Guarantor Financial Information (Tables)

6 Months Ended

Jul. 02, 2016

Guarantor Financial Information [Abstract]

Guarantor Financial Information Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

As of July 2, 2016

(in thousands)

	Parent			Guarantors		Non-guarantors		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	1,229		$	600	$	155,986	$	—		$	157,815
Restricted cash	102			—		210		—			312
Accounts receivable	126,999			96,382		351,682		(175,186		)	399,877
Inventories	16,250			99,575		248,537		—			364,362
Income taxes refundable	10,007			—		2,832		—			12,839
Prepaid expenses	14,148			2,675		26,308		—			43,131
Other current assets	7,554			244		23,643		(5,619		)	25,822
Total current assets	176,289			199,476		809,198		(180,805		)	1,004,158
Investment in subsidiaries	4,169,845			1,141,644		837,603		(6,149,092		)	—
Property, plant and equipment, net	220,126			487,904		820,357		—			1,528,387
Intangible assets, net	15,751			308,891		444,785		—			769,427
Goodwill	21,860			549,690		686,930		—			1,258,480
Investment in unconsolidated subsidiaries	2,222			—		241,579		—			243,801
Other assets	32,068			499,298		323,245		(816,019		)	38,592
Deferred taxes	—			—		17,049		—			17,049
	$	4,638,161		$	3,186,903	$	4,180,746	$	(7,145,916	)	$	4,859,894
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	$	5,718		$	—	$	30,743	$	(5,619	)	$	30,842
Accounts payable	42,317			173,115		121,370		(159,499		)	177,303
Income taxes payable	(384		)	374		9,128		—			9,118
Accrued expenses	83,167			27,830		154,123		(15,685		)	249,435
Total current liabilities	130,818			201,319		315,364		(180,803		)	466,698
Long-term debt, net of current portion	1,214,335			—		1,476,179		(816,022		)	1,874,492
Other noncurrent liabilities	56,972			—		36,720		—			93,692
Deferred income taxes	150,086			—		216,850		—			366,936
Total liabilities	1,552,211			201,319		2,045,113		(996,825		)	2,801,818
Total stockholders’ equity	3,085,950			2,985,584		2,135,633		(6,149,091		)	2,058,076
	$	4,638,161		$	3,186,903	$	4,180,746	$	(7,145,916	)	$	4,859,894

Condensed Consolidating Balance Sheet

As of January 2, 2016

(in thousands)

	Parent			Guarantors		Non-guarantors		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	3,443		$	3,993	$	149,448	$	—		$	156,884
Restricted cash	102			—		229		—			331
Accounts receivable	184,472			81,644		310,932		(205,656		)	371,392
Inventories	13,564			89,078		241,941		—			344,583
Income taxes refundable	7,695			—		4,268		—			11,963
Prepaid expenses	13,322			2,262		20,591		—			36,175
Other current assets	5,273			24		22,852		(17,689		)	10,460
Total current assets	227,871			177,001		750,261		(223,345		)	931,788
Investment in subsidiaries	4,072,855			1,141,644		837,604		(6,052,103		)	—
Property, plant and equipment, net	224,208			477,446		806,513		—			1,508,167
Intangible assets, net	17,794			326,231		438,324		—			782,349
Goodwill	21,860			549,690		661,552		—			1,233,102
Investment in unconsolidated subsidiary	—			—		247,238		—			247,238
Other assets	36,488			499,764		314,893		(809,522		)	41,623
Deferred income taxes	—			—		16,352		—			16,352
	$	4,601,076		$	3,171,776	$	4,072,737	$	(7,084,970	)	$	4,760,619
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	$	20,328		$	—	$	42,527	$	(17,689	)	$	45,166
Accounts payable	6,981			210,926		122,136		(190,045		)	149,998
Income taxes payable	(383		)	373		6,689		—			6,679
Accrued expenses	82,854			29,037		143,547		(15,613		)	239,825
Total current liabilities	109,780			240,336		314,899		(223,347		)	441,668
Long-term debt, net of current portion	1,234,002			—		1,461,371		(809,522		)	1,885,851
Other noncurrent liabilities	57,578			1,999		38,232		—			97,809
Deferred income taxes	147,416			—		213,265		—			360,681
Total liabilities	1,548,776			242,335		2,027,767		(1,032,869		)	2,786,009
Total stockholders’ equity	3,052,300			2,929,441		2,044,970		(6,052,101		)	1,974,610
	$	4,601,076		$	3,171,776	$	4,072,737	$	(7,084,970	)	$	4,760,619

Guarantor Financial Information Condensed Consolidating Statements Of Operations

Condensed Consolidating Statements of Operations

For the three months ended July 2, 2016

(in thousands)

	Parent			Guarantors		Non-guarantors			Eliminations			Consolidated
Net sales	$	129,377		$	342,879	$	452,833		$	(47,748	)	$	877,341
Cost and expenses:
Cost of sales and operating expenses	99,788			272,746		352,329			(47,748		)	677,115
Selling, general and administrative expenses	34,569			11,461		30,128			—			76,158
Acquisition and integration costs	—			—		70			—			70
Depreciation and amortization	9,412			24,102		36,017			—			69,531
Total costs and expenses	143,769			308,309		418,544			(47,748		)	822,874
Operating income/(loss)	(14,392		)	34,570		34,289			—			54,467
Interest expense	(15,338		)	4,577		(13,219		)	—			(23,980		)
Foreign currency gains/(losses)	74			23		(89		)	—			8
Other expense, net	(3,665		)	127		1,165			—			(2,373		)
Equity in net income/(loss) of unconsolidated subsidiaries	(355		)	—		14,207			—			13,852
Earnings in investments in subsidiaries	68,020			—		—			(68,020		)	—
Income/(loss) before taxes	34,344			39,297		36,353			(68,020		)	41,974
Income taxes (benefit)	2,345			1,920		3,718			—			7,983
Net income attributable to noncontrolling interests	—			—		(1,992		)	—			(1,992		)
Net income/(loss) attributable to Darling	$	31,999		$	37,377	$	30,643		$	(68,020	)	$	31,999

Condensed Consolidating Statements of Operations

For the six months ended July 2, 2016

(in thousands)

	Parent			Guarantors		Non-guarantors			Eliminations			Consolidated
Net sales	$	237,748		$	646,644	$	863,870		$	(91,280	)	$	1,656,982
Cost and expenses:
Cost of sales and operating expenses	189,271			509,082		668,935			(91,280		)	1,276,008
Selling, general and administrative expenses	70,462			24,597		62,568			—			157,627
Acquisition and integration costs	—			—		401			—			401
Depreciation and amortization	20,837			50,910		70,040			—			141,787
Total costs and expenses	280,570			584,589		801,944			(91,280		)	1,575,823
Operating income/(loss)	(42,822		)	62,055		61,926			—			81,159
Interest expense	(30,860		)	8,954		(25,975		)	—			(47,881		)
Foreign currency gains/(losses)	43			188		(2,826		)	—			(2,595		)
Other expense, net	(6,990		)	122		3,190			—			(3,678		)
Equity in net income/(loss) of unconsolidated subsidiaries	(452		)	—		19,947			—			19,495
Earnings in investments in subsidiaries	96,991			—		—			(96,991		)	—
Income/(loss) before taxes	15,910			71,319		56,262			(96,991		)	46,500
Income taxes (benefit)	(17,168		)	15,101		11,913			—			9,846
Net income attributable to noncontrolling interests	—			—		(3,576		)	—			(3,576		)
Net income/(loss) attributable to Darling	$	33,078		$	56,218	$	40,773		$	(96,991	)	$	33,078

Condensed Consolidating Statements of Operations

For the three months ended July 4, 2015

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	121,270		$	345,030		$	437,136		$	(44,121	)	$	859,315
Cost and expenses:
Cost of sales and operating expenses	89,321			278,873			344,203			(44,121		)	668,276
Selling, general and administrative expenses	35,124			13,169			36,001			—			84,294
Acquisition and integration costs	603			—			605			—			1,208
Depreciation and amortization	7,983			23,833			34,429			—			66,245
Total costs and expenses	133,031			315,875			415,238			(44,121		)	820,023
Operating income/(loss)	(11,761		)	29,155			21,898			—			39,292
Interest expense	(15,069		)	4,851			(24,067		)	—			(34,285		)
Foreign currency gains/(losses)	2			(93		)	1,713			—			1,622
Other expense, net	(1,224		)	(582		)	607			—			(1,199		)
Equity in net income of unconsolidated subsidiaries	—			—			4,172			—			4,172
Earnings in investments in subsidiaries	18,444			—			—			(18,444		)	—
Income/(loss) before taxes	(9,608		)	33,331			4,323			(18,444		)	9,602
Income taxes (benefit)	(12,688		)	15,221			2,132			—			4,665
Net income attributable to noncontrolling interests	—			—			(1,857		)	—			(1,857		)
Net income/(loss) attributable to Darling	$	3,080		$	18,110		$	334		$	(18,444	)	$	3,080

Condensed Consolidating Statements of Operations

For the six months ended July 4, 2015

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	247,064		$	703,737		$	885,979		$	(102,771	)	$	1,734,009
Cost and expenses:
Cost of sales and operating expenses	192,937			563,376			699,255			(102,771		)	1,352,797
Selling, general and administrative expenses	68,254			28,037			74,634			—			170,925
Acquisition costs	2,576			—			3,951			—			6,527
Depreciation and amortization	16,154			47,432			69,057			—			132,643
Total costs and expenses	279,921			638,845			846,897			(102,771		)	1,662,892
Operating income/(loss)	(32,857		)	64,892			39,082			—			71,117
Interest expense	(30,229		)	9,699			(36,864		)	—			(57,394		)
Foreign currency gains/(losses)	(9		)	(397		)	(432		)	—			(838		)
Other expense, net	(2,405		)	(371		)	1,068			—			(1,708		)
Equity in net income of unconsolidated subsidiaries	—			—			2,364			—			2,364
Earnings in investments in subsidiaries	35,893			—			—			(35,893		)	—
Income/(loss) before taxes	(29,607		)	73,823			5,218			(35,893		)	13,541
Income taxes	(32,796		)	36,963			2,613			—			6,780
Net income attributable to noncontrolling interests	—			—			(3,572		)	—			(3,572		)
Net income/(loss)	$	3,189		$	36,860		$	(967	)	$	(35,893	)	$	3,189

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

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the three months ended July 2, 2016

(in thousands)

	Parent		Guarantors			Non-guarantors			Eliminations			Consolidated
Net income/(loss)	$	33,991	$	37,377		$	30,643		$	(68,020	)	$	33,991
Other comprehensive income/(loss), net of tax:
Foreign currency translation	—		—			(8,008		)	—			(8,008		)
Pension adjustments	658		(75		)	68			—			651
Corn option derivative adjustments	1,227		—			—			—			1,227
Total other comprehensive income/(loss), net of tax	1,885		(75		)	(7,940		)	—			(6,130		)
Total comprehensive income/(loss)	35,876		37,302			22,703			(68,020		)	27,861
Total comprehensive income attributable to noncontrolling interest	—		—			1,725			—			1,725
Total comprehensive income/(loss) attributable to Darling	$	35,876	$	37,302		$	20,978		$	(68,020	)	$	26,136

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the six months ended July 2, 2016

(in thousands)

	Parent		Guarantors			Non-guarantors		Eliminations			Consolidated
Net income/(loss)	$	36,654	$	56,218		$	40,773	$	(96,991	)	$	36,654
Other comprehensive income/ (loss), net of tax:
Foreign currency translation	—		—			49,523		—			49,523
Pension adjustments	1,316		(75		)	136		—			1,377
Corn option derivative adjustments	521		—			—		—			521
Total other comprehensive income, net of tax	1,837		(75		)	49,659		—			51,421
Total comprehensive income/(loss)	38,491		56,143			90,432		(96,991		)	88,075
Total comprehensive income attributable to noncontrolling interest	—		—			1,305		—			1,305
Total comprehensive income/(loss) attributable to Darling	$	38,491	$	56,143		$	89,127	$	(96,991	)	$	86,770

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the three months ended July 4, 2015

(in thousands)

	Parent			Guarantors		Non-guarantors		Eliminations			Consolidated
Net income/(loss)	$	4,937		$	18,110	$	334	$	(18,444	)	$	4,937
Other comprehensive income/(loss), net of tax:
Foreign currency translation	—			—		7,443		—			7,443
Pension adjustments	729			—		49		—			778
Corn option derivative adjustments	(1,325		)	—		—		—			(1,325		)
Total other comprehensive income/(loss), net of tax	(596		)	—		7,492		—			6,896
Total comprehensive income/(loss)	4,341			18,110		7,826		(18,444		)	11,833
Total comprehensive income attributable to noncontrolling interest	—			—		848		—			848
Total comprehensive income/(loss) attributable to Darling	$	4,341		$	18,110	$	6,978	$	(18,444	)	$	10,985

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the six months ended July 4, 2015

(in thousands)

	Parent			Guarantors		Non-guarantors			Eliminations			Consolidated
Net income/(loss)	$	6,761		$	36,860	$	(967	)	$	(35,893	)	$	6,761
Other comprehensive income/(loss), net of tax:
Foreign currency translation	—			—		(85,872		)	—			(85,872		)
Pension adjustments	1,458			—		89			—			1,547
Corn option derivative adjustments	(1,287		)	—		—			—			(1,287		)
Total other comprehensive income, net of tax	171			—		(85,783		)	—			(85,612		)
Total comprehensive income/(loss)	6,932			36,860		(86,750		)	(35,893		)	(78,851		)
Total comprehensive income attributable to noncontrolling interest	—			—		7,890			—			7,890
Total comprehensive income/(loss) attributable to Darling	$	6,932		$	36,860	$	(94,640	)	$	(35,893	)	$	(86,741	)

Guarantor Financial Information Condensed Consolidating Statements Of Cash Flows

Condensed Consolidating Statements of Cash Flows

For the six months ended July 2, 2016

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income/(loss)	$	36,654		$	56,218		$	40,773		$	(96,991	)	$	36,654
Earnings in investments in subsidiaries	(96,991		)	—			—			96,991			—
Other operating cash flows	121,503			(16,111		)	26,187			—			131,579
Net cash provided by operating activities	61,166			40,107			66,960			—			168,233
Cash flows from investing activities:
Capital expenditures	(21,542		)	(43,883		)	(43,981		)	—			(109,406		)
Acquisitions	—			—			(8,511		)	—			(8,511		)
Gross proceeds from sale of property, plant and equipment and other assets	1,009			383			1,012			—			2,404
Proceeds from insurance settlements	—			—			1,537			—			1,537
Net cash used in investing activities	(20,533		)	(43,500		)	(49,943		)	—			(113,976		)
Cash flows from financing activities:
Proceeds for long-term debt	—			—			17,277			—			17,277
Payments on long-term debt	(35,890		)	—			(23,365		)	—			(59,255		)
Borrowings from revolving facilities	41,000			—			—			—			41,000
Payments on revolving facilities	(41,000		)	—			(6,207		)	—			(47,207		)
Issuances of common stock	143			—			—			—			143
Repurchase of treasury stock	(5,000		)	—			—			—			(5,000		)
Minimum withholding taxes paid on stock awards	(1,687		)	—			(125		)	—			(1,812		)
Excess tax benefits from stock-based compensation	(413		)	—			—			—			(413		)
Net cash used in financing activities	(42,847		)	—			(12,420		)	—			(55,267		)
Effect of exchange rate changes on cash	—			—			1,941			—			1,941
Net increase/(decrease) in cash and cash equivalents	(2,214		)	(3,393		)	6,538			—			931
Cash and cash equivalents at beginning of year	3,443			3,993			149,448			—			156,884
Cash and cash equivalents at end of year	$	1,229		$	600		$	155,986		$	—		$	157,815

Condensed Consolidating Statements of Cash Flows

For the six months ended July 4, 2015

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income/(loss)	$	6,761		$	36,860		$	(967	)	$	(35,893	)	$	6,761
Earnings in investments in subsidiaries	(35,893		)	—			—			35,893			—
Other operating cash flows	100,687			(32,359		)	112,461			—			180,789
Net cash provided by operating activities	71,555			4,501			111,494			—			187,550
Cash flows from investing activities:
Capital expenditures	(21,187		)	(38,383		)	(39,152		)	—			(98,722		)
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	705			545			234			—			1,484
Proceeds from insurance settlements	71			270			—			—			341
Payments related to routes and other intangibles	—			—			(2,242		)	—			(2,242		)
Net cash used in investing activities	(20,431		)	(16,090		)	(62,638		)	20			(99,139		)
Cash flows from financing activities:
Proceeds for long-term debt	—			—			579,974			—			579,974
Payments on long-term debt	(8,067		)	(41		)	(575,628		)	—			(583,736		)
Borrowings from revolving credit facility	8,000			—			33,244			—			41,244
Payments on revolving credit facility	(52,000		)	—			(31,506		)	—			(83,506		)
Net cash overdraft financing	—			—			(880		)	—			(880		)
Deferred loan costs	(1,525		)	—			(10,104		)	—			(11,629		)
Issuances of common stock	171			—			—			—			171
Contributions from parent	—			—			20			(20		)	—
Minimum withholding taxes paid on stock awards	(4,775		)	—			—			—			(4,775		)
Excess tax benefits from stock-based compensation	(12		)	—			—			—			(12		)
Distributions to noncontolling interests	—			—			(1,866		)	—			(1,866		)
Net cash used in financing activities	(58,208		)	(41		)	(6,746		)	(20		)	(65,015		)
Effect of exchange rate changes on cash	—			—			(6,160		)	—			(6,160		)
Net increase/(decrease) in cash and cash equivalents	(7,084		)	(11,630		)	35,950			—			17,236
Cash and cash equivalents at beginning of year	10,447			14,460			83,877			—			108,784
Cash and cash equivalents at end of year	$	3,363		$	2,830		$	119,827		$	—		$	126,020