Business Segments

3 Months Ended

Apr. 02, 2016

Segment Reporting [Abstract]

Business Segments

Business Segments

The Company sells its products domestically and internationally and operates within three industry segments: Feed Ingredients, Food Ingredients and Fuel Ingredients. 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 2, 2016
Net Sales	$	476,171	$	247,897	$	55,573	$	—		$	779,641
Cost of sales and operating expenses	372,657		185,554		40,682		—			598,893
Gross Margin	103,514		62,343		14,891		—			180,748
Selling, general and administrative expense	45,251		23,759		1,850		10,609			81,469
Acquisition and integration costs	—		—		—		331			331
Depreciation and amortization	44,377		16,704		6,919		4,256			72,256
Segment operating income/(loss)	13,886		21,880		6,122		(15,196		)	26,692
Equity in net income of unconsolidated subsidiaries	102		—		5,541		—			5,643
Segment income/(loss)	13,988		21,880		11,663		(15,196		)	32,335
Total other expense										(27,809		)
Income before income taxes										$	4,526
Segment assets at April 2, 2016	$	2,504,494	$	1,489,073	$	656,834	$	221,415		$	4,871,816

	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 and integration 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/(loss) of unconsolidated subsidiaries	417		—		(2,225		)	—			(1,808		)
Segment income/(loss)	35,831		10,847		269			(16,930		)	30,017
Total other expense											(26,078		)
Income before income taxes											$	3,939
Segment assets at January 2, 2016	$	2,438,869	$	1,448,014	$	631,968		$	241,768		$	4,760,619