Business Segments

12 Months Ended

Jan. 01, 2022

Segment Reporting [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

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

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

Feed Ingredients

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

Food Ingredients

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

Fuel Ingredients

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

Business Segments (in thousands):

	Feed Ingredients		Food Ingredients		Fuel Ingredients		Corporate		Total
Fiscal Year Ended January 1, 2022
Net Sales	$	3,039,500	$	1,271,629	$	430,240	$	—	$	4,741,369
Cost of sales and operating expenses	2,206,248		979,232		313,905		—		3,499,385
Gross Margin	833,252		292,397		116,335		—		1,241,984
Gain on sale of assets	(550)		(88)		(320)		—		(958)
Selling, general and administrative expense	220,078		97,555		16,999		56,906		391,538
Restructuring and asset impairment charges	—		—		778		—		778
Depreciation and amortization	218,942		60,929		25,436		11,080		316,387
Acquisition and integration costs	—		—		—		1,396		1,396
Equity in net income of Diamond Green Diesel	—		—		351,627		—		351,627
Segment operating income/(loss)	394,782		134,001		425,069		(69,382)		884,470
Equity in net income of other unconsolidated subsidiaries	5,753		—		—		—		5,753
Segment income/(loss)	400,535		134,001		425,069		(69,382)		890,223
Total other expense									(68,827)
Income before income taxes									$	821,396
Segment assets at January 1, 2022	$	2,714,528	$	1,205,217	$	1,658,892	$	555,091	$	6,133,728

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

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

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

	January 1, 2022		January 2, 2021		December 28, 2019
Capital expenditures:
Feed Ingredients	$	187,445	$	176,530	$	229,415
Food Ingredients	54,799		68,250		85,501
Fuel Ingredients	26,078		30,638		23,964
Corporate Activities	5,804		4,697		20,618
Total (a)	$	274,126	$	280,115	$	359,498

(a)    Excludes capital assets acquired by acquisition in fiscal 2020 of approximately $18.4 million.

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

	FY 2021		FY 2020
	Long-Lived Assets		Long-Lived Assets
North America	$	3,564,765	$	3,056,047
Europe	1,259,018		1,357,070
China	129,767		127,549
South America	77,758		74,720
Other	13,406		10,951
Total	$	5,044,714	$	4,626,337