Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Jul. 02, 2022 | Aug. 04, 2022 | |
Cover [Abstract] | ||
Entity File Number | 001-13323 | |
Title of 12(b) Security | Common stock $0.01 par value per share | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Entity Registrant Name | DARLING INGREDIENTS INC. | |
Entity Central Index Key | 0000916540 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jul. 02, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 160,371,671 | |
Document Transition Report | false | |
Entity Tax Identification Number | 36-2495346 | |
Trading Symbol | DAR | |
Security Exchange Name | NYSE | |
Entity Address, Address Line One | 5601 N MacArthur Blvd. | |
Entity Address, City or Town | Irving | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75038 | |
City Area Code | 972 | |
Local Phone Number | 717-0300 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 02, 2022 | Jan. 01, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 146,730 | $ 68,906 |
Restricted cash | 110 | 166 |
Accounts receivable, less allowance for bad debts of $9,096 at July 2, 2022 and $8,196 at January 1, 2022 | 574,727 | 469,092 |
Inventories | 578,402 | 457,465 |
Prepaid expenses | 77,065 | 53,711 |
Income taxes refundable | 27,330 | 1,075 |
Other current assets | 57,462 | 38,599 |
Total current assets | 1,461,826 | 1,089,014 |
Property, plant and equipment, less accumulated depreciation of $1,918,544 at July 2, 2022 and $1,855,420 at January 1, 2022 | 2,237,199 | 1,840,080 |
Intangible assets, less accumulated amortization of $576,793 at July 2, 2022 and $560,470 at January 1, 2022 | 760,079 | 397,801 |
Goodwill | 1,555,814 | 1,219,116 |
Investment in unconsolidated subsidiaries | 1,736,242 | 1,349,247 |
Operating lease right-of-use assets | 177,328 | 155,464 |
Other assets | 81,886 | 66,795 |
Deferred income taxes | 16,312 | 16,211 |
Total assets | 8,026,686 | 6,133,728 |
Current liabilities: | ||
Current portion of long-term debt | 32,695 | 24,407 |
Accounts payable, principally trade | 414,584 | 307,118 |
Income taxes payable | 28,452 | 32,310 |
Current operating lease liabilities | 45,498 | 38,168 |
Accrued expenses | 398,598 | 350,681 |
Total current liabilities | 919,827 | 752,684 |
Long-term debt, net of current portion | 2,881,134 | 1,438,974 |
Long-term operating lease liabilities | 133,663 | 120,314 |
Other non-current liabilities | 128,399 | 111,029 |
Deferred income taxes | 397,140 | 362,942 |
Total liabilities | 4,460,163 | 2,785,943 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 250,000,000 shares authorized; 173,493,055 and 171,734,603 shares issued at July 2, 2022 and January 1, 2022, respectively | 1,735 | 1,717 |
Additional paid-in capital | 1,646,468 | 1,627,816 |
Treasury stock, at cost; 12,632,144 and 10,942,599 shares at July 2, 2022 and January 1, 2022, respectively | (491,717) | (374,721) |
Accumulated other comprehensive loss | (400,907) | (321,690) |
Retained earnings | 2,737,887 | 2,347,838 |
Total Darling's stockholders’ equity | 3,493,466 | 3,280,960 |
Noncontrolling interests | 73,057 | 66,825 |
Total stockholders' equity | 3,566,523 | 3,347,785 |
Total liabilities and stockholders' equity | $ 8,026,686 | $ 6,133,728 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jul. 02, 2022 | Jan. 01, 2022 |
Assets: | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 9,096 | $ 8,196 |
Property, plant and equipment, accumulated depreciation | 1,918,544 | 1,855,420 |
Intangible assets, accumulated amortization | $ 576,793 | $ 560,470 |
Stockholders’ equity: | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 173,493,055 | 171,734,603 |
Treasury stock, shares | 12,632,144 | 10,942,599 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,650,188 | $ 1,198,669 | $ 3,016,522 | $ 2,245,385 |
Costs and expenses: | ||||
Cost of sales and operating expenses | 1,231,507 | 878,073 | 2,252,084 | 1,650,857 |
Gain on sale of assets | (1,055) | (228) | (1,444) | (292) |
Selling, general and administrative expenses | 107,776 | 99,132 | 209,808 | 196,530 |
Restructuring and asset impairment charges | 8,557 | 0 | 8,557 | 778 |
Acquisition and integration costs | 5,358 | 0 | 9,131 | 0 |
Depreciation and amortization | 93,113 | 79,222 | 172,359 | 157,756 |
Total costs and expenses | 1,445,256 | 1,056,199 | 2,650,495 | 2,005,629 |
Equity in net income of Diamond Green Diesel | 73,680 | 125,788 | 145,484 | 228,013 |
Operating income | 278,612 | 268,258 | 511,511 | 467,769 |
Other expense: | ||||
Interest expense | (24,008) | (15,268) | (39,611) | (31,696) |
Foreign currency loss | (4,412) | (684) | (5,512) | (1,094) |
Other expense, net | (302) | (1,198) | (1,044) | (2,357) |
Total other expense | (28,722) | (17,150) | (46,167) | (35,147) |
Equity in net income of other unconsolidated subsidiaries | 2,272 | 1,940 | 3,632 | 2,552 |
Income before income taxes | 252,162 | 253,048 | 468,976 | 435,174 |
Income tax expense | 47,333 | 54,979 | 73,416 | 83,687 |
Net income | 204,829 | 198,069 | 395,560 | 351,487 |
Net income attributable to noncontrolling interests | (2,833) | (1,487) | (5,511) | (3,139) |
Net income attributable to Darling | $ 201,996 | $ 196,582 | $ 390,049 | $ 348,348 |
Basic income per share (in dollars per share) | $ 1.25 | $ 1.21 | $ 2.41 | $ 2.14 |
Diluted income per share (in dollars per share) | $ 1.23 | $ 1.17 | $ 2.37 | $ 2.08 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Net income | $ 204,829 | $ 198,069 | $ 395,560 | $ 351,487 |
Other comprehensive income/(loss), net of tax: | ||||
Foreign currency translation | (93,855) | 22,384 | (90,473) | (15,838) |
Pension adjustments | 428 | 792 | 857 | 1,584 |
Total other comprehensive income/(loss), net of tax | (89,684) | 27,446 | (78,496) | (14,383) |
Total comprehensive income | 115,145 | 225,515 | 317,064 | 337,104 |
Comprehensive income attributable to noncontrolling interests | 2,687 | 1,891 | 6,232 | 5,077 |
Comprehensive income attributable to Darling | 112,458 | 223,624 | 310,832 | 332,027 |
Soybean Meal | ||||
Other comprehensive income/(loss), net of tax: | ||||
Derivative adjustments | (14) | (17) | (254) | (274) |
Corn Option | ||||
Other comprehensive income/(loss), net of tax: | ||||
Derivative adjustments | 5,941 | (356) | 885 | (1,156) |
Heating Oil Swaps And Options | ||||
Other comprehensive income/(loss), net of tax: | ||||
Derivative adjustments | 18,535 | (2,308) | 1,773 | 1,156 |
Foreign Exchange Contract | ||||
Other comprehensive income/(loss), net of tax: | ||||
Derivative adjustments | $ (20,719) | $ 6,951 | $ 8,716 | $ 145 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Total | Heating Oil | Corn Option | Soybean Meal | Foreign Exchange Contract | Stockholders' equity attributable to Darling | Stockholders' equity attributable to Darling Heating Oil | Stockholders' equity attributable to Darling Corn Option | Stockholders' equity attributable to Darling Soybean Meal | Stockholders' equity attributable to Darling Foreign Exchange Contract | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Heating Oil | Accumulated Other Comprehensive Loss Corn Option | Accumulated Other Comprehensive Loss Soybean Meal | Accumulated Other Comprehensive Loss Foreign Exchange Contract | Retained Earnings | Non-controlling Interests |
Balance (in shares) at Jan. 02, 2021 | 162,200,389 | |||||||||||||||||||
Stockholders' Equity, Beginning Balance at Jan. 02, 2021 | $ 2,954,209 | $ 2,891,909 | $ 1,699 | $ 1,597,429 | $ (151,710) | $ (252,433) | $ 1,696,924 | $ 62,300 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income | 153,418 | 151,766 | 151,766 | 1,652 | ||||||||||||||||
Distribution of noncontrolling interest earnings | (2,143) | (2,143) | ||||||||||||||||||
Pension liability adjustments, net of tax | 792 | 792 | 792 | |||||||||||||||||
Derivative adjustments | $ 3,464 | $ (800) | $ (257) | $ (6,806) | $ 3,464 | $ (800) | $ (257) | $ (6,806) | $ 3,464 | $ (800) | $ (257) | $ (6,806) | ||||||||
Foreign currency translation | (38,222) | (39,756) | (39,756) | 1,534 | ||||||||||||||||
Issuance of non-vested stock | 58 | 58 | 58 | |||||||||||||||||
Stock-based compensation | 8,357 | 8,357 | 8,357 | |||||||||||||||||
Treasury stock (in shares) | (684,674) | |||||||||||||||||||
Treasury stock | (48,141) | (48,141) | (48,141) | |||||||||||||||||
Issuance of common stock (in shares) | 1,639,151 | |||||||||||||||||||
Issuance of common stock | 6,017 | 6,017 | $ 16 | 6,001 | ||||||||||||||||
Balance (in shares) at Apr. 03, 2021 | 163,154,866 | |||||||||||||||||||
Stockholders' Equity, Ending Balance at Apr. 03, 2021 | 3,029,946 | 2,966,603 | $ 1,715 | 1,611,845 | (199,851) | (295,796) | 1,848,690 | 63,343 | ||||||||||||
Balance (in shares) at Jan. 02, 2021 | 162,200,389 | |||||||||||||||||||
Stockholders' Equity, Beginning Balance at Jan. 02, 2021 | 2,954,209 | 2,891,909 | $ 1,699 | 1,597,429 | (151,710) | (252,433) | 1,696,924 | 62,300 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income | 351,487 | |||||||||||||||||||
Derivative adjustments | (1,156) | (274) | 145 | |||||||||||||||||
Foreign currency translation | (15,838) | |||||||||||||||||||
Balance (in shares) at Jul. 03, 2021 | 162,050,870 | |||||||||||||||||||
Stockholders' Equity, Ending Balance at Jul. 03, 2021 | 3,183,810 | 3,118,576 | $ 1,716 | 1,617,953 | (277,611) | (268,754) | 2,045,272 | 65,234 | ||||||||||||
Balance (in shares) at Apr. 03, 2021 | 163,154,866 | |||||||||||||||||||
Stockholders' Equity, Beginning Balance at Apr. 03, 2021 | 3,029,946 | 2,966,603 | $ 1,715 | 1,611,845 | (199,851) | (295,796) | 1,848,690 | 63,343 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income | 198,069 | 196,582 | 196,582 | 1,487 | ||||||||||||||||
Pension liability adjustments, net of tax | 792 | 792 | 792 | |||||||||||||||||
Derivative adjustments | (2,308) | (356) | (17) | 6,951 | (2,308) | (356) | (17) | 6,951 | (2,308) | (356) | (17) | 6,951 | ||||||||
Foreign currency translation | 22,384 | 21,980 | 21,980 | 404 | ||||||||||||||||
Issuance of non-vested stock | 41 | 41 | 41 | |||||||||||||||||
Stock-based compensation | 5,555 | 5,555 | 5,555 | |||||||||||||||||
Treasury stock (in shares) | (1,171,630) | |||||||||||||||||||
Treasury stock | (77,760) | (77,760) | (77,760) | |||||||||||||||||
Issuance of common stock (in shares) | 67,634 | |||||||||||||||||||
Issuance of common stock | 513 | 513 | $ 1 | 512 | ||||||||||||||||
Balance (in shares) at Jul. 03, 2021 | 162,050,870 | |||||||||||||||||||
Stockholders' Equity, Ending Balance at Jul. 03, 2021 | 3,183,810 | 3,118,576 | $ 1,716 | 1,617,953 | (277,611) | (268,754) | 2,045,272 | 65,234 | ||||||||||||
Balance (in shares) at Jan. 01, 2022 | 160,792,004 | |||||||||||||||||||
Stockholders' Equity, Beginning Balance at Jan. 01, 2022 | 3,347,785 | 3,280,960 | $ 1,717 | 1,627,816 | (374,721) | (321,690) | 2,347,838 | 66,825 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income | 190,731 | 188,053 | 188,053 | 2,678 | ||||||||||||||||
Pension liability adjustments, net of tax | 429 | 429 | 429 | |||||||||||||||||
Derivative adjustments | (16,762) | (5,056) | (240) | 29,435 | (16,762) | (5,056) | (240) | 29,435 | (16,762) | (5,056) | (240) | 29,435 | ||||||||
Foreign currency translation | 3,382 | 2,515 | 2,515 | 867 | ||||||||||||||||
Issuance of non-vested stock (in shares) | 5,000 | |||||||||||||||||||
Issuance of non-vested stock | 18 | 18 | 18 | |||||||||||||||||
Stock-based compensation | 6,305 | 6,305 | 6,305 | |||||||||||||||||
Treasury stock (in shares) | (938,113) | |||||||||||||||||||
Treasury stock | (64,185) | (64,185) | (64,185) | |||||||||||||||||
Issuance of common stock (in shares) | 1,644,866 | |||||||||||||||||||
Issuance of common stock | 3,808 | 3,808 | $ 17 | 3,791 | ||||||||||||||||
Balance (in shares) at Apr. 02, 2022 | 161,503,757 | |||||||||||||||||||
Stockholders' Equity, Ending Balance at Apr. 02, 2022 | 3,495,650 | 3,425,280 | $ 1,734 | 1,637,930 | (438,906) | (311,369) | 2,535,891 | 70,370 | ||||||||||||
Balance (in shares) at Jan. 01, 2022 | 160,792,004 | |||||||||||||||||||
Stockholders' Equity, Beginning Balance at Jan. 01, 2022 | 3,347,785 | 3,280,960 | $ 1,717 | 1,627,816 | (374,721) | (321,690) | 2,347,838 | 66,825 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income | 395,560 | |||||||||||||||||||
Derivative adjustments | 885 | (254) | 8,716 | |||||||||||||||||
Foreign currency translation | (90,473) | |||||||||||||||||||
Balance (in shares) at Jul. 02, 2022 | 160,860,911 | |||||||||||||||||||
Stockholders' Equity, Ending Balance at Jul. 02, 2022 | 3,566,523 | 3,493,466 | $ 1,735 | 1,646,468 | (491,717) | (400,907) | 2,737,887 | 73,057 | ||||||||||||
Balance (in shares) at Apr. 02, 2022 | 161,503,757 | |||||||||||||||||||
Stockholders' Equity, Beginning Balance at Apr. 02, 2022 | 3,495,650 | 3,425,280 | $ 1,734 | 1,637,930 | (438,906) | (311,369) | 2,535,891 | 70,370 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net income | 204,829 | 201,996 | 201,996 | 2,833 | ||||||||||||||||
Pension liability adjustments, net of tax | 428 | 428 | 428 | |||||||||||||||||
Derivative adjustments | $ 18,535 | $ 5,941 | $ (14) | $ (20,719) | $ 18,535 | $ 5,941 | $ (14) | $ (20,719) | $ 18,535 | $ 5,941 | $ (14) | $ (20,719) | ||||||||
Foreign currency translation | (93,855) | (93,709) | (93,709) | (146) | ||||||||||||||||
Issuance of non-vested stock | 30 | 30 | 30 | |||||||||||||||||
Stock-based compensation | 7,016 | 7,016 | 7,016 | |||||||||||||||||
Treasury stock (in shares) | (751,432) | |||||||||||||||||||
Treasury stock | (52,811) | (52,811) | (52,811) | |||||||||||||||||
Issuance of common stock (in shares) | 108,586 | |||||||||||||||||||
Issuance of common stock | 1,493 | 1,493 | $ 1 | 1,492 | ||||||||||||||||
Balance (in shares) at Jul. 02, 2022 | 160,860,911 | |||||||||||||||||||
Stockholders' Equity, Ending Balance at Jul. 02, 2022 | $ 3,566,523 | $ 3,493,466 | $ 1,735 | $ 1,646,468 | $ (491,717) | $ (400,907) | $ 2,737,887 | $ 73,057 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders’ Equity (Parenthetical) - $ / shares | Jul. 02, 2022 | Jan. 01, 2022 | Jul. 03, 2021 |
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 | |
Jul. 02, 2022 | Jul. 03, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 395,560 | $ 351,487 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 172,359 | 157,756 |
Gain on sale of assets | (1,444) | (292) |
Asset impairment | 8,557 | 138 |
Deferred taxes | 35,674 | 49,572 |
Decrease in long-term pension liability | (547) | (622) |
Stock-based compensation expense | 13,369 | 14,011 |
Write-off deferred loan costs | 0 | 598 |
Deferred loan cost amortization | 2,207 | 2,047 |
Equity in net income of Diamond Green Diesel and other unconsolidated subsidiaries | (149,116) | (230,565) |
Distributions of earnings from Diamond Green Diesel and other unconsolidated subsidiaries | 1,631 | 2,497 |
Changes in operating assets and liabilities, net of effects from acquisitions: | ||
Accounts receivable | (47,046) | (34,911) |
Income taxes refundable/payable | (28,834) | 9,116 |
Inventories and prepaid expenses | (95,199) | (39,992) |
Accounts payable and accrued expenses | 72,351 | 2,770 |
Other | (18,487) | 14,327 |
Net cash provided by operating activities | 361,035 | 297,937 |
Cash flows from investing activities: | ||
Capital expenditures | (151,478) | (126,094) |
Acquisitions, net of cash acquired | (1,235,537) | (2,059) |
Investment in Diamond Green Diesel | (239,750) | 0 |
Investment in other unconsolidated subsidiaries | 0 | (4,449) |
Gross proceeds from disposal of property, plant and equipment and other assets | 2,161 | 3,064 |
Payments related to routes and other intangibles | (179) | (347) |
Net cash used in investing activities | (1,624,783) | (129,885) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 1,663,612 | 20,679 |
Payments on long-term debt | (23,600) | (73,393) |
Borrowings from revolving credit facility | 777,902 | 207,000 |
Payments on revolving credit facility | (937,921) | (220,000) |
Net cash overdraft financing | 12 | 16,487 |
Deferred loan costs | (10,707) | 0 |
Issuance of common stock | 0 | 50 |
Repurchase of common stock | (65,887) | (75,663) |
Minimum withholding taxes paid on stock awards | (45,836) | (43,853) |
Distributions to noncontrolling interests | 0 | (2,164) |
Net cash provided/(used) in financing activities | 1,357,575 | (170,857) |
Effect of exchange rate changes on cash | (16,059) | (997) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 77,768 | (3,802) |
Cash, cash equivalents and restricted cash at beginning of period | 69,072 | 81,720 |
Cash, cash equivalents and restricted cash at end of period | $ 146,840 | $ 77,918 |
General
General | 6 Months Ended |
Jul. 02, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | GeneralThe accompanying consolidated financial statements for the three and six month periods ended July 2, 2022 and July 3, 2021, 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 January 1, 2022. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 02, 2022 | |
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 July 2, 2022, and include the 13 and 26 weeks ended July 2, 2022, and the 13 and 26 weeks ended July 3, 2021. (c) Accounts Receivable Factoring 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 third party banks without recourse for cash less a nominal fee. For the three months ended July 2, 2022 and July 3, 2021, the Company sold approximately $145.0 million and $106.3 million of its trade receivables and incurred approximately $0.7 million and $0.2 million in fees, which are recorded as interest expense, respectively. For the six months ended July 2, 2022 and July 3, 2021, the Company sold approximately $271.3 million and $213.2 million of its trade receivables and incurred approximately $1.1 million and $0.5 million in fees, which are recorded as interest expense, respectively. (d) 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. (e) 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 continuing global COVID-19 pandemic, and related government-imposed movement restrictions and initiatives implemented to reduce the global transmission of COVID-19, as well as the Russia-Ukraine war, 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 July 2, 2022, the Company has not observed any impairments of the Company's assets or a significant change in their fair value due to the COVID-19 pandemic or the Russia-Ukraine war. (f) 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 July 2, 2022 July 3, 2021 Income Shares Per Share Income Shares Per Share Basic: Net Income attributable to Darling $ 201,996 161,632 $ 1.25 $ 196,582 163,023 $ 1.21 Diluted: Effect of dilutive securities: Add: Option shares in the money and dilutive effect of non-vested stock awards 3,781 5,402 Less: Pro forma treasury shares (668) (828) Diluted: Net income attributable to Darling $ 201,996 164,745 $ 1.23 $ 196,582 167,597 $ 1.17 Net Income per Common Share (in thousands, except per share data) Six Months Ended July 2, 2022 July 3, 2021 Income Shares Per Share Income Shares Per Share Basic: Net Income attributable to Darling $ 390,049 161,514 $ 2.41 $ 348,348 162,974 $ 2.14 Diluted: Effect of dilutive securities: Add: Option shares in the money and dilutive effect of non-vested stock awards 3,879 5,567 Less: Pro forma treasury shares (720) (868) Diluted: Net income attributable to Darling $ 390,049 164,673 $ 2.37 $ 348,348 167,673 $ 2.08 For the three months ended July 2, 2022 and July 3, 2021, respectively, no outstanding stock options were excluded from diluted income per common share as the effect was antidilutive. For the three months ended July 2, 2022 and July 3, 2021, respectively, 249,564 and 259,281 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 July 2, 2022 and July 3, 2021, respectively, no outstanding stock options were excluded from diluted income per common share as the effect was antidilutive. For the six months ended July 2, 2022 and July 3, 2021, respectively, 248,051 and 234,527 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 |
Jul. 02, 2022 | |
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 (“DGD” or 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 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 expansion of the existing facility. Selected financial information for the Company's DGD Joint Venture is as follows (in thousands): (in thousands) June 30, 2022 December 31, 2021 Assets: Total current assets $ 1,065,686 $ 686,294 Property, plant and equipment, net 3,131,430 2,710,747 Other assets 52,324 51,514 Total assets $ 4,249,440 $ 3,448,555 Liabilities and members' equity: Total current portion of long term debt $ 165,439 $ 165,092 Total other current liabilities 333,651 295,860 Total long term debt 336,743 344,309 Total other long term liabilities 17,148 17,531 Total members' equity 3,396,459 2,625,763 Total liabilities and members' equity $ 4,249,440 $ 3,448,555 Three Months Ended Six Months Ended (in thousands) June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Revenues: Operating revenues $ 1,455,886 $ 571,859 $ 2,436,578 $ 1,003,492 Expenses: Total costs and expenses less depreciation, amortization and accretion expense 1,274,665 307,857 2,082,237 523,091 Depreciation, amortization and accretion expense 31,317 11,995 57,809 23,682 Total costs and expenses 1,305,982 319,852 2,140,046 546,773 Operating income 149,904 252,007 296,532 456,719 Other income 722 353 711 411 Interest and debt expense, net (3,266) (784) (6,275) (1,104) Net income $ 147,360 $ 251,576 $ 290,968 $ 456,026 As of July 2, 2022, under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $1,702.2 million on the consolidated balance sheet. The Company has recorded equity in net income from the DGD Joint Venture of approximately $73.7 million and $125.8 million for the three months ended July 2, 2022 and July 3, 2021, respectively. The Company has recorded equity in net income from the DGD Joint Venture of approximately $145.5 million and $228.0 million for the six months ended July 2, 2022 and July 3, 2021, respectively. In December 2019, the blender tax credits were extended for calendar years 2020, 2021 and 2022. For the three months ended June 30, 2022 and June 30, 2021, the DGD Joint Venture recorded approximately $198.4 million and $83.9 million of blenders tax credits, respectively. For the six months ended June 30, 2022 and June 30, 2021, the DGD Joint Venture recorded approximately $354.2 million and $162.9 million of blenders tax credits, respectively. The blenders tax credits are recorded as a reduction of cost of sales by the DGD Joint Venture. In the six months ended July 2, 2022 and July 3, 2021, respectively, the Company made $239.75 million and no capital contributions to the DGD Joint Venture. In the six months ended July 2, 2022 and July 3, 2021, the Company did not receive any dividend distributions from the DGD Joint Venture. In addition to the DGD Joint Venture, the Company has investments in other unconsolidated subsidiaries that are insignificant to the Company. |
Acquisitions
Acquisitions | 6 Months Ended |
Jul. 02, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions On May 2, 2022, the Company acquired all of the shares of Valley Proteins, pursuant to a stock purchase agreement dated December 28, 2021 (the “Valley Acquisition”). The Valley Acquisition includes a network of 18 major rendering plants and used cooking oil facilities throughout the southern, southeast and mid-Atlantic regions of the U.S. The Company initially paid approximately $1.177 billion in cash for the Valley Acquisition, which is subject to various post-closing adjustments in accordance with the stock purchase agreement. The purchase price was financed by borrowing all of the Company's delayed draw term A-1 facility of $400.0 million and delayed draw term A-2 facility of $500.0 million, with the remainder coming through revolver borrowings under the Company's Amended Credit Agreement. The following table summarizes the preliminary estimated fair value of the assets acquired and the liabilities assumed in the Valley Acquisition as of May 2, 2022 (unaudited) (in thousands): Accounts receivable $ 68,558 Inventories 58,246 Other current assets 13,825 Property, plant and equipment 409,405 Identifiable intangible assets 389,200 Goodwill 349,262 Operating lease right-of-use assets 16,380 Other assets 14,164 Accounts payable (47,497) Current portion of long-term debt (2,043) Current operating lease liabilities (4,779) Accrued expenses (62,046) Long-term debt, net of current portion (5,995) Long-term operating lease liabilities (11,601) Other noncurrent liabilities (19,436) Purchase price, net of cash acquired $ 1,165,643 The $349.3 million of goodwill from the Valley Acquisition, arising from synergies expected to strengthen the Company's base business and expand its ability to provide additional carbon intensity feedstocks to fuel the growing demand for renewable diesel, was assigned to the Feed Ingredients segment and is expected to be deductible for tax purposes. The identifiable intangible assets include $292.1 million in routes and $97.1 million in permits with a weighted average life of approximately 15 years. The Company is still assessing the provisional amounts recorded for assets acquired and liabilities assumed including possible future purchase price adjustments related to working capital and tax benefit, thus the final determination of the value of assets acquired and liabilities assumed may result in retrospective adjustments to the values presented in the above table with a corresponding adjustment to goodwill. The amount of revenue and income from the Valley Acquisition included in the Company's consolidated statement of operations for the three and six months ended July 2, 2022 were $164.3 million and $0.5 million, respectively. In addition, the Company incurred acquisition costs related to the Valley Acquisition for the three and six months ended July 2, 2022 of approximately $3.3 million and $4.9 million, respectively. As a result of the Valley Acquisition, effective May 2, 2022, the Company began including the operations of the Valley Acquisition into the Company's consolidated financial statements. The following table presents selected pro forma information, for comparative purposes, assuming the Valley Acquisition had occurred on January 3, 2021 for the periods presented (unaudited) (in thousands): Three Months Ended Six Months Ended July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Net sales $ 1,722,803 $ 1,394,771 $ 3,306,982 $ 2,637,589 Net income 195,533 185,723 358,377 326,795 The Company notes that pro forma results of operations for the acquisitions discussed below have not been presented because the effect of each acquisition individually or in the aggregate is not deemed material to revenues, total assets and net income of the Company for any period presented. On February 25, 2022, a wholly-owned international subsidiary of the Company acquired all of the shares of Group Op de Beeck, a Belgium digester, organic and industrial waste processing company, that is now included in our Fuel Ingredients segment, for an initially estimated purchase price of approximately $91.7 million, plus or minus various closing adjustments in accordance with the stock purchase agreement. Initially, the Company paid approximately $71.3 million in cash consideration. In the second quarter of fiscal 2022, the Company paid an additional $4.2 million for purchase price adjustments related to working capital and estimated future construction costs for a total purchase price of approximately $75.5 million. The Company recorded assets and liabilities consisting of property, plant and equipment of approximately $28.1 million, intangible assets of approximately $27.2 million, goodwill of approximately $29.6 million and other net liabilities of approximately $(9.4) million including working capital and net debt. The Company is still assessing the provisional amounts recorded for assets acquired and liabilities assumed including possible future purchase price adjustments, thus the final determination of the value of assets acquired and liabilities assumed may result in retrospective adjustments to the values presented with a corresponding adjustment to goodwill The Company does not expect material changes to these pending amounts. The identifiable intangibles have a weighted average life of 15 years. Additionally, the Company completed other immaterial acquisitions in the first six months of fiscal 2022. The Company incurred acquisition costs of approximately $5.4 million and $9.1 million for the three and six months ended July 2, 2022, respectively related to the above disclosed acquisitions, including the Valley Acquisition, and other announced and potential future acquisitions that have yet to close. |
Inventories
Inventories | 6 Months Ended |
Jul. 02, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories A summary of inventories follows (in thousands): July 2, 2022 January 1, 2022 Finished product $ 346,054 $ 272,995 Work in process 82,204 81,158 Raw material 52,587 48,186 Supplies and other 97,557 55,126 $ 578,402 $ 457,465 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jul. 02, 2022 | |
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): July 2, 2022 January 1, 2022 Indefinite Lived Intangible Assets: Trade names $ 51,085 $ 53,133 51,085 53,133 Finite Lived Intangible Assets: Routes 632,804 337,399 Permits 561,930 475,520 Non-compete agreements 695 645 Trade names 65,675 65,675 Royalty, consulting, land use rights and leasehold 24,683 25,899 1,285,787 905,138 Accumulated Amortization: Routes (170,914) (169,984) Permits (348,158) (336,020) Non-compete agreements (500) (441) Trade names (49,297) (46,028) Royalty, consulting, land use rights and leasehold (7,924) (7,997) (576,793) (560,470) Total Intangible assets, less accumulated amortization $ 760,079 $ 397,801 Gross intangible assets changed due to acquisitions in the first six months of fiscal 2022 by approximately $417.3 million and the remaining change was from foreign currency translation, impairments and retirements. Amortization expense for the three months ended July 2, 2022 and July 3, 2021, was approximately $21.0 million and $17.0 million, respectively, and for the six months ended July 2, 2022 and July 3, 2021 was approximately $37.5 million and $34.0 million, respectively. |
Goodwill
Goodwill | 6 Months Ended |
Jul. 02, 2022 | |
Intangible Asset Disclosure Text Block [Abstract] | |
Goodwill | Goodwill Changes in the carrying amount of goodwill (in thousands): Feed Ingredients Food Ingredients Fuel Ingredients Total Balance at January 1, 2022 Goodwill $ 814,863 $ 332,866 $ 119,342 $ 1,267,071 Accumulated impairment losses (15,914) (461) (31,580) (47,955) 798,949 332,405 87,762 1,219,116 Goodwill acquired during year 349,757 — 29,928 379,685 Foreign currency translation (17,064) (17,086) (8,837) (42,987) Balance at July 2, 2022 Goodwill 1,147,556 315,780 140,433 1,603,769 Accumulated impairment losses (15,914) (461) (31,580) (47,955) $ 1,131,642 $ 315,319 $ 108,853 $ 1,555,814 |
Accrued Expense Accrued Expense
Accrued Expense Accrued Expenses | 6 Months Ended |
Jul. 02, 2022 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consist of the following (in thousands): July 2, 2022 January 1, 2022 Compensation and benefits $ 106,163 $ 123,180 Accrued ad valorem and franchise taxes 17,674 20,140 Accrued operating expenses 100,627 81,200 Other accrued expense 174,134 126,161 $ 398,598 $ 350,681 |
Debt
Debt | 6 Months Ended |
Jul. 02, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consists of the following (in thousands): July 2, 2022 January 1, 2022 Amended Credit Agreement: Revolving Credit Facility $ — $ 160,000 Term A-1 facility 400,000 — Less unamortized deferred loan costs (809) — Carrying value Term A-1 facility 399,191 — Term A-2 facility 500,000 — Less unamortized deferred loan costs (1,167) — Carrying value Term A-2 facility 498,833 — Term Loan B 200,000 200,000 Less unamortized deferred loan costs (1,618) (1,928) Carrying value Term Loan B 198,382 198,072 6% Senior Notes due 2030 with effective interest of 6.20% 750,000 — Less unamortized deferred loan costs (9,397) — Carrying value 6% Senior Notes due 2030 740,603 — 5.25% Senior Notes due 2027 with effective interest of 5.47% 500,000 500,000 Less unamortized deferred loan costs (4,548) (4,959) Carrying value 5.25% Senior Notes due 2027 495,452 495,041 3.625% Senior Notes due 2026 - Denominated in euro with effective interest of 3.83% 537,506 582,980 Less unamortized deferred loan costs - Denominated in euro (4,142) (5,031) Carrying value 3.625% Senior Notes due 2026 533,364 577,949 Other Notes and Obligations 48,004 32,319 2,913,829 1,463,381 Less Current Maturities 32,695 24,407 $ 2,881,134 $ 1,438,974 As of July 2, 2022, the Company had outstanding debt under the Company's 3.625% Senior Notes due 2026 denominated in euros of €515.0 million. In addition, at July 2, 2022, the Company had finance lease obligations denominated in euros of approximately €4.2 million. As of July 2, 2022, the Company had other notes and obligations of $48.0 million that consist of various overdraft facilities of approximately $0.1 million, a China working capital line of credit of approximately $13.7 million and other debt of approximately $34.2 million, including U.S. finance lease obligations of approximately $6.1 million. 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, 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 March 2, 2022, the Company, and certain of its subsidiaries entered into an amendment (the "Eighth Amendment") with its lenders to the Amended Credit Agreement. Among other things, the Eighth Amendment (a) added a new delayed draw incremental term facility (the “term A-2 facility”) and new incremental Term Loans pursuant thereto, in an aggregate principal amount of up to $500.0 million, which is available to the Company for general corporate purposes, including acquisitions and capital expenditures, and will mature on December 9, 2026 and (b) updated and modified certain other terms and provisions of the Amended Credit Agreement to reflect the addition of the term A-2 facility to the Amended Credit Agreement. The interest rate applicable to any borrowings under the revolving loan facility will equal the adjusted term secured overnight financing rate (SOFR) for U.S. dollar borrowings or the adjusted euro interbank rate (EURIBOR) for euro borrowings or the adjusted daily simple Sterling overnight index average (SONIA) for British pound borrowings or CDOR for Canadian dollar borrowings plus 1.25% per annum or base rate or the adjusted term SOFR for U.S. dollar borrowings or Canadian prime rate for Canadian dollar borrowings or the adjusted daily simple European short term rate (ESTR) for euro borrowings or the adjusted daily SONIA rate for British pound borrowings plus 0.25% per annum subject to certain step-ups or step-downs based on the Company's total leverage ratio. The interest rate applicable to any borrowing under the delayed draw term A-1 facility will equal the adjusted term SOFR plus a minimum of 1.50% per annum subject to certain step-ups based on the Company's total leverage ratio. The interest rate applicable to any borrowing under the delayed draw term A-2 facility will equal the adjusted term SOFR plus 1.25% 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 July 2, 2022, the Company had (i) $400.0 million outstanding under the term A-1 facility at SOFR plus a margin of 1.50% per annum for a total of 3.1253% per annum, (ii) $500.0 million outstanding under the term A-2 facility at SOFR plus a margin of 1.25% per annum for a total of 2.8753% per annum and (iii) $200.0 million outstanding under the term loan B facility at LIBOR plus a margin of 2.00% per annum for a total of 3.12% per annum. As of July 2, 2022, the Company had revolving loan facility availability of $1,446.0 million under the Amended Credit Agreement taking into account amounts borrowed, ancillary facilities of $50.1 million and letters of credit issued of $3.9 million. The Company also had foreign bank guarantees of approximately $11.2 million and U.S. bank guarantees of approximately $10.9 million that are not part of the Company's Amended Credit Agreement at July 2, 2022. The Company capitalized approximately $1.2 million of deferred loan costs as of July 2, 2022 in connection with the Eighth Amendment. 6% Senior Notes due 2030. On June 9, 2022, Darling issued and sold $750.0 million aggregate principal amount of 6% Senior Notes due 2030 (the “6% Notes”). The 6% Notes, which were offered in a private offering, were issued pursuant to a Senior Notes Indenture, dated as of June 9, 2022 (the “6% Indenture”), among Darling, the subsidiary guarantors party thereto from time to time, and Truist Bank, as trustee. The gross proceeds from the offering, together with cash on hand, were used to repay the Company's outstanding revolver borrowings and for general corporate purposes, including to pay the discount of the initial purchasers and to pay the other fees and expenses related to the offering. The 6% Notes will mature on June 15, 2030. Darling will pay interest on the 6% Notes on June 15 and December 15 of each year, commencing on December 15, 2022. Interest on the 6% Notes accrues from June 9, 2022 at a rate of 6% per annum and is payable in cash. The 6% Notes are guaranteed on a senior unsecured basis by Darling and all of Darling's restricted subsidiaries (other than foreign subsidiaries) that are borrowers under or that guarantee the Senior Secured Credit Facilities (collectively, the “6% Guarantors”). The 6% Notes and the guarantees thereof are senior unsecured obligations of Darling and the 6% Guarantors and rank equally in right of payment to all of Darling's and the 6% Guarantors' existing and future senior unsecured indebtedness. The 6% Indenture contains covenants limiting Darling's ability and the ability of its restricted subsidiaries to grant liens to secure indebtedness and merge with or into other companies or otherwise dispose of all or substantially all of Darling's assets. The Company capitalized approximately $9.5 million of deferred loan costs as of July 2, 2022 in connection with the 6% Notes. Other than for extraordinary events such as change of control and defined assets sales, Darling is not required to make mandatory redemption or sinking fund payments on the 6% Notes. The 6% Notes are redeemable, in whole or in part, at any time on or after June 15, 2025 at the redemption prices specified in the 6% Indenture. Darling may redeem the 6% Notes in whole, but not in part, at any time prior to June 15, 2025, at a redemption price equal to 100% of the principal amount of the 6% Notes redeemed, plus accrued and unpaid interest to the redemption date and an Applicable Premium as specified in the 6% Indenture and all additional amounts (if any) then due or which will become due on the redemption date as a result of the redemption or otherwise (subject to the rights of holders on the relevant record dates to receive interest due on the relevant interest payment date and additional amounts (if any) in respect thereof). As of July 2, 2022, 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 6% Senior Notes due 2030, the 5.25% Senior Notes due 2027 and the 3.625% Senior Notes due 2026. |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company has provided income taxes for the three and six month periods ended July 2, 2022 and July 3, 2021, based on its estimate of the effective tax rate for the entire 2022 and 2021 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. 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 July 2, 2022 and July 3, 2021, the Company had $12.1 million and $6.5 million, respectively of gross unrecognized tax benefits and $1.2 million and $0.7 million, respectively of related accrued interest and penalties. The Company's gross unrecognized tax benefits are not expected to decrease significantly within the next twelve months. 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. |
Other Comprehensive Income
Other Comprehensive Income | 6 Months Ended |
Jul. 02, 2022 | |
Equity [Abstract] | |
Other Comprehensive Income | Other Comprehensive Income/(Loss) The components of other comprehensive income/(loss) and the related tax impacts for the three and six months ended July 2, 2022 and July 3, 2021 are as follows (in thousands): Three Months Ended Before-Tax Tax (Expense) Net-of-Tax Amount or Benefit Amount July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Defined benefit pension plans Amortization of prior service (cost)/benefit 6 6 (2) (2) 4 4 Amortization of actuarial loss 570 1,053 (146) (265) 424 788 Total defined benefit pension plans 576 1,059 (148) (267) 428 792 Soybean meal option derivatives Reclassified to earnings 124 32 (31) (8) 93 24 Activity recognized in other comprehensive income/(loss) (144) (55) 37 14 (107) (41) Total soybean meal option derivatives (20) (23) 6 6 (14) (17) Corn option derivatives Reclassified to earnings 7,238 6,743 (1,839) (1,712) 5,399 5,031 Activity recognized in other comprehensive income/(loss) 726 (7,220) (184) 1,833 542 (5,387) Total corn option derivatives 7,964 (477) (2,023) 121 5,941 (356) Heating oil derivatives Activity recognized in other comprehensive income/(loss) 24,847 (3,094) (6,312) 786 18,535 (2,308) Total heating oil derivatives 24,847 (3,094) (6,312) 786 18,535 (2,308) Foreign exchange derivatives Reclassified to earnings (6,280) (838) 2,055 394 (4,225) (444) Activity recognized in other comprehensive income/(loss) (25,091) 11,372 8,597 (3,977) (16,494) 7,395 Total foreign exchange derivatives (31,371) 10,534 10,652 (3,583) (20,719) 6,951 Foreign currency translation (95,562) 22,560 1,707 (176) (93,855) 22,384 Other comprehensive income/(loss) $ (93,566) $ 30,559 $ 3,882 $ (3,113) $ (89,684) $ 27,446 Six Months Ended Before-Tax Tax (Expense) Net-of-Tax Amount or Benefit Amount July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Defined benefit pension plans Amortization of prior service (cost)/benefit $ 11 $ 11 $ (3) $ (3) $ 8 $ 8 Amortization of actuarial loss 1,140 2,105 (291) (529) 849 1,576 Total defined benefit pension plans 1,151 2,116 (294) (532) 857 1,584 Soybean meal option derivatives Reclassified to earnings (317) (248) 81 63 (236) (185) Activity recognized in other comprehensive income/(loss) (24) (119) 6 30 (18) (89) Total soybean meal option derivatives (341) (367) 87 93 (254) (274) Corn option derivatives Reclassified to earnings 11,345 10,663 (2,882) (2,708) 8,463 7,955 Activity recognized in other comprehensive income/(loss) (10,159) (12,213) 2,581 3,102 (7,578) (9,111) Total corn option derivatives 1,186 (1,550) (301) 394 885 (1,156) Heating oil derivatives Activity recognized in other comprehensive income/(loss) 2,377 1,550 (604) (394) 1,773 1,156 Total heating oil derivatives 2,377 1,550 (604) (394) 1,773 1,156 Foreign exchange derivatives Reclassified to earnings (7,351) (614) 2,415 319 (4,936) (295) Activity recognized in other comprehensive income/(loss) 20,331 915 (6,679) (475) 13,652 440 Total foreign exchange derivatives 12,980 301 (4,264) (156) 8,716 145 Foreign currency translation (92,901) (17,177) 2,428 1,339 (90,473) (15,838) Other comprehensive income/(loss) $ (75,548) $ (15,127) $ (2,948) $ 744 $ (78,496) $ (14,383) 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 July 2, 2022 and July 3, 2021 as follows (in thousands): Three Months Ended Six Months Ended July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Statement of Operations Classification Derivative instruments Soybean meal derivatives $ (124) $ (32) $ 317 $ 248 Net sales Foreign exchange contracts 6,280 838 7,351 614 Net sales Corn option derivatives (7,238) (6,743) (11,345) (10,663) Cost of sales and operating expenses (1,082) (5,937) (3,677) (9,801) Total before tax (185) 1,326 386 2,326 Income taxes (1,267) (4,611) (3,291) (7,475) Net of tax Defined benefit pension plans Amortization of prior service cost $ (6) $ (6) $ (11) $ (11) (a) Amortization of actuarial loss (570) (1,053) (1,140) (2,105) (a) (576) (1,059) (1,151) (2,116) Total before tax 148 267 294 532 Income taxes (428) (792) (857) (1,584) Net of tax Total reclassifications $ (1,695) $ (5,403) $ (4,148) $ (9,059) Net of tax (a) These items are included in the computation of net periodic pension cost. See Note 13 (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 July 2, 2022 as follows (in thousands): Six Months Ended July 2, 2022 Foreign Currency Derivative Defined Benefit Translation Instruments Pension Plans Total Accumulated Other Comprehensive loss January 1, 2022, attributable to Darling, net of tax $ (289,586) $ (6,456) $ (25,648) $ (321,690) Other comprehensive loss before reclassifications (90,473) 7,829 — (82,644) Amounts reclassified from accumulated other comprehensive loss — 3,291 857 4,148 Net current-period other comprehensive income/(loss) (90,473) 11,120 857 (78,496) Noncontrolling interest 721 — — 721 Accumulated Other Comprehensive loss July 2, 2022, attributable to Darling, net of tax $ (380,780) $ 4,664 $ (24,791) $ (400,907) |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jul. 02, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Fiscal 2022 Long-Term Incentive Opportunity Awards (2022 LTIP) . On January 3, 2022, the Compensation Committee (the “Committee”) of the Company's Board of Directors adopted the 2022 LTIP pursuant to which they awarded certain of the Company's key employees, 82,791 restricted stock units and 115,615 performance share units (the “PSUs”) under the Company's 2017 Omnibus Incentive Plan. The restricted stock units vest 33.33% on the first, second and third anniversaries of the grant date. The PSUs are tied to a three-year forward-looking performance period and will be earned based on the Company's average return on gross investment (“ROGI”), as calculated in accordance with the terms of the award agreement, relative to the average ROGI of the Company's performance peer group companies, with the earned award to be determined in the first quarter of fiscal 2025, after the final results for the relevant performance period are determined. The PSUs were granted at a target of 100%, but each PSU will reduce or increase (up to 225%) depending on the Company's ROGI relative to that of the performance peer group companies and is also subject to the application of a total shareholder return (“TSR”) cap/collar modifier depending on the Company's TSR during the performance period relative to that of the performance peer group companies. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jul. 02, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Net pension cost for the three and six months months ended July 2, 2022 and July 3, 2021 includes the following components (in thousands): Pension Benefits Pension Benefits Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, Service cost $ 798 $ 796 $ 1,626 $ 1,581 Interest cost 1,312 1,209 2,632 2,413 Expected return on plan assets (2,156) (2,328) (4,321) (4,649) Amortization of prior service cost 6 6 11 11 Amortization of actuarial loss 570 1,053 1,140 2,105 Net pension cost $ 530 $ 736 $ 1,088 $ 1,461 Based on actuarial estimates at July 2, 2022, the Company expects to contribute approximately $3.7 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 July 2, 2022 and July 3, 2021 of approximately $1.5 million and $1.8 million, respectively. The Company participates in various multiemployer pension plans which provide defined benefits to certain employees covered by labor contracts. These plans are not administered by the Company and contributions are determined in accordance with provisions of negotiated labor contracts to meet their pension benefit obligations to their participants. The Company's contributions to each multiemployer plan represent less than 5% of the total contributions to each 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 and one plan has certified as endangered as defined by the Pension Protection Act of 2006. The Company currently has withdrawal liabilities recorded on three U.S. multiemployer plans in which it participated. As of July 2, 2022, the Company has an aggregate accrued liability of approximately $3.9 million representing the present value of scheduled withdrawal liability payments on the multiemployer plans that have given notice 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 |
Jul. 02, 2022 | |
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, 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 July 2, 2022, the Company had corn option contracts, soybean meal forward 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. Cash Flow Hedges In fiscal 2021, 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 2022. At July 2, 2022 and January 1, 2022, the aggregate fair value of these corn option contracts was approximately $2.4 million and $2.8 million, respectively. These amounts are included in accrued expenses 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 2021 and fiscal 2022, 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 2023. At July 2, 2022 and January 1, 2022, the aggregate fair value of these foreign exchange contracts was approximately $10.5 million and $0.6 million, respectively. These amounts are included in other current assets, noncurrent assets, accrued expense and noncurrent liabilities on the balance sheet, with an offset recorded in accumulated other comprehensive loss. In fiscal 2021 and fiscal 2022, the Company entered into soybean meal forward contracts to hedge a portion of its forecasted poultry meal sales into the fourth quarter of fiscal 2022. At July 2, 2022 and January 1, 2022, the aggregate fair value of the soybean meal contracts was $0.1 million and $0.1 million, respectively. These amounts are included in other current assets and accrued expenses on the balance sheet, with an offset recorded in accumulated other comprehensive loss. As of July 2, 2022, the Company had the following designated and non-designated 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 2,599 Euro 468 Brazilian real 3,121,236 U.S. dollar 746,850 Euro 38,298 U.S. dollar 41,403 Euro 26,873 Polish zloty 126,000 Euro 5,363 Japanese yen 750,820 Euro 15,349 Chinese renminbi 109,671 Euro 15,059 Australian dollar 22,350 Euro 3,274 British pound 2,826 Euro 37 Canadian dollar 50 Euro 500,000 Brazilian real 2,500,000 Polish zloty 2,495 U.S. dollar 559 Polish zloty 40,387 Euro 8,544 British pound 263 Euro 305 Japanese yen 216,550 U.S. dollar 1,665 U.S. dollar 482 Japanese yen 65,000 U.S. dollar 252,729 Euro 240,000 Australian dollar 1,495 Euro 986 Australian dollar 190 U.S. dollar 132 The Company estimates the amount that will be reclassified from accumulated other comprehensive loss at July 2, 2022 into earnings over the next 12 months will be approximately $6.1 million. As of July 2, 2022, 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 July 2, 2022 and July 3, 2021 (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 July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Foreign exchange Foreign currency loss $ 35,025 $ 2,581 $ 42,492 $ 7,970 Foreign exchange Net sales 732 (157) 890 572 Foreign exchange Cost of sales and operating expenses (503) 18 (758) (426) Foreign exchange Selling, general and administrative expenses 3,937 (3,262) (2,587) (731) Corn options and futures Net sales 850 (2,479) (1,286) (3,477) Corn options and futures Cost of sales and operating expenses (2,384) 4,085 3,169 5,554 Total $ 37,657 $ 786 $ 41,920 $ 9,462 At July 2, 2022, the Company had forward purchase agreements in place for purchases of approximately $185.0 million of natural gas and diesel fuel. The Company intends to take physical delivery of the commodities under the |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jul. 02, 2022 | |
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 July 2, 2022 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 July 2, 2022 Using Quoted Prices in Significant Other Significant (In thousands of dollars) Total (Level 1) (Level 2) (Level 3) Assets: Derivative instruments $ 22,257 $ — $ 22,257 $ — Total Assets $ 22,257 $ — $ 22,257 $ — Liabilities: Derivative instruments $ 12,136 $ — $ 12,136 $ — 6% Senior notes 747,150 — 747,150 — 5.25% Senior notes 484,900 — 484,900 — 3.625% Senior notes 494,505 — 494,505 — Term loan A-1 394,000 — 394,000 — Term loan A-2 485,000 — 485,000 — Term loan B 199,000 — 199,000 — Total Liabilities $ 2,816,691 $ — $ 2,816,691 $ — Fair Value Measurements at January 1, 2022 Using Quoted Prices in Significant Other Significant (In thousands of dollars) Total (Level 1) (Level 2) (Level 3) Assets: Derivative instruments $ 5,031 $ — $ 5,031 $ — Total Assets $ 5,031 $ — $ 5,031 $ — Liabilities: Derivative instruments $ 7,173 $ — $ 7,173 $ — 5.25% Senior notes 515,600 — 515,600 — 3.625% Senior notes 591,200 — 591,200 — Term loan B 200,000 — 200,000 — Revolver debt 158,400 — 158,400 — Total Liabilities $ 1,472,373 $ — $ 1,472,373 $ — Derivative assets and liabilities consist of the Company’s corn option and future contracts, foreign currency forward and option contracts and soybean meal forward contracts which represent the difference between observable market rates of commonly quoted intervals for similar assets and liabilities in active markets and the fixed swap rate considering the instruments term, notional amount and credit risk. See Note 14 (Derivatives) 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. |
Restructuring and Asset Impairm
Restructuring and Asset Impairment Charges | 6 Months Ended |
Jul. 02, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Asset Impairment Charges | Restructuring and Asset Impairment Charges In the second quarter of fiscal 2022, the Company lost a large raw material customer at a plant location in Canada that resulted in an asset impairment charge to the Company's intangible assets of approximately $8.6 million. The Company has recorded this in the restructuring and asset impairment charges line on the consolidated statement of operations. In December 2020, due to unfavorable economics in the biodiesel industry, the Company made the decision to shut down processing operations at its biodiesel facilities located in the United States and Canada, and there are no current plans to resume biodiesel production at these facilities in the future. In addition to charges incurred in fiscal 2020, the Company incurred additional restructuring and asset impairment charges in the first quarter of fiscal 2021 related to the biodiesel facilities of approximately $0.8 million, with approximately $0.4 million of this amount being employee termination costs in Canada and the remainder representing charges to long-lived assets and other charges. |
Contingencies
Contingencies | 6 Months Ended |
Jul. 02, 2022 | |
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 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 July 2, 2022 and January 1, 2022, the reserves for insurance, environmental, litigation and tax contingencies reflected on the balance sheet in accrued expenses and other non-current liabilities were approximately $107.5 million and $78.4 million, respectively. The Company has insurance recovery receivables of approximately $45.9 million and $31.8 million as of July 2, 2022 and January 1, 2022, respectively, 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 stretch of the Passaic River (the “Lower 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 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 made no demand on the Company and laid out a framework for remedial design/remedial action implementation in which the EPA will first seek funding from major PRPs. The letter indicates that the EPA has sent the letter to over 100 parties, which include large chemical and refining companies, manufacturing companies, foundries, plastic companies, pharmaceutical companies and food and consumer product companies. The Company 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 eight contaminants of concern identified in the ROD (the “COCs”). Subsequently, the EPA conducted a settlement analysis using a third-party allocator and offered early cash out settlements to those PRPs for whom the third-party allocator determined did not discharge any of the COCs. The Company participated in this allocation process, and in November 2019, 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 accepted this settlement offer, and the settlement became effective on April 16, 2021 following the completion of the EPA's administrative approval process. In September 2021, the EPA relaeased a ROD selecting an interim remedy for the upper nine miles of the Lower Passaic River at an expected additional cost of $441 million 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 Lower 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 Lower 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 Lower 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 Lower 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 Lower Passaic River. Furthermore, the Company's settlement with the EPA described above 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. State of Maryland Department of the Environment (MDE), et al. v. Valley Proteins, Inc. , Circuit Court, Dorchester County (Civil Action No. C-09-CV-22-000022). The Company acquired Valley Proteins on May 2, 2022. On February 2, 2022, the MDE filed suit against Valley Proteins seeking injunctive relief, remediation and penalties for various alleged air and waste regulation and permitting violations at Valley Proteins' animal by-product processing facility in Linkwood, Maryland. Since the completion of the Valley Proteins acquisition, the Company has been working with MDE to resolve this matter, the resolution of which may result in the payment of a civil penalty of $300,000 or more. The Company is also working to resolve the claims of three non-governmental organizations that intervened in this matter. 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 $300,000 or more. |
Business Segments
Business Segments | 6 Months Ended |
Jul. 02, 2022 | |
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, Darling Canada, and the ingredients and specialty products businesses conducted by Darling Ingredients International under the Sonac name (proteins, fats, and blood 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. Fuel Ingredients The Company's Fuel Ingredients segment consists of (i) the Company's investment in the DGD Joint Venture and (ii) 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 July 2, 2022 Net Sales $ 1,170,347 $ 369,181 $ 110,660 $ — $ 1,650,188 Cost of sales and operating expenses 864,306 280,964 86,237 — 1,231,507 Gross Margin 306,041 88,217 24,423 — 418,681 Gain on sale of assets (964) (73) (18) — (1,055) Selling, general and administrative expenses 64,863 22,855 4,277 15,781 107,776 Restructuring and asset impairment charges 8,557 — — — 8,557 Acquisition and integration costs — — — 5,358 5,358 Depreciation and amortization 68,938 14,449 6,936 2,790 93,113 Equity in net income of Diamond Green Diesel — — 73,680 — 73,680 Segment operating income/(loss) 164,647 50,986 86,908 (23,929) 278,612 Equity in net income of other unconsolidated subsidiaries 2,272 — — — 2,272 Segment income/(loss) 166,919 50,986 86,908 (23,929) 280,884 Total other expense (28,722) Income before income taxes $ 252,162 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Three Months Ended July 3, 2021 Net Sales $ 771,932 $ 317,031 $ 109,706 $ — $ 1,198,669 Cost of sales and operating expenses 556,424 238,539 83,110 — 878,073 Gross Margin 215,508 78,492 26,596 — 320,596 Gain on sale of assets (122) (48) (58) — (228) Selling, general and administrative expenses 54,977 25,542 4,474 14,139 99,132 Depreciation and amortization 53,971 15,850 6,698 2,703 79,222 Equity in net income of Diamond Green Diesel — — 125,788 — 125,788 Segment operating income/(loss) 106,682 37,148 141,270 (16,842) 268,258 Equity in net income of other unconsolidated subsidiaries 1,940 — — — 1,940 Segment income/(loss) 108,622 37,148 141,270 (16,842) 270,198 Total other expense (17,150) Income before income taxes $ 253,048 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Six Months Ended July 2, 2022 Net Sales $ 2,049,785 $ 723,995 $ 242,742 $ — $ 3,016,522 Cost of sales and operating expenses 1,509,829 551,276 190,979 — 2,252,084 Gross Margin 539,956 172,719 51,763 — 764,438 Gain on sale of assets (1,305) (82) (57) — (1,444) Selling, general and administrative expenses 121,072 49,699 8,197 30,840 209,808 Restructuring and asset impairment charges 8,557 — — — 8,557 Acquisition and integration costs — — — 9,131 9,131 Depreciation and amortization 123,288 29,899 13,610 5,562 172,359 Equity in net income of Diamond Green Diesel — — 145,484 — 145,484 Segment operating income/(loss) 288,344 93,203 175,497 (45,533) 511,511 Equity in net income of other unconsolidated subsidiaries 3,632 — — — 3,632 Segment income/(loss) 291,976 93,203 175,497 (45,533) 515,143 Total other expense (46,167) Income before income taxes $ 468,976 Segment assets at July 2, 2022 $ 4,036,660 $ 1,189,677 $ 2,144,238 $ 656,111 $ 8,026,686 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Six Months Ended July 3, 2021 Net Sales $ 1,423,376 $ 615,096 $ 206,913 $ — $ 2,245,385 Cost of sales and operating expenses 1,031,005 464,952 154,900 — 1,650,857 Gross Margin 392,371 150,144 52,013 — 594,528 Loss/(gain) on sale of assets (261) 7 (38) — (292) Selling, general and administrative expenses 107,597 50,733 9,341 28,859 196,530 Restructuring and asset impairment charges — — 778 — 778 Depreciation and amortization 108,580 30,733 12,853 5,590 157,756 Equity in net income of Diamond Green Diesel — — 228,013 — 228,013 Segment operating income/(loss) 176,455 68,671 257,092 (34,449) 467,769 Equity in net income of other unconsolidated subsidiaries 2,552 — — — 2,552 Segment income/(loss) 179,007 68,671 257,092 (34,449) 470,321 Total other expense (35,147) Income before income taxes $ 435,174 Segment assets at January 1, 2022 $ 2,714,528 $ 1,205,217 $ 1,658,892 $ 555,091 $ 6,133,728 |
Revenue (Notes)
Revenue (Notes) | 6 Months Ended |
Jul. 02, 2022 | |
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 an 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 Company elected to treat shipping and handling as fulfilment costs, which will result in billed freight recorded in cost of sales and netted against freight costs. Sales, value-add, and other taxes collected concurrently with revenue-producing activities are excluded from revenue and booked on a net basis. The following tables present the Company revenues disaggregated by geographic area and major product types by reportable segment for the three months ended July 2, 2022 and July 3, 2021 (in thousands): Three Months Ended July 2, 2022 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area North America $ 1,028,244 $ 91,381 $ — $ 1,119,625 Europe 132,247 186,865 110,660 429,772 China 6,932 64,326 — 71,258 South America — 12,868 — 12,868 Other 2,924 13,741 — 16,665 Net sales $ 1,170,347 $ 369,181 $ 110,660 $ 1,650,188 Major product types Fats $ 498,914 $ 53,178 $ — $ 552,092 Used cooking oil 152,737 — — 152,737 Proteins 351,125 — — 351,125 Bakery 89,593 — — 89,593 Other rendering 64,123 — — 64,123 Food ingredients — 280,435 — 280,435 Bioenergy — — 110,660 110,660 Other 13,855 35,568 — 49,423 Net sales $ 1,170,347 $ 369,181 $ 110,660 $ 1,650,188 Six Months Ended July 2, 2022 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area North America $ 1,784,082 $ 175,281 $ — $ 1,959,363 Europe 246,710 368,875 242,742 858,327 China 13,568 130,633 — 144,201 South America — 21,364 — 21,364 Other 5,425 27,842 — 33,267 Net sales $ 2,049,785 $ 723,995 $ 242,742 $ 3,016,522 Major product types Fats $ 867,308 $ 105,442 $ — $ 972,750 Used cooking oil 247,633 — — 247,633 Proteins 621,312 — — 621,312 Bakery 168,104 — — 168,104 Other rendering 121,667 — — 121,667 Food ingredients — 550,951 — 550,951 Bioenergy — — 242,742 242,742 Biofuels — — — — Other 23,761 67,602 — 91,363 Net sales $ 2,049,785 $ 723,995 $ 242,742 $ 3,016,522 Three Months Ended July 3, 2021 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area North America $ 660,513 $ 79,165 $ 24 $ 739,702 Europe 104,397 165,654 109,682 379,733 China 3,746 52,092 — 55,838 South America — 5,590 — 5,590 Other 3,276 14,530 — 17,806 Net sales $ 771,932 $ 317,031 $ 109,706 $ 1,198,669 Major product types Fats $ 292,559 $ 41,111 $ — $ 333,670 Used cooking oil 86,437 — — 86,437 Proteins 258,391 — — 258,391 Bakery 79,202 — — 79,202 Other rendering 45,452 — — 45,452 Food ingredients — 239,622 — 239,622 Bioenergy — — 109,682 109,682 Biofuels — — 24 24 Other 9,891 36,298 — 46,189 Net sales $ 771,932 $ 317,031 $ 109,706 $ 1,198,669 Six Months Ended July 3, 2021 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area North America $ 1,209,528 $ 140,105 $ 3,374 $ 1,353,007 Europe 202,042 321,017 203,539 726,598 China 5,684 110,024 — 115,708 South America — 16,044 — 16,044 Other 6,122 27,906 — 34,028 Net sales $ 1,423,376 $ 615,096 $ 206,913 $ 2,245,385 Major product types Fats $ 521,565 $ 82,544 $ — $ 604,109 Used cooking oil 137,466 — — 137,466 Proteins 513,898 — — 513,898 Bakery 142,307 — — 142,307 Other rendering 88,409 — — 88,409 Food ingredients — 469,164 — 469,164 Bioenergy — — 203,539 203,539 Biofuels — — 3,374 3,374 Other 19,731 63,388 — 83,119 Net sales $ 1,423,376 $ 615,096 $ 206,913 $ 2,245,385 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 2022 under these long-term supply contracts was approximately $73.4 million, with the remaining performance obligations to be recognized in future periods (generally 5 years) of approximately $1.17 billion. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jul. 02, 2022 | |
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, 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 July 2, 2022 and July 3, 2021, the Company recorded sales to the DGD Joint Venture of approximately $295.7 million and $109.8 million, respectively. For the six months ended July 2, 2022 and July 3, 2021, the Company recorded sales to the DGD Joint Venture of approximately $510.1 million and $198.8 million, respectively. At July 2, 2022 and January 1, 2022, the Company has $37.7 million and $43.8 million in outstanding receivables due from the DGD Joint Venture, respectively. In addition, the Company has eliminated approximately $38.5 million and $9.8 million of additional sales for the six months ended July 2, 2022 and July 3, 2021, respectively to defer the Company's portion of profit of approximately $10.1 million and $2.4 million on those sales relating to inventory assets remaining on the DGD Joint Venture's balance sheet at July 2, 2022 and July 3, 2021, 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, 2023, unless extended by agreement of the parties. During the fourth quarter of fiscal 2021, the DGD Joint Venture borrowed all $50.0 million available under the DGD Loan Agreement, including the Company's full $25.0 million commitment and paid interest to the Company for the three and six months ended July 2, 2022 of approximately $0.2 million and $0.4 million, respectively. As of July 2, 2022, $25.0 million was owed to Darling Green under the DGD Loan Agreement. The note receivable amount is included in other current assets on the consolidated balance sheet. Guarantee Agreements In February 2020, in connection with the DGD Joint Venture’s expansion project at its Norco, LA facility, it 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 a maximum of approximately $50 million each, of the DGD Joint Venture’s obligations under the IMTT Terminaling Agreements (the “IMTT Guarantee”), subject to the conditions provided for in the IMTT Terminaling Agreements. The Company has not recorded any liability as a result of the IMTT Guarantee, as the Company believes the likelihood of having to make any payments under the IMTT Guarantee is remote. In April 2021, in connection with the DGD Joint Venture’s expansion project at its Port Arthur, TX facility, it entered into two agreements (the “GTL Terminaling Agreements”) with GT Logistics, LLC (“GTL”), pursuant to which the DGD Joint Venture will move raw material and finished product to and from the GTL terminal facility by pipeline, thereby providing better logistical capabilities. As a condition to entering into the GTL Terminaling Agreements, GLT required that the Company and Valero guarantee their proportionate share, up to a maximum of approximately $160 million each, of the DGD Joint Venture’s obligations under the GTL Terminaling Agreements (the “ GTL Guarantee ”), subject to the conditions provided for in the GTL Terminaling Agreements. The maximum amount of the GTL Guarantee is reduced over the 20-year initial term of the GTL Terminaling Agreements as the termination fee under such agreements declines. The Company has not recorded any liability as a result of the GTL Guarantee, as the Company believes the likelihood of having to make any payments under the GTL Guarantee is remote. |
Cash Flow Information
Cash Flow Information | 6 Months Ended |
Jul. 02, 2022 | |
Nonmonetary Transactions [Abstract] | |
Cash Flow Information | Cash Flow Information The following table sets forth supplemental cash flow information and non-cash transactions (in thousands): Six Months Ended July 2, 2022 July 3, 2021 Supplemental disclosure of cash flow information: Change in accrued capital expenditures $ (2,947) $ 1,101 Cash paid during the period for: Interest, net of capitalized interest $ 33,791 $ 29,928 Income taxes, net of refunds $ 72,377 $ 25,270 Non-cash operating activities Operating lease right of use asset obtained in exchange for new lease liabilities $ 41,554 $ 44,218 Non-cash financing activities Debt issued for assets $ 1,005 $ 60 |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jul. 02, 2022 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | New Accounting PronouncementsThe Company does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying consolidated financial statements. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jul. 02, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent to July 2, 2022, the Company repurchased approximately $29.3 million, including commissions, of its common stock in the open market. On July 29, 2022, the DGD Joint Venture repaid all $50.0 million outstanding under the DGD Loan Agreement including the Company's full $25.0 million commitment together with interest. On August 1, 2022, the Company paid approximately R$2.9 billion Brazilian Real in cash (approximately $562.6 million USD at the exchange rate in effect on the closing date) for all the shares of the FASA Group, the largest independent rendering company in Brazil, subject to post closing adjustments and a contingent payment based on future earnings growth. The Company financed this transaction by borrowing approximately $515.0 million of revolver borrowings under the Company's Amended Credit Agreement with the remainder coming from cash on hand. On August 5, 2022, the Company received a dividend distribution of approximately $90.5 million from the DGD Joint Venture. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 02, 2022 | |
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 July 2, 2022, and include the 13 and 26 weeks ended July 2, 2022, and the 13 and 26 weeks ended July 3, 2021. |
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. |
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. As a result of the continuing global COVID-19 pandemic, and related government-imposed movement restrictions and initiatives implemented to reduce the global transmission of COVID-19, as well as the Russia-Ukraine war, 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 July 2, 2022, the Company has not observed any impairments of the Company's assets or a significant change in their fair value due to the COVID-19 pandemic or the Russia-Ukraine war. |
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. |
Income Taxes | The Company has provided income taxes for the three and six month periods ended July 2, 2022 and July 3, 2021, based on its estimate of the effective tax rate for the entire 2022 and 2021 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
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 July 2, 2022 July 3, 2021 Income Shares Per Share Income Shares Per Share Basic: Net Income attributable to Darling $ 201,996 161,632 $ 1.25 $ 196,582 163,023 $ 1.21 Diluted: Effect of dilutive securities: Add: Option shares in the money and dilutive effect of non-vested stock awards 3,781 5,402 Less: Pro forma treasury shares (668) (828) Diluted: Net income attributable to Darling $ 201,996 164,745 $ 1.23 $ 196,582 167,597 $ 1.17 Net Income per Common Share (in thousands, except per share data) Six Months Ended July 2, 2022 July 3, 2021 Income Shares Per Share Income Shares Per Share Basic: Net Income attributable to Darling $ 390,049 161,514 $ 2.41 $ 348,348 162,974 $ 2.14 Diluted: Effect of dilutive securities: Add: Option shares in the money and dilutive effect of non-vested stock awards 3,879 5,567 Less: Pro forma treasury shares (720) (868) Diluted: Net income attributable to Darling $ 390,049 164,673 $ 2.37 $ 348,348 167,673 $ 2.08 |
Investment in Unconsolidated _2
Investment in Unconsolidated Subsidiary (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
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, 2022 December 31, 2021 Assets: Total current assets $ 1,065,686 $ 686,294 Property, plant and equipment, net 3,131,430 2,710,747 Other assets 52,324 51,514 Total assets $ 4,249,440 $ 3,448,555 Liabilities and members' equity: Total current portion of long term debt $ 165,439 $ 165,092 Total other current liabilities 333,651 295,860 Total long term debt 336,743 344,309 Total other long term liabilities 17,148 17,531 Total members' equity 3,396,459 2,625,763 Total liabilities and members' equity $ 4,249,440 $ 3,448,555 Three Months Ended Six Months Ended (in thousands) June 30, 2022 June 30, 2021 June 30, 2022 June 30, 2021 Revenues: Operating revenues $ 1,455,886 $ 571,859 $ 2,436,578 $ 1,003,492 Expenses: Total costs and expenses less depreciation, amortization and accretion expense 1,274,665 307,857 2,082,237 523,091 Depreciation, amortization and accretion expense 31,317 11,995 57,809 23,682 Total costs and expenses 1,305,982 319,852 2,140,046 546,773 Operating income 149,904 252,007 296,532 456,719 Other income 722 353 711 411 Interest and debt expense, net (3,266) (784) (6,275) (1,104) Net income $ 147,360 $ 251,576 $ 290,968 $ 456,026 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary estimated fair value of the assets acquired and the liabilities assumed in the Valley Acquisition as of May 2, 2022 (unaudited) (in thousands): Accounts receivable $ 68,558 Inventories 58,246 Other current assets 13,825 Property, plant and equipment 409,405 Identifiable intangible assets 389,200 Goodwill 349,262 Operating lease right-of-use assets 16,380 Other assets 14,164 Accounts payable (47,497) Current portion of long-term debt (2,043) Current operating lease liabilities (4,779) Accrued expenses (62,046) Long-term debt, net of current portion (5,995) Long-term operating lease liabilities (11,601) Other noncurrent liabilities (19,436) Purchase price, net of cash acquired $ 1,165,643 |
Business Acquisition, Pro Forma Information | As a result of the Valley Acquisition, effective May 2, 2022, the Company began including the operations of the Valley Acquisition into the Company's consolidated financial statements. The following table presents selected pro forma information, for comparative purposes, assuming the Valley Acquisition had occurred on January 3, 2021 for the periods presented (unaudited) (in thousands): Three Months Ended Six Months Ended July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Net sales $ 1,722,803 $ 1,394,771 $ 3,306,982 $ 2,637,589 Net income 195,533 185,723 358,377 326,795 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | A summary of inventories follows (in thousands): July 2, 2022 January 1, 2022 Finished product $ 346,054 $ 272,995 Work in process 82,204 81,158 Raw material 52,587 48,186 Supplies and other 97,557 55,126 $ 578,402 $ 457,465 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
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): July 2, 2022 January 1, 2022 Indefinite Lived Intangible Assets: Trade names $ 51,085 $ 53,133 51,085 53,133 Finite Lived Intangible Assets: Routes 632,804 337,399 Permits 561,930 475,520 Non-compete agreements 695 645 Trade names 65,675 65,675 Royalty, consulting, land use rights and leasehold 24,683 25,899 1,285,787 905,138 Accumulated Amortization: Routes (170,914) (169,984) Permits (348,158) (336,020) Non-compete agreements (500) (441) Trade names (49,297) (46,028) Royalty, consulting, land use rights and leasehold (7,924) (7,997) (576,793) (560,470) Total Intangible assets, less accumulated amortization $ 760,079 $ 397,801 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
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 January 1, 2022 Goodwill $ 814,863 $ 332,866 $ 119,342 $ 1,267,071 Accumulated impairment losses (15,914) (461) (31,580) (47,955) 798,949 332,405 87,762 1,219,116 Goodwill acquired during year 349,757 — 29,928 379,685 Foreign currency translation (17,064) (17,086) (8,837) (42,987) Balance at July 2, 2022 Goodwill 1,147,556 315,780 140,433 1,603,769 Accumulated impairment losses (15,914) (461) (31,580) (47,955) $ 1,131,642 $ 315,319 $ 108,853 $ 1,555,814 |
Accrued Expense (Tables)
Accrued Expense (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following (in thousands): July 2, 2022 January 1, 2022 Compensation and benefits $ 106,163 $ 123,180 Accrued ad valorem and franchise taxes 17,674 20,140 Accrued operating expenses 100,627 81,200 Other accrued expense 174,134 126,161 $ 398,598 $ 350,681 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consists of the following (in thousands): July 2, 2022 January 1, 2022 Amended Credit Agreement: Revolving Credit Facility $ — $ 160,000 Term A-1 facility 400,000 — Less unamortized deferred loan costs (809) — Carrying value Term A-1 facility 399,191 — Term A-2 facility 500,000 — Less unamortized deferred loan costs (1,167) — Carrying value Term A-2 facility 498,833 — Term Loan B 200,000 200,000 Less unamortized deferred loan costs (1,618) (1,928) Carrying value Term Loan B 198,382 198,072 6% Senior Notes due 2030 with effective interest of 6.20% 750,000 — Less unamortized deferred loan costs (9,397) — Carrying value 6% Senior Notes due 2030 740,603 — 5.25% Senior Notes due 2027 with effective interest of 5.47% 500,000 500,000 Less unamortized deferred loan costs (4,548) (4,959) Carrying value 5.25% Senior Notes due 2027 495,452 495,041 3.625% Senior Notes due 2026 - Denominated in euro with effective interest of 3.83% 537,506 582,980 Less unamortized deferred loan costs - Denominated in euro (4,142) (5,031) Carrying value 3.625% Senior Notes due 2026 533,364 577,949 Other Notes and Obligations 48,004 32,319 2,913,829 1,463,381 Less Current Maturities 32,695 24,407 $ 2,881,134 $ 1,438,974 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
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 July 2, 2022 and July 3, 2021 are as follows (in thousands): Three Months Ended Before-Tax Tax (Expense) Net-of-Tax Amount or Benefit Amount July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Defined benefit pension plans Amortization of prior service (cost)/benefit 6 6 (2) (2) 4 4 Amortization of actuarial loss 570 1,053 (146) (265) 424 788 Total defined benefit pension plans 576 1,059 (148) (267) 428 792 Soybean meal option derivatives Reclassified to earnings 124 32 (31) (8) 93 24 Activity recognized in other comprehensive income/(loss) (144) (55) 37 14 (107) (41) Total soybean meal option derivatives (20) (23) 6 6 (14) (17) Corn option derivatives Reclassified to earnings 7,238 6,743 (1,839) (1,712) 5,399 5,031 Activity recognized in other comprehensive income/(loss) 726 (7,220) (184) 1,833 542 (5,387) Total corn option derivatives 7,964 (477) (2,023) 121 5,941 (356) Heating oil derivatives Activity recognized in other comprehensive income/(loss) 24,847 (3,094) (6,312) 786 18,535 (2,308) Total heating oil derivatives 24,847 (3,094) (6,312) 786 18,535 (2,308) Foreign exchange derivatives Reclassified to earnings (6,280) (838) 2,055 394 (4,225) (444) Activity recognized in other comprehensive income/(loss) (25,091) 11,372 8,597 (3,977) (16,494) 7,395 Total foreign exchange derivatives (31,371) 10,534 10,652 (3,583) (20,719) 6,951 Foreign currency translation (95,562) 22,560 1,707 (176) (93,855) 22,384 Other comprehensive income/(loss) $ (93,566) $ 30,559 $ 3,882 $ (3,113) $ (89,684) $ 27,446 Six Months Ended Before-Tax Tax (Expense) Net-of-Tax Amount or Benefit Amount July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Defined benefit pension plans Amortization of prior service (cost)/benefit $ 11 $ 11 $ (3) $ (3) $ 8 $ 8 Amortization of actuarial loss 1,140 2,105 (291) (529) 849 1,576 Total defined benefit pension plans 1,151 2,116 (294) (532) 857 1,584 Soybean meal option derivatives Reclassified to earnings (317) (248) 81 63 (236) (185) Activity recognized in other comprehensive income/(loss) (24) (119) 6 30 (18) (89) Total soybean meal option derivatives (341) (367) 87 93 (254) (274) Corn option derivatives Reclassified to earnings 11,345 10,663 (2,882) (2,708) 8,463 7,955 Activity recognized in other comprehensive income/(loss) (10,159) (12,213) 2,581 3,102 (7,578) (9,111) Total corn option derivatives 1,186 (1,550) (301) 394 885 (1,156) Heating oil derivatives Activity recognized in other comprehensive income/(loss) 2,377 1,550 (604) (394) 1,773 1,156 Total heating oil derivatives 2,377 1,550 (604) (394) 1,773 1,156 Foreign exchange derivatives Reclassified to earnings (7,351) (614) 2,415 319 (4,936) (295) Activity recognized in other comprehensive income/(loss) 20,331 915 (6,679) (475) 13,652 440 Total foreign exchange derivatives 12,980 301 (4,264) (156) 8,716 145 Foreign currency translation (92,901) (17,177) 2,428 1,339 (90,473) (15,838) Other comprehensive income/(loss) $ (75,548) $ (15,127) $ (2,948) $ 744 $ (78,496) $ (14,383) |
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 July 2, 2022 and July 3, 2021 as follows (in thousands): Three Months Ended Six Months Ended July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Statement of Operations Classification Derivative instruments Soybean meal derivatives $ (124) $ (32) $ 317 $ 248 Net sales Foreign exchange contracts 6,280 838 7,351 614 Net sales Corn option derivatives (7,238) (6,743) (11,345) (10,663) Cost of sales and operating expenses (1,082) (5,937) (3,677) (9,801) Total before tax (185) 1,326 386 2,326 Income taxes (1,267) (4,611) (3,291) (7,475) Net of tax Defined benefit pension plans Amortization of prior service cost $ (6) $ (6) $ (11) $ (11) (a) Amortization of actuarial loss (570) (1,053) (1,140) (2,105) (a) (576) (1,059) (1,151) (2,116) Total before tax 148 267 294 532 Income taxes (428) (792) (857) (1,584) Net of tax Total reclassifications $ (1,695) $ (5,403) $ (4,148) $ (9,059) Net of tax (a) These items are included in the computation of net periodic pension cost. See Note 13 (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 July 2, 2022 as follows (in thousands): Six Months Ended July 2, 2022 Foreign Currency Derivative Defined Benefit Translation Instruments Pension Plans Total Accumulated Other Comprehensive loss January 1, 2022, attributable to Darling, net of tax $ (289,586) $ (6,456) $ (25,648) $ (321,690) Other comprehensive loss before reclassifications (90,473) 7,829 — (82,644) Amounts reclassified from accumulated other comprehensive loss — 3,291 857 4,148 Net current-period other comprehensive income/(loss) (90,473) 11,120 857 (78,496) Noncontrolling interest 721 — — 721 Accumulated Other Comprehensive loss July 2, 2022, attributable to Darling, net of tax $ (380,780) $ 4,664 $ (24,791) $ (400,907) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Retirement Benefits [Abstract] | |
Net pension cost | Net pension cost for the three and six months months ended July 2, 2022 and July 3, 2021 includes the following components (in thousands): Pension Benefits Pension Benefits Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, Service cost $ 798 $ 796 $ 1,626 $ 1,581 Interest cost 1,312 1,209 2,632 2,413 Expected return on plan assets (2,156) (2,328) (4,321) (4,649) Amortization of prior service cost 6 6 11 11 Amortization of actuarial loss 570 1,053 1,140 2,105 Net pension cost $ 530 $ 736 $ 1,088 $ 1,461 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | (in thousands): Functional Currency Contract Currency Type Amount Type Amount Brazilian real 2,599 Euro 468 Brazilian real 3,121,236 U.S. dollar 746,850 Euro 38,298 U.S. dollar 41,403 Euro 26,873 Polish zloty 126,000 Euro 5,363 Japanese yen 750,820 Euro 15,349 Chinese renminbi 109,671 Euro 15,059 Australian dollar 22,350 Euro 3,274 British pound 2,826 Euro 37 Canadian dollar 50 Euro 500,000 Brazilian real 2,500,000 Polish zloty 2,495 U.S. dollar 559 Polish zloty 40,387 Euro 8,544 British pound 263 Euro 305 Japanese yen 216,550 U.S. dollar 1,665 U.S. dollar 482 Japanese yen 65,000 U.S. dollar 252,729 Euro 240,000 Australian dollar 1,495 Euro 986 Australian dollar 190 U.S. dollar 132 |
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 July 2, 2022 and July 3, 2021 (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 July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Foreign exchange Foreign currency loss $ 35,025 $ 2,581 $ 42,492 $ 7,970 Foreign exchange Net sales 732 (157) 890 572 Foreign exchange Cost of sales and operating expenses (503) 18 (758) (426) Foreign exchange Selling, general and administrative expenses 3,937 (3,262) (2,587) (731) Corn options and futures Net sales 850 (2,479) (1,286) (3,477) Corn options and futures Cost of sales and operating expenses (2,384) 4,085 3,169 5,554 Total $ 37,657 $ 786 $ 41,920 $ 9,462 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring and Nonrecurring 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 July 2, 2022 Using Quoted Prices in Significant Other Significant (In thousands of dollars) Total (Level 1) (Level 2) (Level 3) Assets: Derivative instruments $ 22,257 $ — $ 22,257 $ — Total Assets $ 22,257 $ — $ 22,257 $ — Liabilities: Derivative instruments $ 12,136 $ — $ 12,136 $ — 6% Senior notes 747,150 — 747,150 — 5.25% Senior notes 484,900 — 484,900 — 3.625% Senior notes 494,505 — 494,505 — Term loan A-1 394,000 — 394,000 — Term loan A-2 485,000 — 485,000 — Term loan B 199,000 — 199,000 — Total Liabilities $ 2,816,691 $ — $ 2,816,691 $ — Fair Value Measurements at January 1, 2022 Using Quoted Prices in Significant Other Significant (In thousands of dollars) Total (Level 1) (Level 2) (Level 3) Assets: Derivative instruments $ 5,031 $ — $ 5,031 $ — Total Assets $ 5,031 $ — $ 5,031 $ — Liabilities: Derivative instruments $ 7,173 $ — $ 7,173 $ — 5.25% Senior notes 515,600 — 515,600 — 3.625% Senior notes 591,200 — 591,200 — Term loan B 200,000 — 200,000 — Revolver debt 158,400 — 158,400 — Total Liabilities $ 1,472,373 $ — $ 1,472,373 $ — |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments (in thousands): Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Three Months Ended July 2, 2022 Net Sales $ 1,170,347 $ 369,181 $ 110,660 $ — $ 1,650,188 Cost of sales and operating expenses 864,306 280,964 86,237 — 1,231,507 Gross Margin 306,041 88,217 24,423 — 418,681 Gain on sale of assets (964) (73) (18) — (1,055) Selling, general and administrative expenses 64,863 22,855 4,277 15,781 107,776 Restructuring and asset impairment charges 8,557 — — — 8,557 Acquisition and integration costs — — — 5,358 5,358 Depreciation and amortization 68,938 14,449 6,936 2,790 93,113 Equity in net income of Diamond Green Diesel — — 73,680 — 73,680 Segment operating income/(loss) 164,647 50,986 86,908 (23,929) 278,612 Equity in net income of other unconsolidated subsidiaries 2,272 — — — 2,272 Segment income/(loss) 166,919 50,986 86,908 (23,929) 280,884 Total other expense (28,722) Income before income taxes $ 252,162 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Three Months Ended July 3, 2021 Net Sales $ 771,932 $ 317,031 $ 109,706 $ — $ 1,198,669 Cost of sales and operating expenses 556,424 238,539 83,110 — 878,073 Gross Margin 215,508 78,492 26,596 — 320,596 Gain on sale of assets (122) (48) (58) — (228) Selling, general and administrative expenses 54,977 25,542 4,474 14,139 99,132 Depreciation and amortization 53,971 15,850 6,698 2,703 79,222 Equity in net income of Diamond Green Diesel — — 125,788 — 125,788 Segment operating income/(loss) 106,682 37,148 141,270 (16,842) 268,258 Equity in net income of other unconsolidated subsidiaries 1,940 — — — 1,940 Segment income/(loss) 108,622 37,148 141,270 (16,842) 270,198 Total other expense (17,150) Income before income taxes $ 253,048 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Six Months Ended July 2, 2022 Net Sales $ 2,049,785 $ 723,995 $ 242,742 $ — $ 3,016,522 Cost of sales and operating expenses 1,509,829 551,276 190,979 — 2,252,084 Gross Margin 539,956 172,719 51,763 — 764,438 Gain on sale of assets (1,305) (82) (57) — (1,444) Selling, general and administrative expenses 121,072 49,699 8,197 30,840 209,808 Restructuring and asset impairment charges 8,557 — — — 8,557 Acquisition and integration costs — — — 9,131 9,131 Depreciation and amortization 123,288 29,899 13,610 5,562 172,359 Equity in net income of Diamond Green Diesel — — 145,484 — 145,484 Segment operating income/(loss) 288,344 93,203 175,497 (45,533) 511,511 Equity in net income of other unconsolidated subsidiaries 3,632 — — — 3,632 Segment income/(loss) 291,976 93,203 175,497 (45,533) 515,143 Total other expense (46,167) Income before income taxes $ 468,976 Segment assets at July 2, 2022 $ 4,036,660 $ 1,189,677 $ 2,144,238 $ 656,111 $ 8,026,686 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Six Months Ended July 3, 2021 Net Sales $ 1,423,376 $ 615,096 $ 206,913 $ — $ 2,245,385 Cost of sales and operating expenses 1,031,005 464,952 154,900 — 1,650,857 Gross Margin 392,371 150,144 52,013 — 594,528 Loss/(gain) on sale of assets (261) 7 (38) — (292) Selling, general and administrative expenses 107,597 50,733 9,341 28,859 196,530 Restructuring and asset impairment charges — — 778 — 778 Depreciation and amortization 108,580 30,733 12,853 5,590 157,756 Equity in net income of Diamond Green Diesel — — 228,013 — 228,013 Segment operating income/(loss) 176,455 68,671 257,092 (34,449) 467,769 Equity in net income of other unconsolidated subsidiaries 2,552 — — — 2,552 Segment income/(loss) 179,007 68,671 257,092 (34,449) 470,321 Total other expense (35,147) Income before income taxes $ 435,174 Segment assets at January 1, 2022 $ 2,714,528 $ 1,205,217 $ 1,658,892 $ 555,091 $ 6,133,728 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present the Company revenues disaggregated by geographic area and major product types by reportable segment for the three months ended July 2, 2022 and July 3, 2021 (in thousands): Three Months Ended July 2, 2022 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area North America $ 1,028,244 $ 91,381 $ — $ 1,119,625 Europe 132,247 186,865 110,660 429,772 China 6,932 64,326 — 71,258 South America — 12,868 — 12,868 Other 2,924 13,741 — 16,665 Net sales $ 1,170,347 $ 369,181 $ 110,660 $ 1,650,188 Major product types Fats $ 498,914 $ 53,178 $ — $ 552,092 Used cooking oil 152,737 — — 152,737 Proteins 351,125 — — 351,125 Bakery 89,593 — — 89,593 Other rendering 64,123 — — 64,123 Food ingredients — 280,435 — 280,435 Bioenergy — — 110,660 110,660 Other 13,855 35,568 — 49,423 Net sales $ 1,170,347 $ 369,181 $ 110,660 $ 1,650,188 Six Months Ended July 2, 2022 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area North America $ 1,784,082 $ 175,281 $ — $ 1,959,363 Europe 246,710 368,875 242,742 858,327 China 13,568 130,633 — 144,201 South America — 21,364 — 21,364 Other 5,425 27,842 — 33,267 Net sales $ 2,049,785 $ 723,995 $ 242,742 $ 3,016,522 Major product types Fats $ 867,308 $ 105,442 $ — $ 972,750 Used cooking oil 247,633 — — 247,633 Proteins 621,312 — — 621,312 Bakery 168,104 — — 168,104 Other rendering 121,667 — — 121,667 Food ingredients — 550,951 — 550,951 Bioenergy — — 242,742 242,742 Biofuels — — — — Other 23,761 67,602 — 91,363 Net sales $ 2,049,785 $ 723,995 $ 242,742 $ 3,016,522 Three Months Ended July 3, 2021 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area North America $ 660,513 $ 79,165 $ 24 $ 739,702 Europe 104,397 165,654 109,682 379,733 China 3,746 52,092 — 55,838 South America — 5,590 — 5,590 Other 3,276 14,530 — 17,806 Net sales $ 771,932 $ 317,031 $ 109,706 $ 1,198,669 Major product types Fats $ 292,559 $ 41,111 $ — $ 333,670 Used cooking oil 86,437 — — 86,437 Proteins 258,391 — — 258,391 Bakery 79,202 — — 79,202 Other rendering 45,452 — — 45,452 Food ingredients — 239,622 — 239,622 Bioenergy — — 109,682 109,682 Biofuels — — 24 24 Other 9,891 36,298 — 46,189 Net sales $ 771,932 $ 317,031 $ 109,706 $ 1,198,669 Six Months Ended July 3, 2021 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area North America $ 1,209,528 $ 140,105 $ 3,374 $ 1,353,007 Europe 202,042 321,017 203,539 726,598 China 5,684 110,024 — 115,708 South America — 16,044 — 16,044 Other 6,122 27,906 — 34,028 Net sales $ 1,423,376 $ 615,096 $ 206,913 $ 2,245,385 Major product types Fats $ 521,565 $ 82,544 $ — $ 604,109 Used cooking oil 137,466 — — 137,466 Proteins 513,898 — — 513,898 Bakery 142,307 — — 142,307 Other rendering 88,409 — — 88,409 Food ingredients — 469,164 — 469,164 Bioenergy — — 203,539 203,539 Biofuels — — 3,374 3,374 Other 19,731 63,388 — 83,119 Net sales $ 1,423,376 $ 615,096 $ 206,913 $ 2,245,385 |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 6 Months Ended |
Jul. 02, 2022 | |
Nonmonetary Transactions [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | The following table sets forth supplemental cash flow information and non-cash transactions (in thousands): Six Months Ended July 2, 2022 July 3, 2021 Supplemental disclosure of cash flow information: Change in accrued capital expenditures $ (2,947) $ 1,101 Cash paid during the period for: Interest, net of capitalized interest $ 33,791 $ 29,928 Income taxes, net of refunds $ 72,377 $ 25,270 Non-cash operating activities Operating lease right of use asset obtained in exchange for new lease liabilities $ 41,554 $ 44,218 Non-cash financing activities Debt issued for assets $ 1,005 $ 60 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Summary of Significant Accounting Policies [Line Items] | ||||
Financing Receivable, Sale | $ 145,000 | $ 106,300 | $ 271,300 | $ 213,200 |
Financing Receivable, Significant Sales, Transaction Fees | 700 | 200 | 1,100 | 500 |
Basic: | ||||
Net income | $ 201,996 | $ 196,582 | $ 390,049 | $ 348,348 |
Shares (in shares) | 161,632,000 | 163,023,000 | 161,514,000 | 162,974,000 |
Per Share (in usd per share) | $ 1.25 | $ 1.21 | $ 2.41 | $ 2.14 |
Effect of dilutive securities: [Abstract] | ||||
Add: Option shares in the money and dilutive effect of non-vested stock (in shares) | 3,781,000 | 5,402,000 | 3,879,000 | 5,567,000 |
Less: Pro forma treasury shares (in shares) | (668,000) | (828,000) | (720,000) | (868,000) |
Diluted: | ||||
Net Income | $ 201,996 | $ 196,582 | $ 390,049 | $ 348,348 |
Shares (in shares) | 164,745,000 | 167,597,000 | 164,673,000 | 167,673,000 |
Per Share (in usd per share) | $ 1.23 | $ 1.17 | $ 2.37 | $ 2.08 |
Stock Options [Member] | ||||
Antidilutive Securities [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | 0 | 0 |
Non Vested Stock [Member] | ||||
Antidilutive Securities [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 249,564 | 259,281 | 248,051 | 234,527 |
Investment in Unconsolidated _3
Investment in Unconsolidated Subsidiary (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | Jan. 01, 2022 | Jan. 21, 2011 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in the joint venture | $ 1,736,242 | $ 1,736,242 | $ 1,349,247 | |||
Income (loss) from equity method investments | 2,272 | $ 1,940 | 3,632 | $ 2,552 | ||
Capital contribution | 239,750 | 0 | ||||
Diamond Green Diesel Holdings LLC Joint Venture [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 50% | |||||
Investment in the joint venture | 1,702,200 | 1,702,200 | ||||
Income (loss) from equity method investments | 73,700 | 125,800 | 145,500 | 228,000 | ||
Income Tax Credits and Adjustments | $ 198,400 | $ 83,900 | 354,200 | 162,900 | ||
Capital contribution | $ 239,750 | $ 0 | ||||
Diamond Green Diesel Holdings LLC Joint Venture [Member] | Valero Energy Corporation [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership percentage | 50% |
Investment in Unconsolidated _4
Investment in Unconsolidated Subsidiary (Assets, Liabilities and members' equity) (Details) - USD ($) $ in Thousands | Jul. 02, 2022 | Jun. 30, 2022 | Apr. 02, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | Jul. 03, 2021 | Apr. 03, 2021 | Jan. 02, 2021 |
ASSETS | ||||||||
Assets, Current | $ 1,461,826 | $ 1,089,014 | ||||||
Property, Plant and Equipment, Net | 2,237,199 | 1,840,080 | ||||||
Other assets | 81,886 | 66,795 | ||||||
Segment Assets | 8,026,686 | 6,133,728 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current portion of long-term debt | 32,695 | 24,407 | ||||||
Other non-current liabilities | 128,399 | 111,029 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 3,566,523 | $ 3,495,650 | 3,347,785 | $ 3,183,810 | $ 3,029,946 | $ 2,954,209 | ||
Liabilities and Equity | $ 8,026,686 | $ 6,133,728 | ||||||
Diamond Green Diesel Holdings LLC Joint Venture [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||||
ASSETS | ||||||||
Assets, Current | $ 1,065,686 | $ 686,294 | ||||||
Property, Plant and Equipment, Net | 3,131,430 | 2,710,747 | ||||||
Other assets | 52,324 | 51,514 | ||||||
Segment Assets | 4,249,440 | 3,448,555 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current portion of long-term debt | 165,439 | 165,092 | ||||||
Other Liabilities, Current | 333,651 | 295,860 | ||||||
Long-term Debt, Excluding Current Maturities | 336,743 | 344,309 | ||||||
Other non-current liabilities | 17,148 | 17,531 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 3,396,459 | 2,625,763 | ||||||
Liabilities and Equity | $ 4,249,440 | $ 3,448,555 |
Investment in Unconsolidated _5
Investment in Unconsolidated Subsidiary (Revenues and Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Jul. 02, 2022 | Jun. 30, 2022 | Apr. 02, 2022 | Jul. 03, 2021 | Jun. 30, 2021 | Apr. 03, 2021 | Jul. 02, 2022 | Jun. 30, 2022 | Jul. 03, 2021 | Jun. 30, 2021 | |
Revenues: | ||||||||||
Operating revenues | $ 1,650,188 | $ 1,198,669 | $ 3,016,522 | $ 2,245,385 | ||||||
Expenses: | ||||||||||
Cost of sales and operating expenses | 1,231,507 | 878,073 | 2,252,084 | 1,650,857 | ||||||
Total costs and expenses | 1,445,256 | 1,056,199 | 2,650,495 | 2,005,629 | ||||||
Operating income | 278,612 | 268,258 | 511,511 | 467,769 | ||||||
Net income | $ 204,829 | $ 190,731 | $ 198,069 | $ 153,418 | $ 395,560 | $ 351,487 | ||||
Diamond Green Diesel Holdings LLC Joint Venture [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||||||||
Revenues: | ||||||||||
Operating revenues | $ 1,455,886 | $ 571,859 | $ 2,436,578 | $ 1,003,492 | ||||||
Expenses: | ||||||||||
Cost of sales and operating expenses | 1,274,665 | 307,857 | 2,082,237 | 523,091 | ||||||
Depreciation, amortization and accretion expense | 31,317 | 11,995 | 57,809 | 23,682 | ||||||
Total costs and expenses | 1,305,982 | 319,852 | 2,140,046 | 546,773 | ||||||
Operating income | 149,904 | 252,007 | 296,532 | 456,719 | ||||||
Other income | 722 | 353 | 711 | 411 | ||||||
Interest and debt expense, net | (3,266) | (784) | (6,275) | (1,104) | ||||||
Net income | $ 147,360 | $ 251,576 | $ 290,968 | $ 456,026 |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
May 02, 2022 USD ($) facilities | Feb. 28, 2022 USD ($) | Jul. 02, 2022 USD ($) | Jul. 03, 2021 USD ($) | Jul. 02, 2022 USD ($) | Jul. 03, 2021 USD ($) | Feb. 25, 2022 USD ($) | Jan. 01, 2022 USD ($) | |
Business Acquisition [Line Items] | ||||||||
Property, plant and equipment | $ 409,405 | |||||||
Goodwill | 349,262 | $ 1,555,814 | $ 1,555,814 | $ 1,219,116 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | (19,436) | |||||||
Acquisition and integration costs | 5,358 | $ 0 | 9,131 | $ 0 | ||||
Net sales | 1,650,188 | 1,198,669 | 3,016,522 | 2,245,385 | ||||
Net income attributable to Darling | 201,996 | $ 196,582 | 390,049 | $ 348,348 | ||||
Senior Secured Facilities | Term A-1 Facility | ||||||||
Business Acquisition [Line Items] | ||||||||
Line of credit outstanding | 400,000 | 400,000 | ||||||
Senior Secured Facilities | Term A-2 Facility | ||||||||
Business Acquisition [Line Items] | ||||||||
Line of credit outstanding | 500,000 | 500,000 | ||||||
Valley Proteins | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 349,300 | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | |||||||
Acquisition and integration costs | 3,300 | 4,900 | ||||||
Payments to Acquire Businesses, Gross | $ 1,177,000 | |||||||
Business Combination, Number of Facilities Acquired | facilities | 18 | |||||||
Net sales | 164,300 | 164,300 | ||||||
Net income attributable to Darling | 500 | $ 500 | ||||||
Valley Proteins | Collection Routes [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 292,100 | |||||||
Valley Proteins | Permits [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 97,100 | |||||||
Group Op de Beeck | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Acquisition, Price of Acquisition | $ 91,700 | |||||||
Business combination, consideration transferred | $ 71,300 | 75,500 | ||||||
Property, plant and equipment | 28,100 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 27,200 | |||||||
Goodwill | 29,600 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | $ (9,400) | |||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | |||||||
Business Combination, Purchase Price Adjustments | $ 4,200 |
Acquisitions (Assets Acquired a
Acquisitions (Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Jul. 02, 2022 | May 02, 2022 | Jan. 01, 2022 |
Business Acquisition [Line Items] | |||
Accounts receivable | $ 68,558 | ||
Inventories | 58,246 | ||
Other current assets | 13,825 | ||
Property, plant and equipment | 409,405 | ||
Identifiable intangible assets | 389,200 | ||
Goodwill | $ 1,555,814 | 349,262 | $ 1,219,116 |
Operating lease right-of-use assets | 16,380 | ||
Other assets | 14,164 | ||
Accounts payable | (47,497) | ||
Current portion of long-term debt | (2,043) | ||
Current operating lease liabilities | (4,779) | ||
Accrued expenses | (62,046) | ||
Long-term debt, net of current portion | (5,995) | ||
Long-term operating lease liabilities | (11,601) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | (19,436) | ||
Purchase price, net of cash acquired | $ 1,165,643 |
Acquisitions (Pro Forma Informa
Acquisitions (Pro Forma Information) (Details) - Valley Proteins - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Business Acquisition [Line Items] | ||||
Net sales | $ 1,722,803 | $ 1,394,771 | $ 3,306,982 | $ 2,637,589 |
Net income | $ 195,533 | $ 185,723 | $ 358,377 | $ 326,795 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jul. 02, 2022 | Jan. 01, 2022 |
Inventory Disclosure [Abstract] | ||
Finished product | $ 346,054 | $ 272,995 |
Work in process | 82,204 | 81,158 |
Raw Material | 52,587 | 48,186 |
Supplies and other | 97,557 | 55,126 |
Inventories | $ 578,402 | $ 457,465 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | Jan. 01, 2022 | |
Intangible Assets [Line Items] | |||||
Indefinite Lived Intangible Assets: | $ 51,085 | $ 51,085 | $ 53,133 | ||
Finite Lived Intangible Assets: | 1,285,787 | 1,285,787 | 905,138 | ||
Accumulated Amortization: | (576,793) | (576,793) | (560,470) | ||
Intangible Assets, Net (Excluding Goodwill) | 760,079 | 760,079 | 397,801 | ||
Change in gross intangible assets | 417,300 | ||||
Amortization of Intangible Assets | 21,000 | $ 17,000 | 37,500 | $ 34,000 | |
Trade Names [Member] | |||||
Intangible Assets [Line Items] | |||||
Indefinite Lived Intangible Assets: | 51,085 | 51,085 | 53,133 | ||
Trade Names [Member] | |||||
Intangible Assets [Line Items] | |||||
Finite Lived Intangible Assets: | 65,675 | 65,675 | 65,675 | ||
Accumulated Amortization: | (49,297) | (49,297) | (46,028) | ||
Collection Routes [Member] | |||||
Intangible Assets [Line Items] | |||||
Finite Lived Intangible Assets: | 632,804 | 632,804 | 337,399 | ||
Accumulated Amortization: | (170,914) | (170,914) | (169,984) | ||
Royalty, consulting land use and leasehold [Member] | |||||
Intangible Assets [Line Items] | |||||
Finite Lived Intangible Assets: | 24,683 | 24,683 | 25,899 | ||
Accumulated Amortization: | (7,924) | (7,924) | (7,997) | ||
Permits [Member] | |||||
Intangible Assets [Line Items] | |||||
Finite Lived Intangible Assets: | 561,930 | 561,930 | 475,520 | ||
Accumulated Amortization: | (348,158) | (348,158) | (336,020) | ||
Noncompete Agreements [Member] | |||||
Intangible Assets [Line Items] | |||||
Finite Lived Intangible Assets: | 695 | 695 | 645 | ||
Accumulated Amortization: | $ (500) | $ (500) | $ (441) |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 6 Months Ended |
Jul. 02, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill | $ 1,267,071 |
Accumulated impairment losses | (47,955) |
Goodwill | 1,219,116 |
Goodwill, Acquired During Period | 379,685 |
Foreign currency translation | (42,987) |
Goodwill | 1,603,769 |
Accumulated impairment losses | (47,955) |
Goodwill | 1,555,814 |
Feed Ingredients | |
Goodwill [Roll Forward] | |
Goodwill | 814,863 |
Accumulated impairment losses | (15,914) |
Goodwill | 798,949 |
Goodwill, Acquired During Period | 349,757 |
Foreign currency translation | (17,064) |
Goodwill | 1,147,556 |
Accumulated impairment losses | (15,914) |
Goodwill | 1,131,642 |
Fuel Ingredients | |
Goodwill [Roll Forward] | |
Goodwill | 119,342 |
Accumulated impairment losses | (31,580) |
Goodwill | 87,762 |
Goodwill, Acquired During Period | 29,928 |
Foreign currency translation | (8,837) |
Goodwill | 140,433 |
Accumulated impairment losses | (31,580) |
Goodwill | 108,853 |
Food Ingredients | |
Goodwill [Roll Forward] | |
Goodwill | 332,866 |
Accumulated impairment losses | (461) |
Goodwill | 332,405 |
Goodwill, Acquired During Period | 0 |
Foreign currency translation | (17,086) |
Goodwill | 315,780 |
Accumulated impairment losses | (461) |
Goodwill | $ 315,319 |
Accrued Expense (Details)
Accrued Expense (Details) - USD ($) $ in Thousands | Jul. 02, 2022 | Jan. 01, 2022 |
Payables and Accruals [Abstract] | ||
Compensation and benefits | $ 106,163 | $ 123,180 |
Accrued ad valorem and franchise taxes | 17,674 | 20,140 |
Accrued operating expenses | 100,627 | 81,200 |
Other accrued expense | 174,134 | 126,161 |
Accrued expenses | $ 398,598 | $ 350,681 |
Debt (Schedule of Long-term Deb
Debt (Schedule of Long-term Debt) (Details) $ in Thousands, $ in Thousands | Jul. 02, 2022 USD ($) | Jul. 02, 2022 CAD ($) | Jun. 09, 2022 | Jan. 01, 2022 USD ($) | Jan. 01, 2022 CAD ($) |
Debt Instrument [Line Items] | |||||
Debt and Lease Obligation | $ 2,913,829 | $ 1,463,381 | |||
Current portion of long-term debt | 32,695 | 24,407 | |||
Long-term debt, net of current portion | 2,881,134 | 1,438,974 | |||
Term A-1 Facility | Senior Secured Facilities | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | 399,191 | 0 | |||
Long-term Debt, Gross | 400,000 | 0 | |||
Unamortized Debt Issuance Expense | (809) | 0 | |||
Term A-2 Facility | Senior Secured Facilities | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | 498,833 | 0 | |||
Long-term Debt, Gross | 500,000 | 0 | |||
Unamortized Debt Issuance Expense | (1,167) | 0 | |||
Term Loan B Facility | Senior Secured Facilities | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | 198,382 | 198,072 | |||
Long-term Debt, Gross | 200,000 | 200,000 | |||
Unamortized Debt Issuance Expense | (1,618) | (1,928) | |||
Senior Notes | Senior Notes 6% Due 2030 | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | 740,603 | 0 | |||
Long-term Debt, Gross | 750,000 | 0 | |||
Unamortized Debt Issuance Expense | $ (9,397) | 0 | |||
Stated interest rate | 6% | 6% | 6% | ||
Debt instrument, interest rate, effective percentage | 6.20% | 6.20% | |||
Senior Notes | Senior Notes 5.25% Due 2027 | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 495,452 | 495,041 | |||
Long-term Debt, Gross | 500,000 | 500,000 | |||
Unamortized Debt Issuance Expense | $ (4,548) | (4,959) | |||
Stated interest rate | 5.25% | 5.25% | |||
Debt instrument, interest rate, effective percentage | 5.47% | 5.47% | |||
Senior Notes | Senior Notes 3.625% Due 2026 | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 533,364 | 577,949 | |||
Long-term Debt, Gross | 537,506 | 582,980 | |||
Unamortized Debt Issuance Expense | $ (4,142) | (5,031) | |||
Stated interest rate | 3.625% | 3.625% | |||
Debt instrument, interest rate, effective percentage | 3.83% | 3.83% | |||
Notes Payable, Other Payables [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 48,004 | $ 32,319 | |||
Revolving Credit Facility | Line of Credit [Member] | Senior Secured Facilities | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt | $ 0 | $ 160,000 |
Debt (Senior Secured Credit Fac
Debt (Senior Secured Credit Facilities) (Details) $ in Thousands, € in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2022 USD ($) | Jul. 02, 2022 USD ($) | Jul. 02, 2022 EUR (€) | Jan. 01, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||
Finance lease obligations | $ 6,100 | $ 6,100 | € 4.2 | |
Secured Debt [Member] | Term A-1 Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | U.S. dollar | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
Interest rate | 3.1253% | 3.1253% | 3.1253% | |
Secured Debt [Member] | Term A-2 Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | U.S. dollar | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
Interest rate | 2.8753% | 2.8753% | 2.8753% | |
Revolving Credit Facility | Senior Secured Facilities | ||||
Debt Instrument [Line Items] | ||||
Company availability under revolving loan facility | $ 1,446,000 | $ 1,446,000 | ||
Letter of Credit [Member] | Senior Secured Facilities | ||||
Debt Instrument [Line Items] | ||||
Line of credit outstanding | 3,900 | 3,900 | ||
Term Loan B Facility | Senior Secured Facilities | U.S. dollar | ||||
Debt Instrument [Line Items] | ||||
Line of credit outstanding | $ 200,000 | $ 200,000 | ||
Term Loan B Facility | Senior Secured Facilities | London Interbank Offered Rate (LIBOR) [Member] | U.S. dollar | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2% | |||
Interest rate | 3.12% | 3.12% | 3.12% | |
Foreign Line of Credit [Member] | Senior Secured Facilities | ||||
Debt Instrument [Line Items] | ||||
Line of credit outstanding | $ 11,200 | $ 11,200 | ||
Term A-2 Facility | Senior Secured Facilities | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | 500,000 | 500,000 | ||
Ancillary Facilities | Senior Secured Facilities | ||||
Debt Instrument [Line Items] | ||||
Line of credit outstanding | 50,100 | 50,100 | ||
Domestic Line of Credit | Senior Secured Facilities | ||||
Debt Instrument [Line Items] | ||||
Line of credit outstanding | $ 10,900 | $ 10,900 | ||
Senior Notes | Senior Notes 3.625% Due 2026 | ||||
Debt Instrument [Line Items] | ||||
Line of credit outstanding | € | € 515 | |||
Stated interest rate | 3.625% | 3.625% | 3.625% | |
Long-term Debt | $ 533,364 | $ 533,364 | $ 577,949 | |
Term Loan B Facility | Senior Secured Facilities | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 198,382 | 198,382 | 198,072 | |
Secured Debt [Member] | Senior Secured Facilities | ||||
Debt Instrument [Line Items] | ||||
Debt issuance | $ 1,200 | 1,200 | ||
Secured Debt [Member] | Secured Debt [Member] | Senior Secured Facilities | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
Secured Debt [Member] | Secured Debt [Member] | Senior Secured Facilities | Base Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.25% | |||
Secured Debt [Member] | Term Loan B Facility | Senior Secured Facilities | London Interbank Offered Rate (LIBOR) [Member] | U.S. dollar | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2% | |||
Secured Debt [Member] | Term Loan B Facility | Senior Secured Facilities | Base Rate [Member] | U.S. dollar | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1% | |||
Secured Debt [Member] | Term A-1 Facility | Senior Secured Facilities | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | U.S. dollar | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.50% | |||
Secured Debt [Member] | Term A-2 Facility | Senior Secured Facilities | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | U.S. dollar | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
Term A-1 Facility | Senior Secured Facilities | ||||
Debt Instrument [Line Items] | ||||
Line of credit outstanding | $ 400,000 | 400,000 | ||
Long-term Debt | 399,191 | 399,191 | 0 | |
Term A-1 Facility | Senior Secured Facilities | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | U.S. dollar | ||||
Debt Instrument [Line Items] | ||||
Line of credit outstanding | 400,000 | 400,000 | ||
Term A-2 Facility | Senior Secured Facilities | ||||
Debt Instrument [Line Items] | ||||
Line of credit outstanding | 500,000 | 500,000 | ||
Long-term Debt | 498,833 | 498,833 | 0 | |
Term A-2 Facility | Senior Secured Facilities | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | U.S. dollar | ||||
Debt Instrument [Line Items] | ||||
Line of credit outstanding | 500,000 | 500,000 | ||
Notes Payable, Other Payables [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 48,004 | 48,004 | $ 32,319 | |
Notes Payable, Other Payables [Member] | Bank Overdrafts [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 100 | 100 | ||
Notes Payable, Other Payables [Member] | Other Debt Obligations [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 34,200 | 34,200 | ||
Notes Payable, Other Payables [Member] | Foreign Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit outstanding | $ 13,700 | $ 13,700 |
Debt (6% Notes) (Details)
Debt (6% Notes) (Details) - Senior Notes 6% Due 2030 - Senior Notes - USD ($) $ in Millions | Jul. 02, 2022 | Jun. 09, 2022 |
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 750 | |
Stated interest rate | 6% | 6% |
Debt issuance | $ 9.5 |
Debt Debt (Senior Notes Due 202
Debt Debt (Senior Notes Due 2026) (Details) | Jul. 02, 2022 |
Senior Notes | Senior Notes 3.625% Due 2026 | |
Debt Instrument [Line Items] | |
Stated interest rate | 3.625% |
Debt Debt (Senior Notes Due 2_2
Debt Debt (Senior Notes Due 2027) (Details) | Jul. 02, 2022 |
Senior Notes | Senior Notes 5.25% Due 2027 | |
Debt Instrument [Line Items] | |
Stated interest rate | 5.25% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | Jul. 02, 2022 | Jul. 03, 2021 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 12.1 | $ 6.5 |
Income tax penalties and interest accrued | $ 1.2 | $ 0.7 |
Other Comprehensive Income (Sch
Other Comprehensive Income (Schedule of OCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 02, 2022 | Apr. 02, 2022 | Jul. 03, 2021 | Apr. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Before-Tax Amount: | ||||||
Amortization of prior service cost | $ 6 | $ 6 | $ 11 | $ 11 | ||
Amortization of actuarial loss | 570 | 1,053 | 1,140 | 2,105 | ||
Total defined benefit pension plans | 576 | 1,059 | 1,151 | 2,116 | ||
Foreign currency translation | (95,562) | 22,560 | (92,901) | (17,177) | ||
Other comprehensive income (loss) | (93,566) | 30,559 | (75,548) | (15,127) | ||
Tax (Expense) or Benefit: | ||||||
Amortization of prior service cost | (2) | (2) | (3) | (3) | ||
Amortization of actuarial loss | (146) | (265) | (291) | (529) | ||
Total defined benefit pension plans | (148) | (267) | (294) | (532) | ||
Foreign currency translation | 1,707 | (176) | 2,428 | 1,339 | ||
Other comprehensive income (loss) | 3,882 | (3,113) | (2,948) | 744 | ||
Net-of-Tax Amount: | ||||||
Amortization of prior service cost | 4 | 4 | 8 | 8 | ||
Amortization of actuarial loss | 424 | 788 | 849 | 1,576 | ||
Total defined benefit pension plans | 428 | 792 | 857 | 1,584 | ||
Foreign currency translation | (93,855) | $ 3,382 | 22,384 | $ (38,222) | (90,473) | (15,838) |
Total other comprehensive income/(loss), net of tax | (89,684) | 27,446 | (78,496) | (14,383) | ||
Soybean Meal | ||||||
Before-Tax Amount: | ||||||
Loss (gain) reclassified to net income | 124 | 32 | (317) | (248) | ||
Gain (loss) activity recognized in other comprehensive loss | (144) | (55) | (24) | (119) | ||
Total swap derivatives | (20) | (23) | (341) | (367) | ||
Tax (Expense) or Benefit: | ||||||
Loss (gain) reclassified to net income | (31) | (8) | 81 | 63 | ||
Gain (loss) activity recognized in other comprehensive loss | 37 | 14 | 6 | 30 | ||
Total swap derivatives | 6 | 6 | 87 | 93 | ||
Net-of-Tax Amount: | ||||||
Loss (gain) reclassified to net income | 93 | 24 | (236) | (185) | ||
Gain (loss) activity recognized in other comprehensive loss | (107) | (41) | (18) | (89) | ||
Total swap derivatives | (14) | (240) | (17) | (257) | (254) | (274) |
Corn Option | ||||||
Before-Tax Amount: | ||||||
Loss (gain) reclassified to net income | 7,238 | 6,743 | 11,345 | 10,663 | ||
Gain (loss) activity recognized in other comprehensive loss | 726 | (7,220) | (10,159) | (12,213) | ||
Total swap derivatives | 7,964 | (477) | 1,186 | (1,550) | ||
Tax (Expense) or Benefit: | ||||||
Loss (gain) reclassified to net income | (1,839) | (1,712) | (2,882) | (2,708) | ||
Gain (loss) activity recognized in other comprehensive loss | (184) | 1,833 | 2,581 | 3,102 | ||
Total swap derivatives | (2,023) | 121 | (301) | 394 | ||
Net-of-Tax Amount: | ||||||
Loss (gain) reclassified to net income | 5,399 | 5,031 | 8,463 | 7,955 | ||
Gain (loss) activity recognized in other comprehensive loss | 542 | (5,387) | (7,578) | (9,111) | ||
Total swap derivatives | 5,941 | (5,056) | (356) | (800) | 885 | (1,156) |
Heating Oil Swaps And Options | ||||||
Before-Tax Amount: | ||||||
Gain (loss) activity recognized in other comprehensive loss | 24,847 | (3,094) | 2,377 | 1,550 | ||
Total swap derivatives | 24,847 | (3,094) | 2,377 | 1,550 | ||
Tax (Expense) or Benefit: | ||||||
Gain (loss) activity recognized in other comprehensive loss | (6,312) | 786 | (604) | (394) | ||
Total swap derivatives | (6,312) | 786 | (604) | (394) | ||
Net-of-Tax Amount: | ||||||
Gain (loss) activity recognized in other comprehensive loss | 18,535 | (2,308) | 1,773 | 1,156 | ||
Total swap derivatives | 18,535 | (2,308) | 1,773 | 1,156 | ||
Foreign Exchange Contract | ||||||
Before-Tax Amount: | ||||||
Loss (gain) reclassified to net income | (6,280) | (838) | (7,351) | (614) | ||
Gain (loss) activity recognized in other comprehensive loss | (25,091) | 11,372 | 20,331 | 915 | ||
Total swap derivatives | (31,371) | 10,534 | 12,980 | 301 | ||
Tax (Expense) or Benefit: | ||||||
Loss (gain) reclassified to net income | 2,055 | 394 | 2,415 | 319 | ||
Gain (loss) activity recognized in other comprehensive loss | 8,597 | (3,977) | (6,679) | (475) | ||
Total swap derivatives | 10,652 | (3,583) | (4,264) | (156) | ||
Net-of-Tax Amount: | ||||||
Loss (gain) reclassified to net income | (4,225) | (444) | (4,936) | (295) | ||
Gain (loss) activity recognized in other comprehensive loss | (16,494) | 7,395 | 13,652 | 440 | ||
Total swap derivatives | $ (20,719) | $ 29,435 | $ 6,951 | $ (6,806) | $ 8,716 | $ 145 |
Other Comprehensive Income (Rec
Other Comprehensive Income (Reclassification out of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | $ 1,650,188 | $ 1,198,669 | $ 3,016,522 | $ 2,245,385 |
Cost of sales and operating expenses | 1,231,507 | 878,073 | 2,252,084 | 1,650,857 |
Income taxes | (47,333) | (54,979) | (73,416) | (83,687) |
Amortization of prior service cost | 6 | 6 | 11 | 11 |
Amortization of actuarial loss | 570 | 1,053 | 1,140 | 2,105 |
Net income attributable to Darling | 201,996 | 196,582 | 390,049 | 348,348 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income attributable to Darling | (1,695) | (5,403) | (4,148) | (9,059) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | (1,082) | (5,937) | (3,677) | (9,801) |
Income taxes | (185) | 1,326 | 386 | 2,326 |
Net income attributable to Darling | (1,267) | (4,611) | (3,291) | (7,475) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments [Member] | Foreign Exchange Contract | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | 6,280 | 838 | 7,351 | 614 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments [Member] | Corn Option | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales and operating expenses | (7,238) | (6,743) | (11,345) | (10,663) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments [Member] | Soybean Meal | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | (124) | (32) | 317 | 248 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign Currency Translation [Member] | ||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total before tax | (576) | (1,059) | (1,151) | (2,116) |
Income taxes | 148 | 267 | 294 | 532 |
Amortization of prior service cost | (6) | (6) | (11) | (11) |
Amortization of actuarial loss | (570) | (1,053) | (1,140) | (2,105) |
Net income attributable to Darling | $ (428) | $ (792) | $ (857) | $ (1,584) |
Other Comprehensive Income (S_2
Other Comprehensive Income (Schedule of AOCI) (Details) $ in Thousands | 6 Months Ended |
Jul. 02, 2022 USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Accumulated Other Comprehensive loss January 1, 2022, attributable to Darling, net of tax | $ (321,690) |
Other comprehensive loss before reclassifications | (82,644) |
Amounts reclassified from accumulated other comprehensive loss | 4,148 |
Net current-period other comprehensive income/(loss) | (78,496) |
Noncontrolling interest | 721 |
Accumulated Other Comprehensive loss July 2, 2022, attributable to Darling, net of tax | (400,907) |
Foreign Currency Translation [Member] | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Accumulated Other Comprehensive loss January 1, 2022, attributable to Darling, net of tax | (289,586) |
Other comprehensive loss before reclassifications | (90,473) |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Net current-period other comprehensive income/(loss) | (90,473) |
Noncontrolling interest | 721 |
Accumulated Other Comprehensive loss July 2, 2022, attributable to Darling, net of tax | (380,780) |
Derivative Instruments [Member] | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Accumulated Other Comprehensive loss January 1, 2022, attributable to Darling, net of tax | (6,456) |
Other comprehensive loss before reclassifications | 7,829 |
Amounts reclassified from accumulated other comprehensive loss | 3,291 |
Net current-period other comprehensive income/(loss) | 11,120 |
Noncontrolling interest | 0 |
Accumulated Other Comprehensive loss July 2, 2022, attributable to Darling, net of tax | 4,664 |
Defined Benefit Pension Plans [Member] | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Accumulated Other Comprehensive loss January 1, 2022, attributable to Darling, net of tax | (25,648) |
Other comprehensive loss before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive loss | 857 |
Net current-period other comprehensive income/(loss) | 857 |
Noncontrolling interest | 0 |
Accumulated Other Comprehensive loss July 2, 2022, attributable to Darling, net of tax | $ (24,791) |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 6 Months Ended | |||
Jan. 03, 2022 | Dec. 09, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Class of Stock [Line Items] | ||||
Grants in Period (in shares) | 82,791 | |||
Grants in period (in shares) | 115,615 | |||
Annual vesting after initial cliff | 33.33% | |||
Performance period two | 3 years | |||
Target percentage | 100% | |||
Increase (decrease) in target percentage | 225% | |||
Repurchase of common stock | $ 65,887,000 | $ 75,663,000 | ||
Remaining authorized repurchase amount | $ 434,100,000 | |||
Stock repurchase program, period | 2 years | |||
Stock repurchase program, authorized amount | $ 500,000,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2022 USD ($) plan | Jul. 03, 2021 USD ($) | Jul. 02, 2022 USD ($) plan | Jul. 03, 2021 USD ($) | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Amount Company expects to contribute to its pension plans | $ 3,700 | $ 3,700 | ||
Payment for pension benefits | $ 1,500 | $ 1,800 | ||
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 | 1 | 1 | ||
Number Of Multiemployer Plans, Withdrawal Obligation | plan | 3 | 3 | ||
Accrued liability representing the present value of scheduled withdrawal liability payments for under-funded multi-employer plan | $ 3,900 | $ 3,900 | ||
Maximum [Member] | ||||
Defined Benefit Plan, Additional Information [Abstract] | ||||
Multiemployer Plan, Contributions To Individual Plan, Percent | 5% | |||
Pension Plan, Defined Benefit [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | 798 | $ 796 | $ 1,626 | 1,581 |
Interest cost | 1,312 | 1,209 | 2,632 | 2,413 |
Expected return on plan assets | (2,156) | (2,328) | (4,321) | (4,649) |
Amortization of prior service cost | 6 | 6 | 11 | 11 |
Amortization of actuarial loss | 570 | 1,053 | 1,140 | 2,105 |
Net pension cost | $ 530 | $ 736 | $ 1,088 | $ 1,461 |
Derivatives (Forward Contracts
Derivatives (Forward Contracts Not Designated as Hedging Instruments) (Details) - Jul. 02, 2022 - 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$ 2599 | ||||||||
BRI/EUR 1 [Member] | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | € 468 | ||||||||
BRI/USD [Member] | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | R$ | 3,121,236 | ||||||||
BRI/USD [Member] | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | $ | $ 746,850 | ||||||||
EUR/USD [Member] | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | 38,298 | ||||||||
EUR/USD [Member] | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | $ | 41,403 | ||||||||
EUR/PLN [Member] | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | 26,873 | ||||||||
EUR/PLN [Member] | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | zł | zł 126,000 | ||||||||
EUR/JPN [Member] | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | 5,363 | ||||||||
EUR/JPN [Member] | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | ¥ | ¥ 750,820 | ||||||||
EUR/CNY [Member] | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | 15,349 | ||||||||
EUR/CNY [Member] | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | ¥ | ¥ 109,671 | ||||||||
EUR/AUD [Member] | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | 15,059 | $ 1,495 | |||||||
EUR/AUD [Member] | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | 986 | 22,350 | |||||||
EUR/GBP [Member] | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | 3,274 | ||||||||
EUR/GBP [Member] | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | £ | £ 2,826 | ||||||||
EUR/CAD | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | 37 | ||||||||
EUR/CAD | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | $ | $ 50 | ||||||||
PLN/EUR [Member] | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | zł | 40,387 | ||||||||
PLN/EUR [Member] | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | 8,544 | ||||||||
GBP/EUR | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | £ | £ 263 | ||||||||
GBP/EUR | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | 305 | ||||||||
JPN/USD [Member] | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | ¥ | 216,550 | ||||||||
JPN/USD [Member] | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | $ | 1,665 | ||||||||
USD/JPN | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | $ | 482 | ||||||||
USD/JPN | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | ¥ | ¥ 65,000 | ||||||||
USD/EUR | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | $ | 252,729 | ||||||||
USD/EUR | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | 240,000 | ||||||||
PLN/USD | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | zł | zł 2,495 | ||||||||
PLN/USD | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | $ | 559 | ||||||||
USD/AUD | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | $ | $ 190 | ||||||||
USD/AUD | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | $ | $ 132 | ||||||||
EUR/BRL | Short [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | € 500,000 | ||||||||
EUR/BRL | Long [Member] | |||||||||
Derivative [Line Items] | |||||||||
Derivative notional amount | R$ | R$ 2500000 |
Derivatives (Narrative) (Detail
Derivatives (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jul. 02, 2022 | Apr. 02, 2022 | Jul. 03, 2021 | Apr. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | Jan. 01, 2022 | |
Derivative [Line Items] | |||||||
Net income | $ 204,829,000 | $ 190,731,000 | $ 198,069,000 | $ 153,418,000 | $ 395,560,000 | $ 351,487,000 | |
Commodity Contract [Member] | |||||||
Derivative [Line Items] | |||||||
Forward purchase amount | 185,000,000 | 185,000,000 | |||||
Cash Flow Hedging [Member] | |||||||
Derivative [Line Items] | |||||||
Cash flow hedge gain (loss) to be reclassified within 12 months | 6,100,000 | ||||||
Net income | 0 | ||||||
Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Foreign Exchange Contract | |||||||
Derivative [Line Items] | |||||||
Asset Derivatives Fair Value | 10,500,000 | 10,500,000 | $ 600,000 | ||||
Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Corn Option | |||||||
Derivative [Line Items] | |||||||
Asset Derivatives Fair Value | (2,400,000) | (2,400,000) | (2,800,000) | ||||
Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Soybean Meal | |||||||
Derivative [Line Items] | |||||||
Asset Derivatives Fair Value | $ (100,000) | $ (100,000) | $ 100,000 |
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 | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Derivative [Line Items] | ||||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | $ 37,657 | $ 786 | $ 41,920 | $ 9,462 |
Foreign Exchange Contract | Foreign Currency Gain (Loss) [Member] | ||||
Derivative [Line Items] | ||||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | 35,025 | 2,581 | 42,492 | 7,970 |
Foreign Exchange Contract | Selling, General and Administrative Expenses [Member] | ||||
Derivative [Line Items] | ||||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | 3,937 | (3,262) | (2,587) | (731) |
Foreign Exchange Contract | Sales [Member] | ||||
Derivative [Line Items] | ||||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | 732 | (157) | 890 | 572 |
Foreign Exchange Contract | Cost of Sales [Member] | ||||
Derivative [Line Items] | ||||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | (503) | 18 | (758) | (426) |
Corn options and futures [Member] | Sales [Member] | ||||
Derivative [Line Items] | ||||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | 850 | (2,479) | (1,286) | (3,477) |
Corn options and futures [Member] | Cost of Sales [Member] | ||||
Derivative [Line Items] | ||||
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | $ (2,384) | $ 4,085 | $ 3,169 | $ 5,554 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | Jul. 02, 2022 | Jan. 01, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments | $ 22,257 | $ 5,031 |
Total Assets | 22,257 | 5,031 |
Derivative instruments | 12,136 | 7,173 |
Total Liabilities | 2,816,691 | 1,472,373 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
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) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments | 22,257 | 5,031 |
Total Assets | 22,257 | 5,031 |
Derivative instruments | 12,136 | 7,173 |
Total Liabilities | 2,816,691 | 1,472,373 |
Significant Unobservable Inputs (Level 3) | ||
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 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 199,000 | 200,000 |
Term Loan B Facility | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | 0 |
Term Loan B Facility | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 199,000 | 200,000 |
Term Loan B Facility | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | 0 |
Revolving Credit Facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 158,400 | |
Revolving Credit Facility | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | |
Revolving Credit Facility | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 158,400 | |
Revolving Credit Facility | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | |
Term A-2 Facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 485,000 | |
Term A-2 Facility | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | |
Term A-2 Facility | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 485,000 | |
Term A-2 Facility | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | |
Term A-1 Facility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 394,000 | |
Term A-1 Facility | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | |
Term A-1 Facility | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 394,000 | |
Term A-1 Facility | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | |
Senior Notes 5.25% Due 2027 | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 484,900 | 515,600 |
Senior Notes 5.25% Due 2027 | Senior Notes | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | 0 |
Senior Notes 5.25% Due 2027 | Senior Notes | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 484,900 | 515,600 |
Senior Notes 5.25% Due 2027 | Senior Notes | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | 0 |
Senior Notes 3.625% Due 2026 | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 494,505 | 591,200 |
Senior Notes 3.625% Due 2026 | Senior Notes | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | 0 |
Senior Notes 3.625% Due 2026 | Senior Notes | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 494,505 | 591,200 |
Senior Notes 3.625% Due 2026 | Senior Notes | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | $ 0 |
Senior Notes 6% Due 2030 | Senior Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 747,150 | |
Senior Notes 6% Due 2030 | Senior Notes | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 0 | |
Senior Notes 6% Due 2030 | Senior Notes | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | 747,150 | |
Senior Notes 6% Due 2030 | Senior Notes | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior Notes | $ 0 |
Restructuring and Asset Impai_2
Restructuring and Asset Impairment Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 02, 2022 | Jul. 03, 2021 | Apr. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and asset impairment charges | $ 8,557 | $ 0 | $ 800 | $ 8,557 | $ 778 |
Employee Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and asset impairment charges | $ 400 |
Contingencies (Details)
Contingencies (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |||||
Jun. 30, 2018 Party | Nov. 30, 2019 USD ($) | Mar. 31, 2016 Party mi | Jul. 02, 2022 USD ($) contaminate | Feb. 02, 2022 USD ($) | Jan. 01, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Loss Contingencies [Line Items] | |||||||
Area of land | mi | 8.3 | ||||||
Number of parties | Party | 100 | 100 | |||||
Loss related to litigation settlement | $ 600 | ||||||
Number of contaminants | contaminate | 8 | ||||||
Insurance Environmental and Litigation Matters [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Reserves for insurance, environmental and litigation contingencies | $ 107,500 | $ 78,400 | |||||
Insurance settlements receivable | 45,900 | $ 31,800 | |||||
Pending Litigation [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Number of parties | Party | 40 | ||||||
Plant, One [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Loss related to litigation settlement | 300 | ||||||
Plant, Two [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Loss related to litigation settlement | $ 300 | ||||||
Maryland Department of Environment | |||||||
Loss Contingencies [Line Items] | |||||||
Estimate of possible loss | $ 300 | ||||||
Lower Passaic River Area | |||||||
Loss Contingencies [Line Items] | |||||||
Estimate of possible loss | 1,380,000 | $ 441,000 | |||||
Lower Passaic River Area | Pending Litigation [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Estimate of possible loss | $ 165,000 |
Business Segments (Narrative) (
Business Segments (Narrative) (Details) | Jul. 02, 2022 segment |
Segment Reporting [Abstract] | |
Number of Business Segments | 3 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 02, 2022 | Jul. 03, 2021 | Apr. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | Jan. 01, 2022 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net sales | $ 1,650,188 | $ 1,198,669 | $ 3,016,522 | $ 2,245,385 | ||
Cost of sales and operating expenses | 1,231,507 | 878,073 | 2,252,084 | 1,650,857 | ||
Gain on sale of assets | 1,055 | 228 | 1,444 | 292 | ||
Selling, general and administrative expenses | 107,776 | 99,132 | 209,808 | 196,530 | ||
Restructuring and asset impairment charges | 8,557 | 0 | $ 800 | 8,557 | 778 | |
Acquisition and integration costs | 5,358 | 0 | 9,131 | 0 | ||
Depreciation and amortization | 93,113 | 79,222 | 172,359 | 157,756 | ||
Equity in net income of Diamond Green Diesel | 73,680 | 125,788 | 145,484 | 228,013 | ||
Operating income | 278,612 | 268,258 | 511,511 | 467,769 | ||
Equity in net income of other unconsolidated subsidiaries | 2,272 | 1,940 | 3,632 | 2,552 | ||
Total other expense | (28,722) | (17,150) | (46,167) | (35,147) | ||
Income before income taxes | 252,162 | 253,048 | 468,976 | 435,174 | ||
Segment Assets | 8,026,686 | 8,026,686 | $ 6,133,728 | |||
Feed Ingredients | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net sales | 1,170,347 | 771,932 | 2,049,785 | 1,423,376 | ||
Cost of sales and operating expenses | 864,306 | 556,424 | 1,509,829 | 1,031,005 | ||
Gross Margin | 306,041 | 215,508 | 539,956 | 392,371 | ||
Gain on sale of assets | (964) | (122) | (1,305) | (261) | ||
Selling, general and administrative expenses | 64,863 | 54,977 | 121,072 | 107,597 | ||
Restructuring and asset impairment charges | 8,557 | 8,557 | 0 | |||
Acquisition and integration costs | 0 | 0 | ||||
Depreciation and amortization | 68,938 | 53,971 | 123,288 | 108,580 | ||
Equity in net income of Diamond Green Diesel | 0 | 0 | 0 | 0 | ||
Operating income | 164,647 | 106,682 | 288,344 | 176,455 | ||
Equity in net income of other unconsolidated subsidiaries | 2,272 | 1,940 | 3,632 | 2,552 | ||
Segment income/(loss) | 166,919 | 108,622 | 291,976 | 179,007 | ||
Segment Assets | 4,036,660 | 4,036,660 | 2,714,528 | |||
Food Ingredients | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net sales | 369,181 | 317,031 | 723,995 | 615,096 | ||
Cost of sales and operating expenses | 280,964 | 238,539 | 551,276 | 464,952 | ||
Gross Margin | 88,217 | 78,492 | 172,719 | 150,144 | ||
Gain on sale of assets | (73) | (48) | (82) | 7 | ||
Selling, general and administrative expenses | 22,855 | 25,542 | 49,699 | 50,733 | ||
Restructuring and asset impairment charges | 0 | 0 | 0 | |||
Acquisition and integration costs | 0 | 0 | ||||
Depreciation and amortization | 14,449 | 15,850 | 29,899 | 30,733 | ||
Equity in net income of Diamond Green Diesel | 0 | 0 | 0 | 0 | ||
Operating income | 50,986 | 37,148 | 93,203 | 68,671 | ||
Equity in net income of other unconsolidated subsidiaries | 0 | 0 | 0 | 0 | ||
Segment income/(loss) | 50,986 | 37,148 | 93,203 | 68,671 | ||
Segment Assets | 1,189,677 | 1,189,677 | 1,205,217 | |||
Fuel Ingredients | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net sales | 110,660 | 109,706 | 242,742 | 206,913 | ||
Cost of sales and operating expenses | 86,237 | 83,110 | 190,979 | 154,900 | ||
Gross Margin | 24,423 | 26,596 | 51,763 | 52,013 | ||
Gain on sale of assets | (18) | (58) | (57) | (38) | ||
Selling, general and administrative expenses | 4,277 | 4,474 | 8,197 | 9,341 | ||
Restructuring and asset impairment charges | 0 | 0 | 778 | |||
Acquisition and integration costs | 0 | 0 | ||||
Depreciation and amortization | 6,936 | 6,698 | 13,610 | 12,853 | ||
Equity in net income of Diamond Green Diesel | 73,680 | 125,788 | 145,484 | 228,013 | ||
Operating income | 86,908 | 141,270 | 175,497 | 257,092 | ||
Equity in net income of other unconsolidated subsidiaries | 0 | 0 | 0 | 0 | ||
Segment income/(loss) | 86,908 | 141,270 | 175,497 | 257,092 | ||
Segment Assets | 2,144,238 | 2,144,238 | 1,658,892 | |||
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 on sale of assets | 0 | 0 | 0 | 0 | ||
Selling, general and administrative expenses | 15,781 | 14,139 | 30,840 | 28,859 | ||
Restructuring and asset impairment charges | 0 | 0 | 0 | |||
Acquisition and integration costs | 5,358 | 9,131 | ||||
Depreciation and amortization | 2,790 | 2,703 | 5,562 | 5,590 | ||
Equity in net income of Diamond Green Diesel | 0 | 0 | 0 | 0 | ||
Operating income | (23,929) | (16,842) | (45,533) | (34,449) | ||
Equity in net income of other unconsolidated subsidiaries | 0 | 0 | 0 | 0 | ||
Segment income/(loss) | (23,929) | (16,842) | (45,533) | (34,449) | ||
Segment Assets | 656,111 | 656,111 | 555,091 | |||
Total | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Net sales | 1,650,188 | 1,198,669 | 3,016,522 | 2,245,385 | ||
Cost of sales and operating expenses | 1,231,507 | 878,073 | 2,252,084 | 1,650,857 | ||
Gross Margin | 418,681 | 320,596 | 764,438 | 594,528 | ||
Gain on sale of assets | (1,055) | (228) | (1,444) | (292) | ||
Selling, general and administrative expenses | 107,776 | 99,132 | 209,808 | 196,530 | ||
Restructuring and asset impairment charges | 8,557 | 8,557 | 778 | |||
Acquisition and integration costs | 5,358 | 9,131 | ||||
Depreciation and amortization | 93,113 | 79,222 | 172,359 | 157,756 | ||
Equity in net income of Diamond Green Diesel | 73,680 | 125,788 | 145,484 | 228,013 | ||
Operating income | 278,612 | 268,258 | 511,511 | 467,769 | ||
Equity in net income of other unconsolidated subsidiaries | 2,272 | 1,940 | 3,632 | 2,552 | ||
Segment income/(loss) | 280,884 | $ 270,198 | 515,143 | $ 470,321 | ||
Segment Assets | $ 8,026,686 | $ 8,026,686 | $ 6,133,728 |
Revenue Disaggregation of Reven
Revenue Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,650,188 | $ 1,198,669 | $ 3,016,522 | $ 2,245,385 |
Feed Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,170,347 | 771,932 | 2,049,785 | 1,423,376 |
Food Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 369,181 | 317,031 | 723,995 | 615,096 |
Fuel Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 110,660 | 109,706 | 242,742 | 206,913 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,119,625 | 739,702 | 1,959,363 | 1,353,007 |
North America | Feed Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,028,244 | 660,513 | 1,784,082 | 1,209,528 |
North America | Food Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 91,381 | 79,165 | 175,281 | 140,105 |
North America | Fuel Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 24 | 0 | 3,374 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 429,772 | 379,733 | 858,327 | 726,598 |
Europe | Feed Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 132,247 | 104,397 | 246,710 | 202,042 |
Europe | Food Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 186,865 | 165,654 | 368,875 | 321,017 |
Europe | Fuel Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 110,660 | 109,682 | 242,742 | 203,539 |
China | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 71,258 | 55,838 | 144,201 | 115,708 |
China | Feed Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 6,932 | 3,746 | 13,568 | 5,684 |
China | Food Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 64,326 | 52,092 | 130,633 | 110,024 |
China | Fuel Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 12,868 | 5,590 | 21,364 | 16,044 |
South America | Feed Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
South America | Food Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 12,868 | 5,590 | 21,364 | 16,044 |
South America | Fuel Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 16,665 | 17,806 | 33,267 | 34,028 |
Other | Feed Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,924 | 3,276 | 5,425 | 6,122 |
Other | Food Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 13,741 | 14,530 | 27,842 | 27,906 |
Other | Fuel Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Fats | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 552,092 | 333,670 | 972,750 | 604,109 |
Fats | Feed Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 498,914 | 292,559 | 867,308 | 521,565 |
Fats | Food Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 53,178 | 41,111 | 105,442 | 82,544 |
Fats | Fuel Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Used cooking oil | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 152,737 | 86,437 | 247,633 | 137,466 |
Used cooking oil | Feed Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 152,737 | 86,437 | 247,633 | 137,466 |
Used cooking oil | Food Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Used cooking oil | Fuel Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Proteins | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 351,125 | 258,391 | 621,312 | 513,898 |
Proteins | Feed Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 351,125 | 258,391 | 621,312 | 513,898 |
Proteins | Food Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Proteins | Fuel Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Bakery | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 89,593 | 79,202 | 168,104 | 142,307 |
Bakery | Feed Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 89,593 | 79,202 | 168,104 | 142,307 |
Bakery | Food Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Bakery | Fuel Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other rendering | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 64,123 | 45,452 | 121,667 | 88,409 |
Other rendering | Feed Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 64,123 | 45,452 | 121,667 | 88,409 |
Other rendering | Food Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Other rendering | Fuel Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Food ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 280,435 | 239,622 | 550,951 | 469,164 |
Food ingredients | Feed Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Food ingredients | Food Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 280,435 | 239,622 | 550,951 | 469,164 |
Food ingredients | Fuel Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Bioenergy | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 110,660 | 109,682 | 242,742 | 203,539 |
Bioenergy | Feed Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Bioenergy | Food Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Bioenergy | Fuel Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 110,660 | 109,682 | 242,742 | 203,539 |
Biofuels | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 24 | 0 | 3,374 | |
Biofuels | Feed Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | |
Biofuels | Food Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | |
Biofuels | Fuel Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 24 | 0 | 3,374 | |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 49,423 | 46,189 | 91,363 | 83,119 |
Other | Feed Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 13,855 | 9,891 | 23,761 | 19,731 |
Other | Food Ingredients | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 35,568 | 36,298 | 67,602 | 63,388 |
Other | Fuel Ingredients | ||||
Disaggregation of Revenue [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 |
Jul. 02, 2022 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized | $ 73.4 |
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 | Jul. 02, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Expected timing of satisfaction | 5 years |
Remaining performance obligation | $ 1,170 |
Related Party Transactions (Det
Related Party Transactions (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Apr. 01, 2021 USD ($) agreement | Mar. 30, 2019 | Nov. 08, 2021 USD ($) | Jul. 02, 2022 USD ($) | Jul. 03, 2021 USD ($) | Jul. 02, 2022 USD ($) | Jul. 03, 2021 USD ($) | Jan. 01, 2022 USD ($) | Feb. 29, 2020 USD ($) agreement | May 01, 2019 USD ($) | |
IMTT Terminaling Agreements | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number Of Terminaling Agreements | agreement | 2 | |||||||||
Related Party, Unrecorded Unconditional Guarantee | $ 50,000,000 | |||||||||
GTL Terminaling Agreements | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number Of Terminaling Agreements | agreement | 2 | |||||||||
Related Party, Unrecorded Unconditional Guarantee | $ 160,000,000 | |||||||||
Related Party, Initial Agreement Term | 20 years | |||||||||
Diamond Green Diesel Holdings LLC Joint Venture [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Revenue from Related Parties | $ 295,700,000 | $ 109,800,000 | $ 510,100,000 | $ 198,800,000 | ||||||
Accounts Receivable, Related Parties, Current | 37,700,000 | 37,700,000 | $ 43,800,000 | |||||||
Related Party Sales Eliminated | 38,500,000 | 9,800,000 | ||||||||
Deferred Revenue, Additions | 10,100,000 | $ 2,400,000 | ||||||||
Revolving Loan Agreement [Member] | Revolving Credit Facility | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Revolving Loan Agreement, Maximum Borrowing Capacity | $ 50,000,000 | |||||||||
Revolving Loan Agreement, Fair Value of Amount Outstanding | 25,000,000 | 25,000,000 | ||||||||
Line Of Credit Facility, Amount Borrowed | $ 50,000,000 | |||||||||
Interest Expense, Long-term Debt | $ 200,000 | $ 400,000 | ||||||||
Revolving Loan Agreement [Member] | Lender One [Member] | Revolving Credit Facility | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Revolving Loan Agreement, Maximum Borrowing Capacity | $ 25,000,000 | |||||||||
Line Of Credit Facility, Amount Borrowed | $ 25,000,000 | |||||||||
LIBO Rate [Member] | Revolving Loan Agreement [Member] | Revolving Credit Facility | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Basis spread on variable rate | 2.50% |
Nonmonetary Transactions (Detai
Nonmonetary Transactions (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 02, 2022 | Jul. 03, 2021 | |
Nonmonetary Transactions [Abstract] | ||
Change in accrued capital expenditures | $ (2,947) | $ 1,101 |
Interest, net of capitalized interest | 33,791 | 29,928 |
Income taxes, net of refunds | 72,377 | 25,270 |
Operating lease right of use asset obtained in exchange for new lease liabilities | 41,554 | 44,218 |
Debt issued for assets | $ 1,005 | $ 60 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands, R$ in Billions | 1 Months Ended | 6 Months Ended | |||||
Aug. 05, 2022 USD ($) | Aug. 01, 2022 USD ($) | Aug. 01, 2022 BRL (R$) | Jul. 29, 2022 USD ($) | Aug. 09, 2022 USD ($) | Jul. 02, 2022 USD ($) | Jul. 03, 2021 USD ($) | |
Subsequent Event [Line Items] | |||||||
Payments for Repurchase of Common Stock | $ 65,887 | $ 75,663 | |||||
Distributions of earnings from Diamond Green Diesel and other unconsolidated subsidiaries | $ 1,631 | $ 2,497 | |||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Payments for Repurchase of Common Stock | $ 29,300 | ||||||
Subsequent Event | Diamond Green Diesel Holdings LLC Joint Venture [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Distributions of earnings from Diamond Green Diesel and other unconsolidated subsidiaries | $ 90,500 | ||||||
Subsequent Event | Senior Secured Facilities | Revolving Credit Facility | |||||||
Subsequent Event [Line Items] | |||||||
Line of credit outstanding | $ 515,000 | ||||||
Subsequent Event | Revolving Loan Agreement [Member] | Revolving Credit Facility | |||||||
Subsequent Event [Line Items] | |||||||
Repayments of Lines of Credit | $ 50,000 | ||||||
Subsequent Event | Revolving Loan Agreement [Member] | Revolving Credit Facility | Lender One [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Repayments of Lines of Credit | $ 25,000 | ||||||
FASA Group | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Payments to Acquire Businesses, Gross | $ 562,600 | R$ 2.9 |