10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

	(Mark One)
☒	QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended	April 3, 2021
	OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934
	For the transition period from _______ to _______

Commission File Number   001-13323

DARLING INGREDIENTS INC.

(Exact name of registrant as specified in its charter) 

Delaware	36-2495346
(State or other jurisdiction	(I.R.S. Employer
of incorporation or organization)	Identification Number)

 5601 N MacArthur Blvd., Irving, Texas     75038

(Address of principal executive offices)     (Zip Code)

Registrant's telephone number, including area code:  (972) 717-0300

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock $0.01 par value per share	DAR	New York Stock Exchange	(“NYSE”)

    Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.       Yes ☒     No ☐

    Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).        Yes ☒     No ☐

 Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of Exchange Act.			☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes ☐     No ☒

There were 163,172,181 shares of common stock, $0.01 par value, outstanding at May 6, 2021.

DARLING INGREDIENTS INC. AND SUBSIDIARIES

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED APRIL 3, 2021

TABLE OF CONTENTS   

		Page No.
	PART I:  FINANCIAL INFORMATION
Item 1.	FINANCIAL STATEMENTS
	Consolidated Balance Sheets	3
	April 3, 2021 (unaudited) and January 2, 2021
	Consolidated Statements of Operations (unaudited)	4
	Three Months Ended April 3, 2021 and March 28, 2020
	Consolidated Statements of Comprehensive Income/(Loss) (unaudited)	5
	Three Months Ended April 3, 2021 and March 28, 2020
	Consolidated Statement of Stockholders' Equity (unaudited)	6
	Three Months Ended April 3, 2021 and March 28, 2020
	Consolidated Statements of Cash Flows (unaudited)	7
	Three Months Ended April 3, 2021 and March 28, 2020
	Notes to Consolidated Financial Statements (unaudited)	8
Item 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	30
Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	47
Item 4.	CONTROLS AND PROCEDURES	48
	PART II:  OTHER INFORMATION
Item 1.	LEGAL PROCEEDINGS	50
Item 1A.	RISK FACTORS	50
Item 6.	EXHIBITS	50
	Signatures	51

2

DARLING INGREDIENTS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

April 3, 2021 and January 2, 2021

(in thousands, except share data)

	April 3, 2021		January 2, 2021
ASSETS	(unaudited)
Current assets:
Cash and cash equivalents	$	71,199	$	81,617
Restricted cash	177		103
Accounts receivable, less allowance for bad debts of $9,111 at    April 3, 2021 and $10,815 at January 2, 2021	385,663		405,387
Inventories	420,659		405,922
Prepaid expenses	50,251		47,793
Income taxes refundable	3,274		3,883
Other current assets	9,544		42,289
Total current assets	940,767		986,994
Property, plant and equipment, less accumulated depreciation of $1,731,400 at    April 3, 2021 and $1,702,123 at January 2, 2021	1,822,075		1,863,814
Intangible assets, less accumulated amortization of $569,477 at    April 3, 2021 and $568,086 at January 2, 2021	452,539		473,680
Goodwill	1,241,242		1,260,240
Investment in unconsolidated subsidiaries	915,085		804,682
Operating lease right-of-use assets	145,238		146,563
Other assets	59,099		60,682
Deferred income taxes	15,402		16,676
	$	5,591,447	$	5,613,331
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	26,997	$	27,538
Accounts payable, principally trade	245,648		255,340
Income taxes payable	15,627		17,497
Current operating lease liabilities	38,064		39,459
Accrued expenses	311,371		335,471
Total current liabilities	637,707		675,305
Long-term debt, net of current portion	1,417,534		1,480,531
Long-term operating lease liabilities	108,777		109,707
Other non-current liabilities	115,799		117,371
Deferred income taxes	281,684		276,208
Total liabilities	2,561,501		2,659,122
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 250,000,000 shares authorized; 171,519,389 and         169,880,238 shares issued at April 3, 2021 and January 2, 2021,         respectively	1,715		1,699
Additional paid-in capital	1,611,845		1,597,429
Treasury stock, at cost; 8,364,523 and 7,679,849 shares at        April 3, 2021 and January 2, 2021, respectively	(199,851)		(151,710)
Accumulated other comprehensive loss	(295,796)		(252,433)
Retained earnings	1,848,690		1,696,924
Total Darling's stockholders’ equity	2,966,603		2,891,909
Noncontrolling interests	63,343		62,300
Total stockholders' equity	$	3,029,946	$	2,954,209
	$	5,591,447	$	5,613,331

 The accompanying notes are an integral part of these consolidated financial statements.

3

DARLING INGREDIENTS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

Three months ended April 3, 2021 and March 28, 2020

(in thousands, except per share data)

(unaudited)

	Three Months Ended
	April 3, 2021		March 28, 2020
Net sales	$	1,046,716	$	852,842
Costs and expenses:
Cost of sales and operating expenses	772,784		646,908
Loss/(gain) on sale of assets	(64)		61
Selling, general and administrative expenses	97,398		96,193
Restructuring and asset impairment charges	778		—
Depreciation and amortization	78,534		84,671
Total costs and expenses	949,430		827,833
Equity in net income of Diamond Green Diesel	102,225		97,820
Operating income	199,511		122,829
Other expense:
Interest expense	(16,428)		(19,090)
Foreign currency gain/(loss)	(410)		1,664
Other expense, net	(1,159)		(1,881)
Total other expense	(17,997)		(19,307)
Equity in net income of other unconsolidated subsidiaries	612		869
Income before income taxes	182,126		104,391
Income tax expense	28,708		18,300
Net income	153,418		86,091
Net income attributable to noncontrolling interests	(1,652)		(581)
Net income attributable to Darling	$	151,766	$	85,510
Basic income per share	$	0.93	$	0.52
Diluted income per share	$	0.90	$	0.51

The accompanying notes are an integral part of these consolidated financial statements.

4

DARLING INGREDIENTS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

Three months ended April 3, 2021 and March 28, 2020

(in thousands)

(unaudited)

	Three Months Ended
	April 3, 2021		March 28, 2020
Net income	$	153,418	$	86,091
Other comprehensive income/(loss), net of tax:
Foreign currency translation	(38,222)		(65,236)
Pension adjustments	792		648
Soybean meal derivative adjustments	(257)		—
Corn option derivative adjustments	(800)		136
Heating oil derivative adjustments	3,464		10,870
Foreign exchange derivative adjustments	(6,806)		(9,151)
Total other comprehensive loss, net of tax	(41,829)		(62,733)
Total comprehensive income	$	111,589	$	23,358
Comprehensive income attributable to noncontrolling interests	3,186		492
Comprehensive income attributable to Darling	$	108,403	$	22,866

The accompanying notes are an integral part of these consolidated financial statements.

5

DARLING INGREDIENTS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

Three months ended April 3, 2021 and March 28, 2020

(in thousands, except share data)

(unaudited)

	Common Stock
	Number of Outstanding Shares	$0.01 par Value		Additional Paid-In Capital		Treasury Stock		Accumulated Other Comprehensive Loss		Retained Earnings		Stockholders' equity attributable to Darling		Non-controlling Interests		Total Stockholders' Equity
Balances at January 2, 2021	162,200,389	$	1,699	$	1,597,429	$	(151,710)	$	(252,433)	$	1,696,924	$	2,891,909	$	62,300	$	2,954,209
Net income	—	—		—		—		—		151,766		151,766		1,652		153,418
Distribution of noncontrolling interest earnings	—	—		—		—		—		—		—		(2,143)		(2,143)
Pension liability adjustments, net of tax	—	—		—		—		792		—		792		—		792
Heating oil derivative adjustments, net of tax	—	—		—		—		3,464		—		3,464		—		3,464
Corn option derivative adjustments, net of tax	—	—		—		—		(800)		—		(800)		—		(800)
Soybean meal derivative adjustments, net of tax	—	—		—		—		(257)		—		(257)		—		(257)
Foreign exchange derivative adjustments, net of tax	—	—		—		—		(6,806)		—		(6,806)		—		(6,806)
Foreign currency translation adjustments	—	—		—		—		(39,756)		—		(39,756)		1,534		(38,222)
Issuance of non-vested stock	—	—		58		—		—		—		58		—		58
Stock-based compensation	—	—		8,357		—		—		—		8,357		—		8,357
Treasury stock	(684,674)	—		—		(48,141)		—		—		(48,141)		—		(48,141)
Issuance of common stock	1,639,151	16		6,001		—		—		—		6,017		—		6,017
Balances at April 3, 2021	163,154,866	$	1,715	$	1,611,845	$	(199,851)	$	(295,796)	$	1,848,690	$	2,966,603	$	63,343	$	3,029,946

	Common Stock
	Number of Outstanding Shares	$0.01 par Value		Additional Paid-In Capital		Treasury Stock		Accumulated Other Comprehensive Loss		Retained Earnings		Stockholders' equity attributable to Darling		Non-controlling Interests		Total Stockholders' Equity
Balances at December 28, 2019	163,775,111	$	1,686	$	1,560,897	$	(75,022)	$	(321,847)	$	1,400,105	$	2,565,819	$	77,531	$	2,643,350
Net income	—	—		—		—		—		85,510		85,510		581		86,091
Deductions to noncontrolling interests	—	—		3,271		—		—		—		3,271		(13,146)		(9,875)
Pension liability adjustments, net of tax	—	—		—		—		648		—		648		—		648
Heating oil derivative adjustments, net of tax	—	—		—		—		10,870		—		10,870				10,870
Corn option derivative adjustments, net of tax	—	—		—		—		136		—		136		—		136
Foreign exchange derivative adjustments, net of tax	—	—		—		—		(9,151)		—		(9,151)		—		(9,151)
Foreign currency translation adjustments	—	—		—		—		(65,147)		—		(65,147)		(89)		(65,236)
Issuance of non-vested stock	8,000	—		40		—		—		—		40		—		40
Stock-based compensation	—	—		10,778		—		—		—		10,778		—		10,778
Treasury stock	(2,372,876)	—		—		(60,082)		—		—		(60,082)		—		(60,082)
Issuance of common stock	447,729	5		868		—		—		—		873		—		873
Balances at March 28, 2020	161,857,964	$	1,691	$	1,575,854	$	(135,104)	$	(384,491)	$	1,485,615	$	2,543,565	$	64,877	$	2,608,442

The accompanying notes are an integral part of these consolidated financial statements.

6

DARLING INGREDIENTS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three months ended April 3, 2021 and March 28, 2020

(in thousands)

(unaudited)

	April 3, 2021		March 28, 2020
Cash flows from operating activities:
Net Income	$	153,418	$	86,091
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	78,534		84,671
Loss (gain) on disposal of property, plant, equipment and other assets	(64)		61
Asset impairment	138		—
Deferred taxes	11,809		6,377
Decrease in long-term pension liability	(448)		(264)
Stock-based compensation expense	8,415		10,818
Write-off deferred loan costs	598		—
Deferred loan cost amortization	1,040		1,416
Equity in net income of Diamond Green Diesel and other unconsolidated subsidiaries	(102,837)		(98,689)
Distributions of earnings from other unconsolidated subsidiaries	57		—
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	10,721		487
Income taxes refundable/payable	(760)		348
Inventories and prepaid expenses	(27,188)		(24,999)
Accounts payable and accrued expenses	(13,462)		(16,790)
Other	18,834		(14,981)
Net cash provided by operating activities	138,805		34,546
Cash flows from investing activities:
Capital expenditures	(60,751)		(61,599)
Acquisitions, net of cash acquired	(340)		—
Investment in unconsolidated subsidiary	(4,449)		—
Gross proceeds from disposal of property, plant and equipment and other assets	1,629		379
Payments related to routes and other intangibles	(347)		(3,416)
Net cash used by investing activities	(64,258)		(64,636)
Cash flows from financing activities:
Proceeds from long-term debt	9,262		8,264
Payments on long-term debt	(60,444)		(8,638)
Borrowings from revolving credit facility	111,000		219,933
Payments on revolving credit facility	(97,000)		(100,782)
Net cash overdraft financing	499		(9,594)
Issuance of common stock	50		67
Repurchase of common stock	—		(55,044)
Minimum withholding taxes paid on stock awards	(42,268)		(4,328)
Acquisition of noncontrolling interest	—		(8,784)
Distributions to noncontrolling interests	(2,143)		(688)
Net cash provided (used) by financing activities	(81,044)		40,406
Effect of exchange rate changes on cash	(3,847)		(6,916)
Net increase (decrease) in cash, cash equivalents and restricted cash	(10,344)		3,400
Cash, cash equivalents and restricted cash at beginning of period	81,720		73,045
Cash, cash equivalents and restricted cash at end of period	$	71,376	$	76,445
Supplemental disclosure of cash flow information:
Accrued capital expenditures	$	(9,678)	$	(1,630)
Cash paid during the period for:
Interest, net of capitalized interest	$	2,774	$	5,863
Income taxes, net of refunds	$	15,578	$	11,453
Non-cash operating activities
Operating lease right of use asset obtained in exchange for new lease liabilities	$	12,404	$	9,121
Non-cash financing activities
Debt issued for assets	$	—	$	21

The accompanying notes are an integral part of these consolidated financial statements.

7

DARLING INGREDIENTS INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

April 3, 2021

(unaudited)

(1)General

The accompanying consolidated financial statements for the three month periods ended April 3, 2021 and March 28, 2020, have been prepared by Darling Ingredients Inc., a Delaware corporation (“Darling”, and together with its subsidiaries, the “Company” or “we”, “us” or “our”) in accordance with generally accepted accounting principles in the United States (“GAAP”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).  The information furnished herein reflects all adjustments (consisting only of normal recurring accruals) that are, in the opinion of management, necessary to present a fair statement of the financial position and operating results of the Company as of and for the respective periods. However, these operating results are not necessarily indicative of the results expected for a full fiscal year. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations.  However, management of the Company believes, to the best of their knowledge, that the disclosures herein are adequate to make the information presented not misleading.  The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements contained in the Company’s Form 10-K for the fiscal year ended January 2, 2021. 

(2)Summary of Significant Accounting Policies

(a)Basis of Presentation

The consolidated financial statements include the accounts of Darling and its consolidated subsidiaries. Noncontrolling interests represent the outstanding ownership interest in the Company's consolidated subsidiaries that are not owned by the Company. In the accompanying Consolidated Statements of Operations, the noncontrolling interest in net income of the consolidated subsidiaries is shown as an allocation of the Company's net income and is presented separately as “Net income attributable to noncontrolling interests.” In the Company's Consolidated Balance Sheets, noncontrolling interests represent the ownership interests in the Company consolidated subsidiaries' net assets held by parties other than the Company. These ownership interests are presented separately as “Noncontrolling interests” within “Stockholders' Equity.” All intercompany balances and transactions have been eliminated in consolidation.

(b)Fiscal Periods

The Company has a 52/53 week fiscal year ending on the Saturday nearest December 31.  Fiscal periods for the consolidated financial statements included herein are as of April 3, 2021, and include the 13 weeks ended April 3, 2021, and the 13 weeks ended March 28, 2020.

(c)    Cash, Cash Equivalents and Restricted Cash

The Company considers all short-term highly liquid instruments, with an original maturity of three months or less, to be cash equivalents. Cash balances are recorded net of book overdrafts when a bank right-of-offset exists. All other book overdrafts are recorded in accounts payable and the change in the related balance is reflected in operating activities on the Consolidated Statement of Cash Flows. In addition, the Company has bank overdrafts, which are considered a form of short-term financing with changes in the related balance reflected in financing activities in the Consolidated Statement of Cash Flows.

Restricted cash represents amounts required to be set aside as collateral for environmental claims and are insignificant to the Company.

(d)    Accounts Receivable and Allowance for Doubtful Accounts

The Company maintains allowances for doubtful accounts for estimated losses resulting from customers’ non-payment of trade accounts receivable owed to the Company.  These trade receivables arise in the ordinary course of business from sales of finished product or services to the Company’s customers.  The estimate of

8

allowance for doubtful accounts is based upon the Company’s bad debt experience adjusted for differences in asset-specific risk characteristic, current economic conditions, and forecasts of future economic conditions.  If the financial condition of the Company’s customers deteriorates, resulting in the customers’ inability to pay the Company’s receivables as they come due, additional allowances for doubtful accounts may be required.

The Company has entered into agreements with third party banks to factor certain of the Company's trade receivables in order to enhance working capital by turning trade receivables into cash faster. Under these agreements, the Company sells certain selected customers’ trade receivables to third party banks without recourse for cash less a nominal fee. For the three months ended April 3, 2021 and March 28, 2020, the Company sold approximately $106.9 million and $84.5 million of its trade receivables and incurred approximately $0.3 million and $0.4 million in fees, which are recorded as interest expense, respectively.

(e)    Revenue Recognition

The Company recognizes revenue on sales when control of the promised finished product is transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for the finished product. Service revenues are recognized when the service occurs.  Certain customers may be required to prepay prior to shipment in order to maintain payment protection related to certain foreign and domestic sales.  These amounts are recorded as unearned revenue and recognized when control of the promised finished product is transferred to the Company's customer.  See Note 19 (Revenue) to the Company's Consolidated Financial Statements included herein.

(f)    Foreign Currency Translation and Remeasurement

Foreign currency translation is included as a component of accumulated other comprehensive loss and reflects the adjustments resulting from translating the foreign currency denominated financial statements of foreign subsidiaries into U.S. dollars. The functional currency of the Company's foreign subsidiaries is the currency of the primary economic environment in which the entity operates, which is generally the local currency of the country. Accordingly, assets and liabilities of the foreign subsidiaries are translated into U.S. dollars at fiscal period end exchange rates, including intercompany foreign currency transactions that are of long-term investment nature. Income and expense items are translated at average exchange rates occurring during the period. Changes in exchange rates that affect cash flows and the related receivables or payables are recognized as transaction gains/(losses) in determining net income. The Company incurred net foreign currency translation losses of approximately $39.8 million and $65.1 million for the three months ended April 3, 2021 and March 28, 2020, respectively.

(g)    Leases

The Company accounts for leases in accordance with Accounting Standard Codification (“ASC”) Topic 842, leases. The Company determines if an arrangement is a lease at inception for which the Company recognizes the right-of-use (“ROU”) asset and a lease liability at the lease commencement date. For operating leases, the lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. In determining the lease liability, the Company applies a discount rate to the minimum lease payments within each lease. ASC 842 requires the Company to use the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. To estimate the Company's incremental borrowing rate over various terms, a comparable market yield curve consistent with the Company's credit quality is determined. The lease term for all of the Company's leases include the noncancellable period of the lease plus any additional periods covered by either a Company option to extend the lease that the Company is reasonably certain to exercise or when a triggering event occurs. The Company has elected to not recognize a ROU asset and lease liability with an initial term of 12 months or less at lease commencement. Operating leases are included on the Company's balance sheet as a ROU asset, current operating lease liabilities and long-term operating lease liabilities. For finance leases, the lease liability is initially measured in the same manner and date as for the operating leases, and is subsequently measured at amortized cost using the effective interest method. Finance leases are included in property, plant and equipment, current portion of long-term debt and long-term debt, net of current portion, but are not significant to the Company.

The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any direct costs incurred less any

9

lease incentives received. For operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of the lease incentives received. Some leases payments contain rent escalation clauses (including index-based escalations), initially measured using the index at the lease commencement date. The Company recognizes minimum rental expense on a straight-line basis based on the fixed components of the lease arrangement.

The Company uses the long-lived assets impairment guidance in ASC subtopic 360-10, Property, Plant and Equipment - Overall, to determine whether the ROU asset is impaired, and if so, the amount of the impairment loss to recognize. The Company monitors for events or changes in circumstances that require a reassessment of one of its leases. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding ROU asset unless doing so would reduce the carrying amount of the ROU asset to an amount less than zero. In that case, the amount of the adjustment that would result in a negative ROU asset balance is recorded in the consolidated statement of operations.

(h)    Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

If it is at least reasonably possible that the estimate of the effect on the financial statements of a condition, situation, or set of circumstances that exist at the date of the financial statements will change in the near term due to one or more future confirming events, and the effect of the change would be material to the financial statements, the Company will disclose the nature of the uncertainty and include an indication that it is at least reasonably possible that a change in the estimate will occur in the near term.  If the estimate involves certain loss contingencies, the disclosure will also include an estimate of the probable loss or range of loss or state that an estimate cannot be made.

As a result of the current global COVID-19 pandemic, and related government imposed movement restrictions and initiatives implemented to reduce the global transmission of COVID-19, we have evaluated the potential impact to the Company's operations and for any indicators of potential triggering events that could indicate certain of the Company's assets may be impaired. Through the three months ended April 3, 2021, the Company has not observed any impairments of the Company's assets or a significant change in their fair value due to the COVID-19 pandemic.

(i)    Earnings Per Share

Basic income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares including non-vested and restricted shares outstanding during the period.  Diluted income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares outstanding during the period increased by dilutive common equivalent shares determined using the treasury stock method.

10

	Net Income per Common Share (in thousands, except per share data)
	Three Months Ended
			April 3, 2021					March 28, 2020
	Income		Shares	Per Share		Income		Shares	Per Share
Basic:
Net Income attributable to Darling	$	151,766	162,925	$	0.93	$	85,510	163,474	$	0.52
Diluted:
Effect of dilutive securities:
Add: Option shares in the money and dilutive effect of non-vested stock awards			5,733					6,749
Less: Pro forma treasury shares			(909)					(2,296)
Diluted:
Net income attributable to Darling	$	151,766	167,749	$	0.90	$	85,510	167,927	$	0.51

For the three months ended April 3, 2021 and March 28, 2020, respectively, zero and 551,877 outstanding stock options were excluded from diluted income per common share as the effect was antidilutive. For the three months ended April 3, 2021 and March 28, 2020, respectively, 162,896 and 406,502 shares of non-vested stock and stock equivalents were excluded from diluted income per common share as the effect was antidilutive.

(3)    Investment in Unconsolidated Subsidiaries

On January 21, 2011, a wholly-owned subsidiary of Darling entered into a limited liability company agreement with a wholly-owned subsidiary of Valero Energy Corporation (“Valero”) to form Diamond Green Diesel Holdings LLC (“DGD” or the “DGD Joint Venture”). The DGD Joint Venture is owned 50% / 50% with Valero and was formed to design, engineer, construct and operate a renewable diesel plant located adjacent to Valero's refinery in Norco, Louisiana. The DGD Joint Venture reached mechanical completion and began the production of renewable diesel in late June 2013. Effective May 1, 2019, the limited liability company agreement was amended and restated for the purpose of updating the agreement in certain respects, including to remove certain provisions that were no longer relevant and to add new provisions relating to the DGD Joint Venture’s ongoing expansion project to construct a new, parallel facility located next to the existing facility.

Selected financial information for the Company's DGD Joint Venture is as follows (in thousands):

(in thousands)	March 31, 2021		December 31, 2020
Assets:
Total current assets	$	477,840	$	383,557
Property, plant and equipment, net	1,437,905		1,238,726
Other assets	39,171		36,082
Total assets	$	1,954,916	$	1,658,365
Liabilities and members' equity:
Total current portion of long term debt	$	562	$	517
Total other current liabilities	177,594		99,787
Total long term debt	8,702		8,705
Total other long term liabilities	8,722		3,758
Total members' equity	1,759,336		1,545,598
Total liabilities and members' equity	$	1,954,916	$	1,658,365

11

	Three Months Ended
(in thousands)	March 31, 2021		March 31, 2020
Revenues:
Operating revenues	$	431,633	$	358,615
Expenses:
Total costs and expenses less depreciation, amortization and accretion expense	215,234		151,347
Depreciation, amortization and accretion expense	11,687		11,774
Total costs and expenses	226,921		163,121
Operating income	204,712		195,494
Other income	58		461
Interest and debt expense, net	(320)		(315)
Net income	$	204,450	$	195,640

As of April 3, 2021, under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $879.7 million on the consolidated balance sheet. The Company has recorded equity in net income from the DGD Joint Venture of approximately $102.2 million and $97.8 million for the three months ended April 3, 2021 and March 28, 2020, respectively. In December 2019, the blender tax credits for calendar year 2018 and 2019 were retroactively reinstated by the U.S. Congress. In addition, blenders tax credits were extended for calendar years 2020, 2021 and 2022. For the three months ended March 31, 2021 and March 31, 2020, the DGD Joint Venture recorded approximately $79.0 million and $80.0 million of blenders tax credits, respectively. In the three months ended April 3, 2021, the Company did not receive any dividend distributions from the DGD Joint Venture.

In addition to the DGD Joint Venture, the Company has investments in other unconsolidated subsidiaries that are insignificant to the Company.

(4)    Inventories

A summary of inventories follows (in thousands):

	April 3, 2021		January 2, 2021
Finished product	$	250,237	$	233,044
Work in process	87,219		87,223
Raw material	35,229		36,746
Supplies and other	47,974		48,909
	$	420,659	$	405,922

(5)    Intangible Assets

The gross carrying amount of intangible assets not subject to amortization and intangible assets subject to amortization

is as follows (in thousands):    

12

	April 3, 2021		January 2, 2021
Indefinite Lived Intangible Assets
Trade names	$	54,184	$	55,349
	54,184		55,349
Finite Lived Intangible Assets:
Routes	393,937		397,342
Permits	481,959		494,191
Non-compete agreements	645		3,300
Trade names	65,675		65,675
Royalty, consulting, land use rights and leasehold	25,616		25,909
	967,832		986,417
Accumulated Amortization:
Routes	(206,137)		(203,392)
Permits	(314,741)		(315,246)
Non-compete agreements	(355)		(2,981)
Trade names	(41,125)		(39,491)
Royalty, consulting, land use rights and leasehold	(7,119)		(6,976)
	(569,477)		(568,086)
Total Intangible assets, less accumulated amortization	$	452,539	$	473,680

Gross intangible routes, permits, trade names, non-compete agreements and other intangibles decreased in fiscal 2021 as a result of approximately $9.5 million of fully amortized asset retirements and a decrease from foreign currency translation. Amortization expense for the three months ended April 3, 2021 and March 28, 2020, was approximately $17.0 million and $18.2 million, respectively.

(6)    Goodwill

Changes in the carrying amount of goodwill (in thousands):

	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Balance at January 2, 2021
Goodwill	$	830,321	$	351,296	$	126,578	$	1,308,195
Accumulated impairment losses	(15,914)		(461)		(31,580)		(47,955)
	814,407		350,835		94,998		1,260,240
Goodwill acquired during year	40		—		161		201
Foreign currency translation	(5,631)		(9,685)		(3,883)		(19,199)
Balance at April 3, 2021
Goodwill	824,730		341,611		122,856		1,289,197
Accumulated impairment losses	(15,914)		(461)		(31,580)		(47,955)
	$	808,816	$	341,150	$	91,276	$	1,241,242

(7)    Accrued Expenses

Accrued expenses consist of the following (in thousands):

	April 3, 2021		January 2, 2021
Compensation and benefits	$	99,108	$	121,497
Accrued ad valorem, and franchise taxes	15,779		39,167
Accrued operating expenses	67,132		62,601
Other accrued expense	129,352		112,206
	$	311,371	$	335,471

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(8)    Leases

The Company leases certain real and personal property, a large portion of the Company's fleet of tractors, all of its rail cars, some IT equipment and other transportation equipment under non-cancelable operating leases. The Company's office leases include certain lease and non-lease components, where the Company has elected to exclude the non-lease components from the calculation of the lease liability and ROU asset. The Company has finance leases, which are not significant to the Company and not separately disclosed in detail.

The components of operating lease expense included in cost of sales and operating expenses and selling, general and administrative expenses were as follows (in thousands):

	Three Months Ended
	April 3, 2021		March 28, 2020
Operating lease expense	$	11,661	$	11,509
Short-term lease costs	6,408		6,245
Total lease cost	$	18,069	$	17,754

Other information (in thousands, except lease terms and discount rates):

	Three Months Ended
	April 3, 2021			March 28, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	14,265		$	12,456
	April 3, 2021			January 2, 2021
Operating right-of-use assets, net	$	145,238		$	146,563
Operating lease liability, current	$	38,064		$	39,459
Operating lease liability, non-current	108,777			109,707
Total operating lease liabilities	$	146,841		$	149,166
Weighted average remaining lease term - operating leases	6.43 years			6.30 years
Weighted average discount rate - operating leases	4.01		%	4.22		%

Future annual minimum lease payments and capital lease commitments as of April 3, 2021 are as follows (in thousands):

Period Ending Fiscal	Operating Leases		Capital Leases
2021 (excluding the three months ended April 3, 2021)	$	32,297	$	650
2022	34,591		824
2023	29,567		611
2024	22,759		467
2025	14,118		331
Thereafter	27,721		574
	$	161,053	$	3,457
Less amounts representing interest	$	(14,212)	(134)
Lease obligations included in current and long-term liabilities	$	146,841	$	3,323

As of April 3, 2021, the Company also has additional operating leases that have not yet commenced, primarily for rail car and tractors, with fixed payments over their noncancellable terms of $3.2 million. These operating leases will commence in 2021 with noncancellable terms of 5 years.

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(9)    Debt

Debt consists of the following (in thousands):

	April 3, 2021		January 2, 2021
Amended Credit Agreement:
Revolving Credit Facility	$	69,000	$	55,000
Term Loan B	250,000		300,000
Less unamortized deferred loan costs	(2,979)		(3,798)
Carrying value Term Loan B	247,021		296,202
5.25% Senior Notes due 2027 with effective interest of 5.47%	500,000		500,000
Less unamortized deferred loan costs	(5,553)		(5,747)
Carrying value 5.25% Senior Notes due 2027	494,447		494,253
3.625% Senior Notes due 2026 - Denominated in euro with effective interest of 3.83%	606,310		632,163
Less unamortized deferred loan costs - Denominated in euro	(6,046)		(6,586)
Carrying value 3.625% Senior Notes due 2026	600,264		625,577
Other Notes and Obligations	33,799		37,037
	1,444,531		1,508,069
Less Current Maturities	26,997		27,538
	$	1,417,534	$	1,480,531

As of April 3, 2021, the Company had outstanding debt under the Company's 3.625% Senior Notes due 2026 denominated in euros of €515.0 million. See below for discussion relating to the Company's debt agreements. In addition, at April 3, 2021, the Company had finance lease obligations denominated in euros of approximately €2.8 million.

As of April 3, 2021, the Company had other notes and obligations of $33.8 million that consist of various overdraft facilities of approximately $4.7 million, a China working capital line of credit of approximately $16.2 million and other debt of approximately $12.9 million.

Senior Secured Credit Facilities. On January 6, 2014, Darling, Darling International Canada Inc. (“Darling Canada”) and Darling International NL Holdings B.V. (“Darling NL”) entered into a Second Amended and Restated Credit Agreement (as subsequently amended, the “Amended Credit Agreement”), restating its then existing Amended and Restated Credit Agreement dated September 27, 2013 (the “Former Credit Agreement”), with the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other agents from time to time party thereto.

Effective September 18, 2020, the Company, and certain of its subsidiaries entered into an amendment (the “Sixth Amendment”) with its lenders to the Amended Credit Agreement. Among other things, the Sixth Amendment (i) extended the maturity date of the revolving credit facility under the Amended Credit Agreement from December 16, 2021 to September 18, 2025, (ii) increased the leverage ratio applicable to achieving the lowest applicable margin on borrowing under the revolving credit facility from 1.0 to 1.5, (iii) eliminated or modified certain of the negative covenants to increase the allowances for certain actions, including the incurrence of debt and investments, (iv) limited guarantees from, and security with respect to, entities organized outside of the United States and Canada to a limited group of foreign subsidiary holding companies, (v) included a collateral release mechanism, subject to the consent of the term loan B lenders, upon the Company achieving certain investment grade credit ratings, and (vi) made other market updates and changes.

Effective December 18, 2017, the Company, and certain of its subsidiaries entered into an amendment (the “Fifth Amendment”) with its lenders to the Amended Credit Agreement. Among other things, the Fifth Amendment (i) refinanced the term B loans under the Amended Credit Agreement with new term B loans in an aggregate principal amount of $525.0 million with a maturity date of December 18, 2024; (ii) adjusted the applicable margin pricing on borrowings under the term B loan; (iii) modified certain of the negative covenants to increase the allowances for certain actions, including debt and investments; and (iv) made other updates and changes.

15

Effective December 16, 2016, the Company, and certain of its subsidiaries entered into an amendment (the “Fourth Amendment”) with its lenders to the Amended Credit Agreement. Among other things, the Fourth Amendment (i) adjusted the applicable margin pricing grid on borrowings under the revolving credit facility which adjusts based on the Company's total leverage ratio as set forth in the Amended Credit Agreement; (ii) eliminated the secured leverage ratio financial maintenance covenant so that from and after the effective date of the Fourth Amendment the Company’s financial covenants consist of maintaining a total leverage ratio not to exceed 5.50 to 1.00 and maintaining an interest coverage ratio of not less than 3.00 to 1.00; (iii) modified certain of the negative covenants to include a senior leverage ratio incurrence-based test and to increase the allowances for certain actions, including debt, investments and restricted payments; and (iv) made other updates and changes.

The Company's Amended Credit Agreement provides for senior secured credit facilities in the aggregate principal amount of $1.525 billion comprised of (i) the Company's $525.0 million term loan B facility and (ii) the Company's $1.0 billion five-year revolving credit facility (up to $150.0 million of which is available for a letter of credit sub-facility and up to $50.0 million of which is available for a swingline sub-facility) (collectively, the “Senior Secured Credit Facilities”). The Amended Credit Agreement also permits Darling and the other borrowers thereunder to incur ancillary facilities provided by any revolving lender party to the Senior Secured Credit Facilities (with certain restrictions). Up to $970.0 million of the revolving loan facility is available to be borrowed by (x) Darling in U.S. dollars, Canadian dollars, euros and other currencies to be agreed and available to each applicable lender, (y) Darling Canada in Canadian dollars and (z) Darling NL and Darling Ingredients International Holding B.V. (“Darling BV”), in U.S. dollars, Canadian dollars, euros and other currencies to be agreed and available to each applicable lender. The remaining $30.0 million is only available in U.S. dollars to Darling. The revolving credit facility will mature on September 18, 2025. The revolving credit facility will be used for working capital needs, general corporate purposes and other purposes not prohibited by the Amended Credit Agreement.

The interest rate applicable to any borrowings under the revolving credit facility will equal either LIBOR/euro interbank offered rate/CDOR plus 1.50% per annum or base rate/Canadian prime rate plus 0.50% per annum, subject to certain step-ups or step-downs based on the Company's total leverage ratio. The interest rate applicable to any borrowings under the term loan B facility will equal the base rate plus 1.00% or LIBOR plus 2.00%.

As of April 3, 2021, the Company had $27.0 million outstanding under the revolver at base rate plus a margin of 0.50% per annum for a total of 3.75% per annum and $42.0 million outstanding under the revolver at LIBOR plus a margin of 1.50% per annum for a total of 1.616% per annum. The Company had $250.0 million outstanding under the term loan B facility at LIBOR plus a margin of 2.00% per annum for a total of 2.12% per annum. As of April 3, 2021, the Company had availability of $879.9 million under the Amended Credit Agreement taking into account amounts borrowed, ancillary facilities and letters of credit issued of $3.8 million. The Company also has foreign bank guarantees that are not part of the Company's Amended Credit Agreement in the amount of approximately $11.7 million at April 3, 2021.

3.625% Senior Notes due 2026. On May 2, 2018, Darling Global Finance B.V. issued and sold €515.0 million aggregate principal amount of 3.625% Senior Notes due 2026 (the “3.625% Notes”). The 3.625% Notes, which were offered in a private offering, were issued pursuant to a Senior Notes Indenture, dated as of May 2, 2018 (the “3.625% Indenture”), among Darling Global Finance B.V., Darling, the subsidiary guarantors party thereto from time to time, Citibank, N.A., London Branch, as trustee and principal paying agent, and Citigroup Global Markets Deutschland AG, as principal registrar. The 3.625% Notes are guaranteed on a senior unsecured basis by Darling and all of Darling's restricted subsidiaries (other than any foreign subsidiary or any receivable entity) that guarantee the Senior Secured Credit Facilities.

5.25% Senior Notes due 2027. On April 3, 2019, Darling issued and sold $500.0 million aggregate principal amount of 5.25% Senior Notes due 2027 (the “5.25% Notes”). The 5.25% Notes, which were offered in a private offering, were issued pursuant to a Senior Notes Indenture, dated as of April 3, 2019 (the “5.25% Indenture”), among Darling, the subsidiary guarantors party thereto from time to time, and Regions Bank, as trustee. The 5.25% Notes are guaranteed on a senior unsecured basis by Darling and all of Darling's restricted subsidiaries (other than foreign subsidiaries).

As of April 3, 2021, the Company believes it is in compliance with all of the financial covenants under the Amended Credit Agreement, as well as all of the other covenants contained in the Amended Credit Agreement, the 5.25% Indenture and the 3.625% Indenture.

16

(10)    Income Taxes

The Company has provided income taxes for the three month periods ended April 3, 2021 and March 28, 2020, based on its estimate of the effective tax rate for the entire 2021 and 2020 fiscal years. The Company’s estimated annual effective tax rate is based on forecasts of income by jurisdiction, permanent differences between book and tax income, the relative proportion of income and losses by jurisdiction, and statutory income tax rates. Discrete events such as the assessment of the ultimate outcome of tax audits, audit settlements, recognizing previously unrecognized tax benefits due to the lapsing of statutes of limitation, recognizing or derecognizing deferred tax assets due to projections of income or loss and changes in tax laws are recognized in the period in which they occur.

Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company expects to have access to its offshore earnings with no material U.S. tax impact. Therefore, the Company does not consider earnings from its foreign subsidiaries to be permanently reinvested offshore.

The Company periodically assesses whether it is more likely than not that it will generate sufficient taxable income to realize its deferred income tax assets.  In making this determination, the Company considers all available positive and negative evidence and makes certain assumptions.  The Company considers, among other things, its deferred tax liabilities, the overall business environment, its historical earnings and losses, current industry trends and its outlook for future years.

Unrecognized tax benefits represent the difference between tax positions taken or expected to be taken in a tax return and the benefits recognized for financial statement purposes. As of April 3, 2021, the Company had $5.6 million of gross unrecognized tax benefits and $0.4 million of related accrued interest and penalties. It is reasonably possible within the next twelve months that the Company's gross unrecognized tax benefits may decrease by up to $0.2 million, excluding interest and penalties. The possible change in unrecognized tax benefits relates to the expiration of certain statutes of limitation.

The Company’s major taxing jurisdictions include the United States (federal and state), Canada, the Netherlands, Belgium, Brazil, Germany, France and China. The Company is subject to regular examination by various tax authorities and although the final outcome of these examinations is not yet determinable, the Company does not anticipate that any of the examinations will have a significant impact on the Company's results of operations or financial position. The statute of limitations for the Company’s major tax jurisdictions is open for varying periods, but is generally closed through the 2013 tax year.

(11)      Other Comprehensive Income/(Loss)

The Company follows Financial Accounting Standards Board (“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, soybean meal adjustments, corn option adjustments, foreign exchange forward adjustments, heating oil swap adjustments and foreign currency translation adjustments.

In the first three months of fiscal 2021 and fiscal 2020, 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 as required by FASB ASC Topic 323.

The components of other comprehensive income/(loss) and the related tax impacts for the three months ended April 3, 2021 and March 28, 2020 are as follows (in thousands):

17

	Three Months Ended
	Before-Tax				Tax (Expense)				Net-of-Tax
	Amount				or Benefit				Amount
	April 3, 2021		March 28, 2020		April 3, 2021		March 28, 2020		April 3, 2021		March 28, 2020
Defined benefit pension plans
Amortization of prior service (cost)/benefit	$	5	$	8	$	(1)	$	(2)	$	4	$	6
Amortization of actuarial loss	1,052		854		(264)		(212)		788		642
Total defined benefit pension plans	1,057		862		(265)		(214)		792		648
Soybean meal option derivatives
Reclassified to earnings	(280)		—		71		—		(209)		—
Activity recognized in other comprehensive income/(loss)	(64)		—		16		—		(48)		—
Total soybean meal option derivatives	(344)		—		87		—		(257)		—
Corn option derivatives
Reclassified to earnings	3,920		300		(996)		(75)		2,924		225
Activity recognized in other comprehensive income/(loss)	(4,993)		(119)		1,269		30		(3,724)		(89)
Total corn option derivatives	(1,073)		181		273		(45)		(800)		136
Heating oil derivatives
Activity recognized in other comprehensive income/(loss)	4,644		14,494		(1,180)		(3,624)		3,464		10,870
Total heating oil derivatives	4,644		14,494		(1,180)		(3,624)		3,464		10,870
Foreign exchange derivatives
Reclassified to earnings	224		(412)		(75)		129		149		(283)
Activity recognized in other comprehensive income/(loss)	(10,457)		(12,920)		3,502		4,052		(6,955)		(8,868)
Total foreign exchange derivatives	(10,233)		(13,332)		3,427		4,181		(6,806)		(9,151)
Foreign currency translation	(39,737)		(65,887)		1,515		651		(38,222)		(65,236)
Other comprehensive income/(loss)	$	(45,686)	$	(63,682)	$	3,857	$	949	$	(41,829)	$	(62,733)

The following table presents the amounts reclassified out of each component of other comprehensive income/(loss), net of tax for the three months ended April 3, 2021 and March 28, 2020 as follows (in thousands):

	Three Months Ended
	April 3, 2021		March 28, 2020		Statement of Operations Classification
Derivative instruments
Soybean meal derivatives	$	280	$	—	Net sales
Foreign exchange contracts	(224)		412		Net sales
Corn option derivatives	(3,920)		(300)		Cost of sales and operating expenses
	(3,864)		112		Total before tax
	1,000		(54)		Income taxes
	(2,864)		58		Net of tax
Defined benefit pension plans
Amortization of prior service cost	$	(5)	$	(8)	(a)
Amortization of actuarial loss	(1,052)		(854)		(a)
	(1,057)		(862)		Total before tax
	265		214		Income taxes
	(792)		(648)		Net of tax
Total reclassifications	$	(3,656)	$	(590)	Net of tax

(a)These items are included in the computation of net periodic pension cost. See Note 13 (Employee Benefit Plans) to the Company's Consolidated Financial Statement included herein for additional information.

18

The following table presents changes in each component of accumulated other comprehensive income/(loss) as of April 3, 2021 as follows (in thousands):

	Three Months Ended April 3, 2021
	Foreign Currency		Derivative		Defined Benefit
	Translation		Instruments		Pension Plans		Total
Accumulated Other Comprehensive loss January 2, 2021, attributable to Darling, net of tax	$	(210,902)	$	(3,214)	$	(38,317)	$	(252,433)
Other comprehensive loss before reclassifications	(38,222)		(7,263)		—		(45,485)
Amounts reclassified from accumulated other comprehensive loss	—		2,864		792		3,656
Net current-period other comprehensive income/(loss)	(38,222)		(4,399)		792		(41,829)
Noncontrolling interest	1,534		—		—		1,534
Accumulated Other Comprehensive loss April 3, 2021, attributable to Darling, net of tax	(250,658)		$	(7,613)	$	(37,525)	$	(295,796)

(12)    Stockholders' Equity

Fiscal 2021 Long-Term Incentive Opportunity Awards (2021 LTIP). On January 4, 2021, the Compensation Committee (the “Committee”) of the Company's Board of Directors adopted the 2021 LTIP pursuant to which they awarded certain of the Company's key employees, 90,689 restricted stock units and 126,711 performance share units (the “PSUs”) under the Company's 2017 Omnibus Incentive Plan. The restricted stock units vest 33.33% on the first, second and third anniversaries of the grant date. The PSUs are tied to a three-year forward-looking performance period and will be earned based on the Company's average return on capital employed (“ROCE”), as calculated in accordance with the terms of the award agreement, relative to the average ROCE of the Company's performance peer group companies, with the earned award to be determined in the first quarter of fiscal 2024, after the final results for the relevant performance period are determined. The PSUs were granted at a target of 100%, but each PSU will reduce or increase depending on the Company's ROCE relative to that of the performance peer group companies and is also subject to the application of a total shareholder return (“TSR”) cap/collar modifier depending on the Company's TSR during the performance period relative to that of the performance peer group companies.

On August 3, 2020, the Company’s Board of Directors approved the extension for an additional two years of its previously announced share repurchase program and refreshed the amount of the program back up to its original amount of an aggregate of $200.0 million of the Company's Common Stock depending on market conditions. As of April 3, 2021, the Company had approximately $200.0 million remaining under the share repurchase program initially approved in August 2017 and subsequently extended to August 13, 2022. During the first quarter of fiscal 2021, no common stock was repurchased under the repurchase program.

(13)    Employee Benefit Plans

The Company has retirement and pension plans covering a substantial number of its domestic and foreign employees.  Most retirement benefits are provided by the Company under separate final-pay noncontributory and contributory defined benefit and defined contribution plans for all salaried and hourly employees (excluding those covered by union-sponsored plans) who meet service and age requirements. Although various defined benefit formulas exist for employees, generally these are based on length of service and earnings patterns during employment. Effective January 1, 2012, the Company's Board of Directors authorized the Company to proceed with the restructuring of its domestic retirement benefit program to include the closing of Darling's salaried and hourly defined benefit plans to new participants as well as the freezing of service and wage accruals thereunder effective December 31, 2011 (a curtailment of these plans for financial reporting purposes) and the enhancing of benefits under the Company's domestic defined contribution plans. The Company-sponsored domestic hourly union plan has not been curtailed; however, several locations of the Company-sponsored domestic hourly union plan have been curtailed as a result of collective bargaining renewals for those sites.

Net pension cost for the three months ended April 3, 2021 and March 28, 2020 includes the following components (in thousands):

19

	Pension Benefits
	Three Months Ended
	April 3, 2021		March 28, 2020
Service cost	$	785	$	755
Interest cost	1,204		1,428
Expected return on plan assets	(2,321)		(2,039)
Amortization of prior service cost	5		8
Amortization of actuarial loss	1,052		854
Net pension cost	$	725	$	1,006

The Company's funding policy for employee benefit pension plans is to contribute annually not less than the minimum amount required nor more than the maximum amount that can be deducted for federal and foreign income tax purposes.  Contributions are intended to provide not only for benefits attributed to service to date, but also for those expected to be earned in the future. Based on actuarial estimates at April 3, 2021, the Company expects to contribute approximately $3.8 million to its pension plans to meet funding requirements during the next twelve months. Additionally, the Company has made tax deductible discretionary and required contributions to its pension plans for the three months ended April 3, 2021 and March 28, 2020 of approximately $0.9 million and $0.8 million, respectively.  

The Company participates in various multiemployer pension plans which provide defined benefits to certain employees covered by labor contracts.  These plans are not administered by the Company and contributions are determined in accordance with provisions of negotiated labor contracts to meet their pension benefit obligations to their participants. The Company's contributions to each multiemployer plan represent less than 5% of the total contributions to each plan. Based on the most currently available information, the Company has determined that, if a withdrawal were to occur, withdrawal liabilities on two of the plans in which the Company currently participates could be material to the Company, with one of these material plans certified as critical or red zone. With respect to the other multiemployer pension plans in which the Company participates and which are not individually significant, five plans have certified as critical or red zone and two plans have certified as endangered or yellow zone as defined by the Pension Protection Act of 2006.

The Company currently has withdrawal liabilities recorded on four U.S. multiemployer plans in which it participated. During the first quarter of fiscal 2021, the Company was notified by one of these multiemployer plans that the Company's withdrawal liability has increased and as a result the Company recorded an additional liability of approximately $1.3 million. As of April 3, 2021, the Company has an aggregate accrued liability of approximately $4.0 million representing the present value of scheduled withdrawal liability payments on the multiemployer plans that have given notice of withdrawal. While the Company has no ability to calculate a possible current liability for under-funded multiemployer plans that could terminate or could require additional funding under the Pension Protection Act of 2006, the amounts could be material.

(14)    Derivatives

The Company’s operations are exposed to market risks relating to commodity prices that affect the Company’s cost of raw materials, finished product prices and energy costs and the risk of changes in interest rates and foreign currency exchange rates.

The Company makes limited use of derivative instruments to manage cash flow risks related to natural gas usage, diesel fuel usage, inventory, forecasted sales and foreign currency exchange rates. The Company does not use derivative instruments for trading purposes.  Natural gas swaps and options are entered into with the intent of managing the overall cost of natural gas usage by reducing the potential impact of seasonal weather demands on natural gas that increases natural gas prices.  Heating oil swaps and options are entered into with the intent of managing the overall cost of diesel fuel usage by reducing the potential impact of seasonal weather demands on diesel fuel that increases diesel fuel prices.  Soybean meal options are entered into with the intent of managing the impact of changing prices for poultry meal sales. Corn options and future contracts are entered into with the intent of managing U.S. forecasted sales of bakery by-products (“BBP”) by reducing the impact of changing prices.  Foreign currency forward and option contracts are entered into to mitigate the foreign exchange rate risk for transactions designated in a currency other than the local functional currency. At April 3, 2021, the Company had corn option contracts, soybean meal forward contracts and foreign exchange forward and option contracts outstanding that qualified and were

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designated for hedge accounting as well as corn forward contracts and foreign currency forward contracts that did not qualify and were not designated for hedge accounting.

Entities are required to report all derivative instruments in the statement of financial position at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, on the reason for holding the instrument. If certain conditions are met, entities may elect to designate a derivative instrument as a hedge of exposures to changes in fair value, cash flows or foreign currencies. If the hedged exposure is a cash flow exposure, the gain or loss on the derivative instrument is reported initially as a component of other comprehensive income (outside of earnings) and is subsequently reclassified into earnings when the forecasted transaction affects earnings. Any amounts excluded from the assessment of hedge effectiveness are reported in earnings immediately. If the derivative instrument is not designated as a hedge, the gain or loss is recognized in earnings in the period of change.

Cash Flow Hedges

In fiscal 2020 and fiscal 2021, the Company entered into corn option contracts on the Chicago Board of Trade that are designated as cash flow hedges. Under the terms of the corn option contracts, the Company hedged a portion of its U.S. forecasted sales of BBP into the fourth quarter of fiscal 2021. At April 3, 2021 and January 2, 2021, the aggregate fair value of these corn option contracts was approximately $8.0 million and $6.8 million, respectively. These amounts are included in accrued expenses on the balance sheet, with an offset recorded in accumulated other comprehensive loss. The Company may enter into corn option contracts in the future from time to time.

In fiscal 2020 and fiscal 2021, the Company entered into foreign exchange forward and option contracts that are designated as cash flow hedges. Under the terms of the foreign exchange contracts, the Company hedged a portion of its forecasted collagen sales in currencies other than the functional currency through the fourth quarter of fiscal 2022. At April 3, 2021 and January 2, 2021, the aggregate fair value of these foreign exchange contracts was approximately $0.4 million and $11.6 million, respectively. These amounts are included in other current assets, accrued expense and noncurrent assets on the balance sheet, with an offset recorded in accumulated other comprehensive loss.

In fiscal 2020 and fiscal 2021, the Company entered into soybean meal forward contracts to hedge a portion of its forecasted poultry meal sales into the second quarter of fiscal 2021. As of April 3, 2021 and January 2, 2021, the aggregate fair value of the soybean meal contracts was $0.1 million and $0.4 million, respectively. These amounts are included in other current assets on the balance sheet, with an offset recorded in accumulated other comprehensive loss.

As of April 3, 2021, the Company had the following designated and non-designated outstanding forward and option contract amounts that were entered into to hedge foreign currency transactions in currencies other than the functional currency and forecasted transactions in currencies other than the functional currency (in thousands):

Functional Currency		Contract Currency
Type	Amount	Type	Amount
Brazilian real	49,335	Euro	7,305
Brazilian real	1,103,561	U.S. dollar	241,320
Euro	35,967	U.S. dollar	42,810
Euro	43,119	Polish zloty	198,500
Euro	6,293	Japanese yen	808,776
Euro	16,176	Chinese renminbi	126,124
Euro	42,340	Australian dollar	65,550
Euro	3,048	British pound	2,600
Euro	32	Canadian dollar	50
Polish zloty	1,031	U.S. dollar	262
Polish zloty	24,116	Euro	5,195
British pound	176	Euro	207
Japanese yen	231,803	U.S. dollar	2,159
U.S. dollar	100	Japanese yen	11,000
U.S. dollar	165,311	Euro	140,000

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The Company estimates the amount that will be reclassified from accumulated other comprehensive loss at April 3, 2021 into earnings over the next 12 months will be approximately $10.0 million. As of April 3, 2021, no amounts have been reclassified into earnings as a result of the discontinuance of cash flow hedges.

The table below summarizes the effect of derivatives not designated as hedges on the Company's consolidated statements of operations for the three months ended April 3, 2021 and March 28, 2020 (in thousands):

		Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges
		Three Months Ended
Derivatives not designated as hedging instruments	Location	April 3, 2021		March 28, 2020
Foreign exchange	Foreign currency loss	$	5,389	$	(1,295)
Foreign exchange	Net sales	729		730
Foreign exchange	Cost of sales and operating expenses	(444)		(887)
Foreign exchange	Selling, general and administrative expense	2,531		5,724
Corn options and futures	Net sales	(998)		855
Corn options and futures	Cost of sales and operating expenses	1,469		(1,841)
Total		$	8,676	$	3,286

At April 3, 2021, the Company had forward purchase agreements in place for purchases of approximately $71.9 million of natural gas and diesel fuel.  The Company intends to take physical delivery of the commodities under the forward purchase agreements and accordingly, these contracts are not subject to the requirements of fair value accounting because they qualify as normal purchases.

(15)    Fair Value Measurements

FASB authoritative guidance defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.  The following table presents the Company’s financial instruments that are measured at fair value on a recurring and nonrecurring basis as of April 3, 2021 and are categorized using the fair value hierarchy under FASB authoritative guidance.  The fair value hierarchy has three levels based on the reliability of the inputs used to determine the fair value. 

			Fair Value Measurements at April 3, 2021 Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands of dollars)	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Derivative instruments	$	2,211	$	—	$	2,211	$	—
Total Assets	$	2,211	$	—	$	2,211	$	—
Liabilities:
Derivative instruments	$	10,483	$	—	$	10,483	$	—
5.25% Senior notes	526,650		—		526,650		—
3.625% Senior notes	617,284		—		617,284		—
Term loan B	249,375		—		249,375		—
Revolver debt	68,655		—		68,655		—
Total Liabilities	$	1,472,447	$	—	$	1,472,447	$	—

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			Fair Value Measurements at January 2, 2021 Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands of dollars)	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Derivative instruments	$	17,358	$	—	$	17,358	$	—
Total Assets	$	17,358	$	—	$	17,358	$	—
Liabilities:
Derivative instruments	$	9,778	$	—	$	9,778	$	—
5.25% Senior notes	531,300		—		531,300		—
3.625% Senior notes	646,323		—		646,323		—
Term loan B	298,500		—		298,500		—
Revolver debt	54,175		—		54,175		—
Total Liabilities	$	1,540,076	$	—	$	1,540,076	$	—

Derivative assets and liabilities consist of the Company’s corn option and future contracts, foreign currency forward and option contracts and soybean meal forward contracts which represent the difference between observable market rates of commonly quoted intervals for similar assets and liabilities in active markets and the fixed swap rate considering the instruments term, notional amount and credit risk.  See Note 14 (Derivatives) to the Company's Consolidated Financial Statements included herein for discussion on the Company's derivatives.

The carrying amount of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximates fair value due to the short maturity of these instruments and as such have been excluded from the table above. The carrying amount of the Company's other debt is not deemed to be significantly different from the fair value and all other instruments have been recorded at fair value. 

The fair value of the senior notes, term loan B and revolver debt is based on market quotation from third-party banks.

(16)    Restructuring and Asset Impairment Charges 

In December 2020, due to unfavorable economics in the biodiesel industry, the Company made the decision to shut down processing operations at its biodiesel facilities located in the United States and Canada, and there are no current plans to resume biodiesel production at these facilities in the future. In addition to charges incurred in fiscal 2020, the Company has incurred additional restructuring and asset impairment charges related to the biodiesel facilities of approximately $0.8 million, with approximately $0.4 million of this amount being employee termination costs in Canada and the remainder representing charges to long-lived assets and other charges.

(17)    Contingencies 

The Company is a party to various lawsuits, claims and loss contingencies arising in the ordinary course of its business, including insured worker's compensation, auto, and general liability claims, assertions by certain regulatory and governmental agencies related to permitting requirements and environmental matters, including air, wastewater and storm water discharges from the Company’s processing facilities, litigation involving tort, contract, statutory, labor, employment, and other claims, and tax matters.

The Company’s workers compensation, auto and general liability policies contain significant deductibles or self-insured retentions.  The Company estimates and accrues its expected ultimate claim costs related to accidents occurring during each fiscal year under these insurance policies and carries this accrual as a reserve until these claims are paid by the Company.

As a result of the matters discussed above, the Company has established loss reserves for insurance, environmental, litigation and tax contingencies. At April 3, 2021 and January 2, 2021, the reserves for insurance, environmental, litigation and tax contingencies reflected on the balance sheet in accrued expenses and other non-current liabilities were approximately $67.8 million and $66.2 million, respectively.  The Company has insurance recovery receivables of approximately $27.0 million as of April 3, 2021 and January 2, 2021, related to the insurance contingencies. The Company's management believes these reserves for contingencies are reasonable and sufficient based upon present

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governmental regulations and information currently available to management; however, there can be no assurance that final costs related to these contingencies will not exceed current estimates. The Company believes that the likelihood is remote that any additional liability from the lawsuits and claims that may not be covered by insurance would have a material effect on the Company's financial position, results of operations or cash flows.

Lower Passaic River Area. In December 2009, the Company, along with numerous other entities, received notice from the United States Environmental Protection Agency (“EPA”) that the Company (as alleged successor-in-interest to The Standard Tallow Corporation) is considered a potentially responsible party (a “PRP”) with respect to alleged contamination in the lower 17-mile area of the Passaic River which is part of the Diamond Alkali Superfund Site located in Newark, New Jersey. The Company’s designation as a PRP is based upon the operation of former plant sites located in Newark and Kearny, New Jersey by The Standard Tallow Corporation, an entity that the Company acquired in 1996. In the letter, EPA requested that the Company join a group of other parties in funding a remedial investigation and feasibility study at the site. As of the date of this report, the Company has not agreed to participate in the funding group. In March 2016, the Company received another letter from EPA notifying the Company that it had issued a Record of Decision (the “ROD”) selecting a remedy for the lower 8.3 miles of the lower Passaic River area at an estimated cost of $1.38 billion. The EPA letter makes no demand on the Company and lays out a framework for remedial design/remedial action implementation in which the EPA will first seek funding from major PRPs. The letter indicates that the EPA has sent the letter to over 100 parties, which include large chemical and refining companies, manufacturing companies, foundries, plastic companies, pharmaceutical companies and food and consumer product companies. The EPA has already offered early cash out settlements to 20 of the other PRPs and has stated that other parties who did not discharge any of the eight contaminants of concern identified in the ROD (the “COCs”) may also be eligible for cash out settlements and conducted a settlement analysis using a third-party allocator. The Company participated in this allocation process as it asserts that it is not responsible for any liabilities of its former subsidiary The Standard Tallow Corporation, which was legally dissolved in 2000, and that, in any event, The Standard Tallow Corporation did not discharge any of the COCs. In November 2019, the Company received a cash out settlement offer from the EPA in the amount of $0.6 million ($0.3 million for each of the former plant sites in question) for liabilities relating to the lower 8.3 miles of the lower Passaic River area. The Company accepted this settlement offer, and the settlement became effective on April 16, 2021 following the completion of the EPA's administrative approval process. On September 30, 2016, Occidental Chemical Corporation (“OCC”) entered into an agreement with the EPA to perform the remedial design for the cleanup plan for the lower 8.3 miles of the Passaic River. On June 30, 2018, OCC filed a complaint in the United States District Court for the District of New Jersey against over 100 companies, including the Company, seeking cost recovery or contribution for costs under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) relating to various investigations and cleanups OCC has conducted or is conducting in connection with the Passaic River. According to the complaint, OCC has incurred or is incurring costs which include the estimated cost to complete the remedial design for the cleanup plan for the lower 8.3 miles of the Passaic River. OCC is also seeking a declaratory judgment to hold the defendants liable for their proper shares of future response costs, including the remedial action for the lower 8.3 miles of the Passaic River. The Company, along with 40 of the other defendants, had previously received a release from OCC of its CERCLA contribution claim of $165 million associated with the costs to design the remedy for the lower 8.3 miles of the Passaic River. Furthermore, the Company's settlement with the EPA described above could preclude certain of the claims alleged by OCC against the Company. The Company's ultimate liability, if any, for investigatory costs, remedial costs and/or natural resource damages in connection with the lower Passaic River area cannot be determined at this time; however, as of the date of this report, the Company has found no definitive evidence that the former Standard Tallow Corporation plant sites contributed any of the COCs to the Passaic River and, therefore, there is nothing that leads the Company to believe that this matter will have a material effect on the Company's financial position, results of operations or cash flows.

(18)    Business Segments

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

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

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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
Three Months Ended April 3, 2021
Net Sales	$	651,444	$	298,065	$	97,207	$	—	$	1,046,716
Cost of sales and operating expenses	474,581		226,413		71,790		—		772,784
Gross Margin	176,863		71,652		25,417		—		273,932
Loss/(gain) on sale of assets	(139)		55		20		—		(64)
Selling, general and administrative expense	52,620		25,191		4,867		14,720		97,398
Restructuring and asset impairment charges	—		—		778		—		778
Depreciation and amortization	54,609		14,883		6,155		2,887		78,534
Equity in net income of Diamond Green Diesel	—		—		102,225		—		102,225
Segment operating income/(loss)	69,773		31,523		115,822		(17,607)		199,511
Equity in net income of other unconsolidated subsidiaries	612		—		—		—		612
Segment income/(loss)	70,385		31,523		115,822		(17,607)		200,123
Total other expense									(17,997)
Income before income taxes									$	182,126
Segment assets at April 3, 2021	$	2,708,035	$	1,235,547	$	1,229,461	$	418,404	$	5,591,447

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	Feed Ingredients		Food Ingredients		Fuel Ingredients		Corporate		Total
Three Months Ended March 28, 2020
Net Sales	$	512,625	$	270,294	$	69,923	$	—	$	852,842
Cost of sales and operating expenses	388,453		205,430		53,025		—		646,908
Gross Margin	124,172		64,864		16,898		—		205,934
Loss on sale of assets	50		2		9		—		61
Selling, general and administrative expense	53,947		25,476		1,654		15,116		96,193
Depreciation and amortization	53,521		20,305		8,092		2,753		84,671
Equity in net income of Diamond Green Diesel	—		—		97,820		—		97,820
Segment operating income/(loss)	16,654		19,081		104,963		(17,869)		122,829
Equity in net income of other unconsolidated subsidiaries	869		—		—		—		869
Segment income/(loss)	17,523		19,081		104,963		(17,869)		123,698
Total other expense									(19,307)
Income before income taxes									$	104,391
Segment assets at January 2, 2021	$	2,708,922	$	1,335,769	$	1,160,132	$	408,508	$	5,613,331

(19)    Revenue

The Company extends payment terms to its customers based on commercially acceptable practices. The term between invoicing and payment due date is not significant. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring finished products or performing services, which is generally based on an executed agreement or purchase order.

Most of the Company's products are shipped based on the customer specifications. Customer returns are infrequent and not material to the Company. Adjustments to net sales for sales deductions are generally recognized in the same period as the sale or when known. Customers in certain industries or countries may be required to prepay prior to shipment in order to maintain payment protection. These represent short-term prepayment from customers and are not material to the Company. The Company elected to treat shipping and handling as fulfilment costs, which will result in billed freight recorded in cost of sales and netted against freight costs. Sales, value-add, and other taxes collected concurrently with revenue-producing activities are excluded from revenue and booked on a net basis.

The following tables present the Company revenues disaggregated by geographic area and major product types by reportable segment for the three months ended April 3, 2021 and March 28, 2020 (in thousands):

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	Three Months Ended April 3, 2021
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	549,015	$	60,940	$	3,350	$	613,305
Europe	97,645		155,363		93,857		346,865
China	1,938		57,932		—		59,870
South America	—		10,454		—		10,454
Other	2,846		13,376		—		16,222
Net sales	$	651,444	$	298,065	$	97,207	$	1,046,716
Major product types
Fats	$	229,006	$	41,433	$	—	$	270,439
Used cooking oil	51,029		—		—		51,029
Proteins	255,507		—		—		255,507
Bakery	63,105		—		—		63,105
Other rendering	42,957		—		—		42,957
Food ingredients	—		229,542		—		229,542
Bioenergy	—		—		93,857		93,857
Biofuels	—		—		3,350		3,350
Other	9,840		27,090		—		36,930
Net sales	$	651,444	$	298,065	$	97,207	$	1,046,716

	Three Months Ended March 28, 2020
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	427,463	$	46,415	$	5,400	$	479,278
Europe	80,443		158,587		64,523		303,553
China	2,423		39,956		—		42,379
South America	—		10,586		—		10,586
Other	2,296		14,750		—		17,046
Net sales	$	512,625	$	270,294	$	69,923	$	852,842
Major product types
Fats	$	163,284	$	33,476	$	—	$	196,760
Used cooking oil	47,608		—		—		47,608
Proteins	195,980		—		—		195,980
Bakery	47,101		—		—		47,101
Other rendering	47,164		—		—		47,164
Food ingredients	—		214,793		—		214,793
Bioenergy	—		—		64,523		64,523
Biofuels	—		—		5,400		5,400
Other	11,488		22,025		—		33,513
Net sales	$	512,625	$	270,294	$	69,923	$	852,842

Revenue from Contracts with Customers

The Company has two primary revenue streams. Finished product revenues are recognized when control of the promised finished product is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the finished product. Service revenues are recognized in net sales when the service occurs.

Fats and Proteins. Fats and Proteins include the Company's global activities related to the collection and processing of beef, poultry and pork animal by-products into finished products of non-food grade oils, food grade fats and protein meal. Fats and proteins net sales are recognized when the Company ships the finished product to the customer and control has been transferred.

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Used Cooking Oil. Used cooking oil includes collection and processing of used cooking oil into finished products of non-food grade fats. Used cooking oil net sales are recognized when the Company ships the finished product to the customer and control has been transferred.

Bakery. Bakery includes collection and processing of bakery residuals into finished product including Cookie Meal®, an animal feed ingredient primarily used in poultry and swine rations. Bakery net sales are recognized when the Company ships the finished product to the customer and control has been transferred.

Other Rendering. Other rendering include hides, pet food products, and service charges. Hides and pet food net sales are recognized when the Company ships the finished product to the customer and control has been transferred. Service revenues are recognized in net sales when the service has occurred.

Food Ingredients. Food ingredients includes collection and processing of pigskin, hide, bone and fish into finished product. It also includes harvesting, sorting and selling of hog and sheep casings as well as harvesting, purchasing and processing of hog, sheep and beef meat for pet food industry. Collagen and CTH meat and casings net sales are recognized when the Company ships the finished product to the customer and control has been transferred.

Bioenergy. Bioenergy includes Ecoson, which converts organic sludge and food waste into biogas and Rendac, which collects fallen stock and animal waste for a fee and processes these materials into fats and meals that can only be used as low grade energy or fuel for boilers and cement kilns. Net sales are recognized when the finished product is shipped to the customer and control has been transferred. Service revenues are recognized in net sales when the service has occurred.

Biofuels. Biofuels includes the North American processing of rendered animal fats, recycled cooking oils and third party additives to produce diesel fuel. Biofuel net sales are recognized when the finished product is shipped to the customer and control has been transferred.

Other. Other includes grease trap collection and environmental services to food processors in the Feed Ingredients segment and Sonac Bone and Sonac Heparin in the Food Ingredients segment. Net sales are recognized when the Company ships the finished product to the customer and control has been transferred. Service revenues are recognized in net sales when the service has occurred.

Long-Term Performance Obligations. The Company from time to time enters into long-term contracts to supply certain volumes of finished products to certain customers. Revenue recognized to date in 2021 under these long-term supply contracts was approximately $15.0 million, with the remaining performance obligations to be recognized in future periods (generally 2 years) of approximately $154.7 million.

(20)    Related Party Transactions

Raw Material Agreement

The Company entered into a Raw Material Agreement with the DGD Joint Venture in May 2011 pursuant to which the Company will offer to supply certain animal fats and used cooking oil at market prices, but the DGD Joint Venture is not obligated to purchase the raw material offered by the Company. Additionally, the Company may offer other feedstocks to the DGD Joint Venture, such as inedible corn oil, purchased on a resale basis. For the three months ended April 3, 2021 and March 28, 2020, the Company has recorded sales to the DGD Joint Venture of approximately $89.0 million and $62.1 million, respectively. At April 3, 2021 and January 2, 2021, the Company has $12.6 million and $14.2 million in outstanding receivables due from the DGD Joint Venture, respectively. In addition, the Company has eliminated approximately $14.6 million and $5.7 million of additional sales for the three months ended April 3, 2021 and March 28, 2020, respectively to defer the Company's portion of profit of approximately $4.1 million and $1.0 million on those sales relating to inventory assets remaining on the DGD Joint Venture's balance sheet at April 3, 2021 and March 28, 2020, respectively.

Revolving Loan Agreement

On May 1, 2019, Darling through its wholly owned subsidiary Darling Green Energy LLC, (“Darling Green”), and Diamond Alternative Energy, LLC, a wholly owned subsidiary of Valero (“Diamond Alternative” and together with Darling Green, the “DGD Lenders”), entered into a revolving loan agreement (the “DGD Loan Agreement”) with the DGD Joint Venture. The DGD Lenders have committed to making loans available to the DGD Joint Venture in the

28

total amount of $50.0 million with each lender committed to $25.0 million of the total commitment. Any borrowings by the DGD Joint Venture under the DGD Loan Agreement are at the applicable annum rate equal to the sum of (a) the LIBO Rate (meaning Reuters BBA Libor Rates Page 3750) on such day plus (b) 2.50%. The DGD Loan Agreement matures on April 29, 2022, unless extended by agreement of the parties. As of April 3, 2021, no amounts are owed to Darling Green under the DGD Loan Agreement.

Guarantee Agreements

In February 2020, in connection with the DGD Joint Venture’s expansion project at its Norco, LA facility, it entered into two agreements (the “IMTT Terminaling Agreements”) with International-Matex Tank Terminals (“IMTT”), pursuant to which the DGD Joint Venture will move raw material and finished product to and from the IMTT terminal facility by pipeline, thereby providing better logistical capabilities.  As a condition to entering into the IMTT Terminaling Agreements, IMTT required that the Company and Valero guarantee their proportionate share, up to $50 million each, of the DGD Joint Venture’s obligations under the IMTT Terminaling Agreements (the “IMTT Guarantee”), subject to the conditions provided for in the IMTT Terminaling Agreements. The Company has not recorded any liability as a result of the IMTT Guarantee, as the Company believes the likelihood of having to make any payments under the IMTT Guarantee is remote.

In April 2021, in connection with the DGD Joint Venture’s expansion project at its Port Arthur, TX facility, it entered into two agreements (the “GTL Terminaling Agreements”) with GT Logistics, LLC (“GTL”), pursuant to which the DGD Joint Venture will move raw material and finished product to and from the GTL terminal facility by pipeline, thereby providing better logistical capabilities. As a condition to entering into the GTL Terminaling Agreements, GLT required that the Company and Valero guarantee their proportionate share, up to a maximum of approximately $160.0 million each, of the DGD Joint Venture’s obligations under the GTL Terminaling Agreements (the “GTL Guarantee”), subject to the conditions provided for in the GTL Terminaling Agreements. The maximum amount of the GTL Guarantee is reduced over the 20-year initial term of the GTL Terminaling Agreements as the termination fee under such agreements declines. The Company has not recorded any liability as a result of the GTL Guarantee, as the Company believes the likelihood of having to make any payments under the GTL Guarantee is remote.

(21)    New Accounting Pronouncements

In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes. This ASU amends Topic 740 Income Taxes, which eliminates certain exceptions in accounting for income taxes, improves consistency in application and clarifies existing guidance. The standard is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The adoption of this ASU in the first quarter of fiscal 2021 did not have a material impact on the Company's consolidated financial statements.

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Item 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements that involve risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including those set forth below under the heading “Forward Looking Statements” and elsewhere in this report, and under the heading “Risk Factors” in Part I, Item 1A in the Company's Annual Report on Form 10-K for the fiscal year ended January 2, 2021, filed with the SEC on March 2, 2021 and in the Company's other public filings with the SEC.

The following discussion should be read in conjunction with the unaudited consolidated financial statements and related notes thereto contained in this report.

Overview

Darling Ingredients Inc. (“Darling”, and together with its subsidiaries, the “Company” or “we,” “us” or “our”) is a global developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a wide range of ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy and fertilizer industries. With operations on five continents, the Company collects and transforms all aspects of animal by-product streams into useable and specialty ingredients, such as collagen, edible fats, feed-grade fats, animal proteins and meals, plasma, pet food ingredients, organic fertilizers, yellow grease, fuel feedstocks, green energy, natural casings and hides. The Company also recovers and converts recycled oils (used cooking oil and animal fats) into valuable feed and collects and processes residual bakery products into feed ingredients. In addition, the Company provides environmental services, such as grease trap collection and disposal services to food service establishments. The Company sells its products domestically and internationally and operates within three industry segments: Feed Ingredients, Food Ingredients and Fuel Ingredients.

The Feed Ingredients operating segment includes the Company's global activities related to (i) the collection and processing of beef, poultry and pork animal by-products in North America and Europe into non-food grade oils and protein meals, (ii) the collection and processing of bakery residuals in North America into Cookie Meal®, which is predominantly used in poultry and swine rations, (iii) the collection and processing of used cooking oil in North America into non-food grade fats, (iv) the collection and processing of porcine and bovine blood in China, Europe, North America and Australia into blood plasma powder and hemoglobin, (v) the processing of selected portions of slaughtered animals into a variety of meat products for use in pet food in Europe and North America, (vi) the processing of cattle hides and hog skins in North America, (vii) the production of organic fertilizers using protein produced from the Company’s animal by-products processing activities in North America and Europe, (viii) the rearing and processing of black soldier fly larvae into specialty proteins for use in animal feed and pet food in North America, and (ix) the provision of grease trap services to food service establishments in North America. Non-food grade oils and fats produced and marketed by the Company are principally sold to third parties to be used as ingredients in animal feed and pet food, as an ingredient for the production of biodiesel and renewable diesel, or to the oleo-chemical industry to be used as an ingredient in a wide variety of industrial applications. Protein meals, blood plasma powder and hemoglobin produced and marketed by the Company are sold to third parties to be used as ingredients in animal feed, pet food and aquaculture.

The Food Ingredients operating segment includes the Company's global activities related to (i) the purchase and processing of beef and pork bone chips, beef hides, pig skins, and fish skins into collagen in Europe, China, South America and North America, (ii) the collection and processing of porcine and bovine intestines into natural casings in Europe, China and North America, (iii) the extraction and processing of porcine mucosa into crude heparin in Europe, (iv) the collection and refining of animal fat into food grade fat in Europe, and (v) the processing of bones to bone chips for the collagen industry and bone ash in Europe. Collagens produced and marketed by the Company are sold to third parties to be used as ingredients in the pharmaceutical, nutraceutical, food, pet food and technical (e.g., photographic) industries. Natural casings produced and marketed by the Company are sold to third parties to be used as an ingredient in the production of sausages and other similar food products.

The Fuel Ingredients operating segment includes the Company's global activities related to (i) the Company’s share of the results of its equity investment in Diamond Green Diesel Holdings LLC, a joint venture with Valero Energy Corporation (“Valero”) to convert animal fats, recycled greases, used cooking oil, inedible corn oil, soybean oil, or other feedstocks that become economically and commercially viable into renewable diesel (the “DGD Joint Venture”) as described in Note 3 (Investment in Unconsolidated Subsidiaries) to the Company's Consolidated Financial Statements for the period ended April 3, 2021 included herein, (ii) the conversion of organic sludge and food waste into biogas in Europe,

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(iii) the collection and conversion of fallen stock and certain animal by-products pursuant to applicable E.U. regulations into low-grade energy sources to be used in industrial applications, and (iv) the processing of manure into natural bio-phosphate in Europe.

Corporate Activities principally include unallocated corporate overhead expenses, acquisition-related expenses, interest expense net of interest income, and other non-operating income and expenses.

Observations on the Effects of COVID-19

In January 2020, the World Health Organization (“WHO”) declared the coronavirus disease (“COVID-19”) a Public Health Emergency of International Concern. On February 28, 2020, the WHO raised its assessment of the COVID-19 threat from high to very high at a global level due to the continued increase in the number of cases and affected countries, and on March 11, 2020, the WHO characterized COVID-19 as a pandemic. Since then, various federal, state and local government-imposed movement restrictions and initiatives have been implemented worldwide to reduce the global transmission of COVID-19, including reduced or eliminated food services, the promotion of social distancing and the adoption of remote working policies.

To date, these restrictions have not had a material impact on the Company’s operations, as the Company operates in industries that are deemed “critical” and “essential” under the rules imposing these restrictions; however, the Company did incur approximately $7.5 million of COVID-19 related charges globally in fiscal year 2020. The Company has implemented operational guidelines throughout the Company's organization consistent with the applicable governmental and regulatory policies in the geographies the Company operates intended to protect the Company's employees and prevent the spread of the virus in the Company's workplace, and to date, all of the Company's facilities are operational. In December 2020, several vaccines were first authorized for use against COVID-19 in the United States and internationally. As a result of the distribution of these vaccines, various of the government imposed movement restrictions and initiatives have begun to be relaxed in certain areas of the United States and abroad. Notwithstanding, the Company believes the severity and duration of the COVID-19 pandemic is uncertain and such uncertainty will likely continue. Among the items that could have a significant impact on the Company's future results is a reduction in the Company's raw material supply due to disruptions in the operations of the Company's third-party suppliers. Accordingly, while to date the Company has experienced no material negative effects on the Company's business and results of operations as a result of the current COVID-19 outbreak, the situation remains dynamic and subject to rapid and possibly material change, including but not limited to changes that may materially affect the operations of the Company's supply chain partners and finished product customers, which ultimately could result in material negative effects on the Company's business and results of operations.

DGD has also implemented operational guidelines in its organization, and to date, COVID-19 has not had a material impact on DGD’s operations. We expect that biofuel regulations and mandates will continue supporting renewable diesel demand; however, a prolonged or significant decline in overall fuel demand could negatively impact the sales and profitability of DGD’s business.

The extent to which COVID-19 impacts the Company’s and DGD's results will depend on future developments, which are highly uncertain, cannot be predicted and may vary by jurisdiction and market, including the duration and scope of the pandemic, the emergence of new variants of the virus, the likelihood of a resurgence of positive cases, the development and availability of effective treatments and vaccines, the speed at which such vaccines are administered, global economic conditions during and after the pandemic and governmental actions that have been taken or may be taken in the future in response to the pandemic, among others. For additional information regarding the risks associated with COVID-19, see the important information in Item 1A. Risk Factors, under the caption “Pandemics, epidemics or disease outbreaks, such as the novel coronavirus (“COVID-19”), may disrupt our business, including, among other things, our supply chain and production processes, each of which could materially affect our operations, liquidity, financial condition and results of operations” in the Company's Annual Report on Form 10-K for the fiscal year ended January 2, 2021, as filed with the SEC on March 2, 2021.

Operating Performance Indicators

    The Company monitors the performance of its business segments using key financial metrics such as results of operations, non-GAAP measurements (Adjusted EBITDA), segment operating income, raw material processed, gross margin percentage, foreign currency translation, and corporate activities. The Company’s operating results can vary significantly due to changes in factors such as the fluctuation in energy prices, weather conditions, crop harvests, government policies and programs, changes in global demand, changes in standards of living, protein consumption, and global production of competing ingredients. Due to these unpredictable factors that are beyond the control of the Company, forward-looking financial or operational estimates are not provided. The Company is exposed to certain risks

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associated with a business that is influenced by agricultural-based commodities. These risks are further described in Item 1A of Part I, “Risk Factors” included in the Company’s Form 10-K for the fiscal year ended January 2, 2021.

    The Company’s Feed Ingredients segment animal by-products, bakery residuals, used cooking oil recovery, and blood operations are each influenced by prices for agricultural-based alternative ingredients such as corn oil, soybean oil, soybean meal, and palm oil. In these operations, the costs of the Company's raw materials change with, or in certain cases are indexed to, the selling price or the anticipated selling price of the finished goods produced from the acquired raw materials and/or in some cases, the price spread between various types of finished products. The Company believes that this methodology of procuring raw materials generally establishes a relatively stable gross margin upon the acquisition of the raw material. Although the costs of raw materials for the Feed Ingredients segment are generally based upon actual or anticipated finished goods selling prices, rapid and material changes in finished goods prices, including competing agricultural-based alternative ingredients, generally have an immediate, and often times, material impact on the Company’s gross margin and profitability resulting from the brief lapse of time between the procurement of the raw materials and the sale of the finished goods. In addition, the volume of raw material acquired, which has a direct impact on the amount of finished goods produced, can also have a material effect on the gross margin reported, as the Company has a substantial amount of fixed operating costs.

    The Company’s Food Ingredients segment collagen and natural casings products are influenced by other competing ingredients including plant-based and synthetic hydrocolloids and artificial casings. In the collagen operation, the cost of the Company's animal-based raw material moves in relationship to the selling price of the finished goods. The processing time for the Food Ingredients segment collagen and casings is generally 30 to 60 days, which is substantially longer than the Company's Feed Ingredients segment animal by-products operations. Consequently, the Company’s gross margin and profitability in this segment can be influenced by the movement of finished goods prices from the time the raw materials were procured until the finished goods are sold.

The Company’s Fuel Ingredients segment converts fats into renewable diesel, organic sludge and food waste into biogas, and fallen stock into low-grade energy sources. The Company's gross margin and profitability in this segment are impacted by world energy prices for oil, electricity, natural gas and governmental subsidies.

The reporting currency for the Company's financial statements is the U.S. dollar. The Company operates in over 15 countries and therefore, certain of the Company's assets, liabilities, revenues and expenses are denominated in functional currencies other than the U.S. dollar, primarily in the Euro, Brazilian real, Chinese renminbi, Canadian dollar and Polish zloty. To prepare the Company's consolidated financial statements, assets, liabilities, revenues, and expenses must be translated into U.S. dollars at the applicable exchange rate. As a result, increases or decreases in the value of the U.S. dollar against these other currencies will affect the amount of these items recorded in the Company's consolidated financial statements, even if their value has not changed in the functional currency. This could have a significant impact on the Company's results, if such increase or decrease in the value of the U.S. dollar relative to these other currencies is substantial.

Results of Operations

Three Months Ended April 3, 2021 Compared to Three Months Ended March 28, 2020

Operating Performance Metrics

Operating performance metrics which management routinely monitors as an indicator of operating performance include:

•Finished product commodity prices

•Segment results

•Foreign currency exchange

•Corporate activities

•Non-U.S. GAAP measures

These indicators and their importance are discussed below.

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Finished Product Commodity Prices  

Prices for finished product commodities that the Company produces in the Feed Ingredients segment are reported each business day on the Jacobsen Index (the “Jacobsen”), an established North American trading exchange price publisher. The Jacobsen reports industry sales from the prior day's activity by product. Included on the Jacobsen are reported prices for finished products such as protein (primarily meat and bone meal (“MBM”), poultry meal (“PM”) and feather meal (“FM”)), hides, fats (primarily bleachable fancy tallow (“BFT”) and yellow grease (“YG”)) and corn, which is a substitute commodity for the Company's bakery by-product (“BBP”) as well as a range of other branded and value-added products, which are products of the Company's Feed Ingredients segment. In the United States, the Company regularly monitors the Jacobsen for MBM, PM, FM, BFT, YG and corn because it provides a daily indication of the Company's U.S. revenue performance against business plan benchmarks. In Europe, the Company regularly monitors Thomson Reuters (“Reuters”) to track the competing commodities palm oil and soy meal.

Although the Jacobsen and Reuters provide useful metrics of performance, the Company's finished products are commodities that compete with other commodities such as corn, soybean oil, palm oil complex, soybean meal and heating oil on nutritional and functional values. Therefore, actual pricing for the Company's finished products, as well as competing products, can be quite volatile. In addition, neither the Jacobsen nor Reuters provides forward or future period pricing for the Company's commodities. The Jacobsen and Reuters prices quoted below are for delivery of the finished product at a specified location. Although the Company's prices generally move in concert with reported Jacobsen and Reuters prices, the Company's actual sales prices for its finished products may vary significantly from the Jacobsen and Reuters because of production and delivery timing differences and because the Company's finished products are delivered to multiple locations in different geographic regions which utilize alternative price indexes. In addition, certain of the Company's premium branded finished products may sell at prices that may be higher than the closest product on the related Jacobsen or Reuters index. During the first quarter of fiscal 2021, the Company's actual sales prices by product trended with the disclosed Jacobsen and Reuters prices.

Average Jacobsen and Reuters prices (at the specified delivery point) for the first quarter of fiscal 2021, compared to average Jacobsen and Reuters prices for the first quarter of fiscal 2020 are as follows:

	Avg. Price 1st Quarter 2021	Avg. Price 1st Quarter 2020	Increase/(Decrease)	% Increase/(Decrease)
Jacobsen:
MBM (Illinois)	$ 386.97/ton	$ 237.10/ton	$ 149.87/ton	63.2	%
Feed Grade PM (Mid-South)	$ 357.79/ton	$ 225.73/ton	$ 132.06/ton	58.5	%
Pet Food PM (Mid-South)	$ 845.08/ton	$ 540.44/ton	$ 304.64/ton	56.4	%
Feather meal (Mid-South)	$ 539.02/ton	$ 282.50/ton	$ 256.52/ton	90.8	%
BFT (Chicago)	$ 46.42/cwt	$    32.69/cwt	$ 13.73/cwt	42.0	%
YG (Illinois)	$ 34.45/cwt	$   22.92/cwt	$ 11.53/cwt	50.3	%
Corn (Illinois)	$ 5.56/bushel	$ 3.90/bushel	$ 1.66/bushel	42.6	%
Reuters:
Palm Oil (CIF Rotterdam)	$ 1,084.00/MT	$ 724.00/MT	$ 360.00/MT	49.7	%
Soy meal (CIF Rotterdam)	$ 535.00/MT	$ 360.00/MT	$ 175.00/MT	48.6	%

The following table shows the average Jacobsen and Reuters prices for the first quarter of fiscal 2021, compared to average Jacobsen and Reuters prices for the fourth quarter of fiscal 2020.

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	Avg. Price 1st Quarter 2021	Avg. Price 4th Quarter 2020	Increase/(Decrease)	% Increase/(Decrease)
Jacobsen:
MBM (Illinois)	$ 386.97/ton	$ 305.29/ton	$ 81.68/ton	26.8	%
Feed Grade PM (Mid-South)	$ 357.79/ton	$ 283.65/ton	$ 74.14/ton	26.1	%
Pet Food PM (Mid-South)	$ 845.08/ton	$ 733.12/ton	$ 111.96/ton	15.3	%
Feather meal (Mid-South)	$ 539.02/ton	$ 405.49/ton	$ 133.53/ton	32.9	%
BFT (Chicago)	$ 46.42/cwt	$    34.24/cwt	$     12.18/cwt	35.6	%
YG (Illinois)	$ 34.45/cwt	$   25.22/cwt	$   9.23/cwt	36.6	%
Corn (Illinois)	$ 5.56/bushel	$ 4.29/bushel	$ 1.27/bushel	29.6	%
Reuters:
Palm Oil (CIF Rotterdam)	$ 1,084.00/MT	$ 850.00/MT	$ 234.00/MT	27.5	%
Soy meal (CIF Rotterdam)	$ 535.00/MT	$ 485.00/MT	$ 50.00/MT	10.3	%

Segment Results

Segment operating income for the three months ended April 3, 2021 was $199.5 million, which reflects an increase of $76.7 million or 62.5% as compared to the three months ended March 28, 2020.

(in thousands, except percentages)	Feed Ingredients			Food Ingredients			Fuel Ingredients			Corporate			Total
Three Months Ended April 3, 2021
Net Sales	$	651,444		$	298,065		$	97,207		$	—		$	1,046,716
Cost of sales and operating expenses	474,581			226,413			71,790			—			772,784
Gross Margin	176,863			71,652			25,417			—			273,932
Gross Margin %	27.1		%	24.0		%	26.1		%	—		%	26.2		%
Loss/(gain) on sale of assets	(139)			55			20			—			(64)
Selling, general and administrative expenses	52,620			25,191			4,867			14,720			97,398
Restructuring and asset impairment charges	—			—			778			—			778
Depreciation and amortization	54,609			14,883			6,155			2,887			78,534
Equity in net income of Diamond Green Diesel	—			—			102,225			—			102,225
Segment operating income/(loss)	69,773			31,523			115,822			(17,607)			199,511
Equity in net income of other unconsolidated subsidiaries	612			—			—			—			612
Segment income/(loss)	70,385			31,523			115,822			(17,607)			200,123

(in thousands, except percentages)	Feed Ingredients			Food Ingredients			Fuel Ingredients			Corporate			Total
Three Months Ended March 28, 2020
Net Sales	$	512,625		$	270,294		$	69,923		$	—		$	852,842
Cost of sales and operating expenses	388,453			205,430			53,025			—			646,908
Gross Margin	124,172			64,864			16,898			—			205,934
Gross Margin %	24.2		%	24.0		%	24.2		%	—		%	24.1		%
Loss on sale of assets	50			2			9			—			61
Selling, general and administrative expenses	53,947			25,476			1,654			15,116			96,193
Depreciation and amortization	53,521			20,305			8,092			2,753			84,671
Equity in net income of Diamond Green Diesel	—			—			97,820			—			97,820
Segment operating income/(loss)	16,654			19,081			104,963			(17,869)			122,829
Equity in net income of other unconsolidated subsidiaries	869			—			—			—			869
Segment income/(loss)	17,523			19,081			104,963			(17,869)			123,698

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Feed Ingredients Segment

Raw material volume. In the three months ended April 3, 2021, the raw material processed by the Company's Feed Ingredients segment totaled approximately 2.23 million metric tons. Compared to the three months ended March 28, 2020, overall raw material volume processed in the Feed Ingredients segment decreased approximately 0.5%.

Sales. During the three months ended April 3, 2021, net sales for the Feed Ingredients segment were $651.4 million as compared to $512.6 million during the three months ended March 28, 2020, an increase of approximately $138.8 million or 27.1%. Net sales for fats were approximately $229.0 million and $163.3 million for the three months ended April 3, 2021 and March 28, 2020, respectively. Protein net sales were approximately $255.5 million and $196.0 million for the three months ended April 3, 2021 and March 28, 2020, respectively. Other rendering net sales, which include hides, pet food and service charges, were approximately $43.0 million and $47.1 million for the three months ended April 3, 2021 and March 28, 2020, respectively. Total rendering net sales were approximately $527.5 million and $406.4 million for the three months ended April 3, 2021 and March 28, 2020, respectively. Used cooking oil net sales were approximately $51.0 million and $47.6 million for the three months ended April 3, 2021 and March 28, 2020, respectively. Bakery net sales were approximately $63.1 million and $47.1 million for the three months ended April 3, 2021 and March 28, 2020, respectively, and other net sales, which includes trap services, were approximately $9.8 million and $11.5 million for the three months ended April 3, 2021 and March 28, 2020, respectively.

The increase in net sales for the Feed Ingredients segment was primarily due to the following (in millions of dollars):

	Fats		Proteins		Other Rendering		Total Rendering		Used Cooking Oil		Bakery		Other		Total
Net sales three months ended March 28, 2020	163.3		196.0		47.1		$	406.4	47.6		47.1		11.5		$	512.6
Increase/(decrease) in sales volumes	4.9		0.8		—		5.7		(6.1)		(0.9)		—		(1.3)
Increase in finished product prices	58.2		52.3		—		110.5		9.5		16.9		—		136.9
Increase due to currency exchange rates	2.6		6.4		0.1		9.1		—		—		—		9.1
Other change	—		—		(4.2)		(4.2)		—		—		(1.7)		(5.9)
Total change	65.7		59.5		(4.1)		121.1		3.4		16.0		(1.7)		138.8
Net sales three months ended April 3, 2021	$	229.0	$	255.5	$	43.0	$	527.5	$	51.0	$	63.1	$	9.8	$	651.4

Margins. In the Feed Ingredients segment for the three months ended April 3, 2021, the gross margin percentage increased to 27.1% as compared to 24.2% for the comparable period of fiscal 2020. The increase is primarily due to higher overall finished product prices as compared to fiscal 2020.

Segment operating income. Feed Ingredients operating income for the three months ended April 3, 2021 was $69.8 million, an increase of $53.1 million or 318.0% as compared to the three months ended March 28, 2020. The increase is due to higher overall finished product prices as compared to the same period in fiscal 2020.

Food Ingredients Segment

Raw material volume. In the three months ended April 3, 2021, the raw material processed by the Company's Food Ingredients segment totaled approximately 274,000 metric tons. Compared to the three months ended March 28, 2020, overall raw material volume processed in the Food Ingredients segment increased approximately 5.0%.

Sales. Overall sales increased in the Food Ingredients segment primarily due to higher sales volumes in the collagen markets and higher edible fat prices.

Margins. In the Food Ingredients segment for the three months ended April 3, 2021 and March 28, 2020, the gross margin percentage remained constant at 24.0%.

Segment operating income. Food Ingredients operating income was $31.5 million for the three months ended April 3, 2021, an increase of $12.4 million or 64.9% as compared to the three months ended March 28, 2020. The increase

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is primarily due to higher sales volumes in North America and China collagen markets and higher fat prices in the edible fat market. This was offset by the impact of lower volumes in Europe and a weaker Brazilian real and lower volumes in Brazil as a result of the COVID-19 outbreak in South America.

Fuel Ingredients Segment

Raw material volume. In the three months ended April 3, 2021, the raw material processed by the Company's Fuel Ingredients segment totaled approximately 328,000 metric tons. Compared to the three months ended March 28, 2020, overall raw material volume processed in the Fuel Ingredients segment increased approximately 0.1%.

Sales. Overall sales increased in the Fuel Ingredients segment primarily due to higher sales volumes and prices in Europe.

Margins. In the Fuel Ingredients segment (exclusive of the equity contribution from the DGD Joint Venture) for the three months ended April 3, 2021, the gross margin percentage increased to 26.1% as compared to 24.2% for the comparable period of fiscal 2020. The increase is primarily due to higher finished product prices and demand in Europe in fiscal 2021 as compared to fiscal 2020.

Segment operating income. The Company's Fuel Ingredients segment operating income (inclusive of the equity contribution from the DGD Joint Venture) for the three months ended April 3, 2021 was $115.8 million, an increase of $10.8 million or 10.3% as compared to the same period in fiscal 2020. The increase is due to higher sale volumes and higher finished product prices from increased demand in Europe as well as an increase in renewable identification number (RIN) prices and diesel fuel prices at the DGD Joint Venture.

Foreign Currency Exchange

    During the first quarter of fiscal 2021, the euro and Canadian dollar strengthened against the U.S. dollar as compared to the same period in fiscal 2020. Using actual results for the three months ended April 3, 2021 and using the prior year's average currency rate for the three months ended March 28, 2020, foreign currency translation would result in a decrease in operating income of approximately $8.0 million. The average rates assumptions used in this calculation were the actual fiscal average rates for the three months ended April 3, 2021 of €1.00:USD$1.20 and CAD$1.00:USD$0.79 as compared to the average rates for the three months ended March 28, 2020 of €1.00:USD$1.10 and CAD$1.00:USD$0.75, respectively.

Corporate Activities

Selling, General and Administrative Expenses.  Selling, general and administrative expenses were $14.7 million during the three months ended April 3, 2021, compared to $15.1 million during the three months ended March 28, 2020, a decrease of $0.4 million.  The decrease is primarily due to lower corporate related benefits, lower travel related costs, lower legal costs and lower overall other costs that more than offset an increase in insurance costs and tax and license costs.

Depreciation and Amortization.  Depreciation and amortization charges increased slightly by $0.1 million to $2.9 million during the three months ended April 3, 2021, as compared to $2.8 million during the three months ended March 28, 2020.

Interest Expense. Interest expense was $16.4 million during the three months ended April 3, 2021, compared to $19.1 million during the three months ended March 28, 2020, a decrease of $2.7 million. The decrease is primarily due to lower Term loan B debt outstanding from partial pay-downs and lower interest on the Term loan B and revolver borrowings as a result of lower interest rates that more than offset an increase in deferred loan cost expense and higher interest expense from foreign currency translation on the Company's 3.625% Senior Notes.

Foreign Currency Gain/(Loss).  Foreign currency losses were $0.4 million for the three months ended April 3, 2021 as compared to foreign currency gains of $1.7 million for the three months ended March 28, 2020. The loss in foreign currency is due primarily to an increase in losses on the revaluation of non-functional currency assets and liabilities as compared to the same period in fiscal 2020.

Other Expense, net. Other expense was $1.2 million in the three months ended April 3, 2021, compared to other expense of $1.9 million for the three months ended March 28, 2020. The decrease in other expense was primarily due to a decrease in the non-service component of pension expense and casualty losses as compared to the same period in fiscal 2020.

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Equity in Net Income in Investment of Other Unconsolidated Subsidiaries. The change in this line item is not significant and primarily represents the Company's pro rata share of the net income from foreign unconsolidated subsidiaries.

Income Taxes. The Company recorded income tax expense of $28.7 million for the three months ended April 3, 2021, compared to $18.3 million of income tax expense recorded in the three months ended March 28, 2020, an increase of $10.4 million, which is primarily due to increased pre-tax earnings of the Company for the first three months of fiscal 2021. The effective tax rate for the first three months of fiscal 2021 and 2020 is 15.8% and 17.5%, respectively. The effective tax rate for the first three months of fiscal 2021 and 2020 differs from the federal statutory rate of 21% due primarily to the relative mix of earnings among jurisdictions with different tax rates (including foreign withholding taxes and state income taxes), biofuel tax incentives, and discrete items, including excess tax benefits from stock-based compensation. The Company's effective tax rate excluding discrete items is 20.0% for the three months ended April 3, 2021, compared to 18.8% for the three months ended March 28, 2020.

Non-U.S. GAAP Measures

Adjusted EBITDA is not a recognized accounting measurement under GAAP; it should not be considered as an alternative to net income, as a measure of operating results, or as an alternative to cash flow as a measure of liquidity. It is presented here not as an alternative to net income, but rather as a measure of the Company's operating performance. Since EBITDA (generally, net income plus interest expense, taxes, depreciation and amortization) is not calculated identically by all companies, the presentation in this report may not be comparable to EBITDA or Adjusted EBITDA presentations disclosed by other companies. Adjusted EBITDA is calculated below and represents for any relevant period, net income/(loss) plus depreciation and amortization, goodwill and long-lived asset impairment, interest expense, (income)/loss from discontinued operations, net of tax, income tax provision, other income/(expense) and equity in net (income)/loss of unconsolidated subsidiary. Management believes that Adjusted EBITDA is useful in evaluating the Company's operating performance compared to that of other companies in its industry because the calculation of Adjusted EBITDA generally eliminates the effects of financing, income taxes and certain non-cash and other items that may vary for different companies for reasons unrelated to overall operating performance.  

As a result, the Company’s management uses Adjusted EBITDA as a measure to evaluate performance and for other discretionary purposes.  In addition to the foregoing, management also uses or will use Adjusted EBITDA to measure compliance with certain financial covenants under the Company’s Senior Secured Credit Facilities, 5.25% Notes and 3.625% Notes that were outstanding at April 3, 2021.  However, the amounts shown below for Adjusted EBITDA differ from the amounts calculated under similarly titled definitions in the Company’s Senior Secured Credit Facilities, 5.25% Notes and 3.625% Notes, as those definitions permit further adjustments to reflect certain other non-recurring costs, non-cash charges and cash dividends from the DGD Joint Venture. Additionally, the Company evaluates the impact of foreign exchange on operating cash flow, which is defined as segment operating income (loss) plus depreciation and amortization.

Reconciliation of Net Income to (Non-GAAP) Adjusted EBITDA and (Non-GAAP) Pro Forma Adjusted EBITDA

First Quarter 2021 As Compared to First Quarter 2020

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	Three Months Ended
(dollars in thousands)	April 3, 2021		March 28, 2020
Net income attributable to Darling	$	151,766	$	85,510
Depreciation and amortization	78,534		84,671
Interest expense	16,428		19,090
Income tax expense	28,708		18,300
Restructuring and asset impairment charges	778		—
Foreign currency loss/(gain)	410		(1,664)
Other expense, net	1,159		1,881
Equity in net income of Diamond Green Diesel	(102,225)		(97,820)
Equity in net income of unconsolidated subsidiaries	(612)		(869)
Net income attributable to non-controlling interests	1,652		581
Darling's Adjusted EBITDA	$	176,598	$	109,680
Foreign currency exchange impact (1)	(8,050)		—
Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP)	$	168,548	$	109,680
DGD Joint Venture Adjusted EBITDA (Darling's Share)	$	108,200	$	103,634
Darling plus Darling's share of DGD Joint Venture Adjusted EBITDA	$	284,798	$	213,314

(1) The average rates assumption used in this calculation was the actual fiscal average rate for the three months ended April 3, 2021 of €1.00:USD$1.20 and CAD$1.00:USD$0.79 as compared to the average rate for the three months ended March 28, 2020 of €1.00:USD$1.10 and CAD$1.00:USD$0.75, respectively.

FINANCING, LIQUIDITY AND CAPITAL RESOURCES

Credit Facilities

Indebtedness

Certain Debt Outstanding at April 3, 2021. On April 3, 2021, debt outstanding under the Company's Amended Credit Agreement, the Company's 5.25% Notes and the Company's 3.625% Notes consists of the following (in thousands):    

Senior Notes:
5.25 % Notes due 2027	$	500,000
Less unamortized deferred loan costs	(5,553)
Carrying value of 5.25% Notes due 2027	$	494,447
3.625 % Notes due 2026 - Denominated in euros	$	606,310
Less unamortized deferred loan costs	(6,046)
Carrying value of 3.625% Notes due 2026	$	600,264
Amended Credit Agreement:
Term Loan B	$	250,000
Less unamortized deferred loan costs	(2,979)
Carrying value of Term Loan B	$	247,021
Revolving Credit Facility:
Maximum availability	$	1,000,000
Ancillary Facilities	47,295
Borrowings outstanding	69,000
Letters of credit issued	3,845
Availability	$	879,860
Other Debt	$	33,799

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During the first three months of fiscal 2021, the U.S. dollar strengthened as compared to the euro at January 2, 2021. Using the euro based debt outstanding at April 3, 2021 and comparing the closing balance sheet rate at April 3, 2021 to the balance sheet rate at January 2, 2021, the U.S. dollar debt balances of euro based debt decreased by approximately $25.7 million at April 3, 2021. The closing balance sheet rate assumption used in this calculation was the actual fiscal closing balance sheet rate at April 3, 2021 of €1.00:USD$1.17730 as compared to the closing balance sheet rate at January 2, 2021 of €1.00:USD$1.22750.

Senior Secured Credit Facilities. On January 6, 2014, Darling, Darling International Canada Inc. (“Darling Canada”) and Darling International NL Holdings B.V. (“Darling NL”) entered into a Second Amended and Restated Credit Agreement (as subsequently amended, the “Amended Credit Agreement”), restating its then existing Amended and Restated Credit Agreement dated September 27, 2013, with the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other agents from time to time party thereto. Effective September 18, 2020, the Company, and certain of its subsidiaries entered into an amendment (the “Sixth Amendment”) with its lenders to the Amended Credit Agreement. Among other things, the Sixth Amendment (i) extended the maturity date of the revolving credit facility under the Credit Agreement from December 16, 2021 to September 18, 2025, (ii) increased the leverage ratio applicable to achieving the lowest applicable margin on borrowings under the revolving credit facility from 1.0 to 1.5, (iii) eliminated or modified certain of the negative covenants to increase the allowances for certain actions, including the incurrence of debt and investments, (iv) limited guarantees from, and security with respect to, entities organized outside of the United States and Canada to a limited group of foreign subsidiary holding companies, (v) included a collateral release mechanism, subject to the consent of the term loan B lenders, upon the Company achieving certain investment grade credit ratings, and (vi) made other market updates and changes. For more information regarding the Amended Credit Agreement see Note 9 (Debt) to the Company's Consolidated Financial Statements included herein.

•As of April 3, 2021, the Company had availability of $879.9 million under the revolving credit facility, taking into account that the Company had $69.0 million in outstanding borrowings, $47.3 million in ancillary facilities and letters of credit issued of $3.8 million.

•As of April 3, 2021, the Company has borrowed all $525.0 million under the terms of the term loan B facility and repaid approximately $275.0 million, which when repaid, cannot be reborrowed. The term loan B facility is repayable in quarterly installments of 0.25% of the aggregate principal amount of the relevant term loan B facility on the last day of each March, June, September and December of each year commencing on the last day of each month falling on or after the last day of the first full quarter following December 18, 2017, and continuing until the last day of each quarter period ending immediately prior to December 18, 2024; and one final installment in the amount of the relevant term loan B facility then outstanding, due on December 18, 2024. The term loan B facility will mature on December 18, 2024.

•The interest rate applicable to any borrowings under the revolving credit facility will equal either LIBOR/euro interbank offered rate/CDOR plus 1.50% per annum or base rate/Canadian prime rate plus 0.50% per annum, subject to certain step-downs or step-ups based on the Company's total leverage ratio. The interest rate applicable to any borrowings under the term loan B facility will equal the base rate plus 1.00% or LIBOR plus 2.00%.

5.25 % Senior Notes due 2027. On April 3, 2019, Darling issued and sold $500.0 million aggregate principal amount of 5.25% Senior Notes due 2027 (the “5.25% Notes”). The 5.25% Notes, which were offered in a private offering, were issued pursuant to a Senior Notes Indenture, dated as of April 3, 2019 (the “5.25% Indenture”), among Darling, the subsidiary guarantors party thereto from time to time, and Regions Bank, as trustee. The 5.25% Notes are guaranteed on a senior unsecured basis by Darling and all of Darling's restricted subsidiaries (other than foreign subsidiaries).

3.625% Senior Notes due 2026. On May 2, 2018, Darling Global Finance B.V. issued and sold €515.0 million aggregate principal amount of 3.625% Senior Notes due 2026 (the “3.625% Notes”). The 3.625% Notes, which were offered in a private offering, were issued pursuant to a Senior Notes Indenture, dated as of May 2, 2018 (the “3.625% Indenture”), among Darling Global Finance B.V., Darling, the subsidiary guarantors party thereto from time to time, Citibank, N.A., London Branch, as trustee and principal paying agent, and Citigroup Global Markets Deutschland AG, as principal registrar. The 3.625% Notes are guaranteed on a senior unsecured basis by Darling and all of Darling's restricted subsidiaries (other than any foreign subsidiary or any receivable entity) that guarantee the Senior Secured Credit Facilities.

Other debt consists of U.S and European finance lease obligations, note arrangements in Brazil, China and European notes that are not part of the Company's Amended Credit Agreement, 5.25% Notes or 3.625% Notes.

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The classification of long-term debt in the Company’s April 3, 2021 consolidated balance sheet is based on the contractual repayment terms of the 5.25% Notes, the 3.625% Notes and debt issued under the Amended Credit Agreement.

As a result of the Company's borrowings under its Amended Credit Agreement, the 5.25% Indenture and the 3.625% Indenture, the Company is highly leveraged. Investors should note that, in order to make scheduled payments on the indebtedness outstanding under the Amended Credit Agreement, the 5.25% Notes and the 3.625% Notes, and otherwise, the Company will rely in part on a combination of dividends, distributions and intercompany loan repayments from the Company's direct and indirect U.S. and foreign subsidiaries. The Company is prohibited under the Amended Credit Agreement, the 5.25% Indenture and the 3.625% Indenture from entering (or allowing such subsidiaries to enter) into contractual limitations on the Company's subsidiaries’ ability to declare dividends or make other payments or distributions to the Company. The Company has also attempted to structure the Company's consolidated indebtedness in such a way as to maximize the Company's ability to move cash from the Company's subsidiaries to Darling or another subsidiary that will have fewer limitations on the ability to make upstream payments, whether to Darling or directly to the Company's lenders as a Guarantor. Nevertheless, applicable laws under which the Company's direct and indirect subsidiaries are formed may provide limitations on such dividends, distributions and other payments. In addition, regulatory authorities in various countries where the Company operates or where the Company imports or exports products may from time to time impose import/export limitations, foreign exchange controls or currency devaluations that may limit the Company's access to profits from the Company's subsidiaries or otherwise negatively impact the Company's financial condition and therefore reduce the Company's ability to make required payments under the Amended Credit Agreement, the 5.25% Notes and the 3.625% Notes, or otherwise. In addition, fluctuations in foreign exchange values may have a negative impact on the Company's ability to repay indebtedness denominated in U.S. or Canadian dollars or euros. See “Risk Factors - Our business may be adversely impacted by fluctuations in exchange rates, which could affect our ability to comply with our financial covenants” and “ - Our ability to repay our indebtedness depends in part on the performance of our subsidiaries, including our non-guarantor subsidiaries, and their ability to make payments” in the Company's Annual Report on Form 10-K for the fiscal year ended January 2, 2021 as filed with the SEC on March 2, 2021.

As of April 3, 2021, the Company believes it is in compliance with all of the financial covenants under the Amended Credit Agreement, as well as all of the other covenants contained in the Amended Credit Agreement, the 5.25% Indenture and the 3.625% Indenture.

Working Capital and Capital Expenditures

On April 3, 2021, the Company had working capital of $303.1 million and its working capital ratio was 1.48 to 1 compared to working capital of $311.7 million and a working capital ratio of 1.46 to 1 on January 2, 2021.  As of April 3, 2021, the Company had unrestricted cash of $71.2 million and funds available under the revolving credit facility of $879.9 million, compared to unrestricted cash of $81.6 million and funds available under the revolving credit facility of $893.9 million at January 2, 2021. The Company diversifies its cash investments by limiting the amounts deposited with any one financial institution.

Net cash provided by operating activities was $138.8 million for the first three months ended April 3, 2021, as compared to net cash provided by operating activities of $34.5 million for the first three months ended March 28, 2020, an increase of $104.3 million due primarily to an increase in net income of approximately $67.3 million and changes in operating assets and liabilities that includes approximately $10.2 million of an increase in cash provided by accounts receivable and approximately $33.8 million of an increase in cash provided by other primarily from a reduction of foreign governmental sales taxes and hedging activities.  Cash used by investing activities was $64.3 million for the first three months ended April 3, 2021, compared to $64.6 million for the first three months ended March 28, 2020, a decrease in cash used by investing activities of $0.3 million, primarily due to a decrease in capital asset spending.  Net cash used by financing activities was $81.0 million for the first three months ended April 3, 2021, compared to net cash provided by financing activities of $40.4 million for the first three months ended March 28, 2020, an increase in net cash used by financing activities of $121.4 million, primarily due to payment of outstanding debt in the first three months ended April 3, 2021 compared to increased revolver borrowings in the first three months ended March 28, 2020.

Capital expenditures of $60.8 million were made during the first three months of fiscal 2021, compared to $61.6 million in the first three months of fiscal 2020, for a net decrease of $0.8 million or 1.3%.  The Company expects to incur additional capital expenditures of approximately $250 million for the remainder of fiscal 2021 including compliance and expansion projects. The Company intends to finance these costs using cash flows from operations. Capital expenditures related to compliance with environmental regulations were $5.5 million and $6.9 million during the first three months ended April 3, 2021 and March 28, 2020, respectively.

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Accrued Insurance and Pension Plan Obligations

Based upon the annual actuarial estimate, current accruals and claims paid during the first three months of fiscal 2021, the Company has accrued approximately $11.0 million it expects will become due during the next twelve months in order to meet obligations related to the Company’s self insurance reserves and accrued insurance obligations, which are included in current accrued expenses at April 3, 2021.  The self insurance reserve is composed of estimated liability for claims arising for workers’ compensation, auto liability and general liability claims.  The self insurance reserve liability is determined annually, based upon a third party actuarial estimate.  The actuarial estimate may vary from year to year due to changes in cost of health care, the pending number of claims or other factors beyond the control of management of the Company. 

Based upon current actuarial estimates, the Company expects to contribute approximately $0.3 million to its domestic pension plans in order to meet minimum pension funding requirements during the next twelve months.  In addition, the Company expects to make payments of approximately $3.5 million under its foreign pension plans in the next twelve months.  The minimum pension funding requirements are determined annually, based upon a third party actuarial estimate.  The actuarial estimate may vary from year to year due to fluctuations in return on investments or other factors beyond the control of management of the Company or the administrator of the Company’s pension funds.  No assurance can be given that the minimum pension funding requirements will not increase in the future.  The Company has not made any tax deductible discretionary and required contributions to its domestic pension plans for the first three months ended April 3, 2021. Additionally, the Company has made required and tax deductible discretionary contributions to its foreign pension plans for the first three months ended April 3, 2021 of approximately $0.9 million.

The U.S. Pension Protection Act of 2006 (“PPA”) went into effect in January 2008.  The stated goal of the PPA is to improve the funding of U.S. pension plans.  U.S. plans in an under-funded status are required to increase employer contributions to improve the funding level within PPA timelines.  Volatility in the world equity and other financial markets, including that associated with the current COVID-19 outbreak, could have a material negative impact on U.S. pension plan assets and the status of required funding under the PPA.  The Company participates in various U.S. multiemployer pension plans which provide defined benefits to certain employees covered by labor contracts.  These plans are not administered by the Company and contributions are determined in accordance with provisions of negotiated labor contracts to meet their pension benefit obligations to their participants. The Company's contributions to each individual U.S. multiemployer plan represent less than 5% of the total contributions to each plan. Based on the most currently available information, the Company has determined that, if a withdrawal were to occur, withdrawal liabilities for two of the U.S. plans in which the Company currently participates could be material to the Company, with one of these material plans certified as critical or red zone under PPA guidelines. With respect to the other U.S. multiemployer pension plans in which the Company participates and which are not individually significant, five plans have certified as critical or red zone and two have certified as endangered or yellow zone as defined by the PPA. The Company currently has withdrawal liabilities recorded on four U.S. multiemployer plans in which it participated. During the first quarter of fiscal 2021, the Company was notified by one of these multiemployer plans that the Company's withdrawal liability has increased and as a result the Company recorded an additional liability of approximately $1.3 million. As of April 3, 2021, the Company has an aggregate accrued liability of approximately $4.0 million representing the present value of scheduled withdrawal liability payments on the multiemployer plans that have given notice of withdrawal. While the Company has no ability to calculate a possible current liability for under-funded multiemployer plans that could terminate or could require additional funding under the PPA, the amounts could be material.

DGD Joint Venture

In January 2011, Darling, through a wholly-owned subsidiary, entered into a limited liability company agreement (as subsequently amended, the “DGD LLC Agreement”) with Valero to form the DGD Joint Venture. The DGD Joint Venture is owned 50% / 50% with Valero and was formed to design, engineer, construct and operate a renewable diesel plant located adjacent to Valero's refinery in Norco, Louisiana (the “DGD Norco Facility”). The DGD Norco Facility reached mechanical completion and began the production of renewable diesel in late June 2013 and is currently capable of producing 290 million gallons of renewable diesel per year and certain other co-products. Effective May 1, 2019, the DGD LLC Agreement was amended and restated for the purpose of updating the agreement in certain respects, including to remove certain provisions that were no longer relevant and to add new provisions relating to the DGD Joint Venture’s ongoing expansion project to construct a new, parallel facility located next to the current facility, as further described below.

On May 1, 2019, Darling, through its wholly owned subsidiary Darling Green Energy LLC, (“Darling Green”), and Diamond Alternative Energy, LLC, a wholly owned subsidiary of Valero (“Diamond Alternative” and together with

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Darling Green, the “DGD Lenders”) entered into a revolving loan agreement (the “DGD Loan Agreement”) with the DGD Joint Venture. The DGD Lenders have committed to make loans available to the DGD Joint Venture in the total amount of $50.0 million with each lender committed to $25.0 million of the total commitment. Any borrowings by the DGD Joint Venture under the DGD Loan Agreement are at the applicable annum rate equal to the sum of (a) the LIBO Rate (meaning Reuters BBA Libor Rates Page 3750) on such day plus (b) 2.50%. The DGD Loan Agreement matures on April 29, 2022, unless extended by agreement of the parties. As of April 3, 2021, no amounts are owed to the DGD Lenders under the DGD Loan Agreement.

On March 30, 2021, the DGD Joint Venture entered into a $400.0 million senior, unsecured revolving credit facility, with CoBank ACB acting as lead arranger and the administrative agent for the lending group, which is comprised of Farm Credit System institutions. The new revolving credit facility matures March 30, 2024 and is non-recourse to the joint venture partners.

Based on the sponsor support agreements executed in connection with the initial construction of the DGD Norco Facility, the Company contributed a total of approximately $111.7 million for completion of the DGD Norco Facility including the Company's portion of cost overruns and working capital funding. As of April 3, 2021, under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $879.7 million included on the consolidated balance sheet.

The DGD Joint Venture began work on an expansion of the DGD Norco Facility in 2019, which is expected to increase its renewable diesel production by 400 million gallons per year and provide the capability to separate renewable naphtha (approximately 30 million gallons) and other light end renewable hydrocarbons for sale into low carbon fuel markets. In addition, the expansion project includes expanded inbound and outbound logistics, thereby improving feedstock sourcing flexibility as well as finished product marketing flexibility. The DGD Joint Venture estimates completion and startup of the expanded portion of the facility in the fourth quarter of 2021, and the total cost of the expansion project, including the naphtha production and improved logistics capability, is estimated to be approximately $1.1 billion. Based on forecasted margins as of the date of this report, the expansion project is expected to be substantially funded by DGD Joint Venture cash flow; however, the DGD LLC Agreement provides that until such time as the expansion of the DGD Norco Facility is complete and operational, the joint venture partners shall be required to make capital contributions or, if they agree, loans, to the DGD Joint Venture should the excess available cash in the DGD Joint Venture, as determined and in accordance with the DGD LLC Agreement, fall below $50 million. Additionally, in January 2021, the joint venture partners approved the construction of a new facility to be located next to Valero’s Port Arthur Refinery in Port Arthur, Texas, capable of producing 470 million gallons per year of renewable diesel and 20 million gallons per year of renewable naphtha and having similar logistics flexibilities as those of the DGD Norco Facility. The new plant is anticipated to commence operations in the second half of 2023 and the total cost of the expansion project is estimated to be approximately $1.45 billion. Once operational, the new plant is expected to increase the DGD Joint Venture’s total renewable diesel production capacity to almost 1.2 billion gallons per year. Based on forecasted margins as of the date of this report, the Port Arthur expansion project is expected to be substantially funded by DGD Joint Venture cash flow; however, if the DGD Joint Venture cash flow is not sufficient to fully fund the project, the DGD Joint Venture may need to borrow funds or the joint venture partners may be required to contribute additional funds to complete the project.

In April 2019, the joint venture partners adopted a distribution policy that, unless earlier terminated by the partners, will remain in place through the construction and completion of the DGD Norco Facility. Pursuant to the distribution policy, the DGD Joint Venture will make quarterly distributions to the partners to the extent that distributable cash (as determined in accordance with the policy) exceeds $50 million and the DGD Joint Venture’s forward looking cash forecast. During the three months ended April 3, 2021, the DGD Joint Venture has not made any distributions to the partners.

The Company’s original investment in DGD has expanded since 2011 to the point that it is now integral to how Darling operates its business. Darling traditionally collected and converted used cooking oil and animal fats into feed ingredients which were sold on a caloric value to feed animals as well as for industrial technical uses. Over the past decade, the world’s increasing focus on climate change and greenhouse gas has provided a new finished market for the Company’s finished fats ingredients. With Darling’s significant fats ownership, this has and continues to transform how Darling operates. In 2020, a large portion of Darling’s total U.S. finished fats products were sold to the DGD Norco Facility as feedstock for renewable diesel. In 2020, DGD was Darling’s largest finished product customer in terms of sales, with Darling recording sales of approximately $264.1 million to DGD.

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From a procurement, production and distribution standpoint, DGD has become integral to Darling’s base business. DGD is integrated to the Company’s operations via the combined vertical operating structure from collecting raw fats, to processing collected fats at Darling facilities nationwide to transporting the refined fats to the DGD Norco Facility as feedstock. The Darling supply chain has become more efficient and sustainable with transparency for verification to obtain full value to low carbon intensity markets. The development of the low carbon markets in North America and Europe has influenced how Darling operates its core business and has also been a driver for the recent DGD expansions, which are making DGD much more relevant to Darling’s earnings. Since 2011 when construction began on DGD, Darling has invested substantially to increase its U.S. railcar fleet to efficiently manage nationwide transportation of Darling fats to DGD. Additionally, Darling acquired an Iowa location on the Mississippi River that further enhances the ability of the Company's Midwest network of facilities to collect and deliver feedstocks to DGD via water, rail or truck from a centralized location. Darling has also stepped up collection efforts by providing indoor used cooking oil collection units in exchange for extended collection contracts at eating establishments and has moved to more of a centralized digital marketing effort with restaurant chains and franchise groups and invested in internet search engine key words to improve visibility with restaurants. The Company also includes DGD in marketing efforts to emphasize environmental sustainability that restaurants participate in when their used cooking oil is collected by Darling. From a production standpoint, Darling now isolates used cooking oil from other fats to preserve identification to qualify for a higher carbon intensity value. As a result, the Company includes its equity in net income of the DGD Joint Venture as operating income.

Financial Impact of Significant Debt Outstanding

The Company has a substantial amount of indebtedness, which could make it more difficult for the Company to satisfy its obligations to its financial lenders and its contractual and commercial commitments, limit the Company's ability to obtain additional financing to fund future working capital, capital expenditures, acquisitions or other general corporate requirements on commercially reasonable terms or at all, require the Company to use a substantial portion of its cash flows from operations to pay principal and interest on its indebtedness instead of other purposes, thereby reducing the amount of the Company's cash flows from operations available for working capital, capital expenditures, acquisitions and other general corporate purposes, increase the Company's vulnerability to adverse economic, industry and business conditions, expose the Company to the risk of increased interest rates as certain of the Company's borrowings are at variable rates of interest, limit the Company's flexibility in planning for, or reacting to, changes in the Company's business and the industry in which the Company operates, place the Company at a competitive disadvantage compared to other, less leveraged competitors, and/or increase the Company's cost of borrowing.

Cash Flows and Liquidity Risks

Management believes that the Company’s cash flows from operating activities, unrestricted cash and funds available under the Amended Credit Agreement, will be sufficient to meet the Company’s working capital needs and maintenance and compliance-related capital expenditures, scheduled debt and interest payments, income tax obligations, and other contemplated needs through the next twelve months. Numerous factors could have adverse consequences to the Company that cannot be estimated at this time, such as negative impacts from the current COVID-19 outbreak and those other factors discussed below under the heading “Forward Looking Statements”.  These factors, coupled with volatile prices for natural gas and diesel fuel, currency exchange fluctuations, general performance of the U.S. and global economies, disturbances in world financial, credit, commodities and stock markets, and any decline in consumer confidence, including the inability of consumers and companies to obtain credit due to lack of liquidity in the financial markets, among others, could negatively impact the Company’s results of operations in fiscal year 2021 and thereafter.  The Company reviews the appropriate use of unrestricted cash periodically.  As of the date of this report, no decision has been made as to non-ordinary course material cash usages at this time; however, potential usages could include:  opportunistic capital expenditures and/or acquisitions and joint ventures;  investments relating to the Company’s renewable energy strategy, including, without limitation, potential required funding obligations with respect to the DGD Joint Venture expansion projects or potential investments in additional renewable diesel and/or biodiesel projects;  investments in response to governmental regulations relating to human and animal food safety or other regulations;  unexpected funding required by the legislation, regulation or mass termination of multiemployer plans; and paying dividends or repurchasing stock, subject to limitations under the Amended Credit Agreement, the 5.25% Notes and the 3.625% Notes, as well as suitable cash conservation to withstand adverse commodity cycles. The Company's Board of Directors has approved a share repurchase program of up to an aggregate of $200.0 million of the Company's Common Stock depending on market conditions. The repurchases may be made from time to time on the open market at prevailing market prices or in negotiated transactions off the market. The program runs through August 13, 2022, unless further extended or shortened by the Board of Directors. During the first three months of fiscal 2021, the Company has not repurchased any of its common stock in the open market. As of April 3, 2021, the Company had approximately $200.0 million remaining in its share repurchase program.

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Each of the factors described above has the potential to adversely impact the Company's liquidity in a variety of ways, including through reduced raw materials availability, reduced finished product prices, reduced sales, potential inventory buildup, increased bad debt reserves, potential impairment charges and/or higher operating costs.

Sales prices for the principal products that the Company sells are typically influenced by sales prices for agricultural-based alternative ingredients, the prices of which are based on established commodity markets and are subject to volatile changes. Any decline in these prices has the potential to adversely impact the Company's liquidity. Any of a decline in raw material availability, a decline in agricultural-based alternative ingredients prices, increases in energy prices or the impact of U.S. and foreign regulation (including, without limitation, China), changes in foreign exchange rates, imposition of currency controls and currency devaluations has the potential to adversely impact the Company's liquidity. A decline in commodities prices, a rise in energy prices, a slowdown in the U.S. or international economy or other factors could cause the Company to fail to meet management's expectations or could cause liquidity concerns.

Supplemental Guarantor Financial Information

The following is a description of the terms and conditions of the guarantees with respect to senior notes for which Darling is an issuer or provides full and unconditional guarantee.

Note Guarantees

The Company's 5.25% Notes and 3.625% Notes (see Note 9 (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 collectively 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., DarPro Storage Solutions LLC, Darling Global Holdings Inc., Rousselot Inc., Rousselot Dubuque Inc., Sonac USA LLC and Rousselot Peabody Inc (collectively, the “Notes Guarantors”). 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 tables present summarized financial information 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 summarized financial information, which include summarized condensed consolidated balance sheets as of April 3, 2021 and January 2, 2021, and the summarized condensed consolidating statements of operations for the three months ended April 3, 2021 and March 28, 2020. 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.

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Summarized Financial Information

Condensed Balance Sheet Information

(in thousands)

April 3, 2021	Parent		Notes Guarantors		Non-guarantors		Eliminations		Consolidated
Current assets	$	109,043	$	947,490	$	1,105,855	$	(1,221,621)	$	940,767
Noncurrent assets	6,644,267		2,450,113		3,848,471		(8,292,171)		4,650,680
Current liabilities	1,376,700		87,313		395,316		(1,221,622)		637,707
Noncurrent liabilities	1,276,606		19,897		792,113		(164,822)		1,923,794
Stockholders' equity	4,100,004		3,290,393		3,766,897		(8,127,348)		3,029,946
January 2, 2021
Current assets	$	103,728	$	881,669	$	1,177,869	$	(1,176,272)	$	986,994
Noncurrent assets	6,476,886		2,465,785		3,753,644		(8,069,978)		4,626,337
Current liabilities	1,345,233		77,573		428,771		(1,176,272)		675,305
Noncurrent liabilities	1,254,518		19,755		826,157		(116,613)		1,983,817
Stockholders' equity	3,980,863		3,250,126		3,676,585		(7,953,365)		2,954,209

Condensed Statements of Operations Information

(in thousands) 

For the three months ended April 3, 2021	Parent		Notes Guarantors		Non-guarantors		Eliminations		Consolidated
Net sales	$	237,941	$	403,746	$	485,135	$	(80,106)	$	1,046,716
Total costs and expenses	246,942		355,525		427,069		(80,106)		949,430
Equity in net income of Diamond Green Diesel	—		—		102,225		—		102,225
Operating income (loss)	(9,001)		48,221		160,291		—		199,511
Net income allocable to Darling	151,766		40,267		128,717		(168,984)		151,766
For the three months ended March 28, 2020
Net sales	$	180,919	$	310,301	$	405,025	$	(43,403)	$	852,842
Total costs and expenses	209,450		285,493		376,293		(43,403)		827,833
Equity in net income of Diamond Green Diesel	—		—		97,820		—		97,820
Operating income (loss)	(28,531)		24,808		126,552		—		122,829
Net income allocable to Darling	85,510		20,112		101,827		(121,939)		85,510

OFF BALANCE SHEET ARRANGEMENTS AND CONTRACTUAL OBLIGATIONS

Based upon the underlying purchase agreements, the Company has commitments to purchase $191.9 million of commodity products consisting of approximately $91.8 million of finished products, approximately $71.9 million of natural gas and diesel fuel and approximately $28.2 million of other commitments during the next two years, which are not included in liabilities on the Company’s balance sheet at April 3, 2021.  These purchase agreements are entered into in the normal course of the Company’s business and are not subject to derivative accounting. The commitments will be recorded on the balance sheet of the Company when delivery of these commodities or products occurs and ownership passes to the Company during the remainder of fiscal 2021 and fiscal 2022, in accordance with accounting principles generally accepted in the United States.

The following table summarizes the Company’s other commercial commitments, including both on- and off-balance sheet arrangements that are part of the Company's Amended Credit Agreement and other foreign bank guarantees that are not a part of the Company's Amended Credit Agreement at April 3, 2021 (in thousands):

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Other commercial commitments:
Standby letters of credit	$	3,845
Standby letters of credit (ancillary facility)	24,334
Foreign bank guarantees	11,655
Total other commercial commitments:	$	39,834

CRITICAL ACCOUNTING POLICIES

The Company follows certain significant accounting policies when preparing its consolidated financial statements. A complete summary of these policies is included in the Company's Annual Report on Form 10-K for the fiscal year ended January 2, 2021, filed with the SEC on March 2, 2021.

NEW ACCOUNTING PRONOUNCEMENTS

In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes. This ASU amends Topic 740 Income Taxes, which eliminates certain exceptions in accounting for income taxes, improves consistency in application and clarifies existing guidance. The standard is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The adoption of this ASU in the first quarter of fiscal 2021 did not have a material impact on the Company's consolidated financial statements.

FORWARD LOOKING STATEMENTS

This Quarterly Report on Form 10-Q includes “forward-looking” statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the statements.   Statements that are not statements of historical facts are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “estimate,” “project,” “planned,” “contemplate,” “potential,” “possible,” “proposed,” “intend,” “believe,” “anticipate,” “expect,” “may,” “will,” “would,” “should,” “could,” and similar expressions are intended to identify forward-looking statements.  All statements other than statements of historical facts included in this report are forward looking statements, including, without limitation, the statements under the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and located elsewhere herein regarding industry prospects, the Company’s financial position and the Company's use of cash.  Forward-looking statements are based on the Company's current expectations and assumptions regarding its business, the economy and other future conditions. The Company cautions readers that any such forward-looking statements it makes are not guarantees of future performance and that actual results may differ materially from anticipated results or expectations expressed in its forward-looking statements as a result of a variety of factors, including many that are beyond the Company's control.

In addition to those factors discussed elsewhere in this report and in the Company's other public filings with the SEC, important factors that could cause actual results to differ materially from the Company’s expectations include: existing and unknown future limitations on the ability of the Company's direct and indirect subsidiaries to make their cash flow available to the Company for payments on the Company's indebtedness or other purposes; global demands for bio-fuels and grain and oilseed commodities, which have exhibited volatility, and can impact the cost of feed for cattle, hogs and poultry, thus affecting available rendering feedstock and selling prices for the Company’s products; reductions in raw material volumes available to the Company due to weak margins in the meat production industry as a result of higher feed costs, reduced consumer demand or other factors, reduced volume from food service establishments, or otherwise; reduced demand for animal feed; reduced finished product prices, including a decline in fat and used cooking oil finished product prices;  changes to worldwide government policies relating to renewable fuels and greenhouse gas (“GHG”) emissions that adversely affect programs like the U.S. government's renewable fuel standard, low carbon fuel standards (“LCFS”) and tax credits for biofuels both in the United States and abroad; possible product recall resulting from developments relating to the discovery of unauthorized adulterations to food or food additives; the occurrence of 2009 H1N1 flu (initially known as “Swine Flu”), highly pathogenic strains of avian influenza (collectively known as “Bird Flu”), severe acute respiratory syndrome (“SARS”), bovine spongiform encephalopathy (or “BSE”), porcine epidemic diarrhea (“PED”) or other diseases associated with animal origin in the United States or elsewhere, such as the outbreak of ASF in China and elsewhere; the occurrence of pandemics, epidemics or disease outbreaks, such as the current COVID-19 outbreak; unanticipated costs and/or reductions in raw material volumes related to the Company’s compliance with the existing or unforeseen new U.S. or foreign (including, without limitation, China) regulations (including new or modified animal feed, Bird Flu, SARS, PED, BSE or ASF or similar or unanticipated regulations) affecting the industries in which the Company operates or its value added products; risks associated with the DGD Joint Venture, including possible unanticipated operating disruptions and issues relating to the announced expansion projects; risks and uncertainties relating

46

to international sales and operations, including imposition of tariffs, quotas, trade barriers and other trade protections imposed by foreign countries; difficulties or a significant disruption in the Company's information systems or failure to implement new systems and software successfully; risks relating to possible third party claims of intellectual property infringement; increased contributions to the Company’s pension and benefit plans, including multiemployer and employer-sponsored defined benefit pension plans as required by legislation, regulation or other applicable U.S. or foreign law or resulting from a U.S. mass withdrawal event; bad debt write-offs; loss of or failure to obtain necessary permits and registrations; continued or escalated conflict in the Middle East, North Korea, Ukraine or elsewhere; uncertainty regarding the exit of the U.K. from the European Union; and/or unfavorable export or import markets.  These factors, coupled with volatile prices for natural gas and diesel fuel, climate conditions, currency exchange fluctuations, general performance of the U.S. and global economies, disturbances in world financial, credit, commodities and stock markets, and any decline in consumer confidence and discretionary spending, including the inability of consumers and companies to obtain credit due to lack of liquidity in the financial markets, among others, could cause actual results to vary materially from the forward-looking statements included in this report or negatively impact the Company's results of operations. Among other things, future profitability may be affected by the Company’s ability to grow its business, which faces competition from companies that may have substantially greater resources than the Company. The Company's announced share repurchase program may be suspended or discontinued at any time and purchases of shares under the program are subject to market conditions and other factors, which are likely to change from time to time. For more detailed discussion of these factors see the Risk Factors discussion in Item 1A of Part I of the Company's Annual Report on Form 10-K for the fiscal year ended January 2, 2021. The Company cautions readers that all forward-looking statements speak only as of the date made, and the Company undertakes no obligation to update any forward-looking statements, whether as a result of changes in circumstances, new events or otherwise.

Item 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

Market risks affecting the Company include exposures to changes in prices of the finished products the Company sells, interest rates on debt, availability of raw material supplies and the price of natural gas and diesel fuel used in the Company's plants. Raw materials available to the Company are impacted by seasonal factors, including holidays, when raw material volume declines; warm weather, which can adversely affect the quality of raw material processed and finished products produced; and cold weather, which can impact the collection of raw material. Predominantly all of the Company’s finished products are commodities that are generally sold at prices prevailing at the time of sale. Additionally, with the acquisition of foreign entities we are exposed to foreign currency exchange risks, imposition of currency controls and the possibility of currency devaluation.

The Company makes limited use of derivative instruments to manage cash flow risks related to natural gas usage, diesel fuel usage, inventory, forecasted sales and foreign currency exchange rates. The Company does not use derivative instruments for trading purposes. Natural gas swaps and options are entered into with the intent of managing the overall cost of natural gas usage by reducing the potential impact of seasonal weather demands on natural gas that increases natural gas prices. Heating oil swaps and options are entered into with the intent of managing the overall cost of diesel fuel usage by reducing the potential impact of seasonal weather demands on diesel fuel that increases diesel fuel prices. Soybean meal options are entered into with the intent of managing the impact of changing prices for poultry meal sales. Corn options and future contracts are entered into with the intent of managing U.S. forecasted sales of BBP by reducing the impact of changing prices. Foreign currency forward contracts are entered into to mitigate the foreign exchange rate risk for transactions designated in a currency other than the local functional currency. The interest rate swaps and the natural gas swaps are subject to the requirements of FASB authoritative guidance. Some of the Company's natural gas and diesel fuel instruments are not subject to the requirements of FASB authoritative guidance because some of the natural gas and diesel fuel instruments qualify as normal purchases as defined in FASB authoritative guidance. At April 3, 2021, the Company had corn option contracts, soybean meal forward contracts and foreign exchange forward and option contracts outstanding that qualified and were designated for hedge accounting as well as corn forward contracts and foreign currency forward contracts that did not qualify and were not designated for hedge accounting.

In fiscal 2020 and fiscal 2021, the Company entered into corn option contracts on the Chicago Board of Trade that are designated as cash flow hedges. Under the terms of the corn option contracts, the Company hedged a portion of its U.S. forecasted sales of BBP into the fourth quarter of fiscal 2021. As of April 3, 2021 and January 2, 2021 the aggregate fair value of these corn option contracts was approximately $8.0 million and $6.8 million, respectively. These amounts are included in accrued expenses on the balance sheet, with an offset recorded in accumulated other comprehensive loss. The Company may enter into corn option contracts in the future from time to time.

In fiscal 2020 and fiscal 2021, the Company entered into foreign exchange forward and option contracts that are considered cash flow hedges. Under the terms of the foreign exchange contracts, the Company hedged a portion of its

47

forecasted collagen sales in currencies other than the functional currency through the fourth quarter of fiscal 2022. As of April 3, 2021 and January 2, 2021, the aggregate fair value of these foreign exchange contracts was approximately $0.4 million and $11.6 million, respectively and are included in other current assets, accrued expenses and noncurrent assets on the balance sheet, with an offset recorded in accumulated other comprehensive loss.

In fiscal 2020 and fiscal 2021, the Company entered into soybean meal forward contracts to hedge a portion of its forecasted poultry meal sales into the second quarter of fiscal 2021. As of April 3, 2021 and January 2, 2021, the aggregate fair value of the soybean meal contracts was $0.1 million and $0.4 million, respectively. The amounts are included in other current assets on the balance sheet, with an offset recorded in accumulated other comprehensive loss.

As of April 3, 2021, the Company had the following outstanding forward and option contract amounts that were entered into to hedge foreign currency transactions in currencies other than the functional currency and forecasted transactions in currencies other than the functional currency (in thousands):

Functional Currency		Contract Currency		Range of	U.S.
Type	Amount	Type	Amount	Hedge rates	Equivalent
Brazilian real	49,335	Euro	7,305	6.39 - 6.98	$	8,681
Brazilian real	1,103,561	U.S. dollar	241,320	3.35 - 6.25	241,320
Euro	35,967	U.S. dollar	42,810	1.17 - 1.24	42,810
Euro	43,119	Polish zloty	198,500	4.55 - 4.67	50,764
Euro	6,293	Japanese yen	808,776	125.65 - 130.11	7,409
Euro	16,176	Chinese renminbi	126,124	7.75 - 7.99	19,043
Euro	42,340	Australian dollar	65,550	1.55	49,847
Euro	3,048	British pound	2,600	0.85	3,588
Euro	32	Canadian dollar	50	1.56	38
Polish zloty	1,031	U.S. dollar	262	3.94	262
Polish zloty	24,116	Euro	5,195	4.64 - 4.67	6,181
British pound	176	Euro	207	0.85	244
Japanese yen	231,803	U.S. dollar	2,159	102.77 - 109.62	2,159
U.S. dollar	100	Japanese yen	11,000	109.64	100
U.S. dollar	165,311	Euro	140,000	1.18	165,311
					$	597,757

The above foreign currency contracts that are not designated as hedges had an aggregate fair value of approximately $0.5 million and are included in other current assets and accrued expenses at April 3, 2021.

Additionally, the Company had corn forward contracts that are marked to market because they did not qualify for hedge accounting at April 3, 2021. These contracts have an aggregate fair value of approximately $0.2 million and are included in other current assets and accrued expenses at April 3, 2021.

As of April 3, 2021, the Company had forward purchase agreements in place for purchases of approximately $71.9 million of natural gas and diesel fuel and approximately $28.2 million of other commitments during the next two years. As of April 3, 2021, the Company had forward purchase agreements in place for purchases of approximately $91.8 million of finished product in fiscal 2021.

Foreign Exchange

The Company now has significant international operations and is subject to certain opportunities and risks, including currency fluctuations. As a result, the Company is affected by changes in foreign currency exchange rates, particularly with respect to the euro, British pound, Canadian dollar, Australian dollar, Chinese renminbi, Brazilian real, Polish zloty, and Japanese yen.

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Item 4.   CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures.  As required by Rule 13a-15(b) of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), the Company's management, including the Chief Executive Officer and Chief Financial Officer, conducted an evaluation, as of the end of the period covered by this report, of the effectiveness of the design and operation of the Company's disclosure controls and procedures.  As defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, disclosure controls and procedures are controls and other procedures of the Company that are designed to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms.  Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is accumulated and communicated to the Company's management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.  Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Based on management’s evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of the end of the period covered by this report.

Changes in Internal Control over Financial Reporting.  As required by Exchange Act Rule 13a-15(d), the Company’s management, including the Chief Executive Officer and Chief Financial Officer, also conducted an evaluation of the Company’s internal control over financial reporting to determine whether any change occurred during the quarter covered by this report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.  Based on that evaluation, there has been no change in the Company’s internal control over financial reporting during the last fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect the Company's internal control over financial reporting.

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DARLING INGREDIENTS INC. AND SUBSIDIARIES

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED APRIL 3, 2021

PART II:  Other Information

Item 1.  LEGAL PROCEEDINGS

The information required by this Item 1 is contained within Note 17 (Contingencies) on pages 23 through 24 of this Form 10-Q and is incorporated herein by reference.

Item 1A.  RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the factors described in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended January 2, 2021, which could materially affect our business, financial condition or future results. The risks described in this report and in our Annual Report on Form 10-K are not the only risks we face. Additional risks and uncertainties that are not currently known or that are currently deemed to be immaterial may also materially and adversely affect our business operations and financial condition or the market price of our common stock.

Item 6.  EXHIBITS

 The following exhibits are filed herewith:

10.1	Form of Global Performance Unit Award Agreement under the 2017 Omnibus Incentive Plan effective January 2021 (filed herewith).
10.2	Form of Global Restricted Stock Unit Award Agreement under the 2017 Omnibus Incentive Plan effective January 2021 (filed herewith).
31.1	Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, of Randall C. Stuewe, the Chief Executive Officer of the Company.
31.2	Certification pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, of Brad Phillips, the Chief Financial Officer of the Company.
32	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Randall C. Stuewe, the Chief Executive Officer of the Company, and of Brad Phillips, the Chief Financial Officer of the Company.
101	Interactive Data Files Pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets as of April 3, 2021 and January 2, 2021; (ii) Consolidated Statements of Operations for the three months ended April 3, 2021 and March 28, 2020; (iii) Consolidated Statements of Comprehensive Income/(Loss) for the three months ended April 3, 2021 and March 28, 2020; (iv) Consolidated Statements of Stockholders' Equity for the three months ended April 3, 2021 and March 28, 2020; (v) Consolidated Statements of Cash Flows for the three months ended April 3, 2021 and March 28, 2020; (vi) Notes to the Consolidated Financial Statements.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		DARLING INGREDIENTS INC.
Date:	May 11, 2021	By:	/s/  Brad Phillips
			Brad Phillips
			Chief Financial Officer
			(Principal Financial Officer and Duly Authorized Officer)

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EX-10.1

GLOBAL FORM

DARLING INGREDIENTS INC. EXHIBIT 10.1

PERFORMANCE UNIT AWARD AGREEMENT

SECTION 1.     GRANT OF AWARD.

On the terms and conditions set forth in this Performance Unit Award Agreement, including Appendix A and B attached hereto (together with any applicable terms contained in any other Addendum hereto, this “Agreement”), Darling Ingredients Inc. (the “Company”) hereby grants to the undersigned individual (the “Grantee”) performance-based restricted stock units (the “Performance Units”) as specified below, each of which represents a contingent right to acquire a share of common stock of the Company, $0.01 par value per share (a “Share”) at a future date after such Performance Unit has become vested, with a target opportunity equal to _______ Performance Units (the “Target Award”).

This award is granted under and subject to the terms of the Darling Ingredients Inc. 2017 Omnibus Incentive Plan (the “Plan”), which is incorporated herein by this reference. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Plan.

SECTION 2. VESTING.

(a)General. Subject to the requirements of Sections 2(b) and 2(c), the Grantee shall vest in his or her Performance Units based on the achievement of the performance-based conditions, as determined pursuant to Appendix A of this Agreement.

(b)Written Certification of Performance Results.Following the end of the Performance Period, the Committee shall determine the vesting percentage in accordance with the terms of this Agreement. The vesting and settlement of the Performance Units is conditioned on the Committee first certifying in writing the performance results for the applicable Performance Period.

(c)Employment Requirement. No Performance Units shall become earned and vested following the Grantee’s separation from Service during the Performance Period, except as expressly provided in Section 2(d) below.

(d)Termination of Service. Except as otherwise provided in this Section, if the Grantee’s Service terminates prior to the end of the Performance Period for any reason, then the Performance Units shall be immediately forfeited.

(i)Termination Due to Death or Disability. Ifthe Grantee’s Service terminates as a result of the Grantee’s death or Disability prior to the end of the Performance Period, then the Grantee shall vest in a prorated portion of the Target Award, with such proration determined by multiplying the Target Award by the Pro-Rata Fraction. Subject to Sections 3(b) and 4(n), within 60 days following the date of the Grantee’s termination of Service due to death or Disability, the Company shall issue or deliver Shares for the number of Performance Units that vest pursuant to this Section 2(d)(i) to the Grantee or Grantee’s beneficiary, as applicable.

(ii)Termination without Cause, for Good Reason or due to Retirement. If the Company terminates the Grantee’s Service without Cause or the Grantee terminates

1

his or her Service for Good Reason or due to Retirement prior to the end of the Performance Period, then the Grantee shall be eligible to vest in a prorated portion of the Performance Units, with such proration determined by multiplying the number of Performance Units determined based on actual performance through the end of the Performance Period, as determined in accordance with Appendix A, by the Pro-Rata Fraction. Subject to Sections 3(b) and 4(n), the vested Performance Units shall be settled in Shares within 60 days following the end of the Performance Period; provided, however, if the Grantee becomes eligible to receive a pro-rata award pursuant to this Section 2(d) and a Change of Control occurs following such termination of Service and prior to the end of the Performance Period, then the Grantee shall be eligible to vest in a prorated portion of the Performance Units, with such proration determined by multiplying the number of Performance Units determined based on the deemed attainment level of the performance goals as determined in accordance with Section 2(e), by the Pro-Rata Fraction, and the vested Performance Units shall be settled within thirty (30) days following such Change of Control.

(e)Change of Control. If a Change of Control occurs prior to the end of the Performance Period, then the number of Performance Units that are eligible for vesting shall be based on the greater of (i) the projected level of performance through the end of the Performance Period, as determined by the Committee prior to the date of the Change of Control based on performance through the date of such determination, and (ii) the Target Award, and the Performance Units shall be settled as follows: (A) if the Grantee remains in continuous Service through the end of the Performance Period, then the vested Performance Units shall be settled in accordance with Section 3(a), and (B) if, prior to the end of the Performance Period and following such Change of Control, the Grantee’s continuous Service is terminated by the Company without Cause, due to death or Disability or by the Grantee for Good Reason or due to Retirement, then the vested Performance Units shall be settled within 60 days following such termination of Service, subject to Sections 3(b) and 4(n). Notwithstanding the foregoing, if the Performance Units are not effectively assumed or continued by the surviving or acquiring corporation in such Change of Control (as determined by the Committee prior to the date of the Change of Control), then the vested Performance Units shall, subject to Section 3(b) be distributed within thirty (30) days of such Change of Control; provided, however, if the Performance Units constitute “nonqualified deferred compensation within the meaning of Section 409A of the Code and the Change of Control was not a “change in control event” within the meaning of Section 409A of the Code or to the extent distribution would be impermissible under Section 409A of the Code, then the vested Performance Units shall be settled upon the earlier to occur of (A) the date specified in Section 3(a) and (B) the Grantee’s termination of Service, subject to Sections 3(b) and 4(n).

(f)Fractional Shares. Only a whole number of Shares will be issued in respect of vested Performance Units.  If the number of Performance Units that are scheduled to vest pursuant to Appendix A is with respect to a fractional number of Shares, such number of Shares shall be rounded down to the nearest whole number, with any fractional portion forfeited.

(g)Forfeiture. To the extent any of the Performance Units fail to vest under this Section 2, then such Performance Units shall be immediately forfeited and all of the Grantee’s rights to receive Shares pursuant to such Performance Units shall immediately terminate without any payment of consideration by the Company.

2

SECTION 3. SETTLEMENT.

(a)Settlement in Shares. Subject to Sections 2, 3(b) and 4(n) of this Agreement, settlement of the vested Performance Units, if any, shall be effected in the form of issuance of whole Shares to the Grantee, as soon as practicable following the end of the Performance Period (but in any event, subject to Section 3(b), no later than the March 15th occurring immediately following the end of the Performance Period). Such issuance or delivery shall be evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company. The Company shall pay all original issue or transfer taxes or duties and all fees and expenses incident to such issuance or delivery, except as otherwise provided in Section 3(b). Prior to the issuance to the Grantee of Shares with respect to the vested Performance Units, the Grantee shall have no direct or secured claim in any specific assets of the Company or in such Shares, and will have the status of a general unsecured creditor of the Company.

(b)Withholding Requirements.

(i)    Regardless of any action the Company takes with respect to any or all income tax, payroll tax, social security contributions and/or any other employment-related taxes and/or other tax-related withholding (but excluding any transfer taxes or duties) (“Tax-Related Items”), the Grantee acknowledges that the ultimate liability for all Tax-Related Items owed by the Grantee is and remains the Grantee’s responsibility and that the Company (A) makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the award made under this Agreement, including the grant or vesting of the Performance Units, the subsequent sale of Shares; and (B) does not commit to structure the terms of the grant or any aspect of this award to reduce or eliminate the Grantee’s liability for Tax-Related Items.

(ii)    Prior to the settlement of any vested Performance Units, the Grantee shall pay or make adequate arrangements satisfactory to the Company to satisfy all withholding obligations of the Company.  In this regard, the Grantee authorizes the Company to withhold all applicable Tax-Related Items legally payable by the Grantee from the Grantee’s wages or other cash compensation paid to the Grantee by the Company.  Alternatively, or in addition, to the extent permissible under applicable law, the Grantee may elect to satisfy his or her tax obligations by one of the following methods: (A) a check or cash payment to the Company, (B) delivery to the Company (either actual delivery or by attestation procedures established by the Company) of previously owned whole Shares having an aggregate Fair Market Value, determined as of the date on which such withholding obligation arises (the “Tax Date”), equal to the Tax-Related Items, (C) authorizing the Company to withhold whole Shares which would otherwise be issued or transferred to the Grantee having an aggregate Fair Market Value, determined as of the Tax Date, equal to the Tax-Related Items or (D) any combination of (A), (B) and (C). Shares to be delivered to the Company or withheld may not have a Fair Market Value in excess of the minimum amount of the Tax-Related Items (or such greater withholding amount to the extent permitted by applicable accounting rules without resulting in variable accounting treatment). The Company may refuse to issue and deliver Shares in payment of any vested Performance Units if the Grantee fails to comply with the Grantee’s obligations in connection with the Tax-Related Items as described in this Section 3(b).

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(c)Tax Indemnification. Notwithstanding the provisions of Section 3(b) above, each Grantee (in respect of himself or herself only) indemnifies the Company and each of its Subsidiaries, and holds the Company and each of its Subsidiaries harmless against and from any and all liability for any taxes or payments in respect of taxes (including social security and national insurance contributions, to the extent permitted by applicable law), arising as a result of, in connection with or in respect of the grant, purchase, vesting of, or other dealing in the Performance Units granted or issued pursuant to this Agreement, the acquisition, sale or other dealing in the Shares delivered or to be delivered to the Grantee pursuant to this Agreement.

SECTION 4. MISCELLANEOUS PROVISIONS.

(a)Data Privacy and Other Acknowledgments. By accepting the award provided for in this Agreement, the Grantee acknowledges and agrees that such award is subject to the provisions regarding data privacy and additional acknowledgments set forth in Appendix B. The Grantee shall review the provisions of Appendix B carefully. The Company reserves the right to impose other requirements on the award to the extent the Company determines it is necessary or advisable in order to comply with local law or facilitate the administration of the award and to require the Grantee to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

(b)Grantee Representations. The Grantee hereby represents to the Company that the Grantee has read and fully understands the provisions of the Agreement and the Plan and the Grantee’s decision to participate in the Plan is completely voluntary. Further, the Grantee acknowledges that the Grantee is relying solely on his or her own advisors with respect to the tax consequences of this award.

(c)Regulatory Restrictions on the Performance Units. Notwithstanding any provision of this Agreement or the Plan, the obligation of the Company to issue Shares in connection with the grant of Performance Units shall be subject to all applicable laws, rules and regulations and such approval by any regulatory body as may be required. The Company reserves the right to restrict, in whole or in part, the delivery of Shares pursuant to this Agreement prior to the satisfaction of all legal requirements relating to the issuance of such Shares, to their registration, qualification or listing or to an exemption from registration, qualification or listing.

(d)No Right to Continued Service. Nothing in this Agreement or the Plan shall confer upon the Grantee any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any affiliated entity employing or retaining the Grantee) or of the Grantee, which rights are hereby expressly reserved by each, to terminate his or her Service at any time and for any reason, with or without cause.

(e)No Right as a Shareholder.

(i)The Performance Units constitute an unfunded and unsecured obligation of the Company. The Grantee shall not have any rights of a stockholder of the Company with respect to any Shares underlying the Performance Units unless and until Shares are issued in settlement of the Performance Units. Upon such issuance of Shares, the Grantee shall be the record owner of the Shares unless and until such Shares are sold

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or otherwise disposed of, and as record owner shall be entitled to all rights of a stockholder of the Company (including voting rights).

(ii)If a cash dividend is paid with respect to the Shares underlying the Performance Units, then the Target Award or, for dividends paid prior to settlement of the vested Performance Units in accordance with Section 3(a), the vested Performance Units shall increase by (A) the product of the total number of Shares subject to the Target Award, vested Performance Units and/or Section 3(b), as applicable, immediately prior to the dividend payment date multiplied by the dollar amount of the cash dividend immediately prior to such dividend payment date, divided by (B) the Fair Market Value of a Share as of the applicable dividend payment date, such amount rounded down to the nearest whole number. Any such additional Shares shall be subject to the same vesting conditions and payment terms as applicable to the underlying Performance Units as provided in this Agreement.

(f)Beneficiary. The Grantee may designate a beneficiary to receive settlement in connection with the Performance Units in the event of the Grantee’s death in accordance with the Company’s beneficiary designation procedures, as in effect from time to time. If the Grantee does not designate a beneficiary, or if the Grantee’s designated beneficiary does not survive the Grantee, then the Grantee’s beneficiary will be the Grantee’s estate.

(g)Notification. Any notification required by the terms of this Agreement shall be given in writing and shall be deemed effective (i) upon personal delivery; (ii) upon deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid; or (iii) upon the Company’s sending of an email to the Grantee. A notice shall be addressed to the Company at its principal executive office and to the Grantee at the postal address that he or she most recently provided to the Company or at his or her Service email address, if any.

(h)Entire Agreement. This Agreement and the Plan constitute the entire contract between the parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) relating to the subject matter hereof. In the event of a conflict between any provision of the Plan and this Agreement, the Plan shall control.

(i)Waiver. No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition, whether of like or different nature.

(j)Nontransferability of Award. The Performance Units may not be sold, transferred, assigned, pledged or otherwise encumbered or disposed of prior to the date such Performance Units are settled under Section 3 above, except as may be permitted by the Plan or as otherwise permitted by the Committee in its sole discretion or pursuant to rules adopted by the Committee in accordance with the Plan. Any attempt to dispose of the Performance Units or any interest in the Performance Units in a manner contrary to the restrictions set forth in this Agreement shall be void and of no effect.

(k)Successors and Assigns. The provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and upon the Grantee, the Grantee’s assigns and the legal representatives, heirs and legatees of the Grantee’s estate,

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whether or not any such person shall have become a party to this Agreement and have agreed in writing to be joined herein and be bound by the terms hereof.

(l)Choice of Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Texas, as such laws are applied to contracts entered into and performed in such state, without regard to principles of conflict of law.

(m)Award Subject to Clawback. This award and any Shares acquired pursuant to this award are subject to forfeiture, recovery by the Company or other action pursuant to any clawback or recoupment policy which the Company may adopt from time to time, including without limitation any such policy which the Company may be required to adopt under the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing rules and regulations thereunder, or as otherwise required by law.

(n)Compliance With Section 409A of the Code. This Agreement and the Performance Units granted hereunder are intended to be exempt from or comply with Section 409A of the Code, and shall be interpreted and construed accordingly. To the extent this Agreement provides for the Performance Units to become vested and be settled upon the Grantee’s termination of Service, the applicable Shares shall be transferred to the Grantee or his or her beneficiary upon the Grantee’s “separation from service,” within the meaning of Section 409A of the Code; provided that if the Performance Units constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code and the Holder is a “specified employee,” within the meaning of Section 409A of the Code and subject to Section 409A of the Code, then such Shares shall be transferred to the Grantee or his or her beneficiary upon the earlier to occur of (i) the six-month anniversary of such separation from service and (ii) the date of the Grantee’s death.

SECTION 5. DEFINITIONS.

(a)“Cause” shall mean, with respect to the Grantee,

(i)    any conviction or plea of nolo contendere to a felony;

(ii)    any willful misconduct by the Grantee in connection with the performance of the Grantee’s Service for the Company, including, without limitation, (A) misappropriation of funds of the Company, (B) harassment of or discrimination against individuals on account of gender, race, religion, national origin or disability or retaliation against an individual for making any claim that the Grantee has so harassed or discriminated against such individual or (C) breach of a written policy of the Company; or

(iii)    any disclosure of confidential or proprietary information of the Company or breach of any confidentiality, non-competition or non-solicitation covenant made by the Grantee for the benefit of the Company; provided, however, Grantee understands that (A) nothing contained in this Agreement limits Grantee’s ability to report possible violations of law or regulation to, or file a charge or complaint with, the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Department of Justice, the Congress, any Inspector General, or any other federal, state or local governmental agency or commission (“Government Agencies”), (B) nothing contained in this Agreement limits Grantee’s ability to communicate with any

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Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company, and (C) nothing contained in this Agreement shall limit Grantee’s ability under applicable United States federal law to (x) disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law or (y) disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure.

(b)“Disability” shall mean that the Grantee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment as determined by the Board of Directors in its sole discretion.

(c)“Good Reason” shall be defined as that term is defined in the Grantee’s offer letter or other applicable employment agreement with the Company, if any; or, if there is no such definition, “Good Reason” shall mean the occurrence of any of the following events without the Grantee’s consent, provided that the Grantee has complied with the Good Reason Process: (i) a material diminution in the Grantee’s responsibility, authority or duty; (ii) a material diminution in the Grantee’s base salary except for across-the-board salary reductions based on the Company and its Subsidiaries’ financial performance similarly affecting all or substantially all management employees of the Company and its Subsidiaries; or (iii) the relocation of the office at which the Grantee was principally employed as of the date of this Agreement to a location more than fifty (50) miles from the location of such office, or the Grantee being required to be based anywhere other than such office, except to the extent the Grantee was not previously assigned to a principal location and except for required travel on business to an extent substantially consistent with the Grantee’s business travel obligations as of the date of this Agreement.

(d)“Good Reason Process” shall mean that (i) the Grantee reasonably determines in good faith that a Good Reason condition has occurred; (ii) the Grantee notifies the Company in writing of the occurrence of the Good Reason condition within sixty (60) days of such occurrence; (iii) the Grantee cooperates in good faith with the Company’s efforts, for a period of not less than thirty (30) days following such notice (the “Cure Period”), to remedy the condition; (iv) notwithstanding such efforts, the Good Reason condition continues to exist following the Cure Period; and (v) the Grantee has a termination of Service within sixty (60) days after the end of the Cure Period. If the Company cures the Good Reason condition during the Cure Period, and the Grantee has a termination of Service due to such condition (notwithstanding its cure), then the Grantee will not be deemed to have had a termination of Service for Good Reason.

(e)“Pro-Rata Fraction” shall mean a fraction with the numerator equal to the Grantee’s days of Service starting from the beginning of the Performance Period and ending on the date of termination of Service, and the denominator equal to the total number of calendar days in the Performance Period.

(f)“Retirement” means the Grantee’s termination of Service after the attainment of (i) at least 55 years of age with at least ten years of Service or (ii) at least 65 years of age; provided, however, Retirement shall not be deemed to have occurred if the Grantee’s Service is terminated by the Company for Cause.

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(g)“Service” shall mean service as an employee of the Company or any of its Subsidiaries or Affiliates or as a member of the Board of Directors.

This award is conditioned upon the Grantee’s acceptance of the provisions set forth in this Agreement within 90 days after the Agreement is presented to the Grantee for review. If the Grantee fails to accept the award within such 90-day period, the award shall be null and void, and the Grantee’s rights in the award shall immediately terminate without any payment of consideration by the Company.

Darling Ingredients Inc.

By:

Date: _______, 20__

Grantee                    

Name:

Target Award: _________

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EX-10.2

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DARLING INGREDIENTS INC. EXHIBIT 10.2

2017 Omnibus Incentive Plan

Notice of Restricted Stock Unit Grant

Grantee:             ____________________

Restricted Stock Units:    You have been awarded a restricted stock unit award with respect to _______ shares of common stock, par value $0.01 per share, of the Company, subject to adjustment as provided in the Plan.

Grant Date:            _________, 20__

Vesting Commencement Date:    One-year anniversary of the Grant Date

Vesting Schedule:Except as set forth in the Agreement, this award shall vest in accordance with the following schedule, subject to the Grantee’s continued Service with the Company as of the applicable vesting date:

Vesting Date	Percentage That Vests
Vesting Commencement Date	33-1/3%
First anniversary of Vesting Commencement Date	33-1/3% (total 66-2/3%)
Second anniversary of Vesting Commencement Date	33-1/3% (total 100%)

This award is governed by the terms and conditions of the Darling Ingredients Inc. 2017 Omnibus Incentive Plan (the “Plan”) and the Restricted Stock Unit Agreement attached hereto, including Appendix A attached thereto (together with any applicable terms contained in any other Addendum thereto, the “Agreement”), both of which are hereby made a part of this document (this “Notice”). Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Plan and/or the Agreement. In the event of a conflict between any provisions of the Plan, the Agreement and/or this Notice, the Plan shall control, or, if the Plan should be inapplicable, then the Agreement shall control.

By signing below, the Grantee acknowledges receipt of this restricted stock unit award and the terms set forth herein.

Grantee:                            Darling Ingredients Inc.

        By:    

Print Name                            Name:

                                Title:                                            

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DARLING INGREDIENTS INC.

RESTRICTED STOCK UNIT AWARD AGREEMENT

SECTION 1.     GRANT OF AWARD.

(a)Restricted Stock Units. On the terms and conditions set forth in this Restricted Stock Unit Award Agreement, including Appendix A attached hereto (together with any applicable terms contained in any other Addendum hereto, this “Agreement”) and each Notice of Restricted Stock Unit Grant referencing this Agreement (each, a “Notice”), the Company grants to the Grantee on the Grant Date restricted stock units with respect to a number of Shares, all as set forth in the applicable Notice. Each Notice, together with this Agreement, shall be a separate award governed by the terms of this Agreement.

(b)Plan and Defined Terms. This award is granted under and subject to the terms of the Darling Ingredients Inc. 2017 Omnibus Incentive Plan (the “Plan”), which is incorporated herein by this reference. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Plan.

SECTION 2. VESTING.

(a)General. Subject to the terms of this Agreement, the Award shall vest in accordance with the Vesting Schedule set forth on the Notice.

(b)Employment Requirement. No portion of the Award shall vest following the Grantee’s separation from Service.

(c)Termination of Service. Except as otherwise provided in this Section 2(c) or Section 2(d), if the Grantee’s Service terminates for any reason, then any unvested portion of the Award shall be immediately forfeited.

(i)Termination Due to Death or Disability. Ifthe Grantee’s Service terminates as a result of the Grantee’s death or Disability, then any unvested portion of the Award shall vest immediately upon such termination of Service. Subject to Sections 3(b) and 4(n), within 60 days following the date of the Grantee’s termination of Service due to death or Disability, the Company shall issue or deliver Shares for the number of RSUs that vest pursuant to this Section 2(c)(i) to the Grantee or Grantee’s beneficiary, as applicable.

(ii)Termination without Cause, for Good Reason. If the Company terminates the Grantee’s Service without Cause or the Grantee terminates his or her Service for Good Reason, then the Grantee shall vest immediately upon such termination of Service with respect to a prorated portion of the Award, with such proration determined by multiplying the number of RSUs set to vest on the next scheduled vesting date by the Pro-Rata Fraction. Subject to Sections 3(b) and 4(n), the vested RSUs shall be settled in Shares within 60 days following the date of the Grantee’s termination of Service.

(iii)Termination due to Retirement. If the Grantee terminates his or her Service due to Retirement (A) on or before the one-year anniversary of the Grant Date, then the

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Grantee shall vest immediately upon such termination of Service with respect to a prorated portion of the Award, with such proration determined by multiplying the number of RSUs set to vest on the next scheduled vesting date by the Pro-Rata Fraction, or (B) after the one-year anniversary of the Grant Date, then any unvested RSUs shall vest immediately upon such termination of Service. Subject to Sections 3(b) and 4(n), the vested RSUs shall be settled in Shares within 60 days following the date of the Grantee’s termination of Service.

(d)Change of Control. If the Grantee’s continuous Service is terminated by the Company without Cause or by the Grantee for Good Reason, in each case, within two years following a Change of Control, then any unvested RSUs shall vest immediately upon such termination of Service and shall be settled within 60 days following such termination of Service, subject to Sections 3(b) and 4(n). Notwithstanding the foregoing, if the RSUs are not effectively assumed or continued by the surviving or acquiring corporation in such Change of Control (as determined by the Committee prior to the date of the Change of Control), then the RSUs shall vest in full as of such Change of Control and shall, subject to Section 3(b), be distributed within thirty (30) days of such Change of Control; provided, however, if the RSUs constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code and the Change of Control was not a “change in control event” within the meaning of Section 409A of the Code or to the extent distribution would be impermissible under Section 409A of the Code, then the vested RSUs shall be settled upon the earlier to occur of (A) the Vesting Schedule set forth in the Notice and (B) the Grantee’s termination of Service, subject to Sections 3(b) and 4(n).

(e)Fractional Shares. Only a whole number of Shares will be issued in respect of vested RSUs.  If the number of RSUs that are scheduled to vest pursuant to Section 2(a) is with respect to a fractional number of Shares, the number of RSUs that vest shall be rounded down to the nearest whole number, and the fractional RSUs will be accumulated so that the resulting whole RSU will be included in the number of RSUs that become vested on the last vesting date.

(f)Forfeiture. To the extent any of the RSUs fail to vest under this Section 2, then such RSUs shall be immediately forfeited and all of the Grantee’s rights to receive Shares pursuant to such RSUs shall immediately terminate without any payment of consideration by the Company.

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SECTION 3. SETTLEMENT.

(a)Settlement in Shares. Except as otherwise provided for in Section 2 and subject to Sections 3(b) and 4(n) of this Agreement, settlement of the vested RSUs, if any, shall be effected in the form of issuance of whole Shares to the Grantee, within 60 days following the applicable vesting date (but in any event, subject to Section 3(b), no later than March 15th following the applicable vesting date). Such issuance or delivery shall be evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company. The Company shall pay all original issue or transfer taxes or duties and all fees and expenses incident to such issuance or delivery, except as otherwise provided in Section 3(b). Prior to the issuance to the Grantee of Shares with respect to the vested RSUs, the Grantee shall have no direct or secured claim in any specific assets of the Company or in such Shares, and will have the status of a general unsecured creditor of the Company.

(b)Withholding Requirements.

(i)    Regardless of any action the Company takes with respect to any or all income tax, payroll tax, social security contributions and/or any other employment-related taxes and/or other tax-related withholding (but excluding any transfer taxes or duties) (“Tax-Related Items”), the Grantee acknowledges that the ultimate liability for all Tax-Related Items owed by the Grantee is and remains the Grantee’s responsibility and that the Company (A) makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the award made under this Agreement, including the grant or vesting of the RSUs, the subsequent sale of Shares, or any cash payment in respect of any Dividend Equivalents; and (B) does not commit to structure the terms of the grant or any aspect of this award to reduce or eliminate the Grantee’s liability for Tax-Related Items.

(ii)     Prior to the settlement of any vested RSUs or any cash payment in respect of any Dividend Equivalents, the Grantee shall pay or make adequate arrangements satisfactory to the Company to satisfy all withholding obligations of the Company.  In this regard, the Grantee authorizes the Company to withhold all applicable Tax-Related Items legally payable by the Grantee from the Grantee’s wages or other cash compensation paid to the Grantee by the Company.  Alternatively, or in addition, to the extent permissible under applicable law, the Grantee may elect to satisfy his or her tax obligations by one of the following methods: (A) a check or cash payment to the Company, (B) delivery to the Company (either actual delivery or by attestation procedures established by the Company) of previously owned whole Shares having an aggregate Fair Market Value, determined as of the date on which such withholding obligation arises (the “Tax Date”), equal to the Tax-Related Items, (C) authorizing the Company to withhold whole Shares which would otherwise be issued or transferred to the Grantee having an aggregate Fair Market Value, determined as of the Tax Date, equal to the Tax-Related Items or (D) any combination of (A), (B) and (C). Shares to be delivered to the Company or withheld may not have a Fair Market Value in excess of the minimum amount of the Tax-Related Items (or such greater withholding amount to the extent permitted by applicable accounting rules without resulting in variable accounting treatment). The Company may refuse to issue and deliver Shares in payment of any vested RSUs if the Grantee fails to comply with the Grantee’s obligations in connection with the Tax-Related Items as described in this Section 3(b).

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(c)Tax Indemnification. Notwithstanding the provisions of Section 3(b) above, each Grantee (in respect of himself or herself only) indemnifies the Company and each of its Subsidiaries, and holds the Company and each of its Subsidiaries harmless against and from any and all liability for any taxes or payments in respect of taxes (including social security and national insurance contributions, to the extent permitted by applicable law), arising as a result of, in connection with or in respect of the grant, purchase, vesting of, or other dealing in the RSUs granted or issued pursuant to this Agreement, the acquisition, sale or other dealing in the Shares delivered or to be delivered to the Grantee pursuant to this Agreement, and/or the payment of any amounts in respect of Dividend Equivalents pursuant to this Agreement.

SECTION 4. MISCELLANEOUS PROVISIONS.

(a)Data Privacy and Other Acknowledgments. By accepting the award provided for in this Agreement, the Grantee acknowledges and agrees that such award is subject to the provisions regarding data privacy and additional acknowledgments set forth in Appendix A. The Grantee shall review the provisions of Appendix A carefully. The Company reserves the right to impose other requirements on the award to the extent the Company determines it is necessary or advisable in order to comply with local law or facilitate the administration of the award and to require the Grantee to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

(b)Grantee Representations. The Grantee hereby represents to the Company that the Grantee has read and fully understands the provisions of the Agreement and the Plan and the Grantee’s decision to participate in the Plan is completely voluntary. Further, the Grantee acknowledges that the Grantee is relying solely on his or her own advisors with respect to the tax consequences of this award.

(c)Regulatory Restrictions on the RSUs. Notwithstanding any provision of this Agreement or the Plan, the obligation of the Company to issue Shares in connection with the grant of RSUs shall be subject to all applicable laws, rules and regulations and such approval by any regulatory body as may be required. The Company reserves the right to restrict, in whole or in part, the delivery of Shares pursuant to this Agreement prior to the satisfaction of all legal requirements relating to the issuance of such Shares, to their registration, qualification or listing or to an exemption from registration, qualification or listing.

(d)No Right to Continued Service. Nothing in this Agreement or the Plan shall confer upon the Grantee any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any affiliated entity employing or retaining the Grantee) or of the Grantee, which rights are hereby expressly reserved by each, to terminate his or her Service at any time and for any reason, with or without cause.

(e)No Right as a Shareholder.

(i)The RSUs constitute an unfunded and unsecured obligation of the Company. The Grantee shall not have any rights of a stockholder of the Company with respect to any Shares underlying the RSUs unless and until Shares are issued in settlement of the RSUs. Upon such issuance of Shares, the Grantee shall be the record

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owner of the Shares unless and until such Shares are sold or otherwise disposed of, and as record owner shall be entitled to all rights of a stockholder of the Company (including voting rights).

(ii)The Award includes a right to Dividend Equivalents equal to the value of any dividends paid on the Shares for which the dividend record date occurs between the Grant Date and the date the Award is settled or forfeited. Subject to vesting and Section 3(b), each Dividend Equivalent entitles the Grantee to receive the equivalent cash value of any such dividends paid on the number of Shares underlying the Award that are outstanding during such period. Dividend Equivalents will be accrued (without interest) and will be subject to the same conditions as the Shares to which they are attributable, including, without limitation, the vesting conditions and the provisions governing the time and form of settlement of the Award.

(f)Beneficiary. The Grantee may designate a beneficiary to receive settlement in connection with the RSUs in the event of the Grantee’s death in accordance with the Company’s beneficiary designation procedures, as in effect from time to time. If the Grantee does not designate a beneficiary, or if the Grantee’s designated beneficiary does not survive the Grantee, then the Grantee’s beneficiary will be the Grantee’s estate.

(g)Notification. Any notification required by the terms of this Agreement shall be given in writing and shall be deemed effective (i) upon personal delivery; (ii) upon deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid; or (iii) upon the Company’s sending of an email to the Grantee. A notice shall be addressed to the Company at its principal executive office and to the Grantee at the postal address that he or she most recently provided to the Company or at his or her Service email address, if any.

(h)Entire Agreement. This Agreement and the Plan constitute the entire contract between the parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) relating to the subject matter hereof. In the event of a conflict between any provision of the Plan and this Agreement, the Plan shall control.

(i)Waiver. No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition, whether of like or different nature.

(j)Nontransferability of Award. The RSUs may not be sold, transferred, assigned, pledged or otherwise encumbered or disposed of prior to the date such RSUs are settled under Section 3 above, except as may be permitted by the Plan or as otherwise permitted by the Committee in its sole discretion or pursuant to rules adopted by the Committee in accordance with the Plan. Any attempt to dispose of the RSUs or any interest in the RSUs in a manner contrary to the restrictions set forth in this Agreement shall be void and of no effect.

(k)Successors and Assigns. The provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and upon the Grantee, the Grantee’s assigns and the legal representatives, heirs and legatees of the Grantee’s estate, whether or not any such person shall have become a party to this Agreement and have agreed in writing to be joined herein and be bound by the terms hereof.

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(l)Choice of Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Texas, as such laws are applied to contracts entered into and performed in such state, without regard to principles of conflict of law.

(m)Award Subject to Clawback. This award and any Shares acquired pursuant to this award are subject to forfeiture, recovery by the Company or other action pursuant to any clawback or recoupment policy which the Company may adopt from time to time, including without limitation any such policy which the Company may be required to adopt under the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing rules and regulations thereunder, or as otherwise required by law.

(n)Compliance With Section 409A of the Code. This Agreement and the RSUs granted hereunder are intended to be exempt from or comply with Section 409A of the Code, and shall be interpreted and construed accordingly and each payment hereunder shall be considered a separate payment. To the extent this Agreement provides for the RSUs to become vested and be settled upon the Grantee’s termination of Service, the applicable Shares shall be transferred to the Grantee or his or her beneficiary upon the Grantee’s “separation from service,” within the meaning of Section 409A of the Code; provided that if the RSUs constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code and the Holder is a “specified employee,” within the meaning of Section 409A of the Code and subject to Section 409A of the Code, then such Shares shall be transferred to the Grantee or his or her beneficiary upon the earlier to occur of (i) the six-month anniversary of such separation from service and (ii) the date of the Grantee’s death.

SECTION 5. DEFINITIONS.

(a)“Cause” shall mean, with respect to the Grantee,

(i)    any conviction or plea of nolo contendere to a felony;

(ii)    any willful misconduct by the Grantee in connection with the performance of the Grantee’s Service for the Company, including, without limitation, (A) misappropriation of funds of the Company, (B) harassment of or discrimination against individuals on account of gender, race, religion, national origin or disability or retaliation against an individual for making any claim that the Grantee has so harassed or discriminated against such individual or (C) breach of a written policy of the Company; or

(iii)    any disclosure of confidential or proprietary information of the Company or breach of any confidentiality, non-competition or non-solicitation covenant made by the Grantee for the benefit of the Company; provided, however, Grantee understands that (A) nothing contained in this Agreement limits Grantee’s ability to report possible violations of law or regulation to, or file a charge or complaint with, the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Department of Justice, the Congress, any Inspector General, or any other federal, state or local governmental agency or commission (“Government Agencies”), (B) nothing contained in this Agreement limits Grantee’s ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company,

7

GLOBAL RSU FORM

and (C) nothing contained in this Agreement shall limit Grantee’s ability under applicable United States federal law to (x) disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law or (y) disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure.

(b)“Disability” shall mean that the Grantee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment as determined by the Board of Directors in its sole discretion.

(c)“Good Reason” shall be defined as that term is defined in the Grantee’s offer letter or other applicable employment agreement with the Company, if any; or, if there is no such definition, “Good Reason” shall mean the occurrence of any of the following events without the Grantee’s consent, provided that the Grantee has complied with the Good Reason Process: (i) a material diminution in the Grantee’s responsibility, authority or duty; (ii) a material diminution in the Grantee’s base salary except for across-the-board salary reductions based on the Company and its Subsidiaries’ financial performance similarly affecting all or substantially all management employees of the Company and its Subsidiaries; or (iii) the relocation of the office at which the Grantee was principally employed as of the date of this Agreement to a location more than fifty (50) miles from the location of such office, or the Grantee being required to be based anywhere other than such office, except to the extent the Grantee was not previously assigned to a principal location and except for required travel on business to an extent substantially consistent with the Grantee’s business travel obligations as of the date of this Agreement.

(d)“Good Reason Process” shall mean that (i) the Grantee reasonably determines in good faith that a Good Reason condition has occurred; (ii) the Grantee notifies the Company in writing of the occurrence of the Good Reason condition within sixty (60) days of such occurrence; (iii) the Grantee cooperates in good faith with the Company’s efforts, for a period of not less than thirty (30) days following such notice (the “Cure Period”), to remedy the condition; (iv) notwithstanding such efforts, the Good Reason condition continues to exist following the Cure Period; and (v) the Grantee has a termination of Service within sixty (60) days after the end of the Cure Period. If the Company cures the Good Reason condition during the Cure Period, and the Grantee has a termination of Service due to such condition (notwithstanding its cure), then the Grantee will not be deemed to have had a termination of Service for Good Reason.

(e)“Pro-Rata Fraction” shall mean a fraction with the numerator equal to the Grantee’s days of Service starting from the most recent vesting date preceding the date of the termination of Service (or Grant Date if no vesting date has occurred as of the date of such termination) and ending on the date of termination of Service, and the denominator equal to 365.

(f)“Retirement” means the Grantee’s termination of Service after the attainment of (i) at least 55 years of age with at least ten years of Service or (ii) at least 65 years of age; provided, however, Retirement shall not be deemed to have occurred if the Grantee’s Service is terminated by the Company for Cause.

(g)“Service” shall mean service as an employee of the Company or any of its Subsidiaries or Affiliates or as a member of the Board of Directors.

8

APPENDIX A

1.    DATA PRIVACY

By accepting this award, you hereby acknowledge the collection, use and transfer, in electronic or other form, of your personal data as described in this document by and among, as applicable, your employer and the Company and its Subsidiaries for the exclusive purpose of implementing, administering and managing the Restricted Stock Units and/or Other Stock-Based Award which have been awarded to you under this Agreement (collectively, the “Stock Awards”) , to comply with statutory obligations and to handle any questions, correspondence or disputes as may arise in the context hereof.

You understand that the Company and your employer hold certain personal information about you, including, but not limited to, your name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of any entitlement to shares of stock or equivalent benefits awarded, canceled, vested, unvested or outstanding in your favor (“Data”), for the purpose of implementing, administering and managing the Stock Awards under this Agreement and in accordance with applicable laws, and that the processing of Data is necessary for such purpose. You understand that Data may be transferred to any third parties assisting in the implementation, administration and management of the Stock Awards, that these recipients may be located in your country or elsewhere (including outside of the European Economic Area), and that the recipient’s country may have different data privacy laws and protections from your country. You understand that such (international) transfer is necessary for the performance of this Agreement. You understand that you may request a list with the names and addresses of any potential recipients of the Data by contacting your local human resources representative. You understand that Data will be held only as long as is necessary to implement, administer and manage the Stock Awards. You understand that you may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or, where relevant, refuse or withdraw the consents herein, in any case without cost, by contacting in writing your local human resources representative. You understand that under certain circumstances you also have the right to access, rectification or erasure of Data processed by your employer, as well as the right to object to or request the limiting of the processing of Data processed by your employer and to lodge a complaint with the competent supervisory authority.

2.    ADDITIONAL ACKNOWLEDGEMENTS

By entering into this award agreement and accepting the grant of Stock Awards evidenced hereby, you acknowledge, understand and agree that:

(a)the Stock Awards are granted voluntarily by the Company, are discretionary in nature and may be modified, suspended or terminated by the Company at any time;

(b)the grant of Stock Awards is voluntary and occasional and does not create any contractual or other right to receive future awards or benefits in lieu of Stock Awards, even if such awards have been awarded in the past;

(c)all decisions with respect to future awards, if any, will be at the sole discretion of the Company;

9

(d)the grant of Stock Awards shall not create a right to further employment with your employer and shall not interfere with the ability of your employer to terminate your employment relationship at any time, with or without Cause;

(e)you are voluntarily accepting the grant of Stock Awards;

(f)the Stock Awards and any payment made pursuant to the Stock Awards are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement benefits or welfare benefits or similar payments, and in no event should be considered as compensation for, or in any way relating to, past services for the Company or any of its Subsidiaries;

(g)in accepting the grant of Stock Awards, you expressly recognize that the Stock Awards are an award made solely by the Company, with principal offices at 251 O'Connor Ridge Blvd., #300, Irving, TX 75038, U.S.A., the Company is solely responsible for the administration of the Plan and the Agreement (collectively, the “Plan Documents”) and your participation in the Plan Documents; in the event that you are an employee of a Subsidiary, the Stock Awards and your participation in the Plan Documents will not be interpreted to form an employment contract or relationship with the Company; furthermore, the Stock Awards will not be interpreted to form an employment contract with any Subsidiary;

(h)the future value of the Company shares which may be delivered in settlement of the Stock Awards (to the extent earned) is unknown and cannot be predicted with certainty;

(i)no claim or entitlement to compensation or damages shall arise from forfeiture of the Stock Awards resulting from termination of your employment by the Company or your employer (for any reason whatsoever and regardless of whether or not such termination is later found to be invalid or in breach of the employment laws in the jurisdiction where you are employed or the terms of your employment agreement, if any) or recoupment of all or any portion of any payment made pursuant to the Stock Awards as provided by any applicable Company policy on recoupment of incentive compensation and, in consideration of the grant of the Stock Awards to which you are not otherwise entitled, you irrevocably agree never to institute any claim against the Company or your employer, waive your ability, if any, to bring any such claim, and release the Company and your employer from any such claim; if, notwithstanding the foregoing, any such claim is allowed by a court of competent jurisdiction, then, by participating in the Plan Documents, you shall be deemed irrevocably to have agreed not to pursue such claim, and you agree to execute any and all documents necessary to request dismissal or withdrawal of such claim;

(j)for purposes of the Stock Awards, your employment will be considered terminated as of the date you are no longer actively employed and providing services to the Company or one of its Subsidiaries, and your right, if any, to earn and be paid any portion of the Stock Awards (and any related Dividend Equivalents) pursuant to this Agreement after such termination of employment (for any reason whatsoever and regardless of whether or not such termination is later found to be invalid or in breach of the employment laws in the jurisdiction where you are employed or the terms of your employment agreement, if any) will be measured by the date you cease to be actively employed and will not be extended

10

by any notice period mandated under local law (e.g., active employment would not include a period of “garden leave” or similar period mandated under the employment laws in the jurisdiction where you are employed or the terms of your employment agreement, if any); the Company, in its sole discretion, shall determine when you are no longer actively employed for purposes of the Stock Awards (including whether you may still be considered actively employed while on an approved leave of absence);

(k)you are solely responsible for investigating and complying with any exchange control laws applicable to you in connection with any payment made pursuant to Stock Awards and/or the payment of cash Dividend Equivalents, if any;

(l)unless otherwise provided in the Plan Documents or by the Company in its discretion, the Stock Awards and the benefits evidenced by this award agreement do not create any entitlement to have the Stock Awards or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the Company’s common stock;

(m)neither your employer, the Company nor any of its Subsidiaries shall be liable for any foreign exchange rate fluctuation between your local currency and the United States Dollar that may affect the value of the Stock Awards or any payment made pursuant to the Stock Awards; and

(n)the Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Stock Awards. You are hereby advised to consult with your personal tax, legal and financial advisors regarding the Stock Awards before taking any action in relation thereto.

3.    LANGUAGE

If you have received this Agreement or any other document related to the Plan Documents translated into a language other than English and if the meaning of the translated version differs from the English version, the English version shall control.

11

GENERAL ADDENDUM

COUNTRY-SPECIFIC TERMS AND CONDITIONS

1.Terms and Conditions

1.1    This addendum includes additional terms and conditions that (unless otherwise stated below) govern the award provided for in this Agreement granted to the Grantee under the Plan if the Grantee is employed in, resident in, a citizen of, or otherwise subject to tax in one of the countries listed below. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Plan and/or this Agreement.

1.2    If the Grantee is a citizen or resident of a country, or otherwise subject to tax in another country other than the one in which he or she is currently working and/or residing, transfers to another country after the date of grant of the award provided for in this Agreement, or is considered a resident of another country for local law purposes, the Company shall, in its discretion, determine the extent to which the special terms and conditions contained herein shall be applicable to the Grantee.

1.3    In addition, the Grantee is advised to seek appropriate professional advice as to how the applicable laws in his or her country may apply to his or her situation.

12

BELGIUM

1.Application

This Addendum shall apply to any Grantee (a) that is employed in, resident in, a citizen of, or otherwise subject to tax in Belgium; or (b) in circumstances where the Company, in exercising its discretion in accordance with paragraph 1.2 of the General Addendum, determines this Addendum shall apply to the Grantee.

2.General

2.1.    Notwithstanding any other provision of this Agreement, the Grantee acknowledges, understands and agrees that the offer to grant the award made under this Agreement to the Grantee:

a)    is a personal offer that:

(i)    may only be accepted by the Grantee; and

(ii)    is made to the Grantee because the Grantee is employed in the Company’s business (be it directly or through an affiliate of the Company) in Belgium;

b)    is made by the Company on reliance of the above warranty given by the Grantee.

3.Grantee's commitments

Notwithstanding any other terms contained in this Agreement and / or the Plan, the Grantee cannot transfer the RSUs inter vivos, (i.e. in any manner other than by will or by the laws of descent or distribution, intestacy or court order, with no consideration furnished by the transferee for the transfer).

4.Grantee's acknowledgements.

4.1.    The Grantee acknowledges and authorizes the Company and its affiliates (more in particular, but not limited to, any affiliate located or tax resident in Belgium) to make any tax withholding or withholding for social security contributions it is required to make under Belgian Law.

4.2.    Any tax due or payable by a Grantee, and where legally required social security contributions and withholding taxes due by the Company and any of its affiliates (more in particular, but not limited to, any affiliate located or tax resident in Belgium), in connection with the Plan, including in connection with the acquisition, through issue or otherwise, ownership, cancellation and/or alienation of, and any distributions and/or other proceeds in relation to, directly or indirectly, the RSUs or the Shares, shall be entirely for the account and be for the sole risk of the Grantee.

13

4.3.    The Grantee acknowledges that benefits granted under this Agreement and / or the Plan (including a.o. the grant of the RSUs) may be reported for taxation purposes where required under Belgian laws whereby the value of the RSUs for tax purposes (the "Taxable Benefit") shall be determined on the basis of the Law of 26 March 1999 (i.e. the Act on the Belgian Action Plan for Employment 1998 and containing various provisions).

5.Employment law aspects

5.1.    Notwithstanding anything otherwise contained in this Agreement or the Plan:

a)    The grant of the RSUs and Grantee's participation in the Plan are voluntary and occasional and do not create any contractual or other acquired right for the Grantee to receive any future grants of awards, or benefits in lieu of awards, even if awards have been granted in the past;

b)    The RSUs acquired under the Plan and the income and value of same, are non-essential employment conditions. Therefore, any modification to the Plan, any termination of the Plan or any decision not to grant any RSUs to the Grantee shall not constitute a change of the essential terms and conditions of the Grantee's employment contract and/or employment relationship;

c)    The future value of the RSUs is unknown, indeterminable, and cannot be predicted with certainty. As a consequence, the Company or any of its affiliates are not responsible for any decrease in the value of any RSUs under the Plan;

d)    For purposes of the RSUs, the employment contract of the Grantee will be considered terminated as of the effective termination date of the employment contract, meaning: (i) if the employment contract is terminated with a notice period: the date on which the notice period expires, (ii) if the employment contract is terminated with payment of an indemnity in lieu of notice: immediately; and unless otherwise expressly provided in this Agreement or determined by the Company, Grantee's right to vest in the RSUs under the Plan, if any, will terminate as of such date.

14

Brazil

1.    Application

This Addendum shall apply to any Grantee (a) that is employed in, resident in, a citizen of, or otherwise subject to tax in Brazil; or (b) in circumstances where the Company, in exercising its discretion in accordance with paragraph 1.2 of the General Addendum, determines this Addendum shall apply to the Grantee.

2.    Definitions

Notwithstanding anything else contained in this Agreement:

"Disability" shall mean: “any situation of invalidity or incapacity of the Grantee, dully declared by the Social Security Bureau (INSS), that substantially prevents him/her from fulfilling employment duties as he/she did prior to the event that caused such situation”; and

"Cause" shall mean: “any reason and/or cause such as to justify termination of employment as per article 482 of the Brazilian Labor Code (CLT), which include: theft; direct order disobedience, non-compliance with the Company’s internal rules and policies, among others.”

15

Canada

1.    Application

This Addendum shall apply to any Grantee (a) that is employed in, resident in, a citizen of, or otherwise subject to tax in Canada; or (b) in circumstances where the Company, in exercising its discretion in accordance with paragraph 1.2 of the General Addendum, determines this Addendum shall apply to the Grantee.

2.    Use of Information

For the purposes of managing and administering the arrangements under the Agreement, we may share basic information such as information concerning your eligibility, grants, settlement or vesting in accordance with this Agreement with and between other entities in the Darling group including, but not limited to, the Company which is located in the US. We may also share this information with service providers that may assist in administering the arrangements under the Agreement, as well as with relevant government authorities.

16

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Randall C. Stuewe, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Darling Ingredients Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstance under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 11, 2021

      /s/  Randall C. Stuewe

   -----------------------------------------------

Randall C. Stuewe

Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Brad Phillips, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Darling Ingredients Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstance under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 11, 2021

      /s/  Brad Phillips

   -----------------------------------------------

Brad Phillips

Chief Financial Officer

EX-32

EXHIBIT 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

        In connection with the Quarterly Report of Darling Ingredients Inc. (the “Company”) on Form 10-Q for the period ending April 3, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Randall C. Stuewe, Chief Executive Officer of the Company and Brad Phillips, Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002 (the “Act”), that:

                 1.         The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

                 2.         The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

        This certification is being furnished solely for purposes of compliance with the Act.

/s/  Randall C. Stuewe	/s/  Brad Phillips
Randall C. Stuewe	Brad Phillips
Chief Executive Officer	Chief Financial Officer
Date: May 11, 2021	Date: May 11, 2021

XML

Document and Entity Information Document - shares	3 Months Ended
	Apr. 03, 2021	May 06, 2021
Cover [Abstract]
Entity File Number	001-13323
Title of 12(b) Security	Common stock $0.01 par value per share
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Entity Registrant Name	DARLING INGREDIENTS INC.
Entity Central Index Key	0000916540
Current Fiscal Year End Date	--01-01
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Apr. 03, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		163,172,181
Document Transition Report	false
Entity Tax Identification Number	36-2495346
Trading Symbol	DAR
Security Exchange Name	NYSE
Entity Address, Address Line One	5601 N MacArthur Blvd.
Entity Address, City or Town	Irving
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75038
City Area Code	972
Local Phone Number	717-0300
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021
Current assets:
Cash and cash equivalents	$ 71,199	$ 81,617
Restricted cash	177	103
Accounts receivable, less allowance for bad debts of $9,111 at April 3, 2021 and $10,815 at January 2, 2021	385,663	405,387
Inventories	420,659	405,922
Prepaid expenses	50,251	47,793
Income taxes refundable	3,274	3,883
Other current assets	9,544	42,289
Total current assets	940,767	986,994
Property, plant and equipment, less accumulated depreciation of $1,731,400 at April 3, 2021 and $1,702,123 at January 2, 2021	1,822,075	1,863,814
Intangible assets, less accumulated amortization of $569,477 at April 3, 2021 and $568,086 at January 2, 2021	452,539	473,680
Goodwill	1,241,242	1,260,240
Investment in unconsolidated subsidiaries	915,085	804,682
Operating right-of-use assets, net	145,238	146,563
Other assets	59,099	60,682
Deferred income taxes	15,402	16,676
Total assets	5,591,447	5,613,331
Current liabilities:
Current portion of long-term debt	26,997	27,538
Accounts payable, principally trade	245,648	255,340
Income taxes payable	15,627	17,497
Operating lease liability, current	38,064	39,459
Accrued expenses	311,371	335,471
Total current liabilities	637,707	675,305
Long-term debt, net of current portion	1,417,534	1,480,531
Operating lease liability, non-current	108,777	109,707
Other non-current liabilities	115,799	117,371
Deferred income taxes	281,684	276,208
Total liabilities	2,561,501	2,659,122
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 250,000,000 shares authorized; 171,519,389 and 169,880,238 shares issued at April 3, 2021 and January 2, 2021, respectively	1,715	1,699
Additional paid-in capital	1,611,845	1,597,429
Treasury stock, at cost; 8,364,523 and 7,679,849 shares at        April 3, 2021 and January 2, 2021, respectively	(199,851)	(151,710)
Accumulated other comprehensive loss	(295,796)	(252,433)
Retained earnings	1,848,690	1,696,924
Total Darling's stockholders’ equity	2,966,603	2,891,909
Noncontrolling interests	63,343	62,300
Total stockholders' equity	3,029,946	2,954,209
Total liabilities and stockholders' equity	$ 5,591,447	$ 5,613,331

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021
Assets:
Accounts Receivable, Allowance for Credit Loss, Current	$ 9,111	$ 10,815
Property, plant and equipment, accumulated depreciation	1,731,400	1,702,123
Intangible assets, accumulated amortization	$ 569,477	$ 568,086
Stockholders’ equity:
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	171,519,389	169,880,238
Treasury stock, shares	8,364,523	7,679,849

XML

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Income Statement [Abstract]
Net sales	$ 1,046,716	$ 852,842
Costs and expenses:
Cost of sales and operating expenses	772,784	646,908
Loss (gain) on disposal of property, plant, equipment and other assets	(64)	61
Selling, general and administrative expenses	97,398	96,193
Restructuring and asset impairment charges	778	0
Depreciation and amortization	78,534	84,671
Total costs and expenses	949,430	827,833
Equity in net income of Diamond Green Diesel	102,225	97,820
Operating income	199,511	122,829
Other expense:
Interest expense	(16,428)	(19,090)
Foreign currency gain/(loss)	(410)	1,664
Other expense, net	(1,159)	(1,881)
Total other expense	(17,997)	(19,307)
Equity in net income of other unconsolidated subsidiaries	612	869
Income before income taxes	182,126	104,391
Income tax expense	28,708	18,300
Net income	153,418	86,091
Net income attributable to noncontrolling interests	(1,652)	(581)
Net income attributable to Darling	$ 151,766	$ 85,510
Basic income per share (in dollars per share)	$ 0.93	$ 0.52
Diluted income per share (in dollars per share)	$ 0.90	$ 0.51

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Net income	$ 153,418	$ 86,091
Other comprehensive income/(loss), net of tax:
Foreign currency translation	(38,222)	(65,236)
Pension adjustments	792	648
Total other comprehensive loss, net of tax	(41,829)	(62,733)
Total comprehensive income	111,589	23,358
Comprehensive income attributable to noncontrolling interests	3,186	492
Comprehensive income attributable to Darling	108,403	22,866
Soybean Meal
Other comprehensive income/(loss), net of tax:
Derivative adjustments	(257)	0
Corn Option
Other comprehensive income/(loss), net of tax:
Derivative adjustments	(800)	136
Heating Oil Swaps And Options
Other comprehensive income/(loss), net of tax:
Derivative adjustments	3,464	10,870
Foreign Exchange Contract
Other comprehensive income/(loss), net of tax:
Derivative adjustments	$ (6,806)	$ (9,151)

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Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands	Total	Heating Oil	Corn Option	Soybean Meal	Foreign Exchange Contract	Stockholders' equity attributable to Darling	Stockholders' equity attributable to Darling Heating Oil	Stockholders' equity attributable to Darling Corn Option	Stockholders' equity attributable to Darling Soybean Meal	Stockholders' equity attributable to Darling Foreign Exchange Contract	Common Stock	Additional Paid-In Capital	Treasury Stock	Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Heating Oil	Accumulated Other Comprehensive Loss Corn Option	Accumulated Other Comprehensive Loss Soybean Meal	Accumulated Other Comprehensive Loss Foreign Exchange Contract	Retained Earnings	Non-controlling Interests
Balance (in shares) at Dec. 28, 2019											163,775,111
Stockholders' Equity, Beginning Balance at Dec. 28, 2019	$ 2,643,350					$ 2,565,819					$ 1,686	$ 1,560,897	$ (75,022)	$ (321,847)					$ 1,400,105	$ 77,531
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	86,091					85,510													85,510	581
Deductions to noncontrolling interests	(9,875)					3,271						3,271								(13,146)
Pension liability adjustments, net of tax	648					648								648
Derivative adjustment, net of tax		$ 10,870	$ 136	$ 0	$ (9,151)		$ 10,870	$ 136		$ (9,151)					$ 10,870	$ 136		$ (9,151)
Foreign currency translation	(65,236)					(65,147)								(65,147)						(89)
Issuance of non-vested stock (in shares)											8,000
Issuance of non-vested stock	40					40					$ 0	40
Stock-based compensation	10,778					10,778						10,778
Treasury stock (in shares)											(2,372,876)
Treasury stock	(60,082)					(60,082)							(60,082)
Issuance of common stock (in shares)											447,729
Issuance of common stock	873					873					$ 5	868
Balance (in shares) at Mar. 28, 2020											161,857,964
Stockholders' Equity, Ending Balance at Mar. 28, 2020	2,608,442					2,543,565					$ 1,691	1,575,854	(135,104)	(384,491)					1,485,615	64,877
Balance (in shares) at Jan. 02, 2021											162,200,389
Stockholders' Equity, Beginning Balance at Jan. 02, 2021	2,954,209					2,891,909					$ 1,699	1,597,429	(151,710)	(252,433)					1,696,924	62,300
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	153,418					151,766													151,766	1,652
Distribution of noncontrolling interest earnings	(2,143)																			(2,143)
Pension liability adjustments, net of tax	792					792								792
Derivative adjustment, net of tax		$ 3,464	$ (800)	$ (257)	$ (6,806)		$ 3,464	$ (800)	$ (257)	$ (6,806)					$ 3,464	$ (800)	$ (257)	$ (6,806)
Foreign currency translation	(38,222)					(39,756)								(39,756)						1,534
Issuance of non-vested stock (in shares)											0
Issuance of non-vested stock	58					58					$ 0	58
Stock-based compensation	8,357					8,357						8,357
Treasury stock (in shares)											(684,674)
Treasury stock	(48,141)					(48,141)							(48,141)
Issuance of common stock (in shares)											1,639,151
Issuance of common stock	6,017					6,017					$ 16	6,001
Balance (in shares) at Apr. 03, 2021											163,154,866
Stockholders' Equity, Ending Balance at Apr. 03, 2021	$ 3,029,946					$ 2,966,603					$ 1,715	$ 1,611,845	$ (199,851)	$ (295,796)					$ 1,848,690	$ 63,343

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Consolidated Statements of Stockholders’ Equity (Parenthetical) - $ / shares	Apr. 03, 2021	Jan. 02, 2021	Mar. 28, 2020
Statement of Stockholders' Equity [Abstract]
Common stock, par value (in usd per share)	$ 0.01	$ 0.01	$ 0.01

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Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Cash flows from operating activities:
Net income	$ 153,418,000	$ 86,091,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	78,534,000	84,671,000
Loss (gain) on disposal of property, plant, equipment and other assets	(64,000)	61,000
Asset impairment	138,000	0
Deferred taxes	11,809,000	6,377,000
Decrease in long-term pension liability	(448,000)	(264,000)
Stock-based compensation expense	8,415,000	10,818,000
Write-off deferred loan costs	598,000	0
Deferred loan cost amortization	1,040,000	1,416,000
Equity in net income of Diamond Green Diesel and other unconsolidated subsidiaries	(102,837,000)	(98,689,000)
Distributions of earnings from other unconsolidated subsidiaries	57,000	0
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	10,721,000	487,000
Income taxes refundable/payable	(760,000)	348,000
Inventories and prepaid expenses	(27,188,000)	(24,999,000)
Accounts payable and accrued expenses	(13,462,000)	(16,790,000)
Other	18,834,000	(14,981,000)
Net cash provided by operating activities	138,805,000	34,546,000
Cash flows from investing activities:
Payments To Acquire Capital Assets	(60,751,000)	(61,599,000)
Acquisitions, net of cash acquired	(340,000)	0
Investment in unconsolidated subsidiary	(4,449,000)	0
Gross proceeds from disposal of property, plant and equipment and other assets	1,629,000	379,000
Payments to Acquire Intangible Assets	(347,000)	(3,416,000)
Net cash used by investing activities	(64,258,000)	(64,636,000)
Cash flows from financing activities:
Proceeds from long-term debt	9,262,000	8,264,000
Repayments of Senior Debt	(60,444,000)	(8,638,000)
Borrowings from revolving credit facility	111,000,000	219,933,000
Payments on revolving credit facility	(97,000,000)	(100,782,000)
Net cash overdraft financing	499,000	(9,594,000)
Issuance of common stock	50,000	67,000
Repurchase of common stock	0	(55,044,000)
Minimum withholding taxes paid on stock awards	(42,268,000)	(4,328,000)
Payments to Noncontrolling Interests	0	(8,784,000)
Payments of Ordinary Dividends, Noncontrolling Interest	(2,143,000)	(688,000)
Net cash provided (used) by financing activities	(81,044,000)	40,406,000
Effect of exchange rate changes on cash	(3,847,000)	(6,916,000)
Net increase (decrease) in cash, cash equivalents and restricted cash	(10,344,000)	3,400,000
Cash, cash equivalents and restricted cash at beginning of period	81,720,000	73,045,000
Cash, cash equivalents and restricted cash at end of period	71,376,000	76,445,000
Supplemental disclosure of cash flow information:
Accrued capital expenditures	(9,678,000)	(1,630,000)
Cash paid during the period for:
Interest, net of capitalized interest	2,774,000	5,863,000
Income taxes, net of refunds	15,578,000	11,453,000
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	12,404,000	9,121,000
Debt issued for assets	$ 0	$ 21,000

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General	3 Months Ended
	Apr. 03, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
General	GeneralThe accompanying consolidated financial statements for the three month periods ended April 3, 2021 and March 28, 2020, have been prepared by Darling Ingredients Inc., a Delaware corporation (“Darling”, and together with its subsidiaries, the “Company” or “we”, “us” or “our”) in accordance with generally accepted accounting principles in the United States (“GAAP”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).  The information furnished herein reflects all adjustments (consisting only of normal recurring accruals) that are, in the opinion of management, necessary to present a fair statement of the financial position and operating results of the Company as of and for the respective periods. However, these operating results are not necessarily indicative of the results expected for a full fiscal year. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations.  However, management of the Company believes, to the best of their knowledge, that the disclosures herein are adequate to make the information presented not misleading.  The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements contained in the Company’s Form 10-K for the fiscal year ended January 2, 2021.

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Summary of Significant Accounting Policies

3 Months Ended

Apr. 03, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

(a)Basis of Presentation

The consolidated financial statements include the accounts of Darling and its consolidated subsidiaries. Noncontrolling interests represent the outstanding ownership interest in the Company's consolidated subsidiaries that are not owned by the Company. In the accompanying Consolidated Statements of Operations, the noncontrolling interest in net income of the consolidated subsidiaries is shown as an allocation of the Company's net income and is presented separately as “Net income attributable to noncontrolling interests.” In the Company's Consolidated Balance Sheets, noncontrolling interests represent the ownership interests in the Company consolidated subsidiaries' net assets held by parties other than the Company. These ownership interests are presented separately as “Noncontrolling interests” within “Stockholders' Equity.” All intercompany balances and transactions have been eliminated in consolidation.

(b)Fiscal Periods

The Company has a 52/53 week fiscal year ending on the Saturday nearest December 31.  Fiscal periods for the consolidated financial statements included herein are as of April 3, 2021, and include the 13 weeks ended April 3, 2021, and the 13 weeks ended March 28, 2020.

(c)    Cash, Cash Equivalents and Restricted Cash

The Company considers all short-term highly liquid instruments, with an original maturity of three months or less, to be cash equivalents. Cash balances are recorded net of book overdrafts when a bank right-of-offset exists. All other book overdrafts are recorded in accounts payable and the change in the related balance is reflected in operating activities on the Consolidated Statement of Cash Flows. In addition, the Company has bank overdrafts, which are considered a form of short-term financing with changes in the related balance reflected in financing activities in the Consolidated Statement of Cash Flows.

Restricted cash represents amounts required to be set aside as collateral for environmental claims and are insignificant to the Company.

(d)    Accounts Receivable and Allowance for Doubtful Accounts

The Company maintains allowances for doubtful accounts for estimated losses resulting from customers’ non-payment of trade accounts receivable owed to the Company.  These trade receivables arise in the ordinary course of business from sales of finished product or services to the Company’s customers.  The estimate of

allowance for doubtful accounts is based upon the Company’s bad debt experience adjusted for differences in asset-specific risk characteristic, current economic conditions, and forecasts of future economic conditions.  If the financial condition of the Company’s customers deteriorates, resulting in the customers’ inability to pay the Company’s receivables as they come due, additional allowances for doubtful accounts may be required.

The Company has entered into agreements with third party banks to factor certain of the Company's trade receivables in order to enhance working capital by turning trade receivables into cash faster. Under these agreements, the Company sells certain selected customers’ trade receivables to third party banks without recourse for cash less a nominal fee. For the three months ended April 3, 2021 and March 28, 2020, the Company sold approximately $106.9 million and $84.5 million of its trade receivables and incurred approximately $0.3 million and $0.4 million in fees, which are recorded as interest expense, respectively.

(e)    Revenue Recognition

The Company recognizes revenue on sales when control of the promised finished product is transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for the finished product. Service revenues are recognized when the service occurs.  Certain customers may be required to prepay prior to shipment in order to maintain payment protection related to certain foreign and domestic sales.  These amounts are recorded as unearned revenue and recognized when control of the promised finished product is transferred to the Company's customer.  See Note 19 (Revenue) to the Company's Consolidated Financial Statements included herein.

(f)    Foreign Currency Translation and Remeasurement

Foreign currency translation is included as a component of accumulated other comprehensive loss and reflects the adjustments resulting from translating the foreign currency denominated financial statements of foreign subsidiaries into U.S. dollars. The functional currency of the Company's foreign subsidiaries is the currency of the primary economic environment in which the entity operates, which is generally the local currency of the country. Accordingly, assets and liabilities of the foreign subsidiaries are translated into U.S. dollars at fiscal period end exchange rates, including intercompany foreign currency transactions that are of long-term investment nature. Income and expense items are translated at average exchange rates occurring during the period. Changes in exchange rates that affect cash flows and the related receivables or payables are recognized as transaction gains/(losses) in determining net income. The Company incurred net foreign currency translation losses of approximately $39.8 million and $65.1 million for the three months ended April 3, 2021 and March 28, 2020, respectively.

(g)    Leases

The Company accounts for leases in accordance with Accounting Standard Codification (“ASC”) Topic 842, leases. The Company determines if an arrangement is a lease at inception for which the Company recognizes the right-of-use (“ROU”) asset and a lease liability at the lease commencement date. For operating leases, the lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. In determining the lease liability, the Company applies a discount rate to the minimum lease payments within each lease. ASC 842 requires the Company to use the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. To estimate the Company's incremental borrowing rate over various terms, a comparable market yield curve consistent with the Company's credit quality is determined. The lease term for all of the Company's leases include the noncancellable period of the lease plus any additional periods covered by either a Company option to extend the lease that the Company is reasonably certain to exercise or when a triggering event occurs. The Company has elected to not recognize a ROU asset and lease liability with an initial term of 12 months or less at lease commencement. Operating leases are included on the Company's balance sheet as a ROU asset, current operating lease liabilities and long-term operating lease liabilities. For finance leases, the lease liability is initially measured in the same manner and date as for the operating leases, and is subsequently measured at amortized cost using the effective interest method. Finance leases are included in property, plant and equipment, current portion of long-term debt and long-term debt, net of current portion, but are not significant to the Company.

The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any direct costs incurred less any

lease incentives received. For operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of the lease incentives received. Some leases payments contain rent escalation clauses (including index-based escalations), initially measured using the index at the lease commencement date. The Company recognizes minimum rental expense on a straight-line basis based on the fixed components of the lease arrangement.

The Company uses the long-lived assets impairment guidance in ASC subtopic 360-10, Property, Plant and Equipment - Overall, to determine whether the ROU asset is impaired, and if so, the amount of the impairment loss to recognize. The Company monitors for events or changes in circumstances that require a reassessment of one of its leases. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding ROU asset unless doing so would reduce the carrying amount of the ROU asset to an amount less than zero. In that case, the amount of the adjustment that would result in a negative ROU asset balance is recorded in the consolidated statement of operations.

(h)    Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

If it is at least reasonably possible that the estimate of the effect on the financial statements of a condition, situation, or set of circumstances that exist at the date of the financial statements will change in the near term due to one or more future confirming events, and the effect of the change would be material to the financial statements, the Company will disclose the nature of the uncertainty and include an indication that it is at least reasonably possible that a change in the estimate will occur in the near term.  If the estimate involves certain loss contingencies, the disclosure will also include an estimate of the probable loss or range of loss or state that an estimate cannot be made.

As a result of the current global COVID-19 pandemic, and related government imposed movement restrictions and initiatives implemented to reduce the global transmission of COVID-19, we have evaluated the potential impact to the Company's operations and for any indicators of potential triggering events that could indicate certain of the Company's assets may be impaired. Through the three months ended April 3, 2021, the Company has not observed any impairments of the Company's assets or a significant change in their fair value due to the COVID-19 pandemic.

(i)    Earnings Per Share

Basic income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares including non-vested and restricted shares outstanding during the period.  Diluted income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares outstanding during the period increased by dilutive common equivalent shares determined using the treasury stock method.

	Net Income per Common Share (in thousands, except per share data)
	Three Months Ended
			April 3, 2021					March 28, 2020
	Income		Shares	Per Share		Income		Shares	Per Share
Basic:
Net Income attributable to Darling	$	151,766	162,925	$	0.93	$	85,510	163,474	$	0.52
Diluted:
Effect of dilutive securities:
Add: Option shares in the money and dilutive effect of non-vested stock awards			5,733					6,749
Less: Pro forma treasury shares			(909)					(2,296)
Diluted:
Net income attributable to Darling	$	151,766	167,749	$	0.90	$	85,510	167,927	$	0.51

For the three months ended April 3, 2021 and March 28, 2020, respectively, zero and 551,877 outstanding stock options were excluded from diluted income per common share as the effect was antidilutive. For the three months ended April 3, 2021 and March 28, 2020, respectively, 162,896 and 406,502 shares of non-vested stock and stock equivalents were excluded from diluted income per common share as the effect was antidilutive.

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Investment in Unconsolidated Subsidiary

3 Months Ended

Apr. 03, 2021

Equity Method Investments and Joint Ventures [Abstract]

Investment in Unconsolidated Subsidiary

Investment in Unconsolidated Subsidiaries

On January 21, 2011, a wholly-owned subsidiary of Darling entered into a limited liability company agreement with a wholly-owned subsidiary of Valero Energy Corporation (“Valero”) to form Diamond Green Diesel Holdings LLC (“DGD” or the “DGD Joint Venture”). The DGD Joint Venture is owned 50% / 50% with Valero and was formed to design, engineer, construct and operate a renewable diesel plant located adjacent to Valero's refinery in Norco, Louisiana. The DGD Joint Venture reached mechanical completion and began the production of renewable diesel in late June 2013. Effective May 1, 2019, the limited liability company agreement was amended and restated for the purpose of updating the agreement in certain respects, including to remove certain provisions that were no longer relevant and to add new provisions relating to the DGD Joint Venture’s ongoing expansion project to construct a new, parallel facility located next to the existing facility.

Selected financial information for the Company's DGD Joint Venture is as follows (in thousands):

(in thousands)	March 31, 2021		December 31, 2020
Assets:
Total current assets	$	477,840	$	383,557
Property, plant and equipment, net	1,437,905		1,238,726
Other assets	39,171		36,082
Total assets	$	1,954,916	$	1,658,365
Liabilities and members' equity:
Total current portion of long term debt	$	562	$	517
Total other current liabilities	177,594		99,787
Total long term debt	8,702		8,705
Total other long term liabilities	8,722		3,758
Total members' equity	1,759,336		1,545,598
Total liabilities and members' equity	$	1,954,916	$	1,658,365

	Three Months Ended
(in thousands)	March 31, 2021		March 31, 2020
Revenues:
Operating revenues	$	431,633	$	358,615
Expenses:
Total costs and expenses less depreciation, amortization and accretion expense	215,234		151,347
Depreciation, amortization and accretion expense	11,687		11,774
Total costs and expenses	226,921		163,121
Operating income	204,712		195,494
Other income	58		461
Interest and debt expense, net	(320)		(315)
Net income	$	204,450	$	195,640

As of April 3, 2021, under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $879.7 million on the consolidated balance sheet. The Company has recorded equity in net income from the DGD Joint Venture of approximately $102.2 million and $97.8 million for the three months ended April 3, 2021 and March 28, 2020, respectively. In December 2019, the blender tax credits for calendar year 2018 and 2019 were retroactively reinstated by the U.S. Congress. In addition, blenders tax credits were extended for calendar years 2020, 2021 and 2022. For the three months ended March 31, 2021 and March 31, 2020, the DGD Joint Venture recorded approximately $79.0 million and $80.0 million of blenders tax credits, respectively. In the three months ended April 3, 2021, the Company did not receive any dividend distributions from the DGD Joint Venture.

In addition to the DGD Joint Venture, the Company has investments in other unconsolidated subsidiaries that are insignificant to the Company.

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Inventories

3 Months Ended

Apr. 03, 2021

Inventory Disclosure [Abstract]

Inventories

Inventories

A summary of inventories follows (in thousands):

	April 3, 2021		January 2, 2021
Finished product	$	250,237	$	233,044
Work in process	87,219		87,223
Raw material	35,229		36,746
Supplies and other	47,974		48,909
	$	420,659	$	405,922

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Intangible Assets

3 Months Ended

Apr. 03, 2021

Intangible Asset Disclosure Text Block [Abstract]

Intangible Assets

Intangible Assets

The gross carrying amount of intangible assets not subject to amortization and intangible assets subject to amortization

is as follows (in thousands):    

	April 3, 2021		January 2, 2021
Indefinite Lived Intangible Assets
Trade names	$	54,184	$	55,349
	54,184		55,349
Finite Lived Intangible Assets:
Routes	393,937		397,342
Permits	481,959		494,191
Non-compete agreements	645		3,300
Trade names	65,675		65,675
Royalty, consulting, land use rights and leasehold	25,616		25,909
	967,832		986,417
Accumulated Amortization:
Routes	(206,137)		(203,392)
Permits	(314,741)		(315,246)
Non-compete agreements	(355)		(2,981)
Trade names	(41,125)		(39,491)
Royalty, consulting, land use rights and leasehold	(7,119)		(6,976)
	(569,477)		(568,086)
Total Intangible assets, less accumulated amortization	$	452,539	$	473,680

Gross intangible routes, permits, trade names, non-compete agreements and other intangibles decreased in fiscal 2021 as a result of approximately $9.5 million of fully amortized asset retirements and a decrease from foreign currency translation. Amortization expense for the three months ended April 3, 2021 and March 28, 2020, was approximately $17.0 million and $18.2 million, respectively.

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Goodwill

3 Months Ended

Apr. 03, 2021

Intangible Asset Disclosure Text Block [Abstract]

Goodwill

Goodwill

Changes in the carrying amount of goodwill (in thousands):

	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Balance at January 2, 2021
Goodwill	$	830,321	$	351,296	$	126,578	$	1,308,195
Accumulated impairment losses	(15,914)		(461)		(31,580)		(47,955)
	814,407		350,835		94,998		1,260,240
Goodwill acquired during year	40		—		161		201
Foreign currency translation	(5,631)		(9,685)		(3,883)		(19,199)
Balance at April 3, 2021
Goodwill	824,730		341,611		122,856		1,289,197
Accumulated impairment losses	(15,914)		(461)		(31,580)		(47,955)
	$	808,816	$	341,150	$	91,276	$	1,241,242

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Accrued Expense Accrued Expenses

3 Months Ended

Apr. 03, 2021

Payables and Accruals [Abstract]

Accrued Expenses

Accrued Expenses

Accrued expenses consist of the following (in thousands):

	April 3, 2021		January 2, 2021
Compensation and benefits	$	99,108	$	121,497
Accrued ad valorem, and franchise taxes	15,779		39,167
Accrued operating expenses	67,132		62,601
Other accrued expense	129,352		112,206
	$	311,371	$	335,471

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Leases

3 Months Ended

Apr. 03, 2021

Leases [Abstract]

Leases

Leases

The Company leases certain real and personal property, a large portion of the Company's fleet of tractors, all of its rail cars, some IT equipment and other transportation equipment under non-cancelable operating leases. The Company's office leases include certain lease and non-lease components, where the Company has elected to exclude the non-lease components from the calculation of the lease liability and ROU asset. The Company has finance leases, which are not significant to the Company and not separately disclosed in detail.

The components of operating lease expense included in cost of sales and operating expenses and selling, general and administrative expenses were as follows (in thousands):

	Three Months Ended
	April 3, 2021		March 28, 2020
Operating lease expense	$	11,661	$	11,509
Short-term lease costs	6,408		6,245
Total lease cost	$	18,069	$	17,754

Other information (in thousands, except lease terms and discount rates):

	Three Months Ended
	April 3, 2021			March 28, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	14,265		$	12,456
	April 3, 2021			January 2, 2021
Operating right-of-use assets, net	$	145,238		$	146,563
Operating lease liability, current	$	38,064		$	39,459
Operating lease liability, non-current	108,777			109,707
Total operating lease liabilities	$	146,841		$	149,166
Weighted average remaining lease term - operating leases	6.43 years			6.30 years
Weighted average discount rate - operating leases	4.01		%	4.22		%

Future annual minimum lease payments and capital lease commitments as of April 3, 2021 are as follows (in thousands):

Period Ending Fiscal	Operating Leases		Capital Leases
2021 (excluding the three months ended April 3, 2021)	$	32,297	$	650
2022	34,591		824
2023	29,567		611
2024	22,759		467
2025	14,118		331
Thereafter	27,721		574
	$	161,053	$	3,457
Less amounts representing interest	$	(14,212)	(134)
Lease obligations included in current and long-term liabilities	$	146,841	$	3,323

As of April 3, 2021, the Company also has additional operating leases that have not yet commenced, primarily for rail car and tractors, with fixed payments over their noncancellable terms of $3.2 million. These operating leases will commence in 2021 with noncancellable terms of 5 years.

Leases

Leases

The Company leases certain real and personal property, a large portion of the Company's fleet of tractors, all of its rail cars, some IT equipment and other transportation equipment under non-cancelable operating leases. The Company's office leases include certain lease and non-lease components, where the Company has elected to exclude the non-lease components from the calculation of the lease liability and ROU asset. The Company has finance leases, which are not significant to the Company and not separately disclosed in detail.

The components of operating lease expense included in cost of sales and operating expenses and selling, general and administrative expenses were as follows (in thousands):

	Three Months Ended
	April 3, 2021		March 28, 2020
Operating lease expense	$	11,661	$	11,509
Short-term lease costs	6,408		6,245
Total lease cost	$	18,069	$	17,754

Other information (in thousands, except lease terms and discount rates):

	Three Months Ended
	April 3, 2021			March 28, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	14,265		$	12,456
	April 3, 2021			January 2, 2021
Operating right-of-use assets, net	$	145,238		$	146,563
Operating lease liability, current	$	38,064		$	39,459
Operating lease liability, non-current	108,777			109,707
Total operating lease liabilities	$	146,841		$	149,166
Weighted average remaining lease term - operating leases	6.43 years			6.30 years
Weighted average discount rate - operating leases	4.01		%	4.22		%

Future annual minimum lease payments and capital lease commitments as of April 3, 2021 are as follows (in thousands):

Period Ending Fiscal	Operating Leases		Capital Leases
2021 (excluding the three months ended April 3, 2021)	$	32,297	$	650
2022	34,591		824
2023	29,567		611
2024	22,759		467
2025	14,118		331
Thereafter	27,721		574
	$	161,053	$	3,457
Less amounts representing interest	$	(14,212)	(134)
Lease obligations included in current and long-term liabilities	$	146,841	$	3,323

As of April 3, 2021, the Company also has additional operating leases that have not yet commenced, primarily for rail car and tractors, with fixed payments over their noncancellable terms of $3.2 million. These operating leases will commence in 2021 with noncancellable terms of 5 years.

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Debt

3 Months Ended

Apr. 03, 2021

Debt Disclosure [Abstract]

Debt

Debt

Debt consists of the following (in thousands):

	April 3, 2021		January 2, 2021
Amended Credit Agreement:
Revolving Credit Facility	$	69,000	$	55,000
Term Loan B	250,000		300,000
Less unamortized deferred loan costs	(2,979)		(3,798)
Carrying value Term Loan B	247,021		296,202
5.25% Senior Notes due 2027 with effective interest of 5.47%	500,000		500,000
Less unamortized deferred loan costs	(5,553)		(5,747)
Carrying value 5.25% Senior Notes due 2027	494,447		494,253
3.625% Senior Notes due 2026 - Denominated in euro with effective interest of 3.83%	606,310		632,163
Less unamortized deferred loan costs - Denominated in euro	(6,046)		(6,586)
Carrying value 3.625% Senior Notes due 2026	600,264		625,577
Other Notes and Obligations	33,799		37,037
	1,444,531		1,508,069
Less Current Maturities	26,997		27,538
	$	1,417,534	$	1,480,531

As of April 3, 2021, the Company had outstanding debt under the Company's 3.625% Senior Notes due 2026 denominated in euros of €515.0 million. See below for discussion relating to the Company's debt agreements. In addition, at April 3, 2021, the Company had finance lease obligations denominated in euros of approximately €2.8 million.

As of April 3, 2021, the Company had other notes and obligations of $33.8 million that consist of various overdraft facilities of approximately $4.7 million, a China working capital line of credit of approximately $16.2 million and other debt of approximately $12.9 million.

Senior Secured Credit Facilities. On January 6, 2014, Darling, Darling International Canada Inc. (“Darling Canada”) and Darling International NL Holdings B.V. (“Darling NL”) entered into a Second Amended and Restated Credit Agreement (as subsequently amended, the “Amended Credit Agreement”), restating its then existing Amended and Restated Credit Agreement dated September 27, 2013 (the “Former Credit Agreement”), with the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other agents from time to time party thereto.

Effective September 18, 2020, the Company, and certain of its subsidiaries entered into an amendment (the “Sixth Amendment”) with its lenders to the Amended Credit Agreement. Among other things, the Sixth Amendment (i) extended the maturity date of the revolving credit facility under the Amended Credit Agreement from December 16, 2021 to September 18, 2025, (ii) increased the leverage ratio applicable to achieving the lowest applicable margin on borrowing under the revolving credit facility from 1.0 to 1.5, (iii) eliminated or modified certain of the negative covenants to increase the allowances for certain actions, including the incurrence of debt and investments, (iv) limited guarantees from, and security with respect to, entities organized outside of the United States and Canada to a limited group of foreign subsidiary holding companies, (v) included a collateral release mechanism, subject to the consent of the term loan B lenders, upon the Company achieving certain investment grade credit ratings, and (vi) made other market updates and changes.

Effective December 18, 2017, the Company, and certain of its subsidiaries entered into an amendment (the “Fifth Amendment”) with its lenders to the Amended Credit Agreement. Among other things, the Fifth Amendment (i) refinanced the term B loans under the Amended Credit Agreement with new term B loans in an aggregate principal amount of $525.0 million with a maturity date of December 18, 2024; (ii) adjusted the applicable margin pricing on borrowings under the term B loan; (iii) modified certain of the negative covenants to increase the allowances for certain actions, including debt and investments; and (iv) made other updates and changes.

Effective December 16, 2016, the Company, and certain of its subsidiaries entered into an amendment (the “Fourth Amendment”) with its lenders to the Amended Credit Agreement. Among other things, the Fourth Amendment (i) adjusted the applicable margin pricing grid on borrowings under the revolving credit facility which adjusts based on the Company's total leverage ratio as set forth in the Amended Credit Agreement; (ii) eliminated the secured leverage ratio financial maintenance covenant so that from and after the effective date of the Fourth Amendment the Company’s financial covenants consist of maintaining a total leverage ratio not to exceed 5.50 to 1.00 and maintaining an interest coverage ratio of not less than 3.00 to 1.00; (iii) modified certain of the negative covenants to include a senior leverage ratio incurrence-based test and to increase the allowances for certain actions, including debt, investments and restricted payments; and (iv) made other updates and changes.

The Company's Amended Credit Agreement provides for senior secured credit facilities in the aggregate principal amount of $1.525 billion comprised of (i) the Company's $525.0 million term loan B facility and (ii) the Company's $1.0 billion five-year revolving credit facility (up to $150.0 million of which is available for a letter of credit sub-facility and up to $50.0 million of which is available for a swingline sub-facility) (collectively, the “Senior Secured Credit Facilities”). The Amended Credit Agreement also permits Darling and the other borrowers thereunder to incur ancillary facilities provided by any revolving lender party to the Senior Secured Credit Facilities (with certain restrictions). Up to $970.0 million of the revolving loan facility is available to be borrowed by (x) Darling in U.S. dollars, Canadian dollars, euros and other currencies to be agreed and available to each applicable lender, (y) Darling Canada in Canadian dollars and (z) Darling NL and Darling Ingredients International Holding B.V. (“Darling BV”), in U.S. dollars, Canadian dollars, euros and other currencies to be agreed and available to each applicable lender. The remaining $30.0 million is only available in U.S. dollars to Darling. The revolving credit facility will mature on September 18, 2025. The revolving credit facility will be used for working capital needs, general corporate purposes and other purposes not prohibited by the Amended Credit Agreement.

The interest rate applicable to any borrowings under the revolving credit facility will equal either LIBOR/euro interbank offered rate/CDOR plus 1.50% per annum or base rate/Canadian prime rate plus 0.50% per annum, subject to certain step-ups or step-downs based on the Company's total leverage ratio. The interest rate applicable to any borrowings under the term loan B facility will equal the base rate plus 1.00% or LIBOR plus 2.00%.

As of April 3, 2021, the Company had $27.0 million outstanding under the revolver at base rate plus a margin of 0.50% per annum for a total of 3.75% per annum and $42.0 million outstanding under the revolver at LIBOR plus a margin of 1.50% per annum for a total of 1.616% per annum. The Company had $250.0 million outstanding under the term loan B facility at LIBOR plus a margin of 2.00% per annum for a total of 2.12% per annum. As of April 3, 2021, the Company had availability of $879.9 million under the Amended Credit Agreement taking into account amounts borrowed, ancillary facilities and letters of credit issued of $3.8 million. The Company also has foreign bank guarantees that are not part of the Company's Amended Credit Agreement in the amount of approximately $11.7 million at April 3, 2021.

3.625% Senior Notes due 2026. On May 2, 2018, Darling Global Finance B.V. issued and sold €515.0 million aggregate principal amount of 3.625% Senior Notes due 2026 (the “3.625% Notes”). The 3.625% Notes, which were offered in a private offering, were issued pursuant to a Senior Notes Indenture, dated as of May 2, 2018 (the “3.625% Indenture”), among Darling Global Finance B.V., Darling, the subsidiary guarantors party thereto from time to time, Citibank, N.A., London Branch, as trustee and principal paying agent, and Citigroup Global Markets Deutschland AG, as principal registrar. The 3.625% Notes are guaranteed on a senior unsecured basis by Darling and all of Darling's restricted subsidiaries (other than any foreign subsidiary or any receivable entity) that guarantee the Senior Secured Credit Facilities.

5.25% Senior Notes due 2027. On April 3, 2019, Darling issued and sold $500.0 million aggregate principal amount of 5.25% Senior Notes due 2027 (the “5.25% Notes”). The 5.25% Notes, which were offered in a private offering, were issued pursuant to a Senior Notes Indenture, dated as of April 3, 2019 (the “5.25% Indenture”), among Darling, the subsidiary guarantors party thereto from time to time, and Regions Bank, as trustee. The 5.25% Notes are guaranteed on a senior unsecured basis by Darling and all of Darling's restricted subsidiaries (other than foreign subsidiaries).

As of April 3, 2021, the Company believes it is in compliance with all of the financial covenants under the Amended Credit Agreement, as well as all of the other covenants contained in the Amended Credit Agreement, the 5.25% Indenture and the 3.625% Indenture.

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Income Taxes

3 Months Ended

Apr. 03, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company has provided income taxes for the three month periods ended April 3, 2021 and March 28, 2020, based on its estimate of the effective tax rate for the entire 2021 and 2020 fiscal years. The Company’s estimated annual effective tax rate is based on forecasts of income by jurisdiction, permanent differences between book and tax income, the relative proportion of income and losses by jurisdiction, and statutory income tax rates. Discrete events such as the assessment of the ultimate outcome of tax audits, audit settlements, recognizing previously unrecognized tax benefits due to the lapsing of statutes of limitation, recognizing or derecognizing deferred tax assets due to projections of income or loss and changes in tax laws are recognized in the period in which they occur.

Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company expects to have access to its offshore earnings with no material U.S. tax impact. Therefore, the Company does not consider earnings from its foreign subsidiaries to be permanently reinvested offshore.

The Company periodically assesses whether it is more likely than not that it will generate sufficient taxable income to realize its deferred income tax assets.  In making this determination, the Company considers all available positive and negative evidence and makes certain assumptions.  The Company considers, among other things, its deferred tax liabilities, the overall business environment, its historical earnings and losses, current industry trends and its outlook for future years.

Unrecognized tax benefits represent the difference between tax positions taken or expected to be taken in a tax return and the benefits recognized for financial statement purposes. As of April 3, 2021, the Company had $5.6 million of gross unrecognized tax benefits and $0.4 million of related accrued interest and penalties. It is reasonably possible within the next twelve months that the Company's gross unrecognized tax benefits may decrease by up to $0.2 million, excluding interest and penalties. The possible change in unrecognized tax benefits relates to the expiration of certain statutes of limitation.

The Company’s major taxing jurisdictions include the United States (federal and state), Canada, the Netherlands, Belgium, Brazil, Germany, France and China. The Company is subject to regular examination by various tax authorities and although the final outcome of these examinations is not yet determinable, the Company does not anticipate that any of the examinations will have a significant impact on the Company's results of operations or financial position. The statute of limitations for the Company’s major tax jurisdictions is open for varying periods, but is generally closed through the 2013 tax year.

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Other Comprehensive Income

3 Months Ended

Apr. 03, 2021

Equity [Abstract]

Other Comprehensive Income

Other Comprehensive Income/(Loss)

The Company follows Financial Accounting Standards Board (“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, soybean meal adjustments, corn option adjustments, foreign exchange forward adjustments, heating oil swap adjustments and foreign currency translation adjustments.

In the first three months of fiscal 2021 and fiscal 2020, 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 as required by FASB ASC Topic 323.

The components of other comprehensive income/(loss) and the related tax impacts for the three months ended April 3, 2021 and March 28, 2020 are as follows (in thousands):

	Three Months Ended
	Before-Tax				Tax (Expense)				Net-of-Tax
	Amount				or Benefit				Amount
	April 3, 2021		March 28, 2020		April 3, 2021		March 28, 2020		April 3, 2021		March 28, 2020
Defined benefit pension plans
Amortization of prior service (cost)/benefit	$	5	$	8	$	(1)	$	(2)	$	4	$	6
Amortization of actuarial loss	1,052		854		(264)		(212)		788		642
Total defined benefit pension plans	1,057		862		(265)		(214)		792		648
Soybean meal option derivatives
Reclassified to earnings	(280)		—		71		—		(209)		—
Activity recognized in other comprehensive income/(loss)	(64)		—		16		—		(48)		—
Total soybean meal option derivatives	(344)		—		87		—		(257)		—
Corn option derivatives
Reclassified to earnings	3,920		300		(996)		(75)		2,924		225
Activity recognized in other comprehensive income/(loss)	(4,993)		(119)		1,269		30		(3,724)		(89)
Total corn option derivatives	(1,073)		181		273		(45)		(800)		136
Heating oil derivatives
Activity recognized in other comprehensive income/(loss)	4,644		14,494		(1,180)		(3,624)		3,464		10,870
Total heating oil derivatives	4,644		14,494		(1,180)		(3,624)		3,464		10,870
Foreign exchange derivatives
Reclassified to earnings	224		(412)		(75)		129		149		(283)
Activity recognized in other comprehensive income/(loss)	(10,457)		(12,920)		3,502		4,052		(6,955)		(8,868)
Total foreign exchange derivatives	(10,233)		(13,332)		3,427		4,181		(6,806)		(9,151)
Foreign currency translation	(39,737)		(65,887)		1,515		651		(38,222)		(65,236)
Other comprehensive income/(loss)	$	(45,686)	$	(63,682)	$	3,857	$	949	$	(41,829)	$	(62,733)

The following table presents the amounts reclassified out of each component of other comprehensive income/(loss), net of tax for the three months ended April 3, 2021 and March 28, 2020 as follows (in thousands):

	Three Months Ended
	April 3, 2021		March 28, 2020		Statement of Operations Classification
Derivative instruments
Soybean meal derivatives	$	280	$	—	Net sales
Foreign exchange contracts	(224)		412		Net sales
Corn option derivatives	(3,920)		(300)		Cost of sales and operating expenses
	(3,864)		112		Total before tax
	1,000		(54)		Income taxes
	(2,864)		58		Net of tax
Defined benefit pension plans
Amortization of prior service cost	$	(5)	$	(8)	(a)
Amortization of actuarial loss	(1,052)		(854)		(a)
	(1,057)		(862)		Total before tax
	265		214		Income taxes
	(792)		(648)		Net of tax
Total reclassifications	$	(3,656)	$	(590)	Net of tax

(a)These items are included in the computation of net periodic pension cost. See Note 13 (Employee Benefit Plans) to the Company's Consolidated Financial Statement included herein for additional information.

The following table presents changes in each component of accumulated other comprehensive income/(loss) as of April 3, 2021 as follows (in thousands):

	Three Months Ended April 3, 2021
	Foreign Currency		Derivative		Defined Benefit
	Translation		Instruments		Pension Plans		Total
Accumulated Other Comprehensive loss January 2, 2021, attributable to Darling, net of tax	$	(210,902)	$	(3,214)	$	(38,317)	$	(252,433)
Other comprehensive loss before reclassifications	(38,222)		(7,263)		—		(45,485)
Amounts reclassified from accumulated other comprehensive loss	—		2,864		792		3,656
Net current-period other comprehensive income/(loss)	(38,222)		(4,399)		792		(41,829)
Noncontrolling interest	1,534		—		—		1,534
Accumulated Other Comprehensive loss April 3, 2021, attributable to Darling, net of tax	(250,658)		$	(7,613)	$	(37,525)	$	(295,796)

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Stockholders' Equity	3 Months Ended
	Apr. 03, 2021
Equity [Abstract]
Stockholders' Equity	Stockholders' EquityFiscal 2021 Long-Term Incentive Opportunity Awards (2021 LTIP). On January 4, 2021, the Compensation Committee (the “Committee”) of the Company's Board of Directors adopted the 2021 LTIP pursuant to which they awarded certain of the Company's key employees, 90,689 restricted stock units and 126,711 performance share units (the “PSUs”) under the Company's 2017 Omnibus Incentive Plan. The restricted stock units vest 33.33% on the first, second and third anniversaries of the grant date. The PSUs are tied to a three-year forward-looking performance period and will be earned based on the Company's average return on capital employed (“ROCE”), as calculated in accordance with the terms of the award agreement, relative to the average ROCE of the Company's performance peer group companies, with the earned award to be determined in the first quarter of fiscal 2024, after the final results for the relevant performance period are determined. The PSUs were granted at a target of 100%, but each PSU will reduce or increase depending on the Company's ROCE relative to that of the performance peer group companies and is also subject to the application of a total shareholder return (“TSR”) cap/collar modifier depending on the Company's TSR during the performance period relative to that of the performance peer group companies.On August 3, 2020, the Company’s Board of Directors approved the extension for an additional two years of its previously announced share repurchase program and refreshed the amount of the program back up to its original amount of an aggregate of $200.0 million of the Company's Common Stock depending on market conditions. As of April 3, 2021, the Company had approximately $200.0 million remaining under the share repurchase program initially approved in August 2017 and subsequently extended to August 13, 2022. During the first quarter of fiscal 2021, no common stock was repurchased under the repurchase program.

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Employee Benefit Plans

3 Months Ended

Apr. 03, 2021

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

The Company has retirement and pension plans covering a substantial number of its domestic and foreign employees.  Most retirement benefits are provided by the Company under separate final-pay noncontributory and contributory defined benefit and defined contribution plans for all salaried and hourly employees (excluding those covered by union-sponsored plans) who meet service and age requirements. Although various defined benefit formulas exist for employees, generally these are based on length of service and earnings patterns during employment. Effective January 1, 2012, the Company's Board of Directors authorized the Company to proceed with the restructuring of its domestic retirement benefit program to include the closing of Darling's salaried and hourly defined benefit plans to new participants as well as the freezing of service and wage accruals thereunder effective December 31, 2011 (a curtailment of these plans for financial reporting purposes) and the enhancing of benefits under the Company's domestic defined contribution plans. The Company-sponsored domestic hourly union plan has not been curtailed; however, several locations of the Company-sponsored domestic hourly union plan have been curtailed as a result of collective bargaining renewals for those sites.

Net pension cost for the three months ended April 3, 2021 and March 28, 2020 includes the following components (in thousands):

	Pension Benefits
	Three Months Ended
	April 3, 2021		March 28, 2020
Service cost	$	785	$	755
Interest cost	1,204		1,428
Expected return on plan assets	(2,321)		(2,039)
Amortization of prior service cost	5		8
Amortization of actuarial loss	1,052		854
Net pension cost	$	725	$	1,006

The Company's funding policy for employee benefit pension plans is to contribute annually not less than the minimum amount required nor more than the maximum amount that can be deducted for federal and foreign income tax purposes.  Contributions are intended to provide not only for benefits attributed to service to date, but also for those expected to be earned in the future. Based on actuarial estimates at April 3, 2021, the Company expects to contribute approximately $3.8 million to its pension plans to meet funding requirements during the next twelve months. Additionally, the Company has made tax deductible discretionary and required contributions to its pension plans for the three months ended April 3, 2021 and March 28, 2020 of approximately $0.9 million and $0.8 million, respectively.  

The Company participates in various multiemployer pension plans which provide defined benefits to certain employees covered by labor contracts.  These plans are not administered by the Company and contributions are determined in accordance with provisions of negotiated labor contracts to meet their pension benefit obligations to their participants. The Company's contributions to each multiemployer plan represent less than 5% of the total contributions to each plan. Based on the most currently available information, the Company has determined that, if a withdrawal were to occur, withdrawal liabilities on two of the plans in which the Company currently participates could be material to the Company, with one of these material plans certified as critical or red zone. With respect to the other multiemployer pension plans in which the Company participates and which are not individually significant, five plans have certified as critical or red zone and two plans have certified as endangered or yellow zone as defined by the Pension Protection Act of 2006.

The Company currently has withdrawal liabilities recorded on four U.S. multiemployer plans in which it participated. During the first quarter of fiscal 2021, the Company was notified by one of these multiemployer plans that the Company's withdrawal liability has increased and as a result the Company recorded an additional liability of approximately $1.3 million. As of April 3, 2021, the Company has an aggregate accrued liability of approximately $4.0 million representing the present value of scheduled withdrawal liability payments on the multiemployer plans that have given notice of withdrawal. While the Company has no ability to calculate a possible current liability for under-funded multiemployer plans that could terminate or could require additional funding under the Pension Protection Act of 2006, the amounts could be material.

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Derivatives

3 Months Ended

Apr. 03, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Derivatives

The Company’s operations are exposed to market risks relating to commodity prices that affect the Company’s cost of raw materials, finished product prices and energy costs and the risk of changes in interest rates and foreign currency exchange rates.

The Company makes limited use of derivative instruments to manage cash flow risks related to natural gas usage, diesel fuel usage, inventory, forecasted sales and foreign currency exchange rates. The Company does not use derivative instruments for trading purposes.  Natural gas swaps and options are entered into with the intent of managing the overall cost of natural gas usage by reducing the potential impact of seasonal weather demands on natural gas that increases natural gas prices.  Heating oil swaps and options are entered into with the intent of managing the overall cost of diesel fuel usage by reducing the potential impact of seasonal weather demands on diesel fuel that increases diesel fuel prices.  Soybean meal options are entered into with the intent of managing the impact of changing prices for poultry meal sales. Corn options and future contracts are entered into with the intent of managing U.S. forecasted sales of bakery by-products (“BBP”) by reducing the impact of changing prices.  Foreign currency forward and option contracts are entered into to mitigate the foreign exchange rate risk for transactions designated in a currency other than the local functional currency. At April 3, 2021, the Company had corn option contracts, soybean meal forward contracts and foreign exchange forward and option contracts outstanding that qualified and were

designated for hedge accounting as well as corn forward contracts and foreign currency forward contracts that did not qualify and were not designated for hedge accounting.

Entities are required to report all derivative instruments in the statement of financial position at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, on the reason for holding the instrument. If certain conditions are met, entities may elect to designate a derivative instrument as a hedge of exposures to changes in fair value, cash flows or foreign currencies. If the hedged exposure is a cash flow exposure, the gain or loss on the derivative instrument is reported initially as a component of other comprehensive income (outside of earnings) and is subsequently reclassified into earnings when the forecasted transaction affects earnings. Any amounts excluded from the assessment of hedge effectiveness are reported in earnings immediately. If the derivative instrument is not designated as a hedge, the gain or loss is recognized in earnings in the period of change.

Cash Flow Hedges

In fiscal 2020 and fiscal 2021, the Company entered into corn option contracts on the Chicago Board of Trade that are designated as cash flow hedges. Under the terms of the corn option contracts, the Company hedged a portion of its U.S. forecasted sales of BBP into the fourth quarter of fiscal 2021. At April 3, 2021 and January 2, 2021, the aggregate fair value of these corn option contracts was approximately $8.0 million and $6.8 million, respectively. These amounts are included in accrued expenses on the balance sheet, with an offset recorded in accumulated other comprehensive loss. The Company may enter into corn option contracts in the future from time to time.

In fiscal 2020 and fiscal 2021, the Company entered into foreign exchange forward and option contracts that are designated as cash flow hedges. Under the terms of the foreign exchange contracts, the Company hedged a portion of its forecasted collagen sales in currencies other than the functional currency through the fourth quarter of fiscal 2022. At April 3, 2021 and January 2, 2021, the aggregate fair value of these foreign exchange contracts was approximately $0.4 million and $11.6 million, respectively. These amounts are included in other current assets, accrued expense and noncurrent assets on the balance sheet, with an offset recorded in accumulated other comprehensive loss.

In fiscal 2020 and fiscal 2021, the Company entered into soybean meal forward contracts to hedge a portion of its forecasted poultry meal sales into the second quarter of fiscal 2021. As of April 3, 2021 and January 2, 2021, the aggregate fair value of the soybean meal contracts was $0.1 million and $0.4 million, respectively. These amounts are included in other current assets on the balance sheet, with an offset recorded in accumulated other comprehensive loss.

As of April 3, 2021, the Company had the following designated and non-designated outstanding forward and option contract amounts that were entered into to hedge foreign currency transactions in currencies other than the functional currency and forecasted transactions in currencies other than the functional currency (in thousands):

Functional Currency		Contract Currency
Type	Amount	Type	Amount
Brazilian real	49,335	Euro	7,305
Brazilian real	1,103,561	U.S. dollar	241,320
Euro	35,967	U.S. dollar	42,810
Euro	43,119	Polish zloty	198,500
Euro	6,293	Japanese yen	808,776
Euro	16,176	Chinese renminbi	126,124
Euro	42,340	Australian dollar	65,550
Euro	3,048	British pound	2,600
Euro	32	Canadian dollar	50
Polish zloty	1,031	U.S. dollar	262
Polish zloty	24,116	Euro	5,195
British pound	176	Euro	207
Japanese yen	231,803	U.S. dollar	2,159
U.S. dollar	100	Japanese yen	11,000
U.S. dollar	165,311	Euro	140,000

The Company estimates the amount that will be reclassified from accumulated other comprehensive loss at April 3, 2021 into earnings over the next 12 months will be approximately $10.0 million. As of April 3, 2021, no amounts have been reclassified into earnings as a result of the discontinuance of cash flow hedges.

The table below summarizes the effect of derivatives not designated as hedges on the Company's consolidated statements of operations for the three months ended April 3, 2021 and March 28, 2020 (in thousands):

		Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges
		Three Months Ended
Derivatives not designated as hedging instruments	Location	April 3, 2021		March 28, 2020
Foreign exchange	Foreign currency loss	$	5,389	$	(1,295)
Foreign exchange	Net sales	729		730
Foreign exchange	Cost of sales and operating expenses	(444)		(887)
Foreign exchange	Selling, general and administrative expense	2,531		5,724
Corn options and futures	Net sales	(998)		855
Corn options and futures	Cost of sales and operating expenses	1,469		(1,841)
Total		$	8,676	$	3,286

At April 3, 2021, the Company had forward purchase agreements in place for purchases of approximately $71.9 million of natural gas and diesel fuel.  The Company intends to take physical delivery of the commodities under the forward purchase agreements and accordingly, these contracts are not subject to the requirements of fair value accounting because they qualify as normal purchases.

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Fair Value Measurement

3 Months Ended

Apr. 03, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

FASB authoritative guidance defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.  The following table presents the Company’s financial instruments that are measured at fair value on a recurring and nonrecurring basis as of April 3, 2021 and are categorized using the fair value hierarchy under FASB authoritative guidance.  The fair value hierarchy has three levels based on the reliability of the inputs used to determine the fair value. 

			Fair Value Measurements at April 3, 2021 Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands of dollars)	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Derivative instruments	$	2,211	$	—	$	2,211	$	—
Total Assets	$	2,211	$	—	$	2,211	$	—
Liabilities:
Derivative instruments	$	10,483	$	—	$	10,483	$	—
5.25% Senior notes	526,650		—		526,650		—
3.625% Senior notes	617,284		—		617,284		—
Term loan B	249,375		—		249,375		—
Revolver debt	68,655		—		68,655		—
Total Liabilities	$	1,472,447	$	—	$	1,472,447	$	—

			Fair Value Measurements at January 2, 2021 Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands of dollars)	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Derivative instruments	$	17,358	$	—	$	17,358	$	—
Total Assets	$	17,358	$	—	$	17,358	$	—
Liabilities:
Derivative instruments	$	9,778	$	—	$	9,778	$	—
5.25% Senior notes	531,300		—		531,300		—
3.625% Senior notes	646,323		—		646,323		—
Term loan B	298,500		—		298,500		—
Revolver debt	54,175		—		54,175		—
Total Liabilities	$	1,540,076	$	—	$	1,540,076	$	—

Derivative assets and liabilities consist of the Company’s corn option and future contracts, foreign currency forward and option contracts and soybean meal forward contracts which represent the difference between observable market rates of commonly quoted intervals for similar assets and liabilities in active markets and the fixed swap rate considering the instruments term, notional amount and credit risk.  See Note 14 (Derivatives) to the Company's Consolidated Financial Statements included herein for discussion on the Company's derivatives.

The carrying amount of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximates fair value due to the short maturity of these instruments and as such have been excluded from the table above. The carrying amount of the Company's other debt is not deemed to be significantly different from the fair value and all other instruments have been recorded at fair value. 

The fair value of the senior notes, term loan B and revolver debt is based on market quotation from third-party banks.

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Restructuring and Asset Impairment Charges	3 Months Ended
	Apr. 03, 2021
Restructuring and Related Activities [Abstract]
Restructuring and Asset Impairment Charges	Restructuring and Asset Impairment Charges In December 2020, due to unfavorable economics in the biodiesel industry, the Company made the decision to shut down processing operations at its biodiesel facilities located in the United States and Canada, and there are no current plans to resume biodiesel production at these facilities in the future. In addition to charges incurred in fiscal 2020, the Company has incurred additional restructuring and asset impairment charges related to the biodiesel facilities of approximately $0.8 million, with approximately $0.4 million of this amount being employee termination costs in Canada and the remainder representing charges to long-lived assets and other charges.

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Contingencies

3 Months Ended

Apr. 03, 2021

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Contingencies 

The Company is a party to various lawsuits, claims and loss contingencies arising in the ordinary course of its business, including insured worker's compensation, auto, and general liability claims, assertions by certain regulatory and governmental agencies related to permitting requirements and environmental matters, including air, wastewater and storm water discharges from the Company’s processing facilities, litigation involving tort, contract, statutory, labor, employment, and other claims, and tax matters.

The Company’s workers compensation, auto and general liability policies contain significant deductibles or self-insured retentions.  The Company estimates and accrues its expected ultimate claim costs related to accidents occurring during each fiscal year under these insurance policies and carries this accrual as a reserve until these claims are paid by the Company.

As a result of the matters discussed above, the Company has established loss reserves for insurance, environmental, litigation and tax contingencies. At April 3, 2021 and January 2, 2021, the reserves for insurance, environmental, litigation and tax contingencies reflected on the balance sheet in accrued expenses and other non-current liabilities were approximately $67.8 million and $66.2 million, respectively.  The Company has insurance recovery receivables of approximately $27.0 million as of April 3, 2021 and January 2, 2021, related to the insurance contingencies. The Company's management believes these reserves for contingencies are reasonable and sufficient based upon present

governmental regulations and information currently available to management; however, there can be no assurance that final costs related to these contingencies will not exceed current estimates. The Company believes that the likelihood is remote that any additional liability from the lawsuits and claims that may not be covered by insurance would have a material effect on the Company's financial position, results of operations or cash flows.

Lower Passaic River Area. In December 2009, the Company, along with numerous other entities, received notice from the United States Environmental Protection Agency (“EPA”) that the Company (as alleged successor-in-interest to The Standard Tallow Corporation) is considered a potentially responsible party (a “PRP”) with respect to alleged contamination in the lower 17-mile area of the Passaic River which is part of the Diamond Alkali Superfund Site located in Newark, New Jersey. The Company’s designation as a PRP is based upon the operation of former plant sites located in Newark and Kearny, New Jersey by The Standard Tallow Corporation, an entity that the Company acquired in 1996. In the letter, EPA requested that the Company join a group of other parties in funding a remedial investigation and feasibility study at the site. As of the date of this report, the Company has not agreed to participate in the funding group. In March 2016, the Company received another letter from EPA notifying the Company that it had issued a Record of Decision (the “ROD”) selecting a remedy for the lower 8.3 miles of the lower Passaic River area at an estimated cost of $1.38 billion. The EPA letter makes no demand on the Company and lays out a framework for remedial design/remedial action implementation in which the EPA will first seek funding from major PRPs. The letter indicates that the EPA has sent the letter to over 100 parties, which include large chemical and refining companies, manufacturing companies, foundries, plastic companies, pharmaceutical companies and food and consumer product companies. The EPA has already offered early cash out settlements to 20 of the other PRPs and has stated that other parties who did not discharge any of the eight contaminants of concern identified in the ROD (the “COCs”) may also be eligible for cash out settlements and conducted a settlement analysis using a third-party allocator. The Company participated in this allocation process as it asserts that it is not responsible for any liabilities of its former subsidiary The Standard Tallow Corporation, which was legally dissolved in 2000, and that, in any event, The Standard Tallow Corporation did not discharge any of the COCs. In November 2019, the Company received a cash out settlement offer from the EPA in the amount of $0.6 million ($0.3 million for each of the former plant sites in question) for liabilities relating to the lower 8.3 miles of the lower Passaic River area. The Company accepted this settlement offer, and the settlement became effective on April 16, 2021 following the completion of the EPA's administrative approval process. On September 30, 2016, Occidental Chemical Corporation (“OCC”) entered into an agreement with the EPA to perform the remedial design for the cleanup plan for the lower 8.3 miles of the Passaic River. On June 30, 2018, OCC filed a complaint in the United States District Court for the District of New Jersey against over 100 companies, including the Company, seeking cost recovery or contribution for costs under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) relating to various investigations and cleanups OCC has conducted or is conducting in connection with the Passaic River. According to the complaint, OCC has incurred or is incurring costs which include the estimated cost to complete the remedial design for the cleanup plan for the lower 8.3 miles of the Passaic River. OCC is also seeking a declaratory judgment to hold the defendants liable for their proper shares of future response costs, including the remedial action for the lower 8.3 miles of the Passaic River. The Company, along with 40 of the other defendants, had previously received a release from OCC of its CERCLA contribution claim of $165 million associated with the costs to design the remedy for the lower 8.3 miles of the Passaic River. Furthermore, the Company's settlement with the EPA described above could preclude certain of the claims alleged by OCC against the Company. The Company's ultimate liability, if any, for investigatory costs, remedial costs and/or natural resource damages in connection with the lower Passaic River area cannot be determined at this time; however, as of the date of this report, the Company has found no definitive evidence that the former Standard Tallow Corporation plant sites contributed any of the COCs to the Passaic River and, therefore, there is nothing that leads the Company to believe that this matter will have a material effect on the Company's financial position, results of operations or cash flows.

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Business Segments

3 Months Ended

Apr. 03, 2021

Segment Reporting [Abstract]

Business Segments

Business Segments

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

Included in corporate activities are general corporate expenses and the amortization of certain 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
Three Months Ended April 3, 2021
Net Sales	$	651,444	$	298,065	$	97,207	$	—	$	1,046,716
Cost of sales and operating expenses	474,581		226,413		71,790		—		772,784
Gross Margin	176,863		71,652		25,417		—		273,932
Loss/(gain) on sale of assets	(139)		55		20		—		(64)
Selling, general and administrative expense	52,620		25,191		4,867		14,720		97,398
Restructuring and asset impairment charges	—		—		778		—		778
Depreciation and amortization	54,609		14,883		6,155		2,887		78,534
Equity in net income of Diamond Green Diesel	—		—		102,225		—		102,225
Segment operating income/(loss)	69,773		31,523		115,822		(17,607)		199,511
Equity in net income of other unconsolidated subsidiaries	612		—		—		—		612
Segment income/(loss)	70,385		31,523		115,822		(17,607)		200,123
Total other expense									(17,997)
Income before income taxes									$	182,126
Segment assets at April 3, 2021	$	2,708,035	$	1,235,547	$	1,229,461	$	418,404	$	5,591,447

	Feed Ingredients		Food Ingredients		Fuel Ingredients		Corporate		Total
Three Months Ended March 28, 2020
Net Sales	$	512,625	$	270,294	$	69,923	$	—	$	852,842
Cost of sales and operating expenses	388,453		205,430		53,025		—		646,908
Gross Margin	124,172		64,864		16,898		—		205,934
Loss on sale of assets	50		2		9		—		61
Selling, general and administrative expense	53,947		25,476		1,654		15,116		96,193
Depreciation and amortization	53,521		20,305		8,092		2,753		84,671
Equity in net income of Diamond Green Diesel	—		—		97,820		—		97,820
Segment operating income/(loss)	16,654		19,081		104,963		(17,869)		122,829
Equity in net income of other unconsolidated subsidiaries	869		—		—		—		869
Segment income/(loss)	17,523		19,081		104,963		(17,869)		123,698
Total other expense									(19,307)
Income before income taxes									$	104,391
Segment assets at January 2, 2021	$	2,708,922	$	1,335,769	$	1,160,132	$	408,508	$	5,613,331

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Revenue (Notes)

3 Months Ended

Apr. 03, 2021

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

The Company extends payment terms to its customers based on commercially acceptable practices. The term between invoicing and payment due date is not significant. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring finished products or performing services, which is generally based on an executed agreement or purchase order.

Most of the Company's products are shipped based on the customer specifications. Customer returns are infrequent and not material to the Company. Adjustments to net sales for sales deductions are generally recognized in the same period as the sale or when known. Customers in certain industries or countries may be required to prepay prior to shipment in order to maintain payment protection. These represent short-term prepayment from customers and are not material to the Company. The Company elected to treat shipping and handling as fulfilment costs, which will result in billed freight recorded in cost of sales and netted against freight costs. Sales, value-add, and other taxes collected concurrently with revenue-producing activities are excluded from revenue and booked on a net basis.

The following tables present the Company revenues disaggregated by geographic area and major product types by reportable segment for the three months ended April 3, 2021 and March 28, 2020 (in thousands):

	Three Months Ended April 3, 2021
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	549,015	$	60,940	$	3,350	$	613,305
Europe	97,645		155,363		93,857		346,865
China	1,938		57,932		—		59,870
South America	—		10,454		—		10,454
Other	2,846		13,376		—		16,222
Net sales	$	651,444	$	298,065	$	97,207	$	1,046,716
Major product types
Fats	$	229,006	$	41,433	$	—	$	270,439
Used cooking oil	51,029		—		—		51,029
Proteins	255,507		—		—		255,507
Bakery	63,105		—		—		63,105
Other rendering	42,957		—		—		42,957
Food ingredients	—		229,542		—		229,542
Bioenergy	—		—		93,857		93,857
Biofuels	—		—		3,350		3,350
Other	9,840		27,090		—		36,930
Net sales	$	651,444	$	298,065	$	97,207	$	1,046,716

	Three Months Ended March 28, 2020
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	427,463	$	46,415	$	5,400	$	479,278
Europe	80,443		158,587		64,523		303,553
China	2,423		39,956		—		42,379
South America	—		10,586		—		10,586
Other	2,296		14,750		—		17,046
Net sales	$	512,625	$	270,294	$	69,923	$	852,842
Major product types
Fats	$	163,284	$	33,476	$	—	$	196,760
Used cooking oil	47,608		—		—		47,608
Proteins	195,980		—		—		195,980
Bakery	47,101		—		—		47,101
Other rendering	47,164		—		—		47,164
Food ingredients	—		214,793		—		214,793
Bioenergy	—		—		64,523		64,523
Biofuels	—		—		5,400		5,400
Other	11,488		22,025		—		33,513
Net sales	$	512,625	$	270,294	$	69,923	$	852,842

Revenue from Contracts with Customers

The Company has two primary revenue streams. Finished product revenues are recognized when control of the promised finished product is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the finished product. Service revenues are recognized in net sales when the service occurs.

Fats and Proteins. Fats and Proteins include the Company's global activities related to the collection and processing of beef, poultry and pork animal by-products into finished products of non-food grade oils, food grade fats and protein meal. Fats and proteins net sales are recognized when the Company ships the finished product to the customer and control has been transferred.

Used Cooking Oil. Used cooking oil includes collection and processing of used cooking oil into finished products of non-food grade fats. Used cooking oil net sales are recognized when the Company ships the finished product to the customer and control has been transferred.

Bakery. Bakery includes collection and processing of bakery residuals into finished product including Cookie Meal®, an animal feed ingredient primarily used in poultry and swine rations. Bakery net sales are recognized when the Company ships the finished product to the customer and control has been transferred.

Other Rendering. Other rendering include hides, pet food products, and service charges. Hides and pet food net sales are recognized when the Company ships the finished product to the customer and control has been transferred. Service revenues are recognized in net sales when the service has occurred.

Food Ingredients. Food ingredients includes collection and processing of pigskin, hide, bone and fish into finished product. It also includes harvesting, sorting and selling of hog and sheep casings as well as harvesting, purchasing and processing of hog, sheep and beef meat for pet food industry. Collagen and CTH meat and casings net sales are recognized when the Company ships the finished product to the customer and control has been transferred.

Bioenergy. Bioenergy includes Ecoson, which converts organic sludge and food waste into biogas and Rendac, which collects fallen stock and animal waste for a fee and processes these materials into fats and meals that can only be used as low grade energy or fuel for boilers and cement kilns. Net sales are recognized when the finished product is shipped to the customer and control has been transferred. Service revenues are recognized in net sales when the service has occurred.

Biofuels. Biofuels includes the North American processing of rendered animal fats, recycled cooking oils and third party additives to produce diesel fuel. Biofuel net sales are recognized when the finished product is shipped to the customer and control has been transferred.

Other. Other includes grease trap collection and environmental services to food processors in the Feed Ingredients segment and Sonac Bone and Sonac Heparin in the Food Ingredients segment. Net sales are recognized when the Company ships the finished product to the customer and control has been transferred. Service revenues are recognized in net sales when the service has occurred.

Long-Term Performance Obligations. The Company from time to time enters into long-term contracts to supply certain volumes of finished products to certain customers. Revenue recognized to date in 2021 under these long-term supply contracts was approximately $15.0 million, with the remaining performance obligations to be recognized in future periods (generally 2 years) of approximately $154.7 million.

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Related Party Transactions

3 Months Ended

Apr. 03, 2021

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Raw Material Agreement

The Company entered into a Raw Material Agreement with the DGD Joint Venture in May 2011 pursuant to which the Company will offer to supply certain animal fats and used cooking oil at market prices, but the DGD Joint Venture is not obligated to purchase the raw material offered by the Company. Additionally, the Company may offer other feedstocks to the DGD Joint Venture, such as inedible corn oil, purchased on a resale basis. For the three months ended April 3, 2021 and March 28, 2020, the Company has recorded sales to the DGD Joint Venture of approximately $89.0 million and $62.1 million, respectively. At April 3, 2021 and January 2, 2021, the Company has $12.6 million and $14.2 million in outstanding receivables due from the DGD Joint Venture, respectively. In addition, the Company has eliminated approximately $14.6 million and $5.7 million of additional sales for the three months ended April 3, 2021 and March 28, 2020, respectively to defer the Company's portion of profit of approximately $4.1 million and $1.0 million on those sales relating to inventory assets remaining on the DGD Joint Venture's balance sheet at April 3, 2021 and March 28, 2020, respectively.

Revolving Loan Agreement

On May 1, 2019, Darling through its wholly owned subsidiary Darling Green Energy LLC, (“Darling Green”), and Diamond Alternative Energy, LLC, a wholly owned subsidiary of Valero (“Diamond Alternative” and together with Darling Green, the “DGD Lenders”), entered into a revolving loan agreement (the “DGD Loan Agreement”) with the DGD Joint Venture. The DGD Lenders have committed to making loans available to the DGD Joint Venture in the

total amount of $50.0 million with each lender committed to $25.0 million of the total commitment. Any borrowings by the DGD Joint Venture under the DGD Loan Agreement are at the applicable annum rate equal to the sum of (a) the LIBO Rate (meaning Reuters BBA Libor Rates Page 3750) on such day plus (b) 2.50%. The DGD Loan Agreement matures on April 29, 2022, unless extended by agreement of the parties. As of April 3, 2021, no amounts are owed to Darling Green under the DGD Loan Agreement.

Guarantee Agreements

In February 2020, in connection with the DGD Joint Venture’s expansion project at its Norco, LA facility, it entered into two agreements (the “IMTT Terminaling Agreements”) with International-Matex Tank Terminals (“IMTT”), pursuant to which the DGD Joint Venture will move raw material and finished product to and from the IMTT terminal facility by pipeline, thereby providing better logistical capabilities.  As a condition to entering into the IMTT Terminaling Agreements, IMTT required that the Company and Valero guarantee their proportionate share, up to $50 million each, of the DGD Joint Venture’s obligations under the IMTT Terminaling Agreements (the “IMTT Guarantee”), subject to the conditions provided for in the IMTT Terminaling Agreements. The Company has not recorded any liability as a result of the IMTT Guarantee, as the Company believes the likelihood of having to make any payments under the IMTT Guarantee is remote.

In April 2021, in connection with the DGD Joint Venture’s expansion project at its Port Arthur, TX facility, it entered into two agreements (the “GTL Terminaling Agreements”) with GT Logistics, LLC (“GTL”), pursuant to which the DGD Joint Venture will move raw material and finished product to and from the GTL terminal facility by pipeline, thereby providing better logistical capabilities. As a condition to entering into the GTL Terminaling Agreements, GLT required that the Company and Valero guarantee their proportionate share, up to a maximum of approximately $160.0 million each, of the DGD Joint Venture’s obligations under the GTL Terminaling Agreements (the “GTL Guarantee”), subject to the conditions provided for in the GTL Terminaling Agreements. The maximum amount of the GTL Guarantee is reduced over the 20-year initial term of the GTL Terminaling Agreements as the termination fee under such agreements declines. The Company has not recorded any liability as a result of the GTL Guarantee, as the Company believes the likelihood of having to make any payments under the GTL Guarantee is remote.

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New Accounting Pronouncements	3 Months Ended
	Apr. 03, 2021
New Accounting Pronouncements [Abstract]
New Accounting Pronouncements	New Accounting PronouncementsIn December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes. This ASU amends Topic 740 Income Taxes, which eliminates certain exceptions in accounting for income taxes, improves consistency in application and clarifies existing guidance. The standard is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The adoption of this ASU in the first quarter of fiscal 2021 did not have a material impact on the Company's consolidated financial statements.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Apr. 03, 2021

Accounting Policies [Abstract]

Basis of Presentation

Basis of PresentationThe consolidated financial statements include the accounts of Darling and its consolidated subsidiaries. Noncontrolling interests represent the outstanding ownership interest in the Company's consolidated subsidiaries that are not owned by the Company. In the accompanying Consolidated Statements of Operations, the noncontrolling interest in net income of the consolidated subsidiaries is shown as an allocation of the Company's net income and is presented separately as “Net income attributable to noncontrolling interests.” In the Company's Consolidated Balance Sheets, noncontrolling interests represent the ownership interests in the Company consolidated subsidiaries' net assets held by parties other than the Company. These ownership interests are presented separately as “Noncontrolling interests” within “Stockholders' Equity.” All intercompany balances and transactions have been eliminated in consolidation.

Fiscal Periods

Fiscal PeriodsThe Company has a 52/53 week fiscal year ending on the Saturday nearest December 31.  Fiscal periods for the consolidated financial statements included herein are as of April 3, 2021, and include the 13 weeks ended April 3, 2021, and the 13 weeks ended March 28, 2020.

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted CashThe Company considers all short-term highly liquid instruments, with an original maturity of three months or less, to be cash equivalents. Cash balances are recorded net of book overdrafts when a bank right-of-offset exists. All other book overdrafts are recorded in accounts payable and the change in the related balance is reflected in operating activities on the Consolidated Statement of Cash Flows. In addition, the Company has bank overdrafts, which are considered a form of short-term financing with changes in the related balance reflected in financing activities in the Consolidated Statement of Cash Flows.

Accounts Receivable and Allowance for Doubtful Accounts

Accounts Receivable and Allowance for Doubtful AccountsThe Company maintains allowances for doubtful accounts for estimated losses resulting from customers’ non-payment of trade accounts receivable owed to the Company.  These trade receivables arise in the ordinary course of business from sales of finished product or services to the Company’s customers.  The estimate of allowance for doubtful accounts is based upon the Company’s bad debt experience adjusted for differences in asset-specific risk characteristic, current economic conditions, and forecasts of future economic conditions.  If the financial condition of the Company’s customers deteriorates, resulting in the customers’ inability to pay the Company’s receivables as they come due, additional allowances for doubtful accounts may be required.

Revenue Recognition

Revenue RecognitionThe Company recognizes revenue on sales when control of the promised finished product is transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for the finished product. Service revenues are recognized when the service occurs.  Certain customers may be required to prepay prior to shipment in order to maintain payment protection related to certain foreign and domestic sales.  These amounts are recorded as unearned revenue and recognized when control of the promised finished product is transferred to the Company's customer.

Income Taxes

The Company has provided income taxes for the three month periods ended April 3, 2021 and March 28, 2020, based on its estimate of the effective tax rate for the entire 2021 and 2020 fiscal years. The Company’s estimated annual effective tax rate is based on forecasts of income by jurisdiction, permanent differences between book and tax income, the relative proportion of income and losses by jurisdiction, and statutory income tax rates. Discrete events such as the assessment of the ultimate outcome of tax audits, audit settlements, recognizing previously unrecognized tax benefits due to the lapsing of statutes of limitation, recognizing or derecognizing deferred tax assets due to projections of income or loss and changes in tax laws are recognized in the period in which they occur.

Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company expects to have access to its offshore earnings with no material U.S. tax impact. Therefore, the Company does not consider earnings from its foreign subsidiaries to be permanently reinvested offshore.

The Company periodically assesses whether it is more likely than not that it will generate sufficient taxable income to realize its deferred income tax assets.  In making this determination, the Company considers all available positive and negative evidence and makes certain assumptions.  The Company considers, among other things, its deferred tax liabilities, the overall business environment, its historical earnings and losses, current industry trends and its outlook for future years.

Foreign Currency Translation and Remeasurement

Foreign Currency Translation and RemeasurementForeign currency translation is included as a component of accumulated other comprehensive loss and reflects the adjustments resulting from translating the foreign currency denominated financial statements of foreign subsidiaries into U.S. dollars. The functional currency of the Company's foreign subsidiaries is the currency of the primary economic environment in which the entity operates, which is generally the local currency of the country. Accordingly, assets and liabilities of the foreign subsidiaries are translated into U.S. dollars at fiscal period end exchange rates, including intercompany foreign currency transactions that are of long-term investment nature. Income and expense items are translated at average exchange rates occurring during the period. Changes in exchange rates that affect cash flows and the related receivables or payables are recognized as transaction gains/(losses) in determining net income.

Leases

Leases

The Company accounts for leases in accordance with Accounting Standard Codification (“ASC”) Topic 842, leases. The Company determines if an arrangement is a lease at inception for which the Company recognizes the right-of-use (“ROU”) asset and a lease liability at the lease commencement date. For operating leases, the lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. In determining the lease liability, the Company applies a discount rate to the minimum lease payments within each lease. ASC 842 requires the Company to use the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. To estimate the Company's incremental borrowing rate over various terms, a comparable market yield curve consistent with the Company's credit quality is determined. The lease term for all of the Company's leases include the noncancellable period of the lease plus any additional periods covered by either a Company option to extend the lease that the Company is reasonably certain to exercise or when a triggering event occurs. The Company has elected to not recognize a ROU asset and lease liability with an initial term of 12 months or less at lease commencement. Operating leases are included on the Company's balance sheet as a ROU asset, current operating lease liabilities and long-term operating lease liabilities. For finance leases, the lease liability is initially measured in the same manner and date as for the operating leases, and is subsequently measured at amortized cost using the effective interest method. Finance leases are included in property, plant and equipment, current portion of long-term debt and long-term debt, net of current portion, but are not significant to the Company.

The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any direct costs incurred less any

lease incentives received. For operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of the lease incentives received. Some leases payments contain rent escalation clauses (including index-based escalations), initially measured using the index at the lease commencement date. The Company recognizes minimum rental expense on a straight-line basis based on the fixed components of the lease arrangement.

The Company uses the long-lived assets impairment guidance in ASC subtopic 360-10, Property, Plant and Equipment - Overall, to determine whether the ROU asset is impaired, and if so, the amount of the impairment loss to recognize. The Company monitors for events or changes in circumstances that require a reassessment of one of its leases. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding ROU asset unless doing so would reduce the carrying amount of the ROU asset to an amount less than zero. In that case, the amount of the adjustment that would result in a negative ROU asset balance is recorded in the consolidated statement of operations.

Use of Estimates

Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

If it is at least reasonably possible that the estimate of the effect on the financial statements of a condition, situation, or set of circumstances that exist at the date of the financial statements will change in the near term due to one or more future confirming events, and the effect of the change would be material to the financial statements, the Company will disclose the nature of the uncertainty and include an indication that it is at least reasonably possible that a change in the estimate will occur in the near term.  If the estimate involves certain loss contingencies, the disclosure will also include an estimate of the probable loss or range of loss or state that an estimate cannot be made.

Earnings Per Share

Earnings Per ShareBasic income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares including non-vested and restricted shares outstanding during the period.  Diluted income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares outstanding during the period increased by dilutive common equivalent shares determined using the treasury stock method.

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Summary of Significant Accounting Policies (Tables)

3 Months Ended

Apr. 03, 2021

Accounting Policies [Abstract]

Net Income per Common Share

Basic income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares including non-vested and restricted shares outstanding during the period.  Diluted income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares outstanding during the period increased by dilutive common equivalent shares determined using the treasury stock method.

	Net Income per Common Share (in thousands, except per share data)
	Three Months Ended
			April 3, 2021					March 28, 2020
	Income		Shares	Per Share		Income		Shares	Per Share
Basic:
Net Income attributable to Darling	$	151,766	162,925	$	0.93	$	85,510	163,474	$	0.52
Diluted:
Effect of dilutive securities:
Add: Option shares in the money and dilutive effect of non-vested stock awards			5,733					6,749
Less: Pro forma treasury shares			(909)					(2,296)
Diluted:
Net income attributable to Darling	$	151,766	167,749	$	0.90	$	85,510	167,927	$	0.51

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Investment in Unconsolidated Subsidiary (Tables)

3 Months Ended

Apr. 03, 2021

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

Selected financial information for the Company's DGD Joint Venture is as follows (in thousands):

(in thousands)	March 31, 2021		December 31, 2020
Assets:
Total current assets	$	477,840	$	383,557
Property, plant and equipment, net	1,437,905		1,238,726
Other assets	39,171		36,082
Total assets	$	1,954,916	$	1,658,365
Liabilities and members' equity:
Total current portion of long term debt	$	562	$	517
Total other current liabilities	177,594		99,787
Total long term debt	8,702		8,705
Total other long term liabilities	8,722		3,758
Total members' equity	1,759,336		1,545,598
Total liabilities and members' equity	$	1,954,916	$	1,658,365

	Three Months Ended
(in thousands)	March 31, 2021		March 31, 2020
Revenues:
Operating revenues	$	431,633	$	358,615
Expenses:
Total costs and expenses less depreciation, amortization and accretion expense	215,234		151,347
Depreciation, amortization and accretion expense	11,687		11,774
Total costs and expenses	226,921		163,121
Operating income	204,712		195,494
Other income	58		461
Interest and debt expense, net	(320)		(315)
Net income	$	204,450	$	195,640

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Inventories (Tables)

3 Months Ended

Apr. 03, 2021

Inventory Disclosure [Abstract]

Schedule of Inventory

A summary of inventories follows (in thousands):

	April 3, 2021		January 2, 2021
Finished product	$	250,237	$	233,044
Work in process	87,219		87,223
Raw material	35,229		36,746
Supplies and other	47,974		48,909
	$	420,659	$	405,922

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Intangible Assets (Tables)

3 Months Ended

Apr. 03, 2021

Intangible Asset Disclosure Text Block [Abstract]

Schedule of Intangible Assets

The gross carrying amount of intangible assets not subject to amortization and intangible assets subject to amortization

is as follows (in thousands):    

	April 3, 2021		January 2, 2021
Indefinite Lived Intangible Assets
Trade names	$	54,184	$	55,349
	54,184		55,349
Finite Lived Intangible Assets:
Routes	393,937		397,342
Permits	481,959		494,191
Non-compete agreements	645		3,300
Trade names	65,675		65,675
Royalty, consulting, land use rights and leasehold	25,616		25,909
	967,832		986,417
Accumulated Amortization:
Routes	(206,137)		(203,392)
Permits	(314,741)		(315,246)
Non-compete agreements	(355)		(2,981)
Trade names	(41,125)		(39,491)
Royalty, consulting, land use rights and leasehold	(7,119)		(6,976)
	(569,477)		(568,086)
Total Intangible assets, less accumulated amortization	$	452,539	$	473,680

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Goodwill (Tables)

3 Months Ended

Apr. 03, 2021

Intangible Asset Disclosure Text Block [Abstract]

Schedule of Goodwill

Changes in the carrying amount of goodwill (in thousands):

	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Balance at January 2, 2021
Goodwill	$	830,321	$	351,296	$	126,578	$	1,308,195
Accumulated impairment losses	(15,914)		(461)		(31,580)		(47,955)
	814,407		350,835		94,998		1,260,240
Goodwill acquired during year	40		—		161		201
Foreign currency translation	(5,631)		(9,685)		(3,883)		(19,199)
Balance at April 3, 2021
Goodwill	824,730		341,611		122,856		1,289,197
Accumulated impairment losses	(15,914)		(461)		(31,580)		(47,955)
	$	808,816	$	341,150	$	91,276	$	1,241,242

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Accrued Expense (Tables)

3 Months Ended

Apr. 03, 2021

Payables and Accruals [Abstract]

Schedule of Accrued Expenses

Accrued expenses consist of the following (in thousands):

	April 3, 2021		January 2, 2021
Compensation and benefits	$	99,108	$	121,497
Accrued ad valorem, and franchise taxes	15,779		39,167
Accrued operating expenses	67,132		62,601
Other accrued expense	129,352		112,206
	$	311,371	$	335,471

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(Tables)

3 Months Ended

Apr. 03, 2021

Leases [Abstract]

Components of Lease Expense

The components of operating lease expense included in cost of sales and operating expenses and selling, general and administrative expenses were as follows (in thousands):

	Three Months Ended
	April 3, 2021		March 28, 2020
Operating lease expense	$	11,661	$	11,509
Short-term lease costs	6,408		6,245
Total lease cost	$	18,069	$	17,754

Other information (in thousands, except lease terms and discount rates):

	Three Months Ended
	April 3, 2021			March 28, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	14,265		$	12,456
	April 3, 2021			January 2, 2021
Operating right-of-use assets, net	$	145,238		$	146,563
Operating lease liability, current	$	38,064		$	39,459
Operating lease liability, non-current	108,777			109,707
Total operating lease liabilities	$	146,841		$	149,166
Weighted average remaining lease term - operating leases	6.43 years			6.30 years
Weighted average discount rate - operating leases	4.01		%	4.22		%

Maturities of Operating Lease Liabilities

Future annual minimum lease payments and capital lease commitments as of April 3, 2021 are as follows (in thousands):

Period Ending Fiscal	Operating Leases		Capital Leases
2021 (excluding the three months ended April 3, 2021)	$	32,297	$	650
2022	34,591		824
2023	29,567		611
2024	22,759		467
2025	14,118		331
Thereafter	27,721		574
	$	161,053	$	3,457
Less amounts representing interest	$	(14,212)	(134)
Lease obligations included in current and long-term liabilities	$	146,841	$	3,323

Maturities of Financing Lease Liabilities

Future annual minimum lease payments and capital lease commitments as of April 3, 2021 are as follows (in thousands):

Period Ending Fiscal	Operating Leases		Capital Leases
2021 (excluding the three months ended April 3, 2021)	$	32,297	$	650
2022	34,591		824
2023	29,567		611
2024	22,759		467
2025	14,118		331
Thereafter	27,721		574
	$	161,053	$	3,457
Less amounts representing interest	$	(14,212)	(134)
Lease obligations included in current and long-term liabilities	$	146,841	$	3,323

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Debt (Tables)

3 Months Ended

Apr. 03, 2021

Debt Disclosure [Abstract]

Schedule of Debt

Debt consists of the following (in thousands):

	April 3, 2021		January 2, 2021
Amended Credit Agreement:
Revolving Credit Facility	$	69,000	$	55,000
Term Loan B	250,000		300,000
Less unamortized deferred loan costs	(2,979)		(3,798)
Carrying value Term Loan B	247,021		296,202
5.25% Senior Notes due 2027 with effective interest of 5.47%	500,000		500,000
Less unamortized deferred loan costs	(5,553)		(5,747)
Carrying value 5.25% Senior Notes due 2027	494,447		494,253
3.625% Senior Notes due 2026 - Denominated in euro with effective interest of 3.83%	606,310		632,163
Less unamortized deferred loan costs - Denominated in euro	(6,046)		(6,586)
Carrying value 3.625% Senior Notes due 2026	600,264		625,577
Other Notes and Obligations	33,799		37,037
	1,444,531		1,508,069
Less Current Maturities	26,997		27,538
	$	1,417,534	$	1,480,531

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Other Comprehensive Income (Tables)

3 Months Ended

Apr. 03, 2021

Equity [Abstract]

Schedule of Comprehensive Income (Loss)

The components of other comprehensive income/(loss) and the related tax impacts for the three months ended April 3, 2021 and March 28, 2020 are as follows (in thousands):

	Three Months Ended
	Before-Tax				Tax (Expense)				Net-of-Tax
	Amount				or Benefit				Amount
	April 3, 2021		March 28, 2020		April 3, 2021		March 28, 2020		April 3, 2021		March 28, 2020
Defined benefit pension plans
Amortization of prior service (cost)/benefit	$	5	$	8	$	(1)	$	(2)	$	4	$	6
Amortization of actuarial loss	1,052		854		(264)		(212)		788		642
Total defined benefit pension plans	1,057		862		(265)		(214)		792		648
Soybean meal option derivatives
Reclassified to earnings	(280)		—		71		—		(209)		—
Activity recognized in other comprehensive income/(loss)	(64)		—		16		—		(48)		—
Total soybean meal option derivatives	(344)		—		87		—		(257)		—
Corn option derivatives
Reclassified to earnings	3,920		300		(996)		(75)		2,924		225
Activity recognized in other comprehensive income/(loss)	(4,993)		(119)		1,269		30		(3,724)		(89)
Total corn option derivatives	(1,073)		181		273		(45)		(800)		136
Heating oil derivatives
Activity recognized in other comprehensive income/(loss)	4,644		14,494		(1,180)		(3,624)		3,464		10,870
Total heating oil derivatives	4,644		14,494		(1,180)		(3,624)		3,464		10,870
Foreign exchange derivatives
Reclassified to earnings	224		(412)		(75)		129		149		(283)
Activity recognized in other comprehensive income/(loss)	(10,457)		(12,920)		3,502		4,052		(6,955)		(8,868)
Total foreign exchange derivatives	(10,233)		(13,332)		3,427		4,181		(6,806)		(9,151)
Foreign currency translation	(39,737)		(65,887)		1,515		651		(38,222)		(65,236)
Other comprehensive income/(loss)	$	(45,686)	$	(63,682)	$	3,857	$	949	$	(41,829)	$	(62,733)

Reclassification out of Accumulated Other Comprehensive Income (Loss)

The following table presents the amounts reclassified out of each component of other comprehensive income/(loss), net of tax for the three months ended April 3, 2021 and March 28, 2020 as follows (in thousands):

	Three Months Ended
	April 3, 2021		March 28, 2020		Statement of Operations Classification
Derivative instruments
Soybean meal derivatives	$	280	$	—	Net sales
Foreign exchange contracts	(224)		412		Net sales
Corn option derivatives	(3,920)		(300)		Cost of sales and operating expenses
	(3,864)		112		Total before tax
	1,000		(54)		Income taxes
	(2,864)		58		Net of tax
Defined benefit pension plans
Amortization of prior service cost	$	(5)	$	(8)	(a)
Amortization of actuarial loss	(1,052)		(854)		(a)
	(1,057)		(862)		Total before tax
	265		214		Income taxes
	(792)		(648)		Net of tax
Total reclassifications	$	(3,656)	$	(590)	Net of tax

(a)These items are included in the computation of net periodic pension cost. See Note 13 (Employee Benefit Plans) to the Company's Consolidated Financial Statement included herein for additional information.

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table presents changes in each component of accumulated other comprehensive income/(loss) as of April 3, 2021 as follows (in thousands):

	Three Months Ended April 3, 2021
	Foreign Currency		Derivative		Defined Benefit
	Translation		Instruments		Pension Plans		Total
Accumulated Other Comprehensive loss January 2, 2021, attributable to Darling, net of tax	$	(210,902)	$	(3,214)	$	(38,317)	$	(252,433)
Other comprehensive loss before reclassifications	(38,222)		(7,263)		—		(45,485)
Amounts reclassified from accumulated other comprehensive loss	—		2,864		792		3,656
Net current-period other comprehensive income/(loss)	(38,222)		(4,399)		792		(41,829)
Noncontrolling interest	1,534		—		—		1,534
Accumulated Other Comprehensive loss April 3, 2021, attributable to Darling, net of tax	(250,658)		$	(7,613)	$	(37,525)	$	(295,796)

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Employee Benefit Plans (Tables)

3 Months Ended

Apr. 03, 2021

Retirement Benefits [Abstract]

Net pension cost

Net pension cost for the three months ended April 3, 2021 and March 28, 2020 includes the following components (in thousands):

	Pension Benefits
	Three Months Ended
	April 3, 2021		March 28, 2020
Service cost	$	785	$	755
Interest cost	1,204		1,428
Expected return on plan assets	(2,321)		(2,039)
Amortization of prior service cost	5		8
Amortization of actuarial loss	1,052		854
Net pension cost	$	725	$	1,006

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Derivatives (Tables)

3 Months Ended

Apr. 03, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

(in thousands):

Functional Currency		Contract Currency
Type	Amount	Type	Amount
Brazilian real	49,335	Euro	7,305
Brazilian real	1,103,561	U.S. dollar	241,320
Euro	35,967	U.S. dollar	42,810
Euro	43,119	Polish zloty	198,500
Euro	6,293	Japanese yen	808,776
Euro	16,176	Chinese renminbi	126,124
Euro	42,340	Australian dollar	65,550
Euro	3,048	British pound	2,600
Euro	32	Canadian dollar	50
Polish zloty	1,031	U.S. dollar	262
Polish zloty	24,116	Euro	5,195
British pound	176	Euro	207
Japanese yen	231,803	U.S. dollar	2,159
U.S. dollar	100	Japanese yen	11,000
U.S. dollar	165,311	Euro	140,000

Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location

The table below summarizes the effect of derivatives not designated as hedges on the Company's consolidated statements of operations for the three months ended April 3, 2021 and March 28, 2020 (in thousands):

		Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges
		Three Months Ended
Derivatives not designated as hedging instruments	Location	April 3, 2021		March 28, 2020
Foreign exchange	Foreign currency loss	$	5,389	$	(1,295)
Foreign exchange	Net sales	729		730
Foreign exchange	Cost of sales and operating expenses	(444)		(887)
Foreign exchange	Selling, general and administrative expense	2,531		5,724
Corn options and futures	Net sales	(998)		855
Corn options and futures	Cost of sales and operating expenses	1,469		(1,841)
Total		$	8,676	$	3,286

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Fair Value Measurement (Tables)

3 Months Ended

Apr. 03, 2021

Fair Value Disclosures [Abstract]

Fair value measured on recurring basis

The fair value hierarchy has three levels based on the reliability of the inputs used to determine the fair value. 

			Fair Value Measurements at April 3, 2021 Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands of dollars)	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Derivative instruments	$	2,211	$	—	$	2,211	$	—
Total Assets	$	2,211	$	—	$	2,211	$	—
Liabilities:
Derivative instruments	$	10,483	$	—	$	10,483	$	—
5.25% Senior notes	526,650		—		526,650		—
3.625% Senior notes	617,284		—		617,284		—
Term loan B	249,375		—		249,375		—
Revolver debt	68,655		—		68,655		—
Total Liabilities	$	1,472,447	$	—	$	1,472,447	$	—

			Fair Value Measurements at January 2, 2021 Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands of dollars)	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Derivative instruments	$	17,358	$	—	$	17,358	$	—
Total Assets	$	17,358	$	—	$	17,358	$	—
Liabilities:
Derivative instruments	$	9,778	$	—	$	9,778	$	—
5.25% Senior notes	531,300		—		531,300		—
3.625% Senior notes	646,323		—		646,323		—
Term loan B	298,500		—		298,500		—
Revolver debt	54,175		—		54,175		—
Total Liabilities	$	1,540,076	$	—	$	1,540,076	$	—

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Business Segments (Tables)

3 Months Ended

Apr. 03, 2021

Segment Reporting [Abstract]

Business Segments

Business Segments (in thousands):

	Feed Ingredients		Food Ingredients		Fuel Ingredients		Corporate		Total
Three Months Ended April 3, 2021
Net Sales	$	651,444	$	298,065	$	97,207	$	—	$	1,046,716
Cost of sales and operating expenses	474,581		226,413		71,790		—		772,784
Gross Margin	176,863		71,652		25,417		—		273,932
Loss/(gain) on sale of assets	(139)		55		20		—		(64)
Selling, general and administrative expense	52,620		25,191		4,867		14,720		97,398
Restructuring and asset impairment charges	—		—		778		—		778
Depreciation and amortization	54,609		14,883		6,155		2,887		78,534
Equity in net income of Diamond Green Diesel	—		—		102,225		—		102,225
Segment operating income/(loss)	69,773		31,523		115,822		(17,607)		199,511
Equity in net income of other unconsolidated subsidiaries	612		—		—		—		612
Segment income/(loss)	70,385		31,523		115,822		(17,607)		200,123
Total other expense									(17,997)
Income before income taxes									$	182,126
Segment assets at April 3, 2021	$	2,708,035	$	1,235,547	$	1,229,461	$	418,404	$	5,591,447

	Feed Ingredients		Food Ingredients		Fuel Ingredients		Corporate		Total
Three Months Ended March 28, 2020
Net Sales	$	512,625	$	270,294	$	69,923	$	—	$	852,842
Cost of sales and operating expenses	388,453		205,430		53,025		—		646,908
Gross Margin	124,172		64,864		16,898		—		205,934
Loss on sale of assets	50		2		9		—		61
Selling, general and administrative expense	53,947		25,476		1,654		15,116		96,193
Depreciation and amortization	53,521		20,305		8,092		2,753		84,671
Equity in net income of Diamond Green Diesel	—		—		97,820		—		97,820
Segment operating income/(loss)	16,654		19,081		104,963		(17,869)		122,829
Equity in net income of other unconsolidated subsidiaries	869		—		—		—		869
Segment income/(loss)	17,523		19,081		104,963		(17,869)		123,698
Total other expense									(19,307)
Income before income taxes									$	104,391
Segment assets at January 2, 2021	$	2,708,922	$	1,335,769	$	1,160,132	$	408,508	$	5,613,331

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Revenue (Tables)

3 Months Ended

Apr. 03, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following tables present the Company revenues disaggregated by geographic area and major product types by reportable segment for the three months ended April 3, 2021 and March 28, 2020 (in thousands):

	Three Months Ended April 3, 2021
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	549,015	$	60,940	$	3,350	$	613,305
Europe	97,645		155,363		93,857		346,865
China	1,938		57,932		—		59,870
South America	—		10,454		—		10,454
Other	2,846		13,376		—		16,222
Net sales	$	651,444	$	298,065	$	97,207	$	1,046,716
Major product types
Fats	$	229,006	$	41,433	$	—	$	270,439
Used cooking oil	51,029		—		—		51,029
Proteins	255,507		—		—		255,507
Bakery	63,105		—		—		63,105
Other rendering	42,957		—		—		42,957
Food ingredients	—		229,542		—		229,542
Bioenergy	—		—		93,857		93,857
Biofuels	—		—		3,350		3,350
Other	9,840		27,090		—		36,930
Net sales	$	651,444	$	298,065	$	97,207	$	1,046,716

	Three Months Ended March 28, 2020
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	427,463	$	46,415	$	5,400	$	479,278
Europe	80,443		158,587		64,523		303,553
China	2,423		39,956		—		42,379
South America	—		10,586		—		10,586
Other	2,296		14,750		—		17,046
Net sales	$	512,625	$	270,294	$	69,923	$	852,842
Major product types
Fats	$	163,284	$	33,476	$	—	$	196,760
Used cooking oil	47,608		—		—		47,608
Proteins	195,980		—		—		195,980
Bakery	47,101		—		—		47,101
Other rendering	47,164		—		—		47,164
Food ingredients	—		214,793		—		214,793
Bioenergy	—		—		64,523		64,523
Biofuels	—		—		5,400		5,400
Other	11,488		22,025		—		33,513
Net sales	$	512,625	$	270,294	$	69,923	$	852,842

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Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020	Jan. 02, 2021
Summary of Significant Accounting Policies [Line Items]
Term of contract not recognized	12 months
Operating lease, liability	$ 146,841		$ 149,166
Operating right-of-use assets, net	145,238		$ 146,563
Financing Receivable, Sale	106,900	$ 84,500
Financing Receivable, Significant Sales, Transaction Fees	300	400
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(39,800)	(65,100)
Basic:
Net income	$ 151,766	$ 85,510
Shares (in shares)	162,925,000	163,474,000
Per Share (in usd per share)	$ 0.93	$ 0.52
Effect of dilutive securities: [Abstract]
Add: Option shares in the money and dilutive effect of non-vested stock (in shares)	5,733,000	6,749,000
Less: Pro forma treasury shares (in shares)	(909,000)	(2,296,000)
Diluted:
Net Income	$ 151,766	$ 85,510
Shares (in shares)	167,749,000	167,927,000
Per Share (in usd per share)	$ 0.90	$ 0.51
Stock Options [Member]
Antidilutive Securities [Abstract]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	551,877
Non Vested Stock [Member]
Antidilutive Securities [Abstract]
Antidilutive securities excluded from computation of earnings per share (in shares)	162,896	406,502

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Summary of Significant Accounting Policies Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021
Accounting Policies [Abstract]
Cash and cash equivalents	$ 71,199	$ 81,617

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Investment in Unconsolidated Subsidiary (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020	Jan. 02, 2021	Jan. 21, 2011
Schedule of Equity Method Investments [Line Items]
Investment in the joint venture	$ 915,085		$ 804,682
Income (loss) from equity method investments	612	$ 869
Distributions of earnings from other unconsolidated subsidiaries	57	0
Diamond Green Diesel Holdings LLC Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage				50.00%
Investment in the joint venture	879,700
Income (loss) from equity method investments	102,200	97,800
Income Tax Credits and Adjustments	$ 79,000	$ 80,000
Diamond Green Diesel Holdings LLC Joint Venture [Member] | Valero Energy Corporation [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage				50.00%

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Investment in Unconsolidated Subsidiary (Assets, Liabilities and members' equity) (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Mar. 31, 2021	Jan. 02, 2021	Dec. 31, 2020	Mar. 28, 2020	Dec. 28, 2019
ASSETS
Assets, Current	$ 940,767		$ 986,994
Property, Plant and Equipment, Net	1,822,075		1,863,814
Other assets	59,099		60,682
Segment Assets	5,591,447		5,613,331
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	26,997		27,538
Other non-current liabilities	115,799		117,371
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	3,029,946		2,954,209		$ 2,608,442	$ 2,643,350
Liabilities and Equity	$ 5,591,447		$ 5,613,331
Diamond Green Diesel Holdings LLC Joint Venture [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees
ASSETS
Assets, Current		$ 477,840		$ 383,557
Property, Plant and Equipment, Net		1,437,905		1,238,726
Other assets		39,171		36,082
Segment Assets		1,954,916		1,658,365
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt		562		517
Other Liabilities, Current		177,594		99,787
Long-term Debt, Excluding Current Maturities		8,702		8,705
Other non-current liabilities		8,722		3,758
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		1,759,336		1,545,598
Liabilities and Equity		$ 1,954,916		$ 1,658,365

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Investment in Unconsolidated Subsidiary (Revenues and Expenses) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 31, 2021	Mar. 31, 2020	Mar. 28, 2020
Revenues:
Operating revenues	$ 1,046,716			$ 852,842
Expenses:
Cost of sales and operating expenses	772,784			646,908
Total costs and expenses	949,430			827,833
Operating income	199,511			122,829
Net income	$ 153,418			$ 86,091
Diamond Green Diesel Holdings LLC Joint Venture [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees
Revenues:
Operating revenues		$ 431,633	$ 358,615
Expenses:
Cost of sales and operating expenses		215,234	151,347
Depreciation, amortization and accretion expense		11,687	11,774
Total costs and expenses		226,921	163,121
Operating income		204,712	195,494
Other income		58	461
Interest and debt expense, net		(320)	(315)
Net income		$ 204,450	$ 195,640

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Inventories (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021
Inventory Disclosure [Abstract]
Finished product	$ 250,237	$ 233,044
Work in process	87,219	87,223
Raw Material	35,229	36,746
Supplies and other	47,974	48,909
Inventories	$ 420,659	$ 405,922

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Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020	Jan. 02, 2021
Intangible Assets [Line Items]
Indefinite Lived Intangible Assets	$ 54,184		$ 55,349
Finite Lived Intangible Assets:	967,832		986,417
Accumulated Amortization:	(569,477)		(568,086)
Intangible Assets, Net (Excluding Goodwill)	452,539		473,680
Intangible assets, period decrease	9,500
Amortization of Intangible Assets	17,000	$ 18,200
Trade Names [Member]
Intangible Assets [Line Items]
Indefinite Lived Intangible Assets	54,184		55,349
Trade Names [Member]
Intangible Assets [Line Items]
Finite Lived Intangible Assets:	65,675		65,675
Accumulated Amortization:	(41,125)		(39,491)
Collection Routes [Member]
Intangible Assets [Line Items]
Finite Lived Intangible Assets:	393,937		397,342
Accumulated Amortization:	(206,137)		(203,392)
Royalty, consulting land use and leasehold [Member]
Intangible Assets [Line Items]
Finite Lived Intangible Assets:	25,616		25,909
Accumulated Amortization:	(7,119)		(6,976)
Permits [Member]
Intangible Assets [Line Items]
Finite Lived Intangible Assets:	481,959		494,191
Accumulated Amortization:	(314,741)		(315,246)
Noncompete Agreements [Member]
Intangible Assets [Line Items]
Finite Lived Intangible Assets:	645		3,300
Accumulated Amortization:	$ (355)		$ (2,981)

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Goodwill (Details) $ in Thousands	3 Months Ended
	Apr. 03, 2021 USD ($)
Goodwill [Roll Forward]
Goodwill	$ 1,308,195
Accumulated impairment losses	(47,955)
Goodwill	1,260,240
Goodwill, Acquired During Period	201
Foreign currency translation	(19,199)
Goodwill	1,289,197
Accumulated impairment losses	(47,955)
Goodwill	1,241,242
Feed Ingredients
Goodwill [Roll Forward]
Goodwill	830,321
Accumulated impairment losses	(15,914)
Goodwill	814,407
Goodwill, Acquired During Period	40
Foreign currency translation	(5,631)
Goodwill	824,730
Accumulated impairment losses	(15,914)
Goodwill	808,816
Fuel Ingredients
Goodwill [Roll Forward]
Goodwill	126,578
Accumulated impairment losses	(31,580)
Goodwill	94,998
Goodwill, Acquired During Period	161
Foreign currency translation	(3,883)
Goodwill	122,856
Accumulated impairment losses	(31,580)
Goodwill	91,276
Food Ingredients
Goodwill [Roll Forward]
Goodwill	351,296
Accumulated impairment losses	(461)
Goodwill	350,835
Goodwill, Acquired During Period	0
Foreign currency translation	(9,685)
Goodwill	341,611
Accumulated impairment losses	(461)
Goodwill	$ 341,150

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Accrued Expense (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021
Payables and Accruals [Abstract]
Compensation and benefits	$ 99,108	$ 121,497
Accrued ad valorem, and franchise taxes	15,779	39,167
Accrued operating expenses	67,132	62,601
Other accrued expense	129,352	112,206
Accrued expenses	$ 311,371	$ 335,471

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- Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Leases [Abstract]
Operating lease cost	$ 11,661	$ 11,509
Short-term Lease, Cost	6,408	6,245
Total lease costs	$ 18,069	$ 17,754

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- Other Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020	Jan. 02, 2021
Leases [Abstract]
Operating cash flows from operating leases	$ 14,265	$ 12,456
Operating right-of-use assets, net	145,238		$ 146,563
Operating lease liability, current	38,064		39,459
Operating lease liability, non-current	108,777		109,707
Operating Lease, Liability	$ 146,841		$ 149,166
Weighted average remaining lease term - operating leases	6 years 5 months 4 days		6 years 3 months 18 days
Weighted average discount rate - operating leases	4.01%		4.22%

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- Maturities of Operating and Financing Lease Liabilities (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021
Operating Leases
2021 (excluding the three months ended April 3, 2021)	$ 32,297
2022	34,591
2023	29,567
2024	22,759
2025	14,118
Thereafter	27,721
Operating lease, obligations	161,053
Less amounts representing interest	(14,212)
Lease obligations included in current and long-term liabilities	146,841	$ 149,166
Capital Leases
2021 (excluding the three months ended April 3, 2021)	650
Finance Lease, Liability, to be Paid, Year One	824
2023	611
2024	467
2025	331
Thereafter	574
Finance lease, obligations	3,457
Less amounts representing interest	(134)
Lease obligations included in current and long-term liabilities	$ 3,323

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Leases - Additional information (Details) $ in Millions	Apr. 03, 2021 USD ($)
Lessee, Lease, Description [Line Items]
Lease not yet commenced	$ 3.2
Minimum [Member]
Lessee, Lease, Description [Line Items]
Lease not yet commenced, term of contract	5 years

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Debt (Schedule of Long-term Debt) (Details)	3 Months Ended
	Apr. 03, 2021 USD ($)	Apr. 03, 2021 EUR (€)	Jan. 02, 2021 USD ($)	Apr. 03, 2019 USD ($)	May 02, 2018 EUR (€)
Debt Instrument [Line Items]
Debt and Lease Obligation	$ 1,444,531,000		$ 1,508,069,000
Current portion of long-term debt	26,997,000		27,538,000
Long-term debt, net of current portion	$ 1,417,534,000		1,480,531,000
Capital Lease Obligations | €		€ 2,800,000
Senior Secured Facilities [Member]
Debt Instrument [Line Items]
Line of credit term	5 years
Term Loan B Facility [Member] | Senior Secured Facilities [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 247,021,000		296,202,000
Long-term Debt, Gross	250,000,000		300,000,000
Unamortized Debt Issuance Expense	(2,979,000)		(3,798,000)
Senior Notes [Member] | Senior Notes 5.25% Due 2027 [Member]
Debt Instrument [Line Items]
Long-term Debt	494,447,000		494,253,000
Long-term Debt, Gross	500,000,000		500,000,000
Unamortized Debt Issuance Expense	$ (5,553,000)		(5,747,000)
Stated interest rate	5.25%	5.25%		5.25%
Debt instrument, interest rate, effective percentage	5.47%	5.47%
Face amount of debt instrument				$ 500,000,000.0
Senior Notes [Member] | Senior Notes 3.625% Due 2026 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 600,264,000		625,577,000
Long-term Debt, Gross	606,310,000		632,163,000
Unamortized Debt Issuance Expense	$ (6,046,000)		(6,586,000)
Line of credit outstanding | €		€ 515,000,000.0
Stated interest rate	3.625%	3.625%			3.625%
Debt instrument, interest rate, effective percentage	3.83%	3.83%
Face amount of debt instrument | €					€ 515,000,000.0
Notes Payable, Other Payables [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 33,799,000		37,037,000
Notes Payable, Other Payables [Member] | Other Debt Obligations [Member]
Debt Instrument [Line Items]
Long-term Debt	12,900,000
Notes Payable, Other Payables [Member] | Bank Overdrafts [Member]
Debt Instrument [Line Items]
Long-term Debt	4,700,000
Foreign Line of Credit [Member] | Senior Secured Facilities [Member]
Debt Instrument [Line Items]
Line of credit outstanding	11,700,000
Foreign Line of Credit [Member] | Notes Payable, Other Payables [Member]
Debt Instrument [Line Items]
Line of credit outstanding	16,200,000
Letter of Credit [Member] | Senior Secured Facilities [Member]
Debt Instrument [Line Items]
Line of credit outstanding	3,800,000
Revolving Credit Facility [Member] | Line of Credit [Member] | Senior Secured Facilities [Member]
Debt Instrument [Line Items]
Long-term Debt	69,000,000		$ 55,000,000
Term Loan B Facility [Member] | Senior Secured Facilities [Member]
Debt Instrument [Line Items]
Face amount of debt instrument	525,000,000.0
U.S. dollar | Term Loan B Facility [Member] | Senior Secured Facilities [Member]
Debt Instrument [Line Items]
Line of credit outstanding	$ 250,000,000.0
London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | Senior Secured Facilities [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
Interest rate	1.616%	1.616%
London Interbank Offered Rate (LIBOR) [Member] | U.S. dollar | Revolving Credit Facility [Member] | Senior Secured Facilities [Member]
Debt Instrument [Line Items]
Line of credit outstanding	$ 42,000,000.0
London Interbank Offered Rate (LIBOR) [Member] | U.S. dollar | Term Loan B Facility [Member] | Senior Secured Facilities [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%
Interest rate	2.12%	2.12%
Base Rate [Member] | U.S. dollar | Secured Debt [Member] | Senior Secured Facilities [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Interest rate	3.75%	3.75%
Base Rate [Member] | U.S. dollar | Revolving Credit Facility [Member] | Senior Secured Facilities [Member]
Debt Instrument [Line Items]
Line of credit outstanding	$ 27,000,000.0

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Debt (Senior Secured Credit Facilities) (Details) - Senior Secured Facilities [Member]	3 Months Ended
	Apr. 03, 2021 USD ($)	Sep. 17, 2020
Debt Instrument [Line Items]
Line of credit term	5 years
Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
Interest rate	1.616%
Secured Debt [Member] | Base Rate [Member] | U.S. dollar
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Interest rate	3.75%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity	$ 1,000,000,000.0
Company availability under revolving loan facility	879,900,000
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | U.S. dollar
Debt Instrument [Line Items]
Line of credit outstanding	42,000,000.0
Revolving Credit Facility [Member] | Base Rate [Member] | U.S. dollar
Debt Instrument [Line Items]
Line of credit outstanding	27,000,000.0
Letter of Credit [Member]
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity	150,000,000.0
Leverage ratio, denominator		1.5
Line of credit outstanding	3,800,000
Swingline Sub-Facility [Member]
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity	50,000,000.0
Term Loan B Facility [Member]
Debt Instrument [Line Items]
Face amount of debt instrument	525,000,000.0
Term Loan B Facility [Member] | U.S. dollar
Debt Instrument [Line Items]
Line of credit outstanding	$ 250,000,000.0
Term Loan B Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | U.S. dollar
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%
Interest rate	2.12%
Foreign Line of Credit [Member]
Debt Instrument [Line Items]
Line of credit outstanding	$ 11,700,000
Secured Debt [Member]
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity	$ 1,525,000,000
Secured Debt [Member] | Term Loan A Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
Secured Debt [Member] | Term Loan A Facility [Member] | Canadian Prime Rate [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Secured Debt [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Company availability under revolving loan facility	$ 970,000,000.0
Secured Debt [Member] | Revolving Credit Facility [Member] | U.S. dollar
Debt Instrument [Line Items]
Company availability under revolving loan facility	$ 30,000,000.0
Secured Debt [Member] | Term Loan B Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | U.S. dollar
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%
Secured Debt [Member] | Term Loan B Facility [Member] | Base Rate [Member] | U.S. dollar
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Maximum [Member] | Letter of Credit [Member]
Debt Instrument [Line Items]
Leverage ratio	3.66666666666667	5.50
Minimum [Member] | Letter of Credit [Member]
Debt Instrument [Line Items]
Interest ratio	3.00

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Debt Debt (Senior Notes Due 2026) (Details) - Senior Notes [Member] - Senior Notes 3.625% Due 2026 [Member] - EUR (€)	Apr. 03, 2021	May 02, 2018
Debt Instrument [Line Items]
Debt Instrument, Face Amount		€ 515,000,000.0
Stated interest rate	3.625%	3.625%

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Debt Debt (Senior Notes Due 2027) (Details) - Senior Notes [Member] - Senior Notes 5.25% Due 2027 [Member] - USD ($)	Apr. 03, 2021	Apr. 03, 2019
Debt Instrument [Line Items]
Face amount of debt instrument		$ 500,000,000.0
Stated interest rate	5.25%	5.25%

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Income Taxes (Details) $ in Millions	3 Months Ended
	Apr. 03, 2021 USD ($)
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 5.6
Income tax penalties and interest accrued	0.4
Decrease in unrecognized tax benefits	$ 0.2

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Other Comprehensive Income (Schedule of OCI) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Before-Tax Amount:
Amortization of prior service cost	$ 5	$ 8
Amortization of actuarial loss	1,052	854
Total defined benefit pension plans	1,057	862
Foreign currency translation	(39,737)	(65,887)
Other Comprehensive income (loss)	(45,686)	(63,682)
Tax (Expense) or Benefit:
Amortization of prior service cost	(1)	(2)
Amortization of actuarial loss	(264)	(212)
Total defined benefit pension plans	(265)	(214)
Foreign currency translation	1,515	651
Other Comprehensive income (loss)	3,857	949
Net-of-Tax Amount:
Amortization of prior service cost	4	6
Amortization of actuarial loss	788	642
Total defined benefit pension plans	792	648
Foreign currency translation	(38,222)	(65,236)
Total other comprehensive loss, net of tax	(41,829)	(62,733)
Soybean Meal
Before-Tax Amount:
Loss (gain) reclassified to net income	(280)	0
Gain (loss) activity recognized in other comprehensive loss	(64)	0
Total swap derivatives	(344)	0
Tax (Expense) or Benefit:
Loss (gain) reclassified to net income	(71)	0
Gain (loss) activity recognized in other comprehensive loss	(16)	0
Total swap derivatives	(87)	0
Net-of-Tax Amount:
Loss (gain) reclassified to net income	(209)	0
Gain (loss) activity recognized in other comprehensive loss	(48)	0
Total swap derivatives	(257)	0
Corn Option
Before-Tax Amount:
Loss (gain) reclassified to net income	3,920	300
Gain (loss) activity recognized in other comprehensive loss	(4,993)	(119)
Total swap derivatives	(1,073)	181
Tax (Expense) or Benefit:
Loss (gain) reclassified to net income	(996)	(75)
Gain (loss) activity recognized in other comprehensive loss	1,269	30
Total swap derivatives	273	(45)
Net-of-Tax Amount:
Loss (gain) reclassified to net income	2,924	225
Gain (loss) activity recognized in other comprehensive loss	(3,724)	(89)
Total swap derivatives	(800)	136
Heating Oil Swaps And Options
Before-Tax Amount:
Gain (loss) activity recognized in other comprehensive loss	4,644	14,494
Total swap derivatives	4,644	14,494
Tax (Expense) or Benefit:
Gain (loss) activity recognized in other comprehensive loss	(1,180)	(3,624)
Total swap derivatives	(1,180)	(3,624)
Net-of-Tax Amount:
Gain (loss) activity recognized in other comprehensive loss	3,464	10,870
Total swap derivatives	3,464	10,870
Foreign Exchange Contract
Before-Tax Amount:
Loss (gain) reclassified to net income	224	(412)
Gain (loss) activity recognized in other comprehensive loss	(10,457)	(12,920)
Total swap derivatives	(10,233)	(13,332)
Tax (Expense) or Benefit:
Loss (gain) reclassified to net income	(75)	129
Gain (loss) activity recognized in other comprehensive loss	3,502	4,052
Total swap derivatives	3,427	4,181
Net-of-Tax Amount:
Loss (gain) reclassified to net income	149	(283)
Gain (loss) activity recognized in other comprehensive loss	(6,955)	(8,868)
Total swap derivatives	$ (6,806)	$ (9,151)

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Other Comprehensive Income (Reclassification out of AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Net sales	$ 1,046,716	$ 852,842
Cost of sales and operating expenses	772,784	646,908
Income taxes	(28,708)	(18,300)
Amortization of prior service cost	5	8
Amortization of actuarial loss	1,052	854
Net income attributable to Darling	151,766	85,510
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Net income attributable to Darling	(3,656)	(590)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments [Member]
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Total before tax	(3,864)	112
Income taxes	1,000	(54)
Net income attributable to Darling	(2,864)	58
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments [Member] | Foreign Exchange Contract
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Net sales	(224)	412
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments [Member] | Corn Option
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Cost of sales and operating expenses	(3,920)	(300)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments [Member] | Soybean Meal
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Net sales	280	0
Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign Currency Translation [Member]
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Total before tax	(1,057)	(862)
Income taxes	265	214
Amortization of prior service cost	(5)	(8)
Amortization of actuarial loss	(1,052)	(854)
Net income attributable to Darling	$ (792)	$ (648)

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Other Comprehensive Income (Schedule of AOCI) (Details) $ in Thousands	3 Months Ended
	Apr. 03, 2021 USD ($)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated Other Comprehensive loss January 2, 2021, attributable to Darling, net of tax	$ (252,433)
Other comprehensive loss before reclassifications	(45,485)
Amounts reclassified from accumulated other comprehensive loss	3,656
Net current-period other comprehensive income/(loss)	(41,829)
Noncontrolling interest	1,534
Accumulated Other Comprehensive loss April 3, 2021, attributable to Darling, net of tax	(295,796)
Foreign Currency Translation [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated Other Comprehensive loss January 2, 2021, attributable to Darling, net of tax	(210,902)
Other comprehensive loss before reclassifications	(38,222)
Amounts reclassified from accumulated other comprehensive loss	0
Net current-period other comprehensive income/(loss)	(38,222)
Noncontrolling interest	1,534
Accumulated Other Comprehensive loss April 3, 2021, attributable to Darling, net of tax	(250,658)
Derivative Instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated Other Comprehensive loss January 2, 2021, attributable to Darling, net of tax	(3,214)
Other comprehensive loss before reclassifications	(7,263)
Amounts reclassified from accumulated other comprehensive loss	2,864
Net current-period other comprehensive income/(loss)	(4,399)
Noncontrolling interest	0
Accumulated Other Comprehensive loss April 3, 2021, attributable to Darling, net of tax	(7,613)
Defined Benefit Pension Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated Other Comprehensive loss January 2, 2021, attributable to Darling, net of tax	(38,317)
Other comprehensive loss before reclassifications	0
Amounts reclassified from accumulated other comprehensive loss	792
Net current-period other comprehensive income/(loss)	792
Noncontrolling interest	0
Accumulated Other Comprehensive loss April 3, 2021, attributable to Darling, net of tax	$ (37,525)

XML

Stockholders' Equity (Details) - USD ($)			3 Months Ended
	Jan. 04, 2021	Aug. 03, 2020	Apr. 03, 2021	Mar. 28, 2020
Class of Stock [Line Items]
Grants in Period (in shares)	90,689
Grants in period (in shares)	126,711
Annual vesting after initial cliff			33.33%
Performance period two			3 years
Target percentage			100.00%
Repurchase of common stock			$ 0	$ 55,044,000
Remaining authorized repurchase amount			$ 200,000,000.0
Stock repurchase program, period		2 years
Stock repurchase program, authorized amount		$ 200,000,000.0

XML

Employee Benefit Plans (Details) $ in Thousands	3 Months Ended
	Apr. 03, 2021 USD ($) plan	Mar. 28, 2020 USD ($)
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Amount Company expects to contribute to its pension plans	$ 3,800
Payment for pension benefits	$ 900	$ 800
Defined Benefit Plan, Additional Information [Abstract]
Number Of Multiemployer Plans, Withdrawal Obligation Could Be Material | plan	2
Number Of Multiemployer Plans Withdrawal Obligation Could Be Material Certified Red Zone | plan	1
Number of Multiemployer Plans, Certified Red Zone | plan	5
Number of Multiemployer Plans, Certified Yellow Zone | plan	2
Number Of Multiemployer Plans, Withdrawal Obligation | plan	4
Additional Liability, Defined Benefit Pension Plan	$ 1,300
Accrued liability representing the present value of scheduled withdrawal liability payments for under-funded multi-employer plan	$ 4,000
Maximum [Member]
Defined Benefit Plan, Additional Information [Abstract]
Multiemployer Plan, Contributions To Individual Plan, Percent	5.00%
Pension Plan, Defined Benefit [Member]
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	$ 785	755
Interest cost	1,204	1,428
Expected return on plan assets	(2,321)	(2,039)
Amortization of prior service cost	5	8
Amortization of actuarial loss	1,052	854
Net pension cost	$ 725	$ 1,006

XML

Derivatives (Forward Contracts Not Designated as Hedging Instruments) (Details) - Apr. 03, 2021 - Not Designated as Hedging Instrument [Member] € in Thousands, ¥ in Thousands, ¥ in Thousands, £ in Thousands, zł in Thousands, R$ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands	BRL (R$)	EUR (€)	USD ($)	PLN (zł)	JPY (¥)	CNY (¥)	AUD ($)	GBP (£)	CAD ($)
BRI/EUR 1 [Member] | Short [Member]
Derivative [Line Items]
Derivative notional amount | R$	R$ 49,335
BRI/EUR 1 [Member] | Long [Member]
Derivative [Line Items]
Derivative notional amount		€ 7,305
BRI/USD [Member] | Short [Member]
Derivative [Line Items]
Derivative notional amount | R$	R$ 1,103,561
BRI/USD [Member] | Long [Member]
Derivative [Line Items]
Derivative notional amount | $			$ 241,320
EUR/USD [Member] | Short [Member]
Derivative [Line Items]
Derivative notional amount		35,967
EUR/USD [Member] | Long [Member]
Derivative [Line Items]
Derivative notional amount | $			42,810
EUR/PLN [Member] | Short [Member]
Derivative [Line Items]
Derivative notional amount		43,119
EUR/PLN [Member] | Long [Member]
Derivative [Line Items]
Derivative notional amount | zł				zł 198,500
EUR/JPN [Member] | Short [Member]
Derivative [Line Items]
Derivative notional amount		6,293
EUR/JPN [Member] | Long [Member]
Derivative [Line Items]
Derivative notional amount | ¥					¥ 808,776
EUR/CNY [Member] | Short [Member]
Derivative [Line Items]
Derivative notional amount		16,176
EUR/CNY [Member] | Long [Member]
Derivative [Line Items]
Derivative notional amount | ¥						¥ 126,124
EUR/AUD [Member] | Short [Member]
Derivative [Line Items]
Derivative notional amount		42,340
EUR/AUD [Member] | Long [Member]
Derivative [Line Items]
Derivative notional amount | $							$ 65,550
EUR/GBP [Member] | Short [Member]
Derivative [Line Items]
Derivative notional amount		3,048
EUR/GBP [Member] | Long [Member]
Derivative [Line Items]
Derivative notional amount | £								£ 2,600
EUR/CAD | Short [Member]
Derivative [Line Items]
Derivative notional amount		32
EUR/CAD | Long [Member]
Derivative [Line Items]
Derivative notional amount | $									$ 50
PLN/EUR [Member] | Short [Member]
Derivative [Line Items]
Derivative notional amount | zł				24,116
PLN/EUR [Member] | Long [Member]
Derivative [Line Items]
Derivative notional amount		5,195
GBP/EUR | Short [Member]
Derivative [Line Items]
Derivative notional amount | £								£ 176
GBP/EUR | Long [Member]
Derivative [Line Items]
Derivative notional amount		207
JPN/USD [Member] | Short [Member]
Derivative [Line Items]
Derivative notional amount | ¥					231,803
JPN/USD [Member] | Long [Member]
Derivative [Line Items]
Derivative notional amount | $			2,159
USD/JPN | Short [Member]
Derivative [Line Items]
Derivative notional amount | $			100
USD/JPN | Long [Member]
Derivative [Line Items]
Derivative notional amount | ¥					¥ 11,000
USD/EUR | Short [Member]
Derivative [Line Items]
Derivative notional amount | $			165,311
USD/EUR | Long [Member]
Derivative [Line Items]
Derivative notional amount		€ 140,000
PLN/USD | Short [Member]
Derivative [Line Items]
Derivative notional amount | zł				zł 1,031
PLN/USD | Long [Member]
Derivative [Line Items]
Derivative notional amount | $			$ 262

XML

Derivatives (Narrative) (Details) - USD ($)	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020	Jan. 02, 2021
Derivative [Line Items]
Net income	$ 153,418,000	$ 86,091,000
Commodity Contract [Member]
Derivative [Line Items]
Forward purchase amount	71,900,000
Cash Flow Hedging [Member]
Derivative [Line Items]
Cash flow hedge gain (loss) to be reclassified within 12 months	10,000,000.0
Net income	0
Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Foreign Exchange Contract
Derivative [Line Items]
Asset Derivatives Fair Value	400,000		$ 11,600,000
Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Corn Option
Derivative [Line Items]
Asset Derivatives Fair Value	(8,000,000.0)		(6,800,000)
Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Soybean Meal
Derivative [Line Items]
Asset Derivatives Fair Value	$ 100,000		$ 400,000

XML

Derivatives Derivative Effect of Derivatives Not Designated As Hedges (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Derivative [Line Items]
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges	$ 8,676	$ 3,286
Foreign Exchange Contract | Foreign Currency Gain (Loss) [Member]
Derivative [Line Items]
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges	5,389	(1,295)
Foreign Exchange Contract | Selling, General and Administrative Expenses [Member]
Derivative [Line Items]
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges	2,531	5,724
Foreign Exchange Contract | Sales [Member]
Derivative [Line Items]
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges	729	730
Foreign Exchange Contract | Cost of Sales [Member]
Derivative [Line Items]
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges	(444)	(887)
Corn options and futures [Member] | Sales [Member]
Derivative [Line Items]
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges	(998)	855
Corn options and futures [Member] | Cost of Sales [Member]
Derivative [Line Items]
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges	$ 1,469	$ (1,841)

XML

Fair Value Measurement (Details) - USD ($) $ in Thousands	Apr. 03, 2021	Jan. 02, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	$ 2,211	$ 17,358
Total Assets	2,211	17,358
Derivative instruments	10,483	9,778
Total Liabilities	1,472,447	1,540,076
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	0	0
Total Assets	0	0
Derivative instruments	0	0
Total Liabilities	0	0
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	2,211	17,358
Total Assets	2,211	17,358
Derivative instruments	10,483	9,778
Total Liabilities	1,472,447	1,540,076
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	0	0
Total Assets	0	0
Derivative instruments	0	0
Total Liabilities	0	0
Term Loan B Facility [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	249,375	298,500
Term Loan B Facility [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	0	0
Term Loan B Facility [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	249,375	298,500
Term Loan B Facility [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	0	0
Revolving Credit Facility [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	68,655	54,175
Revolving Credit Facility [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	0	0
Revolving Credit Facility [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	68,655	54,175
Revolving Credit Facility [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	0	0
Senior Notes 5.25% Due 2027 [Member] | Senior Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	526,650	531,300
Senior Notes 5.25% Due 2027 [Member] | Senior Notes [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	0	0
Senior Notes 5.25% Due 2027 [Member] | Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	526,650	531,300
Senior Notes 5.25% Due 2027 [Member] | Senior Notes [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	0	0
Senior Notes 3.625% Due 2026 [Member] | Senior Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	617,284	646,323
Senior Notes 3.625% Due 2026 [Member] | Senior Notes [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	0	0
Senior Notes 3.625% Due 2026 [Member] | Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	617,284	646,323
Senior Notes 3.625% Due 2026 [Member] | Senior Notes [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes	$ 0	$ 0

XML

Restructuring and Asset Impairment Charges (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 03, 2021	Mar. 28, 2020	Jan. 02, 2021
Restructuring Cost and Reserve [Line Items]
Restructuring and asset impairment charges	$ 778	$ 0	$ 800
Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring and asset impairment charges			$ 400

XML

Contingencies (Details) $ in Millions		1 Months Ended		3 Months Ended
	Jun. 30, 2018 Party	Nov. 30, 2019 USD ($)	Mar. 31, 2016 Party mi	Apr. 03, 2021 USD ($) contaminant	Jan. 02, 2021 USD ($)
Loss Contingencies [Line Items]
Area of land | mi			8.3
Estimate of possible loss				$ 1,380.0
Number of parties | Party	100		100
Number of contaminants | contaminant				8
Loss related to litigation settlement		$ 0.6
Insurance Environmental and Litigation Matters [Member]
Loss Contingencies [Line Items]
Reserves for insurance, environmental and litigation contingencies				$ 67.8	$ 66.2
Insurance settlements receivable				27.0	$ 27.0
Settled Litigation [Member]
Loss Contingencies [Line Items]
Number of parties | Party	20
Pending Litigation [Member]
Loss Contingencies [Line Items]
Estimate of possible loss				$ 165.0
Number of parties | Party	40
Plant, One [Member]
Loss Contingencies [Line Items]
Loss related to litigation settlement		0.3
Plant, Two [Member]
Loss Contingencies [Line Items]
Loss related to litigation settlement		$ 0.3

XML

Business Segments (Narrative) (Details)	Apr. 03, 2021 segment
Segment Reporting [Abstract]
Number of Business Segments	3

XML

Business Segments (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 03, 2021	Mar. 28, 2020	Jan. 02, 2021
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	$ 1,046,716	$ 852,842
Cost of sales and operating expenses	772,784	646,908
Loss/(gain) on sale of assets	64	(61)
Selling, general and administrative expenses	97,398	96,193
Restructuring and asset impairment charges	778	0	$ 800
Depreciation and amortization	78,534	84,671
Equity in net income of Diamond Green Diesel	102,225	97,820
Operating income	199,511	122,829
Equity in net income of other unconsolidated subsidiaries	612	869
Total other expense	(17,997)	(19,307)
Income before income taxes	182,126	104,391
Segment Assets	5,591,447		5,613,331
Feed Ingredients
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	651,444	512,625
Cost of sales and operating expenses	474,581	388,453
Gross Margin	176,863	124,172
Loss/(gain) on sale of assets	(139)	50
Selling, general and administrative expenses	52,620	53,947
Restructuring and asset impairment charges	0
Depreciation and amortization	54,609	53,521
Equity in net income of Diamond Green Diesel	0	0
Operating income	69,773	16,654
Equity in net income of other unconsolidated subsidiaries	612	869
Segment income/(loss)	70,385	17,523
Segment Assets	2,708,035		2,708,922
Food Ingredients
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	298,065	270,294
Cost of sales and operating expenses	226,413	205,430
Gross Margin	71,652	64,864
Loss/(gain) on sale of assets	55	2
Selling, general and administrative expenses	25,191	25,476
Restructuring and asset impairment charges	0
Depreciation and amortization	14,883	20,305
Equity in net income of Diamond Green Diesel	0	0
Operating income	31,523	19,081
Equity in net income of other unconsolidated subsidiaries	0	0
Segment income/(loss)	31,523	19,081
Segment Assets	1,235,547		1,335,769
Fuel Ingredients
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	97,207	69,923
Cost of sales and operating expenses	71,790	53,025
Gross Margin	25,417	16,898
Loss/(gain) on sale of assets	20	9
Selling, general and administrative expenses	4,867	1,654
Restructuring and asset impairment charges	778
Depreciation and amortization	6,155	8,092
Equity in net income of Diamond Green Diesel	102,225	97,820
Operating income	115,822	104,963
Equity in net income of other unconsolidated subsidiaries	0	0
Segment income/(loss)	115,822	104,963
Segment Assets	1,229,461		1,160,132
Corporate
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	0	0
Cost of sales and operating expenses	0	0
Gross Margin	0	0
Loss/(gain) on sale of assets	0	0
Selling, general and administrative expenses	14,720	15,116
Restructuring and asset impairment charges	0
Depreciation and amortization	2,887	2,753
Equity in net income of Diamond Green Diesel	0	0
Operating income	(17,607)	(17,869)
Equity in net income of other unconsolidated subsidiaries	0	0
Segment income/(loss)	(17,607)	(17,869)
Segment Assets	418,404		408,508
Total
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	1,046,716	852,842
Cost of sales and operating expenses	772,784	646,908
Gross Margin	273,932	205,934
Loss/(gain) on sale of assets	(64)	61
Selling, general and administrative expenses	97,398	96,193
Restructuring and asset impairment charges	778
Depreciation and amortization	78,534	84,671
Equity in net income of Diamond Green Diesel	102,225	97,820
Operating income	199,511	122,829
Equity in net income of other unconsolidated subsidiaries	612	869
Segment income/(loss)	200,123	$ 123,698
Segment Assets	$ 5,591,447		$ 5,613,331

XML

Revenue (Details)	Apr. 03, 2021 source
Revenue from Contract with Customer [Abstract]
Number of revenue sources	2

XML

Revenue Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 03, 2021	Mar. 28, 2020
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	$ 1,046,716	$ 852,842
Feed Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	651,444	512,625
Food Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	298,065	270,294
Fuel Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	97,207	69,923
North America
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	613,305	479,278
North America | Feed Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	549,015	427,463
North America | Food Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	60,940	46,415
North America | Fuel Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	3,350	5,400
Europe
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	346,865	303,553
Europe | Feed Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	97,645	80,443
Europe | Food Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	155,363	158,587
Europe | Fuel Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	93,857	64,523
China
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	59,870	42,379
China | Feed Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	1,938	2,423
China | Food Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	57,932	39,956
China | Fuel Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	0	0
South America
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	10,454	10,586
South America | Feed Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	0	0
South America | Food Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	10,454	10,586
South America | Fuel Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	0	0
Other
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	16,222	17,046
Other | Feed Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	2,846	2,296
Other | Food Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	13,376	14,750
Other | Fuel Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	0	0
Fats
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	270,439	196,760
Fats | Feed Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	229,006	163,284
Fats | Food Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	41,433	33,476
Fats | Fuel Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	0	0
Used cooking oil
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	51,029	47,608
Used cooking oil | Feed Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	51,029	47,608
Used cooking oil | Food Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	0	0
Used cooking oil | Fuel Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	0	0
Proteins
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	255,507	195,980
Proteins | Feed Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	255,507	195,980
Proteins | Food Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	0	0
Proteins | Fuel Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	0	0
Bakery
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	63,105	47,101
Bakery | Feed Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	63,105	47,101
Bakery | Food Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	0	0
Bakery | Fuel Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	0	0
Other rendering
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	42,957	47,164
Other rendering | Feed Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	42,957	47,164
Other rendering | Food Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	0	0
Other rendering | Fuel Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	0	0
Food ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	229,542	214,793
Food ingredients | Feed Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	0	0
Food ingredients | Food Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	229,542	214,793
Food ingredients | Fuel Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	0	0
Bioenergy
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	93,857	64,523
Bioenergy | Feed Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	0	0
Bioenergy | Food Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	0	0
Bioenergy | Fuel Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	93,857	64,523
Biofuels
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	3,350	5,400
Biofuels | Feed Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	0	0
Biofuels | Food Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	0	0
Biofuels | Fuel Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	3,350	5,400
Other
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	36,930	33,513
Other | Feed Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	9,840	11,488
Other | Food Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	27,090	22,025
Other | Fuel Ingredients
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net sales	$ 0	$ 0

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Revenue Revenue from Long-term Performance Obligations, Narrative (Details) $ in Millions	3 Months Ended
	Apr. 03, 2021 USD ($)
Revenue from Contract with Customer [Abstract]
Revenue recognized	$ 15.0

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Revenue Revenue from Long-term Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-03-29 $ in Millions	Apr. 03, 2021 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	2 years
Remaining performance obligation	$ 154.7

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Related Party Transactions (Details)			3 Months Ended
	Apr. 01, 2021 USD ($) agreement	Mar. 30, 2019	Apr. 03, 2021 USD ($)	Mar. 28, 2020 USD ($)	Jan. 02, 2021 USD ($)	Feb. 29, 2020 USD ($) agreement	May 01, 2019 USD ($)
IMTT Terminaling Agreements
Related Party Transaction [Line Items]
Number Of Terminaling Agreements | agreement						2
Related Party, Unrecorded Unconditional Guarantee						$ 50,000,000
GTL Terminaling Agreements
Related Party Transaction [Line Items]
Number Of Terminaling Agreements | agreement	2
Related Party, Unrecorded Unconditional Guarantee	$ 160,000,000.0
Related Party, Initial Agreement Term	20 years
Diamond Green Diesel Holdings LLC Joint Venture [Member]
Related Party Transaction [Line Items]
Revenue from Related Parties			$ 89,000,000.0	$ 62,100,000
Accounts Receivable, Related Parties, Current			12,600,000		$ 14,200,000
Related Party Sales Eliminated			14,600,000	5,700,000
Deferred Revenue, Additions			4,100,000	$ 1,000,000.0
Revolving Loan Agreement [Member] | Revolving Credit Facility [Member]
Related Party Transaction [Line Items]
Revolving Loan Agreement, Maximum Borrowing Capacity							$ 50,000,000.0
Revolving Loan Agreement, Fair Value of Amount Outstanding			$ 0
Revolving Loan Agreement [Member] | Lender One [Member] | Revolving Credit Facility [Member]
Related Party Transaction [Line Items]
Revolving Loan Agreement, Maximum Borrowing Capacity							$ 25,000,000.0
LIBO Rate [Member] | Revolving Loan Agreement [Member] | Revolving Credit Facility [Member]
Related Party Transaction [Line Items]
Basis spread on variable rate		2.50%