Other Comprehensive Income (Tables)

9 Months Ended

Oct. 02, 2021

Equity [Abstract]

Schedule of Comprehensive Income (Loss)

The components of other comprehensive income/(loss) and the related tax impacts for the three and nine months ended October 2, 2021 and September 26, 2020 are as follows (in thousands):

	Three Months Ended
	Before-Tax				Tax (Expense)				Net-of-Tax
	Amount				or Benefit				Amount
	October 2, 2021		September 26, 2020		October 2, 2021		September 26, 2020		October 2, 2021		September 26, 2020
Defined benefit pension plans
Amortization of prior service (cost)/benefit	$	5	$	9	$	(1)	$	(2)	$	4	$	7
Amortization of actuarial loss	1,052		854		(265)		(213)		787		641
Total defined benefit pension plans	1,057		863		(266)		(215)		791		648
Soybean meal option derivatives
Reclassified to earnings	(19)		—		5		—		(14)		—
Activity recognized in other comprehensive income/(loss)	(12)		—		3		—		(9)		—
Total soybean meal option derivatives	(31)		—		8		—		(23)		—
Corn option derivatives
Reclassified to earnings	4,217		229		(1,072)		(57)		3,145		172
Activity recognized in other comprehensive income/(loss)	647		(3,588)		(164)		898		483		(2,690)
Total corn option derivatives	4,864		(3,359)		(1,236)		841		3,628		(2,518)
Heating oil derivatives
Activity recognized in other comprehensive income/(loss)	(8,699)		1,992		2,209		(498)		(6,490)		1,494
Total heating oil derivatives	(8,699)		1,992		2,209		(498)		(6,490)		1,494
Foreign exchange derivatives
Reclassified to earnings	(1,889)		(5,317)		565		385		(1,324)		(4,932)
Activity recognized in other comprehensive income/(loss)	(5,397)		7,486		2,057		(1,142)		(3,340)		6,344
Total foreign exchange derivatives	(7,286)		2,169		2,622		(757)		(4,664)		1,412
Foreign currency translation	(33,689)		39,237		786		(1,383)		(32,903)		37,854
Other comprehensive income/(loss)	$	(43,784)	$	40,902	$	4,123	$	(2,012)	$	(39,661)	$	38,890

	Nine Months Ended
	Before-Tax				Tax (Expense)				Net-of-Tax
	Amount				or Benefit				Amount
	October 2, 2021		September 26, 2020		October 2, 2021		September 26, 2020		October 2, 2021		September 26, 2020
Defined benefit pension plans
Amortization of prior service (cost)/benefit	$	16	$	25	$	(4)	$	(6)	$	12	$	19
Amortization of actuarial loss	3,157		2,562		(794)		(638)		2,363		1,924
Total defined benefit pension plans	3,173		2,587		(798)		(644)		2,375		1,943
Soybean meal option derivatives
Reclassified to earnings	(267)		—		68		—		(199)		—
Activity recognized in other comprehensive income/(loss)	(131)		—		33		—		(98)		—
Total soybean meal option derivatives	(398)		—		101		—		(297)		—
Corn option derivatives
Reclassified to earnings	14,880		1,168		(3,780)		(292)		11,100		876
Activity recognized in other comprehensive income/(loss)	(11,566)		(1,939)		2,938		485		(8,628)		(1,454)
Total corn option derivatives	3,314		(771)		(842)		193		2,472		(578)
Heating oil derivatives
Activity recognized in other comprehensive income/(loss)	(7,149)		4,565		1,815		(1,141)		(5,334)		3,424
Total heating oil derivatives	(7,149)		4,565		1,815		(1,141)		(5,334)		3,424
Foreign exchange derivatives
Reclassified to earnings	(2,503)		(10,564)		884		1,690		(1,619)		(8,874)
Activity recognized in other comprehensive income/(loss)	(4,482)		8,112		1,582		(1,298)		(2,900)		6,814
Total foreign exchange derivatives	(6,985)		(2,452)		2,466		392		(4,519)		(2,060)
Foreign currency translation	(50,866)		(5,798)		2,125		(1,445)		(48,741)		(7,243)
Other comprehensive income/(loss)	$	(58,911)	$	(1,869)	$	4,867	$	(2,645)	$	(54,044)	$	(4,514)

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 nine months ended October 2, 2021 and September 26, 2020 as follows (in thousands):

	Three Months Ended				Nine Months Ended
	October 2, 2021		September 26, 2020		October 2, 2021		September 26, 2020		Statement of Operations Classification
Derivative instruments
Soybean meal derivatives	$	19	$	—	$	267	$	—	Net sales
Foreign exchange contracts	1,889		5,317		2,503		10,564		Net sales
Corn option derivatives	(4,217)		(229)		(14,880)		(1,168)		Cost of sales and operating expenses
	(2,309)		5,088		(12,110)		9,396		Total before tax
	502		(328)		2,828		(1,398)		Income taxes
	(1,807)		4,760		(9,282)		7,998		Net of tax
Defined benefit pension plans
Amortization of prior service cost	$	(5)	$	(9)	$	(16)	$	(25)	(a)
Amortization of actuarial loss	(1,052)		(854)		(3,157)		(2,562)		(a)
	(1,057)		(863)		(3,173)		(2,587)		Total before tax
	266		215		798		644		Income taxes
	(791)		(648)		(2,375)		(1,943)		Net of tax
Total reclassifications	$	(2,598)	$	4,112	$	(11,657)	$	6,055	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 October 2, 2021 as follows (in thousands):

	Nine Months Ended October 2, 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	(48,741)		(16,960)		—		(65,701)
Amounts reclassified from accumulated other comprehensive loss	—		9,282		2,375		11,657
Net current-period other comprehensive income/(loss)	(48,741)		(7,678)		2,375		(54,044)
Noncontrolling interest	2,876		—		—		2,876
Accumulated Other Comprehensive loss October 2, 2021, attributable to Darling, net of tax	$	(262,519)	$	(10,892)	$	(35,942)	$	(309,353)