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Other Comprehensive Income
 6 Months Ended
Jun. 29, 2019
Equity [Abstract]  
Other Comprehensive Income
Other Comprehensive Income/(Loss)

The Company follows FASB authoritative guidance for reporting and presentation of comprehensive income/(loss) and its components.  Other comprehensive income/(loss) is derived from adjustments that reflect pension adjustments, natural gas swap adjustments, corn option adjustments, foreign exchange forward adjustments and foreign currency translation adjustments.

In the first six months of fiscal 2019, the Company's DGD Joint Venture entered into heating oil derivatives that were deemed to be cash flow hedges. As a result, the Company has accrued the other comprehensive income/(loss) portion belonging to Darling with an offset to the investment in DGD.

The components of other comprehensive income (loss) and the related tax impacts for the three and six months ended June 29, 2019 and June 30, 2018 are as follows (in thousands):

 
Three Months Ended
 
Before-Tax
Tax (Expense)
Net-of-Tax
 
Amount
or Benefit
Amount
 
June 29, 2019
June 30, 2018
June 29, 2019
June 30, 2018
June 29, 2019
June 30, 2018
Defined benefit pension plans
 
 
 
 
 
 
Amortization of prior service cost/(benefit)
$
9

$
8

$
(2
)
$
(1
)
$
7

$
7

Amortization of actuarial loss
1,147

888

(295
)
(229
)
852

659

Total defined benefit pension plans
1,156

896

(297
)
(230
)
859

666

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
(37
)
(323
)
10

84

(27
)
(239
)
Gain/(loss) activity recognized in other comprehensive income/(loss)
67

925

(18
)
(239
)
49

686

Total corn option derivatives
30

602

(8
)
(155
)
22

447

Heating oil derivatives
 
 
 
 
 
 
Gain/(loss) activity recognized in other comprehensive income/(loss)
2,874

—

(741
)
—

2,133

—

Total heating oil derivatives
2,874

—

(741
)
—

2,133

—

Foreign exchange derivatives
 
 
 
 
 
 
Loss/(gain) reclassified to net income
287

—

(111
)
—

176

—

Gain/(loss) activity recognized in other comprehensive income/(loss)
1,854

—

(579
)
—

1,275

—

Total foreign exchange derivatives
2,141

—

(690
)
—

1,451

—

 
 
 
 
 
 
 
Foreign currency translation
16,652

(77,953
)
(326
)
1,116

16,326

(76,837
)
 
 
 
 
 
 
 
Other comprehensive income/(loss)
$
22,853

$
(76,456
)
$
(2,062
)
$
732

$
20,791

$
(75,724
)
 
Six Months Ended
 
Before-Tax
Tax (Expense)
Net-of-Tax
 
Amount
or Benefit
Amount
 
June 29, 2019
June 30, 2018
June 29, 2019
June 30, 2018
June 29, 2019
June 30, 2018
Defined benefit pension plans
 
 
 
 
 
 
Amortization of prior service cost/(benefit)
$
18

$
17

$
(5
)
$
(4
)
$
13

$
13

Amortization of actuarial loss
2,293

1,776

(589
)
(456
)
1,704

1,320

Total defined benefit pension plans
2,311

1,793

(594
)
(460
)
1,717

1,333

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
(37
)
(991
)
10

257

(27
)
(734
)
Gain/(loss) activity recognized in other comprehensive income/(loss)
67

(572
)
(18
)
148

49

(424
)
Total corn option derivatives
30

(1,563
)
(8
)
405

22

(1,158
)
Heating oil derivatives
 
 
 
 
 
 
Gain/(loss) activity recognized in other comprehensive income/(loss)
2,874

—

(741
)
—

2,133

—

Total heating oil derivatives
2,874

—

(741
)
—

2,133

—

Foreign exchange derivatives
 
 
 
 
 
 
Loss/(gain) reclassified to net income
287

—

(111
)
—

176

—

Gain/(loss) activity recognized in other comprehensive income/(loss)
(1,080
)
—

418

—

(662
)
—

Total foreign exchange derivatives
(793
)
—

307

—

(486
)
—

 
 
 
 
 
 
 
Foreign currency translation
11,259

(60,658
)
181

1,116

11,440

(59,542
)
 
 
 
 
 
 
 
Other comprehensive income/(loss)
$
15,681

$
(60,399
)
$
(855
)
$
1,054

$
14,826

$
(59,345
)


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 29, 2019 and June 30, 2018 as follows (in thousands):

 
Three Months Ended
Six Months Ended
 
 
June 29, 2019
June 30, 2018
June 29, 2019
June 30, 2018
Statement of Operations Classification
Derivative instruments
 
 
 
 
 
Foreign exchange contracts
$
(287
)
$
—

$
(287
)
$
—

Net sales
Natural gas swap derivatives
—

—

—

(14
)
Cost of sales and operating expenses
Corn option derivatives
37

323

37

991

Cost of sales and operating expenses
 
(250
)
323

(250
)
977

Total before tax
 
101

(84
)
101

(254
)
Income taxes
 
(149
)
239

(149
)
723

Net of tax
Defined benefit pension plans
 
 
 
 
 
Amortization of prior service cost
$
(9
)
$
(8
)
$
(18
)
$
(17
)
(a)
Amortization of actuarial loss
(1,147
)
(888
)
(2,293
)
(1,776
)
(a)
 
(1,156
)
(896
)
(2,311
)
(1,793
)
Total before tax
 
297

230

594

460

Income taxes
 
(859
)
(666
)
(1,717
)
(1,333
)
Net of tax
Total reclassifications
$
(1,008
)
$
(427
)
$
(1,866
)
$
(610
)
Net of tax

(a)
These items are included in the computation of net periodic pension cost. See Note 14 Employee Benefit Plans for additional information.

The following table presents changes in each component of accumulated other comprehensive income/(loss) as of June 29, 2019 as follows (in thousands):

 
 
Six Months Ended June 29, 2019
 
 
Foreign Currency
Derivative
Defined Benefit
 
 
 
Translation
Instruments
Pension Plans
Total
Accumulated Other Comprehensive Income/(loss) December 29, 2018, attributable to Darling, net of tax
 
$
(270,081
)
$
1,081

$
(35,539
)
$
(304,539
)
Other comprehensive gain/(loss) before reclassifications
 
11,440

1,520

—

12,960

Amounts reclassified from accumulated other comprehensive income/(loss)
 
—

149

1,717

1,866

Net current-period other comprehensive income/(loss)
 
11,440

1,669

1,717

14,826

Noncontrolling interest
 
288

—

—

288

Accumulated Other Comprehensive Income/(loss) June 29, 2019, attributable to Darling, net of tax
 
(258,929
)
$
2,750

$
(33,822
)
$
(290,001
)