Guarantor Financial Information (Tables)

12 Months Ended

Dec. 28, 2019

Guarantor Financial Information [Abstract]

Guarantor Financial Information Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

As of December 28, 2019

(in thousands)

	Parent			Guarantors			Non-guarantors		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	551		$	26		$	72,358	$	—		$	72,935
Restricted cash	103			—			7		—			110
Accounts receivable, net	51,097			702,945			518,614		(866,318		)	406,338
Inventories	26,893			86,609			249,455		—			362,957
Income taxes refundable	1,106			—			2,211		—			3,317
Prepaid expenses	20,888			2,241			23,470		—			46,599
Other current assets	5,399			(2,326		)	40,872		(18,913		)	25,032
Total current assets	106,037			789,495			906,987		(885,231		)	917,288
Investment in subsidiaries	5,365,956			1,366,635			844,043		(7,576,634		)	—
Property, plant and equipment, net	434,237			524,577			843,597		—			1,802,411
Intangible assets, net	44,404			170,581			311,409		—			526,394
Goodwill	49,902			490,748			682,641		—			1,223,291
Investment in unconsolidated subsidiaries	—			—			689,354		—			689,354
Operating lease right-of-use asset	74,005			31,243			19,478		—			124,726
Other assets	35,456			134			61,974		(50,164		)	47,400
Deferred income taxes	—			—			14,394		—			14,394
	$	6,109,997		$	3,373,413		$	4,373,877	$	(8,512,029	)	$	5,345,258
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	$	40,916		$	10		$	68,983	$	(18,913	)	$	90,996
Accounts payable	893,490			29,535			182,484		(866,257		)	239,252
Income taxes payable	(10		)	—			8,905		—			8,895
Current operating lease liability	20,454			10,510			6,841		—			37,805
Accrued expenses	116,758			32,861			161,833		(61		)	311,391
Total current liabilities	1,071,608			72,916			429,046		(885,231		)	688,339
Long-term debt, net of current portion	1,040,974			30			567,589		(50,164		)	1,558,429
Long-term operating lease liability	58,970			20,281			12,173		—			91,424
Other noncurrent liabilities	80,409			—			35,376		—			115,785
Deferred income taxes	122,109			—			125,822		—			247,931
Total liabilities	2,374,070			93,227			1,170,006		(935,395		)	2,701,908
Total stockholders' equity	3,735,927			3,280,186			3,203,871		(7,576,634		)	2,643,350
	$	6,109,997		$	3,373,413		$	4,373,877	$	(8,512,029	)	$	5,345,258

Condensed Consolidating Balance Sheet

As of December 29, 2018

(in thousands)

	Parent			Guarantors			Non-guarantors		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	995		$	32		$	106,235	$	—		$	107,262
Restricted cash	103			—			4		—			107
Accounts receivable, net	56,113			619,628			461,005		(751,009		)	385,737
Inventories	23,752			83,261			234,015		—			341,028
Income taxes refundable	2,851			—			3,611		—			6,462
Prepaid expenses	12,890			2,936			19,421		—			35,247
Other current assets	2,680			(1,418		)	20,837		—			22,099
Total current assets	99,384			704,439			845,128		(751,009		)	897,942
Investment in subsidiaries	4,880,193			1,366,126			844,044		(7,090,363		)	—
Property, plant and equipment, net	375,824			503,130			808,904		—			1,687,858
Intangible assets, net	50,132			200,936			344,794		—			595,862
Goodwill	49,506			490,748			688,905		—			1,229,159
Investment in unconsolidated subsidiary	13,969			—			396,208		—			410,177
Other assets	39,395			138			13,842		—			53,375
Deferred income taxes	—			—			14,981		—			14,981
	$	5,508,403		$	3,265,517		$	3,956,806	$	(7,841,372	)	$	4,889,354
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	$	3,558		$	5		$	3,929	$	—		$	7,492
Accounts payable	783,406			24,388			162,678		(750,993		)	219,479
Income tax payable	(10		)	—			4,053		—			4,043
Accrued expenses	107,572			33,387			168,541		(16		)	309,484
Total current liabilities	894,526			57,780			339,201		(751,009		)	540,498
Long-term debt, net of current portion	1,019,130			18			647,792		—			1,666,940
Other noncurrent liabilities	78,589			—			36,443		—			115,032
Deferred income taxes	95,710			—			135,353		—			231,063
Total liabilities	2,087,955			57,798			1,158,789		(751,009		)	2,553,533
Total stockholders' equity	3,420,448			3,207,719			2,798,017		(7,090,363		)	2,335,821
	$	5,508,403		$	3,265,517		$	3,956,806	$	(7,841,372	)	$	4,889,354

Guarantor Financial Information Condensed Consolidating Statements Of Operations

Condensed Consolidating Statements of Operations

For the year ended December 28, 2019

(in thousands) 

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	652,708		$	1,305,464		$	1,637,861		$	(232,128	)	$	3,363,905
Cost and expenses:
Cost of sales and operating expenses	515,286			1,078,247			1,227,680			(232,128		)	2,589,085
Loss (gain) on sale of assets	(403		)	(7,356		)	(12,823		)	—			(20,582		)
Selling, general and administrative expenses	187,851			43,855			126,817			—			358,523
Depreciation and amortization	61,777			104,247			159,486			—			325,510
Total costs and expenses	764,511			1,218,993			1,501,160			(232,128		)	3,252,536
Equity in net income of Diamond Green Diesel	—			—			364,452			—			364,452
Operating income/(loss)	(111,803		)	86,471			501,153			—			475,821
Interest expense	(56,240		)	(167		)	(22,267		)	—			(78,674		)
Debt extinguishment costs	(12,126		)	—			—			—			(12,126		)
Foreign currency gains/(losses)	(306		)	4			(1,009		)	—			(1,311		)
Gain on disposal of subsidiaries	—			—			2,967			—			2,967
Other income/(expense), net	(5,828		)	(880		)	37			—			(6,671		)
Equity in net income/(loss) of other unconsolidated subsidiaries	(2,425		)	—			2,853			—			428
Earnings in investments in subsidiaries	471,827			—			—			(471,827		)	—
Income/(loss) from operations before taxes	283,099			85,428			483,734			(471,827		)	380,434
Income taxes (benefit)	(29,501		)	13,354			75,614			—			59,467
Net income attributable to noncontrolling interests	—			—			(8,367		)	—			(8,367		)
Net income/(loss) attributable to Darling	$	312,600		$	72,074		$	399,753		$	(471,827	)	$	312,600

Condensed Consolidating Statements of Operations

For the year ended December 29, 2018

(in thousands) 

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	541,499		$	1,338,376		$	1,738,427		$	(230,576	)	$	3,387,726
Cost and expenses:
Cost of sales and operating expenses	422,028			1,080,420			1,374,502			(230,576		)	2,646,374
Loss (gain) on sale of assets	(86		)	(184		)	979			—			709
Selling, general and administrative expenses	149,715			46,199			113,350			—			309,264
Restructuring and impairment charges	—			—			14,965			—			14,965
Depreciation and amortization	48,941			107,581			164,670			—			321,192
Total costs and expenses	620,598			1,234,016			1,668,466			(230,576		)	3,292,504
Equity in net income of Diamond Green Diesel	—			—			159,779			—			159,779
Operating income/(loss)	(79,099		)	104,360			229,740			—			255,001
Interest expense	(56,832		)	7,397			(36,994		)	—			(86,429		)
Debt extinguishment costs	(15,635		)	—			(7,874		)	—			(23,509		)
Foreign currency gains/(losses)	(431		)	(103		)	(5,897		)	—			(6,431		)
Gain/(loss) on sale of subsidiaries	(15,583		)	—			3,038			—			(12,545		)
Other income/(expense), net	(18,487		)	(1,019		)	11,944			—			(7,562		)
Equity in net income/(loss) of unconsolidated subsidiaries	(2,622		)	—			2,072			—			(550		)
Earnings in investments in subsidiaries	270,943			—			—			(270,943		)	—
Income/(loss) from operations before taxes	82,254			110,635			196,029			(270,943		)	117,975
Income taxes (benefit)	(19,242		)	11,282			19,991			—			12,031
Net income attributable to noncontrolling interests	—			—			(4,448		)	—			(4,448		)
Net income/(loss) attributable to Darling	$	101,496		$	99,353		$	171,590		$	(270,943	)	$	101,496

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	429,983			1,198,528			1,488,841			(241,672		)	2,875,680
Loss (gain) on sale of assets	(302		)	(257		)	322			—			(237		)
Selling, general and administrative expenses	150,880			55,053			137,569			—			343,502
Depreciation and amortization	42,366			106,406			153,328			—			302,100
Total costs and expenses	622,927			1,359,730			1,780,060			(241,672		)	3,521,045
Equity in net income of Diamond Green Diesel	—			—			28,239			—			28,239
Operating income/(loss)	(77,228		)	105,190			141,483			—			169,445
Interest expense	(55,336		)	15,818			(49,408		)	—			(88,926		)
Foreign currency gains/(losses)	(234		)	114			(6,778		)	—			(6,898		)
Loss on sale of subsidiaries	—			—			(885		)	—			(885		)
Other income/(expense), net	(14,651		)	37			5,813			—			(8,801		)
Equity in net income/(loss) of unconsolidated subsidiary	(1,847		)	—			2,112			—			265
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 attributable to noncontrolling interests	—			—			(4,886		)	—			(4,886		)
Net income/(loss) attributable to Darling	$	128,468		$	251,667		$	186,913		$	(438,580	)	$	128,468

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

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the year ended December 28, 2019

(in thousands)

	Parent		Guarantors		Non-guarantors			Eliminations			Consolidated
Net income	$	320,967	$	72,074	$	399,753		$	(471,827	)	$	320,967
Other comprehensive income/(loss), net of tax:
Foreign currency translation	837		—		(12,771		)	—			(11,934		)
Pension adjustments	4,287		—		(2,752		)	—			1,535
Corn option derivative adjustments	278		—		—			—			278
Heating oil derivative adjustments	—		—		(3,141		)	—			(3,141		)
Foreign exchange derivative adjustments	—		—		(3,723		)	—			(3,723		)
Total other comprehensive income/(loss), net of tax	5,402		—		(22,387		)	—			(16,985		)
Total comprehensive income/(loss)	326,369		72,074		377,366			(471,827		)	303,982
Comprehensive income attributable to noncontrolling interests	—		—		8,690			—			$	8,690
Comprehensive income/(loss) attributable to Darling	$	326,369	$	72,074	$	368,676		$	(471,827	)	$	295,292

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the year ended December 29, 2018

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net income	$	105,944		$	99,353		$	171,590		$	(270,943	)	$	105,944
Other comprehensive income/(loss), net of tax:
Foreign currency translation	1,724			(53,387		)	(35,811		)	—			(87,474		)
Pension adjustments	(4,184		)	—			1,454			—			(2,730		)
Natural gas swap derivative adjustments	23			—			—			—			23
Corn option derivative adjustments	(1,687		)	—			—			—			(1,687		)
Foreign exchange derivative adjustments	—			—			1,081			—			1,081
Total other comprehensive income, net of tax	(4,124		)	(53,387		)	(33,276		)	—			(90,787		)
Total comprehensive income/(loss)	$	101,820		$	45,966		$	138,314		$	(270,943	)	$	15,157
Comprehensive income attributable to noncontrolling interests	—			—			3,894			—			3,894
Comprehensive income/(loss) attributable to Darling	$	101,820		$	45,966		$	134,420		$	(270,943	)	$	11,263

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/(loss), 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

Guarantor Financial Information Condensed Consolidating Statements Of Cash Flows

Condensed Consolidating Statements of Cash Flows

For the year ended December 28, 2019

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	320,967		$	72,074		$	399,753		$	(471,827	)	$	320,967
Earnings in investments in subsidiaries	(471,827		)	—			—			471,827			—
Other operating cash flows	244,255			5,020			(207,621		)	—			41,654
Net cash provided by operating activities	93,395			77,094			192,132			—			362,621
Cash flows from investing activities:
Capital expenditures	(113,632		)	(94,659		)	(151,207		)	—			(359,498		)
Acquisitions, net of cash acquired	(1,157		)	—			(274		)	—			(1,431		)
Investment in subsidiaries and affiliates	(2,393		)	(393		)	—			786			(2,000		)
Proceeds from sale of investment in subsidiary	—			—			3,671			—			3,671
Note receivable from affiliates	50,164			—			(50,164		)	—			—
Gross proceeds from sale of property, plant and equipment and other assets	1,034			12,459			4,742			—			18,235
Proceeds from insurance settlements	1,493			5,107			—			—			6,600
Payments related to routes and other intangibles	(131		)	—			(3,520		)	—			(3,651		)
Net cash provide/(used) in investing activities	(64,622		)	(77,486		)	(196,752		)	786			(338,074		)
Cash flows from financing activities:
Proceeds from long-term debt	500,000			—			17,606			—			517,606
Payments on long-term debt	(545,872		)	(7		)	(35,284		)	—			(581,163		)
Borrowings from revolving credit facility	281,000			—			188,227			—			469,227
Payments on revolving credit facility	(242,000		)	—			(219,669		)	—			(461,669		)
Net overdraft financing	8,358			—			30,009			—			38,367
Deferred loan costs	(7,027		)	—			—			—			(7,027		)
Issuance of common stock	39			—			—			—			39
Repurchase of common stock	(19,260		)	—			—			—			(19,260		)
Contributions from parent	—			393			393			(786		)	—
Minimum withholding taxes paid on stock awards	(4,455		)	—			(17		)	—			(4,472		)
Distributions to noncontrolling interests	—			—			(6,533		)	—			(6,533		)
Net cash provided/(used) in financing activities	(29,217		)	386			(25,268		)	(786		)	(54,885		)
Effect of exchange rate changes on cash and cash equivalent	—			—			(3,986		)	—			(3,986		)
Net increase/(decrease) in cash, cash equivalents and restricted cash	(444		)	(6		)	(33,874		)	—			(34,324		)
Cash, cash equivalents and restricted cash at beginning of year	1,098			32			106,239			—			107,369
Cash, cash equivalents and restricted cash at end of year	$	654		$	26		$	72,365		$	—		$	73,045

Condensed Consolidating Statements of Cash Flows

For the year ended December 29, 2018

(in thousands)

	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income/(loss)	$	105,944		$	99,353		$	171,590		$	(270,943	)	$	105,944
Earnings in investments in subsidiaries	(270,943		)	—			—			270,943			—
Other operating cash flows	323,903			(81,561		)	50,329			—			292,671
Net cash provided by operating activities	158,904			17,792			221,919			—			398,615
Cash flows from investing activities:
Capital expenditures	(115,004		)	(90,402		)	(116,490		)	—			(321,896		)
Acquisitions, net of cash acquired	(100,500		)	—			(7,227		)	—			(107,727		)
Investment in subsidiaries and affiliates	(12,250		)	(198,880		)	—			198,880			(12,250		)
Proceeds from sale of investment in subsidiary	79,955			—			2,805			—			82,760
Note receivable from affiliates	—			266,880			(266,880		)	—			—
Gross proceeds from sale of property, plant and equipment and other assets	2,125			1,146			16,057			—			19,328
Proceeds from insurance settlements	750			503			—			—			1,253
Payments related to routes and other intangibles	(299		)	—			(3,584		)	—			(3,883		)
Net cash provided/(used) in investing activities	(145,223		)	(20,753		)	(375,319		)	198,880			(342,415		)
Cash flows from financing activities:
Proceeds from long-term debt	—			—			624,620			—			624,620
Payments on long-term debt	(15,116		)	—			(671,512		)	—			(686,628		)
Borrowings from revolving credit facility	351,000			—			192,898			—			543,898
Payments on revolving credit facility	(351,000		)	—			(159,974		)	—			(510,974		)
Net overdraft financing	3,558			—			(98		)	—			3,460
Deferred loan costs	(824		)	—			(8,844		)	—			(9,668		)
Issuances of common stock	182			—			—			—			182
Contributions from parent	—			—			198,880			(198,880		)	—
Minimum withholding taxes paid on stock awards	(2,210		)	—			(5		)	—			(2,215		)
Distributions to noncontrolling interest	—			—			(10,257		)	—			(10,257		)
Net cash provided/(used) in financing activities	(14,410		)	—			165,708			(198,880		)	(47,582		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(8,165		)	—			(8,165		)
Net increase/(decrease) in cash, cash equivalents and restricted cash	(729		)	(2,961		)	4,143			—			453
Cash, cash equivalents and restricted cash at beginning of year	1,827			2,993			102,096			—			106,916
Cash, cash equivalents and restricted cash at end of year	$	1,098		$	32		$	106,239		$	—		$	107,369

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/(loss)	$	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		)	28,274			—			277,082
Net cash provided/(used) by operating activities	184,076			11,173			215,187			—			410,436
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 provided/(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		)
Borrowing 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		)
Issuances of common stock	22			—			—			—			22
Contributions from parent	—			—			14,945			(14,945		)	—
Minimum withholding taxes paid on stock awards	(3,034		)	—			(15		)	—			(3,049		)
Deductions to noncontrolling interest	—			—			(17,451		)	—			(17,451		)
Distributions to noncontrolling interests	—			—			(5,281		)	—			(5,281		)
Net cash provided/(used) in financing activities	(89,435		)	—			(50,472		)	(14,945		)	(154,852		)
Effect of exchange rate changes on cash and cash equivalents	—			—			20,528			—			20,528
Net increase/(decrease) in cash, cash equivalents and restricted cash	254			(2,761		)	(5,434		)	—			(7,941		)
Cash, cash equivalents and restricted cash at beginning of year	1,573			5,754			107,530			—			114,857
Cash, cash equivalents and restricted cash at end of year	$	1,827		$	2,993		$	102,096		$	—		$	106,916