Business Segments

12 Months Ended

Jan. 02, 2021

Segment Reporting [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

The Company sells its products domestically and internationally and operates within three industry segments: Feed Ingredients, Food Ingredients and Fuel Ingredients. The measure of segment profit (loss) includes all revenues, operating expenses (excluding certain amortization of intangibles), and selling, general and administrative expenses incurred at all operating locations and excludes general corporate expenses.

Included in corporate activities are general corporate expenses and the amortization of intangibles. Assets of corporate activities include cash, unallocated prepaid expenses, deferred tax assets, prepaid pension, and miscellaneous other assets.

Feed Ingredients

Feed Ingredients consists principally of (i) the Company's U.S. ingredients business, including the Company's fats and proteins, used cooking oil, trap grease, the Rothsay ingredients business, and the ingredients and specialty products businesses conducted by Darling Ingredients International under the Sonac name (proteins, fats, and blood products) and (ii) the Company's bakery residuals business. Feed Ingredients operations process animal by-products and used cooking oil into fats, proteins and hides.

Food Ingredients

Food Ingredients consists principally of (i) the collagen business conducted by Darling Ingredients International under the Rousselot name, (ii) the natural casings and meat-by-products business conducted by Darling Ingredients International under the CTH name and (iii) certain specialty products businesses conducted by Darling Ingredients International under the Sonac name.

Fuel Ingredients

The Company's Fuel Ingredients segment consists of (i) the Company's investment in the DGD Joint Venture and (ii) the bioenergy business conducted by Darling Ingredients International under the Ecoson and Rendac names.

Business Segments (in thousands):

	Feed Ingredients		Food Ingredients		Fuel Ingredients		Corporate		Total
Fiscal Year Ended January 2, 2021
Net Sales	$	2,072,104	$	1,185,701	$	314,118	$	—	$	3,571,923
Cost of sales and operating expenses	1,544,524		920,682		223,609		—		2,688,815
Gross Margin	527,580		265,019		90,509		—		883,108
Loss (gain) on sale of assets	19		482		(75)		—		426
Selling, general and administrative expense	209,748		97,406		16,014		55,328		378,496
Restructuring and asset impairment charges	—		—		38,167		—		38,167
Depreciation and amortization	221,187		83,752		34,218		11,021		350,178
Equity in net income of Diamond Green Diesel	—		—		315,095		—		315,095
Segment operating income/(loss)	96,626		83,379		317,280		(66,349)		430,936
Equity in net income of other unconsolidated subsidiaries	3,193		—		—		—		3,193
Segment income/(loss)	99,819		83,379		317,280		(66,349)		434,129
Total other expense									(80,510)
Income before income taxes									$	353,619
Segment assets at January 2, 2021	$	2,708,922	$	1,335,769	$	1,160,132	$	408,508	$	5,613,331

	Feed Ingredients		Food Ingredients		Fuel Ingredients		Corporate		Total
Fiscal Year Ended December 28, 2019
Net Sales	$	1,970,561	$	1,119,085	$	274,259	$	—	$	3,363,905
Cost of sales and operating expenses	1,519,596		864,618		204,871		—		2,589,085
Gross Margin	450,965		254,467		69,388		—		774,820
Loss/(gain) on sale of assets	(7,720)		(13,175)		313		—		(20,582)
Selling, general and administrative expense	200,487		97,363		2,762		57,911		358,523
Depreciation and amortization	203,456		79,671		31,946		10,437		325,510
Equity in net income of Diamond Green Diesel	—		—		364,452		—		364,452
Segment operating income/(loss)	54,742		90,608		398,819		(68,348)		475,821
Equity in net income of unconsolidated subsidiaries	428		—		—		—		428
Segment income/(loss)	55,170		90,608		398,819		(68,348)		476,249
Total other expense									(95,815)
Income before income taxes									$	380,434
Segment assets at December 28, 2019	$	2,653,363	$	1,345,526	$	1,087,701	$	258,668	$	5,345,258

	Feed Ingredients		Food Ingredients		Fuel Ingredients		Corporate		Total
Fiscal Year Ended December 29, 2018
Net Sales	$	1,952,555	$	1,139,126	$	296,045	$	—	$	3,387,726
Cost of sales and operating expenses	1,497,973		918,141		230,260		—		2,646,374
Gross Margin	454,582		220,985		65,785		—		741,352
Loss/(gain) on sale of assets	725		(282)		266		—		709
Selling, general and administrative expense	176,722		91,546		(4,770)		45,766		309,264
Restructuring and asset impairment charges	—		14,965		—		—		14,965
Depreciation and amortization	194,292		80,988		34,981		10,931		321,192
Equity in net income of Diamond Green Diesel	—		—		159,779		—		159,779
Segment operating income/(loss)	82,843		33,768		195,087		(56,697)		255,001
Equity in net loss of unconsolidated subsidiaries	(550)		—		—		—		(550)
Segment income/(loss)	82,293		33,768		195,087		(56,697)		254,451
Total other expense									(136,476)
Income before income taxes									$	117,975

 Business Segment Property, Plant and Equipment (in thousands):

	January 2, 2021		December 28, 2019		December 29, 2018
Capital expenditures:
Feed Ingredients	$	176,530	$	229,415	$	237,215
Food Ingredients	68,250		85,501		51,659
Fuel Ingredients	30,638		23,964		27,121
Corporate Activities	4,697		20,618		5,901
Total (a)	$	280,115	$	359,498	$	321,896

(a)    Excludes capital assets acquired by acquisition in fiscal 2020 and fiscal 2018 of approximately $18.4 million and $31.6 million, respectively.

Long-lived assets related to the Company's operations in North America, Europe, China, South American and other were as follows (in thousands):

	FY 2020		FY 2019
	Long-Lived Assets		Long-Lived Assets
North America	$	3,056,047	$	2,991,537
Europe	1,357,070		1,228,807
China	127,549		124,874
South America	74,720		73,477
Other	10,951		9,275
Total	$	4,626,337	$	4,427,970