Business Segments

12 Months Ended

Dec. 31, 2011

Segment Reporting [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)) and hides. Fat was approximately $950.8 million, $399.1 million and $283.7 million of net sales for the year ended December 31, 2011, January 1, 2011 and January 2, 2010, respectively. Protein was approximately $447.7 million, $243.5 million and $244.7 million of net sales for the year ended December 31, 2011, January 1, 2011 and January 2, 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 Revenues (in thousands):

	Year Ended
	December 31, 2011		January 1, 2011		January 2, 2010
Rendering	$	1,501,280	$	714,685	$	597,806
Bakery	295,969		10,224		—
Total	$	1,797,249	$	724,909	$	597,806

Included in Corporate Activities are general corporate expenses and the depreciation of fixed assets related to "Fresh Start Reporting."

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

	Year Ended
	December 31, 2011			January 1, 2011			January 2, 2010
Rendering	$	329,791		$	132,502		$	109,697
Bakery	62,259			1,425			—
Corporate Activities	(185,469		)	(80,947		)	(64,802		)
Interest expense	(37,163		)	(8,737		)	(3,105		)
Net income	$	169,418		$	44,243		$	41,790

Although intangible assets are allocated to operating segments, the amortization related to the adoption of "Fresh Start Reporting" in 1993 is not considered in the measure of operating segment profit/(loss) and is included in Corporate Activities.

Business Segment Assets (in thousands):

	December 31, 2011		January 1, 2011
Rendering	$	1,092,988	$	1,102,719
Bakery	165,885		166,658
Corporate Activities	158,157		112,881
Total	$	1,417,030	$	1,382,258

Business Segment Property, Plant and Equipment (in thousands):

	December 31, 2011		January 1, 2011		January 2, 2010
Depreciation and amortization:
Rendering	$	66,412	$	27,959	$	21,932
Bakery	8,647		426		—
Corporate Activities	3,850		3,523		3,294
Total	$	78,909	$	31,908	$	25,226
Capital expenditures:
Rendering	$	51,888	$	21,431	$	19,666
Bakery	6,247		165		—
Corporate Activities	2,018		3,124		3,972
Total (a)	$	60,153	$	24,720	$	23,638

(a) Excludes the capital assets acquired as part of the acquisition of assets related to the Griffin Transaction and Nebraska Transaction in fiscal 2010 of approximately$243.7 million, the Sanimax Transaction and Boca Transaction in fiscal 2009 of approximately $8.0 million.

The Company has no material foreign operations, but exports a portion of its products to customers in various foreign countries.

Geographic Area Net Trade Revenues (in thousands):

	December 31, 2011		January 1, 2011		January 2, 2010
Domestic	$	1,526,351	$	653,909	$	526,975
Foreign	270,898		71,000		70,831
Total	$	1,797,249	$	724,909	$	597,806

The Company attributes revenues from external customers to individual foreign countries based on the destination of the Company's shipments.  For fiscal 2011, 2010 and 2009, no individual foreign country comprised more than 5% of the Company’s consolidated revenue.