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