Guarantor Financial Information (Tables)

9 Months Ended

Sep. 30, 2017

Guarantor Financial Information [Abstract]

Guarantor Financial Information Condensed Consolidating Balance Sheet

Condensed Consolidated Balance Sheet

As of September 30, 2017

(in thousands)

	Parent		Guarantors		Non-guarantors		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	1,258	$	2,694	$	106,194	$	—		$	110,146
Restricted cash	103		—		179		—			282
Accounts receivable	35,722		242,553		386,776		(250,104		)	414,947
Inventories	17,755		90,993		266,350		—			375,098
Income taxes refundable	1,914		—		3,456		—			5,370
Prepaid expenses	14,201		3,147		21,924		—			39,272
Other current assets	5,564		1,280		15,128		(4,871		)	17,101
Total current assets	76,517		340,667		800,007		(254,975		)	962,216
Investment in subsidiaries	4,387,119		1,152,677		849,848		(6,389,644		)	—
Property, plant and equipment, net	265,365		506,393		850,109		—			1,621,867
Intangible assets, net	18,068		267,541		412,299		—			697,908
Goodwill	21,860		551,837		724,569		—			1,298,266
Investment in unconsolidated subsidiaries	4,936		—		285,092		—			290,028
Other assets	32,574		329,178		185,603		(500,337		)	47,018
Deferred taxes	—		—		17,219		—			17,219
	$	4,806,439	$	3,148,293	$	4,124,746	$	(7,144,956	)	$	4,934,522
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	$	116	$	—	$	22,970	$	(4,871	)	$	18,215
Accounts payable	253,921		31,824		163,082		(235,235		)	213,592
Income taxes payable	5,853		373		15,748		—			21,974
Accrued expenses	87,159		28,478		191,715		(14,869		)	292,483
Total current liabilities	347,049		60,675		393,515		(254,975		)	546,264
Long-term debt, net of current portion	1,068,926		—		1,165,587		(500,337		)	1,734,176
Other noncurrent liabilities	58,400		—		37,954		—			96,354
Deferred income taxes	136,430		—		216,611		—			353,041
Total liabilities	1,610,805		60,675		1,813,667		(755,312		)	2,729,835
Total stockholders’ equity	3,195,634		3,087,618		2,311,079		(6,389,644		)	2,204,687
	$	4,806,439	$	3,148,293	$	4,124,746	$	(7,144,956	)	$	4,934,522

Condensed Consolidated 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 Consolidated Statements of Operations

For the three months ended September 30, 2017

(in thousands)

	Parent			Guarantors		Non-guarantors			Eliminations			Consolidated
Net sales	$	135,001		$	378,088	$	489,003		$	(64,411	)	$	937,681
Cost and expenses:
Cost of sales and operating expenses	103,591			315,847		389,001			(64,411		)	744,028
Selling, general and administrative expenses	37,154			14,031		31,956			—			83,141
Depreciation and amortization	10,485			26,949		39,768			—			77,202
Total costs and expenses	151,230			356,827		460,725			(64,411		)	904,371
Operating income/(loss)	(16,229		)	21,261		28,278			—			33,310
Interest expense	(14,076		)	4,009		(12,464		)	—			(22,531		)
Foreign currency gains/(losses)	(32		)	320		(2,343		)	—			(2,055		)
Other income/(expense), net	(4,305		)	1,555		1,303			—			(1,447		)
Equity in net income/(loss) of unconsolidated subsidiaries	(487		)	—		8,190			—			7,703
Earnings in investments in subsidiaries	27,810			—		—			(27,810		)	—
Income/(loss) before taxes	(7,319		)	27,145		22,964			(27,810		)	14,980
Income taxes (benefit)	(15,080		)	11,782		9,594			—			6,296
Net income attributable to noncontrolling interests	—			—		(923		)	—			(923		)
Net income/(loss) attributable to Darling	$	7,761		$	15,363	$	12,447		$	(27,810	)	$	7,761

Condensed Consolidated Statements of Operations

For the nine months ended September 30, 2017

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	407,054		$	1,098,112		$	1,389,974		$	(181,039	)	$	2,714,101
Cost and expenses:
Cost of sales and operating expenses	321,231			899,129			1,095,098			(181,039		)	2,134,419
Selling, general and administrative expenses	112,921			41,559			102,109			—			256,589
Depreciation and amortization	30,750			78,261			112,295			—			221,306
Total costs and expenses	464,902			1,018,949			1,309,502			(181,039		)	2,612,314
Operating income/(loss)	(57,848		)	79,163			80,472			—			101,787
Interest expense	(41,909		)	12,000			(36,748		)	—			(66,657		)
Foreign currency gains/(losses)	(216		)	500			(4,714		)	—			(4,430		)
Other income/(expense), net	(10,643		)	(3		)	5,543			—			(5,103		)
Equity in net income/(loss) of unconsolidated subsidiaries	(1,253		)	—			17,922			—			16,669
Earnings in investments in subsidiaries	92,641			—			—			(92,641		)	—
Income/(loss) before taxes	(19,228		)	91,660			62,475			(92,641		)	42,266
Income taxes (benefit)	(41,967		)	34,386			23,437			—			15,856
Net income attributable to noncontrolling interests	—			—			(3,671		)	—			(3,671		)
Net income/(loss) attributable to Darling	$	22,739		$	57,274		$	35,367		$	(92,641	)	$	22,739

Condensed Consolidated Statements of Operations

For the three months ended October 1, 2016

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	130,063		$	347,384		$	433,523		$	(57,114	)	$	853,856
Cost and expenses:
Cost of sales and operating expenses	99,705			286,919			341,657			(57,114		)	671,167
Selling, general and administrative expenses	29,987			13,421			33,100			—			76,508
Acquisition and integration costs	—			—			—			—			—
Depreciation and amortization	9,622			24,813			36,218			—			70,653
Total costs and expenses	139,314			325,153			410,975			(57,114		)	818,328
Operating income/(loss)	(9,251		)	22,231			22,548			—			35,528
Interest expense	(15,382		)	4,437			(12,922		)	—			(23,867		)
Foreign currency gains/(losses)	(11		)	(152		)	517			—			354
Other income/(expense), net	(3,439		)	258			1,174			—			(2,007		)
Equity in net income/(loss) of unconsolidated subsidiaries	(362		)	—			18,500			—			18,138
Earnings in investments in subsidiaries	60,952			—			—			(60,952		)	—
Income/(loss) before taxes	32,507			26,774			29,817			(60,952		)	28,146
Income taxes	3,813			(3,140		)	(1,417		)	—			(744		)
Net income attributable to noncontrolling interests	—			—			(196		)	—			(196		)
Net income/(loss) attributable to Darling	$	28,694		$	29,914		$	31,038		$	(60,952	)	$	28,694

Condensed Consolidated Statements of Operations

For the nine months ended October 1, 2016

(in thousands)

	Parent			Guarantors		Non-guarantors			Eliminations			Consolidated
Net sales	$	367,811		$	994,028	$	1,297,393		$	(148,394	)	$	2,510,838
Cost and expenses:
Cost of sales and operating expenses	288,976			796,001		1,010,592			(148,394		)	1,947,175
Selling, general and administrative expenses	100,449			38,018		95,668			—			234,135
Acquisition costs	—			—		401			—			401
Depreciation and amortization	30,459			75,723		106,258			—			212,440
Total costs and expenses	419,884			909,742		1,212,919			(148,394		)	2,394,151
Operating income/(loss)	(52,073		)	84,286		84,474			—			116,687
Interest expense	(46,242		)	13,391		(38,897		)	—			(71,748		)
Foreign currency gains/(losses)	32			36		(2,309		)	—			(2,241		)
Other income/(expense), net	(10,429		)	380		4,364			—			(5,685		)
Equity in net income/(loss) of unconsolidated subsidiaries	(814		)	—		38,447			—			37,633
Earnings in investments in subsidiaries	157,943			—		—			(157,943		)	—
Income/(loss) before taxes	48,417			98,093		86,079			(157,943		)	74,646
Income taxes (benefit)	(13,355		)	11,961		10,496			—			9,102
Net income attributable to noncontrolling interests	—			—		(3,772		)	—			(3,772		)
Net income/(loss) attributable to Darling	$	61,772		$	86,132	$	71,811		$	(157,943	)	$	61,772

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

Condensed Consolidated Statements of Comprehensive Income/(Loss)

For the three months ended September 30, 2017

(in thousands)

	Parent		Guarantors		Non-guarantors		Eliminations			Consolidated
Net income/(loss)	$	8,684	$	15,363	$	12,447	$	(27,810	)	$	8,684
Other comprehensive income/(loss), net of tax:
Foreign currency translation	—		—		46,211		—			46,211
Pension adjustments	641		—		118		—			759
Natural gas swap derivative adjustments	22		—		—		—			22
Corn option derivative adjustments	850		—		—		—			850
Total other comprehensive income/(loss), net of tax	1,513		—		46,329		—			47,842
Total comprehensive income/(loss)	10,197		15,363		58,776		(27,810		)	56,526
Total comprehensive loss attributable to noncontrolling interest	—		—		109		—			109
Total comprehensive income/(loss) attributable to Darling	$	10,197	$	15,363	$	58,667	$	(27,810	)	$	56,417

Condensed Consolidated Statements of Comprehensive Income/(Loss)

For the nine months ended September 30, 2017

(in thousands)

	Parent			Guarantors		Non-guarantors			Eliminations			Consolidated
Net income/(loss)	$	26,410		$	57,274	$	35,367		$	(92,641	)	$	26,410
Other comprehensive income/ (loss), net of tax:
Foreign currency translation	—			—		111,002			—			111,002
Pension adjustments	1,923			—		355			—			2,278
Natural gas swap derivative adjustments	22			—		—			—			22
Corn option derivative adjustments	(1,121		)	—		—			—			(1,121		)
Total other comprehensive income, net of tax	824			—		111,357			—			112,181
Total comprehensive income/(loss)	27,234			57,274		146,724			(92,641		)	138,591
Total comprehensive loss attributable to noncontrolling interest	—			—		(62		)	—			(62		)
Total comprehensive income/(loss) attributable to Darling	$	27,234		$	57,274	$	146,786		$	(92,641	)	$	138,653

Condensed Consolidated Statements of Comprehensive Income/(Loss)

For the three months ended October 1, 2016

(in thousands)

	Parent		Guarantors		Non-guarantors			Eliminations			Consolidated
Net income/(loss)	$	28,890	$	29,914	$	31,038		$	(60,952	)	$	28,890
Other comprehensive income/(loss), net of tax:
Foreign currency translation	—		—		(5,839		)	—			(5,839		)
Pension adjustments	659		—		68			—			727
Corn option derivative adjustments	734		—		—			—			734
Total other comprehensive income/(loss), net of tax	1,393		—		(5,771		)	—			(4,378		)
Total comprehensive income/(loss)	30,283		29,914		25,267			(60,952		)	24,512
Total comprehensive income attributable to noncontrolling interest	—		—		(94		)	—			(94		)
Total comprehensive income/(loss) attributable to Darling	$	30,283	$	29,914	$	25,361		$	(60,952	)	$	24,606

Condensed Consolidated Statements of Comprehensive Income/(Loss)

For the nine months ended October 1, 2016

(in thousands)

	Parent		Guarantors			Non-guarantors		Eliminations			Consolidated
Net income/(loss)	$	65,544	$	86,132		$	71,811	$	(157,943	)	$	65,544
Other comprehensive income/(loss), net of tax:
Foreign currency translation	—		—			43,684		—			43,684
Pension adjustments	1,975		(75		)	204		—			2,104
Corn option derivative adjustments	1,255		—			—		—			1,255
Total other comprehensive income, net of tax	3,230		(75		)	43,888		—			47,043
Total comprehensive income/(loss)	68,774		86,057			115,699		(157,943		)	112,587
Total comprehensive income attributable to noncontrolling interest	—		—			1,211		—			1,211
Total comprehensive income/(loss) attributable to Darling	$	68,774	$	86,057		$	114,488	$	(157,943	)	$	111,376

Guarantor Financial Information Condensed Consolidating Statements Of Cash Flows

Condensed Consolidated Statements of Cash Flows

For the nine months ended September 30, 2017

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income/(loss)	$	26,410		$	57,274		$	35,367		$	(92,641	)	$	26,410
Earnings in investments in subsidiaries	(92,641		)	—			—			92,641			—
Other operating cash flows	188,304			(59,113		)	113,181			—			242,372
Net cash provided by operating activities	122,073			(1,839		)	148,548			—			268,782
Cash flows from investing activities:
Capital expenditures	(63,746		)	(57,388		)	(75,312		)	—			(196,446		)
Acquisitions	—			(12,144		)	—			—			(12,144		)
Investment in subsidiaries and affiliates	(4,750		)	—			—			—			(4,750		)
Note receivable from affiliates	—			67,000			(67,000		)	—			—
Gross proceeds from sale of property, plant and equipment and other assets	2,309			1,311			1,333			—			4,953
Proceeds from insurance settlements	—			—			3,301			—			3,301
Payments related to routes and other intangibles	(5,635		)	—			—			—			(5,635		)
Net cash used in investing activities	(71,822		)	(1,221		)	(137,678		)	—			(210,721		)
Cash flows from financing activities:
Proceeds for long-term debt	—			—			24,069			—			24,069
Payments on long-term debt	(47,182		)	—			(47,068		)	—			(94,250		)
Borrowings from revolving facilities	142,000			—			—			—			142,000
Payments on revolving facilities	(142,000		)	—			(5,327		)	—			(147,327		)
Net cash overdraft financing	—			—			2,590			—			2,590
Deferred loan costs	(1,177		)	—			—			—			(1,177		)
Issuances of common stock	22			—			—			—			22
Minimum withholding taxes paid on stock awards	(2,126		)	—			(14		)	—			(2,140		)
Acquisition of noncontrolling interest	—			—			(429		)	—			(429		)
Distributions to noncontrolling interests	—			—			(2,513		)	—			(2,513		)
Net cash used in financing activities	(50,463		)	—			(28,692		)	—			(79,155		)
Effect of exchange rate changes on cash	—			—			16,676			—			16,676
Net increase/(decrease) in cash and cash equivalents	(212		)	(3,060		)	(1,146		)	—			(4,418		)
Cash and cash equivalents at beginning of year	1,470			5,754			107,340			—			114,564
Cash and cash equivalents at end of year	$	1,258		$	2,694		$	106,194		$	—		$	110,146

Condensed Consolidated Statements of Cash Flows

For the nine months ended October 1, 2016

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income/(loss)	$	65,544		$	86,132		$	71,811		$	(157,943	)	$	65,544
Earnings in investments in subsidiaries	(157,943		)	—			—			157,943			—
Other operating cash flows	215,375			(74,110		)	73,753			—			215,018
Net cash provided by operating activities	122,976			12,022			145,564			—			280,562
Cash flows from investing activities:
Capital expenditures	(33,431		)	(68,145		)	(66,648		)	—			(168,224		)
Acquisitions	—			—			(8,511		)	—			(8,511		)
Note receivable from affiliates	—			53,056			(53,056		)	—			—
Gross proceeds from sale of property, plant and equipment and other assets	2,375			816			1,301			—			4,492
Proceeds from insurance settlements	—			—			1,537			—			1,537
Net cash used in investing activities	(31,056		)	(14,273		)	(125,377		)	—			(170,706		)
Cash flows from financing activities:
Proceeds for long-term debt	—			—			28,765			—			28,765
Payments on long-term debt	(87,411		)	—			(40,953		)	—			(128,364		)
Borrowings from revolving credit facility	83,000			—			—			—			83,000
Payments on revolving credit facility	(83,000		)	—			(10,028		)	—			(93,028		)
Issuances of common stock	143			—			—			—			143
Repurchase of treasury stock	(5,000		)	—			—			—			(5,000		)
Minimum withholding taxes paid on stock awards	(1,718		)	—			(125		)	—			(1,843		)
Distributions to noncontolling interests	—			—			(885		)	—			(885		)
Net cash used in financing activities	(93,986		)	—			(23,226		)	—			(117,212		)
Effect of exchange rate changes on cash	—			—			(943		)	—			(943		)
Net increase/(decrease) in cash and cash equivalents	(2,066		)	(2,251		)	(3,982		)	—			(8,299		)
Cash and cash equivalents at beginning of year	3,443			3,993			149,448			—			156,884
Cash and cash equivalents at end of year	$	1,377		$	1,742		$	145,466		$	—		$	148,585