10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC  20549

FORM 10-K

 (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 30, 2017

OR

/  /  TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

  For the transition period from _______ to _______

Commission File Number   001-13323

DARLING INGREDIENTS INC.

(Exact name of registrant as specified in its charter)

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)

Registrant's telephone number, including area code:  (972) 717-0300

  Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Name of Exchange on Which Registered
Common Stock $0.01 par value per share	New York Stock Exchange (“NYSE”)

Securities registered pursuant to Section 12(g) of the Act:  None

 Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes    X        No ____

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes     No   X  

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.       Yes    X         No ____

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).        Yes    X        No ___

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of the Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.    

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Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	X		Accelerated filer
Non-accelerated filer		(Do not check if a smaller reporting company)	Smaller reporting company
			Emerging growth company
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period
period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of Exchange
Act.

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes       No  X  

As of the last day of the Registrant's most recently completed second fiscal quarter, the aggregate market value of the shares of common stock held by nonaffiliates of the Registrant was approximately $2,558,227,000 based upon the closing price of the common stock as reported on the NYSE on that day. (In determining the market value of the Registrant’s common stock held by non-affiliates, shares of common stock beneficially owned by directors, officers and holders of more than 10% of the Registrant’s common stock have been excluded.  This determination of affiliate status is not necessarily a conclusive determination for other purposes.)

There were 164,676,070 shares of common stock, $0.01 par value, outstanding at February 21, 2018.

DOCUMENTS INCORPORATED BY REFERENCE

Selected designated portions of the Registrant's definitive Proxy Statement in connection with the Registrant’s 2018 Annual Meeting of stockholders are incorporated by reference into Part III of this Annual Report.

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DARLING INGREDIENTS INC. AND SUBSIDIARIES

FORM 10-K FOR THE FISCAL YEAR ENDED DECEMBER 30, 2017

TABLE OF CONTENTS

		Page No.
	PART I
Item 1.	BUSINESS	4
Item 1A.	RISK FACTORS	16
Item 1B.	UNRESOLVED STAFF COMMENTS	36
Item 2.	PROPERTIES	36
Item 3.	LEGAL PROCEEDINGS	38
Item 4.	MINE SAFETY DISCLOSURES	39
	PART II
Item 5.	MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	40
Item 6.	SELECTED FINANCIAL DATA	42
Item 7.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	44
Item 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK	66
Item 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	68
Item 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	126
Item 9A.	CONTROLS AND PROCEDURES	126
Item 9B.	OTHER INFORMATION	127
	PART III
Item 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	128
Item 11.	EXECUTIVE COMPENSATION	128
Item 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	128
Item 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	129
Item 14.	PRINCIPAL ACCOUNTING FEES AND SERVICES	129
	PART IV
Item 15.	EXHIBITS, FINANCIAL STATEMENT SCHEDULES	130
	SIGNATURES	135

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PART I

ITEM 1. BUSINESS

GENERAL

Founded by the Swift meat packing interests and the Darling family in 1882, Darling Ingredients Inc. (“Darling”, and together with its subsidiaries, the “Company” or “we,” “us” or “our”) was incorporated in Delaware in 1962 under the name “Darling-Delaware Company, Inc.”  Darling changed its name from “Darling-Delaware Company, Inc.” to “Darling International Inc.” on December 28, 1993, and from “Darling International Inc.” to “Darling Ingredients Inc.” on May 6, 2014. The address of Darling's principal executive office is 251 O'Connor Ridge Boulevard, Suite 300, Irving, Texas, 75038, and its telephone number at this address is (972) 717-0300.

OVERVIEW

We are 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. With operations on five continents, the Company collects and transforms all aspects of animal by-product streams into useable and specialty ingredients, such as gelatin, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstocks, green energy, natural casings and hides. The Company also recovers and converts recycled oils (used cooking oil and animal fats) into valuable feed and fuel ingredients, and collects and processes residual bakery products into feed ingredients. In addition, the Company provides environmental services, such as grease trap collection and disposal services to food service establishments and disposal services for waste solids from the wastewater treatment systems of industrial food processing plants. In fiscal 2017, the Company generated $3.7 billion in revenues and $128.5 million in net income attributable to Darling.

North America

We are a leading provider of animal by-product processing, used cooking oil and bakery residual recycling and recovery solutions to the U.S. food industry. We operate over 130 processing and transfer facilities in the United States to produce finished products such as protein (primarily meat and bone meal (“MBM”) and poultry meal (“PM”)), meat products for the pet food industry, blood products (plasma and whole blood), gelatin, fats (primarily bleachable fancy tallow (“BFT”), poultry grease (“PG”) and yellow grease (“YG”)), bakery by-products (“BBP”) and hides, as well as a range of branded and value-added products. Darling sells these products in North America and throughout the world, primarily to producers of animal feed, pet food, biodiesel, fertilizer and other consumer and industrial ingredients, including oleo-chemicals, soaps and leather goods, for use as ingredients in their products or for further processing. In the United States Darling operates a biodiesel facility and is a partner with Valero Energy Corporation in Diamond Green Diesel, a renewable diesel facility, both of which convert used cooking oils into valuable biofuel products. In Canada, the Company operates under the name Rothsay, which is a leading recycler of animal by-products and producer of biodiesel. Rothsay processes raw materials into finished fat and protein products for use in animal feed, pet food, biodiesel, fertilizer and other ingredients and manufactures biodiesel for domestic and international markets. Rothsay has a network of five rendering plants in Manitoba, Ontario and Nova Scotia and a biodiesel operation in Quebec.

Europe, China, Australia and South America

Darling Ingredients International, our subsidiary, is a worldwide leader in the development and production of specialty ingredients from animal by-products for applications in animal feed, pet food, fuel, bioenergy, fertilizer, food and pharmaceuticals. Darling Ingredients International operates a global network of 63 production facilities across five continents covering all aspects of animal by-product processing through five brands: Rendac (fuel), Sonac (proteins, fats, edible fats and blood products), Ecoson (bioenergy and fertilizer), Rousselot (gelatin and hydrolyzed collagen) and CTH (natural casings). Darling Ingredients International's specialized portfolio of over 330 products covers all animal origin raw material types and thereby offers a comprehensive, single source solution for suppliers. Darling Ingredients International’s rendering and specialties business has leading positions across Europe and China with European operations in the Netherlands, Belgium, Germany, Poland and Italy under the Ecoson, Rendac and Sonac brand names. Value-added products include edible fats, blood products, bone products, protein meals and fats. Rousselot is a global leading market provider of gelatin for the food, pharmaceutical and technical industries with operations in Europe, the United States, South America and China. CTH is a leading natural casings company for the sausage industry with operations in Europe, China and the United States.

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Operating Segments

The Company's business operates within three reportable operating segments: Feed Ingredients, Food Ingredients and Fuel Ingredients.

The Feed Ingredients operating segment includes the Company's global activities related to (i) the collection and processing of beef, poultry and pork animal by-products in North America and Europe into non-food grade oils and protein meals, (ii) the collection and processing of bakery residuals in North America into Cookie Meal®, which is predominantly used in poultry and swine rations, (iii) the collection and processing of used cooking oil in North America into non-food grade fats, (iv) the collection and processing of porcine and bovine blood in China, Europe, North America and Australia into blood plasma powder and hemoglobin, (v) the processing of selected portions of slaughtered animals into a variety of meat products for use in pet food, (vi) the processing of cattle hides and hog skins in North America and cattle hides in Europe, (vii) the production of organic fertilizers using protein produced from the Company’s animal by-products processing activities in North America and Europe, and (viii) the provision of grease trap services to food service establishments and environmental services to food processors in North America. Non-food grade oils and fats produced and marketed by the Company are principally sold to third parties to be used as ingredients in animal feed and pet food, as an ingredient for the production of biodiesel and renewable diesel, or to the oleo-chemical industry to be used as an ingredient in a wide variety of industrial applications. Protein meals, blood plasma powder and hemoglobin produced and marketed by the Company are sold to third parties to be used as ingredients in animal feed, pet food and aquaculture.

The Food Ingredients operating segment includes the Company's global activities related to (i) the purchase and processing of beef and pork bone chips, beef hides, pig skins, and fish skins into gelatin and hydrolyzed collagen in Europe, China, South America and North America, (ii) the collection and processing of porcine and bovine intestines into natural casings in Europe, China and North America, (iii) the extraction and processing of porcine mucosa into crude heparin in Europe, (iv) the collection and refining of animal fat into food grade fat in Europe, and (v) the processing of bones to bone chips for the gelatin industry and bone ash. Gelatins and collagens produced and marketed by the Company are sold to third parties to be used as ingredients in the pharmaceutical, nutriceutical, food, pet food, and technical (e.g., photographic) industries. Natural casings produced and marketed by the Company are sold to third parties to be used as an ingredient in the production of sausages and other similar food products.

The Fuel Ingredients operating segment includes the Company's global activities related to (i) the conversion of animal fats and recycled greases into biodiesel in North America, (ii) the conversion of organic sludge and food waste into biogas in Europe, (iii) the collection and conversion of fallen stock and certain animal by-products pursuant to applicable E.U. regulations into low-grade energy sources to be used in industrial applications, (iv) the processing of manure into natural bio-phosphate in Europe, and (v) the Company’s share of the results of its equity investment in Diamond Green Diesel Holdings LLC, a joint venture with Valero Energy Corporation (“Valero”) to convert animal fats, recycled greases, used cooking oil, inedible corn oil, soybean oil, or other feedstocks that become economically and commercially viable into renewable diesel (the “DGD Joint Venture”) as described in Note 7 to the Company's Consolidated Financial Statement for the period ended December 30, 2017 included herein.

For financial information about our operating segments and geographic areas, refer to Note 20 to the Company's Consolidated Financial Statements for the period ended December 30, 2017 included herein.

Fiscal 2017 Net External Sales

Darling’s net external salesfrom fiscal 2017 continuing operations by operating segment were as follows (in thousands):

	Fiscal 2017				Fiscal 2016				Fiscal 2015
Net sales:
Feed Ingredients	$	2,239,492	61.1	%	$	2,089,145	61.6	%	$	2,074,333	61.2	%
Food Ingredients	1,156,976		31.6		1,055,725		31.1		1,088,727		32.1
Fuel Ingredients	265,783		7.3		247,058		7.3		228,195		6.7
Total	$	3,662,251	100.0	%	$	3,391,928	100.0	%	$	3,391,255	100.0	%

OPERATIONS

Feed Ingredients Segment

Our Feed Ingredients segment consists principally of (i) our U.S. ingredients business, including our fats and proteins, used cooking oil, trap grease and food residuals collection businesses, the Rothsay ingredients business, and the ingredients and

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specialty products businesses conducted by Darling Ingredients International under the Sonac name (proteins, fats and plasma products) and (ii) our bakery residuals business.

Animal By-Products

North American Operations

Raw materials: The Company's North American animal by-products operations collect beef, poultry and pork by-products, which are collected primarily from slaughterhouses, grocery stores, butcher shops and food service establishments. These raw materials are collected in one of two manners.  Certain large suppliers, such as large slaughterhouses, are furnished with bulk containers in which the raw material is loaded.  We provide the remaining suppliers, primarily grocery stores and butcher shops, with containers in which to deposit the raw material.  The containers are picked up by, or emptied into, the Company’s trucks on a periodic basis.  The type and frequency of service is determined by individual supplier requirements, the volume of raw material generated by the supplier, supplier location and weather, among other factors. The raw materials we collect are transported either directly to a processing plant or to a transfer station where materials from several collection routes are loaded into trailers and transported to a processing plant.  These raw materials are delivered to plants for processing usually within 24 hours of collection to deter spoilage.

In North America, we also collect used cooking oil from and service grease traps at restaurants, food service establishments and grocery stores. Used cooking oil is heated, settled, and purified for use as an animal feed additive or is further processed into biodiesel. Products derived from used cooking oil include YG, biodiesel, and Fat for Fuel®, which uses grease as a fuel source for industrial boilers and dryers. Many of our customers operate stores that are part of national chains. Used cooking oil from food service establishments is placed in various sizes and types of containers that we supply. In some instances, these containers are unloaded directly onto our trucks, while in other instances used cooking oil is pumped through a vacuum hose into the truck.  We provide several types of containers, for used cooking oil collection to food service establishments, which are proprietary self-contained collection systems that are housed either inside or outside the establishment, with the used cooking oil pumped directly into collection vehicles via an outside valve. The frequency of all forms of used cooking oil collection is determined by the volume of oil generated by the food service establishment. We either transport trap grease to waste treatment centers or recycle it at our facilities into a host of environmentally safe product streams. We provide our customers with a comprehensive set of solutions to their trap grease disposal needs, including manifests for regulatory compliance, computerized routing for consistent cleaning and comprehensive trap cleaning. The Company also collects non-hazardous liquid and semi-solid waste streams from the food processing industry and reprocesses and recycles these residuals, primarily by permitted land application to enrich soils in accordance with applicable environmental regulations.

Processing operations: We produce finished products primarily through the grinding, cooking, separating, drying, and blending of various raw materials.  The process starts with the collection of animal by-products, including fat, bones, feathers, offal and other animal by-products.  The animal by-products are ground and heated to evaporate water and separate fats from animal tissue, as well as to sterilize and make the material suitable as an ingredient for animal feed.  The separated fats, tallows and greases are then centrifuged and/or refined for purity.  The remaining solid product is pressed to remove additional oils to create protein meals.  The protein meal is then sifted through screens and ground further if necessary to produce an appropriately sized protein meal. The primary finished products derived from the processing of animal by-products are MBM, PM (both feed grade and pet food), PG, tallow, feather meal and blood meal.  In addition, at certain of our facilities, we are able to operate multiple process lines simultaneously, which provides us with the flexibility and capacity to manufacture a line of premium and value-added products in addition to our principal finished products.  Because of these processing controls, we are able to produce premium products that typically have higher protein and energy content and lower moisture than standard finished products, and such products command premium prices.

International Operations

Darling Ingredients International’s ingredients and specialty products businesses are operated under the Sonac name by our Sonac C3 and Sonac Blood business activities. The Sonac ingredients and specialty products businesses of Darling Ingredients International operate similarly to our North American ingredients division. However, the Sonac businesses, with the exception of Sonac C3, further separate raw material streams to add additional value to each stream.

• 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.

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• 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.

Bakery By-Products

The Company is a leading processor of bakery residuals in the United States.  The bakery by-products division, which operates solely in the United States, collects bakery residual materials and processes the raw materials into BBP, including Cookie Meal®, an animal feed ingredient primarily used in poultry and swine rations.

Raw materials: Bakery by-products are collected from large commercial bakeries that produce a variety of products, including cookies, crackers, cereal, bread, dough, potato chips, pretzels, sweet goods and biscuits.  The Company collects these materials by bulk loading onsite at the bakeries utilizing proprietary equipment, the majority of which is designed, engineered, manufactured and installed by us.  All of the bakery residual that the Company collects is bulk loaded, which we believe represents a significant advantage over competitors that receive a large percentage of raw materials from less efficient, manual methods.  The receipt of bulk-loaded bakery residual allows us to significantly streamline our bakery recycling process, reduce personnel costs, and maximize freight savings by hauling more tons per load.

Processing operations: The highly automated bakery by-products production process involves sorting and separating raw material, mixing it to produce the appropriate nutritional content, drying it to reduce excess moisture, and grinding it to the consistency of animal feed.  During the bakery residual process, packaging materials are removed.  The packaging material is fed into a combustion chamber along with sawdust, and heat is produced.  This heat is used in the dryers to remove moisture from the raw materials that have been partially ground.  Finally, the dried meal is ground to the specified granularity.  The finished product, which is continually tested to ensure that the caloric and nutrient contents meet specifications, is a nutritious additive used in animal feed.

Other Products

Our Feed Ingredients segment also includes the Company’s hides businesses and the organic fertilizer business conducted under the Nature Safe® name.

• 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. 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.

Food Ingredients Segment

Our Food Ingredients segment consists principally of (i) the gelatin and collagen hydrolysates business conducted by Darling Ingredients International under the Rousselot name, (ii) the natural casings and meat by-products business conducted by Darling Ingredients International under the CTH name and (iii) certain specialty products businesses conducted by Darling Ingredients International under the Sonac name.

Gelatin

Rousselot is a global leading market provider of gelatin and hydrolyzed collagen for the food, nutritional pharmaceutical and technical (e.g., photographic) industries with operations in Europe, China, South America and the United States. Rousselot has a network of 12 production plants and 6 sales locations, covering sales into more than 75 countries. With the Rousselot gelatin business, the Company is part of the growing global gelatin market. Gelatin is a functional ingredient, which means that it has a role in the end product by adding a critical property to it that is largely non-substitutable. Gelatin is used in a large variety of end products, but only small amounts are used in most products. Currently, available substitutes are limited and do not have the broad functionality required for most usages. Rousselot gelatin products have higher sales prices relative to the Company’s other end products, but comprise a minimal portion of the cost of final products in many segments, for example the pharmaceutical end

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markets. We believe many end customers focus on gelatin quality and consistency, supply reliability, application know-how and regulatory support and are therefore relatively less price sensitive to gelatin products. Rousselot’s profitability is mainly driven by its ability to timely transfer increases in net raw materials costs to its customers in order to realize a relatively stable added value per kilogram of gelatin, in combination with a strong focus on operations excellence and product quality. Rousselot is involved in all four types of gelatin (pigskin, hide, bone and fish). Raw material prices are mainly driven by the availability and quality of raw material, and sales prices are mainly driven by market demand and the expected availability of gelatin supply. As such, securing sufficient raw material positions is key to the business. Rousselot enters into formal arrangements related to raw material purchases that differ by raw material type, by duration and by regional area. Rousselot markets its hydrolyzed collagen under the “Peptan” brand; this fast-growing specialty ingredient is positioned specifically towards nutritional supplement customers focusing on improved bone, joint and skin health.

Natural Casings and Meat By-Products

The CTH business of Darling Ingredients International is a leading natural casings company for the sausage business with operations in Europe, China and the United States. The activities of this business are divided into two categories:

• 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 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.

Other Specialty Products

In addition, our Food Ingredients segment includes the Sonac bone, heparin and edible fat businesses currently operated by Darling Ingredients International under the Sonac name:

• 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 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.

Fuel Ingredients Segment

Our Fuel Ingredients segment consists of (i) our 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) our investment in the DGD Joint Venture.

Biofuel

We produce biodiesel at our facilities in the United States and Canada. In the United States, we use a portion of our rendered animal fats and recycled cooking oils, as well as third-party additives, to produce Bio G-3000™ Premium Diesel Fuel. We have the annual capacity to produce approximately two million gallons of Bio G-3000™ at our facility in Butler, Kentucky. Our facility in Sainte-Catherine, Quebec also processes tallow and recycled cooking oils produced by us into biodiesel. The Rothsay Quebec facility has a current annual capacity to produce approximately 14 million gallons a year. Our biodiesel product is sold to our internal divisions, as well as to commercial biodiesel producers in the United States and Canada, to be used as biodiesel fuel, a clean burning additive for diesel fuel, or as a biodegradable solvent or cleaning agent.

Bioenergy

In Europe, Ecoson produces green power from biogas production out of organic sludge and food waste for combined heat plant installations.  Ecoson is the largest industrial digestion operation in the Netherlands, with an output matching the annual use of energy needs of approximately 12,400 households. In addition Ecoson's fat refinery produces refined fats and fatty acids. In fiscal 2014, Ecoson commenced the processing of manure into natural biophosphate for use as fertilizer and green gas.

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Rendac collects fallen stock and animal waste, also referred to as Category 1 and Category 2 material under applicable E.U. regulations, from farmers and slaughterhouses, and processes these materials into fats and meals, which can only be used as a low grade source of energy or fuel for boilers and cement kilns. With a specialized collection fleet of approximately 300 trucks, Rendac collects raw materials in the Netherlands, Germany, Luxembourg and Belgium. This business is a market leader in the countries of Belgium, Netherlands and Luxembourg (the "Benelux region") and certain parts of Germany, a predominantly regulated market with spare capacity requirements and long-term contracts with local governments. The market for the collection and processing of fallen stock in these regions is regulated, and government contracts provide for exclusivity of the service to the contracted partner.

Diamond Green Diesel

The DGD Joint Venture commenced operations in June 2013. The DGD Joint Venture operates a renewable diesel plant (the “DGD Facility”) located in Norco, Louisiana capable of processing approximately 12,000 barrels per day of input feedstock to produce renewable diesel fuel and certain other co-products. We account for the DGD Joint Venture as an “investment in unconsolidated subsidiary.” The DGD Joint Venture operates the DGD Facility, which converts animal fats and used cooking oils, which are supplied in part by us, and other feedstocks that become economically and commercially viable, such as inedible corn oil and soybean oil, into renewable diesel. The DGD Facility uses an advanced hydroprocessing-isomerization process licensed from UOP LLC, known as the Ecofining™ Process, and a pretreatment process developed by the Desmet Ballestra Group designed to convert approximately 1.4 billion pounds per year of feedstocks, into renewable diesel and certain other co-products. The Diamond Green Diesel renewable diesel product is sold to refiners under the Diamond Green Diesel® name to be blended with diesel fuel and is interchangeable with diesel produced from petroleum. For 2016 and 2015, 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 and $156.6 million of blenders tax credits in fiscal 2016 and 2015, respectively, with Darling's portion equaling 50%. Although the blenders tax credits expired on December 31, 2016, in February 2018 they were retroactively reinstated for calendar year 2017. However, to date the blenders tax credits have not been extended and are therefore at risk for calendar year 2018 and into the future. In April 2016, the Company announced the planned expansion of the DGD Facility's annual production capacity from 160 million gallons of renewable diesel to 275 million gallons, with an estimated date of completion of construction and commissioning of the project in the second quarter of 2018. In November 2017, the Company announced that the DGD Joint Venture was initiating an engineering and construction cost review to analyze an additional expansion of the DGD Facility’s annual production capacity to 550 million gallons. A final decision on the incremental 275 million gallons of annual production capacity is expected in 2018 and will be dependent on further engineering and cost estimates, as well as the status of government regulations.

Raw materials pricing and supply contracts

We have two primary pricing arrangements-formula and non-formula arrangements-with our suppliers of poultry, beef, pork, bakery residuals and used cooking oil.  Under a “formula” arrangement, the charge or credit for raw materials is tied to published finished product prices for a competing ingredient after deducting a fixed processing fee.  We also acquire raw material under “non-formula” arrangements whereby suppliers are either paid a fixed price, are not paid, or are charged a collection fee, depending on various economic and competitive factors.   The credit received or amount charged for raw materials under both formula and non-formula arrangements is based on various factors, including the type of raw materials, demand for the raw materials, the expected value of the finished product to be produced, the anticipated yields, the volume of material generated by the supplier and processing and transportation costs. Formula prices are generally adjusted on a weekly, monthly or quarterly basis, while non-formula prices or charges are adjusted as needed to respond to changes in finished product prices or related operating costs. Since most of our raw materials are residual by-products of meat processing and other food production, we are not able to contract with our suppliers to increase supply if demand for our products increases.

A majority of our U.S. North American volume of rendering raw materials, including all of our significant poultry accounts, and substantially all of our bakery feed raw materials are acquired on a “formula basis,” which in most cases is set forth in contracts with our suppliers, generally with multi-year terms. These “formulas” allow us to manage the risk associated with decreases in commodity prices by adjusting our costs of materials based on changes in the price of our finished products, while also permitting us, in certain cases, to benefit from increases in commodity prices. The formulas provided in these contracts are reviewed and modified both during the term of, and in connection with the renewal of, the contracts to maintain an acceptable level of sharing between us and our suppliers of the costs and benefits from movements in commodity prices. A majority of Rothsay’s North American volume of rendering raw materials are acquired based on prices fixed on a quarterly basis with suppliers, with the remaining portion acquired on a “formula basis.” Darling Ingredients International (including North American operations) acquires a majority of its volume of rendering raw materials at spot or quarterly fixed prices. Although Darling Ingredients International, in general, has no long term contracts with its key suppliers, it has procured a series of three-year supply agreements with VION’s foods division (“VION Food”) that become effective in fiscal 2018. In fiscal 2017 VION Food provided approximately 11% of

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Darling Ingredients International’s raw material supply (based on raw materials procured in fiscal 2017). Approximately 84% of Darling's U.S. North American volume of raw materials in fiscal 2017 was acquired on a "formula" basis.

Certain of the Company's geographic regions facilities are highly dependent on one or a few suppliers.  During the 2017 fiscal year, the Company's 10 largest raw materials suppliers in North America accounted for approximately 29% of the total raw material processed by the Company in North America, with one single supplier accounting for approximately 6% of the total raw material processed in North America. In Europe, the Company's 10 largest raw material suppliers accounted for approximately 32% of the total raw material processed by the Company in Europe, with one single supplier accounting for approximately 13% of the total raw material processed in Europe. In China, the Company's 10 largest raw material suppliers accounted for approximately 24% of the total raw material processed by the Company in China, with one single supplier accounting for approximately 4% of the total raw material processed in China. In South America, the Company's 10 largest raw material suppliers accounted for approximately 64% of the total raw material processed by the Company in South America, with one single supplier accounting for approximately 13% of the total raw material processed in South America. See “Risk Factors - A significant percentage of our revenue is attributable to a limited number of suppliers and customers.”  Should any of these suppliers choose alternate methods of disposal, cease or materially decrease their operations, have their operations interrupted by casualty, or otherwise cease using, or reduce the use of, the Company’s collection services, any operating facilities dependent on such suppliers could be materially and adversely affected.  (See “Risk Factors-Certain of our operating facilities are highly dependent upon a single or a few suppliers.”) For a discussion of the Company’s competition for raw materials, see “Competition.”

MARKETING, SALES AND DISTRIBUTION OF FINISHED PRODUCTS

The Company sells its finished products worldwide.  Finished product sales are primarily managed through our commodity trading departments. With respect to our North American operations, we have trading departments located at our corporate headquarters in Irving, Texas and at our regional office in Cold Spring, Kentucky.  We also maintain a sales office in Des Moines, Iowa for the sale and distribution of selected products.  Darling Ingredients International’s finished product sales are managed primarily through trading departments that are located in Son en Breugel, the Netherlands, and through various offices located in Europe, Asia, South America and North America. Where appropriate, we coordinate international sales of common products in order to market them more efficiently. Our sales force is in contact with customers daily and coordinates the sale, and assists in the distribution of, most finished products produced at our processing plants.  The Company also sells its finished products internationally directly to customers or, in some cases, through commodities brokers and agents. We market certain of our finished products under our Dar Pro Ingredients brand, certain specialty products under the Sonac name, gelatin products under the Rousselot name and natural casings and meat by-products under the CTH name. See Note 20 of Notes to Consolidated Financial Statements for a breakdown of the Company’s sales by geographic regions.

The Company sells finished products in North America and throughout the world, primarily to producers of animal feed, pet food, biodiesel, fertilizer and other consumer and industrial products, including oleo-chemicals, soaps and leather goods, for use as ingredients in their products or for further processing.  Certain of our finished products are ingredients that compete with alternatives, such as corn, soybean oil, inedible corn oil, palm oils, soybean meal and heating oil, based on nutritional and functional values; therefore, the actual pricing for those finished products, as well as competing products, can be quite volatile.  While the Company's principal finished products are generally sold at prices prevailing at the time of sale, the Company's ability to deliver large quantities of finished products from multiple locations and to coordinate sales from a central location enables us to sell into the market with the highest return. The Company's premium, value-added and branded products command significantly higher pricing relative to the Company's principal finished product lines due to their enhanced nutritional content, which is a function of the Company's specialized processing techniques. Customers for our premium, value-added and branded products include feed mills, pet food manufacturers, integrated poultry producers, the dairy industry and golf courses.  Feed mills purchase meals, fats, blood products, and Cookie Meal® for use as feed ingredients. Pet food manufacturers require stringent feed safety certifications and consistently demand premium additives that are high in protein and nutritional content.  As a result, pet food manufacturers typically purchase only premium or value-added products under supply contracts with us. Oleo-chemical producers use fats as feedstocks to produce specialty ingredients used in paint, rubber, paper, concrete, plastics and a variety of other consumer and industrial products. Darling Ingredients International’s premium, value-added and branded products also command higher pricing, including with respect to gelatin, natural casings, meat by-products, edible fat, heparin and specialty plasma products.

We obtain payment protection for most of our global export sales by requiring payment before shipment, either through bank letters of credit or cash against documents at the origin of the sale or guarantees of payment from government agencies. For U.S. sales, we are ordinarily paid for products in U.S. dollars and have not experienced any material currency translation losses or any material foreign exchange control difficulties. Darling Ingredients International’s product sales are generally denominated in the local currency. However, in certain markets (such as South America), some product sales are denominated in non-functional currencies, such as U.S. dollars and euros. Darling Ingredients International hedges non-functional currency product sales.

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Our management monitors market conditions and prices for our finished products on a daily basis.  If market conditions or prices were to significantly change, our management would evaluate and implement any measures that it may deem necessary to respond to the change in market conditions.  For larger formula-based pricing suppliers, the indexing of raw material cost to finished product prices effectively establishes the gross margin on finished product sales at a stable level, providing us some protection from finished product price declines.

Finished products produced by the Company are shipped primarily by truck or rail from our plants shortly following production.  While there can be some temporary inventory accumulations at various North American and international locations, particularly port locations for export shipments, with the exception of gelatin and natural casings, inventories rarely exceed three weeks’ production and, therefore, we use limited working capital to carry those inventories. Our limited inventories also reduce our exposure to fluctuations in finished-product prices. With respect to gelatin and natural casings, Darling Ingredients International, in contrast, has historically carried much larger inventories due to the manufacturing process and market dynamics related to those products, which requires a greater amount of working capital to carry these investments. Other factors that influence competition, markets and the prices that we receive for our finished products include the quality of our finished products, consumer health consciousness, worldwide credit conditions, currency fluctuations, tariffs, and government aid and regulations.  From time to time, we enter into arrangements with our suppliers of raw materials pursuant to which these suppliers have the option to buy back our finished products at market prices.

The Company operates a fleet of trucks, trailers and railcars to transport raw materials from suppliers and finished products to customers or ports for transportation by ship.  It also utilizes third party freight companies to cost-effectively transfer materials and augment our in-house logistics fleet.  Within our bakery and international by-products division, except for Rendac, substantially all inbound and outbound freight is handled by third party logistics companies.

COMPETITION

We believe we are the only global ingredients company with products generated principally from animal-origin raw material types; however, we compete with a number of regional and local players in our various sub-segments and end markets.

The procurement of raw materials currently presents greater challenges to our business than the sale of finished products. 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).  At the same time, the number of small meat processors, which have historically been a dependable source of supply for non-captive renderers, such as us, has been decreasing.  In addition, the slaughter rates in the meat processing industry are subject to economic conditions and, as a result, during periods of economic decline, the availability, quantity and quality of raw materials available to the independent renderers decreases.  These factors have been offset, in part, however, by increasing environmental consciousness.  The need for food service establishments in the United States to comply with environmental regulations concerning the proper disposal of used restaurant cooking oil should continue to provide a growth area for this raw material source.  The rendering industry is highly fragmented with a number of local slaughtering operations that provide us with raw materials. In North America, we compete with other rendering, restaurant services and bakery residual businesses, and alternative methods of disposal of animal processing by-products and used restaurant cooking oil provided by trash haulers, waste management companies, biodiesel companies, anaerobic digestion companies and others. In addition, U.S. food service establishments have increasingly experienced theft of used cooking oil.  A number of our competitors for the procurement of raw material are experienced, well-capitalized companies that have significant operating experience and historic supplier relationships.  Competition for available raw materials is based primarily on price and proximity to the supplier.

In marketing our finished products domestically and internationally, we face competition from other processors and from producers of other suitable ingredient alternatives.  However, we differentiate ourselves through the scope and depth of our product portfolio and geographic footprint. While we compete with a number of well capitalized companies across our business, such as Cargill, Inc., Tyson Foods, Inc. and JBS & Company in the U.S. products business, and others in the global gelatin, bone products, and blood products business, we do not have a single competitor that we compete with across all of our products or geographies.

SEASONALITY

Although the amount of raw materials made available to us in each of our segments by our suppliers is relatively stable on a weekly basis, it is impacted by seasonal factors, including holidays, during which the availability of raw materials declines because major meat and poultry processors are not operating, and cold and other severe weather, which can hinder the collection of raw materials.  Warm weather can also adversely affect the quality of raw materials processed and our yields on production because raw material deteriorates more rapidly in warm weather than in cooler weather.  Weather can vary significantly from one

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year to the next and may impact the comparability of our operating results between periods. The amount of bakery residuals we process generally increases during the summer from June to September.  Gelatin sales generally decline in the summer.

INTELLECTUAL PROPERTY

The Company maintains valuable trademarks, service marks, copyrights, trade names, trade secrets, proprietary technologies and similar intellectual property, and considers our intellectual property to be of material value.  We have registered or applied for registration of certain of our intellectual property, including the tricolor triangle used in our signage and logos and the names “Darling,” “Darling Ingredients”, “Griffin Industries,” “Dar Pro Solutions,” “Dar Pro,” “Rousselot,” “Sonac,” “Ecoson,” “Rendac,” “Rothsay,” “Nature Safe,” “CleanStar,” “Peptan,” “Cookie Meal,” and “Bakery Feeds,” and certain patents, both domestically and internationally, relating to the process for preparing nutritional supplements and the drying and processing of raw materials.

EMPLOYEES AND LABOR RELATIONS

As of December 30, 2017, the Company employed globally approximately 9,800 persons full-time. While we have no national or multi-plant union contracts, at December 30, 2017, approximately 23% of the Company's North American employees were covered by multiple collective bargaining agreements. In addition, approximately 41% of Darling Ingredients International's employees are covered by various collective bargaining agreements.  Management believes that our relations with our employees and their representatives are satisfactory.  There can be no assurance, however, that these satisfactory arrangements will continue, or that new agreements will be reached without union action or on terms satisfactory to us.

REGULATIONS

We are subject to the rules and regulations of various federal, state, local and foreign governmental agencies including, but not limited to, the following principal governmental agencies in the following countries:

United States

• 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:

- Animal and Plant Health Inspection Service (“APHIS”) certifies facilities and claims made for exported materials to meet importing country requirements and establishes and enforces import requirements for live animals and animal by-products as well as plant products, and

- Food Safety Inspection Service (“FSIS”) regulates sanitation and biosecurity of our facilities and our food safety programs at plants producing edible fats and meats, among other things.

On January 12, 2004, FSIS issued three interim final rules designed to enhance its BSE safeguards in order to minimize human exposure to BSE infective tissues and assure consumers of the safety of the meat supply.  These

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regulations prohibited non-ambulatory animals from entering the food chain, required removal of specified risk materials at slaughter and prohibited carcasses from cattle tested for BSE from entering the food chain until the animals tested negative for BSE, among other provisions. On July 13, 2007, FSIS published an affirmation of the interim final rules concerning prohibition of specific risk materials and non-ambulatory animals and the use of stunning devices, with several amendments.

On November 19, 2007, APHIS implemented revised import regulations that allowed Canadian cattle 30 months of age and older and born on or after March 1, 1999, and bovine products derived from such cattle to be imported into the United States for any use, if such cattle and products complied with specific FDA and FSIS regulations. Imports of Canadian cattle younger than 30 months of age have been allowed since March 2005. Imports of specialized risk material (“SRM”) from Canadian-born cattle slaughtered in Canada are not permitted. On March 4, 2014, APHIS implemented amended import regulations concerning cattle and bovine products. The final rule established a system for classifying regions as to BSE risk that is consistent with international standards set by the World Organization for Animal Health (“OIE”), and based importation requirements for cattle and beef products on: (i) the inherent risk of BSE infectivity in the commodity to be imported and (ii) the BSE risk status of the region from which the commodity originates.

• 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.

European Union and E.U. Member States

• 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.

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• 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.

Canada

• 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.

China

• 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.

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• 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.

Brazil

• 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.

Argentina

• 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.

Australia

• 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.

Rules and regulations promulgated by these and other agencies may influence our operating results at one or more facilities.

AVAILABLE INFORMATION

Under the Securities Exchange Act of 1934, the Company is required to file annual, quarterly and special reports, proxy statements and other information with the SEC, which can be read and/or copies made at the SEC's Public Reference Room at 100 F Street N.E., Washington D.C. 20549.  Please call the SEC at 1-800-SEC-0330 for further information about the Public

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Reference Room.  The SEC maintains a web site at http://www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.  The Company files electronically with the SEC.

We make available, free of charge, through our investor relations web site, our reports on Forms10-K, 10-Q and 8-K, and amendments to those reports, as well as all other filings with the SEC, as soon as reasonably practicable after such materials are electronically filedwith, or furnished to, the SEC pursuant to Section 13(a) or 15(d) of the Exchange Act.

The Company's website is http://www.darlingii.com and the address for the Company's investor relations web site is http://ir.darlingii.com. Information contained on these websites is not and should not be deemed to be a part of this report or any filing filed with, or furnished to, the SEC by us.

ITEM 1A.   RISK FACTORS

An investment in Darling involves substantial risks. In consultation with your financial, tax and legal advisors, you should carefully consider, among other matters, the following risks described in, as well as the other information contained in or incorporated by reference into, this report. If any of the events described in the following risk factors actually occur, our business, financial condition, prospects or results of operations could be materially adversely affected, the market price of our common stock could decline and you may lose all or part of your investment in the common stock. The risks and uncertainties described below are not the only risks we face. Additional risks and uncertainties that are not currently known or that are currently deemed to be immaterial may also materially and adversely affect our business operations and financial condition or the market price of our common stock. The risks described below also include forward-looking statements and our actual results may differ substantially from those discussed in these forward-looking statements. See the section entitled “Forward-Looking Statements” in this filing.

Risks Related to the Company

The prices of many of our products are subject to significant volatility associated with commodities markets.

Our principal finished products include MBM, PM, BFT, YG, PG, BBP and hides, which are commodities. We also manufacture and sell a number of other products that are derived from animal by-products and many of which are commodities or compete with commodities. The prices of these commodities are quoted on, or derived from prices quoted on, established commodity markets. Accordingly, our results of operations will be affected by fluctuations in the prevailing market prices of these finished products or of other commodities that may be substituted for our products by our customers. Historically, market prices for commodity grains, fats and food stocks have fluctuated in response to a number of factors, including global changes in supply and demand resulting from changes in local and global economic conditions, changes in global government agriculture programs, changes in energy policies of U.S. and foreign governments, changes in international agricultural trading policies, impact of disease outbreaks on protein sources and the potential effect on supply and demand, as well as weather conditions during the growing and harvesting seasons. While we seek to mitigate the risks associated with price declines, including by diversifying our finished products offerings, through the use of formula pricing tied to commodity prices for a substantial portion of our raw materials (which may not protect our margins in periods of rapidly declining prices) and hedging, a significant decrease in the market price of any of our products or of other commodities that may be substituted for our products would have a material adverse effect on our results of operations and cash flow. Furthermore, rapid and material changes in finished goods prices, including competing agricultural-based alternative ingredients, generally have an immediate and, often times, material impact on the Company’s gross margin and profitability resulting from the brief lapse of time between the procurement of the raw materials and the sale of the finished goods.

The prices available for the Company’s Food Ingredients segment’s gelatin, edible fats and natural casings products are influenced by other competing ingredients, including plant-based and synthetic hydrocolloids and artificial casings. In the gelatin operation, in particular, the cost of the Company's animal-based raw material moves in relationship to the selling price of the finished goods. The processing time for the Food Ingredients segment's gelatin and casings is generally 30 to 60 days, which is substantially longer than the Company's Feed Ingredients segment's animal by-products operations. Consequently, the Company’s gross margin and profitability in this segment can be influenced by the movement of finished goods prices from the time the raw materials were procured until the finished goods are sold.

The Company’s Fuel Ingredients segment, which converts fats into renewable diesel, organic sludge and food waste into biogas, and fallen stock into low-grade energy sources is impacted by world energy prices for oil, electricity and natural gas, as well as potential competition from the adoption of non-rendered feedstock in biodiesel markets.

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In addition, increases in the market prices of raw materials would require us to raise prices for our premium, value-added and branded products to avoid margin deterioration. There can be no assurance as to whether we could implement future price increases in response to increases in the market prices of raw materials or how any such price increases would affect future sales volumes to our customers. Our results of operations could be materially and adversely affected in the future by this volatility.

Our business is dependent on the procurement of raw materials, which is the most competitive aspect of our business.

Our management believes that the most competitive aspect of our business is the procurement of raw materials rather than the sale of finished products. Many of our raw materials are derived directly or indirectly from animal by-products, which results in the following challenges:

• 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 United States 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.

The rendering industry is highly fragmented and both the rendering and bakery residual industries are very competitive. We compete with other rendering businesses and alternative methods of disposal of animal by-products, bakery residue and used cooking oil provided by trash haulers, waste management companies and biodiesel companies, as well as the alternative of illegal disposal. See Item 1. “Competition.” In addition, U.S. restaurants experience theft of used cooking oil, the frequency and magnitude of which increases with the rise in value of used cooking oil. Depending on market conditions, we either charge a collection fee to offset a portion of the cost incurred in collecting raw material, collect on a no pay/no charge basis or will pay for the raw material. To the extent suppliers of raw materials look to alternate methods of disposal, whether as a result of our collection fees being deemed too expensive, the payments we offer being deemed too low or otherwise, our raw material supply will decrease and our collection fee revenues will decrease, which could materially and adversely affect our business, results of operations and financial condition. In addition, the amount of raw material acquired, which has a direct impact on the amount of finished goods produced, can also have a material effect on our gross margin reported, as the Company has a substantial amount of fixed operating costs.

A majority of the Company's U.S. volume of animal by-product raw materials, including all of its significant U.S. poultry accounts, and substantially all of the Company's U.S. bakery feed raw materials, are acquired on a “formula basis,” which in most cases is set forth in contracts with our suppliers, generally with multi-year terms. These “formulas” allow us to mitigate the risks associated with decreases in commodity prices by adjusting our costs of materials based on changes in the price of our finished products, while also permitting us, in certain cases, to benefit from increases in commodity prices. The formulas provided in these contracts are reviewed and modified both during the term of, and in connection with the renewal of, the contracts to maintain an acceptable level of sharing between us and our suppliers of the costs and benefits from movements in commodity prices. Changes to these formulas or the inability to renew such contracts could have a material adverse effect on our business, results of operations and financial condition. A majority of Rothsay’s animal by-product raw materials are acquired based on prices fixed on a quarterly basis with suppliers, with the remaining portion acquired on a “formula basis.” A majority of Darling Ingredients International’s volume of animal by-product raw materials are acquired at spot or quarterly fixed prices.

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Our business may be adversely impacted by fluctuations in exchange rates, which could affect our ability to comply with our financial covenants.

We carry out transactions in a number of foreign currencies, principally 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. To the extent possible, we attempt to match revenues and expenses in each of the currencies in which we operate. However, we will still be exposed to currency fluctuations when we translate the results of our overseas operations into U.S. dollars, our functional currency, in the preparation of our consolidated financial statements. The exchange rates between these currencies and the U.S. dollar may fluctuate and these fluctuations may affect our U.S. dollar-denominated results of operations and financial condition even if our underlying operations and financial condition, in local currency terms, remain unchanged. While we have entered into and may from time to time enter into the use of currency hedging instruments to provide us with protection from adverse fluctuations in currency exchange rates, there can be no assurance that such instruments will successfully protect us from more pronounced swings in such exchange rates. Further, by utilizing these instruments we potentially forego the benefits that might result from favorable fluctuations in currency exchange rates.

We also face risks arising from the possible future imposition of exchange controls and currency devaluations. Exchange controls may limit our ability to convert foreign currencies into U.S. dollars or to remit dividends and other payments by our foreign subsidiaries located in, or business conducted within, a country imposing such controls. Currency devaluations would result in a diminished value of funds denominated in the currency of the country instituting the devaluation.

Any fluctuations in exchange rates or the imposition of exchange controls or currency devaluation may adversely impact our ability to comply with the financial and other covenants under the documents governing our indebtedness, which could affect our ability to incur indebtedness, pay dividends, make investments or take other actions that might be in our best interest. Should our international operations continue to expand, they will represent a larger part of our business and such exchange rate fluctuations may have a greater impact on our business, financial condition and results of operations.

We are highly dependent on natural gas, diesel fuel and electricity, the price of which can be volatile, and such dependency could materially adversely affect our business.

Our operations are highly dependent on the use of natural gas, diesel fuel and electricity. We consume significant volumes of natural gas to operate boilers in our plants, which generate steam to heat raw materials. Natural gas prices represent a significant cost of facility operations included in cost of sales. We also consume significant volumes of diesel fuel to operate our fleet of tractors and trucks used to collect raw materials. Diesel fuel prices represent a significant component of cost of collection expenses included in cost of sales. Prices for both natural gas and diesel fuel can be volatile and therefore represent an ongoing challenge to our operating results. Although we continually manage these costs and hedge our exposure to changes in fuel prices through our formula pricing, and from time to time, derivatives, a material increase in prices for natural gas and/or diesel fuel over a sustained period of time could materially adversely affect our business, results of operations and financial condition. We also require a significant amount of electricity in operating certain of our facilities, a disruption of which or a significant increase in the cost of which could have a material adverse effect on the business and results of operations of the affected facility.

A significant percentage of our revenue is attributable to a limited number of suppliers and customers.

In fiscal 2017, the Company's top ten customers for finished products accounted for approximately 20% of product sales. In addition, the Company's top ten raw material suppliers accounted for approximately 21% of its raw material supply in the same period. VION Food, Darling Ingredients International’s largest raw materials supplier, accounted for approximately 11% of Darling Ingredients International’s raw materials supply in fiscal 2017. Darling Ingredients International has entered into supply agreements with VION Food pursuant to which VION Food supplies Darling Ingredients International with by-products generated by VION Food’s operations. MFI, Rothsay’s largest raw materials supplier, accounted for approximately 23% of Rothsay’s raw materials supply in fiscal 2017. In connection with the acquisition of Rothsay, we entered into a seven-year supply agreement with MFI to supply us with substantially all of the MFI raw materials processed by Rothsay prior to the sale.

Disruptions or modifications to, or termination of, our relationships with any of our significant suppliers or customers, or financial difficulties experienced by any of our suppliers or customers that lead to curtailment or termination of their operations, could cause our businesses to suffer significant financial losses and could have a material adverse effect on our business, earnings, financial condition and/or cash flows.

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Certain of our operating facilities are highly dependent upon a single or a few suppliers.

Certain of our operating facilities are highly dependent on one or a few suppliers. Should any of these suppliers choose alternate methods of disposal, cease their operations, have their operations interrupted by casualty, curtail their operations or otherwise cease using our collection services, these operating facilities may be materially and adversely affected, which could materially and adversely affect our business, results of operations and financial condition.

We face risks associated with our international activities, which could negatively affect our sales to customers in foreign countries and our operations and assets in such countries.

We conduct foreign operations in Europe, Canada, Asia, South America and Australia. While we expect that our geographical diversity reduces our exposure to risks in any one country or part of the world, it also subjects us to the various risks and uncertainties relating to international sales and operations, including:

• 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;

• change in existing trade agreements, such as the North American Free Trade Agreement (NAFTA), which could negatively impact our business;

• 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 (“OFAC”), the European Union (“EU”) and other governmental entities; and

• distribution costs, disruptions in shipping or reduced availability or increased costs of freight transportation.

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These risks and uncertainties could jeopardize or limit our ability to transact business in one or more of our international markets or in other developing markets and may have a material adverse effect on our business, results of operations, cash flows and financial condition.

The DGD Joint Venture subjects us to a number of risks.

In January 2011, our wholly-owned subsidiary entered into a limited liability company agreement with a wholly-owned subsidiary of Valero to form the DGD Joint Venture, which was formed to design, engineer, construct and operate 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. The DGD Facility, which is located adjacent to Valero’s refinery in Norco, Louisiana, reached mechanical completion and began production of renewable diesel in June 2013. As of December 30, 2017, under the equity method of accounting, we had an investment in the DGD Joint Venture of approximately $273.9 million included on the consolidated balance sheet. There is no assurance that the DGD Joint Venture will continue to be profitable or allow us to continue to make a return on our investment.

In April 2016, the Company announced the planned expansion of the DGD Facility's annual production capacity from 160 million gallons to 275 million gallons of renewable diesel. Final engineering and cost analysis for the project were completed during the third quarter of 2016. The estimated construction costs for the project are $190 million, which is expected to be funded by DGD Joint Venture cash flow. The DGD Joint Venture estimates completion of construction and commissioning of the project in the second quarter of 2018. The DGD Joint Venture expects to operate at full capacity throughout the remainder of the expansion phase, excluding and estimated 40 days of necessary downtime for final tie-ins in 2018. The planned expansion will also include expanded outbound logistics for servicing the many developing low carbon fuel markets around North America and worldwide. While construction on the expansion project is underway, there is no guarantee that unforeseen issues will not arise in connection with the completion or startup of the expansion project, and any unexpected significant changes to the scope of the project related thereto could require investment of additional financial resources by the DGD Joint Venture and/or the joint venture partners, including the Company, which could be significant.

The DGD Joint Venture is dependent on governmental energy policies and programs, such as the National Renewable Fuel Standard Program (“RFS2”) and low carbon fuel standards (LCFS) (such as in the state of California), which positively impact the demand for and price of renewable diesel. Any changes to, a failure to enforce or a discontinuation of any of these programs could have a material adverse effect on the DGD Joint Venture. See the section entitled “Risk Factors-Risks Related to the Company-Our biofuels business may be affected by energy policies of U.S. and foreign governments.” Similarly, the DGD Joint Venture is subject to the risk that new or changing technologies may be developed that could meet demand for renewable diesel under governmental mandates in a more efficient or less costly manner than the technologies used by the DGD Joint Venture, which could negatively affect the price of renewable diesel and have a material adverse effect on the DGD Joint Venture.

In addition, the operation of a joint venture such as this involves a number of risks that could harm our business and result in the DGD Joint Venture not performing as expected, such as:

• 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 or the possibility of equipment failure as a result of materials degradation;

• 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;

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• 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 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.

If any of these risks described above were to materialize and the operations of the DGD Joint Venture were significantly disrupted, it could have a material adverse effect on our business, financial condition and results of operations.

Our biofuels business may be affected by energy policies of U.S. and foreign governments.

Pursuant to the requirements established by the Energy Independence and Security Act of 2007, the EPA finalized regulations for RFS2 in 2010. The regulation mandated the domestic use of biomass-based diesel (biodiesel or renewable diesel) of 1.0 billion gallons in 2012. Beyond 2012, the regulation requires a minimum of 1.0 billion gallons of biomass-based diesel for each year through 2022, which amount is subject to increase by the Administrator of the EPA. The volume mandates for 2017 are 2.0 billion gallons for biomass based diesel, 4.28 billion gallons for advanced biofuel and 19.28 billion gallons for renewable fuel. The EPA has also established a final volume mandate for biomass based diesel for 2018 of 2.1 billion gallons. In November 2017, the EPA finalized the volume mandates for 2018 advanced biofuel at 4.29 billion gallons and for renewable fuel at 19.29 billion gallons. In addition, the EPA affirmed the 2018 Biomass Based Diesel mandate of 2.1 billion gallons and established the 2019 Biomass Based Diesel mandate at 2.1 billion gallons. Biomass-based diesel qualifies to fulfill the biomass based diesel requirement, the non-specified portion of the advanced biofuel requirement and the total renewable fuel requirement. In order to qualify as a “renewable fuel” each type of fuel from each type of feedstock is required to lower greenhouse gas emissions (“GHG”) by levels specified in the regulation. The EPA has determined that biofuels (either biodiesel or renewable diesel) produced from waste oils, fats and greases result in an 86% reduction in GHG emissions, exceeding the 50% requirement established by the regulation. Prices for our finished products may be impacted by worldwide government policies relating to renewable fuels and GHG. Programs like RFS2 and LCFS and tax credits for biofuels both in the United States and abroad may positively impact the demand for our finished products. As a blender, the DGD Joint Venture has recorded approximately $160.6 million and $156.6 million of blenders tax credits in fiscal 2016 and 2015, respectively, with Darling's portion equaling 50%. While in fiscal 2016, the amount of tax credits for biofuels impacting the Company was material, legal challenges or changes to, a failure to enforce, reductions in the mandated volumes under, or discontinuing any of these programs could have a negative impact on our business and results of operations. Although the blenders tax credits expired on December 31, 2016, in February 2018 they were retroactively reinstated for calendar year 2017. However, to date the blenders tax credits have not been extended and are therefore at risk for calendar year 2018 and into the future. The DGD Joint Venture is expected to receive approximately $160.4 million in fiscal 2018 for blenders tax credits related to fiscal 2017.

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We may incur material costs and liabilities in complying with government regulations.

We are subject to the rules and regulations of various governmental agencies in the United States, the EU, Canada, China and the other countries in which Darling Ingredients International operates. These include rules and regulations administered by governmental agencies at the supranational, federal, state, provincial or local level. See Item 1. "Business - Regulations" for a listing of certain governmental agencies to which we are subject.

The applicable rules, regulations and guidance promulgated by these and other agencies, which are likely to change over time, affect our operations and may influence our operating results at one or more facilities. Furthermore, the loss of or failure to obtain necessary federal, state, provincial or local permits and registrations at one or more of our facilities could halt or curtail operations at impacted facilities, which could result in impairment charges related to the affected facility and otherwise adversely affect our operating results. In addition, our failure to comply with applicable rules, regulations and guidance, including obtaining or maintaining required operating certificates or permits, could subject us to: (i) administrative penalties and injunctive relief; (ii) civil remedies, including fines, injunctions and product recalls; and/or (iii) adverse publicity. There can be no assurance that we will not incur material costs and liabilities in connection with these rules, regulations and guidance.

Because of our international operations throughout much of the world, we could be adversely affected by violations of the FCPA and similar anti-bribery laws, as well as laws and regulations governing international transactions (such as the regulations administered by OFAC). The FCPA and similar anti-bribery laws generally prohibit companies and their intermediaries from making improper payments or providing anything of value to improperly influence government officials or other third parties for the purpose of obtaining or retaining business or obtaining an unfair business advantage. OFAC regulations and other economic sanctions laws and regulations generally prohibit U.S. persons from engaging in transactions or dealings with certain specified countries, territories, people or entities. Recent years have seen a substantial increase in the global enforcement of anti-corruption laws and economic sanctions laws and regulations. Our operations outside the United States, including in developing countries, could increase the risk of such violations. In addition, we may enter into joint ventures with joint venture partners who are domiciled in areas of the world with anti-bribery laws, regulations and business practices that differ from those in the United States. There is risk that our joint venture partners will violate the FCPA or other applicable anti-bribery laws and regulations. While our policies mandate compliance with the FCPA and other anti-bribery laws, as well as economic sanctions, we cannot provide assurance that our internal control policies and procedures will always protect us from violations committed by our employees, joint venture partners or agents. Violations of the FCPA or other anti-bribery laws, or of economic sanctions laws, or allegations of such violations, could result in lengthy investigations and possibly disrupt our business, lead to criminal and/or civil legal proceedings brought by governmental agencies and/or third parties, result in material fines and legal and other costs and have a material adverse effect on our reputation, business, results of operations, cash flows and financial condition.

Given the competitive nature of our industry, we could be adversely affected by violations of various countries’ antitrust, competition and consumer protection laws. These laws generally prohibit companies and individuals from engaging in anticompetitive and unfair business practices. While our policies mandate compliance with these laws, we cannot provide assurance that our internal control policies and procedures will always protect us from violations or reckless or criminal acts committed by our employees, joint venture partners or agents.

Seasonal factors and weather, including the physical impacts of climate changes, can impact the availability, quality and volume of raw materials that we process and negatively affect our operations.

The quantity of raw materials available to us is impacted by seasonal factors, including holidays, when raw material volumes decline, and cold weather, which can impact the collection of raw materials. In addition, warm weather can adversely affect the quality of raw materials processed and our yield on production due to more rapidly degrading raw materials. In addition to seasonal impacts, depending upon the location of our facilities and those of our suppliers, our operations could be subject to weather impacts, including the physical impacts of climate changes, changes in rainfall patterns, water shortages, changing sea levels, changing storm patterns and intensities and changing temperature levels. Physical damage, flooding, excessive snowfall or drought resulting from changing climate patterns could adversely impact our costs and business operations, the availability and costs of our raw materials, and the supply and demand for our end products. These effects could be material to our results of operations, liquidity or capital resources. The quality and volume of the finished products that we are able to produce could be negatively impacted by unseasonable or severe weather or unexpected declines in the volume of raw materials available during holidays, which in turn could have a material adverse effect on our business, results of operations and financial condition. In addition, severe weather events may also impact our ability to collect or process raw materials or to transport finished products.

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Downturns and volatility in global economies and commodity and credit markets could materially adversely affect our business, results of operations and financial condition.

Our results of operations are materially affected by the conditions of the global economies and the credit, commodities and stock markets. Among other things, we may be adversely impacted if our domestic and international customers and suppliers are not able to access sufficient capital to continue to operate their businesses or to operate them at prior levels. A decline in consumer confidence or changing patterns in the availability and use of disposable income by consumers can negatively affect both our suppliers and customers. Declining discretionary consumer spending or the loss or impairment of a meaningful number of our suppliers or customers could lead to declines in either raw material availability or customer demand. Any tightening in credit supply could negatively affect our customers’ ability to pay for our products on a timely basis or at all and could result in a requirement for additional bad debt reserves. Although many of our customer contracts are formula-based, continued volatility in the commodities markets could negatively impact our revenues and overall profits. Counterparty risk on finished product sales can also impact revenue and operating profits when customers either are unable to obtain credit or refuse to take delivery of finished products due to market price declines.

Our substantial level of indebtedness could adversely affect our financial condition.

As of December 30, 2017, our total indebtedness, including trade debt, was approximately $1.7 billion. Our high level of indebtedness could have important consequences, including the following:

• 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.

In addition, the indentures that govern our senior notes and the credit agreement governing our senior secured credit facilities contain restrictive covenants that limit our ability to engage in activities that may be in our long-term best interest. Our failure to comply with those covenants could result in an event of default which, if not cured or waived, could result in the acceleration of all our funded indebtedness. See Item 7. “Management Discussion and Analysis of Financial Condition and Results of Operations” - “Senior Secured Credit Facilities,” “5.375% Senior Notes due 2022” and “4.75% Senior Notes due 2022.”

Despite our existing level of indebtedness, we and our subsidiaries may still be able to incur substantially more indebtedness, which could further exacerbate the risks to our financial condition described above.

We and our subsidiaries may be able to incur substantial additional indebtedness in the future, including additional secured indebtedness under the senior secured credit facilities. Although the indentures that govern the senior notes and the credit agreement governing the senior secured credit facilities contain restrictions on our incurrence of additional indebtedness, these restrictions are subject to a number of significant qualifications and exceptions, and the additional indebtedness that could be incurred in compliance with these restrictions could be substantial. To the extent that we or our subsidiaries incur additional indebtedness, the risks associated with our indebtedness, including our possible inability to service our indebtedness, could intensify. See Item

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7. “Management Discussion and Analysis of Financial Condition and Results of Operations” - “Senior Secured Credit Facilities,” “5.375% Senior Notes due 2022” and “4.75% Senior Notes due 2022.”

We may not be able to generate sufficient cash to service all of our indebtedness and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful.

Our ability to make scheduled payments on or to refinance our debt obligations depends on our financial condition and operating performance, which are subject to prevailing economic and competitive conditions and to certain financial, business, legislative, regulatory and other factors beyond our control. We may be unable to maintain a level of cash flows from operating activities sufficient to permit us to pay the principal, premium, if any, and interest on our indebtedness.

If our cash flows and capital resources are insufficient to fund our debt service obligations and to meet our other cash needs, we could be forced to reduce or delay investments and capital expenditures or to dispose of material assets or operations, seek additional debt or equity capital or restructure or refinance our indebtedness. We may not be able to effect any such alternative measures, if necessary, on commercially reasonable terms or at all and, even if successful, such alternative actions may not allow us to meet our scheduled debt service obligations and our other cash needs. The credit agreement governing our senior secured credit facilities and the indentures governing our senior notes restrict our ability to use the proceeds from the disposition of assets, debt incurrence or sales of equity to repay other indebtedness when it becomes due. We may not be able to consummate any such dispositions or to obtain debt or equity proceeds in amounts sufficient to meet any debt service obligations then due, and we may be restricted under the credit agreement governing our senior secured credit facilities or the indentures governing our senior notes from using any such amounts to service other debt obligations.

If we cannot make scheduled payments under any of the agreements governing our debt, we would be in default under such agreements, which could allow lenders under any credit facilities to terminate their commitments to loan money and could allow the applicable lenders or other debt holders to declare all outstanding principal and interest of such debt to be immediately due and payable, and, in the case of secured debt, to foreclose against the assets securing such debt and apply the proceeds from such foreclosure to repay amounts owed to them. Any of these events would likely in turn trigger cross-acceleration or cross-default provisions in our other debt instruments, which would allow the creditors under those instruments to exercise similar rights. If any of these actions are taken, we could be forced into restructuring, bankruptcy or liquidation.

Our ability to repay our indebtedness depends in part on the performance of our subsidiaries, including our non-guarantor subsidiaries, and their ability to make payments.

We conduct a significant portion of our operations through our subsidiaries, a number of which operate outside the United States. Accordingly, repayment of our indebtedness is dependent, to a significant extent, on the generation of cash flow by our subsidiaries and their ability to make such cash available to us. Unless they are guarantors of the indebtedness, our subsidiaries do not have any obligation to pay amounts due on the indebtedness or to make funds available for that purpose. Under certain circumstances, legal and contractual restrictions may limit our ability to obtain cash from our subsidiaries. For example, our subsidiaries that are organized under the laws of, and operate in, China, currently have substantial regulatory restrictions on their ability to make cash available to us. While the credit agreement governing the senior secured credit facilities, the indentures governing our senior notes and the agreements governing certain of our other indebtedness will limit the ability of certain of our subsidiaries to incur consensual restrictions on their ability to make other intercompany payments to us, these limitations are subject to certain significant qualifications and exceptions.

Our business may be negatively impacted by the occurrence of any disease correctly or incorrectly linked to animals.

The emergence of diseases such as swine influenza viruses (collectively known as “Swine Flu”) and highly pathogenic strains of avian influenza (collectively known as “Bird Flu”) and severe acute respiratory syndrome (“SARS”) that are in or associated with animals and have the potential to also threaten humans has created concern that such diseases could spread and cause a global pandemic. Swine Flu is quite common among pigs and is generally not fatal. However, Swine Flu strains are often transmitted to humans and have resulted in fatalities. India is currently suffering a Swine Flu outbreak, which so far has resulted in a significant number of deaths. Bird Flu generally refers to highly aggressive and fatal diseases of birds caused by flu viruses that, once established, can spread rapidly from flock to flock and have also been known to affect humans. To date, various strains of Bird Flu have been and continue to be reported in wild fowl and commercial poultry in Europe, North America, the Middle East and parts of Asia. Reports that these Bird Flu strains can be spread from person to person have been rare and have regarded potential transmission as inefficient and not sustained.

Other diseases that are highly contagious within a species, but do not affect other animals and are not transmissible to humans, such as porcine epidemic diarrhea (“PED”) virus, may significantly impact production of the susceptible livestock or

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poultry species in a country or region. Any reports, proven or perceived, that implicate animal feed or feed ingredients, including but not limited to animal by-products, as contributing to the spread of a contagious animal disease could negatively affect demand for our products as ingredients in animal feeds in the affected country or region.

Although no global disease pandemic among humans has been linked to Bird Flu or other emerging diseases to date, governments may be pressured to address these concerns, including by executive action such as temporarily closing certain businesses, including meat and animal processing facilities, within their jurisdictions suspected of contributing to the spread of such diseases or by legislative or other policy action, such as prohibiting imports of animals, meat and animal by-products from countries or regions where the disease is detected or suspected. If any disease that is correctly or incorrectly linked to animals and has a negative impact on meat or poultry consumption or animal production occurs in any jurisdiction in which we operate, such occurrence could have a material negative impact on the volume of raw materials available to us or the demand for our finished products.

Our business may be affected by the impact of animal related disease, such as BSE and other food safety issues.

The FDA has put in place restrictions to prevent the spread of BSE, and certain foreign governments have also restricted exports of beef and beef products from the United States following the detection of BSE in the United States in December 2003. The fifth and most recent case of BSE was reported in an eleven-year-old cow on July 18, 2017. This was the first such case of BSE since the World Organization for Animal Health (the “OIE”) characterized the United States’ BSE status as one of “negligible risk” in 2013. This latest case and the previous three cases were the atypical or sporadic form of BSE, which is not spread via feed and, therefore, should not affect the “negligible BSE risk” status of the U.S. Continued concern about BSE in the United States, and other countries in which we operate now or in the future, may result in additional regulatory and market related challenges that may affect our operations or increase our operating costs.

With respect to human food, pet food and animal feed safety in the United States, the Food Safety Modernization Act (“FSMA”) was enacted on January 4, 2011 and gave the FDA new authorities, which became effective immediately, and directed the FDA to promulgate new regulations pursuant to the FSMA. Included among these new authorities and regulations are:

• Mandatory recall authority for adulterated or misbranded foods where the use of or exposure to such foods is likely to cause serious adverse health consequences or death to humans or animals, if the responsible party fails to cease distribution and recall such adulterated or misbranded foods voluntarily.

• Regulations that define the FDA’s administrative detention authority to include the authority to detain an article of food if there is reason to believe the food is adulterated or misbranded.

• Section 306 of the FSMA provides that the FDA must refuse admission of food into the United States if a foreign food establishment or foreign government refuses to permit entry for an inspection. In December 2017, FDA issued draft guidance on what actions constitute refusal of inspection.

• Section 102 of the FSMA amended facility registration requirements in the Federal Food, Drug and Cosmetic (“FD&C”) Act for domestic and foreign manufacturers, processors, packers or holders of food for human or animal consumption, to require that facility registrations be renewed during the fourth quarter of each even-numbered year, beginning October 1, 2012 and that additional information be included in such registrations. FSMA also provides that the FDA may suspend registrations of facilities that create, cause, or are otherwise responsible for, or know or have reason to know that such facility manufactures, processes, packs, receives or holds a food with a reasonable probability of causing serious adverse health consequences or death to humans or animals.

• The FDA issued final rules for preventive controls (“PCs”) for human food and animal feed (“Human Food PC Rule” and “Animal Food PC Rule,” respectively), which apply to registered FDA 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, PCs to ensure that significant hazards that are identified as needing to be controlled will be significantly reduced or prevented, monitoring of PCs, supply-chain controls if appropriate to control a significant hazard, recall plans, corrective action procedures, verification activities and record keeping standards. 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 plant and grounds, sanitation, water supply and plumbing, equipment and utensils, plant operations and the holding and distribution of the human or animal food. Large firms, including us, were required to comply with most sections of the Human Food PC

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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. The FDA has issued draft guidance to help food facilities comply with requirements under these final rules.

• The FDA issued a regulation relating to Foreign Supplier Verification Programs (“FSVP Rule”) requiring that importers of both human and animal food must develop, follow and maintain written procedures verifying 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 appropriate, and must ensure that the suppliers’ food is not adulterated and is not misbranded with respect to allergen labeling of human food. The FDA has issued various guidance documents to assist importers in complying with the FSVP Rule.

• Pursuant to the Sanitary Food Transportation Act of 2005 and FSMA, the FDA 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 FDA finalized a rule which requires registered human food facilities to conduct a vulnerability assessment and implement mitigation strategies, including a written food defense plan, to address hazards that may be intentionally introduced to harm the public health.

We have followed regulations enacted under the FSMA throughout the rulemaking process and have implemented CGMPs, food safety plans and other procedures at our domestic facilities, which we believe will comply with the applicable final Human Food PC Rule or Animal Food PC Rule. We are also reviewing similar procedures in place at our foreign facilities for compliance with the FSVP Rule. Such rulemaking and implementation of compliant procedures could, among other things, limit our ability to import necessary raw materials or finished products or require us to amend certain of our other operational policies and procedures. Unforeseen issues and requirements may arise as the FDA implements these and other final rules or promulgates other new regulations provided for by the FSMA.

The FDA has also established a Reportable Food Registry (“RFR”) pursuant to the Food and Drug Administration Amendments Act of 2007 (the “FDAAA”). The guidance documents define a reportable food, which the manufacturer or distributor would be required to report in the RFR, to include materials used as ingredients in animal feeds and pet foods, if there is a reasonable probability that the use of, or exposure to, such materials will cause serious adverse health consequences or death to humans or animals. In July 2013, the FDA released the “Compliance Policy Guide Sec. 690.800, Salmonella in Food for Animals” (the “CPG”). According to the CPG, any finished pet food contaminated with any species of Salmonella will be considered adulterated and the FDA believes regulatory action is warranted in cases involving such pet foods because of the heightened risk to humans given the high likelihood of direct human contact with the pet food. Finished animal feeds intended for pigs, poultry and other farmed animals, however, will be considered to be adulterated only if the feed is contaminated with a species of Salmonella that is considered to be pathogenic for the animal species for which the feed is intended. Finalization of the RFR guidance documents and potential additional requirements relating to the RFR may impose additional requirements on us. Any pathogen, such as Salmonella, that is correctly or incorrectly associated with our finished products could have a negative impact on the demand for our finished products and could have a material adverse effect on our business, reputation, results of operations or financial condition.

As a result of our international operations, we could be adversely affected by additional non-U.S. regulations regarding BSE and other food safety issues. For example, an enforceable ban on the feeding of restricted animal material to ruminant animals was introduced in Australia in 1996. This ban is part of a comprehensive national program to prevent the entry and establishment of the BSE agent in Australia. Inspections and audits are undertaken to ensure compliance. In addition, in the E.U., harmonized rules have been adopted for prevention, control and eradication of transmissible spongiform encephalopathies (“TSEs”), which includes BSE, in Regulation (EC) No 999/2001, as amended (“TSE Regulation”) and in other instruments such as Regulation (EC) No 1069/2009 on animal by-products, as amended (“Animal By-Products Regulation”) and food and other feed hygiene regulations. The TSE Regulation establishes a “feed ban,” which is the basic preventive measure against TSE and consists of a ban on the use of processed animal protein (“PAP”), such as MBM, in feed for farmed animals. Only certain animal proteins considered to be safe (such as fishmeal) can be used, but under very strict conditions. Other animal-derived products besides PAP, such as collagen and gelatin derived from non-ruminants and hydrolyzed protein derived from parts of non-ruminants or from ruminant hides and skins, are not subject to the “feed ban.” In June 2013, the “feed ban” was lifted for the feeding of aquaculture animals, and the European Commission has been investigating the options to lift the ban for other non-ruminants, such as pigs and poultry. Although Darling Ingredients International may profit from the possible lifting of the ban for pigs and poultry, changes to the “feed ban” may adversely affect Darling Ingredients International, possibly restricting the allowed use of some of their

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products. The TSE Regulation applies to the production and placing on the market of live animals and products of animal origin on the E.U. market. For that purpose, the BSE status of E.U. Member States, non-E.U. members of the European Economic Area and other countries or regions (“Third Countries”) is to be determined by classification into one of three categories depending on the BSE risk involved: a negligible risk, a controlled risk or an undetermined risk. This classification is made by the OIE. The determination of BSE status is based on a risk assessment and the implementation of a surveillance program. For each risk category there are trade rules to provide the necessary guarantees for protecting public and animal health. Currently, the following E.U. Member States are classified as having a controlled BSE risk: France, Greece, Ireland and a zone within the United Kingdom (consisting of England and Wales). The other E.U. Member States, including two zones within the United Kingdom (consisting of Northern Ireland and Scotland), are classified as having a negligible BSE risk. A change in the BSE status of one or more E.U. Member States may have a negative impact on Darling Ingredients International. Under E.U. legislation, imported products from outside the E.U. must meet the same safety standards as products produced in E.U. Member States. Therefore, the TSE Regulation imposes strict import requirements related to TSEs for live animals and animal by-products, such as full traceability of imported animals and animal by-products, a ban on the use of MBM in feed for ruminants and the prohibition of the import of specified risk material or mechanically recovered meat. The detailed import requirements depend on the BSE status of Third Countries. The Animal By-Products Regulation establishes rules intended to prevent the outbreak of certain diseases such as BSE. The Animal By-Products Regulation imposes, for example, rules for the use and disposal of specified risk material and other high risk material. A BSE outbreak or other event viewed as hazardous to animal or human health could lead to the adoption of more stringent rules on the use and disposal of animal by-products, which could require Darling Ingredients International to change its production processes and could have a material adverse effect on our business, results of operations or financial condition.

If we or our customers are the subject of product liability or other claims or product recalls we may incur significant and unexpected costs and our business reputation could be adversely affected.

We and our customers for whom we manufacture products may be exposed to product liability or other claims, product recalls and adverse public relations if consumption or use of our products is alleged to cause injury or illness to humans or animals. In addition, we and our customers may be subject to product liability or other claims, product recalls, and adverse public relations resulting from developments relating to the discovery of unauthorized adulterations to food additives or other products or from allegations that our food ingredients or other products were mislabeled, were not produced in accordance with the customer’s specifications and/or have not performed adequately in the end product, even where food safety or other product safety is not a concern. In some cases, we indemnify our customers for product liability and other claims related to our products. Product recalls in one jurisdiction may result in product recalls in other jurisdictions, as is the case in the EU, where an EU Member State could recall a product in connection with the recall of such product in another EU Member State. Our insurance may not be adequate to cover all liabilities we incur in connection with product liability and/or other claims, whether or not legitimate, or product recalls, whether voluntary or mandatory. We may not be able to maintain our existing insurance or obtain comparable insurance at a reasonable cost for such matters. A judgment against us or against one of our customers for whom we manufacture or provide products on a product liability or other claim, or our or their agreement to settle a product liability or other claim, or a product recall, could also result in substantial and unexpected expenditures, which would reduce operating income and cash flow. In addition, even if product liability or other claims against us or our customers for whom we manufacture products are not successful or are not fully pursued, defending these claims would likely be costly and time-consuming and may require management to spend time defending the claims which takes time away from operating our business. Any such claim could also result in adverse publicity and negatively impact our reputation.

Product liability or other claims, product recalls or any other events that cause consumers to no longer associate our brands or those of our customers for whom we manufacture products with high quality and safety may harm the value of our and their brands and lead to decreased demand for our products. In addition, as a result of any such claims against us or product recalls, we may be exposed to claims by our customers for damage to their reputations and brands. Product liability or other claims and product recalls may also lead to increased scrutiny or investigations by federal, state and foreign regulatory agencies of our operations and could have a material adverse effect on our brands, business, results of operations and financial condition.

Changes in consumer preference could negatively impact our business.

The food and pet food industries in general are subject to changing consumer trends, demands and preferences. Trends within the food and pet food industries change often, and failure to identify and react to changes in these trends could lead to, among other things, reduced demand and price reductions for our products or those of our customers for whom we manufacture products, and could have an adverse effect on our financial results.

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Our operations are subject to various laws, rules and regulations relating to the protection of the environment and to health and safety, and we could incur significant costs to comply with these requirements or be subject to sanctions or held liable for environmental damages.

Our operations subject us to various and increasingly stringent environmental, health and safety requirements in the various jurisdictions where we operate, including those governing air emissions, wastewater discharges, the management, storage and disposal of materials in connection with our facilities, occupational health and safety, product packaging and labeling and our handling of hazardous materials and wastes, such as gasoline and diesel fuel used by our trucking fleet and operations. Failure to comply with these requirements could have significant consequences, including recalls, penalties, injunctive relief, claims for personal injury and property and natural resource damages, other claims and negative publicity. Our operations require the control of air emissions and odor and the treatment and discharge of wastewater to municipal sewer systems and the environment. We operate boilers at many of our facilities and store wastewater in lagoons or, as permitted, discharge it to publicly owned wastewater treatment systems or surface waters, or through land application. We have incurred significant capital and operating expenditures to comply with environmental requirements, including for the upgrade of wastewater treatment facilities, and will continue to incur such costs in the future.

We could be responsible for the remediation of environmental contamination and may be subject to associated liabilities and claims for personal injury and property and natural resource damages. We own or operate numerous properties, have been in business for many years and have acquired and disposed of properties and businesses over that time. During that time, we or other owners or operators may have generated or disposed of wastes or stored or handled other materials that are or may be considered hazardous or may have polluted the soil, surface water or groundwater at or around our facilities. Under some environmental laws, such as the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 in the United States, also known as the Superfund law, responsibility for the cost of cleanup of a contaminated site can be imposed upon current or former site owners and operators, or upon any party that sent waste to the site, regardless of the lawfulness of the activities that led to the contamination. Similar laws outside the United States impose liability for environmental cleanup, often under the polluter pays theory of liability but also based upon ownership in some circumstances. There can be no assurance that we will not face extensive costs or penalties that would have a material adverse effect on our financial condition and results of operations. For example, we have received notice from the EPA relating to alleged river sediment contamination in the Lower Passaic River area of New Jersey. See Item 3. “Legal Proceedings.” In addition, future developments, such as more aggressive enforcement policies, new laws or discoveries of currently unknown contamination conditions, may also require expenditures that may have a material adverse effect on our business and financial condition.

In addition, increasing efforts to control emissions of GHG are likely to impact our operations. We operate in certain jurisdictions subject to the Kyoto Protocol, which mandates reduced GHG emissions in certain participating countries, and the EPA’s recent rule establishing mandatory GHG reporting for certain activities may apply to some of our facilities if we exceed the applicable thresholds. The EPA has also announced a regulatory endangerment finding relating to GHG emissions that has led to further regulation of GHG emissions. Legislation to regulate GHG emissions has periodically been proposed in the U.S. Congress and a growing number of states and foreign countries are taking action to require reductions in GHG emissions. Future GHG emissions limits may require us to incur additional capital and operational expenditures. EPA regulations limiting exhaust emissions also have become more restrictive, and the National Highway Traffic Safety Administration and the EPA have adopted new regulations that govern fuel efficiency and GHG emissions which began in 2014. Compliance with these and similar regulations could increase the cost of new fleet vehicles and increase our operating expenses. Compliance with future GHG regulations may require expenditures that could materially adversely affect our business, results of operations and financial condition.

We have approximately 9,800 employees world-wide and are subject to a wide range of local, provincial and national laws and regulations governing the health and safety of workers, including, for example, OSHA in the United States. We can be subject to potential fines and civil and, in egregious cases, criminal actions if we are found to be in violation of worker health and safety laws in any of these jurisdictions. Further, as such laws and regulations change, we may sometimes be required to commit to unplanned capital expenditures in order to continue to comply with workplace safety requirements at our facilities. In addition, we operate and maintain an extensive vehicle fleet to transport products to and from customer locations in all jurisdictions where we have facilities. Our fleets and drivers are subject to federal, state, local and foreign laws and licensing requirements applicable to commercial fleets, their cargo and their hours and methods of operation. Failure to comply with these laws and regulations in any location could materially adversely affect our business, results of operations, financial condition and reputation.

If we experience difficulties or a significant disruption in our information systems or if we fail to implement new systems and software successfully, our business could be materially adversely affected.

We depend on information systems throughout our business to collect and process data that is critical to our operations and accurate financial reporting. Among other things, these information systems process incoming customer orders and outgoing

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supplier orders, manage inventory, and allow us to efficiently collect raw materials and distribute products, process and bill shipments to and collect cash from our customers, respond to customer and supplier inquiries, contribute to our overall internal control processes, maintain records of our property, plant and equipment, and record and pay amounts due vendors and other creditors.

If we were to experience a disruption in our information systems that involve interactions with suppliers and customers, it could result in a loss of raw material supplies, sales and customers and/or increased costs, which could have a material adverse effect on our business, financial condition and results of operations. In addition, any such disruption could adversely affect our ability to meet our financial reporting obligations. We may also encounter difficulties in developing new systems or maintaining and upgrading existing systems and software. Such difficulties may lead to significant expenses or losses due to unexpected additional costs required to implement or maintain systems, disruption in business operations, loss of sales or profits, or cause us to incur significant costs to reimburse third parties for damages, and, as a result, may have a material adverse effect on our results of operations and financial condition. We could also experience impairment of our reputation if any of these events were to occur.

The Company is in the process of a multi-year project to replace our existing work management, financial and supply chain software applications with a new suite of systems, including an enterprise resource planning (“ERP”) system for North America. We currently do not intend to replace the system being utilized by Darling Ingredients International, including at its North American facilities. The ERP system’s implementation process involves a number of risks that may adversely hinder our business operations and/or affect our financial condition and results of operations, if not implemented successfully. The ERP system’s implementation is a complex and time-consuming project that involves substantial expenditures for implementation consultants, system hardware, software and implementation activities, as well as the transformation of business and financial processes.

As with any large software project, there are many factors that may materially affect the schedule, cost, execution and implementation of this project. Those factors include: problems during the design, implementation and testing phases; system delays and/or malfunctions; the risk that suppliers and contractors will not perform as required under their contracts; the diversion of management’s attention from daily operations to the project; re-works due to changes in business processes or financial reporting standards; and other events, some of which are beyond our control. These types of issues could disrupt our business operations and/or our ability to timely and accurately process and report key components of our financial results and and/or complete important business processes such as the evaluation of our internal controls and attestation activities pursuant to Section 404 of the Sarbanes-Oxley Act of 2002. Accordingly, material deviations from the project plan or unsuccessful execution of the plan may adversely affect our business, results of operations and financial condition.

Increased information technology security threats and more sophisticated computer crime pose a risk to our systems, networks, products and services.

We rely upon our information systems and networks in connection with a variety of business activities, and we collect and store sensitive data. Increased security threats to information systems and more sophisticated computer crime pose a risk to the security of our systems and networks and the confidentiality, availability and integrity of our data. A failure of or breach in technology security could expose us and our customers and suppliers to risks of misuse of information or systems, the compromising of confidential information, manipulation and destruction of data, defective products, production downtimes and operating disruptions, which in turn could adversely affect our reputation, competitive position, business and results of operations. In addition, such breaches in security could result in litigation, regulatory action and potential liability and the costs and operational consequences of implementing further data protection measures.

Furthermore, we are subject to complex and evolving laws and regulations regarding privacy, know-your-customer requirements, data protection, including the General Data Protection Regulation (“GDPR”) adopted in the EU, cross-border data movement and other matters. Principles concerning the appropriate scope of consumer and commercial privacy vary considerably in different jurisdictions, and regulatory and public expectations regarding the definition and scope of consumer and commercial privacy may remain fluid. It is possible that these laws may be interpreted and applied by various jurisdictions in a manner inconsistent with our current or future practices or inconsistent with one another. If personal, confidential or proprietary information of customers or employees in our possession is mishandled or misused, we may face regulatory, reputational and operational risks which could have an adverse effect on our financial condition and results of operations.

Our success is dependent on our key personnel.

Our success depends to a significant extent upon a number of key employees, including members of senior management. The loss of the services of one or more of these key employees could have a material adverse effect on our results of operations and prospects. We believe that our future success will depend in part on our ability to attract, motivate and retain skilled technical,

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managerial, marketing and sales personnel. Competition for these types of skilled personnel is intense and there can be no assurance that we will be successful in attracting, motivating and retaining key personnel. The failure to hire and retain such personnel could materially adversely affect our business, results of operations and financial condition.

In certain markets we are highly dependent upon a single operating facility and various events beyond our control could cause an interruption in the operation of our facilities, which could adversely affect our business in those markets.

Our facilities are subject to various federal, state, provincial and local environmental and other permitting requirements of the countries in which we operate, depending on the locations of those facilities. Periodically, these permits may be reviewed and subject to amendment or withdrawal. Applications for an extension or renewal of various permits may be subject to challenge by community and environmental groups and others. In the event of a casualty, condemnation, work stoppage, permitting withdrawal or delay, severe weather event, or other unscheduled shutdown involving one of our facilities, in a majority of our markets we would utilize a nearby operating facility to continue to serve our customers in the affected market. In certain markets, however, we do not have alternate operating facilities. In the event of a casualty, condemnation, work stoppage, permitting withdrawal or delay, severe weather event or other unscheduled shutdown in these markets, we may experience an interruption in our ability to service our customers and to procure raw materials, and potentially an impairment of the value of that facility. Any of these circumstances may materially and adversely affect our business and results of operations in those markets. In addition, after an operating facility affected by a casualty, condemnation, work stoppage, permitting withdrawal or delay or other unscheduled shutdown is restored, there could be no assurance that customers who in the interim choose to use alternative disposal services would return to use our services.

We could incur a material weakness in our internal control over financial reporting that would require remediation.

Any future failures to maintain the effectiveness of our disclosure controls and procedures, including our internal control over financial reporting, could subject us to a loss of public confidence in our internal control over financial reporting and in the integrity of our financial statements and our public filings with the SEC and other governmental agencies and could harm our operating results or cause us to fail to meet our regulatory reporting obligations in a timely manner.

Changes in our tax rates or exposure to additional income tax liabilities could impact our profitability.

We are subject to income taxes in the United States and in various other foreign jurisdictions. Our effective tax rates could be adversely affected by changes in the mix of earnings by jurisdiction, changes in tax laws or tax rates including recently enacted tax reform in the United States, and changes in the valuation of deferred tax assets and liabilities. In addition, the amount of income taxes we pay is subject to ongoing audits in various jurisdictions and a material assessment by a governing tax authority could affect our profitability.

The ongoing effects of U.S. tax reform and the refinement of provisional estimates could make our results difficult to predict.

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The changes included in the Tax Act are broad and complex. The final impacts of the Tax Act may differ from the estimates provided elsewhere in this report, possibly materially, due to, among other things, changes in interpretations of the Tax Act, any legislative action to address questions that arise because of the Tax Act, any changes in accounting standards for income taxes or related interpretations in response to the Tax Act, or any updates or changes to estimates the company has utilized to calculate the impacts, including impacts from changes to current year earnings estimates and foreign exchange rates of foreign subsidiaries.

An impairment in the carrying value of our goodwill or other intangible assets may have a material adverse effect on our results of operations.

As of December 30, 2017, the Company had approximately $1.3 billion of goodwill. We are required to annually test goodwill to determine if impairment has occurred. Additionally, impairment of goodwill must be tested whenever events or changes in circumstances indicate that impairment may have occurred. If the testing performed indicates that impairment has occurred, we are required to record a non-cash impairment charge for the difference between the carrying value of the goodwill and the implied fair value of the goodwill in the period the determination is made. The testing of goodwill for impairment requires us to make significant estimates about our future performance and cash flows, as well as other assumptions. These estimates can be affected by numerous factors, including changes in economic, industry or market conditions, changes in business operations or regulation, or changes in competition. Changes in these factors, or changes in actual performance compared with estimates of our future performance, may affect the fair value of goodwill, which may result in an impairment charge. For example, a deterioration in demand for, or increases in costs for producing, a supplier’s principal products could lead to a reduction in the supplier’s output

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of raw materials, thus impacting the fair value of a plant processing that raw material. We cannot accurately predict the amount and timing of any impairment of assets. Should the value of goodwill become impaired, there may be a material adverse effect on our results of operations.

We may be subject to work stoppages at our operating facilities, which could cause interruptions in the manufacturing or distribution of our products.

While we currently have no international, national or multi-plant union contracts, as of December 30, 2017 approximately 23% of Darling’s North American employees, 26% of Rothsay’s employees and 41% of Darling Ingredients International’s employees were covered by various collective bargaining agreements. Furthermore, local laws and regulations in certain jurisdictions in which we operate provide for worker groups with prescribed powers and rights with regard to working conditions, wages and similar matters. In jurisdictions where such groups do not exist, labor organizing activities could result in additional employees becoming unionized and higher ongoing labor costs. Darling’s collective bargaining agreements expire at varying times over the next five years. In contrast, Darling Ingredients International’s collective bargaining agreements generally have one to two year terms. Rothsay agreements generally have terms up to three years. Some of our collective bargaining agreements have already expired and are in the process of being renegotiated. There can be no assurance that we will be able to negotiate the terms of any expiring or expired agreement in a manner acceptable to us. If our workers were to engage in a strike, work stoppage, slowdown or other collective action in the future in any of our locations, we could experience a significant disruption of our operations, which could have a material adverse effect on our business, results of operations and financial condition. We may also be subject to general country strikes or work stoppages unrelated to our business or collective bargaining agreements that could have a direct or indirect adverse effect on our business, results of operation or financial condition.

Litigation or regulatory proceedings may materially adversely affect our business, results of operations and financial condition.

We are a party to various lawsuits, claims and loss contingencies arising in the ordinary course of 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 outcome of litigation, particularly class action lawsuits, and regulatory proceedings is difficult to assess or quantify. Plaintiffs (including governmental agencies) in these types of lawsuits and proceedings may seek recovery of very large or indeterminate amounts, and the magnitude of the potential loss relating to such lawsuits or proceedings may remain unknown for substantial periods of time. The costs of responding to or defending future litigation or regulatory proceedings may be significant and any future litigation or regulatory proceedings may divert the attention of management away from our strategic objectives. There may also be adverse publicity associated with litigation or regulatory proceedings that may decrease customer confidence in our business, regardless of whether the allegations are valid or whether we are ultimately found liable. As a result, litigation or regulatory proceedings may have a material adverse effect on our business, results of operations and financial condition. For more information related to our litigation and regulatory proceedings, see Item 3. “Legal Proceedings.”

Certain U.S. multiemployer defined benefit pension plans to which we contribute are underfunded and these plans and our European pension funds may require minimum funding contributions.

We participate in various U.S. multiemployer pension plans which provide defined benefits to certain employees covered by labor contracts. These plans are not administered by us and contributions are determined in accordance with provisions of negotiated labor contracts to meet their pension benefit obligations to their participants. Based upon the most currently available information, certain of these multiemployer plans are underfunded due partially to a decline in the value of the assets supporting these plans, a reduction in the number of actively participating members for whom employer contributions are required and the level of benefits provided by the plans. In addition, the U.S. Pension Protection Act, which went into effect in January 2008, requires underfunded pension plans to improve their funding ratios within prescribed intervals based on the level of their underfunding. As a result, our required contributions to these plans may increase in the future. Furthermore, under current law, a termination of, our voluntary withdrawal from or a mass withdrawal of all contributing employers from any underfunded multiemployer defined benefit plan to which we contribute would require us to make payments to the plan for our proportionate share of such multiemployer plan’s unfunded vested liabilities. Also, if a multiemployer defined benefit plan fails to satisfy certain minimum funding requirements, the Internal Revenue Service (“IRS”) may impose a nondeductible excise tax of 5% on the amount of the accumulated funding deficiency for those employers not contributing their allocable share of the minimum funding to the plan. Requirements to pay increased contributions, withdrawal liability and excise taxes could negatively impact our liquidity and results of operations.

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In the EU, pension funds are generally subject to the Institution for Occupational Retirement Provision Directive (Directive 2003/41/EC) (the “IORP Directive”) as implemented in the relevant EU Member States.  The IORP Directive provides for certain general solvency requirements but allows EU Member States discretion to impose specific national requirements.  As a result, the solvency of EU pension funds are mostly regulated on a national level.  On December 23, 2016, the new IORP Directive (“IORP Directive II”) was published on the Official Journal of the European Union and entered into force on January 12, 2017. The final version of IORP Directive II does not make substantive changes to the solvency requirements under the current IORP Directive.  The new IROP Directive recognizes in one of its recitals that changes in this area could potentially decrease the willingness of employers to provide occupational pension schemes. EU Member States now have until January 13, 2019 to implement IORP Directive II into national legislation.

The insurance coverage that we maintain may not fully cover all operational risks, and if the number or severity of claims for which we are self-insured increases, if we are required to accrue or pay additional amounts because the claims prove to be more severe than our recorded liabilities, if our insurance premiums increase or if we are unable to obtain insurance at acceptable rates or at all, our financial condition and results of operations may be materially adversely affected.

We maintain property, business interruption and casualty insurance but such insurance may not cover all of the risks associated with the hazards of our business and is subject to limitations, including deductibles and maximum liabilities covered. We may incur losses beyond the limits, or outside the coverage, of our insurance policies, including liabilities for environmental remediation. In the future, the types of insurance we obtain and the level of coverage we maintain may be inadequate or we may be unable to continue to maintain our existing insurance or obtain comparable insurance at a reasonable cost.

Our worker’s compensation, auto and general liability policies contain significant deductibles or self-insured retentions. We develop bi-yearly and record quarterly an estimate of our projected insurance-related liabilities. We estimate the liabilities associated with the risks retained by us, in part, by considering historical claims experience, demographic and severity factors and other actuarial assumptions. Any actuarial projection of losses is subject to a degree of variability. If the number or severity of claims for which we are self-insured increases, or we are required to accrue or pay additional amounts because the claims prove to be more severe than our original assessments, our financial condition and results of operations may be materially adversely affected. In addition, in the future, our insurance premiums may increase and we may not be able to obtain similar levels of insurance on reasonable terms or at all. Any such inadequacy of, or inability to obtain, insurance coverage could have a material adverse effect on our business, financial condition and results of operations.

We may not successfully identify and complete acquisitions on favorable terms or achieve anticipated synergies relating to any acquisitions, and such acquisitions could result in unknown liabilities, unforeseen operating difficulties and expenditures and require significant management resources.

We regularly review potential acquisitions of complementary businesses, services or products. However, we may be unable to identify suitable acquisition candidates in the future. Even if we identify appropriate acquisition candidates, we may be unable to complete or finance such acquisitions on favorable terms, if at all. In addition, the process of integrating an acquired business, service or product into our existing business and operations may result in unforeseen operating difficulties and expenditures. Integration of an acquired company also may require significant management resources that otherwise would be available for ongoing development of our business. Moreover, we may not realize the anticipated benefits of any acquisition or strategic alliance and such transactions may not generate anticipated financial results. Future acquisitions could also require us to incur debt, assume contingent liabilities or amortize expenses related to intangible assets, any of which could harm our business. Finally, acquisitions may be structured in such a manner that would result in the assumption of unknown liabilities not disclosed by the seller or uncovered during pre-acquisition due diligence.

Media campaigns related to feed and food ingredient production present risks.

Individuals or organizations can use social media platforms to publicize inappropriate or inaccurate stories or perceptions about the feed and food ingredient production industries or our company. Such practices could cause damage to the reputations of our company and/or the feed and food ingredient production industries in general. This damage could adversely affect our financial results.

Terrorist attacks or acts of war may cause damage or disruption to us and our employees, facilities, information systems, security systems, suppliers and customers, which could materially and adversely affect our net sales, costs and expenses and financial condition.

Terrorist attacks, such as those that occurred on September 11, 2001, have contributed to economic instability in the United States and in certain other countries, and further acts of terrorism, bioterrorism, cyberterrorism, violence or war could

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affect the markets in which we operate, our business operations, our expectations and other forward-looking statements contained in this report. The potential for future terrorist attacks, the U.S. and international responses to terrorist attacks and other acts of war or hostility, including the ongoing conflicts in the Middle East, North Korea and Ukraine, may cause economic and political uncertainties and cause our business to suffer in ways that cannot currently be predicted. Events such as those referred to above could cause or contribute to a general decline in investment valuations. In addition, terrorist attacks, particularly acts of bioterrorism, that directly impact our facilities or those of our suppliers or customers could have an impact on our sales, supply chain, production capability and costs and our ability to deliver our finished products.

We may be unable to protect our intellectual property rights.

We maintain valuable patents, trademarks, service marks, copyrights, trade names, trade secrets, proprietary technologies and similar intellectual property, and consider our intellectual property to be of material value. Our efforts to protect our intellectual property and proprietary rights may not be sufficient. Patents may not be issued for any pending or future patent applications owned by or licensed to us, and the claims allowed under any issued patents may not be sufficiently broad to protect our technology. Any issued patents owned by or licensed to us may be challenged, invalidated or circumvented, and the rights under these patents may not provide us with competitive advantages. In addition, competitors may design around our technology or develop competing technologies. Intellectual property rights may also be unavailable or limited in some foreign countries, which could make it easier for competitors to capture market position in such countries by utilizing technologies that are similar to those developed or licensed by us. If we do not obtain sufficient protection for our intellectual property, or if we are unable to effectively protect our intellectual property rights, our competitiveness could be impaired, which would limit our growth and future revenue. Any litigation to enforce our intellectual property rights, protect our trade secrets or determine the validity and scope of the proprietary rights of others could result in substantial costs and diversion of resources, with no assurance of success.

Our products, processes, methods, and equipment may infringe upon the intellectual property rights of others, which may cause us to incur unexpected costs or prevent us from selling our products.

We have in the past and may in the future be subject to legal proceedings and claims in the ordinary course of our business, including claims of alleged infringement of patents, trademarks and other intellectual property rights of third parties by us or our customers. Any such claims, whether or not meritorious, could result in costly litigation and divert the efforts of our management. Moreover, should we be found liable for infringement, we may be required to enter into licensing agreements (which may not be available on acceptable terms or at all) or to pay damages and cease making or selling certain products. Any of the foregoing could cause us to incur significant costs and prevent us from manufacturing or selling our products and thereby materially adversely affect our business, results of operations and financial condition.

The healthcare reform legislation in the United States and its implementation regulations could impact the healthcare benefits we are required to provide our employees in the United States and cause our compensation costs to increase, potentially reducing our net income and adversely affecting our cash flows.

In March 2010, the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Affordability Reconciliation Act (the “ACA”), were signed into law in the United States. This healthcare reform legislation and its applicable implementing regulations contain provisions that could materially impact our future healthcare costs, including the contributions we are required to make to our benefit plans. In particular, the requirement that we either offer our full-time employees healthcare coverage that satisfies the ACA's affordability and minimum value standards or potentially be subject to an excise tax penalty became effective in calendar year 2015. In addition, beginning in 2016, we had to file information returns with the IRS regarding the health insurance coverage offered to our full-time employees in the prior calendar year. While we have timely filed such returns to date, failure to do so in the future could expose us to reporting penalties under applicable sections of the Internal Revenue Code. These provisions could reduce our net income and adversely affect our cash flows.

The Trump administration and members of U.S. Congress have made statements and taken actions seeking to advance proposals to modify, repeal, replace with new legislation, or otherwise invalidate all or certain portions of the ACA. President Trump has also issued an executive order stating that it is his administration’s policy to seek the prompt repeal of the ACA, and directing executive departments and federal agencies to waive, defer, grant exemptions from, or delay the implementation of the provisions of the ACA to the maximum extent permitted by law. The newly enacted federal income tax law includes a provision repealing, effective January 1, 2019, the tax-based shared responsibility payment imposed by the ACA on certain individuals who fail to maintain qualifying health coverage for all or part of a year that is commonly referred to as the “individual mandate.” U.S. Congress may consider other legislation that would alter other aspects of the ACA. There is uncertainty with respect to the impact that the reform proposals from the President’s administration and U.S. Congress may have, if any, including whether legislative reform will be enacted and whether any proposals will encompass or potentially alter the full-time employee healthcare coverage requirements and reporting obligations imposed on large employers like us. Any changes may likely take time to unfold, and we

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cannot predict the ultimate content, timing, or effect of any healthcare reform legislation or the impact of potential legislation or related proposals and policies on us.

Because of our prior acquisitions and future acquisitions we may engage in, our historical operating results may be of limited use in evaluating our historical performance and predicting our future results.

Darling has acquired a number of businesses in recent years, including Rothsay and VION Ingredients, and we expect that we will engage in acquisitions of other businesses from time to time in the future. The operating results of the acquired businesses are included in our financial statements from the date of the completion of such acquisitions. All of Darling’s acquisitions have been accounted for using the acquisition method of accounting. Use of this method has resulted in a new valuation of the assets and liabilities of the acquired companies. We expect a substantial increase in our depreciation and amortization and reduction in our operating and net income commensurate with such increase. As a result of these acquisitions and any future acquisitions, our historical operating results may be of limited use in evaluating our historical performance and predicting our future results.

We may incur significant charges in the event we close or divest all or part of a manufacturing plant or facility.

We periodically assess our manufacturing operations in order to manufacture and distribute our products in the most efficient manner. Based on our assessments, we may make capital improvements to modernize certain units, move manufacturing or distribution capabilities from one plant or facility to another plant or facility, discontinue manufacturing or distributing certain products or close or divest all or part of a manufacturing plant or facility. The closure or divestiture of all or part of a manufacturing plant or facility could result in future charges that could be significant.

The vote by the United Kingdom mandating its withdrawal from the EU could have an adverse affect on our business, investments and future operations in Europe.

The vote on June 23, 2016 by the United Kingdom (the “UK”) to exit the EU, or Brexit, has created uncertainty in the global financial markets, but the eventual effects of the UK’s withdrawal from the EU on our business or our investment portfolios are uncertain at this time. On March 29, 2017, the Prime Minister of the UK notified the European Council in accordance with Article 50 of the Treaty on European Union of the United Kingdom’s intention to withdraw from the EU, triggering a two-year period for the negotiation of the UK’s withdrawal from the EU. The effect of Brexit on our business and investments is uncertain as negotiations commence to determine the future terms of the UK relationship with the EU. The effects of the UK’s withdrawal from the EU will depend on agreements the UK makes to retain access to EU markets either during a transitional period or more permanently. Brexit could impair the ability of Darling Ingredients International to transact business in the future in the UK, including by restricting the free travel of employees from and to the UK and through legal uncertainty and potentially divergent national laws and regulations as the UK determines which EU laws to replace or replicate. Furthermore, Brexit is likely to continue to adversely affect European and worldwide economic conditions and could contribute to greater instability in the global financial markets before and after the terms of the UK’s future relationship with the EU are settled. These effects could have an adverse effect on our business, investments and future operations in Europe.

Risks Related to our Common Stock

The market price of our common stock has been and may continue to be volatile, which could cause the value of your investment to decline.

The market price of our common stock has been subject to volatility and, in the future, the market price of our common stock could fluctuate widely in response to numerous factors, many of which are beyond our control. Numerous factors, including many over which we have no control, may have a significant impact on the market price of our common stock. In addition to the risk factors discussed in this report, the price and volume volatility of our common stock may be affected by:

• 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;

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• 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.

Future sales of our common stock or the issuance of other equity may adversely affect the market price of our common stock.

We are not restricted from issuing additional common stock, including securities that are convertible into or exchangeable for, or that represent the right to receive, common stock. The issuance of additional shares of our common stock or convertible securities, including our outstanding options, or otherwise, will dilute the ownership interest of our common stockholders.

Sales of a substantial number of shares of our common stock or other equity-related securities in the public market could depress the market price of our common stock and impair our ability to raise capital through the sale of additional equity securities. We cannot predict the effect that future sales of our common stock or other equity-related securities would have on the market price of our common stock.

Our common stock is an equity security and is subordinate to our existing and future indebtedness.

Shares of our common stock are equity interests and do not constitute indebtedness. As such, the shares of common stock will rank junior to all of our indebtedness, including our trade debt, and to other non-equity claims on us and our assets available to satisfy claims on us, including claims in a bankruptcy, liquidation or similar proceedings. Our existing indebtedness restricts, and future indebtedness may restrict, payment of dividends on the common stock.

Unlike indebtedness, where principal and interest customarily are payable on specified due dates, in the case of common stock, (i) dividends are payable only when and if declared by our board of directors or a duly authorized committee of the board and (ii) as a corporation, we are restricted under applicable Delaware law to making dividend payments and redemption payments only from legally available assets. Further, under our certificate of incorporation, there are no restrictions on our business or operations or on our ability to incur indebtedness or engage in any transactions arising as to our common stock, subject only to the voting rights available to stockholders generally.

In addition, our rights to participate in the assets of any of our subsidiaries upon any liquidation or reorganization of any subsidiary will be subject to the prior claims of that subsidiary’s creditors (except to the extent we may ourselves be a creditor of that subsidiary), including that subsidiary’s trade creditors and our creditors who have obtained or may obtain guarantees from the subsidiaries. As a result, our common stock will be subordinated to our and our subsidiaries’ obligations and liabilities, which currently include borrowings and guarantees. See Item 7. “Management Discussion and Analysis of Financial Condition and Results of Operations” - “Senior Secured Credit Facilities,” “5.375% Senior Notes due 2022” and “4.75% Senior Notes due 2022.”

Our ability to pay any dividends on our common stock may be limited and, consequently, your ability to achieve a return on your investment will depend on appreciation in the price of our common stock.

We have not paid any dividends on our common stock since January 3, 1989 and we have no current plans to do so. Our current financing arrangements permit us to pay cash dividends on our common stock within limitations defined by the terms of our existing indebtedness, including our senior secured credit facility, 5.375% senior notes due 2022 and 4.75% senior notes due 2022 and any other indentures or other financing arrangements that we enter into in the future. For example, our senior secured credit facility restricts our ability to make payments of dividends in cash if certain coverage ratios are not met. Even if such coverage ratios are met in the future, any determination to pay cash dividends on our common stock will be at the discretion of our board of directors and will be based upon our financial condition, operating results, capital requirements, plans for expansion,

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business opportunities, restrictions imposed by any of our financing arrangements, provisions of applicable law and any other factors that our board of directors determines are relevant at that point in time.

The issuance of shares of preferred stock could adversely affect holders of common stock, which may negatively impact your investment.

Our board of directors is authorized to cause us to issue classes or series of preferred stock without any action on the part of our stockholders. The board of directors also has the power, without stockholder approval, to set the terms of any such classes or series of preferred shares that may be issued, including the designations, preferences, limitations and relative rights senior to the rights of our common stock with respect to dividends or upon the liquidation, dissolution or winding up of our business and other terms. If we issue preferred shares in the future that have a preference over the common stock with respect to the payment of dividends or upon liquidation, dissolution or winding up, or if we issue preferred shares with voting rights that dilute the voting power of the common stock, the rights of holders of the common stock or the market price of the common stock could be adversely affected. As of the date of this report, we have no outstanding shares of preferred stock but we have available for issuance 1,000,000 authorized but unissued shares of preferred stock.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2. PROPERTIES

As of December 30, 2017, the Company's corporate headquarters is located at 251 O’Connor Ridge Boulevard, Suite 300, Irving, Texas, 75038.

As of December 30, 2017, the Company operates a global network of over 200 locations, including 141 production facilities, across five continents. All of the processing facilities are owned except for 14 leased facilities and the Company owns or leases a network of transfer stations. The following is a listing of a majority of the Company's operating plants as of December 30, 2017 by operating segment with a description of the plants principal process.

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
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

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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
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

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Wenzhou, 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

Rent expense for our leased properties was $9.0 million in the aggregate in fiscal 2017.

ITEM 3. LEGAL PROCEEDINGS

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 30, 2017 and December 31, 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 $61.4 million and $51.9 million, respectively.  The Company has insurance recovery receivables of approximately $25.0 million and $15.9 million as of December 30, 2017 and December 31, 2016, related to 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

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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. In January 2017, the Company entered into a non-binding letter of intent with the City of Fresno pursuant to which the City and the Company will work toward the execution of a definitive agreement to relocate the facility to a different location in Fresno. Whether an agreement to relocate the facility ultimately gets executed is subject to the Company’s receipt of certain incentives and an agreement by the Concerned Citizens of West Fresno to settle and dismiss the aforementioned litigation. 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.

The Company is engaged in other legal proceedings from time to time. The proceedings described above and such other proceedings can be complex and take many months, or even years, to reach resolution, with the final outcome being dependent upon a number of variables, some of which are not within the control of the Company. Therefore, although the Company will vigorously defend itself in each of the described actions, the ultimate resolution and potential financial impact on the Company is uncertain.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

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PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

The Company’s common stock is traded on the New York Stock Exchange (“NYSE”) under the symbol “DAR”.  The following table sets forth, for the quarters indicated, the high and low closing sales prices per share for the Company's common stock as reported on the NYSE.

	Market Price
Fiscal Quarter	High		Low
2017:
First Quarter	$	14.69	$	11.65
Second Quarter	$	16.56	$	14.22
Third Quarter	$	18.27	$	15.60
Fourth Quarter	$	18.29	$	16.07
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

On February 21, 2018, the closing sales price of the Company's common stock on the NYSE was $18.19.  The Company has been notified by its stock transfer agent that as of February 21, 2018, there were 139 holders of record of the common stock.

The Company has not paid any dividends on its common stock since January 3, 1989 and does not expect to pay cash dividends in 2018.  The agreements underlying the Company's senior secured credit facilities and senior notes permit the Company to pay cash dividends on its common stock within limitations defined in such agreements.  Any future determination to pay cash dividends on the Company’s common stock will be at the discretion of the Company’s board of directors and will be based upon the Company’s financial condition, operating results, capital requirements, plans for expansion, restrictions imposed by any existing or future financing arrangements, and any other factors that the board of directors determines are relevant.

Set forth below is a line graph comparing the change in the cumulative total stockholder return on the Company's common stock with the cumulative total return of the Russell 2000 Index, the Dow Jones US Waste and Disposal Service Index, and the Agri-Equities Index - Tier One for the period from December 29, 2012 to December 30, 2017, assuming the investment of $100 on December 29, 2012 and the reinvestment of dividends.

The stock price performance shown on the following graph only reflects the change in the Company's stock price relative to the noted indices and is not necessarily indicative of future price performance.

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EQUITY COMPENSATION PLANS

The information required by this Item with respect to Item 201(d) of Regulation S-K appears in Item 12 of this report.

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ITEM 6. SELECTED FINANCIAL DATA

SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA

The following table presents selected consolidated historical financial data for the periods indicated.  The selected historical consolidated financial data set forth below should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the Consolidated Financial Statements of the Company for the three years ended December 30, 2017, December 31, 2016, and January 2, 2016, and the related notes thereto.

	Fiscal 2017			Fiscal 2016			Fiscal 2015			Fiscal 2014			Fiscal 2013
	Fifty-two			Fifty-two			Fifty-two			Fifty-three			Fifty-two
	Weeks Ended			Weeks Ended			Weeks Ended			Weeks Ended			Weeks Ended
	December 30,			December 31,			January 2,			January 3,			December 28,
	2017			2016 (j)			2016 (j)			2015 (h)			2013 (g)
	(dollars in thousands, except per share data)
Statement of Operations Data:
Net sales (i), (j)	$	3,662,251		$	3,391,928		$	3,391,255		$	3,956,443		$	1,802,268
Cost of sales and operating expenses (a), (i), (j)	2,875,851			2,635,547			2,654,025			3,123,171			1,339,819
Selling, general and administrative expenses (c), (j)	347,487			314,005			316,383			374,580			170,825
Depreciation and amortization	302,100			289,908			269,904			269,517			98,787
Acquisition and integration costs	—			401			8,299			24,667			23,271
Operating income	136,813			152,067			142,644			164,508			169,566
Interest expense (b)	88,926			94,187			105,530			135,416			38,108
Foreign currency (gain)/loss (d)	6,898			1,854			4,911			13,548			(28,107		)
Other (income)/expense, net, (c)	5,293			3,866			6,839			(299		)	3,547
Equity in net (income)/loss of unconsolidated subsidiary	(28,504		)	(70,379		)	(73,416		)	(65,609		)	(7,660		)
Income from continuing operations before income taxes	64,200			122,539			98,780			81,452			163,678
Income tax (benefit)/expense	(69,154		)	15,315			13,501			13,141			54,711
Net Income	$	133,354		$	107,224		$	85,279		$	68,311		$	108,967
Net Income attributable to minority interests	(4,886		)	(4,911		)	(6,748		)	(4,096		)	—
Net Income attributable to Darling	$	128,468		$	102,313		$	78,531		$	64,215		$	108,967
Basic earnings per common share	$	0.78		$	0.62		$	0.48		$	0.39		$	0.91
Diluted earnings per common share	$	0.77		$	0.62		$	0.48		$	0.39		$	0.91
Weighted average shares outstanding	164,752			164,600			165,031			164,627			119,526
Diluted weighted average shares outstanding	166,730			165,212			165,119			165,059			119,924
Other Financial Data:
Adjusted EBITDA  (e)	$	438,913		$	441,975		$	412,548		$	434,025		$	268,353
Depreciation	224,125			212,217			186,595			185,955			66,691
Amortization	77,975			77,691			83,309			83,562			32,096
Capital expenditures (f)	274,168			243,523			229,848			228,918			118,307
Balance Sheet Data:
Working capital (k)	$	396,962		$	441,451		$	490,120		$	525,211		$	950,698
Total assets (k)	4,958,225			4,698,017			4,760,619			5,126,547			3,244,133
Current portion of long-term debt (k)	16,143			23,247			45,166			54,401			19,888
Total long-term debt less current portion (k)	1,698,050			1,727,696			1,885,851			2,098,039			866,947
Stockholders’ equity attributable to Darling	2,244,933			1,972,994			1,870,709			1,952,990			2,020,952

(a) Included in fiscal 2014 are non-cash charges for the step-up of inventory acquired in the acquisition of Darling Ingredients International business 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. 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.

(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 2015 is a write-off of property and other costs for fire and casualty losses of approximately $3.0 million for fire and casualty losses in Canada, the Netherlands and Brazil. In addition, fiscal 2015 includes approximately $1.8 million for a legal settlement.

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(d) 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 purchase price for the Company's Darling Ingredients International business.

(e) 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 30, 2017.  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.

Reconciliation of Net Income to Adjusted EBITDA

(dollars in thousands)	December 30, 2017			December 31, 2016			January 2, 2016			January 3, 2015			December 28, 2013
Net income attributable to Darling	$	128,468		$	102,313		$	78,531		$	64,215		$	108,967
Depreciation and amortization	302,100			289,908			269,904			269,517			98,787
Interest expense	88,926			94,187			105,530			135,416			38,108
Income tax (benefit)/expense	(69,154		)	15,315			13,501			13,141			54,711
Other, net	12,191			5,720			11,750			13,249			(24,560		)
Equity in net income of unconsolidated subsidiaries	(28,504		)	(70,379		)	(73,416		)	(65,609		)	(7,660		)
Net income attributable to noncontrolling interests	4,886			4,911			6,748			4,096			—
Adjusted EBITDA	$	438,913		$	441,975		$	412,548		$	434,025		$	268,353

(f) Fiscal 2017, fiscal 2016 and fiscal 2015 excludes the capital assets acquired in immaterial acquisitions. Fiscal 2014 excludes the capital assets acquired with the Darling Ingredients International business 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.

(g) 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.

(h) Subsequent to the date of acquisition, fiscal 2014 includes 52 weeks of contribution from the acquisition of the Darling Ingredients International business and 14 weeks of contribution from the Custom Blenders acquisition.

(i) Includes certain reclassifications from net sales to cost of sales and operating expenses of approximately $78.7 million in fiscal 2013 to conform to fiscal 2014 through fiscal 2017 presentation.

(j) Includes certain reclassifications from net sales to cost of sales and operating expenses of approximately $6.2 million in fiscal 2016 and includes certain reclassifications from net sales to selling, general and administrative expenses of approximately $6.2 million in fiscal 2015 to conform to fiscal 2017 presentation.

(k) 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.

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ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements that involve risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including those set forth below under the heading “Forward Looking Statements” and in Item 1A of this report under the heading “Risk Factors.”

Fiscal 2017 Overview

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. With operations on five continents, the Company collects and transforms all aspects of animal by-product streams into useable and specialty ingredients, such as gelatin, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstocks, green energy, natural casings and hides. The Company also recovers and converts recycled oils (used cooking oil and animal fats) into valuable feed and fuel ingredients, and collects and processes residual bakery products into feed ingredients.  In addition, the Company provides environmental services, such as grease trap collection and disposal services to food service establishments and disposal services for waste solids from the wastewater treatment systems of industrial food processing plants. The Company sells its products domestically and internationally and operates within three industry segments: Feed Ingredients, Food Ingredients and Fuel Ingredients.

The Feed Ingredients operating segment includes the Company's global activities related to (i) the collection and processing of beef, poultry and pork animal by-products in North America and Europe into non-food grade oils and protein meals, (ii) the collection and processing of bakery residuals in North America into Cookie Meal®, which is predominantly used in poultry and swine rations, (iii) the collection and processing of used cooking oil in North America into non-food grade fats, (iv) the collection and processing of porcine and bovine blood in China, Europe, North America and Australia into blood plasma powder and hemoglobin, (v) the processing of selected portions of slaughtered animals into a variety of meat products for use in pet food, (vi) the processing of cattle hides and hog skins in North America and cattle hides in Europe, (vii) the production of organic fertilizers using protein produced from the Company’s animal by-products processing activities in North America and Europe, and (viii) the provision of grease trap services to food service establishments and environmental services to food processors in North America. Non-food grade oils and fats produced and marketed by the Company are principally sold to third parties to be used as ingredients in animal feed and pet food, as an ingredient for the production of biodiesel and renewable diesel, or to the oleo-chemical industry to be used as an ingredient in a wide variety of industrial applications. Protein meals, blood plasma powder and hemoglobin produced and marketed by the Company are sold to third parties to be used as ingredients in animal feed, pet food and aquaculture.

The Food Ingredients operating segment includes the Company's global activities related to (i) the purchase and processing of beef and pork bone chips, beef hides, pig skins, and fish skins into gelatin and hydrolyzed collagen in Europe, China, South America and North America, (ii) the collection and processing of porcine and bovine intestines into natural casings in Europe, China and North America, (iii) the extraction and processing of porcine mucosa into crude heparin in Europe, for the application in the pharmaceutical industry (iv) the collection and refining of animal fat into food grade fat in Europe, and (v) the processing of bones to bone chips for the gelatin industry and bone ash. Gelatins produced and marketed by the Company are sold to third parties to be used as ingredients in the pharmaceutical, nutraceutical, food, and technical (e.g., photographic) industries. Natural casings produced and marketed by the Company are sold to third parties to be used as an ingredient in the production of sausages and other similar food products.

The Fuel Ingredients operating segment includes the Company's global activities related to (i) the conversion of animal fats and recycled greases into biodiesel in North America, (ii) the conversion of organic sludge and food waste into biogas in Europe, (iii) the collection and conversion of fallen stock and certain animal by-products pursuant to applicable E.U. regulations into low-grade energy sources to be used in industrial applications, (iv) the processing of manure into natural bio-phosphate in Europe, and (v) the Company’s share of the results of its equity investment in Diamond Green Diesel Holdings LLC, a joint venture with Valero Energy Corporation (“Valero”) (the “DGD Joint Venture”), to convert animal fats, recycled greases, used cooking oil, inedible corn oil, soybean oil, or other feedstocks that become economically and commercially viable into renewable diesel as described in Note 7 to the Company's Consolidated Financial Statement for the period ended December 30, 2017 included herein.

Corporate Activities principally includes unallocated corporate overhead expenses, acquisition-related expenses, interest expense net of interest income, and other non-operating income and expenses.

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Operating Performance Indicators

The Company is exposed to certain risks associated with a business that is influenced by agricultural-based commodities. These risks are further described in Item 1A of this report under the heading “Risk Factors.”

The Company’s Feed Ingredients segment animal by-products, bakery residuals, used cooking oil recovery, and blood operations are each influenced by prices for agricultural-based alternative ingredients such as corn, soybean oil, soybean meal, and palm oil. In these operations, the costs of the Company's raw materials change with, or in certain cases are indexed to, the selling price or the anticipated selling price of the finished goods produced from the acquired raw materials and/or in some cases, the price spread between various types of finished products. The Company believes that this methodology of procuring raw materials generally establishes a relatively stable gross margin upon the acquisition of the raw material. Although the costs of raw materials for the Feed Ingredients segment are generally based upon actual or anticipated finished goods selling prices, rapid and material changes in finished goods prices, including competing agricultural-based alternative ingredients, generally have an immediate and often times, material impact on the Company’s gross margin and profitability resulting from the brief lapse of time between the procurement of the raw materials and the sale of the finished goods. In addition, the amount of raw material volume acquired, which has a direct impact on the amount of finished goods produced, can also have a material effect on the gross margin reported, as the Company has a substantial amount of fixed operating costs.

The Company’s Food Ingredients segment gelatin and natural casings products are influenced by other competing ingredients including plant-based and synthetic hydrocolloids and artificial casings. In the gelatin operation, in particular, the cost of the Company's animal-based raw material moves in relationship to the selling price of the finished goods. The processing time for the Food Ingredients segment gelatin and casings is generally 30 to 60 days, which is substantially longer than the Company's Feed Ingredients segment animal by-products operations. Consequently, the Company’s gross margin and profitability in this segment can be influenced by the movement of finished goods prices from the time the raw materials were procured until the finished goods are sold.

The Company's Fuel Ingredients segment converts fats into renewable diesel, organic sludge and food waste into biogas, and fallen stock into low-grade energy sources. The Company's gross margin and profitability in this segment are impacted by world energy prices for oil, electricity and natural gas.

The reporting currency for the Company's financial statements is the U.S. dollar. The Company operates in over 15 countries and therefore, certain of the Company's assets, liabilities, revenues and expenses are denominated in functional currencies other than the U.S. dollar, primarily in the euro, Brazilian real, Chinese renminbi, Canadian dollar, Argentine peso, Japanese yen and Polish zloty. To prepare the Company's consolidated financial statements, assets, liabilities, revenues, and expenses must be translated into U.S. dollars at the applicable exchange rate. As a result, increases or decreases in the value of the U.S. dollar against these other currencies will affect the amount of these items recorded in the Company's consolidated financial statements, even if their value has not changed in the functional currency. This could have a significant impact on the Company's results, if such increase or decrease in the value of the U.S. dollar relative to these other currencies is substantial.

The Company monitors the performance of its business segments using key financial metrics such as results of operations, non-GAAP measurements (Adjusted EBITDA), segment operating income, raw material processed, gross margin percentage, foreign currency translation, and corporate activities. The Company’s operating results can vary significantly due to changes in factors such as the fluctuation in energy prices, weather conditions, crop harvests, government policies and programs, changes in global demand, changes in standards of living, protein consumption, and global production of competing ingredients. Due to these unpredictable factors that are beyond the control of the Company, forward-looking financial or operational estimates are not provided.

Results of Operations

Fiscal Year Ended December 30, 2017 Compared to Fiscal Year Ended December 31, 2016

Operating Performance Metrics

Other operating performance metrics indicators which management routinely monitors as an indicator of operating performance include:

• Finished product commodity prices

• Segment results

• Foreign currency

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• Corporate activities

• Non-U.S. GAAP measures

These indicators and their importance are discussed below.

Finished Product Commodity Prices

Prices for finished product commodities that the Company produces in the Feed Ingredients segment are reported each business day on the Jacobsen Index (the “Jacobsen”), an established North American trading exchange price publisher. The Jacobsen reports industry sales from the prior day's activity by product. Included on the Jacobsen are reported prices for finished products such as protein (primarily meat and bone meal (“MBM”), poultry meal (“PM”) and feather meal (“FM”)), hides, fats (primarily bleachable fancy tallow (“BFT”) and yellow grease (“YG”)) and corn, which is a substitute commodity for the Company's bakery by-product (“BBP”) as well as a range of other branded and value-added products, which are products of the Company's Feed Ingredients segment. In the U.S. the Company regularly monitors the Jacobsen for MBM, PM, FM, BFT, YG and corn because it provides a daily indication of the Company's U.S. revenue performance against business plan benchmarks. In Europe, the Company regularly monitors Thomson Reuters (“Reuters”) to track the competing commodities palm oil and soy meal.

Although the Jacobsen and Reuters provide useful metrics of performance, the Company's finished products are commodities that compete with other commodities such as corn, soybean oil, palm oil complex, soybean meal and heating oil on nutritional and functional values. Therefore, actual pricing for the Company's finished products, as well as competing products, can be quite volatile. In addition, neither the Jacobsen nor Reuters provides forward or future period pricing for the Company's commodities. The Jacobsen and Reuters prices quoted below are for delivery of the finished product at a specified location. Although the Company's prices generally move in concert with reported Jacobsen and Reuters prices, the Company's actual sales prices for its finished products may vary significantly from the Jacobsen and Reuters because of production and delivery timing differences and because the Company's finished products are delivered to multiple locations in different geographic regions which utilize alternative price indexes. In addition, certain of the Company's premium branded finished products may sell at prices that may be higher than the closest product on the related Jacobsen or Reuters index. During fiscal 2017, the Company's actual sales prices by product trended with the disclosed Jacobsen and Reuters prices.

Average Jacobsen and Reuters prices (at the specified delivery point) for fiscal 2017, compared to average Jacobsen and Reuters prices for fiscal 2016 are:

	Avg. Price Fiscal 2017	Avg. Price Fiscal 2016	Increase/(Decrease)	% Increase/(Decrease)
Jacobsen:
MBM (Illinois)	$ 259.54/ton	$ 274.51/ton	$ (14.97)/ton	(5.5	)%
Feed Grade PM (Mid-South)	$ 277.42/ton	$ 300.12/ton	$ (22.70)/ton	(7.6	)%
Pet Food PM (Mid-South)	$ 623.89/ton	$ 557.17/ton	$ 66.72/ton	12.0	%
Feather meal (Mid-South)	$ 395.84/ton	$ 356.40/ton	$ 39.44/ton	11.1	%
BFT (Chicago)	$ 31.93/cwt	$   29.75/cwt	$      2.18/cwt	7.3	%
YG (Illinois)	$ 24.95/cwt	$   23.77/cwt	$   1.18/cwt	5.0	%
Corn (Illinois)	$ 3.59/bushel	$ 3.70/bushel	$ (0.11)/bushel	(3.0	)%
Reuters:
Palm Oil (CIF Rotterdam)	$ 711.00/ton	$ 698.00/ton	$ 13.00/ton	1.9	%
Soy meal (CIF Rotterdam)	$ 351.00/ton	$ 375.00/ton	$ (24.00)/ton	(6.4	)%

The following table shows the average Jacobsen and Reuters prices for the fourth quarter of fiscal 2017, compared to the average Jacobsen and Reuters prices for the third quarter of fiscal 2017.

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	Avg. Price 4th Quarter 2017	Avg. Price 3rd Quarter 2017	Increase/(Decrease)	% Increase/(Decrease)
Jacobsen:
MBM (Illinois)	$ 222.73/ton	$ 292.83/ton	$ (70.10)/ton	(23.9	)%
Feed Grade PM (Mid-South)	$ 252.22/ton	$ 285.14/ton	$ (32.92)/ton	(11.5	)%
Pet Food PM (Mid-South)	$ 593.74/ton	$ 577.02/ton	$ 16.72/ton	2.9	%
Feather meal (Mid-South)	$ 361.46/ton	$ 408.82/ton	$ (47.36)/ton	(11.6	)%
BFT (Chicago)	$ 27.40/cwt	$   35.36/cwt	$    (7.96)/cwt	(22.5	)%
YG (Illinois)	$ 23.18/cwt	$   27.20/cwt	$   (4.02)/cwt	(14.8	)%
Corn (Illinois)	$ 3.38/bushel	$ 3.56/bushel	$ (0.18)/bushel	(5.1	)%
Reuters:
Palm Oil (CIF Rotterdam)	$ 702.00/ton	$ 687.00/ton	$ 15.00/ton	2.2	%
Soy meal (CIF Rotterdam)	$ 356.00/ton	$ 337.00/ton	$ 19.00/ton	5.6	%

Segment Results

Segment operating income for the fiscal year ended December 30, 2017 was $136.8 million, which reflects a decrease of $15.3 million or (10.1)% as compared to the fiscal year ended December 31, 2016.

	Feed Ingredients			Food Ingredients			Fuel Ingredients			Corporate			Total
Fiscal Year Ended December 30, 2017
Net Sales	$	2,239,492		$	1,156,976		$	265,783		$	—		$	3,662,251
Cost of sales and operating expenses	1,744,768			920,575			210,508			—			2,875,851
Gross Margin	494,724			236,401			55,275			—			786,400
Gross Margin %	22.1		%	20.4		%	20.8		%	—		%	21.5		%
Selling, general and administrative expense	180,866			104,982			10,467			51,172			347,487
Depreciation and amortization	184,172			75,010			31,019			11,899			302,100
Segment operating income/ (loss)	129,686			56,409			13,789			(63,071		)	136,813
Equity in net income of unconsolidated subsidiaries	265			—			28,239			—			28,504
Segment income	129,951			56,409			42,028			(63,071		)	165,317

	Feed Ingredients			Food Ingredients			Fuel Ingredients			Corporate			Total
Fiscal Year Ended December 31, 2016
Net Sales	$	2,089,145		$	1,055,725		$	247,058		$	—		$	3,391,928
Cost of sales and operating expenses	1,624,858			828,223			182,466			—			2,635,547
Gross Margin	464,287			227,502			64,592			—			756,381
Gross Margin %	22.2		%	21.5		%	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

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Feed Ingredients Segment

Raw material volume. Overall, in the fiscal year 2017, the raw material processed by the Company's Feed Ingredients segment totaled 8.24 million metric tons. Compared to the fiscal year 2016 overall raw material volume processed in the Feed Ingredients segment increased approximately 3.4%.

Sales. During the year ended December 30, 2017, net sales for the Feed Ingredients segment were $2,239.5 million as compared to $2,089.1 million for the year ended December 31, 2016, an increase of approximately $150.4 million. Net sales for fats were approximately $648.3 million and $574.6 million for the years ended December 30, 2017 and December 31, 2016, respectively. Protein net sales were approximately $816.1 million and $769.4 million for the years ended December 30, 2017 and December 31, 2016, respectively. Other rendering net sales, which include hides, pet food, and service charges, were approximately $286.2 million and $269.1 million for the years ended December 30, 2017 and December 31, 2016, respectively. Total rendering net sales were approximately $1,750.6 million and $1,613.1 million for the years ended December 30, 2017 and December 31, 2016, respectively. Used cooking oil net sales were approximately $185.5 million and $165.1 million for the years ended December 30, 2017 and December 31, 2016, respectively. Bakery net sales were approximately $209.8 million and $220.4 million for the years ended December 30, 2017 and December 31, 2016, respectively, and other sales, which includes trap services, industrial residual services and organic fertilizer net sales were approximately $93.6 million and $90.5 million for the years ended December 30, 2017 and December 31, 2016, respectively.

The increase in net sales for the Feed Ingredients segment was primarily due to the following (in millions of dollars):

	Fats		Proteins		Other Rendering		Total Rendering		Used Cooking Oil		Bakery			Other		Total
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
Increase/(decrease) in sales volumes	35.2		29.0		—		64.2		1.1		(6.7		)	—		58.6
Increase/(decrease) in finished product prices	35.2		10.6		—		45.8		19.0		(3.9		)	—		60.9
Increase/(decrease) due to currency exchange rates	3.3		7.1		3.1		13.5		0.3		—			—		13.8
Other change	—		—		14.0		14.0		—		—			3.1		17.1
Total change	73.7		46.7		17.1		137.5		20.4		(10.6		)	3.1		150.4
Net sales year ended December 30, 2017	$	648.3	$	816.1	$	286.2	$	1,750.6	$	185.5	$	209.8		$	93.6	$	2,239.5

Margins. In the Feed Ingredients segment for fiscal year 2017, the gross margin percentage was 22.1% as compared to 22.2% for fiscal 2016.

Segment operating income. Feed Ingredients operating income for fiscal year 2017 was $129.7 million, an increase of $13.9 million as compared to fiscal year 2016. Earnings in the Feed Ingredients segment were up from the prior year due to overall increase in sales volumes, higher finished product prices for fats and certain finished protein products and an increase in raw material volumes.

Food Ingredients Segment

Raw material volume. Overall, in the fiscal year 2017, the raw material processed by the Company's Food Ingredients segment totaled 1.12 million metric tons. Compared to the fiscal year 2016 overall raw material volume processed in the Food Ingredients segment increased approximately 2.9%.

Sales. Overall sales increased in the Food Ingredients segment as a result of higher sales volumes in both the gelatin and casing businesses.

Margins. In the Food Ingredients segment for fiscal year 2017, the gross margin percentage was 20.4% as compared to 21.5% for fiscal 2016. The decrease was primarily the result of operational inefficiencies and macroeconomic factors in the South American gelatin market in the first half of fiscal 2017.

Segment operating income. Food Ingredients operating income was $56.4 million for fiscal 2017, a decrease of $4.8 million or (7.8)% as compared to fiscal 2016. The earnings in the gelatin business were down as compared to the prior year primarily due to lower earnings in the Company's South American gelatin business due to margin compression influenced by

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operating inefficiencies and macroeconomic factors in the first half of fiscal 2017. The casings business delivered improved performance due to overall high demand that slightly offset lower earnings in the gelatin business. Additionally, selling, general and administrative expense in the Food Ingredients segment increased approximately $8.8 million primarily due to a reduction of currency hedge gains in fiscal 2017 as compared to the same period in fiscal 2016.

Fuel Ingredients Segment

Raw material volume. Overall, in the fiscal year 2017, the raw material processed by the Company's Fuel Ingredients segment totaled 1.19 million metric tons. Compared to the fiscal year 2016 overall raw material volume processed in the Fuel Ingredients segment increased approximately 0.5%.

Sales. Overall sales increased in the Fuel Ingredients segment due to generally higher fat prices going to the biofuels market in fiscal 2017 as compared to the same period in fiscal 2016.

Margins. In the Fuel Ingredients segment (exclusive of the equity contribution from the DGD Joint Venture) for fiscal year 2017, the gross margin percentage was 20.8% as compared to 26.1% for fiscal 2016. This decrease was primarily due to the lack of the blenders tax credits in the U.S. for the fiscal year 2017 as compared to the same period in fiscal 2016 and curtailed operations at Ecoson to address current regulatory requirements.

Segment operating income. Exclusive of the DGD Joint Venture, Fuel Ingredients operating income for fiscal year 2017 was $13.8 million, a decrease of $15.4 million as compared to fiscal year 2016. The decrease for fiscal 2017 is primarily a result of the absence of the blenders tax credits in U.S. and curtailed operations at Ecoson to address current regulatory requirements. Fiscal 2016 included blenders tax credits.

Foreign Currency

During fiscal 2017, the U.S. dollar weakened against most of the other functional currencies used by the Company's non-domestic operations when compared to fiscal 2016. Using actual results for fiscal year 2017 and the prior year's average foreign currency rates for fiscal 2016 would result in a decrease in operating income of approximately $5.7 million. The average rates assumption used in this calculation was the actual fiscal average rate for fiscal year 2017 of €1.00:USD$1.13 and CAD$1.00:USD$0.77 as compared to the average rate for fiscal year 2016 of €1.00:USD$1.11 and CAD$1.00:USD$0.76, respectively.

Corporate Activities

Selling, General and Administrative Expenses.  Selling, general and administrative expenses were $51.2 million during fiscal year 2017, a $9.9 million increase from $41.3 million during fiscal year 2016. The increase is primarily due to corporate related benefits that was partially offset by a settlement gain of approximately $2.1 million recorded in 2017 from a previous acquisition. 

Acquisition and Integration Costs.  There were no acquisition and integration costs during the twelve months ended December 30, 2017, as compared to $0.4 million in the twelve months ended December 31, 2016.

Depreciation and Amortization.  Depreciation and amortization charges decreased $0.5 million to $11.9 million during fiscal year 2017 as compared to $12.4 million during fiscal year 2016.  The decrease was due to certain of the Company's corporate assets becoming fully depreciated as compared to the same period in fiscal 2016.

Interest Expense. Interest expense was $88.9 million for fiscal year 2017, compared to $94.2 million for fiscal year 2016, a decrease of $5.3 million. The decrease is primarily due to a reduction in interest incurred as a result of the payments on the term loan debt outstanding and a reduction in deferred loan cost amortization in fiscal year 2017 as compared to fiscal year 2016.

Foreign Currency Gains/(Losses).  Foreign currency losses were $6.9 million during fiscal year 2017, as compared to a loss of approximately $1.9 million for fiscal year 2016. The increase in foreign currency losses was primarily due to losses on non-designated foreign exchange hedge contracts as compared to the same period in fiscal 2016.

Other Income/Expense. Other expense was $5.3 million for fiscal year 2017, compared to $3.9 million in fiscal year 2016.  The increase in other expense for fiscal year 2017 as compared to fiscal year 2016 is primarily due to (i) a recorded loss of approximately $0.9 million from assets held for sale and (ii) an increase in casualty losses in the Netherlands and North America in fiscal 2017 as compared to insurance gains recorded in the Netherlands in fiscal 2016 that more than offset and increase in interest income.

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Equity in Net Income in Investment of Unconsolidated Subsidiaries. Equity in net income in investment of unconsolidated subsidiaries primarily represents the Company's portion of the income of the DGD Joint Venture for fiscal year 2017. In fiscal year 2017, equity in net income was $28.5 million compared to $70.4 million in fiscal year 2016. The $41.9 million decrease was primarily due to the absence of the North American blenders tax credits in fiscal 2017 as compared to blenders tax credits recorded at the DGD Joint Venture in fiscal 2016.

Income Taxes. The Company recorded income tax benefit of $69.2 million for fiscal year 2017, compared to $15.3 million of income tax expense recorded in fiscal year 2016, a decrease of $84.5 million, which is primarily due to tax law changes enacted in December 2017 with respect to several of the Company's major tax jurisdictions offset by the expiration of the biofuel tax incentive. Specifically, a tax benefit of $75.0 million was recorded due to the Tax Cuts and Jobs Act (the “Tax Act” or “U.S. tax reform”) in the United States, which was enacted on December 22, 2017, and a tax benefit of $13.9 million was recorded for tax law changes in Belgium and France (“European tax law changes”). The effective tax rate for fiscal year 2017 and fiscal year 2016 is (107.7)% and 12.5%, respectively. The effective tax rate for fiscal year 2017 differs from the statutory rate of 35% due primarily to the impact of U.S. tax reform, European tax law changes, the relative mix of earnings among jurisdictions with different tax rates, and subpart F income. Excluding the impact of U.S. tax reform and European tax law changes, the effective tax rate for fiscal year 2017 is 30.8%. The effective tax rate for fiscal year 2016 differs from the statutory rate of 35% due primarily to the biofuel tax incentives from the DGD Joint Venture, the relative mix of earnings among jurisdictions with different tax rates, and subpart F income. The biofuel tax incentive expired as of the end of fiscal 2016. Excluding the biofuel tax incentive, the effective tax rate for fiscal 2016 is 35.7%.

Non-U.S. GAAP Measures

Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to net income, but rather as a measure of the Company's operating performance. Since EBITDA (generally, net income plus interest expenses, taxes, depreciation and amortization) is not calculated identically by all companies, the presentation in this report may not be comparable to EBITDA or adjusted EBITDA presentations disclosed by other companies. 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 (income)/loss of unconsolidated subsidiary.  Management believes that Adjusted EBITDA is useful in evaluating the Company's operating performance compared to that of other companies in its industry 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.  In addition, management also uses or will use Adjusted EBITDA to measure compliance with certain financial covenants under the Company's Senior Secured Credit Facilities, 5.375% Notes and 4.75% Notes that were outstanding at December 30, 2017. However, the amounts shown below for Adjusted EBITDA differ from the amounts calculated under similarly titled definitions in the Company’s Senior Secured Credit Facilities, 5.375% Notes and 4.75% Notes, as those definitions permit further adjustments to reflect certain other non-recurring costs, non-cash charges and cash dividends from the DGD Joint Venture. Additionally, the Company evaluates the impact of foreign currency exchange on operating cash flow, which is defined as segment operating income (loss) plus depreciation and amortization.

Reconciliation of Net Income to (Non-GAAP) Adjusted EBITDA and (Non-GAAP) Pro Forma Adjusted EBITDA

Fiscal Year 2017 As Compared to Fiscal 2016

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	Fiscal Year Ended
(dollars in thousands)	December 30, 2017			December 31, 2016
Net income attributable to Darling	$	128,468		$	102,313
Depreciation and amortization	302,100			289,908
Interest expense	88,926			94,187
Income tax expense/(benefit)	(69,154		)	15,315
Foreign currency loss/(gain)	6,898			1,854
Other expense/(income), net	5,293			3,866
Equity in net (income)/loss of unconsolidated subsidiaries	(28,504		)	(70,379		)
Net (loss)/income attributable to noncontrolling interests	4,886			4,911
Adjusted EBITDA (Non-GAAP)	$	438,913		$	441,975
Acquisition and integration-related expenses	—			401
Pro forma Adjusted EBITDA (Non-GAAP)	$	438,913		$	442,376
Foreign currency exchange impact (1)	(5,682		)	—
Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP)	$	433,231		$	442,376
DGD Joint Venture Adjusted EBITDA (Darling's Share)	$	43,198		$	87,224

(1) The average rate assumption used in this calculation was the actual fiscal average rate for the fiscal year ended December 30, 2017 of €1.00:USD$1.13 and CAD$1.00:USD$0.77 as compared to the average rate for the fiscal year ended December 31, 2016 of €1.00:USD$1.11 and CAD$1.00:USD$0.76, respectively.

For the fiscal year ended December 30, 2017, the Company generated Adjusted EBITDA (Non-GAAP) of $438.9 million, as compared to $442.0 million for the year ended December 31, 2016. The decrease is attributable to lower earnings in the Food Ingredients and Fuel Ingredients segment.

On a Pro forma Adjusted EBITDA basis, the Company would have generated $438.9 million for the fiscal year ended December 30, 2017, as compared to $442.4 million for the year ended December 31, 2016 when excluding acquisition and integration-related expenses. Additionally, in February 2018, the blender tax credits for calendar year 2017 were retroactively reinstated by the U.S. Congress. The Fuel Ingredients segment is expected to receive approximately $12.6 million in fiscal 2018 for these reinstated blenders tax credits. If these blenders tax credits were included in fiscal 2017 operations, Pro forma Adjusted EBITDA would have been $445.8 million for the fiscal year ended December 30, 2017, an increase of $3.4 million, as compared to $442.4 million for the year ended December 31, 2016.

DGD Joint Venture Adjusted EBITDA (Darling's Share) is not reflected in the Adjusted EBITDA, the Pro forma Adjusted EBITDA, or the Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP). See Note 7 to the Company's Consolidated Financial Statements included herein for financial information regarding the DGD Joint Venture.

Results of Operations

Fiscal Year Ended December 31, 2016 Compared to Fiscal Year Ended January 2, 2016

Operating Performance Metrics

Operating performance metrics indicators which management routinely monitors as an indicator of operating performance include:

• Finished product commodity prices

• Segment results

• Foreign currency

• Corporate activities

• Non-U.S. GAAP measures

These indicators and their importance are discussed below.

Finished Product Commodity Prices

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Average Jacobsen and Reuters prices (at the specified delivery point) for fiscal 2016, compared to average Jacobsen and Reuters prices for fiscal 2015 are:

	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	)%

The following table shows the average Jacobsen and Reuters prices for the fourth quarter of fiscal 2016, compared to the average Jacobsen and Reuters prices for the third quarter of fiscal 2016.

	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	)%

Segment Results

Segment operating income for the fiscal year ended December 31, 2016 was $152.1 million, which reflects an increase of $9.5 million or 6.7% as compared to the fiscal year ended January 2, 2016. Adjusting the segment operating income for the year ended January 2, 2016 to reflect the net change due to the acquisition and integration costs, operating income would have been $150.5 million in the fiscal year ended January 2, 2016.

(in thousands, except percentages)	Feed Ingredients			Food Ingredients			Fuel Ingredients			Corporate			Total
Fiscal Year Ended December 31, 2016
Net Sales	$	2,089,145		$	1,055,725		$	247,058		$	—		$	3,391,928
Cost of sales and operating expenses	1,624,858			828,223			182,466			—			2,635,547
Gross Margin	464,287			227,502			64,592			—			756,381
Gross Margin %	22.2		%	21.5		%	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

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(in thousands, except percentages)	Feed Ingredients			Food Ingredients			Fuel Ingredients			Corporate			Total
Fiscal Year Ended January 2, 2016
Net Sales	$	2,074,333		$	1,088,727		$	228,195		$	—		$	3,391,255
Cost of sales and operating expenses	1,613,402			863,562			177,061			—			2,654,025
Gross Margin	460,931			225,165			51,134			—			737,230
Gross Margin %	22.2		%	20.7		%	22.4		%	—		%	21.7		%
Selling, general and administrative expense	178,624			97,110			7,264			33,385			316,383
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

Feed Ingredients Segment

Raw material volume. Overall, in the fiscal year 2016, the raw material processed by the Company's Feed Ingredients segment totaled 7.97 million metric tons. Compared to the fiscal year 2015 overall raw material volume processed in the Feed Ingredients segment increased approximately 7.0%.

Sales. During the year ended December 31, 2016, net sales for the Feed Ingredients segment were $2,089.1 million as compared to $2,074.3 million for the year ended January 2, 2016, an increase of approximately $14.8 million. Net sales for fats were approximately $574.6 million and $539.8 million for the years ended December 31, 2016 and January 2, 2016. Protein net sales were approximately $769.4 million and $828.5 million for the years ended December 31, 2016 and January 2, 2016. Other rendering net sales, which include hides, pet food, and service charges, were approximately $269.1 million and $244.0 million for the years ended December 31, 2016 and January 2, 2016. Total rendering net sales were approximately $1,613.1 million and $1,612.3 million for the years ended December 31, 2016 and January 2, 2016. Used cooking oil net sales were approximately $165.1 million and $154.0 million for the years ended December 31, 2016 and January 2, 2016. Bakery net sales were approximately $220.4 million and $217.9 million for the years ended December 31, 2016 and January 2, 2016 and other sales, which includes trap services, industrial residual services and organic fertilizer net sales were approximately $90.5 million and $90.1 million for the years ended December 31, 2016 and January 2, 2016.

The increase in net sales for the Feed Ingredients segment was primarily due to the following (in millions of dollars):

	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

Margins. In the Feed Ingredients segment for both fiscal year 2016 and fiscal 2015, the gross margin percentage was 22.2%. Margins were maintained with lower protein prices being offset by higher fat prices and improved sales volumes.

Segment operating income. Feed Ingredients operating income for fiscal year 2016 was $115.8 million, a decrease of $0.7 million as compared to fiscal year 2015. Earnings in the Feed Ingredients segment were down slightly from the prior year

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due to lower protein finished product prices and higher depreciation and amortization due to placing new plants into production which were offset by higher fat finished product prices and reduced selling, general and administrative expense.

Food Ingredients Segment

Raw material volume. Overall, in the fiscal year 2016, the raw material processed by the Company's Food Ingredients segment totaled 1.08 million metric tons. Compared to the fiscal year 2015 overall raw material volume processed in the Food Ingredients segment increased approximately 1.3%.

Margins. In the Food Ingredients segment for fiscal year 2016, the gross margin percentage was 21.5% as compared to 20.7% for fiscal 2015. The increase is primarily due to improved margins and production efficiencies in the North American, South American, and European gelatin business. European edible fats performance normalized over the prior year due to stable sales prices. The Company's casing business profitability increased as compared to the same period in the prior year, due primarily to higher sales prices.

Segment operating income. Food Ingredients operating income for both fiscal year 2016 and fiscal 2015 was $61.2 million. During fiscal 2016, the gelatin business earnings reflected strong profitability in the Company's North American, South American, and European operations which offset the lower sales prices and volumes in China. The European edible fats earnings improved due to stable fat finished product prices. The Company's casing business profitability improved as compared to the same period in the prior year due to higher sales prices and volumes. Selling, general and administrative expense was reduced by $0.9 million which included $8.5 million of gains on currency hedges while depreciation and amortization increased.

Fuel Ingredients Segment

Raw material volume. Overall, in the fiscal year 2016, the raw material processed by the Company's Fuel Ingredients segment totaled 1.18 million metric tons. Compared to the fiscal year 2015 overall raw material volume processed in the Fuel Ingredients segment increased approximately 0.7%.

Margins. In the Fuel Ingredients segment (exclusive of the equity contribution from the DGD Joint Venture) for fiscal year 2016, the gross margin percentage was 26.1% as compared to 22.4% for fiscal 2015. This increase is attributable to improved performance in the Rendac and Ecoson business units and a full year of production and higher RIN values in the Canadian biodiesel unit.

Segment operating income. Exclusive of the DGD Joint Venture, Fuel Ingredients operating income for fiscal year 2016 was $29.2 million, an increase of $12.0 million as compared to fiscal year 2015. The increase in earnings is due to improved Rendac performance, full year productivity and higher RIN values at the Canadian biodiesel plant and increasing sales volumes and finished product pricing at Ecoson. Also contributing to the increase in earnings was lower selling, general and administrative expense and an insurance settlement on the Ecoson fire which occurred in 2015. Including the DGD Joint Venture, the Fuel Ingredients segment income for fiscal 2016 was $99.1 million, as compared to $89.1 million in the same period of fiscal 2015. The increase of $10.0 million is primarily related to the reasons listed previously but offset by the lower sales volumes reflected in the $2.0 million decrease in the income of the DGD Joint Venture.

Foreign Currency

During fiscal 2016, the U.S. dollar strengthened against most of the other functional currencies used by the Company's non-domestic operations when compared to the same period in fiscal 2016. Using actual results for fiscal year 2016 and the prior year's average foreign currency rates for the fiscal 2015 would result in an increase in operating income of approximately $2.0 million. The average rates assumption used in this calculation was the actual fiscal average rate for fiscal year 2016 of €1.00:USD$1.106 and CAD$1.00:USD$0.76 as compared to the average rate for fiscal year 2015 of €1.00:USD$1.108 and CAD$1.00:USD$0.77, respectively.

Corporate Activities

Selling, General and Administrative Expenses.  Selling, general and administrative expenses were $41.3 million during fiscal year 2016, a $7.9 million increase from $33.4 million during fiscal year 2015. The increase is due to an increase in outside legal expense, corporate related benefits and an offsetting gain of $4.2 million recorded in 2015 for a reduction of a liability for unclaimed property. 

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Acquisition and Integration Costs.  Acquisition and integration costs primarily were $0.4 million in fiscal 2016 as compared to $8.3 million in fiscal 2015. The decrease is primarily due to the termination of the Transitions Services Agreement with Maple Leaf Foods in March 2016 and the inclusion of expenses in fiscal 2015 relating to the integration of operations, systems integration and implementation of Sarbanes-Oxley Act of 2002 internal controls in connection with the VION Acquisition.

Depreciation and Amortization.  Depreciation and amortization charges increased $1.9 million to $12.4 million during fiscal year 2016 as compared to $10.5 million during fiscal year 2015.  The increase in depreciation and amortization is primarily due to the Company's ERP system depreciation.

Interest Expense. Interest expense was $94.2 million for fiscal year 2016, compared to $105.5 million for fiscal year 2015, a decrease of $11.3 million. The decrease is primarily due to the prior year charge relating to the write-off of deferred loan costs of approximately $10.6 million related to the retirement of the European term loan B and a decrease in interest expense on reduced debt outstanding in the U.S. and Canada.

Foreign Currency Gains/(Losses).  Foreign currency losses were $1.9 million during fiscal year 2016, as compared to a loss of approximately $4.9 million for fiscal year 2015. The decrease in currency losses is mainly due to a reduction in losses on non-designated foreign exchange hedge contracts related to the Company's intercompany notes.

Other Income/Expense. Other expense was $3.9 million for fiscal year 2016, compared to $6.8 million in fiscal year 2015.  The decrease in other expense for fiscal year 2016 as compared to fiscal year 2015 is primarily due to (i) a recorded insurance gain from casualty losses recorded in the Netherlands related to fire and casualty losses that occurred in late December 2015, and (ii) a decrease in expense related to the ineffective portion of the Company's product hedges that more than offset an increase in bank service charges and a reduction of interest income.

Equity in Net Income in Investment of Unconsolidated Subsidiaries. Equity in net income in investment of unconsolidated subsidiaries primarily represents the Company's portion of the income of the DGD Joint Venture for fiscal year 2016. In fiscal year 2016, net income was $70.4 million compared to a net income of $73.4 million in fiscal year 2015.

Income Taxes. The Company recorded income tax expense of $15.3 million for fiscal year 2016, compared to $13.5 million of income tax expense recorded in fiscal year 2015, an increase of $1.8 million, which is primarily due to increased pre-tax earnings of the Company in fiscal year 2016.  The effective tax rate for fiscal year 2016 and fiscal year 2015 is 12.5% and 13.7%, respectively. The effective tax rate for fiscal year 2016 differs from the statutory rate of 35% due primarily to the biofuel tax incentives from the DGD Joint Venture, the relative mix of earnings among jurisdictions with different tax rates, and subpart F income. The effective tax rate for fiscal year 2015 differs from the statutory rate of 35% due primarily to the biofuel tax incentives from the DGD Joint Venture, the relative mix of earnings amount jurisdictions with different tax rates, subpart F income, deferred tax on unremitted foreign earnings and change in valuation allowance. Excluding the biofuel tax incentive, the effective tax rate for fiscal 2016 and 2015 is 35.7% and 42.2%, respectively.

Non-U.S. GAAP Measures

For a discussion of the reasons the Company's management believes the following Non-GAAP financial measures provide useful information to investors and the purposes for which the Company's management uses such measures, see “Results of Operations - Fiscal Year Ended December 30, 2017 Compared to Fiscal Year Ended December 31, 2016 - Non-U.S. GAAP Measures.”

Reconciliation of Net Income to (Non-GAAP) Adjusted EBITDA and (Non-GAAP) Pro Forma Adjusted EBITDA

Fiscal Year 2016 As Compared to Fiscal 2015

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	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

(1) The average rate assumption used in this calculation was the actual fiscal average rate for the fiscal year ended December 31, 2016 of €1.00:USD$1.106 and CAD$1.00:USD$0.76 as compared to the average rate for the fiscal year ended January 2, 2016 of €1.00:USD$1.108 and CAD$1.00:USD$0.77, respectively.

For the fiscal year ended December 31, 2016, the Company generated Adjusted EBITDA (Non-GAAP) of $442.0 million, as compared to $412.5 million for the year ended January 2, 2016. The increase is attributable to higher raw material volumes in the Feed and Food Ingredients segments and higher finished product prices for fats in the Feed Ingredients segment that more than offset lower protein finished product prices in the Feed Ingredients segment and lower finished product prices in the Food Ingredients segment. Additionally, lower selling, general and administrative expense due to cost reductions and offsetting gains in currency hedges primarily in the Food Ingredients segment also contributed to the increase.

On a Pro forma Adjusted EBITDA (Non-GAAP) basis, the Company would have generated $442.4 million for the fiscal year ended December 31, 2016, as compared to $420.8 million for the year ended January 2, 2016 when excluding acquisition and integration-related expenses.

DGD Joint Venture Adjusted EBITDA (Darling's share) is not reflected in the Adjusted EBITDA (Non-GAAP), the Pro forma Adjusted EBITDA (Non-GAAP), or the Pro forma Adjusted EBITDA to Foreign Currency (non-GAAP). See Note 7 to the Company's Consolidated Financial Statements included herein for financial information regarding the DGD Joint Venture.

FINANCING, LIQUIDITY, AND CAPITAL RESOURCES

Indebtedness

Certain Debt Outstanding at December 30, 2017. On December 30, 2017, debt outstanding under the Company's Amended Credit Agreement, the Company's 5.375% Notes and the Company's 4.75% Notes consists of the following (in thousands):

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Senior Notes:
5.375 % Notes due 2022	$	500,000
Less unamortized deferred loan costs	(6,638		)
Carrying value of 5.375% Notes due 2022	$	493,362
4.75 % Notes due 2022 - Denominated in euros	$	617,356
Less unamortized deferred loan costs	(8,675		)
Carrying value of 4.75% Notes due 2022	$	608,681
Amended Credit Agreement:
Term Loan A	$	96,365
Less unamortized deferred loan costs	(671		)
Carrying value of Term Loan A	$	95,694
Term Loan B	$	505,000
Less unamortized deferred loan costs	(10,578		)
Carrying value of Term Loan B	$	494,422
Revolving Credit Facility:
Maximum availability	$	1,000,000
Borrowings outstanding	—
Letters of credit issued	23,997
Availability	$	976,003
Other Debt	$	22,034

During fiscal 2017, the U.S. dollar weakened as compared to the euro and Canadian dollar. Using the euro and Canadian dollar based debt outstanding at December 30, 2017 and comparing the closing balance sheet rates at December 30, 2017 to those at December 31, 2016, the U.S. dollar debt balances of euro based debt increased by $72.5 million and the U.S. dollar debt balances of Canadian based debt increased by approximately $3.8 million, at December 30, 2017. The closing balance sheet rate assumptions used in this calculation were the actual fiscal closing balance sheet rate at December 30, 2017 of €1.00:USD$1.198750 and CAD$1.00:USD$0.797970 as compared to the closing balance sheet rate at December 31, 2016 of €1.00:USD$1.05600 and CAD$1.00:USD$0.742094, 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 18, 2017, the Company, and certain of its subsidiaries entered into an amendment (the “Fifth Amendment”) with its lenders to the Amended Credit Agreement. Among other things, the Fifth Amendment (i) refinances the term B loans under the Amended Credit Agreement with new term B loans in an aggregate principal amount of $525.0 million with a maturity date of December 18, 2024; (ii) adjusts the applicable margin pricing on borrowings under the term B loan; (iii) modifies certain of the negative covenants to increase the allowances for certain actions, including debt and investments; and (iv) makes other updates and changes. 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 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. For more information regarding the Amended Credit Agreement see Note 10 of Notes to Consolidated Financial Statements included herein.

• As of December 30, 2017, the Company had availability of $976.0 million under the revolving loan facility, taking into account an aggregate of no outstanding borrowings and letters of credit issued of $24.0 million.

• As of December 30, 2017, the Company has borrowed all $350.0 million under the term loan A facility and repaid approximately CAD$83.4 million and $156.8 million, which when repaid, cannot be reborrowed. The term loan A facility is repayable in quarterly installments which commenced 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.

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• As of December 30, 2017, the Company has borrowed all $525.0 million under the terms of the term loan B facility and repaid approximately $20.0 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 December 18, 2017, and continuing until the last day of each quarter period ending immediately prior to December 18, 2024; and one final installment in the amount of the relevant term loan B facility then outstanding, due on December 18, 2024. The term loan B facility will mature on December 18, 2024.

• 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 the base rate plus 1.00% or LIBOR plus 2.00%.

5.375% Senior Notes due 2022. On January 2, 2014, Darling Escrow Sub, a Delaware corporation and wholly-owned subsidiary of Darling, issued and sold $500.0 million aggregate principal amount of its 5.375% Notes. The 5.375% Notes, which were offered in a private offering in connection with its acquisition of its Darling Ingredients International business, were issued pursuant to the Original 5.375% Indenture, (as supplemented, the “5.375% Indenture”), among Darling Escrow Sub, the Subsidiary Guarantors (as defined in the Original 5.375% Indenture) party thereto from time to time and U.S. Bank National Association, as trustee (the “5.375% Trustee”). For a description of the terms of the 5.375% Notes see Note 10 of Notes to Consolidated Financial Statements.

4.75 % Senior Notes due 2022. On June 3, 2015, Darling Global Finance B.V. (the “4.75% Issuer”), a wholly-owned indirect finance subsidiary of Darling incorporated as a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid) under the laws of The Netherlands issued and sold €515.0 million aggregate principal amount of its 4.75% Notes. The 4.75% Notes, which were offered in a private offering, were issued pursuant to a Senior Notes Indenture, dated as of June 3, 2015 (the “4.75% Indenture”), among the 4.75% Issuer, Darling, 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. For a description of the terms of the 4.75% Notes see Note 10 of Notes to Consolidated Financial Statements.

Other debt consists of Canadian and European capital lease obligations, note arrangements in Argentina, Brazil, Japan and European and U.S. notes that are not part of the Company's Amended Credit Agreement, 5.375% Notes or 4.75% Notes.

The classification of long-term debt in the Company’s December 30, 2017 consolidated balance sheet is based on the contractual repayment terms of the 5.375% Notes, the 4.75% Notes and debt issued under the Amended Credit Agreement.

As a result of the Company's borrowings under its Amended Credit Agreement, the 5.375% Indenture and the 4.75% Indenture, the Company is highly leveraged. Investors should note that, in order to make scheduled payments on the indebtedness outstanding under the Amended Credit Agreement, the 5.375% Notes and the 4.75% Notes, and otherwise, the Company will rely in part on a combination of dividends, distributions and intercompany loan repayments from the Company's direct and indirect U.S. and foreign subsidiaries. The Company is prohibited under the Amended Credit Agreement, the 5.375% Indenture and the 4.75% Indenture from entering (or allowing such subsidiaries to enter) into contractual limitations on the Company's subsidiaries’ ability to declare dividends or make other payments or distributions to the Company. The Company has also attempted to structure the Company's consolidated indebtedness in such a way as to maximize the Company's ability to move cash from the Company's subsidiaries to Darling or another subsidiary that will have fewer limitations on the ability to make upstream payments, whether to Darling or directly to the Company's lenders as a Guarantor. Nevertheless, applicable laws under which the Company's direct and indirect subsidiaries are formed may provide limitations on such dividends, distributions and other payments. In addition, regulatory authorities in various countries where the Company operates or where the Company imports or exports products may from time to time impose import/export limitations, foreign exchange controls or currency devaluations that may limit the Company's access to profits from the Company's subsidiaries or otherwise negatively impact the Company's financial condition and therefore reduce the Company's ability to make required payments under Amended Credit Agreement, the 5.375% Notes and the 4.75% Notes, or otherwise. In addition, fluctuations in foreign exchange values may have a negative impact on the Company's ability to repay indebtedness denominated in U.S. or Canadian dollars or euros. See “Risk Factors - Our business may be adversely impacted by fluctuations in exchange rates, which could affect our ability to comply with our financial covenants” and “ - Our ability to repay our indebtedness depends in part on the performance of our subsidiaries, including our non-guarantor subsidiaries, and their ability to make payments” in Item 1A of this Annual Report on Form 10-K for the fiscal year ended December 30, 2017.

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As of December 30, 2017, the Company believes it is in compliance with all financial covenants under the Amended Credit Agreement, as well as all of the other covenants contained in the Amended Credit Agreement, the 5.375% Indenture and the 4.75% Indenture.

Working Capital and Capital Expenditures

On December 30, 2017, the Company had working capital of $397.0 million and its working capital ratio was 1.71 to 1 compared to working capital of $441.5 million and a working capital ratio of 1.98 to 1 on December 31, 2016. At December 30, 2017, the Company had unrestricted cash of $106.8 million and funds available under the revolving credit facility of $976.0 million, compared to unrestricted cash of $114.6 million and funds available under the revolving credit facility of $968.1 million at December 31, 2016.  The Company diversifies its cash investments by limiting the amounts deposited with any one financial institution and invests primarily in government-backed securities.

Net cash provided by operating activities was $410.6 million and $391.0 million for the fiscal years ended December 30, 2017 and December 31, 2016, respectively, an increase of $19.6 million due primarily to an increase in net income of approximately $26.2 million and changes in operating assets that include an increase in cash provided by accounts receivable of approximately $26.3 million, an increase in accounts payable and accrued expense of approximately $34.1 million and a decrease in cash used by inventory and prepaid expenses of approximately $30.3 million. Cash used by investing activities was $284.1 million during fiscal 2017, compared to $243.2 million in fiscal 2016, an increase in cash used of $40.9 million, primarily due to an increase in cash paid for capital expenditures and cash payments for routes and other intangibles.  Net cash used by financing activities was $154.9 million during fiscal 2017, compared to $183.9 million in fiscal 2016, a decrease in cash used of $29.0 million. The decrease in cash used by financing activities was primarily due to a decrease in debt payments as compared to fiscal 2016.

Capital expenditures of $274.2 million were made during fiscal 2017 as compared to $243.5 million in fiscal 2016, an increase of $30.7 million, or 12.6%. In fiscal 2018, the Company expects to incur approximately $219 million in regular type capital expenditures and approximately $114 million for new construction (including expansions) for a total of approximately $333 million. These costs are expected to be financed using cash flows from operations. Capital expenditures related to compliance with environmental regulations were $27.5 million in fiscal 2017, $17.5 million in fiscal 2016 and $17.6 million in fiscal 2015.

Accrued Insurance and Pension Plan Obligations

Based upon the annual actuarial estimate, current accruals and claims paid during fiscal 2017, the Company has accrued approximately $9.4 million as of December 30, 2017 that it expects will become due during the next twelve months in order to meet obligations related to the Company's self insurance reserves and accrued insurance obligations, which are included in current accrued expenses at December 30, 2017.  The self insurance reserve is composed of estimated liability for claims arising for workers’ compensation and for auto liability and general liability claims.  The self insurance reserve liability is determined annually, based upon a third party actuarial estimate.  The actuarial estimate may vary from year to year, due to changes in costs of health care, the pending number of claims and other factors beyond the control of management of the Company.  

Based upon current actuarial estimates, the Company expects to make payments of approximately $1.2 million in order to meet minimum pension funding requirements to its domestic plans in fiscal 2018. In addition, the Company expects to make payments of approximately $3.8 million under its foreign pension plans in fiscal 2018.  The minimum pension funding requirements are determined annually, based upon a third party actuarial estimate.  The actuarial estimate may vary from year to year, due to fluctuations in return on investments or other factors beyond the control of management of the Company or the administrator of the Company’s pension funds.  No assurance can be given that the minimum pension funding requirements will not increase in the future.  The Company has made required and tax deductible discretionary contributions to its domestic pension plans in fiscal 2017 and fiscal 2016 of approximately $1.0 million and $0.6 million, respectively. Additionally, the Company has made required and tax deductible discretionary contributions to its foreign pension plans in fiscal 2017 of approximately $3.3 million, as compared to $4.7 million in contributions in fiscal 2016.

The U.S. Pension Protection Act of 2006 (“PPA”) went into effect in January 2008.  The stated goal of the PPA is to improve the funding of U.S. pension plans.  U.S. plans in an under-funded status are required to increase employer contributions to improve the funding level within PPA timelines.  The impact of recent volatility in the world equity and other financial markets have had and could continue to have a material negative impact on U.S. pension plan assets and the status of required funding under the PPA.  The Company participates in various U.S. multiemployer pension plans which provide defined benefits to certain employees covered by labor contracts.  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 Company's contributions to each individual U.S. 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,

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withdrawal liabilities on two of the U.S. plans in which the Company currently participates could be material to the Company, with one of these material plans certified as critical or red zone. With respect to the other U.S. multiemployer pension plans in which the Company participates and which are not individually significant, six plans have certified as critical or red zone and one have certified as endangered or yellow zone, as defined by the PPA. The Company has received notices of withdrawal liability from two U.S. multiemployer pension plans in which it participated. As a result, the Company has an accrued aggregate current liability of approximately $1.7 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 PPA, the amounts could be material.

DGD Joint Venture

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 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 provided 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, consisting of substantially all of the plant, property and equipment of the DGD Facility, 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.

Based on the sponsor support agreements executed in connection with the Facility Agreement and the Loan Agreement relating to the DGD Joint Venture with Valero, the Company has contributed a total of approximately $111.7 million for the completion of the DGD Facility including the Company's portion of cost overruns and working capital funding. As of the date of this report, it is anticipated that substantially all contributions have been made, except for possible additional working capital funding, which is not expected to be material to the Company if it occurs. As of December 30, 2017, under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $273.9 million on the consolidated balance sheet. Distribution of earnings to the venture partners is prohibited until certain conditions required under the DGD Joint Venture’s Loan Agreement are satisfied, including prepayments of principal by the DGD Joint Venture upon qualifying events. In addition, the DGD Joint Venture has no mandatory distributions to its joint venture partners. During the fiscal year ended December 30, 2017, the DGD Joint Venture made dividend distributions to each partner in the amount of $25.0 million.

In April 2016, the Company announced the planned expansion of the DGD Facility's annual production capacity from 160 million gallons of renewable diesel to 275 million gallons. Final engineering and cost analysis for the project were completed during the third quarter of fiscal 2016. The estimated construction costs for the project are $190 million, which is expected to be funded by DGD Joint Venture cash flow. The DGD Joint Venture estimates completion of construction and commissioning of the project in the second quarter of 2018. The DGD Joint Venture expects to operate at full capacity throughout the remainder of the expansion phase, excluding and an estimated 40 days of necessary downtime for final tie-ins in 2018. The planned expansion will also include expanded outbound logistics for servicing the many developing low carbon fuel markets around North America and worldwide. In November 2017, the Company announced that the DGD Joint Venture was initiating an engineering and construction cost review to analyze an additional expansion of the DGD Facility’s annual production capacity to 550 million gallons. A final decision on the incremental 275 million gallons of annual production capacity is expected in 2018 and will be dependent on further engineering and cost estimates, as well as the status of government regulations.

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, 2018, unless extended by agreement of the parties. As of December 30, 2017, no amounts

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are owed to Darling Green under the DGD Loan Agreement. The DGD Joint Venture, together with its joint venture partner, evaluates its capital structure from time to time, including opportunities to refinance the JV Loan.

Financial Impact of Significant Debt Outstanding

The Company has a substantial amount of indebtedness, which could make it more difficult for us to satisfy our obligations to our financial lenders and our contractual and commercial commitments, limit 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, require 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, increase our vulnerability to adverse economic, industry and business conditions, expose us to the risk of increased interest rates as certain of our borrowings are at variable rates of interest, limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate, place us at a competitive disadvantage compared to other, less leveraged competitors, and/or increase our cost of borrowing.

Cash Flows and Liquidity Risks

Management believes that the Company’s cash flows from operating activities consistent with the level generated in fiscal 2017, unrestricted cash and funds available under the Amended Credit Agreement, will be sufficient to meet the Company’s working capital needs and maintenance and compliance-related capital expenditures, scheduled debt and interest payments, income tax obligations, and other contemplated needs through the next twelve months.  Numerous factors could have adverse consequences to the Company that cannot be estimated at this time, such as those factors discussed below under the heading “Forward Looking Statements”. These factors, coupled with volatile prices for natural gas and diesel fuel, currency exchange fluctuations, general performance of the U.S. and global economies, disturbances in world financial, credit, commodities and stock markets, and any decline in consumer confidence, including the inability of consumers and companies to obtain credit due to lack of liquidity in the financial markets, among others, could negatively impact the Company's results of operations in fiscal 2018 and thereafter. The Company reviews the appropriate use of unrestricted cash periodically.  As of the date of this report, no decision has been made as to non-ordinary course cash usages at this time; however, potential usages could include:  opportunistic capital expenditures and/or acquisitions and joint ventures;  investments relating to the Company’s renewable energy strategy, including, without limitation, potential investments in additional renewable diesel and/or biodiesel projects;  investments in response to governmental regulations relating to human and animal food safety or other regulations;  unexpected funding required by the legislation, regulation or mass termination of multiemployer plans; and paying dividends or repurchasing stock, subject to limitations under the Amended Credit Agreement, the 5.375 % Notes and the 4.75% Notes, as well as suitable cash conservation to withstand adverse commodity cycles. 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. The program initially approved by the Board of Directors was for a 24-month period; however, the Board has subsequently extended the program for an additional 24 month period and reset the amount of the program to $100.0 million. Accordingly, repurchases may occur through August 13, 2019, unless further extended or shortened by the Board of Directors. Since the inception of the share repurchase program, the Company has repurchased approximately $10.9 million of its common stock in open market purchases and, as of the date of this report, has $100.0 million remaining in its share repurchase program.

Each of the factors described above has the potential to adversely impact the Company's liquidity in a variety of ways, including through reduced raw materials availability, reduced finished product prices, reduced sales, potential inventory buildup, increased bad debt reserves, potential impairment charges and/or higher operating costs.

Sales prices for the principal products that the Company sells are typically influenced by sales prices for agricultural-based ingredients, the prices of which are based on established commodity markets and are subject to volatile changes. Any decline in these prices has the potential to adversely impact the Company's liquidity. Any of a decline in raw material availability, a decline in agricultural-based alternative ingredients prices, increases in energy prices or the impact of U.S. and foreign regulation (including, without limitation, China), changes in foreign exchange rates, imposition of currency controls and currency devaluations has the potential to adversely impact the Company's liquidity. A decline in commodities prices, a rise in energy prices, a slowdown in the U.S. or international economy or other factors, could cause the Company to fail to meet management's expectations or could cause liquidity concerns.

CONTRACTUAL OBLIGATIONS AND OTHER COMMERCIAL COMMITMENTS

The following table summarizes the Company’s expected material contractual payment obligations, including both on- and off-balance sheet arrangements at December 30, 2017 (in thousands):

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	Total		Less than 1 Year		1 – 3 Years		3 – 5 Years		More than 5 Years
Contractual obligations(a):
Long-term debt obligations (b)	$	1,718,721	$	—	$	—	$	1,219,971	$	498,750
Operating lease obligations (c)	145,026		45,345		65,594		20,900		13,187
Capital lease obligations (c)	1,395		927		468		—		—
Estimated interest payable (d)	393,071		82,318		164,929		111,103		34,721
Purchase commitments (e)	44,392		44,392		—		—		—
Pension funding obligation (f)	4,950		4,950		—		—		—
Other obligations	20,709		15,267		3,576		1,612		254
Total	$	2,328,264	$	193,199	$	234,567	$	1,353,586	$	546,912

(a) The above table does not reflect uncertain tax positions at December 30, 2017. The Company's uncertain tax position is approximately $2.4 million.

(b) Represents debt obligations outstanding as of December 30, 2017. 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 30, 2017.

(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 $5.0 million in required contributions to domestic and foreign pension plans in fiscal 2018.  The Company is not able to estimate pension funding requirements beyond the next twelve months. The accrued pension benefit liability was approximately $54.2 million at the end of fiscal 2017.  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.

The Company's off-balance sheet contractual obligations and commercial commitments as of December 30, 2017 relate to operating lease obligations, letters of credit, foreign bank guarantees, forward purchase agreements and employment agreements.  The Company has excluded these items from the balance sheet in accordance with U.S. GAAP.

The following table summarizes the Company’s other commercial commitments, including both on- and off-balance sheet arrangements that are part of the Company's Amended Credit Agreement and other foreign bank guarantees that are not a part of the Company's Amended Credit Agreement at December 30, 2017 (in thousands):

Other commercial commitments:
Standby letters of credit	$	23,997
Foreign bank guarantees	12,337
Total other commercial commitments:	$	36,334

OFF BALANCE SHEET OBLIGATIONS

Based upon the underlying purchase agreements, the Company has commitments to purchase $44.4 million of commodity products, consisting of approximately $22.8 million of finished and raw material products and approximately $19.1 million of natural gas and diesel fuel and approximately $2.5 million of other commitments during the next twelve months, which are not included in liabilities on the Company’s balance sheet at December 30, 2017. These purchase agreements are entered into in the normal course of the Company’s business and are not subject to derivative accounting. The commitments will be recorded on the balance sheet of the Company when delivery of these commodities occurs and ownership passes to the Company during fiscal 2018, in accordance with U.S. GAAP.

Based upon underlying lease agreements, the Company is obligated to pay approximately $45.3 million for operating leases during fiscal 2018, which are not included in liabilities on the Company’s balance sheet at December 30, 2017.  These lease obligations are included in cost of sales or selling, general and administrative expense on the Company’s Statement of Operations as the underlying lease obligation comes due, in accordance with U.S. GAAP.

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CRITICAL ACCOUNTING POLICIES

The Company follows certain significant accounting policies when preparing its consolidated financial statements.  A complete summary of these policies is included in Note 1 of Notes to Consolidated Financial Statements.

Certain of the policies require management to make significant and subjective estimates or assumptions that may deviate from actual results.  In particular, management makes estimates regarding valuation of inventories, estimates of useful life of long-lived assets related to depreciation and amortization expense, estimates regarding fair value of the Company’s reporting units and future cash flows with respect to assessing potential impairment of both long-lived assets and goodwill, self-insurance, environmental and litigation reserves, pension liability, estimates of income tax expense and estimates of expense related to stock options granted.  Each of these estimates is discussed in greater detail in the following discussion.

Long-Lived Assets, Depreciation and Amortization Expense and Valuation

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 by which the carrying amount of the asset exceeds the fair value of the asset. In fiscal 2017, the Company recognized that operational inefficiencies and losses in Hurlingham, Argentina were negatively impacting results and asset values. An improvement plan was developed, implemented, and is effecting positive change in the plant’s operations. When the impairment assessment was completed, the Company concluded that there is no impairment. In fiscal 2016 and 2015, no triggering event occurred requiring that the Company perform testing of its long-lived assets for impairment.

Goodwill Valuation

The Company performed the annual goodwill and indefinite-lived intangible assets impairment assessments at October 28, 2017 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.

Based on the Company’s annual impairment testing at October 28, 2017, October 29, 2016 and October 31, 2015, the fair values of the Company’s reporting units containing goodwill exceeded the related carrying value.  However, based on the Company's annual impairment testing at October 28, 2017, the fair value of six of the Company's nine reporting units was less than 30% in excess of its carrying value. There were no reporting units with a carrying value less than 10% of the estimated fair value.  The Company determined the fair value of reporting units with the assistance of a valuation expert who assisted the Company primarily using the Income Approach to determine the fair value of the Company's reporting units. Key assumptions that impacted the discounted cash flow model were raw material volumes, gross margins, terminal growth rates and discount rates. It is possible, depending upon a number of factors that are not determinable at this time or within the control of the Company, that the fair value of these six reporting units could decrease in the future and result in an impairment to goodwill.  The amount of goodwill allocated to these six reporting units was approximately $732.4 million.  The Company's management believes the biggest risk to these reporting units is decreasing finished product prices impacting gross margins and an economic slowdown that would impact raw material suppliers. Goodwill was approximately $1,301.1 million and $1,225.9 million at December 30, 2017 and December 31, 2016, respectively.

Pension Liability

The Company has retirement and pension plans covering a substantial number of its domestic and foreign employees. Major assumptions used in the accounting for these employee benefit plans include the discount rate, expected return on plan assets, rate of increase in employee compensation levels, mortality rates and trends in health care costs. The actuarial assumptions used may differ materially from actual results due to changing market and economic conditions, higher or lower withdrawal rates or longer or shorter life spans of participants. These differences may result in a significant impact to the amount of net periodic benefit cost recorded in future periods.

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The discount rate applied to the Company’s pension liability is the interest rate used to calculate the present value of the pension benefit obligation.  The weighted average discount rate was 3.40% at December 30, 2017 and 3.81% at December 31, 2016, respectively.  The net periodic benefit cost for fiscal 2018 would increase by approximately $1.2 million if the discount rate was 0.5% lower at a weighted average of 2.90%.  The net periodic benefit cost for fiscal 2018 would decrease by approximately $1.2 million if the discount rate was 0.5% higher at a weighted average of 3.90%.

NEW ACCOUNTING PRONOUNCEMENTS

In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU amends Topic 220, Income Statement - Reporting Comprehensive Income, which will allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The ASU is effective for fiscal years beginning after December 15, 2018 and for interim periods therein with early adoption permitted. The Company is currently evaluating the impact of this standard.

In August 2017, the FASB issued ASU No. 2017-12, Targeted Improvement to Accounting for Hedging Activities. This ASU amends Topic 815, Derivatives and Hedging, which is intended to more closely align hedge accounting with companies' risk management strategies and simplify the application of hedge accounting. The guidance includes certain targeted improvements to ease the operational burden of applying hedge accounting. The ASU is effective for fiscal years beginning after December 15, 2018 and for interim periods therein with early adoption permitted. The Company will be required to apply the guidance on a cumulative-effect basis with adjustment to retained earnings as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of this standard.

In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU amends Topic 715, Compensation - Retirement Benefits, which requires that an employer report the service cost component of net benefit costs to be disaggregated from all other components and reported in the same line item or items as other compensation costs. The other components of net benefit cost are required to be presented in the income statement separately from the service cost. The ASU is effective for fiscal years beginning after December 15, 2017 and for interim periods therein. The initial adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements.

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 initial adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements.

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 initial adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements.

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 initial adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements.

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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 initial adoption of this ASU is not expected to 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 disclosures, 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 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 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 assessment, the Company has elected to adopt this standard on a modified retrospective basis beginning in fiscal 2018. The adoption will not change the timing of revenues as the Company's revenues have been determined to be recognized at a point in time and not over time. The Company has elected not to capitalize contract fulfillment costs as the recovery of such costs are for a period of less than one year's time and are not material to the Company. Additionally, the Company has elected to treat shipping and handling as fulfillment costs, which will result in a reduction of revenue and a reduction of cost of sales for fiscal 2017 and fiscal 2016 of approximately $161.1 million and $149.0 million, respectively with no impact on overall earnings. The Company is currently reviewing the expanded incremental disclosures and the disaggregation of revenues disclosures as required under ASU No. 2014-09.

FORWARD LOOKING STATEMENTS

This Annual Report on Form 10-K includes “forward-looking” statements that involve risks and uncertainties.   The words “believe,” “anticipate,” “expect,” “estimate,” “intend,” “could,” “may,” “will,” “should,” “planned,” “potential,” and similar expressions identify forward-looking statements.  All statements other than statements of historical facts included in this report, including, without limitation, the statements under the sections entitled “Business,” “Management's Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” and located elsewhere herein regarding industry prospects and the Company's financial position and the Company's use of cash are forward-looking statements.  Actual results could differ materially from those discussed in the forward-looking statements as a result of certain factors, including many that are beyond the control of the Company.  Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to be correct.

In addition to those factors discussed under the heading “Risk Factors” in Item 1A of this report and elsewhere in this report, and in the Company's other public filings with the SEC, important factors that could cause actual results to differ materially from the Company's expectations include: existing and unknown future limitations on the ability of the Company's direct and indirect subsidiaries to make their cash flow available to the Company for payments on the Company's indebtedness or other purposes; global demands for bio-fuels and grain and oilseed commodities, which have exhibited volatility, and can impact the cost of feed for cattle, hogs and poultry, thus affecting available rendering feedstock and selling prices for the Company’s products;

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reductions in raw material volumes available to the Company due to weak margins in the meat production industry as a result of higher feed costs, reduced consumer demand or other factors, reduced volume from food service establishments, or otherwise; reduced demand for animal feed; reduced finished product prices, including a decline in fat and used cooking oil finished product prices; changes to worldwide government policies relating to renewable fuels and GHG emissions that adversely affect programs like the U.S. government's renewable fuel standard, low carbon fuel standards (“LCFS”) and tax credits for biofuels both in the Unites States and abroad; possible product recall resulting from developments relating to the discovery of unauthorized adulterations to food or food additives; the occurrence of Bird Flu including, but not limited to H5N1 flu, BSE, PED or other diseases associated with animal origin in the United States or elsewhere; unanticipated costs and/or reductions in raw material volumes related to the Company’s compliance with the existing or unforeseen new U.S. or foreign (including, without limitation, China) regulations (including new or modified animal feed, Bird Flu, PED or BSE or similar or unanticipated regulations) affecting the industries in which the Company operates or its value added products; risks associated with the DGD Joint Venture, including possible unanticipated operating disruptions and issues relating to the announced expansion project; difficulties or a significant disruption in our information systems or failure to implement new systems and software successfully, including our ongoing enterprise resource planning project; risks relating to possible third party claims of intellectual property infringement; increased contributions to the Company’s pension and benefit plans, including multiemployer and employer-sponsored defined benefit pension plans as required by legislation, regulation or other applicable U.S. or foreign law or resulting from a U.S. mass withdrawal event; bad debt write-offs; loss of or failure to obtain necessary permits and registrations; continued or escalated conflict in the Middle East, North Korea, Ukraine or elsewhere; uncertainty regarding the exit of the U.K. from the European Union; and/or unfavorable export or import markets. These factors, coupled with volatile prices for natural gas and diesel fuel, climate conditions, currency exchange fluctuations, general performance of the U.S. and global economies, disturbances in world financial, credit, commodities and stock markets, and any decline in consumer confidence and discretionary spending, including the inability of consumers and companies to obtain credit due to lack of liquidity in the financial markets, among others, could negatively impact the Company's results of operations. Among other things, future profitability may be affected by the Company’s ability to grow its business, which faces competition from companies that may have substantially greater resources than the Company. The Company's announced share repurchase program may be suspended or discontinued at any time and purchases of shares under the program are subject to market conditions and other factors, which are likely to change from time to time. The Company cautions readers that all forward-looking statements speak only as of the date made, and the Company undertakes no obligation to update any forward looking statements, whether as a result of changes in circumstances, new events or otherwise.

ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 Market risks affecting the Company include exposures to changes in prices of the finished products the Company sells, interest rates on debt, availability of raw material supplies and the price of natural gas and diesel fuel used in the Company's plants. Raw materials available to the Company are impacted by seasonal factors, including holidays, when raw material volume declines; warm weather, which can adversely affect the quality of raw material processed and finished products produced; and cold weather, which can impact the collection of raw material. Predominantly all of the Company’s finished products are commodities that are generally sold at prices prevailing at the time of sale. Additionally, with acquisition of foreign entities we are exposed to foreign currency exchange risks, imposition of currency controls and the possibility of currency devaluation.

The Company makes limited use of derivative instruments to manage cash flow risks related to 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 U.S. 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. The interest rate swaps and the natural gas swaps are subject to the requirements of FASB authoritative guidance. Some of the Company's natural gas and diesel fuel instruments are not subject to the requirements of FASB authoritative guidance because some of the natural gas and diesel fuel instruments qualify as normal purchases as defined in FASB authoritative guidance.  At December 30, 2017, the Company had natural gas swap contracts and corn option contracts outstanding that qualified and were designated for hedge accounting as well as corn options and forward contracts and foreign currency forward contracts that did not qualify and were not designated for hedge accounting.

In fiscal 2017, the Company entered into natural gas swap contracts that are considered cash flow hedges. Under the terms of the natural gas swap contracts , the Company fixed the expected purchase cost of a portion of its U.S plants' forecasted natural gas usage into the first quarter of fiscal 2018. As of December 30, 2017, the aggregate fair value of these natural gas contracts was less than $0.1 million and is included in accrued expenses on the balance sheet, with an offset recorded in accumulated other comprehensive income for the effective portion.

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In fiscal 2016 and fiscal 2017, 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 its U.S. forecasted sales of BBP into the fourth quarter of fiscal 2018. As of December 30, 2017, the aggregate fair value of these corn option contracts was $3.4 million and is included in other current assets on the balance sheet, with an offset recorded in accumulated other comprehensive income for the effective portion. From time to time, the Company may enter into corn option contracts in the future. Gains and losses arising from open and closed portions of these contracts may have a significant impact on the Company's income if there is significant volatility in the price of corn.

As of December 30, 2017, the Company had the following outstanding forward contracts that were entered into to hedge the future payments of intercompany notes, 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):

Functional Currency		Contract Currency		Range of	U.S.
Type	Amount	Type	Amount	Hedge rates	Equivalent
Brazilian real	28,792	Euro	7,457	3.53 - 4.00	$	8,700
Brazilian real	67,834	U.S. dollar	20,590	3.16 - 3.53	20,590
Euro	65,457	U.S. dollar	77,795	1.18 - 1.20	77,795
Euro	9,017	Polish zloty	38,000	4.20 - 4.22	10,810
Euro	5,030	Japanese yen	673,000	132.64 - 134.24	6,030
Euro	28,077	Chinese renminbi	222,612	7.63 - 7.95	33,658
Euro	11,363	Australian dollar	17,800	1.57	13,621
Euro	2,890	British pound	2,565	0.89	3,465
Polish zloty	18,062	Euro	4,259	4.21 - 4.26	5,191
British pound	196	Euro	220	0.89	264
Japanese yen	280,608	U.S. dollar	2,505	110.85 - 112.99	2,505
					$	182,629

The above foreign currency contracts mature within one year and include hedges on approximately $68.0 million of intercompany notes. The above foreign currency contracts had an aggregate fair value of approximately $2.0 million and are included in other current assets and accrued expenses at December 30, 2017.

Additionally, the Company had corn options and forward contracts that are marked to market because they did not qualify for hedge accounting at December 30, 2017.  These contracts have an aggregate fair value of less than $0.6 million and are included in current other assets and accrued expenses at December 30, 2017.

As of December 30, 2017, the Company had forward purchase agreements in place for purchases of approximately $19.1 million of natural gas and diesel fuel and approximately $2.5 million of other commitments in fiscal 2016.  As of December 30, 2017, the Company had forward purchase agreements in place for purchases of approximately $22.8 million of finished product in fiscal 2017 and years beyond.

Interest Rate Sensitivity

At December 30, 2017, the Company's fixed rate debt obligations consist of the 5.375% Notes, the 4.75% Notes and other immaterial debt that accrue interest at an annual weighted average fixed rate of approximately 5.03%. As of December 30, 2017, the Company has long-term debt of approximately $0.6 billion subject to variable interest rates under the Company's Senior Secured Credit Facilities. This portion of the Company's debt is sensitive to fluctuations in interest rates. The Company estimates that a 1% increase in interest rates will increase the Company's annual interest expense by approximately $6.0 million.

Foreign Exchange

The Company has significant international operations and is subject to certain opportunities and risks, including currency fluctuations. As a result, the Company is affected by changes in foreign currency exchange rates, particularly with respect to the euro, British pound, Canadian dollar, Australian dollar, Chinese renminbi, Brazilian real, Japanese yen and the Argentine peso.

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ITEM 8.    FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

	Page
Report of Independent Registered Public Accounting Firm on Consolidated Financial       Statements	69
Report of Independent Registered Public Accounting Firm on Internal Control Over       Financial Reporting	70
Consolidated Balance Sheets -
December 30, 2017 and December 31, 2016	72
Consolidated Statements of Operations -
Three years ended December 30, 2017	73
Consolidated Statements of Comprehensive Income -
Three years ended December 30, 2017	74
Consolidated Statements of Stockholders’ Equity -
Three years ended December 30, 2017	75
Consolidated Statements of Cash Flows -
Three years ended December 30, 2017	76
Notes to Consolidated Financial Statements	77

All other schedules are omitted since the required information is not present or is not present in amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements and notes thereto.

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DARLING INGREDIENTS INC. AND SUBSIDIARIES

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors

Darling Ingredients Inc.:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Darling Ingredients Inc. and subsidiaries (the “Company”) as of December 30, 2017 and December 31, 2016, the related consolidated statements of operations, comprehensive income/(loss), stockholders’ equity, and cash flows for each of the years in the three‑year period ended December 30, 2017, and the related notes, (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 30, 2017 and December 31, 2016, and the results of its operations and its cash flows for each of the years in the three‑year period ended December 30, 2017, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 30, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 27, 2018 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ KPMG LLP

We have served as the Company’s auditor since 1989.

Dallas, Texas

February 27, 2018

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DARLING INGREDIENTS INC. AND SUBSIDIARIES

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors

Darling Ingredients Inc.:

Opinion on Internal Control Over Financial Reporting

We have audited Darling Ingredients Inc. and subsidiaries’ (the “Company”) internal control over financial reporting as of December 30, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 30, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated balance sheets of the Company as of December 30, 2017 and December 31, 2016, the related consolidated statements of operations, comprehensive income/(loss), stockholders’ equity, and cash flows for each of the years in the three-year period ended December 30, 2017, and the related notes, (collectively, the consolidated financial statements), and our report dated February 27, 2018 expressed an unqualified opinion on those consolidated financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed 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. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) 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

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company are being made only in accordance with authorizations of management and directors of the company; and (3) 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.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ KPMG LLP

Dallas, Texas

February 27, 2018

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DARLING INGREDIENTS INC. AND SUBSIDIARIES

Consolidated Balance Sheets

December 30, 2017 and December 31, 2016

(in thousands, except share and per share data)

ASSETS	December 30, 2017			December 31, 2016
Current assets:
Cash and cash equivalents	$	106,774		$	114,564
Restricted cash	142			293
Accounts receivable, less allowance for bad debts of $8,045              at December 30, 2017 and $8,090 at December 31, 2016	391,847			388,397
Inventories	358,183			330,815
Prepaid expenses	38,326			29,984
Income taxes refundable	4,509			7,479
Other current assets	56,664			21,770
Total current assets	956,445			893,302
Property, plant and equipment, net	1,645,822			1,515,575
Intangible assets, less accumulated amortization of $383,836          at December 30, 2017 and $301,187 at December 31, 2016	676,500			711,927
Goodwill	1,301,093			1,225,893
Investment in unconsolidated subsidiaries	302,038			292,717
Other assets	62,284			43,613
Deferred income taxes	14,043			14,990
	$	4,958,225		$	4,698,017
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	16,143		$	23,247
Accounts payable, principally trade	217,417			180,895
Income taxes payable	12,300			4,913
Accrued expenses	313,623			242,796
Total current liabilities	559,483			451,851
Long-term debt, net of current portion	1,698,050			1,727,696
Other noncurrent liabilities	106,287			96,114
Deferred income taxes	266,708			346,134
Total liabilities	2,630,528			2,621,795
Commitments and contingencies
Stockholders’ equity:
Common stock, $.01 par value;  250,000,000 shares authorized, 167,892,500 and 167,641,415 shares issued at December 30, 2017 and December 31, 2016, respectively	1,679			1,676
Additional paid-in capital	1,515,614			1,499,431
Treasury stock, at cost; 3,239,063 and 3,028,857 shares at           December 30, 2017 and December 31, 2016, respectively	(44,063		)	(40,909		)
Accumulated other comprehensive loss	(209,524		)	(340,006		)
Retained earnings	981,227			852,802
Total Darling's stockholders’ equity	2,244,933			1,972,994
Noncontrolling interests	82,764			103,228
Total stockholders’ equity	2,327,697			2,076,222
	$	4,958,225		$	4,698,017

The accompanying notes are an integral part of these consolidated financial statements.

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DARLING INGREDIENTS INC. AND SUBSIDIARIES

Consolidated Statements of Operations

Three years ended December 30, 2017

(in thousands, except per share data)

	December 30, 2017			December 31, 2016			January 2, 2016
Net sales	$	3,662,251		$	3,391,928		$	3,391,255
Costs and expenses:
Cost of sales and operating expenses	2,875,851			2,635,547			2,654,025
Selling, general and administrative expenses	347,487			314,005			316,383
Depreciation and amortization	302,100			289,908			269,904
Acquisition and integration costs	—			401			8,299
Total costs and expenses	3,525,438			3,239,861			3,248,611
Operating income	136,813			152,067			142,644
Other expense:
Interest expense	(88,926		)	(94,187		)	(105,530		)
Foreign currency losses	(6,898		)	(1,854		)	(4,911		)
Other expense, net	(5,293		)	(3,866		)	(6,839		)
Total other expense	(101,117		)	(99,907		)	(117,280		)
Equity in net income of unconsolidated subsidiaries	28,504			70,379			73,416
Income from operations before income taxes	64,200			122,539			98,780
Income tax expense/(benefit)	(69,154		)	15,315			13,501
Net income	133,354			107,224			85,279
Net income attributable to noncontrolling interests	(4,886		)	(4,911		)	(6,748		)
Net income attributable to Darling	$	128,468		$	102,313		$	78,531
Net income per share:
Basic	$	0.78		$	0.62		$	0.48
Diluted	$	0.77		$	0.62		$	0.48

The accompanying notes are an integral part of these consolidated financial statements.

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DARLING INGREDIENTS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

Three years ended December 30, 2017

(in thousands)

	December 30, 2017			December 31, 2016			January 2, 2016
Net income	$	133,354		$	107,224		$	85,279
Other comprehensive income/(loss), net of tax:
Foreign currency translation	121,810			(5,593		)	(162,436		)
Pension adjustments	5,829			(1,016		)	4,202
Natural gas swap derivative adjustments	(18		)	—			—
Corn option derivative adjustments	(1,078		)	625			1,767
Total other comprehensive loss, net of tax	126,543			(5,984		)	(156,467		)
Total comprehensive income/(loss)	259,897			101,240			(71,188		)
Comprehensive income attributable to noncontrolling interests	947			3,015			9,139
Comprehensive income/(loss) attributable to Darling	$	258,950		$	98,225		$	(80,327	)

The accompanying notes are an integral part of these consolidated financial statements.

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DARLING INGREDIENTS INC. AND SUBSIDIARIES

Consolidated Statements of Stockholders’ Equity

Three years ended December 30, 2017

(in thousands, except share data)

	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 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
Adjustment to initially apply FASB ASC No. 2016-09 Improvements to Employee Share-Based Payment Accounting	—		—		—			—			—			(43		)	(43		)	—			(43		)
Net income	—		—		—			—			—			128,468			128,468			4,886			133,354
Distribution of noncontrolling interest earnings	—		—		—			—			—			—			—			(4,020		)	(4,020		)
Deductions to noncontrolling interests	—		—		(1,721		)	—			—			—			(1,721		)	(17,391		)	(19,112		)
Pension liability adjustments, net of tax	—		—		—			—			5,829			—			5,829			—			5,829
Natural gas swap derivative adjustment, net of tax	—		—		—			—			(18		)	—			(18		)	—			(18		)
Corn option derivative adjustment, net of tax	—		—		—			—			(1,078		)	—			(1,078		)	—			(1,078		)
Foreign currency translation adjustments	—		—		—			—			125,749			—			125,749			(3,939		)	121,810
Stock-based compensation	—		—		14,831			—			—			—			14,831			—			14,831
Treasury stock	(210,206	)	—		—			(3,154		)	—			—			(3,154		)	—			(3,154		)
Issuance of common stock	251,085		3		3,073			—			—			—			3,076			—			3,076
Balances at December 30, 2017	164,653,437		$	1,679	$	1,515,614		$	(44,063	)	$	(209,524	)	$	981,227		$	2,244,933		$	82,764		$	2,327,697

The accompanying notes are an integral part of these consolidated financial statements.

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DARLING INGREDIENTS INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

Three years ended December 30, 2017

(in thousands)

	December 30, 2017			December 31, 2016			January 2, 2016
Cash flows from operating activities:
Net income	$	133,354		$	107,224		$	85,279
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	302,100			289,908			269,904
Deferred income taxes	(98,805		)	(11,532		)	7,807
Loss/(gain) on sale of assets	(237		)	1,744			1,311
Gain on insurance proceeds from insurance settlement	(1,427		)	(356		)	(561		)
Increase/(decrease) in long-term pension liability	2,383			(430		)	(4,811		)
Stock-based compensation expense	17,598			10,330			8,995
Write-off deferred loan costs	766			528			10,633
Deferred loan cost amortization	8,736			11,171			10,155
Equity in net income of unconsolidated subsidiaries	(28,504		)	(70,379		)	(73,416		)
Distributions of earnings from unconsolidated subsidiaries	26,761			26,317			26,589
Changes in operating assets and liabilities, net                    of effects from acquisitions:
Accounts receivable	3,482			(22,796		)	8,214
Income taxes refundable/payable	9,360			2,839			12,377
Inventories and prepaid expenses	(15,022		)	15,343			34,536
Accounts payable and accrued expenses	73,386			39,286			(11,449		)
Other	(23,344		)	(8,161		)	35,396
Net cash provided by operating activities	410,587			391,036			420,959
Cash flows from investing activities:
Capital expenditures	(274,168		)	(243,523		)	(229,848		)
Acquisitions, net of cash acquired	(12,144		)	(8,511		)	(377		)
Investment in unconsolidated subsidiary	(4,750		)	—			—
Gross proceeds from sale of property, plant and equipment and other assets	8,090			7,329			3,840
Proceeds from insurance settlement	6,054			1,537			561
Payments related to routes and other intangibles	(7,135		)	(23		)	(3,845		)
Net cash used in investing activities	(284,053		)	(243,191		)	(229,669		)
Cash flows from financing activities:
Proceeds from long-term debt	33,401			36,327			590,745
Payments on long-term debt	(149,623		)	(204,428		)	(609,255		)
Borrowings from revolving credit facility	199,495			99,276			78,244
Payments on revolving credit facility	(204,935		)	(104,028		)	(166,755		)
Net cash overdraft financing	(714		)	1,071			(1,261		)
Deferred loan costs	(6,717		)	(3,879		)	(17,310		)
Issuance of common stock	22			188			171
Repurchase of common stock	—			(5,000		)	(5,912		)
Minimum withholding taxes paid on stock awards	(3,049		)	(1,843		)	(4,874		)
Deductions of noncontrolling interest	(17,451		)	—			(87		)
Distributions to noncontrolling interests	(5,281		)	(1,552		)	(3,295		)
Net cash used in financing activities	(154,852		)	(183,868		)	(139,589		)
Effect of exchange rate changes on cash flows	20,528			(6,297		)	(3,601		)
Net increase/(decrease) in cash and cash equivalents	(7,790		)	(42,320		)	48,100
Cash and cash equivalents at beginning of year	114,564			156,884			108,784
Cash and cash equivalents at end of year	$	106,774		$	114,564		$	156,884
Supplemental disclosure of cash flow information:
Accrued capital expenditures	$	1,521		$	(937	)	$	5,325
Cash paid during the year for:
Interest, net of capitalized interest	$	78,233		$	82,094		$	78,979
Income taxes, net of refunds	$	26,304		$	23,220		$	(3,035	)
Non-cash financing activities
Debt issued for service contract assets	$	9,459		$	10		$	2,591
Contribution of assets to unconsolidated subsidiary	$	—		$	2,674		$	—

  The accompanying notes are an integral part of these consolidated financial statements.

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DARLING INGREDIENTS INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

NOTE 1.    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.  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.

(b) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) 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 of the consolidated subsidiaries is shown as an allocation of the Company's net income and is presented separately as “Net income 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.

(2) 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 30, 2017, the 52 weeks ended December 31, 2016, and the 52 weeks ended January 2, 2016.

(3) 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.

(4) 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.

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DARLING INGREDIENTS INC.

Notes to Consolidated Financial Statements (continued)

(5) Inventories

Inventories are stated at the lower of cost or net realizable value.  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.

(6) 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 acquisition of its Darling Ingredients International business.  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.

(7) 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.  

(8) Goodwill

The Company performed the annual goodwill and indefinite-lived intangible assets impairment assessments at October 28, 2017 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.

Page 78

DARLING INGREDIENTS INC.

Notes to Consolidated Financial Statements (continued)

In fiscal 2017, 2016 and 2015, the fair values of the Company’s reporting units containing goodwill exceeded the related carrying values.  Goodwill was approximately $1,301.1 million and $1,225.9 million at December 30, 2017 and December 31, 2016, respectively.  See Note 6 for further information on the Company’s goodwill.

(9) 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.

(10) 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.

During 2017, the President signed into law the Tax Cuts and Jobs Act (the “Tax Act” or “U.S. tax reform”), effective January 1, 2018, that, among other things, lowered the corporate income tax rate from 35% to 21%, moved the country towards a territorial tax system with a one-time mandatory tax on previously deferred earnings of foreign subsidiaries, and introduced new provisions regarding the taxation of global intangible low-taxed income (“GILTI”) of foreign subsidiaries. The Company will be subject to the GILTI provisions effective beginning January 1, 2018. The Financial Accounting Standards Board (“FASB”) allows companies to adopt an accounting policy to either recognize deferred taxes for GILTI or treat such as a tax cost in the year incurred. The Company’s accounting policy election is to account for GILTI as incurred. See Note 12 for further information regarding the income tax accounting impact of the Tax Act.

(11) 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.

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DARLING INGREDIENTS INC.

Notes to Consolidated Financial Statements (continued)

	Net Income per Common Share (in thousands, except per share data)
			December 30,					December 31,					January 2,
			2017					2016					2016
	Income		Shares	Per-Share		Income		Shares	Per-Share		Income		Shares	Per-Share
Basic:
Net income attributable to Darling	$	128,468	164,752	$	0.78	$	102,313	164,600	$	0.62	$	78,531	165,031	$	0.48
Diluted:
Effect of dilutive securities
Add: Option shares in the money and dilutive effect of nonvested stock	—		3,865	—		—		1,329	—		—		168	—
Less: Pro-forma treasury shares	—		(1,887)	—		—		(717)	—		—		(80)	—
Diluted:
Net income attributable to Darling	$	128,468	166,730	$	0.77	$	102,313	165,212	$	0.62	$	78,531	165,119	$	0.48

For fiscal 2017, 2016 and 2015, respectively, 340,504, 1,148,707 and 790,092 outstanding stock options were excluded from diluted income per common share as the effect was antidilutive.  For fiscal 2017, 2016 and 2015, respectively, 288,616, 758,557 and 587,961 non-vested stock were excluded from diluted income per common share as the effect was antidilutive.

(12) 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.

In March 2016, the FASB issued Accounting Standards Update (“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 employees' 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. The Company adopted this standard in the first quarter ended April 1, 2017 and prior periods were not recasted. The impact of the adoption resulted in the following:

• The Company recorded a tax benefit of approximately $0.1 million within income tax expense for the year ended December 30, 2017 related to the excess tax expense on stock options, nonvested stock, director restricted stock units and performance units. Prior to the adoption this amount would have been recorded as reduction of additional paid-in capital.

• The Company has made a policy election to account for forfeitures in the period they occur, rather than estimating a forfeiture rate. Applying this guidance on a modified retrospective basis resulted in an insignificant adjustment to opening retained earnings.

• The Company no longer reclassifies the excess tax benefit from operating activities to financing activities in the statement of cash flows. The Company elected to apply this change in presentation prospectively and thus prior periods have not been adjusted. For the year ended December 31, 2016 and January 2, 2016, the Company recognized $0.4 million, respectively of such tax benefit as a decrease in operating cash flow.

• The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares of common stock in the computation of the Company's diluted earnings per share for the year ended December 30, 2017. This increased the Company's diluted weighted average common shares outstanding by approximately 367,000 shares for the year ended December 30, 2017.

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DARLING INGREDIENTS INC.

Notes to Consolidated Financial Statements (continued)

Total stock-based compensation recognized in the statement of operations for the years ended December 30, 2017, December 31, 2016 and January 2, 2016 was approximately $17.6 million, $10.3 million and $9.0 million, respectively, which is included in selling, general and administrative expenses, and the related income tax benefit recognized was approximately $3.7 million, $3.4 million and $3.3 million, respectively.  See Note 13 for further information on the Company’s stock-based compensation plans. 

(13) 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.

(14) Financial Instruments

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 30, 2017, 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.

(15) 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

Page 81

DARLING INGREDIENTS INC.

Notes to Consolidated Financial Statements (continued)

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 30, 2017, the Company had corn options and natural gas swap contracts outstanding that qualified and were designated for hedge accounting as well as corn options and futures and foreign currency forward contracts that did not qualify and were not designated for hedge accounting.

(16) 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.

(17) Related Party Transactions

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.

(18) 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. The Company incurred net foreign currency translation gain of approximately $125.7 million in fiscal 2017 and losses of approximately $3.7 million and $164.8 million in fiscal 2016 and fiscal 2015, respectively.

(19) Reclassification

Certain prior year immaterial amounts have been reclassified to conform to the current year presentation. Previously reported amounts have been adjusted to reflect the correction of an immaterial classification error in net sales and cost of sales, as described in Note 21.

(20) 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. 

NOTE 2.    ACQUISITIONS AND DISPOSITIONS

In fiscal 2017, the Company, through a wholly-owned international subsidiary, acquired the minority interest in one of its international subsidiaries for approximately $19.1 million, including transaction costs. Additionally, the Company made other immaterial acquisitions in fiscal 2017, fiscal 2016 and fiscal 2015.

In January 2018, the Company through a wholly-owned international subsidiary, sold a portion of its interest in a majority owned consolidated subsidiary for approximately $2.8 million. This transaction will result in the foreign subsidiary being deconsolidated and accounted for using the equity method of accounting, effective January 2018. In fiscal 2017, as part of this transaction, the Company recorded $37.8 million of assets held for sale and $19.2 million

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Notes to Consolidated Financial Statements (continued)

of liabilities held for sale, which are included in other current assets and accrued liabilities, respectively. In addition, the Company recorded a loss of approximately $0.9 million in fiscal 2017.

NOTE 3.    INVENTORIES

A summary of inventories follows (in thousands):

	December 30, 2017		December 31, 2016
Finished product	$	171,277	$	156,542
Work in process	101,540		87,284
Raw material	33,173		39,859
Supplies and other	52,193		47,130
	$	358,183	$	330,815

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 adoption of this standard on January 1, 2017 did not have a material impact on the Company's consolidated financial statements. The Company's work in process inventory represents inventory in the Food Ingredients segment that is in various stages of processing.

NOTE 4.    PROPERTY, PLANT AND EQUIPMENT

A summary of property, plant and equipment follows (in thousands):

	December 30, 2017			December 31, 2016
Land	$	165,847		$	152,949
Buildings and improvements	513,078			464,957
Machinery and equipment	1,617,008			1,385,694
Vehicles	229,995			204,995
Aircraft	13,504			13,504
Construction in process	181,838			135,662
	2,721,270			2,357,761
Accumulated depreciation	(1,075,448		)	(842,186		)
	$	1,645,822		$	1,515,575

NOTE 5.    INTANGIBLE ASSETS

The gross carrying amount of intangible assets not subject to amortization and intangible assets subject to amortization is as follows (in thousands):

	December 30, 2017			December 31, 2016
Indefinite Lived Intangible Assets
Trade names	$	54,682		$	51,687
	54,682			51,687
Finite Lived Intangible Assets:
Routes	397,808			374,989
Permits	512,659			493,311
Non-compete agreements	3,963			3,638
Trade names	76,558			76,033
Royalty, consulting, land use rights and leasehold	14,666			13,456
	1,005,654			961,427
Accumulated Amortization:
Routes	(136,592		)	(105,934		)
Permits	(211,264		)	(170,165		)
Non-compete agreements	(2,387		)	(1,788		)
Trade names	(30,235		)	(21,042		)
Royalty, consulting, land use rights and leasehold	(3,358		)	(2,258		)
	(383,836		)	(301,187		)
Total Intangible assets, less accumulated amortization	$	676,500		$	711,927

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Notes to Consolidated Financial Statements (continued)

Gross intangible routes, permits, trade names, non-compete agreements and other intangibles partially decreased in fiscal 2017 and fiscal 2016 by approximately $6.7 million and $27.7 million, respectively as a result of asset retirements.

In addition, gross intangible routes, permits, trade names, non-compete agreements and other intangibles partially increased in fiscal 2017 and fiscal 2016 due to acquired intangibles of approximately $9.0 million and $7.1 million, respectively. Amortization expense for the three years ended December 30, 2017, December 31, 2016 and January 2, 2016, was approximately $78.0 million, $77.7 million and $83.3 million, respectively. Amortization expense for the next five fiscal years is estimated to be $77.3 million, $76.1 million, $75.6 million, $75.0 million and $74.0 million.

NOTE 6.    GOODWILL

Changes in the carrying amount of goodwill (in thousands):

	Feed Ingredients			Food Ingredients			Fuel Ingredients			Total
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
Goodwill acquired during year	1,880			—			—			1,880
Goodwill disposed of during year	(2,894		)	—			—			(2,894		)
Foreign currency translation	35,560			27,463			13,191			76,214
Balance at December 30, 2017
Goodwill	848,167			344,471			124,369			1,317,007
Accumulated impairment losses	(15,914		)	—			—			(15,914		)
	$	832,253		$	344,471		$	124,369		$	1,301,093

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 2017, fiscal 2016 and fiscal 2015, 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 28, 2017, October 29, 2016 and October 31, 2015, respectively.

NOTE 7.    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

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DARLING INGREDIENTS INC.

Notes to Consolidated Financial Statements (continued)

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:

(in thousands)	December 31, 2017		December 31, 2016
Assets:
Total current assets	$	202,778	$	268,734
Property, plant and equipment, net	435,328		354,871
Other assets	4,655		12,164
Total assets	$	642,761	$	635,769
Liabilities and members' equity:
Total current portion of long term debt	$	17,023	$	17,023
Total other current liabilities	40,705		23,200
Total long term debt	36,730		53,753
Total other long term liabilities	450		418
Total members' equity	547,853		541,375
Total liabilities and member's equity	$	642,761	$	635,769

	Year Ended December 31,
(in thousands)	2017			2016			2015
Revenues:
Operating revenues	$	633,908		$	527,670		$	475,934
Expenses:
Total costs and expenses less depreciation, amortization and accretion expense	547,512			353,222			298,946
Depreciation, amortization and accretion expense	28,955			27,821			19,714
Operating income	57,441			146,627			157,274
Other income	1,343			551			120
Interest and debt expense, net	(2,306		)	(7,354		)	(13,604		)
Net income	$	56,478		$	139,824		$	143,790

As of December 30, 2017, under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $273.9 million on the consolidated balance sheet and has recorded approximately $28.2 million, $69.9 million and $71.9 million in equity net income in the unconsolidated subsidiary for the years ended December 30, 2017, December 31, 2016 and January 2, 2016, 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 for fiscal years ended December 31, 2016 and December 31, 2015. These biodiesel blenders tax credits expired on December 31, 2016, as a result the DGD Joint Venture fiscal 2017 results do not include any blenders tax credits. As a blender, the DGD Joint Venture has recorded approximately $160.6 million and $156.6 million in blender credits, for its fiscal years ended December 31, 2016 and December 31, 2015, 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, the DGD Joint Venture booked all blenders tax credits in the fourth quarter. In addition, for each of the years ended December 30, 2017, December 31, 2016 and January 2, 2016, the Company received $25.0 million in dividend distributions from the DGD Joint Venture.

In February 2018, the blender tax credits for calendar year 2017 were retroactively reinstated by the U.S. Congress. The DGD Joint Venture is expected to receive approximately $160.4 million in fiscal 2018 for these reinstated blenders tax credits.

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Notes to Consolidated Financial Statements (continued)

NOTE 8.    ACCRUED EXPENSES

Accrued expenses consist of the following (in thousands):

	December 30, 2017		December 31, 2016
Compensation and benefits	$	102,474	$	83,355
Utilities and sewage	18,077		16,446
Accrued income, ad valorem, and franchise taxes	30,546		19,179
Reserve for self insurance, litigation, environmental and tax matters (Note 19)	13,101		12,479
Medical claims liability	8,502		5,070
Accrued operating expenses	61,230		55,128
Accrued interest payable	16,125		15,961
Liabilities for sale	19,172		—
Other accrued expense	44,396		35,178
	$	313,623	$	242,796

NOTE 9.    LEASES

The Company leases 14 processing plants and storage locations, land surrounding certain processing plants and 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 2104.  Minimum rental commitments under noncancellable leases as of December 30, 2017, are as follows (in thousands):

Period Ending Fiscal	Operating Leases		Capital Leases
2018	$	45,345	$	927
2019	39,414		311
2020	26,180		157
2021	14,770		—
2022	6,130		—
Thereafter	13,186		—
	$	145,025	$	1,395
Less amounts representing interest			(60		)
Capital lease obligations included in current and long-term debt			$	1,335

Rent expense was approximately $48.7 million, $43.6 million and $41.5 million, for the fiscal years ended December 30, 2017, December 31, 2016 and January 2, 2016, 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.

NOTE 10.    DEBT

Debt consists of the following (in thousands): 

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Notes to Consolidated Financial Statements (continued)

	December 30, 2017			December 31, 2016
Amended Credit Agreement:
Revolving Credit Facility ($5.3 million denominated in euro at December 31, 2016)	$	—		$	5,280
Term Loan A ($53.1 million and $76.9 million denominated in CAD at December 30, 2017 and December 31, 2016, respectively)	96,365			120,103
Less unamortized deferred loan costs	(671		)	(1,083		)
Carrying value Term Loan A	95,694			119,020
Term Loan B	505,000			583,500
Less unamortized deferred loan costs	(10,578		)	(6,298		)
Carrying value Term Loan B	494,422			577,202
5.375% Senior Notes due 2022 with effective interest of 5.72%	500,000			500,000
Less unamortized deferred loan costs	(6,638		)	(7,667		)
Carrying value 5.375% Senior Notes due 2022	493,362			492,333
4.75% Senior Notes due 2022 - Denominated in euro with effective interest of 5.10%	617,356			543,840
Less unamortized deferred loan costs - Denominated in euro	(8,675		)	(8,956		)
Carrying value 4.75% Senior Notes due 2022	608,681			534,884
Other Notes and Obligations	22,034			22,224
	1,714,193			1,750,943
Less Current Maturities	16,143			23,247
	$	1,698,050		$	1,727,696

As of December 30, 2017, the Company had outstanding debt under a term loan facility denominated in Canadian dollars of CAD$66.6 million. See below for discussion relating to the Company's debt agreements. In addition, at December 30, 2017, the Company had capital lease obligations denominated in Canadian dollars included in debt. The current and long-term capital lease obligation was approximately CAD$0.8 million and CAD$0.4 million, respectively.

As of December 30, 2017, 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 30, 2017, the Company had capital lease obligations denominated in euros included in debt. The current and long-term capital lease obligation was approximately €0.2 million and €0.1 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 18, 2017, the Company, and certain of its subsidiaries entered into an amendment (the “Fifth Amendment”) with its lenders to the Amended Credit Agreement. Among other things, the Fifth Amendment (i) refinances the term B loans under the Amended Credit Agreement with new term B loans in an aggregate principal amount of $525.0 million with a maturity date of December 18, 2024; (ii) adjusts the applicable margin pricing on borrowings under the term B loan; (iii) modifies certain of the negative covenants to increase the allowances for certain actions, including debt and investments; and (iv) makes other updates and changes.

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 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

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Notes to Consolidated Financial Statements (continued)

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 $1.88 billion comprised of (i) the Company's $350.0 million term loan A facility (ii) the Company's $525.0 million term loan B facility and (iii) the Company's $1.0 billionfive-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 $948.3 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. The revolving loan facility will be used for working capital needs, general corporate purposes and other purposes not prohibited by the Amended Credit Agreement.

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 the base rate plus 1.00% or LIBOR plus 2.00%.

As of December 30, 2017, 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 3.57% per annum. The Company had $500.0 million outstanding under the term loan B facility at LIBOR plus a margin of 2.00% per annum for a total of 3.57% per annum and $5.0 million outstanding under the term loan B facility at base rate plus a margin of 1.00% per annum for a total of 5.50% per annum. The Company had CAD$66.6 million outstanding under the term loan A Facility at CDOR plus a margin of 2.00% per annum for a total of 3.5257% per annum. As of December 30, 2017, the Company had availability of $976.0 million under the Amended Credit Agreement taking into account amounts borrowed and letters of credit issued of $24.0 million. The Company also has foreign bank guarantees that are not part of the Company's Amended Credit Agreement in the amount of approximately $12.3 million at December 30, 2017. In addition, the Company capitalized $6.3 million of deferred loan costs in fiscal year 2017 in connection with the Fifth 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 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

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Notes to Consolidated Financial Statements (continued)

to the completion of the acquisition of its Darling Ingredients International business 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 acquisition of its Darling Ingredients International business 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.

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).

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Notes to Consolidated Financial Statements (continued)

As of December 30, 2017, the Company believes it is in compliance with all financial covenants under the Amended Credit Agreement, as well as all of the other covenants contained in the Amended Credit Agreement, the 5.375% Indenture and the 4.75% Indenture.

Maturities of long-term debt at December 30, 2017 follow (in thousands):

	Contractual Debt Payment
2018	$	16,143
2019	2,274
2020	1,751
2021	98,947
2022	1,122,636
thereafter	499,004
	$	1,740,755

NOTE 11.    OTHER NONCURRENT LIABILITIES

Other noncurrent liabilities consist of the following (in thousands):

	December 30, 2017		December 31, 2016
Accrued pension liability (Note 15)	$	52,771	$	53,152
Reserve for self insurance, litigation, environmental and tax matters (Note 19)	51,903		41,251
Other	1,613		1,711
	$	106,287	$	96,114

NOTE 12.    INCOME TAXES

During fiscal 2017 the Company recorded an income tax benefit of $69.2 million, which included a tax benefit of $88.9 million due to tax law changes enacted in December 2017 in several of the Company’s major tax jurisdictions.

On December 22, 2017, U.S. tax reform was signed into law. The Tax Act significantly revises the U.S. corporate income tax by, among other things, lowering the statutory corporate tax rate from 35% to 21%, eliminating certain deductions, enhancing the option for claiming accelerated depreciation deductions through 2026, imposing a mandatory one-time tax on accumulated earnings of foreign subsidiaries (also referred to as the toll charge or transition tax), and changing how foreign earnings are subject to U.S. tax. ASC 740, Accounting for Income Taxes, requires companies to recognize the effects of changes in tax laws and tax rates on deferred tax assets and liabilities in the period in which the new legislation is enacted. Due to the timing of the Tax Act and the substantial changes it brings, the Securities and Exchange Commission (“SEC”) staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which provides registrants a measurement period to report the impact of the new U.S. tax law. During the measurement period, provisional amounts for the effects of the tax law are recorded to the extent a reasonable estimate can be made. To the extent that all information necessary is not available, prepared or analyzed, companies may recognize provisional estimated amounts for a period of up to one year following enactment of the Tax Act.

The effects of the Tax Act on Darling include two major categories: (i) mandatory deemed repatriation, and (ii) remeasurement of deferred taxes. As described further below, we recorded a net tax benefit of $75.0 million for the impact of the Tax Act in the year ended December 30, 2017. As the Company does not have all the necessary information to analyze all income tax effects of the Act, this is a provisional amount which the Company believes represents a reasonable estimate of the accounting implications of this tax reform. The Company will continue to evaluate the Act and adjust the provisional amounts as additional information is obtained and analyzed. The ultimate impact of tax reform may differ from the Company's provisional amounts due to changes in the Company's interpretations and assumptions, as well as additional regulatory guidance that may be issued.

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Notes to Consolidated Financial Statements (continued)

The Company expects to complete its detailed analysis no later than the fourth quarter of 2018. Below is a brief description of the two categories of effects from U.S. tax reform and its impact on the Company:

(i) Mandatory deemed repatriation - under the Tax Act, a company’s accumulated foreign earnings are deemed to be repatriated into the U.S. The Company recorded a provisional estimate of federal and state tax related to deemed repatriation in the amount of approximately $26.2 million. However, the Company had an existing U.S. deferred tax liability associated with foreign earnings that were not permanently reinvested outside the U.S. in the amount of $38.3 million. It is now expected that these foreign earnings can be repatriated to the U.S. without any additional U.S. tax above the amount accrued related to the mandatory deemed repatriation. Accordingly, the Company released the entire $38.3 million liability. This $38.3 million release combined with the $26.2 million amount related the mandatory deemed repatriation resulted in the Company recognizing a net provisional tax benefit of $12.1 million for this item. No material cash impact is expected from the deemed repatriation due to existing tax loss carryforwards.

(ii) Remeasurement of deferred taxes - under the Tax Act, the U.S. corporate income tax rate was reduced from 35% to 21%. Accordingly, Darling remeasured the Company's net U.S. deferred tax liability as of December 30, 2017 using the new 21% federal rate, which resulted in a provisional tax benefit of $62.9 million. The Company has significant net operating loss carryforwards to offset the mandatory one-time repatriation; therefore, the Company reduced its deferred tax asset related to its net operating loss carryforwards rather than incurring a toll charge liability for which a cash payment would otherwise be required.

These provisional amounts for the mandatory repatriation and its impact on the Company’s deferred taxes represent reasonable estimates, which required significant effort to determine based on numerous assumptions with respect to analyzing the Company’s post-1986 accumulated untaxed foreign earnings including historical practices, judgments made in the interpretation of the provisions in the Tax Act and estimates used in the calculations. The Company considers it likely that the U.S. Treasury Department, the IRS and other standard-setting bodies will issue technical guidance on how provisions of the Tax Act will be applied or otherwise administered, which may be different from the Company’s interpretation.

Also, in December 2017, Belgium and France enacted tax law changes resulting in a tax benefit of approximately $13.9 million. This amount is comprised of a benefit of approximately $4.4 million from the re-measurement of net deferred tax liabilities due to a reduction in the corporate tax rate in each country. Additionally, Belgium enacted a new provision increasing its participation exemption to 100%, which generally allows tax-free dividends to be received from subsidiaries resulting in a tax benefit of approximately $9.6 million.

U.S. and foreign income from operations before income taxes are as follows (in thousands):

	December 30, 2017		December 31, 2016		January 2, 2016
United States	$	179	$	48,869	$	50,473
Foreign	64,021		73,670		48,307
Income from operations before income taxes	$	64,200	$	122,539	$	98,780

Income tax expense attributable to income from continuing operations before income taxes consists of the following (in thousands):

	December 30, 2017			December 31, 2016			January 2, 2016
Current:
Federal	$	274		$	65		$	(21,775	)
State	(80		)	(332		)	411
Foreign	31,256			27,992			29,871
Total current	31,450			27,725			8,507
Deferred:
Federal	(76,056		)	(8,056		)	13,057
State	622			(649		)	(1,521		)
Foreign	(25,170		)	(3,705		)	(6,542		)
Total deferred	(100,604		)	(12,410		)	4,994
	$	(69,154	)	$	15,315		$	13,501

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Notes to Consolidated Financial Statements (continued)

Income tax expense for the years ended December 30, 2017, December 31, 2016 and January 2, 2016, 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):

	December 30, 2017			December 31, 2016			January 2, 2016
Computed "expected" tax expense	$	22,470		$	42,888		$	34,573
Change in valuation allowance	1,609			1,039			4,421
Deferred tax on unremitted foreign earnings	641			2,546			4,848
Sub-Part F income	6,284			6,159			4,923
Foreign rate differential	(8,292		)	(9,982		)	(5,653		)
Biofuel tax incentives	—			(28,435		)	(28,143		)
Change in tax law
One-time U.S. transition tax	26,243			—			—
Deferred tax effects	(115,169		)	2,169			—
Other, net	(2,940		)	(1,069		)	(1,468		)
	$	(69,154	)	$	15,315		$	13,501

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 30, 2017 and December 31, 2016 are presented below (in thousands):

	December 30, 2017			December 31, 2016
Deferred tax assets:
Loss contingency reserves	$	8,546		$	11,998
Employee benefits	8,471			9,586
Pension liability	12,224			18,200
Intangible assets amortization, including taxable goodwill	1,475			2,317
Net operating losses	89,660			119,602
Tax credits	7,057			3,473
Inventory	6,295			8,523
Accrued liabilities and other	13,764			13,340
Total gross deferred tax assets	147,492			187,039
Less valuation allowance	(24,530		)	(20,150		)
Net deferred tax assets	122,962			166,889
Deferred tax liabilities:
Intangible assets amortization, including taxable goodwill	(170,294		)	(189,233		)
Property, plant and equipment depreciation	(166,217		)	(207,729		)
Investment in DGD Joint Venture	(29,516		)	(47,607		)
Tax on unremitted foreign earnings	(8,045		)	(49,196		)
Other	(1,555		)	(4,268		)
Total gross deferred tax liabilities	(375,627		)	(498,033		)
Net deferred tax liability	$	(252,665	)	$	(331,144	)
Amounts reported on Consolidated Balance Sheets:
Non-current deferred tax asset	$	14,043		$	14,990
Non-current deferred tax liability	(266,708		)	(346,134		)
Net deferred tax liability	$	(252,665	)	$	(331,144	)

At December 30, 2017, the Company had net operating loss carryforwards for federal income tax purposes of approximately $138.2 million, which begin to expire in 2020 through 2036.  As a result of the change in ownership which occurred pursuant to the May 2002 recapitalization, utilization of approximately $2.1 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 $203.9 million of net operating loss carryforwards for state income tax purposes, which expire in 2019 through 2036. The Company had foreign net operating loss carryforwards of about

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DARLING INGREDIENTS INC.

Notes to Consolidated Financial Statements (continued)

$192.0 million, $102.7 million of which expire in 2018 through 2037 and $89.3 million of which can be carried forward indefinitely. Also at December 30, 2017, the Company had U.S. federal and state tax credit carryforwards of approximately $1.4 million, and tax credit carryforwards with respect to its foreign tax jurisdictions of approximately $5.6 million. As of December 30, 2017, the Company had a valuation allowance of $2.8 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 $21.7 million due to uncertainties in its ability to utilize foreign net operating loss carryforwards, tax credit carryforwards and other foreign deferred tax assets.

At December 30, 2017, the Company had unrecognized tax benefits of approximately $2.4 million. During fiscal 2017, the Company entered into a settlement agreement with the Darling Ingredients International business seller in which an indemnity receivable of $3.0 million was collected and the Company generally accepted responsibility for any remaining tax liabilities in pre-acquisition tax years. 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 $2.0 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 30, 2017, interest and penalties related to unrecognized tax benefits were $1.3 million.

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):

	December 30, 2017			December 31, 2016
Balance at beginning of Year	$	4,667		$	5,604
Change in tax positions related to current year	290			—
Change in tax positions related to prior years	(198		)	99
Change in tax positions due to settlement with tax authorities	(1,949		)	—
Expiration of the Statute of Limitations	(426		)	(1,036		)
Balance at end of year	$	2,384		$	4,667

In fiscal 2017, the Company's major taxing jurisdictions are U.S. (federal and state), Belgium, Brazil, Canada, China, France, Germany and the Netherlands. The Company is subject to regular examination by various 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.

Many of the Company's operations are conducted outside the United States. As a result of the Tax Act and the mandatory repatriation, the Company expects to have access to its offshore earnings with minimal to no additional U.S. tax impact. Therefore, the Company will no longer consider these earnings to be permanently reinvested offshore. As of December 30, 2017, a deferred tax liability of approximately $8.0 million has been recorded for any incremental taxes, including foreign withholding taxes, that are estimated to be incurred when those earnings are distributed to the U.S. in future years.

NOTE 13.    STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION

On August 7, 2017, the Company's Board of Directors approved the extension for an additional two years of its previously announced share repurchase program of up to an aggregate of $100.0 million of the Company's Common Stock depending on market conditions. As of December 30, 2017, the Company has approximately $100 million remaining under the share repurchase program approved in August 2017.

On May 9, 2017, the shareholders approved the Company's 2017 Omnibus Incentive Plan (the “2017 Omnibus Plan”).  The 2017 Omnibus Plan replaced the Company's 2012 Omnibus Incentive Plan (the “2012 Omnibus Plan”) for future grants. Under the 2017 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

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DARLING INGREDIENTS INC.

Notes to Consolidated Financial Statements (continued)

to 20,166,500 common shares available under the 2017 Omnibus Plan which may be granted to participants in any plan year (as such term is defined in the 2017 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 2017 Omnibus Plan.  The 2017 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 2017 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 2017 Omnibus Plan.  Beginning fiscal 2017, 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 2017 Omnibus Plan.  The principal purpose of the LTIP is to encourage the participants 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 participants. The Committee adopted similar LTIPs for fiscal 2015 and 2016, as subplans under the terms of the 2012 Omnibus Plan. At December 30, 2017, the number of common shares available for issuance under the 2017 Omnibus Plan was 16,576,999.

For fiscal 2015, 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 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”, “Fiscal 2017 LTIP PSU Awards” and “Fiscal 2016 LTIP PSU Awards” below for more information regarding the stock options and PSU awards under the 2017 LTIP and 2016 LTIP.

The following is a summary of stock-based compensation awards granted during the years ended December 30, 2017, December 31, 2016 and January 2, 2016.

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 LTIPs under the 2012 Omnibus Plan and the 2017 Omnibus Plan, as the case may be. For the options granted under the fiscal 2015 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 2017 LTIP and 2016 LTIP, the exercise price was equal to the closing price of Darling common shares on the date of grant, which was February 6, 2017 and February 25, 2016, respectively and such options vest 33.33% on the first, second and third anniversaries of the grant. The Company granted 956,809 stock options under the 2017 LTIP and 1,094,306 stock options under the 2016 LTIP.

During fiscal 2017, 2016 and 2015 only nonqualified stock options were issued and none of the options were incentive stock options. The Company’s stock options granted under the LTIPs generally terminate 10 years after the date of grant. 

A summary of all stock option activity as of December 30, 2017 and changes during the year ended is as follows:

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Notes to Consolidated Financial Statements (continued)

	Number of shares		Weighted-avg. exercise price per share		Weighted-avg. remaining contractual life
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
Granted	956,809		12.29
Exercised	(27,968	)	8.51
Forfeited	(4,000	)	13.55
Expired	—		—
Options outstanding at December 30, 2017	3,290,757		$	11.86	7.3 years
Options exercisable at December 30, 2017	1,516,605		$	12.90	5.9 years

The fair value of each stock option grant under the LTIPs was estimated on the date of grant using the Black Scholes option-pricing model with the following weighted average assumptions and results for fiscal 2017, 2016 and 2015.

Weighted Average	2017	2016	2015
Expected dividend yield	0.0%	0.0%	0.0%
Risk-free interest rate	2.00%	1.35%	1.82%
Expected term	5.82 years	5.76 years	5.75 years
Expected volatility	33.4%	34.4%	38.0%
Fair value of options granted	$4.34	$3.34	$5.59

The expected lives for options granted during fiscal 2017, 2016 and 2015 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 30, 2017, $7.8 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 1.1 years.

For the year ended December 30, 2017, the amount of cash received from the exercise of options was less than $0.1 million and the related tax benefit was less than $0.1 million. 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 benefits were approximately $0.4 million. The total intrinsic value of options exercised for the years ended December 30, 2017, December 31, 2016 and January 2, 2016 was approximately $0.2 million, $0.2 million and $1.4 million, respectively.  The fair value of shares vested for the years ended December 30, 2017, December 31, 2016 and January 2, 2016 was approximately $11.3 million, $8.3 million and $7.5 million, respectively.  At December 30, 2017, the aggregate intrinsic value of options outstanding was approximately $20.8 million and the aggregate intrinsic value of options exercisable was approximately $8.1 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

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Notes to Consolidated Financial Statements (continued)

to U.S. based employees, while 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. For grants made under the 2012 Omnibus Plan, both non-vested stock and RSUs generally vest 25 percent upon grant and 25 percent each of the first three anniversary dates of the grant thereafter. For grants made under the 2017 Omnibus Plan, both non-vested stock and RSUs generally vest on the first three anniversary dates of the grant. 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.

A summary of the Company’s non-vested stock, restricted stock unit and performance share unit awards as of December 30, 2017, and changes during the year ended is as follows:

	Non-Vested, RSU and PSU Shares		Weighted Average Grant Date Fair Value
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
Shares granted	104,750		12.27
Shares vested	(486,086	)	13.98
Shares forfeited	(239,581	)	20.90
Stock awards outstanding December 30, 2017	360,344		$	13.18

Fiscal 2017 LTIP PSU Awards. On February 6, 2017, the Committee granted 559,388 PSUs under the Company's 2017 LTIP. The PSUs are tied to a three-year forward-looking performance period and will be earned based on the Company's average return on capital employed (ROCE), as calculated in accordance with the terms of the award agreement, relative to the average ROCE of the Company's performance peer group companies over the same performance period, with the earned award to be determined in the first quarter of fiscal 2020, after the final results for the relevant performance period are determined.

Fiscal 2016 LTIP PSU Awards. On February 25, 2016, the Committee granted 664,120 PSUs under the Company's 2016 LTIP, 153,000 of which are tied to a two-year forward-looking performance period and 511,120 of which are tied to a three-year, forward-looking performance period and all of which will be earned based on the Company's average ROCE, as calculated in accordance with the terms of the award agreement, relative to the average ROCE of the Company's performance peer group companies over the same performance periods, 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.

Under the 2017 LTIP and 2016 LTIP, 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 2017 LTIP and 2016 LTIP PSU award under the Company's 2017 LTIP and 2016 LTIP was estimated on the date of grant using a Monte Carlo model with the following weighted average assumptions for fiscal 2017 and fiscal 2016, except for the illiquidity discount, which only pertains to the 2017 LTIP and 2016 LTIP PSU's with a holding period requirement.

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Notes to Consolidated Financial Statements (continued)

Weighted Average	2017	2016
Expected dividend yield	0.0%	0.0%
Risk-free interest rate	1.40%	0.80%
Expected term	2.89 years	2.62 years
Expected volatility	32.7%	29.3%
Illiquidity discount	14.0%	16.1%

A summary of the Company’s 2017 and 2016 LTIP PSU awards as of December 30, 2017, and changes during the year ended is as follows:

	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
Granted	559,388		11.14
Vested	—		—
Forfeited	(82,492	)	9.99
LTIP PSU awards outstanding December 30, 2017	1,141,016		$	8.91

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 Company's 2004 Omnibus Incentive Plan (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 received $90,000 of restricted stock units immediately following the Company’s annual meeting of stockholders at which such directors are elected. Beginning in fiscal 2017, the Board increased the dollar amount of the annual grant of restricted stock units to $110,000, and such grants are now made under the 2017 Omnibus Plan. 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 grantee’s separation from service as a result of death or disability, or (iii) 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 earlier distributions 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.

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Notes to Consolidated Financial Statements (continued)

A summary of the Company’s non-employee director restricted stock awards as of December 30, 2017, and changes during the year ended is as follows:

	Restricted stock and Restricted Stock Unit Shares		Weighted Average Grant Date Fair Value
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
Restricted shares granted	60,575		15.63
Restricted shares where the restriction lapsed	(14,915	)	12.42
Restricted shares forfeited	(2,210	)	14.51
Stock awards outstanding December 30, 2017	154,809		$	14.91

NOTE 14.    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 30, 2017, December 31, 2016 and January 2, 2016 are as follows (in thousands):

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DARLING INGREDIENTS INC.

Notes to Consolidated Financial Statements (continued)

	Before-Tax			Tax (Expense)			Net-of-Tax
	Amount			or Benefit			Amount
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 (loss)	4,405			(1,710		)	2,695
Total corn options	2,888			(1,121		)	1,767
Foreign currency translation
Other comprehensive income/(loss)	(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 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	)
Year Ended December 30, 2017
Defined Benefit Pension Plans
Actuarial (loss)/gain recognized	$	4,027		$	(1,264	)	$	2,763
Amortization of actuarial loss	4,786			(1,801		)	2,985
Amortization of prior service costs	35			(11		)	24
Amortization of settlement	42			(15		)	27
Other	30			—			30
Total defined benefit pension plans	8,920			(3,091		)	5,829
Natural gas swap derivatives
Loss/(gain) reclassified to net income	35			(14		)	21
Gain/(loss) recognized in other comprehensive income (loss)	(65		)	26			(39		)
Total natural gas derivatives	(30		)	12			(18		)
Corn option derivatives
Loss/(gain) reclassified to net income	(5,255		)	2,039			(3,216		)
Gain/(Loss) recognized in other comprehensive income	3,494			(1,356		)	2,138
Total corn options	(1,761		)	683			(1,078		)
Foreign currency translation	121,810			—			121,810
Other comprehensive income/(loss)	$	128,939		$	(2,396	)	$	126,543

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DARLING INGREDIENTS INC.

Notes to Consolidated Financial Statements (continued)

	Fiscal Year Ended
	December 30, 2017			December 31, 2016			January 2, 2016			Statement of Operations Classification
Derivative instruments
Natural gas swap derivatives	$	(35	)	$	—		$	—		Cost of sales and operating expenses
Corn option derivatives	5,255			3,868			1,517			Cost of sales and operating expenses
	5,220			3,868			1,517			Total before tax
	(2,025		)	(1,501		)	(589		)	Income taxes
	3,195			2,367			928			Net of tax
Defined benefit pension plans
Amortization of prior service cost	$	(35	)	$	(36	)	$	67		(a)
Amortization of actuarial loss	(4,786		)	(4,632		)	(5,101		)	(a)
Amortization of curtailment	—			—			1,181			(a)
Amortization of settlement	(42		)	114			(5,291		)	(a)
	(4,863		)	(4,554		)	(9,144		)	Total before tax
	1,827			1,753			3,090			Income taxes
	(3,036		)	(2,801		)	(6,054		)	Net of tax
Total reclassifications	$	159		$	(434	)	$	(5,126	)	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.

The following table presents changes in each component of accumulated comprehensive income (loss) as of December 30, 2017 as follows (in thousands):

	Fiscal Year Ended December 30, 2017
	Foreign Currency			Derivative			Defined Benefit
	Translation			Instruments			Pension Plans			Total
Accumulated Other Comprehensive Income/(loss) December 31, 2016, attributable to Darling, net of tax	$	(308,910	)	$	2,468		$	(33,564	)	$	(340,006	)
Other comprehensive gain before reclassifications	121,810			2,099			2,793			126,702
Amounts reclassified from accumulated other comprehensive income/(loss)	—			(3,195		)	3,036			(159		)
Net current-period other comprehensive income	121,810			(1,096		)	5,829			126,543
Noncontrolling interest	(3,939		)	—			—			(3,939		)
Accumulated Other Comprehensive Income/(loss) December 30, 2017, attributable to Darling, net of tax	$	(183,161	)	$	1,372		$	(27,735	)	$	(209,524	)

NOTE 15.    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.

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 2017, 2016 and 2015 were approximately $9.6 million, $9.2 million and $9.3 million, respectively. The Company's matching portion and annual employer contributions to the Company's foreign defined contribution plans for fiscal 2017, 2016 and 2015 were approximately $7.5 million, $6.2 million and $3.0 million, respectively.

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DARLING INGREDIENTS INC.

Notes to Consolidated Financial Statements (continued)

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. The Company uses 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, 2017 and December 31, 2016) (in thousands):

	December 30, 2017			December 31, 2016
Change in projected benefit obligation:
Projected benefit obligation at beginning of period	$	189,290		$	182,276
Service cost	3,043			2,549
Interest cost	6,711			6,950
Employee contributions	436			439
Plan amendments	(8		)	101
Actuarial loss/(gain)	8,051			7,905
Benefits paid	(7,063		)	(7,146		)
Effect of curtailment	—			(1,286		)
Effect of settlement	(884		)	(953		)
Other	5,152			(1,545		)
Projected benefit obligation at end of period	204,728			189,290
Change in plan assets:
Fair value of plan assets at beginning of period	134,909			127,970
Actual return on plan assets	19,030			10,138
Employer contributions	4,214			5,250
Employee contributions	436			439
Benefits paid	(7,063		)	(7,146		)
Effect of settlement	(884		)	(953		)
Divestiture	(2,262		)	—
Other	2,137			(789		)
Fair value of plan assets at end of period	150,517			134,909
Funded status	(54,211		)	(54,381		)
Net amount recognized	$	(54,211	)	$	(54,381	)
Amounts recognized in the consolidated balance    sheets consist of:
Current liability	$	(1,440	)	$	(1,229	)
Noncurrent liability	(52,771		)	(53,152		)
Net amount recognized	$	(54,211	)	$	(54,381	)
Amounts recognized in accumulated other    comprehensive loss consist of:
Net actuarial loss	$	43,651		$	52,525
Prior service cost/(credit)	371			417
Net amount recognized  (a)	$	44,022		$	52,942

(a) Amounts do not include deferred taxes of $16.3 million and $19.4 million at December 30, 2017 and December 31, 2016, respectively.

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 74% and 75% of the projected benefit obligation for fiscal 2017 and fiscal 2016, respectively. Additionally, the Company has made required and tax deductible discretionary contributions to its domestic pension plans in fiscal 2017 and fiscal 2016 of approximately $1.0 million and

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DARLING INGREDIENTS INC.

Notes to Consolidated Financial Statements (continued)

approximately $0.6 million, respectively. The Company made required and tax deductible discretionary contributions to its foreign pension plans in fiscal 2017 and fiscal 2016 of approximately $3.3 million and $ 4.7 million, respectively.

	December 30, 2017		December 31, 2016
Projected benefit obligation	$	204,728	$	189,290
Accumulated benefit obligation	192,192		181,340
Fair value of plan assets	150,517		134,909

Net pension cost includes the following components (in thousands):

	December 30, 2017			December 31, 2016			January 2, 2016
Service cost	$	3,043		$	2,549		$	6,638
Interest cost	6,711			6,950			10,536
Expected return on plan assets	(7,181		)	(7,552		)	(12,229		)
Net amortization and deferral	4,821			4,668			5,034
Curtailment	—			(1,285		)	(1,181		)
Settlement	42			(114		)	(2,353		)
Net pension cost	$	7,436		$	5,216		$	6,445

Amounts recognized in accumulated other comprehensive income (loss) for the year ended (in thousands):

	2017		2016
Actuarial (loss)/gain recognized:
Reclassification adjustments	$	2,985	$	2,846
Actuarial (loss)/gain recognized during the period	2,763		(3,861		)
Amortization of settlement	27		(69		)
Prior service (cost) credit recognized:
Reclassification adjustments	24		24
Other	30		44
	$	5,829	$	(1,016	)

The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic pension cost in fiscal 2018 is as follows (in thousands):

	2018
Net actuarial loss	$	3,556
Prior service cost	35
	$	3,591

Weighted average assumptions used to determine benefit obligations were:

	December 30, 2017	December 31, 2016	January 2, 2016
Discount rate	3.40%	3.81%	4.13%
Rate of compensation increase	0.38%	0.38%	0.31%

Weighted average assumptions used to determine net periodic benefit cost for the employee benefit pension plans were:

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DARLING INGREDIENTS INC.

Notes to Consolidated Financial Statements (continued)

	December 30, 2017	December 31, 2016	January 2, 2016
Discount rate	3.49%	3.55%	3.47%
Rate of increase in future compensation levels	0.43%	0.84%	0.38%
Expected long-term rate of return on assets	6.17%	6.52%	6.62%

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 6.4% 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 3.3%.

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.

Fixed Income	35% - 80%
Equities	20% - 65%

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):

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DARLING INGREDIENTS INC.

Notes to Consolidated Financial Statements (continued)

	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  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
Balances as December 30, 2017
Fixed Income:
Long Term	$	23,231	$	23,231	$	—	$	—
Short Term	1,869		1,869		—		—
Equity Securities:
Domestic equities	44,173		44,173		—		—
International equities	28,152		28,152		—		—
Insurance contracts	9,876		—		6,501		3,375
Total categorized in fair value hierarchy	107,301		97,425		6,501		3,375
Other investments measured at NAV	43,216
Totals	$	150,517	$	97,425	$	6,501	$	3,375

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 2017 and 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:

	Insurance
(in thousands of dollars)	Contracts
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
Unrealized gains/(losses) relating to instruments still held in the reporting period.	203
Purchases, sales, and settlements	—
Exchange rate changes	389
Balance as of December 30, 2017	$	3,375

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DARLING INGREDIENTS INC.

Notes to Consolidated Financial Statements (continued)

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 $5.0 million to meet funding requirements for its domestic and foreign pension plans in fiscal 2018.

Estimated Future Benefit Payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 

Year Ending	Pension Benefits
2018	$	9,780
2019	9,790
2020	9,641
2021	11,385
2022	11,098
Years 2023 – 2027	61,843

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):

											Expiration
Pension	EIN Pension	Pension Protection Act Zone Status		FIP/RP Status Pending/	Contributions						Date of Collective Bargaining
Fund	Plan Number	2017	2016	Implemented	2017		2016		2015		Agreement
Western Conference of Teamsters Pension Plan	91-6145047 / 001	Green	Green	No	$	1,524	$	1,456	$	1,387	April 2020 (b)
Central States, Southeast and Southwest Areas Pension Plan (a)	36-6044243 / 001	Red	Red	Yes	968		934		858		August 2018 (c)
All other multiemployer plans					980		983		986
		Total Company Contributions			$	3,472	$	3,373	$	3,231

(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.

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DARLING INGREDIENTS INC.

Notes to Consolidated Financial Statements (continued)

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 $3.5 million, $3.4 million and $3.2 million for the years ended December 30, 2017, December 31, 2016 and January 2, 2016, 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 30, 2017, the Company has an aggregate accrued liability of approximately $1.7 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 requireadditional funding under the Pension Protection Act of 2006, the amounts could be material.

NOTE 16.    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 30, 2017, the Company had natural gas swap contracts and corn option contracts outstanding that qualified and were designated for hedge accounting as well as corn options and forward contracts 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 2017, the Company entered into natural gas swap contracts that are considered cash flow hedges. Under the terms of the natural gas swap contracts , the Company fixed the expected purchase cost of a portion of its U.S plants' forecasted natural gas usage into the first quarter of fiscal 2018. As of December 30, 2017, some of the contracts have expired and settled according to the contracts while the remaining contract positions and activity are disclosed below.

In fiscal 2016 and fiscal 2017, 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 2018. As of December 30, 2017, all fiscal 2016 contracts and some of the fiscal 2017 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.

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DARLING INGREDIENTS INC.

Notes to Consolidated Financial Statements (continued)

As of December 30, 2017, 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):

Functional Currency		Contract Currency
Type	Amount	Type	Amount
Brazilian real	28,792	Euro	7,457
Brazilian real	67,834	U.S. Dollar	20,590
Euro	65,457	U.S. Dollar	77,795
Euro	9,017	Polish zloty	38,000
Euro	5,030	Japanese yen	673,000
Euro	28,077	Chinese renminbi	222,612
Euro	11,363	Australian dollar	17,800
Euro	2,890	British pound	2,565
Polish zloty	18,062	Euro	4,259
British pound	196	Euro	220
Japanese yen	280,608	U.S. dollar	2,505

The Company estimates the amount that will be reclassified from accumulated other comprehensive gain at December 30, 2017 into earnings over the next 12 months will be approximately $2.2 million.  As of December 30, 2017, 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 30, 2017 and December 31, 2016 (in thousands):

Derivatives Designated	Balance Sheet	Asset Derivatives Fair Value
as Hedges	Location	December 30, 2017		December 31, 2016
Corn options	Other current assets	$	3,418	$	4,235
Total derivatives designated as hedges		$	3,418	$	4,235
Derivatives not Designated as Hedges
Foreign currency contracts	Other current assets	$	332	$	8,939
Corn options and futures	Other current assets	596		151
Total derivatives not designated as hedges		$	928	$	9,090
Total asset derivatives		$	4,346	$	13,325

Derivatives Designated	Balance Sheet	Liability Derivatives Fair Value
as Hedges	Location	December 30, 2017		December 31, 2016
Natural gas swaps	Accrued expenses	$	24	$	—
Total derivatives designated as hedges		$	24	$	—
Derivatives not Designated as Hedges
Foreign currency contracts	Accrued Expenses	$	2,288	$	608
Corn options and futures	Accrued Expenses	14		122
Total derivatives not designated as hedges		$	2,302	$	730
Total liability derivatives		$	2,326	$	730

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Notes to Consolidated Financial Statements (continued)

The effect of the Company's derivative instruments on the consolidated financial statements for the fiscal years ended December 30, 2017 and December 31, 2016 are as follows (in thousands):

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)
	2017			2016		2017			2016		2017			2016
Corn options	$	3,494		$	4,889	$	5,255		$	3,868	$	711		$	331
Natural gas swaps	(65		)	—		(35		)	—		(25		)	—
Total	$	3,429		$	4,889	$	5,220		$	3,868	$	686		$	331

(a) Amount recognized in accumulated OCI (effective portion) is reported as accumulated other comprehensive gain of approximately $3.4 million and approximately $4.9 million recorded net of taxes of approximately $(1.3) million and approximately $(1.9) million for the year ended December 30, 2017 and December 31, 2016, respectively.

(b) Gains and (losses) reclassified from accumulated OCI into income (effective portion) for corn options 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 corn options and natural gas swaps is included in other income/(expense), net in the Company’s consolidated statements of operations.

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 30, 2017, December 31, 2016 and January 2, 2016 (in thousands):

		Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges
		For The Year Ended
Derivatives not designated as hedging instruments	Location	December 30, 2017			December 31, 2016			January 2, 2016
Foreign exchange	Foreign currency loss/(gain)	$	13,460		$	(1,542	)	$	(27,321	)
Foreign exchange	Selling, general and administrative expense	(2,763		)	(8,543		)	7,508
Corn options and futures	Net sales	212			472			(2		)
Corn options and futures	Cost of sales and operating expenses	(1,659		)	(1,411		)	(2,067		)
Natural gas and heating oil swaps and options	Cost of sales and operating expenses	—			—			132
Heating oil swaps and options	Net sales	492			455			—
Soybean meal	Net sales	(405		)	7			—
Soybean oil	Net sales	45			—			—
Total		$	9,382		$	(10,562	)	$	(21,750	)

At December 30, 2017, the Company had forward purchase agreements in place for purchases of approximately $19.1 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.

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Notes to Consolidated Financial Statements (continued)

NOTE 17.    FAIR VALUE MEASUREMENT

FASB authoritative guidancewhich 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 30, 2017 and December 31, 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.

			Fair Value Measurements at December 30, 2017 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	$	4,346	$	—	$	4,346	$	—
Total Assets	4,346		—		4,346		—
Liabilities
Derivative liabilities	2,326		—		2,326		—
5.375% Senior Notes	513,100		—		513,100		—
4.75% Senior Notes	646,681		—		646,681		—
Term Loan A	95,883		—		95,883		—
Term Loan B	511,616		—		511,616		—
Total Liabilities	$	1,769,606	$	—	$	1,769,606	$	—

			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	$	—

Derivative assets and liabilities consist of the Company's natural gas swap contracts and corn option and future contracts and foreign currency 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.

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Notes to Consolidated Financial Statements (continued)

NOTE 18.    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 2017, 2016 and 2015.

NOTE 19.    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 30, 2017 and December 31, 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 $61.4 million and $51.9 million, respectively.  The Company has insurance recovery receivables of approximately $25.0 million and $15.9 million, as of December 30, 2017 and December 31, 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,

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Notes to Consolidated Financial Statements (continued)

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. In January 2017, the Company entered into a non-binding letter of intent with the City of Fresno pursuant to which the City and the Company will work toward the execution of a definitive agreement to relocate the facility to a different location in Fresno. Whether an agreement to relocate the facility ultimately gets executed is subject to the Company’s receipt of certain incentives and an agreement by the Concerned Citizens of West Fresno to settle and dismiss the aforementioned litigation. 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.

NOTE 20.    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 fats and proteins, used cooking oil, trap grease and food residuals collection businesses, the Rothsay ingredients business, and the ingredients and specialty products businesses conducted by Darling Ingredients International under the Sonac name (proteins, fats, and plasma products) and (ii) the Company's bakery residuals business.

Food Ingredients

Food Ingredients consists principally of (i) the gelatin and collagen hydrolysates business conducted by Darling Ingredients International under the Rousselot name, (ii) the natural casings and meat-by-products business conducted by Darling Ingredients International under the CTH name and (iii) certain specialty products businesses conducted by Darling Ingredients International under the Sonac name.

Fuel Ingredients

The Company's Fuel Ingredients segment consists of (i) the Company's biofuel business conducted under the Dar Pro® and Rothsay names (ii) the bioenergy business conducted by Darling Ingredients International under the Ecoson and Rendac names and (iii) the Company's investment in the DGD Joint Venture.

The Fuel Ingredients segment results did not include any blenders tax credits in fiscal 2017. In February 2018, the blender tax credits for calendar year 2017 were retroactively reinstated by the U.S. Congress. The Fuel Ingredients segment is expected to receive approximately $12.6 million in fiscal 2018 for these reinstated blenders tax credits.

Business Segments (in thousands):

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Notes to Consolidated Financial Statements (continued)

	Feed Ingredients		Food Ingredients		Fuel Ingredients		Corporate			Total
Fiscal Year Ended December 30, 2017
Net Sales	$	2,239,492	$	1,156,976	$	265,783	$	—		$	3,662,251
Cost of sales and operating expenses	1,744,768		920,575		210,508		—			2,875,851
Gross Margin	494,724		236,401		55,275		—			786,400
Selling, general and administrative expense	180,866		104,982		10,467		51,172			347,487
Depreciation and amortization	184,172		75,010		31,019		11,899			302,100
Segment operating income/(loss)	129,686		56,409		13,789		(63,071		)	136,813
Equity in net income of unconsolidated subsidiaries	265		—		28,239		—			28,504
Segment income	129,951		56,409		42,028		(63,071		)	165,317
Total other expense										(101,117		)
Income before income taxes										$	64,200
Segment assets at December 30, 2017	$	2,614,545	$	1,499,027	$	688,890	$	155,763		$	4,958,225

	Feed Ingredients		Food Ingredients		Fuel Ingredients		Corporate			Total
Fiscal Year Ended December 31, 2016
Net Sales	$	2,089,145	$	1,055,725	$	247,058	$	—		$	3,391,928
Cost of sales and operating expenses	1,624,858		828,223		182,466		—			2,635,547
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

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Notes to Consolidated Financial Statements (continued)

	Feed Ingredients		Food Ingredients		Fuel Ingredients		Corporate			Total
Fiscal Year Ended January 2, 2016
Net Sales	$	2,074,333	$	1,088,727	$	228,195	$	—		$	3,391,255
Cost of sales and operating expenses	1,613,402		863,562		177,061		—			2,654,025
Gross Margin	460,931		225,165		51,134		—			737,230
Selling, general and administrative expense	178,624		97,110		7,264		33,385			316,383
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

Business Segment Property, Plant and Equipment (in thousands):

	December 30, 2017		December 31, 2016		January 2, 2016
Depreciation and amortization:
Feed Ingredients	$	184,172	$	178,845	$	165,854
Food Ingredients	75,010		70,120		66,817
Fuel Ingredients	31,019		28,531		26,711
Corporate Activities	11,899		12,412		10,522
Total	$	302,100	$	289,908	$	269,904
Capital expenditures:
Feed Ingredients	$	191,953	$	167,313	$	153,894
Food Ingredients	50,099		50,020		49,066
Fuel Ingredients	24,707		22,323		19,478
Corporate Activities	7,409		3,867		7,410
Total (a)	$	274,168	$	243,523	$	229,848

(a) Excludes immaterial capital assets acquired by acquisition in fiscal 2017, fiscal 2016 and fiscal 2015.

Geographic Area Net Trade Revenues (in thousands):

	December 30, 2017		December 31, 2016		January 2, 2016
North America	$	1,937,027	$	1,817,659	$	1,951,421
Europe	1,372,750		1,225,397		1,066,779
China	209,780		218,480		234,978
South America	60,111		55,089		62,035
Other	82,583		75,303		76,042
Total	$	3,662,251	$	3,391,928	$	3,391,255

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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Notes to Consolidated Financial Statements (continued)

	FY 2017		FY 2016
	Long-Lived Assets		Long-Lived Assets
North America	$	2,468,111	$	2,411,489
Europe	1,292,020		1,158,087
China	151,760		152,150
South America	81,247		74,837
Other	8,642		8,152
Total	$	4,001,780	$	3,804,715

NOTE 21.    QUARTERLY FINANCIAL DATA (UNAUDITED AND IN THOUSANDS EXCEPT PER SHARE AMOUNTS):

	Year Ended December 30, 2017
	First  Quarter (a)			Second  Quarter (a)			Third  Quarter (a)			Fourth  Quarter (b)
Net sales	$	878,510		$	894,930		$	936,262		$	952,549
Operating income	31,414			37,063			33,310			35,026
Income from operations before income taxes	9,216			18,070			14,980			21,934
Net income	7,398			10,328			8,684			106,944
Net (income)/loss attributable to minority interests	(1,569		)	(1,179		)	(923		)	(1,215		)
Net income/(loss) attributable to Darling	5,829			9,149			7,761			105,729
Basic earnings per share	0.04			0.06			0.05			0.64
Diluted earnings per share	0.04			0.05			0.05			0.63

(a) Previously reported amounts have been adjusted to reflect the correction of an immaterial classification error in net sales and cost of sales. Net sales and cost of sales were each decreased by approximately $1.6 million in the first quarter of fiscal 2017, approximately $1.4 million in the second quarter of fiscal 2017, approximately $1.4 million in the third quarter of fiscal 2017.

(b) Included in net income is a net tax benefit relating to the U.S. tax reform passed by congress in December 2017 of approximately $75.0 million.

	Year Ended December 31, 2016
	First  Quarter (c)			Second  Quarter (c)			Third  Quarter (c)			Fourth  Quarter (c), (d)
Net sales	$	778,375		$	875,777		$	852,018		$	885,758
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

(c) Previously reported amounts have been adjusted to reflect the correction of an immaterial classification error in net sales and cost of sales. Net sales and cost of sales were each decreased by approximately $1.3 million in the first quarter of fiscal 2016, approximately $1.6 million in the second quarter of fiscal 2016, approximately $1.8 million in the third quarter of fiscal 2016 and $1.5 million in the fourth quarter of fiscal 2016.

(d) 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.

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Notes to Consolidated Financial Statements (continued)

NOTE 22.    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 30, 2017, December 31, 2016 and January 2, 2016, the Company has recorded sales to the DGD Joint Venture of approximately $171.3 million, $150.5 million and $158.7 million, respectively. At December 30, 2017 and December 31, 2016, the Company has approximately $5.6 million and $6.3 million in outstanding receivables due from the DGD Joint Venture, respectively. In addition, the Company has eliminated additional sales of approximately $4.1 million, $4.1 million and $5.0 million for the year ended December 30, 2017, December 31, 2016 and January 2, 2016, 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 30, 2017, December 31, 2016 and January 2, 2016 of approximately $0.9 million, $0.7 million and $0.8 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, 2018, 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 30, 2017, no amounts are owed to Darling Green under the DGD Loan Agreement.

NOTE 23.    NEW ACCOUNTING PRONOUNCEMENTS

In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU amends Topic 220, Income Statement - Reporting Comprehensive Income, which will allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The ASU is effective for fiscal years beginning after December 15, 2018 and for interim periods therein with early adoption permitted. The Company is currently evaluating the impact of this standard.

In August 2017, the FASB issued ASU No. 2017-12, Targeted Improvement to Accounting for Hedging Activities. This ASU amends Topic 815, Derivatives and Hedging, which is intended to more closely align hedge accounting with companies' risk management strategies and simplify the application of hedge accounting. The guidance includes certain targeted improvements to ease the operational burden of applying hedge accounting. The ASU is effective for fiscal years beginning after December 15, 2018 and for interim periods therein with early adoption permitted. The Company will be required to apply the guidance on a cumulative-effect basis with adjustment to retained earnings as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of this standard.

In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU amends Topic 715, Compensation - Retirement Benefits, which requires that an employer report the service cost component of net benefit costs to be disaggregated from all other components and reported in the same line item or items as other compensation costs. The other components of net benefit cost are required to be presented in the income statement separately from the service cost. The ASU is effective for fiscal years beginning after December 15, 2017 and for interim periods therein. The initial adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements.

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

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Notes to Consolidated Financial Statements (continued)

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 initial adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements.

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 initial adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements.

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 initial adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements.

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 initial adoption of this ASU is not expected to 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 disclosures, 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 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

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DARLING INGREDIENTS INC.

Notes to Consolidated Financial Statements (continued)

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 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 assessment, the Company has elected to adopt this standard on a modified retrospective basis beginning in fiscal 2018. The adoption will not change the timing of revenues as the Company's revenues have been determined to be recognized at a point in time and not over time. The Company has elected not to capitalize contract fulfillment costs as the recovery of such costs are for a period of less than one year's time and are not material to the Company. Additionally, the Company has elected to treat shipping and handling as fulfillment costs, which will result in a reduction of revenue and a reduction of cost of sales for fiscal 2017 and fiscal 2016 of approximately $161.1 million and $149.0 million, respectively with no impact on overall earnings. The Company is currently reviewing the expanded incremental disclosures and the disaggregation of revenues disclosures as required under ASU No. 2014-09.

NOTE 24.    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 30, 2017 and December 31, 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 30, 2017, December 31, 2016 and January 2, 2016. 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.

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DARLING INGREDIENTS INC.

Notes to Consolidated Financial Statements (continued)

Condensed Consolidating Balance Sheet

As of December 30, 2017

(in thousands)

	Parent		Guarantors		Non-guarantors		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	1,724	$	2,993	$	102,057	$	—		$	106,774
Restricted cash	103		—		39		—			142
Accounts receivable	37,453		465,653		436,874		(548,133		)	391,847
Inventories	18,049		84,805		255,329		—			358,183
Income taxes refundable	1,591		—		2,918		—			4,509
Prepaid expenses	10,787		3,141		24,398		—			38,326
Other current assets	7,117		923		48,624		—			56,664
Total current assets	76,824		557,515		870,239		(548,133		)	956,445
Investment in subsidiaries	4,734,618		1,167,246		844,044		(6,745,908		)	—
Property, plant and equipment, net	278,121		501,842		865,859		—			1,645,822
Intangible assets, net	17,034		258,970		400,496		—			676,500
Goodwill	21,860		551,837		727,396		—			1,301,093
Investment in unconsolidated subsidiaries	4,341		—		297,697		—			302,038
Other assets	42,078		314,166		193,923		(487,883		)	62,284
Deferred income taxes	—		—		14,043		—			14,043
	$	5,174,876	$	3,351,576	$	4,213,697	$	(7,781,924	)	$	4,958,225
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	$	115	$	—	$	16,028	$	—		$	16,143
Accounts payable	555,894		37,466		169,033		(544,976		)	217,417
Income taxes payable	32		373		11,895		—			12,300
Accrued expenses	105,625		30,542		180,613		(3,157		)	313,623
Total current liabilities	661,666		68,381		377,569		(548,133		)	559,483
Long-term debt, net of current portion	1,030,736		—		1,155,197		(487,883		)	1,698,050
Other noncurrent liabilities	69,711		—		36,576		—			106,287
Deferred income taxes	106,543		—		160,165		—			266,708
Total liabilities	1,868,656		68,381		1,729,507		(1,036,016		)	2,630,528
Total stockholders' equity	3,306,220		3,283,195		2,484,190		(6,745,908		)	2,327,697
	$	5,174,876	$	3,351,576	$	4,213,697	$	(7,781,924	)	$	4,958,225

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DARLING INGREDIENTS INC.

Notes to Consolidated Financial Statements (continued)

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 tax 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

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Notes to Consolidated Financial Statements (continued)

Condensed Consolidating Statements of Operations

For the year ended December 30, 2017

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	545,699		$	1,464,920		$	1,893,304		$	(241,672	)	$	3,662,251
Cost and expenses:
Cost of sales and operating expenses	429,681			1,198,271			1,489,571			(241,672		)	2,875,851
Selling, general and administrative expenses	151,896			55,053			140,538			—			347,487
Depreciation and amortization	42,366			106,406			153,328			—			302,100
Total costs and expenses	623,943			1,359,730			1,783,437			(241,672		)	3,525,438
Operating income	(78,244		)	105,190			109,867			—			136,813
Interest expense	(55,336		)	15,818			(49,408		)	—			(88,926		)
Foreign currency gains/(losses)	(234		)	114			(6,778		)	—			(6,898		)
Other income/(expense), net	(13,635		)	37			8,305			—			(5,293		)
Equity in net income of unconsolidated subsidiaries	(1,847		)	—			30,351			—			28,504
Earnings in investments in subsidiaries	438,580			—			—			(438,580		)	—
Income/(loss) from operations before taxes	289,284			121,159			92,337			(438,580		)	64,200
Income taxes (benefit)	160,816			(130,508		)	(99,462		)	—			(69,154		)
Net (income)/loss attributable to noncontrolling interests	—			—			(4,886		)	—			(4,886		)
Net income/(loss) attributable to Darling	$	128,468		$	251,667		$	186,913		$	(438,580	)	$	128,468

Condensed Consolidating Statements of Operations

For the year ended December 31, 2016

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	501,856		$	1,341,925		$	1,746,657		$	(198,510	)	$	3,391,928
Cost and expenses:
Cost of sales and operating expenses	392,876			1,085,582			1,355,599			(198,510		)	2,635,547
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			1,631,944			(198,510		)	3,239,861
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

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Notes to Consolidated Financial Statements (continued)

Condensed Consolidating Statements of Operations

For the year ended January 2 2016

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	475,213		$	1,363,279		$	1,753,609		$	(200,846	)	$	3,391,255
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			138,183			—			316,383
Depreciation and amortization	34,889			98,400			136,615			—			269,904
Acquisition costs	3,177			—			5,122			—			8,299
Total costs and expenses	530,503			1,262,955			1,655,999			(200,846		)	3,248,611
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 subsidiary	—			—			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

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the year ended December 30, 2017

(in thousands)

	Parent			Guarantors		Non-guarantors		Eliminations			Consolidated
Net income	$	133,354		$	251,667	$	186,913	$	(438,580	)	$	133,354
Other comprehensive income/(loss), net of tax:
Foreign currency translation	—			—		121,810		—			121,810
Pension adjustments	4,797			—		1,032		—			5,829
Natural gas swap derivative adjustments	(18		)	—		—		—			(18		)
Corn option derivative adjustments	(1,078		)	—		—		—			(1,078		)
Total other comprehensive income, net of tax	3,701			—		122,842		—			126,543
Total comprehensive income/(loss)	137,055			251,667		309,755		(438,580		)	259,897
Comprehensive income attributable to noncontrolling interests	—			—		947		—			$	947
Comprehensive income/(loss) attributable to Darling	$	137,055		$	251,667	$	308,808	$	(438,580	)	$	258,950

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Notes to Consolidated Financial Statements (continued)

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the year ended December 31, 2016

(in thousands)

	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

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the year ended January 2, 2016

(in thousands)

	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
Natural gas swap derivative adjustments	—		—		—			—			—
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	)

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Notes to Consolidated Financial Statements (continued)

Condensed Consolidating Statements of Cash Flows

For the year ended December 30, 2017

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	133,354		$	251,667		$	186,913		$	(438,580	)	$	133,354
Earnings in investments in subsidiaries	(438,580		)	—			—			438,580			—
Other operating cash flows	489,302			(240,494		)	28,425			—			277,233
Net cash provided/(used) by operating activities	184,076			11,173			215,338			—			410,587
Cash flows from investing activities:
Capital expenditures	(83,520		)	(74,384		)	(116,264		)	—			(274,168		)
Acquisitions, net of cash acquired	—			(12,144		)	—			—			(12,144		)
Investment in subsidiaries and affiliates	(6,309		)	(13,386		)	—			14,945			(4,750		)
Note receivable from affiliates	—			82,000			(82,000		)	—			—
Gross proceeds from sale of property, plant and equipment and other assets	2,577			3,980			1,533			—			8,090
Proceeds from insurance settlements	—			—			6,054			—			6,054
Payments related to routes and other intangibles	(7,135		)	—			—			—			(7,135		)
Net cash provide/(used) in investing activities	(94,387		)	(13,934		)	(190,677		)	14,945			(284,053		)
Cash flows from financing activities:
Proceeds from long-term debt	—			—			33,401			—			33,401
Payments on long-term debt	(79,706		)	—			(69,917		)	—			(149,623		)
Borrowings from revolving credit facility	170,000			—			29,495			—			199,495
Payments on revolving credit facility	(170,000		)	—			(34,935		)	—			(204,935		)
Net overdraft financing	—			—			(714		)	—			(714		)
Deferred loan costs	(6,717		)	—			—			—			(6,717		)
Issuance of common stock	22			—			—			—			22
Contributions from parent	—			—			14,945			(14,945		)	—
Minimum withholding taxes paid on stock awards	(3,034		)	—			(15		)	—			(3,049		)
Deduction of noncontrolling interest	—			—			(5,281		)	—			(5,281		)
Distributions to noncontrolling interests	—			—			(17,451		)	—			(17,451		)
Net cash provided/(used) in financing activities	(89,435		)	—			(50,472		)	(14,945		)	(154,852		)
Effect of exchange rate changes on cash and cash equivalent	—			—			20,528			—			20,528
Net increase/(decrease) in cash and cash equivalents	254			(2,761		)	(5,283		)	—			(7,790		)
Cash and cash equivalents at beginning of year	1,470			5,754			107,340			—			114,564
Cash and cash equivalents at end of year	$	1,724		$	2,993		$	102,057		$	—		$	106,774

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Notes to Consolidated Financial Statements (continued)

Condensed Consolidating Statements of Cash Flows

For the year ended December 31, 2016

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income/(loss)	$	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 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 provided/(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		)
Issuances of common stock	188			—			—			—			188
Repurchase of common 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 equivalents	—			—			(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

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DARLING INGREDIENTS INC.

Notes to Consolidated Financial Statements (continued)

Condensed Consolidating Statements of Cash Flows

For the year ended January 2, 2016

(in thousands)

	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/(used) 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		)
Borrowing 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 common 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

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PART II

ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A.  CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures.

As required by Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company’s management, including the Chief Executive Officer and Chief Financial Officer, conducted an evaluation, as of the end of the period covered by this report, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures.  As defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, disclosure controls and procedures are controls and other procedures of the Company that are designed to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms.  Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Based on management’s evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report.

Internal Control over Financial Reporting.

(a)    Management’s Annual Report on Internal Control over Financial Reporting.  Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) promulgated under the Exchange Act.  Those rules define internal control over financial reporting as a process designed 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 and includes those policies and procedures that:

• 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.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The Company’s management assessed the effectiveness of the Company's internal control over financial reporting as of December 30, 2017. In making this assessment, the Company's management used the criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) (2013).

Based on their assessment, management has concluded that the Company’s internal control over financial reporting was effective at the reasonable assurance level as of December 30, 2017.

KPMG LLP, the registered public accounting firm that audited the Company's financial statements, has issued an audit report on management’s assessment of the Company’s internal control over financial reporting, which report is included herein.

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(b)    Attestation Report of the Registered Public Accounting Firm.  The attestation report called for by Item 308(b) of Regulation S-K is incorporated herein by reference to Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Reporting, included in Part II, Item 8. “Financial Statements and Supplementary Data” of this report.

(c)    Changes in Internal Control over Financial Reporting.  As required by Exchange Act Rule 13a-15(d), the Company's management, including the Chief Executive Officer and Chief Financial Officer, also conducted an evaluation of the Company's internal control over financial reporting to determine whether any change occurred during the last fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.  Based on that evaluation there has been no change in the Company’s internal control over financial reporting during the last fiscal quarter of the period covered by this report other than SOX control changes related to the upgrade of accounting software at in North America and at its international operations that has materially affected, or is reasonably likely to materially affect the Company's internal control over financial reporting.

ITEM 9B.  OTHER INFORMATION

None.

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PART III

ITEM 10.  DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required by this Item with respect to Items 401, 405 and 407 of Regulation S-K will appear in the sections entitled “Election of Directors,”  “Our Management - Executive Officers and Directors,” “Section 16(a) Beneficial Ownership Reporting Compliance” and “Corporate Governance-Committees of the Board - Audit Committee” included in the Company’s definitive Proxy Statement relating to the 2018 annual meeting of stockholders, which will be filed no later than 120 days after December 30, 2017, and such information is incorporated herein by reference.

The Company has adopted the Darling Ingredients Inc. Code of Conduct (“Code of Conduct”), which is applicable to all of the Company’s employees, including its senior financial officers, the Chief Executive Officer, Chief Financial Officer, Chief Accounting Officer, Controller, Treasurer and General Counsel.  A copy of the Company’s Code of Conduct has been posted on the “Investor” portion of our web site, at www.darlingii.com.  We intend to satisfy the disclosure requirements of the SEC regarding amendments to, or waivers from, the Code of Conduct by posting such information on the same web site.

ITEM 11.  EXECUTIVE COMPENSATION

The information required by this Item will appear in the sections entitled “Executive Compensation,” “Compensation Committee Report” and “Corporate Governance - Compensation Committee Interlocks and Insider Participation” included in the Company’s definitive Proxy Statement relating to the 2018 annual meeting of stockholders, which will be filed no later than 120 days after December 30, 2017, and such information is incorporated herein by reference.

ITEM 12.   SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

EQUITY COMPENSATION PLANS

The following table sets forth certain information as of December 30, 2017, with respect to the Company's equity compensation plans (including individual compensation arrangements) under which the Company's equity securities are authorized for issuance, aggregated by (i) all compensation plans previously approved by the Company's security holders, and (ii) all compensation plans not previously approved by the Company's security holders.  The table includes:

• 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	4,602,563	(1)	$11.24	16,576,999
Equity compensation plans not approved by security holders	–		–	–
Total	4,602,563		$11.24	16,576,999

(1) Includes shares underlying options that have been issued and granted non-vested stock pursuant to the Company’s 2004 Omnibus Incentive Plan, 2012 Omnibus Incentive Plan and 2017 Omnibus Incentive Plan, each as approved by the Company’s stockholders.  See Note 13 of Notes to Consolidated Financial Statements for information regarding the material features of the 2017 Omnibus Incentive Plan.

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The information required by this Item with respect to Item 403 of Regulation S-K will appear in the section entitled “Security Ownership of Certain Beneficial Owners and Management” included in the Company’s definitive Proxy Statement relating to the 2018 annual meeting of stockholders, which will be filed no later than 120 days after December 30, 2017, and such information is incorporated herein by reference.

ITEM 13.   CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information required by this Item will appear in the sections entitled “Transactions with Related Persons, Promoters and Certain Control Persons,”  “Corporate Governance – Code of Business Conduct” and “Corporate Governance - Independent Directors” included in the Company's definitive Proxy Statement relating to the 2018 annual meeting of stockholders, which will be filed no later than 120 days after December 30, 2017, and such information is incorporated herein by reference.

ITEM 14.   PRINCIPAL ACCOUNTING FEES AND SERVICES

The information required by this Item will appear in the section entitled “Ratification of Selection of Independent Registered Public Accountant” included in the Company’s definitive Proxy Statement relating to the 2018 annual meeting of stockholders, which will be filed no later than 120 days after December 30 2017, and such information is incorporated herein by reference.

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PART IV

ITEM 15.   EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(a) Documents filed as part of this report:

(1) The following consolidated financial statements are included in Item 8.

	Page
Report of Independent Registered Public Accounting Firm on Consolidated Financial       Statements	69
Report of Independent Registered Public Accounting Firm on Internal Control Over       Financial Reporting	70
Consolidated Balance Sheets -
December 30, 2017 and December 31, 2016	72
Consolidated Statements of Operations -
Three years ended December 30, 2017	73
Consolidated Statements of Comprehensive Income -
Three years ended December 30, 2017	74
Consolidated Statements of Stockholders’ Equity -
Three years ended December 30, 2017	75
Consolidated Statements of Cash Flows -
Three years ended December 30, 2017	76
Notes to Consolidated Financial Statements	77

All other schedules are omitted since the required information is not present or is not present in amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements and notes thereto.

Page 130

(3) Exhibits

(With regard to applicable cross-references in the list of exhibits below, the Company's Current, Quarterly and Annual Reports are filed with the Securities and Exchange Commission under File No. 001-13323).

Exhibit No.
	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 3.1 to the Company’s Current Report on Form 8-K filed March 1, 2017 and incorporated herein by reference).
	4.1	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).
	4.2	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).
	4.3	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).
	4.4	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).
	4.5	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).

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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	Fifth Amendment, dated as of December 18, 2017, 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, 2017 and incorporated herein by reference).
10.7	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).
10.8	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).
10.9	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).
10.10	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).
10.11	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).
10.12	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).
10.13	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).
10.14 *	Darling International Inc. 2004 Omnibus Incentive Plan (filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed May 17, 2005 (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 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).
10.16 *	Amendment to Darling International Inc. 2004 Omnibus Incentive Plan (filed as Exhibit 10.15 to the Company's Current Report on Form 10-K filed February 28, 2017 and incorporated herein by reference).
10.17 *	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).
10.18 *	Amendment to Darling International Inc. 2012 Omnibus Incentive Plan (filed as Exhibit 10.17 to the Company's Current Report on Form 10-K filed February 28, 2017 and incorporated herein by reference).

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10.19 *	Darling Ingredients Inc. 2017 Omnibus Incentive Plan (filed as Exhibit 4.6 to the Company’s Registration Statement on Form S-8 filed May 9, 2017 and incorporated herein by reference).
10.20 *	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).
10.21 *	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).
10.22 *	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).
10.23 *	Form of Performance Unit Award Agreement for 2017 awards under the 2017 Omnibus Incentive Plan (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed May 11, 2017 and incorporated herein by reference).
10.24 *	Form of Stock Option Notice and Agreement for 2017 awards under the 2017 Omnibus Incentive Plan (filed as Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed May 11, 2017 and incorporated herein by reference).
10.25 *	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).
10.26 *	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).
10.27 *	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).
10.28 *	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).
10.29 *	Form of Notice of Grant of Restricted Stock Unit Award (Non-Employee Directors) under the Darling International Inc. 2017 Omnibus Incentive Plan (filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed August 9, 2017 and incorporated herein by reference).
10.30 *	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).
10.31 *	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).
10.32 *	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).
10.33 *	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).
10.34 *	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).
10.35 *	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).

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10.36 *	Amended and Restated Senior Executive Termination Benefits Agreement, dated effective as of January 1, 2018, between Darling Ingredients Inc. and John O. Muse (filed herewith).
10.37 *	Senior Executive Termination Benefits Agreement, dated effective as of January 15, 2017, between Darling Ingredients Inc. and Patrick C. Lynch (filed as Exhibit 10.33 to the Company's Current Report on Form 10-K filed February 28, 2017 and incorporated herein by reference).
10.38 *	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 Brad Phillips, 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, 2017 (filed herewith).
101	Interactive Data Files Pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets as of December 30, 2017 and December 31, 2016; (ii) Consolidated Statements of Operations for the years ended December 30, 2017, December 31, 2016 and January 2, 2016; (iii) Consolidated Statements of Comprehensive Income for the years ended December 30, 2017, December 31, 2016 and January 2, 2016; (iv) Consolidated Statements of Stockholders’ Equity for the years ended December 30, 2017, December 31, 2016 and January 2, 2016; (v) Consolidated Statements of Cash Flows for the years ended December 30, 2017, December 31, 2016 and January 2, 2016; (vi) Notes to the Consolidated Financial Statements.
	The Exhibits are available upon request from the Company.
*	Management contract or compensatory plan or arrangement.

Page 134

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. 

	DARLING INGREDIENTS INC.
By:	/s/  Randall C. Stuewe
	Randall C. Stuewe
	Chairman of the Board and
	Chief Executive Officer
Date:	February 27, 2018

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/  Randall C. Stuewe	Chairman of the Board and	February 27, 2018
Randall C. Stuewe	Chief Executive Officer
	(Principal Executive Officer)
/s/  Brad Phillips	Chief Financial Officer	February 27, 2018
Brad Phillips	(Principal Financial Officer)
/s/  Brenda Snell	Chief Accounting Officer	February 27, 2018
Brenda Snell	(Principal Accounting Officer)
/s/  Charles Adair	Director	February 27, 2018
Charles Adair
/s/  D. Eugene Ewing	Director	February 27, 2018
D. Eugene Ewing
/s/  Linda Goodspeed	Director	February 27, 2018
Linda Goodspeed
/s/ Dirk Kloosterboer	Director	February 27, 2018
Dirk Kloosterboer
/s/  Mary R. Korby	Director	February 27, 2018
Mary R. Korby
/s/  Cynthia Pharr Lee	Director	February 27, 2018
Cynthia Pharr Lee
/s/  Charles Macaluso	Director	February 27, 2018
Charles Macaluso
/s/  Gary W. Mize	Director	February 27, 2018
Gary W. Mize
/s/  Michael E. Rescoe	Director	February 27, 2018
Michael E. Resco

Page 135

EX-10.36

Exhibit 10.36

AMENDED AND RESTATED

SENIOR EXECUTIVE

TERMINATION BENEFITS AGREEMENT

This Amended and Senior Executive Termination Benefits Agreement (this “Agreement”), dated as of January 1, 2018 (the “Effective Date”), is entered into by and between Darling Ingredients Inc., a Delaware corporation (the “Company”), and John O. Muse (the “Executive”).

W I T N E S S E T H:

WHEREAS, Executive and the Company previously entered into that certain Senior Executive Termination Benefits Agreement dated as of December 9, 2014 (the “Prior Termination Benefits Agreement”);

WHEREAS, Executive has had a change in position and responsibilities but remains as a key member of the Company’s management team and as such will make valuable contributions to the productivity and profitability of the Company;

WHEREAS, Executive and Employee desire to amend the Prior Termination Benefits Agreement in certain respects;

WHEREAS, this Agreement amends, restates and supersedes the Prior Termination Benefits Agreement in its entirety; and

WHEREAS, the Company considers that providing the severance benefits provided for herein will operate as an incentive for the Executive to remain employed by the Company;

NOW, THEREFORE, to induce the Executive to remain employed by the Company, and to acknowledge the “At Will” status of the Executive’s employment by the Company, and for other good and valuable consideration, the Company and the Executive agree as follows:

1.Circumstances Triggering Receipt of Severance Benefits.

Subject to the Executive’s execution of a general release (on the Company’s standard form) in favor of the Company pursuant to which the Executive waives, effective as of the Termination Date (as hereinafter defined), any and all claims, known or unknown, relating to the Executive’s employment by the Company or the termination thereof, the Company shall provide the Executive with the benefits set forth in Section 3 upon any termination of the Executive’s employment for any reason except the following:

(a) Termination by reason of the Executive’s “voluntary termination.” For the purposes of this Agreement, “voluntary termination” shall mean the voluntary resignation by the Executive of his employment with the Company;

1

(b) “Termination with Cause.” For the purposes hereof, “Cause” shall mean termination of employment of the Executive by the Company following (1) failure of the Executive to render services to the Company in accordance with the reasonable directions of the Company’s Chief Executive Officer or Board of Directors, which failure shall continue after 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.

For the purpose of this Agreement, the placement of the Executive on permanent or long-term disability status as defined by the Company’s long-term disability policy covering the Executive and the death of the Executive shall not be deemed a termination and shall not qualify the Executive for the benefits set forth in this Agreement. Notwithstanding the foregoing, the Executive must deliver to the Company the general release (as described above), for which the seven-day revocation period has expired, no later than thirty (30) days following the Termination Date. Any payments that would be made pursuant to Section 3(a), Section 3(c) or Section 3(e) prior to the thirtieth (30th) day following the Termination Date shall be made on the first payroll date after the thirtieth (30th) day following the Termination Date.

2.No Entitlement of Employment and Acknowledgment of “At Will” Status.

This Agreement shall not be construed as and does not constitute a promise or guaranty of continued employment. In consideration of this Agreement, the Executive acknowledges and agrees that his employment with the Company is “At Will”. The Executive understands that his employment with the Company is not for a specified term and is at the mutual consent of the Executive and the Company and, therefore, the Company can terminate the employment relationship at will, with or without Cause.

2

3.Termination Benefits.

Subject to the conditions set forth in Section 1, and subject to the mitigation provisions contained in Section 5, the following benefits (subject to any changes in benefit programs that may occur in the future and any applicable payroll or other taxes required to be withheld) shall be provided to the Executive:

(a) Compensation. Commencing on the Termination Date (as defined below), the Executive shall be paid periodically, according to his unit’s wage practices, the amount of his periodic base salary until he has been paid one (1) times his annual base salary (“Termination Pay Amount”) at the rate in effect on the date of the termination of his employment with the Company (the “Termination Date”). Each such periodic termination payment is hereby designated a separate payment for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”).

(b) Vacation Pay. Any accrued vacation pay due but not yet taken at the Termination Date shall be paid to the Executive on the Termination Date.

(a) Welfare Benefits, etc. The Executive’s participation (including dependant 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 for a period of one year from the Termination Date 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 one year from the Termination Date for health, dental and other similar COBRA coverage for the Executive and Executive’s eligible dependants, and such payments shall be includible in the Executive’s gross income.

(b) Bonus and Retirement Benefits. The Executive shall not be entitled to any bonus under the Company’s executive bonus plan for the year in which his termination occurs. The Agreement shall not affect the Executive’s entitlement to benefits under the Company’s retirement plan accrued as of his termination.

(c) 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 Executive has obtained employment, or (iii) until such time the Company’s expenses equal Ten Thousand Dollars ($10,000).

3

4.Entirety.

This Agreement constitutes the entire agreement between the parties pertaining to the subject matter contained herein and supersedes all prior and contemporaneous agreements, representations and understandings of the parties. No supplement, modification or amendment of this Agreement shall be binding unless referring specifically to this Agreement and executed in writing by the parties hereto. In no event will the Executive be entitled to severance under both this Agreement and the Company’s severance policy, if any, as it is the intent of the parties hereto that the severance provided for in this Agreement shall be in lieu of, and not in addition to, the severance that the Executive would otherwise be entitled to under the Company’s severance policy, if any.

5.Mitigation.

The Executive is required to mitigate the Termination Pay Amount by seeking other comparable employment as promptly as practicable after the Termination Date and amounts due hereunder shall be offset against or reduced by any amount earned from such other employment. The benefits provided for in Section 3(c) shall terminate upon the Executive’s obtaining such other employment. The Executive hereby agrees to notify the Company promptly upon obtaining employment. Immediately upon the Company’s request, and as a condition to receiving the benefits provided in Section 3(c), Executive shall sign an Internal Revenue Service Form 4506 (or equivalent form) authorizing the Company to receive a copy of Executive’s Form 1040 individual income tax return for the year or years for which Executive receives or may receive the benefits provided in Section 3(c).

6.Certain Obligations of Executive.

In order to induce the Company to enter into this Agreement, the Executive hereby agrees to the following obligations, which obligations of the Executive shall be in addition to, and shall not limit, any other obligation of the Executive to the Company with respect to the matters set forth herein or otherwise:

(a) Nondisclosure. The Executive acknowledges that during his employment he will have access to Confidential Information (as hereinafter defined) which has great value to the Company. The Executive hereby agrees that all documents, records, techniques, business secrets, price and route information, business strategy and other information, whether in electronic form, hardcopy or other format, which have come into his possession from time to time during his employment by the Company or which may come into his possession during his employment (collectively, “Confidential Information”), shall be deemed to be confidential and proprietary to the Company and the Executive further agrees to retain in confidence any Confidential Information known to him concerning the Company and its affiliates and their respective businesses, unless such information (i) is publicly disclosed by the Company or (ii) is required to be disclosed by

4

valid legal process; provided, however, that prior to any such disclosure, if reasonably practicable, the Executive must first notify the Company and cooperate with the Company (at the Company’s expense) in seeking a protective order; and further provided that nothing in this Section 6(a) limits any provision of Section 6(h) below.

(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 6(b) limits any provision of Section 6(h) below. If such items are not returned in accordance with this Section 6(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 6(d) limits any provision of Section 6(h) below.

(e) Non-Competition Agreement. During the period of employment with the Company and for a period of 12 months thereafter, the Executive shall not, directly or indirectly, own, manage, operate, have any interest as an

5

employee, salesman, consultant, officer or director, control or participate in the ownership, management, operation or control of any business, whether in corporate, proprietorship or partnership form or otherwise, engaged in any city, state or part thereof in the United States in the (i) production of ingredients through the collection and/or processing of animal by-products, bakery residuals and/or used cooking oil or (ii) servicing of grease traps (a “Restricted Business”); provided, however, that the restrictions contained in this Section 6(e) shall not restrict (A) the acquisition of any capital stock or other securities of the Company and (ii) the acquisition by Executive, directly or indirectly, of less than 1% of the outstanding capital stock of any publicly traded company engaged in a Restricted Business.

(f) 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 6(f) limits any provision of Section 6(h) below.

(g) Damages. Notwithstanding anything in this Agreement to the contrary, if the Executive breaches the covenants contained in this Section 6, 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 6.

(h) 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

6

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.

7. Successors.

The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession has taken place.

8. Governing Law.

The validity, interpretation, construction and performance of this Agreement shall be governed by the internal laws of the State of Texas.

9.Termination.

This Agreement shall terminate on December 31, 2018 (the “Term”); provided, however, that the Term shall automatically extend for successive one (1) year periods on December 31, 2018 and each anniversary thereof, unless the Executive’s employment is terminated prior thereto or the Company provides written notice to the Executive of the Company’s intention not to extend the Term at least six (6) months prior to the applicable extension date.

10.Compliance with Code Section 409A.

To the extent applicable, this Agreement shall be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued thereunder. Notwithstanding any provision of this Agreement to the contrary, and if and only to the extent it becomes necessary to prevent any accelerated or additional tax under Section 409A of the Code, if the Executive is a “specified employee” as defined in Section 409A of the Code, any severance pay or benefits constituting deferred compensation to which Section 409A applies and payable by reason of the Executive’s termination of employment (severance pay and benefits up to $530,000 are not subject to Section 409A) shall be deferred (without any adjustment to the amount of such payments or benefits ultimately paid or provided to the Executive) until the date that

7

is six (6) months following such termination (or the earliest date as is permitted under Section 409A of the Code). A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits subject to Section 409A of the Code upon or following a termination of employment until such termination is also a “separation from service” within the meaning of Section 409A of the Code and for purposes of any such provision of this Agreement, references to a “resignation,” “termination,” “terminate,” “termination of employment” or like terms shall mean separation from service.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered as of the day and year first above set forth.

DARLING INGREDIENTS INC.

By: /s/ John F. Sterling

Name: John F. Sterling

Title: Executive Vice President

EXECUTIVE

/s/ John O. Muse

John O. Muse

8

EX-21

Exhibit 21

Darling Ingredients Inc.

List of Significant Subsidiaries of the Registrant

The following are the significant subsidiaries of Darling Ingredients Inc. and the relevant jurisdiction in which they are organized.

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 Holdings B.V.	The Netherlands
Darling Global Finance B.V.	The Netherlands
Best Commodity Trade B.V.	The Netherlands
BestHides GmbH (40%)	Germany
B.V. CTH Groep	The Netherlands
Changchun Sonac Biotechnology Co. Ltd	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 Ingredients Belgium Holding BVBA	Belgium
Darling Ingredients Germany Holding GmbH	Germany
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
Darling Ingredients International Rendering and Specialties 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
Ligital B.V.	The Netherlands
MD Entsorgungsges. für Schlachtnebenprodukte mbH	Germany
Nederlandse Darmenhandel Nevada BV	The Netherlands
Nevada Darmen- und Schlachtnebenprodukte Handels GmbH	Germany
Qionglai Sonac Biotechnology Co. Ltd	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 Biotechnology Co. Ltd	China
SNP Handels- und Beteiligungs GmbH	Germany
Sobel GmbH	Germany
Sobel Luxembourg Sarl	Luxemburg
Sonac Almere BV	The Netherlands
Sonac (China) Biology Co. Ltd	China
Sonac (Luohe) Biotechnology Co. Ltd	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 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

Vada BVBA	Belgium
Zhejiang Sonac Biotechnology Co. Ltd	China
Treuhand SNP Icker GmbH	Germany
Schmalzbaron Handels GmbH	Germany

EX-23.1

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

The Board of Directors

Darling Ingredients Inc.:

We consent to the incorporation by reference in the registration statements on Form S-3 (Nos. 333-170668 and 333-192004), Form S-4 (No. 333-131484) and Form S-8 (Nos. 333-125875, 333-181786, 33-99866, 33-99868, and 333-217802) of Darling Ingredients Inc. of our reports dated February 27, 2018, with respect to the consolidated balance sheets of Darling Ingredients Inc. as of December 30, 2017 and December 31, 2016, and the related consolidated statements of operations, comprehensive income/(loss), stockholders’ equity, and cash flows for each of the years in the three-year period ended December 30, 2017, and the related notes (collectively, the consolidated financial statements), and the effectiveness of internal control over financial reporting as of December 30, 2017, which reports appear in the December 30, 2017 annual report on Form 10‑K of Darling Ingredients Inc.

/s/ KPMG LLP

Dallas, Texas

February 27, 2018

EX-23.2

Exhibit 23.2

Consent of Independent Auditors

The Board of Directors

Darling Ingredients Inc.:

We consent to the incorporation by reference in the registration statements on Form S-3 (Nos. 333-170668 and 333-192004), Form S-4 (No. 333-131494), and Form S-8 (Nos. 333-125875, 333-181786, 33-99868, 33-99866, and 333-217802) of Darling Ingredients Inc. of our report dated February 9, 2018, with respect to the consolidated balance sheets of Diamond Green Diesel Holdings LLC and subsidiary as of December 31, 2017 and 2016, and the related consolidated statements of income, members' equity, and cash flows for each of the years in the period ended December 31, 2017, and the related notes (collectively, the “consolidated financial statements”), which report appears in the December 31, 2017 annual report on Form 10-K of Darling Ingredients Inc.

/s/ KPMG LLP

San Antonio, Texas

February 27, 2018

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Randall C. Stuewe, certify that:

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 27, 2018

      /s/  Randall C. Stuewe

   -----------------------------------------------

Randall C. Stuewe

Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Brad Phillips, certify that:

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 27, 2018

      /s/  Brad Phillips

   -----------------------------------------------

Brad Phillips

Chief Financial Officer

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

        In connection with the Annual Report of Darling Ingredients Inc. (the “Company”) on Form 10-K for the period ending December 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Randall C. Stuewe, Chief Executive Officer of the Company, and Brad Phillips, Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002 (the “Act”), that:

                 1.         The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

                 2.         The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

        This certification is being furnished solely for purposes of compliance with the Act.

/s/  Randall C. Stuewe	/s/  Brad Phillips
Randall C. Stuewe	Brad Phillips
Chief Executive Officer	Chief Financial Officer
Date: February 27, 2018	Date: February 27, 2018

EX-99.1

Exhibit 99.1

DIAMOND GREEN DIESEL HOLDINGS LLC AND SUBSIDIARY

CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2017

Independent Auditors’ Report

The Board of Managers

Diamond Green Diesel Holdings LLC and subsidiary:

We have audited the accompanying consolidated financial statements of Diamond Green Diesel Holdings LLC and its subsidiary, which comprise the consolidated balance sheets as of December 31, 2017 and 2016, and the related consolidated statements of income, members’ equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Diamond Green Diesel Holdings LLC and subsidiary as of December 31, 2017 and 2016, and the results of their operations and their cash flows for the years then ended in accordance with U.S. generally accepted accounting principles.

/s/ KPMG LLP

San Antonio, Texas

February 9, 2018

DIAMOND GREEN DIESEL HOLDINGS LLC AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

	December 31,
	2017			2016
ASSETS
Current assets:
Cash	$	123,361,296		$	166,917,712
Receivables	23,045,513			54,123,377
Receivables—due from related party	13,174,959			13,952,095
Inventory	36,660,050			31,243,313
Prepaid expenses and other	6,536,051			2,497,117
Total current assets	202,777,869			268,733,614
Property, plant and equipment, at cost	510,442,859			412,005,794
Accumulated depreciation	(75,114,825		)	(57,134,362		)
Property, plant and equipment, net	435,328,034			354,871,432
Deferred charges and other assets, net	4,654,926			12,164,086
Total assets	$	642,760,829		$	635,769,132
LIABILITIES AND MEMBERS’ EQUITY
Current liabilities:
Current portion of related party debt	$	17,022,938		$	17,022,938
Accounts payable	25,251,274			9,835,764
Accounts payable—due to related party	13,541,208			11,466,319
Accrued interest—due to related party	1,098,952			1,446,976
Taxes other than income taxes	423,567			138,243
Other accrued expenses	389,204			313,020
Total current liabilities	57,727,143			40,223,260
Related party debt, less current portion	36,730,093			53,753,031
Other long-term liabilities	450,265			417,645
Commitments
Members’ equity:
Paid-in capital	223,377,260			223,377,260
Retained earnings	324,476,068			317,997,936
Total members’ equity	547,853,328			541,375,196
Total liabilities and members’ equity	$	642,760,829		$	635,769,132

See Notes to Consolidated Financial Statements.

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DIAMOND GREEN DIESEL HOLDINGS LLC AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

	Year Ended December 31,
	2017			2016
Operating revenues	$	633,908,283		$	527,670,493
Costs and expenses:
Cost of sales	498,005,554			308,396,359
Operating expenses	47,915,976			43,269,764
General and administrative expenses	1,590,840			1,556,616
Depreciation, amortization and accretion expense	28,954,533			27,821,073
Total costs and expenses	576,466,903			381,043,812
Operating income	57,441,380			146,626,681
Other income, net	1,342,813			551,078
Interest and debt expense:
Incurred	(4,874,449		)	(7,970,753		)
Capitalized	2,568,388			616,942
Interest and debt expense, net	(2,306,061		)	(7,353,811		)
Net income	$	56,478,132		$	139,823,948

See Notes to Consolidated Financial Statements.

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DIAMOND GREEN DIESEL HOLDINGS LLC AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF MEMBERS’ EQUITY

	Diamond			Darling			Total
	Alternative			Green			Members’
	Energy, LLC			Energy LLC			Equity
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
Cash distributions to members	(25,000,000		)	(25,000,000		)	(50,000,000		)
Net income	28,239,066			28,239,066			56,478,132
Balances as of December 31, 2017	$	273,926,664		$	273,926,664		$	547,853,328

See Notes to Consolidated Financial Statements.

4

DIAMOND GREEN DIESEL HOLDINGS LLC AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

	Year Ended December 31,
	2017			2016
Cash flows from operating activities:
Net income	$	56,478,132		$	139,823,948
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion expense	28,954,533			27,821,073
Inventory valuation adjustment	(2,738,434		)	(1,921,883		)
Other noncash expense	21,607			26,600
Decrease in receivables	31,077,864			118,085,181
(Increase) decrease in receivables—due from related party	777,136			(8,186,237		)
(Increase) decrease in inventory	(2,678,303		)	8,961,386
Increase in prepaid expenses and other	(4,038,934		)	(1,557,090		)
Increase in accounts payable	2,030,620			2,982,267
Increase in accounts payable—due to related party	2,053,106			1,202,881
Decrease in accrued interest—due to related party	(1,205,085		)	(1,769,505		)
Increase in taxes other than income taxes	13,632			27,083
Increase in other accrued expenses	3,653			90,695
Net cash provided by operating activities	110,749,527			285,586,399
Cash flows from investing activities:
Capital expenditures	(83,261,884		)	(14,895,477		)
Deferred turnaround and catalyst costs	(4,021,122		)	(19,761,217		)
Other investing activities, net	—			(193,318		)
Net cash provided by (used in) investing activities	(87,283,006		)	(34,850,012		)
Cash flows from financing activities:
Repayments of related party debt	(17,022,937		)	(78,065,604		)
Cash distributions to members	(50,000,000		)	(50,000,000		)
Net cash used in financing activities	(67,022,937		)	(128,065,604		)
Net increase (decrease) in cash	(43,556,416		)	122,670,783
Cash as of beginning of period	166,917,712			44,246,929
Cash as of end of period	$	123,361,296		$	166,917,712
Supplemental cash flow information:
Accrued capital expenditures	17,998,531			2,610,533
Accrued turnaround and catalyst expenditures	270,936			1,050,980
Capitalized interest	2,568,388			616,942
Interest paid	5,222,464			9,566,760

See Notes to Consolidated Financial Statements.

5

DIAMOND GREEN DIESEL HOLDINGS LLC AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. BUSINESS DESCRIPTION

Diamond Green Diesel Holdings LLC (DGD Holdings) was formed on January 21, 2011 as a joint venture between Diamond Alternative Energy, LLC, an indirect wholly owned subsidiary of Valero Energy Corporation (Valero), and Darling Green Energy LLC, a subsidiary of Darling Ingredients Inc. (Darling). Diamond Alternative Energy, LLC and Darling Green Energy LLC are collectively referred to herein as the “Members.”

DGD Holdings, through its wholly owned subsidiary Diamond Green Diesel LLC (DGD), operates a biomass-based diesel unit having a design feed capacity of 10,000 barrels per day that processes animal fats, used cooking oils, and other vegetable oils into renewable green diesel (the Plant). The Plant is located next to Valero’s St. Charles Refinery in Norco, Louisiana. DGD Holdings and DGD are collectively referred to herein as the “Company.”

The Company completed construction of the Plant and began operations in June 2013.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Consolidation

These consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (U.S. GAAP). All significant intercompany accounts and transactions have been eliminated in consolidation.

Management has evaluated subsequent events that occurred after December 31, 2017 through February 9, 2018, the date these consolidated financial statements were issued. Any material subsequent events that occurred during this time have been properly recognized or disclosed in these consolidated financial statements.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. On an ongoing basis, management reviews its estimates based on currently available information. Changes in facts and circumstances could result in revised estimates.

Cash

Cash consists of demand deposits with a financial institution.

Receivables

Trade receivables are carried at original invoice amount. The Company has not had any uncollectible receivables, and therefore, no allowance for doubtful accounts was recorded as of December 31, 2017 and 2016.

6

DIAMOND GREEN DIESEL HOLDINGS LLC AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Inventory

Inventory is valued at the lower of cost or market. The cost of feedstocks purchased for processing and refined products (primarily renewable green diesel) are determined under the last-in, first-out (LIFO) method using the dollar-value LIFO method. The cost of supplies are determined principally under the weighted-average cost method.

Prepaid Expenses

Prepaid expenses are costs incurred for which the services or goods will be received in a future period. The prepaid expenses are recorded as an asset when paid and recognized as an expense in the period the services or goods are utilized.

Property, Plant and Equipment

The cost of property, plant and equipment purchased or constructed, including betterments, is capitalized. However, the cost of repairs to and normal maintenance of property assets is expensed as incurred. Betterments are those which extend the useful life, increase the capacity or improve the operating efficiency of the asset, or improve the safety of our operations. The cost includes interest and certain overhead costs allocable to the construction activities. See Note 5 for additional discussion.

Depreciation of processing units is recorded on a straight-line basis over the estimated useful life using the composite method of depreciation. Also under the composite method of depreciation, the historical cost of a minor property asset (net of salvage value) that is retired or replaced is charged to accumulated depreciation and no gain or loss is recognized in income. However, a gain or loss is recognized in income for a major property asset that is retired, replaced or sold and for an abnormal disposition of a property asset (primarily involuntary conversions). Gains and losses are reflected in depreciation, amortization and accretion expense, unless such amounts are reported separately due to materiality.

Depreciation of the administrative building and computer hardware is recorded on a straight-line basis over the estimated useful lives of the related assets using the component method of depreciation. Precious metals, which are used as a catalyst in the units to process feedstock into renewable green diesel, are not depreciated, but the cost of precious metals not recovered from the reclamation process are charged to operating expenses.

Impairment of Assets

Long-lived assets, which include property, plant and equipment, are tested for recoverability whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. A long-lived asset is not recoverable if its carrying amount exceeds the sum of the undiscounted cash flows expected to result from its use and eventual disposition. If a long-lived asset is not recoverable, an impairment loss is recognized for the amount by which the carrying amount of the long-lived asset exceeds its fair value, with fair value determined based on discounted estimated net cash flows or other appropriate methods.

Asset Retirement Obligation

The Company records a liability, which is referred to as an asset retirement obligation, at fair value for the estimated cost to retire a tangible long-lived asset at the time that the Company incurs that liability, which is generally when the asset is purchased, constructed or leased. The Company records the liability when there is a legal obligation to incur costs to retire the asset and when a reasonable estimate of the fair value of the liability can be made.

7

DIAMOND GREEN DIESEL HOLDINGS LLC AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Deferred Charges and Other Assets

“Deferred charges and other assets, net” include the following:

• 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.

Revenue Recognition

Revenues for products sold are recorded upon delivery of the products to the customers, which is the point at which title to the products is transferred, and when payment has either been received or collection is reasonably assured. The Renewable Identification Number (RIN), which is created at the time of production, is also sold along with the finished product.

Product Shipping and Handling Costs

Costs incurred for shipping and handling of products are included in cost of sales.

Blenders Tax Credit

Prior to January 1, 2017, 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 at least 0.1 percent diesel fuel. Only blenders that produced and sold or used the qualified biodiesel mixture as a fuel in their trade or business were eligible for the tax credit. As a blender, the Company recognized credits of $160,554,453 related to this biodiesel blenders credit during the year ended December 31, 2016. The biodiesel blenders tax credit was not approved by Congress beyond December 31, 2016. Therefore, the Company did not receive this tax benefit during 2017.

Operating Expenses

Operating expenses primarily consist of costs charged to the Company by Valero in accordance with the Operations Agreement for day-to-day operations of the Plant, as further described in Note 10. In addition, operating expenses include maintenance expenses, chemicals, waste disposal, professional fees, insurance, property tax and other outside services.

General and Administrative Expenses

General and administrative expenses consist primarily of fees for administrative services provided by Valero, as further described in Note 10.

Income Taxes

The Company is a limited liability corporation and is not a taxpaying entity for federal income tax purposes. Accordingly, no provision for income taxes is made in these consolidated financial statements. Income or loss from the Company is taxable to the Members in their individual federal tax returns.

8

DIAMOND GREEN DIESEL HOLDINGS LLC AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Derivatives and Hedging

All derivative instruments are recorded in the balance sheet as either assets or liabilities measured at their fair values. The gain or loss on the derivative instrument, if any, is recognized in income as incurred. The cash flow effects of the derivative instruments are reflected in operating activities in the statements of cash flows. See Note 12 for additional discussion.

Concentration Risk

For the year ended December 31, 2017, the Company sold a majority of its renewable diesel to four major customers, including Valero, which accounted for 31 percent of the sales of renewable diesel. The other three third-party customers accounted for 25 percent, 19 percent, and 10 percent of the sales of renewable diesel. The Company sold 28 percentof its renewable diesel to Valero and29 percent, 15 percent, and 10 percent to three third-party customers for the year ended December 31, 2016.

The Company purchased 39 percent and 36 percent of its raw materials from Darling for the years ended December 31, 2017 and 2016, respectively. The Company purchased 17 percent, 12 percent, and 10 percent from three third-party suppliers for the year ended December 31, 2017, and 18 percent, 12 percent, and 10 percent from three third-party suppliers for the year ended December 31, 2016.

See Note 10 for additional discussion of the Company’s contracts with Valero and Darling.

3. RECEIVABLES

Receivables consisted of the following:

	December 31,
	2017		2016
Receivables—trade	$	33,536,682	$	19,001,568
Blenders tax credit receivable	—		32,382,471
Commodity derivative contract receivables (see Note 11)	2,683,790		2,739,338
Total receivables	$	36,220,472	$	54,123,377
Receivables—due from related party	$	13,174,959	$	13,952,095

9

DIAMOND GREEN DIESEL HOLDINGS LLC AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

4. INVENTORIES

Inventories consisted of the following:

	December 31,
	2017		2016
Feedstocks	$	27,682,060	$	27,584,472
Finished products	8,698,640		6,167,691
Supplies	279,350		229,584
Lower of cost or market inventory valuation reserve	—		(2,738,434		)
Inventories	$	36,660,050	$	31,243,313

Inventories are valued at the lower of cost or market. As of December 31, 2016, the market values of the feedstocks and finished products fell below the Company’s historical LIFO inventory costs, and consequently, the Company recorded a valuation reserve of $2,738,434. As of December 31, 2017, the Company reevaluated its inventories and determined that the replacement cost (market value) exceeded the LIFO carrying amount by $832,935. As a result, the Company recorded a change in the valuation reserve that resulted in a net benefit to the Company’s results of operations of $2,738,434 for the year ended December 31, 2017. For the year ended December 31, 2016, the change in the valuation reserve resulted in a net benefit to the Company’s results of operations of $1,921,883.

During the year ended December 31, 2016, the Company had a net liquidation of LIFO inventory layers that increased cost of sales by $212,307.

5. PROPERTY, PLANT AND EQUIPMENT

Major classes of property, plant and equipment consisted of the following:

	December 31,
	2017			2016
Processing units	$	397,216,385		$	387,530,163
Administrative building	2,934,905			2,790,785
Precious metals	5,164,318			5,164,318
Computer hardware	1,319,686			1,319,686
Capital spares	1,103,208			256,170
Asset retirement obligation	177,993			177,993
Construction in progress	102,526,364			14,766,679
Property, plant and equipment, at cost	510,442,859			412,005,794
Accumulated depreciation	(75,114,825		)	(57,134,362		)
Property, plant and equipment, net	$	435,328,034		$	354,871,432

Depreciation expense for the years ended December 31, 2017 and 2016 was $18,193,280 and $17,884,509, respectively.

10

DIAMOND GREEN DIESEL HOLDINGS LLC AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

6. DEFERRED CHARGES AND OTHER ASSETS

“Deferred charges and other assets, net” primarily includes turnaround and catalyst costs, which are deferred and amortized as discussed in Note 1. Amortization expense for deferred catalyst costs was $6,225,322 and $3,467,732 for the years ended December 31, 2017 and 2016, respectively. Amortization expense for turnaround costs was $4,515,246 and $6,450,184 for the years ended December 31, 2017 and 2016, respectively.

7. ASSET RETIREMENT OBLIGATION

The Company recorded an asset retirement obligation for the estimated cost to remove all tangible long-lived assets from the leased premises as required by the Company’s lease agreement with Valero, which requires it to remove all improvements upon termination of the lease unless otherwise instructed by Valero. The obligation is estimated considering the likelihood, which the Company believes is low, that the Company will be required by Valero to perform under the asset retirement obligation. This obligation was recorded upon completion of the Plant in June 2013.

Changes in the asset retirement obligation were as follows:

	December 31,
	2017		2016
Balance as of beginning of year	$	207,821	$	197,361
Accretion expense	11,015		10,460
Balance as of end of year	$	218,836	$	207,821

The Company does not expect any short-term spending, and as a result, there is no current liability reported for asset retirement obligations as of December 31, 2017 and 2016. Accretion expense is reflected in depreciation, amortization and accretion expense.

There are no assets that are legally restricted for purposes of settling the Company’s asset retirement obligations.

8. MEMBERS’ CONTRIBUTIONS AND DISTRIBUTIONS

Pursuant to the Diamond Green Diesel Holdings LLC Amended and Restated Limited Liability Company Agreement, contributions were made prior to the Plant commencing operations based on the percentage of units held by each Member. Each Member holds 1,116,886 units, and therefore, owns a 50 percent ownership interest in DGD Holdings. Each Member receives one vote per unit. No contributions were made by the Members during the years ended December 31, 2017 or 2016.

Net income or loss of the Company for a fiscal year will be allocated between the Members based on the proportionate share of the Members’ ownership interests. Generally, the Company is prohibited from making distributions to its Members until certain conditions required by the loan from Valero (see Note 10) are satisfied. The Company distributed $50,000,000 to the Members during 2017 and 2016, respectively.

11

DIAMOND GREEN DIESEL HOLDINGS LLC AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

9. COMMITMENTS AND CONTINGENCIES

Leases

The Company leases land from Valero in Norco, Louisiana on which the Plant is built, which is adjacent to Valero’s St. Charles refinery. See Note 10 for further discussion.

In addition, the Company leases various equipment and has an agreement with the Kansas City Southern Railway Company to lease land next to the railroad on which the Company’s scale track is located. As of December 31, 2017, future minimum rentals for these leases were as follows:

Year Ending December 31:
2018	$	267,334
2019	43,880
2020	44,482
2021	27,246
2022	21,933
Thereafter	229,501
Total minimum rental payments	$	634,376

Rental expense for the leases was $508,270 and $18,368 for the years ended December 31, 2017 and 2016, respectively, and is reflected in operating expenses.

10. RELATED-PARTY TRANSACTIONS

Overview

The Company does not have any employees. It has entered into agreements with its Members, primarily Valero, to provide day-to-day operations, management and administrative functions. The Company has also obtained debt financing from Valero to fund the majority of the construction costs of the Plant. These related-party transactions cannot be presumed to be carried out on an arm’s length basis as the requisite conditions of competitive, free-market dealings may not exist. Following is a description of various agreements between the Company and its Members.

Debt Agreement

The Company has a loan facility with Valero, which allowed the Company to borrow up to an amount equal to 60 percent of the estimated construction costs of the Plant. The Company borrowed the maximum under the loan facility of $221,298,189. Interest on the loan facility accrues at a rate of 8 percent per annum. During the construction period, all unpaid interest was added to the principal balance outstanding under the loan installments, with the first payment paid on October 1, 2013. Principal payments are made in equal consecutive quarterly installments, with the first principal payment paid on July 1, 2014.

The Company is required to make prepayments upon certain qualifying events. There were two separate qualifying events during 2016 that required the Company to make prepayments of $54,742,859 and $6,299,808. In addition, during 2016, the Company’s board of managers approved the expansion of the

12

DIAMOND GREEN DIESEL HOLDINGS LLC AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Plant’s feed capacity to 18,000 barrels per day. Related to the approval of this expansion, Valero agreed to temporarily suspend the mandatory prepayments. As such, no additional prepayments were made during 2016 or 2017.

The loan facility matures on April 30, 2027 and is secured by all property and equity interests of the Company. During the years ended December 31, 2017 and 2016, the Company paid $5,222,464 and $9,562,737, respectively, in interest on this loan.

Principal payments on the related-party debt as of December 31, 2017 were due as follows:

Year Ending December 31:
2018	$	17,022,938
2019	17,022,938
2020	17,022,938
2021	2,684,217
Total	$	53,753,031

Revolving Loan Agreement

During 2015, the Company entered into a $10,000,000 revolving loan agreement (the Revolver) with Valero and Darling, whereby each Member has a commitment of $5,000,000. The Revolver matures on December 31, 2018. The Company may request additional one-year extensions subject to Valero and Darling consenting to extend their individual commitments.

Outstanding borrowings under the Revolver are due on the last day of each calendar month and bear interest at a rate per annum equal to the sum of the one-month LIBO rate plus 2.5 percent. During the year ended December 31, 2016, the Company borrowed and repaid $5,000,000 under the Revolver. The Company paid $4,023 in interest on the Revolver during 2016. There were no borrowings under the Revolver during 2017.

Lease Agreement

As discussed in Note 9, the Company leases land from Valero. The lease is an operating lease and expires on May 31, 2031, with up to four optional renewal periods of five years each.

13

DIAMOND GREEN DIESEL HOLDINGS LLC AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

As of December 31, 2017, future minimum rentals for the lease were as follows:

Year Ending December 31:
2018	$	343,037
2019	348,182
2020	353,404
2021	358,705
2022	364,086
Thereafter	3,288,285
Total minimum rental payments	$	5,055,699

Rental expense is being recognized on a straight-line basis and was $359,573 for each of the years ended December 31, 2017 and 2016, and is reflected in operating expenses.

Operations Agreement

Pursuant to the Operations Agreement, Valero operates the Plant and performs certain day-to-day operations and management functions for the Company as an independent contractor. During the 20-year term of the agreement, Valero charges for all dedicated operating and personnel costs, and for all routine and non-routine services in accordance with the contractual billing rates, which are adjusted for inflation annually on January 1. The Company recorded $10,683,566 and $10,046,197 of operating expenses charged under the Operations Agreement for the years ended December 31, 2017 and 2016, respectively.

In addition, the Company pays Valero a monthly administrative fee. For the years ended December 31, 2017 and 2016, the Company recorded $1,590,840 and $1,556,616, respectively, of monthly administrative fees in general and administrative expenses.

Tank Storage and Rail Loading Agreement

Effective March 31, 2017, the Company entered into a commercial agreement with a subsidiary of Valero to construct and operate a rail loading facility located at Valero’s St. Charles Refinery for the purpose of loading the Company’s renewable diesel onto railcars. The construction of the rail loading facility was completed in April 2017, and Valero began providing services to the Company in May 2017. In addition, Valero will construct a new 180,000 barrel storage tank and provide storage services to the Company. The construction of the new tank is expected to be complete in the first quarter of 2018. The agreement has an initial term that ends on June 30, 2033. The agreement contains minimum commitments for the Company’s use of the assets. For the year ended December 31, 2017, the Company recorded $2,831,540 of fees charged under this agreement in operating expenses.

Other Agreements

Effective July 2013, following notification by the Company that the Plant was ready to commence commercial service, three additional agreements became effective. Following the initial 20-year term, these agreements will automatically renew for a period of five years on an evergreen basis, unless terminated by one of the parties. Below is a description of the agreements.

14

DIAMOND GREEN DIESEL HOLDINGS LLC AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Raw Material Supply Agreement

Under the Raw Material Supply Agreement, Darling is obligated to offer to supply all of the feedstock requirements to the Company. Darling will provide competitive pricing based on the delivery terms. However, the Company is not obligated to purchase all or any part of its feedstock requirements from Darling and will pursue the lowest cost feedstock supply to the Plant. For the years ended December 31, 2017 and 2016, the Company purchased $172,288,245 and $149,625,424, respectively, of raw materials from Darling.

Product Offtake Agreement

Under the Product Offtake Agreement, Valero is required to market all of the renewable green diesel produced at the Plant. Valero markets the renewable green diesel to third parties as well as to its affiliates and receives a marketing fee. In addition, Valero is required to purchase the recovered light ends liquid produced at the Plant. The Company has entered into contracts with Valero to sell renewable green diesel in varying amounts through December 2019. For the year ended December 31, 2017, the Company sold $192,998,403 of renewable green diesel and $46,896,695 of recovered light ends liquid to Valero, which is recorded in operating revenues, and incurred $2,097,191 in marketing fees to Valero, which is recorded in cost of sales. For the year ended December 31, 2016, the Company sold $136,425,688 of renewable green diesel and $41,686,578 of recovered light ends liquid to Valero, and incurred $1,876,727 in marketing fees to Valero.

Services and Utilities Supply Agreement

Under the Services and Utilities Supply Agreement, Valero provides the Company with water, certain industrial gases which are produced or otherwise available at Valero’s St. Charles Refinery, and certain services, such as water treatment and terminalling services that are needed for the operation of the Plant. Prices charged by Valero are at prevailing market rates. The Company supplies Valero with fuel gas and steam produced at the Plant and charges Valero at prevailing market rates. For the years ended December 31, 2017 and 2016, the Company’s net purchases of industrial gases and other services from Valero was $28,005,801 and $23,261,570, respectively.

The agreement allows these charges to be netted each month, with a net receivable from or payable to Valero each period which is settled 15 days after receipt of the invoice.

Other

For the years ended December 31, 2017 and 2016, the Company purchased $11,265,212 and $13,450,422 of feedstock from Valero. The Company also purchased $307,453 and $239,359 of ultra-low-sulfur diesel from Valero for the years ended December 31, 2017 and 2016, respectively.

11. FAIR VALUE MEASUREMENTS

General

U.S. GAAP requires that certain assets and liabilities be measured at fair value on a recurring or nonrecurring basis in our balance sheets, which are presented below under “Recurring Fair Value Measurements.” Recurring fair value measurements of assets or liabilities are those that GAAP requires or permits in the balance sheet at the end of each reporting period, such as derivative financial instruments.

U.S. GAAP also requires the disclosure of the fair values of financial instruments when an option to elect fair value accounting has been provided, but such election has not been made. A debt obligation is an example

15

DIAMOND GREEN DIESEL HOLDINGS LLC AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

of such a financial instrument. The disclosure of the fair values of financial instruments not recognized at fair value in the balance sheet is presented below under “Other Financial Instruments.”

U.S. GAAP provides a framework for measuring fair value and establishes a three-level fair value hierarchy that prioritizes inputs to valuation techniques based on the degree to which objective prices in external active markets are available to measure fair value. Following is a description of each of the levels of the fair value hierarchy.

• 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 in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

• 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.

Recurring Fair Value Measurements

The tables below present information about the Company’s assets and liabilities recognized at their fair values in the balance sheets categorized according to the fair value hierarchy of the inputs utilized by the Company to determine the fair values as of December 31, 2017 and 2016.

The Company has elected to offset the fair value amounts recognized for multiple similar derivative contracts executed with the same counterparty, including any related cash collateral assets or obligations as shown below; however, fair value amounts by hierarchy level are presented on a gross basis in the tables below. The Company does not have any derivative contracts that are subject to master netting arrangements that are reflected gross on the balance sheet.

	December 31, 2017
	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	$	4,821,805	$	—	$	—	$	4,821,805	$	(4,821,805	)	$	—		$	—	$	—
Liabilities:
Commodity derivative contracts	10,756,566		—		—		10,756,566		(4,821,805		)	(5,934,761		)	—		(2,683,790		)

16

DIAMOND GREEN DIESEL HOLDINGS LLC AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	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		)

The Company is exposed to market risks related to the volatility in the price of the feedstock used in its operations and finished products produced at the Plant and enters into commodity derivative contracts, which consist primarily of exchange-traded futures. See Note 12 for further discussion. These contracts are measured at fair value using the market approach. Exchange-traded futures are valued based on quoted prices from the exchange and are categorized in Level 1 of the fair value hierarchy.

Other Financial Instruments

Financial instruments that the Company recognizes in its balance sheets at their carrying amounts are shown in the following table:

	December 31, 2017				December 31, 2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Cash	$	123,361,296	$	123,361,296	$	166,917,712	$	166,917,712
Financial liabilities:
Debt	53,753,031		55,391,298		70,775,969		72,635,963

The methods and significant assumptions used to estimate the fair value of these financial instruments are as follows:

• 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).

12. PRICE RISK MANAGMENT ACTIVITIES

The Company is exposed to market risks related to the volatility in the price of commodities and enters into derivative instruments to manage these risks. The only type of derivative instruments that the Company enters into are those related to the various commodities the Company purchases or produces as the Company is exposed to market risks related to the volatility in the price of the feedstock used in its operations and finished products produced at the Plant. All derivative instruments are recorded as either assets or liabilities

17

DIAMOND GREEN DIESEL HOLDINGS LLC AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

measured at their fair values. When the Company enters into a derivative instrument, it is designated as an economic hedge. Economic hedges represent commodity derivative instruments that are used to manage price volatility in feedstock purchase contracts. Economic hedges are not designated as a fair value hedge or a cash flow hedge for accounting purposes, usually due to the difficulty of establishing the required documentation at the date that the derivative instrument is entered into that would allow the Company to achieve “hedge deferral accounting.” For the Company’s economic hedges, the derivative instrument is recorded at fair value and changes in the fair value of the derivative instrument are recognized currently in income.

As of December 31, 2017, the Company had the following outstanding commodity derivative instruments that were entered into as economic hedges, which mature in 2018. The information presents the notional volume of outstanding contracts by type of instrument (volumes in thousands of barrels for ultra-low sulfur diesel and thousands of pounds for soybean oil).

Derivative Instrument	Notional Contract Volumes
Soybean oil:
Futures - long	76,079
Futures - short	154,378
Ultra-low-sulfur diesel:
Futures - long	38
Futures - short	1,039

Fair Values of Derivative Instruments

The following tables provide information about the fair values of the Company’s derivative instruments as of December 31, 2017 and 2016 and the line items in the balance sheets in which the fair values are reflected. See Note 11 for additional information related to the fair values of the Company’s derivative instruments.

		December 31, 2017
	Balance Sheet Location	Asset Derivatives		Liability Derivatives
Derivatives not designated as hedging instruments
Commodity contracts	Receivables	$	4,821,805	$	10,756,566

		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

18

DIAMOND GREEN DIESEL HOLDINGS LLC AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Effect of Derivative Instruments on Statements of Income

The following table provides information about the gain or loss recognized in income on the Company’s derivative instruments, and the income statement line item in which such gains and losses are reflected.

Derivatives Designated as Economic Hedges	Location of Gain (Loss) Recognized in Income on Derivatives
		Year Ended December 31,
		2017			2016
Commodity contracts	Cost of sales	$	(11,004,452	)	$	(6,098,622	)

19

XML

Document and Entity Information Document - USD ($)	12 Months Ended
	Dec. 30, 2017	Feb. 21, 2018	Jul. 01, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	DARLING INGREDIENTS INC.
Entity Central Index Key	0000916540
Current Fiscal Year End Date	--12-30
Entity Filer Category	Large Accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Public Float			$ 2,558,227,000
Entity Common Stock, Shares Outstanding		164,676,070
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 106,774	$ 114,564
Restricted cash	142	293
Accounts receivable, less allowance for bad debts of $8,045 at December 30, 2017 and $8,090 at December 31, 2016	391,847	388,397
Inventories	358,183	330,815
Prepaid expenses	38,326	29,984
Income taxes refundable	4,509	7,479
Other current assets	56,664	21,770
Total current assets	956,445	893,302
Property, plant and equipment, net	1,645,822	1,515,575
Intangible assets, less accumulated amortization of $383,836 at December 30, 2017 and $301,187 at December 31, 2016	676,500	711,927
Goodwill	1,301,093	1,225,893
Investment in unconsolidated subsidiaries	302,038	292,717
Other assets	62,284	43,613
Deferred income taxes	14,043	14,990
Total assets	4,958,225	4,698,017
Current liabilities:
Current portion of long-term debt	16,143	23,247
Accounts payable, principally trade	217,417	180,895
Income taxes payable	12,300	4,913
Accrued expenses	313,623	242,796
Total current liabilities	559,483	451,851
Long-term debt, net of current portion	1,698,050	1,727,696
Other noncurrent liabilities	106,287	96,114
Deferred income taxes	266,708	346,134
Total liabilities	2,630,528	2,621,795
Commitments and contingencies
Stockholders’ equity:
Common stock, $.01 par value; 250,000,000 shares authorized, 167,892,500 and 167,641,415 shares issued at December 30, 2017 and December 31, 2016, respectively	1,679	1,676
Additional paid-in capital	1,515,614	1,499,431
Treasury stock, at cost; 3,239,063 and 3,028,857 shares at December 30, 2017 and December 31, 2016, respectively	(44,063)	(40,909)
Accumulated other comprehensive loss	(209,524)	(340,006)
Retained earnings	981,227	852,802
Total Darling's stockholders’ equity	2,244,933	1,972,994
Noncontrolling interests	82,764	103,228
Total stockholders’ equity	2,327,697	2,076,222
Total liabilities and stockholders' equity	$ 4,958,225	$ 4,698,017

XML

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016
Assets [Abstract]
Allowance for Doubtful Accounts Receivable, Current	$ 8,045	$ 8,090
Finite-Lived Intangible Assets, Accumulated Amortization	$ 383,836	$ 301,187
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)	167,892,500	167,641,415
Treasury stock (in shares)	3,239,063	3,028,857

XML

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 31, 2016	Oct. 01, 2016	Jul. 02, 2016	Apr. 02, 2016	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Net Sales	$ 952,549	$ 936,262	$ 894,930	$ 878,510	$ 885,758	$ 852,018	$ 875,777	$ 778,375	$ 3,662,251	$ 3,391,928	$ 3,391,255
Costs and expenses:
Cost of sales and operating expenses									2,875,851	2,635,547	2,654,025
Selling, general and administrative expense									347,487	314,005	316,383
Depreciation and amortization									302,100	289,908	269,904
Acquisition and integration costs									0	401	8,299
Total costs and expenses									3,525,438	3,239,861	3,248,611
Operating income	35,026	33,310	37,063	31,414	35,380	35,528	54,467	26,692	136,813	152,067	142,644
Other expense:
Interest expense									(88,926)	(94,187)	(105,530)
Foreign currency losses									(6,898)	(1,854)	(4,911)
Other expense, net									(5,293)	(3,866)	(6,839)
Total other expense									(101,117)	(99,907)	(117,280)
Equity in net income of unconsolidated subsidiaries									28,504	70,379	73,416
Income from operations before income taxes	21,934	14,980	18,070	9,216	47,893	28,146	41,974	4,526	64,200	122,539	98,780
Income tax expense/(benefit)									(69,154)	15,315	13,501
Net income	106,944	8,684	10,328	7,398	41,680	28,890	33,991	2,663	133,354	107,224	85,279
Net income attributable to noncontrolling interests	(1,215)	(923)	(1,179)	(1,569)	(1,139)	(196)	(1,992)	(1,584)	(4,886)	(4,911)	(6,748)
Net income attributable to Darling	$ 105,729	$ 7,761	$ 9,149	$ 5,829	$ 40,541	$ 28,694	$ 31,999	$ 1,079	$ 128,468	$ 102,313	$ 78,531
Net income per share:
Basic (in dollars per share)	$ 0.64	$ 0.05	$ 0.06	$ 0.04	$ 0.25	$ 0.17	$ 0.19	$ 0.01	$ 0.78	$ 0.62	$ 0.48
Diluted (in dollars per share)	$ 0.63	$ 0.05	$ 0.05	$ 0.04	$ 0.25	$ 0.17	$ 0.19	$ 0.01	$ 0.77	$ 0.62	$ 0.48

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Net income	$ 133,354	$ 107,224	$ 85,279
Other comprehensive income (Loss), net of tax:
Foreign currency translation adjustments	121,810	(5,593)	(162,436)
Pension adjustments	5,829	(1,016)	4,202
Total other comprehensive loss, net of tax	126,543	(5,984)	(156,467)
Total comprehensive income/(loss)	259,897	101,240	(71,188)
Comprehensive income attributable to noncontrolling interests	947	3,015	9,139
Comprehensive income/(loss) attributable to Darling	258,950	98,225	(80,327)
Natural Gas Swap [Member]
Other comprehensive income (Loss), net of tax:
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	(18)	0	0
Corn Option [Member]
Other comprehensive income (Loss), net of tax:
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	$ (1,078)	$ 625	$ 1,767

XML

Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands	Total	Parent [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]	Natural Gas Swap [Member]	Natural Gas Swap [Member] Parent [Member]	Natural Gas Swap [Member] AOCI Attributable to Parent [Member]	Corn Option [Member]	Corn Option [Member] Parent [Member]	Corn Option [Member] AOCI Attributable to Parent [Member]
Balance (in shares) at Jan. 03, 2015			164,712,663
Stockholders' Equity, Beginning Balance at Jan. 03, 2015	$ 2,051,134	$ 1,952,990	$ 1,662	$ 1,479,637	$ (23,207)	$ (177,060)	$ 671,958	$ 98,144
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	85,279	78,531					78,531	6,748
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
Total natural gas derivatives									$ 0			$ 1,767	$ 1,767	$ 1,767
Foreign currency translation adjustments	(162,436)	(164,827)				(164,827)		2,391
Issuance of non-vested stock (in shares)			261,615
Issuance of non-vested stock	3,791	3,791	$ 3	3,788
Stock-based compensation	2,083	2,083		2,083
Tax benefits associated with stock-based compensation	(389)	(389)		(389)
Treasury stock (in shares)			(834,477)
Treasury stock	(11,109)	(11,109)			(11,109)
Issuance of common stock (in shares)			595,575
Issuance of common stock	3,670	3,670	$ 6	3,664
Balance (in shares) at Jan. 02, 2016			164,735,376
Stockholders' Equity, Ending Balance at Jan. 02, 2016	1,974,610	1,870,709	$ 1,671	1,488,783	(34,316)	(335,918)	750,489	103,901
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	107,224	102,313					102,313	4,911
Distribution of noncontrolling interest earnings	(3,688)							(3,688)
Pension liability adjustments, net of tax	(1,016)	(1,016)				(1,016)
Total natural gas derivatives												625	625	625
Foreign currency translation adjustments	(5,593)	(3,697)				(3,697)		(1,896)
Issuance of non-vested stock (in shares)			341,185
Issuance of non-vested stock	4,131	4,131	$ 3	4,128
Stock-based compensation	4,081	4,081		4,081
Tax benefits associated with stock-based compensation	(364)	(364)		(364)
Treasury stock (in shares)			(693,250)
Treasury stock	(6,593)	(6,593)			(6,593)
Issuance of common stock (in shares)			229,247
Issuance of common stock	2,805	2,805	$ 2	2,803
Balance (in shares) at Dec. 31, 2016			164,612,558
Stockholders' Equity, Ending Balance at Dec. 31, 2016	2,076,222	1,972,994	$ 1,676	1,499,431	(40,909)	(340,006)	852,802	103,228
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adjustment to initially apply FASB ASC No. 2016-09 Improvements to Employee Share-Based Payment Accounting	(43)	(43)					(43)
Net income	133,354	128,468					128,468	4,886
Distribution of noncontrolling interest earnings	(4,020)							(4,020)
Deductions to noncontrolling interests	(19,112)	(1,721)		(1,721)				(17,391)
Pension liability adjustments, net of tax	5,829	5,829				5,829
Total natural gas derivatives									$ (18)	$ (18)	$ (18)	$ (1,078)	$ (1,078)	$ (1,078)
Foreign currency translation adjustments	121,810	125,749				125,749		(3,939)
Stock-based compensation	14,831	14,831		14,831
Treasury stock (in shares)			(210,206)
Treasury stock	(3,154)	(3,154)			(3,154)
Issuance of common stock (in shares)			251,085
Issuance of common stock	3,076	3,076	$ 3	3,073
Balance (in shares) at Dec. 30, 2017			164,653,437
Stockholders' Equity, Ending Balance at Dec. 30, 2017	$ 2,327,697	$ 2,244,933	$ 1,679	$ 1,515,614	$ (44,063)	$ (209,524)	$ 981,227	$ 82,764

XML

Consolidated Statements of Stockholders’ Equity (Parenthetical) - $ / shares	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Statement of Stockholders' Equity [Abstract]
Common stock, par value (in usd per share)	$ 0.01	$ 0.01	$ 0.01

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands		12 Months Ended
		Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Cash flows from operating activities:
Net income		$ 133,354	$ 107,224	$ 85,279
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		302,100	289,908	269,904
Deferred income taxes		(98,805)	(11,532)	7,807
Loss/(gain) on sale of assets		(237)	1,744	1,311
Gain on insurance proceeds from insurance settlement		(1,427)	(356)	(561)
Increase/(decrease) in long-term pension liability		2,383	(430)	(4,811)
Stock-based compensation expense		17,598	10,330	8,995
Write-off deferred loan costs		766	528	10,633
Deferred loan cost amortization		8,736	11,171	10,155
Equity in net income of unconsolidated subsidiaries		(28,504)	(70,379)	(73,416)
Distributions of earnings from unconsolidated subsidiaries		26,761	26,317	26,589
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable		3,482	(22,796)	8,214
Income taxes refundable/payable		9,360	2,839	12,377
Inventories and prepaid expenses		(15,022)	15,343	34,536
Accounts payable and accrued expenses		73,386	39,286	(11,449)
Other		(23,344)	(8,161)	35,396
Net cash provided by operating activities		410,587	391,036	420,959
Cash flows from investing activities:
Capital expenditures	[1]	(274,168)	(243,523)	(229,848)
Acquisitions, net of cash acquired		(12,144)	(8,511)	(377)
Investment in unconsolidated subsidiary		(4,750)	0	0
Gross proceeds from sale of property, plant and equipment and other assets		8,090	7,329	3,840
Proceeds from insurance settlement		6,054	1,537	561
Payments related to routes and other intangibles		(7,135)	(23)	(3,845)
Net cash used in investing activities		(284,053)	(243,191)	(229,669)
Cash flows from financing activities:
Proceeds from long-term debt		33,401	36,327	590,745
Payments on long-term debt		(149,623)	(204,428)	(609,255)
Borrowings from revolving credit facility		199,495	99,276	78,244
Payments on revolving credit facility		(204,935)	(104,028)	(166,755)
Net cash overdraft financing		(714)	1,071	(1,261)
Deferred loan costs		(6,717)	(3,879)	(17,310)
Issuance of common stock		22	188	171
Repurchase of common stock		0	(5,000)	(5,912)
Minimum withholding taxes paid on stock awards		(3,049)	(1,843)	(4,874)
Deductions of noncontrolling interest		(17,451)	0	(87)
Distributions to noncontrolling interests		(5,281)	(1,552)	(3,295)
Net cash used in financing activities		(154,852)	(183,868)	(139,589)
Effect of exchange rate changes on cash flows		20,528	(6,297)	(3,601)
Net increase/(decrease) in cash and cash equivalents		(7,790)	(42,320)	48,100
Cash and cash equivalents at beginning of year		114,564	156,884	108,784
Cash and cash equivalents at end of year		106,774	114,564	156,884
Supplemental disclosure of cash flow information:
Accrued Capital Expenditures		1,521	(937)	5,325
Cash paid during the year for:
Interest, net of capitalized interest		78,233	82,094	78,979
Income taxes, net of refunds		26,304	23,220	(3,035)
Non-cash financing activities
Debt issued for service contract assets		9,459	10	2,591
Contribution of Property		$ 0	$ 2,674	$ 0

[1] Excludes immaterial capital assets acquired by acquisition in fiscal 2017, fiscal 2016 and fiscal 2015.

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General

12 Months Ended

Dec. 30, 2017

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.  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.

(b) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) 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 of the consolidated subsidiaries is shown as an allocation of the Company's net income and is presented separately as “Net income 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.

(2) 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 30, 2017, the 52 weeks ended December 31, 2016, and the 52 weeks ended January 2, 2016.

(3) 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.

(4) 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.

(5) Inventories

Inventories are stated at the lower of cost or net realizable value.  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.

(6) 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 acquisition of its Darling Ingredients International business.  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.

(7) 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.  

(8) Goodwill

The Company performed the annual goodwill and indefinite-lived intangible assets impairment assessments at October 28, 2017 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 2017, 2016 and 2015, the fair values of the Company’s reporting units containing goodwill exceeded the related carrying values.  Goodwill was approximately $1,301.1 million and $1,225.9 million at December 30, 2017 and December 31, 2016, respectively.  See Note 6 for further information on the Company’s goodwill.

(9) 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.

(10) 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.

During 2017, the President signed into law the Tax Cuts and Jobs Act (the “Tax Act” or “U.S. tax reform”), effective January 1, 2018, that, among other things, lowered the corporate income tax rate from 35% to 21%, moved the country towards a territorial tax system with a one-time mandatory tax on previously deferred earnings of foreign subsidiaries, and introduced new provisions regarding the taxation of global intangible low-taxed income (“GILTI”) of foreign subsidiaries. The Company will be subject to the GILTI provisions effective beginning January 1, 2018. The Financial Accounting Standards Board (“FASB”) allows companies to adopt an accounting policy to either recognize deferred taxes for GILTI or treat such as a tax cost in the year incurred. The Company’s accounting policy election is to account for GILTI as incurred. See Note 12 for further information regarding the income tax accounting impact of the Tax Act.

(11) 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.

	Net Income per Common Share (in thousands, except per share data)
			December 30,					December 31,					January 2,
			2017					2016					2016
	Income		Shares	Per-Share		Income		Shares	Per-Share		Income		Shares	Per-Share
Basic:
Net income attributable to Darling	$	128,468	164,752	$	0.78	$	102,313	164,600	$	0.62	$	78,531	165,031	$	0.48
Diluted:
Effect of dilutive securities
Add: Option shares in the money and dilutive effect of nonvested stock	—		3,865	—		—		1,329	—		—		168	—
Less: Pro-forma treasury shares	—		(1,887)	—		—		(717)	—		—		(80)	—
Diluted:
Net income attributable to Darling	$	128,468	166,730	$	0.77	$	102,313	165,212	$	0.62	$	78,531	165,119	$	0.48

For fiscal 2017, 2016 and 2015, respectively, 340,504, 1,148,707 and 790,092 outstanding stock options were excluded from diluted income per common share as the effect was antidilutive.  For fiscal 2017, 2016 and 2015, respectively, 288,616, 758,557 and 587,961 non-vested stock were excluded from diluted income per common share as the effect was antidilutive.

(12) 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.

In March 2016, the FASB issued Accounting Standards Update (“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 employees' 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. The Company adopted this standard in the first quarter ended April 1, 2017 and prior periods were not recasted. The impact of the adoption resulted in the following:

• The Company recorded a tax benefit of approximately $0.1 million within income tax expense for the year ended December 30, 2017 related to the excess tax expense on stock options, nonvested stock, director restricted stock units and performance units. Prior to the adoption this amount would have been recorded as reduction of additional paid-in capital.

• The Company has made a policy election to account for forfeitures in the period they occur, rather than estimating a forfeiture rate. Applying this guidance on a modified retrospective basis resulted in an insignificant adjustment to opening retained earnings.

• The Company no longer reclassifies the excess tax benefit from operating activities to financing activities in the statement of cash flows. The Company elected to apply this change in presentation prospectively and thus prior periods have not been adjusted. For the year ended December 31, 2016 and January 2, 2016, the Company recognized $0.4 million, respectively of such tax benefit as a decrease in operating cash flow.

• The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares of common stock in the computation of the Company's diluted earnings per share for the year ended December 30, 2017. This increased the Company's diluted weighted average common shares outstanding by approximately 367,000 shares for the year ended December 30, 2017.

Total stock-based compensation recognized in the statement of operations for the years ended December 30, 2017, December 31, 2016 and January 2, 2016 was approximately $17.6 million, $10.3 million and $9.0 million, respectively, which is included in selling, general and administrative expenses, and the related income tax benefit recognized was approximately $3.7 million, $3.4 million and $3.3 million, respectively.  See Note 13 for further information on the Company’s stock-based compensation plans. 

(13) 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.

(14) Financial Instruments

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 30, 2017, 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.

(15) 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.

At December 30, 2017, the Company had corn options and natural gas swap contracts outstanding that qualified and were designated for hedge accounting as well as corn options and futures and foreign currency forward contracts that did not qualify and were not designated for hedge accounting.

(16) 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.

(17) Related Party Transactions

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.

(18) 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. The Company incurred net foreign currency translation gain of approximately $125.7 million in fiscal 2017 and losses of approximately $3.7 million and $164.8 million in fiscal 2016 and fiscal 2015, respectively.

(19) Reclassification

Certain prior year immaterial amounts have been reclassified to conform to the current year presentation. Previously reported amounts have been adjusted to reflect the correction of an immaterial classification error in net sales and cost of sales, as described in Note 21.

(20) 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. 

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Acquisitions

12 Months Ended

Dec. 30, 2017

Business Combinations [Abstract]

ACQUISITIONS

ACQUISITIONS AND DISPOSITIONS

In fiscal 2017, the Company, through a wholly-owned international subsidiary, acquired the minority interest in one of its international subsidiaries for approximately $19.1 million, including transaction costs. Additionally, the Company made other immaterial acquisitions in fiscal 2017, fiscal 2016 and fiscal 2015.

In January 2018, the Company through a wholly-owned international subsidiary, sold a portion of its interest in a majority owned consolidated subsidiary for approximately $2.8 million. This transaction will result in the foreign subsidiary being deconsolidated and accounted for using the equity method of accounting, effective January 2018. In fiscal 2017, as part of this transaction, the Company recorded $37.8 million of assets held for sale and $19.2 million of liabilities held for sale, which are included in other current assets and accrued liabilities, respectively. In addition, the Company recorded a loss of approximately $0.9 million in fiscal 2017.

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Inventories

12 Months Ended

Dec. 30, 2017

Inventory Disclosure [Abstract]

INVENTORIES

INVENTORIES

A summary of inventories follows (in thousands):

	December 30, 2017		December 31, 2016
Finished product	$	171,277	$	156,542
Work in process	101,540		87,284
Raw material	33,173		39,859
Supplies and other	52,193		47,130
	$	358,183	$	330,815

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 adoption of this standard on January 1, 2017 did not have a material impact on the Company's consolidated financial statements. The Company's work in process inventory represents inventory in the Food Ingredients segment that is in various stages of processing.

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Property, Plant and Equipment

12 Months Ended

Dec. 30, 2017

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT

A summary of property, plant and equipment follows (in thousands):

	December 30, 2017			December 31, 2016
Land	$	165,847		$	152,949
Buildings and improvements	513,078			464,957
Machinery and equipment	1,617,008			1,385,694
Vehicles	229,995			204,995
Aircraft	13,504			13,504
Construction in process	181,838			135,662
	2,721,270			2,357,761
Accumulated depreciation	(1,075,448		)	(842,186		)
	$	1,645,822		$	1,515,575

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Intangbile assets

12 Months Ended

Dec. 30, 2017

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):

	December 30, 2017			December 31, 2016
Indefinite Lived Intangible Assets
Trade names	$	54,682		$	51,687
	54,682			51,687
Finite Lived Intangible Assets:
Routes	397,808			374,989
Permits	512,659			493,311
Non-compete agreements	3,963			3,638
Trade names	76,558			76,033
Royalty, consulting, land use rights and leasehold	14,666			13,456
	1,005,654			961,427
Accumulated Amortization:
Routes	(136,592		)	(105,934		)
Permits	(211,264		)	(170,165		)
Non-compete agreements	(2,387		)	(1,788		)
Trade names	(30,235		)	(21,042		)
Royalty, consulting, land use rights and leasehold	(3,358		)	(2,258		)
	(383,836		)	(301,187		)
Total Intangible assets, less accumulated amortization	$	676,500		$	711,927

Gross intangible routes, permits, trade names, non-compete agreements and other intangibles partially decreased in fiscal 2017 and fiscal 2016 by approximately $6.7 million and $27.7 million, respectively as a result of asset retirements.

In addition, gross intangible routes, permits, trade names, non-compete agreements and other intangibles partially increased in fiscal 2017 and fiscal 2016 due to acquired intangibles of approximately $9.0 million and $7.1 million, respectively. Amortization expense for the three years ended December 30, 2017, December 31, 2016 and January 2, 2016, was approximately $78.0 million, $77.7 million and $83.3 million, respectively. Amortization expense for the next five fiscal years is estimated to be $77.3 million, $76.1 million, $75.6 million, $75.0 million and $74.0 million.

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Goodwill

12 Months Ended

Dec. 30, 2017

GOODWILL [Abstract]

GOODWILL

GOODWILL

Changes in the carrying amount of goodwill (in thousands):

	Feed Ingredients			Food Ingredients			Fuel Ingredients			Total
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
Goodwill acquired during year	1,880			—			—			1,880
Goodwill disposed of during year	(2,894		)	—			—			(2,894		)
Foreign currency translation	35,560			27,463			13,191			76,214
Balance at December 30, 2017
Goodwill	848,167			344,471			124,369			1,317,007
Accumulated impairment losses	(15,914		)	—			—			(15,914		)
	$	832,253		$	344,471		$	124,369		$	1,301,093

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 2017, fiscal 2016 and fiscal 2015, 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 28, 2017, October 29, 2016 and October 31, 2015, respectively.

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Investment in Unconsolidated Subsidiary

12 Months Ended

Dec. 30, 2017

Investment in Affiliate [Abstract]

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:

(in thousands)	December 31, 2017		December 31, 2016
Assets:
Total current assets	$	202,778	$	268,734
Property, plant and equipment, net	435,328		354,871
Other assets	4,655		12,164
Total assets	$	642,761	$	635,769
Liabilities and members' equity:
Total current portion of long term debt	$	17,023	$	17,023
Total other current liabilities	40,705		23,200
Total long term debt	36,730		53,753
Total other long term liabilities	450		418
Total members' equity	547,853		541,375
Total liabilities and member's equity	$	642,761	$	635,769

	Year Ended December 31,
(in thousands)	2017			2016			2015
Revenues:
Operating revenues	$	633,908		$	527,670		$	475,934
Expenses:
Total costs and expenses less depreciation, amortization and accretion expense	547,512			353,222			298,946
Depreciation, amortization and accretion expense	28,955			27,821			19,714
Operating income	57,441			146,627			157,274
Other income	1,343			551			120
Interest and debt expense, net	(2,306		)	(7,354		)	(13,604		)
Net income	$	56,478		$	139,824		$	143,790

As of December 30, 2017, under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $273.9 million on the consolidated balance sheet and has recorded approximately $28.2 million, $69.9 million and $71.9 million in equity net income in the unconsolidated subsidiary for the years ended December 30, 2017, December 31, 2016 and January 2, 2016, 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 for fiscal years ended December 31, 2016 and December 31, 2015. These biodiesel blenders tax credits expired on December 31, 2016, as a result the DGD Joint Venture fiscal 2017 results do not include any blenders tax credits. As a blender, the DGD Joint Venture has recorded approximately $160.6 million and $156.6 million in blender credits, for its fiscal years ended December 31, 2016 and December 31, 2015, 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, the DGD Joint Venture booked all blenders tax credits in the fourth quarter. In addition, for each of the years ended December 30, 2017, December 31, 2016 and January 2, 2016, the Company received $25.0 million in dividend distributions from the DGD Joint Venture.

In February 2018, the blender tax credits for calendar year 2017 were retroactively reinstated by the U.S. Congress. The DGD Joint Venture is expected to receive approximately $160.4 million in fiscal 2018 for these reinstated blenders tax credits.

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Accrued Expenses

12 Months Ended

Dec. 30, 2017

ACCRUED EXPENSES [Abstract]

ACCRUED EXPENSES

ACCRUED EXPENSES

Accrued expenses consist of the following (in thousands):

	December 30, 2017		December 31, 2016
Compensation and benefits	$	102,474	$	83,355
Utilities and sewage	18,077		16,446
Accrued income, ad valorem, and franchise taxes	30,546		19,179
Reserve for self insurance, litigation, environmental and tax matters (Note 19)	13,101		12,479
Medical claims liability	8,502		5,070
Accrued operating expenses	61,230		55,128
Accrued interest payable	16,125		15,961
Liabilities for sale	19,172		—
Other accrued expense	44,396		35,178
	$	313,623	$	242,796

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Leases

12 Months Ended

Dec. 30, 2017

Leases [Abstract]

LEASES

LEASES

The Company leases 14 processing plants and storage locations, land surrounding certain processing plants and 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 2104.  Minimum rental commitments under noncancellable leases as of December 30, 2017, are as follows (in thousands):

Period Ending Fiscal	Operating Leases		Capital Leases
2018	$	45,345	$	927
2019	39,414		311
2020	26,180		157
2021	14,770		—
2022	6,130		—
Thereafter	13,186		—
	$	145,025	$	1,395
Less amounts representing interest			(60		)
Capital lease obligations included in current and long-term debt			$	1,335

Rent expense was approximately $48.7 million, $43.6 million and $41.5 million, for the fiscal years ended December 30, 2017, December 31, 2016 and January 2, 2016, 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.

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Debt

12 Months Ended

Dec. 30, 2017

Debt Disclosure [Abstract]

Debt

DEBT

Debt consists of the following (in thousands): 

	December 30, 2017			December 31, 2016
Amended Credit Agreement:
Revolving Credit Facility ($5.3 million denominated in euro at December 31, 2016)	$	—		$	5,280
Term Loan A ($53.1 million and $76.9 million denominated in CAD at December 30, 2017 and December 31, 2016, respectively)	96,365			120,103
Less unamortized deferred loan costs	(671		)	(1,083		)
Carrying value Term Loan A	95,694			119,020
Term Loan B	505,000			583,500
Less unamortized deferred loan costs	(10,578		)	(6,298		)
Carrying value Term Loan B	494,422			577,202
5.375% Senior Notes due 2022 with effective interest of 5.72%	500,000			500,000
Less unamortized deferred loan costs	(6,638		)	(7,667		)
Carrying value 5.375% Senior Notes due 2022	493,362			492,333
4.75% Senior Notes due 2022 - Denominated in euro with effective interest of 5.10%	617,356			543,840
Less unamortized deferred loan costs - Denominated in euro	(8,675		)	(8,956		)
Carrying value 4.75% Senior Notes due 2022	608,681			534,884
Other Notes and Obligations	22,034			22,224
	1,714,193			1,750,943
Less Current Maturities	16,143			23,247
	$	1,698,050		$	1,727,696

As of December 30, 2017, the Company had outstanding debt under a term loan facility denominated in Canadian dollars of CAD$66.6 million. See below for discussion relating to the Company's debt agreements. In addition, at December 30, 2017, the Company had capital lease obligations denominated in Canadian dollars included in debt. The current and long-term capital lease obligation was approximately CAD$0.8 million and CAD$0.4 million, respectively.

As of December 30, 2017, 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 30, 2017, the Company had capital lease obligations denominated in euros included in debt. The current and long-term capital lease obligation was approximately €0.2 million and €0.1 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 18, 2017, the Company, and certain of its subsidiaries entered into an amendment (the “Fifth Amendment”) with its lenders to the Amended Credit Agreement. Among other things, the Fifth Amendment (i) refinances the term B loans under the Amended Credit Agreement with new term B loans in an aggregate principal amount of $525.0 million with a maturity date of December 18, 2024; (ii) adjusts the applicable margin pricing on borrowings under the term B loan; (iii) modifies certain of the negative covenants to increase the allowances for certain actions, including debt and investments; and (iv) makes other updates and changes.

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 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 $1.88 billion comprised of (i) the Company's $350.0 million term loan A facility (ii) the Company's $525.0 million term loan B facility and (iii) the Company's $1.0 billionfive-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 $948.3 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. The revolving loan facility will be used for working capital needs, general corporate purposes and other purposes not prohibited by the Amended Credit Agreement.

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 the base rate plus 1.00% or LIBOR plus 2.00%.

As of December 30, 2017, 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 3.57% per annum. The Company had $500.0 million outstanding under the term loan B facility at LIBOR plus a margin of 2.00% per annum for a total of 3.57% per annum and $5.0 million outstanding under the term loan B facility at base rate plus a margin of 1.00% per annum for a total of 5.50% per annum. The Company had CAD$66.6 million outstanding under the term loan A Facility at CDOR plus a margin of 2.00% per annum for a total of 3.5257% per annum. As of December 30, 2017, the Company had availability of $976.0 million under the Amended Credit Agreement taking into account amounts borrowed and letters of credit issued of $24.0 million. The Company also has foreign bank guarantees that are not part of the Company's Amended Credit Agreement in the amount of approximately $12.3 million at December 30, 2017. In addition, the Company capitalized $6.3 million of deferred loan costs in fiscal year 2017 in connection with the Fifth 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 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 acquisition of its Darling Ingredients International business 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 acquisition of its Darling Ingredients International business 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.

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).

As of December 30, 2017, the Company believes it is in compliance with all financial covenants under the Amended Credit Agreement, as well as all of the other covenants contained in the Amended Credit Agreement, the 5.375% Indenture and the 4.75% Indenture.

Maturities of long-term debt at December 30, 2017 follow (in thousands):

	Contractual Debt Payment
2018	$	16,143
2019	2,274
2020	1,751
2021	98,947
2022	1,122,636
thereafter	499,004
	$	1,740,755

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Other Noncurrent Liabilities

12 Months Ended

Dec. 30, 2017

OTHER NONCURRENT LIABILITIES [Abstract]

OTHER NONCURRENT LIABILITIES

OTHER NONCURRENT LIABILITIES

Other noncurrent liabilities consist of the following (in thousands):

	December 30, 2017		December 31, 2016
Accrued pension liability (Note 15)	$	52,771	$	53,152
Reserve for self insurance, litigation, environmental and tax matters (Note 19)	51,903		41,251
Other	1,613		1,711
	$	106,287	$	96,114

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Income Taxes

12 Months Ended

Dec. 30, 2017

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

During fiscal 2017 the Company recorded an income tax benefit of $69.2 million, which included a tax benefit of $88.9 million due to tax law changes enacted in December 2017 in several of the Company’s major tax jurisdictions.

On December 22, 2017, U.S. tax reform was signed into law. The Tax Act significantly revises the U.S. corporate income tax by, among other things, lowering the statutory corporate tax rate from 35% to 21%, eliminating certain deductions, enhancing the option for claiming accelerated depreciation deductions through 2026, imposing a mandatory one-time tax on accumulated earnings of foreign subsidiaries (also referred to as the toll charge or transition tax), and changing how foreign earnings are subject to U.S. tax. ASC 740, Accounting for Income Taxes, requires companies to recognize the effects of changes in tax laws and tax rates on deferred tax assets and liabilities in the period in which the new legislation is enacted. Due to the timing of the Tax Act and the substantial changes it brings, the Securities and Exchange Commission (“SEC”) staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which provides registrants a measurement period to report the impact of the new U.S. tax law. During the measurement period, provisional amounts for the effects of the tax law are recorded to the extent a reasonable estimate can be made. To the extent that all information necessary is not available, prepared or analyzed, companies may recognize provisional estimated amounts for a period of up to one year following enactment of the Tax Act.

The effects of the Tax Act on Darling include two major categories: (i) mandatory deemed repatriation, and (ii) remeasurement of deferred taxes. As described further below, we recorded a net tax benefit of $75.0 million for the impact of the Tax Act in the year ended December 30, 2017. As the Company does not have all the necessary information to analyze all income tax effects of the Act, this is a provisional amount which the Company believes represents a reasonable estimate of the accounting implications of this tax reform. The Company will continue to evaluate the Act and adjust the provisional amounts as additional information is obtained and analyzed. The ultimate impact of tax reform may differ from the Company's provisional amounts due to changes in the Company's interpretations and assumptions, as well as additional regulatory guidance that may be issued.

The Company expects to complete its detailed analysis no later than the fourth quarter of 2018. Below is a brief description of the two categories of effects from U.S. tax reform and its impact on the Company:

(i) Mandatory deemed repatriation - under the Tax Act, a company’s accumulated foreign earnings are deemed to be repatriated into the U.S. The Company recorded a provisional estimate of federal and state tax related to deemed repatriation in the amount of approximately $26.2 million. However, the Company had an existing U.S. deferred tax liability associated with foreign earnings that were not permanently reinvested outside the U.S. in the amount of $38.3 million. It is now expected that these foreign earnings can be repatriated to the U.S. without any additional U.S. tax above the amount accrued related to the mandatory deemed repatriation. Accordingly, the Company released the entire $38.3 million liability. This $38.3 million release combined with the $26.2 million amount related the mandatory deemed repatriation resulted in the Company recognizing a net provisional tax benefit of $12.1 million for this item. No material cash impact is expected from the deemed repatriation due to existing tax loss carryforwards.

(ii) Remeasurement of deferred taxes - under the Tax Act, the U.S. corporate income tax rate was reduced from 35% to 21%. Accordingly, Darling remeasured the Company's net U.S. deferred tax liability as of December 30, 2017 using the new 21% federal rate, which resulted in a provisional tax benefit of $62.9 million. The Company has significant net operating loss carryforwards to offset the mandatory one-time repatriation; therefore, the Company reduced its deferred tax asset related to its net operating loss carryforwards rather than incurring a toll charge liability for which a cash payment would otherwise be required.

These provisional amounts for the mandatory repatriation and its impact on the Company’s deferred taxes represent reasonable estimates, which required significant effort to determine based on numerous assumptions with respect to analyzing the Company’s post-1986 accumulated untaxed foreign earnings including historical practices, judgments made in the interpretation of the provisions in the Tax Act and estimates used in the calculations. The Company considers it likely that the U.S. Treasury Department, the IRS and other standard-setting bodies will issue technical guidance on how provisions of the Tax Act will be applied or otherwise administered, which may be different from the Company’s interpretation.

Also, in December 2017, Belgium and France enacted tax law changes resulting in a tax benefit of approximately $13.9 million. This amount is comprised of a benefit of approximately $4.4 million from the re-measurement of net deferred tax liabilities due to a reduction in the corporate tax rate in each country. Additionally, Belgium enacted a new provision increasing its participation exemption to 100%, which generally allows tax-free dividends to be received from subsidiaries resulting in a tax benefit of approximately $9.6 million.

U.S. and foreign income from operations before income taxes are as follows (in thousands):

	December 30, 2017		December 31, 2016		January 2, 2016
United States	$	179	$	48,869	$	50,473
Foreign	64,021		73,670		48,307
Income from operations before income taxes	$	64,200	$	122,539	$	98,780

Income tax expense attributable to income from continuing operations before income taxes consists of the following (in thousands):

	December 30, 2017			December 31, 2016			January 2, 2016
Current:
Federal	$	274		$	65		$	(21,775	)
State	(80		)	(332		)	411
Foreign	31,256			27,992			29,871
Total current	31,450			27,725			8,507
Deferred:
Federal	(76,056		)	(8,056		)	13,057
State	622			(649		)	(1,521		)
Foreign	(25,170		)	(3,705		)	(6,542		)
Total deferred	(100,604		)	(12,410		)	4,994
	$	(69,154	)	$	15,315		$	13,501

Income tax expense for the years ended December 30, 2017, December 31, 2016 and January 2, 2016, 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):

	December 30, 2017			December 31, 2016			January 2, 2016
Computed "expected" tax expense	$	22,470		$	42,888		$	34,573
Change in valuation allowance	1,609			1,039			4,421
Deferred tax on unremitted foreign earnings	641			2,546			4,848
Sub-Part F income	6,284			6,159			4,923
Foreign rate differential	(8,292		)	(9,982		)	(5,653		)
Biofuel tax incentives	—			(28,435		)	(28,143		)
Change in tax law
One-time U.S. transition tax	26,243			—			—
Deferred tax effects	(115,169		)	2,169			—
Other, net	(2,940		)	(1,069		)	(1,468		)
	$	(69,154	)	$	15,315		$	13,501

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 30, 2017 and December 31, 2016 are presented below (in thousands):

	December 30, 2017			December 31, 2016
Deferred tax assets:
Loss contingency reserves	$	8,546		$	11,998
Employee benefits	8,471			9,586
Pension liability	12,224			18,200
Intangible assets amortization, including taxable goodwill	1,475			2,317
Net operating losses	89,660			119,602
Tax credits	7,057			3,473
Inventory	6,295			8,523
Accrued liabilities and other	13,764			13,340
Total gross deferred tax assets	147,492			187,039
Less valuation allowance	(24,530		)	(20,150		)
Net deferred tax assets	122,962			166,889
Deferred tax liabilities:
Intangible assets amortization, including taxable goodwill	(170,294		)	(189,233		)
Property, plant and equipment depreciation	(166,217		)	(207,729		)
Investment in DGD Joint Venture	(29,516		)	(47,607		)
Tax on unremitted foreign earnings	(8,045		)	(49,196		)
Other	(1,555		)	(4,268		)
Total gross deferred tax liabilities	(375,627		)	(498,033		)
Net deferred tax liability	$	(252,665	)	$	(331,144	)
Amounts reported on Consolidated Balance Sheets:
Non-current deferred tax asset	$	14,043		$	14,990
Non-current deferred tax liability	(266,708		)	(346,134		)
Net deferred tax liability	$	(252,665	)	$	(331,144	)

At December 30, 2017, the Company had net operating loss carryforwards for federal income tax purposes of approximately $138.2 million, which begin to expire in 2020 through 2036.  As a result of the change in ownership which occurred pursuant to the May 2002 recapitalization, utilization of approximately $2.1 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 $203.9 million of net operating loss carryforwards for state income tax purposes, which expire in 2019 through 2036. The Company had foreign net operating loss carryforwards of about $192.0 million, $102.7 million of which expire in 2018 through 2037 and $89.3 million of which can be carried forward indefinitely. Also at December 30, 2017, the Company had U.S. federal and state tax credit carryforwards of approximately $1.4 million, and tax credit carryforwards with respect to its foreign tax jurisdictions of approximately $5.6 million. As of December 30, 2017, the Company had a valuation allowance of $2.8 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 $21.7 million due to uncertainties in its ability to utilize foreign net operating loss carryforwards, tax credit carryforwards and other foreign deferred tax assets.

At December 30, 2017, the Company had unrecognized tax benefits of approximately $2.4 million. During fiscal 2017, the Company entered into a settlement agreement with the Darling Ingredients International business seller in which an indemnity receivable of $3.0 million was collected and the Company generally accepted responsibility for any remaining tax liabilities in pre-acquisition tax years. 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 $2.0 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 30, 2017, interest and penalties related to unrecognized tax benefits were $1.3 million.

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):

	December 30, 2017			December 31, 2016
Balance at beginning of Year	$	4,667		$	5,604
Change in tax positions related to current year	290			—
Change in tax positions related to prior years	(198		)	99
Change in tax positions due to settlement with tax authorities	(1,949		)	—
Expiration of the Statute of Limitations	(426		)	(1,036		)
Balance at end of year	$	2,384		$	4,667

In fiscal 2017, the Company's major taxing jurisdictions are U.S. (federal and state), Belgium, Brazil, Canada, China, France, Germany and the Netherlands. The Company is subject to regular examination by various 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.

Many of the Company's operations are conducted outside the United States. As a result of the Tax Act and the mandatory repatriation, the Company expects to have access to its offshore earnings with minimal to no additional U.S. tax impact. Therefore, the Company will no longer consider these earnings to be permanently reinvested offshore. As of December 30, 2017, a deferred tax liability of approximately $8.0 million has been recorded for any incremental taxes, including foreign withholding taxes, that are estimated to be incurred when those earnings are distributed to the U.S. in future years.

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Stockholders' Equity and Stock-Based Compensation

12 Months Ended

Dec. 30, 2017

Stockholders' Equity and Stock-Based Compensation [Abstract]

STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION

STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION

On August 7, 2017, the Company's Board of Directors approved the extension for an additional two years of its previously announced share repurchase program of up to an aggregate of $100.0 million of the Company's Common Stock depending on market conditions. As of December 30, 2017, the Company has approximately $100 million remaining under the share repurchase program approved in August 2017.

On May 9, 2017, the shareholders approved the Company's 2017 Omnibus Incentive Plan (the “2017 Omnibus Plan”).  The 2017 Omnibus Plan replaced the Company's 2012 Omnibus Incentive Plan (the “2012 Omnibus Plan”) for future grants. Under the 2017 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 20,166,500 common shares available under the 2017 Omnibus Plan which may be granted to participants in any plan year (as such term is defined in the 2017 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 2017 Omnibus Plan.  The 2017 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 2017 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 2017 Omnibus Plan.  Beginning fiscal 2017, 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 2017 Omnibus Plan.  The principal purpose of the LTIP is to encourage the participants 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 participants. The Committee adopted similar LTIPs for fiscal 2015 and 2016, as subplans under the terms of the 2012 Omnibus Plan. At December 30, 2017, the number of common shares available for issuance under the 2017 Omnibus Plan was 16,576,999.

For fiscal 2015, 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 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”, “Fiscal 2017 LTIP PSU Awards” and “Fiscal 2016 LTIP PSU Awards” below for more information regarding the stock options and PSU awards under the 2017 LTIP and 2016 LTIP.

The following is a summary of stock-based compensation awards granted during the years ended December 30, 2017, December 31, 2016 and January 2, 2016.

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 LTIPs under the 2012 Omnibus Plan and the 2017 Omnibus Plan, as the case may be. For the options granted under the fiscal 2015 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 2017 LTIP and 2016 LTIP, the exercise price was equal to the closing price of Darling common shares on the date of grant, which was February 6, 2017 and February 25, 2016, respectively and such options vest 33.33% on the first, second and third anniversaries of the grant. The Company granted 956,809 stock options under the 2017 LTIP and 1,094,306 stock options under the 2016 LTIP.

During fiscal 2017, 2016 and 2015 only nonqualified stock options were issued and none of the options were incentive stock options. The Company’s stock options granted under the LTIPs generally terminate 10 years after the date of grant. 

A summary of all stock option activity as of December 30, 2017 and changes during the year ended is as follows:

	Number of shares		Weighted-avg. exercise price per share		Weighted-avg. remaining contractual life
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
Granted	956,809		12.29
Exercised	(27,968	)	8.51
Forfeited	(4,000	)	13.55
Expired	—		—
Options outstanding at December 30, 2017	3,290,757		$	11.86	7.3 years
Options exercisable at December 30, 2017	1,516,605		$	12.90	5.9 years

The fair value of each stock option grant under the LTIPs was estimated on the date of grant using the Black Scholes option-pricing model with the following weighted average assumptions and results for fiscal 2017, 2016 and 2015.

Weighted Average	2017	2016	2015
Expected dividend yield	0.0%	0.0%	0.0%
Risk-free interest rate	2.00%	1.35%	1.82%
Expected term	5.82 years	5.76 years	5.75 years
Expected volatility	33.4%	34.4%	38.0%
Fair value of options granted	$4.34	$3.34	$5.59

The expected lives for options granted during fiscal 2017, 2016 and 2015 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 30, 2017, $7.8 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 1.1 years.

For the year ended December 30, 2017, the amount of cash received from the exercise of options was less than $0.1 million and the related tax benefit was less than $0.1 million. 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 benefits were approximately $0.4 million. The total intrinsic value of options exercised for the years ended December 30, 2017, December 31, 2016 and January 2, 2016 was approximately $0.2 million, $0.2 million and $1.4 million, respectively.  The fair value of shares vested for the years ended December 30, 2017, December 31, 2016 and January 2, 2016 was approximately $11.3 million, $8.3 million and $7.5 million, respectively.  At December 30, 2017, the aggregate intrinsic value of options outstanding was approximately $20.8 million and the aggregate intrinsic value of options exercisable was approximately $8.1 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, while 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. For grants made under the 2012 Omnibus Plan, both non-vested stock and RSUs generally vest 25 percent upon grant and 25 percent each of the first three anniversary dates of the grant thereafter. For grants made under the 2017 Omnibus Plan, both non-vested stock and RSUs generally vest on the first three anniversary dates of the grant. 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.

A summary of the Company’s non-vested stock, restricted stock unit and performance share unit awards as of December 30, 2017, and changes during the year ended is as follows:

	Non-Vested, RSU and PSU Shares		Weighted Average Grant Date Fair Value
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
Shares granted	104,750		12.27
Shares vested	(486,086	)	13.98
Shares forfeited	(239,581	)	20.90
Stock awards outstanding December 30, 2017	360,344		$	13.18

Fiscal 2017 LTIP PSU Awards. On February 6, 2017, the Committee granted 559,388 PSUs under the Company's 2017 LTIP. The PSUs are tied to a three-year forward-looking performance period and will be earned based on the Company's average return on capital employed (ROCE), as calculated in accordance with the terms of the award agreement, relative to the average ROCE of the Company's performance peer group companies over the same performance period, with the earned award to be determined in the first quarter of fiscal 2020, after the final results for the relevant performance period are determined.

Fiscal 2016 LTIP PSU Awards. On February 25, 2016, the Committee granted 664,120 PSUs under the Company's 2016 LTIP, 153,000 of which are tied to a two-year forward-looking performance period and 511,120 of which are tied to a three-year, forward-looking performance period and all of which will be earned based on the Company's average ROCE, as calculated in accordance with the terms of the award agreement, relative to the average ROCE of the Company's performance peer group companies over the same performance periods, 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.

Under the 2017 LTIP and 2016 LTIP, 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 2017 LTIP and 2016 LTIP PSU award under the Company's 2017 LTIP and 2016 LTIP was estimated on the date of grant using a Monte Carlo model with the following weighted average assumptions for fiscal 2017 and fiscal 2016, except for the illiquidity discount, which only pertains to the 2017 LTIP and 2016 LTIP PSU's with a holding period requirement.

Weighted Average	2017	2016
Expected dividend yield	0.0%	0.0%
Risk-free interest rate	1.40%	0.80%
Expected term	2.89 years	2.62 years
Expected volatility	32.7%	29.3%
Illiquidity discount	14.0%	16.1%

A summary of the Company’s 2017 and 2016 LTIP PSU awards as of December 30, 2017, and changes during the year ended is as follows:

	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
Granted	559,388		11.14
Vested	—		—
Forfeited	(82,492	)	9.99
LTIP PSU awards outstanding December 30, 2017	1,141,016		$	8.91

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 Company's 2004 Omnibus Incentive Plan (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 received $90,000 of restricted stock units immediately following the Company’s annual meeting of stockholders at which such directors are elected. Beginning in fiscal 2017, the Board increased the dollar amount of the annual grant of restricted stock units to $110,000, and such grants are now made under the 2017 Omnibus Plan. 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 grantee’s separation from service as a result of death or disability, or (iii) 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 earlier distributions 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 30, 2017, and changes during the year ended is as follows:

	Restricted stock and Restricted Stock Unit Shares		Weighted Average Grant Date Fair Value
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
Restricted shares granted	60,575		15.63
Restricted shares where the restriction lapsed	(14,915	)	12.42
Restricted shares forfeited	(2,210	)	14.51
Stock awards outstanding December 30, 2017	154,809		$	14.91

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Comprehensive Income

12 Months Ended

Dec. 30, 2017

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 30, 2017, December 31, 2016 and January 2, 2016 are as follows (in thousands):

	Before-Tax			Tax (Expense)			Net-of-Tax
	Amount			or Benefit			Amount
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 (loss)	4,405			(1,710		)	2,695
Total corn options	2,888			(1,121		)	1,767
Foreign currency translation
Other comprehensive income/(loss)	(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 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	)
Year Ended December 30, 2017
Defined Benefit Pension Plans
Actuarial (loss)/gain recognized	$	4,027		$	(1,264	)	$	2,763
Amortization of actuarial loss	4,786			(1,801		)	2,985
Amortization of prior service costs	35			(11		)	24
Amortization of settlement	42			(15		)	27
Other	30			—			30
Total defined benefit pension plans	8,920			(3,091		)	5,829
Natural gas swap derivatives
Loss/(gain) reclassified to net income	35			(14		)	21
Gain/(loss) recognized in other comprehensive income (loss)	(65		)	26			(39		)
Total natural gas derivatives	(30		)	12			(18		)
Corn option derivatives
Loss/(gain) reclassified to net income	(5,255		)	2,039			(3,216		)
Gain/(Loss) recognized in other comprehensive income	3,494			(1,356		)	2,138
Total corn options	(1,761		)	683			(1,078		)
Foreign currency translation	121,810			—			121,810
Other comprehensive income/(loss)	$	128,939		$	(2,396	)	$	126,543

	Fiscal Year Ended
	December 30, 2017			December 31, 2016			January 2, 2016			Statement of Operations Classification
Derivative instruments
Natural gas swap derivatives	$	(35	)	$	—		$	—		Cost of sales and operating expenses
Corn option derivatives	5,255			3,868			1,517			Cost of sales and operating expenses
	5,220			3,868			1,517			Total before tax
	(2,025		)	(1,501		)	(589		)	Income taxes
	3,195			2,367			928			Net of tax
Defined benefit pension plans
Amortization of prior service cost	$	(35	)	$	(36	)	$	67		(a)
Amortization of actuarial loss	(4,786		)	(4,632		)	(5,101		)	(a)
Amortization of curtailment	—			—			1,181			(a)
Amortization of settlement	(42		)	114			(5,291		)	(a)
	(4,863		)	(4,554		)	(9,144		)	Total before tax
	1,827			1,753			3,090			Income taxes
	(3,036		)	(2,801		)	(6,054		)	Net of tax
Total reclassifications	$	159		$	(434	)	$	(5,126	)	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.

The following table presents changes in each component of accumulated comprehensive income (loss) as of December 30, 2017 as follows (in thousands):

	Fiscal Year Ended December 30, 2017
	Foreign Currency			Derivative			Defined Benefit
	Translation			Instruments			Pension Plans			Total
Accumulated Other Comprehensive Income/(loss) December 31, 2016, attributable to Darling, net of tax	$	(308,910	)	$	2,468		$	(33,564	)	$	(340,006	)
Other comprehensive gain before reclassifications	121,810			2,099			2,793			126,702
Amounts reclassified from accumulated other comprehensive income/(loss)	—			(3,195		)	3,036			(159		)
Net current-period other comprehensive income	121,810			(1,096		)	5,829			126,543
Noncontrolling interest	(3,939		)	—			—			(3,939		)
Accumulated Other Comprehensive Income/(loss) December 30, 2017, attributable to Darling, net of tax	$	(183,161	)	$	1,372		$	(27,735	)	$	(209,524	)

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Employee Benefit Plans

12 Months Ended

Dec. 30, 2017

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.

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 2017, 2016 and 2015 were approximately $9.6 million, $9.2 million and $9.3 million, respectively. The Company's matching portion and annual employer contributions to the Company's foreign defined contribution plans for fiscal 2017, 2016 and 2015 were approximately $7.5 million, $6.2 million and $3.0 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. The Company uses 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, 2017 and December 31, 2016) (in thousands):

	December 30, 2017			December 31, 2016
Change in projected benefit obligation:
Projected benefit obligation at beginning of period	$	189,290		$	182,276
Service cost	3,043			2,549
Interest cost	6,711			6,950
Employee contributions	436			439
Plan amendments	(8		)	101
Actuarial loss/(gain)	8,051			7,905
Benefits paid	(7,063		)	(7,146		)
Effect of curtailment	—			(1,286		)
Effect of settlement	(884		)	(953		)
Other	5,152			(1,545		)
Projected benefit obligation at end of period	204,728			189,290
Change in plan assets:
Fair value of plan assets at beginning of period	134,909			127,970
Actual return on plan assets	19,030			10,138
Employer contributions	4,214			5,250
Employee contributions	436			439
Benefits paid	(7,063		)	(7,146		)
Effect of settlement	(884		)	(953		)
Divestiture	(2,262		)	—
Other	2,137			(789		)
Fair value of plan assets at end of period	150,517			134,909
Funded status	(54,211		)	(54,381		)
Net amount recognized	$	(54,211	)	$	(54,381	)
Amounts recognized in the consolidated balance    sheets consist of:
Current liability	$	(1,440	)	$	(1,229	)
Noncurrent liability	(52,771		)	(53,152		)
Net amount recognized	$	(54,211	)	$	(54,381	)
Amounts recognized in accumulated other    comprehensive loss consist of:
Net actuarial loss	$	43,651		$	52,525
Prior service cost/(credit)	371			417
Net amount recognized  (a)	$	44,022		$	52,942

(a) Amounts do not include deferred taxes of $16.3 million and $19.4 million at December 30, 2017 and December 31, 2016, respectively.

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 74% and 75% of the projected benefit obligation for fiscal 2017 and fiscal 2016, respectively. Additionally, the Company has made required and tax deductible discretionary contributions to its domestic pension plans in fiscal 2017 and fiscal 2016 of approximately $1.0 million and approximately $0.6 million, respectively. The Company made required and tax deductible discretionary contributions to its foreign pension plans in fiscal 2017 and fiscal 2016 of approximately $3.3 million and $ 4.7 million, respectively.

	December 30, 2017		December 31, 2016
Projected benefit obligation	$	204,728	$	189,290
Accumulated benefit obligation	192,192		181,340
Fair value of plan assets	150,517		134,909

Net pension cost includes the following components (in thousands):

	December 30, 2017			December 31, 2016			January 2, 2016
Service cost	$	3,043		$	2,549		$	6,638
Interest cost	6,711			6,950			10,536
Expected return on plan assets	(7,181		)	(7,552		)	(12,229		)
Net amortization and deferral	4,821			4,668			5,034
Curtailment	—			(1,285		)	(1,181		)
Settlement	42			(114		)	(2,353		)
Net pension cost	$	7,436		$	5,216		$	6,445

Amounts recognized in accumulated other comprehensive income (loss) for the year ended (in thousands):

	2017		2016
Actuarial (loss)/gain recognized:
Reclassification adjustments	$	2,985	$	2,846
Actuarial (loss)/gain recognized during the period	2,763		(3,861		)
Amortization of settlement	27		(69		)
Prior service (cost) credit recognized:
Reclassification adjustments	24		24
Other	30		44
	$	5,829	$	(1,016	)

The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic pension cost in fiscal 2018 is as follows (in thousands):

	2018
Net actuarial loss	$	3,556
Prior service cost	35
	$	3,591

Weighted average assumptions used to determine benefit obligations were:

	December 30, 2017	December 31, 2016	January 2, 2016
Discount rate	3.40%	3.81%	4.13%
Rate of compensation increase	0.38%	0.38%	0.31%

Weighted average assumptions used to determine net periodic benefit cost for the employee benefit pension plans were:

	December 30, 2017	December 31, 2016	January 2, 2016
Discount rate	3.49%	3.55%	3.47%
Rate of increase in future compensation levels	0.43%	0.84%	0.38%
Expected long-term rate of return on assets	6.17%	6.52%	6.62%

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 6.4% 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 3.3%.

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.

Fixed Income	35% - 80%
Equities	20% - 65%

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):

	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  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
Balances as December 30, 2017
Fixed Income:
Long Term	$	23,231	$	23,231	$	—	$	—
Short Term	1,869		1,869		—		—
Equity Securities:
Domestic equities	44,173		44,173		—		—
International equities	28,152		28,152		—		—
Insurance contracts	9,876		—		6,501		3,375
Total categorized in fair value hierarchy	107,301		97,425		6,501		3,375
Other investments measured at NAV	43,216
Totals	$	150,517	$	97,425	$	6,501	$	3,375

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 2017 and 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:

	Insurance
(in thousands of dollars)	Contracts
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
Unrealized gains/(losses) relating to instruments still held in the reporting period.	203
Purchases, sales, and settlements	—
Exchange rate changes	389
Balance as of December 30, 2017	$	3,375

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 $5.0 million to meet funding requirements for its domestic and foreign pension plans in fiscal 2018.

Estimated Future Benefit Payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 

Year Ending	Pension Benefits
2018	$	9,780
2019	9,790
2020	9,641
2021	11,385
2022	11,098
Years 2023 – 2027	61,843

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):

											Expiration
Pension	EIN Pension	Pension Protection Act Zone Status		FIP/RP Status Pending/	Contributions						Date of Collective Bargaining
Fund	Plan Number	2017	2016	Implemented	2017		2016		2015		Agreement
Western Conference of Teamsters Pension Plan	91-6145047 / 001	Green	Green	No	$	1,524	$	1,456	$	1,387	April 2020 (b)
Central States, Southeast and Southwest Areas Pension Plan (a)	36-6044243 / 001	Red	Red	Yes	968		934		858		August 2018 (c)
All other multiemployer plans					980		983		986
		Total Company Contributions			$	3,472	$	3,373	$	3,231

(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.

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 $3.5 million, $3.4 million and $3.2 million for the years ended December 30, 2017, December 31, 2016 and January 2, 2016, 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 30, 2017, the Company has an aggregate accrued liability of approximately $1.7 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 requireadditional funding under the Pension Protection Act of 2006, the amounts could be material.

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Derivatives

12 Months Ended

Dec. 30, 2017

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 30, 2017, the Company had natural gas swap contracts and corn option contracts outstanding that qualified and were designated for hedge accounting as well as corn options and forward contracts 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 2017, the Company entered into natural gas swap contracts that are considered cash flow hedges. Under the terms of the natural gas swap contracts , the Company fixed the expected purchase cost of a portion of its U.S plants' forecasted natural gas usage into the first quarter of fiscal 2018. As of December 30, 2017, some of the contracts have expired and settled according to the contracts while the remaining contract positions and activity are disclosed below.

In fiscal 2016 and fiscal 2017, 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 2018. As of December 30, 2017, all fiscal 2016 contracts and some of the fiscal 2017 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 30, 2017, 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):

Functional Currency		Contract Currency
Type	Amount	Type	Amount
Brazilian real	28,792	Euro	7,457
Brazilian real	67,834	U.S. Dollar	20,590
Euro	65,457	U.S. Dollar	77,795
Euro	9,017	Polish zloty	38,000
Euro	5,030	Japanese yen	673,000
Euro	28,077	Chinese renminbi	222,612
Euro	11,363	Australian dollar	17,800
Euro	2,890	British pound	2,565
Polish zloty	18,062	Euro	4,259
British pound	196	Euro	220
Japanese yen	280,608	U.S. dollar	2,505

The Company estimates the amount that will be reclassified from accumulated other comprehensive gain at December 30, 2017 into earnings over the next 12 months will be approximately $2.2 million.  As of December 30, 2017, 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 30, 2017 and December 31, 2016 (in thousands):

Derivatives Designated	Balance Sheet	Asset Derivatives Fair Value
as Hedges	Location	December 30, 2017		December 31, 2016
Corn options	Other current assets	$	3,418	$	4,235
Total derivatives designated as hedges		$	3,418	$	4,235
Derivatives not Designated as Hedges
Foreign currency contracts	Other current assets	$	332	$	8,939
Corn options and futures	Other current assets	596		151
Total derivatives not designated as hedges		$	928	$	9,090
Total asset derivatives		$	4,346	$	13,325

Derivatives Designated	Balance Sheet	Liability Derivatives Fair Value
as Hedges	Location	December 30, 2017		December 31, 2016
Natural gas swaps	Accrued expenses	$	24	$	—
Total derivatives designated as hedges		$	24	$	—
Derivatives not Designated as Hedges
Foreign currency contracts	Accrued Expenses	$	2,288	$	608
Corn options and futures	Accrued Expenses	14		122
Total derivatives not designated as hedges		$	2,302	$	730
Total liability derivatives		$	2,326	$	730

The effect of the Company's derivative instruments on the consolidated financial statements for the fiscal years ended December 30, 2017 and December 31, 2016 are as follows (in thousands):

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)
	2017			2016		2017			2016		2017			2016
Corn options	$	3,494		$	4,889	$	5,255		$	3,868	$	711		$	331
Natural gas swaps	(65		)	—		(35		)	—		(25		)	—
Total	$	3,429		$	4,889	$	5,220		$	3,868	$	686		$	331

(a) Amount recognized in accumulated OCI (effective portion) is reported as accumulated other comprehensive gain of approximately $3.4 million and approximately $4.9 million recorded net of taxes of approximately $(1.3) million and approximately $(1.9) million for the year ended December 30, 2017 and December 31, 2016, respectively.

(b) Gains and (losses) reclassified from accumulated OCI into income (effective portion) for corn options 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 corn options and natural gas swaps is included in other income/(expense), net in the Company’s consolidated statements of operations.

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 30, 2017, December 31, 2016 and January 2, 2016 (in thousands):

		Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges
		For The Year Ended
Derivatives not designated as hedging instruments	Location	December 30, 2017			December 31, 2016			January 2, 2016
Foreign exchange	Foreign currency loss/(gain)	$	13,460		$	(1,542	)	$	(27,321	)
Foreign exchange	Selling, general and administrative expense	(2,763		)	(8,543		)	7,508
Corn options and futures	Net sales	212			472			(2		)
Corn options and futures	Cost of sales and operating expenses	(1,659		)	(1,411		)	(2,067		)
Natural gas and heating oil swaps and options	Cost of sales and operating expenses	—			—			132
Heating oil swaps and options	Net sales	492			455			—
Soybean meal	Net sales	(405		)	7			—
Soybean oil	Net sales	45			—			—
Total		$	9,382		$	(10,562	)	$	(21,750	)

At December 30, 2017, the Company had forward purchase agreements in place for purchases of approximately $19.1 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.

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Fair Value Measurement

12 Months Ended

Dec. 30, 2017

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT

FASB authoritative guidancewhich 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 30, 2017 and December 31, 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.

			Fair Value Measurements at December 30, 2017 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	$	4,346	$	—	$	4,346	$	—
Total Assets	4,346		—		4,346		—
Liabilities
Derivative liabilities	2,326		—		2,326		—
5.375% Senior Notes	513,100		—		513,100		—
4.75% Senior Notes	646,681		—		646,681		—
Term Loan A	95,883		—		95,883		—
Term Loan B	511,616		—		511,616		—
Total Liabilities	$	1,769,606	$	—	$	1,769,606	$	—

			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	$	—

Derivative assets and liabilities consist of the Company's natural gas swap contracts and corn option and future contracts and foreign currency 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.

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Concentration of Credit Risk

12 Months Ended

Dec. 30, 2017

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 2017, 2016 and 2015.

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Contingencies

12 Months Ended

Dec. 30, 2017

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 30, 2017 and December 31, 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 $61.4 million and $51.9 million, respectively.  The Company has insurance recovery receivables of approximately $25.0 million and $15.9 million, as of December 30, 2017 and December 31, 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. In January 2017, the Company entered into a non-binding letter of intent with the City of Fresno pursuant to which the City and the Company will work toward the execution of a definitive agreement to relocate the facility to a different location in Fresno. Whether an agreement to relocate the facility ultimately gets executed is subject to the Company’s receipt of certain incentives and an agreement by the Concerned Citizens of West Fresno to settle and dismiss the aforementioned litigation. 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.

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Business Segments

12 Months Ended

Dec. 30, 2017

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 fats and proteins, used cooking oil, trap grease and food residuals collection businesses, the Rothsay ingredients business, and the ingredients and specialty products businesses conducted by Darling Ingredients International under the Sonac name (proteins, fats, and plasma products) and (ii) the Company's bakery residuals business.

Food Ingredients

Food Ingredients consists principally of (i) the gelatin and collagen hydrolysates business conducted by Darling Ingredients International under the Rousselot name, (ii) the natural casings and meat-by-products business conducted by Darling Ingredients International under the CTH name and (iii) certain specialty products businesses conducted by Darling Ingredients International under the Sonac name.

Fuel Ingredients

The Company's Fuel Ingredients segment consists of (i) the Company's biofuel business conducted under the Dar Pro® and Rothsay names (ii) the bioenergy business conducted by Darling Ingredients International under the Ecoson and Rendac names and (iii) the Company's investment in the DGD Joint Venture.

The Fuel Ingredients segment results did not include any blenders tax credits in fiscal 2017. In February 2018, the blender tax credits for calendar year 2017 were retroactively reinstated by the U.S. Congress. The Fuel Ingredients segment is expected to receive approximately $12.6 million in fiscal 2018 for these reinstated blenders tax credits.

Business Segments (in thousands):

	Feed Ingredients		Food Ingredients		Fuel Ingredients		Corporate			Total
Fiscal Year Ended December 30, 2017
Net Sales	$	2,239,492	$	1,156,976	$	265,783	$	—		$	3,662,251
Cost of sales and operating expenses	1,744,768		920,575		210,508		—			2,875,851
Gross Margin	494,724		236,401		55,275		—			786,400
Selling, general and administrative expense	180,866		104,982		10,467		51,172			347,487
Depreciation and amortization	184,172		75,010		31,019		11,899			302,100
Segment operating income/(loss)	129,686		56,409		13,789		(63,071		)	136,813
Equity in net income of unconsolidated subsidiaries	265		—		28,239		—			28,504
Segment income	129,951		56,409		42,028		(63,071		)	165,317
Total other expense										(101,117		)
Income before income taxes										$	64,200
Segment assets at December 30, 2017	$	2,614,545	$	1,499,027	$	688,890	$	155,763		$	4,958,225

	Feed Ingredients		Food Ingredients		Fuel Ingredients		Corporate			Total
Fiscal Year Ended December 31, 2016
Net Sales	$	2,089,145	$	1,055,725	$	247,058	$	—		$	3,391,928
Cost of sales and operating expenses	1,624,858		828,223		182,466		—			2,635,547
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	$	1,088,727	$	228,195	$	—		$	3,391,255
Cost of sales and operating expenses	1,613,402		863,562		177,061		—			2,654,025
Gross Margin	460,931		225,165		51,134		—			737,230
Selling, general and administrative expense	178,624		97,110		7,264		33,385			316,383
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

Business Segment Property, Plant and Equipment (in thousands):

	December 30, 2017		December 31, 2016		January 2, 2016
Depreciation and amortization:
Feed Ingredients	$	184,172	$	178,845	$	165,854
Food Ingredients	75,010		70,120		66,817
Fuel Ingredients	31,019		28,531		26,711
Corporate Activities	11,899		12,412		10,522
Total	$	302,100	$	289,908	$	269,904
Capital expenditures:
Feed Ingredients	$	191,953	$	167,313	$	153,894
Food Ingredients	50,099		50,020		49,066
Fuel Ingredients	24,707		22,323		19,478
Corporate Activities	7,409		3,867		7,410
Total (a)	$	274,168	$	243,523	$	229,848

(a) Excludes immaterial capital assets acquired by acquisition in fiscal 2017, fiscal 2016 and fiscal 2015.

Geographic Area Net Trade Revenues (in thousands):

	December 30, 2017		December 31, 2016		January 2, 2016
North America	$	1,937,027	$	1,817,659	$	1,951,421
Europe	1,372,750		1,225,397		1,066,779
China	209,780		218,480		234,978
South America	60,111		55,089		62,035
Other	82,583		75,303		76,042
Total	$	3,662,251	$	3,391,928	$	3,391,255

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):

	FY 2017		FY 2016
	Long-Lived Assets		Long-Lived Assets
North America	$	2,468,111	$	2,411,489
Europe	1,292,020		1,158,087
China	151,760		152,150
South America	81,247		74,837
Other	8,642		8,152
Total	$	4,001,780	$	3,804,715

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Quarterly Financial Data

12 Months Ended

Dec. 30, 2017

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):

	Year Ended December 30, 2017
	First  Quarter (a)			Second  Quarter (a)			Third  Quarter (a)			Fourth  Quarter (b)
Net sales	$	878,510		$	894,930		$	936,262		$	952,549
Operating income	31,414			37,063			33,310			35,026
Income from operations before income taxes	9,216			18,070			14,980			21,934
Net income	7,398			10,328			8,684			106,944
Net (income)/loss attributable to minority interests	(1,569		)	(1,179		)	(923		)	(1,215		)
Net income/(loss) attributable to Darling	5,829			9,149			7,761			105,729
Basic earnings per share	0.04			0.06			0.05			0.64
Diluted earnings per share	0.04			0.05			0.05			0.63

(a) Previously reported amounts have been adjusted to reflect the correction of an immaterial classification error in net sales and cost of sales. Net sales and cost of sales were each decreased by approximately $1.6 million in the first quarter of fiscal 2017, approximately $1.4 million in the second quarter of fiscal 2017, approximately $1.4 million in the third quarter of fiscal 2017.

(b) Included in net income is a net tax benefit relating to the U.S. tax reform passed by congress in December 2017 of approximately $75.0 million.

	Year Ended December 31, 2016
	First  Quarter (c)			Second  Quarter (c)			Third  Quarter (c)			Fourth  Quarter (c), (d)
Net sales	$	778,375		$	875,777		$	852,018		$	885,758
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

(c) Previously reported amounts have been adjusted to reflect the correction of an immaterial classification error in net sales and cost of sales. Net sales and cost of sales were each decreased by approximately $1.3 million in the first quarter of fiscal 2016, approximately $1.6 million in the second quarter of fiscal 2016, approximately $1.8 million in the third quarter of fiscal 2016 and $1.5 million in the fourth quarter of fiscal 2016.

(d) 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.

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Related Party Transactions

12 Months Ended

Dec. 30, 2017

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 30, 2017, December 31, 2016 and January 2, 2016, the Company has recorded sales to the DGD Joint Venture of approximately $171.3 million, $150.5 million and $158.7 million, respectively. At December 30, 2017 and December 31, 2016, the Company has approximately $5.6 million and $6.3 million in outstanding receivables due from the DGD Joint Venture, respectively. In addition, the Company has eliminated additional sales of approximately $4.1 million, $4.1 million and $5.0 million for the year ended December 30, 2017, December 31, 2016 and January 2, 2016, 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 30, 2017, December 31, 2016 and January 2, 2016 of approximately $0.9 million, $0.7 million and $0.8 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, 2018, 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 30, 2017, no amounts are owed to Darling Green under the DGD Loan Agreement.

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New Accounting Pronoucements

12 Months Ended

Dec. 30, 2017

New Accounting Pronoucements [Abstract]

NEW ACCOUNTING PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS

In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU amends Topic 220, Income Statement - Reporting Comprehensive Income, which will allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The ASU is effective for fiscal years beginning after December 15, 2018 and for interim periods therein with early adoption permitted. The Company is currently evaluating the impact of this standard.

In August 2017, the FASB issued ASU No. 2017-12, Targeted Improvement to Accounting for Hedging Activities. This ASU amends Topic 815, Derivatives and Hedging, which is intended to more closely align hedge accounting with companies' risk management strategies and simplify the application of hedge accounting. The guidance includes certain targeted improvements to ease the operational burden of applying hedge accounting. The ASU is effective for fiscal years beginning after December 15, 2018 and for interim periods therein with early adoption permitted. The Company will be required to apply the guidance on a cumulative-effect basis with adjustment to retained earnings as of the beginning of the fiscal year of adoption. The Company is currently evaluating the impact of this standard.

In March 2017, the FASB issued ASU No. 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU amends Topic 715, Compensation - Retirement Benefits, which requires that an employer report the service cost component of net benefit costs to be disaggregated from all other components and reported in the same line item or items as other compensation costs. The other components of net benefit cost are required to be presented in the income statement separately from the service cost. The ASU is effective for fiscal years beginning after December 15, 2017 and for interim periods therein. The initial adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements.

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 initial adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements.

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 initial adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements.

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 initial adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements.

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 initial adoption of this ASU is not expected to 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 disclosures, 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 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 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 assessment, the Company has elected to adopt this standard on a modified retrospective basis beginning in fiscal 2018. The adoption will not change the timing of revenues as the Company's revenues have been determined to be recognized at a point in time and not over time. The Company has elected not to capitalize contract fulfillment costs as the recovery of such costs are for a period of less than one year's time and are not material to the Company. Additionally, the Company has elected to treat shipping and handling as fulfillment costs, which will result in a reduction of revenue and a reduction of cost of sales for fiscal 2017 and fiscal 2016 of approximately $161.1 million and $149.0 million, respectively with no impact on overall earnings. The Company is currently reviewing the expanded incremental disclosures and the disaggregation of revenues disclosures as required under ASU No. 2014-09.

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Guarantor Financial Information

12 Months Ended

Dec. 30, 2017

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 30, 2017 and December 31, 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 30, 2017, December 31, 2016 and January 2, 2016. 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 30, 2017

(in thousands)

	Parent		Guarantors		Non-guarantors		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	1,724	$	2,993	$	102,057	$	—		$	106,774
Restricted cash	103		—		39		—			142
Accounts receivable	37,453		465,653		436,874		(548,133		)	391,847
Inventories	18,049		84,805		255,329		—			358,183
Income taxes refundable	1,591		—		2,918		—			4,509
Prepaid expenses	10,787		3,141		24,398		—			38,326
Other current assets	7,117		923		48,624		—			56,664
Total current assets	76,824		557,515		870,239		(548,133		)	956,445
Investment in subsidiaries	4,734,618		1,167,246		844,044		(6,745,908		)	—
Property, plant and equipment, net	278,121		501,842		865,859		—			1,645,822
Intangible assets, net	17,034		258,970		400,496		—			676,500
Goodwill	21,860		551,837		727,396		—			1,301,093
Investment in unconsolidated subsidiaries	4,341		—		297,697		—			302,038
Other assets	42,078		314,166		193,923		(487,883		)	62,284
Deferred income taxes	—		—		14,043		—			14,043
	$	5,174,876	$	3,351,576	$	4,213,697	$	(7,781,924	)	$	4,958,225
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	$	115	$	—	$	16,028	$	—		$	16,143
Accounts payable	555,894		37,466		169,033		(544,976		)	217,417
Income taxes payable	32		373		11,895		—			12,300
Accrued expenses	105,625		30,542		180,613		(3,157		)	313,623
Total current liabilities	661,666		68,381		377,569		(548,133		)	559,483
Long-term debt, net of current portion	1,030,736		—		1,155,197		(487,883		)	1,698,050
Other noncurrent liabilities	69,711		—		36,576		—			106,287
Deferred income taxes	106,543		—		160,165		—			266,708
Total liabilities	1,868,656		68,381		1,729,507		(1,036,016		)	2,630,528
Total stockholders' equity	3,306,220		3,283,195		2,484,190		(6,745,908		)	2,327,697
	$	5,174,876	$	3,351,576	$	4,213,697	$	(7,781,924	)	$	4,958,225

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 tax 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

Condensed Consolidating Statements of Operations

For the year ended December 30, 2017

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	545,699		$	1,464,920		$	1,893,304		$	(241,672	)	$	3,662,251
Cost and expenses:
Cost of sales and operating expenses	429,681			1,198,271			1,489,571			(241,672		)	2,875,851
Selling, general and administrative expenses	151,896			55,053			140,538			—			347,487
Depreciation and amortization	42,366			106,406			153,328			—			302,100
Total costs and expenses	623,943			1,359,730			1,783,437			(241,672		)	3,525,438
Operating income	(78,244		)	105,190			109,867			—			136,813
Interest expense	(55,336		)	15,818			(49,408		)	—			(88,926		)
Foreign currency gains/(losses)	(234		)	114			(6,778		)	—			(6,898		)
Other income/(expense), net	(13,635		)	37			8,305			—			(5,293		)
Equity in net income of unconsolidated subsidiaries	(1,847		)	—			30,351			—			28,504
Earnings in investments in subsidiaries	438,580			—			—			(438,580		)	—
Income/(loss) from operations before taxes	289,284			121,159			92,337			(438,580		)	64,200
Income taxes (benefit)	160,816			(130,508		)	(99,462		)	—			(69,154		)
Net (income)/loss attributable to noncontrolling interests	—			—			(4,886		)	—			(4,886		)
Net income/(loss) attributable to Darling	$	128,468		$	251,667		$	186,913		$	(438,580	)	$	128,468

Condensed Consolidating Statements of Operations

For the year ended December 31, 2016

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	501,856		$	1,341,925		$	1,746,657		$	(198,510	)	$	3,391,928
Cost and expenses:
Cost of sales and operating expenses	392,876			1,085,582			1,355,599			(198,510		)	2,635,547
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			1,631,944			(198,510		)	3,239,861
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

Condensed Consolidating Statements of Operations

For the year ended January 2 2016

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	475,213		$	1,363,279		$	1,753,609		$	(200,846	)	$	3,391,255
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			138,183			—			316,383
Depreciation and amortization	34,889			98,400			136,615			—			269,904
Acquisition costs	3,177			—			5,122			—			8,299
Total costs and expenses	530,503			1,262,955			1,655,999			(200,846		)	3,248,611
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 subsidiary	—			—			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

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the year ended December 30, 2017

(in thousands)

	Parent			Guarantors		Non-guarantors		Eliminations			Consolidated
Net income	$	133,354		$	251,667	$	186,913	$	(438,580	)	$	133,354
Other comprehensive income/(loss), net of tax:
Foreign currency translation	—			—		121,810		—			121,810
Pension adjustments	4,797			—		1,032		—			5,829
Natural gas swap derivative adjustments	(18		)	—		—		—			(18		)
Corn option derivative adjustments	(1,078		)	—		—		—			(1,078		)
Total other comprehensive income, net of tax	3,701			—		122,842		—			126,543
Total comprehensive income/(loss)	137,055			251,667		309,755		(438,580		)	259,897
Comprehensive income attributable to noncontrolling interests	—			—		947		—			$	947
Comprehensive income/(loss) attributable to Darling	$	137,055		$	251,667	$	308,808	$	(438,580	)	$	258,950

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the year ended December 31, 2016

(in thousands)

	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

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the year ended January 2, 2016

(in thousands)

	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
Natural gas swap derivative adjustments	—		—		—			—			—
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	)

Condensed Consolidating Statements of Cash Flows

For the year ended December 30, 2017

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	133,354		$	251,667		$	186,913		$	(438,580	)	$	133,354
Earnings in investments in subsidiaries	(438,580		)	—			—			438,580			—
Other operating cash flows	489,302			(240,494		)	28,425			—			277,233
Net cash provided/(used) by operating activities	184,076			11,173			215,338			—			410,587
Cash flows from investing activities:
Capital expenditures	(83,520		)	(74,384		)	(116,264		)	—			(274,168		)
Acquisitions, net of cash acquired	—			(12,144		)	—			—			(12,144		)
Investment in subsidiaries and affiliates	(6,309		)	(13,386		)	—			14,945			(4,750		)
Note receivable from affiliates	—			82,000			(82,000		)	—			—
Gross proceeds from sale of property, plant and equipment and other assets	2,577			3,980			1,533			—			8,090
Proceeds from insurance settlements	—			—			6,054			—			6,054
Payments related to routes and other intangibles	(7,135		)	—			—			—			(7,135		)
Net cash provide/(used) in investing activities	(94,387		)	(13,934		)	(190,677		)	14,945			(284,053		)
Cash flows from financing activities:
Proceeds from long-term debt	—			—			33,401			—			33,401
Payments on long-term debt	(79,706		)	—			(69,917		)	—			(149,623		)
Borrowings from revolving credit facility	170,000			—			29,495			—			199,495
Payments on revolving credit facility	(170,000		)	—			(34,935		)	—			(204,935		)
Net overdraft financing	—			—			(714		)	—			(714		)
Deferred loan costs	(6,717		)	—			—			—			(6,717		)
Issuance of common stock	22			—			—			—			22
Contributions from parent	—			—			14,945			(14,945		)	—
Minimum withholding taxes paid on stock awards	(3,034		)	—			(15		)	—			(3,049		)
Deduction of noncontrolling interest	—			—			(5,281		)	—			(5,281		)
Distributions to noncontrolling interests	—			—			(17,451		)	—			(17,451		)
Net cash provided/(used) in financing activities	(89,435		)	—			(50,472		)	(14,945		)	(154,852		)
Effect of exchange rate changes on cash and cash equivalent	—			—			20,528			—			20,528
Net increase/(decrease) in cash and cash equivalents	254			(2,761		)	(5,283		)	—			(7,790		)
Cash and cash equivalents at beginning of year	1,470			5,754			107,340			—			114,564
Cash and cash equivalents at end of year	$	1,724		$	2,993		$	102,057		$	—		$	106,774

Condensed Consolidating Statements of Cash Flows

For the year ended December 31, 2016

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income/(loss)	$	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 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 provided/(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		)
Issuances of common stock	188			—			—			—			188
Repurchase of common 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 equivalents	—			—			(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

Condensed Consolidating Statements of Cash Flows

For the year ended January 2, 2016

(in thousands)

	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/(used) 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		)
Borrowing 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 common 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

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General (Summary of Significant Accounting Policies) (Policies)

12 Months Ended

Dec. 30, 2017

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 of the consolidated subsidiaries is shown as an allocation of the Company's net income and is presented separately as “Net income 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 30, 2017, the 52 weeks ended December 31, 2016, and the 52 weeks ended January 2, 2016.

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 net realizable value.  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 acquisition of its Darling Ingredients International business.  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 28, 2017 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.

During 2017, the President signed into law the Tax Cuts and Jobs Act (the “Tax Act” or “U.S. tax reform”), effective January 1, 2018, that, among other things, lowered the corporate income tax rate from 35% to 21%, moved the country towards a territorial tax system with a one-time mandatory tax on previously deferred earnings of foreign subsidiaries, and introduced new provisions regarding the taxation of global intangible low-taxed income (“GILTI”) of foreign subsidiaries. The Company will be subject to the GILTI provisions effective beginning January 1, 2018. The Financial Accounting Standards Board (“FASB”) allows companies to adopt an accounting policy to either recognize deferred taxes for GILTI or treat such as a tax cost in the year incurred. The Company’s accounting policy election is to account for GILTI as incurred. See Note 12 for further information regarding the income tax accounting impact of the Tax Act.

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 immaterial amounts have been reclassified to conform to the current year presentation. Previously reported amounts have been adjusted to reflect the correction of an immaterial classification error in net sales and cost of sales, as described in Note 21.

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. 

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General (Tables)

12 Months Ended

Dec. 30, 2017

General [Abstract]

Net Income per Common Share [Table Text Block]

	Net Income per Common Share (in thousands, except per share data)
			December 30,					December 31,					January 2,
			2017					2016					2016
	Income		Shares	Per-Share		Income		Shares	Per-Share		Income		Shares	Per-Share
Basic:
Net income attributable to Darling	$	128,468	164,752	$	0.78	$	102,313	164,600	$	0.62	$	78,531	165,031	$	0.48
Diluted:
Effect of dilutive securities
Add: Option shares in the money and dilutive effect of nonvested stock	—		3,865	—		—		1,329	—		—		168	—
Less: Pro-forma treasury shares	—		(1,887)	—		—		(717)	—		—		(80)	—
Diluted:
Net income attributable to Darling	$	128,468	166,730	$	0.77	$	102,313	165,212	$	0.62	$	78,531	165,119	$	0.48

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Inventories (Tables)

12 Months Ended

Dec. 30, 2017

Inventory Disclosure [Abstract]

INVENTORIES

A summary of inventories follows (in thousands):

	December 30, 2017		December 31, 2016
Finished product	$	171,277	$	156,542
Work in process	101,540		87,284
Raw material	33,173		39,859
Supplies and other	52,193		47,130
	$	358,183	$	330,815

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Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 30, 2017

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

A summary of property, plant and equipment follows (in thousands):

	December 30, 2017			December 31, 2016
Land	$	165,847		$	152,949
Buildings and improvements	513,078			464,957
Machinery and equipment	1,617,008			1,385,694
Vehicles	229,995			204,995
Aircraft	13,504			13,504
Construction in process	181,838			135,662
	2,721,270			2,357,761
Accumulated depreciation	(1,075,448		)	(842,186		)
	$	1,645,822		$	1,515,575

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Intangbile assets (Tables)

12 Months Ended

Dec. 30, 2017

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):

	December 30, 2017			December 31, 2016
Indefinite Lived Intangible Assets
Trade names	$	54,682		$	51,687
	54,682			51,687
Finite Lived Intangible Assets:
Routes	397,808			374,989
Permits	512,659			493,311
Non-compete agreements	3,963			3,638
Trade names	76,558			76,033
Royalty, consulting, land use rights and leasehold	14,666			13,456
	1,005,654			961,427
Accumulated Amortization:
Routes	(136,592		)	(105,934		)
Permits	(211,264		)	(170,165		)
Non-compete agreements	(2,387		)	(1,788		)
Trade names	(30,235		)	(21,042		)
Royalty, consulting, land use rights and leasehold	(3,358		)	(2,258		)
	(383,836		)	(301,187		)
Total Intangible assets, less accumulated amortization	$	676,500		$	711,927

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Goodwill (Tables)

12 Months Ended

Dec. 30, 2017

GOODWILL [Abstract]

Schedule of Goodwill

Changes in the carrying amount of goodwill (in thousands):

	Feed Ingredients			Food Ingredients			Fuel Ingredients			Total
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
Goodwill acquired during year	1,880			—			—			1,880
Goodwill disposed of during year	(2,894		)	—			—			(2,894		)
Foreign currency translation	35,560			27,463			13,191			76,214
Balance at December 30, 2017
Goodwill	848,167			344,471			124,369			1,317,007
Accumulated impairment losses	(15,914		)	—			—			(15,914		)
	$	832,253		$	344,471		$	124,369		$	1,301,093

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Investment in Unconsolidated Subsidiary (Tables)

12 Months Ended

Dec. 30, 2017

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:

(in thousands)	December 31, 2017		December 31, 2016
Assets:
Total current assets	$	202,778	$	268,734
Property, plant and equipment, net	435,328		354,871
Other assets	4,655		12,164
Total assets	$	642,761	$	635,769
Liabilities and members' equity:
Total current portion of long term debt	$	17,023	$	17,023
Total other current liabilities	40,705		23,200
Total long term debt	36,730		53,753
Total other long term liabilities	450		418
Total members' equity	547,853		541,375
Total liabilities and member's equity	$	642,761	$	635,769

	Year Ended December 31,
(in thousands)	2017			2016			2015
Revenues:
Operating revenues	$	633,908		$	527,670		$	475,934
Expenses:
Total costs and expenses less depreciation, amortization and accretion expense	547,512			353,222			298,946
Depreciation, amortization and accretion expense	28,955			27,821			19,714
Operating income	57,441			146,627			157,274
Other income	1,343			551			120
Interest and debt expense, net	(2,306		)	(7,354		)	(13,604		)
Net income	$	56,478		$	139,824		$	143,790

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Accrued Expenses (Tables)

12 Months Ended

Dec. 30, 2017

ACCRUED EXPENSES [Abstract]

Schedule of Accounts Payable and Accrued Liabilities

Accrued expenses consist of the following (in thousands):

	December 30, 2017		December 31, 2016
Compensation and benefits	$	102,474	$	83,355
Utilities and sewage	18,077		16,446
Accrued income, ad valorem, and franchise taxes	30,546		19,179
Reserve for self insurance, litigation, environmental and tax matters (Note 19)	13,101		12,479
Medical claims liability	8,502		5,070
Accrued operating expenses	61,230		55,128
Accrued interest payable	16,125		15,961
Liabilities for sale	19,172		—
Other accrued expense	44,396		35,178
	$	313,623	$	242,796

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Leases (Tables)

12 Months Ended

Dec. 30, 2017

Leases [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases

Minimum rental commitments under noncancellable leases as of December 30, 2017, are as follows (in thousands):

Period Ending Fiscal	Operating Leases		Capital Leases
2018	$	45,345	$	927
2019	39,414		311
2020	26,180		157
2021	14,770		—
2022	6,130		—
Thereafter	13,186		—
	$	145,025	$	1,395
Less amounts representing interest			(60		)
Capital lease obligations included in current and long-term debt			$	1,335

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Debt (Tables)

12 Months Ended

Dec. 30, 2017

Debt Disclosure [Abstract]

Schedule of Debt

Debt consists of the following (in thousands): 

	December 30, 2017			December 31, 2016
Amended Credit Agreement:
Revolving Credit Facility ($5.3 million denominated in euro at December 31, 2016)	$	—		$	5,280
Term Loan A ($53.1 million and $76.9 million denominated in CAD at December 30, 2017 and December 31, 2016, respectively)	96,365			120,103
Less unamortized deferred loan costs	(671		)	(1,083		)
Carrying value Term Loan A	95,694			119,020
Term Loan B	505,000			583,500
Less unamortized deferred loan costs	(10,578		)	(6,298		)
Carrying value Term Loan B	494,422			577,202
5.375% Senior Notes due 2022 with effective interest of 5.72%	500,000			500,000
Less unamortized deferred loan costs	(6,638		)	(7,667		)
Carrying value 5.375% Senior Notes due 2022	493,362			492,333
4.75% Senior Notes due 2022 - Denominated in euro with effective interest of 5.10%	617,356			543,840
Less unamortized deferred loan costs - Denominated in euro	(8,675		)	(8,956		)
Carrying value 4.75% Senior Notes due 2022	608,681			534,884
Other Notes and Obligations	22,034			22,224
	1,714,193			1,750,943
Less Current Maturities	16,143			23,247
	$	1,698,050		$	1,727,696

Schedule of Maturities of Long-term Debt

Maturities of long-term debt at December 30, 2017 follow (in thousands):

	Contractual Debt Payment
2018	$	16,143
2019	2,274
2020	1,751
2021	98,947
2022	1,122,636
thereafter	499,004
	$	1,740,755

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Other Noncurrent Liabilities (Tables)

12 Months Ended

Dec. 30, 2017

OTHER NONCURRENT LIABILITIES [Abstract]

Schedule of Other Liabilities, Noncurrent

Other noncurrent liabilities consist of the following (in thousands):

	December 30, 2017		December 31, 2016
Accrued pension liability (Note 15)	$	52,771	$	53,152
Reserve for self insurance, litigation, environmental and tax matters (Note 19)	51,903		41,251
Other	1,613		1,711
	$	106,287	$	96,114

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Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 30, 2017

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):

	December 30, 2017		December 31, 2016		January 2, 2016
United States	$	179	$	48,869	$	50,473
Foreign	64,021		73,670		48,307
Income from operations before income taxes	$	64,200	$	122,539	$	98,780

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):

	December 30, 2017			December 31, 2016			January 2, 2016
Current:
Federal	$	274		$	65		$	(21,775	)
State	(80		)	(332		)	411
Foreign	31,256			27,992			29,871
Total current	31,450			27,725			8,507
Deferred:
Federal	(76,056		)	(8,056		)	13,057
State	622			(649		)	(1,521		)
Foreign	(25,170		)	(3,705		)	(6,542		)
Total deferred	(100,604		)	(12,410		)	4,994
	$	(69,154	)	$	15,315		$	13,501

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands):

	December 30, 2017			December 31, 2016
Balance at beginning of Year	$	4,667		$	5,604
Change in tax positions related to current year	290			—
Change in tax positions related to prior years	(198		)	99
Change in tax positions due to settlement with tax authorities	(1,949		)	—
Expiration of the Statute of Limitations	(426		)	(1,036		)
Balance at end of year	$	2,384		$	4,667

Schedule of Effective Income Tax Rate Reconciliation

Income tax expense for the years ended December 30, 2017, December 31, 2016 and January 2, 2016, 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):

	December 30, 2017			December 31, 2016			January 2, 2016
Computed "expected" tax expense	$	22,470		$	42,888		$	34,573
Change in valuation allowance	1,609			1,039			4,421
Deferred tax on unremitted foreign earnings	641			2,546			4,848
Sub-Part F income	6,284			6,159			4,923
Foreign rate differential	(8,292		)	(9,982		)	(5,653		)
Biofuel tax incentives	—			(28,435		)	(28,143		)
Change in tax law
One-time U.S. transition tax	26,243			—			—
Deferred tax effects	(115,169		)	2,169			—
Other, net	(2,940		)	(1,069		)	(1,468		)
	$	(69,154	)	$	15,315		$	13,501

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 30, 2017 and December 31, 2016 are presented below (in thousands):

	December 30, 2017			December 31, 2016
Deferred tax assets:
Loss contingency reserves	$	8,546		$	11,998
Employee benefits	8,471			9,586
Pension liability	12,224			18,200
Intangible assets amortization, including taxable goodwill	1,475			2,317
Net operating losses	89,660			119,602
Tax credits	7,057			3,473
Inventory	6,295			8,523
Accrued liabilities and other	13,764			13,340
Total gross deferred tax assets	147,492			187,039
Less valuation allowance	(24,530		)	(20,150		)
Net deferred tax assets	122,962			166,889
Deferred tax liabilities:
Intangible assets amortization, including taxable goodwill	(170,294		)	(189,233		)
Property, plant and equipment depreciation	(166,217		)	(207,729		)
Investment in DGD Joint Venture	(29,516		)	(47,607		)
Tax on unremitted foreign earnings	(8,045		)	(49,196		)
Other	(1,555		)	(4,268		)
Total gross deferred tax liabilities	(375,627		)	(498,033		)
Net deferred tax liability	$	(252,665	)	$	(331,144	)
Amounts reported on Consolidated Balance Sheets:
Non-current deferred tax asset	$	14,043		$	14,990
Non-current deferred tax liability	(266,708		)	(346,134		)
Net deferred tax liability	$	(252,665	)	$	(331,144	)

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Stockholders' Equity and Stock-Based Compensation (Tables)

12 Months Ended

Dec. 30, 2017

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 30, 2017 and changes during the year ended is as follows:

	Number of shares		Weighted-avg. exercise price per share		Weighted-avg. remaining contractual life
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
Granted	956,809		12.29
Exercised	(27,968	)	8.51
Forfeited	(4,000	)	13.55
Expired	—		—
Options outstanding at December 30, 2017	3,290,757		$	11.86	7.3 years
Options exercisable at December 30, 2017	1,516,605		$	12.90	5.9 years

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The fair value of each stock option grant under the LTIPs was estimated on the date of grant using the Black Scholes option-pricing model with the following weighted average assumptions and results for fiscal 2017, 2016 and 2015.

Weighted Average	2017	2016	2015
Expected dividend yield	0.0%	0.0%	0.0%
Risk-free interest rate	2.00%	1.35%	1.82%
Expected term	5.82 years	5.76 years	5.75 years
Expected volatility	33.4%	34.4%	38.0%
Fair value of options granted	$4.34	$3.34	$5.59

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 30, 2017, and changes during the year ended is as follows:

	Non-Vested, RSU and PSU Shares		Weighted Average Grant Date Fair Value
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
Shares granted	104,750		12.27
Shares vested	(486,086	)	13.98
Shares forfeited	(239,581	)	20.90
Stock awards outstanding December 30, 2017	360,344		$	13.18

Schedule of Share-based Payment Award, Equity Instruments Other than Options, Valuation Assumptions

The fair value of each 2017 LTIP and 2016 LTIP PSU award under the Company's 2017 LTIP and 2016 LTIP was estimated on the date of grant using a Monte Carlo model with the following weighted average assumptions for fiscal 2017 and fiscal 2016, except for the illiquidity discount, which only pertains to the 2017 LTIP and 2016 LTIP PSU's with a holding period requirement.

Weighted Average	2017	2016
Expected dividend yield	0.0%	0.0%
Risk-free interest rate	1.40%	0.80%
Expected term	2.89 years	2.62 years
Expected volatility	32.7%	29.3%
Illiquidity discount	14.0%	16.1%

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 30, 2017, and changes during the year ended is as follows:

	Restricted stock and Restricted Stock Unit Shares		Weighted Average Grant Date Fair Value
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
Restricted shares granted	60,575		15.63
Restricted shares where the restriction lapsed	(14,915	)	12.42
Restricted shares forfeited	(2,210	)	14.51
Stock awards outstanding December 30, 2017	154,809		$	14.91

Schedule of Other Share-based Compensation, Activity [Table Text Block]

A summary of the Company’s 2017 and 2016 LTIP PSU awards as of December 30, 2017, and changes during the year ended is as follows:

	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
Granted	559,388		11.14
Vested	—		—
Forfeited	(82,492	)	9.99
LTIP PSU awards outstanding December 30, 2017	1,141,016		$	8.91

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Comprehensive Income (Tables)

12 Months Ended

Dec. 30, 2017

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 30, 2017, December 31, 2016 and January 2, 2016 are as follows (in thousands):

	Before-Tax			Tax (Expense)			Net-of-Tax
	Amount			or Benefit			Amount
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 (loss)	4,405			(1,710		)	2,695
Total corn options	2,888			(1,121		)	1,767
Foreign currency translation
Other comprehensive income/(loss)	(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 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	)
Year Ended December 30, 2017
Defined Benefit Pension Plans
Actuarial (loss)/gain recognized	$	4,027		$	(1,264	)	$	2,763
Amortization of actuarial loss	4,786			(1,801		)	2,985
Amortization of prior service costs	35			(11		)	24
Amortization of settlement	42			(15		)	27
Other	30			—			30
Total defined benefit pension plans	8,920			(3,091		)	5,829
Natural gas swap derivatives
Loss/(gain) reclassified to net income	35			(14		)	21
Gain/(loss) recognized in other comprehensive income (loss)	(65		)	26			(39		)
Total natural gas derivatives	(30		)	12			(18		)
Corn option derivatives
Loss/(gain) reclassified to net income	(5,255		)	2,039			(3,216		)
Gain/(Loss) recognized in other comprehensive income	3,494			(1,356		)	2,138
Total corn options	(1,761		)	683			(1,078		)
Foreign currency translation	121,810			—			121,810
Other comprehensive income/(loss)	$	128,939		$	(2,396	)	$	126,543

Reclassification out of Accumulated Other Comprehensive Income

	Fiscal Year Ended
	December 30, 2017			December 31, 2016			January 2, 2016			Statement of Operations Classification
Derivative instruments
Natural gas swap derivatives	$	(35	)	$	—		$	—		Cost of sales and operating expenses
Corn option derivatives	5,255			3,868			1,517			Cost of sales and operating expenses
	5,220			3,868			1,517			Total before tax
	(2,025		)	(1,501		)	(589		)	Income taxes
	3,195			2,367			928			Net of tax
Defined benefit pension plans
Amortization of prior service cost	$	(35	)	$	(36	)	$	67		(a)
Amortization of actuarial loss	(4,786		)	(4,632		)	(5,101		)	(a)
Amortization of curtailment	—			—			1,181			(a)
Amortization of settlement	(42		)	114			(5,291		)	(a)
	(4,863		)	(4,554		)	(9,144		)	Total before tax
	1,827			1,753			3,090			Income taxes
	(3,036		)	(2,801		)	(6,054		)	Net of tax
Total reclassifications	$	159		$	(434	)	$	(5,126	)	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.

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table presents changes in each component of accumulated comprehensive income (loss) as of December 30, 2017 as follows (in thousands):

	Fiscal Year Ended December 30, 2017
	Foreign Currency			Derivative			Defined Benefit
	Translation			Instruments			Pension Plans			Total
Accumulated Other Comprehensive Income/(loss) December 31, 2016, attributable to Darling, net of tax	$	(308,910	)	$	2,468		$	(33,564	)	$	(340,006	)
Other comprehensive gain before reclassifications	121,810			2,099			2,793			126,702
Amounts reclassified from accumulated other comprehensive income/(loss)	—			(3,195		)	3,036			(159		)
Net current-period other comprehensive income	121,810			(1,096		)	5,829			126,543
Noncontrolling interest	(3,939		)	—			—			(3,939		)
Accumulated Other Comprehensive Income/(loss) December 30, 2017, attributable to Darling, net of tax	$	(183,161	)	$	1,372		$	(27,735	)	$	(209,524	)

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Employee Benefit Plans (Tables)

12 Months Ended

Dec. 30, 2017

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, 2017 and December 31, 2016) (in thousands):

	December 30, 2017			December 31, 2016
Change in projected benefit obligation:
Projected benefit obligation at beginning of period	$	189,290		$	182,276
Service cost	3,043			2,549
Interest cost	6,711			6,950
Employee contributions	436			439
Plan amendments	(8		)	101
Actuarial loss/(gain)	8,051			7,905
Benefits paid	(7,063		)	(7,146		)
Effect of curtailment	—			(1,286		)
Effect of settlement	(884		)	(953		)
Other	5,152			(1,545		)
Projected benefit obligation at end of period	204,728			189,290
Change in plan assets:
Fair value of plan assets at beginning of period	134,909			127,970
Actual return on plan assets	19,030			10,138
Employer contributions	4,214			5,250
Employee contributions	436			439
Benefits paid	(7,063		)	(7,146		)
Effect of settlement	(884		)	(953		)
Divestiture	(2,262		)	—
Other	2,137			(789		)
Fair value of plan assets at end of period	150,517			134,909
Funded status	(54,211		)	(54,381		)
Net amount recognized	$	(54,211	)	$	(54,381	)
Amounts recognized in the consolidated balance    sheets consist of:
Current liability	$	(1,440	)	$	(1,229	)
Noncurrent liability	(52,771		)	(53,152		)
Net amount recognized	$	(54,211	)	$	(54,381	)
Amounts recognized in accumulated other    comprehensive loss consist of:
Net actuarial loss	$	43,651		$	52,525
Prior service cost/(credit)	371			417
Net amount recognized  (a)	$	44,022		$	52,942

(a) Amounts do not include deferred taxes of $16.3 million and $19.4 million at December 30, 2017 and December 31, 2016, respectively.

Schedule of Accumulated and Projected Benefit Obligations

	December 30, 2017		December 31, 2016
Projected benefit obligation	$	204,728	$	189,290
Accumulated benefit obligation	192,192		181,340
Fair value of plan assets	150,517		134,909

Schedule of Defined Benefit Plans Disclosures

Net pension cost includes the following components (in thousands):

	December 30, 2017			December 31, 2016			January 2, 2016
Service cost	$	3,043		$	2,549		$	6,638
Interest cost	6,711			6,950			10,536
Expected return on plan assets	(7,181		)	(7,552		)	(12,229		)
Net amortization and deferral	4,821			4,668			5,034
Curtailment	—			(1,285		)	(1,181		)
Settlement	42			(114		)	(2,353		)
Net pension cost	$	7,436		$	5,216		$	6,445

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):

	2017		2016
Actuarial (loss)/gain recognized:
Reclassification adjustments	$	2,985	$	2,846
Actuarial (loss)/gain recognized during the period	2,763		(3,861		)
Amortization of settlement	27		(69		)
Prior service (cost) credit recognized:
Reclassification adjustments	24		24
Other	30		44
	$	5,829	$	(1,016	)

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 2018 is as follows (in thousands):

	2018
Net actuarial loss	$	3,556
Prior service cost	35
	$	3,591

Schedule of Assumptions Used

Weighted average assumptions used to determine benefit obligations were:

	December 30, 2017	December 31, 2016	January 2, 2016
Discount rate	3.40%	3.81%	4.13%
Rate of compensation increase	0.38%	0.38%	0.31%

Weighted average assumptions used to determine net periodic benefit cost for the employee benefit pension plans were:

	December 30, 2017	December 31, 2016	January 2, 2016
Discount rate	3.49%	3.55%	3.47%
Rate of increase in future compensation levels	0.43%	0.84%	0.38%
Expected long-term rate of return on assets	6.17%	6.52%	6.62%

Schedule of Target Allocation of Plan Assets

Fixed Income	35% - 80%
Equities	20% - 65%

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):

	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  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
Balances as December 30, 2017
Fixed Income:
Long Term	$	23,231	$	23,231	$	—	$	—
Short Term	1,869		1,869		—		—
Equity Securities:
Domestic equities	44,173		44,173		—		—
International equities	28,152		28,152		—		—
Insurance contracts	9,876		—		6,501		3,375
Total categorized in fair value hierarchy	107,301		97,425		6,501		3,375
Other investments measured at NAV	43,216
Totals	$	150,517	$	97,425	$	6,501	$	3,375

Schedule of Expected Benefit Payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): 

Year Ending	Pension Benefits
2018	$	9,780
2019	9,790
2020	9,641
2021	11,385
2022	11,098
Years 2023 – 2027	61,843

Multiemployer plans

The following table provides more detail on these significant multiemployer plans (contributions in thousands):

											Expiration
Pension	EIN Pension	Pension Protection Act Zone Status		FIP/RP Status Pending/	Contributions						Date of Collective Bargaining
Fund	Plan Number	2017	2016	Implemented	2017		2016		2015		Agreement
Western Conference of Teamsters Pension Plan	91-6145047 / 001	Green	Green	No	$	1,524	$	1,456	$	1,387	April 2020 (b)
Central States, Southeast and Southwest Areas Pension Plan (a)	36-6044243 / 001	Red	Red	Yes	968		934		858		August 2018 (c)
All other multiemployer plans					980		983		986
		Total Company Contributions			$	3,472	$	3,373	$	3,231

(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.

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:

	Insurance
(in thousands of dollars)	Contracts
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
Unrealized gains/(losses) relating to instruments still held in the reporting period.	203
Purchases, sales, and settlements	—
Exchange rate changes	389
Balance as of December 30, 2017	$	3,375

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Derivatives (Tables)

12 Months Ended

Dec. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

All of these transactions are currently not designated for hedge accounting. (in thousands):

Functional Currency		Contract Currency
Type	Amount	Type	Amount
Brazilian real	28,792	Euro	7,457
Brazilian real	67,834	U.S. Dollar	20,590
Euro	65,457	U.S. Dollar	77,795
Euro	9,017	Polish zloty	38,000
Euro	5,030	Japanese yen	673,000
Euro	28,077	Chinese renminbi	222,612
Euro	11,363	Australian dollar	17,800
Euro	2,890	British pound	2,565
Polish zloty	18,062	Euro	4,259
British pound	196	Euro	220
Japanese yen	280,608	U.S. dollar	2,505

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 30, 2017 and December 31, 2016 (in thousands):

Derivatives Designated	Balance Sheet	Asset Derivatives Fair Value
as Hedges	Location	December 30, 2017		December 31, 2016
Corn options	Other current assets	$	3,418	$	4,235
Total derivatives designated as hedges		$	3,418	$	4,235
Derivatives not Designated as Hedges
Foreign currency contracts	Other current assets	$	332	$	8,939
Corn options and futures	Other current assets	596		151
Total derivatives not designated as hedges		$	928	$	9,090
Total asset derivatives		$	4,346	$	13,325

Derivatives Designated	Balance Sheet	Liability Derivatives Fair Value
as Hedges	Location	December 30, 2017		December 31, 2016
Natural gas swaps	Accrued expenses	$	24	$	—
Total derivatives designated as hedges		$	24	$	—
Derivatives not Designated as Hedges
Foreign currency contracts	Accrued Expenses	$	2,288	$	608
Corn options and futures	Accrued Expenses	14		122
Total derivatives not designated as hedges		$	2,302	$	730
Total liability derivatives		$	2,326	$	730

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 30, 2017 and December 31, 2016 are as follows (in thousands):

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)
	2017			2016		2017			2016		2017			2016
Corn options	$	3,494		$	4,889	$	5,255		$	3,868	$	711		$	331
Natural gas swaps	(65		)	—		(35		)	—		(25		)	—
Total	$	3,429		$	4,889	$	5,220		$	3,868	$	686		$	331

(a) Amount recognized in accumulated OCI (effective portion) is reported as accumulated other comprehensive gain of approximately $3.4 million and approximately $4.9 million recorded net of taxes of approximately $(1.3) million and approximately $(1.9) million for the year ended December 30, 2017 and December 31, 2016, respectively.

(b) Gains and (losses) reclassified from accumulated OCI into income (effective portion) for corn options 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 corn options and natural gas swaps is included in other income/(expense), net in the Company’s consolidated statements of operations.

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 30, 2017, December 31, 2016 and January 2, 2016 (in thousands):

		Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges
		For The Year Ended
Derivatives not designated as hedging instruments	Location	December 30, 2017			December 31, 2016			January 2, 2016
Foreign exchange	Foreign currency loss/(gain)	$	13,460		$	(1,542	)	$	(27,321	)
Foreign exchange	Selling, general and administrative expense	(2,763		)	(8,543		)	7,508
Corn options and futures	Net sales	212			472			(2		)
Corn options and futures	Cost of sales and operating expenses	(1,659		)	(1,411		)	(2,067		)
Natural gas and heating oil swaps and options	Cost of sales and operating expenses	—			—			132
Heating oil swaps and options	Net sales	492			455			—
Soybean meal	Net sales	(405		)	7			—
Soybean oil	Net sales	45			—			—
Total		$	9,382		$	(10,562	)	$	(21,750	)

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Fair Value Measurement (Tables)

12 Months Ended

Dec. 30, 2017

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 30, 2017 and December 31, 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.

			Fair Value Measurements at December 30, 2017 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	$	4,346	$	—	$	4,346	$	—
Total Assets	4,346		—		4,346		—
Liabilities
Derivative liabilities	2,326		—		2,326		—
5.375% Senior Notes	513,100		—		513,100		—
4.75% Senior Notes	646,681		—		646,681		—
Term Loan A	95,883		—		95,883		—
Term Loan B	511,616		—		511,616		—
Total Liabilities	$	1,769,606	$	—	$	1,769,606	$	—

			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	$	—

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Business Segments (Tables)

12 Months Ended

Dec. 30, 2017

Segment Reporting [Abstract]

Business Segment Profit/(Loss)

Business Segments (in thousands):

	Feed Ingredients		Food Ingredients		Fuel Ingredients		Corporate			Total
Fiscal Year Ended December 30, 2017
Net Sales	$	2,239,492	$	1,156,976	$	265,783	$	—		$	3,662,251
Cost of sales and operating expenses	1,744,768		920,575		210,508		—			2,875,851
Gross Margin	494,724		236,401		55,275		—			786,400
Selling, general and administrative expense	180,866		104,982		10,467		51,172			347,487
Depreciation and amortization	184,172		75,010		31,019		11,899			302,100
Segment operating income/(loss)	129,686		56,409		13,789		(63,071		)	136,813
Equity in net income of unconsolidated subsidiaries	265		—		28,239		—			28,504
Segment income	129,951		56,409		42,028		(63,071		)	165,317
Total other expense										(101,117		)
Income before income taxes										$	64,200
Segment assets at December 30, 2017	$	2,614,545	$	1,499,027	$	688,890	$	155,763		$	4,958,225

	Feed Ingredients		Food Ingredients		Fuel Ingredients		Corporate			Total
Fiscal Year Ended December 31, 2016
Net Sales	$	2,089,145	$	1,055,725	$	247,058	$	—		$	3,391,928
Cost of sales and operating expenses	1,624,858		828,223		182,466		—			2,635,547
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	$	1,088,727	$	228,195	$	—		$	3,391,255
Cost of sales and operating expenses	1,613,402		863,562		177,061		—			2,654,025
Gross Margin	460,931		225,165		51,134		—			737,230
Selling, general and administrative expense	178,624		97,110		7,264		33,385			316,383
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

Business Segment Property, Plant and Equipment

Business Segment Property, Plant and Equipment (in thousands):

	December 30, 2017		December 31, 2016		January 2, 2016
Depreciation and amortization:
Feed Ingredients	$	184,172	$	178,845	$	165,854
Food Ingredients	75,010		70,120		66,817
Fuel Ingredients	31,019		28,531		26,711
Corporate Activities	11,899		12,412		10,522
Total	$	302,100	$	289,908	$	269,904
Capital expenditures:
Feed Ingredients	$	191,953	$	167,313	$	153,894
Food Ingredients	50,099		50,020		49,066
Fuel Ingredients	24,707		22,323		19,478
Corporate Activities	7,409		3,867		7,410
Total (a)	$	274,168	$	243,523	$	229,848

(a) Excludes immaterial capital assets acquired by acquisition in fiscal 2017, fiscal 2016 and fiscal 2015.

Geographic Area Net Trade Revenues

Long-lived assets related to the Company's operations in North America, Europe, China, South American and other were as follows (in thousands):

	FY 2017		FY 2016
	Long-Lived Assets		Long-Lived Assets
North America	$	2,468,111	$	2,411,489
Europe	1,292,020		1,158,087
China	151,760		152,150
South America	81,247		74,837
Other	8,642		8,152
Total	$	4,001,780	$	3,804,715

Geographic Area Net Trade Revenues (in thousands):

	December 30, 2017		December 31, 2016		January 2, 2016
North America	$	1,937,027	$	1,817,659	$	1,951,421
Europe	1,372,750		1,225,397		1,066,779
China	209,780		218,480		234,978
South America	60,111		55,089		62,035
Other	82,583		75,303		76,042
Total	$	3,662,251	$	3,391,928	$	3,391,255

XML

Quarterly Financial Data (Tables)

12 Months Ended

Dec. 30, 2017

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

	Year Ended December 30, 2017
	First  Quarter (a)			Second  Quarter (a)			Third  Quarter (a)			Fourth  Quarter (b)
Net sales	$	878,510		$	894,930		$	936,262		$	952,549
Operating income	31,414			37,063			33,310			35,026
Income from operations before income taxes	9,216			18,070			14,980			21,934
Net income	7,398			10,328			8,684			106,944
Net (income)/loss attributable to minority interests	(1,569		)	(1,179		)	(923		)	(1,215		)
Net income/(loss) attributable to Darling	5,829			9,149			7,761			105,729
Basic earnings per share	0.04			0.06			0.05			0.64
Diluted earnings per share	0.04			0.05			0.05			0.63

(a) Previously reported amounts have been adjusted to reflect the correction of an immaterial classification error in net sales and cost of sales. Net sales and cost of sales were each decreased by approximately $1.6 million in the first quarter of fiscal 2017, approximately $1.4 million in the second quarter of fiscal 2017, approximately $1.4 million in the third quarter of fiscal 2017.

(b) Included in net income is a net tax benefit relating to the U.S. tax reform passed by congress in December 2017 of approximately $75.0 million.

	Year Ended December 31, 2016
	First  Quarter (c)			Second  Quarter (c)			Third  Quarter (c)			Fourth  Quarter (c), (d)
Net sales	$	778,375		$	875,777		$	852,018		$	885,758
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

(c) Previously reported amounts have been adjusted to reflect the correction of an immaterial classification error in net sales and cost of sales. Net sales and cost of sales were each decreased by approximately $1.3 million in the first quarter of fiscal 2016, approximately $1.6 million in the second quarter of fiscal 2016, approximately $1.8 million in the third quarter of fiscal 2016 and $1.5 million in the fourth quarter of fiscal 2016.

(d) 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.

XML

Guarantor Financial Information (Tables)

12 Months Ended

Dec. 30, 2017

Guarantor Financial Information [Abstract]

Guarantor Financial Information Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

As of December 30, 2017

(in thousands)

	Parent		Guarantors		Non-guarantors		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	1,724	$	2,993	$	102,057	$	—		$	106,774
Restricted cash	103		—		39		—			142
Accounts receivable	37,453		465,653		436,874		(548,133		)	391,847
Inventories	18,049		84,805		255,329		—			358,183
Income taxes refundable	1,591		—		2,918		—			4,509
Prepaid expenses	10,787		3,141		24,398		—			38,326
Other current assets	7,117		923		48,624		—			56,664
Total current assets	76,824		557,515		870,239		(548,133		)	956,445
Investment in subsidiaries	4,734,618		1,167,246		844,044		(6,745,908		)	—
Property, plant and equipment, net	278,121		501,842		865,859		—			1,645,822
Intangible assets, net	17,034		258,970		400,496		—			676,500
Goodwill	21,860		551,837		727,396		—			1,301,093
Investment in unconsolidated subsidiaries	4,341		—		297,697		—			302,038
Other assets	42,078		314,166		193,923		(487,883		)	62,284
Deferred income taxes	—		—		14,043		—			14,043
	$	5,174,876	$	3,351,576	$	4,213,697	$	(7,781,924	)	$	4,958,225
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	$	115	$	—	$	16,028	$	—		$	16,143
Accounts payable	555,894		37,466		169,033		(544,976		)	217,417
Income taxes payable	32		373		11,895		—			12,300
Accrued expenses	105,625		30,542		180,613		(3,157		)	313,623
Total current liabilities	661,666		68,381		377,569		(548,133		)	559,483
Long-term debt, net of current portion	1,030,736		—		1,155,197		(487,883		)	1,698,050
Other noncurrent liabilities	69,711		—		36,576		—			106,287
Deferred income taxes	106,543		—		160,165		—			266,708
Total liabilities	1,868,656		68,381		1,729,507		(1,036,016		)	2,630,528
Total stockholders' equity	3,306,220		3,283,195		2,484,190		(6,745,908		)	2,327,697
	$	5,174,876	$	3,351,576	$	4,213,697	$	(7,781,924	)	$	4,958,225

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 tax 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 year ended December 30, 2017

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	545,699		$	1,464,920		$	1,893,304		$	(241,672	)	$	3,662,251
Cost and expenses:
Cost of sales and operating expenses	429,681			1,198,271			1,489,571			(241,672		)	2,875,851
Selling, general and administrative expenses	151,896			55,053			140,538			—			347,487
Depreciation and amortization	42,366			106,406			153,328			—			302,100
Total costs and expenses	623,943			1,359,730			1,783,437			(241,672		)	3,525,438
Operating income	(78,244		)	105,190			109,867			—			136,813
Interest expense	(55,336		)	15,818			(49,408		)	—			(88,926		)
Foreign currency gains/(losses)	(234		)	114			(6,778		)	—			(6,898		)
Other income/(expense), net	(13,635		)	37			8,305			—			(5,293		)
Equity in net income of unconsolidated subsidiaries	(1,847		)	—			30,351			—			28,504
Earnings in investments in subsidiaries	438,580			—			—			(438,580		)	—
Income/(loss) from operations before taxes	289,284			121,159			92,337			(438,580		)	64,200
Income taxes (benefit)	160,816			(130,508		)	(99,462		)	—			(69,154		)
Net (income)/loss attributable to noncontrolling interests	—			—			(4,886		)	—			(4,886		)
Net income/(loss) attributable to Darling	$	128,468		$	251,667		$	186,913		$	(438,580	)	$	128,468

Condensed Consolidating Statements of Operations

For the year ended December 31, 2016

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	501,856		$	1,341,925		$	1,746,657		$	(198,510	)	$	3,391,928
Cost and expenses:
Cost of sales and operating expenses	392,876			1,085,582			1,355,599			(198,510		)	2,635,547
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			1,631,944			(198,510		)	3,239,861
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

Condensed Consolidating Statements of Operations

For the year ended January 2 2016

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	475,213		$	1,363,279		$	1,753,609		$	(200,846	)	$	3,391,255
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			138,183			—			316,383
Depreciation and amortization	34,889			98,400			136,615			—			269,904
Acquisition costs	3,177			—			5,122			—			8,299
Total costs and expenses	530,503			1,262,955			1,655,999			(200,846		)	3,248,611
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 subsidiary	—			—			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

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

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the year ended December 30, 2017

(in thousands)

	Parent			Guarantors		Non-guarantors		Eliminations			Consolidated
Net income	$	133,354		$	251,667	$	186,913	$	(438,580	)	$	133,354
Other comprehensive income/(loss), net of tax:
Foreign currency translation	—			—		121,810		—			121,810
Pension adjustments	4,797			—		1,032		—			5,829
Natural gas swap derivative adjustments	(18		)	—		—		—			(18		)
Corn option derivative adjustments	(1,078		)	—		—		—			(1,078		)
Total other comprehensive income, net of tax	3,701			—		122,842		—			126,543
Total comprehensive income/(loss)	137,055			251,667		309,755		(438,580		)	259,897
Comprehensive income attributable to noncontrolling interests	—			—		947		—			$	947
Comprehensive income/(loss) attributable to Darling	$	137,055		$	251,667	$	308,808	$	(438,580	)	$	258,950

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the year ended December 31, 2016

(in thousands)

	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

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the year ended January 2, 2016

(in thousands)

	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
Natural gas swap derivative adjustments	—		—		—			—			—
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	)

Guarantor Financial Information Condensed Consolidating Statements Of Cash Flows

Condensed Consolidating Statements of Cash Flows

For the year ended December 30, 2017

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	133,354		$	251,667		$	186,913		$	(438,580	)	$	133,354
Earnings in investments in subsidiaries	(438,580		)	—			—			438,580			—
Other operating cash flows	489,302			(240,494		)	28,425			—			277,233
Net cash provided/(used) by operating activities	184,076			11,173			215,338			—			410,587
Cash flows from investing activities:
Capital expenditures	(83,520		)	(74,384		)	(116,264		)	—			(274,168		)
Acquisitions, net of cash acquired	—			(12,144		)	—			—			(12,144		)
Investment in subsidiaries and affiliates	(6,309		)	(13,386		)	—			14,945			(4,750		)
Note receivable from affiliates	—			82,000			(82,000		)	—			—
Gross proceeds from sale of property, plant and equipment and other assets	2,577			3,980			1,533			—			8,090
Proceeds from insurance settlements	—			—			6,054			—			6,054
Payments related to routes and other intangibles	(7,135		)	—			—			—			(7,135		)
Net cash provide/(used) in investing activities	(94,387		)	(13,934		)	(190,677		)	14,945			(284,053		)
Cash flows from financing activities:
Proceeds from long-term debt	—			—			33,401			—			33,401
Payments on long-term debt	(79,706		)	—			(69,917		)	—			(149,623		)
Borrowings from revolving credit facility	170,000			—			29,495			—			199,495
Payments on revolving credit facility	(170,000		)	—			(34,935		)	—			(204,935		)
Net overdraft financing	—			—			(714		)	—			(714		)
Deferred loan costs	(6,717		)	—			—			—			(6,717		)
Issuance of common stock	22			—			—			—			22
Contributions from parent	—			—			14,945			(14,945		)	—
Minimum withholding taxes paid on stock awards	(3,034		)	—			(15		)	—			(3,049		)
Deduction of noncontrolling interest	—			—			(5,281		)	—			(5,281		)
Distributions to noncontrolling interests	—			—			(17,451		)	—			(17,451		)
Net cash provided/(used) in financing activities	(89,435		)	—			(50,472		)	(14,945		)	(154,852		)
Effect of exchange rate changes on cash and cash equivalent	—			—			20,528			—			20,528
Net increase/(decrease) in cash and cash equivalents	254			(2,761		)	(5,283		)	—			(7,790		)
Cash and cash equivalents at beginning of year	1,470			5,754			107,340			—			114,564
Cash and cash equivalents at end of year	$	1,724		$	2,993		$	102,057		$	—		$	106,774

Condensed Consolidating Statements of Cash Flows

For the year ended December 31, 2016

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income/(loss)	$	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 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 provided/(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		)
Issuances of common stock	188			—			—			—			188
Repurchase of common 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 equivalents	—			—			(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

Condensed Consolidating Statements of Cash Flows

For the year ended January 2, 2016

(in thousands)

	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/(used) 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		)
Borrowing 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 common 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

XML

General (Details) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 30, 2017 USD ($) segment Facility continent $ / shares	Sep. 30, 2017 $ / shares	Jul. 01, 2017 $ / shares	Apr. 01, 2017 $ / shares	Dec. 31, 2016 USD ($) $ / shares	Oct. 01, 2016 $ / shares	Jul. 02, 2016 $ / shares	Apr. 02, 2016 $ / shares	Dec. 30, 2017 USD ($) weeks segment Facility continent $ / shares shares	Dec. 31, 2016 USD ($) weeks $ / shares shares	Jan. 02, 2016 USD ($) weeks $ / shares shares
General [Line Items]
Income tax expense/(benefit)									$ (69,154)	$ 15,315	$ 13,501
Expected Business Combination, Number of Continents in which Entity Operates | continent	5								5
Number of Operating Segments | segment	3								3
Accounting Policies [Abstract]
Number Of Weeks Year To Date | weeks									52	52	52
Cash and Cash Equivalents [Abstract]
Investments Classified As Cash Equivalents, Original Maturity									3 months
Goodwill [Abstract]
Goodwill	$ 1,301,093				$ 1,225,893				$ 1,301,093	$ 1,225,893	$ 1,233,102
Basic:
Net income									$ 128,468	$ 102,313	$ 78,531
Shares (in shares) | shares									164,752,000	164,600,000	165,031,000
Basic (in dollars per share) | $ / shares	$ 0.64	$ 0.05	$ 0.06	$ 0.04	$ 0.25	$ 0.17	$ 0.19	$ 0.01	$ 0.78	$ 0.62	$ 0.48
Effect of dilutive securities: [Abstract]
Add: Option shares in the money and dilutive effect of nonvested stock (in shares) | shares									3,865,000	1,329,000	168,000
Less: Pro-forma treasury shares (in shares) | shares									(1,887,000)	(717,000)	(80,000)
Diluted:
Net Income									$ 128,468	$ 102,313	$ 78,531
Shares (in shares) | shares									166,730,000	165,212,000	165,119,000
Diluted (in dollars per share) | $ / shares	$ 0.63	$ 0.05	$ 0.05	$ 0.04	$ 0.25	$ 0.17	$ 0.19	$ 0.01	$ 0.77	$ 0.62	$ 0.48
Stock Based Compensation [Abstract]
Stock-based compensation expense									$ 17,600	$ 10,300	$ 9,000
Employee service share-based compensation, tax benefit from compensation expense									3,700	3,400	3,300
Payments related to tax withholding for share-based compensation										(400)	(400)
Foreign currency translation									$ 125,700	$ (3,700)	$ (164,800)
Stock Options [Member]
Antidilutive Securities [Abstract]
Antidilutive securities excluded from computation of earnings per share, amount | shares									340,504	1,148,707	790,092
Non Vested Stock [Member]
Antidilutive Securities [Abstract]
Antidilutive securities excluded from computation of earnings per share, amount | shares									288,616	758,557	587,961
Minimum [Member]
General [Line Items]
Number of Processing and Transfer Facilities | Facility	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
Accounting Standards Update 2016-09 [Member]
General [Line Items]
Income tax expense/(benefit)									$ 100
Diluted:
Shares (in shares) | shares									367,000

XML

Acquisitions (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2018	Dec. 30, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Acquisition Of Noncontrolling Interest		$ 19,100
Assets Held-for-sale, Not Part of Disposal Group		37,800
Liabilities for sale		19,172	$ 0
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down		$ 900
Subsequent Event [Member]
Business Acquisition [Line Items]
Proceeds from Divestiture of Businesses	$ 2,800

XML

Inventories (Details) - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Finished product	$ 171,277	$ 156,542
Work in process	101,540	87,284
Inventory, Raw Materials, Net of Reserves	33,173	39,859
Supplies and other	52,193	47,130
Inventories	$ 358,183	$ 330,815

XML

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 2,721,270	$ 2,357,761
Accumulated depreciation	(1,075,448)	(842,186)
Property, plant and equipment, net	1,645,822	1,515,575
Land [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	165,847	152,949
Buildings and improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	513,078	464,957
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,617,008	1,385,694
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	229,995	204,995
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	$ 181,838	$ 135,662

XML

Intangbile assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016
Intangible Assets [Line Items]
Finite-lived Intangible Assets Acquired	$ 9,000	$ 7,100
Indefinite Lived Intangible Assets	54,682	51,687
Finite Lived Intangible Assets:	1,005,654	961,427
Accumulated Amortization:	(383,836)	(301,187)
Total Intangible assets, less accumulated amortization	676,500	711,927
Trade Names [Member]
Intangible Assets [Line Items]
Indefinite Lived Intangible Assets	54,682	51,687
Routes [Member]
Intangible Assets [Line Items]
Finite Lived Intangible Assets:	397,808	374,989
Accumulated Amortization:	(136,592)	(105,934)
Permits [Member]
Intangible Assets [Line Items]
Finite Lived Intangible Assets:	512,659	493,311
Accumulated Amortization:	(211,264)	(170,165)
Non-compete agreements [Member]
Intangible Assets [Line Items]
Finite Lived Intangible Assets:	3,963	3,638
Accumulated Amortization:	(2,387)	(1,788)
Trade Names [Member]
Intangible Assets [Line Items]
Finite Lived Intangible Assets:	76,558	76,033
Accumulated Amortization:	(30,235)	(21,042)
Royalty, consulting land use and leasehold [Member]
Intangible Assets [Line Items]
Finite Lived Intangible Assets:	14,666	13,456
Accumulated Amortization:	$ (3,358)	$ (2,258)

XML

Intangbile assets Textuals (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
INTANGIBLE ASSETS [Abstract]
Finite-Lived Intangible Assets, Period Increase (Decrease)	$ 6.7	$ 27.7
Amortization of Intangible Assets	78.0	$ 77.7	$ 83.3
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	77.3
Finite-Lived Intangible Assets, Amortization Expense, Year Two	76.1
Finite-Lived Intangible Assets, Amortization Expense, Year Three	75.6
Finite-Lived Intangible Assets, Amortization Expense, Year Four	75.0
Finite-Lived Intangible Assets, Amortization Expense, Year Five	$ 74.0

XML

Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016
Goodwill [Roll Forward]
Goodwill at beginning of year	$ 1,241,807	$ 1,249,016
Accumulated impairment losses	(15,914)	(15,914)
Goodwill at beginning of year	1,225,893	1,233,102
Goodwill acquired during year	1,880	829
Goodwill disposed of during year	(2,894)
Foreign currency translation	76,214	(8,038)
Goodwill at end of year	1,317,007	1,241,807
Accumulated impairment losses at end of year	(15,914)	(15,914)
Goodwill at end of year	1,301,093	1,225,893
Feed Ingredients [Member]
Goodwill [Roll Forward]
Goodwill at beginning of year	813,621	812,797
Accumulated impairment losses	(15,914)	(15,914)
Goodwill at beginning of year	797,707	796,883
Goodwill acquired during year	1,880	827
Goodwill disposed of during year	(2,894)
Foreign currency translation	35,560	(3)
Goodwill at end of year	848,167	813,621
Accumulated impairment losses at end of year	(15,914)	(15,914)
Goodwill at end of year	832,253	797,707
Food Ingredients [Member]
Goodwill [Roll Forward]
Goodwill at beginning of year	317,008	323,385
Accumulated impairment losses	0	0
Goodwill at beginning of year	317,008	323,385
Goodwill acquired during year	0	0
Goodwill disposed of during year	0
Foreign currency translation	27,463	(6,377)
Goodwill at end of year	344,471	317,008
Accumulated impairment losses at end of year	0	0
Goodwill at end of year	344,471	317,008
Fuel [Member]
Goodwill [Roll Forward]
Goodwill disposed of during year	0
Fuel Ingredients [Member]
Goodwill [Roll Forward]
Goodwill at beginning of year	111,178	112,834
Accumulated impairment losses	0	0
Goodwill at beginning of year	111,178	112,834
Goodwill acquired during year	0	2
Foreign currency translation	13,191	(1,658)
Goodwill at end of year	124,369	111,178
Accumulated impairment losses at end of year	0	0
Goodwill at end of year	$ 124,369	$ 111,178

XML

Investment in Unconsolidated Subsidiary Selected Financial Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2017
Assets:
Property, plant and equipment, net		$ 354,871		$ 435,328
Total assets		635,769		642,761
Liabilities and members' equity:
Total current portion of long term debt		17,023		17,023
Total long term debt		53,753		36,730
Total members' equity		541,375		547,853
Expenses:
Operating income	$ 57,441	146,627	$ 157,274
Interest and debt expense, net	(2,306)	(7,354)	(13,604)
Diamond Green Diesel Holdings LLC Joint Venture [Member]
Assets:
Total current assets		268,734		202,778
Other assets		12,164		4,655
Liabilities and members' equity:
Total other current liabilities		23,200		40,705
Total other long term liabilities		418		450
Total liabilities and member's equity		635,769		$ 642,761
Revenues:
Operating revenues	633,908	527,670	475,934
Equity Method Investment, Summarized Financial Information, Total Costs and Expenses Less Depreciation, Amortization and Accretion Expense	547,512	353,222	298,946
Equity Method Investment, Summarized Financial Information, Depreciation, Amortization and Accretion Expense	28,955	27,821	19,714
Expenses:
Other income	1,343	551	120
Net income	$ 56,478	$ 139,824	$ 143,790

XML

Investment in Unconsolidated Subsidiary (Details) $ in Thousands	7 Months Ended	12 Months Ended
	Dec. 31, 2011	Dec. 29, 2018 USD ($)	Dec. 30, 2017 USD ($) barrel / day $ / gal	Dec. 31, 2016 USD ($)	Dec. 31, 2016 USD ($)	Jan. 02, 2016 USD ($)	Dec. 31, 2015 USD ($)	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			$ 302,038	$ 292,717	$ 292,717
Gain from equity method investments			$ 28,504	70,379		$ 73,416
Dollars per Gallon | $ / gal			1.00
Renewable Diesel, Percentage			0.10%
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital			$ 26,761	26,317		26,589
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			273,900
Gain from equity method investments			28,200	69,900		71,900
Income Tax Credits and Adjustments					$ 160,600		$ 156,600
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital			$ 25,000	$ 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%
Scenario, Forecast [Member] | Diamond Green Diesel Holdings LLC Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Income Tax Credits and Adjustments		$ 160,400

XML

Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016
ACCRUED EXPENSES [Abstract]
Compensation and benefits	$ 102,474	$ 83,355
Utilities and sewage	18,077	16,446
Accrued income, ad valorem, and franchise taxes	30,546	19,179
Reserve for self insurance, litigation, environmental and tax matters (Note 19)	13,101	12,479
Medical claims liability	8,502	5,070
Accrued operating expenses	61,230	55,128
Accrued interest payable	16,125	15,961
Liabilities for sale	19,172	0
Other accrued expense	44,396	35,178
Accrued expenses	$ 313,623	$ 242,796

XML

Leases (Details) $ in Thousands	12 Months Ended
	Dec. 30, 2017 USD ($) property	Dec. 31, 2016 USD ($)	Jan. 02, 2016 USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2018	$ 45,345
2019	39,414
2020	26,180
2021	14,770
2022	6,130
Thereafter	13,186
Total	145,025
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2018	927
2019	311
2020	157
2021	0
2022	0
Thereafter	0
Total	1,395
Less amounts representing interest	(60)
Capital lease obligations included in current and long-term debt	1,335
Operating Leases, Rent Expense, Net	$ 48,700	$ 43,600	$ 41,500
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

XML

Debt Schedule of Long Term Debt (Details) - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016	Jun. 03, 2015	Jan. 02, 2014
Debt Instrument [Line Items]
Debt and capital lease obligations	$ 1,714,193	$ 1,750,943
Less Current Maturities	16,143	23,247
Long-term debt, net of current portion	1,698,050	1,727,696
Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Long-term Debt	0	5,280
Term Loan A Facility [Member] | Senior Secured Facilities [Member]
Debt Instrument [Line Items]
Long-term Debt	95,694	119,020
Long-term Debt, Gross	96,365	120,103
Unamortized Debt Issuance Expense	(671)	(1,083)
Term Loan B Facility [Member] | Senior Secured Facilities [Member]
Debt Instrument [Line Items]
Long-term Debt	494,422	577,202
Long-term Debt, Gross	505,000	583,500
Unamortized Debt Issuance Expense	$ (10,578)	$ (6,298)
Senior Notes [Member] | Senior Notes 5.375% Due 2022 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Effective Percentage	5.72%	5.72%
Long-term Debt	$ 493,362	$ 492,333
Long-term Debt, Gross	500,000	500,000
Unamortized Debt Issuance Expense	$ (6,638)	$ (7,667)
Annual interest rate				5.375%
Senior Notes [Member] | Senior Notes 4.75% Due 2022 [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Effective Percentage	5.10%	5.10%
Long-term Debt	$ 608,681	$ 534,884
Long-term Debt, Gross	617,356	543,840
Unamortized Debt Issuance Expense	(8,675)	(8,956)
Annual interest rate			4.75%
Other Notes and Obligations [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 22,034	$ 22,224

XML

Debt Narrative (Details) CAD in Millions	12 Months Ended
	Dec. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)	Jan. 02, 2016 USD ($)	Dec. 30, 2017 CAD	Dec. 30, 2017 EUR (€)	Jun. 03, 2015 EUR (€)	Jan. 02, 2014 USD ($)	Dec. 17, 2010
Debt Instrument [Line Items]
Capital lease obligations, current				CAD 0.8	€ 200,000
Capital lease obligations, noncurrent				0.4	100,000
Write-off deferred loan costs	$ (766,000)	$ (528,000)	$ (10,633,000)
Current portion of long-term debt	16,143,000	23,247,000
Long-term debt, net of current portion	$ 1,698,050,000	1,727,696,000
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	$ 494,422,000	577,202,000
Letter of Credit [Member] | Senior Secured Facilities [Member]
Debt Instrument [Line Items]
Deferred finance costs, gross	6,300,000
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	493,362,000	492,333,000
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	608,681,000	534,884,000
Annual interest rate						4.75%
Secured Debt [Member] | Senior Secured Facilities [Member]
Debt Instrument [Line Items]
Maximum availability	1,875,000,000.000
Term Loan A Facility [Member] | Senior Secured Facilities [Member]
Debt Instrument [Line Items]
Long-term Debt	95,694,000	119,020,000
Other Notes and Obligations [Member]
Debt Instrument [Line Items]
Long-term Debt	22,034,000	22,224,000
Revolving Credit Facility [Member] | Senior Secured Facilities [Member]
Debt Instrument [Line Items]
Maximum availability	1,000,000,000.0
Availability	976,000,000
Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | Canadian Dealer Offered Rate (CDOR) [Member] | Euro Member Countries, Euro
Debt Instrument [Line Items]
Long-term line of credit		5,300,000
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Senior Secured Facilities [Member]
Debt Instrument [Line Items]
Long-term Debt	0	5,280,000
Revolving Credit Facility [Member] | Secured Debt [Member] | Senior Secured Facilities [Member]
Debt Instrument [Line Items]
Availability	948,300,000
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	53,100,000	$ 76,900,000		CAD 66.6
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	3.57%			3.57%	3.57%
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	3.5257%			3.5257%	3.5257%
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	$ 24,000,000
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] | 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	$ 525,000,000.0
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | United States of America, Dollars
Debt Instrument [Line Items]
Long-term line of credit	$ 500,000,000
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	2.00%
Line of credit facility, interest rate at period end	3.57%			3.57%	3.57%
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.00%
Line of credit facility, interest rate at period end	5.50%			5.50%	5.50%
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | Base Rate [Member] | United States of America, Dollars
Debt Instrument [Line Items]
Long-term line of credit	$ 5,000,000
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	2.00%
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	1.00%
Foreign Line of Credit [Member] | Senior Secured Facilities [Member]
Debt Instrument [Line Items]
Long-term line of credit	$ 12,300,000
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%

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Debt Debt Maturiities (Details) $ in Thousands	Dec. 30, 2017 USD ($)
Debt Disclosure [Abstract]
2018	$ 16,143
2019	2,274
2020	1,751
2021	98,947
2022	1,122,636
thereafter	499,004
Long-term Debt	$ 1,740,755

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Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016
OTHER NONCURRENT LIABILITIES [Abstract]
Accrued pension liability (Note 15)	$ 52,771	$ 53,152
Reserve for self insurance, litigation, environmental and tax matters (Note 19)	51,903	41,251
Other	1,613	1,711
Total other noncurrent liabilities	$ 106,287	$ 96,114

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Income Taxes Income Taxes - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Operating Loss Carryforwards [Line Items]
Income tax expense/(benefit)	$ (69,154)	$ 15,315	$ 13,501
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Change In Tax Rate, Deferred Tax Asset, Provisional Income Tax Expense (Benefit)	88,900
Deferred tax asset, provisional income tax Benefit	75,000
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Transition Tax For Accumulated Foreign Earnings, Provisional Liability	26,200
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Transition Tax For Accumulated Foreign Earnings, Release Of Tax Liability	38,300
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Transition Tax For Accumulated Foreign Earnings, Provisional Income Tax Expense (Benefit)	12,100
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount	62,900
Foreign Income Tax Expense (Benefit), Continuing Operations	13,900
Deferred Foreign Income Tax Expense (Benefit)	$ 4,400
Foreign Income Tax Expense (Benefit), Tax Exempt Dividends, Percentage	100.00%
Foreign Income Tax Expense (Benefit), Tax Exempt Dividends	$ 9,600
Operating Loss Carryforward, Amount Relating to May 2002 Recapitalization	2,100
Operating Loss Carryforwards Limitation on Use Per Year	700
Deferred Tax Assets, Tax Credit Carryforwards, Foreign	5,600
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration	89,300
Deferred Tax Assets, Operating Loss Carryforwards, Foreign	192,000
Deferred Tax Assets, Valuation Allowance	2,800
Operating Loss Carryforwards, Valuation Allowance	21,700
Unrecognized Tax Benefits	2,384	4,667	$ 5,604
Indemnity Receivable	3,000
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit	2,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense	1,300
Deferred Tax Liabilities, Undistributed Foreign Earnings	8,045	$ 49,196
Internal Revenue Service (IRS)
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	138,200
Tax Credit Carryforward, Amount	1,400
Foreign Tax Authority
Operating Loss Carryforwards [Line Items]
Tax Credit Carryforward, Amount	102,700
State and Local Jurisdiction
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	$ 203,900

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Income Taxes - Income From Operations Before Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 31, 2016	Oct. 01, 2016	Jul. 02, 2016	Apr. 02, 2016	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Income Tax Disclosure [Abstract]
United States									$ 179	$ 48,869	$ 50,473
Foreign									64,021	73,670	48,307
Income from operations before income taxes	$ 21,934	$ 14,980	$ 18,070	$ 9,216	$ 47,893	$ 28,146	$ 41,974	$ 4,526	$ 64,200	$ 122,539	$ 98,780

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Income Taxes - Expense Benefit (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Current:
Federal	$ 274	$ 65	$ (21,775)
State	(80)	(332)	411
Foreign	31,256	27,992	29,871
Total current	31,450	27,725	8,507
Deferred:
Federal	(76,056)	(8,056)	13,057
State	622	(649)	(1,521)
Foreign	(25,170)	(3,705)	(6,542)
Total deferred	(100,604)	(12,410)	4,994
Income Tax Expense (Benefit)	$ (69,154)	$ 15,315	$ 13,501

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Income Taxes Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Computed expected tax expense	$ 22,470	$ 42,888	$ 34,573
Change in valuation allowance	1,609	1,039	4,421
Deferred tax on unremitted foreign earnings	641	2,546	4,848
Sub-Part F income	6,284	6,159	4,923
Foreign rate differential	(8,292)	(9,982)	(5,653)
Biofuel tax incentives	0	(28,435)	(28,143)
Deferred tax effects	26,243	0	0
Deferred tax effects	(115,169)	2,169	0
Other, net	(2,940)	(1,069)	(1,468)
Income Tax Expense (Benefit)	$ (69,154)	$ 15,315	$ 13,501

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Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016
Deferred tax assets:
Loss contingency reserves	$ 8,546	$ 11,998
Employee benefits	8,471	9,586
Pension liability	12,224	18,200
Intangible assets amortization, including taxable goodwill	1,475	2,317
Net operating losses	89,660	119,602
Tax credits	7,057	3,473
Inventory	6,295	8,523
Accrued liabilities and other	13,764	13,340
Total gross deferred tax assets	147,492	187,039
Less valuation allowance	(24,530)	(20,150)
Net deferred tax assets	122,962	166,889
Deferred tax liabilities:
Intangible assets amortization, including taxable goodwill	(170,294)	(189,233)
Property, plant and equipment depreciation	(166,217)	(207,729)
Investment in DGD Joint Venture	(29,516)	(47,607)
Tax on unremitted foreign earnings	(8,045)	(49,196)
Other	(1,555)	(4,268)
Total gross deferred tax liabilities	(375,627)	(498,033)
Net deferred tax liability	(252,665)	(331,144)
Non-current deferred tax asset	14,043	14,990
Non-current deferred tax liability	(266,708)	(346,134)
Class of Stock [Line Items]
Total gross deferred tax liabilities	$ (375,627)	$ (498,033)

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Income Taxes Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of Year	$ 4,667	$ 5,604
Change in tax positions related to current year	290	0
Change in tax positions related to prior years	(198)
Change in tax positions related to prior years		99
Change in tax positions due to settlement with tax authorities	(1,949)	0
Expiration of the Statute of Limitations	(426)	(1,036)
Balance at end of year	$ 2,384	$ 4,667

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Stockholders' Equity and Stock-Based Compensation Narrative (Details) - USD ($)		12 Months Ended
	Aug. 07, 2017	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016	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	2 years
Stock repurchase program, remaining authorized repurchase amount		$ 100,000,000
Omnibus Incentive Plan 2017 Member [Domain]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized		20,166,500
Number of shares available for grant		16,576,999
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

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Stockholders' Equity and Stock-Based Compensation Stock Option Awards (Details) - USD ($) $ in Millions			12 Months Ended
	Feb. 06, 2017	Feb. 25, 2016	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding, Weighted-average remaining contractual life (in years)			7 years 3 months 18 days	8 years 4 months 24 days	7 years 8 months 12 days	6 years 2 months 12 days
Granted (in shares)			956,809	1,547,184	422,386
Proceeds from stock options exercised			$ 0.1	$ 0.2	$ 0.2
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options			0.1	0.1	0.4
Exercises in period, intrinsic value			0.2	0.2	1.4
Vested in period, fair value			11.3	$ 8.3	$ 7.5
Outstanding, intrinsic value			20.8
Exercisable, intrinsic value			8.1
Total compensation cost not yet recognized			$ 7.8
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			1 year 1 month 6 days
Options exercisable, Weighted-average remaining contractual life (in years)			5 years 10 months 24 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)	956,809	1,094,306	452,878
Award vesting rights, percentage			33.33%
Expiration period			10 years

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Stockholders' Equity and Stock-Based Compensation Stock Option Activity (Details) - $ / shares			12 Months Ended
	Feb. 06, 2017	Feb. 25, 2016	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Summary of stock option activity [Roll Forward]
Options outstanding at the beginning of year (in shares)			2,365,916	850,732	696,176
Options outstanding at the beginning of year, Weighted-average exercise price per share (in usd per share)			$ 11.65	$ 15.38	$ 13.88
Granted (in shares)			956,809	1,547,184	422,386
Granted, Weighted-average exercise price per share (in usd per share)			$ 12.29	$ 9.53	$ 14.76
Exercised (in shares)			(27,968)	(28,000)	(131,653)
Exercised, Weighted-average exercise price per share (in usd per share)			$ 8.51	$ 6.71	$ 4.13
Forfeited (in shares)			(4,000)	(4,000)	(136,177)
Forfeited, Weighted-average exercise price per share (in usd per share)			$ 13.55	$ 16.20	$ 16.68
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)			3,290,757	2,365,916	850,732	696,176
Options outstanding at the end of year, Weighted-average exercise price per share (in usd per share)			$ 11.86	$ 11.65	$ 15.38	$ 13.88
Options outstanding, Weighted-average remaining contractual life (in years)			7 years 3 months 18 days	8 years 4 months 24 days	7 years 8 months 12 days	6 years 2 months 12 days
Options exercisable (in shares)			1,516,605
Options exercisable, Weighted-average exercise price per share (in usd per share)			$ 12.90
Options exercisable, Weighted-average remaining contractual life (in years)			5 years 10 months 24 days
Nonqualified Stock Options Under Long Term Incentive Program [Member]
Summary of stock option activity [Roll Forward]
Granted (in shares)	956,809	1,094,306	452,878

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Stockholders' Equity and Stock-Based Compensation Weighted Average Assumptions (Details) - $ / shares	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Stockholders' Equity and Stock-Based Compensation [Abstract]
Expected dividend yield	0.00%	0.00%	0.00%
Risk-free interest rate	2.00%	1.35%	1.82%
Expected term	5 years 9 months 26 days	5 years 9 months 4 days	5 years 9 months
Expected volatility	33.40%	34.40%	38.00%
Fair value of options granted (in usd per share)	$ 4.34	$ 3.34	$ 5.59

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Stockholders' Equity and Stock-Based Compensation Non-Vested Stock, Restricted Stock Unit and Performance Share Unit Awards (Details) - shares			12 Months Ended
	Feb. 06, 2017	Feb. 25, 2016	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
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)	559,388	664,120	559,388	664,120
Shares vested (in shares)			0	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)			104,750	602,306	524,225
Shares vested (in shares)			(486,086)	(413,654)	(714,626)
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock equivalent (in shares)			1

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Stockholders' Equity and Stock-Based Compensation Fiscal 2017 and Fiscal 2016 LTIP PSU Awards (Details) - shares			12 Months Ended
	Feb. 06, 2017	Feb. 25, 2016	Dec. 30, 2017	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)	559,388	664,120	559,388	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%

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Stockholders' Equity and Stock-Based Compensation Summary of Assumptions (Details)	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	0.00%	0.00%	0.00%
Risk-free interest rate	2.00%	1.35%	1.82%
Expected term	5 years 9 months 26 days	5 years 9 months 4 days	5 years 9 months
Expected volatility	33.40%	34.40%	38.00%
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield	0.00%	0.00%
Risk-free interest rate	1.40%	0.80%
Expected term	2 years 10 months 21 days	2 years 7 months 13 days
Expected volatility	32.70%	29.30%
Illiquidity discount	14.00%	16.10%

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Stockholders' Equity and Stock-Based Compensation Summary of the Company’s LTIP PSU Awards (Details) - $ / shares			12 Months Ended
	Feb. 06, 2017	Feb. 25, 2016	Dec. 30, 2017	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)			664,120	0
Nonvested, Weighted Average Grant Date Fair Value (in usd per share)			$ 7.17	$ 0.00
Shares granted (in shares)	559,388	664,120	559,388	664,120
Shares granted, Weighted Average Grant Date Fair Value (in dollars per share)			$ 11.14	$ 7.17
Shares vested (in shares)			0	0
Shares vested, Weighted Average Grant Date Fair Value (in dollars per share)			$ 0.00	$ 0.00
Forfeited in Period (in shares)			(82,492)	0
Shares forfeited, Weighted Average Grant Date Fair Value (in dollars per share)			$ 9.99	$ 0.00
Nonvested, Weighted Average Grant Date Fair Value (in usd per share)			$ 8.91	$ 7.17
Ending balance nonvested (in shares)			1,141,016	664,120

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Stockholders' Equity and Stock-Based Compensation Summary of the Company’s Non-vested Stock (Details) - $ / shares	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
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)	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
Shares granted (in shares)	104,750	602,306	524,225
Shares granted, Weighted Average Grant Date Fair Value (in dollars per share)	$ 12.27	$ 12.11	$ 14.47
Shares vested (in shares)	(486,086)	(413,654)	(714,626)
Shares vested, Weighted Average Grant Date Fair Value (in dollars per share)	$ 13.98	$ 15.11	$ 17.91
Forfeited in Period (in shares)	(239,581)	(241,582)	(32,581)
Shares forfeited, Weighted Average Grant Date Fair Value (in dollars per share)	$ 20.90	$ 20.86	$ 19.65
Ending balance nonvested (in shares)	360,344	981,261	1,034,191
Nonvested, Weighted Average Grant Date Fair Value (in usd per share)	$ 13.18	$ 15.56	$ 18.63

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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. 30, 2017	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	$ 110	$ 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

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Stockholders' Equity and Stock-Based Compensation Non-employee Director Restricted Stock Awards (Details) - $ / shares	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
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)	154,809	111,359	152,504
Nonvested, Weighted Average Grant Date Fair Value (in usd per share)	$ 14.18	$ 12.69	$ 12.22
Shares granted (in shares)	60,575	43,421	46,910
Shares granted, Weighted Average Grant Date Fair Value (in dollars per share)	$ 15.63	$ 14.51	$ 13.80
Restrictions Lapsed (in shares)	(14,915)	(81,031)	(50,322)
Restrictions Lapsed, Weighted Average Grant Date Fair Value (in dollars per share)	$ 12.42	$ 11.55	$ 12.25
Forfeited in Period (in shares)	(2,210)	(3,535)	0
Shares forfeited, Weighted Average Grant Date Fair Value (in dollars per share)	$ 14.51	$ 14.51	$ 0.00
Beginning balance nonvested (in shares)	111,359	152,504	155,916
Nonvested, Weighted Average Grant Date Fair Value (in usd per share)	$ 14.91	$ 14.18	$ 12.69

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Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Before-Tax Amount
Actuarial (loss)/gain recognized	$ 4,027	$ (5,257)	$ (3,822)
Amortization of actuarial loss	4,786	4,632	5,101
Amortization of curtailment			(1,181)
Amortization of prior service costs	35	36	(67)
Amortization of settlement	42	(114)	5,291
Other	30	44	471
Total defined benefit pension plans	8,920	(659)	5,793
Tax (Expense) or Benefit
Actuarial (loss)/gain recognized	(1,264)	1,396	1,499
Amortization of actuarial loss	(1,801)	(1,786)	(1,986)
Amortization of curtailment			328
Amortization of prior service costs	(11)	(12)	36
Amortization of settlement	(15)	45	(1,468)
Other	0	0	0
Total defined benefit pension plans	(3,091)	(357)	(1,591)
Net-of-Tax Amount
Actuarial (loss)/gain recognized	2,763	(3,861)	(2,323)
Amortization of actuarial loss	2,985	2,846	3,115
Amortization of prior service costs	24	24	(31)
Amortization of curtailment			(853)
Amortization of settlement	27	(69)	3,823
Other	30	44	471
Total defined benefit pension plans	5,829	(1,016)	4,202
Before-Tax Amount
Loss/(gain) reclassified to net income			162,436
Gain/(loss) recognized in other comprehensive income (loss)	3,400	4,900
Tax (Expense) or Benefit
Loss/(gain) reclassified to net income			0
Gain/(loss) recognized in other comprehensive income (loss)	(1,300)	(1,900)
Net-of-Tax Amount
Loss/(gain) reclassified to net income			162,436
Other comprehensive income/(loss)	128,939	(5,231)	(153,755)
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent	(2,396)	(753)	(2,712)
Total other comprehensive income, net of tax	126,543	(5,984)	(156,467)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax	121,810	(5,593)
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax	0	0
Foreign currency translation adjustments	121,810	(5,593)	(162,436)
Natural Gas Swap [Member]
Before-Tax Amount
Loss/(gain) reclassified to net income	35
Gain/(loss) recognized in other comprehensive income (loss)	(65)
Total natural gas derivatives	(30)
Tax (Expense) or Benefit
Loss/(gain) reclassified to net income	(14)
Gain/(loss) recognized in other comprehensive income (loss)	26
Total natural gas derivatives	12
Net-of-Tax Amount
Loss/(gain) reclassified to net income	21
Gain/(loss) recognized in other comprehensive income (loss)	(39)
Total natural gas derivatives	(18)		0
Corn Option [Member]
Before-Tax Amount
Loss/(gain) reclassified to net income	(5,255)	(3,868)	(1,517)
Gain/(loss) recognized in other comprehensive income (loss)	3,494	4,889	4,405
Total natural gas derivatives	(1,761)	1,021	2,888
Tax (Expense) or Benefit
Loss/(gain) reclassified to net income	2,039	1,501	589
Gain/(loss) recognized in other comprehensive income (loss)	(1,356)	(1,897)	(1,710)
Total natural gas derivatives	683	(396)	(1,121)
Net-of-Tax Amount
Loss/(gain) reclassified to net income	(3,216)	(2,367)	(928)
Gain/(loss) recognized in other comprehensive income (loss)	2,138	2,992	2,695
Total natural gas derivatives	$ (1,078)	$ 625	$ 1,767

XML

Comprehensive Income Reclassifications (Details) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
		Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 31, 2016	Oct. 01, 2016	Jul. 02, 2016	Apr. 02, 2016	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cost of sales and operating expenses										$ 2,875,851	$ 2,635,547	$ 2,654,025
Amortization of prior service cost										(35)	(36)	67
Amortization of actuarial loss										4,786	4,632	5,101
Amortization of curtailment												(1,181)
Amortization of settlement										42	(114)	5,291
Income taxes										69,154	(15,315)	(13,501)
Net income		$ 105,729	$ 7,761	$ 9,149	$ 5,829	$ 40,541	$ 28,694	$ 31,999	$ 1,079	128,468	102,313	78,531
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income										159	(434)	(5,126)
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										5,220	3,868	1,517
Income taxes										(2,025)	(1,501)	(589)
Net income										3,195	2,367	928
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										(35)	0	0
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										5,255	3,868	1,517
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]									(35)	(36)	67
Amortization of actuarial loss	[1]									(4,786)	(4,632)	(5,101)
Amortization of curtailment	[1]									0	0	1,181
Amortization of settlement	[1]									(42)	114	(5,291)
Income from operations before income taxes										(4,863)	(4,554)	(9,144)
Income taxes										1,827	1,753	3,090
Net income										$ (3,036)	$ (2,801)	$ (6,054)

[1] These items are included in the computation of net periodic pension cost. See Note 15 Employee Benefit Plans for additional information.

XML

Comprehensive Income AOCI (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated Other Comprehensive Income/(loss) January 2, 2016, attributable to Darling, net of tax	$ (340,006)
Other comprehensive gain before reclassifications	126,702
Amounts reclassified from accumulated other comprehensive income/(loss)	(159)
Net current-period other comprehensive income	126,543	$ (5,984)	$ (156,467)
Noncontrolling interest	(3,939)
Accumulated Other Comprehensive Income/(loss) December 31, 2016, attributable to Darling, net of tax	(209,524)	(340,006)
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	(308,910)
Other comprehensive gain before reclassifications	121,810
Amounts reclassified from accumulated other comprehensive income/(loss)	0
Net current-period other comprehensive income	121,810
Noncontrolling interest	(3,939)
Accumulated Other Comprehensive Income/(loss) December 31, 2016, attributable to Darling, net of tax	(183,161)	(308,910)
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	2,468
Other comprehensive gain before reclassifications	2,099
Amounts reclassified from accumulated other comprehensive income/(loss)	(3,195)
Net current-period other comprehensive income	(1,096)
Noncontrolling interest	0
Accumulated Other Comprehensive Income/(loss) December 31, 2016, attributable to Darling, net of tax	1,372	2,468
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	(33,564)
Other comprehensive gain before reclassifications	2,793
Amounts reclassified from accumulated other comprehensive income/(loss)	3,036
Net current-period other comprehensive income	5,829
Noncontrolling interest	0
Accumulated Other Comprehensive Income/(loss) December 31, 2016, attributable to Darling, net of tax	$ (27,735)	$ (33,564)

XML

Employee Benefit Plans (Details) $ in Thousands		12 Months Ended
		Dec. 30, 2017 USD ($) plan	Dec. 31, 2016 USD ($)	Jan. 02, 2016 USD ($)
Fair Value Measurement [Domain]
Change in plan assets:
Fair value of plan assets at beginning of period		$ 134,909
Fair value of plan assets at end of period		150,517	$ 134,909
Fair Value Measurement [Domain] | Fair Value, Inputs, Level 1 [Member]
Change in plan assets:
Fair value of plan assets at beginning of period		85,936
Fair value of plan assets at end of period		97,425	85,936
Fair Value Measurement [Domain] | Fair Value, Inputs, Level 2 [Member]
Change in plan assets:
Fair value of plan assets at beginning of period		7,887
Fair value of plan assets at end of period		6,501	7,887
Fair Value Measurement [Domain] | Fair Value, Inputs, Level 3 [Member]
Change in plan assets:
Fair value of plan assets at beginning of period		2,783
Fair value of plan assets at end of period		3,375	2,783
Projected benefit obligation at beginning of period		189,290	182,276
Service cost		3,043	2,549	$ 6,638
Interest cost		6,711	6,950	10,536
Employee contributions		436	439
Employee contributions		436	439
Plan amendments		(8)	101
Actuarial loss/(gain)		8,051	7,905
Benefits paid		(7,063)	(7,146)
Effect of curtailment		0	(1,286)
Effect of settlement		(884)	(953)
Other		5,152	(1,545)
Projected benefit obligation at end of period		204,728	189,290	182,276
Fair value of plan assets at beginning of period		134,909	127,970
Actual return on plan assets		19,030	10,138
Employer contributions		4,214	5,250
Benefits paid		7,063	7,146
Effect of settlement		(884)	(953)
Defined Benefit Plan, Plan Assets, Divestiture		(2,262)	0
Other		2,137	(789)
Fair value of plan assets at end of period		150,517	134,909	127,970
Funded status		(54,211)	(54,381)
Amounts recognized in the consolidated balance sheets consist of:
Current liability		(1,440)	(1,229)
Noncurrent liability		(52,771)	(53,152)
Net amount recognized		(54,211)	(54,381)
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss		43,651	52,525
Prior service cost/(credit)		371	417
Net amount recognized	[1]	44,022	52,942
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax		16,300	19,400
Accumulated benefit obligation		192,192	181,340
Net pension cost includes the following components:
Service cost		3,043	2,549	6,638
Interest cost		6,711	6,950	10,536
Expected return on plan assets		(7,181)	(7,552)	(12,229)
Net amortization and deferral		4,821	4,668	5,034
Curtailment		0	(1,285)	(1,181)
Settlement		42	(114)	(2,353)
Net pension cost		7,436	5,216	6,445
Amounts recognized in accumulated other comprehensive income (loss):
Amortization of actuarial loss		2,985	2,846	3,115
Actuarial (loss)/gain recognized		2,763	(3,861)	(2,323)
Amortization of settlement		27	(69)	3,823
Amortization of prior service costs		24	24	(31)
Amortization of curtailment				(853)
Other		30	44	471
Pension adjustments		5,829	$ (1,016)	$ 4,202
Estimated amount that will be amortized from accumulated other comprehensive loss into net periodic pension cost in fiscal 2012:
Net actuarial loss		3,556
Prior service cost		35
Total		$ 3,591
Weighted average assumptions used to determine benefit obligations:
Discount rate		3.40%	3.81%	4.13%
Rate of compensation increase		0.38%	0.38%	0.31%
Weighted average assumptions used to determine net periodic benefit cost for the employee benefit pension plans:
Discount rate		3.49%	3.55%	3.47%
Rate of increase in future compensation levels		0.43%	0.84%	0.38%
Expected long-term rate of return on assets		6.17%	6.52%	6.62%
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]
2018		$ 9,780
2019		9,790
2020		9,641
2021		11,385
2022		11,098
Years 2023 – 2027		61,843
Multiemployer Plans [Abstract]
Contributions		$ 3,472	$ 3,373	$ 3,231
Number Of Multiemployer Plans, Withdrawal Obligation | plan		2
Multiemployer Plans, Withdrawal Obligation		$ 1,700
Fair Value, Inputs, Level 3 [Member]
Change in plan assets:
Fair value of plan assets at beginning of period		2,783	2,320
Fair value of plan assets at end of period		3,375	2,783	2,320
Western Conference Of Teamsters Pension Plan [Member]
Multiemployer Plans [Abstract]
Contributions	[2]	1,524	1,456	1,387
Central States, Southeast and Southwest Areas Pension Plan [Member]
Multiemployer Plans [Abstract]
Contributions	[3],[4]	968	934	858
Other Multiemployer Plans [Member]
Multiemployer Plans [Abstract]
Contributions		$ 980	983	$ 986
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		$ 96,606
Fair value of plan assets at end of period		107,301	96,606
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		85,936
Fair value of plan assets at end of period		97,425	85,936
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		7,887
Fair value of plan assets at end of period		6,501	7,887
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		2,783
Fair value of plan assets at end of period		3,375	2,783
Estimate of Fair Value Measurement [Member] | Fixed Income, Long Term [Member]
Change in plan assets:
Fair value of plan assets at beginning of period		17,408
Fair value of plan assets at end of period		23,231	17,408
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		17,408
Fair value of plan assets at end of period		23,231	17,408
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		2,825
Fair value of plan assets at end of period		1,869	2,825
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		2,825
Fair value of plan assets at end of period		1,869	2,825
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		41,300
Fair value of plan assets at end of period		44,173	41,300
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		41,300
Fair value of plan assets at end of period		44,173	41,300
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		24,403
Fair value of plan assets at end of period		28,152	24,403
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		24,403
Fair value of plan assets at end of period		28,152	24,403
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		10,670
Fair value of plan assets at end of period		9,876	10,670
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		7,887
Fair value of plan assets at end of period		6,501	7,887
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		2,783
Fair value of plan assets at end of period		3,375	2,783
Portion at Other than Fair Value Measurement [Member]
Change in plan assets:
Fair value of plan assets at beginning of period		38,303
Fair value of plan assets at end of period		$ 43,216	$ 38,303

[1] Amounts do not include deferred taxes of $16.3 million and $19.4 million at December 30, 2017 and December 31, 2016, respectively.

[2] 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.

[3] In July 2005 this plan received a 10 year extension from the IRS for amortizing unfunded liabilities.

[4] 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.

XML

Employee Benefit Plans Employee Benefit Plans Narrative 1 (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Jul. 31, 2005	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Employee Benefit Plans [Line Items]
Investment Horizon of Greater Than		10 years
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax		$ 16.3	$ 19.4
Domestic Pension Plan Benefits Percentage Of The Projected Benefit Obligation		74.00%	75.00%
Domestic Defined Benefit Plan Cash Contributions By Employer		$ 1.0	$ 0.6
Foreign Defined Benefit Plan Cash Contributions By Employer		$ 3.3	4.7
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
UNITED STATES
Employee Benefit Plans [Line Items]
Defined Contribution Plan, Employer Contribution Amount		$ 9.6	9.2	$ 9.3
UNITED STATES | Maximum [Member] | Equity Securities [Member]
Employee Benefit Plans [Line Items]
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum (Deprecated 2017-01-31)		.65
UNITED STATES | Maximum [Member] | Fixed Income Securities [Member]
Employee Benefit Plans [Line Items]
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum (Deprecated 2017-01-31)		.80
UNITED STATES | Minimum [Member] | Equity Securities [Member]
Employee Benefit Plans [Line Items]
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum (Deprecated 2017-01-31)		.20
UNITED STATES | Minimum [Member] | Fixed Income Securities [Member]
Employee Benefit Plans [Line Items]
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum (Deprecated 2017-01-31)		.35
Foreign Plan [Member]
Employee Benefit Plans [Line Items]
Defined Contribution Plan, Employer Contribution Amount		$ 7.5	$ 6.2	$ 3.0

XML

Employee Benefit Plans Employee Benefit Plans Narrative 2 (Details) $ in Millions	12 Months Ended
	Dec. 30, 2017 USD ($) plan	Dec. 31, 2016	Jan. 02, 2016
Employee Benefit Plans [Line Items]
Defined Benefit Plan, Number of Plans | plan	2
Expected long-term rate of return on assets	6.17%	6.52%	6.62%
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | $	$ 5.0
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%
Emerging Market [Member] | Equity Securities, International [Member]
Employee Benefit Plans [Line Items]
Concentration Risk, Percentage	10.00%
UNITED STATE AND CANADA [Member]
Employee Benefit Plans [Line Items]
Expected long-term rate of return on assets	6.40%
Foreign Plan [Member]
Employee Benefit Plans [Line Items]
Expected long-term rate of return on assets	3.30%

XML

Employee Benefit Plans Employee Benefit Plans Narrative 3 (Details) $ in Thousands	12 Months Ended
	Dec. 30, 2017 USD ($) plan	Dec. 31, 2016 USD ($)	Jan. 02, 2016 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 | $	$ 3,472	$ 3,373	$ 3,231
Multiemployer Plans, Withdrawal Obligation | $	$ 1,700

XML

Employee Benefit Plans Employee Benefit Plans Level 3 (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Dec. 31, 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	$ 134,909	$ 127,970
Fair value of plan assets at end of period	150,517	134,909
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	2,783	2,320
Unrealized gains/(losses) relating to instruments still held in the reporting period.	203	316
Purchases, sales, and settlements	0	244
Exchange rate changes	389	(97)
Fair value of plan assets at end of period	$ 3,375	$ 2,783

XML

Derivatives (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 30, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jul. 01, 2017 USD ($)	Apr. 01, 2017 USD ($)	Dec. 31, 2016 USD ($)	Oct. 01, 2016 USD ($)	Jul. 02, 2016 USD ($)	Apr. 02, 2016 USD ($)	Dec. 30, 2017 USD ($) month	Dec. 31, 2016 USD ($)	Jan. 02, 2016 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									$ 2,200
Net income	$ 106,944	$ 8,684	$ 10,328	$ 7,398	$ 41,680	$ 28,890	$ 33,991	$ 2,663	133,354	$ 107,224	$ 85,279
Asset Derivatives Fair Value	4,346				13,325				4,346	13,325
Foreign currency losses									(6,898)	(1,854)	(4,911)
Liability Derivatives Fair Value	2,326				730				2,326	730
Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net									3,429	4,889
Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net									5,220	3,868
Gain Recognized in Income on Derivatives, Ineffective Portion and Amount Excluded from Effectiveness Testing									686	331
Gain/(loss) recognized in other comprehensive income (loss)									3,400	4,900
Gain/(loss) recognized in other comprehensive income (loss)									(1,300)	(1,900)
Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Asset Derivatives Fair Value	3,418				4,235				3,418	4,235
Liability Derivatives Fair Value	24				0				24	0
Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Asset Derivatives Fair Value	928				9,090				928	9,090
Liability Derivatives Fair Value	2,302				730				2,302	730
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Accrued Expenses [Member]
Derivatives, Fair Value [Line Items]
Liability Derivatives Fair Value	2,288				608				2,288	608
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Asset Derivatives Fair Value	332				8,939				332	8,939
Corn Option [Member]
Derivatives, Fair Value [Line Items]
Gain/(loss) recognized in other comprehensive income (loss)									3,494	4,889	4,405
Gain/(loss) recognized in other comprehensive income (loss)									(1,356)	(1,897)	$ (1,710)
Corn Option [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Asset Derivatives Fair Value	3,418				4,235				3,418	4,235
Commodity Contract [Member]
Derivatives, Fair Value [Line Items]
Forward Purchase Amount	19,100								19,100
Corn options and futures [Member] | Not Designated as Hedging Instrument [Member] | Accrued Expenses [Member]
Derivatives, Fair Value [Line Items]
Liability Derivatives Fair Value	14				122				14	122
Corn options and futures [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Asset Derivatives Fair Value	596				151				596	151
Natural Gas Swap [Member]
Derivatives, Fair Value [Line Items]
Gain/(loss) recognized in other comprehensive income (loss)									(65)
Gain/(loss) recognized in other comprehensive income (loss)									26
Natural Gas Swap [Member] | Designated as Hedging Instrument [Member] | Accrued Expenses [Member]
Derivatives, Fair Value [Line Items]
Liability Derivatives Fair Value	$ 24				$ 0				24	0
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									3,494	4,889
Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net									5,255	3,868
Gain Recognized in Income on Derivatives, Ineffective Portion and Amount Excluded from Effectiveness Testing									711	331
Cash Flow Hedging [Member] | Natural Gas Swap [Member]
Derivatives, Fair Value [Line Items]
Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net									(65)	0
Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net									(35)	0
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net									$ (25)	$ 0

XML

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. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)	Jan. 02, 2016 USD ($)	Dec. 30, 2017 EUR (€)	Dec. 30, 2017 GBP (£)	Dec. 30, 2017 CNY (¥)	Dec. 30, 2017 AUD	Dec. 30, 2017 PLN	Dec. 30, 2017 BRL	Dec. 30, 2017 JPY (¥)
Derivative [Line Items]
Asset Derivatives Fair Value	$ 4,346	$ 13,325
Designated as Hedging Instrument [Member]
Derivative [Line Items]
Asset Derivatives Fair Value	3,418	4,235
Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Asset Derivatives Fair Value	928	9,090
Derivative, Gain (Loss) on Derivative, Net	9,382	(10,562)	$ (21,750)
Foreign Exchange Contract [Member] | Foreign Currency Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Gain (Loss) on Derivative, Net	13,460	(1,542)	(27,321)
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	(2,763)	(8,543)	7,508
BRI/EUR 1 [Member] | Short [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount | BRL									BRL 28,792
BRI/EUR 1 [Member] | Long [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount | €				€ 7,457
Soybean Meal [Member] | Sales [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Gain (Loss) on Derivative, Net	(405)	7	0
BRI/EUR 2 [Member] | Short [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount | BRL									BRL 67,834
BRI/EUR 2 [Member] | Long [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount	20,590
EUR/USD [Member] | Short [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount | €				65,457
EUR/USD [Member] | Long [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount	77,795
EUR/PLN [Member] | Short [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount | €				9,017
EUR/PLN [Member] | Long [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount | PLN								PLN 38,000
EUR/JPN [Member] | Short [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount | €				5,030
EUR/JPN [Member] | Long [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount | ¥										¥ 673,000
EUR/CNY [Member] | Short [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount | €				28,077
EUR/CNY [Member] | Long [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount | ¥						¥ 222,612
EUR/AUD [Member] | Short [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount | €				11,363
EUR/AUD [Member] | Long [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount | AUD							AUD 17,800
EUR/GBP [Member] | Short [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount | €				2,890
EUR/GBP [Member] | Long [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount | £					£ 2,565
PLN/EUR [Member] | Short [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount | PLN								PLN 18,062
PLN/EUR [Member] | Long [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount | €				4,259
GBPEUR [Member] | Short [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount | £					£ 196
GBPEUR [Member] | Long [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount | €				€ 220
JPN/USD [Member] | Short [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount | ¥										¥ 280,608
JPN/USD [Member] | Long [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Notional Amount	2,505
Corn options and futures [Member] | Sales [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Gain (Loss) on Derivative, Net	212	472	(2)
Corn options and futures [Member] | Cost of Sales [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Gain (Loss) on Derivative, Net	(1,659)	(1,411)	(2,067)
Heating Oil Swaps And Options [Member] | Sales [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Gain (Loss) on Derivative, Net	492	455	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	0	132
Soybean Oil Options [Member] | Sales [Member] | Not Designated as Hedging Instrument [Member]
Derivative [Line Items]
Derivative, Gain (Loss) on Derivative, Net	$ 45	$ 0	$ 0

XML

Fair Value Measurement (Details) - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	$ 4,346	$ 13,325
Total Assets	4,346	13,325
Derivative liabilities	2,326	730
Total Liabilities	1,769,606	1,815,092
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	4,346	13,325
Total Assets	4,346	13,325
Derivative liabilities	2,326	730
Total Liabilities	1,769,606	1,815,092
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] | Term Loan A Facility [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term Debt, Fair Value	95,883	120,403
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	95,883	120,403
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	511,616	593,347
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	511,616	593,347
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
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
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
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
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	513,100	520,300
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	513,100	520,300
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	646,681	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	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	646,681	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	$ 0

XML

Concentration of Credit Risk (Details) - Customer Concentration Risk [Member] - customer	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
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%

XML

Contingencies (Details) $ in Millions	1 Months Ended
	Mar. 31, 2016 Party mi	Dec. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)
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		61.4	$ 51.9
Insurance Settlements Receivable, Noncurrent		$ 25.0	$ 15.9

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Business Segments (Narrative) (Details) $ in Thousands		3 Months Ended								12 Months Ended
		Dec. 30, 2017 USD ($) segment	Sep. 30, 2017 USD ($)	Jul. 01, 2017 USD ($)	Apr. 01, 2017 USD ($)	Dec. 31, 2016 USD ($)	Oct. 01, 2016 USD ($)	Jul. 02, 2016 USD ($)	Apr. 02, 2016 USD ($)	Dec. 29, 2018 USD ($)	Dec. 30, 2017 USD ($) segment	Dec. 31, 2016 USD ($)	Jan. 02, 2016 USD ($)
Segment Reporting Information [Line Items]
Number of Business Segments | segment		3									3
Net Sales		$ 952,549	$ 936,262	$ 894,930	$ 878,510	$ 885,758	$ 852,018	$ 875,777	$ 778,375		$ 3,662,251	$ 3,391,928	$ 3,391,255
Capital expenditures:	[1]										274,168	243,523	229,848
Fuel Ingredients [Member]
Segment Reporting Information [Line Items]
Net Sales											265,783	247,058	228,195
Capital expenditures:											$ 24,707	$ 22,323	$ 19,478
Scenario, Forecast [Member] | Fuel Ingredients [Member]
Segment Reporting Information [Line Items]
Income Tax Credits and Adjustments										$ 12,600

[1] Excludes immaterial capital assets acquired by acquisition in fiscal 2017, fiscal 2016 and fiscal 2015.

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Business Segments (Details) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
		Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 31, 2016	Oct. 01, 2016	Jul. 02, 2016	Apr. 02, 2016	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Segment Reporting Information [Line Items]
Net Sales		$ 952,549	$ 936,262	$ 894,930	$ 878,510	$ 885,758	$ 852,018	$ 875,777	$ 778,375	$ 3,662,251	$ 3,391,928	$ 3,391,255
Cost of sales and operating expenses										2,875,851	2,635,547	2,654,025
Selling, general and administrative expense										347,487	314,005	316,383
Depreciation and amortization										302,100	289,908	269,904
Segment operating income/(loss)		35,026	33,310	37,063	31,414	35,380	35,528	54,467	26,692	136,813	152,067	142,644
Equity in net income of unconsolidated subsidiaries										28,504	70,379	73,416
Total other expense										(101,117)	(99,907)	(117,280)
Income before income taxes		21,934	$ 14,980	$ 18,070	$ 9,216	47,893	$ 28,146	$ 41,974	$ 4,526	64,200	122,539	98,780
Segment assets		4,958,225				4,698,017				4,958,225	4,698,017
Capital expenditures:	[1]									274,168	243,523	229,848
Long-Lived Assets		4,001,780				3,804,715				4,001,780	3,804,715
North America
Segment Reporting Information [Line Items]
Net Sales										1,937,027	1,817,659	1,951,421
Long-Lived Assets		2,468,111				2,411,489				2,468,111	2,411,489
Europe
Segment Reporting Information [Line Items]
Net Sales										1,372,750	1,225,397	1,066,779
Long-Lived Assets		1,292,020				1,158,087				1,292,020	1,158,087
China
Segment Reporting Information [Line Items]
Net Sales										209,780	218,480	234,978
Long-Lived Assets		151,760				152,150				151,760	152,150
South America
Segment Reporting Information [Line Items]
Net Sales										60,111	55,089	62,035
Long-Lived Assets		81,247				74,837				81,247	74,837
Other
Segment Reporting Information [Line Items]
Net Sales										82,583	75,303	76,042
Long-Lived Assets		8,642				8,152				8,642	8,152
Feed Ingredients [Member]
Segment Reporting Information [Line Items]
Net Sales										2,239,492	2,089,145	2,074,333
Cost of sales and operating expenses										1,744,768	1,624,858	1,613,402
Gross Margin										494,724	464,287	460,931
Selling, general and administrative expense										180,866	169,648	178,624
Acquisition costs											0	0
Depreciation and amortization										184,172	178,845	165,854
Segment operating income/(loss)										129,686	115,794	116,453
Equity in net income of unconsolidated subsidiaries										265	467	1,521
Segment income										129,951	116,261	117,974
Segment assets		2,614,545				2,464,509				2,614,545	2,464,509
Capital expenditures:										191,953	167,313	153,894
Food Ingredients [Member]
Segment Reporting Information [Line Items]
Net Sales										1,156,976	1,055,725	1,088,727
Cost of sales and operating expenses										920,575	828,223	863,562
Gross Margin										236,401	227,502	225,165
Selling, general and administrative expense										104,982	96,170	97,110
Acquisition costs											0	0
Depreciation and amortization										75,010	70,120	66,817
Segment operating income/(loss)										56,409	61,212	61,238
Equity in net income of unconsolidated subsidiaries										0	0	0
Segment income										56,409	61,212	61,238
Segment assets		1,499,027				1,414,409				1,499,027	1,414,409
Capital expenditures:										50,099	50,020	49,066
Fuel Ingredients [Member]
Segment Reporting Information [Line Items]
Net Sales										265,783	247,058	228,195
Cost of sales and operating expenses										210,508	182,466	177,061
Gross Margin										55,275	64,592	51,134
Selling, general and administrative expense										10,467	6,895	7,264
Acquisition costs											0	0
Depreciation and amortization										31,019	28,531	26,711
Segment operating income/(loss)										13,789	29,166	17,159
Equity in net income of unconsolidated subsidiaries										28,239	69,912	71,895
Segment income										42,028	99,078	89,054
Segment assets		688,890				657,637				688,890	657,637
Capital expenditures:										24,707	22,323	19,478
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										51,172	41,292	33,385
Acquisition costs											401	8,299
Depreciation and amortization										11,899	12,412	10,522
Segment operating income/(loss)										(63,071)	(54,105)	(52,206)
Equity in net income of unconsolidated subsidiaries										0	0	0
Segment income										(63,071)	(54,105)	(52,206)
Segment assets		155,763				161,462				155,763	161,462
Capital expenditures:										7,409	3,867	7,410
Operating Segments [Member]
Segment Reporting Information [Line Items]
Net Sales										3,662,251	3,391,928	3,391,255
Cost of sales and operating expenses										2,875,851	2,635,547	2,654,025
Gross Margin										786,400	756,381	737,230
Selling, general and administrative expense										347,487	314,005	316,383
Acquisition costs											401	8,299
Depreciation and amortization										302,100	289,908	269,904
Segment operating income/(loss)										136,813	152,067	142,644
Equity in net income of unconsolidated subsidiaries										28,504	70,379	73,416
Segment income										165,317	222,446	$ 216,060
Segment assets		$ 4,958,225				$ 4,698,017				$ 4,958,225	$ 4,698,017

[1] Excludes immaterial capital assets acquired by acquisition in fiscal 2017, fiscal 2016 and fiscal 2015.

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Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 31, 2016	Oct. 01, 2016	Jul. 02, 2016	Apr. 02, 2016	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Quarterly Financial Information Disclosure [Abstract]
Net Sales	$ 952,549	$ 936,262	$ 894,930	$ 878,510	$ 885,758	$ 852,018	$ 875,777	$ 778,375	$ 3,662,251	$ 3,391,928	$ 3,391,255
Segment operating income/(loss)	35,026	33,310	37,063	31,414	35,380	35,528	54,467	26,692	136,813	152,067	142,644
Income from operations before income taxes	21,934	14,980	18,070	9,216	47,893	28,146	41,974	4,526	64,200	122,539	98,780
Net income	106,944	8,684	10,328	7,398	41,680	28,890	33,991	2,663	133,354	107,224	85,279
Net income attributable to noncontrolling interests	(1,215)	(923)	(1,179)	(1,569)	(1,139)	(196)	(1,992)	(1,584)	(4,886)	(4,911)	(6,748)
Net income attributable to Darling	$ 105,729	$ 7,761	$ 9,149	$ 5,829	$ 40,541	$ 28,694	$ 31,999	$ 1,079	$ 128,468	$ 102,313	$ 78,531
Basic (in dollars per share)	$ 0.64	$ 0.05	$ 0.06	$ 0.04	$ 0.25	$ 0.17	$ 0.19	$ 0.01	$ 0.78	$ 0.62	$ 0.48
Diluted (in dollars per share)	$ 0.63	$ 0.05	$ 0.05	$ 0.04	$ 0.25	$ 0.17	$ 0.19	$ 0.01	$ 0.77	$ 0.62	$ 0.48
Sales Deductions		$ 1,400	$ 1,400	$ 1,600	$ 1,500	$ 1,800	$ 1,600	$ 1,300
Provisional income tax Benefit									$ 75,000
Insured Event, Gain (Loss)										$ 5,600

XML

Related Party Transactions (Details) - USD ($)		12 Months Ended
	Feb. 23, 2015	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Related Party Transaction [Line Items]
Repayments of Long-term Debt		$ 149,623,000	$ 204,428,000	$ 609,255,000
Diamond Green Diesel Holdings LLC Joint Venture [Member]
Related Party Transaction [Line Items]
Revenue from Related Parties		171,300,000	150,500,000	158,700,000
Accounts Receivable, Related Parties, Current		5,600,000	6,300,000
Related Party, Sales Eliminated		4,100,000	4,100,000	5,000,000
Deferred Revenue, Additions		900,000	700,000	800,000
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%

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New Accounting Pronouncements (Details) - Accounting Standards Update 2014-09 [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 30, 2017	Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cost Of Sales, Modified Retrospective Basis Effect	$ 161.1	$ 149.0
Revenue, modified retrospective basis effect	$ 161.1	$ 149.0

XML

Guarantor Financial Information (Narrative) (Details)	Dec. 30, 2017
Guarantor Financial Information [Abstract]
Company's percentage of directly and indirectly owned subsidiaries	100.00%

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Guarantor Financial Information Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Assets:
Cash and cash equivalents	$ 106,774	$ 114,564	$ 156,884	$ 108,784
Restricted cash	142	293
Accounts receivable	391,847	388,397
Inventories	358,183	330,815
Income taxes refundable	4,509	7,479
Prepaid expenses	38,326	29,984
Other current assets	56,664	21,770
Total current assets	956,445	893,302
Investment in subsidiaries	0	0
Property, plant and equipment, net	1,645,822	1,515,575
Intangible assets, net	676,500	711,927
Goodwill	1,301,093	1,225,893	1,233,102
Investment in unconsolidated subsidiaries	302,038	292,717
Other assets	62,284	43,613
Non-current deferred tax asset	14,043	14,990
Total assets	4,958,225	4,698,017
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	16,143	23,247
Accounts payable, principally trade	217,417	180,895
Income taxes payable	12,300	4,913
Accrued expenses	313,623	242,796
Total current liabilities	559,483	451,851
Long-term debt, net of current portion	1,698,050	1,727,696
Other noncurrent liabilities	106,287	96,114
Deferred income taxes	266,708	346,134
Total liabilities	2,630,528	2,621,795
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	2,327,697	2,076,222	1,974,610	2,051,134
Total liabilities and stockholders' equity	4,958,225	4,698,017
Parent Company [Member]
Assets:
Cash and cash equivalents	1,724	1,470	3,443	10,447
Restricted cash	103	103
Accounts receivable	37,453	39,209
Inventories	18,049	16,573
Income taxes refundable	1,591	3,566
Prepaid expenses	10,787	11,152
Other current assets	7,117	5,859
Total current assets	76,824	77,932
Investment in subsidiaries	4,734,618	4,296,200
Property, plant and equipment, net	278,121	233,456
Intangible assets, net	17,034	13,746
Goodwill	21,860	21,860
Investment in unconsolidated subsidiaries	4,341	1,438
Other assets	42,078	36,063
Non-current deferred tax asset	0	0
Total assets	5,174,876	4,680,695
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	115	4,220
Accounts payable, principally trade	555,894	116,075
Income taxes payable	32	(383)
Accrued expenses	105,625	86,581
Total current liabilities	661,666	206,493
Long-term debt, net of current portion	1,030,736	1,109,523
Other noncurrent liabilities	69,711	63,072
Deferred income taxes	106,543	140,543
Total liabilities	1,868,656	1,519,631
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	3,306,220	3,161,064
Total liabilities and stockholders' equity	5,174,876	4,680,695
Guarantors [Member]
Assets:
Cash and cash equivalents	2,993	5,754	3,993	14,460
Restricted cash	0	0
Accounts receivable	465,653	97,220
Inventories	84,805	85,890
Income taxes refundable	0	0
Prepaid expenses	3,141	2,769
Other current assets	923	3,165
Total current assets	557,515	194,798
Investment in subsidiaries	1,167,246	1,154,398
Property, plant and equipment, net	501,842	497,312
Intangible assets, net	258,970	291,724
Goodwill	551,837	549,960
Investment in unconsolidated subsidiaries	0	0
Other assets	314,166	396,222
Non-current deferred tax asset	0	0
Total assets	3,351,576	3,084,414
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	0	0
Accounts payable, principally trade	37,466	18,142
Income taxes payable	373	373
Accrued expenses	30,542	33,834
Total current liabilities	68,381	52,349
Long-term debt, net of current portion	0	0
Other noncurrent liabilities	0	0
Deferred income taxes	0	0
Total liabilities	68,381	52,349
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	3,283,195	3,032,065
Total liabilities and stockholders' equity	3,351,576	3,084,414
Non-guarantors [Member]
Assets:
Cash and cash equivalents	102,057	107,340	149,448	83,877
Restricted cash	39	190
Accounts receivable	436,874	339,251
Inventories	255,329	228,352
Income taxes refundable	2,918	3,913
Prepaid expenses	24,398	16,063
Other current assets	48,624	19,221
Total current assets	870,239	714,330
Investment in subsidiaries	844,044	909,263
Property, plant and equipment, net	865,859	784,807
Intangible assets, net	400,496	406,457
Goodwill	727,396	654,073
Investment in unconsolidated subsidiaries	297,697	291,279
Other assets	193,923	160,505
Non-current deferred tax asset	14,043	14,990
Total assets	4,213,697	3,935,704
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	16,028	25,502
Accounts payable, principally trade	169,033	130,718
Income taxes payable	11,895	4,923
Accrued expenses	180,613	125,624
Total current liabilities	377,569	286,767
Long-term debt, net of current portion	1,155,197	1,167,349
Other noncurrent liabilities	36,576	33,042
Deferred income taxes	160,165	205,591
Total liabilities	1,729,507	1,692,749
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	2,484,190	2,242,955
Total liabilities and stockholders' equity	4,213,697	3,935,704
Eliminations [Member]
Assets:
Cash and cash equivalents	0	0	$ 0	$ 0
Restricted cash	0	0
Accounts receivable	(548,133)	(87,283)
Inventories	0	0
Income taxes refundable	0	0
Prepaid expenses	0	0
Other current assets	0	(6,475)
Total current assets	(548,133)	(93,758)
Investment in subsidiaries	(6,745,908)	(6,359,861)
Property, plant and equipment, net	0	0
Intangible assets, net	0	0
Goodwill	0	0
Investment in unconsolidated subsidiaries	0	0
Other assets	(487,883)	(549,177)
Non-current deferred tax asset	0	0
Total assets	(7,781,924)	(7,002,796)
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	0	(6,475)
Accounts payable, principally trade	(544,976)	(84,040)
Income taxes payable	0	0
Accrued expenses	(3,157)	(3,243)
Total current liabilities	(548,133)	(93,758)
Long-term debt, net of current portion	(487,883)	(549,176)
Other noncurrent liabilities	0	0
Deferred income taxes	0	0
Total liabilities	(1,036,016)	(642,934)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	(6,745,908)	(6,359,862)
Total liabilities and stockholders' equity	$ (7,781,924)	$ (7,002,796)

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Guarantor Financial Information Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 31, 2016	Oct. 01, 2016	Jul. 02, 2016	Apr. 02, 2016	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Net Sales	$ 952,549	$ 936,262	$ 894,930	$ 878,510	$ 885,758	$ 852,018	$ 875,777	$ 778,375	$ 3,662,251	$ 3,391,928	$ 3,391,255
Costs and expenses:
Cost of sales and operating expenses									2,875,851	2,635,547	2,654,025
Selling, general and administrative expense									347,487	314,005	316,383
Depreciation and amortization									302,100	289,908	269,904
Acquisition and integration costs									0	401	8,299
Total costs and expenses									3,525,438	3,239,861	3,248,611
Operating income	35,026	33,310	37,063	31,414	35,380	35,528	54,467	26,692	136,813	152,067	142,644
Interest expense									(88,926)	(94,187)	(105,530)
Foreign currency losses									(6,898)	(1,854)	(4,911)
Other expense, net									(5,293)	(3,866)	(6,839)
Equity in net income of unconsolidated subsidiaries									28,504	70,379	73,416
Earnings in investments in subsidiaries									0	0	0
Income from operations before income taxes	21,934	14,980	18,070	9,216	47,893	28,146	41,974	4,526	64,200	122,539	98,780
Income taxes (benefit)									(69,154)	15,315	13,501
Net income attributable to noncontrolling interests	(1,215)	(923)	(1,179)	(1,569)	(1,139)	(196)	(1,992)	(1,584)	(4,886)	(4,911)	(6,748)
Net income attributable to Darling	$ 105,729	$ 7,761	$ 9,149	$ 5,829	$ 40,541	$ 28,694	$ 31,999	$ 1,079	128,468	102,313	78,531
Parent Company [Member]
Net Sales									545,699	501,856	475,213
Costs and expenses:
Cost of sales and operating expenses									429,681	392,876	369,928
Selling, general and administrative expense									151,896	130,573	122,509
Depreciation and amortization									42,366	41,106	34,889
Acquisition and integration costs										0	3,177
Total costs and expenses									623,943	564,555	530,503
Operating income									(78,244)	(62,699)	(55,290)
Interest expense									(55,336)	(60,971)	(60,945)
Foreign currency losses									(234)	122	(123)
Other expense, net									(13,635)	(13,538)	(22,455)
Equity in net income of unconsolidated subsidiaries									(1,847)	(1,236)	0
Earnings in investments in subsidiaries									438,580	223,347	198,371
Income from operations before income taxes									289,284	85,025	59,558
Income taxes (benefit)									160,816	(17,288)	(18,973)
Net income attributable to noncontrolling interests									0	0	0
Net income attributable to Darling									128,468	102,313	78,531
Guarantors [Member]
Net Sales									1,464,920	1,341,925	1,363,279
Costs and expenses:
Cost of sales and operating expenses									1,198,271	1,085,582	1,108,864
Selling, general and administrative expense									55,053	51,029	55,691
Depreciation and amortization									106,406	105,261	98,400
Acquisition and integration costs										0	0
Total costs and expenses									1,359,730	1,241,872	1,262,955
Operating income									105,190	100,053	100,324
Interest expense									15,818	17,492	18,839
Foreign currency losses									114	(283)	(1,649)
Other expense, net									37	106	435
Equity in net income of unconsolidated subsidiaries									0	0	0
Earnings in investments in subsidiaries									0	0	0
Income from operations before income taxes									121,159	117,368	117,949
Income taxes (benefit)									(130,508)	14,669	16,121
Net income attributable to noncontrolling interests									0	0	0
Net income attributable to Darling									251,667	102,699	101,828
Non-guarantors [Member]
Net Sales									1,893,304	1,746,657	1,753,609
Costs and expenses:
Cost of sales and operating expenses									1,489,571	1,355,599	1,376,079
Selling, general and administrative expense									140,538	132,403	138,183
Depreciation and amortization									153,328	143,541	136,615
Acquisition and integration costs										401	5,122
Total costs and expenses									1,783,437	1,631,944	1,655,999
Operating income									109,867	114,713	97,610
Interest expense									(49,408)	(50,708)	(63,424)
Foreign currency losses									(6,778)	(1,693)	(3,139)
Other expense, net									8,305	9,566	15,181
Equity in net income of unconsolidated subsidiaries									30,351	71,615	73,416
Earnings in investments in subsidiaries									0	0	0
Income from operations before income taxes									92,337	143,493	119,644
Income taxes (benefit)									(99,462)	17,934	16,353
Net income attributable to noncontrolling interests									(4,886)	(4,911)	(6,748)
Net income attributable to Darling									186,913	120,648	96,543
Eliminations [Member]
Net Sales									(241,672)	(198,510)	(200,846)
Costs and expenses:
Cost of sales and operating expenses									(241,672)	(198,510)	(200,846)
Selling, general and administrative expense									0	0	0
Depreciation and amortization									0	0	0
Acquisition and integration costs										0	0
Total costs and expenses									(241,672)	(198,510)	(200,846)
Operating income									0	0	0
Interest expense									0	0	0
Foreign currency losses									0	0	0
Other expense, net									0	0	0
Equity in net income of unconsolidated subsidiaries									0	0	0
Earnings in investments in subsidiaries									(438,580)	(223,347)	(198,371)
Income from operations before income taxes									(438,580)	(223,347)	(198,371)
Income taxes (benefit)									0	0	0
Net income attributable to noncontrolling interests									0	0	0
Net income attributable to Darling									$ (438,580)	$ (223,347)	$ (198,371)

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Guarantor Financial Information Guarantor Financial Information Condensed Consolidating Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 31, 2016	Oct. 01, 2016	Jul. 02, 2016	Apr. 02, 2016	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Net income	$ 106,944	$ 8,684	$ 10,328	$ 7,398	$ 41,680	$ 28,890	$ 33,991	$ 2,663	$ 133,354	$ 107,224	$ 85,279
Foreign currency translation adjustments									121,810	(5,593)	(162,436)
Pension liability adjustments, net of tax									5,829	(1,016)	4,202
Total other comprehensive income, net of tax									126,543	(5,984)	(156,467)
Total comprehensive income/(loss)									259,897	101,240	(71,188)
Comprehensive income attributable to noncontrolling interests									947	3,015	9,139
Comprehensive income/(loss) attributable to Darling									258,950	98,225	(80,327)
Natural Gas Swap [Member]
Total natural gas derivatives									(18)		0
Corn Option [Member]
Total natural gas derivatives									(1,078)	625	1,767
Parent Company [Member]
Net income									133,354	107,224	85,279
Foreign currency translation adjustments									0	0	0
Pension liability adjustments, net of tax									4,797	1,766	83
Total other comprehensive income, net of tax									3,701	2,391	1,850
Total comprehensive income/(loss)									137,055	109,615	87,129
Comprehensive income attributable to noncontrolling interests									0	0	0
Comprehensive income/(loss) attributable to Darling									137,055	109,615	87,129
Parent Company [Member] | Natural Gas Swap [Member]
Total natural gas derivatives									(18)		0
Parent Company [Member] | Corn Option [Member]
Total natural gas derivatives									(1,078)	625	1,767
Guarantors [Member]
Net income									251,667	102,699	101,828
Foreign currency translation adjustments									0	0	0
Pension liability adjustments, net of tax									0	0	109
Total other comprehensive income, net of tax									0	0	109
Total comprehensive income/(loss)									251,667	102,699	101,937
Comprehensive income attributable to noncontrolling interests									0	0	0
Comprehensive income/(loss) attributable to Darling									251,667	102,699	101,937
Guarantors [Member] | Natural Gas Swap [Member]
Total natural gas derivatives									0		0
Guarantors [Member] | Corn Option [Member]
Total natural gas derivatives									0	0	0
Non-guarantors [Member]
Net income									186,913	120,648	96,543
Foreign currency translation adjustments									121,810	(5,593)	(162,436)
Pension liability adjustments, net of tax									1,032	(2,782)	4,010
Total other comprehensive income, net of tax									122,842	(8,375)	(158,426)
Total comprehensive income/(loss)									309,755	112,273	(61,883)
Comprehensive income attributable to noncontrolling interests									947	3,015	9,139
Comprehensive income/(loss) attributable to Darling									308,808	109,258	(71,022)
Non-guarantors [Member] | Natural Gas Swap [Member]
Total natural gas derivatives									0		0
Non-guarantors [Member] | Corn Option [Member]
Total natural gas derivatives									0	0	0
Eliminations [Member]
Net income									(438,580)	(223,347)	(198,371)
Foreign currency translation adjustments									0	0	0
Pension liability adjustments, net of tax									0	0	0
Total other comprehensive income, net of tax									0	0	0
Total comprehensive income/(loss)									(438,580)	(223,347)	(198,371)
Comprehensive income attributable to noncontrolling interests									0	0	0
Comprehensive income/(loss) attributable to Darling									(438,580)	(223,347)	(198,371)
Eliminations [Member] | Natural Gas Swap [Member]
Total natural gas derivatives									0		0
Eliminations [Member] | Corn Option [Member]
Total natural gas derivatives									$ 0	$ 0	$ 0

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Guarantor Financial Information Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands		3 Months Ended								12 Months Ended
		Dec. 30, 2017	Sep. 30, 2017	Jul. 01, 2017	Apr. 01, 2017	Dec. 31, 2016	Oct. 01, 2016	Jul. 02, 2016	Apr. 02, 2016	Dec. 30, 2017	Dec. 31, 2016	Jan. 02, 2016
Net income		$ 106,944	$ 8,684	$ 10,328	$ 7,398	$ 41,680	$ 28,890	$ 33,991	$ 2,663	$ 133,354	$ 107,224	$ 85,279
Cash flows from operating activities:
Earnings in investments in subsidiaries										0	0	0
Other operating cash flows										277,233	283,812	335,680
Net cash provided by operating activities										410,587	391,036	420,959
Cash flows from investing activities:
Capital expenditures	[1]									(274,168)	(243,523)	(229,848)
Acquisitions, net of cash acquired										(12,144)	(8,511)	(377)
Investment in unconsolidated subsidiary										(4,750)	0	0
Note receivable from affiliates										0	0	0
Gross proceeds from sale of property, plant and equipment and other assets										8,090	7,329	3,840
Proceeds from insurance settlement										6,054	1,537	561
Payments related to routes and other intangibles										(7,135)	(23)	(3,845)
Net cash used in investing activities										(284,053)	(243,191)	(229,669)
Cash flows from financing activities:
Proceeds from long-term debt										33,401	36,327	590,745
Payments on long-term debt										(149,623)	(204,428)	(609,255)
Borrowings from revolving credit facility										199,495	99,276	78,244
Payments on revolving credit facility										(204,935)	(104,028)	(166,755)
Net cash overdraft financing										(714)	1,071	(1,261)
Deferred loan costs										(6,717)	(3,879)	(17,310)
Issuance of common stock										22	188	171
Repurchase of common stock										0	(5,000)	(5,912)
Contributions from parent										0	0	0
Minimum withholding taxes paid on stock awards										(3,049)	(1,843)	(4,874)
Deductions of noncontrolling interest										(17,451)	0	(87)
Distributions to noncontrolling interests										(5,281)	(1,552)	(3,295)
Net cash used in financing activities										(154,852)	(183,868)	(139,589)
Effect of exchange rate changes on cash flows										20,528	(6,297)	(3,601)
Net increase/(decrease) in cash and cash equivalents										(7,790)	(42,320)	48,100
Cash and cash equivalents at beginning of year					114,564				156,884	114,564	156,884	108,784
Cash and cash equivalents at end of year		106,774				114,564				106,774	114,564	156,884
Parent Company [Member]
Net income										133,354	107,224	85,279
Cash flows from operating activities:
Earnings in investments in subsidiaries										(438,580)	(223,347)	(198,371)
Other operating cash flows										489,302	317,040	250,597
Net cash provided by operating activities										184,076	200,917	137,505
Cash flows from investing activities:
Capital expenditures										(83,520)	(51,330)	(46,574)
Acquisitions, net of cash acquired										0	0	0
Investment in unconsolidated subsidiary										(6,309)	0	(20)
Note receivable from affiliates										0	0	0
Gross proceeds from sale of property, plant and equipment and other assets										2,577	2,784	1,035
Proceeds from insurance settlement										0	0	71
Payments related to routes and other intangibles										(7,135)	0	0
Net cash used in investing activities										(94,387)	(48,546)	(45,488)
Cash flows from financing activities:
Proceeds from long-term debt										0	0	0
Payments on long-term debt										(79,706)	(143,935)	(16,111)
Borrowings from revolving credit facility										170,000	94,000	25,000
Payments on revolving credit facility										(170,000)	(94,000)	(90,000)
Net cash overdraft financing										0	0	0
Deferred loan costs										(6,717)	(3,879)	(7,295)
Issuance of common stock										22	188	171
Repurchase of common stock											(5,000)	(5,912)
Contributions from parent										0	0	0
Minimum withholding taxes paid on stock awards										(3,034)	(1,718)	(4,874)
Deductions of noncontrolling interest										0		0
Distributions to noncontrolling interests										0	0	0
Net cash used in financing activities										(89,435)	(154,344)	(99,021)
Effect of exchange rate changes on cash flows										0	0	0
Net increase/(decrease) in cash and cash equivalents										254	(1,973)	(7,004)
Cash and cash equivalents at beginning of year					1,470				3,443	1,470	3,443	10,447
Cash and cash equivalents at end of year		1,724				1,470				1,724	1,470	3,443
Guarantors [Member]
Net income										251,667	102,699	101,828
Cash flows from operating activities:
Earnings in investments in subsidiaries										0	0	0
Other operating cash flows										(240,494)	(100,970)	(53,098)
Net cash provided by operating activities										11,173	1,729	48,730
Cash flows from investing activities:
Capital expenditures										(74,384)	(91,340)	(91,702)
Acquisitions, net of cash acquired										(12,144)	0	0
Investment in unconsolidated subsidiary										(13,386)	(12,754)	(45,103)
Note receivable from affiliates										82,000	103,056	76,019
Gross proceeds from sale of property, plant and equipment and other assets										3,980	1,070	1,154
Proceeds from insurance settlement										0	0	490
Payments related to routes and other intangibles										0	0	0
Net cash used in investing activities										(13,934)	32	(59,142)
Cash flows from financing activities:
Proceeds from long-term debt										0	0	0
Payments on long-term debt										0	0	(55)
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 common stock											0	0
Contributions from parent										0	0	0
Minimum withholding taxes paid on stock awards										0	0	0
Deductions of noncontrolling interest										0		0
Distributions to noncontrolling interests										0	0	0
Net cash used in financing activities										0	0	(55)
Effect of exchange rate changes on cash flows										0	0	0
Net increase/(decrease) in cash and cash equivalents										(2,761)	1,761	(10,467)
Cash and cash equivalents at beginning of year					5,754				3,993	5,754	3,993	14,460
Cash and cash equivalents at end of year		2,993				5,754				2,993	5,754	3,993
Non-guarantors [Member]
Net income										186,913	120,648	96,543
Cash flows from operating activities:
Earnings in investments in subsidiaries										0	0	0
Other operating cash flows										28,425	67,742	138,181
Net cash provided by operating activities										215,338	188,390	234,724
Cash flows from investing activities:
Capital expenditures										(116,264)	(100,853)	(91,572)
Acquisitions, net of cash acquired										0	(8,511)	(377)
Investment in unconsolidated subsidiary										0	0	29,541
Note receivable from affiliates										(82,000)	(103,056)	(76,019)
Gross proceeds from sale of property, plant and equipment and other assets										1,533	3,475	1,651
Proceeds from insurance settlement										6,054	1,537	0
Payments related to routes and other intangibles										0	(23)	(3,845)
Net cash used in investing activities										(190,677)	(207,431)	(140,621)
Cash flows from financing activities:
Proceeds from long-term debt										33,401	36,327	590,745
Payments on long-term debt										(69,917)	(60,493)	(593,089)
Borrowings from revolving credit facility										29,495	5,276	53,244
Payments on revolving credit facility										(34,935)	(10,028)	(76,755)
Net cash overdraft financing										(714)	1,071	(1,261)
Deferred loan costs										0	0	(10,015)
Issuance of common stock										0	0	0
Repurchase of common stock											0	0
Contributions from parent										14,945	12,754	15,582
Minimum withholding taxes paid on stock awards										(15)	(125)	0
Deductions of noncontrolling interest										(17,451)		(87)
Distributions to noncontrolling interests										(5,281)	(1,552)	(3,295)
Net cash used in financing activities										(50,472)	(16,770)	(24,931)
Effect of exchange rate changes on cash flows										20,528	(6,297)	(3,601)
Net increase/(decrease) in cash and cash equivalents										(5,283)	(42,108)	65,571
Cash and cash equivalents at beginning of year					107,340				149,448	107,340	149,448	83,877
Cash and cash equivalents at end of year		102,057				107,340				102,057	107,340	149,448
Eliminations [Member]
Net income										(438,580)	(223,347)	(198,371)
Cash flows from operating activities:
Earnings in investments in subsidiaries										438,580	223,347	198,371
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										14,945	12,754	15,582
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										14,945	12,754	15,582
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 common stock											0	0
Contributions from parent										(14,945)	(12,754)	(15,582)
Minimum withholding taxes paid on stock awards										0	0	0
Deductions of noncontrolling interest										0		0
Distributions to noncontrolling interests										0	0	0
Net cash used in financing activities										(14,945)	(12,754)	(15,582)
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

[1] Excludes immaterial capital assets acquired by acquisition in fiscal 2017, fiscal 2016 and fiscal 2015.