Guarantor Financial Information (Tables)

6 Months Ended

Jun. 30, 2018

Guarantor Financial Information [Abstract]

Guarantor Financial Information Condensed Consolidating Balance Sheet

Condensed Consolidated Balance Sheet

As of June 30, 2018

(in thousands)

	Parent		Guarantors			Non-guarantors		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	971	$	1,462		$	101,687	$	—		$	104,120
Restricted cash	103		—			39		—			142
Accounts receivable	37,731		499,988			449,745		(616,173		)	371,291
Inventories	15,775		85,471			269,309		—			370,555
Income taxes refundable	2,856		—			4,121		—			6,977
Prepaid expenses	13,170		2,813			27,982		—			43,965
Other current assets	5,161		(2,152		)	18,139		—			21,148
Total current assets	75,767		587,582			871,022		(616,173		)	918,198
Investment in subsidiaries	4,792,217		1,366,126			844,044		(7,002,387		)	—
Property, plant and equipment, net	314,090		497,077			813,187		—			1,624,354
Intangible assets, net	31,131		216,133			363,614		—			610,878
Goodwill	41,414		490,748			700,802		—			1,232,964
Investment in unconsolidated subsidiaries	9,766		—			389,331		—			399,097
Other assets	38,913		65,149			186,738		(233,998		)	56,802
Deferred taxes	—		—			14,623		—			14,623
	$	5,303,298	$	3,222,815		$	4,183,361	$	(7,852,558	)	$	4,856,916
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	$	49	$	—		$	7,417	$	—		$	7,466
Accounts payable	643,541		16,949			138,528		(613,868		)	185,150
Income taxes payable	888		—			8,087		—			8,975
Accrued expenses	89,917		26,875			166,653		(2,306		)	281,139
Total current liabilities	734,395		43,824			320,685		(616,174		)	482,730
Long-term debt, net of current portion	1,022,688		—			899,133		(233,998		)	1,687,823
Other noncurrent liabilities	68,404		—			37,245		—			105,649
Deferred income taxes	92,197		—			150,486		—			242,683
Total liabilities	1,917,684		43,824			1,407,549		(850,172		)	2,518,885
Total stockholders’ equity	3,385,614		3,178,991			2,775,812		(7,002,386		)	2,338,031
	$	5,303,298	$	3,222,815		$	4,183,361	$	(7,852,558	)	$	4,856,916

Condensed Consolidated 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 subsidiary	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

Guarantor Financial Information Condensed Consolidating Statements Of Operations

Condensed Consolidated Statements of Operations

For the three months ended June 30, 2018

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	135,196		$	348,497		$	423,466		$	(60,513	)	$	846,646
Cost and expenses:
Cost of sales and operating expenses	102,221			275,609			335,684			(60,513		)	653,001
Selling, general and administrative expenses	36,393			12,425			29,740			—			78,558
Restructuring and impairment charges	—			—			14,965			—			14,965
Depreciation and amortization	11,577			25,942			40,935			—			78,454
Total costs and expenses	150,191			313,976			421,324			(60,513		)	824,978
Operating income/(loss)	(14,995		)	34,521			2,142			—			21,668
Interest expense	(14,193		)	3,240			(12,063		)	—			(23,016		)
Debt extinguishment costs	(15,635		)	—			(7,874		)	—			(23,509		)
Foreign currency losses	(414		)	(31		)	(3,050		)	—			(3,495		)
Loss on sale of subsidiary	(15,538		)	—			—			—			(15,538		)
Other income/(expense), net	(10,204		)	1,810			9,593			—			1,199
Equity in net income/(loss) of unconsolidated subsidiaries	(577		)	—			15,813			—			15,236
Earnings in investments in subsidiaries	34,159			—			—			(34,159		)	—
Income/(loss) before taxes	(37,397		)	39,540			4,561			(34,159		)	(27,455		)
Income taxes (benefit)	(6,977		)	4,192			4,468			—			1,683
Net income attributable to noncontrolling interests	—			—			(1,282		)	—			(1,282		)
Net income/(loss) attributable to Darling	$	(30,420	)	$	35,348		$	(1,189	)	$	(34,159	)	$	(30,420	)

Condensed Consolidated Statements of Operations

For the six months ended June 30, 2018

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	254,821		$	693,100		$	891,274		$	(117,175	)	$	1,722,020
Cost and expenses:
Cost of sales and operating expenses	198,089			546,846			703,340			(117,175		)	1,331,100
Selling, general and administrative expenses	80,171			25,262			60,027			—			165,460
Restructuring and impairment charges	—			—			14,965			—			14,965
Depreciation and amortization	22,636			52,233			82,204			—			157,073
Total costs and expenses	300,896			624,341			860,536			(117,175		)	1,668,598
Operating income/(loss)	(46,075		)	68,759			30,738			—			53,422
Interest expense	(28,557		)	7,003			(24,586		)	—			(46,140		)
Debt extinguishment costs	(15,635		)	—			(7,874		)	—			(23,509		)
Foreign currency losses	(437		)	(94		)	(4,445		)	—			(4,976		)
Loss on sale of subsidiary	(15,538		)	—			—			—			(15,538		)
Other income/(expense), net	(13,614		)	484			11,813			—			(1,317		)
Equity in net income/(loss) of unconsolidated subsidiaries	(1,075		)	—			113,465			—			112,390
Earnings in investments in subsidiaries	179,039			—			—			(179,039		)	—
Income/(loss) before taxes	58,108			76,152			119,111			(179,039		)	74,332
Income taxes (benefit)	(8,777		)	5,527			8,645			—			5,395
Net income attributable to noncontrolling interests	—			—			(2,052		)	—			(2,052		)
Net income/(loss) attributable to Darling	$	66,885		$	70,625		$	108,414		$	(179,039	)	$	66,885

Condensed Consolidated Statements of Operations

For the three months ended July 1, 2017

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	135,896		$	359,840		$	458,203		$	(59,009	)	$	894,930
Cost and expenses:
Cost of sales and operating expenses	107,977			290,511			359,765			(59,009		)	699,244
Selling, general and administrative expenses	35,105			13,351			36,076			—			84,532
Depreciation and amortization	9,980			25,876			37,134			—			72,990
Total costs and expenses	153,062			329,738			432,975			(59,009		)	856,766
Operating income/(loss)	(17,166		)	30,102			25,228			—			38,164
Interest expense	(14,247		)	3,968			(12,167		)	—			(22,446		)
Foreign currency gains/(losses)	(178		)	205			(2,138		)	—			(2,111		)
Other income/(expense), net	(4,283		)	(1,590		)	2,076			—			(3,797		)
Equity in net income/(loss) of unconsolidated subsidiaries	(393		)	—			8,653			—			8,260
Earnings in investments in subsidiaries	26,513			—			—			(26,513		)	—
Income/(loss) before taxes	(9,754		)	32,685			21,652			(26,513		)	18,070
Income taxes	(18,903		)	16,325			10,320			—			7,742
Net income attributable to noncontrolling interests	—			—			(1,179		)	—			(1,179		)
Net income/(loss) attributable to Darling	$	9,149		$	16,360		$	10,153		$	(26,513	)	$	9,149

Condensed Consolidated Statements of Operations

For the six months ended July 1, 2017

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	272,053		$	720,024		$	897,991		$	(116,628	)	$	1,773,440
Cost and expenses:
Cost of sales and operating expenses	217,640			583,282			702,916			(116,628		)	1,387,210
Selling, general and administrative expenses	74,074			27,528			69,853			—			171,455
Depreciation and amortization	20,265			51,312			72,527			—			144,104
Total costs and expenses	311,979			662,122			845,296			(116,628		)	1,702,769
Operating income/(loss)	(39,926		)	57,902			52,695			—			70,671
Interest expense	(27,833		)	7,991			(24,284		)	—			(44,126		)
Foreign currency gains/(losses)	(184		)	180			(2,371		)	—			(2,375		)
Other income/(expense), net	(8,031		)	(1,558		)	3,739			—			(5,850		)
Equity in net income/(loss) of unconsolidated subsidiaries	(766		)	—			9,732			—			8,966
Earnings in investments in subsidiaries	64,831			—			—			(64,831		)	—
Income/(loss) before taxes	(11,909		)	64,515			39,511			(64,831		)	27,286
Income taxes (benefit)	(26,887		)	22,604			13,843			—			9,560
Net income attributable to noncontrolling interests	—			—			(2,748		)	—			(2,748		)
Net income/(loss) attributable to Darling	$	14,978		$	41,911		$	22,920		$	(64,831	)	$	14,978

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

Condensed Consolidated Statements of Comprehensive Income/(Loss)

For the three months ended June 30, 2018

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net income/(loss)	$	(29,138	)	$	35,348		$	(1,189	)	$	(34,159	)	$	(29,138	)
Other comprehensive income/(loss), net of tax:
Foreign currency translation	1,116			(53,387		)	(24,566		)	—			(76,837		)
Pension adjustments	565			—			101			—			666
Natural gas swap derivative adjustments	—			—			—			—			—
Corn option derivative adjustments	447			—			—			—			447
Total other comprehensive income/(loss), net of tax	2,128			(53,387		)	(24,465		)	—			(75,724		)
Total comprehensive income/(loss)	(27,010		)	(18,039		)	(25,654		)	(34,159		)	(104,862		)
Total comprehensive loss attributable to noncontrolling interest	—			—			1,232			—			1,232
Total comprehensive income/(loss) attributable to Darling	$	(27,010	)	$	(18,039	)	$	(26,886	)	$	(34,159	)	$	(106,094	)

Condensed Consolidated Statements of Comprehensive Income/(Loss)

For the six months ended June 30, 2018

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net income/(loss)	$	68,937		$	70,625		$	108,414		$	(179,039	)	$	68,937
Other comprehensive income/ (loss), net of tax:
Foreign currency translation	1,116			(53,387		)	(7,271		)	—			(59,542		)
Pension adjustments	1,131			—			202			—			1,333
Natural gas swap derivative adjustments	22			—			—			—			22
Corn option derivative adjustments	(1,158		)	—			—			—			(1,158		)
Total other comprehensive income/(loss), net of tax	1,111			(53,387		)	(7,069		)	—			(59,345		)
Total comprehensive income/(loss)	70,048			17,238			101,345			(179,039		)	9,592
Total comprehensive loss attributable to noncontrolling interest	—			—			2,519			—			2,519
Total comprehensive income/(loss) attributable to Darling	$	70,048		$	17,238		$	98,826		$	(179,039	)	$	7,073

Condensed Consolidated Statements of Comprehensive Income/(Loss)

For the three months ended July 1, 2017

(in thousands)

	Parent			Guarantors		Non-guarantors			Eliminations			Consolidated
Net income/(loss)	$	10,328		$	16,360	$	10,153		$	(26,513	)	$	10,328
Other comprehensive income/(loss), net of tax:
Foreign currency translation	—			—		49,112			—			49,112
Pension adjustments	641			—		119			—			760
Corn option derivative adjustments	(869		)	—		—			—			(869		)
Total other comprehensive income/(loss), net of tax	(228		)	—		49,231			—			49,003
Total comprehensive income/(loss)	10,100			16,360		59,384			(26,513		)	59,331
Total comprehensive income attributable to noncontrolling interest	—			—		(1,418		)	—			(1,418		)
Total comprehensive income/(loss) attributable to Darling	$	10,100		$	16,360	$	60,802		$	(26,513	)	$	60,749

Condensed Consolidated Statements of Comprehensive Income/(Loss)

For the six months ended July 1, 2017

(in thousands)

	Parent			Guarantors		Non-guarantors			Eliminations			Consolidated
Net income/(loss)	$	17,726		$	41,911	$	22,920		$	(64,831	)	$	17,726
Other comprehensive income/(loss), net of tax:
Foreign currency translation	—			—		64,791			—			64,791
Pension adjustments	1,282			—		237			—			1,519
Corn option derivative adjustments	(1,971		)	—		—			—			(1,971		)
Total other comprehensive income, net of tax	(689		)	—		65,028			—			64,339
Total comprehensive income/(loss)	17,037			41,911		87,948			(64,831		)	82,065
Total comprehensive income attributable to noncontrolling interest	—			—		(171		)	—			(171		)
Total comprehensive income/(loss) attributable to Darling	$	17,037		$	41,911	$	88,119		$	(64,831	)	$	82,236

Guarantor Financial Information Condensed Consolidating Statements Of Cash Flows

Condensed Consolidated Statements of Cash Flows

For the six months ended June 30, 2018

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income/(loss)	$	68,937		$	70,625		$	108,414		$	(179,039	)	$	68,937
Earnings in investments in subsidiaries	(179,039		)	—			—			179,039			—
Other operating cash flows	143,415			(30,510		)	(53,795		)	—			59,110
Net cash provided by operating activities	33,313			40,115			54,619			—			128,047
Cash flows from investing activities:
Capital expenditures	(45,028		)	(45,759		)	(48,343		)	—			(139,130		)
Acquisitions	(51,089		)	—			—			—			(51,089		)
Investment in subsidiaries and affiliates	(6,500		)	(198,880		)	—			198,880			(6,500		)
Proceeds from sale of investment in subsidiary	80,000			—			2,805			—			82,805
Note receivable from affiliates	—			201,880			(201,880		)	—			—
Gross proceeds from sale of property, plant and equipment and other assets	873			610			761			—			2,244
Proceeds from insurance settlements	750			503			—			—			1,253
Payments related to routes and other intangibles	(246		)	—			(48		)	—			(294		)
Net cash used in investing activities	(21,240		)	(41,646		)	(246,705		)	198,880			(110,711		)
Cash flows from financing activities:
Proceeds for long-term debt	—			—			623,695			—			623,695
Payments on long-term debt	(10,066		)	—			(640,910		)	—			(650,976		)
Borrowings from revolving facilities	131,000			—			116,975			—			247,975
Payments on revolving facilities	(131,000		)	—			(90,632		)	—			(221,632		)
Net cash overdraft financing	—			—			4,517			—			4,517
Deferred loan costs	(824		)	—			(8,500		)	—			(9,324		)
Issuances of common stock	182			—			—			—			182
Contributions from parent	—			—			198,880			(198,880		)	—
Minimum withholding taxes paid on stock awards	(2,118		)	—			(5		)	—			(2,123		)
Distributions to noncontrolling interests	—			—			(983		)	—			(983		)
Net cash used in financing activities	(12,826		)	—			203,037			(198,880		)	(8,669		)
Effect of exchange rate changes on cash	—			—			(11,321		)	—			(11,321		)
Net increase/(decrease) in cash, cash equivalents and restricted cash	(753		)	(1,531		)	(370		)	—			(2,654		)
Cash, cash equivalents and restricted cash at beginning of period	1,827			2,993			102,096			—			106,916
Cash, cash equivalents and restricted cash at end of period	$	1,074		$	1,462		$	101,726		$	—		$	104,262

Condensed Consolidated Statements of Cash Flows

For the six months ended July 1, 2017

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income/(loss)	$	17,726		$	41,911		$	22,920		$	(64,831	)	$	17,726
Earnings in investments in subsidiaries	(64,831		)	—			—			64,831			—
Other operating cash flows	135,192			(36,021		)	80,640			—			179,811
Net cash provided by operating activities	88,087			5,890			103,560			—			197,537
Cash flows from investing activities:
Capital expenditures	(41,907		)	(38,269		)	(47,648		)	—			(127,824		)
Acquisitions	—			(12,369		)	—			—			(12,369		)
Investment in subsidiaries and affiliates	(2,250		)	—			—			—			(2,250		)
Note receivable from affiliates	—			39,733			(39,733		)	—			—
Gross proceeds from sale of property, plant and equipment and other assets	1,704			978			921			—			3,603
Proceeds from insurance settlements	—			—			3,301			—			3,301
Payments related to routes and other intangibles	(4,635		)	—			—			—			(4,635		)
Net cash used in investing activities	(47,088		)	(9,927		)	(83,159		)	—			(140,174		)
Cash flows from financing activities:
Proceeds for long-term debt	—			—			16,405			—			16,405
Payments on long-term debt	(43,063		)	—			(24,911		)	—			(67,974		)
Borrowings from revolving credit facility	80,000			—			—			—			80,000
Payments on revolving credit facility	(75,000		)	—			(5,327		)	—			(80,327		)
Net cash overdraft financing	—			—			(1,077		)	—			(1,077		)
Deferred loan costs	(1,177		)	—			—			—			(1,177		)
Issuances of common stock	22			—			—			—			22
Minimum withholding taxes paid on stock awards	(2,077		)	—			(14		)	—			(2,091		)
Distributions to noncontrolling interests	—			—			(2,135		)	—			(2,135		)
Net cash used in financing activities	(41,295		)	—			(17,059		)	—			(58,354		)
Effect of exchange rate changes on cash	—			—			11,233			—			11,233
Net increase/(decrease) in cash, cash equivalents and restricted cash	(296		)	(4,037		)	14,575			—			10,242
Cash, cash equivalents and restricted cash at beginning of period	1,573			5,754			107,530			—			114,857
Cash, cash equivalents and restricted cash at end of period	$	1,277		$	1,717		$	122,105		$	—		$	125,099