Guarantor Financial Information (Tables)

3 Months Ended

Apr. 04, 2015

Guarantor Financial Information [Abstract]

Guarantor Financial Information Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

As of April 4, 2015

(in thousands)

	Issuer		Guarantors		Non-guarantors		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	2,372	$	4,838	$	104,921	$	—		$	112,131
Restricted cash	103		—		250		—			353
Accounts receivable	27,773		635,317		270,699		(556,821		)	376,968
Inventories	11,822		110,901		275,456		—			398,179
Income taxes refundable	21,857		—		3,674		—			25,531
Prepaid expenses	12,111		5,233		37,504		—			54,848
Other current assets	1,617		25		34,113		(5,113		)	30,642
Deferred income taxes	42,321		—		2,818		—			45,139
Total current assets	119,976		756,314		729,435		(561,934		)	1,043,791
Investment in subsidiaries	3,891,931		1,126,082		836,638		(5,854,651		)	—
Property, plant and equipment, net	210,924		453,591		843,110		—			1,507,625
Intangible assets, net	20,871		356,216		492,713		—			869,800
Goodwill	21,860		549,950		683,295		—			1,255,105
Investment in unconsolidated subsidiaries	—		—		198,639		—			198,639
Other assets	54,247		524,869		323,099		(835,192		)	67,023
Deferred taxes	—		—		15,832		—			15,832
	$	4,319,809	$	3,767,022	$	4,122,761	$	(7,251,777	)	$	4,957,815
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	$	17,267	$	35	$	69,006	$	(5,113	)	$	81,195
Accounts payable	593,373		16,248		97,126		(544,894		)	161,853
Income taxes payable	115		373		5,650		—			6,138
Accrued expenses	62,859		30,026		143,886		(11,926		)	224,845
Deferred income taxes	—		—		1,540		—			1,540
Total current liabilities	$	673,614	$	46,682	$	317,208	$	(561,933	)	$	475,571
Long-term debt, net of current portion	1,309,306		—		1,535,421		(835,192		)	2,009,535
Other noncurrent liabilities	56,171		2,046		54,137		—			112,354
Deferred income taxes	180,479		—		221,935		—			402,414
Total liabilities	2,219,570		48,728		2,128,701		(1,397,125		)	2,999,874
Total stockholders’ equity	2,100,239		3,718,294		1,994,060		(5,854,652		)	1,957,941
	$	4,319,809	$	3,767,022	$	4,122,761	$	(7,251,777	)	$	4,957,815

Condensed Consolidating Balance Sheet

As of January 3, 2015

(in thousands)

	Issuer		Guarantors		Non-guarantors		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	10,447	$	14,460	$	83,877	$	—		$	108,784
Restricted cash	103		—		240		—			343
Accounts receivable	30,237		604,486		320,040		(544,984		)	409,779
Inventories	19,762		93,253		288,598		—			401,613
Income taxes refundable	18,647		—		3,493		—			22,140
Prepaid expenses	11,513		1,792		31,324		—			44,629
Other current assets	1,894		14		206,338		(186,922		)	21,324
Deferred income taxes	42,497		—		2,504		—			45,001
Total current assets	135,100		714,005		936,414		(731,906		)	1,053,613
Investment in subsidiaries	3,874,466		1,096,541		837,605		(5,808,612		)	—
Property, plant and equipment, net	205,895		445,301		922,920		—			1,574,116
Intangible assets, net	21,903		366,315		544,195		—			932,413
Goodwill	21,860		549,950		748,609		—			1,320,419
Investment in unconsolidated subsidiary	—		—		202,712		—			202,712
Other assets	56,404		575,656		538,460		(1,099,511		)	71,009
Deferred income taxes	—		—		16,431		—			16,431
	$	4,315,628	$	3,747,768	$	4,747,346	$	(7,640,029	)	$	5,170,713
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	$	16,017	$	55	$	225,252	$	(186,923	)	$	54,401
Accounts payable	540,784		11,349		127,994		(511,609		)	168,518
Income taxes payable	—		—		4,363		—			4,363
Accrued expenses	88,840		34,842		165,812		(33,375		)	256,119
Deferred income taxes	—		—		642		—			642
Total current liabilities	645,641		46,246		524,063		(731,907		)	484,043
Long-term debt, net of current portion	1,334,556		—		1,862,994		(1,099,511		)	2,098,039
Other noncurrent liabilities	56,849		1,979		55,872		—			114,700
Deferred income taxes	176,745		—		246,052		—			422,797
Total liabilities	2,213,791		48,225		2,688,981		(1,831,418		)	3,119,579
Total stockholders’ equity	2,101,837		3,699,543		2,058,365		(5,808,611		)	2,051,134
	$	4,315,628	$	3,747,768	$	4,747,346	$	(7,640,029	)	$	5,170,713

Guarantor Financial Information Condensed Consolidating Statements Of Operations

Condensed Consolidating Statements of Operations

For the three months ended April 4, 2015

(in thousands)

	Issuer			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	125,794		$	358,707		$	448,843		$	(58,650	)	$	874,694
Cost and expenses:
Cost of sales and operating expenses	103,616			284,503			355,052			(58,650		)	684,521
Selling, general and administrative expenses	33,130			14,868			38,633			—			86,631
Acquisition and integration costs	1,973			—			3,346			—			5,319
Depreciation and amortization	8,171			23,599			34,628			—			66,398
Total costs and expenses	146,890			322,970			431,659			(58,650		)	842,869
Operating income	(21,096		)	35,737			17,184			—			31,825
Interest expense	(15,160		)	4,848			(12,797		)	—			(23,109		)
Foreign currency gains/(losses)	(11		)	(304		)	(2,145		)	—			(2,460		)
Other, net	(1,181		)	211			461			—			(509		)
Equity in net income/(loss) of unconsolidated subsidiaries	—			—			(1,808		)	—			(1,808		)
Earnings in investments in subsidiaries	17,449			—			—			(17,449		)	—
Income/(loss) before taxes	(19,999		)	40,492			895			(17,449		)	3,939
Income taxes (benefit)	(20,108		)	21,742			481			—			2,115
Net (income)/loss attributable to noncontrolling interests	—			—			(1,715		)	—			(1,715		)
Net income/(loss) attributable to Darling	$	109		$	18,750		$	(1,301	)	$	(17,449	)	$	109

Condensed Consolidating Statements of Operations

For the three months ended March 29, 2014

(in thousands)

	Issuer			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	154,437		$	402,988		$	481,409		$	(92,542	)	$	946,292
Cost and expenses:
Cost of sales and operating expenses	118,176			326,889			422,683			(92,542		)	775,206
Selling, general and administrative expenses	37,552			13,876			38,605			—			90,033
Acquisition and integration costs	14,381			—			1,567			—			15,948
Depreciation and amortization	7,518			19,511			38,640			—			65,669
Total costs and expenses	177,627			360,276			501,495			(92,542		)	946,856
Operating income	(23,190		)	42,712			(20,086		)	—			(564		)
Interest expense	(50,301		)	5,225			(13,781		)	—			(58,857		)
Foreign currency gains/(losses)	(12,228		)	(92		)	(1,494		)	—			(13,814		)
Other, net	(1,453		)	(797		)	1,112			—			(1,138		)
Equity in net income of unconsolidated subsidiaries	—			—			5,077			—			5,077
Earnings in investments in subsidiaries	11,361			—			—			(11,361		)	—
Income/(loss) before taxes	(75,811		)	47,048			(29,172		)	(11,361		)	(69,296		)
Income taxes (benefit)	(23,008		)	12,418			(7,700		)	—			(18,290		)
Net (income)/loss attributable to noncontrolling interests	—			—			(1,797		)	—			(1,797		)
Net income/(loss) attributable to Darling	$	(52,803	)	$	34,630		$	(23,269	)	$	(11,361	)	$	(52,803	)

Condensed

Guarantor Financial Information Condensed Consolidating Statements of Comprehensive Income (Loss)

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the three months ended April 4, 2015

(in thousands)

	Issuer		Guarantors		Non-guarantors			Eliminations			Consolidated
Net income/(loss)	$	1,824	$	18,750	$	(1,301	)	$	(17,449	)	$	1,824
Other comprehensive income/(loss), net of tax:
Foreign currency translation	—		—		(98,642		)	—			(98,642		)
Pension adjustments	729		—		40			—			769
Natural gas swap derivative adjustments	—		—		—			—			—
Corn option derivative adjustments	38		—		—			—			38
Total other comprehensive income, net of tax	767		—		(98,602		)	—			(97,835		)
Total comprehensive income/(loss)	2,591		18,750		(99,903		)	(17,449		)	(96,011		)
Total comprehensive income attributable to noncontrolling interest	—		—		7,042			—			7,042
Total comprehensive income/(loss) attributable to Darling	$	2,591	$	18,750	$	(106,945	)	$	(17,449	)	$	(103,053	)

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the three months ended March 29, 2014

(in thousands)

	Issuer			Guarantors		Non-guarantors			Eliminations			Consolidated
Net income/(loss)	$	(51,006	)	$	34,630	$	(23,269	)	$	(11,361	)	$	(51,006	)
Other comprehensive income/(loss), net of tax:
Foreign currency translation	—			—		20,615			—			20,615
Pension adjustments	320			—		—			—			320
Natural gas swap derivative adjustments	(113		)	—		—			—			(113		)
Corn option derivative adjustments	(1,598		)	—		—			—			(1,598		)
Total other comprehensive income, net of tax	(1,391		)	—		20,615			—			19,224
Total comprehensive income/(loss)	(52,397		)	34,630		(2,654		)	(11,361		)	(31,782		)
Total comprehensive income attributable to noncontrolling interest	—			—		868			—			868
Total comprehensive income/(loss) attributable to Darling	$	(52,397	)	$	34,630	$	(3,522	)	$	(11,361	)	$	(32,650	)

Guarantor Financial Information Condensed Consolidating Statements Of Cash Flows

Condensed Consolidating Statements of Cash Flows

For the three months ended April 4, 2015

(in thousands)

	Issuer			Guarantors			Non-guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income/(loss)	$	1,824		$	18,750		$	(1,301	)	$	(17,449	)	$	1,824
Earnings in investments in subsidiaries	(17,449		)	—			—			17,449			—
Other operating cash flows	48,023			(30,966		)	40,359			—			57,416
Net cash provided by operating activities	32,398			(12,216		)	39,058			—			59,240
Cash flows from investing activities:
Capital expenditures	(12,243		)	(19,393		)	(19,202		)	—			(50,838		)
Acquisitions	—			—			—			—			—
Investment in subsidiaries and affiliates	(20		)	(29,541		)	29,541			20			—
Note receivable from affiliates	—			51,019			(51,019		)	—			—
Gross proceeds from sale of property, plant and equipment and other assets	142			259			133			—			534
Proceeds from insurance settlements	71			270			—			—			341
Payments related to routes and other intangibles	—			—			(753		)	—			(753		)
Net cash used in investing activities	(12,050		)	2,614			(41,300		)	20			(50,716		)
Cash flows from financing activities:
Proceeds for long-term debt	—			—			5,943			—			5,943
Payments on long-term debt	(4,000		)	(20		)	(9,582		)	—			(13,602		)
Borrowings from revolving facilities	5,000			—			22,428			—			27,428
Payments on revolving facilities	(25,000		)	—			(12,943		)	—			(37,943		)
Net cash overdraft financing	—			—			31,162			—			31,162
Deferred loan costs	—			—			—			—			—
Issuances of common stock	81			—			—			—			81
Contributions from parent	—			—			20			(20		)	—
Minimum withholding taxes paid on stock awards	(4,469		)	—			—			—			(4,469		)
Excess tax benefits from stock-based compensation	(35		)	—			—			—			(35		)
Distributions to noncontrolling interests	—			—			(38		)	—			(38		)
Net cash used in financing activities	(28,423		)	(20		)	36,990			(20		)	8,527
Effect of exchange rate changes on cash	—			—			(13,704		)	—			(13,704		)
Net increase/(decrease) in cash and cash equivalents	(8,075		)	(9,622		)	21,044			—			3,347
Cash and cash equivalents at beginning of year	10,447			14,460			83,877			—			108,784
Cash and cash equivalents at end of year	$	2,372		$	4,838		$	104,921		$	—		$	112,131

Condensed Consolidating Statements of Cash Flows

For the three months ended March 29, 2014

(in thousands)

	Issuer			Guarantors			Non-guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income/(loss)	$	(51,006	)	$	34,630		$	(23,269	)	$	(11,361	)	$	(51,006	)
Earnings in investments in subsidiaries	(11,361		)	—			—			11,361			—
Other operating cash flows	35,205			(11,156		)	(3,547		)	—			20,502
Net cash provided by operating activities	(27,162		)	23,474			(26,816		)	—			(30,504		)
Cash flows from investing activities:
Capital expenditures	(14,754		)	(16,332		)	(20,274		)	—			(51,360		)
Acquisitions	—			(645		)	(2,081,045		)	—			(2,081,690		)
Investment in subsidiaries and affiliates	(1,483,007		)	(2,217,686		)	(7,688,504		)	11,389,197			—
Note receivable from affiliates	—			(204,074		)	204,074			—			—
Gross proceeds from sale of property, plant and equipment and other assets	298			857			169			—			1,324
Proceeds from insurance settlements	—			—			—			—			—
Payments related to routes and other intangibles	(6,812		)	—			—			—			(6,812		)
Net cash used in investing activities	(1,504,275		)	(2,437,880		)	(9,585,580		)	11,389,197			(2,138,538		)
Cash flows from financing activities:
Proceeds for long-term debt	1,100,000			—			697,509			—			1,797,509
Payments on long-term debt	(250,000		)	(22		)	(13,949		)	—			(263,971		)
Borrowings from revolving credit facility	122,445			—			100,865			—			223,310
Payments on revolving credit facility	(207,445		)	—			(66,029		)	—			(273,474		)
Deferred loan costs	(35,292		)	—			(3,494		)	—			(38,786		)
Issuances of common stock	2,504			—			—			—			2,504
Contributions from parent	—			2,421,762			8,967,435			(11,389,197		)	—
Minimum withholding taxes paid on stock awards	(4,709		)	—			—			—			(4,709		)
Excess tax benefits from stock-based compensation	960			—			—			—			960
Net cash used in financing activities	728,463			2,421,740			9,682,337			(11,389,197		)	1,443,343
Effect of exchange rate changes on cash	—			—			(1,736		)	—			(1,736		)
Net increase/(decrease) in cash and cash equivalents	(802,974		)	7,334			68,205			—			(727,435		)
Cash and cash equivalents at beginning of year	857,267			6,117			7,473			—			870,857
Cash and cash equivalents at end of year	$	54,293		$	13,451		$	75,678		$	—		$	143,422