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Summary of Significant Accounting Policies
 6 Months Ended
Jul. 02, 2011
Notes to Financial Statements [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 subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.


(b)
Fiscal Periods


The Company has a 52/53 week fiscal year ending on the Saturday nearest December 31.  Fiscal periods for the consolidated financial statements included herein are as of July 2, 2011, and include the 13 and 26 weeks ended July 2, 2011, and the 13 and 26 weeks ended July 3, 2010.




(c)
Reclassifications


Certain prior year immaterial amounts have been reclassified to conform to the current year presentation.


(d)
Earnings Per Share


Basic income per common share is computed by dividing net income 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 by the weighted average number of common shares including non-vested and restricted shares outstanding during the period increased by dilutive common equivalent shares determined using the treasury stock method. As a result of the use of weighted average number of shares the full effect of the issuance of 24,193,548 shares as discussed in Note 9 are not in the below earnings per share calculation in fiscal 2011.


 
Net Income per Common Share (in thousands, except per share data)
 
Three Months Ended
 
 
 
July 2, 2011
 
 
 
 
 
July 3, 2010
 
 
 
Income
 
Shares
 
Per Share
 
Income
 
Shares
 
Per Share
Basic:
 
 
 
 
 
 
 
 
 
 
 
Net Income
$
52,227


 
117,064


 
$
0.45


 
$
11,371


 
82,444


 
$
0.14


Diluted:
 


 
 


 
 


 
 


 
 


 
 


Effect of dilutive securities:
 


 
 


 
 


 
 


 
 


 
 


Add: Option shares in the money and dilutive effect of non-vested stock
 


 
973


 
 


 
 


 
784


 
 


Less: Pro forma treasury shares
 


 
(365
)
 
 


 
 


 
(401
)
 
 


Diluted:
 


 
 


 
 


 
 


 
 


 
 


Net income
$
52,227


 
117,672


 
$
0.44


 
$
11,371


 
82,827


 
$
0.14




 
Six Months Ended
 
 
 
July 2, 2011
 
 
 
 
 
July 3, 2010
 
 
 
Income
 
Shares
 
Per Share
 
Income
 
Shares
 
Per Share
Basic:
 
 
 
 
 
 
 
 
 
 
 
Net Income
$
98,789


 
112,795


 
$
0.88


 
$
22,849


 
82,366


 
$
0.28


Diluted:
 


 
 


 
 


 
 


 
 


 
 


Effect of dilutive securities:
 


 
 


 
 


 
 


 
 


 
 


Add: Option shares in the money and dilutive effect of non-vested stock
 


 
986


 
 


 
 


 
785


 
 


Less: Pro forma treasury shares
 


 
(381
)
 
 


 
 


 
(403
)
 
 


Diluted:
 


 
 


 
 


 
 


 
 


 
 


Net income
$
98,789


 
113,400


 
$
0.87


 
$
22,849


 
82,748


 
$
0.28






For the three months ended July 2, 2011 and July 3, 2010, respectively, 72,157 and 101,722 outstanding stock options were excluded from diluted income per common share as the effect was antidilutive. For the three months ended July 2, 2011 and July 3, 2010, respectively, 326,526 and zero shares of non-vested stock were excluded from diluted income per common share as the effect was antidilutive.


For the six months ended July 2, 2011 and July 3, 2010, respectively, 50,387 and 73,964 outstanding stock options were excluded from diluted income per common share as the effect was antidilutive. For the six months ended July 2, 2011 and July 3, 2010, respectively, 350,125 and zero shares of non-vested stock were excluded from diluted income per common share as the effect was antidilutive.