oil swaps and options Net sales (38) — (38) — Heating Oil swaps and options Cost of sales and operating expenses — — — (506) Total $ 1,812 $ 135 $ 5,098 $ 1,901 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
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 June 27, 2020 Using Quoted Prices in Significant Other Significant (In thousands of dollars) Total (Level 1) (Level 2) (Level 3) Assets: Derivative instruments $ 13,592 $ — $ 13,592 $ — Total Assets $ 13,592 $ — $ 13,592 $ — Liabilities: Derivative instruments $ 8,488 $ — $ 8,488 $ — 5.25% Senior notes 511,750 — 511,750 — 3.625% Senior notes 579,797 — 579,797 — Term loan B 487,575 — 487,575 — Revolver debt 9,800 — 9,800 — Total Liabilities $ 1,597,410 $ — $ 1,597,410 $ — Fair Value Measurements at December 28, 2019 Using Quoted Prices in Significant Other Significant (In thousands of dollars) Total (Level 1) (Level 2) (Level 3) Assets: Derivative instruments $ 4,140 $ — $ 4,140 $ — Total Assets $ 4,140 $ — $ 4,140 $ — Liabilities: Derivative instruments $ 1,593 $ — $ 1,593 $ — 5.25% Senior notes 531,850 — 531,850 — 3.625% Senior notes 605,327 — 605,327 — Term loan B 497,475 — 497,475 — Revolver debt 38,805 — 38,805 — Total Liabilities $ 1,675,050 $ — $ 1,675,050 $ — |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments (in thousands): Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Three Months Ended June 27, 2020 Net Sales $ 503,690 $ 278,934 $ 66,049 $ — $ 848,673 Cost of sales and operating expenses 367,902 220,159 44,286 — 632,347 Gross Margin 135,788 58,775 21,763 — 216,326 Loss/(gain) on sale of assets 76 (48) (1) — 27 Selling, general and administrative expenses 50,484 22,564 3,953 13,192 90,193 Depreciation and amortization 52,683 19,972 7,980 2,675 83,310 Equity in net income of Diamond Green Diesel — — 63,492 — 63,492 Segment operating income/(loss) 32,545 16,287 73,323 (15,867) 106,288 Equity in net income of other unconsolidated subsidiaries 692 — — — 692 Segment income/(loss) 33,237 16,287 73,323 (15,867) 106,980 Total other expense (20,539) Income before income taxes $ 86,441 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Three Months Ended June 29, 2019 Net Sales $ 487,447 $ 274,835 $ 65,042 $ — $ 827,324 Cost of sales and operating expenses 376,955 214,444 53,317 — 644,716 Gross Margin 110,492 60,391 11,725 — 182,608 Gain on sale of assets (524) (13,379) (23) — (13,926) Selling, general and administrative expenses 46,465 23,431 425 10,696 81,017 Depreciation and amortization 48,720 19,861 8,362 2,543 79,486 Equity in net income of Diamond Green Diesel — — 38,093 — 38,093 Segment operating income/(loss) 15,831 30,478 41,054 (13,239) 74,124 Equity in net Income of other unconsolidated subsidiaries 82 — — — 82 Segment income/(loss) 15,913 30,478 41,054 (13,239) 74,206 Total other expense (35,386) Income before income taxes $ 38,820 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Six Months Ended June 27, 2020 Net Sales $ 1,016,315 $ 549,228 $ 135,972 $ — $ 1,701,515 Cost of sales and operating expenses 756,355 425,589 97,311 — 1,279,255 Gross Margin 259,960 123,639 38,661 — 422,260 Loss/(gain) on sale of assets 126 (46) 8 — 88 Selling, general and administrative expense 104,431 48,040 5,607 28,308 186,386 Depreciation and amortization 106,204 40,277 16,072 5,428 167,981 Equity in net income of Diamond Green Diesel — — 161,312 — 161,312 Segment operating income/(loss) 49,199 35,368 178,286 (33,736) 229,117 Equity in net income of other unconsolidated subsidiaries 1,561 — — — 1,561 Segment income/(loss) 50,760 35,368 178,286 (33,736) 230,678 Total other expense (39,846) Income before income taxes $ 190,832 Segment assets at June 27, 2020 $ 2,600,884 $ 1,325,739 $ 1,090,623 $ 309,908 $ 5,327,154 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Six Months Ended June 29, 2019 Net Sales $ 983,266 $ 553,999 $ 125,163 $ — $ 1,662,428 Cost of sales and operating expenses 763,814 428,448 103,367 — 1,295,629 Gross Margin 219,452 125,551 21,796 — 366,799 Loss/(gain) on sale of assets (4,914) (13,265) 3 — (18,176) Selling, general and administrative expense 95,296 45,318 (329) 25,735 166,020 Depreciation and amortization 98,089 39,372 16,160 5,029 158,650 Equity in net income of Diamond Green Diesel — — 62,370 — 62,370 Segment operating income/(loss) 30,981 54,126 68,332 (30,764) 122,675 Equity in net loss of other unconsolidated subsidiaries (422) — — — (422) Segment income/(loss) 30,559 54,126 68,332 (30,764) 122,253 Total other expense (58,519) Income before income taxes $ 63,734 Segment assets at December 28, 2019 $ 2,653,363 $ 1,345,526 $ 1,087,701 $ 258,668 $ 5,345,258 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
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 and six months ended June 27, 2020 and June 29, 2019 (in thousands): Three Months Ended June 27, 2020 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area North America $ 419,318 $ 58,548 $ 991 $ 478,857 Europe 78,466 157,326 65,058 300,850 China 3,354 45,043 — 48,397 South America — 2,080 — 2,080 Other 2,552 15,937 — 18,489 Net sales $ 503,690 $ 278,934 $ 66,049 $ 848,673 Major product types Fats $ 167,507 $ 31,839 $ — $ 199,346 Used cooking oil 39,007 — — 39,007 Proteins 210,141 — — 210,141 Bakery 37,964 — — 37,964 Other rendering 39,464 — — 39,464 Food ingredients — 223,526 — 223,526 Bioenergy — — 65,058 65,058 Biofuels — — 991 991 Other 9,607 23,569 — 33,176 Net sales $ 503,690 $ 278,934 $ 66,049 $ 848,673 Six Months Ended June 27, 2020 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area North America $ 846,781 $ 104,963 $ 6,391 $ 958,135 Europe 158,909 315,913 129,581 604,403 China 5,777 84,999 — 90,776 South America — 12,666 — 12,666 Other 4,848 30,687 — 35,535 Net sales $ 1,016,315 $ 549,228 $ 135,972 $ 1,701,515 Major product types Fats $ 330,791 $ 65,315 $ — $ 396,106 Used cooking oil 86,615 — — 86,615 Proteins 406,121 — — 406,121 Bakery 85,065 — — 85,065 Other rendering 86,628 — — 86,628 Food ingredients — 438,319 — 438,319 Bioenergy — — 129,581 129,581 Biofuels — — 6,391 6,391 Other 21,095 45,594 — 66,689 Net sales $ 1,016,315 $ 549,228 $ 135,972 $ 1,701,515 Three Months Ended June 29, 2019 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area Revenues North America $ 401,450 $ 54,801 $ 9,644 $ 465,895 Europe 78,857 147,807 55,398 282,062 China 4,953 42,984 — 47,937 South America — 12,121 — 12,121 Other 2,187 17,122 — 19,309 Net sales $ 487,447 $ 274,835 $ 65,042 $ 827,324 Major product types Fats $ 143,542 $ 30,785 $ — $ 174,327 Used cooking oil 45,299 — — 45,299 Proteins 200,385 — — 200,385 Bakery 44,415 — — 44,415 Other rendering 40,883 — — 40,883 Food ingredients — 223,236 — 223,236 Bioenergy — — 55,398 55,398 Biofuels — — 9,644 9,644 Other 12,923 20,814 — 33,737 Net sales $ 487,447 $ 274,835 $ 65,042 $ 827,324 Six Months Ended June 29, 2019 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area Revenues North America $ 811,687 $ 103,614 $ 15,354 $ 930,655 Europe 158,855 299,459 109,809 568,123 China 7,905 89,921 — 97,826 South America — 24,790 — 24,790 Other 4,819 36,215 — 41,034 Net sales $ 983,266 $ 553,999 $ 125,163 $ 1,662,428 Major product types Fats $ 288,418 $ 65,923 $ — $ 354,341 Used cooking oil 90,705 — — 90,705 Proteins 406,198 — — 406,198 Bakery 90,071 — — 90,071 Other rendering 82,137 — — 82,137 Food ingredients — 445,144 — 445,144 Bioenergy — — 109,809 109,809 Biofuels — — 15,354 15,354 Other 25,737 42,932 — 68,669 Net sales $ 983,266 $ 553,999 $ 125,163 $ 1,662,428 |
Guarantor Financial Informati_2
Guarantor Financial Information (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Guarantor Financial Information [Abstract] | |
Guarantor Financial Information Condensed Consolidating Balance Sheet | Condensed Consolidated Balance Sheet As of June 27, 2020 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated ASSETS Cash and cash equivalents $ 968 $ 25 $ 75,192 $ — $ 76,185 Restricted cash 103 — — — 103 Accounts receivable 45,605 694,352 642,619 (1,006,668) 375,908 Inventories 21,711 96,458 276,539 — 394,708 Income taxes refundable 1,322 — 2,430 — 3,752 Prepaid expenses 18,001 3,316 24,686 — 46,003 Other current assets 7,528 (3,720) 44,049 (13,465) 34,392 Total current assets 95,238 790,431 1,065,515 (1,020,133) 931,051 Investment in subsidiaries 5,602,453 1,283,699 844,045 (7,730,197) — Property, plant and equipment, net 432,057 518,120 823,152 — 1,773,329 Intangible assets, net 41,583 155,546 288,019 — 485,148 Goodwill 49,902 490,748 676,527 — 1,217,177 Investment in unconsolidated subsidiaries — — 729,094 — 729,094 Operating lease right-of-use asset 79,306 29,662 25,933 — 134,901 Other assets 34,704 134 57,258 (50,445) 41,651 Deferred taxes — — 14,803 — 14,803 $ 6,335,243 $ 3,268,340 $ 4,524,346 $ (8,800,775) $ 5,327,154 LIABILITIES AND STOCKHOLDERS’ EQUITY Current portion of long-term debt $ 20,315 $ 11 $ 35,897 $ (13,465) $ 42,758 Accounts payable 1,033,477 19,961 150,752 (1,006,662) 197,528 Income taxes payable 2,882 — 13,592 — 16,474 Current operating lease liability 20,873 10,520 8,139 — 39,532 Accrued expenses 93,432 26,689 189,889 (6) 310,004 Total current liabilities 1,170,979 57,181 398,269 (1,020,133) 606,296 Long-term debt, net of current portion 1,032,352 25 571,186 (50,445) 1,553,118 Long-term operating lease liability 63,948 18,767 16,767 — 99,482 Other noncurrent liabilities 75,902 — 33,144 — 109,046 Deferred income taxes 142,606 — 118,252 — 260,858 Total liabilities 2,485,787 75,973 1,137,618 (1,070,578) 2,628,800 Total stockholders’ equity 3,849,456 3,192,367 3,386,728 (7,730,197) 2,698,354 $ 6,335,243 $ 3,268,340 $ 4,524,346 $ (8,800,775) $ 5,327,154 Condensed Consolidated Balance Sheet As of December 28, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated ASSETS Cash and cash equivalents $ 551 $ 26 $ 72,358 $ — $ 72,935 Restricted cash 103 — 7 — 110 Accounts receivable 51,097 702,945 518,614 (866,318) 406,338 Inventories 26,893 86,609 249,455 — 362,957 Income taxes refundable 1,106 — 2,211 — 3,317 Prepaid expenses 20,888 2,241 23,470 — 46,599 Other current assets 5,399 (2,326) 40,872 (18,913) 25,032 Total current assets 106,037 789,495 906,987 (885,231) 917,288 Investment in subsidiaries 5,365,956 1,366,635 844,043 (7,576,634) — Property, plant and equipment, net 434,237 524,577 843,597 — 1,802,411 Intangible assets, net 44,404 170,581 311,409 — 526,394 Goodwill 49,902 490,748 682,641 — 1,223,291 Investment in unconsolidated subsidiary — — 689,354 — 689,354 Operating lease right-of-use asset 74,005 31,243 19,478 — 124,726 Other assets 35,456 134 61,974 (50,164) 47,400 Deferred income taxes — — 14,394 — 14,394 $ 6,109,997 $ 3,373,413 $ 4,373,877 $ (8,512,029) $ 5,345,258 LIABILITIES AND STOCKHOLDERS’ EQUITY Current portion of long-term debt $ 40,916 $ 10 $ 68,983 $ (18,913) $ 90,996 Accounts payable 893,490 29,535 182,484 (866,257) 239,252 Income taxes payable (10) — 8,905 — 8,895 Current operating lease liability 20,454 10,510 6,841 — 37,805 Accrued expenses 116,758 32,861 161,833 (61) 311,391 Total current liabilities 1,071,608 72,916 429,046 (885,231) 688,339 Long-term debt, net of current portion 1,040,974 30 567,589 (50,164) 1,558,429 Long-term operating lease liability 58,970 20,281 12,173 — 91,424 Other noncurrent liabilities 80,409 — 35,376 — 115,785 Deferred income taxes 122,109 — 125,822 — 247,931 Total liabilities 2,374,070 93,227 1,170,006 (935,395) 2,701,908 Total stockholders’ equity 3,735,927 3,280,186 3,203,871 (7,576,634) 2,643,350 $ 6,109,997 $ 3,373,413 $ 4,373,877 $ (8,512,029) $ 5,345,258 |
Guarantor Financial Information Condensed Consolidating Statements Of Operations | Condensed Consolidated Statements of Operations For the three months ended June 27, 2020 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 185,915 $ 310,650 $ 404,358 $ (52,250) $ 848,673 Cost and expenses: Cost of sales and operating expenses 140,742 245,968 297,887 (52,250) 632,347 Loss/(gain) on sale of assets 76 (8) (41) — 27 Selling, general and administrative expenses 44,937 11,024 34,232 — 90,193 Depreciation and amortization 16,989 26,223 40,098 — 83,310 Total costs and expenses 202,744 283,207 372,176 (52,250) 805,877 Equity in net income of Diamond Green Diesel — — 63,492 — 63,492 Operating income/(loss) (16,829) 27,443 95,674 — 106,288 Interest expense (12,451) (44) (5,425) — (17,920) Foreign currency gains/(losses) (184) (1) (949) — (1,134) Other income/(expense), net (1,200) (290) 5 — (1,485) Equity in net income of other unconsolidated subsidiaries — — 692 — 692 Earnings in investments in subsidiaries 88,848 — — (88,848) — Income/(loss) before taxes 58,184 27,108 89,997 (88,848) 86,441 Income tax expense/(benefit) (7,255) 6,045 21,156 — 19,946 Net income attributable to noncontrolling interests — — (1,056) — (1,056) Net income/(loss) attributable to Darling $ 65,439 $ 21,063 $ 67,785 $ (88,848) $ 65,439 Condensed Consolidated Statements of Operations For the six months ended June 27, 2020 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 366,834 $ 620,951 $ 809,383 $ (95,653) $ 1,701,515 Cost and expenses: Cost of sales and operating expenses 284,884 492,288 597,736 (95,653) 1,279,255 Loss/(gain) on sale of assets 38 55 (5) — 88 Selling, general and administrative expenses 93,011 23,541 69,834 — 186,386 Depreciation and amortization 34,261 52,816 80,904 — 167,981 Total costs and expenses 412,194 568,700 748,469 (95,653) 1,633,710 Equity in net income of Diamond Green Diesel — — 161,312 — 161,312 Operating income/(loss) (45,360) 52,251 222,226 — 229,117 Interest expense (26,226) (102) (10,682) — (37,010) Foreign currency losses (510) (25) 1,065 — 530 Other income/(expense), net (2,740) (629) 3 — (3,366) Equity in net income of other unconsolidated subsidiaries — — 1,561 — 1,561 Earnings in investments in subsidiaries 210,787 — — (210,787) — Income/(loss) before taxes 135,951 51,495 214,173 (210,787) 190,832 Income tax expense/(benefit) (14,998) 10,320 42,924 — 38,246 Net income attributable to noncontrolling interests — — (1,637) — (1,637) Net income/(loss) attributable to Darling $ 150,949 $ 41,175 $ 169,612 $ (210,787) $ 150,949 Condensed Consolidated Statements of Operations For the three months ended June 29, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 156,927 $ 325,744 $ 399,339 $ (54,686) $ 827,324 Cost and expenses: Cost of sales and operating expenses 125,586 268,582 305,234 (54,686) 644,716 Loss (gain) on sale of assets (26) (511) (13,389) — (13,926) Selling, general and administrative expenses 40,570 10,776 29,671 — 81,017 Depreciation and amortization 14,224 25,165 40,097 — 79,486 Total costs and expenses 180,354 304,012 361,613 (54,686) 791,293 Equity in net income of Diamond Green Diesel — — 38,093 — 38,093 Operating income/(loss) (23,427) 21,732 75,819 — 74,124 Interest expense (15,078) (24) (5,751) — (20,853) Debt extinguishment costs (12,126) — — — (12,126) Foreign currency gains/(losses) 3 1 (392) — (388) Other income/(expense), net (1,285) (764) 30 — (2,019) Equity in net income/(loss) of other unconsolidated subsidiaries (1,027) — 1,109 — 82 Earnings in investments in subsidiaries 68,680 — — (68,680) — Income/(loss) before taxes 15,740 20,945 70,815 (68,680) 38,820 Income tax expense/(benefit) (10,518) 4,126 14,168 — 7,776 Net income attributable to noncontrolling interests — — (4,786) — (4,786) Net income/(loss) attributable to Darling $ 26,258 $ 16,819 $ 51,861 $ (68,680) $ 26,258 Condensed Consolidated Statements of Operations For the six months ended June 29, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 317,157 $ 655,735 $ 803,250 $ (113,714) $ 1,662,428 Cost and expenses: Cost of sales and operating expenses 253,910 540,253 615,180 (113,714) 1,295,629 Loss (gain) on sale of assets 42 (4,988) (13,230) — (18,176) Selling, general and administrative expenses 87,993 22,723 55,304 — 166,020 Depreciation and amortization 28,597 51,277 78,776 — 158,650 Total costs and expenses 370,542 609,265 736,030 (113,714) 1,602,123 Equity in net income of Diamond Green Diesel — — 62,370 — 62,370 Operating income/(loss) (53,385) 46,470 129,590 — 122,675 Interest expense (29,105) (56) (11,568) — (40,729) Debt extinguishment costs (12,126) — — — (12,126) Foreign currency gains/(losses) (1) 1 (1,120) — (1,120) Other income/(expense), net (2,852) (1,976) 284 — (4,544) Equity in net income/(loss) of other unconsolidated subsidiaries (1,918) — 1,496 — (422) Earnings in investments in subsidiaries 123,307 — — (123,307) — Income/(loss) before taxes 23,920 44,439 118,682 (123,307) 63,734 Income tax expense/(benefit) (20,350) 9,099 24,301 — 13,050 Net income attributable to noncontrolling interests — — (6,414) — (6,414) Net income/(loss) attributable to Darling $ 44,270 $ 35,340 $ 87,967 $ (123,307) $ 44,270 |
Guarantor Financial Information Condensed Consolidating Statements of Comprehensive Income/(Loss) | Condensed Consolidated Statements of Comprehensive Income/(Loss) For the three months ended June 27, 2020 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income/(loss) $ 66,495 $ 21,063 $ 67,785 $ (88,848) $ 66,495 Other comprehensive income/(loss), net of tax: Foreign currency translation (1,364) — 21,503 — 20,139 Pension adjustments 518 — 129 — 647 Corn option derivative adjustments 1,804 — — — 1,804 Heating oil derivative adjustments — — (8,940) — (8,940) Foreign exchange derivative adjustments — — 5,679 — 5,679 Total other comprehensive income/(loss), net of tax 958 — 18,371 — 19,329 Total comprehensive income/(loss) 67,453 21,063 86,156 (88,848) 85,824 Total comprehensive loss attributable to noncontrolling interest — — 416 — 416 Total comprehensive income/(loss) attributable to Darling $ 67,453 $ 21,063 $ 85,740 $ (88,848) $ 85,408 Condensed Consolidated Statements of Comprehensive Income/(Loss) For the six months ended June 27, 2020 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income/(loss) $ 152,586 $ 41,175 $ 169,612 $ (210,787) $ 152,586 Other comprehensive income/ (loss), net of tax: Foreign currency translation (713) (128,994) 84,610 — (45,097) Pension adjustments 1,036 — 259 — 1,295 Corn option derivative adjustments 1,940 — — — 1,940 Heating oil derivative adjustments — — 1,930 — 1,930 Foreign exchange derivative adjustments — — (3,472) — (3,472) Total other comprehensive income/(loss), net of tax 2,263 (128,994) 83,327 — (43,404) Total comprehensive income/(loss) 154,849 (87,819) 252,939 (210,787) 109,182 Total comprehensive income attributable to noncontrolling interest — — 908 — 908 Total comprehensive income/(loss) attributable to Darling $ 154,849 $ (87,819) $ 252,031 $ (210,787) $ 108,274 Condensed Consolidated Statements of Comprehensive Income/(Loss) For the three months ended June 29, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income/(loss) $ 31,044 $ 16,819 $ 51,861 $ (68,680) $ 31,044 Other comprehensive income/(loss), net of tax: Foreign currency translation (326) — 16,652 — 16,326 Pension adjustments 766 — 93 — 859 Corn option derivative adjustments 22 — — — 22 Heating oil derivative adjustments — — 2,133 — 2,133 Foreign exchange derivative adjustment — — 1,451 — 1,451 Total other comprehensive income/(loss), net of tax 462 — 20,329 — 20,791 Total comprehensive income/(loss) 31,506 16,819 72,190 (68,680) 51,835 Total comprehensive income attributable to noncontrolling interest — — 3,315 — 3,315 Total comprehensive income/(loss) attributable to Darling $ 31,506 $ 16,819 $ 68,875 $ (68,680) $ 48,520 Condensed Consolidated Statements of Comprehensive Income/(Loss) For the six months ended June 29, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income/(loss) $ 50,684 $ 35,340 $ 87,967 $ (123,307) $ 50,684 Other comprehensive income/(loss), net of tax: Foreign currency translation 181 — 11,259 — 11,440 Pension adjustments 1,533 — 184 — 1,717 Corn option derivative adjustments 22 — — — 22 Heating oil derivative adjustments — — 2,133 — 2,133 Foreign exchange derivative adjustments — — (486) — (486) Total other comprehensive income, net of tax 1,736 — 13,090 — 14,826 Total comprehensive income/(loss) 52,420 35,340 101,057 (123,307) 65,510 Total comprehensive loss attributable to noncontrolling interest — — 6,702 — 6,702 Total comprehensive income/(loss) attributable to Darling $ 52,420 $ 35,340 $ 94,355 $ (123,307) $ 58,808 |
Guarantor Financial Information Condensed Consolidating Statements Of Cash Flows | Condensed Consolidated Statements of Cash Flows For the six months ended June 27, 2020 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Cash flows from operating activities: Net income/(loss) $ 152,586 $ 41,175 $ 169,612 $ (210,787) $ 152,586 Earnings in investments in subsidiaries (210,787) — — 210,787 — Other operating cash flows 198,633 (7,774) (79,796) — 111,063 Net cash provided/(used) by operating activities 140,432 33,401 89,816 — 263,649 Cash flows from investing activities: Capital expenditures (28,661) (33,673) (60,870) — (123,204) Investment in subsidiaries and affiliates (17,534) — — 17,534 — Gross proceeds from sale of property, plant and equipment and other assets 30 275 748 — 1,053 Payments related to routes and other intangibles (3,416) — (296) — (3,712) Net cash provided/(used) in investing activities (49,581) (33,398) (60,418) 17,534 (125,863) Cash flows from financing activities: Proceeds for long-term debt — — 16,164 — 16,164 Payments on long-term debt (2) (4) (18,233) — (18,239) Borrowings from revolving facilities 233,000 — 142,971 — 375,971 Payments on revolving facilities (262,000) — (143,800) — (405,800) Net cash overdraft financing (1,604) — (24,857) — (26,461) Issuances of common stock 67 — — — 67 Repurchase of treasury stock (55,044) — — — (55,044) Contributions from parent — — 17,534 (17,534) — Minimum withholding taxes paid on stock awards (4,851) — (12) — (4,863) Acquisition of noncontrolling interest — — (8,784) — (8,784) Distributions to noncontrolling interests — — (987) — (987) Net cash provided/(used) in financing activities (90,434) (4) (20,004) (17,534) (127,976) Effect of exchange rate changes on cash — — (6,567) — (6,567) Net increase/(decrease) in cash, cash equivalents and restricted cash 417 (1) 2,827 — 3,243 Cash, cash equivalents and restricted cash at beginning of period 654 26 72,365 — 73,045 Cash, cash equivalents and restricted cash at end of period $ 1,071 $ 25 $ 75,192 $ — $ 76,288 Condensed Consolidated Statements of Cash Flows For the six months ended June 29, 2019 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Cash flows from operating activities: Net income/(loss) $ 50,684 $ 35,340 $ 87,967 $ (123,307) $ 50,684 Earnings in investments in subsidiaries (123,307) — — 123,307 — Other operating cash flows 116,433 884 (13,697) — 103,620 Net cash provided/(used) by operating activities 43,810 36,224 74,270 — 154,304 Cash flows from investing activities: Capital expenditures (63,517) (44,720) (59,634) — (167,871) Acquisitions (1,157) — (274) — (1,431) Investment in subsidiaries and affiliates (1,393) (393) — 786 (1,000) Gross proceeds from sale of property, plant and equipment and other assets 250 7,654 1,910 — 9,814 Proceeds from insurance settlements — 845 — — 845 Payments related to routes and other intangibles (131) — (3,019) — (3,150) Net cash provided/(used) by in investing activities (65,948) (36,614) (61,017) 786 (162,793) Cash flows from financing activities: Proceeds for long-term debt 500,000 — 7,722 — 507,722 Payments on long-term debt (507,622) (3) (18,605) — (526,230) Borrowings from revolving credit facility 134,000 — 139,485 — 273,485 Payments on revolving credit facility (96,000) — (170,884) — (266,884) Net cash overdraft financing 4,510 — 6,668 — 11,178 Deferred loan costs (7,003) — — — (7,003) Issuances of common stock 12 — — — 12 Contributions from parent — 393 393 (786) — Minimum withholding taxes paid on stock awards (3,192) — (1) — (3,193) Net cash provided/(used) by financing activities 24,705 390 (35,222) (786) (10,913) Effect of exchange rate changes on cash — — (853) — (853) Net increase/(decrease) in cash, cash equivalents and restricted cash 2,567 — (22,822) — (20,255) 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 $ 3,665 $ 32 $ 83,417 $ — $ 87,114 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Dec. 28, 2019 | |
Summary of Significant Accounting Policies [Line Items] | |||||
Term of contract not recognized | 12 months | ||||
Operating lease, liability | $ 139,014 | $ 139,014 | $ 129,229 | ||
Operating right-of-use assets, net | 134,901 | 134,901 | $ 124,726 | ||
Financing Receivable, Sale | 86,300 | $ 50,700 | 170,800 | $ 83,200 | |
Financing Receivable, Significant Sales, Transaction Fees | 300 | 300 | 700 | 500 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (44,400) | 11,200 | |||
Basic: | |||||
Net income | $ 65,439 | $ 26,258 | $ 150,949 | $ 44,270 | |
Shares (in shares) | 162,154,000 | 164,935,000 | 162,814,000 | 164,895,000 | |
Per Share (in usd per share) | $ 0.40 | $ 0.16 | $ 0.93 | $ 0.27 | |
Effect of dilutive securities: [Abstract] | |||||
Add: Option shares in the money and dilutive effect of non-vested stock (in shares) | 5,882,000 | 5,801,000 | 6,315,000 | 5,964,000 | |
Less: Pro forma treasury shares (in shares) | (2,037,000) | (2,304,000) | (2,166,000) | (2,313,000) | |
Diluted: | |||||
Net Income | $ 65,439 | $ 26,258 | $ 150,949 | $ 44,270 | |
Shares (in shares) | 165,999,000 | 168,432,000 | 166,963,000 | 168,546,000 | |
Per Share (in usd per share) | $ 0.39 | $ 0.16 | $ 0.90 | $ 0.26 | |
Stock Options [Member] | |||||
Antidilutive Securities [Abstract] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,157,300 | 641,399 | 576,911 | 641,399 | |
Non Vested Stock [Member] | |||||
Antidilutive Securities [Abstract] | |||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 626,783 | 556,418 | 540,776 | 471,661 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Dec. 28, 2019 |
Accounting Policies [Abstract] | ||
Cash and cash equivalents | $ 76,185 | $ 72,935 |
Investment in Unconsolidated _3
Investment in Unconsolidated Subsidiary (Details) barrel in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jul. 30, 2020USD ($) | Jun. 27, 2020USD ($) | Jun. 29, 2019USD ($) | Jun. 27, 2020USD ($)barrel | Jun. 29, 2019USD ($) | Dec. 28, 2019USD ($) | Jan. 21, 2011 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Investment in the joint venture | $ 729,094 | $ 729,094 | $ 689,354 | ||||
Income (loss) from equity method investments | 692 | $ 82 | 1,561 | $ (422) | |||
Distributions of earnings from Diamond Green Diesel and other unconsolidated subsidiaries | 125,000 | $ 125,891 | 17,755 | ||||
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 | 700,300 | $ 700,300 | |||||
Income (loss) from equity method investments | 63,500 | $ 38,100 | 161,300 | $ 62,400 | |||
Income Tax Credits and Adjustments | $ 72,200 | $ 152,200 | |||||
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 | $ 80,200 |
Investment in Unconsolidated _4
Investment in Unconsolidated Subsidiary (Assets, Liabilities and members' equity) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 31, 2019 | Dec. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 |
ASSETS | ||||||||
Assets, Current | $ 931,051 | $ 917,288 | ||||||
Property, plant and equipment, net | 1,773,329 | 1,802,411 | ||||||
Other assets | 41,651 | 47,400 | ||||||
Segment Assets | 5,327,154 | 5,345,258 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current portion of long-term debt | 42,758 | 90,996 | ||||||
Other non-current liabilities | 109,046 | 115,785 | ||||||
Total stockholders’ equity | 2,698,354 | $ 2,608,442 | 2,643,350 | $ 2,406,635 | $ 2,356,699 | $ 2,335,821 | ||
Liabilities and Equity | $ 5,327,154 | $ 5,345,258 | ||||||
Diamond Green Diesel Holdings LLC Joint Venture [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||||
ASSETS | ||||||||
Assets, Current | $ 668,026 | |||||||
Property, plant and equipment, net | 713,489 | |||||||
Other assets | 30,710 | |||||||
Segment Assets | 1,412,225 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current portion of long-term debt | 341 | |||||||
Other Liabilities, Current | 75,802 | |||||||
Long-term Debt, Excluding Current Maturities | 8,742 | |||||||
Other non-current liabilities | 4,422 | |||||||
Total stockholders’ equity | 1,322,918 | |||||||
Liabilities and Equity | $ 1,412,225 | |||||||
Diamond Green Diesel Holdings LLC Joint Venture [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees | Subsequent Event | ||||||||
ASSETS | ||||||||
Assets, Current | $ 581,334 | |||||||
Property, plant and equipment, net | 894,415 | |||||||
Other assets | 27,959 | |||||||
Segment Assets | 1,503,708 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current portion of long-term debt | 495 | |||||||
Other Liabilities, Current | 89,533 | |||||||
Long-term Debt, Excluding Current Maturities | 8,969 | |||||||
Other non-current liabilities | 4,023 | |||||||
Total stockholders’ equity | 1,400,688 | |||||||
Liabilities and Equity | $ 1,503,708 |
Investment in Unconsolidated _5
Investment in Unconsolidated Subsidiary (Revenues and Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Jun. 30, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 30, 2020 | Jun. 27, 2020 | Jun. 30, 2019 | Jun. 29, 2019 | |
Revenues: | ||||||||||
Operating revenues | $ 848,673 | $ 827,324 | $ 1,701,515 | $ 1,662,428 | ||||||
Expenses: | ||||||||||
Cost of sales and operating expenses | 632,347 | 644,716 | 1,279,255 | 1,295,629 | ||||||
Total costs and expenses | 805,877 | 791,293 | 1,633,710 | 1,602,123 | ||||||
Operating income | 106,288 | 74,124 | 229,117 | 122,675 | ||||||
Net income | $ 66,495 | $ 86,091 | $ 31,044 | $ 19,640 | $ 152,586 | $ 50,684 | ||||
Diamond Green Diesel Holdings LLC Joint Venture [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||||||
Revenues: | ||||||||||
Operating revenues | $ 294,811 | $ 597,529 | ||||||||
Expenses: | ||||||||||
Cost of sales and operating expenses | 207,024 | 450,087 | ||||||||
Depreciation, amortization and accretion expense | 11,914 | 23,332 | ||||||||
Total costs and expenses | 218,938 | 473,419 | ||||||||
Operating income | 75,873 | 124,110 | ||||||||
Other income | 634 | 1,275 | ||||||||
Interest and debt expense, net | (321) | (645) | ||||||||
Net income | $ 76,186 | $ 124,740 | ||||||||
Diamond Green Diesel Holdings LLC Joint Venture [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees | Subsequent Event | ||||||||||
Revenues: | ||||||||||
Operating revenues | $ 295,826 | $ 654,441 | ||||||||
Expenses: | ||||||||||
Cost of sales and operating expenses | 157,611 | 308,958 | ||||||||
Depreciation, amortization and accretion expense | 11,114 | 22,888 | ||||||||
Total costs and expenses | 168,725 | 331,846 | ||||||||
Operating income | 127,101 | 322,595 | ||||||||
Other income | 200 | 661 | ||||||||
Interest and debt expense, net | (317) | (632) | ||||||||
Net income | $ 126,984 | $ 322,624 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Jan. 31, 2020 | Jun. 27, 2020 | Jun. 29, 2019 | |
Business Combinations [Abstract] | |||
Ownership Percentage | 100.00% | ||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage | 50.00% | ||
Acquisition Of Noncontrolling Interest | $ 8,800 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 3,400 | ||
Payments to Acquire Businesses, Net of Cash Acquired | $ 12,200 | $ 0 | $ 1,431 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Dec. 28, 2019 |
Inventory Disclosure [Abstract] | ||
Finished product | $ 223,792 | $ 199,799 |
Work in process | 91,136 | 81,841 |
Raw Material | 37,663 | 41,964 |
Supplies and other | 42,117 | 39,353 |
Inventories | $ 394,708 | $ 362,957 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Dec. 28, 2019 | |
Intangible Assets [Line Items] | |||||
Indefinite Lived Intangible Assets | $ 52,878 | $ 52,878 | $ 52,733 | ||
Finite Lived Intangible Assets: | 939,545 | 939,545 | 956,103 | ||
Accumulated Amortization: | (507,275) | (507,275) | (482,442) | ||
Intangible assets, net | 485,148 | 485,148 | 526,394 | ||
Intangible assets, period decrease | 5,800 | ||||
Amortization of Intangible Assets | 18,000 | $ 18,400 | 36,100 | $ 36,900 | |
Trade Names [Member] | |||||
Intangible Assets [Line Items] | |||||
Indefinite Lived Intangible Assets | 52,878 | 52,878 | 52,733 | ||
Trade Names [Member] | |||||
Intangible Assets [Line Items] | |||||
Finite Lived Intangible Assets: | 65,670 | 65,670 | 65,670 | ||
Accumulated Amortization: | (36,165) | (36,165) | (32,890) | ||
Collection Routes [Member] | |||||
Intangible Assets [Line Items] | |||||
Finite Lived Intangible Assets: | 368,558 | 368,558 | 382,263 | ||
Accumulated Amortization: | (175,721) | (175,721) | (169,050) | ||
Royalty, consulting land use and leasehold [Member] | |||||
Intangible Assets [Line Items] | |||||
Finite Lived Intangible Assets: | 24,291 | 24,291 | 20,737 | ||
Accumulated Amortization: | (5,805) | (5,805) | (5,178) | ||
Permits [Member] | |||||
Intangible Assets [Line Items] | |||||
Finite Lived Intangible Assets: | 477,916 | 477,916 | 483,593 | ||
Accumulated Amortization: | (286,960) | (286,960) | (272,213) | ||
Noncompete Agreements [Member] | |||||
Intangible Assets [Line Items] | |||||
Finite Lived Intangible Assets: | 3,110 | 3,110 | 3,840 | ||
Accumulated Amortization: | $ (2,624) | $ (2,624) | $ (3,111) |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 27, 2020USD ($) | |
Goodwill [Roll Forward] | |
Goodwill | $ 1,239,666 |
Accumulated impairment losses | (16,375) |
Goodwill | 1,223,291 |
Foreign currency translation | (6,114) |
Goodwill | 1,233,552 |
Accumulated impairment losses | (16,375) |
Goodwill | 1,217,177 |
Feed Ingredients | |
Goodwill [Roll Forward] | |
Goodwill | 793,457 |
Accumulated impairment losses | (15,914) |
Goodwill | 777,543 |
Foreign currency translation | (6,458) |
Goodwill | 786,999 |
Accumulated impairment losses | (15,914) |
Goodwill | 771,085 |
Fuel Ingredients | |
Goodwill [Roll Forward] | |
Goodwill | 116,555 |
Accumulated impairment losses | 0 |
Goodwill | 116,555 |
Foreign currency translation | (788) |
Goodwill | 115,767 |
Accumulated impairment losses | 0 |
Goodwill | 115,767 |
Food Ingredients | |
Goodwill [Roll Forward] | |
Goodwill | 329,654 |
Accumulated impairment losses | (461) |
Goodwill | 329,193 |
Foreign currency translation | 1,132 |
Goodwill | 330,786 |
Accumulated impairment losses | (461) |
Goodwill | $ 330,325 |
Accrued Expense (Details)
Accrued Expense (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Dec. 28, 2019 |
Payables and Accruals [Abstract] | ||
Compensation and benefits | $ 95,224 | $ 107,324 |
Accrued ad valorem, and franchise taxes | 34,859 | 30,231 |
Accrued operating expenses | 63,116 | 67,194 |
Other accrued expense | 116,805 | 106,642 |
Accrued expenses | $ 310,004 | $ 311,391 |
- Components of Lease Expense (
- Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 11,785 | $ 12,511 | $ 23,294 | $ 24,828 |
Short-term Lease, Cost | 5,581 | 2,697 | 11,826 | 5,750 |
Total lease costs | $ 17,366 | $ 15,208 | $ 35,120 | $ 30,578 |
- Other Information (Details)
- Other Information (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Dec. 28, 2019 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 25,282 | $ 24,980 | |
Operating right-of-use assets, net | 134,901 | $ 124,726 | |
Operating lease liability, current | 39,532 | 37,805 | |
Operating lease liability, non-current | 99,482 | 91,424 | |
Operating Lease, Liability | $ 139,014 | $ 129,229 | |
Weighted average remaining lease term - operating leases | 6 years 3 months 7 days | 6 years 6 months | |
Weighted average discount rate - operating leases | 4.45% | 4.71% |
- Maturities of Operating and F
- Maturities of Operating and Financing Lease Liabilities (Details) $ in Thousands, € in Millions, $ in Millions | Jun. 27, 2020USD ($) | Jun. 27, 2020CAD ($) | Jun. 27, 2020EUR (€) | Dec. 28, 2019USD ($) |
Operating Leases | ||||
2020 (excluding the six months ended June 27, 2020) | $ 23,791 | |||
2021 | 37,458 | |||
2022 | 26,870 | |||
2023 | 22,183 | |||
2024 | 16,170 | |||
Thereafter | 27,160 | |||
Operating lease, obligations | 153,632 | |||
Less amounts representing interest | (14,618) | |||
Lease obligations included in current and long-term liabilities | 139,014 | $ 129,229 | ||
Capital Leases | ||||
2020 (excluding the six months ended June 27, 2020) | 73 | |||
2021 | 16 | |||
2022 | 16 | |||
2023 | 10 | |||
2024 | 8 | |||
Thereafter | 1 | |||
Finance lease, obligations | 124 | |||
Less amounts representing interest | (6) | |||
Lease obligations included in current and long-term liabilities | $ 118 | $ 0.1 | € 0.1 |
Debt (Schedule of Long-term Deb
Debt (Schedule of Long-term Debt) (Details) $ in Millions | 6 Months Ended | |||||
Jun. 27, 2020USD ($) | Jun. 27, 2020CAD ($) | Jun. 27, 2020EUR (€) | Dec. 28, 2019USD ($) | Apr. 03, 2019USD ($) | May 02, 2018EUR (€) | |
Debt Instrument [Line Items] | ||||||
Debt and Lease Obligation | $ 1,595,876,000 | $ 1,649,425,000 | ||||
Current portion of long-term debt | 42,758,000 | 90,996,000 | ||||
Long-term debt, net of current portion | 1,553,118,000 | 1,558,429,000 | ||||
Capital lease obligation included in current and long-term debt | $ 118,000 | $ 0.1 | € 100,000 | |||
Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit term | 5 years | |||||
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 488,017,000 | 487,304,000 | ||||
Long-term Debt, Gross | 495,000,000 | 495,000,000 | ||||
Unamortized Debt Issuance Expense | (6,983,000) | (7,696,000) | ||||
Senior Notes [Member] | Senior Notes 5.25% Due 2027 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | 493,874,000 | 493,506,000 | ||||
Long-term Debt, Gross | 500,000,000 | 500,000,000 | ||||
Unamortized Debt Issuance Expense | $ (6,126,000) | (6,494,000) | ||||
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 | $ 570,785,000 | 567,114,000 | ||||
Long-term Debt, Gross | 577,315,000 | 574,096,000 | ||||
Unamortized Debt Issuance Expense | $ (6,530,000) | (6,982,000) | ||||
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 | $ 33,200,000 | 62,501,000 | ||||
Notes Payable, Other Payables [Member] | Other Debt Obligations [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | 600,000 | |||||
Notes Payable, Other Payables [Member] | Bank Overdrafts [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | 15,200,000 | |||||
Foreign Line of Credit [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit outstanding | 10,300,000 | |||||
Foreign Line of Credit [Member] | Notes Payable, Other Payables [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit outstanding | 17,400,000 | |||||
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 | 10,000,000 | $ 39,000,000 | ||||
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 | |||||
U.S. dollar | Term Loan B Facility [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit outstanding | $ 495,000,000 | |||||
London Interbank Offered Rate (LIBOR) [Member] | U.S. dollar | Term Loan B Facility [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.00% | |||||
Interest rate | 2.18% | 2.18% | 2.18% | |||
Base Rate [Member] | U.S. dollar | Secured Debt [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.00% | |||||
Interest rate | 4.25% | 4.25% | 4.25% | |||
Base Rate [Member] | U.S. dollar | Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit outstanding | $ 10,000,000 |
Debt (Senior Secured Credit Fac
Debt (Senior Secured Credit Facilities) (Details) - Senior Secured Facilities [Member] | 6 Months Ended |
Jun. 27, 2020USD ($) | |
Debt Instrument [Line Items] | |
Line of credit term | 5 years |
Secured Debt [Member] | Base Rate [Member] | U.S. dollar | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.00% |
Interest rate | 4.25% |
Term Loan A Facility [Member] | |
Debt Instrument [Line Items] | |
Face amount of debt instrument | $ 350,000,000 |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Line of credit, maximum borrowing capacity | 1,000,000,000 |
Company availability under revolving loan facility | 939,700,000 |
Revolving Credit Facility [Member] | Base Rate [Member] | U.S. dollar | |
Debt Instrument [Line Items] | |
Line of credit outstanding | $ 10,000,000 |
Letter of Credit [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] | |
Debt Instrument [Line Items] | |
Line of credit, maximum borrowing capacity | $ 50,000,000 |
Term Loan B Facility [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] | U.S. dollar | |
Debt Instrument [Line Items] | |
Line of credit outstanding | $ 495,000,000 |
Term Loan B Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | U.S. dollar | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.00% |
Interest rate | 2.18% |
Foreign Line of Credit [Member] | |
Debt Instrument [Line Items] | |
Line of credit outstanding | $ 10,300,000 |
Secured Debt [Member] | |
Debt Instrument [Line Items] | |
Line of credit, maximum borrowing capacity | $ 1,880,000,000 |
Secured Debt [Member] | Term Loan A Facility [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] | Canadian Prime Rate [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.00% |
Secured Debt [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Company availability under revolving loan facility | $ 948,300,000 |
Secured Debt [Member] | Term Loan B Facility [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] | Base Rate [Member] | U.S. dollar | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.00% |
Maximum [Member] | Letter of Credit [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Covenant, Leverage Ratio | 5.50 |
Minimum [Member] | Letter of Credit [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Covenant, Interest Ratio | 3 |
Debt Debt (Senior Notes Due 202
Debt Debt (Senior Notes Due 2026) (Details) - Senior Notes [Member] - Senior Notes 3.625% Due 2026 [Member] - EUR (€) | Jun. 27, 2020 | 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) - Senior Notes [Member] - Senior Notes 5.25% Due 2027 [Member] - USD ($) | Jun. 27, 2020 | Apr. 03, 2019 |
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 | Jun. 27, 2020USD ($) |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 8.5 |
Income tax penalties and interest accrued | 0.7 |
Significant change in unrecognized tax benefits is reasonably possible, estimated change, upper bound | $ 3.9 |
Other Comprehensive Income (Sch
Other Comprehensive Income (Schedule of OCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 27, 2020 | Mar. 28, 2020 | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Before-Tax Amount: | ||||||
Amortization of prior service cost | $ 8 | $ 9 | $ 16 | $ 18 | ||
Amortization of actuarial loss | 854 | 1,147 | 1,708 | 2,293 | ||
Total defined benefit pension plans | 862 | 1,156 | 1,724 | 2,311 | ||
Foreign currency translation | 20,852 | 16,652 | (45,035) | 11,259 | ||
Other Comprehensive income (loss) | 20,911 | 22,853 | (42,771) | 15,681 | ||
Tax (Expense) or Benefit: | ||||||
Amortization of prior service cost | (2) | (2) | (4) | (5) | ||
Amortization of actuarial loss | (213) | (295) | (425) | (589) | ||
Total defined benefit pension plans | (215) | (297) | (429) | (594) | ||
Foreign currency translation | (713) | (326) | (62) | 181 | ||
Other Comprehensive income (loss) | (1,582) | (2,062) | (633) | (855) | ||
Net-of-Tax Amount: | ||||||
Amortization of prior service cost | 6 | 7 | 12 | 13 | ||
Amortization of actuarial loss | 641 | 852 | 1,283 | 1,704 | ||
Total defined benefit pension plans | 647 | 859 | 1,295 | 1,717 | ||
Foreign currency translation | 20,139 | $ (65,236) | 16,326 | $ (4,886) | (45,097) | 11,440 |
Net current-period other comprehensive income | 19,329 | 20,791 | (43,404) | 14,826 | ||
Corn Option [Member] | ||||||
Before-Tax Amount: | ||||||
Loss (gain) reclassified to net income | 639 | (37) | 939 | (37) | ||
Gain (loss) activity recognized in other comprehensive loss | 1,768 | 67 | 1,649 | 67 | ||
Total swap derivatives | 2,407 | 30 | 2,588 | 30 | ||
Tax (Expense) or Benefit: | ||||||
Loss (gain) reclassified to net income | (160) | 10 | (235) | 10 | ||
Gain (loss) activity recognized in other comprehensive loss | (443) | (18) | (413) | (18) | ||
Total swap derivatives | (603) | (8) | (648) | (8) | ||
Net-of-Tax Amount: | ||||||
Loss (gain) reclassified to net income | 479 | (27) | 704 | (27) | ||
Gain (loss) activity recognized in other comprehensive loss | 1,325 | 49 | 1,236 | 49 | ||
Total swap derivatives | 1,804 | 136 | 22 | 1,940 | 22 | |
Heating Oil Swaps And Options [Member] | ||||||
Before-Tax Amount: | ||||||
Gain (loss) activity recognized in other comprehensive loss | (11,921) | 2,874 | 2,573 | 2,874 | ||
Total swap derivatives | (11,921) | 2,874 | 2,573 | 2,874 | ||
Tax (Expense) or Benefit: | ||||||
Gain (loss) activity recognized in other comprehensive loss | 2,981 | (741) | (643) | (741) | ||
Total swap derivatives | 2,981 | (741) | (643) | (741) | ||
Net-of-Tax Amount: | ||||||
Gain (loss) activity recognized in other comprehensive loss | (8,940) | 2,133 | 1,930 | 2,133 | ||
Total swap derivatives | (8,940) | 2,133 | 1,930 | 2,133 | ||
Foreign Exchange Contract [Member] | ||||||
Before-Tax Amount: | ||||||
Loss (gain) reclassified to net income | (4,835) | 287 | (5,247) | 287 | ||
Gain (loss) activity recognized in other comprehensive loss | 13,546 | 1,854 | 626 | (1,080) | ||
Total swap derivatives | 8,711 | 2,141 | (4,621) | (793) | ||
Tax (Expense) or Benefit: | ||||||
Loss (gain) reclassified to net income | 1,176 | (111) | 1,305 | (111) | ||
Gain (loss) activity recognized in other comprehensive loss | (4,208) | (579) | (156) | 418 | ||
Total swap derivatives | (3,032) | (690) | 1,149 | 307 | ||
Net-of-Tax Amount: | ||||||
Loss (gain) reclassified to net income | (3,659) | 176 | (3,942) | 176 | ||
Gain (loss) activity recognized in other comprehensive loss | 9,338 | 1,275 | 470 | (662) | ||
Total swap derivatives | 5,679 | (9,151) | 1,451 | (1,937) | $ (3,472) | $ (486) |
Accumulated Other Comprehensive Loss | ||||||
Net-of-Tax Amount: | ||||||
Foreign currency translation | 20,779 | (65,147) | 17,797 | (6,645) | ||
Accumulated Other Comprehensive Loss | Corn Option [Member] | ||||||
Net-of-Tax Amount: | ||||||
Total swap derivatives | 1,804 | 136 | 22 | |||
Accumulated Other Comprehensive Loss | Foreign Exchange Contract [Member] | ||||||
Net-of-Tax Amount: | ||||||
Total swap derivatives | $ 5,679 | $ (9,151) | $ 1,451 | $ (1,937) |
Other Comprehensive Income (Rec
Other Comprehensive Income (Reclassification out of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | $ 848,673 | $ 827,324 | $ 1,701,515 | $ 1,662,428 |
Cost of sales and operating expenses | 632,347 | 644,716 | 1,279,255 | 1,295,629 |
Income taxes | (19,946) | (7,776) | (38,246) | (13,050) |
Amortization of prior service cost | 8 | 9 | 16 | 18 |
Amortization of actuarial loss | 854 | 1,147 | 1,708 | 2,293 |
Net income attributable to Darling | 65,439 | 26,258 | 150,949 | 44,270 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income attributable to Darling | 2,533 | (1,008) | 1,943 | (1,866) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | 4,196 | (250) | 4,308 | (250) |
Income taxes | (1,016) | 101 | (1,070) | 101 |
Net income attributable to Darling | 3,180 | (149) | 3,238 | (149) |
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 | 4,835 | (287) | 5,247 | (287) |
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 | (639) | 37 | (939) | 37 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign Currency Translation [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | (862) | (1,156) | (1,724) | (2,311) |
Income taxes | 215 | 297 | 429 | 594 |
Amortization of prior service cost | (8) | (9) | (16) | (18) |
Amortization of actuarial loss | (854) | (1,147) | (1,708) | (2,293) |
Net income attributable to Darling | $ (647) | $ (859) | $ (1,295) | $ (1,717) |
Other Comprehensive Income (S_2
Other Comprehensive Income (Schedule of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 27, 2020 | Mar. 28, 2020 | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax | $ (862) | $ (1,156) | $ (1,724) | $ (2,311) | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Accumulated Other Comprehensive Income/(loss) December 28, 2019, attributable to Darling, net of tax | $ (321,847) | (321,847) | ||||
Other comprehensive loss before reclassifications | (41,461) | |||||
Amounts reclassified from accumulated other comprehensive loss | (1,943) | |||||
Net current-period other comprehensive income/(loss) | (43,404) | |||||
Noncontrolling interest | (729) | |||||
Accumulated Other Comprehensive Income/(loss) June 27, 2020, attributable to Darling, net of tax | (364,522) | (364,522) | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | (215) | (297) | (429) | (594) | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (647) | (859) | (1,295) | (1,717) | ||
Foreign currency translation | 20,852 | 16,652 | (45,035) | 11,259 | ||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 713 | 326 | 62 | (181) | ||
Foreign currency translation | 20,139 | (65,236) | 16,326 | $ (4,886) | (45,097) | 11,440 |
Other Comprehensive income (loss) | 20,911 | 22,853 | (42,771) | 15,681 | ||
Other Comprehensive Income (Loss), Tax | 1,582 | 2,062 | 633 | 855 | ||
Total other comprehensive income/(loss), net of tax | 19,329 | 20,791 | (43,404) | 14,826 | ||
Accumulated Other Comprehensive Loss | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Foreign currency translation | 20,779 | (65,147) | 17,797 | (6,645) | ||
Foreign Currency Translation [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Accumulated Other Comprehensive Income/(loss) December 28, 2019, attributable to Darling, net of tax | (282,338) | (282,338) | ||||
Other comprehensive loss before reclassifications | (45,097) | |||||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||||
Net current-period other comprehensive income/(loss) | (45,097) | |||||
Noncontrolling interest | (729) | |||||
Accumulated Other Comprehensive Income/(loss) June 27, 2020, attributable to Darling, net of tax | (326,706) | (326,706) | ||||
Derivative Instruments [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Accumulated Other Comprehensive Income/(loss) December 28, 2019, attributable to Darling, net of tax | (5,505) | (5,505) | ||||
Other comprehensive loss before reclassifications | 3,636 | |||||
Amounts reclassified from accumulated other comprehensive loss | (3,238) | |||||
Net current-period other comprehensive income/(loss) | 398 | |||||
Noncontrolling interest | 0 | |||||
Accumulated Other Comprehensive Income/(loss) June 27, 2020, attributable to Darling, net of tax | (5,107) | (5,107) | ||||
Defined Benefit Pension Plans [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Accumulated Other Comprehensive Income/(loss) December 28, 2019, attributable to Darling, net of tax | (34,004) | (34,004) | ||||
Other comprehensive loss before reclassifications | 0 | |||||
Amounts reclassified from accumulated other comprehensive loss | 1,295 | |||||
Net current-period other comprehensive income/(loss) | 1,295 | |||||
Noncontrolling interest | 0 | |||||
Accumulated Other Comprehensive Income/(loss) June 27, 2020, attributable to Darling, net of tax | (32,709) | (32,709) | ||||
Corn Option [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (639) | 37 | (939) | 37 | ||
Loss (gain) reclassified to net income | (160) | 10 | (235) | 10 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (479) | 27 | (704) | 27 | ||
Gain (loss) activity recognized in other comprehensive loss | 1,768 | 67 | 1,649 | 67 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 443 | 18 | 413 | 18 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 1,325 | 49 | 1,236 | 49 | ||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | 2,407 | 30 | 2,588 | 30 | ||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | 603 | 8 | 648 | 8 | ||
Derivative adjustments | 1,804 | 136 | 22 | 1,940 | 22 | |
Corn Option [Member] | Accumulated Other Comprehensive Loss | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Derivative adjustments | 1,804 | 136 | 22 | |||
Heating Oil Swaps And Options [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Gain (loss) activity recognized in other comprehensive loss | (11,921) | 2,874 | 2,573 | 2,874 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | (2,981) | 741 | 643 | 741 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (8,940) | 2,133 | 1,930 | 2,133 | ||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | (11,921) | 2,874 | 2,573 | 2,874 | ||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | (2,981) | 741 | 643 | 741 | ||
Derivative adjustments | (8,940) | 2,133 | 1,930 | 2,133 | ||
Foreign Exchange Contract [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 4,835 | (287) | 5,247 | (287) | ||
Loss (gain) reclassified to net income | 1,176 | (111) | 1,305 | (111) | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 3,659 | (176) | 3,942 | (176) | ||
Gain (loss) activity recognized in other comprehensive loss | 13,546 | 1,854 | 626 | (1,080) | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 4,208 | 579 | 156 | (418) | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 9,338 | 1,275 | 470 | (662) | ||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | 8,711 | 2,141 | (4,621) | (793) | ||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | 3,032 | 690 | (1,149) | (307) | ||
Derivative adjustments | 5,679 | (9,151) | 1,451 | (1,937) | $ (3,472) | $ (486) |
Foreign Exchange Contract [Member] | Accumulated Other Comprehensive Loss | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Derivative adjustments | $ 5,679 | $ (9,151) | $ 1,451 | $ (1,937) |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | Aug. 03, 2020 | Jan. 06, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Jun. 27, 2020 | Jun. 29, 2019 |
Class of Stock [Line Items] | ||||||
Grants in Period (in shares) | 550,934 | |||||
Grants in period (in shares) | 224,481 | |||||
Annual vesting after initial cliff | 33.33% | 33.33% | ||||
Performance period two | 3 years | |||||
Target percentage | 100.00% | 100.00% | ||||
Repurchase of common stock | $ 0 | $ 55,000,000 | $ 55,044,000 | $ 0 | ||
Remaining authorized repurchase amount | $ 125,800,000 | $ 125,800,000 | ||||
Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase program, period | 2 years | |||||
Stock repurchase program, authorized amount | $ 200,000,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020USD ($)plan | Jun. 29, 2019USD ($) | Jun. 27, 2020USD ($)plan | Jun. 29, 2019USD ($) | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Amount Company expects to contribute to its pension plans | $ 4,800 | $ 4,800 | ||
Payment for pension benefits | $ 2,400 | $ 1,500 | ||
Defined Benefit Plan, Additional Information [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 | $ 2,800 | $ 2,800 | ||
Multiemployer Plans, Withdrawal Obligation, Settlement | 2,500 | |||
Maximum [Member] | ||||
Defined Benefit Plan, Additional Information [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 | 749 | $ 683 | $ 1,504 | 1,361 |
Interest cost | 1,430 | 1,714 | 2,858 | 3,424 |
Expected return on plan assets | (2,032) | (1,817) | (4,071) | (3,636) |
Amortization of prior service cost | 8 | 9 | 16 | 18 |
Amortization of net loss | 854 | 1,147 | 1,708 | 2,293 |
Net pension cost | $ 1,009 | $ 1,736 | $ 2,015 | $ 3,460 |
Derivatives (Forward Contracts
Derivatives (Forward Contracts Not Designated as Hedging Instruments) (Details) - Jun. 27, 2020 - Not Designated as Hedging Instrument [Member] € in Thousands, ¥ in Thousands, ¥ in Thousands, £ in Thousands, zł in Thousands, R$ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | BRL (R$) | EUR (€) | USD ($) | PLN (zł) | JPY (¥) | CNY (¥) | AUD ($) | GBP (£) | CAD ($) |
BRI/EUR 1 [Member] | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | R$ | R$ 40217 | ||||||||
BRI/EUR 1 [Member] | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | € 6,750 | ||||||||
BRI/USD [Member] | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | R$ | R$ 1544422 | ||||||||
BRI/USD [Member] | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | $ | $ 345,911 | ||||||||
EUR/USD [Member] | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | 48,776 | ||||||||
EUR/USD [Member] | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | $ | 54,613 | ||||||||
EUR/PLN [Member] | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | 20,717 | ||||||||
EUR/PLN [Member] | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | zł | zł 92,000 | ||||||||
EUR/JPN [Member] | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | 7,241 | ||||||||
EUR/JPN [Member] | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | ¥ | ¥ 861,057 | ||||||||
EUR/CNY [Member] | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | 11,026 | ||||||||
EUR/CNY [Member] | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | ¥ | ¥ 87,689 | ||||||||
EUR/AUD [Member] | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | 15,266 | ||||||||
EUR/AUD [Member] | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | $ | $ 24,850 | ||||||||
EUR/GBP [Member] | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | 5,432 | ||||||||
EUR/GBP [Member] | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | £ | £ 4,832 | ||||||||
EUR/CAD | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | 33 | ||||||||
EUR/CAD | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | $ | $ 50 | ||||||||
PLN/EUR [Member] | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | zł | zł 19,707 | ||||||||
PLN/EUR [Member] | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | 4,427 | ||||||||
GBP/EUR | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | £ | 157 | ||||||||
GBP/EUR | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | 173 | ||||||||
GBP/USD [Member] | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | £ | £ 33 | ||||||||
GBP/USD [Member] | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | $ | 41 | ||||||||
JPN/USD [Member] | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | ¥ | 20,355 | ||||||||
JPN/USD [Member] | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | $ | 190 | ||||||||
USD/JPN | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | $ | 1,132 | ||||||||
USD/JPN | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | ¥ | ¥ 121,000 | ||||||||
USD/EUR | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | $ | $ 49,784 | ||||||||
USD/EUR | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | 45,000 | ||||||||
CNY/EUR | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | ¥ | ¥ 2,265 | ||||||||
CNY/EUR | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | € 284 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 27, 2020 | Mar. 28, 2020 | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Dec. 28, 2019 | |
Derivative [Line Items] | |||||||
Net income | $ 66,495,000 | $ 86,091,000 | $ 31,044,000 | $ 19,640,000 | $ 152,586,000 | $ 50,684,000 | |
Commodity Contract [Member] | |||||||
Derivative [Line Items] | |||||||
Forward purchase amount | 32,700,000 | 32,700,000 | |||||
Cash Flow Hedging [Member] | |||||||
Derivative [Line Items] | |||||||
Cash flow hedge gain (loss) to be reclassified within 12 months | 8,100,000 | ||||||
Net income | 0 | ||||||
Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Foreign Exchange Contract [Member] | |||||||
Derivative [Line Items] | |||||||
Asset Derivatives Fair Value | (100,000) | (100,000) | $ 1,300,000 | ||||
Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Corn Option [Member] | |||||||
Derivative [Line Items] | |||||||
Asset Derivatives Fair Value | $ 3,600,000 | $ 3,600,000 | $ 400,000 |
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 | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Derivative [Line Items] | ||||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | $ 1,812 | $ 135 | $ 5,098 | $ 1,901 |
Foreign Exchange Contract [Member] | Foreign Currency Gain (Loss) [Member] | ||||
Derivative [Line Items] | ||||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | 1,257 | (335) | (38) | 1,536 |
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 | 1,180 | (351) | 6,904 | 522 |
Foreign Exchange Contract [Member] | Sales [Member] | ||||
Derivative [Line Items] | ||||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | (107) | (234) | 623 | 62 |
Foreign Exchange Contract [Member] | Cost of Sales [Member] | ||||
Derivative [Line Items] | ||||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | (170) | 151 | (1,057) | (94) |
Corn options and futures [Member] | Sales [Member] | ||||
Derivative [Line Items] | ||||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | 935 | (612) | 1,790 | (262) |
Corn options and futures [Member] | Cost of Sales [Member] | ||||
Derivative [Line Items] | ||||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | (1,245) | 1,516 | (3,086) | 643 |
Heating Oil Swaps And Options [Member] | Sales [Member] | ||||
Derivative [Line Items] | ||||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | (38) | 0 | (38) | 0 |
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 | $ 0 | $ (506) |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Dec. 28, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments | $ 13,592 | $ 4,140 |
Total Assets | 13,592 | 4,140 |
Derivative instruments | 8,488 | 1,593 |
Total Liabilities | 1,597,410 | 1,675,050 |
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 | 13,592 | 4,140 |
Total Assets | 13,592 | 4,140 |
Derivative instruments | 8,488 | 1,593 |
Total Liabilities | 1,597,410 | 1,675,050 |
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 B Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 487,575 | 497,475 |
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 | 487,575 | 497,475 |
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 | 9,800 | 38,805 |
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 | 9,800 | 38,805 |
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 5.25% Due 2027 [Member] | Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 511,750 | 531,850 |
Senior Notes 5.25% Due 2027 [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 5.25% Due 2027 [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 | 511,750 | 531,850 |
Senior Notes 5.25% Due 2027 [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 | 579,797 | 605,327 |
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 | 579,797 | 605,327 |
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) | Jun. 30, 2018Party | Nov. 30, 2019USD ($) | Mar. 31, 2016Partymi | Jun. 27, 2020USD ($)contaminant | Dec. 28, 2019USD ($) |
Loss Contingencies [Line Items] | |||||
Area of land | mi | 8.3 | ||||
Estimate of possible loss | $ 1,380,000,000 | ||||
Number of parties | Party | 100 | 100 | |||
Number of contaminants | contaminant | 8 | ||||
Loss related to litigation settlement | $ 600,000 | ||||
Range of possible loss | $ 100,000 | ||||
Insurance Environmental and Litigation Matters [Member] | |||||
Loss Contingencies [Line Items] | |||||
Reserves for insurance, environmental and litigation contingencies | 67,500,000 | $ 70,500,000 | |||
Insurance settlements receivable | 26,200,000 | $ 26,200,000 | |||
Settled Litigation [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of parties | Party | 20 | ||||
Pending Litigation [Member] | |||||
Loss Contingencies [Line Items] | |||||
Estimate of possible loss | $ 165,000,000 | ||||
Number of parties | Party | 40 | ||||
Plant, One [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss related to litigation settlement | 300,000 | ||||
Plant, Two [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss related to litigation settlement | $ 300,000 |
Business Segments (Narrative) (
Business Segments (Narrative) (Details) | Jun. 27, 2020segment |
Segment Reporting [Abstract] | |
Number of Business Segments | 3 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Dec. 28, 2019 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | $ 848,673 | $ 827,324 | $ 1,701,515 | $ 1,662,428 | |
Cost of sales and operating expenses | 632,347 | 644,716 | 1,279,255 | 1,295,629 | |
Gain (Loss) on Disposition of Assets | (27) | 13,926 | (88) | 18,176 | |
Selling, general and administrative expenses | 90,193 | 81,017 | 186,386 | 166,020 | |
Depreciation and amortization | 83,310 | 79,486 | 167,981 | 158,650 | |
Equity in net income of Diamond Green Diesel | 63,492 | 38,093 | 161,312 | 62,370 | |
Operating income | 106,288 | 74,124 | 229,117 | 122,675 | |
Equity in net income/(loss) of other unconsolidated subsidiaries | 692 | 82 | 1,561 | (422) | |
Total other expense | (20,539) | (35,386) | (39,846) | (58,519) | |
Income before income taxes | 86,441 | 38,820 | 190,832 | 63,734 | |
Segment Assets | 5,327,154 | 5,327,154 | $ 5,345,258 | ||
Feed Ingredients | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | 503,690 | 487,447 | 1,016,315 | 983,266 | |
Cost of sales and operating expenses | 367,902 | 376,955 | 756,355 | 763,814 | |
Gross Margin | 135,788 | 110,492 | 259,960 | 219,452 | |
Gain (Loss) on Disposition of Assets | 76 | (524) | 126 | (4,914) | |
Selling, general and administrative expenses | 50,484 | 46,465 | 104,431 | 95,296 | |
Depreciation and amortization | 52,683 | 48,720 | 106,204 | 98,089 | |
Equity in net income of Diamond Green Diesel | 0 | 0 | 0 | 0 | |
Operating income | 32,545 | 15,831 | 49,199 | 30,981 | |
Equity in net income/(loss) of other unconsolidated subsidiaries | 692 | 82 | 1,561 | (422) | |
Segment income/(loss) | 33,237 | 15,913 | 50,760 | 30,559 | |
Segment Assets | 2,600,884 | 2,600,884 | 2,653,363 | ||
Food Ingredients | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | 278,934 | 274,835 | 549,228 | 553,999 | |
Cost of sales and operating expenses | 220,159 | 214,444 | 425,589 | 428,448 | |
Gross Margin | 58,775 | 60,391 | 123,639 | 125,551 | |
Gain (Loss) on Disposition of Assets | (48) | (13,379) | (46) | (13,265) | |
Selling, general and administrative expenses | 22,564 | 23,431 | 48,040 | 45,318 | |
Depreciation and amortization | 19,972 | 19,861 | 40,277 | 39,372 | |
Equity in net income of Diamond Green Diesel | 0 | 0 | 0 | 0 | |
Operating income | 16,287 | 30,478 | 35,368 | 54,126 | |
Equity in net income/(loss) of other unconsolidated subsidiaries | 0 | 0 | 0 | 0 | |
Segment income/(loss) | 16,287 | 30,478 | 35,368 | 54,126 | |
Segment Assets | 1,325,739 | 1,325,739 | 1,345,526 | ||
Fuel Ingredients | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | 66,049 | 65,042 | 135,972 | 125,163 | |
Cost of sales and operating expenses | 44,286 | 53,317 | 97,311 | 103,367 | |
Gross Margin | 21,763 | 11,725 | 38,661 | 21,796 | |
Gain (Loss) on Disposition of Assets | (1) | (23) | 8 | 3 | |
Selling, general and administrative expenses | 3,953 | 425 | 5,607 | (329) | |
Depreciation and amortization | 7,980 | 8,362 | 16,072 | 16,160 | |
Equity in net income of Diamond Green Diesel | 63,492 | 38,093 | 161,312 | 62,370 | |
Operating income | 73,323 | 41,054 | 178,286 | 68,332 | |
Equity in net income/(loss) of other unconsolidated subsidiaries | 0 | 0 | 0 | 0 | |
Segment income/(loss) | 73,323 | 41,054 | 178,286 | 68,332 | |
Segment Assets | 1,090,623 | 1,090,623 | 1,087,701 | ||
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 | 13,192 | 10,696 | 28,308 | 25,735 | |
Depreciation and amortization | 2,675 | 2,543 | 5,428 | 5,029 | |
Equity in net income of Diamond Green Diesel | 0 | 0 | 0 | 0 | |
Operating income | (15,867) | (13,239) | (33,736) | (30,764) | |
Equity in net income/(loss) of other unconsolidated subsidiaries | 0 | 0 | 0 | 0 | |
Segment income/(loss) | (15,867) | (13,239) | (33,736) | (30,764) | |
Segment Assets | 309,908 | 309,908 | 258,668 | ||
Total | |||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||
Net sales | 848,673 | 827,324 | 1,701,515 | 1,662,428 | |
Cost of sales and operating expenses | 632,347 | 644,716 | 1,279,255 | 1,295,629 | |
Gross Margin | 216,326 | 182,608 | 422,260 | 366,799 | |
Gain (Loss) on Disposition of Assets | 27 | (13,926) | 88 | (18,176) | |
Selling, general and administrative expenses | 90,193 | 81,017 | 186,386 | 166,020 | |
Depreciation and amortization | 83,310 | 79,486 | 167,981 | 158,650 | |
Equity in net income of Diamond Green Diesel | 63,492 | 38,093 | 161,312 | 62,370 | |
Operating income | 106,288 | 74,124 | 229,117 | 122,675 | |
Equity in net income/(loss) of other unconsolidated subsidiaries | 692 | 82 | 1,561 | (422) | |
Segment income/(loss) | 106,980 | $ 74,206 | 230,678 | $ 122,253 | |
Segment Assets | $ 5,327,154 | $ 5,327,154 | $ 5,345,258 |
Revenue (Details)
Revenue (Details) | Jun. 27, 2020source |
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 | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | $ 848,673 | $ 827,324 | $ 1,701,515 | $ 1,662,428 |
Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 503,690 | 487,447 | 1,016,315 | 983,266 |
Food Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 278,934 | 274,835 | 549,228 | 553,999 |
Fuel Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 66,049 | 65,042 | 135,972 | 125,163 |
North America | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 478,857 | 465,895 | 958,135 | 930,655 |
North America | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 419,318 | 401,450 | 846,781 | 811,687 |
North America | Food Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 58,548 | 54,801 | 104,963 | 103,614 |
North America | Fuel Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 991 | 9,644 | 6,391 | 15,354 |
Europe | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 300,850 | 282,062 | 604,403 | 568,123 |
Europe | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 78,466 | 78,857 | 158,909 | 158,855 |
Europe | Food Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 157,326 | 147,807 | 315,913 | 299,459 |
Europe | Fuel Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 65,058 | 55,398 | 129,581 | 109,809 |
China | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 48,397 | 47,937 | 90,776 | 97,826 |
China | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 3,354 | 4,953 | 5,777 | 7,905 |
China | Food Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 45,043 | 42,984 | 84,999 | 89,921 |
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 | 2,080 | 12,121 | 12,666 | 24,790 |
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 | 2,080 | 12,121 | 12,666 | 24,790 |
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 | 18,489 | 19,309 | 35,535 | 41,034 |
Other | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 2,552 | 2,187 | 4,848 | 4,819 |
Other | Food Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 15,937 | 17,122 | 30,687 | 36,215 |
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 | 199,346 | 174,327 | 396,106 | 354,341 |
Fats | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 167,507 | 143,542 | 330,791 | 288,418 |
Fats | Food Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 31,839 | 30,785 | 65,315 | 65,923 |
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 | 39,007 | 45,299 | 86,615 | 90,705 |
Used cooking oil | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 39,007 | 45,299 | 86,615 | 90,705 |
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 | 210,141 | 200,385 | 406,121 | 406,198 |
Proteins | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 210,141 | 200,385 | 406,121 | 406,198 |
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 | 37,964 | 44,415 | 85,065 | 90,071 |
Bakery | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 37,964 | 44,415 | 85,065 | 90,071 |
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 | 39,464 | 40,883 | 86,628 | 82,137 |
Other rendering | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 39,464 | 40,883 | 86,628 | 82,137 |
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 | 223,526 | 223,236 | 438,319 | 445,144 |
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 | 223,526 | 223,236 | 438,319 | 445,144 |
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 | 65,058 | 55,398 | 129,581 | 109,809 |
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 | 65,058 | 55,398 | 129,581 | 109,809 |
Biofuels | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 991 | 9,644 | 6,391 | 15,354 |
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 | 991 | 9,644 | 6,391 | 15,354 |
Other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 33,176 | 33,737 | 66,689 | 68,669 |
Other | Feed Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 9,607 | 12,923 | 21,095 | 25,737 |
Other | Food Ingredients | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 23,569 | 20,814 | 45,594 | 42,932 |
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 | 6 Months Ended |
Jun. 27, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized | $ 16.6 |
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]: 2020-03-29 $ in Millions | Jun. 27, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 3 years |
Remaining performance obligation | $ 204.9 |
Related Party Transactions (Det
Related Party Transactions (Details) | Mar. 30, 2019 | Jun. 27, 2020USD ($) | Jun. 29, 2019USD ($) | Jun. 27, 2020USD ($) | Jun. 29, 2019USD ($) | Feb. 29, 2020USD ($)agreement | Dec. 28, 2019USD ($) | May 01, 2019USD ($) |
Related Party Transaction [Line Items] | ||||||||
Number Of Terminaling Agreements | agreement | 2 | |||||||
Related Party, Unrecorded Unconditional Guarantee | $ 50,000,000 | |||||||
Diamond Green Diesel Holdings LLC Joint Venture [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Revenue from Related Parties | $ 72,300,000 | $ 51,000,000 | $ 134,400,000 | $ 102,200,000 | ||||
Accounts Receivable, Related Parties, Current | 13,700,000 | 13,700,000 | $ 17,800,000 | |||||
Related Party Sales Eliminated | 8,600,000 | 7,800,000 | ||||||
Deferred Revenue, Additions | 1,700,000 | $ 1,400,000 | ||||||
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] | Jun. 27, 2020 | 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 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 |
ASSETS | ||||||
Cash and cash equivalents | $ 76,185 | $ 72,935 | ||||
Restricted cash | 103 | 110 | ||||
Accounts receivable | 375,908 | 406,338 | ||||
Inventories | 394,708 | 362,957 | ||||
Income taxes refundable | 3,752 | 3,317 | ||||
Prepaid expenses | 46,003 | 46,599 | ||||
Other current assets | 34,392 | 25,032 | ||||
Total current assets | 931,051 | 917,288 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Property, plant and equipment, net | 1,773,329 | 1,802,411 | ||||
Intangible assets, net | 485,148 | 526,394 | ||||
Goodwill | 1,217,177 | 1,223,291 | ||||
Investment in unconsolidated subsidiaries | 729,094 | 689,354 | ||||
Operating right-of-use assets, net | 134,901 | 124,726 | ||||
Other assets | 41,651 | 47,400 | ||||
Deferred income taxes | 14,803 | 14,394 | ||||
Total assets | 5,327,154 | 5,345,258 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Current portion of long-term debt | 42,758 | 90,996 | ||||
Accounts payable | 197,528 | 239,252 | ||||
Income taxes payable | 16,474 | 8,895 | ||||
Operating lease liability, current | 39,532 | 37,805 | ||||
Accrued expenses | 310,004 | 311,391 | ||||
Total current liabilities | 606,296 | 688,339 | ||||
Long-term debt, net of current portion | 1,553,118 | 1,558,429 | ||||
Operating lease liability, non-current | 99,482 | 91,424 | ||||
Other non-current liabilities | 109,046 | 115,785 | ||||
Deferred income taxes | 260,858 | 247,931 | ||||
Total liabilities | 2,628,800 | 2,701,908 | ||||
Total stockholders’ equity | 2,698,354 | $ 2,608,442 | 2,643,350 | $ 2,406,635 | $ 2,356,699 | $ 2,335,821 |
Total liabilities and stockholders' equity | 5,327,154 | 5,345,258 | ||||
Parent [Member] | ||||||
ASSETS | ||||||
Cash and cash equivalents | 968 | 551 | ||||
Restricted cash | 103 | 103 | ||||
Accounts receivable | 45,605 | 51,097 | ||||
Inventories | 21,711 | 26,893 | ||||
Income taxes refundable | 1,322 | 1,106 | ||||
Prepaid expenses | 18,001 | 20,888 | ||||
Other current assets | 7,528 | 5,399 | ||||
Total current assets | 95,238 | 106,037 | ||||
Investment in subsidiaries | 5,602,453 | 5,365,956 | ||||
Property, plant and equipment, net | 432,057 | 434,237 | ||||
Intangible assets, net | 41,583 | 44,404 | ||||
Goodwill | 49,902 | 49,902 | ||||
Investment in unconsolidated subsidiaries | 0 | 0 | ||||
Operating right-of-use assets, net | 79,306 | 74,005 | ||||
Other assets | 34,704 | 35,456 | ||||
Deferred income taxes | 0 | 0 | ||||
Total assets | 6,335,243 | 6,109,997 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Current portion of long-term debt | 20,315 | 40,916 | ||||
Accounts payable | 1,033,477 | 893,490 | ||||
Income taxes payable | 2,882 | (10) | ||||
Operating lease liability, current | 20,873 | 20,454 | ||||
Accrued expenses | 93,432 | 116,758 | ||||
Total current liabilities | 1,170,979 | 1,071,608 | ||||
Long-term debt, net of current portion | 1,032,352 | 1,040,974 | ||||
Operating lease liability, non-current | 63,948 | 58,970 | ||||
Other non-current liabilities | 75,902 | 80,409 | ||||
Deferred income taxes | 142,606 | 122,109 | ||||
Total liabilities | 2,485,787 | 2,374,070 | ||||
Total stockholders’ equity | 3,849,456 | 3,735,927 | ||||
Total liabilities and stockholders' equity | 6,335,243 | 6,109,997 | ||||
Guarantors [Member] | ||||||
ASSETS | ||||||
Cash and cash equivalents | 25 | 26 | ||||
Restricted cash | 0 | 0 | ||||
Accounts receivable | 694,352 | 702,945 | ||||
Inventories | 96,458 | 86,609 | ||||
Income taxes refundable | 0 | 0 | ||||
Prepaid expenses | 3,316 | 2,241 | ||||
Other current assets | (3,720) | (2,326) | ||||
Total current assets | 790,431 | 789,495 | ||||
Investment in subsidiaries | 1,283,699 | 1,366,635 | ||||
Property, plant and equipment, net | 518,120 | 524,577 | ||||
Intangible assets, net | 155,546 | 170,581 | ||||
Goodwill | 490,748 | 490,748 | ||||
Investment in unconsolidated subsidiaries | 0 | 0 | ||||
Operating right-of-use assets, net | 29,662 | 31,243 | ||||
Other assets | 134 | 134 | ||||
Deferred income taxes | 0 | 0 | ||||
Total assets | 3,268,340 | 3,373,413 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Current portion of long-term debt | 11 | 10 | ||||
Accounts payable | 19,961 | 29,535 | ||||
Income taxes payable | 0 | 0 | ||||
Operating lease liability, current | 10,520 | 10,510 | ||||
Accrued expenses | 26,689 | 32,861 | ||||
Total current liabilities | 57,181 | 72,916 | ||||
Long-term debt, net of current portion | 25 | 30 | ||||
Operating lease liability, non-current | 18,767 | 20,281 | ||||
Other non-current liabilities | 0 | 0 | ||||
Deferred income taxes | 0 | 0 | ||||
Total liabilities | 75,973 | 93,227 | ||||
Total stockholders’ equity | 3,192,367 | 3,280,186 | ||||
Total liabilities and stockholders' equity | 3,268,340 | 3,373,413 | ||||
Non-guarantors [Member] | ||||||
ASSETS | ||||||
Cash and cash equivalents | 75,192 | 72,358 | ||||
Restricted cash | 0 | 7 | ||||
Accounts receivable | 642,619 | 518,614 | ||||
Inventories | 276,539 | 249,455 | ||||
Income taxes refundable | 2,430 | 2,211 | ||||
Prepaid expenses | 24,686 | 23,470 | ||||
Other current assets | 44,049 | 40,872 | ||||
Total current assets | 1,065,515 | 906,987 | ||||
Investment in subsidiaries | 844,045 | 844,043 | ||||
Property, plant and equipment, net | 823,152 | 843,597 | ||||
Intangible assets, net | 288,019 | 311,409 | ||||
Goodwill | 676,527 | 682,641 | ||||
Investment in unconsolidated subsidiaries | 729,094 | 689,354 | ||||
Operating right-of-use assets, net | 25,933 | 19,478 | ||||
Other assets | 57,258 | 61,974 | ||||
Deferred income taxes | 14,803 | 14,394 | ||||
Total assets | 4,524,346 | 4,373,877 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Current portion of long-term debt | 35,897 | 68,983 | ||||
Accounts payable | 150,752 | 182,484 | ||||
Income taxes payable | 13,592 | 8,905 | ||||
Operating lease liability, current | 8,139 | 6,841 | ||||
Accrued expenses | 189,889 | 161,833 | ||||
Total current liabilities | 398,269 | 429,046 | ||||
Long-term debt, net of current portion | 571,186 | 567,589 | ||||
Operating lease liability, non-current | 16,767 | 12,173 | ||||
Other non-current liabilities | 33,144 | 35,376 | ||||
Deferred income taxes | 118,252 | 125,822 | ||||
Total liabilities | 1,137,618 | 1,170,006 | ||||
Total stockholders’ equity | 3,386,728 | 3,203,871 | ||||
Total liabilities and stockholders' equity | 4,524,346 | 4,373,877 | ||||
Eliminations [Member] | ||||||
ASSETS | ||||||
Operating right-of-use assets, net | 0 | 0 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Operating lease liability, current | 0 | 0 | ||||
Operating lease liability, non-current | 0 | 0 | ||||
Eliminations [Member] | ||||||
ASSETS | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Restricted cash | 0 | 0 | ||||
Accounts receivable | (1,006,668) | (866,318) | ||||
Inventories | 0 | 0 | ||||
Income taxes refundable | 0 | 0 | ||||
Prepaid expenses | 0 | 0 | ||||
Other current assets | (13,465) | (18,913) | ||||
Total current assets | (1,020,133) | (885,231) | ||||
Investment in subsidiaries | (7,730,197) | (7,576,634) | ||||
Property, plant and equipment, net | 0 | 0 | ||||
Intangible assets, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Investment in unconsolidated subsidiaries | 0 | 0 | ||||
Other assets | (50,445) | (50,164) | ||||
Deferred income taxes | 0 | 0 | ||||
Total assets | (8,800,775) | (8,512,029) | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
Current portion of long-term debt | (13,465) | (18,913) | ||||
Accounts payable | (1,006,662) | (866,257) | ||||
Income taxes payable | 0 | 0 | ||||
Accrued expenses | (6) | (61) | ||||
Total current liabilities | (1,020,133) | (885,231) | ||||
Long-term debt, net of current portion | (50,445) | (50,164) | ||||
Other non-current liabilities | 0 | 0 | ||||
Deferred income taxes | 0 | 0 | ||||
Total liabilities | (1,070,578) | (935,395) | ||||
Total stockholders’ equity | (7,730,197) | (7,576,634) | ||||
Total liabilities and stockholders' equity | $ (8,800,775) | $ (8,512,029) |
Guarantor Financial Informati_5
Guarantor Financial Information (Condensed Consolidated Statements of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Net sales | $ 848,673 | $ 827,324 | $ 1,701,515 | $ 1,662,428 |
Costs and expenses: | ||||
Cost of sales and operating expenses | 632,347 | 644,716 | 1,279,255 | 1,295,629 |
Loss (gain) on disposal of property, plant, equipment and other assets | 27 | (13,926) | 88 | (18,176) |
Selling, general and administrative expenses | 90,193 | 81,017 | 186,386 | 166,020 |
Depreciation and amortization | 83,310 | 79,486 | 167,981 | 158,650 |
Total costs and expenses | 805,877 | 791,293 | 1,633,710 | 1,602,123 |
Equity in net income of Diamond Green Diesel | 63,492 | 38,093 | 161,312 | 62,370 |
Operating income | 106,288 | 74,124 | 229,117 | 122,675 |
Interest expense | (17,920) | (20,853) | (37,010) | (40,729) |
Foreign currency gain/(loss) | (1,134) | (388) | 530 | (1,120) |
Other income/(expense), net | (1,485) | (2,019) | (3,366) | (4,544) |
Equity in net income/(loss) of other unconsolidated subsidiaries | 692 | 82 | 1,561 | (422) |
Earnings in investments in subsidiaries | 0 | 0 | 0 | 0 |
Income before income taxes | 86,441 | 38,820 | 190,832 | 63,734 |
Income tax expense | 19,946 | 7,776 | 38,246 | 13,050 |
Net income attributable to noncontrolling interests | (1,056) | (4,786) | (1,637) | (6,414) |
Net income attributable to Darling | 65,439 | 26,258 | 150,949 | 44,270 |
Debt extinguishment costs | 0 | (12,126) | 0 | (12,126) |
Parent [Member] | ||||
Net sales | 185,915 | 156,927 | 366,834 | 317,157 |
Costs and expenses: | ||||
Cost of sales and operating expenses | 140,742 | 125,586 | 284,884 | 253,910 |
Loss (gain) on disposal of property, plant, equipment and other assets | 76 | (26) | 38 | 42 |
Selling, general and administrative expenses | 44,937 | 40,570 | 93,011 | 87,993 |
Depreciation and amortization | 16,989 | 14,224 | 34,261 | 28,597 |
Total costs and expenses | 202,744 | 180,354 | 412,194 | 370,542 |
Equity in net income of Diamond Green Diesel | 0 | 0 | 0 | 0 |
Operating income | (16,829) | (23,427) | (45,360) | (53,385) |
Interest expense | (12,451) | (15,078) | (26,226) | (29,105) |
Foreign currency gain/(loss) | (184) | 3 | (510) | (1) |
Other income/(expense), net | (1,200) | (1,285) | (2,740) | (2,852) |
Equity in net income/(loss) of other unconsolidated subsidiaries | 0 | (1,027) | 0 | (1,918) |
Earnings in investments in subsidiaries | 88,848 | 68,680 | 210,787 | 123,307 |
Income before income taxes | 58,184 | 15,740 | 135,951 | 23,920 |
Income tax expense | (7,255) | (10,518) | (14,998) | (20,350) |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Darling | 65,439 | 26,258 | 150,949 | 44,270 |
Debt extinguishment costs | (12,126) | (12,126) | ||
Guarantors [Member] | ||||
Net sales | 310,650 | 325,744 | 620,951 | 655,735 |
Costs and expenses: | ||||
Cost of sales and operating expenses | 245,968 | 268,582 | 492,288 | 540,253 |
Loss (gain) on disposal of property, plant, equipment and other assets | (8) | (511) | 55 | (4,988) |
Selling, general and administrative expenses | 11,024 | 10,776 | 23,541 | 22,723 |
Depreciation and amortization | 26,223 | 25,165 | 52,816 | 51,277 |
Total costs and expenses | 283,207 | 304,012 | 568,700 | 609,265 |
Equity in net income of Diamond Green Diesel | 0 | 0 | 0 | 0 |
Operating income | 27,443 | 21,732 | 52,251 | 46,470 |
Interest expense | (44) | (24) | (102) | (56) |
Foreign currency gain/(loss) | (1) | 1 | (25) | 1 |
Other income/(expense), net | (290) | (764) | (629) | (1,976) |
Equity in net income/(loss) of other unconsolidated subsidiaries | 0 | 0 | 0 | 0 |
Earnings in investments in subsidiaries | 0 | 0 | 0 | 0 |
Income before income taxes | 27,108 | 20,945 | 51,495 | 44,439 |
Income tax expense | 6,045 | 4,126 | 10,320 | 9,099 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Darling | 21,063 | 16,819 | 41,175 | 35,340 |
Debt extinguishment costs | 0 | 0 | ||
Non-guarantors [Member] | ||||
Net sales | 404,358 | 399,339 | 809,383 | 803,250 |
Costs and expenses: | ||||
Cost of sales and operating expenses | 297,887 | 305,234 | 597,736 | 615,180 |
Loss (gain) on disposal of property, plant, equipment and other assets | (41) | (13,389) | (5) | (13,230) |
Selling, general and administrative expenses | 34,232 | 29,671 | 69,834 | 55,304 |
Depreciation and amortization | 40,098 | 40,097 | 80,904 | 78,776 |
Total costs and expenses | 372,176 | 361,613 | 748,469 | 736,030 |
Equity in net income of Diamond Green Diesel | 63,492 | 38,093 | 161,312 | 62,370 |
Operating income | 95,674 | 75,819 | 222,226 | 129,590 |
Interest expense | (5,425) | (5,751) | (10,682) | (11,568) |
Foreign currency gain/(loss) | (949) | (392) | 1,065 | (1,120) |
Other income/(expense), net | 5 | 30 | 3 | 284 |
Equity in net income/(loss) of other unconsolidated subsidiaries | 692 | 1,109 | 1,561 | 1,496 |
Earnings in investments in subsidiaries | 0 | 0 | 0 | 0 |
Income before income taxes | 89,997 | 70,815 | 214,173 | 118,682 |
Income tax expense | 21,156 | 14,168 | 42,924 | 24,301 |
Net income attributable to noncontrolling interests | (1,056) | (4,786) | (1,637) | (6,414) |
Net income attributable to Darling | 67,785 | 51,861 | 169,612 | 87,967 |
Debt extinguishment costs | 0 | 0 | ||
Eliminations [Member] | ||||
Costs and expenses: | ||||
Equity in net income of Diamond Green Diesel | 0 | 0 | 0 | 0 |
Eliminations [Member] | ||||
Net sales | (52,250) | (54,686) | (95,653) | (113,714) |
Costs and expenses: | ||||
Cost of sales and operating expenses | (52,250) | (54,686) | (95,653) | (113,714) |
Loss (gain) on disposal of property, plant, equipment and other assets | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Total costs and expenses | (52,250) | (54,686) | (95,653) | (113,714) |
Operating income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Foreign currency gain/(loss) | 0 | 0 | 0 | 0 |
Other income/(expense), net | 0 | 0 | 0 | 0 |
Equity in net income/(loss) of other unconsolidated subsidiaries | 0 | 0 | 0 | 0 |
Earnings in investments in subsidiaries | (88,848) | (68,680) | (210,787) | (123,307) |
Income before income taxes | (88,848) | (68,680) | (210,787) | (123,307) |
Income tax expense | 0 | 0 | 0 | 0 |
Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income attributable to Darling | $ (88,848) | (68,680) | $ (210,787) | (123,307) |
Debt extinguishment costs | $ 0 | $ 0 |
Guarantor Financial Informati_6
Guarantor Financial Information (Condensed Consolidated Statements of Comprehensive Income) (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 27, 2020 | Mar. 28, 2020 | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Net income | $ 66,495 | $ 86,091 | $ 31,044 | $ 19,640 | $ 152,586 | $ 50,684 |
Other comprehensive income, net of tax: | ||||||
Foreign currency translation | 20,139 | (65,236) | 16,326 | (4,886) | (45,097) | 11,440 |
Pension adjustments | 647 | 859 | 1,295 | 1,717 | ||
Total other comprehensive income/(loss), net of tax | 19,329 | 20,791 | (43,404) | 14,826 | ||
Total comprehensive income/(loss) | 85,824 | 51,835 | 109,182 | 65,510 | ||
Comprehensive income attributable to noncontrolling interests | 416 | 3,315 | 908 | 6,702 | ||
Comprehensive income attributable to Darling | 85,408 | 48,520 | 108,274 | 58,808 | ||
Parent [Member] | ||||||
Net income | 66,495 | 31,044 | 152,586 | 50,684 | ||
Other comprehensive income, net of tax: | ||||||
Foreign currency translation | (1,364) | (326) | (713) | 181 | ||
Pension adjustments | 518 | 766 | 1,036 | 1,533 | ||
Total other comprehensive income/(loss), net of tax | 958 | 462 | 2,263 | 1,736 | ||
Total comprehensive income/(loss) | 67,453 | 31,506 | 154,849 | 52,420 | ||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Comprehensive income attributable to Darling | 67,453 | 31,506 | 154,849 | 52,420 | ||
Guarantors [Member] | ||||||
Net income | 21,063 | 16,819 | 41,175 | 35,340 | ||
Other comprehensive income, net of tax: | ||||||
Foreign currency translation | 0 | 0 | (128,994) | 0 | ||
Pension adjustments | 0 | 0 | 0 | 0 | ||
Total other comprehensive income/(loss), net of tax | 0 | 0 | (128,994) | 0 | ||
Total comprehensive income/(loss) | 21,063 | 16,819 | (87,819) | 35,340 | ||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Comprehensive income attributable to Darling | 21,063 | 16,819 | (87,819) | 35,340 | ||
Non-guarantors [Member] | ||||||
Net income | 67,785 | 51,861 | 169,612 | 87,967 | ||
Other comprehensive income, net of tax: | ||||||
Foreign currency translation | 21,503 | 16,652 | 84,610 | 11,259 | ||
Pension adjustments | 129 | 93 | 259 | 184 | ||
Total other comprehensive income/(loss), net of tax | 18,371 | 20,329 | 83,327 | 13,090 | ||
Total comprehensive income/(loss) | 86,156 | 72,190 | 252,939 | 101,057 | ||
Comprehensive income attributable to noncontrolling interests | 416 | 3,315 | 908 | 6,702 | ||
Comprehensive income attributable to Darling | 85,740 | 68,875 | 252,031 | 94,355 | ||
Eliminations [Member] | ||||||
Other comprehensive income, net of tax: | ||||||
Derivative adjustments | 0 | 0 | ||||
Corn Option [Member] | ||||||
Other comprehensive income, net of tax: | ||||||
Derivative adjustments | 1,804 | 136 | 22 | 1,940 | 22 | |
Corn Option [Member] | Parent [Member] | ||||||
Other comprehensive income, net of tax: | ||||||
Derivative adjustments | 1,804 | 22 | 1,940 | 22 | ||
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 | (8,940) | 2,133 | 1,930 | 2,133 | ||
Heating Oil Swaps And Options [Member] | Parent [Member] | ||||||
Other comprehensive income, net of tax: | ||||||
Derivative adjustments | 0 | 0 | 0 | 0 | ||
Heating Oil Swaps And Options [Member] | Guarantors [Member] | ||||||
Other comprehensive income, net of tax: | ||||||
Derivative adjustments | 0 | 0 | 0 | 0 | ||
Heating Oil Swaps And Options [Member] | Non-guarantors [Member] | ||||||
Other comprehensive income, net of tax: | ||||||
Derivative adjustments | (8,940) | 2,133 | 1,930 | 2,133 | ||
Foreign Exchange Contract [Member] | ||||||
Other comprehensive income, net of tax: | ||||||
Derivative adjustments | 5,679 | $ (9,151) | 1,451 | $ (1,937) | (3,472) | (486) |
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 | 5,679 | 1,451 | (3,472) | (486) | ||
Eliminations [Member] | ||||||
Net income | (88,848) | (68,680) | (210,787) | (123,307) | ||
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) | (88,848) | (68,680) | (210,787) | (123,307) | ||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Comprehensive income attributable to Darling | $ (88,848) | $ (68,680) | $ (210,787) | $ (123,307) |
Guarantor Financial Informati_7
Guarantor Financial Information (Condensed Consolidated Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jan. 31, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Jun. 29, 2019 | Mar. 30, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Cash flows from operating activities: | |||||||
Net income | $ 66,495 | $ 86,091 | $ 31,044 | $ 19,640 | $ 152,586 | $ 50,684 | |
Earnings in investments in subsidiaries | 0 | 0 | 0 | 0 | |||
Other operating cash flows | 111,063 | 103,620 | |||||
Net cash provided by operating activities | 263,649 | 154,304 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (123,204) | (167,871) | |||||
Acquisitions | $ (12,200) | 0 | (1,431) | ||||
Investment in subsidiaries and affiliates | 0 | (1,000) | |||||
Gross proceeds from disposal of property, plant and equipment and other assets | 1,053 | 9,814 | |||||
Proceeds from insurance settlement | 0 | 845 | |||||
Payments related to routes and other intangibles | (3,712) | (3,150) | |||||
Net cash used by investing activities | (125,863) | (162,793) | |||||
Cash flows from financing activities: | |||||||
Proceeds from long-term debt | 16,164 | 507,722 | |||||
Payments on long-term debt | (18,239) | (526,230) | |||||
Borrowings from revolving credit facility | 375,971 | 273,485 | |||||
Payments on revolving credit facility | (405,800) | (266,884) | |||||
Net cash overdraft financing | (26,461) | 11,178 | |||||
Payments of Debt Issuance Costs | 0 | (7,003) | |||||
Issuance of common stock | 67 | 12 | |||||
Repurchase of common stock | 0 | (55,000) | (55,044) | 0 | |||
Contributions from parent | 0 | 0 | |||||
Minimum withholding taxes paid on stock awards | (4,863) | (3,193) | |||||
Acquisition of noncontrolling interest | (8,784) | ||||||
Distributions to noncontrolling interests | (987) | 0 | |||||
Net cash used by financing activities | (127,976) | (10,913) | |||||
Effect of exchange rate changes on cash | (6,567) | (853) | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 3,243 | (20,255) | |||||
Cash, cash equivalents and restricted cash at beginning of period | 73,045 | 107,369 | 73,045 | 107,369 | |||
Cash, cash equivalents and restricted cash at end of period | 76,288 | 87,114 | 76,288 | 87,114 | |||
Parent [Member] | |||||||
Cash flows from operating activities: | |||||||
Net income | 66,495 | 31,044 | 152,586 | 50,684 | |||
Earnings in investments in subsidiaries | (88,848) | (68,680) | (210,787) | (123,307) | |||
Other operating cash flows | 198,633 | 116,433 | |||||
Net cash provided by operating activities | 140,432 | 43,810 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (28,661) | (63,517) | |||||
Acquisitions | (1,157) | ||||||
Investment in subsidiaries and affiliates | (17,534) | (1,393) | |||||
Gross proceeds from disposal of property, plant and equipment and other assets | 30 | 250 | |||||
Proceeds from insurance settlement | 0 | ||||||
Payments related to routes and other intangibles | (3,416) | (131) | |||||
Net cash used by investing activities | (49,581) | (65,948) | |||||
Cash flows from financing activities: | |||||||
Proceeds from long-term debt | 0 | 500,000 | |||||
Payments on long-term debt | (2) | (507,622) | |||||
Borrowings from revolving credit facility | 233,000 | 134,000 | |||||
Payments on revolving credit facility | (262,000) | (96,000) | |||||
Net cash overdraft financing | (1,604) | 4,510 | |||||
Payments of Debt Issuance Costs | (7,003) | ||||||
Issuance of common stock | 67 | 12 | |||||
Repurchase of common stock | (55,044) | ||||||
Contributions from parent | 0 | 0 | |||||
Minimum withholding taxes paid on stock awards | (4,851) | (3,192) | |||||
Acquisition of noncontrolling interest | 0 | ||||||
Distributions to noncontrolling interests | 0 | ||||||
Net cash used by financing activities | (90,434) | 24,705 | |||||
Effect of exchange rate changes on cash | 0 | 0 | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 417 | 2,567 | |||||
Cash, cash equivalents and restricted cash at beginning of period | 654 | 1,098 | 654 | 1,098 | |||
Cash, cash equivalents and restricted cash at end of period | 1,071 | 3,665 | 1,071 | 3,665 | |||
Guarantors [Member] | |||||||
Cash flows from operating activities: | |||||||
Net income | 21,063 | 16,819 | 41,175 | 35,340 | |||
Earnings in investments in subsidiaries | 0 | 0 | 0 | 0 | |||
Other operating cash flows | (7,774) | 884 | |||||
Net cash provided by operating activities | 33,401 | 36,224 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (33,673) | (44,720) | |||||
Acquisitions | 0 | ||||||
Investment in subsidiaries and affiliates | 0 | (393) | |||||
Gross proceeds from disposal of property, plant and equipment and other assets | 275 | 7,654 | |||||
Proceeds from insurance settlement | 845 | ||||||
Payments related to routes and other intangibles | 0 | 0 | |||||
Net cash used by investing activities | (33,398) | (36,614) | |||||
Cash flows from financing activities: | |||||||
Proceeds from long-term debt | 0 | 0 | |||||
Payments on long-term debt | (4) | (3) | |||||
Borrowings from revolving credit facility | 0 | 0 | |||||
Payments on revolving credit facility | 0 | 0 | |||||
Net cash overdraft financing | 0 | 0 | |||||
Payments of Debt Issuance Costs | 0 | ||||||
Issuance of common stock | 0 | 0 | |||||
Repurchase of common stock | 0 | ||||||
Contributions from parent | 0 | 393 | |||||
Minimum withholding taxes paid on stock awards | 0 | 0 | |||||
Acquisition of noncontrolling interest | 0 | ||||||
Distributions to noncontrolling interests | 0 | ||||||
Net cash used by financing activities | (4) | 390 | |||||
Effect of exchange rate changes on cash | 0 | 0 | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (1) | 0 | |||||
Cash, cash equivalents and restricted cash at beginning of period | 26 | 32 | 26 | 32 | |||
Cash, cash equivalents and restricted cash at end of period | 25 | 32 | 25 | 32 | |||
Non-guarantors [Member] | |||||||
Cash flows from operating activities: | |||||||
Net income | 67,785 | 51,861 | 169,612 | 87,967 | |||
Earnings in investments in subsidiaries | 0 | 0 | 0 | 0 | |||
Other operating cash flows | (79,796) | (13,697) | |||||
Net cash provided by operating activities | 89,816 | 74,270 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (60,870) | (59,634) | |||||
Acquisitions | (274) | ||||||
Investment in subsidiaries and affiliates | 0 | 0 | |||||
Gross proceeds from disposal of property, plant and equipment and other assets | 748 | 1,910 | |||||
Proceeds from insurance settlement | 0 | ||||||
Payments related to routes and other intangibles | (296) | (3,019) | |||||
Net cash used by investing activities | (60,418) | (61,017) | |||||
Cash flows from financing activities: | |||||||
Proceeds from long-term debt | 16,164 | 7,722 | |||||
Payments on long-term debt | (18,233) | (18,605) | |||||
Borrowings from revolving credit facility | 142,971 | 139,485 | |||||
Payments on revolving credit facility | (143,800) | (170,884) | |||||
Net cash overdraft financing | (24,857) | 6,668 | |||||
Payments of Debt Issuance Costs | 0 | ||||||
Issuance of common stock | 0 | 0 | |||||
Repurchase of common stock | 0 | ||||||
Contributions from parent | 17,534 | 393 | |||||
Minimum withholding taxes paid on stock awards | (12) | (1) | |||||
Acquisition of noncontrolling interest | (8,784) | ||||||
Distributions to noncontrolling interests | (987) | ||||||
Net cash used by financing activities | (20,004) | (35,222) | |||||
Effect of exchange rate changes on cash | (6,567) | (853) | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 2,827 | (22,822) | |||||
Cash, cash equivalents and restricted cash at beginning of period | 72,365 | 106,239 | 72,365 | 106,239 | |||
Cash, cash equivalents and restricted cash at end of period | 75,192 | 83,417 | 75,192 | 83,417 | |||
Eliminations [Member] | |||||||
Cash flows from operating activities: | |||||||
Net income | (88,848) | (68,680) | (210,787) | (123,307) | |||
Earnings in investments in subsidiaries | 88,848 | 68,680 | 210,787 | 123,307 | |||
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 | ||||||
Investment in subsidiaries and affiliates | 17,534 | 786 | |||||
Gross proceeds from disposal of property, plant and equipment and other assets | 0 | 0 | |||||
Proceeds from insurance settlement | 0 | ||||||
Payments related to routes and other intangibles | 0 | 0 | |||||
Net cash used by investing activities | 17,534 | 786 | |||||
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 | |||||
Payments of Debt Issuance Costs | 0 | ||||||
Issuance of common stock | 0 | 0 | |||||
Repurchase of common stock | 0 | ||||||
Contributions from parent | (17,534) | (786) | |||||
Minimum withholding taxes paid on stock awards | 0 | 0 | |||||
Acquisition of noncontrolling interest | 0 | ||||||
Distributions to noncontrolling interests | 0 | ||||||
Net cash used by financing activities | (17,534) | (786) | |||||
Effect of exchange rate changes on cash | 0 | 0 | |||||
Net increase (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 |