Guarantor Financial Information (Tables)

3 Months Ended

Apr. 01, 2017

Guarantor Financial Information [Abstract]

Guarantor Financial Information Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

As of April 1, 2017

(in thousands)

	Parent		Guarantors		Non-guarantors		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	1,492	$	2,548	$	134,840	$	—		$	138,880
Restricted cash	103		—		179		—			282
Accounts receivable	37,683		132,374		374,206		(154,399		)	389,864
Inventories	15,485		86,262		240,367		—			342,114
Income taxes refundable	3,035		—		3,943		—			6,978
Prepaid expenses	12,066		2,210		18,576		—			32,852
Other current assets	4,861		2,568		10,060		(1,158		)	16,331
Total current assets	74,725		225,962		782,171		(155,557		)	927,301
Investment in subsidiaries	4,334,518		1,154,398		909,263		(6,398,179		)	—
Property, plant and equipment, net	240,775		497,348		794,460		—			1,532,583
Intangible assets, net	12,935		283,060		401,825		—			697,820
Goodwill	21,860		549,956		661,455		—			1,233,271
Investment in unconsolidated subsidiaries	3,315		—		267,606		—			270,921
Other assets	34,987		396,174		161,982		(551,005		)	42,138
Deferred taxes	—		—		15,627		—			15,627
	$	4,723,115	$	3,106,898	$	3,994,389	$	(7,104,741	)	$	4,719,661
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	$	5,712	$	—	$	20,411	$	(1,158	)	$	24,965
Accounts payable	174,121		22,212		134,387		(149,281		)	181,439
Income taxes payable	2,140		373		9,553		—			12,066
Accrued expenses	64,391		26,697		147,354		(5,118		)	233,324
Total current liabilities	246,364		49,282		311,705		(155,557		)	451,794
Long-term debt, net of current portion	1,107,240		—		1,171,260		(551,004		)	1,727,496
Other noncurrent liabilities	62,795		—		32,925		—			95,720
Deferred income taxes	135,404		—		205,410		—			340,814
Total liabilities	1,551,803		49,282		1,721,300		(706,561		)	2,615,824
Total stockholders’ equity	3,171,312		3,057,616		2,273,089		(6,398,180		)	2,103,837
	$	4,723,115	$	3,106,898	$	3,994,389	$	(7,104,741	)	$	4,719,661

Condensed Consolidating Balance Sheet

As of December 31, 2016

(in thousands)

	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 subsidiary	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

Guarantor Financial Information Condensed Consolidating Statements Of Operations

Condensed Consolidating Statements of Operations

For the three months ended April 1, 2017

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	136,157		$	360,184		$	441,350		$	(57,619	)	$	880,072
Cost and expenses:
Cost of sales and operating expenses	109,663			292,771			344,812			(57,619		)	689,627
Selling, general and administrative expenses	39,816			14,177			33,924			—			87,917
Acquisition and integration costs	—			—			—			—			—
Depreciation and amortization	10,285			25,436			35,393			—			71,114
Total costs and expenses	159,764			332,384			414,129			(57,619		)	848,658
Operating income/(loss)	(23,607		)	27,800			27,221			—			31,414
Interest expense	(13,586		)	4,023			(12,117		)	—			(21,680		)
Foreign currency gains/(losses)	(6		)	(25		)	(233		)	—			(264		)
Other expense, net	(2,901		)	32			1,909			—			(960		)
Equity in net income/(loss) of unconsolidated subsidiaries	(373		)	—			1,079			—			706
Earnings in investments in subsidiaries	38,318			—			—			(38,318		)	—
Income/(loss) before taxes	(2,155		)	31,830			17,859			(38,318		)	9,216
Income taxes (benefit)	(7,984		)	6,279			3,523			—			1,818
Net income attributable to noncontrolling interests	—			—			(1,569		)	—			(1,569		)
Net income/(loss) attributable to Darling	$	5,829		$	25,551		$	12,767		$	(38,318	)	$	5,829

Condensed Consolidating Statements of Operations

For the three months ended April 2, 2016

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	108,371		$	303,765		$	411,037		$	(43,532	)	$	779,641
Cost and expenses:
Cost of sales and operating expenses	89,483			236,336			316,606			(43,532		)	598,893
Selling, general and administrative expenses	35,893			13,136			32,440			—			81,469
Acquisition and integration costs	—			—			331			—			331
Depreciation and amortization	11,425			26,808			34,023			—			72,256
Total costs and expenses	136,801			276,280			383,400			(43,532		)	752,949
Operating income/(loss)	(28,430		)	27,485			27,637			—			26,692
Interest expense	(15,522		)	4,377			(12,756		)	—			(23,901		)
Foreign currency gains/(losses)	(31		)	165			(2,737		)	—			(2,603		)
Other expense, net	(3,325		)	(5		)	2,025			—			(1,305		)
Equity in net loss of unconsolidated subsidiaries	(97		)	—			5,740			—			5,643
Earnings in investments in subsidiaries	28,971			—			—			(28,971		)	—
Income/(loss) before taxes	(18,434		)	32,022			19,909			(28,971		)	4,526
Income taxes (benefit)	(19,513		)	13,181			8,195			—			1,863
Net income attributable to noncontrolling interests	—			—			(1,584		)	—			(1,584		)
Net income/(loss) attributable to Darling	$	1,079		$	18,841		$	10,130		$	(28,971	)	$	1,079

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

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the three months ended April 1, 2017

(in thousands)

	Parent			Guarantors		Non-guarantors		Eliminations			Consolidated
Net income/(loss)	$	7,398		$	25,551	$	12,767	$	(38,318	)	$	7,398
Other comprehensive income/(loss), net of tax:
Foreign currency translation	—			—		15,679		—			15,679
Pension adjustments	641			—		118		—			759
Corn option derivative adjustments	(1,102		)	—		—		—			(1,102		)
Total other comprehensive income/(loss), net of tax	(461		)	—		15,797		—			15,336
Total comprehensive income/(loss)	6,937			25,551		28,564		(38,318		)	22,734
Total comprehensive income attributable to noncontrolling interest	—			—		1,247		—			1,247
Total comprehensive income/(loss) attributable to Darling	$	6,937		$	25,551	$	27,317	$	(38,318	)	$	21,487

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the three months ended April 2, 2016

(in thousands)

	Parent			Guarantors		Non-guarantors			Eliminations			Consolidated
Net income/(loss)	$	2,663		$	18,841	$	10,130		$	(28,971	)	$	2,663
Other comprehensive income/(loss), net of tax:
Foreign currency translation	—			—		57,531			—			57,531
Pension adjustments	658			—		68			—			726
Corn option derivative adjustments	(706		)	—		—			—			(706		)
Total other comprehensive income/(loss), net of tax	(48		)	—		57,599			—			57,551
Total comprehensive income/(loss)	2,615			18,841		67,729			(28,971		)	60,214
Total comprehensive income attributable to noncontrolling interest	—			—		(420		)	—			(420		)
Total comprehensive income/(loss) attributable to Darling	$	2,615		$	18,841	$	68,149		$	(28,971	)	$	60,634

Guarantor Financial Information Condensed Consolidating Statements Of Cash Flows

Condensed Consolidating Statements of Cash Flows

For the three months ended April 1, 2017

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income/(loss)	$	7,398		$	25,551		$	12,767		$	(38,318	)	$	7,398
Earnings in investments in subsidiaries	(38,318		)	—			—			38,318			—
Other operating cash flows	56,236			(9,676		)	40,511			—			87,071
Net cash provided by operating activities	25,316			15,875			53,278			—			94,469
Cash flows from investing activities:
Capital expenditures	(18,732		)	(19,689		)	(23,871		)	—			(62,292		)
Investment in subsidiaries and affiliates	(2,250		)	—			—			—			(2,250		)
Gross proceeds from sale of property, plant and equipment and other assets	304			608			428			—			1,340
Proceeds from insurance settlements	—			—			3,301			—			3,301
Net cash used in investing activities	(20,678		)	(19,081		)	(20,142		)	—			(59,901		)
Cash flows from financing activities:
Proceeds for long-term debt	—			—			8,649			—			8,649
Payments on long-term debt	(1,522		)	—			(7,743		)	—			(9,265		)
Borrowings from revolving facilities	47,000			—			—			—			47,000
Payments on revolving facilities	(47,000		)	—			(5,327		)	—			(52,327		)
Net cash overdraft financing	—			—			(1,077		)	—			(1,077		)
Deferred loan costs	(1,135		)	—			—			—			(1,135		)
Issuances of common stock	22			—			—			—			22
Minimum withholding taxes paid on stock awards	(1,981		)	—			(14		)	—			(1,995		)
Distributions to noncontrolling interests	—			—			(433		)	—			(433		)
Net cash used in financing activities	(4,616		)	—			(5,945		)	—			(10,561		)
Effect of exchange rate changes on cash	—			—			309			—			309
Net increase/(decrease) in cash and cash equivalents	22			(3,206		)	27,500			—			24,316
Cash and cash equivalents at beginning of year	1,470			5,754			107,340			—			114,564
Cash and cash equivalents at end of year	$	1,492		$	2,548		$	134,840		$	—		$	138,880

Condensed Consolidating Statements of Cash Flows

For the three months ended April 2, 2016

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income/(loss)	$	2,663		$	18,841		$	10,130		$	(28,971	)	$	2,663
Earnings in investments in subsidiaries	(28,971		)	—			—			28,971			—
Other operating cash flows	34,573			(4,953		)	12,760			—			42,380
Net cash provided by operating activities	8,265			13,888			22,890			—			45,043
Cash flows from investing activities:
Capital expenditures	(11,065		)	(21,764		)	(20,546		)	—			(53,375		)
Acquisitions	—			—			(8,511		)	—			(8,511		)
Note receivable from affiliates	—			—			(5,963		)	5,963			—
Gross proceeds from sale of property, plant and equipment and other assets	945			—			479			—			1,424
Proceeds from insurance settlements	—			—			1,181			—			1,181
Net cash used in investing activities	(10,120		)	(21,764		)	(33,360		)	5,963			(59,281		)
Cash flows from financing activities:
Proceeds for long-term debt	—			—			8,760			—			8,760
Payments on long-term debt	(5,291		)	—			(10,916		)	—			(16,207		)
Borrowings from revolving credit facility	33,000			—			—			—			33,000
Payments on revolving credit facility	(21,000		)	—			—			—			(21,000		)
Borrowings from affiliates	—			5,963			—			(5,963		)	—
Issuances of common stock	45			—			—			—			45
Repurchase of treasury stock	(5,000		)	—			—			—			(5,000		)
Minimum withholding taxes paid on stock awards	(1,663		)	—			(125		)	—			(1,788		)
Excess tax benefits from stock-based compensation	(446		)	—			—			—			(446		)
Net cash used in financing activities	(355		)	5,963			(2,281		)	(5,963		)	(2,636		)
Effect of exchange rate changes on cash	—			—			7,316			—			7,316
Net increase/(decrease) in cash and cash equivalents	(2,210		)	(1,913		)	(5,435		)	—			(9,558		)
Cash and cash equivalents at beginning of year	3,443			3,993			149,448			—			156,884
Cash and cash equivalents at end of year	$	1,233		$	2,080		$	144,013		$	—		$	147,326