Other Comprehensive Income/(Loss)

The Company follows FASB authoritative guidance for reporting and presentation of comprehensive income and its components. Other comprehensive income (loss) is derived from adjustments that reflect pension adjustments, natural gas swap adjustments, corn option adjustments and foreign currency translation adjustments. 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 Cuts and Jobs Act. The ASU is effective for fiscal years beginning after December 15, 2018; however, the Company elected to early adopt ASU No. 2018-02 during the quarter ended March 31, 2018. The adoption resulted in a $4.8 million reclassification from accumulated other comprehensive income (loss) to retained earnings resulting from the Tax Cuts and Jobs Act.

The components of other comprehensive income (loss) and the related tax impacts for the three and six months ended June 30, 2018 and July 1, 2017 are as follows (in thousands):



	Three Months Ended
	Before-Tax						Tax (Expense)						Net-of-Tax
	Amount						or Benefit						Amount
	June 30, 2018			July 1, 2017			June 30, 2018			July 1, 2017			June 30, 2018			July 1, 2017
Defined benefit pension plans
Amortization of prior service cost/(benefit)	$	8		$	9		$	(1	)	$	(2	)	$	7		$	7
Amortization of actuarial loss	888			1,203			(229		)	(450		)	659			753
Total defined benefit pension plans	896			1,212			(230		)	(452		)	666			760
Natural gas swap derivatives
Loss/(gain) reclassified to net income	—			—			1			—			1			—
Gain/(loss) activity recognized in other comprehensive income (loss)	(1		)	—			—			—			(1		)	—
Total natural gas swap derivatives	(1		)	—			1			—			—			—
Corn option derivatives
Loss/(gain) reclassified to net income	(323		)	(1,213		)	84			470			(239		)	(743		)
Gain/(loss) activity recognized in other comprehensive income (loss)	925			(207		)	(239		)	81			686			(126		)
Total corn option derivatives	602			(1,420		)	(155		)	551			447			(869		)

Foreign currency translation	(77,953		)	49,112			1,116			—			(76,837		)	49,112

Other comprehensive income (loss)	$	(76,456	)	$	48,904		$	732		$	99		$	(75,724	)	$	49,003



	Six Months Ended
	Before-Tax						Tax (Expense)						Net-of-Tax
	Amount						or Benefit						Amount
	June 30, 2018			July 1, 2017			June 30, 2018			July 1, 2017			June 30, 2018			July 1, 2017
Defined benefit pension plans
Amortization of prior service cost/(benefit)	$	17		$	18		$	(4	)	$	(5	)	$	13		$	13
Amortization of actuarial loss	1,776			2,406			(456		)	(900		)	1,320			1,506
Total defined benefit pension plans	1,793			2,424			(460		)	(905		)	1,333			1,519
Natural gas swap derivatives
Loss/(gain) reclassified to net income	14			—			(3		)	—			11			—
Gain/(loss) activity recognized in other comprehensive income (loss)	15			—			(4		)	—			11			—
Total natural gas swap derivatives	29			—			(7		)	—			22			—
Corn option derivatives
Loss/(gain) reclassified to net income	(991		)	(2,398		)	257			930			(734		)	(1,468		)
Gain/(loss) activity recognized in other comprehensive income (loss)	(572		)	(822		)	148			319			(424		)	(503		)
Total corn option derivatives	(1,563		)	(3,220		)	405			1,249			(1,158		)	(1,971		)

Foreign currency translation	(60,658		)	64,791			1,116			—			(59,542		)	64,791

Other comprehensive income (loss)	$	(60,399	)	$	63,995		$	1,054		$	344		$	(59,345	)	$	64,339

The following table presents the amounts reclassified out of each component of other comprehensive income (loss), net of tax for the three and six months ended June 30, 2018 and July 1, 2017 as follows (in thousands):



	Three Months Ended						Six Months Ended
	June 30, 2018			July 1, 2017			June 30, 2018			July 1, 2017			Statement of Operations Classification
Derivative instruments
Natural gas swap derivatives	$	—		$	—		$	(14	)	$	—		Cost of sales and operating expenses
Corn option derivatives	323			1,213			991			2,398			Cost of sales and operating expenses
	323			1,213			977			2,398			Total before tax
	(84		)	(470		)	(254		)	(930		)	Income taxes
	239			743			723			1,468			Net of tax
Defined benefit pension plans
Amortization of prior service cost	$	(8	)	$	(9	)	$	(17	)	$	(18	)	(a)
Amortization of actuarial loss	(888		)	(1,203		)	(1,776		)	(2,406		)	(a)
	(896		)	(1,212		)	(1,793		)	(2,424		)	Total before tax
	230			452			460			905			Income taxes
	(666		)	(760		)	(1,333		)	(1,519		)	Net of tax
Total reclassifications	$	(427	)	$	(17	)	$	(610	)	$	(51	)	Net of tax


(a)	These items are included in the computation of net periodic pension cost. See Note 13 Employee Benefit Plans for additional information.

The following table presents changes in each component of accumulated comprehensive income (loss) as of June 30, 2018 as follows (in thousands):



	Six Months Ended June 30, 2018
	Foreign Currency			Derivative			Defined Benefit
	Translation			Instruments			Pension Plans			Total
Accumulated Other Comprehensive Income (loss) December 30, 2017, attributable to Darling, net of tax	$	(183,161	)	$	1,372		$	(27,735	)	$	(209,524	)
Other comprehensive gain (loss) before reclassifications	(59,542		)	(413		)	—			(59,955		)
Amounts reclassified from accumulated other comprehensive income (loss)	—			(723		)	1,333			610
Reclassification of tax effect (a)	—			291			(5,073		)	(4,782		)
Net current-period other comprehensive income/(loss)	(59,542		)	(845		)	(3,740		)	(64,127		)
Noncontrolling interest	467			—			—			467
Accumulated Other Comprehensive Income (loss) June 30, 2018, attributable to Darling, net of tax	(243,170		)	$	527		$	(31,475	)	$	(274,118	)


(a)	Stranded tax effects reclassified from accumulated other comprehensive income (loss) to retained earnings from the adoption of ASU 2018-02.