Business Segments

3 Months Ended

Apr. 04, 2015

Segment Reporting [Abstract]

Business Segments

Business Segments

Effective December 29, 2013, the Company's business operations were reorganized into three industry segments: Feed Ingredients, Food Ingredients and Fuel Ingredients, in order to better align its business with the underlying markets and customers that the Company serves. All historical periods have been recast 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 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 used cooking oil, trap grease and food residuals collection businesses, the Rothsay ingredients business, and the ingredients and specialty products businesses conducted by Darling Ingredients International under the Sonac name (proteins, fats, and plasma products) and (ii) the Company's bakery residuals business. Feed Ingredients operations process animal by-products and used cooking oil into fats, protein and hides.

Food Ingredients

Food Ingredients consists principally of (i) the gelatin and collagen hydrolysates 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 biofuel business conducted under the Dar Pro® and Rothsay names (ii) the bioenergy business conducted by Darling Ingredients International under the Ecoson and Rendac names and (iii) the Company's investment in the DGD Joint Venture.

Business Segments (in thousands):

	Feed Ingredients		Food Ingredients		Fuel Ingredients			Corporate			Total
Three Months Ended April 4, 2015
Net Sales	$	547,498	$	270,157	$	57,039		$	—		$	874,694
Cost of sales and operating expenses	424,006		216,637		43,874			4			684,521
Gross Margin	123,492		53,520		13,165			(4		)	190,173
Selling, general and administrative expense	48,023		25,476		4,040			9,092			86,631
Acquisition costs	—		—		—			5,319			5,319
Depreciation and amortization	40,055		17,197		6,631			2,515			66,398
Segment operating income/ (loss)	35,414		10,847		2,494			(16,930		)	31,825
Equity in net income of unconsolidated subsidiaries	417		—		(2,225		)	—			(1,808		)
Segment income	35,831		10,847		269			(16,930		)	30,017
Total other expense											(26,078		)
Income before income taxes											$	3,939
Segment assets at April 4, 2015	$	2,585,660	$	1,592,387	$	634,331		$	145,437		$	4,957,815

	Feed Ingredients		Food Ingredients			Fuel Ingredients		Corporate			Total
Three Months Ended March 29, 2014
Net Sales	$	586,107	$	293,462		$	66,723	$	—		$	946,292
Cost of sales and operating expenses	458,450		264,101			52,669		(14		)	775,206
Gross Margin	127,657		29,361			14,054		14			171,086
Selling, general and administrative expense	51,565		24,062			4,332		10,074			90,033
Acquisition costs	—		—			—		15,948			15,948
Depreciation and amortization	38,559		17,441			7,377		2,292			65,669
Segment operating income/ (loss)	37,533		(12,142		)	2,345		(28,300		)	(564		)
Equity in net income of unconsolidated subsidiaries	403		—			4,674		—			5,077
Segment income	37,936		(12,142		)	7,019		(28,300		)	4,513
Total other expense											(73,809		)
Income before income taxes											$	(69,296	)
Segment assets at January 3, 2015	$	2,667,369	$	1,734,387		$	693,921	$	75,036		$	5,170,713