XML 40 R30.htm IDEA: XBRL DOCUMENT v3.20.2
Guarantor Financial Information
 9 Months Ended
Sep. 26, 2020
Guarantor Financial Information [Abstract]  
Guarantor Financial Information Guarantor Financial InformationThe Company's 5.25% Notes and 3.625% Notes (see Note 10 (Debt) to the Company's Consolidated Financial Statements included herein) are guaranteed on a senior unsecured basis by the following Notes Guarantors, each of which is a 100% directly or indirectly owned subsidiary of Darling and which constitute all of Darling's existing restricted subsidiaries that are Credit Agreement Guarantors (other than Darling's foreign subsidiaries, Darling Global Finance B.V., which issued the 3.625% Notes and is discussed further below, or any receivables entity): Darling National LLC, Griffin Industries LLC and its subsidiary Craig Protein Division, Inc., Darling Global Holdings Inc., Rousselot Inc., Rousselot Dubuque Inc., Sonac USA LLC and Rousselot Peabody Inc. In addition, the 3.625% Notes, which were issued by Darling Global Finance B.V., a wholly-owned indirect subsidiary of Darling, are guaranteed on a senior unsecured basis by Darling. The Notes Guarantors, and Darling in the case of the 3.625% Notes, fully and unconditionally guaranteed the 5.25% Notes and 3.625% Notes on a joint and several basis. The following financial statements present condensed consolidated financial data for (i) Darling, (ii) the combined Notes Guarantors, (iii) the combined other subsidiaries of the Company that did not guarantee the 5.25% Notes or the 3.625% Notes (the “Non-guarantors”), and (iv) eliminations necessary to arrive at the Company's consolidated financial statements, which include condensed consolidated balance sheets as of September 26, 2020 and December 28, 2019, and the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive income/(loss) for the three and nine months ended September 26, 2020 and September 28, 2019 and the condensed consolidated statements of cash flows for the nine months ended September 26, 2020 and September 28, 2019. Separate financial information is not presented for Darling Global Finance B.V. since it was formed as a special purpose finance subsidiary for the purpose of issuing euro-denominated notes such as the 3.625% Notes and therefore does not have any substantial operations or assets.
Condensed Consolidated Balance Sheet
As of September 26, 2020
(in thousands)

ParentGuarantorsNon-guarantorsEliminationsConsolidated
ASSETS
Cash and cash equivalents$717 $24 $65,104 $— $65,845 
Restricted cash103 — 7 — 110 
Accounts receivable39,557 738,574 732,110 (1,136,658)373,583 
Inventories22,371 96,942 287,492 — 406,805 
Income taxes refundable1,557 — 2,383 — 3,940 
Prepaid expenses27,212 2,496 22,651 — 52,359 
Other current assets3,257 (4,072)34,502 (5,155)28,532 
Total current assets94,774 833,964 1,144,249 (1,141,813)931,174 
Investment in subsidiaries5,739,060 1,283,699 844,045 (7,866,804)— 
Property, plant and equipment, net432,303 512,587 844,282 — 1,789,172 
Intangible assets, net40,172 148,029 286,592 — 474,793 
Goodwill49,902 490,748 698,693 — 1,239,343 
Investment in unconsolidated subsidiaries— — 742,875 — 742,875 
Operating lease right-of-use asset85,490 30,174 26,605 — 142,269 
Other assets39,192 134 99,320 (93,048)45,598 
Deferred taxes— — 15,762 — 15,762 
 $6,480,893 $3,299,335 $4,702,423 $(9,101,665)$5,380,986 
LIABILITIES AND STOCKHOLDERS’ EQUITY   
Current portion of long-term debt$6,503 $11 $24,826 $(5,155)$26,185 
Accounts payable1,166,310 26,363 150,976 (1,136,651)206,998 
Income taxes payable2,118 — 16,895 — 19,013 
Current operating lease liability21,679 10,752 8,542 — 40,973 
Accrued expenses107,147 28,786 194,459 (7)330,385 
Total current liabilities1,303,757 65,912 395,698 (1,141,813)623,554 
Long-term debt, net of current portion947,431 22 593,614 (93,048)1,448,019 
Long-term operating lease liability69,276 19,158 17,387 — 105,821 
Other noncurrent liabilities68,474 — 34,085 — 102,559 
Deferred income taxes144,236 — 121,608 — 265,844 
 Total liabilities
2,533,174 85,092 1,162,392 (1,234,861)2,545,797 
Total stockholders’ equity3,947,719 3,214,243 3,540,031 (7,866,804)2,835,189 
 $6,480,893 $3,299,335 $4,702,423 $(9,101,665)$5,380,986 
Condensed Consolidated Balance Sheet
As of December 28, 2019
(in thousands)

ParentGuarantorsNon-guarantorsEliminationsConsolidated
ASSETS
Cash and cash equivalents$551 $26 $72,358 $— $72,935 
Restricted cash103 — 7 — 110 
Accounts receivable51,097 702,945 518,614 (866,318)406,338 
Inventories26,893 86,609 249,455 — 362,957 
Income taxes refundable1,106 — 2,211 — 3,317 
Prepaid expenses20,888 2,241 23,470 — 46,599 
Other current assets5,399 (2,326)40,872 (18,913)25,032 
Total current assets106,037 789,495 906,987 (885,231)917,288 
Investment in subsidiaries5,365,956 1,366,635 844,043 (7,576,634)— 
Property, plant and equipment, net434,237 524,577 843,597 — 1,802,411 
Intangible assets, net44,404 170,581 311,409 — 526,394 
Goodwill49,902 490,748 682,641 — 1,223,291 
Investment in unconsolidated subsidiaries— — 689,354 — 689,354 
Operating lease right-of-use asset74,005 31,243 19,478 — 124,726 
Other assets35,456 134 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 payable893,490 29,535 182,484 (866,257)239,252 
Income taxes payable(10)— 8,905 — 8,895 
Current operating lease liability20,454 10,510 6,841 — 37,805 
Accrued expenses116,758 32,861 161,833 (61)311,391 
Total current liabilities1,071,608 72,916 429,046 (885,231)688,339 
Long-term debt, net of current portion1,040,974 30 567,589 (50,164)1,558,429 
Long-term operating lease liability58,970 20,281 12,173 — 91,424 
Other noncurrent liabilities80,409 — 35,376 — 115,785 
Deferred income taxes122,109 — 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 Consolidated Statements of Operations
For the three months ended September 26, 2020
(in thousands)

ParentGuarantorsNon-guarantorsEliminationsConsolidated
Net sales$173,659 $309,837 $416,297 $(49,224)$850,569 
Cost and expenses:
Cost of sales and operating expenses
134,887 249,004 303,701 (49,224)638,368 
Loss/(gain) on sale of assets89 119 (86)— 122 
Selling, general and administrative expenses42,103 11,520 36,370 — 89,993 
Depreciation and amortization17,167 26,362 42,201 — 85,730 
Total costs and expenses194,246 287,005 382,186 (49,224)814,213 
Equity in net income of Diamond Green Diesel— — 91,099 — 91,099 
Operating income/(loss)(20,587)22,832 125,210 — 127,455 
   
Interest expense(13,152)(37)(5,604)— (18,793)
Foreign currency gains/(losses)(93)3 (1,149)— (1,239)
Other expense, net(1,336)(562)(14)— (1,912)
Equity in net income of other unconsolidated subsidiaries
— — 906 — 906 
Earnings in investments in subsidiaries135,357 — — (135,357)— 
Income/(loss) before taxes100,189 22,236 119,349 (135,357)106,417 
Income tax expense/(benefit)(936)360 5,388 — 4,812 
Net income attributable to noncontrolling interests
— — (480)— (480)
Net income/(loss) attributable to Darling
$101,125 $21,876 $113,481 $(135,357)$101,125 


Condensed Consolidated Statements of Operations
For the nine months ended September 26, 2020
(in thousands)

ParentGuarantorsNon-guarantorsEliminationsConsolidated
Net sales$540,493 $930,788 $1,225,680 $(144,877)$2,552,084 
Cost and expenses:
Cost of sales and operating expenses
419,771 741,292 901,437 (144,877)1,917,623 
Loss/(gain) on sale of assets127 174 (91)— 210 
Selling, general and administrative expenses135,114 35,061 106,204 — 276,379 
Depreciation and amortization51,428 79,178 123,105 — 253,711 
Total costs and expenses606,440 855,705 1,130,655 (144,877)2,447,923 
Equity in net income of Diamond Green Diesel— — 252,411 — 252,411 
Operating income/(loss)(65,947)75,083 347,436 — 356,572 
   
Interest expense(39,378)(139)(16,286)— (55,803)
Foreign currency losses(603)(22)(84)— (709)
Other expense, net(4,076)(1,191)(11)— (5,278)
Equity in net income of other unconsolidated subsidiaries
— — 2,467 — 2,467 
Earnings in investments in subsidiaries346,144 — — (346,144)— 
Income/(loss) before taxes236,140 73,731 333,522 (346,144)297,249 
Income tax expense/(benefit)(15,934)10,680 48,312 — 43,058 
Net income attributable to noncontrolling interests
— — (2,117)— (2,117)
Net income/(loss) attributable to Darling
$252,074 $63,051 $283,093 $(346,144)$252,074 
Condensed Consolidated Statements of Operations
For the three months ended September 28, 2019
(in thousands)

ParentGuarantorsNon-guarantorsEliminationsConsolidated
Net sales$164,488 $330,655 $403,749 $(56,843)$842,049 
Cost and expenses:
Cost of sales and operating expenses
130,498 273,238 306,030 (56,843)652,923 
Gain on sale of assets(86)(2,343)(240)— (2,669)
Selling, general and administrative expenses41,225 12,319 30,005 — 83,549 
Depreciation and amortization15,071 25,317 40,019 — 80,407 
Total costs and expenses186,708 308,531 375,814 (56,843)814,210 
Equity in net income of Diamond Green Diesel— — 32,020 — 32,020 
Operating income/(loss)(22,220)22,124 59,955 — 59,859 
   
Interest expense(13,862)(52)(5,445)— (19,359)
Foreign currency gains/(losses)(30)(4)500 — 466 
Other expense, net(2,026)(431)(157)— (2,614)
Equity in net income/(loss) of other unconsolidated subsidiaries
(1,172)— 507 — (665)
Earnings in investments in subsidiaries52,697 — — (52,697)— 
Income/(loss) before taxes13,387 21,637 55,360 (52,697)37,687 
Income tax expense/(benefit)(12,334)6,472 16,712 — 10,850 
Net income attributable to noncontrolling interests
— — (1,116)— (1,116)
Net income/(loss) attributable to Darling
$25,721 $15,165 $37,532 $(52,697)$25,721 


Condensed Consolidated Statements of Operations
For the nine months ended September 28, 2019
(in thousands)

ParentGuarantorsNon-guarantorsEliminationsConsolidated
Net sales$481,645 $986,390 $1,206,999 $(170,557)$2,504,477 
Cost and expenses:
Cost of sales and operating expenses
384,408 813,491 921,210 (170,557)1,948,552 
Gain on sale of assets(44)(7,331)(13,470)— (20,845)
Selling, general and administrative expenses129,218 35,042 85,309 — 249,569 
Depreciation and amortization43,668 76,594 118,795 — 239,057 
Total costs and expenses557,250 917,796 1,111,844 (170,557)2,416,333 
Equity in net income of Diamond Green Diesel— — 94,390 — 94,390 
Operating income/(loss)(75,605)68,594 189,545 — 182,534 
   
Interest expense(42,967)(108)(17,013)— (60,088)
Debt extinguishment costs(12,126)— — — (12,126)
Foreign currency losses(31)(3)(620)— (654)
Other income/(expense), net(4,878)(2,407)127 — (7,158)
Equity in net income/(loss) of other unconsolidated subsidiaries
(3,090)— 2,003 — (1,087)
Earnings in investments in subsidiaries176,004 — — (176,004)— 
Income/(loss) before taxes37,307 66,076 174,042 (176,004)101,421 
Income tax expense/(benefit)(32,684)15,571 41,013 — 23,900 
Net income attributable to noncontrolling interests
— — (7,530)— (7,530)
Net income/(loss) attributable to Darling
$69,991 $50,505 $125,499 $(176,004)$69,991 
Condensed Consolidated Statements of Comprehensive Income/(Loss)
For the three months ended September 26, 2020
(in thousands)

ParentGuarantorsNon-guarantorsEliminationsConsolidated
Net income/(loss)
$101,605 $21,876 $113,481 $(135,357)$101,605 
Other comprehensive income/(loss), net of tax:
Foreign currency translation(732)— 38,586 — 37,854 
Pension adjustments518 — 130 — 648 
Corn option derivative adjustments
(2,518)— — — (2,518)
Heating oil derivative adjustments
— — 1,494 — 1,494 
Foreign exchange derivative adjustments
— — 1,412 — 1,412 
Total other comprehensive income/(loss), net of tax
(2,732)— 41,622 — 38,890 
Total comprehensive income/(loss)
98,873 21,876 155,103 (135,357)140,495 
Total comprehensive income attributable to noncontrolling interest— — 456 — 456 
Total comprehensive income/(loss) attributable to Darling
$98,873 $21,876 $154,647 $(135,357)$140,039 



Condensed Consolidated Statements of Comprehensive Income/(Loss)
For the nine months ended September 26, 2020
(in thousands)

ParentGuarantorsNon-guarantorsEliminationsConsolidated
Net income/(loss)
$254,191 $63,051 $283,093 $(346,144)$254,191 
Other comprehensive income/ (loss), net of tax:
Foreign currency translation(1,445)(128,994)123,196 — (7,243)
Pension adjustments1,554 — 389 — 1,943 
Corn option derivative adjustments
(578)— — — (578)
Heating oil derivative adjustments
— — 3,424 — 3,424 
Foreign exchange derivative adjustments
— — (2,060)— (2,060)
Total other comprehensive income/(loss), net of tax
(469)(128,994)124,949 — (4,514)
Total comprehensive income/(loss)
253,722 (65,943)408,042 (346,144)249,677 
Total comprehensive income attributable to noncontrolling interest
— — 1,364 — 1,364 
Total comprehensive income/(loss) attributable to Darling
$253,722 $(65,943)$406,678 $(346,144)$248,313 
Condensed Consolidated Statements of Comprehensive Income/(Loss)
For the three months ended September 28, 2019
(in thousands)

ParentGuarantorsNon-guarantorsEliminationsConsolidated
Net income/(loss)
$26,837 $15,165 $37,532 $(52,697)$26,837 
Other comprehensive income/(loss), net of tax:
Foreign currency translation1,328 — (48,954)— (47,626)
Pension adjustments767 — 92 — 859 
Corn option derivative adjustments
553 — — — 553 
Heating oil derivative adjustments
— — (1,683)— (1,683)
Foreign exchange derivative adjustment
— — (4,944)— (4,944)
Total other comprehensive income/(loss), net of tax
2,648 — (55,489)— (52,841)
Total comprehensive income/(loss)
29,485 15,165 (17,957)(52,697)(26,004)
Total comprehensive income attributable to noncontrolling interest
— — 1,120 — 1,120 
Total comprehensive income/(loss) attributable to Darling
$29,485 $15,165 $(19,077)$(52,697)$(27,124)



Condensed Consolidated Statements of Comprehensive Income/(Loss)
For the nine months ended September 28, 2019
(in thousands)

ParentGuarantorsNon-guarantorsEliminationsConsolidated
Net income/(loss)
$77,521 $50,505 $125,499 $(176,004)$77,521 
Other comprehensive income/(loss), net of tax:
Foreign currency translation1,509 — (37,695)— (36,186)
Pension adjustments2,300 — 276 — 2,576 
Corn option derivative adjustments
575 — — — 575 
Heating oil derivative adjustments
— — 450 — 450 
Foreign exchange derivative adjustments
— — (5,430)— (5,430)
Total other comprehensive income/(loss), net of tax4,384 — (42,399)— (38,015)
Total comprehensive income/(loss)
81,905 50,505 83,100 (176,004)39,506 
Total comprehensive income attributable to noncontrolling interest— — 7,822 — 7,822 
Total comprehensive income/(loss) attributable to Darling
$81,905 $50,505 $75,278 $(176,004)$31,684 
Condensed Consolidated Statements of Cash Flows
For the nine months ended September 26, 2020
(in thousands)

ParentGuarantorsNon-guarantorsEliminationsConsolidated
Cash flows from operating activities:
Net income/(loss)$254,191 $63,051 $283,093 $(346,144)$254,191 
Earnings in investments in subsidiaries(346,144)— — 346,144 — 
Other operating cash flows357,187 (16,471)(124,494)— 216,222 
Net cash provided by operating activities265,234 46,580 158,599 — 470,413 
Cash flows from investing activities:
Capital expenditures(44,730)(46,848)(93,341)— (184,919)
Investment in subsidiaries and affiliates(18,784)— — 18,784 — 
Note receivable from affiliates42,884 — (42,884)— — 
Gross proceeds from sale of property, plant and equipment and other assets
30 273 988 — 1,291 
Payments related to routes and other intangibles
(3,416)— (296)— (3,712)
Net cash provided/(used) in investing activities
(24,016)(46,575)(135,533)18,784 (187,340)
Cash flows from financing activities:
Proceeds for long-term debt— — 24,085 — 24,085 
Payments on long-term debt(145,003)(7)(26,630)— (171,640)
Borrowings from revolving facilities248,000 — 142,971 — 390,971 
Payments on revolving facilities(272,000)— (143,800)— (415,800)
Net cash overdraft financing(5,417)— (27,968)— (33,385)
Deferred loan costs(3,688)— — — (3,688)
Issuances of common stock67 — — — 67 
Repurchase of treasury stock
(55,044)— — — (55,044)
Contributions from parent
— — 18,784 (18,784)— 
Minimum withholding taxes paid on stock awards
(7,967)— (13)— (7,980)
    Acquisition of noncontrolling interest— — (8,784)— (8,784)
    Distributions to noncontrolling interests— — (6,253)— (6,253)
Net cash used in financing activities(241,052)(7)(27,608)(18,784)(287,451)
Effect of exchange rate changes on cash
— — (2,712)— (2,712)
Net increase/(decrease) in cash, cash equivalents and restricted cash
166 (2)(7,254)— (7,090)
Cash, cash equivalents and restricted cash at beginning of period
654 26 72,365 — 73,045 
Cash, cash equivalents and restricted cash at end of period
$820 $24 $65,111 $— $65,955 
Condensed Consolidated Statements of Cash Flows
For the nine months ended September 28, 2019
(in thousands)

ParentGuarantorsNon-guarantorsEliminationsConsolidated
Cash flows from operating activities:
Net income/(loss)$77,521 $50,505 $125,499 $(176,004)$77,521 
Earnings in investments in subsidiaries(176,004)— — 176,004 — 
Other operating cash flows189,575 (2,763)(1,651)— 185,161 
Net cash provided by operating activities91,092 47,742 123,848 — 262,682 
Cash flows from investing activities:
Capital expenditures(88,639)(61,337)(95,116)— (245,092)
Acquisitions
(1,157)— (274)— (1,431)
Investment in subsidiaries and affiliates
(2,393)(393)— 786 (2,000)
Note receivable from affiliates
38,274 — (38,274)— — 
Gross proceeds from sale of property, plant and equipment and other assets
380 12,223 2,799 — 15,402 
Proceeds from insurance settlements— 1,371 — — 1,371 
Payments related to routes and other intangibles(131)— (3,019)— (3,150)
Net cash provided/(used) in investing activities(53,666)(48,136)(133,884)786 (234,900)
Cash flows from financing activities:
Proceeds for long-term debt500,000 — 11,985 — 511,985 
Payments on long-term debt(545,872)(5)(20,230)— (566,107)
Borrowings from revolving credit facility176,000 — 149,485 — 325,485 
Payments on revolving credit facility(152,000)— (180,884)— (332,884)
Net cash overdraft financing5,951 — 21,907 — 27,858 
Deferred loan costs(7,027)— — — (7,027)
Issuances of common stock39 — — — 39 
Repurchase of treasury stock
(11,740)— — — (11,740)
Contributions from parent
— 393 393 (786)— 
Minimum withholding taxes paid on stock awards
(3,230)— (17)— (3,247)
Distributions to noncontrolling interests
— — (4,500)— (4,500)
Net cash provided/(used) in financing activities(37,879)388 (21,861)(786)(60,138)
Effect of exchange rate changes on cash— — (5,732)— (5,732)
Net decrease in cash, cash equivalents and restricted cash(453)(6)(37,629)— (38,088)
Cash, cash equivalents and restricted cash at beginning of period
1,098 32 106,239 — 107,369 
Cash, cash equivalents and restricted cash at end of period
$645 $26 $68,610 $— $69,281