(Mark One) |
/X/ ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES |
EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2016 |
OR |
/ / TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES |
EXCHANGE ACT OF 1934 |
For the transition period from _______ to _______ |
Delaware | 36-2495346 | |
(State or other jurisdiction | (I.R.S. Employer | |
of incorporation or organization) | Identification Number) | |
251 O'Connor Ridge Blvd., Suite 300 | ||
Irving, Texas | 75038 | |
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Name of Exchange on Which Registered | |
Common Stock $0.01 par value per share | New York Stock Exchange (“NYSE”) |
Large accelerated filer | X | Accelerated filer | Non-accelerated filer | Smaller reporting company | ||||||
(Do not check if a smaller reporting company) |
Page No. | ||
Fiscal 2016 | Fiscal 2015 | Fiscal 2014 | |||||||||||||||
Net sales: | |||||||||||||||||
Feed Ingredients | $ | 2,089,145 | 61.5 | % | $ | 2,074,333 | 61.1 | % | $ | 2,421,462 | 61.2 | % | |||||
Food Ingredients | 1,061,912 | 31.2 | 1,094,918 | 32.2 | 1,248,352 | 31.6 | |||||||||||
Fuel Ingredients | 247,058 | 7.3 | 228,195 | 6.7 | 286,629 | 7.2 | |||||||||||
Total | $ | 3,398,115 | 100.0 | % | $ | 3,397,446 | 100.0 | % | $ | 3,956,443 | 100.0 | % |
• | Sonac C3 processes animal by-products collected primarily from slaughterhouses, into proteins and fats for applications used in the pet food, feed, technical, biofuels and oleo-chemical markets. Oleo-chemical producers use fats to produce specialty ingredients used in paint, rubber, paper, concrete, plastics and a variety of other consumer and industrial products. |
• | Sonac Bone processes porcine bones into fat, bone protein, glue, bone ash and bone chips for the feed, pet food, food and gelatin industries. |
• | Sonac Blood processes bovine, porcine and ovine blood by separating blood into plasma and hemoglobin and produces specialized end products for application in the feed and pet food markets. Sonac Blood’s end products include plasma, fibrimex, globin and hemin. |
• | Our hides operations process hides and skins from beef and hog processors, respectively, into outputs used in commercial applications, such as the leather industry. We sell treated hides and skins to external customers, the majority of which are tanneries. BestHides sources, sorts and processes hides from slaughterhouses, renderers and traders in Western Europe, and has a leading position in the premium South German hides market. Fresh and salted hides and fresh skins are sold to tanneries, automotive companies, leather processors and to the shoe and furniture industries in Italy, Germany and China. |
• | Our fertilizer operations utilize finished products from our animal by-products division to manufacture organic fertilizers from ingredients approved by the U.S. Department of Agriculture (“USDA”) to be used in organic farming which contain no waste by-products (i.e., sludge or sewage waste). The Company's North American fertilizer products are predominantly sold to golf courses, sports facilities, organic farms and landscaping companies. |
• | CTH Casings harvests, sorts and sells hog and sheep casings for worldwide food markets, particularly sausage manufacturers, and harvests, processes and sells hog and beef bowel package items for global pharmaceutical, food and feed market segments. CTH holds a leading position in the highly fragmented global casings market. |
• | CTH Meat By-Products harvests, purchases and processes hog, sheep and beef meat by-products for customers in the global food and European pet food industries. In the meat by-products market, CTH is a major player with established sales networks in Europe and Asia. |
• | Sonac Heparin extracts crude heparin from hydrolyzed mucosa for application in the pharmaceutical industry. |
• | Sonac Fat primarily melts, refines and packages animal fat into food grade fat for the food markets. |
• | The Food and Drug Administration (“FDA”), which regulates pharmaceutical products and food and feed safety. The FDA has promulgated rules prohibiting the use of mammalian proteins, with some exceptions, in feeds for cattle, sheep and other ruminant animals (21 C.F.R. 589.2000, referred to herein as the “BSE Feed Rule”) to prevent further spread of bovine spongiform encephalopathy, which is commonly referred to as "mad cow" disease (“BSE”). With respect to BSE in the United States, on October 26, 2009, the FDA began enforcing new regulations intended to further reduce the risk of spreading BSE (the “Enhanced BSE Rule”). These new regulations included amending the BSE Feed Rule to prohibit the use of tallow having more than 0.15% insoluble impurities in feed for cattle or other ruminant animals. In addition, the Enhanced BSE Rule prohibits the use of brain and spinal cord material from cattle aged 30 months and older or the carcasses of such cattle, if the brain and spinal cord are not removed, in the feed or food for all animals. Management believes we are in compliance with the provisions of these rules. In addition, the FDA is responsible for implementing and enforcing the Food Safety Modernization Act, which was signed into law on January 4, 2011, and gave FDA a series of powers intended to better protect human and animal health by adopting a modern, preventive and risk-based approach to food safety regulation. The FDA finalized major rules affecting the production, importation and transport of human and animal food. See Item 1A “Risk Factors - Our business may be affected by the impact of BSE and other food safety issues,” for more information regarding certain FDA rules that affect our business, including changes to the BSE Feed Rule and rules and regulations under the Food Safety Modernization Act. |
• | The United States Department of Agriculture (“USDA”), which has authority over meat, poultry, and egg products and inspects producers to ensure compliance with applicable laws and regulations. Within the USDA, two agencies exercise direct regulatory oversight of our activities: |
• | The U.S. Environmental Protection Agency (“EPA”), which regulates air and water discharges and hazardous and solid waste requirements among other environmental requirements, as well as local and state environmental agencies with jurisdiction over environmental matters affecting the Company's operations. The EPA also administers the National Renewable Fuel Standard Program (“RFS2”). |
• | The Association of American Feed Control Officials (“AAFCO”), which is a voluntary membership association of state, and federal agencies that regulate the sale and distribution of animal feeds and animal drug remedies. Although, AAFCO has no regulatory authority, it brings together stakeholders and works to develop and implement uniform and equitable laws, regulations, standards, definitions, and enforcement polices for regulating the manufacture, labeling, distribution and sale of animal feeds. |
• | State Departments of Agriculture, which regulate animal by-product collection and transportation procedures and animal feed quality. |
• | The United States Department of Transportation (“USDOT”), as well as local and state transportation agencies, which regulate the operation of our commercial vehicles. |
• | The U.S. Occupational Safety and Health Administration (“OSHA”), which is the main federal agency charged with the enforcement of worker safety and health legislation. |
• | The Securities and Exchange Commission (“SEC”), which regulates securities and information required in annual, quarterly and other reports filed by publicly traded companies. |
• | The European Commission, Directorate-General for Health and Food Safety, which addresses regulations for food, feed, human and animal health, technical uses of animal by-products and packaging. |
• | The European Medicines Agency, which establishes guidance for pharmaceutical products, bovine products and metal residues. |
• | The European Food Safety Authority, which advises the European Commission, the European Parliament and the EU Member States on food safety. |
• | The European Directorate for the Quality of Medicine and Healthcare, which protects public health by enabling the development, supporting the implementation, and monitoring the application of quality standards for safe medicines and their safe use. |
• | The European Pharmacopeia, which establishes requirements for the qualitative and quantitative composition of medicines, the tests to be carried out on medicines and on substances and materials used in their production. |
• | The European Chemicals Agency, which is responsible for the implementation of the Regulation (EC) No 1907/2006 on the Registration, Evaluation, Authorisation and Restriction of Chemicals. |
• | The European Commission, Directorate-General for the Environment, which establishes regulations on pollution and waste, such as Directive 2010/75/EU on Industrial Emissions (Integrated Pollution Prevention and Control) and the Best Available Techniques Reference Document on the Slaughterhouses and Animal By-products Industries. |
• | EU Member States must ensure adequate enforcement, control and supervision of principles set forth in numerous EU Directives and Regulations, such as minimum safety and health requirements for the workplace and use of work equipment by workers. EU Member States may be allowed to maintain or establish more stringent measures in their own legislation. In general, each EU Member State’s ministry of labor affairs is responsible for regulating health and safety at work and labor inspection services and is in charge of controlling compliance with applicable legislation and regulations. |
• | The Dutch Food and Consumer Product Safety Authority (Nederlandse Voedsel- en Warenautoriteit), which issues permits, approvals and registrations to establishments or plants engaged in certain activities related to the handling of animal by-products and food and feed production. |
• | Belgian Federal Agency for the Safety of the Food Chain (FASFC) (Federal Agentschap voor de Veiligheid van de Voedselketen), which issues permits, approvals and registrations to establishments or plants engaged in certain activities related to the handling of animal by-products and food and feed production. |
• | Belgium's Public Waste Agency of Flanders (Openbare Afvalstoffenmaatschappij voor het Vlaams Gewest), which issues permits, approvals and registrations to establishments or plants carrying out certain activities related to the handling of animal by-products. |
• | The German Competent Authorities at state (Länder) level, which issue permits, approvals and registrations to establishments or plants carrying out certain activities related to the handling of animal by-products and food and feed production. |
• | The United Kingdom’s Health and Safety Executive is the government body responsible for enforcing health and safety at work legislation, such as the Health and Safety at Work Act 1974, and enforcing health and safety law in industrial workplaces, together with local authorities. |
• | The United Kingdom’s Food Standards Agency issues permits, approvals and registrations to plants carrying out certain activities related to the handling of animal by-products. |
• | The Canadian Food Inspection Agency (“CFIA”), which regulates animal health and the disposal of animals and their products or by-products. |
• | Canadian provincial ministries of agriculture and the environment, which regulate food safety and quality, air and water discharge requirements and the disposal of deadstock. |
• | The Canadian Department of the Environment (“Environment Canada”), which ensures compliance with Canadian federal air and water discharge and wildlife management requirements, and the various provincial and local environmental ministries and agencies. |
• | The Canadian Technical Standards and Safety Authority (“TSSA”), a non-profit organization that regulates the safety of fuels and pressure vessels and boilers. |
• | The General Administration of Quality Supervision, Inspection and Quarantine, which supervises the import and export of food and feed. |
• | The Ministry of Health of the People’s Republic of China, which establishes standards for food and pharmaceutical products. |
• | The Chinese Pharmacopeia, which establishes standards for pharmaceutical products. |
• | Ministry of Environmental Protection of the People's Republic of China, which regulates the environmental protection standards. |
• | Ministry of Labor and Social Security of the People's Republic of China, which establishes the regulations of labor, welfare and health insurance. |
• | State Administration of Work Safety, which establishes the work safety standards and regulations. |
• | The Ministry of Agriculture, Cattle and Supply (Ministério da Agricultura, Pecuária e Abastecimento), which regulates the production of gelatin. |
• | Ministry of Labor (Ministério do Trabalho), which regulates labor health and safety. |
• | National Water Agency (ANA), which regulates waste water discharge permits. |
• | State Government Agency CETESB, responsible for the control, supervision, monitoring and licensing process for pollution generating activities. |
• | The National Department for Food Safety and Quality (Servicio Nacional de Sanidad y Calidad Agroalimentaria), which regulates the production of gelatin. |
• | The National Department of Animal Health (Servicio Nacional de Sanidad Animal), which at the local level is equivalent to the FDA in Argentina. |
• | Ministry of Labor (MMTT - Ministerio de Trabajo) which proposes, designs develops, manages and monitors policies for all areas of labor, employment and labor relations, vocational training and social security. |
• | Department of Sustainable Development (OPDS - Organizmo Provincial para el Desarrollo Sostenible), which regulates all environmental affairs and issuing of the Environmental Aptitude Certificate. |
• | National Water Authority (ADA - Autoridad Del Agua), which regulates water consumption and waste water discharge. |
• | The Australian Quarantine and Inspection Service, which regulates the import and export of agricultural products, including animal by-products. |
• | The Department of Agriculture, Fisheries and Forestry, which administers meat and animal by-product legislation. |
• | PrimeSafe, which is the principal regulator of meat and animal by-product businesses in the State of Victoria. |
• | The Australian Competition and Consumer Commission, which regulates Australia’s competition and consumer protection law. |
• | The Australian Securities and Investments Commission, which regulates Australia’s company and financial services laws. |
• | Worksafe Victoria, which is the regulator responsible for administering and enforcing occupational health and safety laws and regulations in the State of Victoria. |
• | Environment Protection Authority Victoria, which administers environmental protection laws in Victoria. |
• | Goulburn-Murray Rural Water Corporation, which manages allocation and use of water under local water laws in Victoria. |
• | In North America, consolidation within the meat processing industry has resulted in bigger and more efficient slaughtering operations, the majority of which utilize “captive” renderers (rendering operations integrated with the meat or poultry packing operation). |
• | Concurrently, the number of small U.S. meat processors, which have historically been a dependable source of supply for non-captive or independent U.S. renderers, such as us, has been decreasing. |
• | The slaughter rates in the U.S. and international meat processing industry are subject to decline during poor economic conditions when consumers generally reduce their consumption of protein, and as a result, during such periods of decline, the availability, quantity and quality of raw materials available to independent renderers, such as us, decreases. |
• | In addition, the Company has seen an increase in the use of used cooking oil in the production of biodiesel, which has increased competition for the collection of used cooking oil from restaurants and other food service establishments and contributed to an increase in the frequency and magnitude of theft of used cooking oil in the United States. |
• | Furthermore, a decline in the general performance of the global economy (including a decline in consumer confidence) and an inability of consumers and companies to obtain credit in the financial markets could have a negative impact on our raw material volume, such as through the forced closure of any of our raw material suppliers. A significant decrease in available raw materials or a closure of a significant number of raw material suppliers could materially and adversely affect our business, results of operations and financial condition, including the carrying value of certain of our assets. |
• | imposition of tariffs, quotas, trade barriers and other trade protection measures imposed by foreign countries regarding the importation of poultry, beef and pork products, in addition to operating, import or export licensing requirements imposed by various foreign countries; |
• | imposition of border restrictions by foreign countries with respect to the import of poultry, beef and pork products due to animal disease or other perceived health or safety issues; |
• | impact of currency exchange rate fluctuations between the U.S. dollar and foreign currencies, particularly the euro, the Canadian dollar, the Chinese renminbi, the Brazilian real, the British pound, the Japanese yen, the Argentine peso, the Australian dollar and the Polish zloty, which may reduce the U.S. dollar value of the revenues, profits and cash flows we receive from non-U.S. markets or of our assets in non-U.S. countries or increase our supply costs, as measured in U.S. dollars in those markets; |
• | exchange controls and other limits on our ability to import raw materials, import or export finished products or to repatriate earnings from overseas, such as exchange controls in effect in China, that may limit our ability to repatriate earnings from those countries; |
• | different regulatory structures (including creditor rights that may be different than in the United States) and unexpected changes in regulatory environments (including, without limitation, in China), including changes resulting in potentially adverse tax consequences or imposition of onerous trade restrictions, price controls, industry controls, animal and human food safety controls, employee welfare schemes or other government controls; |
• | political or economic instability, social or labor unrest or changing macroeconomic conditions or other changes in political, economic or social conditions in the respective jurisdictions; |
• | changes in our effective tax rate, including tax rates that may exceed those in the United States, earnings that may be subject to withholding requirements and incremental taxes upon repatriation, changes in the mix of our business from year to year and from country to country, changes in rules related to accounting for income taxes, changes in tax laws in any of the jurisdictions in which we operate and adverse outcomes from tax audits; |
• | compliance with and enforcement of a wide variety of complex U.S. and non-U.S. laws, treaties and regulations, including, without limitation, anti-bribery laws such as the U.S. Foreign Corrupt Practices Act (the “FCPA”), the U.K. Bribery Act 2010, the Brazilian corporate anti-corruption law and similar anti-corruption legislation in many jurisdictions in which we operate, as well as economic and trade sanctions enforced by the U.S. Department of the Treasury’s Office of Foreign Assets Control, the EU and other governmental entities; and |
• | distribution costs, disruptions in shipping or reduced availability or increased costs of freight transportation. |
• | problems integrating or developing operations, personnel, technologies or products; |
• | the unanticipated breakdown or failure of equipment or processes, including any unforeseen issues that may arise in connection with the operation of the DGD Facility or completion and startup of the expansion project; |
• | the inaccuracy of our assumptions about prices for the renewable diesel that the DGD Joint Venture produces; |
• | unforeseen engineering or environmental issues, including new or more stringent environmental regulations affecting operations; |
• | the inaccuracy of our assumptions about the timing and amount of anticipated revenues and operating costs including feedstock prices; |
• | the diversion of management time and resources; |
• | difficulty in obtaining and maintaining permits and other regulatory issues, potential license revocation and changes in legal requirements; |
• | difficulties in establishing and maintaining relationships with suppliers and end user customers; |
• | limitations in the DGD Joint Venture’s loan agreement with Valero prohibit the payment of distributions to the DGD Joint Venture partners until certain conditions required by the loan agreement with Valero are satisfied; however, those conditions were met in fiscal 2016 and the DGD Joint Venture distributed $50.0 million to the DGD Joint Venture partners; |
• | the risk that one or more competitive new renewable diesel plants are constructed that use different technologies from the DGD Joint Venture facility and result in the marketing of products that are more effective as a substitute for carbon-based fuels or less expensive than the products marketed by the DGD Joint Venture; |
• | performance below expected levels of output or efficiency; |
• | reliance on Valero and its adjacent refinery facility for many services and processes; |
• | if any of the risks described in connection with the DGD Joint Venture occur, possible impairment of the acquired assets, including intangible assets; |
• | possible third party claims of intellectual property infringement; and |
• | being forced to sell our equity interests in the DGD Joint Venture pursuant to buy/sell provisions in the DGD Joint Venture’s operating agreement and failing to realize the benefits of the DGD Joint Venture. |
• | making it more difficult for us to satisfy our obligations to our financial lenders and our contractual and commercial commitments; |
• | limiting our ability to obtain additional financing to fund future working capital, capital expenditures, acquisitions or other general corporate requirements on commercially reasonable terms or at all; |
• | requiring us to use a substantial portion of our cash flows from operations to pay principal and interest on our indebtedness instead of other purposes, thereby reducing the amount of our cash flows from operations available for working capital, capital expenditures, acquisitions and other general corporate purposes; |
• | increasing our vulnerability to adverse economic, industry and business conditions; |
• | exposing us to the risk of increased interest rates as certain of our borrowings are at variable rates of interest; |
• | increasing our exposure to the impact on our debt level of changes in foreign exchange rate conversion to functional currency; |
• | limiting our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; |
• | placing us at a competitive disadvantage compared to other, less leveraged competitors; and |
• | increasing our cost of borrowing. |
• | On May 5, 2011, the FDA issued an interim final rule amending its administrative detention authority and lowering both the level of proof and the degree of risk required for detaining an article of food. This interim |
• | The FSMA also requires the FDA to develop new regulations that, among other provisions, place additional registration requirements on food and feed producing firms. Section 102 of the FSMA amends facility registration requirements in the FD&C Act for domestic and foreign manufacturers, processors, packers or holders of food for human or animal consumption, now requiring that facility registrations be renewed during the fourth quarter of each even-numbered year, beginning October 1, 2012. Provisions for renewing facility registrations and for submitting such registrations electronically were finalized in a rule published July 14, 2016, which codifies requirements that facility registrations be renewed between October 1 and December 31 of even numbered years; requires additional contact information be provided for the owner, operator or agent-in-charge of the facility; requires information about a facility's activity type(s); requires assurances that FDA will be permitted to inspect registered facilities at the times and manner permitted under the FD&C Act; requires all registrations be made electronically by 2020; and requires facilities to provide a Unique Facility Identifier when registering or renewing registrations beginning in 2020. On December 27, 2016, the FDA released an updated draft guidance, for which comments may be submitted through March 27, 2017, to address questions regarding food facility registration. In September 2016, FDA also issued updated guidance on food product categories in food facility registrations. |
• | Pursuant to FSMA, the FDA issued final rules for preventive controls (“PCs”) for human food and animal feed on September 17, 2015 (“Human Food PC Rule” and “Animal Food PC Rule,” respectively), which apply to facilities that manufacture, process, pack and hold human or animal food and require these facilities to establish and implement written food safety plans, which include hazard analyses, written PCs to ensure that significant hazards that are identified as needing to be controlled will be significantly reduced or prevented, monitoring of PCs, corrective actions, verification and recordkeeping. Both rules require a modern approach to food safety known as Hazard Analysis and Risk Based Preventive Controls (“HARPC”). The Human Food PC Rule updates existing Current Good Manufacturing Practices (“CGMPs”), and the Animal Food PC Rule establishes baseline CGMPs, which set forth minimum current good manufacturing requirements for each of the following areas: personnel, the facility and grounds, sanitation, water supply, equipment and utensils, facility operations and the holding and distribution of the human or animal food. Under these rules, human and animal food facilities will need “preventive control qualified individuals,” (“PCQI”) i.e., those with appropriate training or job experience in the development and application of risk-based PCs, to prepare, evaluate and maintain the food safety plan and PCs. Human and animal food facilities must include a recall plan in their food safety plan and a program for implementing supply-chain applied controls, if appropriate to control a significant hazard. Large firms, including Darling, were required to comply with most sections of the Human Food PC Rule and the CGMP requirements of the Animal Food PC Rule by September 19, 2016, and with the PC and related portions of the Animal Food PC Rule by September 18, 2017. Compliance dates with respect to supply-chain controls are dependent on when suppliers must comply with applicable rules. In August 2016 the FDA published draft guidance documents that are intended to help industry comply with the HARPC regulations for human and animal food. The comment period for the HARPC draft guidance for human food is open until February 21, 2017. Two draft guidance documents affecting animal food were published: (1) Current Good Manufacturing Practice Requirements and (2) Human Food By-Products for Use as Animal Feed. The comment period for these two animal food guidance documents closed on November 23, 2016. On October 31, 2016, the FDA published a draft guidance document to explain how a facility is expected to disclose the presence of certain hazards that would require control under the FSMA regulations but were not controlled by that facility (“Hazard Disclosure”). The disclosure that such a hazard was not controlled would be made in documents accompanying the human food or animal food or imported foods. The sale of such foods for which a hazard was not controlled would be permitted if the customer provides written assurance to the manufacturer that the customer will control the hazard. The FDA also extended the compliance date for the provisions regarding written assurance from customers to September 2018 (or later) but did not change the hazard disclosure requirements or extend the compliance date for such requirements. The comment period for the Hazard Disclosure draft guidance closes on May 1, 2017. |
• | November 27, 2015, FDA issued a final rule, entitled “Foreign Supplier Verification Program for Importers of Food for Humans and Animals” (“FSVP Rule”). The FSVP Rule establishes requirements for importers of both human and animal food by providing a flexible, risk-based approach to foreign supplier verification consistent with the HARPC requirements for food facilities established in the Human Food PC Rule and Animal Food PC Rule. Under the FSVP Rule, importers of human food and animal food must verify that their foreign suppliers produce food in a manner that provides the same level of public health protection as the Human Food PC Rule and Animal Food PC Rule, or FDA’s regulations established under FSMA regarding produce safety, as |
• | On June 16, 2016, the FDA published the third edition of a guidance document regarding the requirement for prior notice before importation of articles of food, including food for animals. The guidance addresses notification procedures and the scope of food articles covered by the regulation, and clarifies jurisdictional issues with other federal agencies, among other topics. |
• | Pursuant to the Sanitary Food Transportation Act of 2005 and FSMA, the FDA published a final rule on April 6, 2016 (“Sanitary Transportation Rule”), which requires that sanitary transportation practices be used to transport human and animal foods to prevent such food from being adulterated during transport and applies to shippers, loaders, carriers by motor vehicle or rail vehicle, and receivers engaged in the transportation of food. The Sanitary Transportation Rule became effective on June 6, 2016, and the compliance date for businesses other than small businesses, such as the Company, is April 6, 2017. |
• | On May 27, 2016, FDA published a final rule entitled “Mitigation Strategies to Protect Food Against Intentional Adulteration,” which requires registered human food facilities to conduct a vulnerability assessment and implement mitigation strategies to address hazards that may be intentionally introduced in order to harm the public health. The earliest compliance date for the rule is July 2019. |
• | actual or anticipated fluctuations in ingredient prices; |
• | actual or anticipated variations in our operating results; |
• | our earnings releases and financial performance; |
• | changes in financial estimates or buy/sell recommendations by securities analysts; |
• | our ability to repay our debt; |
• | our access to financial and capital markets to refinance our debt; |
• | performance of our joint venture investments, including the DGD Joint Venture; |
• | our dividend policy; |
• | market conditions in the industry and the general state of the securities markets; |
• | investor perceptions of us and the industry and markets in which we operate; |
• | governmental legislation or regulation; |
• | currency and exchange rate fluctuations that impact our earnings and balance sheet; and |
• | general economic and market conditions, such as U.S. or global reactions to economic developments, including regional recessions, currency devaluations or political unrest. |
LOCATION | DESCRIPTION |
Feed Ingredients Segment | |
Albertville, Alabama, United States | Bakery By-Products |
Bastrop, Texas, United States | Animal By-Products |
Bellevue, Nebraska, United States | Animal By-Products |
Berlin, Wisconsin, United States | Animal By-Products |
Blue Earth, Minnesota, United States | Animal By-Products |
Blue Island, Illinois, United States | Animal By-Products |
Boise, Idaho, United States | Animal By-Products |
Bryan, Texas, United States | Bakery By-Products |
Burgum, Netherlands | Animal By-Products |
Butler, Kentucky, United States | Animal By-Products |
Butler, Kentucky, United States | Bakery By-Products |
Clinton, Iowa, United States | Animal By-Products |
Coldwater, Michigan, United States | Animal By-Products |
Collinsville, Oklahoma, United States | Animal By-Products |
Dallas, Texas, United States | Animal By-Products |
Dardanelle, Arkansas, United States | Animal By-Products |
Denver, Colorado, United States | Animal By-Products |
Des Moines, Iowa, United States | Animal By-Products |
Doswell, Virginia, United States | Bakery By-Products |
Dundas, Ontario, Canada | Animal By-Products |
Eching, Germany | Hides |
East Dublin, Georgia, United States | Animal By-Products |
E. St. Louis, Illinois, United States | Animal By-Products |
Ellenwood, Georgia, United States | Animal By-Products |
Fresno, California, United States | Animal By-Products |
Henderson, Kentucky, United States | Animal By-Products |
Henderson, Kentucky, United States | Bakery By-Products |
Hickson, Ontario, Canada | Animal By-Products |
Honey Brook, Pennsylvania, United States | Bakery By-Products |
Houston, Texas, United States | Animal By-Products |
Jackson, Mississippi, United States | Animal By-Products |
Kansas City, Kansas, United States | Animal By-Products |
Kansas City, Missouri, United States | Hides |
Lexington, Nebraska, United States | Animal By-Products |
Lingen, Germany | Blood |
Loenen, Netherlands | Animal By-Products |
Los Angeles, California, United States | Animal By-Products |
Luohe, China | Blood |
Maquoketa, Iowa, United States | Blood |
Marshville, North Carolina, United States | Bakery By-Products |
Maryborough, Australia | Blood |
Mason City, Illinois, United States | Animal By-Products |
Memmingen, Germany | Hides |
Mering, Germany | Animal By-Products |
Moorefield, Ontario, Canada | Animal By-Products |
Muscatine, Iowa, United States | Bakery By-Products |
Newark, New Jersey, United States | Animal By-Products |
Newberry, Indiana, United States | Animal By-Products |
North Baltimore, Ohio, United States | Bakery By-Products |
Omaha, Nebraska, United States | Animal By-Products |
Osetnica, Poland | Animal By-Products |
Paducah, Kentucky, United States | Wet Pet Food |
Pocahontas, Arkansas, United States | Animal By-Products |
Ravenna, Nebraska, United States | Wet Pet Food |
Russellville, Kentucky, United State | Animal By-Products |
San Francisco, California, United States | Animal By-Products |
Sioux City, Iowa, United States | Animal By-Products |
Smyrna, Georgia, United States | Animal By-Products |
Son, Netherlands | Animal By-Products |
Starke, Florida, United States | Animal By-Products |
Suzhou, China | Blood |
Tacoma, Washington, United States | Animal By-Products |
Tampa, Florida, United States | Animal By-Products |
Truro, Novia Scotia, Canada | Animal By-Products |
Turlock, California, United States | Animal By-Products |
Union City, Tennessee, United States | Animal By-Products |
Usnice, Poland | Animal By-Products |
Wahoo, Nebraska, United States | Animal By-Products |
Watts, Oklahoma, United States | Bakery By-Products |
Wichita, Kansas, United States | Animal By-Products |
Winesburg, Ohio, United States | Animal By-Products |
Winnipeg, Manitoba, Canada | Animal By-Products |
Food Ingredients Segment | |
Almere, Netherlands | CTH |
Amparo, Brazil | Gelatin |
Angouleme, France | Gelatin |
Da'an, China | Gelatin |
Dubuque, Iowa, United States | Gelatin |
Eindhoven, Netherlands | Fat |
Elsholz, Germany | Fat |
Erolzheim, Germany | Fat |
Gent, Belgium | Gelatin |
Girona, Spain | Gelatin |
Harlingen, Netherlands | Fat |
Hurlingham, Argentina | Gelatin |
Ilse-Sur-La-Sorgue, France | Gelatin |
Kaiping, China | Gelatin |
Peabody, Massachusetts, United States | Gelatin |
Presidente Epitacio, Brazil | Gelatin |
Stoke-on Trent, United Kingdom | Bone |
Versmold, Germany | Fat |
Vuren, Netherlands | Bone |
Wenzhou, China | Gelatin |
Zhejiang, China | Gelatin |
Fuel Ingredients Segment | |
Belm-Icker, Germany | Bioenergy |
Butler, Kentucky, United States | Biodiesel |
Denderleeuw, Belgium | Bioenergy |
Jagel, Germany | Bioenergy |
Rotenburg, Germany | Bioenergy |
Saint-Catherine, Quebec Canada | Biodiesel |
Son, Netherlands | Bioenergy |
Market Price | ||||||
Fiscal Quarter | High | Low | ||||
2016: | ||||||
First Quarter | $ | 13.39 | $ | 7.92 | ||
Second Quarter | $ | 15.77 | $ | 13.02 | ||
Third Quarter | $ | 15.78 | $ | 12.86 | ||
Fourth Quarter | $ | 14.59 | $ | 12.91 | ||
2015: | ||||||
First Quarter | $ | 18.25 | $ | 13.81 | ||
Second Quarter | $ | 15.99 | $ | 13.66 | ||
Third Quarter | $ | 14.22 | $ | 10.92 | ||
Fourth Quarter | $ | 11.75 | $ | 9.10 |
Fiscal 2016 | Fiscal 2015 | Fiscal 2014 | Fiscal 2013 | Fiscal 2012 | |||||||||||
Fifty-two | Fifty-two | Fifty-three | Fifty-two | Fifty-two | |||||||||||
Weeks Ended | Weeks Ended | Weeks Ended | Weeks Ended | Weeks Ended | |||||||||||
December 31, | January 2, | January 3, | December 28, | December 29, | |||||||||||
2016 | 2016 | 2015 (j) | 2013 (i) | 2012 (h) | |||||||||||
(dollars in thousands, except per share data) | |||||||||||||||
Statement of Operations Data: | |||||||||||||||
Net sales (k) | $ | 3,398,115 | $ | 3,397,446 | $ | 3,956,443 | $ | 1,802,268 | $ | 1,772,552 | |||||
Cost of sales and operating expenses (a), (k) | 2,641,734 | 2,654,025 | 3,123,171 | 1,339,819 | 1,303,727 | ||||||||||
Selling, general and administrative expenses (c) | 314,005 | 322,574 | 374,580 | 170,825 | 151,713 | ||||||||||
Depreciation and amortization | 289,908 | 269,904 | 269,517 | 98,787 | 85,371 | ||||||||||
Acquisition and integration costs | 401 | 8,299 | 24,667 | 23,271 | — | ||||||||||
Operating income | 152,067 | 142,644 | 164,508 | 169,566 | 231,741 | ||||||||||
Interest expense (b) | 94,187 | 105,530 | 135,416 | 38,108 | 24,054 | ||||||||||
Foreign currency (gain)/loss (e) | 1,854 | 4,911 | 13,548 | (28,107 | ) | — | |||||||||
Other (income)/expense, net, (c), (d) | 3,866 | 6,839 | (299 | ) | 3,547 | (1,760 | ) | ||||||||
Equity in net (income)/loss of unconsolidated subsidiary | (70,379 | ) | (73,416 | ) | (65,609 | ) | (7,660 | ) | 2,662 | ||||||
Income from continuing operations before income taxes | 122,539 | 98,780 | 81,452 | 163,678 | 206,785 | ||||||||||
Income tax expense | 15,315 | 13,501 | 13,141 | 54,711 | 76,015 | ||||||||||
Net Income | $ | 107,224 | $ | 85,279 | $ | 68,311 | $ | 108,967 | $ | 130,770 | |||||
Net Income attributable to minority interests | (4,911 | ) | (6,748 | ) | (4,096 | ) | — | — | |||||||
Net Income attributable to Darling | $ | 102,313 | $ | 78,531 | $ | 64,215 | $ | 108,967 | $ | 130,770 | |||||
Basic earnings per common share | $ | 0.62 | $ | 0.48 | $ | 0.39 | $ | 0.91 | $ | 1.11 | |||||
Diluted earnings per common share | $ | 0.62 | $ | 0.48 | $ | 0.39 | $ | 0.91 | $ | 1.11 | |||||
Weighted average shares outstanding | 164,600 | 165,031 | 164,627 | 119,526 | 117,592 | ||||||||||
Diluted weighted average shares outstanding | 165,212 | 165,119 | 165,059 | 119,924 | 118,089 | ||||||||||
Other Financial Data: | |||||||||||||||
Adjusted EBITDA (a), (f) | $ | 441,975 | $ | 412,548 | $ | 434,025 | $ | 268,353 | $ | 317,112 | |||||
Depreciation | 212,217 | 186,595 | 185,955 | 66,691 | 57,305 | ||||||||||
Amortization | 77,691 | 83,309 | 83,562 | 32,096 | 28,066 | ||||||||||
Capital expenditures (g) | 243,523 | 229,848 | 228,918 | 118,307 | 115,413 | ||||||||||
Balance Sheet Data: | |||||||||||||||
Working capital (l) | $ | 441,451 | $ | 490,120 | $ | 525,211 | $ | 950,698 | $ | 158,578 | |||||
Total assets (l) | 4,698,017 | 4,760,619 | 5,126,547 | 3,244,133 | 1,552,416 | ||||||||||
Current portion of long-term debt (l) | 23,247 | 45,166 | 54,401 | 19,888 | 82 | ||||||||||
Total long-term debt less current portion (l) | 1,727,696 | 1,885,851 | 2,098,039 | 866,947 | 250,142 | ||||||||||
Stockholders’ equity attributable to Darling | 1,972,994 | 1,870,709 | 1,952,990 | 2,020,952 | 1,062,436 |
(a) | Included in fiscal 2014 are non-cash charges for the step-up of inventory acquired in the VION Acquisition of approximately $49.8 million. |
(b) | Included in interest expense for fiscal 2015 is the write-off of deferred loan costs of approximately $10.6 million related to the payoff of the euro term loan B. Included in interest expense for fiscal 2014 is a redemption premium and a write-off of deferred loan costs of approximately $27.3 million and $4.3 million, respectively. Included in interest expense for fiscal 2013 is approximately $13.0 million for bank financing fees from an unutilized bridge facility. Fiscal 2012 includes the write-off of approximately $0.7 million in deferred loan costs as a result of the final payoff on the term loan portion of the Company's previous secured credit facilities. |
(c) | Included in selling, general and administrative expenses is a gain of approximately $3.1 million and included in other (income)/expense in fiscal 2016 is a gain of approximately $2.5 million for a recorded insurance settlement. Included in other (income)/expense in fiscal |
(d) | Included in other (income)/expense in fiscal 2012 are gain contingencies from insurance proceeds from fiscal 2012 and fiscal 2010 fire and casualty losses of approximately $4.7 million. |
(e) | Included in fiscal 2014 and fiscal 2013, the Company recorded a loss of approximately $12.6 million and a gain of approximately $27.5 million, respectively on foreign currency exchange forward hedge contracts for the VION Acquisition. |
(f) | Adjusted EBITDA is presented here not as an alternative to net income, but rather as a measure of the Company’s operating performance and is not intended to be a presentation in accordance with U.S. generally accepted accounting principles (“GAAP”). Adjusted EBITDA is calculated below and represents, for any relevant period, net income/(loss) plus depreciation and amortization, goodwill and long-lived asset impairment, interest expense, (income)/loss from discontinued operations, net of tax, income tax provision, other income/(expense) and equity in net loss of unconsolidated subsidiaries. The Company believes adjusted EBITDA is a useful measure for investors because it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company's industry. In addition, management believes that adjusted EBITDA is useful in evaluating the Company's operating performance compared to that of other companies in the food ingredients and agriculture industries because the calculation of adjusted EBITDA generally eliminates the effects of financing, income taxes and certain non-cash and other items that may vary for different companies for reasons unrelated to overall operating performance. As a result, the Company’s management uses adjusted EBITDA as a measure to evaluate performance and for other discretionary purposes. However, adjusted EBITDA is not a recognized measurement under GAAP, should not be considered as an alternative to net income as a measure of operating results or to cash flow as a measure of liquidity, and is not intended to be a presentation in accordance with GAAP. Also, since adjusted EBITDA is not calculated identically by all companies, the presentation in this report may not be comparable to those disclosed by other companies. In addition to the foregoing, management also uses or will use adjusted EBITDA to measure compliance with certain financial covenants under the Company’s senior secured credit facilities and senior unsecured notes that were outstanding at December 31, 2016. The amounts shown below for adjusted EBITDA differ from the amounts calculated under similarly titled definitions in the Company’s Senior Secured Credit Facilities and Senior Unsecured Notes, as those definitions permit further adjustments to reflect certain other non-cash charges. |
(dollars in thousands) | December 31, 2016 | January 2, 2016 | January 3, 2015 | December 28, 2013 | December 29, 2012 | ||||||||||
Net income attributable to Darling | $ | 102,313 | $ | 78,531 | $ | 64,215 | $ | 108,967 | $ | 130,770 | |||||
Depreciation and amortization | 289,908 | 269,904 | 269,517 | 98,787 | 85,371 | ||||||||||
Interest expense | 94,187 | 105,530 | 135,416 | 38,108 | 24,054 | ||||||||||
Income tax expense | 15,315 | 13,501 | 13,141 | 54,711 | 76,015 | ||||||||||
Other, net | 5,720 | 11,750 | 13,249 | (24,560 | ) | (1,760 | ) | ||||||||
Equity in net (income)/loss of unconsolidated subsidiaries | (70,379 | ) | (73,416 | ) | (65,609 | ) | (7,660 | ) | 2,662 | ||||||
Net income attributable to noncontrolling interests | 4,911 | 6,748 | 4,096 | — | — | ||||||||||
Adjusted EBITDA | $ | 441,975 | $ | 412,548 | $ | 434,025 | $ | 268,353 | $ | 317,112 |
(g) | Fiscal 2016, fiscal 2015 and fiscal 2012 excludes the capital assets acquired in immaterial acquisitions. Fiscal 2014 excludes the capital assets acquired as part of the VION Acquisition and the Custom Blenders acquisition of approximately $984.2 million. Fiscal 2013 excludes the capital assets acquired from Terra Holding Company, a Delaware corporation, and its wholly owned subsidiaries, Terra Renewal Services, Inc., an Arkansas corporation (“TRS”), and EV Acquisition, Inc., an Arkansas corporation (the “Terra Transaction”) and Rothsay capital assets acquired in fiscal 2013 of approximately $167.0 million. |
(h) | Subsequent to the date of acquisition, fiscal 2012 includes 29 weeks of contribution from the RVO BioPur, LLC assets. |
(i) | Subsequent to the date of acquisition, fiscal 2013 includes 18 weeks of contribution from the TRS assets and 9 weeks of contribution from the assets of Rothsay. |
(j) | Subsequent to the date of acquisition, fiscal 2014 includes 52 weeks of contribution from the VION Acquisition and 14 weeks of contribution from the Custom Blenders acquisition. |
(k) | Includes certain reclassifications from net sales to cost of sales and operating expenses of approximately $78.7 million and $71.1 million in fiscal 2013 and fiscal 2012, respectively to conform to fiscal 2014 through fiscal 2016 presentation. |
(l) | Fiscal 2015 includes certain reclassifications for deferred loan costs from long-term assets of approximately $29.0 million to current and non-current liabilities as reduction of outstanding debt to conform with fiscal 2016 presentation of debt. The presentation impact was to reduce total assets by approximately $29.0 million, increase working capital by approximately $2.1 million, reduce current portion of long-term debt by approximately $2.1 million and reduce long-term debt less current portion by approximately $26.9 million. |
• | $5.6 million related to the casualty gains in the Netherlands from the recording of an insurance settlement. |
• | $8.3 million associated with the integration of VION Ingredients and Rothsay, a staff reduction in Angoulême, France and the implementation of internal controls over financial reporting per the Sarbanes-Oxley Act of 2002 for VION Ingredients; |
• | $10.6 million related to the write-off of deferred loan costs associated with the retirement of the Company’s European portion of its term loan B note on June 3, 2015; and |
• | $4.8 million related to the non-operating casualty losses in Canada, the Netherlands and Brazil and a legal settlement. |
Fiscal Year Ended | ||||||
(dollars in thousands) | December 31, 2016 | January 2, 2016 | ||||
Net income attributable to Darling | $ | 102,313 | $ | 78,531 | ||
Depreciation and amortization | 289,908 | 269,904 | ||||
Interest expense | 94,187 | 105,530 | ||||
Income tax expense/(benefit) | 15,315 | 13,501 | ||||
Foreign currency loss/(gain) | 1,854 | 4,911 | ||||
Other expense/(income), net | 3,866 | 6,839 | ||||
Equity in net (income)/loss of unconsolidated subsidiaries | (70,379 | ) | (73,416 | ) | ||
Net (loss)/income attributable to noncontrolling interests | 4,911 | 6,748 | ||||
Adjusted EBITDA (Non-GAAP) | $ | 441,975 | $ | 412,548 | ||
Acquisition and integration-related expenses | 401 | 8,299 | ||||
Pro forma Adjusted EBITDA (Non-GAAP) | $ | 442,376 | $ | 420,847 | ||
Foreign currency exchange impact (1) | 1,980 | — | ||||
Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP) | $ | 444,356 | $ | 420,847 | ||
DGD Joint Venture Adjusted EBITDA (Darling's Share) | $ | 87,224 | $ | 88,494 |
• | Finished product commodity prices |
• | Segment operating income |
• | Raw material processed |
• | Gross margin percentage |
• | Foreign currency |
• | Corporate activities |
Avg. Price Fiscal 2016 | Avg. Price Fiscal 2015 | Increase/(Decrease) | % Increase/(Decrease) | ||
Jacobsen: | |||||
MBM (Illinois) | $ 274.51/ton | $ 334.55/ton | $ (60.04)/ton | (17.9 | )% |
Feed Grade PM (Mid-South) | $ 300.12/ton | $ 404.54/ton | $ (104.42)/ton | (25.8 | )% |
Pet Food PM (Mid-South) | $ 557.17/ton | $ 544.64/ton | $ 12.53/ton | 2.3 | % |
Feather meal (Mid-South) | $ 356.40/ton | $ 472.27/ton | $ (115.87)/ton | (24.5 | )% |
BFT (Chicago) | $ 29.75/cwt | $ 27.36/cwt | $ 2.39/cwt | 8.7 | % |
YG (Illinois) | $ 23.77/cwt | $ 21.79/cwt | $ 1.98/cwt | 9.1 | % |
Corn (Illinois) | $ 3.70/bushel | $ 3.89/bushel | $ (0.19)/bushel | (4.9 | )% |
Reuters: | |||||
Palm Oil (CIF Rotterdam) | $ 698.00/ton | $ 607.00/ton | $ 91.00/ton | 15.0 | % |
Soy meal (CIF Rotterdam) | $ 375.00/ton | $ 391.00/ton | $ (16.00)/ton | (4.1 | )% |
Avg. Price 4th Quarter 2016 | Avg. Price 3rd Quarter 2016 | Increase/(Decrease) | % Increase/(Decrease) | ||
Jacobsen: | |||||
MBM (Illinois) | $ 223.24/ton | $ 325.56/ton | $ (102.32)/ton | (31.4 | )% |
Feed Grade PM (Mid-South) | $ 281.43/ton | $ 364.37/ton | $ (82.94)/ton | (22.8 | )% |
Pet Food PM (Mid-South) | $ 571.09/ton | $ 593.47/ton | $ (22.38)/ton | (3.8 | )% |
Feather meal (Mid-South) | $ 356.91/ton | $ 432.57/ton | $ (75.66)/ton | (17.5 | )% |
BFT (Chicago) | $ 30.77/cwt | $ 28.59/cwt | $ 2.18/cwt | 7.6 | % |
YG (Illinois) | $ 23.05/cwt | $ 24.01/cwt | $ (0.96)/cwt | (4.0 | )% |
Corn (Illinois) | $ 3.58/bushel | $ 3.42/bushel | $ 0.16/bushel | 4.7 | % |
Reuters: | |||||
Palm Oil (CIF Rotterdam) | $ 752.00/ton | $ 705.00/ton | $ 47.00/ton | 6.7 | % |
Soy meal (CIF Rotterdam) | $ 360.00/ton | $ 403.00/ton | $ (43.00)/ton | (10.7 | )% |
Fats | Proteins | Other Rendering | Total Rendering | Used Cooking Oil | Bakery | Other | Total | |||||||||||||||||
Net sales year ended January 2, 2016 | $ | 539.8 | $ | 828.5 | $ | 244.0 | $ | 1,612.3 | $ | 154.0 | $ | 217.9 | $ | 90.1 | $ | 2,074.3 | ||||||||
Increase/(decrease) in sales volumes | 41.8 | 83.3 | — | 125.1 | 0.7 | 10.4 | — | 136.2 | ||||||||||||||||
Increase/(decrease) in finished product prices | (5.2 | ) | (139.9 | ) | — | (145.1 | ) | 10.6 | (7.9 | ) | — | (142.4 | ) | |||||||||||
Increase/(decrease) due to currency exchange rates | (1.8 | ) | (2.5 | ) | (0.7 | ) | (5.0 | ) | (0.2 | ) | — | (0.1 | ) | (5.3 | ) | |||||||||
Other change | — | — | 25.8 | 25.8 | — | — | 0.5 | 26.3 | ||||||||||||||||
Total change | 34.8 | (59.1 | ) | 25.1 | 0.8 | 11.1 | 2.5 | 0.4 | 14.8 | |||||||||||||||
Net sales year ended December 31, 2016 | $ | 574.6 | $ | 769.4 | $ | 269.1 | $ | 1,613.1 | $ | 165.1 | $ | 220.4 | $ | 90.5 | $ | 2,089.1 |
Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total | |||||||||||
Fiscal Year Ended December 31, 2016 | |||||||||||||||
Net Sales | $ | 2,089,145 | $ | 1,061,912 | $ | 247,058 | $ | — | $ | 3,398,115 | |||||
Cost of sales and operating expenses | 1,624,858 | 834,410 | 182,466 | — | 2,641,734 | ||||||||||
Gross Margin | 464,287 | 227,502 | 64,592 | — | 756,381 | ||||||||||
Gross Margin % | 22.2 | % | 21.4 | % | 26.1 | % | — | % | 22.3 | % | |||||
Selling, general and administrative expense | 169,648 | 96,170 | 6,895 | 41,292 | 314,005 | ||||||||||
Acquisition costs | — | — | — | 401 | 401 | ||||||||||
Depreciation and amortization | 178,845 | 70,120 | 28,531 | 12,412 | 289,908 | ||||||||||
Segment operating income/ (loss) | 115,794 | 61,212 | 29,166 | (54,105 | ) | 152,067 | |||||||||
Equity in net income of unconsolidated subsidiaries | 467 | — | 69,912 | — | 70,379 | ||||||||||
Segment income | 116,261 | 61,212 | 99,078 | (54,105 | ) | 222,446 | |||||||||
Total other expense | (99,907 | ) | |||||||||||||
Income/ (loss) before income taxes | $ | 122,539 |
Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total | |||||||||||
Fiscal Year Ended January 2, 2016 | |||||||||||||||
Net Sales | $ | 2,074,333 | $ | 1,094,918 | $ | 228,195 | $ | — | $ | 3,397,446 | |||||
Cost of sales and operating expenses | 1,613,402 | 863,562 | 177,061 | — | 2,654,025 | ||||||||||
Gross Margin | 460,931 | 231,356 | 51,134 | — | 743,421 | ||||||||||
Gross Margin % | 22.2 | % | 21.1 | % | 22.4 | % | — | % | 21.9 | % | |||||
Selling, general and administrative expense | 178,624 | 103,301 | 7,264 | 33,385 | 322,574 | ||||||||||
Acquisition costs | — | — | — | 8,299 | 8,299 | ||||||||||
Depreciation and amortization | 165,854 | 66,817 | 26,711 | 10,522 | 269,904 | ||||||||||
Segment operating income/(loss) | 116,453 | 61,238 | 17,159 | (52,206 | ) | 142,644 | |||||||||
Equity in net income of unconsolidated subsidiaries | 1,521 | — | 71,895 | — | 73,416 | ||||||||||
Segment income | 117,974 | 61,238 | 89,054 | (52,206 | ) | 216,060 | |||||||||
Total other expense | (117,280 | ) | |||||||||||||
Income before income taxes | $ | 98,780 |
Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total | ||||||
Fiscal Year Ended December 31, 2016 | ||||||||||
Gross Margin % | 22.2 | % | 21.4 | % | 26.1 | % | — | 22.3 | % |
Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total | ||||||
Fiscal Year Ended January 2, 2016 | ||||||||||
Gross Margin % | 22.2 | % | 21.1 | % | 22.4 | % | — | 21.9 | % |
• | $8.3 million associated with the integration of VION Ingredients and Rothsay, a staff reduction in Angoulême, France and the implementation of internal controls over financial reporting per the Sarbanes-Oxley Act of 2002 for VION Ingredients; |
• | $10.6 million related to the write-off of deferred loan costs associated with the retirement of the Company’s European portion of its term loan B term note on June 3, 2015; and |
• | $4.8 million related to the non-operating casualty losses in Canada, the Netherlands and Brazil and a legal settlement. |
• | $49.8 million related to a non-cash inventory step-up associated with the required purchase accounting for the VION Acquisition related to the portion of acquired inventory sold during the period; |
• | $31.7 million related to the redemption premium and write-off of deferred loan costs associated with the retirement of the Company’s 8.5% Senior Notes on February 7, 2014; |
• | $24.7 million associated with the acquisition and integration of Rothsay and VION Ingredients during the period; and |
• | $12.6 million related to certain euro forward contracts entered into to hedge against foreign exchange risks related to the closing of the VION Acquisition |
Fiscal Year Ended | ||||||
(dollars in thousands) | January 2, 2016 | January 3, 2015 | ||||
Net income attributable to Darling | $ | 78,531 | $ | 64,215 | ||
Depreciation and amortization | 269,904 | 269,517 | ||||
Interest expense | 105,530 | 135,416 | ||||
Income tax expense/(benefit) | 13,501 | 13,141 | ||||
Foreign currency loss/(gain) | 4,911 | 13,548 | ||||
Other expense/(income), net | 6,839 | (299 | ) | |||
Equity in net (income)/loss of unconsolidated subsidiaries | (73,416 | ) | (65,609 | ) | ||
Net (loss)/income attributable to noncontrolling interests | 6,748 | 4,096 | ||||
Adjusted EBITDA (Non-GAAP) | $ | 412,548 | $ | 434,025 | ||
Non-cash inventory step-up associated with VION Acquisition | — | 49,803 | ||||
Acquisition and integration-related expenses | 8,299 | 24,667 | ||||
Darling Ingredients International - 13th week (1) | — | 4,100 | ||||
Pro forma Adjusted EBITDA (Non-GAAP) | $ | 420,847 | $ | 512,595 | ||
Foreign currency exchange impact (3) | 48,961 | — | ||||
Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP) | $ | 469,808 | $ | 512,595 | ||
DGD Joint Venture Adjusted EBITDA (Darling's Share) (2) | $ | 88,494 | $ | 81,639 |
• | Finished product commodity prices |
• | Segment operating income |
• | Raw material processed |
• | Gross margin percentage |
• | Foreign currency |
• | Corporate activities |
Avg. Price Fiscal 2015 | Avg. Price Fiscal 2014 | Increase/(Decrease) | % Increase/(Decrease) | ||
Jacobsen: | |||||
MBM (Illinois) | $ 334.55/ton | $ 467.81/ton | $ (133.26)/ton | (28.5 | )% |
Feed Grade PM (Mid-South) | $ 404.54/ton | $ 555.42/ton | $ (150.88)/ton | (27.2 | )% |
Pet Food PM (Mid-South) | $ 544.64/ton | $ 790.75/ton | $ (246.11)/ton | (31.1 | )% |
Feather meal (Mid-South) | $ 472.27/ton | $ 700.69/ton | $ (228.42)/ton | (32.6 | )% |
BFT (Chicago) | $ 27.36/cwt | $ 36.77/cwt | $ (9.41)/cwt | (25.6 | )% |
YG (Illinois) | $ 21.79/cwt | $ 28.95/cwt | $ (7.16)/cwt | (24.7 | )% |
Corn (Illinois) | $ 3.89/bushel | $ 4.23/bushel | $ (0.34)/bushel | (8.0 | )% |
Reuters: | |||||
Palm Oil (CIF Rotterdam) | $ 607.00/ton | $ 809.00/ton | $ (202.00)/ton | (25.0 | )% |
Soy meal (CIF Rotterdam) | $ 391.00/ton | $ 526.00/ton | $ (135.00)/ton | (25.7 | )% |
Avg. Price 4th Quarter 2015 | Avg. Price 3rd Quarter 2015 | Increase/(Decrease) | % Increase/(Decrease) | ||
Jacobsen: | |||||
MBM (Illinois) | $ 249.29/ton | $ 354.91/ton | $ (105.62)/ton | (29.8 | )% |
Feed Grade PM (Mid-South) | $ 334.67/ton | $ 391.55/ton | $ (56.88)/ton | (14.5 | )% |
Pet Food PM (Mid-South) | $ 469.49/ton | $ 532.45/ton | $ (62.96)/ton | (11.8 | )% |
Feather meal (Mid-South) | $ 367.06/ton | $ 499.12/ton | $ (132.06)/ton | (26.5 | )% |
BFT (Chicago) | $ 21.18/cwt | $ 29.42/cwt | $ (8.24)/cwt | (28.0 | )% |
YG (Illinois) | $ 17.86/cwt | $ 21.48/cwt | $ (3.62)/cwt | (16.9 | )% |
Corn (Illinois) | $ 3.95/bushel | $ 3.91/bushel | $ 0.04/bushel | 1.0 | % |
Reuters: | |||||
Palm Oil (CIF Rotterdam) | $ 563.00/ton | $ 558.00/ton | $ 5.00/ton | 0.9 | % |
Soy meal (CIF Rotterdam) | $ 352.00/ton | $ 380.00/ton | $ (28.00)/ton | (7.4 | )% |
Fats | Proteins | Other Rendering | Total Rendering | Used Cooking Oil | Bakery | Other | Total | |||||||||||||||||
Net sales year ended January 3, 2015 | $ | 659.0 | $ | 979.8 | $ | 274.8 | $ | 1,913.6 | $ | 190.3 | $ | 221.7 | $ | 95.9 | $ | 2,421.5 | ||||||||
Increase/(decrease) in sales volumes | 28.4 | 34.1 | — | 62.5 | 3.1 | 28.3 | — | 93.9 | ||||||||||||||||
Increase/(decrease) in finished product prices | (124.1 | ) | (118.6 | ) | — | (242.7 | ) | (37.6 | ) | (32.1 | ) | — | (312.4 | ) | ||||||||||
Increase/(decrease) due to currency exchange rates | (23.5 | ) | (66.8 | ) | (34.1 | ) | (124.4 | ) | (1.8 | ) | — | (0.3 | ) | (126.5 | ) | |||||||||
Other change | — | — | 3.3 | 3.3 | — | — | (5.5 | ) | (2.2 | ) | ||||||||||||||
Total change | (119.2 | ) | (151.3 | ) | (30.8 | ) | (301.3 | ) | (36.3 | ) | (3.8 | ) | (5.8 | ) | (347.2 | ) | ||||||||
Net sales year ended January 2, 2016 | $ | 539.8 | $ | 828.5 | $ | 244.0 | $ | 1,612.3 | $ | 154.0 | $ | 217.9 | $ | 90.1 | $ | 2,074.3 |
Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total | |||||||||||
Fiscal Year Ended January 2, 2016 | |||||||||||||||
Net Sales | $ | 2,074,333 | $ | 1,094,918 | $ | 228,195 | $ | — | $ | 3,397,446 | |||||
Cost of sales and operating expenses | 1,613,402 | 863,562 | 177,061 | — | 2,654,025 | ||||||||||
Gross Margin | 460,931 | 231,356 | 51,134 | — | 743,421 | ||||||||||
Gross Margin % | 22.2 | % | 21.1 | % | 22.4 | % | — | % | 21.9 | % | |||||
Selling, general and administrative expense | 178,624 | 103,301 | 7,264 | 33,385 | 322,574 | ||||||||||
Acquisition costs | — | — | — | 8,299 | 8,299 | ||||||||||
Depreciation and amortization | 165,854 | 66,817 | 26,711 | 10,522 | 269,904 | ||||||||||
Segment operating income/ (loss) | 116,453 | 61,238 | 17,159 | (52,206 | ) | 142,644 | |||||||||
Equity in net income of unconsolidated subsidiaries | 1,521 | — | 71,895 | — | 73,416 | ||||||||||
Segment income | 117,974 | 61,238 | 89,054 | (52,206 | ) | 216,060 | |||||||||
Total other expense | (117,280 | ) | |||||||||||||
Income/ (loss) before income taxes | $ | 98,780 |
Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total | |||||||||||
Fiscal Year Ended January 3, 2015 | |||||||||||||||
Net Sales | $ | 2,421,462 | $ | 1,248,352 | $ | 286,629 | $ | — | $ | 3,956,443 | |||||
Cost of sales and operating expenses | 1,864,835 | 1,029,488 | 228,848 | — | 3,123,171 | ||||||||||
Gross Margin | 556,627 | 218,864 | 57,781 | — | 833,272 | ||||||||||
Gross Margin % | 23.0 | % | 17.5 | % | 20.2 | % | — | % | 21.1 | % | |||||
Selling, general and administrative expense | 205,484 | 118,716 | 8,596 | 41,784 | 374,580 | ||||||||||
Acquisition costs | — | — | — | 24,667 | 24,667 | ||||||||||
Depreciation and amortization | 158,871 | 73,274 | 27,898 | 9,474 | 269,517 | ||||||||||
Segment operating income/(loss) | 192,272 | 26,874 | 21,287 | (75,925 | ) | 164,508 | |||||||||
Equity in net income of unconsolidated subsidiaries | 1,842 | — | 63,767 | — | 65,609 | ||||||||||
Segment income | 194,114 | 26,874 | 85,054 | (75,925 | ) | 230,117 | |||||||||
Total other expense | (148,665 | ) | |||||||||||||
Income before income taxes | $ | 81,452 |
Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total | ||||||
Fiscal Year Ended January 2, 2016 | ||||||||||
Gross Margin % | 22.2 | % | 21.1 | % | 22.4 | % | — | 21.9 | % |
Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total | ||||||
Fiscal Year Ended January 3, 2015 | ||||||||||
Gross Margin % | 23.0 | % | 17.5 | % | 20.2 | % | — | 21.1 | % | |
Gross Margin % before inventory step-up | 23.6 | % | 20.4 | % | 20.3 | % | — | 22.3 | % |
Senior Notes: | |||
5.375 % Notes due 2022 | $ | 500,000 | |
Less unamortized deferred loan costs | (7,667 | ) | |
Carrying value of 5.375% Notes due 2022 | $ | 492,333 | |
4.75 % Notes due 2022 - Denominated in euros | $ | 543,840 | |
Less unamortized deferred loan costs | (8,956 | ) | |
Carrying value of 4.75% Notes due 2022 | $ | 534,884 | |
Amended Credit Agreement: | |||
Term Loan A | $ | 120,103 | |
Less unamortized deferred loan costs | (1,083 | ) | |
Carrying value of Term Loan A | $ | 119,020 | |
Term Loan B | $ | 583,500 | |
Less unamortized deferred loan costs | (6,298 | ) | |
Carrying value of Term Loan B | $ | 577,202 | |
Revolving Credit Facility: | |||
Maximum availability | $ | 1,000,000 | |
Borrowings outstanding | 5,280 | ||
Letters of credit issued | 26,585 | ||
Availability | $ | 968,135 | |
Other Debt | $ | 22,224 |
• | As of December 31, 2016, the Company had availability of $968.1 million under the revolving loan facility, taking into account an aggregate of $5.3 million outstanding borrowings and letters of credit issued of $26.6 million. |
• | As of December 31, 2016, the Company has borrowed all $350.0 million under the term loan A facility and repaid approximately CAD$46.4 million and $156.8 million, which when repaid, cannot be reborrowed. The term loan A facility is repayable in quarterly installments to commence on March 31, 2017 as follows: for the first eight quarters following December 16, 2016, 1.25% of the original principal amount of the term loan A facility outstanding on the Fourth Amendment date, for the ninth through sixteenth quarters following December 16, 2016, 1.875% of the original principal amount of the term loan A facility outstanding on the Fourth Amendment date, and for each quarterly installment after such sixteenth installment until December 16, 2021, 3.75% of the original principal amount of the term loan A facility outstanding on the Fourth Amendment date. The term loan A facility will mature on December 16, 2021, subject to a 91 day “springing” adjustment if the Term B loans are outstanding 91 days prior to the maturity date (January 6, 2021) of the Term B loans. |
• | As of December 31, 2016, the Company has borrowed all $1.3 billion under the terms of the term loan B facility and repaid approximately €510.0 million and $16.5 million, which when repaid, cannot be reborrowed. The term loan B facility is repayable in quarterly installments of 0.25% of the aggregate principal amount of the relevant term loan B facility on the last day of each March, June, September and December of each year commencing on the last day of each month falling on or after the last day of the first full quarter following January 6, 2014, and continuing until the last day of each quarter period ending immediately prior to January 6, 2021; and one final installment in the amount of the relevant term loan B facility then outstanding, due on January 6, 2021. The term loan B facility will mature on January 6, 2021. |
• | The interest rate applicable to any borrowings under the term loan A facility and the revolving loan facility will equal either LIBOR/euro interbank offered rate/CDOR plus 2.00% per annum or base rate/Canadian prime rate plus 1.00% per annum, subject to certain step-downs or step-ups based on the Company's total leverage ratio. The interest rate applicable to any borrowings under the term loan B facility will equal (a) for U.S. dollar term loans, either the base rate plus 1.50% or LIBOR plus 2.50%, and (b) for euro revolving loans, the euro interbank offered rate plus 2.75%, in each case subject to a step-down based on our total leverage ratio. For term loan B loans, the LIBOR rate cannot be less than 0.75%. |
Total | Less than 1 Year | 1 – 3 Years | 3 – 5 Years | More than 5 Years | |||||||||||
Contractual obligations(a): | |||||||||||||||
Long-term debt obligations (b) | $ | 1,752,723 | $ | 4,500 | $ | 15,242 | $ | 689,141 | $ | 1,043,840 | |||||
Operating lease obligations (c) | 146,867 | 39,481 | 66,688 | 26,679 | 14,019 | ||||||||||
Capital lease obligations (c) | 2,847 | 1,527 | 1,176 | 144 | — | ||||||||||
Estimated interest payable (d) | 379,401 | 79,723 | 158,003 | 129,878 | 11,797 | ||||||||||
Purchase commitments (e) | 100,314 | 100,314 | — | — | — | ||||||||||
Pension funding obligation (f) | 4,321 | 4,321 | — | — | — | ||||||||||
Other obligations | 19,522 | 18,818 | 403 | 75 | 226 | ||||||||||
Total | $ | 2,405,995 | $ | 248,684 | $ | 241,512 | $ | 845,917 | $ | 1,069,882 |
(a) | The above table does not reflect uncertain tax positions at December 31, 2016. The Company's uncertain tax position is approximately $4.7 million. |
(b) | Represents debt obligations outstanding as of December 31, 2016. See Note 10 to the consolidated financial statements. |
(c) | See Note 9 to the consolidated financial statements. |
(d) | Interest payable was calculated using the current rate for the debt that was outstanding as of December 31, 2016. |
(e) | Purchase commitments were determined based on specified contracts for natural gas, diesel fuel and finished product purchases. |
(f) | Pension funding requirements are determined annually based upon a third party actuarial estimate. The Company expects to make approximately $4.3 million in required contributions to domestic and foreign pension plans in fiscal 2017. The Company is not able to estimate pension funding requirements beyond the next twelve months. The accrued pension benefit liability was approximately $54.4 million at the end of fiscal 2016. The Company knows certain of the multiemployer pension plans that have not terminated to which it contributes and which are not administered by the Company were under-funded as of the latest available information, and while the Company has no ability to calculate a possible current liability for the under-funded multiemployer plan to which the Company contributes, the amounts could be material. |
Other commercial commitments: | |||
Standby letters of credit | $ | 26,585 | |
Foreign bank guarantees | 10,051 | ||
Total other commercial commitments: | $ | 36,636 |
Functional Currency | Contract Currency | Range of | U.S. | ||||||||
Type | Amount | Type | Amount | Hedge rates | Equivalent | ||||||
Brazilian real | 28,304 | Euro | 7,270 | 3.46 - 4.41 | $ | 8,695 | |||||
Brazilian real | 66,273 | U.S. dollar | 18,900 | 3.21 - 3.92 | 18,900 | ||||||
Euro | 150,394 | U.S. dollar | 166,377 | 1.05 - 1.13 | 166,377 | ||||||
Euro | 10,444 | Polish zloty | 47,000 | 4.42 - 4.51 | 11,029 | ||||||
Euro | 4,295 | Japanese yen | 505,320 | 114.37 - 122.50 | 4,536 | ||||||
Euro | 34,337 | Chinese renminbi | 254,639 | 7.42 | 36,260 | ||||||
Euro | 11,563 | Australian dollar | 16,700 | 1.44 | 12,211 | ||||||
Euro | 1,405 | British pound | 1,200 | .085 | 1,484 | ||||||
Polish zloty | 19,111 | Euro | 4,312 | 4.31 - 4.52 | 4,562 | ||||||
Japanese yen | 14,423 | U.S. dollar | 135 | 106.54 - 107.13 | 135 | ||||||
$ | 264,189 |
Page | |
ASSETS | December 31, 2016 | January 2, 2016 | |||||
Current assets: | |||||||
Cash and cash equivalents | $ | 114,564 | $ | 156,884 | |||
Restricted cash | 293 | 331 | |||||
Accounts receivable, less allowance for bad debts of $8,090 at December 31, 2016 and $9,732 at January 2, 2016 | 388,397 | 371,392 | |||||
Inventories | 330,815 | 344,583 | |||||
Prepaid expenses | 29,984 | 36,175 | |||||
Income taxes refundable | 7,479 | 11,963 | |||||
Other current assets | 21,770 | 10,460 | |||||
Total current assets | 893,302 | 931,788 | |||||
Property, plant and equipment, net | 1,515,575 | 1,508,167 | |||||
Intangible assets, less accumulated amortization of $301,187 at December 31, 2016 and $252,719 at January 2, 2016 | 711,927 | 782,349 | |||||
Goodwill | 1,225,893 | 1,233,102 | |||||
Investment in unconsolidated subsidiaries | 292,717 | 247,238 | |||||
Other assets | 43,613 | 41,623 | |||||
Deferred income taxes | 14,990 | 16,352 | |||||
$ | 4,698,017 | $ | 4,760,619 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 23,247 | $ | 45,166 | |||
Accounts payable, principally trade | 180,895 | 149,998 | |||||
Income taxes payable | 4,913 | 6,679 | |||||
Accrued expenses | 242,796 | 239,825 | |||||
Total current liabilities | 451,851 | 441,668 | |||||
Long-term debt, net of current portion | 1,727,696 | 1,885,851 | |||||
Other noncurrent liabilities | 96,114 | 97,809 | |||||
Deferred income taxes | 346,134 | 360,681 | |||||
Total liabilities | 2,621,795 | 2,786,009 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Common stock, $.01 par value; 250,000,000 shares authorized, 167,641,415 and 167,070,983 shares issued at December 31, 2016 and January 2, 2016, respectively | 1,676 | 1,671 | |||||
Additional paid-in capital | 1,499,431 | 1,488,783 | |||||
Treasury stock, at cost; 3,028,857 and 2,335,607 shares at December 31, 2016 and January 2, 2016, respectively | (40,909 | ) | (34,316 | ) | |||
Accumulated other comprehensive loss | (340,006 | ) | (335,918 | ) | |||
Retained earnings | 852,802 | 750,489 | |||||
Total Darling's stockholders’ equity | 1,972,994 | 1,870,709 | |||||
Noncontrolling interests | 103,228 | 103,901 | |||||
Total stockholders’ equity | 2,076,222 | 1,974,610 | |||||
$ | 4,698,017 | $ | 4,760,619 |
December 31, 2016 | January 2, 2016 | January 3, 2015 | |||||||||
Net sales | $ | 3,398,115 | $ | 3,397,446 | $ | 3,956,443 | |||||
Costs and expenses: | |||||||||||
Cost of sales and operating expenses | 2,641,734 | 2,654,025 | 3,123,171 | ||||||||
Selling, general and administrative expenses | 314,005 | 322,574 | 374,580 | ||||||||
Depreciation and amortization | 289,908 | 269,904 | 269,517 | ||||||||
Acquisition and integration costs | 401 | 8,299 | 24,667 | ||||||||
Total costs and expenses | 3,246,048 | 3,254,802 | 3,791,935 | ||||||||
Operating income | 152,067 | 142,644 | 164,508 | ||||||||
Other expense: | |||||||||||
Interest expense | (94,187 | ) | (105,530 | ) | (135,416 | ) | |||||
Foreign currency losses | (1,854 | ) | (4,911 | ) | (13,548 | ) | |||||
Other income/(expense), net | (3,866 | ) | (6,839 | ) | 299 | ||||||
Total other expense | (99,907 | ) | (117,280 | ) | (148,665 | ) | |||||
Equity in net income of unconsolidated subsidiaries | 70,379 | 73,416 | 65,609 | ||||||||
Income from operations before income taxes | 122,539 | 98,780 | 81,452 | ||||||||
Income taxes | 15,315 | 13,501 | 13,141 | ||||||||
Net income | 107,224 | 85,279 | 68,311 | ||||||||
Net income attributable to noncontrolling interests | (4,911 | ) | (6,748 | ) | (4,096 | ) | |||||
Net income attributable to Darling | $ | 102,313 | $ | 78,531 | $ | 64,215 | |||||
Net income per share: | |||||||||||
Basic | $ | 0.62 | $ | 0.48 | $ | 0.39 | |||||
Diluted | $ | 0.62 | $ | 0.48 | $ | 0.39 |
December 31, 2016 | January 2, 2016 | January 3, 2015 | |||||||||
Net income | $ | 107,224 | $ | 85,279 | $ | 68,311 | |||||
Other comprehensive income/(loss), net of tax: | |||||||||||
Foreign currency translation | (5,593 | ) | (162,436 | ) | (119,684 | ) | |||||
Pension adjustments | (1,016 | ) | 4,202 | (20,381 | ) | ||||||
Natural gas swap derivative adjustments | — | — | (113 | ) | |||||||
Corn option derivative adjustments | 625 | 1,767 | (1,259 | ) | |||||||
Total other comprehensive loss, net of tax | (5,984 | ) | (156,467 | ) | (141,437 | ) | |||||
Total comprehensive income/(loss) | 101,240 | (71,188 | ) | (73,126 | ) | ||||||
Comprehensive income attributable to noncontrolling interests | 3,015 | 9,139 | 10,296 | ||||||||
Comprehensive income/(loss) attributable to Darling | $ | 98,225 | $ | (80,327 | ) | $ | (83,422 | ) |
Common Stock | ||||||||||||||||||||||||||
Number of Outstanding Shares | $.01 par Value | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Stockholders' equity attributable to Darling | Non-controlling Interest | Total Stockholders' Equity | ||||||||||||||||||
Balances at December 28, 2013 | 164,267,425 | $ | 1,653 | $ | 1,454,250 | $ | (13,271 | ) | $ | (29,423 | ) | $ | 607,743 | $ | 2,020,952 | $ | — | $ | 2,020,952 | |||||||
Acquisition of noncontrolling interests | — | — | — | — | — | — | — | 90,919 | 90,919 | |||||||||||||||||
Net income | — | — | — | — | — | 64,215 | 64,215 | 4,096 | 68,311 | |||||||||||||||||
Distribution of noncontrolling interest earnings | — | — | — | — | — | — | — | (4,272 | ) | (4,272 | ) | |||||||||||||||
Additions to noncontrolling interests | — | — | — | — | — | — | — | 1,201 | 1,201 | |||||||||||||||||
Pension liability adjustments, net of tax | — | — | — | — | (20,381 | ) | — | (20,381 | ) | — | (20,381 | ) | ||||||||||||||
Natural gas swap derivative adjustment, net of tax | — | — | — | — | (113 | ) | — | (113 | ) | — | (113 | ) | ||||||||||||||
Corn option derivative adjustment, net of tax | — | — | — | — | (1,259 | ) | — | (1,259 | ) | — | (1,259 | ) | ||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (125,884 | ) | — | (125,884 | ) | 6,200 | (119,684 | ) | ||||||||||||||
Issuance of non-vested stock | 209,827 | 2 | 4,369 | — | — | — | 4,371 | — | 4,371 | |||||||||||||||||
Stock-based compensation | — | — | 9,993 | — | — | — | 9,993 | — | 9,993 | |||||||||||||||||
Tax benefits associated with stock-based compensation | — | — | 2,420 | — | — | — | 2,420 | — | 2,420 | |||||||||||||||||
Treasury stock | (507,552 | ) | — | — | (9,936 | ) | — | — | (9,936 | ) | — | (9,936 | ) | |||||||||||||
Issuance of common stock | 742,963 | 7 | 8,605 | — | — | — | 8,612 | — | 8,612 | |||||||||||||||||
Balances at January 3, 2015 | 164,712,663 | $ | 1,662 | $ | 1,479,637 | $ | (23,207 | ) | $ | (177,060 | ) | $ | 671,958 | $ | 1,952,990 | $ | 98,144 | $ | 2,051,134 | |||||||
Net income | — | — | — | — | — | 78,531 | 78,531 | 6,748 | 85,279 | |||||||||||||||||
Distribution of noncontrolling interest earnings | — | — | — | — | — | — | — | (3,295 | ) | (3,295 | ) | |||||||||||||||
Deductions to noncontrolling interests | — | — | — | — | — | — | — | (87 | ) | (87 | ) | |||||||||||||||
Pension liability adjustments, net of tax | — | — | — | — | 4,202 | — | 4,202 | — | 4,202 | |||||||||||||||||
Corn option derivative adjustment, net of tax | — | — | — | — | 1,767 | — | 1,767 | — | 1,767 | |||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (164,827 | ) | — | (164,827 | ) | 2,391 | (162,436 | ) | ||||||||||||||
Issuance of non-vested stock | 261,615 | 3 | 3,788 | — | — | — | 3,791 | — | 3,791 | |||||||||||||||||
Stock-based compensation | — | — | 2,083 | — | — | — | 2,083 | — | 2,083 | |||||||||||||||||
Tax benefits associated with stock-based compensation | — | — | (389 | ) | — | — | — | (389 | ) | — | (389 | ) | ||||||||||||||
Treasury stock | (834,477 | ) | — | — | (11,109 | ) | — | — | (11,109 | ) | — | (11,109 | ) | |||||||||||||
Issuance of common stock | 595,575 | 6 | 3,664 | — | — | — | 3,670 | — | 3,670 | |||||||||||||||||
Balances at January 2, 2016 | 164,735,376 | $ | 1,671 | $ | 1,488,783 | $ | (34,316 | ) | $ | (335,918 | ) | $ | 750,489 | $ | 1,870,709 | $ | 103,901 | $ | 1,974,610 | |||||||
Net income | — | — | — | — | — | 102,313 | 102,313 | 4,911 | 107,224 | |||||||||||||||||
Distribution of noncontrolling interest earnings | — | — | — | — | — | — | — | (3,688 | ) | (3,688 | ) | |||||||||||||||
Pension liability adjustments, net of tax | — | — | — | — | (1,016 | ) | — | (1,016 | ) | — | (1,016 | ) | ||||||||||||||
Corn option derivative adjustment, net of tax | — | — | — | — | 625 | — | 625 | — | 625 | |||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | (3,697 | ) | — | (3,697 | ) | (1,896 | ) | (5,593 | ) | |||||||||||||
Issuance of non-vested stock | 341,185 | 3 | 4,128 | — | — | — | 4,131 | — | 4,131 | |||||||||||||||||
Stock-based compensation | — | — | 4,081 | — | — | — | 4,081 | — | 4,081 | |||||||||||||||||
Tax benefits associated with stock-based compensation | — | — | (364 | ) | — | — | — | (364 | ) | — | (364 | ) | ||||||||||||||
Treasury stock | (693,250 | ) | — | — | (6,593 | ) | — | — | (6,593 | ) | — | (6,593 | ) | |||||||||||||
Issuance of common stock | 229,247 | 2 | 2,803 | — | — | — | 2,805 | — | 2,805 | |||||||||||||||||
Balances at December 31, 2016 | 164,612,558 | $ | 1,676 | $ | 1,499,431 | $ | (40,909 | ) | $ | (340,006 | ) | $ | 852,802 | $ | 1,972,994 | $ | 103,228 | $ | 2,076,222 |
December 31, 2016 | January 2, 2016 | January 3, 2015 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 107,224 | $ | 85,279 | $ | 68,311 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 289,908 | 269,904 | 269,517 | ||||||||
Deferred income taxes | (11,532 | ) | 7,807 | (21,216 | ) | ||||||
Loss/(gain) on sale of assets | 1,744 | 1,311 | (2,437 | ) | |||||||
Gain on insurance proceeds from insurance settlement | (356 | ) | (561 | ) | (1,550 | ) | |||||
Increase/(decrease) in long-term pension liability | (430 | ) | (4,811 | ) | 9,593 | ||||||
Stock-based compensation expense | 10,330 | 8,995 | 20,807 | ||||||||
Write-off deferred loan costs | 528 | 10,633 | 4,330 | ||||||||
Deferred loan cost amortization | 11,171 | 10,155 | 9,949 | ||||||||
Equity in net income of unconsolidated subsidiary | (70,379 | ) | (73,416 | ) | (65,609 | ) | |||||
Distributions of earnings from unconsolidated subsidiaries | 26,317 | 26,589 | — | ||||||||
Changes in operating assets and liabilities, net of effects from acquisitions: | |||||||||||
Accounts receivable | (22,796 | ) | 8,214 | 982 | |||||||
Income taxes refundable/payable | 2,839 | 12,377 | (22,451 | ) | |||||||
Inventories and prepaid expenses | 15,343 | 34,536 | (11,194 | ) | |||||||
Accounts payable and accrued expenses | 39,286 | (11,449 | ) | (31,223 | ) | ||||||
Other | (8,161 | ) | 35,396 | 47,363 | |||||||
Net cash provided by operating activities | 391,036 | 420,959 | 275,172 | ||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (243,523 | ) | (229,848 | ) | (228,918 | ) | |||||
Acquisitions, net of cash acquired | (8,511 | ) | (377 | ) | (2,094,400 | ) | |||||
Gross proceeds from sale of property, plant and equipment and other assets | 7,329 | 3,840 | 9,262 | ||||||||
Proceeds from insurance settlement | 1,537 | 561 | 1,550 | ||||||||
Payments related to routes and other intangibles | (23 | ) | (3,845 | ) | (11,288 | ) | |||||
Net cash used in investing activities | (243,191 | ) | (229,669 | ) | (2,323,794 | ) | |||||
Cash flows from financing activities: | |||||||||||
Proceeds from long-term debt | 36,327 | 590,745 | 1,842,184 | ||||||||
Payments on long-term debt | (204,428 | ) | (609,255 | ) | (333,762 | ) | |||||
Borrowings from revolving credit facility | 99,276 | 78,244 | 170,143 | ||||||||
Payments on revolving credit facility | (104,028 | ) | (166,755 | ) | (351,589 | ) | |||||
Net cash overdraft financing | 1,071 | (1,261 | ) | 4,077 | |||||||
Deferred loan costs | (3,879 | ) | (17,310 | ) | (45,223 | ) | |||||
Issuance of common stock | 188 | 171 | 416 | ||||||||
Repurchase of common stock | (5,000 | ) | (5,912 | ) | — | ||||||
Minimum withholding taxes paid on stock awards | (1,843 | ) | (4,874 | ) | (10,026 | ) | |||||
Excess tax benefit from stock-based compensation | — | — | 2,420 | ||||||||
Addition/(deductions) of noncontrolling interest | — | (87 | ) | 1,201 | |||||||
Distributions to noncontrolling interests | (1,552 | ) | (3,295 | ) | (4,272 | ) | |||||
Net cash provided/(used) in financing activities | (183,868 | ) | (139,589 | ) | 1,275,569 | ||||||
Effect of exchange rate changes on cash flows | (6,297 | ) | (3,601 | ) | 10,980 | ||||||
Net increase/(decrease) in cash and cash equivalents | (42,320 | ) | 48,100 | (762,073 | ) | ||||||
Cash and cash equivalents at beginning of year | 156,884 | 108,784 | 870,857 | ||||||||
Cash and cash equivalents at end of year | $ | 114,564 | $ | 156,884 | $ | 108,784 | |||||
Supplemental disclosure of cash flow information: | |||||||||||
Accrued capital expenditures | $ | (937 | ) | $ | 5,325 | $ | 1,340 | ||||
Cash paid during the year for: | |||||||||||
Interest, net of capitalized interest | $ | 82,094 | $ | 78,979 | $ | 104,834 | |||||
Income taxes, net of refunds | $ | 23,220 | $ | (3,035 | ) | $ | 28,315 | ||||
Non-cash financing activities | |||||||||||
Debt issued for service contract assets | $ | 10 | $ | 2,591 | $ | — | |||||
Contribution of assets to unconsolidated subsidiary | $ | 2,674 | $ | — | $ | — |
(b) | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
(1) | Basis of Presentation |
(2) | Fiscal Year |
(3) | Cash and Cash Equivalents |
(4) | Accounts Receivable and Allowance for Doubtful Accounts |
(5) | Inventories |
(6) | Long Lived Assets |
(7) | Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed of |
(8) | Goodwill |
(9) | Environmental Expenditures |
(10) | Income Taxes |
(11) | Earnings per Share |
Net Income per Common Share (in thousands, except per share data) | |||||||||||||||||||||||
December 31, | January 2, | January 3, | |||||||||||||||||||||
2016 | 2016 | 2015 | |||||||||||||||||||||
Income | Shares | Per-Share | Income | Shares | Per-Share | Income | Shares | Per-Share | |||||||||||||||
Basic: | |||||||||||||||||||||||
Net income attributable to Darling | $ | 102,313 | 164,600 | $ | 0.62 | $ | 78,531 | 165,031 | $ | 0.48 | $ | 64,215 | 164,627 | $ | 0.39 | ||||||||
Diluted: | |||||||||||||||||||||||
Effect of dilutive securities | |||||||||||||||||||||||
Add: Option shares in the money and dilutive effect of nonvested stock | — | 1,329 | — | — | 168 | — | — | 806 | — | ||||||||||||||
Less: Pro-forma treasury shares | — | (717) | — | — | (80) | — | — | (374) | — | ||||||||||||||
Diluted: | |||||||||||||||||||||||
Net income attributable to Darling | $ | 102,313 | 165,212 | $ | 0.62 | $ | 78,531 | 165,119 | $ | 0.48 | $ | 64,215 | 165,059 | $ | 0.39 |
(12) | Stock Based Compensation |
(13) | Use of Estimates |
(14) | Financial Instruments |
(15) | Derivative Instruments |
(16) | Revenue Recognition |
(17) | Related Party Transactions |
(18) | Foreign Currency Translation and Remeasurement |
(19) | Reclassification |
(20) | Subsequent Events |
Accounts receivable | $ | 337,278 | |
Inventory | 375,306 | ||
Prepaid expense | 23,135 | ||
Other current assets | 3,525 | ||
Deferred tax assets | 48,639 | ||
Property plant and equipment | 981,009 | ||
Identifiable intangibles | 464,193 | ||
Goodwill | 702,672 | ||
Investment in unconsolidated subsidiaries | 27,069 | ||
Other long term assets | 1,101 | ||
Accounts payable | (210,477 | ) | |
Current portion of long-term debt | (26,347 | ) | |
Accrued expenses | (149,345 | ) | |
Deferred tax liability | (350,003 | ) | |
Long Term debt obligations | (4,109 | ) | |
Other noncurrent liabilities | (57,721 | ) | |
Noncontrolling interests | (90,919 | ) | |
Purchase price, net of cash acquired of $91.2 million | $ | 2,075,006 |
December 31, 2016 | January 2, 2016 | ||||||
Finished product | $ | 156,542 | $ | 164,428 | |||
Work in process | 87,284 | 84,474 | |||||
Raw material | 39,859 | 48,401 | |||||
Supplies and other | 47,130 | 47,280 | |||||
$ | 330,815 | $ | 344,583 |
December 31, 2016 | January 2, 2016 | ||||||
Land | $ | 152,949 | $ | 156,422 | |||
Buildings and improvements | 464,957 | 448,620 | |||||
Machinery and equipment | 1,385,694 | 1,211,465 | |||||
Vehicles | 204,995 | 189,561 | |||||
Aircraft | 13,504 | 13,504 | |||||
Construction in process | 135,662 | 141,470 | |||||
2,357,761 | 2,161,042 | ||||||
Accumulated depreciation | (842,186 | ) | (652,875 | ) | |||
$ | 1,515,575 | $ | 1,508,167 |
December 31, 2016 | January 2, 2016 | ||||||
Indefinite Lived Intangible Assets | |||||||
Trade names | $ | 51,687 | $ | 52,466 | |||
51,687 | 52,466 | ||||||
Finite Lived Intangible Assets: | |||||||
Routes | 374,989 | 390,888 | |||||
Permits | 493,311 | 494,754 | |||||
Non-compete agreements | 3,638 | 6,996 | |||||
Trade names | 76,033 | 75,825 | |||||
Royalty, consulting, land use rights and leasehold | 13,456 | 14,139 | |||||
961,427 | 982,602 | ||||||
Accumulated Amortization: | |||||||
Routes | (105,934 | ) | (99,819 | ) | |||
Permits | (170,165 | ) | (134,752 | ) | |||
Non-compete agreements | (1,788 | ) | (4,628 | ) | |||
Trade names | (21,042 | ) | (11,959 | ) | |||
Royalty, consulting, land use rights and leasehold | (2,258 | ) | (1,561 | ) | |||
(301,187 | ) | (252,719 | ) | ||||
Total Intangible assets, less accumulated amortization | $ | 711,927 | $ | 782,349 |
Feed Ingredients | Food Ingredients | Fuel Ingredients | Total | |||||||||
Balance at January 3, 2015 | ||||||||||||
Goodwill | $ | 863,508 | $ | 346,153 | $ | 126,672 | $ | 1,336,333 | ||||
Accumulated impairment losses | (15,914 | ) | — | — | (15,914 | ) | ||||||
847,594 | 346,153 | 126,672 | 1,320,419 | |||||||||
Goodwill acquired during year | (259 | ) | — | 521 | 262 | |||||||
Foreign currency translation | (50,452 | ) | (22,768 | ) | (14,359 | ) | (87,579 | ) | ||||
Balance at January 2, 2016 | ||||||||||||
Goodwill | 812,797 | 323,385 | 112,834 | 1,249,016 | ||||||||
Accumulated impairment losses | (15,914 | ) | — | — | (15,914 | ) | ||||||
796,883 | 323,385 | 112,834 | 1,233,102 | |||||||||
Goodwill acquired during year | 827 | — | 2 | 829 | ||||||||
Foreign currency translation | (3 | ) | (6,377 | ) | (1,658 | ) | (8,038 | ) | ||||
Balance at December 31, 2016 | ||||||||||||
Goodwill | 813,621 | 317,008 | 111,178 | 1,241,807 | ||||||||
Accumulated impairment losses | (15,914 | ) | — | — | (15,914 | ) | ||||||
$ | 797,707 | $ | 317,008 | $ | 111,178 | $ | 1,225,893 |
(in thousands) | December 31, 2016 | December 31, 2015 | |||||
Assets: | |||||||
Total current assets | $ | 268,734 | $ | 261,444 | |||
Property, plant and equipment, net | 354,871 | 356,230 | |||||
Other assets | 12,164 | 3,034 | |||||
Total assets | $ | 635,769 | $ | 620,708 | |||
Liabilities and members' equity: | |||||||
Total current portion of long term debt | $ | 17,023 | $ | 62,023 | |||
Total other current liabilities | 23,200 | 19,935 | |||||
Total long term debt | 53,753 | 86,819 | |||||
Total other long term liabilities | 418 | 380 | |||||
Total members' equity | 541,375 | 451,551 | |||||
Total liabilities and member's equity | $ | 635,769 | $ | 620,708 |
Year Ended December 31, | ||||||||||
(in thousands) | 2016 | 2015 | 2014 | |||||||
Revenues: | ||||||||||
Operating revenues | $ | 527,670 | $ | 475,934 | $ | 487,834 | ||||
Expenses: | ||||||||||
Total costs and expenses less depreciation, amortization and accretion expense | 353,222 | 298,946 | 324,557 | |||||||
Depreciation, amortization and accretion expense | 27,821 | 19,714 | 18,186 | |||||||
Operating income | 146,627 | 157,274 | 145,091 | |||||||
Other income | 551 | 120 | 82 | |||||||
Interest and debt expense, net | (7,354 | ) | (13,604 | ) | (17,640 | ) | ||||
Net income | $ | 139,824 | $ | 143,790 | $ | 127,533 |
December 31, 2016 | January 2, 2016 | ||||||
Compensation and benefits | $ | 83,355 | $ | 79,087 | |||
Utilities and sewage | 16,446 | 16,671 | |||||
Accrued income, ad valorem, and franchise taxes | 19,179 | 13,711 | |||||
Reserve for self insurance, litigation, environmental and tax matters (Note 19) | 12,479 | 13,643 | |||||
Medical claims liability | 5,070 | 3,807 | |||||
Accrued operating expenses | 55,128 | 50,953 | |||||
Accrued interest payable | 15,961 | 16,060 | |||||
Other accrued expense | 35,178 | 45,893 | |||||
$ | 242,796 | $ | 239,825 |
Period Ending Fiscal | Operating Leases | Capital Leases | ||||
2017 | $ | 39,481 | $ | 1,527 | ||
2018 | 35,653 | 891 | ||||
2019 | 31,035 | 285 | ||||
2020 | 19,258 | 144 | ||||
2021 | 7,421 | — | ||||
Thereafter | 14,019 | — | ||||
$ | 146,867 | $ | 2,847 | |||
Less amounts representing interest | (145 | ) | ||||
Capital lease obligations included in current and long-term debt | $ | 2,702 |
December 31, 2016 | January 2, 2016 | ||||||
Amended Credit Agreement: | |||||||
Revolving Credit Facility ($5.3 million denominated in euro at December 31, 2016 and $9.4 million denominated in CAD at January 2, 2016) | $ | 5,280 | $ | 9,358 | |||
Term Loan A ($76.9 million and $97.1 million denominated in CAD at December 31, 2016 and January 2, 2016, respectively) | 120,103 | 277,181 | |||||
Less unamortized deferred loan costs | (1,083 | ) | (1,552 | ) | |||
Carrying value Term Loan A | 119,020 | 275,629 | |||||
Term Loan B | 583,500 | 589,500 | |||||
Less unamortized deferred loan costs | (6,298 | ) | (7,774 | ) | |||
Carrying value Term Loan B | 577,202 | 581,726 | |||||
5.375% Senior Notes due 2022 with effective interest of 5.72% | 500,000 | 500,000 | |||||
Less unamortized deferred loan costs | (7,667 | ) | (8,952 | ) | |||
Carrying value 5.375% Senior Notes due 2022 | 492,333 | 491,048 | |||||
4.75% Senior Notes due 2022 - Denominated in euro with effective interest of 5.10% | 543,840 | 560,912 | |||||
Less unamortized deferred loan costs - Denominated in euro | (8,956 | ) | (10,705 | ) | |||
Carrying value 4.75% Senior Notes due 2022 | 534,884 | 550,207 | |||||
Other Notes and Obligations | 22,224 | 23,049 | |||||
1,750,943 | 1,931,017 | ||||||
Less Current Maturities | 23,247 | 45,166 | |||||
$ | 1,727,696 | $ | 1,885,851 |
Contractual Debt Payment | |||
2017 | $ | 24,758 | |
2018 | 7,105 | ||
2019 | 9,661 | ||
2020 | 129,832 | ||
2021 | 559,525 | ||
thereafter | 1,044,066 | ||
$ | 1,774,947 |
December 31, 2016 | January 2, 2016 | ||||||
Accrued pension liability (Note 15) | $ | 53,152 | $ | 53,220 | |||
Reserve for self insurance, litigation, environmental and tax matters (Note 19) | 41,251 | 42,778 | |||||
Other | 1,711 | 1,811 | |||||
$ | 96,114 | $ | 97,809 |
December 31, 2016 | January 2, 2016 | January 3, 2015 | |||||||||
United States | $ | 48,869 | $ | 50,473 | $ | 58,972 | |||||
Foreign | 73,670 | 48,307 | 22,480 | ||||||||
Income from operations before income taxes | $ | 122,539 | $ | 98,780 | $ | 81,452 |
December 31, 2016 | January 2, 2016 | January 3, 2015 | |||||||||
Current: | |||||||||||
Federal | $ | 65 | $ | (21,775 | ) | $ | 1,134 | ||||
State | (332 | ) | 411 | (884 | ) | ||||||
Foreign | 27,992 | 29,871 | 24,770 | ||||||||
Total current | 27,725 | 8,507 | 25,020 | ||||||||
Deferred: | |||||||||||
Federal | (8,056 | ) | 13,057 | 886 | |||||||
State | (649 | ) | (1,521 | ) | 1,235 | ||||||
Foreign | (3,705 | ) | (6,542 | ) | (14,000 | ) | |||||
Total deferred | (12,410 | ) | 4,994 | (11,879 | ) | ||||||
$ | 15,315 | $ | 13,501 | $ | 13,141 |
December 31, 2016 | January 2, 2016 | January 3, 2015 | |||||||||
Computed "expected" tax expense | $ | 42,888 | $ | 34,573 | $ | 28,508 | |||||
Change in valuation allowance | 1,039 | 4,421 | 5,420 | ||||||||
Deferred tax on unremitted foreign earnings | 2,546 | 4,848 | 1,956 | ||||||||
Sub-Part F income | 6,159 | 4,923 | 3,786 | ||||||||
Foreign rate differential | (9,982 | ) | (5,653 | ) | (9,754 | ) | |||||
Biofuel tax incentives | (28,435 | ) | (28,143 | ) | (22,546 | ) | |||||
Non-deductible transaction costs | — | — | 4,107 | ||||||||
Other, net | 1,100 | (1,468 | ) | 1,664 | |||||||
$ | 15,315 | $ | 13,501 | $ | 13,141 |
December 31, 2016 | January 2, 2016 | ||||||
Deferred tax assets: | |||||||
Loss contingency reserves | $ | 11,998 | $ | 11,961 | |||
Employee benefits | 9,586 | 9,383 | |||||
Pension liability | 18,200 | 17,714 | |||||
Intangible assets amortization, including taxable goodwill | 2,317 | 2,947 | |||||
Net operating losses | 119,602 | 99,534 | |||||
Inventory | 8,523 | 7,934 | |||||
Other | 13,583 | 16,621 | |||||
Total gross deferred tax assets | 183,809 | 166,094 | |||||
Less valuation allowance | (20,150 | ) | (22,209 | ) | |||
Net deferred tax assets | 163,659 | 143,885 | |||||
Deferred tax liabilities: | |||||||
Intangible assets amortization, including taxable goodwill | (189,233 | ) | (182,748 | ) | |||
Property, plant and equipment depreciation | (207,729 | ) | (209,925 | ) | |||
Investment in DGD Joint Venture | (47,607 | ) | (46,239 | ) | |||
Tax on unremitted foreign earnings | (49,196 | ) | (48,106 | ) | |||
Other | (1,038 | ) | (1,196 | ) | |||
Total gross deferred tax liabilities | (494,803 | ) | (488,214 | ) | |||
Net deferred tax liability | $ | (331,144 | ) | $ | (344,329 | ) | |
Amounts reported on Consolidated Balance Sheets: | |||||||
Non-current deferred tax asset | $ | 14,990 | $ | 16,352 | |||
Non-current deferred tax liability | (346,134 | ) | (360,681 | ) | |||
Net deferred tax liability | $ | (331,144 | ) | $ | (344,329 | ) |
December 31, 2016 | January 2, 2016 | ||||||
Balance at beginning of Year | $ | 5,604 | $ | 8,130 | |||
Change in tax positions related to prior years | 99 | (1,953 | ) | ||||
Expiration of the Statute of Limitations | (1,036 | ) | (573 | ) | |||
Balance at end of year | $ | 4,667 | $ | 5,604 |
Number of shares | Weighted-avg. exercise price per share | Weighted-avg. remaining contractual life | ||||||
Options outstanding at December 28, 2013 | 906,251 | $ | 9.97 | 5.0 years | ||||
Granted | 163,078 | 19.94 | ||||||
Exercised | (343,550 | ) | 6.18 | |||||
Forfeited | (29,603 | ) | 16.89 | |||||
Expired | — | — | ||||||
Options outstanding at January 3, 2015 | 696,176 | 13.88 | 6.2 years | |||||
Granted | 422,386 | 14.76 | ||||||
Exercised | (131,653 | ) | 4.13 | |||||
Forfeited | (136,177 | ) | 16.68 | |||||
Expired | — | — | ||||||
Options outstanding at January 2, 2016 | 850,732 | 15.38 | 7.7 years | |||||
Granted | 1,547,184 | 9.53 | ||||||
Exercised | (28,000 | ) | 6.71 | |||||
Forfeited | (4,000 | ) | 16.20 | |||||
Expired | — | — | ||||||
Options outstanding at December 31, 2016 | 2,365,916 | $ | 11.65 | 8.4 years | ||||
Options exercisable at December 31, 2016 | 715,833 | $ | 15.18 | 6.8 years |
Weighted Average | 2016 | 2015 | 2014 | |
Expected dividend yield | 0.0% | 0.0% | 0.0% | |
Risk-free interest rate | 1.35% | 1.82% | 1.77% | |
Expected term | 5.76 years | 5.75 years | 5.75 years | |
Expected volatility | 34.4% | 38.0% | 43.7% | |
Fair value of options granted | $3.34 | $5.59 | $8.93 |
Non-Vested, RSU and PSU Shares | Weighted Average Grant Date Fair Value | |||||
Stock awards outstanding December 28, 2013 | 821,207 | $ | 14.93 | |||
Shares granted | 1,436,658 | 20.73 | ||||
Shares vested | (861,772 | ) | 16.43 | |||
Shares forfeited | (138,920 | ) | 19.90 | |||
Stock awards outstanding January 3, 2015 | 1,257,173 | 19.98 | ||||
Shares granted | 524,225 | 14.47 | ||||
Shares vested | (714,626 | ) | 17.91 | |||
Shares forfeited | (32,581 | ) | 19.65 | |||
Stock awards outstanding January 2, 2016 | 1,034,191 | 18.63 | ||||
Shares granted | 602,306 | 12.11 | ||||
Shares vested | (413,654 | ) | 15.11 | |||
Shares forfeited | (241,582 | ) | 20.86 | |||
Stock awards outstanding December 31, 2016 | 981,261 | $ | 15.56 |
Weighted Average | 2016 | |
Expected dividend yield | 0.0% | |
Risk-free interest rate | 0.80% | |
Expected term | 2.62 years | |
Expected volatility | 29.3% | |
Illiquidity discount | 16.1% |
LTIP PSU Shares | Weighted Average Grant Date Fair Value | |||||
LTIP PSU awards outstanding January 2, 2016 | — | $ | — | |||
Granted | 664,120 | 7.17 | ||||
Vested | — | — | ||||
Forfeited | — | — | ||||
LTIP PSU awards outstanding December 31, 2016 | 664,120 | $ | 7.17 |
Restricted stock and Restricted Stock Unit Shares | Weighted Average Grant Date Fair Value | |||||
Stock awards outstanding December 28, 2013 | 130,238 | $ | 10.75 | |||
Restricted shares granted | 25,678 | 19.67 | ||||
Restricted shares where the restriction lapsed | — | — | ||||
Restricted shares forfeited | — | — | ||||
Stock awards outstanding January 3, 2015 | 155,916 | 12.22 | ||||
Restricted shares granted | 46,910 | 13.80 | ||||
Restricted shares where the restriction lapsed | (50,322 | ) | 12.25 | |||
Restricted shares forfeited | — | — | ||||
Stock awards outstanding January 2, 2016 | 152,504 | 12.69 | ||||
Restricted shares granted | 43,421 | 14.51 | ||||
Restricted shares where the restriction lapsed | (81,031 | ) | 11.55 | |||
Restricted shares forfeited | (3,535 | ) | 14.51 | |||
Stock awards outstanding December 31, 2016 | 111,359 | $ | 14.18 |
Before-Tax | Tax (Expense) | Net-of-Tax | |||||||||
Amount | or Benefit | Amount | |||||||||
Year Ended January 3, 2015 | |||||||||||
Defined Benefit Pension Plans | |||||||||||
Actuarial (loss)/gain recognized | $ | (34,547 | ) | $ | 12,001 | $ | (22,546 | ) | |||
Amortization of actuarial loss | 2,078 | (806 | ) | 1,272 | |||||||
Actuarial prior service cost recognized | 1,140 | (261 | ) | 879 | |||||||
Amortization of prior service costs | 23 | (9 | ) | 14 | |||||||
Total defined benefit pension plans | (31,306 | ) | 10,925 | (20,381 | ) | ||||||
Natural gas swap derivatives | |||||||||||
Loss/(gain) reclassified to net income | (196 | ) | 76 | (120 | ) | ||||||
Gain/(loss) recognized in other comprehensive income (loss) | 11 | (4 | ) | 7 | |||||||
Total natural gas derivatives | (185 | ) | 72 | (113 | ) | ||||||
Corn option derivatives | |||||||||||
Loss/(gain) reclassified to net income | (3,868 | ) | 1,501 | (2,367 | ) | ||||||
Gain/(loss) recognized in other comprehensive income (loss) | 1,812 | (704 | ) | 1,108 | |||||||
Total corn options | (2,056 | ) | 797 | (1,259 | ) | ||||||
Foreign currency translation | |||||||||||
Other comprehensive income/(loss) | (119,684 | ) | — | (119,684 | ) | ||||||
Other comprehensive income/(loss) | $ | (153,231 | ) | $ | 11,794 | $ | (141,437 | ) | |||
Year Ended January 2, 2016 | |||||||||||
Defined Benefit Pension Plans | |||||||||||
Actuarial (loss)/gain recognized | $ | (3,822 | ) | $ | 1,499 | $ | (2,323 | ) | |||
Amortization of actuarial loss | 5,101 | (1,986 | ) | 3,115 | |||||||
Amortization of prior service costs | (67 | ) | 36 | (31 | ) | ||||||
Amortization of curtailment | (1,181 | ) | 328 | (853 | ) | ||||||
Amortization of settlement | 5,291 | (1,468 | ) | 3,823 | |||||||
Other | 471 | — | 471 | ||||||||
Total defined benefit pension plans | 5,793 | (1,591 | ) | 4,202 | |||||||
Corn option derivatives | |||||||||||
Loss/(gain) reclassified to net income | (1,517 | ) | 589 | (928 | ) | ||||||
Gain/(Loss) recognized in other comprehensive income | 4,405 | (1,710 | ) | 2,695 | |||||||
Total corn options | 2,888 | (1,121 | ) | 1,767 | |||||||
Foreign currency translation | (162,436 | ) | — | (162,436 | ) | ||||||
Other comprehensive income/(loss) | $ | (153,755 | ) | $ | (2,712 | ) | $ | (156,467 | ) | ||
Year Ended December 31, 2016 | |||||||||||
Defined Benefit Pension Plans | |||||||||||
Actuarial (loss)/gain recognized | $ | (5,257 | ) | $ | 1,396 | $ | (3,861 | ) | |||
Amortization of actuarial loss | 4,632 | (1,786 | ) | 2,846 | |||||||
Amortization of prior service costs | 36 | (12 | ) | 24 | |||||||
Amortization of curtailment | — | — | — | ||||||||
Amortization of settlement | (114 | ) | 45 | (69 | ) | ||||||
Other | 44 | — | 44 | ||||||||
Total defined benefit pension plans | (659 | ) | (357 | ) | (1,016 | ) | |||||
Corn option derivatives | |||||||||||
Loss/(gain) reclassified to net income | (3,868 | ) | 1,501 | (2,367 | ) | ||||||
Gain/(Loss) recognized in other comprehensive income | 4,889 | (1,897 | ) | 2,992 | |||||||
Total corn options | 1,021 | (396 | ) | 625 | |||||||
Foreign currency translation | (5,593 | ) | — | (5,593 | ) | ||||||
Other comprehensive income/(loss) | $ | (5,231 | ) | $ | (753 | ) | $ | (5,984 | ) |
Fiscal Year Ended | ||||||||||
December 31, 2016 | January 2, 2016 | January 3, 2015 | Statement of Operations Classification | |||||||
Derivative instruments | ||||||||||
Natural gas swap derivatives | $ | — | $ | — | $ | 196 | Cost of sales and operating expenses | |||
Corn option derivatives | 3,868 | 1,517 | 3,868 | Cost of sales and operating expenses | ||||||
3,868 | 1,517 | 4,064 | Total before tax | |||||||
(1,501 | ) | (589 | ) | (1,577 | ) | Income taxes | ||||
2,367 | 928 | 2,487 | Net of tax | |||||||
Defined benefit pension plans | ||||||||||
Amortization of prior service cost | $ | (36 | ) | $ | 67 | $ | (23 | ) | (a) | |
Amortization of actuarial loss | (4,632 | ) | (5,101 | ) | (2,078 | ) | (a) | |||
Amortization of curtailment | — | 1,181 | — | (a) | ||||||
Amortization of settlement | 114 | (5,291 | ) | — | (a) | |||||
(4,554 | ) | (9,144 | ) | (2,101 | ) | Total before tax | ||||
1,753 | 3,090 | 815 | Income taxes | |||||||
(2,801 | ) | (6,054 | ) | (1,286 | ) | Net of tax | ||||
Total reclassifications | $ | (434 | ) | $ | (5,126 | ) | $ | 1,201 | Net of tax |
(a) | These items are included in the computation of net periodic pension cost. See Note 15 Employee Benefit Plans for additional information. |
Fiscal Year Ended December 31, 2016 | |||||||||||||
Foreign Currency | Derivative | Defined Benefit | |||||||||||
Translation | Instruments | Pension Plans | Total | ||||||||||
Accumulated Other Comprehensive Income/(loss) January 2, 2016, attributable to Darling, net of tax | $ | (305,213 | ) | $ | 1,843 | $ | (32,548 | ) | $ | (335,918 | ) | ||
Other comprehensive gain before reclassifications | (5,593 | ) | 2,992 | (3,817 | ) | (6,418 | ) | ||||||
Amounts reclassified from accumulated other comprehensive income/(loss) | — | (2,367 | ) | 2,801 | 434 | ||||||||
Net current-period other comprehensive income | (5,593 | ) | 625 | (1,016 | ) | (5,984 | ) | ||||||
Noncontrolling interest | (1,896 | ) | — | — | (1,896 | ) | |||||||
Accumulated Other Comprehensive Income/(loss) December 31, 2016, attributable to Darling, net of tax | $ | (308,910 | ) | $ | 2,468 | $ | (33,564 | ) | $ | (340,006 | ) |
December 31, 2016 | January 2, 2016 | ||||||
Change in projected benefit obligation: | |||||||
Projected benefit obligation at beginning of period | $ | 182,276 | $ | 395,142 | |||
Acquisitions | — | — | |||||
Service cost | 2,549 | 6,638 | |||||
Interest cost | 6,950 | 10,536 | |||||
Employee contributions | 439 | 1,862 | |||||
Plan amendments | 101 | 90 | |||||
Actuarial loss/(gain) | 7,905 | (24,436 | ) | ||||
Benefits paid | (7,146 | ) | (11,197 | ) | |||
Effect of curtailment | (1,286 | ) | (9,545 | ) | |||
Effect of settlement | (953 | ) | (162,600 | ) | |||
Other | (1,545 | ) | (24,214 | ) | |||
Projected benefit obligation at end of period | 189,290 | 182,276 | |||||
Change in plan assets: | |||||||
Fair value of plan assets at beginning of period | 127,970 | 328,220 | |||||
Acquisitions | — | — | |||||
Actual return on plan assets | 10,138 | (17,888 | ) | ||||
Employer contributions | 5,250 | 9,612 | |||||
Employee contributions | 439 | 1,862 | |||||
Benefits paid | (7,146 | ) | (11,197 | ) | |||
Effect of settlement | (953 | ) | (162,600 | ) | |||
Other | (789 | ) | (20,039 | ) | |||
Fair value of plan assets at end of period | 134,909 | 127,970 | |||||
Funded status | (54,381 | ) | (54,306 | ) | |||
Net amount recognized | $ | (54,381 | ) | $ | (54,306 | ) | |
Amounts recognized in the consolidated balance sheets consist of: | |||||||
Noncurrent assets | $ | — | $ | — | |||
Current liability | (1,229 | ) | (1,086 | ) | |||
Noncurrent liability | (53,152 | ) | (53,220 | ) | |||
Net amount recognized | $ | (54,381 | ) | $ | (54,306 | ) | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||||||
Net actuarial loss | $ | 52,525 | $ | 51,921 | |||
Prior service cost/(credit) | 417 | 359 | |||||
Net amount recognized (a) | $ | 52,942 | $ | 52,280 |
(a) | Amounts do not include deferred taxes of $19.4 million and $19.7 million at December 31, 2016 and January 2, 2016, respectively. |
December 31, 2016 | January 2, 2016 | ||||||
Projected benefit obligation | $ | 189,290 | $ | 182,276 | |||
Accumulated benefit obligation | 181,340 | 171,530 | |||||
Fair value of plan assets | 134,909 | 127,970 |
December 31, 2016 | January 2, 2016 | January 3, 2015 | |||||||||
Service cost | $ | 2,549 | $ | 6,638 | $ | 5,208 | |||||
Interest cost | 6,950 | 10,536 | 13,214 | ||||||||
Expected return on plan assets | (7,552 | ) | (12,229 | ) | (14,439 | ) | |||||
Net amortization and deferral | 4,668 | 5,034 | 2,094 | ||||||||
Curtailment | (1,285 | ) | (1,181 | ) | 7 | ||||||
Settlement | (114 | ) | (2,353 | ) | — | ||||||
Net pension cost | $ | 5,216 | $ | 6,445 | $ | 6,084 |
2016 | 2015 | ||||||
Actuarial (loss)/gain recognized: | |||||||
Reclassification adjustments | $ | 2,846 | $ | 3,115 | |||
Actuarial (loss)/gain recognized during the period | (3,861 | ) | (2,323 | ) | |||
Amortization of settlement | (69 | ) | 3,823 | ||||
Prior service (cost) credit recognized: | |||||||
Reclassification adjustments | 24 | (31 | ) | ||||
Prior service cost arising during the period | — | — | |||||
Amortization of curtailment | — | (853 | ) | ||||
Other | 44 | 471 | |||||
$ | (1,016 | ) | $ | 4,202 |
2017 | |||
Net actuarial loss | $ | 4,754 | |
Prior service cost | 33 | ||
$ | 4,787 |
December 31, 2016 | January 2, 2016 | January 3, 2015 | |||
Discount rate | 3.81% | 4.13% | 2.79% | ||
Rate of compensation increase | 0.38% | 0.31% | 1.82% |
December 31, 2016 | January 2, 2016 | January 3, 2015 | |||
Discount rate | 3.55% | 3.47% | 4.15% | ||
Rate of increase in future compensation levels | 0.84% | 0.38% | 1.70% | ||
Expected long-term rate of return on assets | 6.52% | 6.62% | 5.06% |
Fixed Income | 35% - 80% |
Equities | 20% - 65% |
Total | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||
(In thousands of dollars) | Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||
Balances as January 2, 2016 | |||||||||||||||
Fixed Income: | |||||||||||||||
Long Term | $ | 21,079 | $ | 21,079 | $ | — | $ | — | |||||||
Short Term | 1,341 | 1,341 | — | — | |||||||||||
Equity Securities: | |||||||||||||||
Domestic equities | 34,864 | 34,864 | — | — | |||||||||||
International equities | 21,190 | 21,190 | — | — | |||||||||||
Insurance contracts | 8,121 | — | 5,801 | 2,320 | |||||||||||
Total categorized in fair value hierarchy | 86,595 | 78,474 | 5,801 | 2,320 | |||||||||||
Other investments measured at NAV | 41,375 | ||||||||||||||
Totals | $ | 127,970 | $ | 78,474 | $ | 5,801 | $ | 2,320 | |||||||
Balances as December 31, 2016 | |||||||||||||||
Fixed Income: | |||||||||||||||
Long Term | $ | 17,408 | $ | 17,408 | $ | — | $ | — | |||||||
Short Term | 2,825 | 2,825 | — | — | |||||||||||
Equity Securities: | |||||||||||||||
Domestic equities | 41,300 | 41,300 | — | — | |||||||||||
International equities | 24,403 | 24,403 | — | — | |||||||||||
Insurance contracts | 10,670 | — | 7,887 | 2,783 | |||||||||||
Total categorized in fair value hierarchy | 96,606 | 85,936 | 7,887 | 2,783 | |||||||||||
Other investments measured at NAV | 38,303 | ||||||||||||||
Totals | $ | 134,909 | $ | 85,936 | $ | 7,887 | $ | 2,783 |
Insurance | ||||
(in thousands of dollars) | Contracts | |||
Balance as of January 3, 2015 | $ | 194,909 | ||
Unrealized gains/(losses) relating to instruments still held in the reporting period. | (12,601 | ) | ||
Purchases, sales, and settlements | (161,402 | ) | ||
Exchange rate changes | (18,586 | ) | ||
Balance as of January 2, 2016 | 2,320 | |||
Unrealized gains/(losses) relating to instruments still held in the reporting period. | 316 | |||
Purchases, sales, and settlements | 244 | |||
Exchange rate changes | (97 | ) | ||
Balance as of December 31, 2016 | $ | 2,783 |
Year Ending | Pension Benefits | ||
2017 | $ | 9,854 | |
2018 | 8,438 | ||
2019 | 9,307 | ||
2020 | 9,849 | ||
2021 | 10,931 | ||
Years 2022 – 2026 | 58,887 |
Expiration | ||||||||||||||
Pension | EIN Pension | Pension Protection Act Zone Status | FIP/RP Status Pending/ | Contributions | Date of Collective Bargaining | |||||||||
Fund | Plan Number | 2016 | 2015 | Implemented | 2016 | 2015 | 2014 | Agreement | ||||||
Western Conference of Teamsters Pension Plan | 91-6145047 / 001 | Green | Green | No | $ | 1,456 | $ | 1,387 | $ | 1,384 | April 2020 (b) | |||
Central States, Southeast and Southwest Areas Pension Plan (a) | 36-6044243 / 001 | Red | Red | Yes | 934 | 858 | 876 | August 2018 (c) | ||||||
All other multiemployer plans | 983 | 986 | 1,042 | |||||||||||
Total Company Contributions | $ | 3,373 | $ | 3,231 | $ | 3,302 |
(a) | In July 2005 this plan received a 10 year extension from the IRS for amortizing unfunded liabilities. In April 2016 the IRS approved a modification of the amortization extension. |
(b) | The Company has several plants that participate in the Western Conference of Teamsters Pension Plan under collective bargaining agreements that require minimum funding contributions. Certain of these agreements have expired and are being renegotiated with others having expiration dates through April 1, 2020. |
(c) | The Company has several processing plants that participate in the Central States, Southeast and Southwest Areas Pension Plan under collective bargaining agreements that require minimum funding contributions. Certain of these agreements have expired and are being renegotiated with others having expiration dates through August 6, 2018. |
Functional Currency | Contract Currency | |||||
Type | Amount | Type | Amount | |||
Brazilian real | 28,304 | Euro | 7,270 | |||
Brazilian real | 66,273 | U.S. Dollar | 18,900 | |||
Euro | 150,394 | U.S. Dollar | 166,377 | |||
Euro | 10,444 | Polish zloty | 47,000 | |||
Euro | 4,295 | Japanese yen | 505,320 | |||
Euro | 34,337 | Chinese renminbi | 254,639 | |||
Euro | 11,563 | Australian dollar | 16,700 | |||
Euro | 1,405 | British pound | 1,200 | |||
Polish zloty | 19,111 | Euro | 4,312 | |||
Japanese yen | 14,423 | U.S. dollar | 135 |
Derivatives Designated | Balance Sheet | Asset Derivatives Fair Value | ||||||||
as Hedges | Location | December 31, 2016 | January 2, 2016 | |||||||
Corn options | Other current assets | $ | 4,235 | $ | 3,215 | |||||
Total derivatives designated as hedges | $ | 4,235 | $ | 3,215 | ||||||
Derivatives not Designated as Hedges | ||||||||||
Foreign currency contracts | Other current assets | $ | 8,939 | $ | 644 | |||||
Corn options and futures | Other current assets | 151 | 599 | |||||||
Total derivatives not designated as hedges | $ | 9,090 | $ | 1,243 | ||||||
Total asset derivatives | $ | 13,325 | $ | 4,458 |
Balance Sheet | Liability Derivatives Fair Value | |||||||||
Location | December 31, 2016 | January 2, 2016 | ||||||||
Derivatives not Designated as Hedges | ||||||||||
Foreign currency contracts | Accrued Expenses | $ | 608 | $ | 4,435 | |||||
Corn options and futures | Accrued Expenses | 122 | 2 | |||||||
Total derivatives not designated as hedges | $ | 730 | $ | 4,437 | ||||||
Total liability derivatives | $ | 730 | $ | 4,437 |
Derivatives Designated as Cash Flow Hedges | Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) (a) | Gain or (Loss) Reclassified From Accumulated OCI into Income (Effective Portion) (b) | Gain or (Loss) Recognized in Income On Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) (c) | ||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
Corn options | $ | 4,889 | $ | 4,405 | $ | 3,868 | $ | 1,517 | $ | 331 | $ | 68 | |||||||||||
Total | $ | 4,889 | $ | 4,405 | $ | 3,868 | $ | 1,517 | $ | 331 | $ | 68 |
(a) | Amount recognized in accumulated OCI (effective portion) is reported as accumulated other comprehensive gain of approximately $4.9 million and approximately $4.4 million recorded net of taxes of approximately $1.9 million and approximately $1.7 million for the year ended December 31, 2016 and January 2, 2016, respectively. |
(b) | Gains and (losses) reclassified from accumulated OCI into income (effective portion) for interest rate swaps and natural gas swaps is included in interest expense and cost of sales, respectively, in the Company’s consolidated statements of operations. |
(c) | Gains and (losses) recognized in income on derivatives (ineffective portion) for interest rate swaps and natural gas swaps is included in other income/(expense), net in the Company’s consolidated statements of operations. |
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges | ||||||||||||
For The Year Ended | ||||||||||||
Derivatives not designated as hedging instruments | Location | December 31, 2016 | January 2, 2016 | January 3, 2015 | ||||||||
Foreign exchange | Foreign currency loss/(gain) | $ | (1,542 | ) | $ | (27,321 | ) | $ | (21,162 | ) | ||
Foreign exchange | Selling, general and administrative expense | (8,543 | ) | 7,508 | 4,652 | |||||||
Corn options and futures | Net sales | 472 | (2 | ) | — | |||||||
Corn options and futures | Cost of sales and operating expenses | (1,411 | ) | (2,067 | ) | (71 | ) | |||||
Natural gas and heating oil swaps and options | Cost of sales and operating expenses | — | 132 | 982 | ||||||||
Heating oil swaps and options | Net sales | 455 | — | — | ||||||||
Soybean meal | Net sales | 7 | — | — | ||||||||
Total | $ | (10,562 | ) | $ | (21,750 | ) | $ | (15,599 | ) |
Fair Value Measurements at December 31, 2016 Using | ||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||
(In thousands of dollars) | Total | (Level 1) | (Level 2) | (Level 3) | ||||||||
Assets | ||||||||||||
Derivative assets | $ | 13,325 | $ | — | $ | 13,325 | $ | — | ||||
Total Assets | 13,325 | — | 13,325 | — | ||||||||
Liabilities | ||||||||||||
Derivative liabilities | 730 | — | 730 | — | ||||||||
5.375% Senior Notes | 520,300 | — | 520,300 | — | ||||||||
4.75% Senior Notes | 575,111 | — | 575,111 | — | ||||||||
Term Loan A | 120,403 | — | 120,403 | — | ||||||||
Term Loan B | 593,347 | — | 593,347 | — | ||||||||
Revolver | 5,201 | — | 5,201 | — | ||||||||
Total Liabilities | $ | 1,815,092 | $ | — | $ | 1,815,092 | $ | — |
Fair Value Measurements at January 2, 2016 Using | ||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||
(In thousands of dollars) | Total | (Level 1) | (Level 2) | (Level 3) | ||||||||
Assets | ||||||||||||
Derivative assets | $ | 4,458 | $ | — | $ | 4,458 | $ | — | ||||
Total Assets | 4,458 | — | 4,458 | — | ||||||||
Liabilities | ||||||||||||
Derivative liabilities | 4,437 | — | 4,437 | — | ||||||||
5.375% Senior Notes | 495,000 | — | 495,000 | — | ||||||||
4.75% Senior Notes | 541,280 | — | 541,280 | — | ||||||||
Term Loan A | 277,874 | — | 277,874 | — | ||||||||
Term Loan B | 577,710 | — | 577,710 | — | ||||||||
Revolver | 9,218 | — | 9,218 | — | ||||||||
Total Liabilities | $ | 1,905,519 | $ | — | $ | 1,905,519 | $ | — |
Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total | |||||||||||
Fiscal Year Ended December 31, 2016 | |||||||||||||||
Net Sales | $ | 2,089,145 | $ | 1,061,912 | $ | 247,058 | $ | — | $ | 3,398,115 | |||||
Cost of sales and operating expenses | 1,624,858 | 834,410 | 182,466 | — | 2,641,734 | ||||||||||
Gross Margin | 464,287 | 227,502 | 64,592 | — | 756,381 | ||||||||||
Selling, general and administrative expense | 169,648 | 96,170 | 6,895 | 41,292 | 314,005 | ||||||||||
Acquisition costs | — | — | — | 401 | 401 | ||||||||||
Depreciation and amortization | 178,845 | 70,120 | 28,531 | 12,412 | 289,908 | ||||||||||
Segment operating income/(loss) | 115,794 | 61,212 | 29,166 | (54,105 | ) | 152,067 | |||||||||
Equity in net income of unconsolidated subsidiaries | 467 | — | 69,912 | — | 70,379 | ||||||||||
Segment income | 116,261 | 61,212 | 99,078 | (54,105 | ) | 222,446 | |||||||||
Total other expense | (99,907 | ) | |||||||||||||
Income before income taxes | $ | 122,539 | |||||||||||||
Segment assets at December 31, 2016 | $ | 2,464,509 | $ | 1,414,409 | $ | 657,637 | $ | 161,462 | $ | 4,698,017 |
Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total | |||||||||||
Fiscal Year Ended January 2, 2016 | |||||||||||||||
Net Sales | $ | 2,074,333 | $ | 1,094,918 | $ | 228,195 | $ | — | $ | 3,397,446 | |||||
Cost of sales and operating expenses | 1,613,402 | 863,562 | 177,061 | — | 2,654,025 | ||||||||||
Gross Margin | 460,931 | 231,356 | 51,134 | — | 743,421 | ||||||||||
Selling, general and administrative expense | 178,624 | 103,301 | 7,264 | 33,385 | 322,574 | ||||||||||
Acquisition costs | — | — | — | 8,299 | 8,299 | ||||||||||
Depreciation and amortization | 165,854 | 66,817 | 26,711 | 10,522 | 269,904 | ||||||||||
Segment operating income/(loss) | 116,453 | 61,238 | 17,159 | (52,206 | ) | 142,644 | |||||||||
Equity in net income of unconsolidated subsidiaries | 1,521 | — | 71,895 | — | 73,416 | ||||||||||
Segment income | 117,974 | 61,238 | 89,054 | (52,206 | ) | 216,060 | |||||||||
Total other expense | (117,280 | ) | |||||||||||||
Income before income taxes | $ | 98,780 | |||||||||||||
Segment assets at January 2, 2016 | $ | 2,438,869 | $ | 1,448,014 | $ | 631,968 | $ | 241,768 | $ | 4,760,619 |
Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total | |||||||||||
Fiscal Year Ended January 3, 2015 | |||||||||||||||
Net Sales | $ | 2,421,462 | $ | 1,248,352 | $ | 286,629 | $ | — | $ | 3,956,443 | |||||
Cost of sales and operating expenses | 1,864,835 | 1,029,488 | 228,848 | — | 3,123,171 | ||||||||||
Gross Margin | 556,627 | 218,864 | 57,781 | — | 833,272 | ||||||||||
Selling, general and administrative expense | 205,484 | 118,716 | 8,596 | 41,784 | 374,580 | ||||||||||
Acquisition costs | — | — | — | 24,667 | 24,667 | ||||||||||
Depreciation and amortization | 158,871 | 73,274 | 27,898 | 9,474 | 269,517 | ||||||||||
Segment operating income/(loss) | 192,272 | 26,874 | 21,287 | (75,925 | ) | 164,508 | |||||||||
Equity in net income of unconsolidated subsidiaries | 1,842 | — | 63,767 | — | 65,609 | ||||||||||
Segment income | 194,114 | 26,874 | 85,054 | (75,925 | ) | 230,117 | |||||||||
Total other expense | (148,665 | ) | |||||||||||||
Income before income taxes | $ | 81,452 | |||||||||||||
December 31, 2016 | January 2, 2016 | January 3, 2015 | |||||||||
Depreciation and amortization: | |||||||||||
Feed Ingredients | $ | 178,845 | $ | 165,854 | $ | 158,871 | |||||
Food Ingredients | 70,120 | 66,817 | 73,274 | ||||||||
Fuel Ingredients | 28,531 | 26,711 | 27,898 | ||||||||
Corporate Activities | 12,412 | 10,522 | 9,474 | ||||||||
Total | $ | 289,908 | $ | 269,904 | $ | 269,517 | |||||
Capital expenditures: | |||||||||||
Feed Ingredients | $ | 167,313 | $ | 153,894 | $ | 135,923 | |||||
Food Ingredients | 50,020 | 49,066 | 61,657 | ||||||||
Fuel Ingredients | 22,323 | 19,478 | 21,392 | ||||||||
Corporate Activities | 3,867 | 7,410 | 9,946 | ||||||||
Total (a) | $ | 243,523 | $ | 229,848 | $ | 228,918 |
(a) | Excludes the immaterial capital assets acquired in fiscal 2016 and fiscal 2015 and the VION Acquisition and Custom Blenders acquisition in fiscal 2014 of approximately $984.2 million. |
December 31, 2016 | January 2, 2016 | January 3, 2015 | |||||||||
North America | $ | 1,817,659 | $ | 1,951,421 | $ | 2,131,978 | |||||
Europe | 1,225,397 | 1,066,779 | 1,438,320 | ||||||||
China | 218,480 | 234,978 | 229,876 | ||||||||
South America | 61,276 | 68,226 | 73,241 | ||||||||
Other | 75,303 | 76,042 | 83,028 | ||||||||
Total | $ | 3,398,115 | $ | 3,397,446 | $ | 3,956,443 |
FY 2016 | FY 2015 | |||||
Long-Lived Assets | Long-Lived Assets | |||||
North America | $ | 2,411,489 | $ | 2,375,919 | ||
Europe | 1,158,087 | 1,215,341 | ||||
China | 152,150 | 169,832 | ||||
South America | 74,837 | 60,396 | ||||
Other | 8,152 | 7,343 | ||||
Total | $ | 3,804,715 | $ | 3,828,831 |
Year Ended December 31, 2016 | |||||||||||||||
First Quarter (a) | Second Quarter (a) | Third Quarter | Fourth Quarter (b) | ||||||||||||
Net sales | $ | 779,641 | $ | 877,341 | $ | 853,856 | $ | 887,277 | |||||||
Operating income | 26,692 | 54,467 | 35,528 | 35,380 | |||||||||||
Income from operations before income taxes | 4,526 | 41,974 | 28,146 | 47,893 | |||||||||||
Net income | 2,663 | 33,991 | 28,890 | 41,680 | |||||||||||
Net (income)/loss attributable to minority interests | (1,584 | ) | (1,992 | ) | (196 | ) | (1,139 | ) | |||||||
Net income/(loss) attributable to Darling | 1,079 | 31,999 | 28,694 | 40,541 | |||||||||||
Basic earnings per share | 0.01 | 0.19 | 0.17 | 0.25 | |||||||||||
Diluted earnings per share | 0.01 | 0.19 | 0.17 | 0.25 |
(a) | Included in net income are $0.3 million in integration costs in the first quarter of fiscal 2016, $0.1 million in integration costs in the second quarter of fiscal 2016 primarily relating to the integration of the Company's Canadian subsidiary Rothsay (“Rothsay”). |
(b) | Included in net income is approximately $5.6 million related to a recorded insurance settlement gain in the Netherlands relating to a December 2015 casualty fire. |
Year Ended January 2, 2016 | |||||||||||||||
First Quarter (c) | Second Quarter (c), (d) | Third Quarter (c) | Fourth Quarter (c), (d) | ||||||||||||
Net sales | $ | 874,694 | $ | 859,315 | $ | 853,762 | $ | 809,675 | |||||||
Operating income | 31,825 | 39,292 | 38,808 | 32,719 | |||||||||||
Income from operations before income taxes | 3,939 | 9,602 | 502 | 84,737 | |||||||||||
Net income | 1,824 | 4,937 | (7,357 | ) | 85,875 | ||||||||||
Net (income)/loss attributable to minority interests | (1,715 | ) | (1,857 | ) | (1,730 | ) | (1,446 | ) | |||||||
Net income/(loss) attributable to Darling | 109 | 3,080 | (9,087 | ) | 84,429 | ||||||||||
Basic earnings per share | — | 0.02 | (0.06 | ) | 0.51 | ||||||||||
Diluted earnings per share | — | 0.02 | (0.06 | ) | 0.51 |
(c) | Included in net income are $5.3 million in integration costs in the first quarter of fiscal 2015, $1.2 million in integration costs in the second quarter of fiscal 2015, $1.3 million in integration costs in the third quarter of fiscal 2015 and $0.5 million in the fourth quarter of fiscal 2015 primarily relating to the integration of Darling Ingredients International and Rothsay. |
(d) | Included in net income in the second quarter of fiscal 2015 is approximately $10.6 million for the write-off of deferred loan costs resulting from the payoff of the Euro Term Loan B. Additionally, included in net income for the fourth quarter of fiscal 2015 were the Company's portion of all blenders tax credit recorded by the DGD Joint Venture and the Company's other processing facilities, which amounted to approximately$85.4 million. |
Parent | Guarantors | Non-guarantors | Eliminations | Consolidated | |||||||||||
ASSETS | |||||||||||||||
Cash and cash equivalents | $ | 1,470 | $ | 5,754 | $ | 107,340 | $ | — | $ | 114,564 | |||||
Restricted cash | 103 | — | 190 | — | 293 | ||||||||||
Accounts receivable | 39,209 | 97,220 | 339,251 | (87,283 | ) | 388,397 | |||||||||
Inventories | 16,573 | 85,890 | 228,352 | — | 330,815 | ||||||||||
Income taxes refundable | 3,566 | — | 3,913 | — | 7,479 | ||||||||||
Prepaid expenses | 11,152 | 2,769 | 16,063 | — | 29,984 | ||||||||||
Other current assets | 5,859 | 3,165 | 19,221 | (6,475 | ) | 21,770 | |||||||||
Total current assets | 77,932 | 194,798 | 714,330 | (93,758 | ) | 893,302 | |||||||||
Investment in subsidiaries | 4,296,200 | 1,154,398 | 909,263 | (6,359,861 | ) | — | |||||||||
Property, plant and equipment, net | 233,456 | 497,312 | 784,807 | — | 1,515,575 | ||||||||||
Intangible assets, net | 13,746 | 291,724 | 406,457 | — | 711,927 | ||||||||||
Goodwill | 21,860 | 549,960 | 654,073 | — | 1,225,893 | ||||||||||
Investment in unconsolidated subsidiaries | 1,438 | — | 291,279 | — | 292,717 | ||||||||||
Other assets | 36,063 | 396,222 | 160,505 | (549,177 | ) | 43,613 | |||||||||
Deferred income taxes | — | — | 14,990 | — | 14,990 | ||||||||||
$ | 4,680,695 | $ | 3,084,414 | $ | 3,935,704 | $ | (7,002,796 | ) | $ | 4,698,017 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||
Current portion of long-term debt | $ | 4,220 | $ | — | $ | 25,502 | $ | (6,475 | ) | $ | 23,247 | ||||
Accounts payable | 116,075 | 18,142 | 130,718 | (84,040 | ) | 180,895 | |||||||||
Income taxes payable | (383 | ) | 373 | 4,923 | — | 4,913 | |||||||||
Accrued expenses | 86,581 | 33,834 | 125,624 | (3,243 | ) | 242,796 | |||||||||
Total current liabilities | 206,493 | 52,349 | 286,767 | (93,758 | ) | 451,851 | |||||||||
Long-term debt, net of current portion | 1,109,523 | — | 1,167,349 | (549,176 | ) | 1,727,696 | |||||||||
Other noncurrent liabilities | 63,072 | — | 33,042 | — | 96,114 | ||||||||||
Deferred income taxes | 140,543 | — | 205,591 | — | 346,134 | ||||||||||
Total liabilities | 1,519,631 | 52,349 | 1,692,749 | (642,934 | ) | 2,621,795 | |||||||||
Total stockholders' equity | 3,161,064 | 3,032,065 | 2,242,955 | (6,359,862 | ) | 2,076,222 | |||||||||
$ | 4,680,695 | $ | 3,084,414 | $ | 3,935,704 | $ | (7,002,796 | ) | $ | 4,698,017 |
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 tax 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 |
Parent | Guarantors | Non-guarantors | Eliminations | Consolidated | |||||||||||
Net sales | $ | 501,856 | $ | 1,341,925 | $ | 1,752,844 | $ | (198,510 | ) | $ | 3,398,115 | ||||
Cost and expenses: | |||||||||||||||
Cost of sales and operating expenses | 392,876 | 1,085,582 | 1,361,786 | (198,510 | ) | 2,641,734 | |||||||||
Selling, general and administrative expenses | 130,573 | 51,029 | 132,403 | — | 314,005 | ||||||||||
Depreciation and amortization | 41,106 | 105,261 | 143,541 | — | 289,908 | ||||||||||
Acquisition and integration costs | — | — | 401 | — | 401 | ||||||||||
Total costs and expenses | 564,555 | 1,241,872 | 1,638,131 | (198,510 | ) | 3,246,048 | |||||||||
Operating income | (62,699 | ) | 100,053 | 114,713 | — | 152,067 | |||||||||
Interest expense | (60,971 | ) | 17,492 | (50,708 | ) | — | (94,187 | ) | |||||||
Foreign currency gains/(losses) | 122 | (283 | ) | (1,693 | ) | — | (1,854 | ) | |||||||
Other income/(expense), net | (13,538 | ) | 106 | 9,566 | — | (3,866 | ) | ||||||||
Equity in net income of unconsolidated subsidiaries | (1,236 | ) | — | 71,615 | — | 70,379 | |||||||||
Earnings in investments in subsidiaries | 223,347 | — | — | (223,347 | ) | — | |||||||||
Income/(loss) from operations before taxes | 85,025 | 117,368 | 143,493 | (223,347 | ) | 122,539 | |||||||||
Income taxes (benefit) | (17,288 | ) | 14,669 | 17,934 | — | 15,315 | |||||||||
Net (income)/loss attributable to noncontrolling interests | — | — | (4,911 | ) | — | (4,911 | ) | ||||||||
Net income/(loss) attributable to Darling | $ | 102,313 | $ | 102,699 | $ | 120,648 | $ | (223,347 | ) | $ | 102,313 |
Parent | Guarantors | Non-guarantors | Eliminations | Consolidated | |||||||||||
Net sales | $ | 475,213 | $ | 1,363,279 | $ | 1,759,800 | $ | (200,846 | ) | $ | 3,397,446 | ||||
Cost and expenses: | |||||||||||||||
Cost of sales and operating expenses | 369,928 | 1,108,864 | 1,376,079 | (200,846 | ) | 2,654,025 | |||||||||
Selling, general and administrative expenses | 122,509 | 55,691 | 144,374 | — | 322,574 | ||||||||||
Depreciation and amortization | 34,889 | 98,400 | 136,615 | — | 269,904 | ||||||||||
Acquisition and integration costs | 3,177 | — | 5,122 | — | 8,299 | ||||||||||
Total costs and expenses | 530,503 | 1,262,955 | 1,662,190 | (200,846 | ) | 3,254,802 | |||||||||
Operating income | (55,290 | ) | 100,324 | 97,610 | — | 142,644 | |||||||||
Interest expense | (60,945 | ) | 18,839 | (63,424 | ) | — | (105,530 | ) | |||||||
Foreign currency gains/(losses) | (123 | ) | (1,649 | ) | (3,139 | ) | — | (4,911 | ) | ||||||
Other income/(expense), net | (22,455 | ) | 435 | 15,181 | — | (6,839 | ) | ||||||||
Equity in net income of unconsolidated subsidiaries | — | — | 73,416 | — | 73,416 | ||||||||||
Earnings in investments in subsidiaries | 198,371 | — | — | (198,371 | ) | — | |||||||||
Income/(loss) from operations before taxes | 59,558 | 117,949 | 119,644 | (198,371 | ) | 98,780 | |||||||||
Income taxes (benefit) | (18,973 | ) | 16,121 | 16,353 | — | 13,501 | |||||||||
Net (income)/loss attributable to noncontrolling interests | — | — | (6,748 | ) | — | (6,748 | ) | ||||||||
Net income/(loss) attributable to Darling | $ | 78,531 | $ | 101,828 | $ | 96,543 | $ | (198,371 | ) | $ | 78,531 |
Parent | Guarantors | Non-guarantors | Eliminations | Consolidated | |||||||||||
Net sales | $ | 557,316 | $ | 1,620,054 | $ | 2,063,310 | $ | (284,237 | ) | $ | 3,956,443 | ||||
Cost and expenses: | |||||||||||||||
Cost of sales and operating expenses | 421,883 | 1,330,038 | 1,655,487 | (284,237 | ) | 3,123,171 | |||||||||
Selling, general and administrative expenses | 145,258 | 54,070 | 175,252 | — | 374,580 | ||||||||||
Depreciation and amortization | 31,183 | 83,957 | 154,377 | — | 269,517 | ||||||||||
Acquisition costs | 20,410 | — | 4,257 | — | 24,667 | ||||||||||
Total costs and expenses | 618,734 | 1,468,065 | 1,989,373 | (284,237 | ) | 3,791,935 | |||||||||
Operating income | (61,418 | ) | 151,989 | 73,937 | — | 164,508 | |||||||||
Interest expense | (97,912 | ) | 21,231 | (58,554 | ) | (181 | ) | (135,416 | ) | ||||||
Foreign currency gains/(losses) | (12,244 | ) | (417 | ) | (887 | ) | — | (13,548 | ) | ||||||
Other income/(expense), net | (3,717 | ) | (19 | ) | 3,854 | 181 | 299 | ||||||||
Equity in net income of unconsolidated subsidiary | — | — | 65,609 | — | 65,609 | ||||||||||
Earnings in investments in subsidiaries | 223,790 | — | — | (223,790 | ) | — | |||||||||
Income/(loss) from operations before taxes | 48,499 | 172,784 | 83,959 | (223,790 | ) | 81,452 | |||||||||
Income taxes (benefit) | (15,716 | ) | 17,534 | 11,323 | — | 13,141 | |||||||||
Net (income)/loss attributable to noncontrolling interests | — | — | (4,096 | ) | — | (4,096 | ) | ||||||||
Net income/(loss) attributable to Darling | $ | 64,215 | $ | 155,250 | $ | 68,540 | $ | (223,790 | ) | $ | 64,215 |
Parent | Guarantors | Non-guarantors | Eliminations | Consolidated | |||||||||||
Net income | $ | 107,224 | $ | 102,699 | $ | 120,648 | $ | (223,347 | ) | $ | 107,224 | ||||
Other comprehensive income/(loss), net of tax: | |||||||||||||||
Foreign currency translation | — | — | (5,593 | ) | — | (5,593 | ) | ||||||||
Pension adjustments | 1,766 | — | (2,782 | ) | — | (1,016 | ) | ||||||||
Corn option derivative adjustments | 625 | — | — | — | 625 | ||||||||||
Total other comprehensive income, net of tax | 2,391 | — | (8,375 | ) | — | (5,984 | ) | ||||||||
Total comprehensive income/(loss) | 109,615 | 102,699 | 112,273 | (223,347 | ) | 101,240 | |||||||||
Comprehensive income attributable to noncontrolling interests | — | — | 3,015 | — | $ | 3,015 | |||||||||
Comprehensive income/(loss) attributable to Darling | $ | 109,615 | $ | 102,699 | $ | 109,258 | $ | (223,347 | ) | $ | 98,225 |
Parent | Guarantors | Non-guarantors | Eliminations | Consolidated | |||||||||||
Net income | $ | 85,279 | $ | 101,828 | $ | 96,543 | $ | (198,371 | ) | $ | 85,279 | ||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Foreign currency translation | — | — | (162,436 | ) | — | (162,436 | ) | ||||||||
Pension adjustments | 83 | 109 | 4,010 | — | 4,202 | ||||||||||
Corn option derivative adjustments | 1,767 | — | — | — | 1,767 | ||||||||||
Total other comprehensive income, net of tax | 1,850 | 109 | (158,426 | ) | — | (156,467 | ) | ||||||||
Total comprehensive income (loss) | $ | 87,129 | $ | 101,937 | $ | (61,883 | ) | $ | (198,371 | ) | $ | (71,188 | ) | ||
Comprehensive income attributable to noncontrolling interests | — | — | 9,139 | — | 9,139 | ||||||||||
Comprehensive income/(loss) attributable to Darling | $ | 87,129 | $ | 101,937 | $ | (71,022 | ) | $ | (198,371 | ) | $ | (80,327 | ) |
Parent | Guarantors | Non-guarantors | Eliminations | Consolidated | |||||||||||
Net income | $ | 68,311 | $ | 155,250 | $ | 68,540 | $ | (223,790 | ) | $ | 68,311 | ||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Foreign currency translation | — | — | (119,684 | ) | — | (119,684 | ) | ||||||||
Pension adjustments | (11,844 | ) | (34 | ) | (8,503 | ) | — | (20,381 | ) | ||||||
Natural gas swap derivative adjustments | (113 | ) | — | — | — | (113 | ) | ||||||||
Corn option derivative adjustments | (1,259 | ) | — | — | — | (1,259 | ) | ||||||||
Total other comprehensive income, net of tax | (13,216 | ) | (34 | ) | (128,187 | ) | — | (141,437 | ) | ||||||
Total comprehensive income (loss) | $ | 55,095 | $ | 155,216 | $ | (59,647 | ) | $ | (223,790 | ) | $ | (73,126 | ) | ||
Comprehensive income attributable to noncontrolling interests | — | — | 10,296 | — | 10,296 | ||||||||||
Comprehensive income/(loss) attributable to Darling | $ | 55,095 | $ | 155,216 | $ | (69,943 | ) | $ | (223,790 | ) | $ | (83,422 | ) |
Parent | Guarantors | Non-guarantors | Eliminations | Consolidated | |||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 107,224 | $ | 102,699 | $ | 120,648 | $ | (223,347 | ) | $ | 107,224 | ||||
Earnings in investments in subsidiaries | (223,347 | ) | — | — | 223,347 | — | |||||||||
Other operating cash flows | 317,040 | (100,970 | ) | 67,742 | — | 283,812 | |||||||||
Net cash provided/(used) by operating activities | 200,917 | 1,729 | 188,390 | — | 391,036 | ||||||||||
Cash flows from investing activities: | |||||||||||||||
Capital expenditures | (51,330 | ) | (91,340 | ) | (100,853 | ) | — | (243,523 | ) | ||||||
Acquisitions, net of cash acquired | — | — | (8,511 | ) | — | (8,511 | ) | ||||||||
Investment in subsidiaries and affiliates | — | (12,754 | ) | — | 12,754 | — | |||||||||
Note receivable from affiliates | — | 103,056 | (103,056 | ) | — | — | |||||||||
Gross proceeds from sale of property, plant and equipment and other assets | 2,784 | 1,070 | 3,475 | — | 7,329 | ||||||||||
Proceeds from insurance settlements | — | — | 1,537 | — | 1,537 | ||||||||||
Payments related to routes and other intangibles | — | — | (23 | ) | — | (23 | ) | ||||||||
Net cash provide/(used) in investing activities | (48,546 | ) | 32 | (207,431 | ) | 12,754 | (243,191 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from long-term debt | — | — | 36,327 | — | 36,327 | ||||||||||
Payments on long-term debt | (143,935 | ) | — | (60,493 | ) | — | (204,428 | ) | |||||||
Borrowings from revolving credit facility | 94,000 | — | 5,276 | — | 99,276 | ||||||||||
Payments on revolving credit facility | (94,000 | ) | — | (10,028 | ) | — | (104,028 | ) | |||||||
Net overdraft financing | — | — | 1,071 | — | 1,071 | ||||||||||
Deferred loan costs | (3,879 | ) | — | — | — | (3,879 | ) | ||||||||
Issuance of common stock | 188 | — | — | — | 188 | ||||||||||
Repurchase of treasury stock | (5,000 | ) | — | — | — | (5,000 | ) | ||||||||
Contributions from parent | — | — | 12,754 | (12,754 | ) | — | |||||||||
Minimum withholding taxes paid on stock awards | (1,718 | ) | — | (125 | ) | — | (1,843 | ) | |||||||
Distributions to noncontrolling interests | — | — | (1,552 | ) | — | (1,552 | ) | ||||||||
Net cash provided/(used) in financing activities | (154,344 | ) | — | (16,770 | ) | (12,754 | ) | (183,868 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalent | — | — | (6,297 | ) | — | (6,297 | ) | ||||||||
Net increase/(decrease) in cash and cash equivalents | (1,973 | ) | 1,761 | (42,108 | ) | — | (42,320 | ) | |||||||
Cash and cash equivalents at beginning of year | 3,443 | 3,993 | 149,448 | — | 156,884 | ||||||||||
Cash and cash equivalents at end of year | $ | 1,470 | $ | 5,754 | $ | 107,340 | $ | — | $ | 114,564 |
Parent | Guarantors | Non-guarantors | Eliminations | Consolidated | |||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income/(loss) | $ | 85,279 | $ | 101,828 | $ | 96,543 | $ | (198,371 | ) | $ | 85,279 | ||||
Earnings in investments in subsidiaries | (198,371 | ) | — | — | 198,371 | — | |||||||||
Other operating cash flows | 250,597 | (53,098 | ) | 138,181 | — | 335,680 | |||||||||
Net cash provided by operating activities | 137,505 | 48,730 | 234,724 | — | 420,959 | ||||||||||
Cash flows from investing activities: | |||||||||||||||
Capital expenditures | (46,574 | ) | (91,702 | ) | (91,572 | ) | — | (229,848 | ) | ||||||
Acquisitions, net of cash acquired | — | — | (377 | ) | — | (377 | ) | ||||||||
Investment in subsidiaries and affiliates | (20 | ) | (45,103 | ) | 29,541 | 15,582 | — | ||||||||
Note receivable from affiliates | — | 76,019 | (76,019 | ) | — | — | |||||||||
Gross proceeds from sale of property, plant and equipment and other assets | 1,035 | 1,154 | 1,651 | — | 3,840 | ||||||||||
Proceeds from insurance settlements | 71 | 490 | — | — | 561 | ||||||||||
Payments related to routes and other intangibles | — | — | (3,845 | ) | — | (3,845 | ) | ||||||||
Net cash provided/(used) in investing activities | (45,488 | ) | (59,142 | ) | (140,621 | ) | 15,582 | (229,669 | ) | ||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from long-term debt | — | — | 590,745 | — | 590,745 | ||||||||||
Payments on long-term debt | (16,111 | ) | (55 | ) | (593,089 | ) | — | (609,255 | ) | ||||||
Borrowings from revolving credit facility | 25,000 | — | 53,244 | — | 78,244 | ||||||||||
Payments on revolving credit facility | (90,000 | ) | — | (76,755 | ) | — | (166,755 | ) | |||||||
Net overdraft financing | — | — | (1,261 | ) | — | (1,261 | ) | ||||||||
Deferred loan costs | (7,295 | ) | — | (10,015 | ) | — | (17,310 | ) | |||||||
Issuances of common stock | 171 | — | — | — | 171 | ||||||||||
Repurchase of treasury stock | (5,912 | ) | — | — | — | (5,912 | ) | ||||||||
Contributions from parent | — | — | 15,582 | (15,582 | ) | — | |||||||||
Minimum withholding taxes paid on stock awards | (4,874 | ) | — | — | — | (4,874 | ) | ||||||||
Deductions to noncontrolling interest | — | — | (87 | ) | — | (87 | ) | ||||||||
Distributions to noncontrolling interests | — | — | (3,295 | ) | — | (3,295 | ) | ||||||||
Net cash provided/(used) in financing activities | (99,021 | ) | (55 | ) | (24,931 | ) | (15,582 | ) | (139,589 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (3,601 | ) | — | (3,601 | ) | ||||||||
Net increase/(decrease) in cash and cash equivalents | (7,004 | ) | (10,467 | ) | 65,571 | — | 48,100 | ||||||||
Cash and cash equivalents at beginning of year | 10,447 | 14,460 | 83,877 | — | 108,784 | ||||||||||
Cash and cash equivalents at end of year | $ | 3,443 | $ | 3,993 | $ | 149,448 | $ | — | $ | 156,884 |
Parent | Guarantors | Non-guarantors | Eliminations | Consolidated | |||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income/(loss) | $ | 68,311 | $ | 155,250 | $ | 68,540 | $ | (223,790 | ) | $ | 68,311 | ||||
Earnings in investments in subsidiaries | (223,790 | ) | — | — | 223,790 | — | |||||||||
Other operating cash flows | 226,120 | (34,238 | ) | 14,979 | — | 206,861 | |||||||||
Net cash provided/(used) by operating activities | 70,641 | 121,012 | 83,519 | — | 275,172 | ||||||||||
Cash flows from investing activities: | |||||||||||||||
Capital expenditures | (39,248 | ) | (84,299 | ) | (105,371 | ) | — | (228,918 | ) | ||||||
Acquisitions, net of cash acquired | — | (19,394 | ) | (2,075,006 | ) | — | (2,094,400 | ) | |||||||
Investment in subsidiaries and affiliates | (1,483,007 | ) | (1,442,788 | ) | (440,619 | ) | 3,366,414 | — | |||||||
Note receivable from affiliates | — | (204,074 | ) | 204,074 | — | — | |||||||||
Gross proceeds from sale of property, plant and equipment and other assets | 1,522 | 5,155 | 2,585 | — | 9,262 | ||||||||||
Proceeds from insurance settlements | 1,350 | 200 | — | — | 1,550 | ||||||||||
Payments related to routes and other intangibles | (9,640 | ) | — | (1,648 | ) | — | (11,288 | ) | |||||||
Net cash provided/(used) in investing activities | (1,529,023 | ) | (1,745,200 | ) | (2,415,985 | ) | 3,366,414 | (2,323,794 | ) | ||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from long-term debt | 1,100,000 | — | 742,184 | — | 1,842,184 | ||||||||||
Payments on long-term debt | (264,500 | ) | (87 | ) | (69,175 | ) | — | (333,762 | ) | ||||||
Borrowing from revolving credit facility | 122,445 | — | 47,698 | — | 170,143 | ||||||||||
Payments on revolving credit facility | (297,445 | ) | — | (54,144 | ) | — | (351,589 | ) | |||||||
Net overdraft financing | — | — | 4,077 | — | 4,077 | ||||||||||
Deferred loan costs | (41,748 | ) | — | (3,475 | ) | — | (45,223 | ) | |||||||
Issuances of common stock | 416 | — | — | — | 416 | ||||||||||
Contributions from parent | — | 1,632,618 | 1,733,796 | (3,366,414 | ) | — | |||||||||
Minimum withholding taxes paid on stock awards | (10,026 | ) | — | — | — | (10,026 | ) | ||||||||
Excess tax benefits from stock-based compensation | 2,420 | — | — | — | 2,420 | ||||||||||
Addition of noncontrolling interest | — | — | 1,201 | — | 1,201 | ||||||||||
Distributions to noncontrolling interests | — | — | (4,272 | ) | — | (4,272 | ) | ||||||||
Net cash provided/(used) in financing activities | 611,562 | 1,632,531 | 2,397,890 | (3,366,414 | ) | 1,275,569 | |||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 10,980 | — | 10,980 | ||||||||||
Net increase/(decrease) in cash and cash equivalents | (846,820 | ) | 8,343 | 76,404 | — | (762,073 | ) | ||||||||
Cash and cash equivalents at beginning of year | 857,267 | 6,117 | 7,473 | — | 870,857 | ||||||||||
Cash and cash equivalents at end of year | $ | 10,447 | $ | 14,460 | $ | 83,877 | $ | — | $ | 108,784 |
• | Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; |
• | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and |
• | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements. |
• | the number of securities to be issued upon the exercise of outstanding options and granted non-vested stock; |
• | the weighted-average exercise price of the outstanding options and granted non-vested stock; and |
• | the number of securities that remain available for future issuance under the plans. |
Plan Category | (a) Number of securities to be issued upon exercise of outstanding options, warrants and rights | (b) Weighted-average exercise price of outstanding options, warrants and rights | (c) Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | |
Equity compensation plans approved by security holders | 3,500,409 | (1) | $11.56 | 4,566,505 |
Equity compensation plans not approved by security holders | – | – | – | |
Total | 3,500,409 | $11.56 | 4,566,505 |
(1) | Includes shares underlying options that have been issued and granted non-vested stock pursuant to the Company’s 2004 Omnibus Plan (the “2004 Plan”) and the 2012 Omnibus Incentive Plan (the “2012 Plan”) as approved by the Company’s stockholders. See Note 13 of Notes to Consolidated Financial Statements for information regarding the material features of the 2012 Plan, which are substantially similar to the 2004 Plan. |
Page | ||
Exhibit No. | ||
2.1 | Agreement and Plan of Merger, dated as of November 9, 2010, by and among Darling International Inc., DG Acquisition Corp., Griffin Industries, Inc. and Robert A. Griffin, in his capacity as the Shareholders’ Representative (filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed November 9, 2010 (Securities and Exchange Commission File No. 001-13323) and incorporated herein by reference). | |
2.2 | Acquisition Agreement, dated as of August 23, 2013, by and between Darling International Inc. and Maple Leaf Foods Inc. (the schedules and certain exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K and will be furnished to the SEC upon request) (filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed August 26, 2013 and incorporated herein by reference). | |
2.3 | Sale and Purchase Agreement, dated as of October 5, 2013, by and between Darling International Inc. and VION Holding N.V. (certain immaterial schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K and will be furnished to the Securities and Exchange Commission upon request) (filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed October 10, 2013 and incorporated herein by reference). | |
3.1 | Restated Certificate of Incorporation of the Company, as amended (filed as Exhibit 3.1 to the Company’s Registration Statement on Form S-1 filed May 23, 2002 and incorporated herein by reference). | |
3.2 | Certificate of Amendment of Restated Certificate of Incorporation of the Company (filed as Exhibit 3.2 to the Company's Annual Report on Form 10-K filed March 2, 2011 and incorporated herein by reference). | |
3.3 | Certificate of Amendment of Restated Certificate of Incorporation of the Company (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K filed November 27, 2013 and incorporated herein by reference). | |
3.4 | Certificate of Amendment of Restated Certificate of Incorporation of the Company (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K filed May 7, 2014 and incorporated herein by reference). | |
3.5 | Amended and Restated Bylaws of the Company (filed as Exhibit 3.2 to the Company’s Current Report on Form 8-K filed May 7, 2014 and incorporated herein by reference). | |
4.1 | Specimen Common Stock Certificate (filed as Exhibit 4.1 to the Company’s Registration Statement on Form S-1 filed May 27, 1994 and incorporated herein by reference). | |
4.2 | Certificate of Designation, Preferences and Rights of Series A Preferred Stock (filed as Exhibit 4.2 to the Company’s Registration Statement on Form S-1 filed May 23, 2002 and incorporated herein by reference). | |
4.3 | Senior Notes Indenture, dated as of January 2, 2014, by and among Darling Escrow Corporation, the subsidiary guarantors party thereto from time to time and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed January 10, 2014 and incorporated herein by reference). | |
4.4 | Supplemental Indenture, dated as of January 8, 2014, by and among Darling Escrow Corporation, Darling International Inc., Craig Protein Division, Inc., Darling AWS LLC, Darling National LLC, Darling Northstar LLC, Darling Global Holdings Inc., EV Acquisition, Inc., Griffin Industries LLC, Terra Holding Company and Terra Renewal Services Inc. and U.S. Bank National Association, as trustee (filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K filed January 10, 2014 and incorporated herein by reference). | |
4.5 | Supplemental Indenture, dated as of April 4, 2014, by and among Darling International Inc., Craig Protein Division, Inc., Darling AWS LLC, Darling National LLC, Darling Northstar LLC, Darling Global Holdings Inc., EV Acquisition, Inc., Griffin Industries LLC, Terra Holding Company, Terra Renewal Services Inc., Rousselot Dubuque Inc., Rousselot Inc., Rousselot Peabody Inc., Sonac USA LLC and U.S. Bank National Association, as trustee (filed as Exhibit 4.5 to the Company’s Registration Statement on Form S-4 filed July 15, 2014 and incorporated herein by reference). | |
4.6 | Senior Notes Indenture, dated as of June 3, 2015, by and among Darling Global Finance B.V., Darling Ingredients Inc., the subsidiary guarantors party thereto from time to time, Citibank, N.A., London Branch, as trustee and principal paying agent, and Citigroup Global Markets Deutschland AG, as principal registrar (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed June 3, 2015 and incorporated herein by reference). | |
10.1 | Second Amended and Restated Credit Agreement, dated as of January 6, 2014, by and among Darling International Inc., the other borrowers party thereto from time to time, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and the other agents from time to time party thereto (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed January 10, 2014 and incorporated herein by reference). | |
10.2 | First Amendment to the Second Amended and Restated Credit Agreement, dated as of May 13, 2015, among the Company, as the parent borrower, the other subsidiary borrowers party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and certain lenders party thereto (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed May 15, 2015 and incorporated herein by reference). | |
10.3 | Second Amendment to the Second Amended and Restated Credit Agreement, dated as of September 23, 2015, among the Company, as the parent borrower, the other subsidiary borrowers party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and certain lenders party thereto (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed September 25, 2015 and incorporated herein by reference). | |
10.4 | Third Amendment to the Second Amended and Restated Credit Agreement, dated as of October 14, 2015, among the Company, as the parent borrower, the other subsidiary borrowers party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and certain lenders party thereto (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed October 14, 2015 and incorporated herein by reference). | |
10.5 | Fourth Amendment, dated as of December 16, 2016, to Second Amended and Restated Credit Agreement by and among Darling Ingredients Inc., as the parent borrower, the other subsidiary borrowers party thereto, the subsidiary guarantors, JPMorgan Chase Bank, N.A., as administrative agent, and certain lenders party thereto (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed December 20, 2016 and incorporated herein by reference). | |
10.6 | Second Amended and Restated Security Agreement, dated as of January 6, 2014, by and among Darling International Inc., its subsidiaries signatory thereto and any other subsidiary who may become a party thereto and JPMorgan Chase Bank, N.A, as administrative agent (filed as Exhibit 10.2 to the Company's Current Report on Form 8-K filed January 10, 2014 and incorporated herein by reference). | |
10.7 | Second Amended and Restated Guaranty Agreement, dated as of January 6, 2014, by and among Darling International Inc., its subsidiaries signatory thereto and any other subsidiary who may become a party thereto and JPMorgan Chase Bank, N.A., as administrative agent (filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed January 10, 2014 and incorporated herein by reference). | |
10.8 | Limited Liability Company Agreement, dated as of January 21, 2011, by and among Diamond Green Diesel Holdings LLC, Darling Green Energy LLC and Diamond Alternative Energy, LLC. (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed January 21, 2011 and incorporated herein by reference). | |
10.9 | Sponsor Support Agreement, dated as of May 31, 2011, by and between Darling International Inc., Diamond Green Diesel LLC and Diamond Alternative Energy, LLC (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed June 1, 2011 and incorporated herein by reference). | |
10.10 | Raw Material Supply Agreement, dated as of May 31, 2011, by and between Diamond Green Diesel LLC and Darling International Inc. (filed as Exhibit 10 to the Company's Quarterly Report on Form 10-Q filed August 11, 2011 and incorporated herein by reference). | |
10.11 | Ground Lease, dated as of December 17, 2010, by and between Martom Properties, LLC and Griffin Industries, Inc. (Butler, Kentucky) (filed as Exhibit 10.6 to the Company’s Current Report on Form 8-K filed December 20, 2010 (Securities and Exchange Commission File No. 001-13323) and incorporated herein by reference). | |
10.12 | Ground Lease, dated as of December 17, 2010, by and between Martom Properties, LLC and Griffin Industries, Inc. (Henderson, Kentucky) (filed as Exhibit 10.7 to the Company’s Current Report on Form 8-K filed December 20, 2010 (Securities and Exchange Commission File No. 001-13323) and incorporated herein by reference). | |
10.13 * | Darling International Inc. 2004 Omnibus Incentive Plan (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed May 11, 2005 (Securities and Exchange Commission File No. 000-24620), and incorporated herein by reference). | |
10.14 * | Amendment to Darling International Inc. 2004 Omnibus Incentive Plan (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed January 22, 2007 (Securities and Exchange Commission File No. 000-24620) and incorporated herein by reference). | |
10.15 * | Amendment to Darling International Inc. 2004 Omnibus Incentive Plan (filed herewith). | |
10.16 * | Darling International Inc. 2012 Omnibus Incentive Plan (filed as Exhibit 99 to the Company’s Registration Statement on Form S-8 filed May 31, 2012 and incorporated herein by reference). | |
10.17 * | Amendment to Darling International Inc. 2012 Omnibus Incentive Plan (filed herewith). | |
10.18 * | Form of Performance Award Agreement for use in connection with awards under the 2012 Omnibus Incentive Plan (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed May 12, 2016 and incorporated herein by reference). | |
10.19 * | Form of Stock Option Notice and Agreement for use in connection with awards under the 2012 Omnibus Incentive Plan (filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed May 12, 2016 and incorporated herein by reference). | |
10.20 * | Form of Performance Unit Award Agreement under the Darling International Inc. 2012 Omnibus Incentive Plan (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed January 6, 2014 and incorporated herein by reference). | |
10.21 * | Non-Employee Director Restricted Stock Award Plan (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed March 15, 2006 (Securities and Exchange Commission File No. 000-24620) and incorporated herein by reference). | |
10.22 * | Amendment No. 1 to Non-Employee Director Restricted Stock Award Plan, effective as of January 15, 2009 (filed as Exhibit 10.04 to the Company’s Current Report on Form 8-K filed January 21, 2009 (Securities and Exchange Commission File No. 000-24620) and incorporated herein by reference). | |
10.23 * | Amended and Restated Non-Employee Director Restricted Stock Award Plan, (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed February 28, 2011 and incorporated herein by reference). | |
10.24 * | Form of Notice of Grant of Restricted Stock Unit Award (Non-Employee Directors) under the Darling International Inc. 2012 Omnibus Incentive Plan (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed August 7, 2014 and incorporated herein by reference). | |
10.25 * | Notice of Amendment to Grants and Awards, dated as of October 10, 2006 (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed October 10, 2006 (Securities and Exchange Commission File No. 000-24620) and incorporated herein by reference). | |
10.26 * | Amended and Restated Employment Agreement, dated as of January 1, 2009, between Darling International Inc. and Randall C. Stuewe (filed as Exhibit 10.01 to the Company’s Current Report on Form 8-K filed January 21, 2009 (Securities and Exchange Commission File No. 000-24620), and incorporated herein by reference). | |
10.27 * | Amendment No. 1, dated as of March 23, 2015, to Amended and Restated Employment Agreement between Darling Ingredients Inc. and Randall C. Stuewe (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed March 25, 2015 and incorporated herein by reference). | |
10.28 * | Employment Agreement, dated as of February 12, 2014, between Darling International Netherlands BV and Dirk Kloosterboer (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed May 8, 2014 and incorporated herein by reference). | |
10.29 * | Form of Senior Executive Termination Benefits Agreement (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed November 29, 2007 (Securities and Exchange Commission File No. 000-24620) and incorporated herein by reference). | |
10.30 * | Form of Addendum to Senior Executive Termination Benefits Agreement (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed December 12, 2008 (Securities and Exchange Commission File No. 000-24620) and incorporated herein by reference). | |
10.31 * | Form of Addendum to Senior Executive Termination Benefits Agreement (filed as Exhibit 10.4 to the Company’s Current Report on Form 8-K filed December 13, 2010 (Securities and Exchange Commission File No. 001-13323) and incorporated herein by reference). | |
10.32 * | Senior Executive Termination Benefits Agreement, dated effective as of January 1, 2015, between Darling Ingredients Inc. and John O. Muse (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed December 9, 2014 and incorporated herein by reference). | |
10.33 * | Senior Executive Termination Benefits Agreement, dated effective as of January 15, 2017, between Darling Ingredients Inc. and Patrick C. Lynch (filed herewith). | |
10.34 * | Form of Indemnification Agreement between Darling International Inc. and its directors and executive officers (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed February 25, 2008 (Securities and Exchange Commission File No. 000-24620), and incorporated herein by reference). | |
21 | Subsidiaries of the Registrant (filed herewith). | |
23.1 | Consent of KPMG LLP (filed herewith). | |
23.2 | Consent of KPMG LLP (filed herewith). | |
31.1 | Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, of Randall C. Stuewe, the Chief Executive Officer of the Company (filed herewith). | |
31.2 | Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, of John O. Muse, the Chief Financial Officer of the Company (filed herewith). | |
32 | Written Statement of Chief Executive Officer and Chief Financial Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350) (filed herewith). | |
99.1 | Consolidated Financial Statements of Diamond Green Diesel Holdings LLC and Subsidiary for the year ended December 31, 2016 (filed herewith). | |
101 | Interactive Data Files Pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets as of December 31, 2016 and January 2, 2016; (ii) Consolidated Statements of Operations for the years ended December 31, 2016, January 2, 2016 and January 3, 2015; (iii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2016, January 2, 2016 and January 3, 2015; (iv) Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2016, January 2, 2016 and January 3, 2015; (v) Consolidated Statements of Cash Flows for the years ended December 31, 2016, January 2, 2016 and January 3, 2015; (vi) Notes to the Consolidated Financial Statements. | |
The Exhibits are available upon request from the Company. | ||
* | Management contract or compensatory plan or arrangement. |
DARLING INGREDIENTS INC. | |||
By: | /s/ Randall C. Stuewe | ||
Randall C. Stuewe | |||
Chairman of the Board and | |||
Chief Executive Officer | |||
Date: | February 28, 2017 |
Signature | Title | Date | ||
/s/ Randall C. Stuewe | Chairman of the Board and | February 28, 2017 | ||
Randall C. Stuewe | Chief Executive Officer | |||
(Principal Executive Officer) | ||||
/s/ John O. Muse | Executive Vice President – | February 28, 2017 | ||
John O. Muse | Chief Financial Officer | |||
(Principal Financial and Accounting Officer) | ||||
/s/ D. Eugene Ewing | Director | February 28, 2017 | ||
D. Eugene Ewing | ||||
/s/ Dirk Kloosterboer | Director | February 28, 2017 | ||
Dirk Kloosterboer | ||||
/s/ Mary R. Korby | Director | February 28, 2017 | ||
Mary R. Korby | ||||
/s/ Cynthia Pharr Lee | Director | February 28, 2017 | ||
Cynthia Pharr Lee | ||||
/s/ Charles Macaluso | Director | February 28, 2017 | ||
Charles Macaluso | ||||
/s/ Gary W. Mize | Director | February 28, 2017 | ||
Gary W. Mize |
2.1 | Agreement and Plan of Merger, dated as of November 9, 2010, by and among Darling International Inc., DG Acquisition Corp., Griffin Industries, Inc. and Robert A. Griffin, in his capacity as the Shareholders’ Representative (filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed November 9, 2010 (Securities and Exchange Commission File No. 001-13323) and incorporated herein by reference). | |
2.2 | Acquisition Agreement, dated as of August 23, 2013, by and between Darling International Inc. and Maple Leaf Foods Inc. (the schedules and certain exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K and will be furnished to the SEC upon request) (filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed August 26, 2013 and incorporated herein by reference). | |
2.3 | Sale and Purchase Agreement, dated as of October 5, 2013, by and between Darling International Inc. and VION Holding N.V. (certain immaterial schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K and will be furnished to the Securities and Exchange Commission upon request) (filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K filed October 10, 2013 and incorporated herein by reference). | |
3.1 | Restated Certificate of Incorporation of the Company, as amended (filed as Exhibit 3.1 to the Company’s Registration Statement on Form S-1 filed May 23, 2002 and incorporated herein by reference). | |
3.2 | Certificate of Amendment of Restated Certificate of Incorporation of the Company (filed as Exhibit 3.2 to the Company's Annual Report on Form 10-K filed March 2, 2011 and incorporated herein by reference). | |
3.3 | Certificate of Amendment of Restated Certificate of Incorporation of the Company (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K filed November 27, 2013 and incorporated herein by reference). | |
3.4 | Certificate of Amendment of Restated Certificate of Incorporation of the Company (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K filed May 7, 2014 and incorporated herein by reference). | |
3.5 | Amended and Restated Bylaws of the Company (filed as Exhibit 3.2 to the Company’s Current Report on Form 8-K filed May 7, 2014 and incorporated herein by reference). | |
4.1 | Specimen Common Stock Certificate (filed as Exhibit 4.1 to the Company’s Registration Statement on Form S-1 filed May 27, 1994 and incorporated herein by reference). | |
4.2 | Certificate of Designation, Preferences and Rights of Series A Preferred Stock (filed as Exhibit 4.2 to the Company’s Registration Statement on Form S-1 filed May 23, 2002 and incorporated herein by reference). | |
4.3 | Senior Notes Indenture, dated as of January 2, 2014, by and among Darling Escrow Corporation, the subsidiary guarantors party thereto from time to time and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed January 10, 2014 and incorporated herein by reference). | |
4.4 | Supplemental Indenture, dated as of January 8, 2014, by and among Darling Escrow Corporation, Darling International Inc., Craig Protein Division, Inc., Darling AWS LLC, Darling National LLC, Darling Northstar LLC, Darling Global Holdings Inc., EV Acquisition, Inc., Griffin Industries LLC, Terra Holding Company and Terra Renewal Services Inc. and U.S. Bank National Association, as trustee (filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K filed January 10, 2014 and incorporated herein by reference). | |
4.5 | Supplemental Indenture, dated as of April 4, 2014, by and among Darling International Inc., Craig Protein Division, Inc., Darling AWS LLC, Darling National LLC, Darling Northstar LLC, Darling Global Holdings Inc., EV Acquisition, Inc., Griffin Industries LLC, Terra Holding Company, Terra Renewal Services Inc., Rousselot Dubuque Inc., Rousselot Inc., Rousselot Peabody Inc., Sonac USA LLC and U.S. Bank National Association, as trustee (filed as Exhibit 4.5 to the Company’s Registration Statement on Form S-4 filed July 15, 2014 and incorporated herein by reference). | |
4.6 | Senior Notes Indenture, dated as of June 3, 2015, by and among Darling Global Finance B.V., Darling Ingredients Inc., the subsidiary guarantors party thereto from time to time, Citibank, N.A., London Branch, as trustee and principal paying agent, and Citigroup Global Markets Deutschland AG, as principal registrar (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K filed June 3, 2015 and incorporated herein by reference). | |
10.1 | Second Amended and Restated Credit Agreement, dated as of January 6, 2014, by and among Darling International Inc., the other borrowers party thereto from time to time, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and the other agents from time to time party thereto (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed January 10, 2014 and incorporated herein by reference). | |
10.2 | First Amendment to the Second Amended and Restated Credit Agreement, dated as of May 13, 2015, among the Company, as the parent borrower, the other subsidiary borrowers party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and certain lenders party thereto (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed May 15, 2015 and incorporated herein by reference). | |
10.3 | Second Amendment to the Second Amended and Restated Credit Agreement, dated as of September 23, 2015, among the Company, as the parent borrower, the other subsidiary borrowers party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and certain lenders party thereto (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed September 25, 2015 and incorporated herein by reference). | |
10.4 | Third Amendment to the Second Amended and Restated Credit Agreement, dated as of October 14, 2015, among the Company, as the parent borrower, the other subsidiary borrowers party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and certain lenders party thereto (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed October 14, 2015 and incorporated herein by reference). | |
10.5 | Fourth Amendment, dated as of December 16, 2016, to Second Amended and Restated Credit Agreement by and among Darling Ingredients Inc., as the parent borrower, the other subsidiary borrowers party thereto, the subsidiary guarantors, JPMorgan Chase Bank, N.A., as administrative agent, and certain lenders party thereto (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed December 20, 2016 and incorporated herein by reference). | |
10.6 | Second Amended and Restated Security Agreement, dated as of January 6, 2014, by and among Darling International Inc., its subsidiaries signatory thereto and any other subsidiary who may become a party thereto and JPMorgan Chase Bank, N.A, as administrative agent (filed as Exhibit 10.2 to the Company's Current Report on Form 8-K filed January 10, 2014 and incorporated herein by reference). | |
10.7 | Second Amended and Restated Guaranty Agreement, dated as of January 6, 2014, by and among Darling International Inc., its subsidiaries signatory thereto and any other subsidiary who may become a party thereto and JPMorgan Chase Bank, N.A., as administrative agent (filed as Exhibit 10.3 to the Company’s Current Report on Form 8-K filed January 10, 2014 and incorporated herein by reference). | |
10.8 | Limited Liability Company Agreement, dated as of January 21, 2011, by and among Diamond Green Diesel Holdings LLC, Darling Green Energy LLC and Diamond Alternative Energy, LLC. (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed January 21, 2011 and incorporated herein by reference). | |
10.9 | Sponsor Support Agreement, dated as of May 31, 2011, by and between Darling International Inc., Diamond Green Diesel LLC and Diamond Alternative Energy, LLC (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed June 1, 2011 and incorporated herein by reference). | |
10.10 | Raw Material Supply Agreement, dated as of May 31, 2011, by and between Diamond Green Diesel LLC and Darling International Inc. (filed as Exhibit 10 to the Company's Quarterly Report on Form 10-Q filed August 11, 2011 and incorporated herein by reference). | |
10.11 | Ground Lease, dated as of December 17, 2010, by and between Martom Properties, LLC and Griffin Industries, Inc. (Butler, Kentucky) (filed as Exhibit 10.6 to the Company’s Current Report on Form 8-K filed December 20, 2010 (Securities and Exchange Commission File No. 001-13323) and incorporated herein by reference). | |
10.12 | Ground Lease, dated as of December 17, 2010, by and between Martom Properties, LLC and Griffin Industries, Inc. (Henderson, Kentucky) (filed as Exhibit 10.7 to the Company’s Current Report on Form 8-K filed December 20, 2010 (Securities and Exchange Commission File No. 001-13323) and incorporated herein by reference). | |
10.13 * | Darling International Inc. 2004 Omnibus Incentive Plan (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed May 11, 2005 (Securities and Exchange Commission File No. 000-24620), and incorporated herein by reference). | |
10.14 * | Amendment to Darling International Inc. 2004 Omnibus Incentive Plan (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed January 22, 2007 (Securities and Exchange Commission File No. 000-24620) and incorporated herein by reference). | |
10.15 * | Amendment to Darling International Inc. 2004 Omnibus Incentive Plan (filed herewith). | |
10.16 * | Darling International Inc. 2012 Omnibus Incentive Plan (filed as Exhibit 99 to the Company’s Registration Statement on Form S-8 filed May 31, 2012 and incorporated herein by reference). | |
10.17 * | Amendment to Darling International Inc. 2012 Omnibus Incentive Plan (filed herewith). | |
10.18 * | Form of Performance Award Agreement for use in connection with awards under the 2012 Omnibus Incentive Plan (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed May 12, 2016 and incorporated herein by reference). | |
10.19 * | Form of Stock Option Notice and Agreement for use in connection with awards under the 2012 Omnibus Incentive Plan (filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed May 12, 2016 and incorporated herein by reference). | |
10.20 * | Form of Performance Unit Award Agreement under the Darling International Inc. 2012 Omnibus Incentive Plan (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed January 6, 2014 and incorporated herein by reference). | |
10.21 * | Non-Employee Director Restricted Stock Award Plan (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed March 15, 2006 (Securities and Exchange Commission File No. 000-24620) and incorporated herein by reference). | |
10.22 * | Amendment No. 1 to Non-Employee Director Restricted Stock Award Plan, effective as of January 15, 2009 (filed as Exhibit 10.04 to the Company’s Current Report on Form 8-K filed January 21, 2009 (Securities and Exchange Commission File No. 000-24620) and incorporated herein by reference). | |
10.23 * | Amended and Restated Non-Employee Director Restricted Stock Award Plan, (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed February 28, 2011 and incorporated herein by reference). | |
10.24 * | Form of Notice of Grant of Restricted Stock Unit Award (Non-Employee Directors) under the Darling International Inc. 2012 Omnibus Incentive Plan (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed August 7, 2014 and incorporated herein by reference). | |
10.25 * | Notice of Amendment to Grants and Awards, dated as of October 10, 2006 (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed October 10, 2006 (Securities and Exchange Commission File No. 000-24620) and incorporated herein by reference). | |
10.26 * | Amended and Restated Employment Agreement, dated as of January 1, 2009, between Darling International Inc. and Randall C. Stuewe (filed as Exhibit 10.01 to the Company’s Current Report on Form 8-K filed January 21, 2009 (Securities and Exchange Commission File No. 000-24620), and incorporated herein by reference). | |
10.27 * | Amendment No. 1, dated as of March 23, 2015, to Amended and Restated Employment Agreement between Darling Ingredients Inc. and Randall C. Stuewe (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed March 25, 2015 and incorporated herein by reference). | |
10.28 * | Employment Agreement, dated as of February 12, 2014, between Darling International Netherlands BV and Dirk Kloosterboer (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed May 8, 2014 and incorporated herein by reference). | |
10.29 * | Form of Senior Executive Termination Benefits Agreement (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed November 29, 2007 (Securities and Exchange Commission File No. 000-24620) and incorporated herein by reference). | |
10.30 * | Form of Addendum to Senior Executive Termination Benefits Agreement (filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K filed December 12, 2008 (Securities and Exchange Commission File No. 000-24620) and incorporated herein by reference). | |
10.31 * | Form of Addendum to Senior Executive Termination Benefits Agreement (filed as Exhibit 10.4 to the Company’s Current Report on Form 8-K filed December 13, 2010 (Securities and Exchange Commission File No. 001-13323) and incorporated herein by reference). | |
10.32 * | Senior Executive Termination Benefits Agreement, dated effective as of January 1, 2015, between Darling Ingredients Inc. and John O. Muse (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed December 9, 2014 and incorporated herein by reference). | |
10.33 * | Senior Executive Termination Benefits Agreement, dated effective as of January 15, 2017, between Darling Ingredients Inc. and Patrick C. Lynch (filed herewith). | |
10.34 * | Form of Indemnification Agreement between Darling International Inc. and its directors and executive officers (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed February 25, 2008 (Securities and Exchange Commission File No. 000-24620), and incorporated herein by reference). | |
21 | Subsidiaries of the Registrant (filed herewith). | |
23.1 | Consent of KPMG LLP (filed herewith). | |
23.2 | Consent of KPMG LLP (filed herewith). | |
31.1 | Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, of Randall C. Stuewe, the Chief Executive Officer of the Company (filed herewith). | |
31.2 | Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, of John O. Muse, the Chief Financial Officer of the Company (filed herewith). | |
32 | Written Statement of Chief Executive Officer and Chief Financial Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350) (filed herewith). | |
99.1 | Consolidated Financial Statements of Diamond Green Diesel Holdings LLC and Subsidiary for the year ended December 31, 2016 (filed herewith). | |
101 | Interactive Data Files Pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets as of December 31, 2016 and January 2, 2016; (ii) Consolidated Statements of Operations for the years ended December 31, 2016, January 2, 2016 and January 3, 2015; (iii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2016, January 2, 2016 and January 3, 2015; (iv) Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2016, January 2, 2016 and January 3, 2015; (v) Consolidated Statements of Cash Flows for the years ended December 31, 2016, January 2, 2016 and January 3, 2015; (vi) Notes to the Consolidated Financial Statements. | |
The Exhibits are available upon request from the Company. | ||
* | Management contract or compensatory plan or arrangement. |
(a) | Termination by reason of the Executive’s “voluntary termination” other than a Change in Control Termination (as hereinafter defined). For the purposes of this Agreement, “voluntary termination” shall mean the voluntary resignation by the Executive of his employment with the Company; |
(b) | “Termination with Cause.” For the purposes hereof, “Cause” shall mean termination of employment of the Executive by the Company following (1) material failure of the Executive to comply with the reasonable directions of the Company’s Chief Executive Officer or Board of Directors, which failure is not corrected after thirty (30) days written notice from the Company, (2) the commission by the Executive of an act of fraud or dishonesty or of an act which he knew to be in material violation of his duties to the Company (including the unauthorized disclosure of confidential information) or (3) following a felony conviction of the Executive; or |
(c) | Termination upon the Executive’s normal retirement. For the purposes of this Agreement, “normal retirement” shall mean the termination of employment of the Executive by the Company or the Executive in accordance with the Company’s retirement policy (including early retirement, if included in such policy and elected by the Executive in writing) generally applicable to its senior executive employees, or in accordance with any other retirement agreement entered into by and between the Executive and the Company. |
(b) | Vacation Pay. Any accrued vacation pay due but not yet taken at the Termination Date shall be paid to the Executive on the date his employment with the Company is terminated (the “Termination Date”). |
(c) | Welfare Benefits, etc. The Executive’s participation (including dependent coverage) in any life and disability plans, and other similar benefits of the Company (except business travel accident insurance and continued contributions to qualified retirement plans) in effect immediately prior to the Termination Date shall be continued, or equivalent benefits provided by the Company, for a period of eighteen (18) months from the Termination Date, or thirty-six (36) months in the case of a Change in Control Termination, to the extent allowed under the policies or agreements pursuant to which the Company obtains and provides such benefits. In addition, the Company shall pay an amount equal to the applicable COBRA premium rate, if any, for a period of eighteen (18) months from the Termination Date, or thirty-six (36) months in the case of a Change in Control Termination, for health, dental and other similar COBRA coverage for the Executive and Executive’s eligible dependents, and such payments shall be includible in the Executive’s gross income. |
(d) | Bonus and Retirement Benefits. The Executive shall remain eligible to receive a prorated amount (based on the number of days worked in the fiscal year) of his annual incentive cash bonus to the extent it is earned under the terms of the Company’s then applicable annual incentive plan. Executive’s annual incentive cash bonus (if any) shall be paid in cash in accordance with the terms of the annual incentive plan and at the same time that other executive participants in the plan are paid. The Agreement shall not affect the Executive’s entitlement to benefits under the Company’s retirement plan accrued as of his termination. |
(e) | Executive Outplacement Counseling. The Company shall engage an outplacement counseling service of national reputation, at its own expense provided that such expense shall not exceed Ten Thousand Dollars ($10,000), to assist the Executive in obtaining employment, until the earliest of (i) two years from the Termination Date, (ii) such date as the |
(b) | Return of Property. The Executive agrees that, upon termination of the Executive’s employment with the Company for any reason, the Executive will return to the Company, in good condition, all property of the Company and any of its affiliates, including without limitation, keys; building access cards; computers; cellular telephones; automobiles; the originals and all copies (in whatever format) of all management, training, marketing, pricing, strategic, routing and selling materials; promotional materials; other training and instructional materials; financial information; vendor, owner, manager and product information; customer lists; other customer information; and all other selling, service and trade information and equipment, provided that nothing in this Section 5(b) limits any provision of Section 5(g) below. If such items are not returned in accordance with this Section 5(b), the Company will have the right to charge the Executive for all reasonable damages, costs, attorneys’ fees and other expenses incurred in searching for, taking, removing and/or recovering such property. |
(c) | Nonsolicitation. During the period of employment with the Company and for a period of 12 months thereafter, the Executive will not, on the Executive’s own behalf or on behalf of any other person, partnership, association, corporation or other entity, or otherwise act indirectly to hire or solicit or in any manner attempt to influence or induce any employee of the Company or its affiliates to leave the employment of the Company or its affiliates, nor will the Executive use or disclose to any person, partnership, association, corporation or other entity any information obtained while an employee of the Company concerning the names and addresses of the employees of the Company or its affiliates. |
(d) | Nondisparagement. The Executive shall not, either during the term of this Agreement or at any time thereafter, make statements, whether orally or in writing, concerning the Company, any of its directors, officers, employees or affiliates or any of its business strategies, policies or practices, that shall be in any way disparaging, derogatory or critical, or in any way harmful to the reputation of the Company, any such persons or entities or business strategies, policies or practices, provided that nothing in this Section 5(d) limits any provision of Section 5(g) below. |
(e) | Cooperation. The Executive agrees to cooperate, at the request and expense of the Company, in the prosecution and/or defense of any claim or litigation in which the Company or any affiliate is involved on the Termination Date or thereafter that includes subject matter as to which the Executive has knowledge and/or expertise, provided that nothing in this Section 5(e) limits any provision of Section 5(g) below. |
(f) | Damages. Notwithstanding anything in this Agreement to the contrary, if the Executive breaches the covenants contained in this Section 5, the Company will have no further obligations to the Executive pursuant to this Agreement or otherwise and may recover from the Executive all such damages to which it may be entitled at law or in equity. In addition, the Executive acknowledges that any such breach may result in immediate and irreparable harm to the Company for which money damages are likely to be inadequate. Accordingly, the Company may seek whatever relief it determines to be appropriate to protect the Company’s rights under this Agreement, including, without limitation, an injunction to prevent the Executive from disclosing any trade secrets or confidential or proprietary information concerning the Company to any person or entity, to prevent any person or entity from receiving from the Executive or using any such trade secrets or confidential or proprietary information and/or to prevent any person or entity from retaining or seeking to retain any other employees of the Company. The Executive acknowledges good and sufficient consideration for the covenants of this Section 5. |
(g) | Protected Rights. Executive understands that nothing contained in this Agreement limits Executive’s ability to report possible violations of law or regulation to, or file a charge or complaint with, the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Department of Justice, the Congress, any Inspector General, or any other federal, state or local governmental agency or commission (“Government Agencies”). Executive further understands that this Agreement does not limit Executive’s ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company. Nothing in this Agreement shall limit the Executive’s ability under applicable United States federal law to (i) disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law or (ii) disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure. |
Name | Where Organized | |
Griffin Industries LLC | Kentucky | |
Craig Protein Division, Inc. | Georgia | |
Darling National LLC | Delaware | |
Darling Green Energy LLC | Delaware | |
Darling AWS LLC | Delaware | |
Terra Holding Company | Delaware | |
Terra Renewal Services, Inc. | Arkansas | |
EV Acquisition Inc. | Arkansas | |
Darling Northstar LLC | Delaware | |
Darling Global Holdings Inc. | Delaware | |
DII Holdings (Gibraltar) Limited | Gibraltar | |
Darling (GI) Limited | Gibraltar | |
Darling International NL CV | The Netherlands | |
Darling International Netherlands B.V. | The Netherlands | |
Darling International Canada Inc. | Canada | |
Darling International NL Holding B.V. | The Netherlands | |
Darling Global Finance B.V. | The Netherlands | |
Best Commodity Trade B.V. | The Netherlands | |
BestHides GmbH (60%) | Germany | |
B.V. CTH Groep | The Netherlands | |
Changchun Sonac Biology Co. Ltd (65%) | China | |
China Millers Ltd | United Kingdom | |
CTH B.V. | The Netherlands | |
CTH België BVBA | Belgium | |
CTH do Brasil Indústria e Comércio de subproduto animal Ltda | Brazil | |
Triperia CTH Espana SL | Spain | |
CTH GmbH | Germany | |
CTH Porto - Industria Alimentar Unipessoal Lda | Portugal | |
CTH US Inc. | Delaware | |
Darling 5Q B.V. | The Netherlands | |
Darling 5Q UK Ltd | United Kingdom | |
Darling Ingredients Belgium Holding BVBA | Belgium | |
Darling Ingredients Germany Holding GmbH | Germany |
Darling Ingredients International Financial Services B.V. | The Netherlands | |
Darling Ingredients International Holding B.V. | The Netherlands | |
Darling Ingredients Nederland B.V. | The Netherlands | |
Darling Ingredients Nederland Holding B.V. | The Netherlands | |
Darling (Shanghai) Management Co. Ltd | China | |
Dentrans BVBA | Belgium | |
Ecoson B.V. | The Netherlands | |
ERS Holding B.V. | The Netherlands | |
ecoson GmbH | Germany | |
Global Ceramic Materials Ltd | United Kingdom | |
Harimex B.V. | The Netherlands | |
Harimex do Brazil Ltda | Brazil | |
Haripro SpA (50%) | Italy | |
Hepac B.V. | The Netherlands | |
Hide Service GmbH (50%) | Germany | |
HR-Service Nederland B.V. | The Netherlands | |
Hunan Teijsen Casings & Food Co. Ltd | China | |
IT Services B.V. | The Netherlands | |
Kanzler GmbH | Germany | |
LARU GmbH | Germany | |
MD Entsorgungsges. für Schlachtnebenprodukte mbH | Germany | |
Nederlandse Darmenhandel Nevada BV | The Netherlands | |
Nevada Darmen- und Schlachtnebenprodukte Handels GmbH | Germany | |
Qionglai Sonac Biology Co. Ltd (65%) | China | |
Rendac B.V. | The Netherlands | |
Rendac BVBA | Belgium | |
Rendac CES SA | Luxemburg | |
Rendac Icker GmbH & Co. KG | Germany | |
Rendac Jagel GmbH | Germany | |
Rendac Lingen GmbH | Germany | |
Rendac Rotenburg GmbH | Germany | |
Rendac Son B.V. | The Netherlands | |
Sonac Functional Products B.V. | The Netherlands | |
Rendac Transport BVBA | Belgium | |
Rendac UDES SPRL | Belgium | |
Rendac Udes Transport SPRL | Belgium | |
Rousselot (Da'an) Gelatin Co. Ltd (75%) | China | |
Rousselot (Guangdong) Gelatin Co. Ltd (75%) | China | |
Rousselot (M) SDN.BHD | Malaysia | |
Rousselot (Whenzou) Gelatin Co. Ltd (70%) | China | |
Rousselot (Zhejiang) Gelatin Co. Ltd (70%) | China | |
Rousselot Angouleme SAS | France | |
Rousselot Argentina SA | Argentina |
Rousselot B.V. | The Netherlands | |
Rousselot BVBA | Belgium | |
Rousselot Dubuque Inc. | Delaware | |
Rousselot Gelatin SL | Spain | |
Rousselot Gelatinas do Brasil Ltda | Brazil | |
Rousselot GmbH | Germany | |
Rousselot Inc. | Delaware | |
Rousselot Isle sur La Sorgue SAS | France | |
Rousselot Japan KK | Japan | |
Rousselot Jellice KK (51%) | Japan | |
Rousselot Peabody Inc. | Massachusetts | |
Rousselot SAS | France | |
Sanrec GmbH | Germany | |
Siping Sonac Biology Co. Ltd (65%) | China | |
SNP Handels- und Beteiligungs GmbH | Germany | |
SNP Verwaltungs- GmbH | Germany | |
Sobel GmbH | Germany | |
Sobel Luxembourg Sarl | Luxemburg | |
Sonac Almere BV | The Netherlands | |
Sonac (China) Biology Co. Ltd (65%) | China | |
Sonac (Luohe) Biology Co. Ltd (65%) | China | |
Sonac Australia PTY, Ltd | Australia | |
Sonac Bad Bramstedt GmbH | Germany | |
Sonac België BVBA | Belgium | |
Sonac Bergheim GmbH | Austria | |
Sonac Bramstedt-Nord GmbH | Germany | |
Sonac Brünen GmbH | Germany | |
Sonac Burgum B.V. | The Netherlands | |
Sonac Eindhoven B.V. | The Netherlands | |
Sonac Elsholz GmbH | Germany | |
Sonac Erolzheim GmbH | Germany | |
Sonac Gelsenkirchen GmbH | Germany | |
Sonac Gent BVBA | Belgium | |
Sonac Harlingen B.V. | The Netherlands | |
Sonac Hides & Skins (UK) Ltd | United Kingdom | |
Sonac Kiel GmbH | Germany | |
Sonac Lingen GmbH | Germany | |
Sonac Loenen B.V. | The Netherlands | |
Sonac Mering GmbH | Germany | |
Sonac Osetnica Sp.z o.o. | Poland | |
Sonac Son B.V. | The Netherlands | |
Sonac Transport BVBA | Belgium | |
Sonac USA LLC | Delaware |
Sonac Usnice Sp.z o.o. | Poland | |
Sonac Versmold GmbH | Germany | |
Sonac Vuren B.V. | The Netherlands | |
Suzhou Sonac Protein Co. Ltd (52%) | China | |
Vada BVBA | Belgium | |
Zhejiang Sonac Biology Co. Ltd (65%) | China | |
Treuhand SNP Icker GmbH | Germany | |
Sonac Brazil Processamento De Sangue E De Subprodutos Do Abate Ltda | Brazil | |
Schmalzbaron Handels GmbH | Germany |
1. | I have reviewed this annual report on Form 10-K of Darling Ingredients Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstance under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | February 28, 2017 |
1. | I have reviewed this annual report on Form 10-K of Darling Ingredients Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstance under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | February 28, 2017 |
/s/ Randall C. Stuewe | /s/ John O. Muse | ||
Randall C. Stuewe | John O. Muse | ||
Chief Executive Officer | Chief Financial Officer | ||
Date: February 28, 2017 | Date: February 28, 2017 |
December 31, | ||||||||
2016 | 2015 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 166,917,712 | $ | 44,246,929 | ||||
Receivables | 54,123,377 | 172,208,558 | ||||||
Receivables—due from related party | 13,952,095 | 5,765,858 | ||||||
Inventory | 31,243,313 | 38,282,816 | ||||||
Prepaid expenses and other | 2,497,117 | 940,027 | ||||||
Total current assets | 268,733,614 | 261,444,188 | ||||||
Property, plant and equipment, at cost | 412,005,794 | 397,447,389 | ||||||
Accumulated depreciation | (57,134,362 | ) | (41,217,164 | ) | ||||
Property, plant and equipment, net | 354,871,432 | 356,230,225 | ||||||
Deferred charges and other assets, net | 12,164,086 | 3,033,932 | ||||||
Total assets | $ | 635,769,132 | $ | 620,708,345 | ||||
LIABILITIES AND MEMBERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Current portion of related party debt | $ | 17,022,938 | $ | 62,022,938 | ||||
Accounts payable | 9,835,764 | 6,343,591 | ||||||
Accounts payable—due to related party | 11,466,319 | 10,242,394 | ||||||
Accrued interest—due to related party | 1,446,976 | 3,042,983 | ||||||
Taxes other than income taxes | 138,243 | 106,749 | ||||||
Other accrued expenses | 313,020 | 199,224 | ||||||
Total current liabilities | 40,223,260 | 81,957,879 | ||||||
Related party debt, less current portion | 53,753,031 | 86,818,635 | ||||||
Other long-term liabilities | 417,645 | 380,583 | ||||||
Commitments | ||||||||
Members’ equity: | ||||||||
Paid-in capital | 223,377,260 | 223,377,260 | ||||||
Retained earnings | 317,997,936 | 228,173,988 | ||||||
Total members’ equity | 541,375,196 | 451,551,248 | ||||||
Total liabilities and members’ equity | $ | 635,769,132 | $ | 620,708,345 |
Year Ended December 31, | ||||||||
2016 | 2015 | |||||||
Operating revenues | $ | 527,670,493 | $ | 475,934,054 | ||||
Costs and expenses: | ||||||||
Cost of sales | 308,396,359 | 256,447,306 | ||||||
Operating expenses | 43,269,764 | 40,980,039 | ||||||
General and administrative expenses | 1,556,616 | 1,518,588 | ||||||
Depreciation, amortization and accretion expense | 27,821,073 | 19,714,439 | ||||||
Total costs and expenses | 381,043,812 | 318,660,372 | ||||||
Operating income | 146,626,681 | 157,273,682 | ||||||
Other income, net | 551,078 | 120,015 | ||||||
Interest and debt expense: | ||||||||
Incurred | (7,970,753 | ) | (13,717,803 | ) | ||||
Capitalized | 616,942 | 113,844 | ||||||
Interest and debt expense, net | (7,353,811 | ) | (13,603,959 | ) | ||||
Net income | $ | 139,823,948 | $ | 143,789,738 |
Diamond | Darling | Total | ||||||||||
Alternative | Green | Members’ | ||||||||||
Energy, LLC | Energy LLC | Equity | ||||||||||
Balances as of December 31, 2014 | $ | 178,880,755 | $ | 178,880,755 | $ | 357,761,510 | ||||||
Cash distributions to members | (25,000,000 | ) | (25,000,000 | ) | (50,000,000 | ) | ||||||
Net income | 71,894,869 | 71,894,869 | 143,789,738 | |||||||||
Balances as of December 31, 2015 | 225,775,624 | 225,775,624 | 451,551,248 | |||||||||
Cash distributions to members | (25,000,000 | ) | (25,000,000 | ) | (50,000,000 | ) | ||||||
Net income | 69,911,974 | 69,911,974 | 139,823,948 | |||||||||
Balances as of December 31, 2016 | $ | 270,687,598 | $ | 270,687,598 | $ | 541,375,196 |
Year Ended December 31, | ||||||||
2016 | 2015 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 139,823,948 | $ | 143,789,738 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation, amortization and accretion expense | 27,821,073 | 19,714,439 | ||||||
Inventory valuation adjustment | (1,921,883 | ) | (1,180,508 | ) | ||||
Other noncash expense | 26,600 | 31,519 | ||||||
(Increase) decrease in receivables | 118,085,181 | (31,751,859 | ) | |||||
(Increase) decrease in receivables—due from related party | (8,186,237 | ) | 10,120,413 | |||||
(Increase) decrease in inventory | 8,961,386 | (7,925,220 | ) | |||||
(Increase) decrease in prepaid expenses and other | (1,557,090 | ) | 3,583,343 | |||||
Increase (decrease) in accounts payable | 2,982,267 | (559,087 | ) | |||||
Increase (decrease) in accounts payable—due to related party | 1,202,881 | (1,813,000 | ) | |||||
Decrease in accrued interest—due to related party | (1,769,505 | ) | (1,375,717 | ) | ||||
Increase (decrease) in taxes other than income taxes | 27,083 | (5,377 | ) | |||||
Increase (decrease) in other accrued expenses | 90,695 | (16,610 | ) | |||||
Net cash provided by operating activities | 285,586,399 | 132,612,074 | ||||||
Cash flows from investing activities: | ||||||||
Capital expenditures | (14,895,477 | ) | (449,459 | ) | ||||
Deferred turnaround and catalyst costs | (19,761,217 | ) | (1,003,320 | ) | ||||
Proceeds from insurance | — | 5,132,222 | ||||||
Other investing activities, net | (193,318 | ) | — | |||||
Net cash provided by (used in) investing activities | (34,850,012 | ) | 3,679,443 | |||||
Cash flows from financing activities: | ||||||||
Repayments of related party debt | (78,065,604 | ) | (63,945,148 | ) | ||||
Cash distributions to members | (50,000,000 | ) | (50,000,000 | ) | ||||
Net cash used in financing activities | (128,065,604 | ) | (113,945,148 | ) | ||||
Net increase in cash | 122,670,783 | 22,346,369 | ||||||
Cash as of beginning of period | 44,246,929 | 21,900,560 | ||||||
Cash as of end of period | $ | 166,917,712 | $ | 44,246,929 | ||||
Supplemental cash flow information: | ||||||||
Accrued capital expenditures | 2,610,533 | 980,294 | ||||||
Accrued turnaround and catalyst expenditures | 1,050,980 | 1,658,120 | ||||||
Capitalized interest | 616,942 | 113,844 | ||||||
Interest paid | 9,566,760 | 15,025,126 |
• | turnaround costs, which are incurred in connection with planned major maintenance activities and which are deferred when incurred and amortized on a straight-line basis over the period of time estimated to lapse until the next turnaround occurs; |
• | fixed-bed catalyst costs, representing the cost of catalyst that is changed out at periodic intervals when the quality of the catalyst has deteriorated beyond its prescribed function, which are deferred when incurred and amortized on a straight-line basis over the estimated useful live of the specific catalyst; |
• | a license acquired in 2015 that provides for an increase in the feedstock that can be processed at the Plant per calendar year; and |
• | utility deposits. |
December 31, | |||||||
2016 | 2015 | ||||||
Receivables—trade | $ | 19,001,568 | $ | 13,553,598 | |||
Blenders tax credit receivable | 32,382,471 | 156,595,804 | |||||
Commodity derivative contract receivables (see Note 11) | 2,739,338 | 1,960,028 | |||||
Other receivables | — | 99,128 | |||||
Total receivables | $ | 54,123,377 | $ | 172,208,558 | |||
Receivables—due from related party | $ | 13,952,095 | $ | 5,765,858 |
December 31, | |||||||
2016 | 2015 | ||||||
Feedstocks | $ | 27,584,472 | $ | 26,762,561 | |||
Finished products | 6,167,691 | 15,989,490 | |||||
Lower of cost or market inventory valuation reserve | (2,738,434 | ) | (4,660,317 | ) | |||
Supplies | 229,584 | 191,082 | |||||
Inventories | $ | 31,243,313 | $ | 38,282,816 |
December 31, | |||||||
2016 | 2015 | ||||||
Processing units | $ | 387,530,163 | $ | 382,835,319 | |||
Administrative building | 2,790,785 | 2,790,785 | |||||
Precious metals | 5,164,318 | 5,228,462 | |||||
Computer hardware | 1,319,686 | 1,319,686 | |||||
Capital spares | 256,170 | 256,170 | |||||
Asset retirement obligation | 177,993 | 177,993 | |||||
Construction in progress | 14,766,679 | 4,838,974 | |||||
Property, plant and equipment, at cost | 412,005,794 | 397,447,389 | |||||
Accumulated depreciation | (57,134,362 | ) | (41,217,164 | ) | |||
Property, plant and equipment, net | $ | 354,871,432 | $ | 356,230,225 |
December 31, | ||||||||
2016 | 2015 | |||||||
Balance as of beginning of year | $ | 197,361 | $ | 187,427 | ||||
Accretion expense | 10,460 | 9,934 | ||||||
Balance as of end of year | $ | 207,821 | $ | 197,361 |
Year Ending December 31: | |||
2017 | $ | 18,919 | |
2018 | 19,487 | ||
2019 | 20,072 | ||
2020 | 20,674 | ||
2021 | 21,294 | ||
2022 - 2031 | 251,434 | ||
Total minimum rental payments | $ | 351,880 |
Year Ending December 31: | |||
2017 | $ | 17,022,938 | |
2018 | 17,022,938 | ||
2019 | 17,022,938 | ||
2020 | 17,022,938 | ||
2021 | 2,684,217 | ||
Total | $ | 70,775,969 |
Year Ending December 31: | |||
2017 | $ | 337,967 | |
2018 | 343,037 | ||
2019 | 348,182 | ||
2020 | 353,404 | ||
2021 | 358,705 | ||
2022 - 2031 | 3,652,371 | ||
Total minimum rental payments | $ | 5,393,666 |
• | Level 1 - Observable inputs, such as unadjusted quoted prices in active markets for identical assets or liabilities. |
• | Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities |
• | Level 3 - Unobservable inputs for the asset or liability. Unobservable inputs reflect our own assumptions about what market participants would use to price the asset or liability. The inputs are developed based on the best information available in the circumstances, which might include occasional market quotes or sales of similar instruments or our own financial data such as internally developed pricing models, discounted cash flow methodologies, as well as instruments for which the fair value determination requires significant judgment. |
December 31, 2016 | |||||||||||||||||||||||||||||||
Fair Value Hierarchy | Total Gross Fair Value | Effect of Counter-party Netting | Effect of Cash Collateral Netting | Net Carrying Value on Balance Sheet | Cash Collateral Paid or Received Not Offset | ||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Commodity derivative contracts | $ | 3,575,476 | $ | — | $ | — | $ | 3,575,476 | $ | (3,575,476 | ) | $ | — | $ | — | $ | — | ||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Commodity derivative contracts | 7,913,986 | — | — | 7,913,986 | (3,575,476 | ) | (4,338,510 | ) | — | (2,739,338 | ) |
December 31, 2015 | ||||||||||||||||||||||||||||||
Fair Value Hierarchy | Total Gross Fair Value | Effect of Counter-party Netting | Effect of Cash Collateral Netting | Net Carrying Value on Balance Sheet | Cash Collateral Paid or Received Not Offset | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||
Commodity derivative contracts | $ | 10,255,207 | $ | — | $ | — | $ | 10,255,207 | (4,930,286 | ) | $ | (3,364,893 | ) | $ | 1,960,028 | $ | — | |||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||
Commodity derivative contracts | 4,930,286 | — | — | 4,930,286 | (4,930,286 | ) | — | — | — |
December 31, 2016 | December 31, 2015 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Financial assets: | |||||||||||||||
Cash | $ | 166,917,712 | $ | 166,917,712 | $ | 44,246,929 | $ | 44,246,929 | |||||||
Financial liabilities: | |||||||||||||||
Debt | 70,775,969 | 72,635,963 | 148,841,573 | 154,338,648 |
• | The fair value of cash is the carrying value due to the low level of credit risk of these assets (Level 1). |
• | The fair value of debt is determined using the discounted cash flow method based on quoted prices provided by third-party brokers (Level 3). |
Derivative Instrument | Notional Contract Volumes | ||
Soybean oil: | |||
Futures - long | 88,859 | ||
Futures - short | 147,598 | ||
Ultra-low-sulfur diesel: | |||
Futures - long | 168 | ||
Futures - short | 651 |
December 31, 2016 | |||||||||
Balance Sheet Location | Asset Derivatives | Liability Derivatives | |||||||
Derivatives not designated as hedging instruments | |||||||||
Commodity contracts | Receivables | $ | 3,575,476 | $ | 7,913,986 |
December 31, 2015 | |||||||||
Balance Sheet Location | Asset Derivatives | Liability Derivatives | |||||||
Derivatives not designated as hedging instruments | |||||||||
Commodity contracts | Receivables | $ | 10,255,207 | $ | 4,930,286 |
Derivatives Designated as Economic Hedges | Location of Gain (Loss) Recognized in Income on Derivatives | |||||||||
Year Ended December 31, | ||||||||||
2016 | 2015 | |||||||||
Commodity contracts | Cost of sales | $ | (6,098,622 | ) | $ | 13,654,081 |
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Document and Entity Information Document - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Feb. 23, 2017 |
Jul. 02, 2016 |
|
Entity Information [Line Items] | |||
Entity Registrant Name | DARLING INGREDIENTS INC. | ||
Entity Central Index Key | 0000916540 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Public Float | $ 2,419,845,000 | ||
Entity Common Stock, Shares Outstanding | 164,714,529 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jan. 02, 2016 |
---|---|---|
Assets [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 8,090 | $ 9,732 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 301,187 | $ 252,719 |
Stockholders’ equity: | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares, issued (in shares) | 167,641,415 | 167,070,983 |
Treasury stock (in shares) | 3,028,857 | 2,335,607 |
Consolidated Statements of Operations - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Oct. 01, 2016 |
Jul. 02, 2016 |
Apr. 02, 2016 |
Jan. 02, 2016 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
|
Net Sales | $ 887,277 | $ 853,856 | $ 877,341 | $ 779,641 | $ 809,675 | $ 853,762 | $ 859,315 | $ 874,694 | $ 3,398,115 | $ 3,397,446 | $ 3,956,443 |
Costs and expenses: | |||||||||||
Cost of sales and operating expenses | 2,641,734 | 2,654,025 | 3,123,171 | ||||||||
Selling, general and administrative expense | 314,005 | 322,574 | 374,580 | ||||||||
Depreciation and amortization | 289,908 | 269,904 | 269,517 | ||||||||
Acquisition and integration costs | 100 | 300 | 500 | 1,300 | 1,200 | 5,300 | 401 | 8,299 | 24,667 | ||
Total costs and expenses | 3,246,048 | 3,254,802 | 3,791,935 | ||||||||
Operating income | 35,380 | 35,528 | 54,467 | 26,692 | 32,719 | 38,808 | 39,292 | 31,825 | 152,067 | 142,644 | 164,508 |
Other expense: | |||||||||||
Interest expense | (94,187) | (105,530) | (135,416) | ||||||||
Foreign currency losses | (1,854) | (4,911) | (13,548) | ||||||||
Other income/(expense), net | (3,866) | (6,839) | 299 | ||||||||
Total other expense | (99,907) | (117,280) | (148,665) | ||||||||
Equity in net income of unconsolidated subsidiaries | 70,379 | 73,416 | 65,609 | ||||||||
Income from operations before income taxes | 47,893 | 28,146 | 41,974 | 4,526 | 84,737 | 502 | 9,602 | 3,939 | 122,539 | 98,780 | 81,452 |
Income taxes | 15,315 | 13,501 | 13,141 | ||||||||
Net income | 41,680 | 28,890 | 33,991 | 2,663 | 85,875 | (7,357) | 4,937 | 1,824 | 107,224 | 85,279 | 68,311 |
Net income attributable to noncontrolling interests | (1,139) | (196) | (1,992) | (1,584) | (1,446) | (1,730) | (1,857) | (1,715) | (4,911) | (6,748) | (4,096) |
Net income attributable to Darling | $ 40,541 | $ 28,694 | $ 31,999 | $ 1,079 | $ 84,429 | $ (9,087) | $ 3,080 | $ 109 | $ 102,313 | $ 78,531 | $ 64,215 |
Net income per share: | |||||||||||
Basic (in dollars per share) | $ 0.25 | $ 0.17 | $ 0.19 | $ 0.01 | $ 0.51 | $ (0.06) | $ 0.02 | $ 0.00 | $ 0.62 | $ 0.48 | $ 0.39 |
Diluted (in dollars per share) | $ 0.25 | $ 0.17 | $ 0.19 | $ 0.01 | $ 0.51 | $ (0.06) | $ 0.02 | $ 0.00 | $ 0.62 | $ 0.48 | $ 0.39 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
|
Net income | $ 107,224 | $ 85,279 | $ 68,311 |
Other comprehensive income (Loss), net of tax: | |||
Foreign currency translation adjustments | (5,593) | (162,436) | (119,684) |
Pension adjustments | (1,016) | 4,202 | (20,381) |
Total other comprehensive loss, net of tax | (5,984) | (156,467) | (141,437) |
Total comprehensive income/(loss) | 101,240 | (71,188) | (73,126) |
Comprehensive income attributable to noncontrolling interests | 3,015 | 9,139 | 10,296 |
Comprehensive income/(loss) attributable to Darling | 98,225 | (80,327) | (83,422) |
Natural Gas Swap [Member] | |||
Other comprehensive income (Loss), net of tax: | |||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 0 | 0 | (113) |
Corn Option [Member] | |||
Other comprehensive income (Loss), net of tax: | |||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | $ 625 | $ 1,767 | $ (1,259) |
Consolidated Statements of Stockholders’ Equity (Parenthetical) - $ / shares |
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
---|---|---|---|
Statement of Stockholders' Equity [Abstract] | |||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 |
General |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GENERAL | GENERAL (a) NATURE OF OPERATIONS Darling Ingredients Inc., a Delaware corporation (“Darling”, and together with its subsidiaries, the “Company”), is a global developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a wide range of ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy and fertilizer industries. As further discussed in Note 2, on January 7, 2014, the Company acquired the VION Ingredients business division (“VION Ingredients”) of VION Holding, N.V., a Dutch limited liability company (“VION”), by purchasing all of the shares of VION Ingredients International (Holding) B.V., and VION Ingredients Germany GmbH, and 60% of Best Hides GmbH (collectively, the “VION Companies”), pursuant to a Sale and Purchase Agreement dated October 5, 2013, as amended, between Darling and VION (the “VION Acquisition”). The VION Ingredients business is now conducted under the name Darling Ingredients International. The Company’s business operations is conducted through a global network of over 200 locations across five continents within three business segments, Feed Ingredients, Food Ingredients and Fuel Ingredients. Comparative segment revenues and related financial information are presented in Note 20 to the consolidated financial statements.
The consolidated financial statements include the accounts of Darling and its consolidated subsidiaries. Noncontrolling interests represents the outstanding ownership interest in the Company's consolidated subsidiaries that are not owned by the Company. In the accompanying Consolidated Statements of Operations, the noncontrolling interest in net income/(loss) of the consolidated subsidiaries is shown as an allocation of the Company's net income and is presented separately as “Net income/(loss) attributable to noncontrolling interests”. In the Company's Consolidated Balance Sheets, noncontrolling interests represents the ownership interests in the Company consolidated subsidiaries' net assets held by parties other than the Company. These ownership interests are presented separately as “Noncontrolling interests” within “Stockholders' Equity.” All significant intercompany balances and transactions have been eliminated in consolidation.
The Company has a 52/53 week fiscal year ending on the Saturday nearest December 31. Fiscal years for the consolidated financial statements included herein are for the 52 weeks ended December 31, 2016, the 52 weeks ended January 2, 2016, and the 53 weeks ended January 3, 2015.
The Company considers all short-term highly liquid instruments, with an original maturity of three months or less, to be cash equivalents. Cash balances are recorded net of book overdrafts when a bank right-of-offset exists. All other book overdrafts are recorded in accounts payable and the change in the related balance is reflected in operating activities on the Consolidated Statement of Cash Flows. In addition, the Company has bank overdrafts, which are considered a form of short-term financing with changes in the related balance reflected in financing activities in the Consolidated Statement of Cash Flows.
The Company maintains allowances for doubtful accounts for estimated losses resulting from customers’ non-payment of trade accounts receivable owed to the Company. These trade receivables arise in the ordinary course of business from sales of raw material, finished product or services to the Company’s customers. The estimate of allowance for doubtful accounts is based upon the Company’s bad debt experience, prevailing market conditions, and aging of trade accounts receivable, among other factors. If the financial condition of the Company’s customers deteriorates, resulting in the customers’ inability to pay the Company’s receivables as they come due, additional allowances for doubtful accounts may be required.
Inventories are stated at the lower of cost or market. Cost is primarily determined using the first-in, first-out (FIFO) method for the Feed Ingredients and Fuel Ingredients segments. In the Food Ingredients segment cost is primarily determined based on the weighted average cost.
Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation is computed by the straight-line method over the estimated useful lives of assets: 1) Buildings and improvements, 15 to 30 years; 2) Machinery and equipment, 3 to 10 years; 3) Vehicles, 3 to 8 years; and 4) Aircraft, 7 to 10 years. Maintenance and repairs are charged to expense as incurred and expenditures for major renewals and improvements are capitalized. Intangible Assets Intangible assets with indefinite lives, and therefore, not subject to amortization, consist of trade names acquired in the acquisition of Griffin Industries Inc. on December 17, 2010 (which was subsequently converted to a limited liability company) and its subsidiaries (“Griffin”) and trade names acquired in the VION Acquisition. Intangible assets subject to amortization consist of: 1) collection routes which are made up of groups of suppliers of raw materials in similar geographic areas from which the Company derives collection fees and a dependable source of raw materials for processing into finished products; 2) permits that represent licensing of operating plants that have been acquired, giving those plants the ability to operate; 3) non-compete agreements that represent contractual arrangements with former competitors whose businesses were acquired; 4) trade names; and 5) royalty, consulting , land use rights and leasehold agreements. Amortization expense is calculated using the straight-line method over the estimated useful lives of the assets ranging from: 5 to 21 years for collection routes; 10 to 20 years for permits; 3 to 7 years for non-compete covenants; and 4 to 15 years for trade names. Royalty, consulting, land use rights and leasehold agreements are amortized over the term of the agreement.
The Company reviews the carrying value of long-lived assets for impairment when events or changes in circumstances indicate that the carrying amount of an asset, or related asset group, may not be recoverable from estimated future undiscounted cash flows. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount for which the carrying amount of the asset exceeds the fair value of the asset. In fiscal 2016, 2015 and 2014 no such events occurred requiring that the Company perform testing of its long-lived assets for impairment.
The Company performed the annual goodwill and indefinite-lived intangible assets impairment assessments at October 29, 2016 and concluded that the Company's goodwill for all reporting units and all recorded indefinite-lived intangible assets were not impaired as of that date. Goodwill and indefinite lived assets are tested annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company follows a two-step process for testing impairment. First, the fair value of each reporting unit is compared to its carrying value to determine whether an indication of impairment exists. If impairment is indicated, then the fair value of the reporting unit’s goodwill is determined by allocating the unit’s fair value of its assets and liabilities (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. The amount of impairment for goodwill is measured as the excess of its carrying value over its implied fair value. In fiscal 2016, 2015 and 2014, the fair values of the Company’s reporting units containing goodwill exceeded the related carrying values. Goodwill was approximately $1,225.9 million and $1,233.1 million at December 31, 2016 and January 2, 2016, respectively. See Note 6 for further information on the Company’s goodwill.
Environmental expenditures incurred to mitigate or prevent environmental impacts that have yet to occur and that otherwise may result from future operations are capitalized. Expenditures that relate to an existing condition caused by past operations and that do not contribute to current or future revenues are expensed or charged against established environmental reserves. Reserves are established when environmental impacts have been identified which are probable to require mitigation and/or remediation and the costs are reasonably estimable.
The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company periodically assesses whether it is more likely than not that it will generate sufficient taxable income to realize its deferred income tax assets. In making this determination, the Company considers all available positive and negative evidence and makes certain assumptions. The Company considers, among other things, its deferred tax liabilities, the overall business environment, its historical earnings and losses, current industry trends and its outlook for taxable income in future years. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained upon examination by the relevant taxing authority. Adjustments are made to the reserves for uncertain tax positions when facts and circumstances change or additional information is available. Judgment is required to assess the impact of ongoing audits conducted by tax authorities in determining the Company’s consolidated income tax provision. The Company recognizes accrued interest and penalties on tax related matters as a component of income tax expense.
Basic income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares including non-vested and restricted shares with participation rights outstanding during the period. Diluted income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares outstanding during the period increased by dilutive common equivalent shares determined using the treasury stock method.
For fiscal 2016, 2015 and 2014, respectively, 1,148,707, 790,092 and 319,240 outstanding stock options were excluded from diluted income per common share as the effect was antidilutive. For fiscal 2016, 2015 and 2014, respectively, 758,557, 587,961 and 751,444 non-vested stock were excluded from diluted income per common share as the effect was antidilutive.
The Company recognizes compensation expense ratably over the vesting period in an amount equal to the fair value of the share-based payments (e.g., stock options and non-vested and restricted stock) granted to employees and non-employee directors or by incurring liabilities to an employee or other supplier (a) in amounts based, at least in part, on the price of the entity’s shares or other equity instruments, or (b) that require or may require settlement by issuing the entity’s equity shares or other equity instruments. Total stock-based compensation recognized in the statement of operations for the years ended December 31, 2016, January 2, 2016 and January 3, 2015 was approximately $10.3 million, $9.0 million and $20.9 million, respectively, which is included in selling, general and administrative expenses, and the related income tax benefit recognized was approximately $3.4 million, $3.3 million and $5.9 million, respectively. See Note 13 for further information on the Company’s stock-based compensation plans. The benefits of tax deductions in excess of recognized compensation expense are reported as a financing cash flow when recognized as current income tax benefit or as an operating cash flow when recognized as current income tax expense. For the year ended December 31, 2016 and January 2, 2016, the Company recognized $0.4 million, respectively of such tax expense as a decrease in operating cash flow. For the year ended January 3, 2015, the Company recognized $2.4 million income tax benefit as an increase in financing cash flows.
The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. If it is at least reasonably possible that the estimate of the effect on the financial statements of a condition, situation, or set of circumstances that exist at the date of the financial statements will change in the near term due to one or more future confirming events, and the effect of the change would be material to the financial statements, the Company will disclose the nature of the uncertainty and include an indication that it is at least reasonably possible that a change in the estimate will occur in the near term. If the estimate involves certain loss contingencies, the disclosure will also include an estimate of the probable loss or range of loss or state that an estimate cannot be made.
The carrying amount of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximates fair value due to the short maturity of these instruments. The Company's 5.375% Senior Notes due 2022, 4.75% Senior Notes due 2022, term loans and revolver borrowings outstanding at December 31, 2016, as described in Note 10 have a fair value based on market valuation from a third-party banks. The carrying amount for the Company’s other debt is not deemed to be significantly different than the carrying value. See Note 17 for financial instruments' fair values.
The Company makes limited use of derivative instruments to manage cash flow risks related to interest expense, natural gas usage, diesel fuel usage, inventory, forecasted sales and foreign currency exchange rates. The Company does not use derivative instruments for trading purposes. Interest rate swaps are entered into with the intent of managing overall borrowing costs by reducing the potential impact of increases in interest rates on floating-rate long-term debt. Natural gas swaps and options are entered into with the intent of managing the overall cost of natural gas usage by reducing the potential impact of seasonal weather demands on natural gas that increases natural gas prices. Heating oil swaps and options are entered into with the intent of managing the overall cost of diesel fuel usage by reducing the potential impact of seasonal weather demands on diesel fuel that increases diesel fuel prices. Corn options and future contracts are entered into with the intent of managing forecasted sales of BBP by reducing the impact of changing prices. Foreign currency forward contracts are entered into to mitigate the foreign exchange rate risk for transactions designated in a currency other than the local functional currency. Entities are required to report all derivative instruments in the statement of financial position at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, on the reason for holding the instrument. If certain conditions are met, entities may elect to designate a derivative instrument as a hedge of exposures to changes in fair value, cash flows or foreign currencies. If the hedged exposure is a cash flow exposure, the effective portion of the gain or loss on the derivative instrument is reported initially as a component of other comprehensive income (outside of earnings) and is subsequently reclassified into earnings when the forecasted transaction affects earnings. Any amounts excluded from the assessment of hedge effectiveness as well as the ineffective portion of the gain or loss is reported in earnings immediately. If the derivative instrument is not designated as a hedge, the gain or loss is recognized in earnings in the period of change. Hedge accounting treatment ceases if or when the hedge transaction is no longer probable of occurring or the hedge relationship correlation no longer qualifies for hedge accounting. At December 31, 2016, the Company had corn options outstanding that qualified and were designated for hedge accounting as well as corn options and foreign currency forward contracts that did not qualify and were not designated for hedge accounting.
The Company recognizes revenue on sales when products are shipped and the customer takes ownership and assumes risk of loss. Certain customers may be required to prepay prior to shipment in order to maintain payment protection against certain foreign and domestic sales. These amounts are recorded as unearned revenue and revenue is recognized when the products have shipped and the customer takes ownership and assumes risk of loss. The Company recognizes revenue related to grease trap servicing and industrial residual removal in the fiscal month the trap service or industrial residual removal occurs.
The Company announced in January 2011 that a wholly-owned subsidiary of Darling entered into a limited liability company agreement with a wholly-owned subsidiary of Valero Energy Corporation (“Valero”) to form Diamond Green Diesel Holdings LLC (the “DGD Joint Venture”). The Company has related party sale transactions and loan transactions with the DGD Joint Venture. See Note 22 for further information on the Company's related party transactions.
Foreign currency translation is included as a component of accumulated other comprehensive income and reflects the adjustments resulting from translating the foreign currency denominated financial statements of foreign subsidiaries into U.S. dollars. The functional currency of the Company's foreign subsidiaries is the currency of the primary economic environment in which the entity operates, which is generally the local currency of the country. Accordingly, assets and liabilities of the foreign subsidiaries are translated into U.S. dollars at fiscal year end exchange rates, including intercompany foreign currency transactions that are of long-term investment nature. Income and expense items are translated at average exchange rates occurring during the period. Changes in exchange rates that affect cash flows and the related receivables or payables are recognized as transaction gains and losses in determining net income. The Company incurred net foreign currency translation losses of approximately $3.7 million, $164.8 million and $125.9 million in fiscal 2016, fiscal 2015 and fiscal 2014, respectively.
Certain prior year amounts have been reclassified to conform to the current year presentation.
The Company evaluates subsequent events from the end of the most recent fiscal year through the date the consolidated financial statements are issued. |
Acquisitions |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS | ACQUISITIONS On January 7, 2014, the Company acquired the VION Ingredients business division from VION purchasing shares of the VION Companies as described in Note1, pursuant to a Sale and Purchase Agreement dated October 5, 2013, as amended, between Darling and VION. The VION Ingredients business is now conducted under the name Darling Ingredients International. Darling Ingredients International is a worldwide leader in the development and production of specialty ingredients from animal by-products for applications in pharmaceuticals, food, pet food, feed, fuel, bioenergy and fertilizer. On January 7, 2014, Darling Ingredients International operated a global network of production facilities across five continents covering all aspects of animal by-product processing through six brands: Rendac (bioenergy), Sonac (bone products, proteins, fats, edible fats and plasma products), Ecoson (bioenergy), Rousselot (gelatin and collagen hydrolysates), CTH (natural casings) and Best Hides (hides and skins). The purchase of the VION Companies allows the Company to have a global reach. The purchase price for the transaction was approximately€1.6 billion in cash (approximately $2.2 billion at the exchange rate of €1.00:USD$1.3605 ). The purchase price was financed through (i) borrowings under the Company’s senior secured revolving credit facility and term loan facilities; (ii) proceeds from the Company’s $874.0 million public common stock offering in the fourth quarter of fiscal 2013; and (iii) proceeds from the private offering of $500.0 million aggregate principal amount of the Company’s 5.375% Senior Notes due 2022, that closed on January 2, 2014. The following table summarizes the fair value of the assets acquired and liabilities assumed in the VION Acquisition as of January 7, 2014 (in thousands):
During the fourth quarter of fiscal 2014, the Company completed the purchase accounting for the VION Acquisition. Subsequent to the preliminary purchase price allocation in the first quarter of fiscal 2014, the Company made adjustments to the provisional amounts to increase working capital of approximately $84.0 million, decrease property, plant and equipment of approximately $27.3 million, decrease identifiable intangibles of $17.6 million, decrease goodwill of approximately $72.1 million and increase other of approximately $27.0 million. The impact of these adjustments during the measurement period did not have a material impact to earnings for fiscal 2014 or any quarterly period during fiscal 2014. Goodwill of approximately $223.2 million was assigned to the Feed Ingredients segment, approximately $375.6 million was assigned to the Food Ingredients segment and approximately $103.8 million was assigned to the Fuel Ingredients segment, respectively. Of the VION Acquisition goodwill, approximately 33% is expected to be deductible for tax purposes. Identifiable intangibles include trademarks and trade names with indefinite lives of approximately $32.0 million and definite lived intangible assets including routes of approximately $190.2 million with a weighted average useful life of 10 years, $225.6 million in permits with a weighted average useful life of 15 years and patents and other intangibles of approximately $16.5 million with a weighted average useful life of 25 years. The VION Acquisition is a taxable stock sale and as a result there were deferred taxes that were created. The Company notes that the pro forma results of operations for the below acquisition has not been presented because the effect is not deemed material to revenues and net income of the Company for any fiscal period presented. On October 1, 2014, the Company acquired substantially all of the assets of Custom Blenders Arkansas, LLC, an Indiana limited liability company, Custom Blenders Georgia, LLC, a Georgia limited liability company, Custom Blenders Indiana, Inc., an Indiana corporation, and Custom Blenders Texas, LLC, an Indiana limited liability company (collectively “Custom Blenders”), one of the leading bakery residuals recyclers in the United States. The acquisition includes Custom Blenders' operations in Indiana, Georgia, Texas, and Arkansas. The acquisition provided significant synergies to the Company's suppliers and customers in the Feed Ingredients segment. The Company paid approximately $18.8 million in cash less a contingent receivable of approximately $0.8 million recorded against goodwill and an adjustment to inventory of approximately $0.5 million recorded in fiscal 2015. The purchase price for assets consisting of property, plant and equipment of approximately $3.2 million, intangible assets of approximately $8.6 million, goodwill of approximately $5.2 million and inventory of approximately $1.0 million. The identifiable intangibles have a weighted average life of 14 years. |
Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES A summary of inventories follows (in thousands):
The Company's work in process inventory represents inventory in the Food Ingredients segment that is in various stages of processing. |
Property, Plant and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT A summary of property, plant and equipment follows (in thousands):
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Intangbile assets |
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INTANGIBLE ASSETS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS | INTANGIBLE ASSETS The gross carrying amount of intangible assets not subject to amortization and intangible assets subject to amortization is as follows (in thousands):
Gross intangible routes, permits, trade names, non-compete agreements and other intangibles partially decreased in fiscal 2016 and fiscal 2015 by approximately $27.7 million and $7.7 million, respectively as a result of asset retirements. Amortization expense for the three years ended December 31, 2016, January 2, 2016 and January 3, 2015, was approximately $77.7 million, $83.3 million and $83.6 million, respectively. Amortization expense for the next five fiscal years is estimated to be $75.4 million, $73.0 million, $71.8 million, $71.3 million and $70.8 million. |
Goodwill |
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GOODWILL [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL | GOODWILL Changes in the carrying amount of goodwill (in thousands):
Certain of the Company's rendering facilities are highly dependent on one or few suppliers. It is reasonably possible that certain of those suppliers could cease their operations or choose a competitor’s services, which could have a significant impact on these facilities. The process of evaluating goodwill for impairment involves the determination of the fair value of the Company's reporting units. In fiscal 2016, fiscal 2015 and fiscal 2014, the fair values of the Company’s reporting units containing goodwill exceeded the related carrying value pursuant to a quantitative assessment completed as of October 29, 2016, October 31, 2015 and October 24, 2014, respectively. |
Investment in Unconsolidated Subsidiary |
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INVESTMENT IN UNCONSOLIDATED SUBSIDIARY | INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES The Company announced on January 21, 2011 that a wholly-owned subsidiary of Darling entered into a limited liability company agreement with Valero to form the DGD Joint Venture. The DGD Joint Venture is owned 50% / 50% with Valero and was formed to design, engineer, construct and operate a renewable diesel plant (the “DGD Facility”), which is capable of processing approximately 12,000 barrels per day of input feedstock to produce renewable diesel fuel and certain other co-products, and is located adjacent to Valero's refinery in Norco, Louisiana. The DGD Joint Venture reached mechanical completion and began the production of renewable diesel in late June 2013. On May 31, 2011, the DGD Joint Venture and Diamond Green Diesel LLC, a wholly-owned subsidiary of the DGD Joint Venture (“Opco”), entered into (i) a facility agreement (the “Facility Agreement”) with Diamond Alternative Energy, LLC, a wholly-owned subsidiary of Valero (the “Lender”), and (ii) a loan agreement (the “Loan Agreement”) with the Lender, which will provide the DGD Joint Venture with a 14 year multiple advance term loan facility of approximately $221.3 million (the "JV Loan") to support the design, engineering and construction of the DGD Facility, which is now in production. The Facility Agreement and the Loan Agreement prohibit the Lender from assigning all or any portion of the Facility Agreement or the Loan Agreement to unaffiliated third parties. Opco has also pledged substantially all of its assets to the Lender, and the DGD Joint Venture has pledged all of Opco's equity interests to the Lender, until the JV Loan has been paid in full and the JV Loan has terminated in accordance with its terms. In addition to the DGD Joint Venture, the Company has investments in other unconsolidated subsidiaries that were acquired in the VION Acquisition that are insignificant to the Company. Selected financial information for the Company's DGD Joint Venture is as follows:
As of December 31, 2016, under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $270.7 million on the consolidated balance sheet and has recorded approximately $69.9 million, $71.9 million and $63.8 million in equity net income in the unconsolidated subsidiary for the years ended December 31, 2016, January 2, 2016 and January 3, 2015, respectively. Biodiesel blenders registered with the Internal Revenue Service were eligible for a tax incentive in the amount of $1.00 per gallon of renewable diesel blended with petroleum diesel to produce a mixture containing 0.1% diesel fuel. As a blender, the DGD Joint Venture has recorded approximately, $160.6 million, $156.6 million and $126.0 million in blender credits, for its fiscal years ended December 31, 2016, December 31, 2015 and December 31, 2014, respectively. These blenders credits were recorded by the DGD Joint Venture as a reduction of total costs and expenses in the above table. In fiscal 2015 and fiscal 2014, the DGD Joint Venture booked all blenders tax credits in the fourth quarter. In addition, for each of the years ended December 31, 2016 and January 2, 2016, the Company received $25.0 million in dividend distributions from the DGD Joint Venture and subsequent to December 31, 2016, the Company received a $25.0 million dividend distribution from the DGD Joint Venture. |
Accrued Expenses |
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ACCRUED EXPENSES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses consist of the following (in thousands):
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES The Company leases 14 processing plants and storage locations, land surrounding certain processing plants, three office locations under operating leases and a portion of its transportation equipment under operating and capital leases. Leases are noncancellable and expire at various times through the year 2066. Minimum rental commitments under noncancellable leases as of December 31, 2016, are as follows (in thousands):
Rent expense was approximately $43.6 million, $41.5 million and $41.0 million, for the fiscal years ended December 31, 2016, January 2, 2016 and January 3, 2015, respectively. The Company's capital lease assets are included in property, plant and equipment and the capital lease obligations are included in the Company's current and long-term debt obligations on the consolidated balance sheet. |
Debt |
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Debt | DEBT Debt consists of the following (in thousands):
In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. The ASU amends ASC (Subtopic 835-30), Interest - Imputation of Interest. The new standard requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying value of the debt liability, which is similar to the presentation of debt discounts or premiums. The costs will continue to be amortized to interest expense using the effective interest method. On January 3, 2016, the Company adopted this standard as a change in accounting principal on a retrospective basis. As of December 31, 2016 and January 2, 2016, the Company has presented debt issuance costs related to the Company's term loans and senior notes, previously reported in other assets, as direct deductions from the carrying amount of the debt liability. In addition, the Company has presented the debt issuance costs related to the Company's amended credit agreement as a deferred asset within other assets as permitted by ASU No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, which was issued in August 2015. Upon adoption of ASU No. 2015-03, other assets of approximately $29.0 million were reclassified as a deduction from the carrying value of the recognized debt liability at January 2, 2016. As of December 31, 2016, the Company had outstanding debt under a term loan facility denominated in Canadian dollars of CAD$103.6 million. See below for discussion relating to the Company's debt agreements. In addition, at December 31, 2016, the Company had capital lease obligations denominated in Canadian dollars included in debt. The current and long-term capital lease obligation was approximately CAD$1.4 million and CAD$1.3 million, respectively. As of December 31, 2016, the Company had outstanding debt under the Company's 4.75% Senior Notes due 2022 denominated in euros of €515.0 million. See below for discussion relating to the Company's debt agreements. In addition, at December 31, 2016, the Company had capital lease obligations denominated in euros included in debt. The current and long-term capital lease obligation was approximately €0.4 million and €0.2 million, respectively. Senior Secured Credit Facilities. On January 6, 2014, Darling, Darling International Canada Inc. (“Darling Canada”) and Darling International NL Holdings B.V. (“Darling NL”) entered into a Second Amended and Restated Credit Agreement (as subsequently amended, the “Amended Credit Agreement”), restating its then existing Amended and Restated Credit Agreement dated September 27, 2013, with the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other agents from time to time party thereto. Effective December 16, 2016, the Company, and certain of its subsidiaries entered into an amendment (the “Fourth Amendment”) with its lenders to the Amended Credit Agreement. Among other things, the Fourth Amendment (i) extended the maturity date of the term A loans and revolving credit facility loans under the Amended Credit Agreement from September 27, 2018 to December 16, 2021, subject to a 91-day “springing” adjustment if the term B loans are outstanding 91 days prior to the maturity date (January 6, 2021) of the term B loans; (ii) reset the amortization schedule of the term A loans to their original schedule; (iii) adjusted the applicable margin pricing grid on borrowings under the term A Loan and revolving credit facility which adjusts based on the Company’s total leverage ratio as set forth in the Amended Credit Agreement; (iv) eliminated the secured leverage ratio financial maintenance covenant so that from and after the effective date of the Fourth Amendment the Company’s financial covenants consist of maintaining of total leverage ratio not to exceed 5.50 to 1.00 and maintaining an interest coverage ratio of not less than 3.00 to 1.00; (v) modified certain of the negative covenants to include a senior leverage ratio incurrence-based test and to increase the allowances for certain actions, including debt, investments and restricted payments; and (vi) made other updates and changes. The Amended Credit Agreement provides for senior secured credit facilities in the aggregate principal amount of $2.65 billion comprised of (i) the Company's $350.0 million term loan A facility (ii) the Company's $1.3 billion term loan B facility and (iii) the Company's $1.0 billion five-year revolving loan facility (approximately $150.0 million of which will be available for a letter of credit sub-facility and $50.0 million of which will be available for a swingline sub-facility) (collectively, the “Senior Secured Credit Facilities”). The Amended Credit Agreement also permits Darling and the other borrowers thereunder to incur ancillary facilities provided by any revolving lender party to the Senior Secured Credit Facilities (with certain restrictions). Up to $500.0 million of the revolving loan facility is available to be borrowed by (x) Darling in U.S. dollars, Canadian dollars, euros and other currencies to be agreed and available to each applicable lender, (y) Darling Canada in Canadian dollars and (z) Darling NL, Darling Ingredients International Holding B.V. (“Darling BV”) and CTH Germany GmbH (“CTH”) in U.S. dollars, Canadian dollars, euros and other currencies to be agreed and available to each applicable lender. The revolving loan facility and term loan A facility will mature on December 16, 2021, subject to a 91-day “springing” adjustment if the term B loans are outstanding 91 days prior to the maturity date (January 6, 2021) of the term B loans. The revolving loan facility will be used for working capital needs, general corporate purposes and other purposes not prohibited by the Amended Credit Agreement. On June 3, 2015, the Company refinanced €504.9 million of the outstanding euro borrowings under the term loan B facility (the “Euro Term Loan B”) using the proceeds from the 4.75% Senior Notes due 2022. As a result of the refinance, the Company incurred a charge of approximately $10.6 million from the write-off of deferred loan costs related to Euro Term Loan B. The interest rate applicable to any borrowings under the term loan A facility and the revolving loan facility will equal either LIBOR/euro interbank offered rate/CDOR plus 2.00% per annum or base rate/Canadian prime rate plus 1.00% per annum, subject to certain step-ups or step-downs based on the Company's total leverage ratio. The interest rate applicable to any borrowings under the term loan B facility will equal (a) for U.S. dollar term loans, either the base rate plus 1.50% or LIBOR plus 2.50%, and (b) for euro revolver loans, the euro interbank offered rate plus 2.75%, in each case subject to a step-down based on Darling’s total leverage ratio. For term loan B loans, the LIBOR rate shall not be less than 0.75%. As of December 31, 2016, the Company had $43.3 million outstanding under the term loan A facility at LIBOR plus a margin of 2.00% per annum for a total of 2.77% per annum. The Company had $583.5 million outstanding under the term loan B facility at LIBOR plus a margin of 2.50% per annum for a total of 3.27% per annum. The Company had CAD$103.6 million outstanding under the term loan A Facility at CDOR plus a margin of 2.00% per annum for a total of 3.0247% per annum. The Company had €5.0 million outstanding under the revolver at LIBOR plus a margin of 2.00% per annum for a total of 2.00% per annum. As of December 31, 2016, the Company had availability of $968.1 million under the Amended Credit Agreement taking into account amounts borrowed and letters of credit issued of $26.6 million. The Company also has foreign bank guarantees that are not part of the Company's Amended Credit Agreement in the amount of approximately $10.1 million at December 31, 2016. In addition, the Company capitalized $4.8 million of deferred loan costs in fiscal year 2016 in connection with the Fourth Amendment. The Amended Credit Agreement contains various customary representations and warranties by the Company, which include customary use of materiality, material adverse effect and knowledge qualifiers. The Amended Credit Agreement also contains (a) certain affirmative covenants that impose certain reporting and/or performance obligations on Darling and its restricted subsidiaries, (b) certain negative covenants that generally prohibit, subject to various exceptions, Darling and its restricted subsidiaries from taking certain actions, including, without limitation, incurring indebtedness, making investments, incurring liens, paying dividends and engaging in mergers and consolidations, sale and leasebacks and asset dispositions, (c) financial covenants, which include a maximum total leverage ratio and a minimum interest coverage ratio and (d) customary events of default (including a change of control) for financings of this type. Obligations under the Senior Secured Credit Facilities may be declared due and payable upon the occurrence and during the continuance of customary events of default. 5.375% Senior Notes due 2022. On January 2, 2014, Darling Escrow Corporation, a wholly-owned subsidiary of Darling, issued $500.0 million aggregate principal amount of its 5.375% Notes due 2022 (the “5.375% Notes”) pursuant to a 5.375% Notes Indenture, dated as of January 2, 2014 (the “Original 5.375% Indenture”), among Darling Escrow Corporation, the subsidiary guarantors party thereto from time to time, and U.S. Bank National Association, as trustee (the “5.375% Trustee”). On January 8, 2014, Darling Escrow Corporation merged with and into Darling and entered into a supplemental indenture with Darling, the subsidiary guarantors party thereto and the 5.375% Trustee (the “Supplemental 5.375% Indenture,” and together with the Original 5.375% Indenture, the “5.375% Indenture”), pursuant to which Darling assumed all obligations under the 5.375% Notes and the 5.375% Indenture. Darling and the 5.375% Guarantors completed a registered exchange offer for the 5.375% Notes under the Securities Act during the third quarter of 2014. Darling used a portion of the proceeds from the offering of the 5.375% Notes to pay certain fees and expenses (including bank fees and expenses) related to the offering and the financing of its acquisition of its Darling Ingredients International business from VION and for purposes of satisfying, discharging and redeeming its 8.5% Notes due 2018. Darling used the remaining proceeds of the 5.375% Notes to pay certain other fees and expenses related to the completion of the VION Acquisition and its related financings, to repay a portion of the borrowings under its revolving credit facility used to fund a portion of the consideration for the VION Acquisition and for general corporate purposes. The 5.375% Notes will mature on January 15, 2022. Darling pays interest on the 5.375% Notes on January 15 and July 15 of each year, commencing on July 15, 2014. Interest on the 5.375% Notes accrues at a rate of 5.375% per annum and is payable in cash. The 5.375% Notes are guaranteed on an unsecured senior basis by all of Darling's restricted subsidiaries (other than any foreign subsidiary or any receivables entity) that guarantee the Senior Secured Credit Facilities (the “5.375% Guarantors”). The 5.375% Notes and the guarantees thereof are senior unsecured obligations of Darling and the 5.375% Guarantors and rank equally in right of payment to all of Darling's and the 5.375% Guarantors' existing and future senior unsecured indebtedness. The 5.375% Indenture contains covenants limiting Darling's ability and the ability of its restricted subsidiaries to, among other things: incur additional indebtedness or issue preferred stock; pay dividends on or make distributions or repurchases of Darling's capital stock or make other restricted payments; create restrictions on the payment of dividends or other amounts from Darling's restricted subsidiaries to Darling or Darling's other restricted subsidiaries; make loans or investments; enter into certain transactions with affiliates; create liens; designate Darling's subsidiaries as unrestricted subsidiaries; and sell certain assets or merge with or into other companies or otherwise dispose of all or substantially all of Darling's assets. Other than for extraordinary events such as change of control and defined assets sales, Darling is not required to make mandatory redemption or sinking fund payments on the 5.375% Notes. The 5.375% Notes are redeemable, in whole or in part, at any time on or after January 15, 2017 at the redemption prices specified in the 5.375% Indenture. Darling may redeem some or all of the 5.375% Notes at any time prior to January 15, 2017, at a redemption price equal to 100% of the principal amount of the 5.375% Notes redeemed, plus accrued and unpaid interest to the redemption date and an Applicable Premium as specified in the 5.375% Indenture. 4.75 % Senior Notes due 2022. On June 3, 2015, Darling Global Finance B.V. (the “4.75% Issuer”), a wholly-owned subsidiary of Darling, issued €515.0 million aggregate principal amount of the 4.75% Senior Notes due 2022 (the “4.75% Notes”) pursuant to a Senior Notes Indenture, dated as of June 3, 2015 (the “4.75% Indenture”), among the 4.75% Issuer, Darling (as guarantor), the subsidiary guarantors party thereto from time to time, Citibank, N.A., London Branch, as trustee (the “4.75% Trustee”) and principal paying agent, and Citigroup Global Markets Deutschland AG, as principal registrar. Darling used the gross proceeds from the sale of the 4.75% Notes to refinance a portion of the term loan B outstanding under Darling's Senior Secured Credit Facilities and to pay certain fees and expenses related to the offering of the 4.75% Notes and the refinancing of the term loan B. Darling intends to use any remaining proceeds for general corporate purposes. The 4.75% Notes will mature on May 30, 2022. The 4.75% Issuer pays interest on the 4.75% Notes on May 30 and November 30 of each year, commencing on November 30, 2015. Interest on the 4.75% Notes accrues from June 3, 2015 at a rate of 4.75% per annum and is payable in cash. The 4.75% Notes are guaranteed on a senior unsecured basis by Darling and all of Darling's restricted subsidiaries (other than any foreign subsidiary, the 4.75% Issuer or any receivables entity) that guarantee the Senior Secured Credit Facilities (collectively “4.75% Guarantors”). The 4.75% Notes and the guarantees thereof are senior unsecured obligations of the 4.75% Issuer and the 4.75% Guarantors and rank equally in right of payment to all of the 4.75% Issuer's and the 4.75% Guarantors' existing and future senior unsecured indebtedness. The 4.75% Indenture contains covenants limiting Darling's ability and the ability of its restricted subsidiaries (including the 4.75% Issuer) to, among other things: incur additional indebtedness or issue preferred stock; pay dividends on or make other distributions or repurchases of Darling's capital stock or make other restricted payments; create restrictions on the payment of dividends or certain other amounts from Darling's restricted subsidiaries to Darling or Darling's other restricted subsidiaries; make loans or investments; enter into certain transactions with affiliates; create liens; designate Darling's subsidiaries as unrestricted subsidiaries; and sell certain assets or merge with or into other companies or otherwise dispose of all of substantially all of Darling's assets. Other than for extraordinary events such as change of control and defined assets sales, the 4.75% Issuer is not required to make mandatory redemption or sinking fund payments on the 4.75% Notes. The 4.75% Notes are redeemable, in whole or in part, at any time on or after May 30, 2018 at the redemption prices specified in the 4.75% Indenture. The 4.75% Issuer may redeem some or all of the 4.75% Notes at any time prior to May 30, 2018, at a redemption price equal to 100% of the principal amount of the 4.75% Notes redeemed, plus accrued and unpaid interest to the redemption date and an Applicable Premium as specified in the 4.75% Indenture and all additional amounts (if any) then due or which will become due on the redemption date as a result of the redemption or otherwise (subject to the rights of holders on the relevant record dates to receive interest due on the relevant interest payment date and additional amounts (if any) in respect thereof). The Company's financial covenants are effective for fiscal quarter ending April 1, 2017, which is the first full fiscal quarter after the Fourth Amendment. As of December 31, 2016, the Company believes it is in compliance with all other covenants contained in the Amended Credit Agreement, the 5.375% Indenture and the 4.75% Indenture. Maturities of long-term debt at December 31, 2016 follow (in thousands):
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Other Noncurrent Liabilities |
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OTHER NONCURRENT LIABILITIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER NONCURRENT LIABILITIES | OTHER NONCURRENT LIABILITIES Other noncurrent liabilities consist of the following (in thousands):
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES U.S. and foreign income from operations before income taxes are as follows (in thousands):
Income tax expense attributable to income from continuing operations before income taxes consists of the following (in thousands):
Income tax expense for the years ended December 31, 2016, January 2, 2016 and January 3, 2015, differed from the amount computed by applying the statutory U.S. federal income tax rate to income from continuing operations before income taxes as a result of the following (in thousands):
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2016 and January 2, 2016 are presented below (in thousands):
At December 31, 2016, the Company had net operating loss carryforwards for federal income tax purposes of approximately $193.2 million, which begin to expire in 2019 through 2036. As a result of the change in ownership which occurred pursuant to the May 2002 recapitalization, utilization of approximately $4.9 million of the federal net operating loss carryforwards is limited to approximately $0.7 million per year for the remaining life of the net operating losses. The Company had approximately $172.6 million of net operating loss carryforwards for state income tax purposes, which expire in 2019 through 2036. Also at December 31, 2016, the Company had U.S. foreign tax credit carryforwards of approximately $2.2 million and state tax credit carryforwards of approximately $1.0 million. The Company had foreign net operating loss carryforwards of about $168.3 million, $84.1 million of which expire in 2017 through 2036 and $84.2 million of which can be carried forward indefinitely. As of December 31, 2016, the Company had a valuation allowance of $4.8 million due to uncertainties in respect to its ability to utilize its U.S. (federal and state) net operating loss and tax credit carryforwards before they expire. The Company also had a valuation allowance of $15.4 million due to uncertainties in its ability to utilize foreign net operating loss carryforwards and other foreign deferred tax assets. At December 31, 2016, the Company had unrecognized tax benefits of approximately $4.7 million. An indemnity receivable of $3.0 million has also been recorded in respect to the VION Acquisition. There was no material income statement activity in fiscal 2016 in respect to unrecognized tax benefits. All of the unrecognized tax benefits would favorably impact the Company's effective tax rate if recognized. The Company believes it is reasonably possible that unrecognized tax benefits could change by $1.7 million in the next twelve months. The possible change in unrecognized tax benefits relates to the expiration of certain statutes of limitation and the possible settlement of an ongoing income tax audit. The Company recognizes accrued interest and penalties, as appropriate, related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2016, interest and penalties related to unrecognized tax benefits were $1.5 million. These interest and penalties related to the unrecognized tax benefits from the VION Acquisition and were primarily recorded in purchase accounting. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):
In fiscal 2016, the Company's major taxing jurisdictions are U.S. (federal and state), Belgium, Brazil, Canada, China, France, Germany and the Netherlands. The Company is currently subject to federal and state examinations in the U.S. for tax years 2012 through 2014. The Company is also subject to regular examination by various foreign tax authorities. Although the final outcome of these examinations is not yet determinable, the Company does not anticipate that any of the examinations will have a significant impact on the Company's results of operations or financial position. The statute of limitations for the Company's major jurisdictions is open for varying periods, but is generally closed through the 2010 tax year. Prior to fiscal 2014, the Company did not have significant operations outside of the U.S. During fiscal 2013, the Company began operations in Canada through the Rothsay Acquisition. During fiscal 2014, the Company began operations in the other major taxing jurisdictions through the VION Acquisition. The Company generally expects to indefinitely reinvest the earnings of its foreign subsidiaries outside the U.S. and has not provided deferred income taxes on the accumulated earnings of its foreign subsidiaries except for the accumulated earnings of certain joint venture companies. At December 31, 2016, the amount of undistributed foreign subsidiary earnings indefinitely reinvested outside of the U.S. for which no U.S. deferred incomes taxes have been provided is approximately $71.8 million. It is not practicable to determine the deferred tax liability related to these undistributed earnings. |
Stockholders' Equity and Stock-Based Compensation |
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Stockholders' Equity and Stock-Based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION | STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION In August 2015, the Company's Board of Directors approved a share repurchase program of up to an aggregate of $100.0 million of the Company's Common Stock depending on market conditions. The repurchases may be made from time to time on the open market at prevailing market prices or in negotiated transactions off the market. Repurchases may occur over the 24 month period ending in August 2017, unless extended or shortened by the Board of Directors. As of December 31, 2016, the Company has approximately $89.1 million remaining under the share repurchase program approved in August 2015. On May 8, 2012, the shareholders approved the Company's 2012 Omnibus Incentive Plan (the “2012 Omnibus Plan”). The 2012 Omnibus Plan replaced the Company's 2004 Omnibus Incentive Plan (the “2004 Omnibus Plan”) for future grants. Under the 2012 Omnibus Plan, the Company can grant stock options, stock appreciation rights, non-vested and restricted stock (including performance stock), restricted stock units (including performance units), other stock-based awards, non-employee director awards, dividend equivalents and cash-based awards. There are up to 11,066,544 common shares available under the 2012 Omnibus Plan which may be granted to participants in any plan year (as such term is defined in the 2012 Omnibus Plan). Some of those shares are subject to outstanding awards as detailed in the tables below. To the extent these outstanding awards are forfeited or expire without exercise, the shares will be returned to and available for future grants under the 2012 Omnibus Plan. The 2012 Omnibus Plan’s purpose is to attract, retain and motivate employees, directors and third party service providers of the Company and to encourage them to have a financial interest in the Company. The 2012 Omnibus Plan is administered by the Compensation Committee (the “Committee”) of the Board of Directors. The Committee has the authority to select plan participants, grant awards, and determine the terms and conditions of such awards as provided in the 2012 Omnibus Plan. The Committee has adopted an executive compensation program that includes a long-term incentive component (the “LTIP”) for the Company's key employees, as a subplan under the terms of the 2012 Omnibus Plan. The principal purpose of the LTIP is to encourage the Company's executives to enhance the value of the Company and, hence, the price of the Company’s stock and the stockholders' return. In addition, the LTIP is designed to create retention incentives for the individual and to provide an opportunity for increased equity ownership by executives. At December 31, 2016, the number of common shares available for issuance under the 2012 Omnibus Plan was 4,566,505. For fiscal 2015 and 2014, the Committee awarded dollar value performance based restricted stock and stock option opportunities under the LTIP to certain of the Company's key employees, including the Chief Executive Officer and other executive officers, and such restricted stock and stock options were issued only if predetermined financial objectives were met by the Company. The Company met the financial objectives for fiscal 2015 and fiscal 2014 and those shares and options were issued in accordance with the terms of the LTIP. Beginning in fiscal 2016, a shift was made in the LTIP from backward-looking performance-based restricted stock and stock options to a combination of (i) annual, overlapping grants of performance share units (“PSUs”) tied to a three-year, forward-looking performance metric and (ii) annual stock option grants that vest 33.33% on the first, second and third anniversaries of grant; provided that a small portion of fiscal 2016 LTIP value was granted as one-time, non-incremental transition PSUs to facilitate the switch to a forward-looking program, with these grants tied to a two-year, forward-looking performance metric. See “Stock Option Awards” and “Fiscal 2016 LTIP PSU Awards” below for more information regarding the stock options and PSU awards, respectively, under the 2016 LTIP. The following is a summary of stock-based compensation awards granted during the years ended December 31, 2016, January 2, 2016 and January 3, 2015. Stock Option Awards. Stock options to purchase Darling common shares are granted by the Committee to certain of the Company's employees as part of the Company's LTIP under the 2012 Omnibus Plan. For the options granted under the fiscal 2015 LTIP and fiscal 2014 LTIP, the exercise price was equal to the market value of Darling common shares on the close of the trading day immediately preceding the grant date, and such options vest 25 percent upon grant and 25 percent each of the first three anniversary dates of the grant thereafter. The Company met the requisite performance measure under the 2015 LTIP, accordingly, in accordance with the terms of the 2015 LTIP, the Company granted 452,878 stock options to participants on March 7, 2016. For the options granted under the fiscal 2016 LTIP, the exercise price was equal to the closing price of Darling common shares on the date of grant, which was February 25, 2016, and such options vest 33.33% on the first, second and third anniversaries of the grant. The Company granted 1,094,306 stock options under the 2016 LTIP. During fiscal 2016, 2015 and 2014 only nonqualified stock options were issued and none of the options were incentive stock options. The Company’s stock options granted under the 2012 Omnibus Plan generally terminate 10 years after date of grant. A summary of all stock option activity as of December 31, 2016 and changes during the year ended is as follows:
The fair value of each stock option grant under the Company's stock option plan was estimated on the date of grant using the Black Scholes option-pricing model with the following weighted average assumptions and results for fiscal 2016, 2015 and 2014.
The expected lives for options granted during fiscal 2016, 2015 and 2014 were computed using the simplified method since the current option plans historical exercise data has not provided a reasonable basis for estimating the expected term for the current option grants. At December 31, 2016, $13.6 million of total future equity-based compensation expense (determined using the Black-Scholes option pricing model and Monte Carlo model for non-vested stock grants with performance based incentives) related to outstanding non-vested options and stock awards is expected to be recognized over a weighted average period of 1.4 years. For the year ended December 31, 2016, the amount of cash received from the exercise of options was approximately $0.2 million and the related tax benefit was less than $0.1 million. For the year ended January 2, 2016, the amount of cash received from the exercise of options was approximately $0.2 million and the related tax benefit was approximately $0.4 million. For the year ended January 3, 2015 the amount of cash received from the exercise of options was approximately $0.4 million and the related tax benefits were approximately $1.2 million. The total intrinsic value of options exercised for the years ended December 31, 2016, January 2, 2016 and January 3, 2015 was approximately $0.2 million, $1.4 million and $4.5 million, respectively. The fair value of shares vested for the years ended December 31, 2016, January 2, 2016 and January 3, 2015 was approximately $8.3 million, $7.5 million and $19.6 million, respectively. At December 31, 2016, the aggregate intrinsic value of options outstanding was approximately $5.4 million and the aggregate intrinsic value of options exercisable was approximately $0.3 million. Non-Vested Stock, Restricted Stock Unit and Performance Share Unit Awards. The Company has in the past granted non-vested stock and restricted stock unit (RSU) awards to certain of the Company's employees as part of the LTIP under the 2012 Omnibus Plan, and beginning in 2016, the Company grants performance share unit awards as part of the LTIP. In addition, the Company has granted performance share unit awards, individual non-vested stock and RSU awards to key employees from time to time at the discretion of the Committee. Non-vested stock is generally granted to U.S. based employees, and generally vests 25 percent upon grant and 25 percent each of the first three anniversary dates of the grant thereafter. RSUs are generally granted to foreign based employees, with each RSU equivalent to one share of common stock and payable upon vesting in an equivalent number of shares of Darling common stock. Generally, all RSU awards vest 25 percent upon grant and 25 percent each of the first three anniversary dates of the grant thereafter. Generally, upon termination of employment (voluntary or with cause), non-vested stock, RSUs and discretionary performance share awards that have not vested are forfeited. Upon, death, disability or qualifying retirement, a pro-rata portion of the unvested non-vested and RSU awards will vest and be payable. Under the 2015 LTIP, the Company met the requisite performance measure, accordingly, in accordance with the 2015 LTIP, the Company granted 454,916 shares of nonvested stock and 147,390 restricted stock units in the first quarter of fiscal 2016. In connection with the closing of the VION Acquisition, in January 2014, the Company made awards of Performance Share Units (“2014 PSUs”) and common stock under the Company’s 2012 Omnibus Plan to certain of the Company’s key employees selected by the Committee. The awards covered an aggregate of 975,000 shares of the Company’s common stock. For North American-based executives, each award was in the form of 2014 PSUs for a specified number of shares of common stock of the Company. For European-based executives, each award was in the form of a combination of fully vested shares (representing 25% of the total award given to the European-based executives), and 2014 PSUs for a specified number of shares common stock of the Company (representing the other 75% of the award). On January 7, 2014, the Company issued 118,750 fully vested shares that were granted to the European-based executives. the 2014 PSUs were to vest in three equal installments on the first, second and third anniversaries of the closing of the VION Acquisition based on attainment of specified levels of adjusted EBITDA for the Company and/or Darling Ingredients International for fiscal years 2014, 2015 and 2016, respectively. If the target level of adjusted EBITDA for the fiscal year for both the Company and/or Darling Ingredients International was not achieved (subject to a near miss provision contained in the award agreements that provides for a portion of the shares to be paid out under certain circumstances), the installment for the related vesting date was forfeited. The performance target was achieved for 2014, and accordingly a total of 252,087 shares were paid out to the participants in March 2015; however, the requisite performance targets were not achieved for 2015 and 2016, so therefore the final two installments of the 2014 PSUs award were forfeited by each of the participants in the first quarter of fiscal 2016 and fiscal 2017 after it was determined that the performance targets for 2015 and 2016 were not achieved. A summary of the Company’s non-vested stock, restricted stock unit and performance share unit awards as of December 31, 2016, and changes during the year ended is as follows:
Fiscal 2016 LTIP PSU Awards. On February 25, 2016, the Committee granted 664,120 PSUs under the Company's 2016 LTIP, 511,120 of which are tied to a three-year, forward-looking performance metric and 153,000 of which are tied to a two-year forward-looking performance metric, with the earned award to be determined in the first quarter of fiscal 2018 and fiscal 2019, respectively, after the final results for the relevant performance period are determined. The PSUs were granted at target level; however, actual awards may vary between 0% and 225% of the target number of PSUs, depending on the performance level achieved. In addition, the number of PSUs earned may be reduced (up to 30%) or increased (capped at the maximum payout) based on the Company's total shareholder return (TSR) over the performance period. In addition, certain of the PSUs have a two-year holding requirement after vesting before the PSUs are settled in shares of the Company's Common Stock. The fair value of each 2016 LTIP PSU award under the Company's 2016 LTIP was estimated on the date of grant using a Monte Carlo model with the following weighted average assumptions for fiscal 2016, except for the illiquidity discount, which only pertains to the 2016 LTIP PSU's with a holding period requirement.
A summary of the Company’s 2016 LTIP PSU awards as of December 31, 2016, and changes during the year ended is as follows:
Nonemployee Director Restricted Stock and Restricted Stock Unit Awards. On February 24, 2011, the Company's Board of Directors approved an Amended and Restated Non-Employee Director Restricted Stock Award Plan (the “Director Restricted Stock Plan”) pursuant to and in accordance with the 2004 Omnibus Plan in order to attract and retain highly qualified persons to serve as non-employee directors and to more closely align such directors' interests with the interests of the stockholders of the Company by providing a portion of their compensation in the form of Company common stock. Under the Director Restricted Stock Plan, $60,000 in restricted Company common stock was awarded to each non-employee director on the fourth business day after the Company released its earnings for its prior completed fiscal year (the “Date of Award”). The amount of restricted stock to be issued was calculated using the closing price of the Company’s common stock on the third business day after the Company released its earnings. The restricted stock was subject to a right of repurchase at $0.01 per share upon termination of the holder as a member of the Company's board of directors for cause and was not transferable. These restrictions lapse with respect to 100% of the restricted stock upon the earliest to occur of (i) 10 years after the date of award, (ii) a Change of Control (as defined in the 2004 Omnibus Plan), and (iii) termination of the non-employee director's service with the Company, other than for “cause” (as defined in the Director Restricted Stock Plan). Beginning in fiscal 2014, the Board discontinued grants to non-employee directors under the Director Restricted Stock Plan described above, and in lieu thereof, as an additional element of annual non-employee director compensation, pursuant to the 2012 Omnibus Plan, each non-employee director now receives $90,000 of restricted stock units immediately following the Company’s annual meeting of stockholders at which such directors are elected. The number of restricted stock units to be issued is calculated using the closing price of the Company’s stock on the date of its annual meeting. The award vests (and is no longer subject to forfeiture) on the first to occur of (i) the first anniversary of the grant date, (ii) the date of the annual shareholders meeting next following the grant date, (iii) the grantee’s separation from service as a result of death or disability, or (iv) a change of control. The award will become "payable" in shares of the Company’s stock in a single lump sum payment as soon as possible following a grantee’s separation from service, subject to a grantee’s right to elect a deferral under certain circumstances. If a grantee ceases to be a director for any reason other than death or disability prior to vesting, the grantee will receive a prorated amount of the award up to the date of separation. A summary of the Company’s non-employee director restricted stock awards as of December 31, 2016, and changes during the year ended is as follows:
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Comprehensive Income |
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Comprehensive Income [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPREHENSIVE INCOME | COMPREHENSIVE INCOME The Company follows FASB authoritative guidance for reporting and presentation of comprehensive income or loss and its components. Other comprehensive income (loss) is derived from adjustments that reflect pension adjustments, natural gas derivative adjustments, corn option adjustments and foreign currency translation adjustments. The components of other comprehensive income (loss) and the related tax impacts for the years ended December 31, 2016, January 2, 2016 and January 3, 2015 are as follows (in thousands):
The following table presents changes in each component of accumulated comprehensive income (loss) as of December 31, 2016 as follows (in thousands):
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Employee Benefit Plans |
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Employee Benefit Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS The Company has retirement and pension plans covering a substantial number of its domestic and foreign employees. Most retirement benefits are provided by the Company under separate final-pay noncontributory and contributory defined benefit and defined contribution plans for all salaried and hourly employees (excluding those covered by union-sponsored plans) who meet service and age requirements. Although various defined benefit formulas exist for employees, generally these are based on length of service and earnings patterns during employment. Effective January 1, 2012, the Company's Board of Directors authorized the Company to proceed with the restructuring of its domestic retirement benefit program to include the closing of Darling's domestic salaried and hourly defined benefit plans to new participants as well as the freezing of service and wage accruals thereunder effective December 31, 2011 (a curtailment of these plans for financial reporting purposes) and the enhancing of benefits under the Company's domestic defined contribution plans. The Company-sponsored domestic hourly union plan has not been curtailed; however, several locations of the Company-sponsored domestic hourly union plan have been curtailed as a result of collective bargaining renewals for those sites. As a result of the VION Acquisition, employees of VION Ingredients became employees of Darling Ingredients International. Pursuant to the terms of the Sale and Purchase Agreement dated October 3, 2013, as amended, between Darling and VION, Darling assumed approximately $28.9 million of unfunded pension and insignificant postretirement benefit plan obligations. Effective on December 31, 2015, the largest foreign defined benefit plan was terminated. As a result of the terminated plan, all future accruals ceased, representing a curtailment of the future accruals. As part of the termination, the Company's subsidiary transferred all past service benefits and all assets in the plan to a third party insurance provider as a settlement of the plan. In place of this defined benefit plan, future benefits are now being provided for through a multiemployer plan that will be accounted for as a defined contribution plan. In fiscal 2016, two additional immaterial foreign defined benefit plans were amended and terminated resulting in curtailment and settlement gains. The Company maintains defined contribution plans both domestically and at its foreign entities. The Company's matching portion and annual employer contributions to the Company's domestic defined contribution plans for fiscal 2016, 2015 and 2014 were approximately $9.2 million, $9.3 million and $9.2 million, respectively. The Company's matching portion and annual employer contributions to the Company's foreign defined contribution plans for fiscal 2016, 2015 and 2014 were approximately $6.2 million, $3.0 million and $3.5 million, respectively. The Company recognizes the over-funded or under-funded status of the Company's defined benefit post-retirement plans as an asset or liability in the Company's balance sheet, with changes in the funded status recognized through comprehensive income in the year in which they occur. In April 2015, the FASB issued ASU No. 2015-04, Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets. The ASU amends ASC Topic 715, Compensation-Retirement Benefits. The new standard permits a reporting entity with a fiscal year-end that does not coincide with a month-end to measure defined benefit plan assets and obligations using the month-end that is closest to the entity's fiscal year-end and apply that expedient consistently from year to year. The practical expedient should be applied consistently to all plans if an entity has more than one plan. This ASU is effective for public entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those years with early adoption permitted. The Company has elected to early adopt in 2015 the month-end date of December 31 as the measurement date for all of the Company's defined benefit plans, which is the closest month-end to the Company's fiscal year-end. The following table sets forth the plans’ funded status for the Company's domestic and foreign defined benefit plans and amounts recognized in the Company's consolidated balance sheets based on the measurement date (December 31, 2016 and December 31, 2015) (in thousands):
The amounts included in “Other” in the above table reflect the impact of foreign exchange translation for plans in Argentina, Brazil, Belgium, Canada, France, Germany, Japan, Netherlands and United Kingdom. The Company's domestic pension plan benefits comprise approximately 75% and 76% of the projected benefit obligation for fiscal 2016 and fiscal 2015, respectively. Additionally, the Company has made required and tax deductible discretionary contributions to its domestic pension plans in fiscal 2016 and fiscal 2015 of approximately $0.6 million and approximately $0.4 million, respectively. The Company made required and tax deductible discretionary contributions to its foreign pension plans in fiscal 2016 and fiscal 2015 of approximately $4.7 million and $ 9.2 million, respectively.
Net pension cost includes the following components (in thousands):
Amounts recognized in accumulated other comprehensive income (loss) for the year ended (in thousands):
The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic pension cost in fiscal 2017 is as follows (in thousands):
Weighted average assumptions used to determine benefit obligations were:
Weighted average assumptions used to determine net periodic benefit cost for the employee benefit pension plans were:
Consideration was made to the long-term time horizon for the (U.S. and Canada's) plans' benefit obligations as well as the related asset class mix in determining the expected long-term rate of return. Historical returns are also considered, over the long-term time horizon, in determining the expected return. Considering the overall asset mix of approximately 60% equity and 40% fixed income with equity exposure on a declining trend since the implementation of the glide path for two of the U.S. plans, the Company believes it is reasonable to expect a long-term rate of return of 6.9% for the (U.S. and Canada's) plans' investments as a whole. The remaining foreign plans' assets are principally invested under insurance contracts arrangements which have weighted average expected long-term rate of returns of 2.7%. The investment objectives have been established in conjunction with a comprehensive review of the current and projected financial requirements. The primary investment objectives are: 1) to have the ability to pay all benefit and expense obligations when due; 2) to maximize investment returns within reasonable and prudent levels of risk in order to minimize contributions; and 3) to maintain flexibility in determining the future level of contributions. Investment results and changing discount rates are the most critical elements in achieving funding objectives; however, contributions are used as a supplemental source of funding as deemed appropriate. The investment guidelines are based upon an investment horizon of greater than ten years; therefore, interim fluctuations are viewed with this perspective. The strategic asset allocation is based on this long-term perspective and the plans' funded status. However, because the participants’ average age is somewhat older than the typical average plan age, consideration is given to retaining some short-term liquidity. Analysis of the cash flow projections of the plans indicates that benefit payments will continue to exceed contributions. The results of a thorough asset-liability study completed during 2012 established a dynamic asset allocation glide path (the “Glide Path”) by which the U.S. plans' asset allocations are determined. The Glide Path designates intervals based on funded status which contain a corresponding allocation to equities/real assets and fixed income. As the U.S. plans' funded status improves, the allocations become more conservative, and the opposite is true when the funded status declines.
The equity allocation is invested in stocks traded on one of the U.S. stock exchanges or in foreign companies whose stock is traded outside the U.S. and/or companies that conduct the major portion of their business outside the U.S. Securities convertible into such stocks, convertible bonds and preferred stock, may also be purchased. The portfolio may invest in American Depository Receipts (“ADR”). The majority of the equities are invested in mutual funds that are well-diversified among growth and value stocks, as well as large, mid, and small cap assets. This mix is balanced based on the understanding that large cap stocks are historically less volatile than small cap stocks: however, smaller cap stocks have historically outperformed larger cap stocks. The emerging markets portion of the equity allocation is held below 10% due to greater volatility in the asset class. Risk adjusted returns are the primary driver of allocation choices within these asset classes. The portfolio is well-diversified in terms of companies, industries and countries. The diversified asset portion of the allocation will invest in securities with a goal to out pace inflation and preserve their value. The securities in this allocation may consist of inflation-indexed bonds, securities of real estate companies, commodity index-linked notes, fixed-income securities, securities of natural resource companies, master limited partnerships, publicly-listed infrastructure companies, and floating rate debt. All investment objectives are expected to be achieved over a market cycle anticipated to be a period of five to seven years. Reallocations are performed on a monthly basis to retain target allocation ranges. On a quarterly basis the plans' funded status will be recalculated to determine which Glide Path interval allocation is appropriate. The following table presents fair value measurements for the Company's defined benefit plans’ assets as categorized using the fair value hierarchy under FASB authoritative guidance (in thousands):
The majority of the U.S. and Canada plan pension assets are invested in mutual funds; however, some assets are invested in pooled separate accounts (“PSA”) which have similar mutual fund counterparts. PSA accounts are generally used to access lower fund management expenses when compared to their mutual fund counterparts. The mutual funds are generally invested in institutional shares, retirement shares, or A-shares with no loads. The fair value of each mutual fund and PSA is based on the market value of the underlying investments. The U.S. pension plans PSA for fiscal 2016 utilized net asset value (“NAV”) per share (or its equivalent) to measure its investments, as a practical expedient in accordance with ASC Topic 820, Fair Value Measurements and have not been classified in the fair value hierarchy in the above table. The majority of the foreign pension assets are held under insurance contracts where the investment risk for the accumulated benefit obligation rests with the insurer, which the Company has no specific detailed asset information. The fair value measurement of plan assets using significant unobservable inputs (level 3) changed due to the following:
Contributions The Company's funding policy for employee benefit pension plans is to contribute annually not less than the minimum amount required nor more than the maximum amount that can be deducted for federal income tax purposes. Contributions are intended to provide not only for benefits attributed to service to date but also for those expected to be earned in the future. Based on current actuarial estimates, the Company expects to make payments of approximately $4.3 million to meet funding requirements for its domestic and foreign pension plans in fiscal 2017. Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands):
Multiemployer Pension Plans The Company participates in various multiemployer pension plans which provide defined benefits to certain employees covered by labor contracts in the United States. These plans are not administered by the Company and contributions are determined in accordance with provisions of negotiated labor contracts to meet their pension benefit obligations to their participants. The FASB issued guidance requiring companies to provide additional disclosures related to individually significant multiemployer pension plans. The Company's contributions to each individual multiemployer plan represent less than 5% of the total contributions to each such plan. Based on the most currently available information, the Company has determined that, if a withdrawal were to occur, withdrawal liabilities on two of the plans in which the Company currently participates could be material to the Company. The following table provides more detail on these significant multiemployer plans (contributions in thousands):
With respect to the other multiemployer pension plans in which the Company participates and which are not individually significant, six plans have certified as critical or red zone, one plan have certified as endangered or yellow zone, as defined by the Pension Protection Act of 2006. The Company's portion of contributions to all plans amounted to $3.4 million, $3.2 million and $3.3 million for the years ended December 31, 2016, January 2, 2016 and January 3, 2015, respectively. The Company has received notices in prior years of withdrawal liability from two U.S. multiemployer plans in which it participated. As of December 31, 2016, the Company has an aggregate accrued liability of approximately $1.8 million representing the present value of scheduled withdrawal liability payments under these multiemployer plans. While the Company has no ability to calculate a possible current liability for under-funded multiemployer plans that could terminate or could require additional funding under the Pension Protection Act of 2006, the amounts could be material. |
Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES | DERIVATIVES The Company’s operations are exposed to market risks relating to commodity prices that affect the Company’s cost of raw materials, finished product prices and energy costs and the risk of changes in interest rates and foreign currency exchange rates. The Company makes limited use of derivative instruments to manage cash flow risks related natural gas usage, diesel fuel usage, inventory, forecasted sales and foreign currency exchange rates. The Company does not use derivative instruments for trading purposes. Natural gas swaps and options are entered into with the intent of managing the overall cost of natural gas usage by reducing the potential impact of seasonal weather demands on natural gas that increases natural gas prices. Heating oil swaps and options are entered into with the intent of managing the overall cost of diesel fuel usage by reducing the potential impact of seasonal weather demands on diesel fuel that increases diesel fuel prices. Corn options and future contracts are entered into with the intent of managing forecasted sales of BBP by reducing the impact of changing prices. Foreign currency forward contracts are entered into to mitigate the foreign exchange rate risk for transactions designated in a currency other than the local functional currency. At December 31, 2016, the Company had corn options outstanding that qualified and were designated for hedge accounting as well as corn options and foreign currency forward contracts that did not qualify and were not designated for hedge accounting. Entities are required to report all derivative instruments in the statement of financial position at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, on the reason for holding the instrument. If certain conditions are met, entities may elect to designate a derivative instrument as a hedge of exposures to changes in fair value, cash flows or foreign currencies. If the hedged exposure is a cash flow exposure, the effective portion of the gain or loss on the derivative instrument is reported initially as a component of other comprehensive income (outside of earnings) and is subsequently reclassified into earnings when the forecasted transaction affects earnings. Any amounts excluded from the assessment of hedge effectiveness as well as the ineffective portion of the gain or loss are reported in earnings immediately. If the derivative instrument is not designated as a hedge, the gain or loss is recognized in earnings in the period of change. Cash Flow Hedges In fiscal 2015 and fiscal 2016, the Company entered into corn option contracts that are considered cash flow hedges. Under the terms of the corn option contracts the Company hedged a portion of it's forecasted sales of BBP into the fourth quarter of fiscal 2017. As of December 31, 2016, all fiscal 2015 contracts and some of the fiscal 2016 contracts have settled while the remaining contract positions and activity are disclosed below. From time to time, the Company may enter into corn option contracts in the future. As of December 31, 2016, the Company had the following outstanding forward contract amounts that were entered into to hedge the future payments of intercompany note transactions, foreign currency transactions in currencies other than the functional currency and forecasted transactions in currencies other than the functional currency. All of these transactions are currently not designated for hedge accounting. (in thousands):
The Company estimates the amount that will be reclassified from accumulated other comprehensive gain at December 31, 2016 into earnings over the next 12 months will be approximately $4.0 million. As of December 31, 2016, no amounts have been reclassified into earnings as a result of the discontinuance of cash flow hedges. The following table presents the fair value of the Company’s derivative instruments as of December 31, 2016 and January 2, 2016 (in thousands):
The effect of the Company's derivative instruments on the consolidated financial statements for the fiscal years ended December 31, 2016 and January 2, 2016 are as follows (in thousands):
The table below summarizes the effect of derivatives not designated as hedges on the Company's consolidated statements of operations for the year ended December 31, 2016, January 2, 2016 and January 3, 2015 (in thousands):
At December 31, 2016, the Company had forward purchase agreements in place for purchases of approximately $9.8 million of natural gas and diesel fuel. These forward purchase agreements have no net settlement provisions and the Company intends to take physical delivery. Accordingly, the forward purchase agreements are not subject to the requirements of fair value accounting because they qualify as normal purchases as defined. |
Fair Value Measurement |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT FASB authoritative guidance which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements including guidance related to nonrecurring measurements of nonfinancial assets and liabilities. The following tables presents the Company's financial instruments that are measured at fair value on a recurring and nonrecurring basis as of December 31, 2016 and January 2, 2016 and are categorized using the fair value hierarchy under FASB authoritative guidance. The fair value hierarchy has three levels based on the reliability of the inputs used to determine the fair value.
Derivative assets consist of the Company's heating oil option contracts, corn option contracts and foreign currency contracts, which represents the difference between the observable market rates of commonly quoted intervals for similar assets and liabilities in active markets and the fixed swap and option rate considering the instruments term, notional amount and credit risk. See Note 16 Derivatives for breakdown by instrument type. Derivative liabilities consist of the Company's heating oil swap contracts and corn option contracts, which represent the difference between the observable market rates of commonly quoted intervals for similar assets and liabilities in active markets and the fixed swap rate considering the instrument’s term, notional amount and credit risk. See Note 16 Derivatives for breakdown by instrument type. The carrying amount of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximates fair value due to the short maturity of these instruments and as such have been excluded from the table above. The carrying amount for the Company's other debt is not deemed to be significantly different than the fair value and all other instruments have been recorded at fair value. The fair value of the senior notes, term loan A, term loan B and revolver debt is based on market quotation from third-party banks. |
Concentration of Credit Risk |
12 Months Ended |
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Dec. 31, 2016 | |
CONCENTRATION OF CREDIT RISK [Abstract] | |
CONCENTRATION OF CREDIT RISK | CONCENTRATION OF CREDIT RISK Concentration of credit risk is limited due to the Company's diversified customer base and the fact that the Company sells commodities. No single customer accounted for more than 10% of the Company’s net sales in fiscal years 2016, 2015 and 2014. |
Contingencies |
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Dec. 31, 2016 | |
Contingencies [Abstract] | |
CONTINGENCIES | CONTINGENCIES The Company is a party to various lawsuits, claims and loss contingencies arising in the ordinary course of its business, including insured worker's compensation, auto, and general liability claims, assertions by certain regulatory and governmental agencies related to permitting requirements and/or air, wastewater and storm water discharges from the Company's processing facilities, litigation involving tort, contract, statutory, labor, employment, and other claims, and tax matters. The Company’s workers compensation, auto and general liability policies contain significant deductibles or self-insured retentions. The Company estimates and accrues its expected ultimate claim costs related to accidents occurring during each fiscal year under these insurance policies and carries this accrual as a reserve until these claims are paid by the Company. As a result of the matters discussed above, the Company has established loss reserves for insurance, environmental, litigation and tax contingencies. At December 31, 2016 and January 2, 2016, the reserves for insurance, environmental, litigation and tax contingencies reflected on the balance sheet in accrued expenses and other non-current liabilities were approximately $51.9 million and $54.6 million, respectively. The Company has insurance recovery receivables of approximately $15.9 million and $12.2 million, as of December 31, 2016 and January 2, 2016, related to the insurance contingencies. The Company's management believes these reserves for contingencies are reasonable and sufficient based upon present governmental regulations and information currently available to management; however, there can be no assurance that final costs related to these contingencies will not exceed current estimates. The Company believes that the likelihood is remote that any additional liability from the lawsuits and claims that may not be covered by insurance would have a material effect on the Company's financial position, results of operations or cash flows. Lower Passaic River Area. In December 2009, the Company, along with numerous other entities, received notice from the United States Environmental Protection Agency (“EPA”) that the Company (as successor-in-interest to Standard Tallow Company) is considered a potentially responsible party (a “PRP”) with respect to alleged contamination in the lower Passaic River area which is part of the Diamond Alkali Superfund Site located in Newark, New Jersey. The Company’s designation as a PRP is based upon the operation of a former plant site located in Newark, New Jersey by Standard Tallow Company, an entity that the Company acquired in 1996. In the letter, EPA requested that the Company join a group of other parties in funding a remedial investigation and feasibility study at the site. As of the date of this report, the Company has not agreed to participate in the funding group. In March 2016, the Company received another letter from EPA notifying the Company that it had issued a Record of Decision selecting a remedy for the lower 8.3 miles of the lower Passaic River area at an estimated cost of $1.38 billion. The EPA letter makes no demand on the Company and lays out a framework for remedial design/remedial action implementation in which the EPA will first seek funding from major PRPs. The letter indicates that the EPA has sent the letter to over 100 parties, which include large chemical and refining companies, manufacturing companies, foundries, plastic companies, pharmaceutical companies and food and consumer product companies. The Company's ultimate liability, if any, for investigatory costs, remedial costs and/or natural resource damages in connection with the lower Passaic River area cannot be determined at this time; however, as of the date of this report, the Company has found no evidence that the former Standard Tallow Company plant site contributed any of the primary contaminants of concern to the Passaic River and, therefore, there is nothing that leads the Company to believe that this matter will have a material effect on the Company's financial position, results of operations or cash flows. Fresno Facility Permit Issue. The Company has been named as a defendant and a real party in interest in a lawsuit filed on April 9, 2012 in the Superior Court of the State of California, Fresno County, styled Concerned Citizens of West Fresno vs. Darling International Inc. The complaint, as subsequently amended, alleges that the Company's Fresno facility is operating without a proper use permit and seeks, among other things, injunctive relief. The complaint had at one time also alleged that the Company's Fresno facility constitutes a continuing private and public nuisance, but the plaintiff has since amended the complaint to drop these allegations. The City of Fresno was also named as a defendant in the original complaint but has since had a judgment entered in its favor and is no longer a defendant in the lawsuit; however, in December 2013 the City of Fresno filed a motion to intervene as a plaintiff in this matter. The Superior Court heard the motion on February 4, 2014, and entered an order on February 18, 2014 denying the motion. Rendering operations have been conducted on the site since 1955, and the Company believes that it possesses all of the required federal, state and local permits to continue to operate the facility in the manner currently conducted and that its operations do not constitute a private or public nuisance. Accordingly, the Company intends to defend itself vigorously in this matter. Discovery has begun and this matter was scheduled for trial in July 2014; however, the parties have agreed to stay the litigation while they participate in a mediation process, which remains ongoing. While management cannot predict the ultimate outcome of this matter, management does not believe the outcome will have a material effect on the Company's financial condition, results of operations or cash flows. |
Business Segments |
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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 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, technical fats and blood 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 hydrolyzed collagen 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):
Business Segment Property, Plant and Equipment (in thousands):
Geographic Area Net Trade Revenues (in thousands):
The Company attributes revenues from external customers to individual foreign countries based on the origin of the Company's shipments. Long-lived assets related to the Company's operations in North America, Europe, China, South American and other were as follows (in thousands):
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Quarterly Financial Data |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED AND IN THOUSANDS EXCEPT PER SHARE AMOUNTS) | QUARTERLY FINANCIAL DATA (UNAUDITED AND IN THOUSANDS EXCEPT PER SHARE AMOUNTS):
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Related Party Transactions |
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Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | RELATED PARTY TRANSACTIONS Raw Material Agreement The Company has entered into a Raw Material Agreement with the DGD Joint Venture pursuant to which the Company will offer to supply certain animal fats and used cooking oil at market prices, up to the DGD Joint Venture's full operational requirement of feedstock, but the DGD Joint Venture is not obligated to purchase the raw material offered by the Company. Additionally, the Company may offer other feedstocks to the DGD Joint Venture, such as inedible corn oil, purchased on a resale basis. For the years ended December 31, 2016, January 2, 2016 and January 3, 2015, the Company has recorded sales to the DGD Joint Venture of approximately $150.5 million, $158.7 million and $159.8 million, respectively. At December 31, 2016 and January 2, 2016, the Company has approximately $6.3 million and $5.1 million in outstanding receivables due from the DGD Joint Venture, respectively. In addition, the Company has eliminated additional sales of approximately $4.1 million, $5.0 million and $5.1 million for the year ended December 31, 2016, January 2, 2016 and January 3, 2015, respectively to the DGD Joint Venture and deferred the Company's portion of profit on those sales relating to inventory assets still remaining on the DGD Joint Venture's balance sheet at December 31, 2016, January 2, 2016 and January 3, 2015 of approximately $0.7 million, $0.8 million and $1.3 million, respectively. Revolving Loan Agreement On February 23, 2015, Darling through its wholly owned subsidiary Darling Green Energy LLC, (“Darling Green”) and a third party Diamond Alternative Energy, LLC (“Diamond Alternative” and together with Darling Green, the “DGD Lenders”) entered into a revolving loan agreement (the “DGD Loan Agreement”) with the DGD Joint Venture Opco. The DGD Lenders have committed to make loans available to Opco in the total amount of $10.0 million with each lender committed to $5.0 million of the total commitment. Any borrowings by Opco under the DGD Loan Agreement are at the applicable annum rate equal to the sum of (a) the LIBO Rate (meaning Reuters BBA Libor Rates Page 3750) on such day plus (b) 2.50%. The DGD Loan Agreement matures on December 31, 2017, unless extended by agreement of the parties. The Opco borrowed and repaid $2.5 million and $3.5 million in fiscal 2016 and fiscal 2015, respectively plus an insignificant amount of interest to Darling Green. As of December 31, 2016, no amounts are owed to Darling Green under the DGD Loan Agreement. |
New Accounting Pronoucements |
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Dec. 31, 2016 | |
New Accounting Pronoucements [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS In January 2017, the FASB issued ASU No. 2017-04 Simplifying the Test for Goodwill Impairment. This ASU amends Topic 350, Intangibles-Goodwill and Other, which will simplify the goodwill impairment calculation by eliminating Step 2 from the current goodwill impairment test. Under the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The ASU eliminates existing guidance that requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of the assets and liabilities as if that reporting unit had been acquired in a business combination. This ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company is currently evaluating the impact of this standard. In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business. This ASU amends Topic 805, Business Combinations, which narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. This ASU requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities (collectively, the set) is not a business. In order to be considered a business, the set would need to include an input and a substantive process that together significantly contribute to the ability to create outputs. This ASU is effective for fiscal year beginning after December 15, 2017 and interim periods within those fiscal years. The Company is currently evaluating the impact of this standard. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash. This ASU amends Topic 230, Statement of Cash Flows, which includes new guidance on the classification and presentation of restricted cash in the statement of cash flows in order to eliminate the discrepancies that currently exist in how companies present these changes. This ASU requires restricted cash to be included with cash and cash equivalents when explaining the changes in cash in the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The Company is currently evaluating the impact of this standard. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. This ASU amends Topic 230, Statement of Cash Flows, which is intended to reduce the existing diversity in practice for classifying various types of cash flows including debt extinguishment costs, zero-coupon debt, contingent consideration related to business combinations, insurance proceeds, equity method distributions and beneficial interest in securitizations. This ASU is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The Company is currently evaluating the impact of this standard. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. This ASU amends Topic 718, Compensation - Stock Compensation, which simplifies several aspects of the accounting for share-based payments, including immediate recognition of all excess tax benefits and deficiencies in the income statement, changing the threshold to qualify for equity classification up to the employee' maximum statutory tax rates, allowing an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur, and clarifying the classification on the statement of cash flows for the excess tax benefit and employee taxes paid when an employer withholds shares for tax-withholding purposes. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The ASU is effective January 1, 2017. The initial adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, Simplifying the Transition to the Equity Method of Accounting. This ASU amends Topic 323, Investments - Equity Method and Joint Venture, which eliminates the requirements to retrospectively apply equity method accounting when an entity increases ownership or influence in a previously held investment. The ASU is effective for fiscal years beginning after December 15, 2016 and for interim periods therein. The adoption of this standard will not have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (topic 842). Under the new ASU, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance lessor accounting is largely unchanged. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. This ASU is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company is assessing the impact of this new standard, specifically on its consolidated balance sheets, and does not expect adoption to significantly change the recognition, measurement or presentation of lease expense within the consolidated statements of operations or cash flows. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. This ASU amends Topic 330, Inventory. The ASU simplifies the measurement of inventory by requiring certain inventory to be measured at the lower of cost and net realizable value. The ASU is effective for financial statements issued for fiscal years beginning after December 15, 2016 and for interim periods therein. The adoption of this standard will not have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which will supersede nearly all existing revenue recognition guidance under GAAP. The new ASU introduces a new five-step revenue recognition model in which an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this ASU requires disclosures sufficient to enable the users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. In July 2015, the FASB deferred the elective date of the standard by one year. This ASU allows for either full retrospective or modified retrospective adoption and will become effective for the Company for the fiscal years beginning after December 15, 2017. The Company has substantially completed its assessment of this ASU to identify any potential changes in the amount and timing of revenue recognition for its current contracts and the expected impact on the Company's business processes, systems and controls. Based on this initial assessment, except for possible income statement reclassifications, the Company does not expect the adoption of ASU No. 2014-09 to have a material impact on the Company's operations, cash flows and financial position. The Company is currently evaluating ASU No. 2014-09 to determine the transition method to utilize at adoption and any additional disclosures required. |
Guarantor Financial Information |
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Guarantor Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GUARANTOR FINANCIAL INFORMATION | GUARANTOR FINANCIAL INFORMATION The Company's 5.375% Notes and 4.75% Notes (see Note 10) are guaranteed on a senior unsecured basis by the following Notes Guarantors, each of which is a 100% directly or indirectly owned subsidiary of Darling and which constitute all of Darling's existing restricted subsidiaries that are Credit Agreement Guarantors (other than Darling's foreign subsidiaries, Darling Global Finance B.V., which issued the 4.75% Notes and is discussed further below, or any receivables entity): Darling National, Griffin and its subsidiary Craig Protein, Darling AWS LLC, Terra Holding Company, Darling Global Holdings Inc., Darling Northstar LLC, TRS, EV Acquisition, Inc., Rousselot Inc., Rousselot Dubuque Inc., Sonac USA LLC and Rousselot Peabody Inc. In addition, the 4.75% Notes, which were issued by Darling Global Finance B.V., a wholly-owned indirect subsidiary of Darling, are guaranteed on a senior unsecured basis by Darling. The Notes Guarantors, and Darling in the case of the 4.75% Notes, fully and unconditionally guaranteed the 5.375% Notes and 4.75% Notes on a joint and several basis. The following financial statements present condensed consolidating financial data for (i) Darling, (ii) the combined Notes Guarantors, (iii) the combined other subsidiaries of the Company that did not guarantee the 5.375% Notes or the 4.75% Notes (the “Non-guarantors”), and (iv) eliminations necessary to arrive at the Company's consolidated financial statements, which include condensed consolidated balance sheets as of December 31, 2016 and January 2, 2016, and the condensed consolidating statements of operations, the condensed consolidating statements of comprehensive income and the condensed consolidating statements of cash flows for the years ended December 31, 2016, January 2, 2016 and January 3, 2015. Separate financial information is not presented for Darling Global Finance B.V. since it was formed as a special purpose finance subsidiary for the purpose of issuing the 4.75% Notes and therefore does not have any substantial operations or assets. Condensed Consolidating Balance Sheet As of December 31, 2016 (in thousands)
Condensed Consolidating Balance Sheet As of January 2, 2016 (in thousands)
Condensed Consolidating Statements of Operations For the year ended December 31, 2016 (in thousands)
Condensed Consolidating Statements of Operations For the year ended January 2, 2016 (in thousands)
Condensed Consolidating Statements of Operations For the year ended January 3, 2015 (in thousands)
Condensed Consolidating Statements of Comprehensive Income/(Loss) For the year ended December 31, 2016 (in thousands)
Condensed Consolidating Statements of Comprehensive Income/(Loss) For the year ended January 2, 2016 (in thousands)
Condensed Consolidating Statements of Comprehensive Income/(Loss) For the year ended January 3, 2015 (in thousands)
Condensed Consolidating Statements of Cash Flows For the year ended December 31, 2016 (in thousands)
Condensed Consolidating Statements of Cash Flows For the year ended January 2, 2016 (in thousands)
Condensed Consolidating Statements of Cash Flows For the year ended January 3, 2015 (in thousands)
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General (Summary of Significant Accounting Policies) (Policies) |
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General [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Darling and its consolidated subsidiaries. Noncontrolling interests represents the outstanding ownership interest in the Company's consolidated subsidiaries that are not owned by the Company. In the accompanying Consolidated Statements of Operations, the noncontrolling interest in net income/(loss) of the consolidated subsidiaries is shown as an allocation of the Company's net income and is presented separately as “Net income/(loss) attributable to noncontrolling interests”. In the Company's Consolidated Balance Sheets, noncontrolling interests represents the ownership interests in the Company consolidated subsidiaries' net assets held by parties other than the Company. These ownership interests are presented separately as “Noncontrolling interests” within “Stockholders' Equity.” All significant intercompany balances and transactions have been eliminated in consolidation. |
Fiscal Year | Fiscal Year The Company has a 52/53 week fiscal year ending on the Saturday nearest December 31. Fiscal years for the consolidated financial statements included herein are for the 52 weeks ended December 31, 2016, the 52 weeks ended January 2, 2016, and the 53 weeks ended January 3, 2015. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all short-term highly liquid instruments, with an original maturity of three months or less, to be cash equivalents. Cash balances are recorded net of book overdrafts when a bank right-of-offset exists. All other book overdrafts are recorded in accounts payable and the change in the related balance is reflected in operating activities on the Consolidated Statement of Cash Flows. In addition, the Company has bank overdrafts, which are considered a form of short-term financing with changes in the related balance reflected in financing activities in the Consolidated Statement of Cash Flows. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from customers’ non-payment of trade accounts receivable owed to the Company. These trade receivables arise in the ordinary course of business from sales of raw material, finished product or services to the Company’s customers. The estimate of allowance for doubtful accounts is based upon the Company’s bad debt experience, prevailing market conditions, and aging of trade accounts receivable, among other factors. If the financial condition of the Company’s customers deteriorates, resulting in the customers’ inability to pay the Company’s receivables as they come due, additional allowances for doubtful accounts may be required. |
Inventories | Inventories Inventories are stated at the lower of cost or market. Cost is primarily determined using the first-in, first-out (FIFO) method for the Feed Ingredients and Fuel Ingredients segments. In the Food Ingredients segment cost is primarily determined based on the weighted average cost. |
Long Lived Assets | Long Lived Assets Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation is computed by the straight-line method over the estimated useful lives of assets: 1) Buildings and improvements, 15 to 30 years; 2) Machinery and equipment, 3 to 10 years; 3) Vehicles, 3 to 8 years; and 4) Aircraft, 7 to 10 years. Maintenance and repairs are charged to expense as incurred and expenditures for major renewals and improvements are capitalized. Intangible Assets Intangible assets with indefinite lives, and therefore, not subject to amortization, consist of trade names acquired in the acquisition of Griffin Industries Inc. on December 17, 2010 (which was subsequently converted to a limited liability company) and its subsidiaries (“Griffin”) and trade names acquired in the VION Acquisition. Intangible assets subject to amortization consist of: 1) collection routes which are made up of groups of suppliers of raw materials in similar geographic areas from which the Company derives collection fees and a dependable source of raw materials for processing into finished products; 2) permits that represent licensing of operating plants that have been acquired, giving those plants the ability to operate; 3) non-compete agreements that represent contractual arrangements with former competitors whose businesses were acquired; 4) trade names; and 5) royalty, consulting , land use rights and leasehold agreements. Amortization expense is calculated using the straight-line method over the estimated useful lives of the assets ranging from: 5 to 21 years for collection routes; 10 to 20 years for permits; 3 to 7 years for non-compete covenants; and 4 to 15 years for trade names. Royalty, consulting, land use rights and leasehold agreements are amortized over the term of the agreement. |
Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed of | Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed of The Company reviews the carrying value of long-lived assets for impairment when events or changes in circumstances indicate that the carrying amount of an asset, or related asset group, may not be recoverable from estimated future undiscounted cash flows. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount for which the carrying amount of the asset exceeds the fair value of the asset. |
Goodwill | Goodwill The Company performed the annual goodwill and indefinite-lived intangible assets impairment assessments at October 29, 2016 and concluded that the Company's goodwill for all reporting units and all recorded indefinite-lived intangible assets were not impaired as of that date. Goodwill and indefinite lived assets are tested annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company follows a two-step process for testing impairment. First, the fair value of each reporting unit is compared to its carrying value to determine whether an indication of impairment exists. If impairment is indicated, then the fair value of the reporting unit’s goodwill is determined by allocating the unit’s fair value of its assets and liabilities (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. The amount of impairment for goodwill is measured as the excess of its carrying value over its implied fair value. |
Environmental Expenditures | Environmental Expenditures Environmental expenditures incurred to mitigate or prevent environmental impacts that have yet to occur and that otherwise may result from future operations are capitalized. Expenditures that relate to an existing condition caused by past operations and that do not contribute to current or future revenues are expensed or charged against established environmental reserves. Reserves are established when environmental impacts have been identified which are probable to require mitigation and/or remediation and the costs are reasonably estimable. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company periodically assesses whether it is more likely than not that it will generate sufficient taxable income to realize its deferred income tax assets. In making this determination, the Company considers all available positive and negative evidence and makes certain assumptions. The Company considers, among other things, its deferred tax liabilities, the overall business environment, its historical earnings and losses, current industry trends and its outlook for taxable income in future years. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained upon examination by the relevant taxing authority. Adjustments are made to the reserves for uncertain tax positions when facts and circumstances change or additional information is available. Judgment is required to assess the impact of ongoing audits conducted by tax authorities in determining the Company’s consolidated income tax provision. The Company recognizes accrued interest and penalties on tax related matters as a component of income tax expense. |
Earnings Per Share | Earnings per Share Basic income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares including non-vested and restricted shares with participation rights outstanding during the period. Diluted income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares outstanding during the period increased by dilutive common equivalent shares determined using the treasury stock method. |
Stock Based Compensation | Stock Based Compensation The Company recognizes compensation expense ratably over the vesting period in an amount equal to the fair value of the share-based payments (e.g., stock options and non-vested and restricted stock) granted to employees and non-employee directors or by incurring liabilities to an employee or other supplier (a) in amounts based, at least in part, on the price of the entity’s shares or other equity instruments, or (b) that require or may require settlement by issuing the entity’s equity shares or other equity instruments. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. If it is at least reasonably possible that the estimate of the effect on the financial statements of a condition, situation, or set of circumstances that exist at the date of the financial statements will change in the near term due to one or more future confirming events, and the effect of the change would be material to the financial statements, the Company will disclose the nature of the uncertainty and include an indication that it is at least reasonably possible that a change in the estimate will occur in the near term. If the estimate involves certain loss contingencies, the disclosure will also include an estimate of the probable loss or range of loss or state that an estimate cannot be made. |
Derivative Instruments | Derivative Instruments The Company makes limited use of derivative instruments to manage cash flow risks related to interest expense, natural gas usage, diesel fuel usage, inventory, forecasted sales and foreign currency exchange rates. The Company does not use derivative instruments for trading purposes. Interest rate swaps are entered into with the intent of managing overall borrowing costs by reducing the potential impact of increases in interest rates on floating-rate long-term debt. Natural gas swaps and options are entered into with the intent of managing the overall cost of natural gas usage by reducing the potential impact of seasonal weather demands on natural gas that increases natural gas prices. Heating oil swaps and options are entered into with the intent of managing the overall cost of diesel fuel usage by reducing the potential impact of seasonal weather demands on diesel fuel that increases diesel fuel prices. Corn options and future contracts are entered into with the intent of managing forecasted sales of BBP by reducing the impact of changing prices. Foreign currency forward contracts are entered into to mitigate the foreign exchange rate risk for transactions designated in a currency other than the local functional currency. Entities are required to report all derivative instruments in the statement of financial position at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, on the reason for holding the instrument. If certain conditions are met, entities may elect to designate a derivative instrument as a hedge of exposures to changes in fair value, cash flows or foreign currencies. If the hedged exposure is a cash flow exposure, the effective portion of the gain or loss on the derivative instrument is reported initially as a component of other comprehensive income (outside of earnings) and is subsequently reclassified into earnings when the forecasted transaction affects earnings. Any amounts excluded from the assessment of hedge effectiveness as well as the ineffective portion of the gain or loss is reported in earnings immediately. If the derivative instrument is not designated as a hedge, the gain or loss is recognized in earnings in the period of change. Hedge accounting treatment ceases if or when the hedge transaction is no longer probable of occurring or the hedge relationship correlation no longer qualifies for hedge accounting. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue on sales when products are shipped and the customer takes ownership and assumes risk of loss. Certain customers may be required to prepay prior to shipment in order to maintain payment protection against certain foreign and domestic sales. These amounts are recorded as unearned revenue and revenue is recognized when the products have shipped and the customer takes ownership and assumes risk of loss. The Company recognizes revenue related to grease trap servicing and industrial residual removal in the fiscal month the trap service or industrial residual removal occurs. |
Foreign Currency Transactions and Remeasurement | Foreign Currency Translation and Remeasurement Foreign currency translation is included as a component of accumulated other comprehensive income and reflects the adjustments resulting from translating the foreign currency denominated financial statements of foreign subsidiaries into U.S. dollars. The functional currency of the Company's foreign subsidiaries is the currency of the primary economic environment in which the entity operates, which is generally the local currency of the country. Accordingly, assets and liabilities of the foreign subsidiaries are translated into U.S. dollars at fiscal year end exchange rates, including intercompany foreign currency transactions that are of long-term investment nature. Income and expense items are translated at average exchange rates occurring during the period. Changes in exchange rates that affect cash flows and the related receivables or payables are recognized as transaction gains and losses in determining net income. |
Reclassification | Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. |
Subsequent Events | Subsequent Events The Company evaluates subsequent events from the end of the most recent fiscal year through the date the consolidated financial statements are issued. |
General (Tables) |
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General [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income per Common Share [Table Text Block] |
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Acquisitions (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of the assets acquired and liabilities assumed in the VION Acquisition as of January 7, 2014 (in thousands):
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Inventories (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | A summary of inventories follows (in thousands):
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Property, Plant and Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | A summary of property, plant and equipment follows (in thousands):
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Intangbile assets (Tables) |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets | The gross carrying amount of intangible assets not subject to amortization and intangible assets subject to amortization is as follows (in thousands):
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Goodwill (Tables) |
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GOODWILL [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | Changes in the carrying amount of goodwill (in thousands):
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Investment in Unconsolidated Subsidiary (Tables) |
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Affiliate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments | In addition to the DGD Joint Venture, the Company has investments in other unconsolidated subsidiaries that were acquired in the VION Acquisition that are insignificant to the Company. Selected financial information for the Company's DGD Joint Venture is as follows:
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Accrued Expenses (Tables) |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCRUED EXPENSES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Payable and Accrued Liabilities | Accrued expenses consist of the following (in thousands):
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Leases (Tables) |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | Minimum rental commitments under noncancellable leases as of December 31, 2016, are as follows (in thousands):
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Debt consists of the following (in thousands):
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Schedule of Maturities of Long-term Debt | Maturities of long-term debt at December 31, 2016 follow (in thousands):
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Other Noncurrent Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER NONCURRENT LIABILITIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Liabilities, Noncurrent | Other noncurrent liabilities consist of the following (in thousands):
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Income Taxes Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign | U.S. and foreign income from operations before income taxes are as follows (in thousands):
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Schedule of Components of Income Tax Expense (Benefit) | Income tax expense attributable to income from continuing operations before income taxes consists of the following (in thousands):
A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):
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Schedule of Effective Income Tax Rate Reconciliation | Income tax expense for the years ended December 31, 2016, January 2, 2016 and January 3, 2015, differed from the amount computed by applying the statutory U.S. federal income tax rate to income from continuing operations before income taxes as a result of the following (in thousands):
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Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2016 and January 2, 2016 are presented below (in thousands):
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Stockholders' Equity and Stock-Based Compensation (Tables) |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity and Stock-Based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | A summary of all stock option activity as of December 31, 2016 and changes during the year ended is as follows:
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Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each stock option grant under the Company's stock option plan was estimated on the date of grant using the Black Scholes option-pricing model with the following weighted average assumptions and results for fiscal 2016, 2015 and 2014.
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Schedule of Nonvested Share Activity | A summary of the Company’s non-vested stock, restricted stock unit and performance share unit awards as of December 31, 2016, and changes during the year ended is as follows:
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Schedule of Share-based Payment Award, Equity Instruments Other than Options, Valuation Assumptions | The fair value of each 2016 LTIP PSU award under the Company's 2016 LTIP was estimated on the date of grant using a Monte Carlo model with the following weighted average assumptions for fiscal 2016, except for the illiquidity discount, which only pertains to the 2016 LTIP PSU's with a holding period requirement.
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Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of the Company’s non-employee director restricted stock awards as of December 31, 2016, and changes during the year ended is as follows:
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Schedule of Other Share-based Compensation, Activity [Table Text Block] | A summary of the Company’s 2016 LTIP PSU awards as of December 31, 2016, and changes during the year ended is as follows:
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Comprehensive Income (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Comprehensive Income (Loss) | The components of other comprehensive income (loss) and the related tax impacts for the years ended December 31, 2016, January 2, 2016 and January 3, 2015 are as follows (in thousands):
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Reclassification out of Accumulated Other Comprehensive Income |
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Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents changes in each component of accumulated comprehensive income (loss) as of December 31, 2016 as follows (in thousands):
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Employee Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Funded Status | The following table sets forth the plans’ funded status for the Company's domestic and foreign defined benefit plans and amounts recognized in the Company's consolidated balance sheets based on the measurement date (December 31, 2016 and December 31, 2015) (in thousands):
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Schedule of Accumulated and Projected Benefit Obligations |
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Schedule of Defined Benefit Plans Disclosures | Net pension cost includes the following components (in thousands):
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Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive income (loss) for the year ended (in thousands):
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Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic pension cost in fiscal 2017 is as follows (in thousands):
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Schedule of Assumptions Used | Weighted average assumptions used to determine benefit obligations were:
Weighted average assumptions used to determine net periodic benefit cost for the employee benefit pension plans were:
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Schedule of Target Allocation of Plan Assets |
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Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The following table presents fair value measurements for the Company's defined benefit plans’ assets as categorized using the fair value hierarchy under FASB authoritative guidance (in thousands):
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Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands):
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Multiemployer plans | The following table provides more detail on these significant multiemployer plans (contributions in thousands):
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Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | The fair value measurement of plan assets using significant unobservable inputs (level 3) changed due to the following:
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Derivatives (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | All of these transactions are currently not designated for hedge accounting. (in thousands):
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the fair value of the Company’s derivative instruments as of December 31, 2016 and January 2, 2016 (in thousands):
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Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The effect of the Company's derivative instruments on the consolidated financial statements for the fiscal years ended December 31, 2016 and January 2, 2016 are as follows (in thousands):
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Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The table below summarizes the effect of derivatives not designated as hedges on the Company's consolidated statements of operations for the year ended December 31, 2016, January 2, 2016 and January 3, 2015 (in thousands):
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Fair Value Measurement (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value measured on recurring basis | The following tables presents the Company's financial instruments that are measured at fair value on a recurring and nonrecurring basis as of December 31, 2016 and January 2, 2016 and are categorized using the fair value hierarchy under FASB authoritative guidance. The fair value hierarchy has three levels based on the reliability of the inputs used to determine the fair value.
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Business Segments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Profit/(Loss) | Business Segments (in thousands):
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Business Segment Property, Plant and Equipment | Business Segment Property, Plant and Equipment (in thousands):
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Geographic Area Net Trade Revenues | Geographic Area Net Trade Revenues (in thousands):
Long-lived assets related to the Company's operations in North America, Europe, China, South American and other were as follows (in thousands):
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Quarterly Financial Data (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information |
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Guarantor Financial Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor Financial Information Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet As of December 31, 2016 (in thousands)
Condensed Consolidating Balance Sheet As of January 2, 2016 (in thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor Financial Information Condensed Consolidating Statements Of Operations | Condensed Consolidating Statements of Operations For the year ended December 31, 2016 (in thousands)
Condensed Consolidating Statements of Operations For the year ended January 2, 2016 (in thousands)
Condensed Consolidating Statements of Operations For the year ended January 3, 2015 (in thousands)
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Guarantor Financial Information Condensed Consolidating Statements of Comprehensive Income (Loss) | Condensed Consolidating Statements of Comprehensive Income/(Loss) For the year ended December 31, 2016 (in thousands)
Condensed Consolidating Statements of Comprehensive Income/(Loss) For the year ended January 2, 2016 (in thousands)
Condensed Consolidating Statements of Comprehensive Income/(Loss) For the year ended January 3, 2015 (in thousands)
|
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Guarantor Financial Information Condensed Consolidating Statements Of Cash Flows | Condensed Consolidating Statements of Cash Flows For the year ended December 31, 2016 (in thousands)
Condensed Consolidating Statements of Cash Flows For the year ended January 2, 2016 (in thousands)
Condensed Consolidating Statements of Cash Flows For the year ended January 3, 2015 (in thousands)
|
General (Details) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016
USD ($)
segment
facilities
$ / shares
|
Oct. 01, 2016
$ / shares
|
Jul. 02, 2016
$ / shares
|
Apr. 02, 2016
$ / shares
|
Jan. 02, 2016
USD ($)
$ / shares
|
Oct. 03, 2015
$ / shares
|
Jul. 04, 2015
$ / shares
|
Apr. 04, 2015
$ / shares
|
Dec. 31, 2016
USD ($)
weeks
segment
facilities
$ / shares
shares
|
Jan. 02, 2016
USD ($)
weeks
$ / shares
shares
|
Jan. 03, 2015
USD ($)
weeks
$ / shares
shares
|
Jan. 07, 2014
USD ($)
continent
|
Dec. 29, 2013
segment
|
|
General [Line Items] | |||||||||||||
Number of Operating Segments | segment | 3 | 3 | 3 | ||||||||||
Accounting Policies [Abstract] | |||||||||||||
Number Of Weeks Year To Date | weeks | 52 | 52 | 53 | ||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||
Investments Classified As Cash Equivalents, Original Maturity | 3 months | ||||||||||||
Goodwill [Abstract] | |||||||||||||
Goodwill | $ 1,225,893 | $ 1,233,102 | $ 1,225,893 | $ 1,233,102 | $ 1,320,419 | ||||||||
Basic: | |||||||||||||
Net income | $ 102,313 | $ 78,531 | $ 64,215 | ||||||||||
Shares (in shares) | shares | 164,600,000 | 165,031,000 | 164,627,000 | ||||||||||
Basic (in dollars per share) | $ / shares | $ 0.25 | $ 0.17 | $ 0.19 | $ 0.01 | $ 0.51 | $ (0.06) | $ 0.02 | $ 0.00 | $ 0.62 | $ 0.48 | $ 0.39 | ||
Effect of dilutive securities: [Abstract] | |||||||||||||
Add: Option shares in the money and dilutive effect of nonvested stock (in shares) | shares | 1,329,000 | 168,000 | 806,000 | ||||||||||
Less: Pro-forma treasury shares (in shares) | shares | (717,000) | (80,000) | (374,000) | ||||||||||
Diluted: | |||||||||||||
Net Income | $ 102,313 | $ 78,531 | $ 64,215 | ||||||||||
Shares (in shares) | shares | 165,212,000 | 165,119,000 | 165,059,000 | ||||||||||
Diluted (in dollars per share) | $ / shares | $ 0.25 | $ 0.17 | $ 0.19 | $ 0.01 | $ 0.51 | $ (0.06) | $ 0.02 | $ 0.00 | $ 0.62 | $ 0.48 | $ 0.39 | ||
Stock Based Compensation [Abstract] | |||||||||||||
Stock-based compensation expense | $ 10,300 | $ 9,000 | $ 20,900 | ||||||||||
Employee service share-based compensation, tax benefit from compensation expense | 3,400 | 3,300 | 5,900 | ||||||||||
Payments related to tax withholding for share-based compensation | (400) | (400) | |||||||||||
Excess tax benefit from stock-based compensation | 0 | 0 | 2,420 | ||||||||||
Foreign currency translation | $ (3,700) | $ (164,800) | $ (125,900) | ||||||||||
Stock Options [Member] | |||||||||||||
Antidilutive Securities [Abstract] | |||||||||||||
Antidilutive securities excluded from computation of earnings per share, amount | shares | 1,148,707 | 790,092 | 319,240 | ||||||||||
Non Vested Stock [Member] | |||||||||||||
Antidilutive Securities [Abstract] | |||||||||||||
Antidilutive securities excluded from computation of earnings per share, amount | shares | 758,557 | 587,961 | 751,444 | ||||||||||
Vion Ingredients [Member] | |||||||||||||
General [Line Items] | |||||||||||||
Expected Business Combination, Number of Continents in which Entity Operates | continent | 5 | ||||||||||||
Goodwill [Abstract] | |||||||||||||
Goodwill | $ 702,672 | ||||||||||||
Minimum [Member] | |||||||||||||
General [Line Items] | |||||||||||||
Number of Processing and Transfer Facilities | facilities | 200 | 200 | |||||||||||
Accounting Policies [Abstract] | |||||||||||||
Number Of Weeks Year To Date | weeks | 52 | ||||||||||||
Minimum [Member] | Buildings and improvements [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Property, Plant and Equipment, Useful Life | 15 years | ||||||||||||
Minimum [Member] | Machinery and equipment [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Property, Plant and Equipment, Useful Life | 3 years | ||||||||||||
Minimum [Member] | Vehicles [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Property, Plant and Equipment, Useful Life | 3 years | ||||||||||||
Minimum [Member] | Aircraft [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Property, Plant and Equipment, Useful Life | 7 years | ||||||||||||
Minimum [Member] | Routes [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Finite-Lived Intangible Assets, Useful Life | 5 years | ||||||||||||
Minimum [Member] | Permits [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Finite-Lived Intangible Assets, Useful Life | 10 years | ||||||||||||
Minimum [Member] | Non-compete agreements [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Finite-Lived Intangible Assets, Useful Life | 3 years | ||||||||||||
Minimum [Member] | Trade Names [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Finite-Lived Intangible Assets, Useful Life | 4 years | ||||||||||||
Maximum [Member] | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Number Of Weeks Year To Date | weeks | 53 | ||||||||||||
Maximum [Member] | Buildings and improvements [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Property, Plant and Equipment, Useful Life | 30 years | ||||||||||||
Maximum [Member] | Machinery and equipment [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Property, Plant and Equipment, Useful Life | 10 years | ||||||||||||
Maximum [Member] | Vehicles [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Property, Plant and Equipment, Useful Life | 8 years | ||||||||||||
Maximum [Member] | Aircraft [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Property, Plant and Equipment, Useful Life | 10 years | ||||||||||||
Maximum [Member] | Routes [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Finite-Lived Intangible Assets, Useful Life | 21 years | ||||||||||||
Maximum [Member] | Permits [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Finite-Lived Intangible Assets, Useful Life | 20 years | ||||||||||||
Maximum [Member] | Non-compete agreements [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Finite-Lived Intangible Assets, Useful Life | 7 years | ||||||||||||
Maximum [Member] | Trade Names [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Finite-Lived Intangible Assets, Useful Life | 15 years | ||||||||||||
Best Hides GmbH [Member] | Vion Ingredients [Member] | |||||||||||||
General [Line Items] | |||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 60.00% |
Acquisitions (Details) € in Billions |
3 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Oct. 01, 2014
USD ($)
|
Jan. 07, 2014
USD ($)
brand
continent
|
Jan. 07, 2014
EUR (€)
|
Dec. 28, 2013
USD ($)
|
Dec. 31, 2016
USD ($)
|
Jan. 02, 2016
USD ($)
|
Jan. 03, 2015
USD ($)
|
Jan. 02, 2014
USD ($)
|
|
Business Acquisition [Line Items] | ||||||||
Issuance of common stock | $ 2,805,000 | $ 3,670,000 | $ 8,612,000 | |||||
Goodwill | 1,225,893,000 | 1,233,102,000 | 1,320,419,000 | |||||
Payments to Acquire Businesses, Net of Cash Acquired | 8,511,000 | 377,000 | 2,094,400,000 | |||||
Feed Ingredients [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 797,707,000 | 796,883,000 | 847,594,000 | |||||
Food Ingredients [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 317,008,000 | 323,385,000 | 346,153,000 | |||||
Fuel Ingredients [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 111,178,000 | 112,834,000 | 126,672,000 | |||||
Vion Ingredients [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment Working Capital | 84,000,000 | |||||||
Business Combination, Consideration Transferred | $ 2,200,000,000 | € 1.6 | ||||||
Foreign Currency Exchange Rate, Translation | 1.3605 | |||||||
Goodwill | $ 702,672,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | $ 375,306,000 | |||||||
Business Combination, Goodwill Deductible for Tax Purposes, Percent | 33.00% | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||||
Property plant and equipment | $ 981,009,000 | |||||||
Deferred tax liability | $ 350,003,000 | |||||||
Number of Continents in which Entity Operates | continent | 5 | |||||||
Number of Brands Entity Operates | brand | 6 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 91,200,000 | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Property, Plant, and Equipment | 27,300,000 | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | 17,600,000 | |||||||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment Goodwill | 72,100,000 | |||||||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment Other | $ 27,000,000 | |||||||
Vion Ingredients [Member] | Routes [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired finite-lived Intangible assets, weighted-average useful life | 10 years | 10 years | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||||
Identifiable intangibles | $ 190,200,000 | |||||||
Vion Ingredients [Member] | Permits [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired finite-lived Intangible assets, weighted-average useful life | 15 years | 15 years | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||||
Identifiable intangibles | $ 225,600,000 | |||||||
Vion Ingredients [Member] | Patents and Other Intangibles [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired finite-lived Intangible assets, weighted-average useful life | 25 years | 25 years | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||||
Identifiable intangibles | $ 16,500,000 | |||||||
Vion Ingredients [Member] | Feed Ingredients [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 223,200,000 | |||||||
Vion Ingredients [Member] | Food Ingredients [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 375,600,000 | |||||||
Vion Ingredients [Member] | Fuel Ingredients [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 103,800,000 | |||||||
CustomBlendersCompany [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 5,200,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | $ 1,000,000 | |||||||
Acquired finite-lived Intangible assets, weighted-average useful life | 14 years | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 18,800,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||||
Property plant and equipment | 3,200,000 | |||||||
Identifiable intangibles | 8,600,000 | |||||||
Business Combination, Contingent Consideration, Asset | $ 800,000 | |||||||
Goodwill, Period Increase (Decrease) | $ 500,000 | |||||||
Common Stock [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Issuance of common stock | $ 874,000,000 | |||||||
Senior Notes [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Face amount of debt insturment | $ 500,000,000 | |||||||
Trademarks and Trade Names [Member] | Vion Ingredients [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 32,000,000 |
Acquisitions - Recognized Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
Jan. 07, 2014 |
---|---|---|---|---|
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,225,893 | $ 1,233,102 | $ 1,320,419 | |
Vion Ingredients [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 337,278 | |||
Inventory | 375,306 | |||
Prepaid expense | 23,135 | |||
Other current assets | 3,525 | |||
Deferred tax assets | 48,639 | |||
Property plant and equipment | 981,009 | |||
Identifiable intangibles | 464,193 | |||
Goodwill | 702,672 | |||
Investment in unconsolidated subsidiaries | 27,069 | |||
Other long term assets | 1,101 | |||
Accounts payable | (210,477) | |||
Current portion of long-term debt | (26,347) | |||
Accrued expenses | (149,345) | |||
Deferred tax liability | (350,003) | |||
Long Term debt obligations | (4,109) | |||
Other noncurrent liabilities | (57,721) | |||
Noncontrolling interests | (90,919) | |||
Purchase price, net of cash acquired of $91.2 million | $ 2,075,006 |
Inventories (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jan. 02, 2016 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished product | $ 156,542 | $ 164,428 |
Work in process | 87,284 | 84,474 |
Inventory, Raw Materials, Net of Reserves | 39,859 | 48,401 |
Supplies and other | 47,130 | 47,280 |
Inventories | $ 330,815 | $ 344,583 |
Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jan. 02, 2016 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,357,761 | $ 2,161,042 |
Accumulated depreciation | (842,186) | (652,875) |
Property, plant and equipment, net | 1,515,575 | 1,508,167 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 152,949 | 156,422 |
Buildings and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 464,957 | 448,620 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,385,694 | 1,211,465 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 204,995 | 189,561 |
Aircraft [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 13,504 | 13,504 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 135,662 | $ 141,470 |
Intangbile assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jan. 02, 2016 |
---|---|---|
Intangible Assets [Line Items] | ||
Indefinite Lived Intangible Assets | $ 51,687 | $ 52,466 |
Finite Lived Intangible Assets: | 961,427 | 982,602 |
Accumulated Amortization: | (301,187) | (252,719) |
Total Intangible assets, less accumulated amortization | 711,927 | 782,349 |
Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite Lived Intangible Assets | 51,687 | 52,466 |
Routes [Member] | ||
Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets: | 374,989 | 390,888 |
Accumulated Amortization: | (105,934) | (99,819) |
Permits [Member] | ||
Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets: | 493,311 | 494,754 |
Accumulated Amortization: | (170,165) | (134,752) |
Non-compete agreements [Member] | ||
Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets: | 3,638 | 6,996 |
Accumulated Amortization: | (1,788) | (4,628) |
Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets: | 76,033 | 75,825 |
Accumulated Amortization: | (21,042) | (11,959) |
Royalty, consulting land use and leasehold [Member] | ||
Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets: | 13,456 | 14,139 |
Accumulated Amortization: | $ (2,258) | $ (1,561) |
Intangbile assets Textuals (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
|
INTANGIBLE ASSETS [Abstract] | |||
Finite-Lived Intangible Assets, Period Increase (Decrease) | $ 27.7 | $ 7.7 | |
Amortization of Intangible Assets | 77.7 | $ 83.3 | $ 83.6 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 75.4 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 73.0 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 71.8 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 71.3 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 70.8 |
Goodwill (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Goodwill [Roll Forward] | ||
Goodwill at beginning of year | $ 1,249,016 | $ 1,336,333 |
Accumulated impairment losses | (15,914) | (15,914) |
Goodwill at beginning of year | 1,233,102 | 1,320,419 |
Goodwill acquired during year | 829 | 262 |
Foreign currency translation | (8,038) | (87,579) |
Goodwill at end of year | 1,241,807 | 1,249,016 |
Accumulated impairment losses at end of year | (15,914) | (15,914) |
Goodwill at end of year | 1,225,893 | 1,233,102 |
Feed Ingredients [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill at beginning of year | 812,797 | 863,508 |
Accumulated impairment losses | (15,914) | (15,914) |
Goodwill at beginning of year | 796,883 | 847,594 |
Goodwill acquired during year | 827 | (259) |
Foreign currency translation | (3) | (50,452) |
Goodwill at end of year | 813,621 | 812,797 |
Accumulated impairment losses at end of year | (15,914) | (15,914) |
Goodwill at end of year | 797,707 | 796,883 |
Food Ingredients [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill at beginning of year | 323,385 | 346,153 |
Accumulated impairment losses | 0 | 0 |
Goodwill at beginning of year | 323,385 | 346,153 |
Goodwill acquired during year | 0 | 0 |
Foreign currency translation | (6,377) | (22,768) |
Goodwill at end of year | 317,008 | 323,385 |
Accumulated impairment losses at end of year | 0 | 0 |
Goodwill at end of year | 317,008 | 323,385 |
Fuel Ingredients [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill at beginning of year | 112,834 | 126,672 |
Accumulated impairment losses | 0 | 0 |
Goodwill at beginning of year | 112,834 | 126,672 |
Goodwill acquired during year | 2 | 521 |
Foreign currency translation | (1,658) | (14,359) |
Goodwill at end of year | 111,178 | 112,834 |
Accumulated impairment losses at end of year | 0 | 0 |
Goodwill at end of year | $ 111,178 | $ 112,834 |
Investment in Unconsolidated Subsidiary Selected Financial Information (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Assets: | |||
Property, plant and equipment, net | $ 354,871 | $ 356,230 | |
Total assets | 635,769 | 620,708 | |
Liabilities and members' equity: | |||
Total current portion of long term debt | 17,023 | 62,023 | |
Total long term debt | 53,753 | 86,819 | |
Total members' equity | 541,375 | 451,551 | |
Expenses: | |||
Operating income | 146,627 | 157,274 | $ 145,091 |
Interest and debt expense, net | (7,354) | (13,604) | (17,640) |
Diamond Green Diesel Holdings LLC Joint Venture [Member] | |||
Assets: | |||
Total current assets | 268,734 | 261,444 | |
Other assets | 12,164 | 3,034 | |
Liabilities and members' equity: | |||
Total other current liabilities | 23,200 | 19,935 | |
Total other long term liabilities | 418 | 380 | |
Total liabilities and member's equity | 635,769 | 620,708 | |
Revenues: | |||
Operating revenues | 527,670 | 475,934 | 487,834 |
Equity Method Investment, Summarized Financial Information, Total Costs and Expenses Less Depreciation, Amortization and Accretion Expense | 353,222 | 298,946 | 324,557 |
Equity Method Investment, Summarized Financial Information, Depreciation, Amortization and Accretion Expense | 27,821 | 19,714 | 18,186 |
Expenses: | |||
Other income | 551 | 120 | 82 |
Net income | $ 139,824 | $ 143,790 | $ 127,533 |
Investment in Unconsolidated Subsidiary (Details) $ in Thousands |
2 Months Ended | 3 Months Ended | 7 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 28, 2017
USD ($)
|
Jan. 02, 2016
USD ($)
|
Dec. 31, 2011 |
Dec. 31, 2016
USD ($)
barrel / day
$ / gal
|
Dec. 31, 2016
USD ($)
|
Jan. 02, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Jan. 03, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
May 31, 2011
USD ($)
|
Jan. 21, 2011 |
|
Schedule of Equity Method Investments [Line Items] | |||||||||||
Processing Capability, Barrels of Input Feedstock Per Day | barrel / day | 12,000 | ||||||||||
Investment in the joint venture | $ 247,238 | $ 292,717 | $ 292,717 | $ 247,238 | |||||||
Gain from equity method investments | $ 70,379 | 73,416 | $ 65,609 | ||||||||
Dollars per Gallon | $ / gal | 1.00 | ||||||||||
Renewable Diesel, Percentage | 0.10% | ||||||||||
Income Tax Credits and Adjustments | $ 85,400 | ||||||||||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | $ 26,317 | 26,589 | 0 | ||||||||
Diamond Green Diesel Holdings LLC Joint Venture [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||||||
Line of credit facility, term | 14 years | ||||||||||
Term loan facility | $ 221,300 | ||||||||||
Investment in the joint venture | 270,700 | 270,700 | |||||||||
Gain from equity method investments | 69,900 | 71,900 | $ 63,800 | ||||||||
Income Tax Credits and Adjustments | $ 160,600 | $ 156,600 | $ 126,000 | ||||||||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | $ 25,000 | $ 25,000 | |||||||||
Valero Energy Corporation [Member] | Diamond Green Diesel Holdings LLC Joint Venture [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||||||
Subsequent Event [Member] | Diamond Green Diesel Holdings LLC Joint Venture [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | $ 25,000 |
Accrued Expenses (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jan. 02, 2016 |
---|---|---|
ACCRUED EXPENSES [Abstract] | ||
Compensation and benefits | $ 83,355 | $ 79,087 |
Utilities and sewage | 16,446 | 16,671 |
Accrued income, ad valorem, and franchise taxes | 19,179 | 13,711 |
Reserve for self insurance, litigation, environmental and tax matters (Note 19) | 12,479 | 13,643 |
Medical claims liability | 5,070 | 3,807 |
Accrued operating expenses | 55,128 | 50,953 |
Accrued interest payable | 15,961 | 16,060 |
Other accrued expense | 35,178 | 45,893 |
Accrued expenses | $ 242,796 | $ 239,825 |
Leases (Details) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016
USD ($)
property
|
Jan. 02, 2016
USD ($)
|
Jan. 03, 2015
USD ($)
|
|
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2017 | $ 39,481 | ||
2018 | 35,653 | ||
2019 | 31,035 | ||
2020 | 19,258 | ||
2021 | 7,421 | ||
Thereafter | 14,019 | ||
Total | 146,867 | ||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2017 | 1,527 | ||
2018 | 891 | ||
2019 | 285 | ||
2020 | 144 | ||
2021 | 0 | ||
Thereafter | 0 | ||
Total | 2,847 | ||
Less amounts representing interest | (145) | ||
Capital lease obligations included in current and long-term debt | 2,702 | ||
Operating Leases, Rent Expense, Net | $ 43,600 | $ 41,500 | $ 41,000 |
Processing Plants and Storage Locations [Member] | |||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Number Of Properties Leased | property | 14 | ||
Office Locations [Member] | |||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Number Of Properties Leased | property | 3 |
Debt Schedule of Long Term Debt (Details) $ in Thousands, € in Millions |
Dec. 31, 2016
USD ($)
|
Jan. 02, 2016
USD ($)
|
Jun. 03, 2015
EUR (€)
|
---|---|---|---|
Debt Instrument [Line Items] | |||
Debt and capital lease obligations | $ 1,750,943 | $ 1,931,017 | |
Less Current Maturities | 23,247 | 45,166 | |
Long-term debt, net of current portion | 1,727,696 | 1,885,851 | |
Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 5,280 | 9,358 | |
Term Loan A Facility [Member] | Senior Secured Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 119,020 | 275,629 | |
Long-term Debt, Gross | 120,103 | 277,181 | |
Unamortized Debt Issuance Expense | (1,083) | (1,552) | |
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 577,202 | 581,726 | € 504.9 |
Long-term Debt, Gross | 583,500 | 589,500 | |
Unamortized Debt Issuance Expense | (6,298) | (7,774) | |
Senior Notes [Member] | Senior Notes 5.375% Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 492,333 | 491,048 | |
Long-term Debt, Gross | 500,000 | 500,000 | |
Unamortized Debt Issuance Expense | (7,667) | (8,952) | |
Senior Notes [Member] | Senior Notes 4.75% Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 534,884 | 550,207 | |
Long-term Debt, Gross | 543,840 | 560,912 | |
Unamortized Debt Issuance Expense | (8,956) | (10,705) | |
Other Notes and Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 22,224 | $ 23,049 |
Debt Narrative (Details) CAD in Millions |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 03, 2015
USD ($)
|
Jul. 04, 2015
USD ($)
|
Dec. 31, 2016
USD ($)
|
Jan. 02, 2016
USD ($)
|
Jan. 03, 2015
USD ($)
|
Dec. 31, 2016
EUR (€)
|
Dec. 31, 2016
CAD
|
Jun. 03, 2015
EUR (€)
|
Jan. 02, 2014
USD ($)
|
Dec. 17, 2010 |
|
Debt Instrument [Line Items] | ||||||||||
Capital lease obligations, current | € 400,000 | CAD 1.4 | ||||||||
Capital lease obligations, noncurrent | 200,000 | 1.3 | ||||||||
Write-off deferred loan costs | $ (10,600,000) | $ (528,000) | $ (10,633,000) | $ (4,330,000) | ||||||
Current portion of long-term debt | 23,247,000 | 45,166,000 | ||||||||
Long-term debt, net of current portion | $ 1,727,696,000 | 1,885,851,000 | ||||||||
Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, term | 5 years | |||||||||
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 577,202,000 | 581,726,000 | € 504,900,000 | |||||||
Write-off deferred loan costs | $ 10,600,000 | |||||||||
Letter of Credit [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Deferred finance costs, gross | 4,800,000 | |||||||||
Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face amount of debt insturment | $ 500,000,000 | |||||||||
Senior Notes [Member] | Senior Notes 8.5% due 2018 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Annual interest rate | 8.50% | |||||||||
Senior Notes [Member] | Senior Notes 5.375% Due 2022 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face amount of debt insturment | $ 500,000,000.0 | |||||||||
Long-term Debt | 492,333,000 | 491,048,000 | ||||||||
Annual interest rate | 5.375% | |||||||||
Senior Notes [Member] | Senior Notes 4.75% Due 2022 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | € | 515,000,000 | |||||||||
Face amount of debt insturment | € | € 515,000,000.0 | |||||||||
Long-term Debt | 534,884,000 | 550,207,000 | ||||||||
Annual interest rate | 4.75% | |||||||||
Secured Debt [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum availability | 2,650,000,000.00 | |||||||||
Term Loan A Facility [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | 119,020,000 | 275,629,000 | ||||||||
Other Notes and Obligations [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | 22,224,000 | 23,049,000 | ||||||||
Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum availability | 1,000,000,000.0 | |||||||||
Availability | 968,100,000 | |||||||||
Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | Euro Member Countries, Euro | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | 5,300,000 | € 5,000,000 | ||||||||
Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | Canadian Dealer Offered Rate (CDOR) [Member] | Canada, Dollars | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | 9,400,000 | |||||||||
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | 5,280,000 | 9,358,000 | ||||||||
Revolving Credit Facility [Member] | Secured Debt [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Availability | 500,000,000 | |||||||||
Term Loan A Facility [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face amount of debt insturment | 350,000,000.0 | |||||||||
Term Loan A Facility [Member] | Senior Secured Facilities [Member] | Canada, Dollars | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | 76,900,000 | 97,100,000 | CAD 103.6 | |||||||
Term Loan A Facility [Member] | Senior Secured Facilities [Member] | United States of America, Dollars | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | $ 43,300,000 | |||||||||
Term Loan A Facility [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, interest rate at period end | 2.77% | 2.77% | 2.77% | |||||||
Term Loan A Facility [Member] | Senior Secured Facilities [Member] | Canadian Dealer Offered Rate (CDOR) [Member] | Canada, Dollars | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, interest rate at period end | 3.0247% | 3.0247% | 3.0247% | |||||||
Term Loan A Facility [Member] | Secured Debt [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 2.00% | |||||||||
Term Loan A Facility [Member] | Secured Debt [Member] | Senior Secured Facilities [Member] | Canadian Prime Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1.00% | |||||||||
Letter of Credit [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | $ 26,600,000 | |||||||||
Springing adjustment, term | 91 days | |||||||||
Maximum availability | $ 150,000,000.0 | |||||||||
Letter of Credit [Member] | Senior Secured Facilities [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, covenant, interest ratio | 3.00 | 3.00 | 3.00 | |||||||
Letter of Credit [Member] | Senior Secured Facilities [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, covenant, leverage ratio | 5.50 | 5.50 | 5.50 | |||||||
Secured Debt [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 2.00% | |||||||||
Secured Debt [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | Euro Member Countries, Euro | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 2.00% | |||||||||
Line of credit facility, interest rate at period end | 2.00% | 2.00% | 2.00% | |||||||
Secured Debt [Member] | Senior Secured Facilities [Member] | Canadian Dealer Offered Rate (CDOR) [Member] | Canada, Dollars | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 2.00% | |||||||||
Swingline Sub-Facility [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum availability | $ 50,000,000.0 | |||||||||
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Springing adjustment, loans outstanding, period | 91 days | |||||||||
Face amount of debt insturment | $ 1,300,000,000.0 | |||||||||
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | United States of America, Dollars | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | $ 583,500,000 | |||||||||
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 2.50% | |||||||||
Line of credit facility, interest rate at period end | 3.27% | 3.27% | 3.27% | |||||||
Term Loan B Facility [Member] | Secured Debt [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0.75% | |||||||||
Term Loan B Facility [Member] | Secured Debt [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | United States of America, Dollars | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 2.50% | |||||||||
Term Loan B Facility [Member] | Secured Debt [Member] | Senior Secured Facilities [Member] | Euro Interbank Offered Rate [Member] | Euro Member Countries, Euro | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 2.75% | |||||||||
Term Loan B Facility [Member] | Secured Debt [Member] | Senior Secured Facilities [Member] | Base Rate [Member] | United States of America, Dollars | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1.50% | |||||||||
Foreign Line of Credit [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | $ 10,100,000 | |||||||||
Prior to January 15, 2017 [Member] | Senior Notes [Member] | Senior Notes 5.375% Due 2022 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, redemption price, percentage | 100.00% | |||||||||
Prior to May 30, 2018 [Member] | Senior Notes [Member] | Senior Notes 4.75% Due 2022 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, redemption price, percentage | 100.00% | |||||||||
Long-term Debt [Member] | Accounting Standards Update 2015-03 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance costs, net | 29,000,000 | |||||||||
Other Assets [Member] | Accounting Standards Update 2015-03 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance costs, net | $ (29,000,000) |
Debt Debt Maturiities (Details) $ in Thousands |
Dec. 31, 2016
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2017 | $ 24,758 |
2018 | 7,105 |
2019 | 9,661 |
2020 | 129,832 |
2021 | 559,525 |
thereafter | 1,044,066 |
Long-term Debt | $ 1,774,947 |
Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jan. 02, 2016 |
---|---|---|
OTHER NONCURRENT LIABILITIES [Abstract] | ||
Accrued pension liability (Note 15) | $ 53,152 | $ 53,220 |
Reserve for self insurance, litigation, environmental and tax matters (Note 19) | 41,251 | 42,778 |
Other | 1,711 | 1,811 |
Total other noncurrent liabilities | $ 96,114 | $ 97,809 |
Income Taxes - Income From Operations Before Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Oct. 01, 2016 |
Jul. 02, 2016 |
Apr. 02, 2016 |
Jan. 02, 2016 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
|
Income Tax Disclosure [Abstract] | |||||||||||
United States | $ 48,869 | $ 50,473 | $ 58,972 | ||||||||
Foreign | 73,670 | 48,307 | 22,480 | ||||||||
Income from operations before income taxes | $ 47,893 | $ 28,146 | $ 41,974 | $ 4,526 | $ 84,737 | $ 502 | $ 9,602 | $ 3,939 | $ 122,539 | $ 98,780 | $ 81,452 |
Income Taxes - Expense Benefit (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
|
Current: | |||
Federal | $ 65 | $ (21,775) | $ 1,134 |
State | (332) | 411 | (884) |
Foreign | 27,992 | 29,871 | 24,770 |
Total current | 27,725 | 8,507 | 25,020 |
Deferred: | |||
Federal | (8,056) | 13,057 | 886 |
State | (649) | (1,521) | 1,235 |
Foreign | (3,705) | (6,542) | (14,000) |
Total deferred | (12,410) | 4,994 | (11,879) |
Income Tax Expense (Benefit) | $ 15,315 | $ 13,501 | $ 13,141 |
Income Taxes Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
|
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Computed expected tax expense | $ 42,888 | $ 34,573 | $ 28,508 |
Change in valuation allowance | 1,039 | 4,421 | 5,420 |
Deferred tax on unremitted foreign earnings | 2,546 | 4,848 | 1,956 |
Sub-Part F income | 6,159 | 4,923 | 3,786 |
Foreign rate differential | (9,982) | (5,653) | (9,754) |
Biofuel tax incentives | (28,435) | (28,143) | (22,546) |
Non-deductible transaction costs | 0 | 0 | 4,107 |
Other, net | 1,100 | (1,468) | 1,664 |
Income Tax Expense (Benefit) | $ 15,315 | $ 13,501 | $ 13,141 |
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
Mar. 09, 2006 |
|
Deferred tax assets: | ||||
Loss contingency reserves | $ 11,998 | $ 11,961 | ||
Employee benefits | 9,586 | 9,383 | ||
Pension liability | 18,200 | 17,714 | ||
Intangible assets amortization, including taxable goodwill | 2,317 | 2,947 | ||
Net operating losses | 119,602 | 99,534 | ||
Inventory | 8,523 | 7,934 | ||
Other | 13,583 | 16,621 | ||
Total gross deferred tax assets | 183,809 | 166,094 | ||
Less valuation allowance | (20,150) | (22,209) | ||
Net deferred tax assets | 163,659 | 143,885 | ||
Deferred tax liabilities: | ||||
Intangible assets amortization, including taxable goodwill | (189,233) | (182,748) | ||
Property, plant and equipment depreciation | (207,729) | (209,925) | ||
Investment in DGD Joint Venture | (47,607) | (46,239) | ||
Tax on unremitted foreign earnings | (49,196) | (48,106) | ||
Other | (1,038) | (1,196) | ||
Total gross deferred tax liabilities | (494,803) | (488,214) | ||
Net deferred tax liability | (331,144) | (344,329) | ||
Non-current deferred tax asset | 14,990 | 16,352 | ||
Non-current deferred tax liability | $ (346,134) | $ (360,681) | ||
Class of Stock [Line Items] | ||||
Granted (in shares) | 1,547,184 | 422,386 | 163,078 | |
Total gross deferred tax liabilities | $ (494,803) | $ (488,214) | ||
Director Restricted Stock Plan [Member] | ||||
Class of Stock [Line Items] | ||||
Stock available for grant per employee | $ 90 | $ 60 | ||
Repurchase price per share | $ 0.01 | |||
Restricted stock subject to restrictions percent | 100.00% |
Income Taxes Income Taxes - Narrative (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
---|---|---|---|
Operating Loss Carryforwards [Line Items] | |||
Undistributed Earnings of Foreign Subsidiaries | $ 71,800 | ||
Operating Loss Carryforward, Amount Relating to May 2002 Recapitalization | 4,900 | ||
Operating Loss Carryforwards Limitation on Use Per Year | 700 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 84,200 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 168,300 | ||
Deferred Tax Assets, Valuation Allowance | 4,800 | ||
Operating Loss Carryforwards, Valuation Allowance | 15,400 | ||
Unrecognized Tax Benefits | 4,667 | $ 5,604 | $ 8,130 |
Indemnity Receivable | 3,000 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 1,700 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 1,500 | ||
Internal Revenue Service (IRS) | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 193,200 | ||
Tax Credit Carryforward, Amount | 2,200 | ||
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | 84,100 | ||
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 172,600 | ||
Tax Credit Carryforward, Amount | $ 1,000 |
Income Taxes Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of Year | $ 5,604 | $ 8,130 |
Change in tax positions related to prior years | 99 | |
Change in tax positions related to prior years | (1,953) | |
Expiration of the Statute of Limitations | (1,036) | (573) |
Balance at end of year | $ 4,667 | $ 5,604 |
Stockholders' Equity and Stock-Based Compensation Narrative (Details) - USD ($) |
1 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Aug. 31, 2015 |
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
Aug. 01, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase program, authorized amount | $ 100,000,000 | ||||
Stock repurchase program, period in force | 24 months | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 89,100,000 | ||||
Omnibus Incentive Plan 2012 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized | 11,066,544 | ||||
Number of shares available for grant | 4,566,505 | ||||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance period two | 3 years | ||||
Annual vesting after initial cliff | 33.33% | ||||
Performance period one | 2 years | ||||
Incentive Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 0 | 0 | 0 |
Stockholders' Equity and Stock-Based Compensation Stock Option Awards (Details) - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Feb. 25, 2016 |
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 29, 2012 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options outstanding, Weighted-average remaining contractual life (in years) | 8 years 4 months 24 days | 7 years 8 months 12 days | 6 years 2 months 12 days | 5 years | |
Granted (in shares) | 1,547,184 | 422,386 | 163,078 | ||
Proceeds from stock options exercised | $ 0.2 | $ 0.2 | $ 0.4 | ||
Tax benefit realized from exercise of stock options | 0.1 | 0.4 | 1.2 | ||
Exercises in period, intrinsic value | 0.2 | 1.4 | 4.5 | ||
Vested in period, fair value | 8.3 | $ 7.5 | $ 19.6 | ||
Outstanding, intrinsic value | 5.4 | ||||
Exercisable, intrinsic value | 0.3 | ||||
Total compensation cost not yet recognized | $ 13.6 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 4 months 24 days | ||||
Options exercisable, Weighted-average remaining contractual life (in years) | 6 years 9 months 18 days | ||||
Nonqualified Stock Options Under Long Term Incentive Program [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Initial cliff | 25.00% | ||||
Annual vesting after initial cliff | 25.00% | ||||
Granted (in shares) | 1,094,306 | 452,878 | |||
Award vesting rights, percentage | 33.33% | ||||
Expiration period | 10 years |
Stockholders' Equity and Stock-Based Compensation Stock Option Activity (Details) - $ / shares |
12 Months Ended | ||||
---|---|---|---|---|---|
Feb. 25, 2016 |
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 29, 2012 |
|
Summary of stock option activity [Roll Forward] | |||||
Options outstanding at the beginning of year (in shares) | 850,732 | 696,176 | 906,251 | ||
Options outstanding at the beginning of year, Weighted-average exercise price per share (in usd per share) | $ 15.38 | $ 13.88 | $ 9.97 | ||
Granted (in shares) | 1,547,184 | 422,386 | 163,078 | ||
Granted, Weighted-average exercise price per share (in usd per share) | $ 9.53 | $ 14.76 | $ 19.94 | ||
Exercised (in shares) | (28,000) | (131,653) | (343,550) | ||
Exercised, Weighted-average exercise price per share (in usd per share) | $ 6.71 | $ 4.13 | $ 6.18 | ||
Forfeited (in shares) | (4,000) | (136,177) | (29,603) | ||
Forfeited, Weighted-average exercise price per share (in usd per share) | $ 16.20 | $ 16.68 | $ 16.89 | ||
Expired (in shares) | 0 | 0 | 0 | ||
Expired, Weighted average exercise price per share (in usd per share) | $ 0.00 | $ 0.00 | $ 0.00 | ||
Options outstanding at the end of year (in shares) | 2,365,916 | 850,732 | 696,176 | ||
Options outstanding at the end of year, Weighted-average exercise price per share (in usd per share) | $ 11.65 | $ 15.38 | $ 13.88 | ||
Options outstanding, Weighted-average remaining contractual life (in years) | 8 years 4 months 24 days | 7 years 8 months 12 days | 6 years 2 months 12 days | 5 years | |
Options exercisable (in shares) | 715,833 | ||||
Options exercisable, Weighted-average exercise price per share (in usd per share) | $ 15.18 | ||||
Options exercisable, Weighted-average remaining contractual life (in years) | 6 years 9 months 18 days | ||||
Nonqualified Stock Options Under Long Term Incentive Program [Member] | |||||
Summary of stock option activity [Roll Forward] | |||||
Granted (in shares) | 1,094,306 | 452,878 |
Stockholders' Equity and Stock-Based Compensation Weighted Average Assumptions (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
|
Stockholders' Equity and Stock-Based Compensation [Abstract] | |||
Expected term | 5 years 9 months 4 days | 5 years 9 months | 5 years 9 months |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.35% | 1.82% | 1.77% |
Expected volatility | 34.40% | 38.00% | 43.70% |
Fair value of options granted (in usd per share) | $ 3.34 | $ 5.59 | $ 8.93 |
Stockholders' Equity and Stock-Based Compensation Non-Vested Stock, Restricted Stock Unit and Performance Share Unit Awards (Details) - shares |
12 Months Ended | ||||
---|---|---|---|---|---|
Feb. 25, 2016 |
Jan. 07, 2014 |
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 454,916 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 147,390 | ||||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting after initial cliff | 33.33% | ||||
Shares granted (in shares) | 664,120 | 664,120 | |||
Shares vested (in shares) | 0 | ||||
Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Initial cliff | 25.00% | ||||
Annual vesting after initial cliff | 25.00% | ||||
Shares granted (in shares) | 602,306 | 524,225 | 1,436,658 | ||
Shares vested (in shares) | (413,654) | (714,626) | (861,772) | ||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Initial cliff | 25.00% | ||||
Annual vesting after initial cliff | 25.00% | ||||
Common stock equivalent (in share) | 1 | ||||
Vion Ingredients [Member] | Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 975,000 | ||||
Award vesting rights, percentage | 75.00% | ||||
Shares vested (in shares) | (118,750) | (252,087) | |||
Vion Ingredients [Member] | Fully Vested Performance Award [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights, percentage | 25.00% |
Stockholders' Equity and Stock-Based Compensation Fiscal 2016 LTIP PSU Awards (Details) - shares |
12 Months Ended | |
---|---|---|
Feb. 25, 2016 |
Dec. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (in shares) | 454,916 | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (in shares) | 664,120 | 664,120 |
Performance period two | 3 years | |
Performance period one | 2 years | |
PSUs earned may be reduced | 30.00% | |
Holding requirement | 2 years | |
Performance Shares [Member] | Share-based Compensation Award, Tranche One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (in shares) | 511,120 | |
Performance period two | 3 years | |
Performance Shares [Member] | Share-based Compensation Award, Tranche Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (in shares) | 153,000 | |
Performance period one | 2 years | |
Performance Shares [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Target percentage | 0.00% | |
Performance Shares [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Target percentage | 225.00% |
Stockholders' Equity and Stock-Based Compensation Summary of Assumptions (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.35% | 1.82% | 1.77% |
Expected term | 5 years 9 months 4 days | 5 years 9 months | 5 years 9 months |
Expected volatility | 34.40% | 38.00% | 43.70% |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | ||
Risk-free interest rate | 0.80% | ||
Expected term | 2 years 7 months 13 days | ||
Expected volatility | 29.30% | ||
Illiquidity discount | 16.10% |
Stockholders' Equity and Stock-Based Compensation Summary of the Company’s LTIP PSU Awards (Details) - $ / shares |
12 Months Ended | |
---|---|---|
Feb. 25, 2016 |
Dec. 31, 2016 |
|
Summary of non-vested and restricted stock awards [Roll Forward] | ||
Shares granted (in shares) | 454,916 | |
Performance Shares [Member] | ||
Summary of non-vested and restricted stock awards [Roll Forward] | ||
Beginning balance nonvested (in shares) | 0 | |
Nonvested, Weighted Average Grant Date Fair Value (in usd per share) | $ 0.00 | |
Shares granted (in shares) | 664,120 | 664,120 |
Shares granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ 7.17 | |
Shares vested (in shares) | 0 | |
Shares vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ 0.00 | |
Forfeited in Period (in shares) | 0 | |
Shares forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ 0.00 | |
Nonvested, Weighted Average Grant Date Fair Value (in usd per share) | $ 7.17 | |
Ending balance nonvested (in shares) | 664,120 |
Stockholders' Equity and Stock-Based Compensation Summary of the Company’s Non-vested Stock (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
|
Summary of stock option activity [Roll Forward] | |||
Shares granted (in shares) | 454,916 | ||
Stock Awards [Member] | |||
Summary of stock option activity [Roll Forward] | |||
Beginning balance nonvested (in shares) | 1,034,191 | 1,257,173 | 821,207 |
Nonvested, Weighted Average Grant Date Fair Value (in usd per share) | $ 18.63 | $ 19.98 | $ 14.93 |
Shares granted (in shares) | 602,306 | 524,225 | 1,436,658 |
Shares granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ 12.11 | $ 14.47 | $ 20.73 |
Shares vested (in shares) | (413,654) | (714,626) | (861,772) |
Shares vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ 15.11 | $ 17.91 | $ 16.43 |
Forfeited in Period (in shares) | (241,582) | (32,581) | (138,920) |
Shares forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ 20.86 | $ 19.65 | $ 19.90 |
Ending balance nonvested (in shares) | 981,261 | 1,034,191 | 1,257,173 |
Nonvested, Weighted Average Grant Date Fair Value (in usd per share) | $ 15.56 | $ 18.63 | $ 19.98 |
Stockholders' Equity and Stock-Based Compensation Nonemployee Director Restricted Stock and Restricted Stock Unit Awards (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Mar. 09, 2006 |
|
Director Restricted Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock available for grant per employee | $ 90 | $ 60 |
Repurchase price per share | $ 0.01 | |
Restricted stock subject to restrictions percent | 100.00% | |
Director Restricted Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share Based Compensation Arrangement By Share Based Payment Award Award Termination Period | 10 years |
Stockholders' Equity and Stock-Based Compensation Non-employee Director Restricted Stock Awards (Details) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
|
Summary of non-vested and restricted stock awards [Roll Forward] | |||
Shares granted (in shares) | 454,916 | ||
Director Restricted Stock Plan [Member] | |||
Summary of non-vested and restricted stock awards [Roll Forward] | |||
Ending balance nonvested (in shares) | 111,359 | 152,504 | 155,916 |
Nonvested, Weighted Average Grant Date Fair Value (in usd per share) | $ 12.69 | $ 12.22 | $ 10.75 |
Shares granted (in shares) | 43,421 | 46,910 | 25,678 |
Shares granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ 14.51 | $ 13.80 | $ 19.67 |
Restrictions Lapsed (in shares) | (81,031) | (50,322) | 0 |
Restrictions Lapsed, Weighted Average Grant Date Fair Value (in dollars per share) | $ 11.55 | $ 12.25 | $ 0.00 |
Forfeited in Period (in shares) | (3,535) | 0 | 0 |
Shares forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ 14.51 | $ 0.00 | $ 0.00 |
Beginning balance nonvested (in shares) | 152,504 | 155,916 | 130,238 |
Nonvested, Weighted Average Grant Date Fair Value (in usd per share) | $ 14.18 | $ 12.69 | $ 12.22 |
Comprehensive Income (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
|
Before-Tax Amount | |||
Actuarial (loss)/gain recognized | $ (5,257) | $ (3,822) | $ (34,547) |
Amortization of actuarial loss | 4,632 | 5,101 | 2,078 |
Actuarial prior service cost recognized | 1,140 | ||
Amortization of curtailment | 0 | (1,181) | |
Amortization of prior service costs | 36 | (67) | 23 |
Amortization of settlement | (114) | 5,291 | |
Other | 44 | 471 | |
Total defined benefit pension plans | (659) | 5,793 | (31,306) |
Tax (Expense) or Benefit | |||
Actuarial (loss)/gain recognized | 1,396 | 1,499 | 12,001 |
Amortization of actuarial loss | (1,786) | (1,986) | (806) |
Actuarial prior service cost recognized | (261) | ||
Amortization of curtailment | 0 | 328 | |
Amortization of prior service costs | (12) | 36 | (9) |
Amortization of settlement | 45 | (1,468) | |
Other | 0 | 0 | |
Total defined benefit pension plans | (357) | (1,591) | 10,925 |
Net-of-Tax Amount | |||
Actuarial (loss)/gain recognized | (3,861) | (2,323) | (22,546) |
Amortization of actuarial loss | 2,846 | 3,115 | 1,272 |
Amortization of prior service costs | 24 | (31) | 14 |
Actuarial prior service cost recognized | 0 | 0 | 879 |
Amortization of curtailment | 0 | (853) | |
Amortization of settlement | (69) | 3,823 | |
Other | 44 | 471 | |
Total defined benefit pension plans | (1,016) | 4,202 | (20,381) |
Before-Tax Amount | |||
Gain/(loss) recognized in other comprehensive income (loss) | 4,900 | 4,400 | |
Tax (Expense) or Benefit | |||
Gain/(loss) recognized in other comprehensive income (loss) | (1,900) | (1,700) | |
Net-of-Tax Amount | |||
Other comprehensive income/(loss) | (5,231) | (153,755) | (153,231) |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (753) | (2,712) | 11,794 |
Total other comprehensive income, net of tax | (5,984) | (156,467) | (141,437) |
Foreign currency translation adjustments | (5,593) | (162,436) | (119,684) |
Natural Gas Swap [Member] | |||
Before-Tax Amount | |||
Loss/(gain) reclassified to net income | (196) | ||
Gain/(loss) recognized in other comprehensive income (loss) | 11 | ||
Total natural gas derivatives | (185) | ||
Tax (Expense) or Benefit | |||
Loss/(gain) reclassified to net income | 76 | ||
Gain/(loss) recognized in other comprehensive income (loss) | (4) | ||
Total natural gas derivatives | 72 | ||
Net-of-Tax Amount | |||
Loss/(gain) reclassified to net income | (120) | ||
Gain/(loss) recognized in other comprehensive income (loss) | 7 | ||
Total natural gas derivatives | (113) | ||
Interest Rate Swap [Member] | |||
Before-Tax Amount | |||
Loss/(gain) reclassified to net income | (119,684) | ||
Tax (Expense) or Benefit | |||
Loss/(gain) reclassified to net income | 0 | ||
Net-of-Tax Amount | |||
Loss/(gain) reclassified to net income | (119,684) | ||
Corn Option [Member] | |||
Before-Tax Amount | |||
Loss/(gain) reclassified to net income | (3,868) | (1,517) | (3,868) |
Gain/(loss) recognized in other comprehensive income (loss) | 4,889 | 4,405 | 1,812 |
Total natural gas derivatives | 1,021 | 2,888 | (2,056) |
Tax (Expense) or Benefit | |||
Loss/(gain) reclassified to net income | 1,501 | 589 | 1,501 |
Gain/(loss) recognized in other comprehensive income (loss) | (1,897) | (1,710) | (704) |
Total natural gas derivatives | (396) | 1,121 | 797 |
Net-of-Tax Amount | |||
Loss/(gain) reclassified to net income | (2,367) | (928) | (2,367) |
Gain/(loss) recognized in other comprehensive income (loss) | 2,992 | 2,695 | 1,108 |
Total natural gas derivatives | 625 | 1,767 | (1,259) |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Net-of-Tax Amount | |||
Total defined benefit pension plans | (1,016) | 4,202 | (20,381) |
Net-of-Tax Amount | |||
Total other comprehensive income, net of tax | (3,697) | (164,827) | (125,884) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | (5,593) | (162,436) | |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 0 | 0 | |
Foreign currency translation adjustments | (5,593) | (162,436) | |
Accumulated Other Comprehensive Income (Loss) [Member] | Natural Gas Swap [Member] | |||
Net-of-Tax Amount | |||
Total natural gas derivatives | (113) | ||
Accumulated Other Comprehensive Income (Loss) [Member] | Corn Option [Member] | |||
Net-of-Tax Amount | |||
Total natural gas derivatives | $ 625 | $ 1,767 | $ (1,259) |
Comprehensive Income Reclassifications (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Oct. 01, 2016 |
Jul. 02, 2016 |
Apr. 02, 2016 |
Jan. 02, 2016 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Cost of sales and operating expenses | $ 2,641,734 | $ 2,654,025 | $ 3,123,171 | |||||||||||
Amortization of prior service cost | (36) | 67 | (23) | |||||||||||
Amortization of actuarial loss | 4,632 | 5,101 | 2,078 | |||||||||||
Amortization of curtailment | 0 | (1,181) | ||||||||||||
Amortization of settlement | (114) | 5,291 | ||||||||||||
Income taxes | (15,315) | (13,501) | (13,141) | |||||||||||
Net income | $ 40,541 | $ 28,694 | $ 31,999 | $ 1,079 | $ 84,429 | $ (9,087) | $ 3,080 | $ 109 | 102,313 | 78,531 | 64,215 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Net income | (434) | (5,126) | 1,201 | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments | ||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Income from operations before income taxes | 3,868 | 1,517 | 4,064 | |||||||||||
Income taxes | (1,501) | (589) | (1,577) | |||||||||||
Net income | 2,367 | 928 | 2,487 | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments | Natural Gas Swap [Member] | ||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Cost of sales and operating expenses | 0 | 0 | 196 | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments | Corn Option [Member] | ||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Cost of sales and operating expenses | 3,868 | 1,517 | 3,868 | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Pension Plans | ||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Amortization of prior service cost | [1] | (36) | 67 | (23) | ||||||||||
Amortization of actuarial loss | [1] | (4,632) | (5,101) | (2,078) | ||||||||||
Amortization of curtailment | [1] | 0 | 1,181 | 0 | ||||||||||
Amortization of settlement | [1] | 114 | (5,291) | 0 | ||||||||||
Income from operations before income taxes | (4,554) | (9,144) | (2,101) | |||||||||||
Income taxes | 1,753 | 3,090 | 815 | |||||||||||
Net income | $ (2,801) | $ (6,054) | $ (1,286) | |||||||||||
|
Comprehensive Income AOCI (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
|
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income/(loss) January 2, 2016, attributable to Darling, net of tax | $ (335,918) | ||
Other comprehensive gain before reclassifications | (6,418) | ||
Amounts reclassified from accumulated other comprehensive income/(loss) | 434 | ||
Net current-period other comprehensive income | (5,984) | $ (156,467) | $ (141,437) |
Noncontrolling interest | (1,896) | ||
Accumulated Other Comprehensive Income/(loss) December 31, 2016, attributable to Darling, net of tax | (340,006) | (335,918) | |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income/(loss) January 2, 2016, attributable to Darling, net of tax | (305,213) | ||
Other comprehensive gain before reclassifications | (5,593) | ||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | ||
Net current-period other comprehensive income | (5,593) | ||
Noncontrolling interest | (1,896) | ||
Accumulated Other Comprehensive Income/(loss) December 31, 2016, attributable to Darling, net of tax | (308,910) | (305,213) | |
Derivative Instruments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income/(loss) January 2, 2016, attributable to Darling, net of tax | 1,843 | ||
Other comprehensive gain before reclassifications | 2,992 | ||
Amounts reclassified from accumulated other comprehensive income/(loss) | (2,367) | ||
Net current-period other comprehensive income | 625 | ||
Noncontrolling interest | 0 | ||
Accumulated Other Comprehensive Income/(loss) December 31, 2016, attributable to Darling, net of tax | 2,468 | 1,843 | |
Defined Benefit Pension Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income/(loss) January 2, 2016, attributable to Darling, net of tax | (32,548) | ||
Other comprehensive gain before reclassifications | (3,817) | ||
Amounts reclassified from accumulated other comprehensive income/(loss) | 2,801 | ||
Net current-period other comprehensive income | (1,016) | ||
Noncontrolling interest | 0 | ||
Accumulated Other Comprehensive Income/(loss) December 31, 2016, attributable to Darling, net of tax | $ (33,564) | $ (32,548) |
Employee Benefit Plans (Details) $ in Thousands |
12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016
USD ($)
plan
|
Jan. 02, 2016
USD ($)
|
Jan. 03, 2015
USD ($)
|
||||||||||
Fair Value Measurement [Domain] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | $ 127,970 | |||||||||||
Fair value of plan assets at end of period | 134,909 | $ 127,970 | ||||||||||
Fair Value Measurement [Domain] | Fair Value, Inputs, Level 1 [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 78,474 | |||||||||||
Fair value of plan assets at end of period | 85,936 | 78,474 | ||||||||||
Fair Value Measurement [Domain] | Fair Value, Inputs, Level 2 [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 5,801 | |||||||||||
Fair value of plan assets at end of period | 7,887 | 5,801 | ||||||||||
Fair Value Measurement [Domain] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 2,320 | |||||||||||
Fair value of plan assets at end of period | 2,783 | 2,320 | ||||||||||
Projected benefit obligation at beginning of period | 182,276 | 395,142 | ||||||||||
Acquisitions | 0 | 0 | ||||||||||
Service cost | 2,549 | 6,638 | $ 5,208 | |||||||||
Interest cost | 6,950 | 10,536 | 13,214 | |||||||||
Employee contributions | 439 | 1,862 | ||||||||||
Plan amendments | 101 | 90 | ||||||||||
Actuarial loss/(gain) | 7,905 | (24,436) | ||||||||||
Benefits paid | (7,146) | (11,197) | ||||||||||
Effect of curtailment | (1,286) | (9,545) | ||||||||||
Effect of settlement | (953) | (162,600) | ||||||||||
Other | (1,545) | (24,214) | ||||||||||
Projected benefit obligation at end of period | 189,290 | 182,276 | 395,142 | |||||||||
Fair value of plan assets at beginning of period | 127,970 | 328,220 | ||||||||||
Acquisitions | 0 | 0 | ||||||||||
Actual return on plan assets | 10,138 | (17,888) | ||||||||||
Employer contributions | 5,250 | 9,612 | ||||||||||
Benefits paid | (7,146) | (11,197) | ||||||||||
Effect of settlement | (953) | (162,600) | ||||||||||
Other | (789) | (20,039) | ||||||||||
Fair value of plan assets at end of period | 134,909 | 127,970 | 328,220 | |||||||||
Funded status | (54,381) | (54,306) | ||||||||||
Amounts recognized in the consolidated balance sheets consist of: | ||||||||||||
Noncurrent assets | 0 | 0 | ||||||||||
Current liability | (1,229) | (1,086) | ||||||||||
Noncurrent liability | (53,152) | (53,220) | ||||||||||
Net amount recognized | (54,381) | (54,306) | ||||||||||
Amounts recognized in accumulated other comprehensive loss consist of: | ||||||||||||
Net actuarial loss | 52,525 | 51,921 | ||||||||||
Prior service cost/(credit) | 417 | 359 | ||||||||||
Net amount recognized | [1] | 52,942 | 52,280 | |||||||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | 19,400 | 19,700 | ||||||||||
Accumulated benefit obligation | 181,340 | 171,530 | ||||||||||
Net pension cost includes the following components: | ||||||||||||
Service cost | 2,549 | 6,638 | 5,208 | |||||||||
Interest cost | 6,950 | 10,536 | 13,214 | |||||||||
Expected return on plan assets | (7,552) | (12,229) | (14,439) | |||||||||
Net amortization and deferral | 4,668 | 5,034 | 2,094 | |||||||||
Curtailment | (1,285) | (1,181) | 7 | |||||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | (114) | (2,353) | 0 | |||||||||
Net pension cost | 5,216 | 6,445 | 6,084 | |||||||||
Amounts recognized in accumulated other comprehensive income (loss): | ||||||||||||
Amortization of actuarial loss | 2,846 | 3,115 | 1,272 | |||||||||
Actuarial (loss)/gain recognized | (3,861) | (2,323) | (22,546) | |||||||||
Amortization of settlement | (69) | 3,823 | ||||||||||
Amortization of prior service costs | 24 | (31) | 14 | |||||||||
Actuarial prior service cost recognized | 0 | 0 | 879 | |||||||||
Amortization of curtailment | 0 | (853) | ||||||||||
Other | 44 | 471 | ||||||||||
Pension adjustments | (1,016) | $ 4,202 | $ (20,381) | |||||||||
Estimated amount that will be amortized from accumulated other comprehensive loss into net periodic pension cost in fiscal 2012: | ||||||||||||
Net actuarial loss | 4,754 | |||||||||||
Prior service cost | 33 | |||||||||||
Total | $ 4,787 | |||||||||||
Weighted average assumptions used to determine benefit obligations: | ||||||||||||
Discount rate | 3.81% | 4.13% | 2.79% | |||||||||
Rate of compensation increase | 0.38% | 0.31% | 1.82% | |||||||||
Weighted average assumptions used to determine net periodic benefit cost for the employee benefit pension plans: | ||||||||||||
Discount rate | 3.55% | 3.47% | 4.15% | |||||||||
Rate of increase in future compensation levels | 0.84% | 0.38% | 1.70% | |||||||||
Expected long-term rate of return on assets | 6.52% | 6.62% | 5.06% | |||||||||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ||||||||||||
2017 | $ 9,854 | |||||||||||
2018 | 8,438 | |||||||||||
2019 | 9,307 | |||||||||||
2020 | 9,849 | |||||||||||
2021 | 10,931 | |||||||||||
Years 2022 – 2026 | 58,887 | |||||||||||
Multiemployer Plans [Abstract] | ||||||||||||
Contributions | $ 3,373 | $ 3,231 | $ 3,302 | |||||||||
Number Of Multiemployer Plans, Withdrawal Obligation | plan | 2 | |||||||||||
Multiemployer Plans, Withdrawal Obligation | $ 1,800 | |||||||||||
Fair Value, Inputs, Level 3 [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 2,320 | 194,909 | ||||||||||
Fair value of plan assets at end of period | 2,783 | 2,320 | 194,909 | |||||||||
Western Conference Of Teamsters Pension Plan [Member] | ||||||||||||
Multiemployer Plans [Abstract] | ||||||||||||
Contributions | [2] | 1,456 | 1,387 | 1,384 | ||||||||
Central States, Southeast and Southwest Areas Pension Plan [Member] | ||||||||||||
Multiemployer Plans [Abstract] | ||||||||||||
Contributions | [3],[4] | 934 | 858 | 876 | ||||||||
Other Multiemployer Plans [Member] | ||||||||||||
Multiemployer Plans [Abstract] | ||||||||||||
Contributions | $ 983 | 986 | $ 1,042 | |||||||||
Maximum [Member] | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||||
Multiemployer Plan, Contributions To Individual Plan, Percent | 5.00% | |||||||||||
Estimate of Fair Value Measurement [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | $ 86,595 | |||||||||||
Fair value of plan assets at end of period | 96,606 | 86,595 | ||||||||||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 78,474 | |||||||||||
Fair value of plan assets at end of period | 85,936 | 78,474 | ||||||||||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 5,801 | |||||||||||
Fair value of plan assets at end of period | 7,887 | 5,801 | ||||||||||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 2,320 | |||||||||||
Fair value of plan assets at end of period | 2,783 | 2,320 | ||||||||||
Estimate of Fair Value Measurement [Member] | Fixed Income, Long Term [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 21,079 | |||||||||||
Fair value of plan assets at end of period | 17,408 | 21,079 | ||||||||||
Estimate of Fair Value Measurement [Member] | Fixed Income, Long Term [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 21,079 | |||||||||||
Fair value of plan assets at end of period | 17,408 | 21,079 | ||||||||||
Estimate of Fair Value Measurement [Member] | Fixed Income, Long Term [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 0 | |||||||||||
Fair value of plan assets at end of period | 0 | 0 | ||||||||||
Estimate of Fair Value Measurement [Member] | Fixed Income, Long Term [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 0 | |||||||||||
Fair value of plan assets at end of period | 0 | 0 | ||||||||||
Estimate of Fair Value Measurement [Member] | Fixed Income, Short Term [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 1,341 | |||||||||||
Fair value of plan assets at end of period | 2,825 | 1,341 | ||||||||||
Estimate of Fair Value Measurement [Member] | Fixed Income, Short Term [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 1,341 | |||||||||||
Fair value of plan assets at end of period | 2,825 | 1,341 | ||||||||||
Estimate of Fair Value Measurement [Member] | Fixed Income, Short Term [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 0 | |||||||||||
Fair value of plan assets at end of period | 0 | 0 | ||||||||||
Estimate of Fair Value Measurement [Member] | Fixed Income, Short Term [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 0 | |||||||||||
Fair value of plan assets at end of period | 0 | 0 | ||||||||||
Estimate of Fair Value Measurement [Member] | Equity Securities, Domestic [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 34,864 | |||||||||||
Fair value of plan assets at end of period | 41,300 | 34,864 | ||||||||||
Estimate of Fair Value Measurement [Member] | Equity Securities, Domestic [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 34,864 | |||||||||||
Fair value of plan assets at end of period | 41,300 | 34,864 | ||||||||||
Estimate of Fair Value Measurement [Member] | Equity Securities, Domestic [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 0 | |||||||||||
Fair value of plan assets at end of period | 0 | 0 | ||||||||||
Estimate of Fair Value Measurement [Member] | Equity Securities, Domestic [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 0 | |||||||||||
Fair value of plan assets at end of period | 0 | 0 | ||||||||||
Estimate of Fair Value Measurement [Member] | Equity Securities, International [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 21,190 | |||||||||||
Fair value of plan assets at end of period | 24,403 | 21,190 | ||||||||||
Estimate of Fair Value Measurement [Member] | Equity Securities, International [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 21,190 | |||||||||||
Fair value of plan assets at end of period | 24,403 | 21,190 | ||||||||||
Estimate of Fair Value Measurement [Member] | Equity Securities, International [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 0 | |||||||||||
Fair value of plan assets at end of period | 0 | 0 | ||||||||||
Estimate of Fair Value Measurement [Member] | Equity Securities, International [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 0 | |||||||||||
Fair value of plan assets at end of period | 0 | 0 | ||||||||||
Estimate of Fair Value Measurement [Member] | Insurance Contracts [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 8,121 | |||||||||||
Fair value of plan assets at end of period | 10,670 | 8,121 | ||||||||||
Estimate of Fair Value Measurement [Member] | Insurance Contracts [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 0 | |||||||||||
Fair value of plan assets at end of period | 0 | 0 | ||||||||||
Estimate of Fair Value Measurement [Member] | Insurance Contracts [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 5,801 | |||||||||||
Fair value of plan assets at end of period | 7,887 | 5,801 | ||||||||||
Estimate of Fair Value Measurement [Member] | Insurance Contracts [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 2,320 | |||||||||||
Fair value of plan assets at end of period | 2,783 | 2,320 | ||||||||||
Portion at Other than Fair Value Measurement [Member] | ||||||||||||
Change in plan assets: | ||||||||||||
Fair value of plan assets at beginning of period | 41,375 | |||||||||||
Fair value of plan assets at end of period | $ 38,303 | $ 41,375 | ||||||||||
|
Employee Benefit Plans Employee Benefit Plans Narrative 1 (Details) $ in Millions |
1 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jul. 31, 2005 |
Dec. 31, 2016
USD ($)
plan
|
Jan. 02, 2016
USD ($)
|
Jan. 03, 2015
USD ($)
|
Jan. 07, 2014
USD ($)
|
|
Employee Benefit Plans [Line Items] | |||||
Investment Horizon of Greater Than | 10 years | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | $ 19.4 | $ 19.7 | |||
Defined Benefit Plan, Number of Plans Terminated | plan | 2 | ||||
Domestic Pension Plan Benefits Percentage Of The Projected Benefit Obligation | 75.00% | 76.00% | |||
Domestic Defined Benefit Plan Cash Contributions By Employer | $ 0.6 | $ 0.4 | |||
Foreign Defined Benefit Plan Cash Contributions By Employer | 4.7 | 9.2 | |||
Vion Ingredients [Member] | |||||
Employee Benefit Plans [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Pension and Other Postretirement Benefit Plan Obligations | $ 28.9 | ||||
United States Postretirement Benefit Plan of US Entity [Member] | |||||
Employee Benefit Plans [Line Items] | |||||
Defined Contribution Plan, Employer Contribution Amount | 9.2 | 9.3 | $ 9.2 | ||
Foreign Pension Plan [Member] | |||||
Employee Benefit Plans [Line Items] | |||||
Defined Contribution Plan, Employer Contribution Amount | $ 6.2 | $ 3.0 | $ 3.5 | ||
Equity Securities [Member] | Domestic [Member] | |||||
Employee Benefit Plans [Line Items] | |||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 65.00% | ||||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 20.00% | ||||
Fixed Income Securities [Member] | Domestic [Member] | |||||
Employee Benefit Plans [Line Items] | |||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 80.00% | ||||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 35.00% | ||||
Maximum [Member] | |||||
Employee Benefit Plans [Line Items] | |||||
Multiemployer Plan, Contributions To Individual Plan, Percent | 5.00% | ||||
Investment Objectives Achievement Period | 7 years | ||||
Minimum [Member] | |||||
Employee Benefit Plans [Line Items] | |||||
Investment Objectives Achievement Period | 5 years | ||||
Central States, Southeast and Southwest Areas Pension Plan [Member] | |||||
Employee Benefit Plans [Line Items] | |||||
Multiemployer Plans, IRS Extended Amortization Period | 10 years |
Employee Benefit Plans Employee Benefit Plans Narrative 2 (Details) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016
USD ($)
plan
|
Jan. 02, 2016 |
Jan. 03, 2015 |
|
Employee Benefit Plans [Line Items] | |||
Defined Benefit Plan, Number of Plans | plan | 2 | ||
Expected long-term rate of return on assets | 6.52% | 6.62% | 5.06% |
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | $ | $ 4.3 | ||
Equity Funds [Member] | |||
Employee Benefit Plans [Line Items] | |||
Equity Securities | 60.00% | ||
Fixed Income Funds [Member] | |||
Employee Benefit Plans [Line Items] | |||
Equity Securities | 40.00% | ||
United States Postretirement Benefit Plan of US Entity [Member] | |||
Employee Benefit Plans [Line Items] | |||
Expected long-term rate of return on assets | 6.90% | ||
Foreign Pension Plan [Member] | |||
Employee Benefit Plans [Line Items] | |||
Expected long-term rate of return on assets | 2.70% | ||
Emerging Market [Member] | Equity Securities, International [Member] | |||
Employee Benefit Plans [Line Items] | |||
Concentration Risk, Percentage | 10.00% |
Employee Benefit Plans Employee Benefit Plans Narrative 3 (Details) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016
USD ($)
plan
|
Jan. 02, 2016
USD ($)
|
Jan. 03, 2015
USD ($)
|
|
Employee Benefit Plans [Abstract] | |||
Number of Multiemployer Plans, Certified Red Zone | 6 | ||
Number Of Multiemployer Plans, Withdrawal Obligation Could Be Material | 2 | ||
Number of Multiemployer Plans, Certified Yellow Zone | 1 | ||
Contributions | $ | $ 3,373 | $ 3,231 | $ 3,302 |
Multiemployer Plans, Withdrawal Obligation | $ | $ 1,800 |
Employee Benefit Plans Employee Benefit Plans Level 3 (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Jan. 02, 2016 |
|
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of period | $ 127,970 | $ 328,220 |
Fair value of plan assets at end of period | 134,909 | 127,970 |
Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of period | 2,320 | 194,909 |
Unrealized gains/(losses) relating to instruments still held in the reporting period. | 316 | (12,601) |
Purchases, sales, and settlements | 244 | (161,402) |
Exchange rate changes | (97) | (18,586) |
Fair value of plan assets at end of period | $ 2,783 | $ 2,320 |
Derivatives (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016
USD ($)
|
Oct. 01, 2016
USD ($)
|
Jul. 02, 2016
USD ($)
|
Apr. 02, 2016
USD ($)
|
Jan. 02, 2016
USD ($)
|
Oct. 03, 2015
USD ($)
|
Jul. 04, 2015
USD ($)
|
Apr. 04, 2015
USD ($)
|
Dec. 31, 2016
USD ($)
month
|
Jan. 02, 2016
USD ($)
|
Jan. 03, 2015
USD ($)
|
|
Derivatives, Fair Value [Line Items] | |||||||||||
Number of months cash flow hedge gain (loss) reclassified over | month | 12 | ||||||||||
Amount reclassified from accumulated other comprehensive loss into earnings over next 12 months | $ 4,000 | ||||||||||
Net income | $ 41,680 | $ 28,890 | $ 33,991 | $ 2,663 | $ 85,875 | $ (7,357) | $ 4,937 | $ 1,824 | 107,224 | $ 85,279 | $ 68,311 |
Asset Derivatives Fair Value | 13,325 | 4,458 | 13,325 | 4,458 | |||||||
Foreign currency losses | (1,854) | (4,911) | (13,548) | ||||||||
Liability Derivatives Fair Value | 730 | 4,437 | 730 | 4,437 | |||||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 4,889 | 4,405 | |||||||||
Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 3,868 | 1,517 | |||||||||
Gain Recognized in Income on Derivatives, Ineffective Portion and Amount Excluded from Effectiveness Testing | 331 | 68 | |||||||||
Gain/(loss) recognized in other comprehensive income (loss) | 4,900 | 4,400 | |||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 1,900 | 1,700 | |||||||||
Designated as Hedging Instrument [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Asset Derivatives Fair Value | 4,235 | 3,215 | 4,235 | 3,215 | |||||||
Not Designated as Hedging Instrument [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Asset Derivatives Fair Value | 9,090 | 1,243 | 9,090 | 1,243 | |||||||
Liability Derivatives Fair Value | 730 | 4,437 | 730 | 4,437 | |||||||
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Accrued Expenses [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Liability Derivatives Fair Value | 608 | 4,435 | 608 | 4,435 | |||||||
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Asset Derivatives Fair Value | 8,939 | 644 | 8,939 | 644 | |||||||
Corn Option [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Gain/(loss) recognized in other comprehensive income (loss) | 4,889 | 4,405 | 1,812 | ||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 1,897 | 1,710 | $ 704 | ||||||||
Corn Option [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Asset Derivatives Fair Value | 4,235 | 3,215 | 4,235 | 3,215 | |||||||
Commodity Contract [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Forward Purchase Amount | 9,800 | 9,800 | |||||||||
Corn options and futures [Member] | Not Designated as Hedging Instrument [Member] | Accrued Expenses [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Liability Derivatives Fair Value | 122 | 2 | 122 | 2 | |||||||
Corn options and futures [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Asset Derivatives Fair Value | $ 151 | $ 599 | 151 | 599 | |||||||
Cash Flow Hedging [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Net income | 0 | ||||||||||
Cash Flow Hedging [Member] | Corn Option [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 4,889 | 4,405 | |||||||||
Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 3,868 | 1,517 | |||||||||
Gain Recognized in Income on Derivatives, Ineffective Portion and Amount Excluded from Effectiveness Testing | $ 331 | $ 68 |
Derivatives Derivative Effect of Derivatives Not Designated As Hedges (Details) € in Thousands, ¥ in Thousands, ¥ in Thousands, £ in Thousands, PLN in Thousands, BRL in Thousands, AUD in Thousands, $ in Thousands |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016
USD ($)
|
Jan. 02, 2016
USD ($)
|
Jan. 03, 2015
USD ($)
|
Dec. 31, 2016
EUR (€)
|
Dec. 31, 2016
CNY (¥)
|
Dec. 31, 2016
GBP (£)
|
Dec. 31, 2016
AUD
|
Dec. 31, 2016
PLN
|
Dec. 31, 2016
BRL
|
Dec. 31, 2016
JPY (¥)
|
|
Derivative [Line Items] | ||||||||||
Asset Derivatives Fair Value | $ 13,325 | $ 4,458 | ||||||||
Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Asset Derivatives Fair Value | 4,235 | 3,215 | ||||||||
Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Asset Derivatives Fair Value | 9,090 | 1,243 | ||||||||
Derivative, Gain (Loss) on Derivative, Net | (10,562) | (21,750) | $ (15,599) | |||||||
Foreign Exchange Contract [Member] | Foreign Currency Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | (1,542) | (27,321) | (21,162) | |||||||
Foreign Exchange Contract [Member] | Selling, General and Administrative Expenses [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | (8,543) | 7,508 | 4,652 | |||||||
BRI/EUR 1 [Member] | Short [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | BRL | BRL 28,304 | |||||||||
BRI/EUR 1 [Member] | Long [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | € 7,270 | |||||||||
Soybean Meal [Member] | Sales [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | 7 | 0 | 0 | |||||||
BRI/EUR 2 [Member] | Short [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | BRL | BRL 66,273 | |||||||||
BRI/EUR 2 [Member] | Long [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | 18,900 | |||||||||
EUR/USD [Member] | Short [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | 150,394 | |||||||||
EUR/USD [Member] | Long [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | 166,377 | |||||||||
EUR/PLN [Member] | Short [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | 10,444 | |||||||||
EUR/PLN [Member] | Long [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | PLN | PLN 47,000 | |||||||||
EUR/JPN [Member] | Short [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | 4,295 | |||||||||
EUR/JPN [Member] | Long [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | ¥ | ¥ 505,320 | |||||||||
EUR/CNY [Member] | Short [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | 34,337 | |||||||||
EUR/CNY [Member] | Long [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | ¥ | ¥ 254,639 | |||||||||
EUR/AUD [Member] | Short [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | 11,563 | |||||||||
EUR/AUD [Member] | Long [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | AUD | AUD 16,700 | |||||||||
EUR/GBP [Member] | Short [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | 1,405 | |||||||||
EUR/GBP [Member] | Long [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | £ | £ 1,200 | |||||||||
PLN/EUR [Member] | Short [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | PLN | PLN 19,111 | |||||||||
PLN/EUR [Member] | Long [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | € 4,312 | |||||||||
JPN/USD [Member] | Short [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | ¥ | ¥ 14,423 | |||||||||
JPN/USD [Member] | Long [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | 135 | |||||||||
Corn options and futures [Member] | Sales [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | 472 | (2) | 0 | |||||||
Corn options and futures [Member] | Cost of Sales [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | (1,411) | (2,067) | (71) | |||||||
Heating Oil Swaps And Options [Member] | Sales [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | 455 | 0 | 0 | |||||||
Heating Oil Swaps And Options [Member] | Cost of Sales [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ 132 | $ 982 |
Fair Value Measurement (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jan. 02, 2016 |
---|---|---|
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 13,325 | $ 4,458 |
Total Assets | 13,325 | 4,458 |
Derivative liabilities | 730 | 4,437 |
Total Liabilities | 1,815,092 | 1,905,519 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Total Assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 13,325 | 4,458 |
Total Assets | 13,325 | 4,458 |
Derivative liabilities | 730 | 4,437 |
Total Liabilities | 1,815,092 | 1,905,519 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Total Assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 495,000 | |
Fair Value, Measurements, Recurring [Member] | Senior Notes [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | |
Fair Value, Measurements, Recurring [Member] | Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 495,000 | |
Fair Value, Measurements, Recurring [Member] | Senior Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | |
Fair Value, Measurements, Recurring [Member] | Term Loan A Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 120,403 | 277,874 |
Fair Value, Measurements, Recurring [Member] | Term Loan A Facility [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Term Loan A Facility [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 120,403 | 277,874 |
Fair Value, Measurements, Recurring [Member] | Term Loan A Facility [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Term Loan B Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 593,347 | 577,710 |
Fair Value, Measurements, Recurring [Member] | Term Loan B Facility [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Term Loan B Facility [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 593,347 | 577,710 |
Fair Value, Measurements, Recurring [Member] | Term Loan B Facility [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Revolving Credit Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 5,201 | 9,218 |
Fair Value, Measurements, Recurring [Member] | Revolving Credit Facility [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Revolving Credit Facility [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 5,201 | 9,218 |
Fair Value, Measurements, Recurring [Member] | Revolving Credit Facility [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Senior Notes 5.375% Due 2022 [Member] | Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 520,300 | 541,280 |
Senior Notes 5.375% Due 2022 [Member] | Senior Notes [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Senior Notes 5.375% Due 2022 [Member] | Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 520,300 | 541,280 |
Senior Notes 5.375% Due 2022 [Member] | Senior Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | $ 0 |
Senior Notes 4.75% Due 2022 [Member] | Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 575,111 | |
Senior Notes 4.75% Due 2022 [Member] | Senior Notes [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | |
Senior Notes 4.75% Due 2022 [Member] | Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 575,111 | |
Senior Notes 4.75% Due 2022 [Member] | Senior Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | $ 0 |
Concentration of Credit Risk (Details) - Customer Concentration Risk [Member] - customer |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
|
Concentration Risk [Line Items] | |||
Number Of Customers Accounted For More Than 10 Percent Of Entity's Net Sales | 0 | 0 | 0 |
Maximum [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% |
Contingencies (Details) $ in Millions |
1 Months Ended | ||
---|---|---|---|
Mar. 31, 2016
Party
mi
|
Dec. 31, 2016
USD ($)
|
Jan. 02, 2016
USD ($)
|
|
Loss Contingencies [Line Items] | |||
Loss Contingency, Estimate of Possible Loss, Area of Land | mi | 8.3 | ||
Loss Contingency, Estimate of Possible Loss | $ 1,380.0 | ||
Loss Contingency, Number of Parties | Party | 100 | ||
Insurance Environmental and Litigation Matters [Member] | |||
Loss Contingencies [Line Items] | |||
Reserves for insurance, environmental and litigation contingencies | 51.9 | $ 54.6 | |
Insurance Settlements Receivable, Noncurrent | $ 15.9 | $ 12.2 |
Business Segments (Narrative) (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016
USD ($)
segment
|
Oct. 01, 2016
USD ($)
|
Jul. 02, 2016
USD ($)
|
Apr. 02, 2016
USD ($)
|
Jan. 02, 2016
USD ($)
|
Oct. 03, 2015
USD ($)
|
Jul. 04, 2015
USD ($)
|
Apr. 04, 2015
USD ($)
|
Dec. 31, 2016
USD ($)
segment
|
Jan. 02, 2016
USD ($)
|
Jan. 03, 2015
USD ($)
|
Dec. 29, 2013
segment
|
|||
Segment Reporting Information [Line Items] | ||||||||||||||
Number of Business Segments | segment | 3 | 3 | 3 | |||||||||||
Net Sales | $ 887,277 | $ 853,856 | $ 877,341 | $ 779,641 | $ 809,675 | $ 853,762 | $ 859,315 | $ 874,694 | $ 3,398,115 | $ 3,397,446 | $ 3,956,443 | |||
Capital expenditures: | [1] | $ 243,523 | 229,848 | $ 228,918 | ||||||||||
Vion Ingredients [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Capital expenditures: | $ 984,200 | |||||||||||||
|
Business Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Oct. 01, 2016 |
Jul. 02, 2016 |
Apr. 02, 2016 |
Jan. 02, 2016 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
|||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | $ 887,277 | $ 853,856 | $ 877,341 | $ 779,641 | $ 809,675 | $ 853,762 | $ 859,315 | $ 874,694 | $ 3,398,115 | $ 3,397,446 | $ 3,956,443 | ||
Cost of sales and operating expenses | 2,641,734 | 2,654,025 | 3,123,171 | ||||||||||
Selling, general and administrative expense | 314,005 | 322,574 | 374,580 | ||||||||||
Depreciation and amortization | 289,908 | 269,904 | 269,517 | ||||||||||
Segment operating income/(loss) | 35,380 | 35,528 | 54,467 | 26,692 | 32,719 | 38,808 | 39,292 | 31,825 | 152,067 | 142,644 | 164,508 | ||
Equity in net income of unconsolidated subsidiaries | 70,379 | 73,416 | 65,609 | ||||||||||
Total other expense | (99,907) | (117,280) | (148,665) | ||||||||||
Income before income taxes | 47,893 | $ 28,146 | $ 41,974 | $ 4,526 | 84,737 | $ 502 | $ 9,602 | $ 3,939 | 122,539 | 98,780 | 81,452 | ||
Segment assets | 4,698,017 | 4,760,619 | 4,698,017 | 4,760,619 | |||||||||
Capital expenditures: | [1] | 243,523 | 229,848 | 228,918 | |||||||||
Long-Lived Assets | 3,804,715 | 3,828,831 | 3,804,715 | 3,828,831 | |||||||||
North America | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | 1,817,659 | 1,951,421 | 2,131,978 | ||||||||||
Long-Lived Assets | 2,411,489 | 2,375,919 | 2,411,489 | 2,375,919 | |||||||||
Europe | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | 1,225,397 | 1,066,779 | 1,438,320 | ||||||||||
Long-Lived Assets | 1,158,087 | 1,215,341 | 1,158,087 | 1,215,341 | |||||||||
China | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | 218,480 | 234,978 | 229,876 | ||||||||||
Long-Lived Assets | 152,150 | 169,832 | 152,150 | 169,832 | |||||||||
South America | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | 61,276 | 68,226 | 73,241 | ||||||||||
Long-Lived Assets | 74,837 | 60,396 | 74,837 | 60,396 | |||||||||
Other | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | 75,303 | 76,042 | 83,028 | ||||||||||
Long-Lived Assets | 8,152 | 7,343 | 8,152 | 7,343 | |||||||||
Feed Ingredients [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | 2,089,145 | 2,074,333 | 2,421,462 | ||||||||||
Cost of sales and operating expenses | 1,624,858 | 1,613,402 | 1,864,835 | ||||||||||
Gross Margin | 464,287 | 460,931 | 556,627 | ||||||||||
Selling, general and administrative expense | 169,648 | 178,624 | 205,484 | ||||||||||
Acquisition costs | 0 | 0 | 0 | ||||||||||
Depreciation and amortization | 178,845 | 165,854 | 158,871 | ||||||||||
Segment operating income/(loss) | 115,794 | 116,453 | 192,272 | ||||||||||
Equity in net income of unconsolidated subsidiaries | 467 | 1,521 | 1,842 | ||||||||||
Segment income | 116,261 | 117,974 | 194,114 | ||||||||||
Segment assets | 2,464,509 | 2,438,869 | 2,464,509 | 2,438,869 | |||||||||
Capital expenditures: | 167,313 | 153,894 | 135,923 | ||||||||||
Food Ingredients [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | 1,061,912 | 1,094,918 | 1,248,352 | ||||||||||
Cost of sales and operating expenses | 834,410 | 863,562 | 1,029,488 | ||||||||||
Gross Margin | 227,502 | 231,356 | 218,864 | ||||||||||
Selling, general and administrative expense | 96,170 | 103,301 | 118,716 | ||||||||||
Acquisition costs | 0 | 0 | 0 | ||||||||||
Depreciation and amortization | 70,120 | 66,817 | 73,274 | ||||||||||
Segment operating income/(loss) | 61,212 | 61,238 | 26,874 | ||||||||||
Equity in net income of unconsolidated subsidiaries | 0 | 0 | 0 | ||||||||||
Segment income | 61,212 | 61,238 | 26,874 | ||||||||||
Segment assets | 1,414,409 | 1,448,014 | 1,414,409 | 1,448,014 | |||||||||
Capital expenditures: | 50,020 | 49,066 | 61,657 | ||||||||||
Fuel Ingredients [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | 247,058 | 228,195 | 286,629 | ||||||||||
Cost of sales and operating expenses | 182,466 | 177,061 | 228,848 | ||||||||||
Gross Margin | 64,592 | 51,134 | 57,781 | ||||||||||
Selling, general and administrative expense | 6,895 | 7,264 | 8,596 | ||||||||||
Acquisition costs | 0 | 0 | 0 | ||||||||||
Depreciation and amortization | 28,531 | 26,711 | 27,898 | ||||||||||
Segment operating income/(loss) | 29,166 | 17,159 | 21,287 | ||||||||||
Equity in net income of unconsolidated subsidiaries | 69,912 | 71,895 | 63,767 | ||||||||||
Segment income | 99,078 | 89,054 | 85,054 | ||||||||||
Segment assets | 657,637 | 631,968 | 657,637 | 631,968 | |||||||||
Capital expenditures: | 22,323 | 19,478 | 21,392 | ||||||||||
Corporate Segment [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | 0 | 0 | 0 | ||||||||||
Cost of sales and operating expenses | 0 | 0 | 0 | ||||||||||
Gross Margin | 0 | 0 | 0 | ||||||||||
Selling, general and administrative expense | 41,292 | 33,385 | 41,784 | ||||||||||
Acquisition costs | 401 | 8,299 | 24,667 | ||||||||||
Depreciation and amortization | 12,412 | 10,522 | 9,474 | ||||||||||
Segment operating income/(loss) | (54,105) | (52,206) | (75,925) | ||||||||||
Equity in net income of unconsolidated subsidiaries | 0 | 0 | 0 | ||||||||||
Segment income | (54,105) | (52,206) | (75,925) | ||||||||||
Segment assets | 161,462 | 241,768 | 161,462 | 241,768 | |||||||||
Capital expenditures: | 3,867 | 7,410 | 9,946 | ||||||||||
Operating Segments [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | 3,398,115 | 3,397,446 | 3,956,443 | ||||||||||
Cost of sales and operating expenses | 2,641,734 | 2,654,025 | 3,123,171 | ||||||||||
Gross Margin | 756,381 | 743,421 | 833,272 | ||||||||||
Selling, general and administrative expense | 314,005 | 322,574 | 374,580 | ||||||||||
Acquisition costs | 401 | 8,299 | 24,667 | ||||||||||
Depreciation and amortization | 289,908 | 269,904 | 269,517 | ||||||||||
Segment operating income/(loss) | 152,067 | 142,644 | 164,508 | ||||||||||
Equity in net income of unconsolidated subsidiaries | 70,379 | 73,416 | 65,609 | ||||||||||
Segment income | 222,446 | 216,060 | $ 230,117 | ||||||||||
Segment assets | $ 4,698,017 | $ 4,760,619 | $ 4,698,017 | $ 4,760,619 | |||||||||
|
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Oct. 01, 2016 |
Jul. 02, 2016 |
Apr. 02, 2016 |
Jan. 02, 2016 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net Sales | $ 887,277 | $ 853,856 | $ 877,341 | $ 779,641 | $ 809,675 | $ 853,762 | $ 859,315 | $ 874,694 | $ 3,398,115 | $ 3,397,446 | $ 3,956,443 |
Segment operating income/(loss) | 35,380 | 35,528 | 54,467 | 26,692 | 32,719 | 38,808 | 39,292 | 31,825 | 152,067 | 142,644 | 164,508 |
Income from operations before income taxes | 47,893 | 28,146 | 41,974 | 4,526 | 84,737 | 502 | 9,602 | 3,939 | 122,539 | 98,780 | 81,452 |
Net income | 41,680 | 28,890 | 33,991 | 2,663 | 85,875 | (7,357) | 4,937 | 1,824 | 107,224 | 85,279 | 68,311 |
Net income attributable to noncontrolling interests | (1,139) | (196) | (1,992) | (1,584) | (1,446) | (1,730) | (1,857) | (1,715) | (4,911) | (6,748) | (4,096) |
Net income attributable to Darling | $ 40,541 | $ 28,694 | $ 31,999 | $ 1,079 | $ 84,429 | $ (9,087) | $ 3,080 | $ 109 | $ 102,313 | $ 78,531 | $ 64,215 |
Basic (in dollars per share) | $ 0.25 | $ 0.17 | $ 0.19 | $ 0.01 | $ 0.51 | $ (0.06) | $ 0.02 | $ 0.00 | $ 0.62 | $ 0.48 | $ 0.39 |
Diluted (in dollars per share) | $ 0.25 | $ 0.17 | $ 0.19 | $ 0.01 | $ 0.51 | $ (0.06) | $ 0.02 | $ 0.00 | $ 0.62 | $ 0.48 | $ 0.39 |
Cost of sales and operating expenses | $ 2,641,734 | $ 2,654,025 | $ 3,123,171 | ||||||||
Acquisition and integration costs | $ 100 | $ 300 | $ 500 | $ 1,300 | $ 1,200 | $ 5,300 | 401 | 8,299 | 24,667 | ||
Insured Event, Gain (Loss) | 5,600 | ||||||||||
Gain (Loss) on Extinguishment of Debt | $ (10,600) | (528) | (10,633) | (4,330) | |||||||
Foreign currency losses | $ (1,854) | $ (4,911) | $ (13,548) | ||||||||
Income Tax Credits and Adjustments | $ 85,400 |
Related Party Transactions (Details) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Feb. 23, 2015 |
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
|
Related Party Transaction [Line Items] | ||||
Repayments of Long-term Debt | $ 204,428,000 | $ 609,255,000 | $ 333,762,000 | |
Diamond Green Diesel Holdings LLC Joint Venture [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue from Related Parties | 150,500,000 | 158,700,000 | 159,800,000 | |
Accounts Receivable, Related Parties, Current | 6,300,000 | 5,100,000 | ||
Related Party, Sales Eliminated | 4,100,000 | 5,000,000 | 5,100,000 | |
Deferred Revenue, Additions | 700,000 | 800,000 | $ 1,300,000 | |
Revolving Credit Facility [Member] | Revolving Loan Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 10,000,000.0 | |||
Repayments of Long-term Debt | 2,500,000 | $ 3,500,000 | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 | |||
Lender One [Member] | Revolving Credit Facility [Member] | Revolving Loan Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000.0 | |||
LIBO Rate [Member] | Revolving Credit Facility [Member] | Revolving Loan Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.50% |
Guarantor Financial Information (Narrative) (Details) |
Dec. 31, 2016 |
---|---|
Guarantor Financial Information [Abstract] | |
Company's percentage of directly and indirectly owned subsidiaries | 100.00% |
Guarantor Financial Information Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
Dec. 28, 2013 |
---|---|---|---|---|
Assets: | ||||
Cash and cash equivalents | $ 114,564 | $ 156,884 | $ 108,784 | $ 870,857 |
Restricted cash | 293 | 331 | ||
Accounts receivable | 388,397 | 371,392 | ||
Inventories | 330,815 | 344,583 | ||
Income taxes refundable | 7,479 | 11,963 | ||
Prepaid expenses | 29,984 | 36,175 | ||
Other current assets | 21,770 | 10,460 | ||
Total current assets | 893,302 | 931,788 | ||
Investment in subsidiaries | 0 | 0 | ||
Property, plant and equipment, net | 1,515,575 | 1,508,167 | ||
Intangible assets, net | 711,927 | 782,349 | ||
Goodwill | 1,225,893 | 1,233,102 | 1,320,419 | |
Investment in unconsolidated subsidiaries | 292,717 | 247,238 | ||
Other assets | 43,613 | 41,623 | ||
Non-current deferred tax asset | 14,990 | 16,352 | ||
Total assets | 4,698,017 | 4,760,619 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Current portion of long-term debt | 23,247 | 45,166 | ||
Accounts payable, principally trade | 180,895 | 149,998 | ||
Income taxes payable | 4,913 | 6,679 | ||
Accrued expenses | 242,796 | 239,825 | ||
Total current liabilities | 451,851 | 441,668 | ||
Long-term debt, net of current portion | 1,727,696 | 1,885,851 | ||
Other noncurrent liabilities | 96,114 | 97,809 | ||
Deferred income taxes | 346,134 | 360,681 | ||
Total liabilities | 2,621,795 | 2,786,009 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2,076,222 | 1,974,610 | 2,051,134 | 2,020,952 |
Total liabilities and stockholders' equity | 4,698,017 | 4,760,619 | ||
Issuer [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 1,470 | 3,443 | 10,447 | 857,267 |
Restricted cash | 103 | 102 | ||
Accounts receivable | 39,209 | 184,472 | ||
Inventories | 16,573 | 13,564 | ||
Income taxes refundable | 3,566 | 7,695 | ||
Prepaid expenses | 11,152 | 13,322 | ||
Other current assets | 5,859 | 5,273 | ||
Total current assets | 77,932 | 227,871 | ||
Investment in subsidiaries | 4,296,200 | 4,072,855 | ||
Property, plant and equipment, net | 233,456 | 224,208 | ||
Intangible assets, net | 13,746 | 17,794 | ||
Goodwill | 21,860 | 21,860 | ||
Investment in unconsolidated subsidiaries | 1,438 | 0 | ||
Other assets | 36,063 | 36,488 | ||
Non-current deferred tax asset | 0 | 0 | ||
Total assets | 4,680,695 | 4,601,076 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Current portion of long-term debt | 4,220 | 20,328 | ||
Accounts payable, principally trade | 116,075 | 6,981 | ||
Income taxes payable | (383) | (383) | ||
Accrued expenses | 86,581 | 82,854 | ||
Total current liabilities | 206,493 | 109,780 | ||
Long-term debt, net of current portion | 1,109,523 | 1,234,002 | ||
Other noncurrent liabilities | 63,072 | 57,578 | ||
Deferred income taxes | 140,543 | 147,416 | ||
Total liabilities | 1,519,631 | 1,548,776 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 3,161,064 | 3,052,300 | ||
Total liabilities and stockholders' equity | 4,680,695 | 4,601,076 | ||
Guarantors [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 5,754 | 3,993 | 14,460 | 6,117 |
Restricted cash | 0 | 0 | ||
Accounts receivable | 97,220 | 81,644 | ||
Inventories | 85,890 | 89,078 | ||
Income taxes refundable | 0 | 0 | ||
Prepaid expenses | 2,769 | 2,262 | ||
Other current assets | 3,165 | 24 | ||
Total current assets | 194,798 | 177,001 | ||
Investment in subsidiaries | 1,154,398 | 1,141,644 | ||
Property, plant and equipment, net | 497,312 | 477,446 | ||
Intangible assets, net | 291,724 | 326,231 | ||
Goodwill | 549,960 | 549,690 | ||
Investment in unconsolidated subsidiaries | 0 | 0 | ||
Other assets | 396,222 | 499,764 | ||
Non-current deferred tax asset | 0 | 0 | ||
Total assets | 3,084,414 | 3,171,776 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable, principally trade | 18,142 | 210,926 | ||
Income taxes payable | 373 | 373 | ||
Accrued expenses | 33,834 | 29,037 | ||
Total current liabilities | 52,349 | 240,336 | ||
Long-term debt, net of current portion | 0 | 0 | ||
Other noncurrent liabilities | 0 | 1,999 | ||
Deferred income taxes | 0 | 0 | ||
Total liabilities | 52,349 | 242,335 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 3,032,065 | 2,929,441 | ||
Total liabilities and stockholders' equity | 3,084,414 | 3,171,776 | ||
Non-guarantors [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 107,340 | 149,448 | 83,877 | 7,473 |
Restricted cash | 190 | 229 | ||
Accounts receivable | 339,251 | 310,932 | ||
Inventories | 228,352 | 241,941 | ||
Income taxes refundable | 3,913 | 4,268 | ||
Prepaid expenses | 16,063 | 20,591 | ||
Other current assets | 19,221 | 22,852 | ||
Total current assets | 714,330 | 750,261 | ||
Investment in subsidiaries | 909,263 | 837,604 | ||
Property, plant and equipment, net | 784,807 | 806,513 | ||
Intangible assets, net | 406,457 | 438,324 | ||
Goodwill | 654,073 | 661,552 | ||
Investment in unconsolidated subsidiaries | 291,279 | 247,238 | ||
Other assets | 160,505 | 314,893 | ||
Non-current deferred tax asset | 14,990 | 16,352 | ||
Total assets | 3,935,704 | 4,072,737 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Current portion of long-term debt | 25,502 | 42,527 | ||
Accounts payable, principally trade | 130,718 | 122,136 | ||
Income taxes payable | 4,923 | 6,689 | ||
Accrued expenses | 125,624 | 143,547 | ||
Total current liabilities | 286,767 | 314,899 | ||
Long-term debt, net of current portion | 1,167,349 | 1,461,371 | ||
Other noncurrent liabilities | 33,042 | 38,232 | ||
Deferred income taxes | 205,591 | 213,265 | ||
Total liabilities | 1,692,749 | 2,027,767 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2,242,955 | 2,044,970 | ||
Total liabilities and stockholders' equity | 3,935,704 | 4,072,737 | ||
Eliminations [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Restricted cash | 0 | 0 | ||
Accounts receivable | (87,283) | (205,656) | ||
Inventories | 0 | 0 | ||
Income taxes refundable | 0 | 0 | ||
Prepaid expenses | 0 | 0 | ||
Other current assets | (6,475) | (17,689) | ||
Total current assets | (93,758) | (223,345) | ||
Investment in subsidiaries | (6,359,861) | (6,052,103) | ||
Property, plant and equipment, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investment in unconsolidated subsidiaries | 0 | 0 | ||
Other assets | (549,177) | (809,522) | ||
Non-current deferred tax asset | 0 | 0 | ||
Total assets | (7,002,796) | (7,084,970) | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Current portion of long-term debt | (6,475) | (17,689) | ||
Accounts payable, principally trade | (84,040) | (190,045) | ||
Income taxes payable | 0 | 0 | ||
Accrued expenses | (3,243) | (15,613) | ||
Total current liabilities | (93,758) | (223,347) | ||
Long-term debt, net of current portion | (549,176) | (809,522) | ||
Other noncurrent liabilities | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Total liabilities | (642,934) | (1,032,869) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (6,359,862) | (6,052,101) | ||
Total liabilities and stockholders' equity | $ (7,002,796) | $ (7,084,970) |
Guarantor Financial Information Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Oct. 01, 2016 |
Jul. 02, 2016 |
Apr. 02, 2016 |
Jan. 02, 2016 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
|
Net Sales | $ 887,277 | $ 853,856 | $ 877,341 | $ 779,641 | $ 809,675 | $ 853,762 | $ 859,315 | $ 874,694 | $ 3,398,115 | $ 3,397,446 | $ 3,956,443 |
Costs and expenses: | |||||||||||
Cost of sales and operating expenses | 2,641,734 | 2,654,025 | 3,123,171 | ||||||||
Selling, general and administrative expense | 314,005 | 322,574 | 374,580 | ||||||||
Depreciation and amortization | 289,908 | 269,904 | 269,517 | ||||||||
Acquisition and integration costs | 100 | 300 | 500 | 1,300 | 1,200 | 5,300 | 401 | 8,299 | 24,667 | ||
Total costs and expenses | 3,246,048 | 3,254,802 | 3,791,935 | ||||||||
Operating income | 35,380 | 35,528 | 54,467 | 26,692 | 32,719 | 38,808 | 39,292 | 31,825 | 152,067 | 142,644 | 164,508 |
Interest expense | (94,187) | (105,530) | (135,416) | ||||||||
Foreign currency losses | (1,854) | (4,911) | (13,548) | ||||||||
Other income/(expense), net | (3,866) | (6,839) | 299 | ||||||||
Equity in net income of unconsolidated subsidiaries | 70,379 | 73,416 | 65,609 | ||||||||
Earnings in investments in subsidiaries | 0 | 0 | 0 | ||||||||
Income from operations before income taxes | 47,893 | 28,146 | 41,974 | 4,526 | 84,737 | 502 | 9,602 | 3,939 | 122,539 | 98,780 | 81,452 |
Income taxes (benefit) | 15,315 | 13,501 | 13,141 | ||||||||
Net income attributable to noncontrolling interests | (1,139) | (196) | (1,992) | (1,584) | (1,446) | (1,730) | (1,857) | (1,715) | (4,911) | (6,748) | (4,096) |
Net income attributable to Darling | $ 40,541 | $ 28,694 | $ 31,999 | $ 1,079 | $ 84,429 | $ (9,087) | $ 3,080 | $ 109 | 102,313 | 78,531 | 64,215 |
Issuer [Member] | |||||||||||
Net Sales | 501,856 | 475,213 | 557,316 | ||||||||
Costs and expenses: | |||||||||||
Cost of sales and operating expenses | 392,876 | 369,928 | 421,883 | ||||||||
Selling, general and administrative expense | 130,573 | 122,509 | 145,258 | ||||||||
Depreciation and amortization | 41,106 | 34,889 | 31,183 | ||||||||
Acquisition and integration costs | 0 | 3,177 | 20,410 | ||||||||
Total costs and expenses | 564,555 | 530,503 | 618,734 | ||||||||
Operating income | (62,699) | (55,290) | (61,418) | ||||||||
Interest expense | (60,971) | (60,945) | (97,912) | ||||||||
Foreign currency losses | 122 | (123) | (12,244) | ||||||||
Other income/(expense), net | (13,538) | (22,455) | (3,717) | ||||||||
Equity in net income of unconsolidated subsidiaries | (1,236) | 0 | 0 | ||||||||
Earnings in investments in subsidiaries | 223,347 | 198,371 | 223,790 | ||||||||
Income from operations before income taxes | 85,025 | 59,558 | 48,499 | ||||||||
Income taxes (benefit) | (17,288) | (18,973) | (15,716) | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Darling | 102,313 | 78,531 | 64,215 | ||||||||
Guarantors [Member] | |||||||||||
Net Sales | 1,341,925 | 1,363,279 | 1,620,054 | ||||||||
Costs and expenses: | |||||||||||
Cost of sales and operating expenses | 1,085,582 | 1,108,864 | 1,330,038 | ||||||||
Selling, general and administrative expense | 51,029 | 55,691 | 54,070 | ||||||||
Depreciation and amortization | 105,261 | 98,400 | 83,957 | ||||||||
Acquisition and integration costs | 0 | 0 | 0 | ||||||||
Total costs and expenses | 1,241,872 | 1,262,955 | 1,468,065 | ||||||||
Operating income | 100,053 | 100,324 | 151,989 | ||||||||
Interest expense | 17,492 | 18,839 | 21,231 | ||||||||
Foreign currency losses | (283) | (1,649) | (417) | ||||||||
Other income/(expense), net | 106 | 435 | (19) | ||||||||
Equity in net income of unconsolidated subsidiaries | 0 | 0 | 0 | ||||||||
Earnings in investments in subsidiaries | 0 | 0 | 0 | ||||||||
Income from operations before income taxes | 117,368 | 117,949 | 172,784 | ||||||||
Income taxes (benefit) | 14,669 | 16,121 | 17,534 | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Darling | 102,699 | 101,828 | 155,250 | ||||||||
Non-guarantors [Member] | |||||||||||
Net Sales | 1,752,844 | 1,759,800 | 2,063,310 | ||||||||
Costs and expenses: | |||||||||||
Cost of sales and operating expenses | 1,361,786 | 1,376,079 | 1,655,487 | ||||||||
Selling, general and administrative expense | 132,403 | 144,374 | 175,252 | ||||||||
Depreciation and amortization | 143,541 | 136,615 | 154,377 | ||||||||
Acquisition and integration costs | 401 | 5,122 | 4,257 | ||||||||
Total costs and expenses | 1,638,131 | 1,662,190 | 1,989,373 | ||||||||
Operating income | 114,713 | 97,610 | 73,937 | ||||||||
Interest expense | (50,708) | (63,424) | (58,554) | ||||||||
Foreign currency losses | (1,693) | (3,139) | (887) | ||||||||
Other income/(expense), net | 9,566 | 15,181 | 3,854 | ||||||||
Equity in net income of unconsolidated subsidiaries | 71,615 | 73,416 | 65,609 | ||||||||
Earnings in investments in subsidiaries | 0 | 0 | 0 | ||||||||
Income from operations before income taxes | 143,493 | 119,644 | 83,959 | ||||||||
Income taxes (benefit) | 17,934 | 16,353 | 11,323 | ||||||||
Net income attributable to noncontrolling interests | (4,911) | (6,748) | (4,096) | ||||||||
Net income attributable to Darling | 120,648 | 96,543 | 68,540 | ||||||||
Eliminations [Member] | |||||||||||
Net Sales | (198,510) | (200,846) | (284,237) | ||||||||
Costs and expenses: | |||||||||||
Cost of sales and operating expenses | (198,510) | (200,846) | (284,237) | ||||||||
Selling, general and administrative expense | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Acquisition and integration costs | 0 | 0 | 0 | ||||||||
Total costs and expenses | (198,510) | (200,846) | (284,237) | ||||||||
Operating income | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | (181) | ||||||||
Foreign currency losses | 0 | 0 | 0 | ||||||||
Other income/(expense), net | 0 | 0 | 181 | ||||||||
Equity in net income of unconsolidated subsidiaries | 0 | 0 | 0 | ||||||||
Earnings in investments in subsidiaries | (223,347) | (198,371) | (223,790) | ||||||||
Income from operations before income taxes | (223,347) | (198,371) | (223,790) | ||||||||
Income taxes (benefit) | 0 | 0 | 0 | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Darling | $ (223,347) | $ (198,371) | $ (223,790) |
Guarantor Financial Information Guarantor Financial Information Condensed Consolidating Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Oct. 01, 2016 |
Jul. 02, 2016 |
Apr. 02, 2016 |
Jan. 02, 2016 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
|
Net income | $ 41,680 | $ 28,890 | $ 33,991 | $ 2,663 | $ 85,875 | $ (7,357) | $ 4,937 | $ 1,824 | $ 107,224 | $ 85,279 | $ 68,311 |
Foreign currency translation adjustments | (5,593) | (162,436) | (119,684) | ||||||||
Pension adjustments | (1,016) | 4,202 | (20,381) | ||||||||
Total other comprehensive income, net of tax | (5,984) | (156,467) | (141,437) | ||||||||
Total comprehensive income/(loss) | 101,240 | (71,188) | (73,126) | ||||||||
Comprehensive income attributable to noncontrolling interests | 3,015 | 9,139 | 10,296 | ||||||||
Comprehensive income/(loss) attributable to Darling | 98,225 | (80,327) | (83,422) | ||||||||
Natural Gas Swap [Member] | |||||||||||
Total natural gas derivatives | (113) | ||||||||||
Corn Option [Member] | |||||||||||
Total natural gas derivatives | 625 | 1,767 | (1,259) | ||||||||
Issuer [Member] | |||||||||||
Net income | 107,224 | 85,279 | 68,311 | ||||||||
Foreign currency translation adjustments | 0 | 0 | 0 | ||||||||
Pension adjustments | 1,766 | 83 | (11,844) | ||||||||
Total other comprehensive income, net of tax | 2,391 | 1,850 | (13,216) | ||||||||
Total comprehensive income/(loss) | 109,615 | 87,129 | 55,095 | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income/(loss) attributable to Darling | 109,615 | 87,129 | 55,095 | ||||||||
Issuer [Member] | Natural Gas Swap [Member] | |||||||||||
Total natural gas derivatives | (113) | ||||||||||
Issuer [Member] | Corn Option [Member] | |||||||||||
Total natural gas derivatives | 625 | 1,767 | (1,259) | ||||||||
Guarantors [Member] | |||||||||||
Net income | 102,699 | 101,828 | 155,250 | ||||||||
Foreign currency translation adjustments | 0 | 0 | 0 | ||||||||
Pension adjustments | 0 | 109 | (34) | ||||||||
Total other comprehensive income, net of tax | 0 | 109 | (34) | ||||||||
Total comprehensive income/(loss) | 102,699 | 101,937 | 155,216 | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income/(loss) attributable to Darling | 102,699 | 101,937 | 155,216 | ||||||||
Guarantors [Member] | Natural Gas Swap [Member] | |||||||||||
Total natural gas derivatives | 0 | ||||||||||
Guarantors [Member] | Corn Option [Member] | |||||||||||
Total natural gas derivatives | 0 | 0 | 0 | ||||||||
Non-guarantors [Member] | |||||||||||
Net income | 120,648 | 96,543 | 68,540 | ||||||||
Foreign currency translation adjustments | (5,593) | (162,436) | (119,684) | ||||||||
Pension adjustments | (2,782) | 4,010 | (8,503) | ||||||||
Total other comprehensive income, net of tax | (8,375) | (158,426) | (128,187) | ||||||||
Total comprehensive income/(loss) | 112,273 | (61,883) | (59,647) | ||||||||
Comprehensive income attributable to noncontrolling interests | 3,015 | 9,139 | 10,296 | ||||||||
Comprehensive income/(loss) attributable to Darling | 109,258 | (71,022) | (69,943) | ||||||||
Non-guarantors [Member] | Natural Gas Swap [Member] | |||||||||||
Total natural gas derivatives | 0 | ||||||||||
Non-guarantors [Member] | Corn Option [Member] | |||||||||||
Total natural gas derivatives | 0 | 0 | 0 | ||||||||
Eliminations [Member] | |||||||||||
Net income | (223,347) | (198,371) | (223,790) | ||||||||
Foreign currency translation adjustments | 0 | 0 | 0 | ||||||||
Pension adjustments | 0 | 0 | 0 | ||||||||
Total other comprehensive income, net of tax | 0 | 0 | 0 | ||||||||
Total comprehensive income/(loss) | (223,347) | (198,371) | (223,790) | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income/(loss) attributable to Darling | (223,347) | (198,371) | (223,790) | ||||||||
Eliminations [Member] | Natural Gas Swap [Member] | |||||||||||
Total natural gas derivatives | 0 | ||||||||||
Eliminations [Member] | Corn Option [Member] | |||||||||||
Total natural gas derivatives | $ 0 | $ 0 | $ 0 |
Guarantor Financial Information Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Oct. 01, 2016 |
Jul. 02, 2016 |
Apr. 02, 2016 |
Jan. 02, 2016 |
Oct. 03, 2015 |
Jul. 04, 2015 |
Apr. 04, 2015 |
Dec. 31, 2016 |
Jan. 02, 2016 |
Jan. 03, 2015 |
|||
Net income | $ 41,680 | $ 28,890 | $ 33,991 | $ 2,663 | $ 85,875 | $ (7,357) | $ 4,937 | $ 1,824 | $ 107,224 | $ 85,279 | $ 68,311 | ||
Cash flows from operating activities: | |||||||||||||
Earnings in investments in subsidiaries | 0 | 0 | 0 | ||||||||||
Other operating cash flows | 283,812 | 335,680 | 206,861 | ||||||||||
Net cash provided by operating activities | 391,036 | 420,959 | 275,172 | ||||||||||
Cash flows from investing activities: | |||||||||||||
Capital expenditures | [1] | (243,523) | (229,848) | (228,918) | |||||||||
Acquisitions, net of cash acquired | (8,511) | (377) | (2,094,400) | ||||||||||
Investment in unconsolidated subsidiary | 0 | 0 | 0 | ||||||||||
Note receivable from affiliates | 0 | 0 | 0 | ||||||||||
Gross proceeds from sale of property, plant and equipment and other assets | 7,329 | 3,840 | 9,262 | ||||||||||
Proceeds from insurance settlement | 1,537 | 561 | 1,550 | ||||||||||
Payments related to routes and other intangibles | (23) | (3,845) | (11,288) | ||||||||||
Net cash used in investing activities | (243,191) | (229,669) | (2,323,794) | ||||||||||
Cash flows from financing activities: | |||||||||||||
Proceeds from long-term debt | 36,327 | 590,745 | 1,842,184 | ||||||||||
Payments on long-term debt | (204,428) | (609,255) | (333,762) | ||||||||||
Borrowings from revolving credit facility | 99,276 | 78,244 | 170,143 | ||||||||||
Payments on revolving credit facility | (104,028) | (166,755) | (351,589) | ||||||||||
Net cash overdraft financing | 1,071 | (1,261) | 4,077 | ||||||||||
Deferred loan costs | (3,879) | (17,310) | (45,223) | ||||||||||
Issuance of common stock | 188 | 171 | 416 | ||||||||||
Repurchase of treasury stock | (5,000) | (5,912) | 0 | ||||||||||
Contributions from parent | 0 | 0 | 0 | ||||||||||
Minimum withholding taxes paid on stock awards | (1,843) | (4,874) | (10,026) | ||||||||||
Excess tax benefit from stock-based compensation | 0 | 0 | 2,420 | ||||||||||
Addition/(deductions) of noncontrolling interest | 0 | (87) | 1,201 | ||||||||||
Distributions to noncontrolling interests | (1,552) | (3,295) | (4,272) | ||||||||||
Net cash provided/(used) in financing activities | (183,868) | (139,589) | 1,275,569 | ||||||||||
Effect of exchange rate changes on cash flows | (6,297) | (3,601) | 10,980 | ||||||||||
Net increase/(decrease) in cash and cash equivalents | (42,320) | 48,100 | (762,073) | ||||||||||
Cash and cash equivalents at beginning of year | 156,884 | 108,784 | 156,884 | 108,784 | 870,857 | ||||||||
Cash and cash equivalents at end of year | 114,564 | 156,884 | 114,564 | 156,884 | 108,784 | ||||||||
Issuer [Member] | |||||||||||||
Net income | 107,224 | 85,279 | 68,311 | ||||||||||
Cash flows from operating activities: | |||||||||||||
Earnings in investments in subsidiaries | (223,347) | (198,371) | (223,790) | ||||||||||
Other operating cash flows | 317,040 | 250,597 | 226,120 | ||||||||||
Net cash provided by operating activities | 200,917 | 137,505 | 70,641 | ||||||||||
Cash flows from investing activities: | |||||||||||||
Capital expenditures | (51,330) | (46,574) | (39,248) | ||||||||||
Acquisitions, net of cash acquired | 0 | 0 | 0 | ||||||||||
Investment in unconsolidated subsidiary | 0 | (20) | (1,483,007) | ||||||||||
Note receivable from affiliates | 0 | 0 | 0 | ||||||||||
Gross proceeds from sale of property, plant and equipment and other assets | 2,784 | 1,035 | 1,522 | ||||||||||
Proceeds from insurance settlement | 0 | 71 | 1,350 | ||||||||||
Payments related to routes and other intangibles | 0 | 0 | (9,640) | ||||||||||
Net cash used in investing activities | (48,546) | (45,488) | (1,529,023) | ||||||||||
Cash flows from financing activities: | |||||||||||||
Proceeds from long-term debt | 0 | 0 | 1,100,000 | ||||||||||
Payments on long-term debt | (143,935) | (16,111) | (264,500) | ||||||||||
Borrowings from revolving credit facility | 94,000 | 25,000 | 122,445 | ||||||||||
Payments on revolving credit facility | (94,000) | (90,000) | (297,445) | ||||||||||
Net cash overdraft financing | 0 | 0 | 0 | ||||||||||
Deferred loan costs | (3,879) | (7,295) | (41,748) | ||||||||||
Issuance of common stock | 188 | 171 | 416 | ||||||||||
Repurchase of treasury stock | (5,000) | (5,912) | |||||||||||
Contributions from parent | 0 | 0 | 0 | ||||||||||
Minimum withholding taxes paid on stock awards | (1,718) | (4,874) | (10,026) | ||||||||||
Excess tax benefit from stock-based compensation | 2,420 | ||||||||||||
Addition/(deductions) of noncontrolling interest | 0 | 0 | |||||||||||
Distributions to noncontrolling interests | 0 | 0 | 0 | ||||||||||
Net cash provided/(used) in financing activities | (154,344) | (99,021) | 611,562 | ||||||||||
Effect of exchange rate changes on cash flows | 0 | 0 | 0 | ||||||||||
Net increase/(decrease) in cash and cash equivalents | (1,973) | (7,004) | (846,820) | ||||||||||
Cash and cash equivalents at beginning of year | 3,443 | 10,447 | 3,443 | 10,447 | 857,267 | ||||||||
Cash and cash equivalents at end of year | 1,470 | 3,443 | 1,470 | 3,443 | 10,447 | ||||||||
Guarantors [Member] | |||||||||||||
Net income | 102,699 | 101,828 | 155,250 | ||||||||||
Cash flows from operating activities: | |||||||||||||
Earnings in investments in subsidiaries | 0 | 0 | 0 | ||||||||||
Other operating cash flows | (100,970) | (53,098) | (34,238) | ||||||||||
Net cash provided by operating activities | 1,729 | 48,730 | 121,012 | ||||||||||
Cash flows from investing activities: | |||||||||||||
Capital expenditures | (91,340) | (91,702) | (84,299) | ||||||||||
Acquisitions, net of cash acquired | 0 | 0 | (19,394) | ||||||||||
Investment in unconsolidated subsidiary | (12,754) | (45,103) | (1,442,788) | ||||||||||
Note receivable from affiliates | 103,056 | 76,019 | (204,074) | ||||||||||
Gross proceeds from sale of property, plant and equipment and other assets | 1,070 | 1,154 | 5,155 | ||||||||||
Proceeds from insurance settlement | 0 | 490 | 200 | ||||||||||
Payments related to routes and other intangibles | 0 | 0 | 0 | ||||||||||
Net cash used in investing activities | 32 | (59,142) | (1,745,200) | ||||||||||
Cash flows from financing activities: | |||||||||||||
Proceeds from long-term debt | 0 | 0 | 0 | ||||||||||
Payments on long-term debt | 0 | (55) | (87) | ||||||||||
Borrowings from revolving credit facility | 0 | 0 | 0 | ||||||||||
Payments on revolving credit facility | 0 | 0 | 0 | ||||||||||
Net cash overdraft financing | 0 | 0 | 0 | ||||||||||
Deferred loan costs | 0 | 0 | 0 | ||||||||||
Issuance of common stock | 0 | 0 | 0 | ||||||||||
Repurchase of treasury stock | 0 | 0 | |||||||||||
Contributions from parent | 0 | 0 | 1,632,618 | ||||||||||
Minimum withholding taxes paid on stock awards | 0 | 0 | 0 | ||||||||||
Excess tax benefit from stock-based compensation | 0 | ||||||||||||
Addition/(deductions) of noncontrolling interest | 0 | 0 | |||||||||||
Distributions to noncontrolling interests | 0 | 0 | 0 | ||||||||||
Net cash provided/(used) in financing activities | 0 | (55) | 1,632,531 | ||||||||||
Effect of exchange rate changes on cash flows | 0 | 0 | 0 | ||||||||||
Net increase/(decrease) in cash and cash equivalents | 1,761 | (10,467) | 8,343 | ||||||||||
Cash and cash equivalents at beginning of year | 3,993 | 14,460 | 3,993 | 14,460 | 6,117 | ||||||||
Cash and cash equivalents at end of year | 5,754 | 3,993 | 5,754 | 3,993 | 14,460 | ||||||||
Non-guarantors [Member] | |||||||||||||
Net income | 120,648 | 96,543 | 68,540 | ||||||||||
Cash flows from operating activities: | |||||||||||||
Earnings in investments in subsidiaries | 0 | 0 | 0 | ||||||||||
Other operating cash flows | 67,742 | 138,181 | 14,979 | ||||||||||
Net cash provided by operating activities | 188,390 | 234,724 | 83,519 | ||||||||||
Cash flows from investing activities: | |||||||||||||
Capital expenditures | (100,853) | (91,572) | (105,371) | ||||||||||
Acquisitions, net of cash acquired | (8,511) | (377) | (2,075,006) | ||||||||||
Investment in unconsolidated subsidiary | 0 | 29,541 | (440,619) | ||||||||||
Note receivable from affiliates | (103,056) | (76,019) | 204,074 | ||||||||||
Gross proceeds from sale of property, plant and equipment and other assets | 3,475 | 1,651 | 2,585 | ||||||||||
Proceeds from insurance settlement | 1,537 | 0 | 0 | ||||||||||
Payments related to routes and other intangibles | (23) | (3,845) | (1,648) | ||||||||||
Net cash used in investing activities | (207,431) | (140,621) | (2,415,985) | ||||||||||
Cash flows from financing activities: | |||||||||||||
Proceeds from long-term debt | 36,327 | 590,745 | 742,184 | ||||||||||
Payments on long-term debt | (60,493) | (593,089) | (69,175) | ||||||||||
Borrowings from revolving credit facility | 5,276 | 53,244 | 47,698 | ||||||||||
Payments on revolving credit facility | (10,028) | (76,755) | (54,144) | ||||||||||
Net cash overdraft financing | 1,071 | (1,261) | 4,077 | ||||||||||
Deferred loan costs | 0 | (10,015) | (3,475) | ||||||||||
Issuance of common stock | 0 | 0 | 0 | ||||||||||
Repurchase of treasury stock | 0 | 0 | |||||||||||
Contributions from parent | 12,754 | 15,582 | 1,733,796 | ||||||||||
Minimum withholding taxes paid on stock awards | (125) | 0 | 0 | ||||||||||
Excess tax benefit from stock-based compensation | 0 | ||||||||||||
Addition/(deductions) of noncontrolling interest | (87) | 1,201 | |||||||||||
Distributions to noncontrolling interests | (1,552) | (3,295) | (4,272) | ||||||||||
Net cash provided/(used) in financing activities | (16,770) | (24,931) | 2,397,890 | ||||||||||
Effect of exchange rate changes on cash flows | (6,297) | (3,601) | 10,980 | ||||||||||
Net increase/(decrease) in cash and cash equivalents | (42,108) | 65,571 | 76,404 | ||||||||||
Cash and cash equivalents at beginning of year | 149,448 | 83,877 | 149,448 | 83,877 | 7,473 | ||||||||
Cash and cash equivalents at end of year | 107,340 | 149,448 | 107,340 | 149,448 | 83,877 | ||||||||
Eliminations [Member] | |||||||||||||
Net income | (223,347) | (198,371) | (223,790) | ||||||||||
Cash flows from operating activities: | |||||||||||||
Earnings in investments in subsidiaries | 223,347 | 198,371 | 223,790 | ||||||||||
Other operating cash flows | 0 | 0 | 0 | ||||||||||
Net cash provided by operating activities | 0 | 0 | 0 | ||||||||||
Cash flows from investing activities: | |||||||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||||
Acquisitions, net of cash acquired | 0 | 0 | 0 | ||||||||||
Investment in unconsolidated subsidiary | 12,754 | 15,582 | 3,366,414 | ||||||||||
Note receivable from affiliates | 0 | 0 | 0 | ||||||||||
Gross proceeds from sale of property, plant and equipment and other assets | 0 | 0 | 0 | ||||||||||
Proceeds from insurance settlement | 0 | 0 | 0 | ||||||||||
Payments related to routes and other intangibles | 0 | 0 | 0 | ||||||||||
Net cash used in investing activities | 12,754 | 15,582 | 3,366,414 | ||||||||||
Cash flows from financing activities: | |||||||||||||
Proceeds from long-term debt | 0 | 0 | 0 | ||||||||||
Payments on long-term debt | 0 | 0 | 0 | ||||||||||
Borrowings from revolving credit facility | 0 | 0 | 0 | ||||||||||
Payments on revolving credit facility | 0 | 0 | 0 | ||||||||||
Net cash overdraft financing | 0 | 0 | 0 | ||||||||||
Deferred loan costs | 0 | 0 | 0 | ||||||||||
Issuance of common stock | 0 | 0 | 0 | ||||||||||
Repurchase of treasury stock | 0 | 0 | |||||||||||
Contributions from parent | (12,754) | (15,582) | (3,366,414) | ||||||||||
Minimum withholding taxes paid on stock awards | 0 | 0 | 0 | ||||||||||
Excess tax benefit from stock-based compensation | 0 | ||||||||||||
Addition/(deductions) of noncontrolling interest | 0 | 0 | |||||||||||
Distributions to noncontrolling interests | 0 | 0 | 0 | ||||||||||
Net cash provided/(used) in financing activities | (12,754) | (15,582) | (3,366,414) | ||||||||||
Effect of exchange rate changes on cash flows | 0 | 0 | 0 | ||||||||||
Net increase/(decrease) in cash and cash equivalents | 0 | 0 | 0 | ||||||||||
Cash and cash equivalents at beginning of year | $ 0 | $ 0 | 0 | 0 | 0 | ||||||||
Cash and cash equivalents at end of year | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||
|
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