Other Comprehensive Income (Tables)

6 Months Ended

Jul. 03, 2021

Equity [Abstract]

Schedule of Comprehensive Income (Loss)

The components of other comprehensive income/(loss) and the related tax impacts for the three and six months ended July 3, 2021 and June 27, 2020 are as follows (in thousands):

	Three Months Ended
	Before-Tax				Tax (Expense)				Net-of-Tax
	Amount				or Benefit				Amount
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Defined benefit pension plans
Amortization of prior service (cost)/benefit	$	6	$	8	$	(2)	$	(2)	$	4	$	6
Amortization of actuarial loss	1,053		854		(265)		(213)		788		641
Total defined benefit pension plans	1,059		862		(267)		(215)		792		647
Soybean meal option derivatives
Reclassified to earnings	32		—		(8)		—		24		—
Activity recognized in other comprehensive income/(loss)	(55)		—		14		—		(41)		—
Total soybean meal option derivatives	(23)		—		6		—		(17)		—
Corn option derivatives
Reclassified to earnings	6,743		639		(1,712)		(160)		5,031		479
Activity recognized in other comprehensive income/(loss)	(7,220)		1,768		1,833		(443)		(5,387)		1,325
Total corn option derivatives	(477)		2,407		121		(603)		(356)		1,804
Heating oil derivatives
Activity recognized in other comprehensive income/(loss)	(3,094)		(11,921)		786		2,981		(2,308)		(8,940)
Total heating oil derivatives	(3,094)		(11,921)		786		2,981		(2,308)		(8,940)
Foreign exchange derivatives
Reclassified to earnings	(838)		(4,835)		394		1,176		(444)		(3,659)
Activity recognized in other comprehensive income/(loss)	11,372		13,546		(3,977)		(4,208)		7,395		9,338
Total foreign exchange derivatives	10,534		8,711		(3,583)		(3,032)		6,951		5,679
Foreign currency translation	22,560		20,852		(176)		(713)		22,384		20,139
Other comprehensive income/(loss)	$	30,559	$	20,911	$	(3,113)	$	(1,582)	$	27,446	$	19,329

	Six Months Ended
	Before-Tax				Tax (Expense)				Net-of-Tax
	Amount				or Benefit				Amount
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Defined benefit pension plans
Amortization of prior service (cost)/benefit	$	11	$	16	$	(3)	$	(4)	$	8	$	12
Amortization of actuarial loss	2,105		1,708		(529)		(425)		1,576		1,283
Total defined benefit pension plans	2,116		1,724		(532)		(429)		1,584		1,295
Soybean meal option derivatives
Reclassified to earnings	(248)		—		63		—		(185)		—
Activity recognized in other comprehensive income/(loss)	(119)		—		30		—		(89)		—
Total soybean meal option derivatives	(367)		—		93		—		(274)		—
Corn option derivatives
Reclassified to earnings	10,663		939		(2,708)		(235)		7,955		704
Activity recognized in other comprehensive income/(loss)	(12,213)		1,649		3,102		(413)		(9,111)		1,236
Total corn option derivatives	(1,550)		2,588		394		(648)		(1,156)		1,940
Heating oil derivatives
Activity recognized in other comprehensive income/(loss)	1,550		2,573		(394)		(643)		1,156		1,930
Total heating oil derivatives	1,550		2,573		(394)		(643)		1,156		1,930
Foreign exchange derivatives
Reclassified to earnings	(614)		(5,247)		319		1,305		(295)		(3,942)
Activity recognized in other comprehensive income/(loss)	915		626		(475)		(156)		440		470
Total foreign exchange derivatives	301		(4,621)		(156)		1,149		145		(3,472)
Foreign currency translation	(17,177)		(45,035)		1,339		(62)		(15,838)		(45,097)
Other comprehensive income/(loss)	$	(15,127)	$	(42,771)	$	744	$	(633)	$	(14,383)	$	(43,404)

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 and six months ended July 3, 2021 and June 27, 2020 as follows (in thousands):

	Three Months Ended				Six Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020		Statement of Operations Classification
Derivative instruments
Soybean meal derivatives	$	(32)	$	—	$	248	$	—	Net sales
Foreign exchange contracts	838		4,835		614		5,247		Net sales
Corn option derivatives	(6,743)		(639)		(10,663)		(939)		Cost of sales and operating expenses
	(5,937)		4,196		(9,801)		4,308		Total before tax
	1,326		(1,016)		2,326		(1,070)		Income taxes
	(4,611)		3,180		(7,475)		3,238		Net of tax
Defined benefit pension plans
Amortization of prior service cost	$	(6)	$	(8)	$	(11)	$	(16)	(a)
Amortization of actuarial loss	(1,053)		(854)		(2,105)		(1,708)		(a)
	(1,059)		(862)		(2,116)		(1,724)		Total before tax
	267		215		532		429		Income taxes
	(792)		(647)		(1,584)		(1,295)		Net of tax
Total reclassifications	$	(5,403)	$	2,533	$	(9,059)	$	1,943	Net of tax

(a)These items are included in the computation of net periodic pension cost. See Note 12 (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 July 3, 2021 as follows (in thousands):

	Six Months Ended July 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	(15,838)		(7,604)		—		(23,442)
Amounts reclassified from accumulated other comprehensive loss	—		7,475		1,584		9,059
Net current-period other comprehensive income/(loss)	(15,838)		(129)		1,584		(14,383)
Noncontrolling interest	1,938		—		—		1,938
Accumulated Other Comprehensive loss July 3, 2021, attributable to Darling, net of tax	$	(228,678)	$	(3,343)	$	(36,733)	$	(268,754)