Business Segments

6 Months Ended

Jul. 02, 2011

Notes to Financial Statements [Abstract]

Business Segments

Business Segments

Effective January 2, 2011, as a result of the acquisition of Griffin, the Company's business operations were reorganized into two new segments, Rendering and Bakery, in order to better align its business with the underlying markets and customers that the Company serves. All historical periods have been restated for the changes to the segment reporting structure. The Company sells its products domestically and internationally. The measure of segment profit (loss) includes all revenues, operating expenses (excluding certain amortization of intangibles), and selling, general and administrative expenses incurred at all operating locations and excludes general corporate expenses.

Included in corporate activities are general corporate expenses and the amortization of intangibles. Assets of corporate activities include cash, unallocated prepaid expenses, deferred tax assets, prepaid pension, and miscellaneous other assets.

Rendering

Rendering operations process poultry, animal by-products and used cooking oil into fats (primarily BFT, PG and YG), protein (primarily MBM and PM (feed grade and pet food grade)) and hides. Fat was approximately $245.5 million and $92.6 million of net sales for the three months ended July 2, 2011 and July 3, 2010, respectively and approximately $481.7 million and $175.7 million of net sales for the six months ended July 2, 2011 and July 3, 2010, respectively. Protein was approximately $120.4 million and $55.4 million of net sales for the three months ended July 2, 2011 and July 3, 2010, respectively and $230.5 million and $116.8 million of net sales for the six months ended July 2, 2011 and July 3, 2010, respectively. Rendering also provides grease trap servicing. Included in Rendering is the National Service Center (“NSC”). The NSC schedules services such as fat and bone and used cooking oil collection and trap cleaning for contracted customers using the Company's resources or third party providers.

Bakery

Bakery products are collected from large commercial bakeries that produce a variety of products, including cookies, crackers, cereal, bread, dough, potato chips, pretzels, sweet goods and biscuits, among others. The Company processes the raw materials into BBP, including Cookie Meal®, an animal feed ingredient primarily used in poultry rations.

Business Segment Net Sales (in thousands):

	Three Months Ended				Six Months Ended
	July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Rendering	$	392,675	$	166,210	$	764,245	$	328,992
Bakery	77,935		—		146,263		—
Total	$	470,610	$	166,210	$	910,508	$	328,992

Business Segment Profit/(Loss) (in thousands):

	Three Months Ended						Six Months Ended
	July 2, 2011			July 3, 2010			July 2, 2011			July 3, 2010
Rendering	$	93,398		$	28,647		$	182,354		$	57,950
Bakery	18,541			—			33,509			—
Corporate Activities	(51,967		)	(16,387		)	(95,101		)	(33,302		)
Interest expense	(7,745		)	(889		)	(21,973		)	(1,799		)
Net Income	$	52,227		$	11,371		$	98,789		$	22,849

 Business Segment Assets (in thousands):

	July 2, 2011		January 1, 2011
Rendering	$	1,117,568	$	1,102,719
Bakery	169,205		166,658
Corporate Activities	117,049		112,881
Total	$	1,403,822	$	1,382,258