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 2, 2022
	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 161,514,066 shares of common stock, $0.01 par value, outstanding at May 5, 2022.

DARLING INGREDIENTS INC. AND SUBSIDIARIES

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED APRIL 2, 2022

TABLE OF CONTENTS   

		Page No.
	PART I:  FINANCIAL INFORMATION
Item 1.	FINANCIAL STATEMENTS
	Consolidated Balance Sheets	3
	April 2, 2022 (unaudited) and January 1, 2022
	Consolidated Statements of Operations (unaudited)	4
	Three Months Ended April 2, 2022 and April 3, 2021
	Consolidated Statements of Comprehensive Income/(Loss) (unaudited)	5
	Three Months Ended April 2, 2022 and April 3, 2021
	Consolidated Statements of Stockholders' Equity (unaudited)	6
	Three Months Ended April 2, 2022 and April 3, 2021
	Consolidated Statements of Cash Flows (unaudited)	7
	Three Months Ended April 2, 2022 and April 3, 2021
	Notes to Consolidated Financial Statements (unaudited)	8
Item 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	25
Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	41
Item 4.	CONTROLS AND PROCEDURES	43
	PART II:  OTHER INFORMATION
Item 1.	LEGAL PROCEEDINGS	44
Item 1A.	RISK FACTORS	44
Item 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	44
Item 6.	EXHIBITS	44
	Signatures	46

2

DARLING INGREDIENTS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

April 2, 2022 and January 1, 2022

(in thousands, except share data)

	April 2, 2022		January 1, 2022
ASSETS	(unaudited)
Current assets:
Cash and cash equivalents	$	99,460	$	68,906
Restricted cash	100		166
Accounts receivable, less allowance for bad debts of $9,161 at    April 2, 2022 and $8,196 at January 1, 2022	517,783		469,092
Inventories	491,694		457,465
Prepaid expenses	60,562		53,711
Income taxes refundable	25,047		1,075
Other current assets	64,387		38,599
Total current assets	1,259,033		1,089,014
Property, plant and equipment, less accumulated depreciation of $1,894,760 at    April 2, 2022 and $1,855,420 at January 1, 2022	1,867,880		1,840,080
Intangible assets, less accumulated amortization of $576,357 at    April 2, 2022 and $560,470 at January 1, 2022	409,627		397,801
Goodwill	1,236,524		1,219,116
Investment in unconsolidated subsidiaries	1,563,840		1,349,247
Operating lease right-of-use assets	165,128		155,464
Other assets	97,709		66,795
Deferred income taxes	15,875		16,211
	$	6,615,616	$	6,133,728
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	35,337	$	24,407
Accounts payable, principally trade	351,253		307,118
Income taxes payable	25,117		32,310
Current operating lease liabilities	41,649		38,168
Accrued expenses	360,058		350,681
Total current liabilities	813,414		752,684
Long-term debt, net of current portion	1,677,925		1,438,974
Long-term operating lease liabilities	125,242		120,314
Other non-current liabilities	109,647		111,029
Deferred income taxes	393,738		362,942
Total liabilities	3,119,966		2,785,943
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 250,000,000 shares authorized; 173,384,469 and         171,734,603 shares issued at April 2, 2022 and January 1, 2022,         respectively	1,734		1,717
Additional paid-in capital	1,637,930		1,627,816
Treasury stock, at cost; 11,880,712 and 10,942,599 shares at        April 2, 2022 and January 1, 2022, respectively	(438,906)		(374,721)
Accumulated other comprehensive loss	(311,369)		(321,690)
Retained earnings	2,535,891		2,347,838
Total Darling's stockholders’ equity	3,425,280		3,280,960
Noncontrolling interests	70,370		66,825
Total stockholders' equity	3,495,650		3,347,785
	$	6,615,616	$	6,133,728

 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 2, 2022 and April 3, 2021

(in thousands, except per share data)

(unaudited)

	Three Months Ended
	April 2, 2022		April 3, 2021
Net sales	$	1,366,334	$	1,046,716
Costs and expenses:
Cost of sales and operating expenses	1,020,577		772,784
Gain on sale of assets	(389)		(64)
Selling, general and administrative expenses	102,032		97,398
Restructuring and asset impairment charges	—		778
Acquisition and integration costs	3,773		—
Depreciation and amortization	79,246		78,534
Total costs and expenses	1,205,239		949,430
Equity in net income of Diamond Green Diesel	71,804		102,225
Operating income	232,899		199,511
Other expense:
Interest expense	(15,603)		(16,428)
Foreign currency loss	(1,100)		(410)
Other expense, net	(742)		(1,159)
Total other expense	(17,445)		(17,997)
Equity in net income of other unconsolidated subsidiaries	1,360		612
Income before income taxes	216,814		182,126
Income tax expense	26,083		28,708
Net income	190,731		153,418
Net income attributable to noncontrolling interests	(2,678)		(1,652)
Net income attributable to Darling	$	188,053	$	151,766
Basic income per share	$	1.17	$	0.93
Diluted income per share	$	1.14	$	0.90

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 2, 2022 and April 3, 2021

(in thousands)

(unaudited)

	Three Months Ended
	April 2, 2022		April 3, 2021
Net income	$	190,731	$	153,418
Other comprehensive income/(loss), net of tax:
Foreign currency translation	3,382		(38,222)
Pension adjustments	429		792
Soybean meal derivative adjustments	(240)		(257)
Corn option derivative adjustments	(5,056)		(800)
Heating oil derivative adjustments	(16,762)		3,464
Foreign exchange derivative adjustments	29,435		(6,806)
Total other comprehensive income/(loss), net of tax	11,188		(41,829)
Total comprehensive income	$	201,919	$	111,589
Comprehensive income attributable to noncontrolling interests	3,545		3,186
Comprehensive income attributable to Darling	$	198,374	$	108,403

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 2, 2022 and April 3, 2021

(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 1, 2022	160,792,004	$	1,717	$	1,627,816	$	(374,721)	$	(321,690)	$	2,347,838	$	3,280,960	$	66,825	$	3,347,785
Net income	—	—		—		—		—		188,053		188,053		2,678		190,731
Pension liability adjustments, net of tax	—	—		—		—		429		—		429		—		429
Heating oil derivative adjustments, net of tax	—	—		—		—		(16,762)		—		(16,762)		—		(16,762)
Corn option derivative adjustments, net of tax	—	—		—		—		(5,056)		—		(5,056)		—		(5,056)
Soybean meal derivative adjustments, net of tax	—	—		—		—		(240)		—		(240)		—		(240)
Foreign exchange derivative adjustments, net of tax	—	—		—		—		29,435		—		29,435		—		29,435
Foreign currency translation adjustments	—	—		—		—		2,515		—		2,515		867		3,382
Issuance of non-vested stock	5,000	—		18		—		—		—		18		—		18
Stock-based compensation	—	—		6,305		—		—		—		6,305		—		6,305
Treasury stock	(938,113)	—		—		(64,185)		—		—		(64,185)		—		(64,185)
Issuance of common stock	1,644,866	17		3,791		—		—		—		3,808		—		3,808
Balances at April 2, 2022	161,503,757	$	1,734	$	1,637,930	$	(438,906)	$	(311,369)	$	2,535,891	$	3,425,280	$	70,370	$	3,495,650

	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

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 2, 2022 and April 3, 2021

(in thousands)

(unaudited)

	April 2, 2022		April 3, 2021
Cash flows from operating activities:
Net Income	$	190,731	$	153,418
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	79,246		78,534
Gain on sale of assets	(389)		(64)
Asset impairment	—		138
Deferred taxes	23,826		11,809
Decrease in long-term pension liability	(269)		(448)
Stock-based compensation expense	6,323		8,415
Write-off deferred loan costs	—		598
Deferred loan cost amortization	1,131		1,040
Equity in net income of Diamond Green Diesel and other unconsolidated subsidiaries	(73,164)		(102,837)
Distributions of earnings from Diamond Green Diesel and other unconsolidated subsidiaries	—		57
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	(41,317)		10,721
Income taxes refundable/payable	(31,224)		(760)
Inventories and prepaid expenses	(42,891)		(27,188)
Accounts payable and accrued expenses	58,964		(13,462)
Other	(18,775)		18,834
Net cash provided by operating activities	152,192		138,805
Cash flows from investing activities:
Capital expenditures	(71,618)		(60,751)
Acquisitions, net of cash acquired	(59,003)		(340)
Investment in Diamond Green Diesel	(164,750)		—
Investment in other unconsolidated subsidiaries	—		(4,449)
Gross proceeds from disposal of property, plant and equipment and other assets	974		1,629
Payments related to routes and other intangibles	(100)		(347)
Net cash used in investing activities	(294,497)		(64,258)
Cash flows from financing activities:
Proceeds from long-term debt	9,657		9,262
Payments on long-term debt	(12,128)		(60,444)
Borrowings from revolving credit facility	369,902		111,000
Payments on revolving credit facility	(134,000)		(97,000)
Net cash overdraft financing	9,830		499
Deferred loan costs	(1,810)		—
Issuance of common stock	—		50
Repurchase of common stock	(17,189)		—
Minimum withholding taxes paid on stock awards	(43,351)		(42,268)
Distributions to noncontrolling interests	—		(2,143)
Net cash provided/(used) in financing activities	180,911		(81,044)
Effect of exchange rate changes on cash	(8,118)		(3,847)
Net increase/(decrease) in cash, cash equivalents and restricted cash	30,488		(10,344)
Cash, cash equivalents and restricted cash at beginning of period	69,072		81,720
Cash, cash equivalents and restricted cash at end of period	$	99,560	$	71,376

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

7

DARLING INGREDIENTS INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

April 2, 2022

(unaudited)

(1)General

The accompanying consolidated financial statements for the three month periods ended April 2, 2022 and April 3, 2021, 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 1, 2022. 

(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 2, 2022, and include the 13 weeks ended April 2, 2022, and the 13 weeks ended April 3, 2021.

(c)    Accounts Receivable Factoring

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 2, 2022 and April 3, 2021, the Company sold approximately $126.3 million and $106.9 million of its trade receivables and incurred approximately $0.4 million and $0.3 million in fees, which are recorded as interest expense, respectively.

(d)    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

8

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.

(e)    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 continuing global COVID-19 pandemic, and related government-imposed movement restrictions and initiatives implemented to reduce the global transmission of COVID-19, as well as the Russia-Ukraine war, 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 2, 2022, 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 or the Russia-Ukraine war.

(f)    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 2, 2022					April 3, 2021
	Income		Shares	Per Share		Income		Shares	Per Share
Basic:
Net Income attributable to Darling	$	188,053	161,396	$	1.17	$	151,766	162,925	$	0.93
Diluted:
Effect of dilutive securities:
Add: Option shares in the money and dilutive effect of non-vested stock awards			3,976					5,733
Less: Pro forma treasury shares			(771)					(909)
Diluted:
Net income attributable to Darling	$	188,053	164,601	$	1.14	$	151,766	167,749	$	0.90

For the three months ended April 2, 2022 and April 3, 2021, respectively, no outstanding stock options were excluded from diluted income per common share as the effect was antidilutive. For the three months ended April 2, 2022 and April 3, 2021, respectively, 194,546 and 162,896 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

9

(“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 expansion of the existing facility.

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

(in thousands)	March 31, 2022		December 31, 2021
Assets:
Total current assets	$	950,802	$	686,294
Property, plant and equipment, net	2,934,686		2,710,747
Other assets	59,196		51,514
Total assets	$	3,944,684	$	3,448,555
Liabilities and members' equity:
Total current portion of long term debt	$	165,356	$	165,092
Total other current liabilities	367,478		295,860
Total long term debt	340,591		344,309
Total other long term liabilities	17,328		17,531
Total members' equity	3,053,931		2,625,763
Total liabilities and members' equity	$	3,944,684	$	3,448,555

	Three Months Ended
(in thousands)	March 31, 2022		March 31, 2021
Revenues:
Operating revenues	$	980,692	$	431,633
Expenses:
Total costs and expenses less depreciation, amortization and accretion expense	807,572		215,234
Depreciation, amortization and accretion expense	26,492		11,687
Total costs and expenses	834,064		226,921
Operating income	146,628		204,712
Other income (expense)	(11)		58
Interest and debt expense, net	(3,009)		(320)
Net income	$	143,608	$	204,450

As of April 2, 2022, under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $1,528.7 million on the consolidated balance sheet. The Company has recorded equity in net income from the DGD Joint Venture of approximately $71.8 million and $102.2 million for the three months ended April 2, 2022 and April 3, 2021, respectively. In December 2019, the blender tax credits were extended for calendar years 2020, 2021 and 2022. For the three months ended March 31, 2022 and March 31, 2021, the DGD Joint Venture recorded approximately $155.8 million and $79.0 million of blenders tax credits, respectively. The blenders tax credits are recorded as a reduction of cost of sales by the DGD Joint Venture. In the three months ended April 2, 2022 and April 3, 2021, respectively, the Company made $164.75 million and no capital contributions to the DGD Joint Venture. In the three months ended April 2, 2022 and 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)    Acquisitions

On February 25, 2022, a wholly-owned international subsidiary of the Company acquired all of the shares of Group Op de Beeck, a Belgium digester, organic and industrial waste processing company, that is now included in our Fuel

10

Ingredients segment, for an initially estimated purchase price of approximately $91.7 million, plus or minus various closing adjustments in accordance with the stock purchase agreement. After estimated purchase price adjustments related to future estimated construction, net debt and working capital, the Company paid approximately $71.3 million in cash consideration. The Company recorded assets and liabilities consisting of property, plant and equipment of approximately $27.8 million, intangible assets of approximately $27.1 million, goodwill of approximately $25.5 million and other net liabilities of approximately $(9.1) million including working capital and net debt. Such amounts have been recorded on a preliminary basis pending finalization of future construction, actual net debt and working capital that is expected to occur within the next six months. The Company does not expect material changes to these pending amounts. The identifiable intangibles have a weighted average life of 15 years.

Additionally, the Company completed another immaterial acquisition in the first quarter of fiscal 2022.

(5)    Inventories

A summary of inventories follows (in thousands):

	April 2, 2022		January 1, 2022
Finished product	$	304,644	$	272,995
Work in process	80,955		81,158
Raw material	47,062		48,186
Supplies and other	59,033		55,126
	$	491,694	$	457,465

(6)    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 2, 2022		January 1, 2022
Indefinite Lived Intangible Assets:
Trade names	$	52,502	$	53,133
	52,502		53,133
Finite Lived Intangible Assets:
Routes	365,933		337,399
Permits	475,491		475,520
Non-compete agreements	645		645
Trade names	65,675		65,675
Royalty, consulting, land use rights and leasehold	25,738		25,899
	933,482		905,138
Accumulated Amortization:
Routes	(175,450)		(169,984)
Permits	(344,672)		(336,020)
Non-compete agreements	(469)		(441)
Trade names	(47,662)		(46,028)
Royalty, consulting, land use rights and leasehold	(8,104)		(7,997)
	(576,357)		(560,470)
Total Intangible assets, less accumulated amortization	$	409,627	$	397,801

Gross intangible assets changed due to acquisitions in the first quarter of fiscal 2022 by approximately $28.0 million and the remaining change was from foreign currency translation and retirements. Amortization expense for the three months ended April 2, 2022 and April 3, 2021, was approximately $16.5 million and $17.0 million, respectively.

(7)    Goodwill

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

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	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Balance at January 1, 2022
Goodwill	$	814,863	$	332,866	$	119,342	$	1,267,071
Accumulated impairment losses	(15,914)		(461)		(31,580)		(47,955)
	798,949		332,405		87,762		1,219,116
Goodwill acquired during year	—		—		25,892		25,892
Foreign currency translation	(802)		(5,267)		(2,415)		(8,484)
Balance at April 2, 2022
Goodwill	814,061		327,599		142,819		1,284,479
Accumulated impairment losses	(15,914)		(461)		(31,580)		(47,955)
	$	798,147	$	327,138	$	111,239	$	1,236,524

(8)    Accrued Expenses

Accrued expenses consist of the following (in thousands):

	April 2, 2022		January 1, 2022
Compensation and benefits	$	101,048	$	123,180
Accrued ad valorem, and franchise taxes	13,610		20,140
Accrued operating expenses	86,314		81,200
Other accrued expense	159,086		126,161
	$	360,058	$	350,681

(9)    Debt

Debt consists of the following (in thousands):

	April 2, 2022		January 1, 2022
Amended Credit Agreement:
Revolving Credit Facility ($8.0 million denominated in C$ at April 2, 2022)	$	396,007	$	160,000
Term Loan B	200,000		200,000
Less unamortized deferred loan costs	(1,774)		(1,928)
Carrying value Term Loan B	198,226		198,072
5.25% Senior Notes due 2027 with effective interest of 5.47%	500,000		500,000
Less unamortized deferred loan costs	(4,753)		(4,959)
Carrying value 5.25% Senior Notes due 2027	495,247		495,041
3.625% Senior Notes due 2026 - Denominated in euro with effective interest of 3.83%	568,972		582,980
Less unamortized deferred loan costs - Denominated in euro	(4,647)		(5,031)
Carrying value 3.625% Senior Notes due 2026	564,325		577,949
Other Notes and Obligations	59,457		32,319
	1,713,262		1,463,381
Less Current Maturities	35,337		24,407
	$	1,677,925	$	1,438,974

As of April 2, 2022, the Company had outstanding debt under the Company's 3.625% Senior Notes due 2026 denominated in euros of €515.0 million. In addition, at April 2, 2022, the Company had finance lease obligations denominated in euros of approximately €4.3 million.

As of April 2, 2022, the Company had outstanding borrowings under the Company's amended credit agreement denominated in Canadian dollars of C$10.0 million.

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As of April 2, 2022, the Company had other notes and obligations of $59.5 million that consist of various overdraft facilities of approximately $9.9 million, a China working capital line of credit of approximately $20.5 million and other debt of approximately $29.1 million.

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 March 2, 2022, the Company, and certain of its subsidiaries entered into an amendment (the "Eighth Amendment") with its lenders to the Amended Credit Agreement. Among other things, the Eighth Amendment (a) added a new delayed draw incremental term facility (the “term A-2 facility”) and new incremental Term Loans pursuant thereto, in an aggregate principal amount of up to $500.0 million, which is available to the Company for general corporate purposes, including acquisitions and capital expenditures, and will mature on December 9, 2026 and (b) updated and modified certain other terms and provisions of the Amended Credit Agreement to reflect the addition of the term A-2 facility to the Amended Credit Agreement.

The interest rate applicable to any borrowings under the revolving loan facility will equal the adjusted term secured overnight financing rate (SOFR) for U.S. dollar borrowings or the adjusted euro interbank rate (EURIBOR) for euro borrowings or the adjusted daily simple Sterling overnight index average (SONIA) for British pound borrowings or CDOR for Canadian dollar borrowings plus 1.25% per annum or base rate or the adjusted term SOFR for U.S. dollar borrowings or Canadian prime rate for Canadian dollar borrowings or the adjusted daily simple European short term rate (ESTR) for euro borrowings or the adjusted daily SONIA rate for British pound borrowings plus 0.25% per annum subject to certain step-ups or step-downs based on the Company's total leverage ratio. The interest rate applicable to any borrowing under the delayed draw term A-1 facility will equal the adjusted term SOFR plus a minimum of 1.50% per annum subject to certain step-ups based on the Company's total leverage ratio. The interest rate applicable to any borrowing under the delayed draw term A-2 facility will equal the adjusted term SOFR plus a minimum of 1.00% per annum subject to certain 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%.

As of April 2, 2022, the Company had $70.0 million outstanding under the revolver at base rate plus a margin of 0.25% per annum for a total of 3.75% per annum and $318.0 million outstanding under the revolver as SOFR plus a margin of 1.25% per annum for a total of 1.625%. The Company had $200.0 million outstanding under the term loan B facility at LIBOR plus a margin of 2.00% per annum for a total of 2.25% per annum. The Company had C$10.0 million outstanding under the revolver at CDOR plus a margin of 1.25% per annum for a total of 2.12%. As of April 2, 2022, the Company had revolving loan facility availability of $1,049.7 million, availability on a delayed draw term A-1 facility of $400.0 million and availability on a delayed draw term A-2 facility of $500.0 million under the Amended Credit Agreement taking into account amounts borrowed, ancillary facilities of $50.4 million 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 $11.8 million at April 2, 2022. The Company capitalized approximately $1.3 million of deferred loan costs as of April 2, 2022 in connection with the Eighth Amendment.

As of April 2, 2022, 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% Senior Notes due 2027 and the 3.625% Senior Notes due 2026.

(10)    Income Taxes

The Company has provided income taxes for the three month periods ended April 2, 2022 and April 3, 2021, based on its estimate of the effective tax rate for the entire 2022 and 2021 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.

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 2, 2022 and April 3, 2021, the Company had $11.3 million and $5.6 million, respectively of gross unrecognized tax benefits and $1.2 million and $0.4 million,

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respectively of related accrued interest and penalties. The Company's gross unrecognized tax benefits are not expected to decrease significantly within the next twelve months.

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 components of other comprehensive income/(loss) and the related tax impacts for the three months ended April 2, 2022 and April 3, 2021 are as follows (in thousands):

	Three Months Ended
	Before-Tax				Tax (Expense)				Net-of-Tax
	Amount				or Benefit				Amount
	April 2, 2022		April 3, 2021		April 2, 2022		April 3, 2021		April 2, 2022		April 3, 2021
Defined benefit pension plans
Amortization of prior service (cost)/benefit	5		5		(1)		(1)		4		4
Amortization of actuarial loss	570		1,052		(145)		(264)		425		788
Total defined benefit pension plans	575		1,057		(146)		(265)		429		792
Soybean meal option derivatives
Reclassified to earnings	(441)		(280)		112		71		(329)		(209)
Activity recognized in other comprehensive income/(loss)	120		(64)		(31)		16		89		(48)
Total soybean meal option derivatives	(321)		(344)		81		87		(240)		(257)
Corn option derivatives
Reclassified to earnings	4,107		3,920		(1,043)		(996)		3,064		2,924
Activity recognized in other comprehensive income/(loss)	(10,885)		(4,993)		2,765		1,269		(8,120)		(3,724)
Total corn option derivatives	(6,778)		(1,073)		1,722		273		(5,056)		(800)
Heating oil derivatives
Activity recognized in other comprehensive income/(loss)	(22,470)		4,644		5,708		(1,180)		(16,762)		3,464
Total heating oil derivatives	(22,470)		4,644		5,708		(1,180)		(16,762)		3,464
Foreign exchange derivatives
Reclassified to earnings	(1,071)		224		360		(75)		(711)		149
Activity recognized in other comprehensive income/(loss)	45,422		(10,457)		(15,276)		3,502		30,146		(6,955)
Total foreign exchange derivatives	44,351		(10,233)		(14,916)		3,427		29,435		(6,806)
Foreign currency translation	2,661		(39,737)		721		1,515		3,382		(38,222)
Other comprehensive income/(loss)	$	18,018	$	(45,686)	$	(6,830)	$	3,857	$	11,188	$	(41,829)

The following table presents the amounts reclassified out of each component of other comprehensive income/(loss), net of tax for the three ended April 2, 2022 and April 3, 2021 as follows (in thousands):

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	Three Months Ended
	April 2, 2022		April 3, 2021		Statement of Operations Classification
Derivative instruments
Soybean meal derivatives	$	441	$	280	Net sales
Foreign exchange contracts	1,071		(224)		Net sales
Corn option derivatives	(4,107)		(3,920)		Cost of sales and operating expenses
	(2,595)		(3,864)		Total before tax
	571		1,000		Income taxes
	(2,024)		(2,864)		Net of tax
Defined benefit pension plans
Amortization of prior service cost	$	(5)	$	(5)	(a)
Amortization of actuarial loss	(570)		(1,052)		(a)
	(575)		(1,057)		Total before tax
	146		265		Income taxes
	(429)		(792)		Net of tax
Total reclassifications	$	(2,453)	$	(3,656)	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 2, 2022 as follows (in thousands):

	Three Months Ended April 2, 2022
	Foreign Currency		Derivative		Defined Benefit
	Translation		Instruments		Pension Plans		Total
Accumulated Other Comprehensive loss January 1, 2022, attributable to Darling, net of tax	$	(289,586)	$	(6,456)	$	(25,648)	$	(321,690)
Other comprehensive loss before reclassifications	3,382		5,353		—		8,735
Amounts reclassified from accumulated other comprehensive loss	—		2,024		429		2,453
Net current-period other comprehensive income/(loss)	3,382		7,377		429		11,188
Noncontrolling interest	867		—		—		867
Accumulated Other Comprehensive loss April 2, 2022, attributable to Darling, net of tax	$	(287,071)	$	921	$	(25,219)	$	(311,369)

(12)    Stockholders' Equity

Fiscal 2022 Long-Term Incentive Opportunity Awards (2022 LTIP). On January 3, 2022, the Compensation Committee (the “Committee”) of the Company's Board of Directors adopted the 2022 LTIP pursuant to which they awarded certain of the Company's key employees, 82,791 restricted stock units and 115,615 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 gross investment (“ROGI”), as calculated in accordance with the terms of the award agreement, relative to the average ROGI of the Company's performance peer group companies, with the earned award to be determined in the first quarter of fiscal 2025, 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 (up to 225%) depending on the Company's ROGI 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 December 9, 2021, the Company’s Board of Directors approved the extension for an additional two years of its previously announced share repurchase program and refreshed and increased the amount of the program up to an aggregate of $500.0 million of the Company's Common Stock depending on market conditions. During the first three months of fiscal 2022, $17.2 million of common stock was repurchased under the repurchase program. As of April 2, 2022, the Company had approximately $482.8 million remaining under the share repurchase program initially approved in August 2017 and subsequently extended to August 13, 2024.

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(13)    Employee Benefit Plans

Net pension cost for the three months ended April 2, 2022 and April 3, 2021 includes the following components (in thousands):

	Pension Benefits
	Three Months Ended
	April 2, 2022		April 3, 2021
Service cost	$	828	$	785
Interest cost	1,320		1,204
Expected return on plan assets	(2,165)		(2,321)
Amortization of prior service cost	5		5
Amortization of actuarial loss	570		1,052
Net pension cost	$	558	$	725

Based on actuarial estimates at April 2, 2022, the Company expects to contribute approximately $3.9 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 2, 2022 and April 3, 2021 of approximately $0.8 million and $0.9 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. As of April 2, 2022, the Company has an aggregate accrued liability of approximately $3.8 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 2, 2022, 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

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

Cash Flow Hedges

In 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 2022. At April 2, 2022 and January 1, 2022, the aggregate fair value of these corn option contracts was approximately $10.2 million and $2.8 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 2021 and fiscal 2022, 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 2023. At April 2, 2022 and January 1, 2022, the aggregate fair value of these foreign exchange contracts was approximately $41.1 million and $0.6 million, respectively. These amounts are included in other current assets, noncurrent assets and accrued expense on the balance sheet, with an offset recorded in accumulated other comprehensive loss.

In fiscal 2021 and fiscal 2022, the Company entered into soybean meal forward contracts to hedge a portion of its forecasted poultry meal sales into the third quarter of fiscal 2022. At April 2, 2022 and January 1, 2022, the aggregate fair value of the soybean meal contracts was $0.1 million and $0.1 million, respectively. These amounts are included in other current assets and accrued expenses on the balance sheet, with an offset recorded in accumulated other comprehensive loss.

As of April 2, 2022, 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	60,371	Euro	10,520
Brazilian real	3,074,644	U.S. dollar	737,900
Euro	34,817	U.S. dollar	39,265
Euro	25,215	Polish zloty	120,000
Euro	5,653	Japanese yen	752,890
Euro	29,996	Chinese renminbi	212,151
Euro	14,759	Australian dollar	22,400
Euro	3,412	British pound	2,860
Euro	36	Canadian dollar	50
Polish zloty	431	U.S. dollar	100
Polish zloty	34,710	Euro	7,338
British pound	229	Euro	273
Japanese yen	331,807	U.S. dollar	2,792
U.S. dollar	275	Japanese yen	34,000
U.S. dollar	236,171	Euro	215,000
Australian dollar	1,243	Euro	786
Canadian dollar	13,107	U.S. dollar	10,500

The Company estimates the amount that will be reclassified from accumulated other comprehensive income at April 2, 2022 into earnings over the next 12 months will be approximately $7.9 million. As of April 2, 2022, 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 2, 2022 and April 3, 2021 (in thousands):

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		Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges
		Three Months Ended
Derivatives not designated as hedging instruments	Location	April 2, 2022		April 3, 2021
Foreign exchange	Foreign currency loss	$	7,466	$	5,389
Foreign exchange	Net sales	158		729
Foreign exchange	Cost of sales and operating expenses	(256)		(444)
Foreign exchange	Selling, general and administrative expenses	(6,524)		2,531
Corn options and futures	Net sales	(2,136)		(998)
Corn options and futures	Cost of sales and operating expenses	5,553		1,469
Total		$	4,261	$	8,676

At April 2, 2022, the Company had forward purchase agreements in place for purchases of approximately $126.2 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 2, 2022 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 2, 2022 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	$	45,189	$	—	$	45,189	$	—
Total Assets	$	45,189	$	—	$	45,189	$	—
Liabilities:
Derivative instruments	$	15,608	$	—	$	15,608	$	—
5.25% Senior notes	510,100		—		510,100		—
3.625% Senior notes	571,532		—		571,532		—
Term loan B	199,500		—		199,500		—
Revolver debt	390,067		—		390,067		—
Total Liabilities	$	1,686,807	$	—	$	1,686,807	$	—

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			Fair Value Measurements at January 1, 2022 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	$	5,031	$	—	$	5,031	$	—
Total Assets	$	5,031	$	—	$	5,031	$	—
Liabilities:
Derivative instruments	$	7,173	$	—	$	7,173	$	—
5.25% Senior notes	515,600		—		515,600		—
3.625% Senior notes	591,200		—		591,200		—
Term loan B	200,000		—		200,000		—
Revolver debt	158,400		—		158,400		—
Total Liabilities	$	1,472,373	$	—	$	1,472,373	$	—

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 incurred additional restructuring and asset impairment charges in the first quarter of fiscal 2021 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 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 2, 2022 and January 1, 2022, the reserves for insurance, environmental, litigation and tax contingencies reflected on the balance sheet in accrued expenses and other non-current liabilities were approximately $80.5 million and $78.4 million, respectively.  The Company has insurance recovery receivables of approximately $31.8 million as of April 2, 2022 and January 1, 2022, 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 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 made no demand on the Company and laid 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 Company 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 eight contaminants of concern identified in the ROD (the “COCs”). Subsequently, the EPA conducted a settlement analysis using a third-party allocator and offered early cash out settlements to those PRPs for whom the third-party allocator determined did not discharge any of the COCs. The Company participated in this allocation process, and in November 2019, 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.

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, Darling Canada, 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.

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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 2, 2022
Net Sales	$	879,438	$	354,814	$	132,082	$	—	$	1,366,334
Cost of sales and operating expenses	645,523		270,312		104,742		—		1,020,577
Gross Margin	233,915		84,502		27,340		—		345,757
Gain on sale of assets	(341)		(9)		(39)		—		(389)
Selling, general and administrative expenses	56,209		26,844		3,920		15,059		102,032
Acquisition and integration costs	—		—		—		3,773		3,773
Depreciation and amortization	54,350		15,450		6,674		2,772		79,246
Equity in net income of Diamond Green Diesel	—		—		71,804		—		71,804
Segment operating income/(loss)	123,697		42,217		88,589		(21,604)		232,899
Equity in net income of other unconsolidated subsidiaries	1,360		—		—		—		1,360
Segment income/(loss)	125,057		42,217		88,589		(21,604)		234,259
Total other expense									(17,445)
Income before income taxes									$	216,814
Segment assets at April 2, 2022	$	2,751,078	$	1,262,887	$	1,982,190	$	619,461	$	6,615,616

	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 expenses	52,620		25,191		4,867		14,720		97,398
Restructuring and 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 January 1, 2022	$	2,714,528	$	1,205,217	$	1,658,892	$	555,091	$	6,133,728

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(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 2, 2022 and April 3, 2021 (in thousands):

	Three Months Ended April 2, 2022
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	755,838	$	83,900	$	—	$	839,738
Europe	114,463		182,010		132,082		428,555
China	6,636		66,307		—		72,943
South America	—		8,496		—		8,496
Other	2,501		14,101		—		16,602
Net sales	$	879,438	$	354,814	$	132,082	$	1,366,334
Major product types
Fats	$	368,394	$	52,264	$	—	$	420,658
Used cooking oil	94,896		—		—		94,896
Proteins	270,187		—		—		270,187
Bakery	78,511		—		—		78,511
Other rendering	57,544		—		—		57,544
Food ingredients	—		270,516		—		270,516
Bioenergy	—		—		132,082		132,082
Other	9,906		32,034		—		41,940
Net sales	$	879,438	$	354,814	$	132,082	$	1,366,334

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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

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 2022 under these long-term supply contracts was approximately $35.0 million, with the remaining performance obligations to be recognized in future periods (generally 5 years) of approximately $1.21 billion.

(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 2, 2022 and April 3, 2021, the Company has recorded sales to the DGD Joint Venture of approximately $214.4 million and $89.0 million, respectively. At April 2, 2022 and January 1, 2022, the Company has $42.8 million and $43.8 million in outstanding receivables due from the DGD Joint Venture, respectively. In addition, the Company has eliminated approximately $29.8 million and $14.6 million of additional sales for the three months ended April 2, 2022 and April 3, 2021, respectively to defer the Company's portion of profit of approximately $8.4 million and $4.1 million on those sales relating to inventory assets remaining on the DGD Joint Venture's balance sheet at April 2, 2022 and April 3, 2021, 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, 2023, unless extended by agreement of the parties. During the fourth quarter of fiscal 2021, the DGD Joint Venture borrowed all $50.0 million available under the DGD Loan Agreement, including the Company's full $25.0 million commitment and paid interest to the Company for the three months ended April 2, 2022 of approximately $0.2 million. As of April 2, 2022, $25.0 million was owed to Darling Green under the DGD Loan Agreement. The note receivable amount is included in other assets on the consolidated balance sheet.

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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 a maximum of approximately $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 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)    Cash Flow Information

The following table sets forth supplemental cash flow information and non-cash transactions (in thousands):

	Three Months Ended
	April 2, 2022		April 3, 2021
Supplemental disclosure of cash flow information:
Accrued capital expenditures	$	(7,324)	$	(9,678)
Cash paid during the period for:
Interest, net of capitalized interest	$	2,124	$	2,774
Income taxes, net of refunds	$	41,423	$	15,578
Non-cash operating activities
Operating lease right of use asset obtained in exchange for new lease liabilities	$	33,072	$	12,404
Non-cash financing activities
Debt issued for assets	$	635	$	—

(22)    New Accounting Pronouncements

The Company does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying consolidated financial statements.

(23)    Subsequent Events

On May 2, 2022, the Company acquired Valley Proteins for approximately $1.2 billion in cash. The Company financed this transaction by borrowing all of the Company's delayed draw term A-1 facility of $400.0 million and delayed draw term A-2 facility of $500.0 million and the remainder through revolver borrowings under the Company's Amended Credit Agreement.

On May 5, 2022, the Company announced that we entered into a definitive agreement to acquire all the shares of the FASA Group, the largest independent rendering company in Brazil, for approximately R$2.8 billion Brazilian Real in cash ($560.0 million USD at the exchange rate in effect on the signing date), subject to post closing adjustments and a contingent payment based on future earnings growth. The closing of the transaction is subject to customary closing conditions and regulatory approval in Brazil.

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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 1, 2022, filed with the SEC on March 1, 2022 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 renewable diesel and biodiesel, 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 (“DGD” or 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 2, 2022 included herein, (ii) the conversion of organic sludge and food waste into biogas in

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Europe, (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.

Economic Conditions and Uncertainties

Global Economic Conditions

We operate globally and have operations in numerous countries. As such, we are exposed to, and impacted by global macroeconomic factors, U.S. and foreign government policies and foreign exchange fluctuations. Global economic conditions continue to be highly volatile due to, among other things, the conflict in Ukraine and its impact on volatility in energy and other commodity prices, cost and supply chain pressures and availability, and disruption in banking systems and capital markets. Disturbances in world financial, credit, commodities and stock markets, including inflationary, deflationary and recessionary conditions, could have a negative impact on the Company’s results of operations. Any such disturbances or disruptions may also magnify the impact of other risks described in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the fiscal year ended January 1, 2022, as filed with the SEC on March 1, 2022.

Energy Policies of U.S. and Foreign Governments

Prices for our finished products, including those of DGD, may be impacted by worldwide government policies relating to renewable fuels and greenhouse gas emissions (“GHG”). Programs like the National Renewable Fuel Standard Program (“RFS”) and low carbon fuel standards (“LCFS”) (such as in the state of California) and tax credits for biofuels both in the United States and abroad may positively impact the demand for our finished products. Legal challenges or changes to, a failure to enforce, reductions in the mandated volumes under, or discontinuing or suspension of any of these programs could have a negative impact on our business and results of operations. However, such rules and the regulatory environment are continuing to evolve and change, and we cannot predict the ultimate effect that such changes may have on our business.

Climate Change

There is a growing global concern that carbon dioxide and other greenhouse gases in the atmosphere may have an adverse impact on global temperatures, weather patterns and the frequency of extreme weather and natural disasters. We are subject to physical, operational, transitional and financial risks associated with climate change and global, regional and local weather conditions, as well as legal, regulatory and market responses to climate change. Certain jurisdictions in which we operate have either imposed, or are considering imposing, new or increasingly stringent legal and regulatory requirements to reduce or mitigate the potential effects of climate change, including regulation and reduction of GHG and potential carbon pricing programs. These new or increasingly stringent legal or regulatory requirements could result in significantly increased costs of compliance and additional investments in facilities and equipment. While we assess climate related regulatory risks as part of our risk management process, we are unable to predict the scope, nature and timing of any new or increasingly stringent environmental laws and regulations and therefore cannot predict the ultimate impact of such laws and regulations on our business or financial results. We continue to monitor existing and proposed laws and regulations in the jurisdictions in which we operate and to consider actions we may take to potentially mitigate the unfavorable impact, if any, of such laws or regulations. Furthermore, there has been increased focus from our stakeholders, including consumers, employees and investors, on corporate environmental, social, and governance (“ESG”) practices, including practices related to the causes and impacts of climate change. We expect that stakeholder expectations with respect to ESG expectations will continue to evolve rapidly, which may necessitate additional resources to monitor, report on, and adjust our operations.

COVID-19

Our global operations continue to expose us to risks associated with the COVID-19 pandemic as the potential impacts of COVID-19 resurgences and variants have resulted in continued uncertainty as to the pandemic’s further duration and scope. Various measures have been implemented at various times around the world to try to reduce the spread of the virus, including travel bans and restrictions, quarantines, curfews, stay-at-home restrictions and other public health and safety measures. The health and well-being of our employees continues to be a priority for us, and we will continue, as appropriate, to implement operational guidelines in our organization consistent with the applicable governmental and

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regulatory policies in the geographies we operate intended to protect our employees and prevent the spread of the virus. The extent to which COVID-19 impacts the Company’s and DGD's business and financial results will depend on future developments, which are highly uncertain and cannot be predicted and may vary by jurisdiction and market, including the duration and scope of the pandemic, the emergence and spread of new variants of the virus, such as the omicron and delta variants, the likelihood of a resurgence of positive cases, the development, availability and acceptance of effective treatments and vaccines, the speed at which such vaccines are administered, the efficacy of current vaccines against evolving strains or variants of the virus, 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 on risk factors that could impact our results, please refer to “Risk Factors” in Part I, Item 1A of the Company's Form 10-K for the fiscal year ended January 1, 2022, as filed with the SEC on March 1, 2022.

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 commodity prices and 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 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 1, 2022.

    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

27

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 2, 2022 Compared to Three Months Ended April 3, 2021

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.

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 2022, 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 2022, compared to average Jacobsen and Reuters prices for the first quarter of fiscal 2021 are as follows:

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	Avg. Price 1st Quarter 2022	Avg. Price 1st Quarter 2021	Increase/(Decrease)	% Increase/(Decrease)
Jacobsen:
MBM (Illinois)	$ 317.22/ton	$ 386.97/ton	$ (69.75)/ton	(18.0)	%
Feed Grade PM (Mid-South)	$ 367.03/ton	$ 357.79/ton	$ 9.24/ton	2.6	%
Pet Food PM (Mid-South)	$ 761.69/ton	$ 845.08/ton	$ (83.39)/ton	(9.9)	%
Feather meal (Mid-South)	$ 525.32/ton	$ 539.02/ton	$ (13.70)/ton	(2.5)	%
BFT (Chicago)	$ 71.39/cwt	$    46.42/cwt	$ 24.97/cwt	53.8	%
YG (Illinois)	$ 53.91/cwt	$   34.45/cwt	$ 19.46/cwt	56.5	%
Corn (Illinois)	$ 6.90/bushel	$ 5.56/bushel	$ 1.34/bushel	24.1	%
Reuters:
Palm Oil (CIF Rotterdam)	$ 1,555.00/MT	$ 1,084.00/MT	$ 471.00/MT	43.5	%
Soy meal (CIF Rotterdam)	$ 576.00/MT	$ 535.00/MT	$ 41.00/MT	7.7	%

The following table shows the average Jacobsen and Reuters prices for the first quarter of fiscal 2022, compared to average Jacobsen and Reuters prices for the fourth quarter of fiscal 2021.

	Avg. Price 1st Quarter 2022	Avg. Price 4th Quarter 2021	Increase/(Decrease)	% Increase/(Decrease)
Jacobsen:
MBM (Illinois)	$ 317.22/ton	$ 261.79/ton	$ 55.43/ton	21.2	%
Feed Grade PM (Mid-South)	$ 367.03/ton	$ 335.07/ton	$ 31.96/ton	9.5	%
Pet Food PM (Mid-South)	$ 761.69/ton	$ 650.25/ton	$ 111.44/ton	17.1	%
Feather meal (Mid-South)	$ 525.32/ton	$ 444.61/ton	$ 80.71/ton	18.2	%
BFT (Chicago)	$ 71.39/cwt	$    66.15/cwt	$     5.24/cwt	7.9	%
YG (Illinois)	$ 53.91/cwt	$   44.30/cwt	$   9.61/cwt	21.7	%
Corn (Illinois)	$ 6.90/bushel	$ 5.84/bushel	$ 1.06/bushel	18.2	%
Reuters:
Palm Oil (CIF Rotterdam)	$ 1,555.00/MT	$ 1,349.00/MT	$ 206.00/MT	15.3	%
Soy meal (CIF Rotterdam)	$ 576.00/MT	$ 466.00/MT	$ 110.00/MT	23.6	%

Segment Results

Segment operating income for the three months ended April 2, 2022 was $232.9 million, which reflects an increase of $33.4 million or 16.7% as compared to the three months ended April 3, 2021.

(in thousands, except percentages)	Feed Ingredients			Food Ingredients			Fuel Ingredients			Corporate			Total
Three Months Ended April 2, 2022
Net Sales	$	879,438		$	354,814		$	132,082		$	—		$	1,366,334
Cost of sales and operating expenses	645,523			270,312			104,742			—			1,020,577
Gross Margin	233,915			84,502			27,340			—			345,757
Gross Margin %	26.6		%	23.8		%	20.7		%	—		%	25.3		%
Gain on sale of assets	(341)			(9)			(39)			—			(389)
Selling, general and administrative expenses	56,209			26,844			3,920			15,059			102,032
Acquisition and integration costs	—			—			—			3,773			3,773
Depreciation and amortization	54,350			15,450			6,674			2,772			79,246
Equity in net income of Diamond Green Diesel	—			—			71,804			—			71,804
Segment operating income/(loss)	123,697			42,217			88,589			(21,604)			232,899
Equity in net income of other unconsolidated subsidiaries	1,360			—			—			—			1,360
Segment income/(loss)	125,057			42,217			88,589			(21,604)			234,259

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(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 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

Feed Ingredients Segment

Raw material volume. In the three months ended April 2, 2022, the raw material processed by the Company's Feed Ingredients segment totaled approximately 2.31 million metric tons. Compared to the three months ended April 3, 2021, overall raw material volume processed in the Feed Ingredients segment increased approximately 3.6%.

Sales. 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 April 3, 2021	$	229.0	$	255.5	$	43.0	$	527.5	$	51.0	$	63.1	$	9.8	$	651.4
Increase in sales volumes	3.7		4.1		—		7.8		4.4		2.9		—		15.1
Increase in finished product prices	138.9		17.1		—		156.0		39.5		12.5		—		208.0
Decrease due to currency exchange rates	(3.2)		(6.5)		(0.4)		(10.1)		—		—		—		(10.1)
Other change	—		—		14.9		14.9		—		—		0.1		15.0
Total change	139.4		14.7		14.5		168.6		43.9		15.4		0.1		228.0
Net sales three months ended April 2, 2022	$	368.4	$	270.2	$	57.5	$	696.1	$	94.9	$	78.5	$	9.9	$	879.4

Margins. In the Feed Ingredients segment for the three months ended April 2, 2022, the gross margin percentage decreased to 26.6% as compared to 27.1% for the comparable period of fiscal 2021. The decrease in margin is primarily due to higher overall energy prices as compared to fiscal 2021.

Segment operating income. Feed Ingredients operating income for the three months ended April 2, 2022 was $123.7 million, an increase of $53.9 million or 77.2% as compared to the three months ended April 3, 2021. The increase is due to higher overall fat finished product prices and higher raw material volumes as compared to fiscal 2021.

Food Ingredients Segment

Raw material volume. In the three months ended April 2, 2022, the raw material processed by the Company's Food Ingredients segment totaled approximately 278,000 metric tons. Compared to the three months ended April 3, 2021, overall raw material volume processed in the Food Ingredients segment increased approximately 1.5%.

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

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Margins. In the Food Ingredients segment for the three months ended April 2, 2022, the gross margin percentage decreased to 23.8% as compared to 24.0% for the comparable period of fiscal 2021. The decrease in margin is primarily due to higher overall energy prices as compared to fiscal 2021.

Segment operating income. Food Ingredients operating income was $42.2 million for the three months ended April 2, 2022, an increase of $10.7 million or 34.0% as compared to the three months ended April 3, 2021. The increase is primarily due to higher sales prices and volumes in collagen markets that more than offset higher energy prices as compared to fiscal 2021.

Fuel Ingredients Segment

Raw material volume. In the three months ended April 2, 2022, the raw material processed by the Company's Fuel Ingredients segment totaled approximately 340,000 metric tons. Compared to the three months ended April 3, 2021, overall raw material volume processed in the Fuel Ingredients segment increased approximately 3.7%.

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

Margins. In the Fuel Ingredients segment (exclusive of the equity contribution from the DGD Joint Venture) for the three months ended April 2, 2022, the gross margin percentage decreased to 20.7% as compared to 26.1% for the comparable period of fiscal 2021. The decrease is primarily due to higher raw material costs and higher energy prices as compared to fiscal 2021.

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 2, 2022 was $88.6 million, a decrease of $27.2 million or (23.5)% as compared to the same period in fiscal 2021. The decrease is primarily attributed to higher raw material costs at DGD, a catalyst turnaround at DGD during the quarter and also attributed to lower values for LCFS credits that more than offset higher blenders tax credits and higher fuel and Renewable Identification Number prices as compared to the same period in fiscal 2021.

Foreign Currency Exchange

    During the first quarter of fiscal 2022, the euro weakened against the U.S. dollar as compared to the same period in fiscal 2021. Using actual results for the three months ended April 2, 2022 and using the prior year's average currency rate for the three months ended April 3, 2021, foreign currency translation would result in an increase in operating income of approximately $7.2 million. The average rate assumptions used in this calculation were the actual fiscal average rates for the three months ended April 2, 2022 of €1.00:$1.12 and C$1.00:$0.79 as compared to the average rates for the three months ended April 3, 2021 of €1.00:$1.20 and C$1.00:$0.79, respectively.

Corporate Activities

Selling, General and Administrative Expenses.  Selling, general and administrative expenses was approximately $15.1 million during the three months ended April 2, 2022, compared to approximately $14.7 million during the three months ended April 3, 2021, an increase of $0.4 million.  The increase is primarily due to higher costs for information technology, travel, legal and insurance premiums that more than offset a decrease in corporate related benefits.

Restructuring and Impairment charges.  Restructuring and impairment charges represents additional costs included in the three months ended April 3, 2021 related to the announced closure of the Company's biodiesel activities in December 2020.

Acquisition and Integration costs. Acquisition and integration costs were approximately $3.8 million during the three months ended April 2, 2022. These include costs related to the Company's May 2, 2022 acquisition of all the shares of Valley Proteins, the purchase of all the shares of Op de Beeck in February 2022 and other potential acquisitions.

Depreciation and Amortization.  Depreciation and amortization charges were approximately $2.8 million during the three months ended April 2, 2022, as compared to approximately $2.9 million for the same period in fiscal 2021.

Interest Expense. Interest expense was $15.6 million during the three months ended April 2, 2022, compared to $16.4 million during the three months ended April 3, 2021, a decrease of $0.8 million. The decrease is primarily due to lower amortization of deferred loan costs and lower interest on the Term loan B as a result of partial note pay-downs that more than offset an increase in revolver interest due to increased revolver borrowings.

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Foreign Currency Loss.  Foreign currency losses were $1.1 million for the three months ended April 2, 2022 as compared to foreign currency losses of $0.4 million for the three months ended April 3, 2021. The increase is due primarily to increased losses on the revaluation of non-functional currency assets and liabilities as compared to the same period in fiscal 2021.

Other Expense, net. Other expense was $0.7 million in the three months ended April 2, 2022, compared to other expense of $1.2 million for the three months ended April 3, 2021. The decrease in other expense was primarily due to a decrease in the non-service component of pension expense and an increase in interest income as compared to the same period in fiscal 2021.

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 $26.1 million for the three months ended April 2, 2022, compared to $28.7 million recorded in the three months ended April 3, 2021, a decrease of $2.6 million, which is primarily due to an increase in the amount of biofuel tax incentives and discrete tax benefits from stock-based compensation recognized during the three months ended April 2, 2022. The effective tax rate for the three months ended April 2, 2022 and April 3, 2021 is 12.0% and 15.8%, respectively. The effective tax rate for the three months ended April 2, 2022 and April 3, 2021 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 biofuel tax incentives and discrete items is 25.7% for the three months ended April 2, 2022, compared to 26.5% for the three months ended April 3, 2021.

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, restructuring, acquisition and integration costs, 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.  

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 2, 2022.  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 2022 As Compared to First Quarter 2021

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	Three Months Ended
(dollars in thousands)	April 2, 2022		April 3, 2021
Net income attributable to Darling	$	188,053	$	151,766
Depreciation and amortization	79,246		78,534
Interest expense	15,603		16,428
Income tax expense	26,083		28,708
Restructuring and asset impairment charges	—		778
Acquisition and integration costs	3,773		—
Foreign currency loss	1,100		410
Other expense, net	742		1,159
Equity in net income of Diamond Green Diesel	(71,804)		(102,225)
Equity in net income of other unconsolidated subsidiaries	(1,360)		(612)
Net income attributable to non-controlling interests	2,678		1,652
Darling's Adjusted EBITDA	$	244,114	$	176,598
Foreign currency exchange impact (1)	7,227		—
Pro forma Adjusted EBITDA to Foreign Currency (Non-GAAP)	$	251,341	$	176,598
DGD Joint Venture Adjusted EBITDA (Darling's Share)	$	86,560	$	108,200
Darling plus Darling's share of DGD Joint Venture Adjusted EBITDA	$	330,674	$	284,798

(1) The average rates assumption used in this calculation was the actual fiscal average rate for the three months ended April 2, 2022 of €1.00:$1.12 and C$1.00:$0.79 as compared to the average rate for the three months ended April 3, 2021 of €1.00:$1.20 and C$1.00:$0.79, respectively.

FINANCING, LIQUIDITY AND CAPITAL RESOURCES

Credit Facilities

Indebtedness

Certain Debt Outstanding at April 2, 2022. On April 2, 2022, 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	(4,753)
Carrying value of 5.25% Notes due 2027	$	495,247
3.625 % Notes due 2026 - Denominated in euros	$	568,972
Less unamortized deferred loan costs	(4,647)
Carrying value of 3.625% Notes due 2026	$	564,325
Amended Credit Agreement:
Term Loan B	$	200,000
Less unamortized deferred loan costs	(1,774)
Carrying value of Term Loan B	$	198,226
Revolving Credit Facility:
Maximum availability	$	1,500,000
Ancillary Facilities	50,407
Borrowings outstanding	396,007
Letters of credit issued	3,849
Availability	$	1,049,737
Other Debt	$	59,457

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During the first three months of fiscal 2022, the U.S. dollar strengthened as compared to the euro and weakened as compared to the Canadian dollar at January 1, 2022. Using the euro and Canadian based debt outstanding at April 2, 2022 and comparing the closing balance sheet rate at April 2, 2022 to the balance sheet rate at January 1, 2022, the U.S. dollar debt balances of euro based debt decreased by approximately $14.0 million and the U.S. dollar debt balance of Canadian based debt increased approximately $0.2 million, at April 2, 2022. The closing balance sheet rate assumption used in this calculation was the actual fiscal closing balance sheet rate at April 2, 2022 of €1.00:$1.1048 and C$1.00:$0.800667 as compared to the closing balance sheet rate at January 1, 2022 of €1.00:$1.13200 and C$1.00:$0.785266.

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 March 2, 2022, the Company, and certain of its subsidiaries entered into an amendment (the "Eighth Amendment") with its lenders to the Amended Credit Agreement. Among other things, the Eighth Amendment (a) added a new delayed draw incremental term facility (the “term A-2 facility”) and new incremental term loans pursuant thereto, in an aggregate principal amount of up to $500.0 million, which is available to the Company for general corporate purposes, including acquisitions and capital expenditures, and will mature on December 9, 2026 and (b) updated and modified certain other terms and provisions of the Amended Credit Agreement to reflect the addition of the term A-2 facility to the Amended Credit Agreement. The Amended Credit Agreement provides for senior secured credit facilities in the aggregate principal amount of $2.925 billion comprised of (i) the Company's $525.0 million term loan B facility, (ii) the Company's $400.0 million delayed draw term A-1 loan, (iii) the Company's $500.0 million delayed draw term A-2 loan and (iv) the Company's $1.5 billion five-year revolving loan facility (up to $150.0 million of which will be available for a letter of credit subfacility and $50.0 million of which will be 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 $1.46 billion of the revolving loan facility is available to be borrowed by Darling, Darling Canada, Darling NL, Darling Ingredients International Holding B.V. (“Darling BV”), Darling GmbH, and Darling Belgium in U.S. dollars, Canadian dollars, euros, Sterling and other currencies to be agreed and available to each applicable lender. The remaining $40.0 million must be borrowed in U.S. dollars only by Darling. The revolving loan facility will mature on December 9, 2026. The revolving credit facility will be used for working capital needs, general corporate purposes and other purposes not prohibited by the Amended Credit Agreement.

•As of April 2, 2022, the Company had availability of $1,049.7 million under the revolving credit facility, taking into account that the Company had $396.0 million in outstanding borrowings, $50.4 million in ancillary facilities and letters of credit issued of $3.8 million.

•As of April 2, 2022, the Company had full availability under its delayed draw term A-1 facility commitment of $400.0 million. Under the terms of the delayed draw term A-1 facility, the Company can take up to two years or until December 9, 2023 to borrow under the term A-1 facility commitment in U.S. dollars. Amounts borrowed under the term A-1 facility that are repaid by the Company cannot be reborrowed. The term A-1 facility borrowings are repayable in quarterly installments of 0.25% of the aggregate principle amount of the relevant term A-1 facility on the last day of each March, June, September and December of each year commencing on the last day of such month falling on or after the last day of the first full fiscal quarter following the second anniversary of December 9, 2021 and continuing until the last day of such quarterly period ending immediately prior to the term A-1 facility maturity date of December 9, 2026 and one final installment in the amount of the term A-1 facility then outstanding, due and payable on December 9, 2026.

•As of April 2, 2022, the Company had full availability under its delayed draw term A-2 facility commitment of $500.0 million. Under the terms of the delayed draw term A-2 facility, the Company can take up to one year or until March 2, 2023 to borrow under the term A-2 facility commitment in U.S. dollars. Amounts borrowed under the term A-2 facility that are repaid by the Company cannot be reborrowed. The term A-2 facility borrowings are repayable in quarterly installments of 0.625% of the aggregate principle amount of the relevant term A-2 facility on the last day of each March, June, September and December of each year commencing on the last day of such month falling on or after the last day of the first full fiscal quarter following the earlier of term A-2 Commitment termination date or the first anniversary of March 2, 2022 and continuing until the last day of such quarterly period ending March 31, 2025, and quarterly installments of 1.25% of the aggregate principle amount of the relevant term A-2 facility due and payable on the last day of each March, June, September and December of each year commencing on the last day of such month falling on or after the last day of the first full fiscal quarter ending June 30, 2025 and continuing until the last day of the such quarterly period ending immediately prior to the term

34

A-2 facility maturity date of December 9, 2026 and one final installment in the amount of the term A-2 facility then outstanding, due and payable on December 9, 2026.

•As of April 2, 2022, the Company has borrowed all $525.0 million under the terms of the term loan B facility and repaid $325.0 million, which when repaid, cannot be reborrowed. As a result of early payments made by the Company under the term loan B facility only one final installment of the relevant term loan B facility then outstanding is 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 loan facility will equal the adjusted term secured overnight financing rate (SOFR) for U.S. dollar borrowings or the adjusted euro interbank rate (EURIBOR) for euro borrowings or the adjusted daily simple Sterling overnight index average (SONIA) for British pound borrowings or CDOR for Canadian dollar borrowings plus 1.25% per annum or base rate or the adjusted term SOFR for U.S. dollar borrowings or Canadian prime rate for Canadian dollar borrowings or the adjusted daily simple European short term rate (ESTR) for euro borrowings or the adjusted daily SONIA rate for British pound borrowings plus 0.25% per annum subject to certain step-ups or step-downs based on the Company's total leverage ratio. The interest rate applicable to any borrowing under the delayed draw term A-1 facility will equal the adjusted term SOFR plus a minimum of 1.50% per annum subject to certain step-ups based on the Company's total leverage ratio. The interest rate applicable to any borrowing under the delayed draw term A-2 facility will equal the adjusted term SOFR plus a minimum of 1.00% per annum subject to certain 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 overdraft ancillary facilities and 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.

The classification of long-term debt in the Company’s April 2, 2022 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.

On May 2, 2022, the Company acquired Valley Proteins for approximately $1.2 billion in cash. The Company financed this transaction by borrowing all of the Company's delayed draw term A-1 facility of $400.0 million and delayed draw term A-2 facility of $500.0 million and the remainder through revolver borrowings under the Company's Amended Credit Agreement.

On May 5, 2022, the Company announced that we entered into a definitive agreement to acquire all the shares of the FASA Group, the largest independent rendering company in Brazil, for approximately R$2.8 billion Brazilian Real in cash ($560.0 million USD at the exchange rate in effect on the signing date), subject to post closing adjustments and a contingent payment based on future earnings growth. The Company expects to finance this acquisition with a combination of operating cash flow, revolver borrowings under the Company’s Amended Credit Agreement and possible other debt financing resources.

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

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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 1, 2022 as filed with the SEC on March 1, 2022.

As of April 2, 2022, 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 2, 2022, the Company had working capital of $445.6 million and its working capital ratio was 1.55 to 1 compared to working capital of $336.3 million and a working capital ratio of 1.45 to 1 on January 1, 2022.  As of April 2, 2022, the Company had unrestricted cash of $99.5 million and funds available under the revolving credit facility of $1,049.7 million, compared to unrestricted cash of $68.9 million and funds available under the revolving credit facility of $1,285.9 million at January 1, 2022. The Company diversifies its cash investments by limiting the amounts deposited with any one financial institution.

Net cash provided by operating activities was $152.2 million for the first three months ended April 2, 2022, as compared to net cash provided by operating activities of $138.8 million for the first three months ended April 3, 2021, an increase of $13.4 million due primarily to an increase in net income and the effect from equity in net income of the DGD Joint Venture. Additionally, changes in operating assets and liabilities impacted cash provided by operating activities, which includes an approximately $52.0 million decrease in cash provided by accounts receivable, an approximately $15.7 million decrease in cash provided by inventory and prepaid expense, an approximately $72.5 million increase in cash provided by accounts payable and accrued expenses, an approximately $30.4 million decrease in income taxes refundable/payable and an approximately $37.6 million increase in cash provided by other primarily from an increase in hedging activities.  Cash used in investing activities was $294.5 million for the first three months ended April 2, 2022, compared to $64.3 million for the first three months ended April 3, 2021, an increase in cash used in investing activities of $230.2 million, primarily due to capital contributions to the DGD Joint Venture and acquisitions.  Net cash provided in financing activities was $180.9 million for the first three months ended April 2, 2022, compared to net cash used in financing activities of $81.0 million for the first three months ended April 3, 2021, an increase in net cash provided in financing activities of $261.9 million, primarily due to an increase in debt borrowings in the first three months ended April 2, 2022 compared to the first three months ended April 3, 2021.

Capital expenditures of $71.6 million were made during the first three months of fiscal 2022, compared to $60.8 million in the first three months of fiscal 2021.  The Company expects to incur additional capital expenditures of approximately $268 million for the remainder of fiscal 2022 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 $6.1 million and $5.5 million during the first three months ended April 2, 2022 and April 3, 2021, respectively.

Accrued Insurance and Pension Plan Obligations

Based upon the annual actuarial estimate, current accruals and claims paid during the first three months of fiscal 2022, the Company has accrued approximately $11.5 million it expects will become due during the next twelve months in

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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 2, 2022.  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 $3.6 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 made tax deductible discretionary and required contributions to its domestic pension plans for the first three months ended April 2, 2022 of approximately $0.1 million. Additionally, the Company has made required and tax deductible discretionary contributions to its foreign pension plans for the first three months ended April 2, 2022 of approximately $0.7 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 and the Russia-Ukraine war, 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. As of April 2, 2022, the Company has an aggregate accrued liability of approximately $3.8 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 and certain other co-products in late June 2013. In October 2021, the DGD Joint Venture completed an expansion of the DGD Norco Facility that increased its renewable diesel production capability to up to 750 million gallons per year of renewable diesel, as well as separating renewable naphtha (approximately 30 million gallons) and other light end renewable hydrocarbons for sale into low carbon fuel markets. The expansion of the DGD Norco Facility was completed and became operational in October 2021, at a total cost, including naphtha production and improved logistics capability, of approximately $1.1 billion, which was substantially funded by DGD Joint Venture cash flow. Additionally, in January 2021, we and our DGD Joint Venture partner 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. Construction is underway, and the new plant is anticipated to commence operations in the fourth quarter of 2022, with the total cost of the expansion project 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 approximately 1.2 billion gallons per year. Based on forecasted margins as of the date of this report, the remaining capital expenditures at the Port Arthur expansion project are expected to be primarily funded by DGD Joint Venture cash flow; however, if the DGD Joint Venture cash flow is not sufficient to

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fund the remaining project costs, 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.

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 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, 2023, unless extended by agreement of the parties. During the fourth quarter of fiscal 2021, the DGD Joint Venture borrowed all $50.0 million available under the DGD Loan Agreement, including the Company's full $25.0 million commitment and paid interest to the Company for the three months ended April 2, 2022 of approximately $0.2 million. As of April 2, 2022, $25.0 million was owed to Darling Green 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 revolving credit facility matures March 30, 2024 and is non-recourse to the joint venture partners. As of April 2, 2022, the DGD Joint Venture has borrowings outstanding of $165.0 million under this unsecured revolving credit facility.

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 initial completion of the DGD Norco Facility including the Company's portion of cost overruns and working capital funding. In fiscal year 2021, each joint partner contributed a total of approximately $189.0 million and in the three months ended April 2, 2022, each joint venture partner made additional capital contributions of approximately $164.75 million to the DGD Joint Venture. As of April 2, 2022, under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $1,528.7 million included on the consolidated balance sheet.

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 2021, 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 2021, DGD was Darling’s largest finished product customer in terms of net sales, with Darling recording sales of approximately $521.7 million to DGD or 11% of total net sales.

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.

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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 the Russia-Ukraine war 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 2022 and thereafter.  The Company reviews the appropriate use of unrestricted cash periodically. As of the date of this report, other than the Company's previously announced acquisition of FASA Group for approximately R$2.8 billion Brazilian Real in cash ($560.0 million USD at the exchange rate in effect on the signing date), subject to post closing adjustments and a contingent payment based on future earnings growth, 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 project or potential investments in additional renewable diesel and/or biofuel projects; investments in response to governmental regulations relating to climate change, 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 $500.0 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, 2024, unless further extended or shortened by the Board of Directors. During the first three months of fiscal 2022, the Company has repurchased approximately $17.2 million of its common stock in the open market. As of April 2, 2022, the Company had approximately $482.8 million remaining in its share repurchase program.

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.

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OFF BALANCE SHEET ARRANGEMENTS AND CONTRACTUAL OBLIGATIONS

Based upon the underlying purchase agreements, the Company has commitments to purchase $252.6 million of commodity products consisting of approximately $104.5 million of finished products, approximately $126.2 million of natural gas and diesel fuel and approximately $21.9 million of other commitments during the next five years, which are not included in liabilities on the Company’s balance sheet at April 2, 2022.  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. 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 2022 and through fiscal 2024, 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 2, 2022 (in thousands):

Other commercial commitments:
Standby letters of credit	$	3,849
Standby letters of credit (ancillary facility)	27,400
Foreign bank guarantees	11,805
Total other commercial commitments:	$	43,054

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 1, 2022, filed with the SEC on March 1, 2022.

NEW ACCOUNTING PRONOUNCEMENTS

See Note 22, “New Accounting Pronouncements,” to the consolidated financial statements for a description of new accounting pronouncements.

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

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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 ongoing expansion project; risks and uncertainties relating 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, including the Russia-Ukraine war; 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 1, 2022. 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. 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 forwards and 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 therefore not subject to fair value derivative accounting. At April 2, 2022, the Company had corn option

41

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 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 2022. As of April 2, 2022 and January 1, 2022 the aggregate fair value of these corn option contracts was approximately $10.2 million and $2.8 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 2021 and fiscal 2022, 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 forecasted collagen sales in currencies other than the functional currency through the fourth quarter of fiscal 2023. As of April 2, 2022 and January 1, 2022, the aggregate fair value of these foreign exchange contracts was approximately $41.1 million and $0.6 million, respectively. As of April 2, 2022, approximately $27.0 million is included in other current assets and approximately $14.1 million is included in noncurrent assets and as of January 1, 2022, approximately $2.8 million is included in other current assets and approximately $2.2 million is included in accrued expenses on the balance sheet, with an offset recorded in accumulated other comprehensive loss.

In fiscal 2021 and fiscal 2022, the Company entered into soybean meal forward contracts to hedge a portion of its forecasted poultry meal sales into the third quarter of fiscal 2022. As of April 2, 2022 and January 1, 2022, the aggregate fair value of the soybean meal contracts was $0.1 million and $0.1 million, respectively. The amounts are included in other current assets and accrued expenses on the balance sheet, with an offset recorded in accumulated other comprehensive loss.

As of April 2, 2022, 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	60,371	Euro	10,520	5.31 - 5.80	$	12,857
Brazilian real	3,074,644	U.S. dollar	737,900	3.35 - 6.63	737,900
Euro	34,817	U.S. dollar	39,265	1.10 - 1.17	39,265
Euro	25,215	Polish zloty	120,000	4.67 - 4.81	27,858
Euro	5,653	Japanese yen	752,890	128.46 - 136.52	6,245
Euro	29,996	Chinese renminbi	212,151	7.02 - 7.69	33,139
Euro	14,759	Australian dollar	22,400	1.47 - 1.52	16,306
Euro	3,412	British pound	2,860	0.84 - 0.85	3,769
Euro	36	Canadian dollar	50	1.38	40
Polish zloty	431	U.S. dollar	100	4.31	100
Polish zloty	34,710	Euro	7,338	4.72 - 4.73	8,260
British pound	229	Euro	273	0.84	300
Japanese yen	331,807	U.S. dollar	2,792	112.99 - 124.59	2,792
U.S. dollar	275	Japanese yen	34,000	123.68	275
U.S. dollar	236,171	Euro	215,000	1.10	236,171
Australian dollar	1,243	Euro	786	1.58 - 1.59	934
Canadian dollar	13,107	U.S. dollar	10,500	1.25	10,500
					$	1,136,711

The above foreign currency contracts that are not designated as hedges had an aggregate fair value of approximately $2.4 million and are included in other current assets and accrued expenses at April 2, 2022.

42

Additionally, the Company had corn forward contracts that are marked to market because they did not qualify for hedge accounting at April 2, 2022. These contracts have an aggregate fair value of approximately $3.6 million and are included in other current assets and accrued expenses at April 2, 2022.

As of April 2, 2022, the Company had forward purchase agreements in place for purchases of approximately $126.2 million of natural gas and diesel fuel and approximately $21.9 million of other commitments during the next five years. As of April 2, 2022, the Company had forward purchase agreements in place for purchases of approximately $104.5 million of finished product during the next five years.

Foreign Exchange

The Company 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, Brazilian real, Canadian dollar, Australian dollar, Chinese renminbi, British pound, Polish zloty, and Japanese yen.

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. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives.

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.

43

DARLING INGREDIENTS INC. AND SUBSIDIARIES

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED APRIL 2, 2022

PART II:  Other Information

Item 1.  LEGAL PROCEEDINGS

The information required by this Item 1 is contained within Note 17 (Contingencies) on pages 19 through 20 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 1, 2022, 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 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On December 9, 2021, the Company’s Board of Directors approved the extension for an additional two years ending August 13, 2024 of its previously announced share repurchase program and refreshed and increased the amount of the program up to an aggregate of $500.0 million of the Company's common stock depending on market conditions. During the first quarter of fiscal 2022, the Company repurchased approximately $17.2 million, including commissions, worth of its common stock in the open market. As of April 2, 2022, the Company had approximately $482.8 million remaining under the share repurchase program initially approved in August 2017 and subsequently extended to August 13, 2024.

The following table is a summary of equity securities purchased by the Company during the first quarter of fiscal 2022.

ISSUER PURCHASES OF EQUITY SECURITIES
Period	Total Number of Shares Purchased (1)		Average Price Paid per Share (2)	Total Number of Shares Purchased as part of Publicly Announced Plans or Programs (4)	Maximum Number (or Approximate Dollar Value) of Shares that may yet be Purchased Under the Plan or Programs at End of Period.
January 2022:
January 2, 2022 through January 29, 2022	474,243		64.69	184,672	$	488,847,862
February 2022:
January 30, 2022 through February 26, 2022	7,200		64.92	—	488,847,862
March 2022:
February 27, 2022 through April 2, 2022	456,670		76.68	86,291	482,816,622
Total	938,113	(3)	72.03	270,963	$	482,816,622

(1)    All shares purchased during the first quarter were acquired by the Company pursuant to the announced share repurchase program (other than shares withheld for taxes on restricted stock, restricted stock units, performance units and exercised options and the strike price on exercised options).

(2)    The average price paid per share is calculated on a trade date basis and excludes commissions.

(3)    Includes 667,150 shares withheld for taxes on restricted stock, restricted stock units, performance units and options.

(4)    Represents purchases made during the quarter under the authorization from the Company's Board of Directors, as announced, to repurchase up to an aggregate of $500.0 million of the Company's common stock over the period ending August 13, 2024, unless extended or shortened by the Board of Directors.

44

Item 6.  EXHIBITS

 The following exhibits are 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 2, 2022 and January 1, 2022; (ii) Consolidated Statements of Operations for the three months ended April 2, 2022 and April 3, 2021; (iii) Consolidated Statements of Comprehensive Income/(Loss) for the three months ended April 2, 2022 and April 3, 2021; (iv) Consolidated Statements of Stockholders' Equity for the three months ended April 2, 2022 and April 3, 2021; (v) Consolidated Statements of Cash Flows for the three months ended April 2, 2022 and April 3, 2021; (vi) Notes to the Consolidated Financial Statements.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

45

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 10, 2022	By:	/s/  Brad Phillips
			Brad Phillips
			Chief Financial Officer
			(Principal Financial Officer and Duly Authorized Officer)

46

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 10, 2022

      /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 10, 2022

      /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 2, 2022 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 10, 2022	Date: May 10, 2022

XML

Document and Entity Information Document - shares	3 Months Ended
	Apr. 02, 2022	May 05, 2022
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	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Apr. 02, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Common Stock, Shares Outstanding		161,514,066
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. 02, 2022	Jan. 01, 2022
Current assets:
Cash and cash equivalents	$ 99,460	$ 68,906
Restricted cash	100	166
Accounts receivable, less allowance for bad debts of $9,161 at April 2, 2022 and $8,196 at January 1, 2022	517,783	469,092
Inventories	491,694	457,465
Prepaid expenses	60,562	53,711
Income taxes refundable	25,047	1,075
Other current assets	64,387	38,599
Total current assets	1,259,033	1,089,014
Property, plant and equipment, less accumulated depreciation of $1,894,760 at April 2, 2022 and $1,855,420 at January 1, 2022	1,867,880	1,840,080
Intangible assets, less accumulated amortization of $576,357 at April 2, 2022 and $560,470 at January 1, 2022	409,627	397,801
Goodwill	1,236,524	1,219,116
Investment in unconsolidated subsidiaries	1,563,840	1,349,247
Operating lease right-of-use assets	165,128	155,464
Other assets	97,709	66,795
Deferred income taxes	15,875	16,211
Total assets	6,615,616	6,133,728
Current liabilities:
Current portion of long-term debt	35,337	24,407
Accounts payable, principally trade	351,253	307,118
Income taxes payable	25,117	32,310
Current operating lease liabilities	41,649	38,168
Accrued expenses	360,058	350,681
Total current liabilities	813,414	752,684
Long-term debt, net of current portion	1,677,925	1,438,974
Long-term operating lease liabilities	125,242	120,314
Other non-current liabilities	109,647	111,029
Deferred income taxes	393,738	362,942
Total liabilities	3,119,966	2,785,943
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 250,000,000 shares authorized; 173,384,469 and 171,734,603 shares issued at April 2, 2022 and January 1, 2022, respectively	1,734	1,717
Additional paid-in capital	1,637,930	1,627,816
Treasury stock, at cost; 11,880,712 and 10,942,599 shares at        April 2, 2022 and January 1, 2022, respectively	(438,906)	(374,721)
Accumulated other comprehensive loss	(311,369)	(321,690)
Retained earnings	2,535,891	2,347,838
Total Darling's stockholders’ equity	3,425,280	3,280,960
Noncontrolling interests	70,370	66,825
Total stockholders' equity	3,495,650	3,347,785
Total liabilities and stockholders' equity	$ 6,615,616	$ 6,133,728

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Apr. 02, 2022	Jan. 01, 2022
Assets:
Accounts Receivable, Allowance for Credit Loss, Current	$ 9,161	$ 8,196
Property, plant and equipment, accumulated depreciation	1,894,760	1,855,420
Intangible assets, accumulated amortization	$ 576,357	$ 560,470
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	173,384,469	171,734,603
Treasury stock, shares	11,880,712	10,942,599

XML

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Income Statement [Abstract]
Net sales	$ 1,366,334	$ 1,046,716
Costs and expenses:
Cost of sales and operating expenses	1,020,577	772,784
Gain on sale of assets	(389)	(64)
Selling, general and administrative expenses	102,032	97,398
Restructuring and asset impairment charges	0	778
Acquisition and integration costs	3,773	0
Depreciation and amortization	79,246	78,534
Total costs and expenses	1,205,239	949,430
Equity in net income of Diamond Green Diesel	71,804	102,225
Operating income	232,899	199,511
Other expense:
Interest expense	(15,603)	(16,428)
Foreign currency loss	(1,100)	(410)
Other expense, net	(742)	(1,159)
Total other expense	(17,445)	(17,997)
Equity in net income of other unconsolidated subsidiaries	1,360	612
Income before income taxes	216,814	182,126
Income tax expense	26,083	28,708
Net income	190,731	153,418
Net income attributable to noncontrolling interests	(2,678)	(1,652)
Net income attributable to Darling	$ 188,053	$ 151,766
Basic income per share (in dollars per share)	$ 1.17	$ 0.93
Diluted income per share (in dollars per share)	$ 1.14	$ 0.90

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Net income	$ 190,731	$ 153,418
Other comprehensive income/(loss), net of tax:
Foreign currency translation	3,382	(38,222)
Pension adjustments	429	792
Total other comprehensive income/(loss), net of tax	11,188	(41,829)
Total comprehensive income	201,919	111,589
Comprehensive income attributable to noncontrolling interests	3,545	3,186
Comprehensive income attributable to Darling	198,374	108,403
Soybean Meal
Other comprehensive income/(loss), net of tax:
Derivative adjustments	(240)	(257)
Corn Option
Other comprehensive income/(loss), net of tax:
Derivative adjustments	(5,056)	(800)
Heating Oil Swaps And Options
Other comprehensive income/(loss), net of tax:
Derivative adjustments	(16,762)	3,464
Foreign Exchange Contract
Other comprehensive income/(loss), net of tax:
Derivative adjustments	$ 29,435	$ (6,806)

XML

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 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 adjustments		$ 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						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
Balance (in shares) at Jan. 01, 2022											160,792,004
Stockholders' Equity, Beginning Balance at Jan. 01, 2022	3,347,785					3,280,960					$ 1,717	1,627,816	(374,721)	(321,690)					2,347,838	66,825
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	190,731					188,053													188,053	2,678
Pension liability adjustments, net of tax	429					429								429
Derivative adjustments		$ (16,762)	$ (5,056)	$ (240)	$ 29,435		$ (16,762)	$ (5,056)	$ (240)	$ 29,435					$ (16,762)	$ (5,056)	$ (240)	$ 29,435
Foreign currency translation	3,382					2,515								2,515						867
Issuance of non-vested stock (in shares)											5,000
Issuance of non-vested stock	18					18						18
Stock-based compensation	6,305					6,305						6,305
Treasury stock (in shares)											(938,113)
Treasury stock	(64,185)					(64,185)							(64,185)
Issuance of common stock (in shares)											1,644,866
Issuance of common stock	3,808					3,808					$ 17	3,791
Balance (in shares) at Apr. 02, 2022											161,503,757
Stockholders' Equity, Ending Balance at Apr. 02, 2022	$ 3,495,650					$ 3,425,280					$ 1,734	$ 1,637,930	$ (438,906)	$ (311,369)					$ 2,535,891	$ 70,370

XML

Consolidated Statements of Stockholders’ Equity (Parenthetical) - $ / shares	Apr. 02, 2022	Jan. 01, 2022	Apr. 03, 2021
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 ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Cash flows from operating activities:
Net income	$ 190,731	$ 153,418
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	79,246	78,534
Gain on sale of assets	(389)	(64)
Asset impairment	0	138
Deferred taxes	23,826	11,809
Decrease in long-term pension liability	(269)	(448)
Stock-based compensation expense	6,323	8,415
Write-off deferred loan costs	0	598
Deferred loan cost amortization	1,131	1,040
Equity in net income of Diamond Green Diesel and other unconsolidated subsidiaries	(73,164)	(102,837)
Distributions of earnings from Diamond Green Diesel and other unconsolidated subsidiaries	0	57
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	(41,317)	10,721
Income taxes refundable/payable	(31,224)	(760)
Inventories and prepaid expenses	(42,891)	(27,188)
Accounts payable and accrued expenses	58,964	(13,462)
Other	(18,775)	18,834
Net cash provided by operating activities	152,192	138,805
Cash flows from investing activities:
Capital expenditures	(71,618)	(60,751)
Acquisitions, net of cash acquired	(59,003)	(340)
Investment in Diamond Green Diesel	(164,750)	0
Investment in other unconsolidated subsidiaries	0	(4,449)
Gross proceeds from disposal of property, plant and equipment and other assets	974	1,629
Payments related to routes and other intangibles	(100)	(347)
Net cash used in investing activities	(294,497)	(64,258)
Cash flows from financing activities:
Proceeds from long-term debt	9,657	9,262
Payments on long-term debt	(12,128)	(60,444)
Borrowings from revolving credit facility	369,902	111,000
Payments on revolving credit facility	(134,000)	(97,000)
Net cash overdraft financing	9,830	499
Deferred loan costs	(1,810)	0
Issuance of common stock	0	50
Repurchase of common stock	(17,189)	0
Minimum withholding taxes paid on stock awards	(43,351)	(42,268)
Distributions to noncontrolling interests	0	(2,143)
Net cash provided/(used) in financing activities	180,911	(81,044)
Effect of exchange rate changes on cash	(8,118)	(3,847)
Net increase/(decrease) in cash, cash equivalents and restricted cash	30,488	(10,344)
Cash, cash equivalents and restricted cash at beginning of period	69,072	81,720
Cash, cash equivalents and restricted cash at end of period	$ 99,560	$ 71,376

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General	3 Months Ended
	Apr. 02, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
General	GeneralThe accompanying consolidated financial statements for the three month periods ended April 2, 2022 and April 3, 2021, 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 1, 2022.

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Summary of Significant Accounting Policies

3 Months Ended

Apr. 02, 2022

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 2, 2022, and include the 13 weeks ended April 2, 2022, and the 13 weeks ended April 3, 2021.

(c)    Accounts Receivable Factoring

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 2, 2022 and April 3, 2021, the Company sold approximately $126.3 million and $106.9 million of its trade receivables and incurred approximately $0.4 million and $0.3 million in fees, which are recorded as interest expense, respectively.

(d)    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.

(e)    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 continuing global COVID-19 pandemic, and related government-imposed movement restrictions and initiatives implemented to reduce the global transmission of COVID-19, as well as the Russia-Ukraine war, 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 2, 2022, 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 or the Russia-Ukraine war.

(f)    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 2, 2022					April 3, 2021
	Income		Shares	Per Share		Income		Shares	Per Share
Basic:
Net Income attributable to Darling	$	188,053	161,396	$	1.17	$	151,766	162,925	$	0.93
Diluted:
Effect of dilutive securities:
Add: Option shares in the money and dilutive effect of non-vested stock awards			3,976					5,733
Less: Pro forma treasury shares			(771)					(909)
Diluted:
Net income attributable to Darling	$	188,053	164,601	$	1.14	$	151,766	167,749	$	0.90

For the three months ended April 2, 2022 and April 3, 2021, respectively, no outstanding stock options were excluded from diluted income per common share as the effect was antidilutive. For the three months ended April 2, 2022 and April 3, 2021, respectively, 194,546 and 162,896 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. 02, 2022

Equity Method Investments and Joint Ventures [Abstract]

Investment in Unconsolidated Subsidiary

Investment in Unconsolidated SubsidiariesOn 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 expansion of the existing facility.

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

(in thousands)	March 31, 2022		December 31, 2021
Assets:
Total current assets	$	950,802	$	686,294
Property, plant and equipment, net	2,934,686		2,710,747
Other assets	59,196		51,514
Total assets	$	3,944,684	$	3,448,555
Liabilities and members' equity:
Total current portion of long term debt	$	165,356	$	165,092
Total other current liabilities	367,478		295,860
Total long term debt	340,591		344,309
Total other long term liabilities	17,328		17,531
Total members' equity	3,053,931		2,625,763
Total liabilities and members' equity	$	3,944,684	$	3,448,555

	Three Months Ended
(in thousands)	March 31, 2022		March 31, 2021
Revenues:
Operating revenues	$	980,692	$	431,633
Expenses:
Total costs and expenses less depreciation, amortization and accretion expense	807,572		215,234
Depreciation, amortization and accretion expense	26,492		11,687
Total costs and expenses	834,064		226,921
Operating income	146,628		204,712
Other income (expense)	(11)		58
Interest and debt expense, net	(3,009)		(320)
Net income	$	143,608	$	204,450

As of April 2, 2022, under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $1,528.7 million on the consolidated balance sheet. The Company has recorded equity in net income from the DGD Joint Venture of approximately $71.8 million and $102.2 million for the three months ended April 2, 2022 and April 3, 2021, respectively. In December 2019, the blender tax credits were extended for calendar years 2020, 2021 and 2022. For the three months ended March 31, 2022 and March 31, 2021, the DGD Joint Venture recorded approximately $155.8 million and $79.0 million of blenders tax credits, respectively. The blenders tax credits are recorded as a reduction of cost of sales by the DGD Joint Venture. In the three months ended April 2, 2022 and April 3, 2021, respectively, the Company made $164.75 million and no capital contributions to the DGD Joint Venture. In the three months ended April 2, 2022 and 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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Business Combinations and Asset Acquisitions

3 Months Ended

Apr. 02, 2022

Business Combination and Asset Acquisition [Abstract]

Business Combination Disclosure

AcquisitionsOn February 25, 2022, a wholly-owned international subsidiary of the Company acquired all of the shares of Group Op de Beeck, a Belgium digester, organic and industrial waste processing company, that is now included in our Fuel

Ingredients segment, for an initially estimated purchase price of approximately $91.7 million, plus or minus various closing adjustments in accordance with the stock purchase agreement. After estimated purchase price adjustments related to future estimated construction, net debt and working capital, the Company paid approximately $71.3 million in cash consideration. The Company recorded assets and liabilities consisting of property, plant and equipment of approximately $27.8 million, intangible assets of approximately $27.1 million, goodwill of approximately $25.5 million and other net liabilities of approximately $(9.1) million including working capital and net debt. Such amounts have been recorded on a preliminary basis pending finalization of future construction, actual net debt and working capital that is expected to occur within the next six months. The Company does not expect material changes to these pending amounts. The identifiable intangibles have a weighted average life of 15 years.

Additionally, the Company completed another immaterial acquisition in the first quarter of fiscal 2022.

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Inventories

3 Months Ended

Apr. 02, 2022

Inventory Disclosure [Abstract]

Inventories

Inventories

A summary of inventories follows (in thousands):

	April 2, 2022		January 1, 2022
Finished product	$	304,644	$	272,995
Work in process	80,955		81,158
Raw material	47,062		48,186
Supplies and other	59,033		55,126
	$	491,694	$	457,465

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Intangible Assets

3 Months Ended

Apr. 02, 2022

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 2, 2022		January 1, 2022
Indefinite Lived Intangible Assets:
Trade names	$	52,502	$	53,133
	52,502		53,133
Finite Lived Intangible Assets:
Routes	365,933		337,399
Permits	475,491		475,520
Non-compete agreements	645		645
Trade names	65,675		65,675
Royalty, consulting, land use rights and leasehold	25,738		25,899
	933,482		905,138
Accumulated Amortization:
Routes	(175,450)		(169,984)
Permits	(344,672)		(336,020)
Non-compete agreements	(469)		(441)
Trade names	(47,662)		(46,028)
Royalty, consulting, land use rights and leasehold	(8,104)		(7,997)
	(576,357)		(560,470)
Total Intangible assets, less accumulated amortization	$	409,627	$	397,801

Gross intangible assets changed due to acquisitions in the first quarter of fiscal 2022 by approximately $28.0 million and the remaining change was from foreign currency translation and retirements. Amortization expense for the three months ended April 2, 2022 and April 3, 2021, was approximately $16.5 million and $17.0 million, respectively.

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Goodwill

3 Months Ended

Apr. 02, 2022

Intangible Asset Disclosure Text Block [Abstract]

Goodwill

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

	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Balance at January 1, 2022
Goodwill	$	814,863	$	332,866	$	119,342	$	1,267,071
Accumulated impairment losses	(15,914)		(461)		(31,580)		(47,955)
	798,949		332,405		87,762		1,219,116
Goodwill acquired during year	—		—		25,892		25,892
Foreign currency translation	(802)		(5,267)		(2,415)		(8,484)
Balance at April 2, 2022
Goodwill	814,061		327,599		142,819		1,284,479
Accumulated impairment losses	(15,914)		(461)		(31,580)		(47,955)
	$	798,147	$	327,138	$	111,239	$	1,236,524

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Accrued Expense Accrued Expenses

3 Months Ended

Apr. 02, 2022

Payables and Accruals [Abstract]

Accrued Expenses

Accrued Expenses

Accrued expenses consist of the following (in thousands):

	April 2, 2022		January 1, 2022
Compensation and benefits	$	101,048	$	123,180
Accrued ad valorem, and franchise taxes	13,610		20,140
Accrued operating expenses	86,314		81,200
Other accrued expense	159,086		126,161
	$	360,058	$	350,681

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Debt

3 Months Ended

Apr. 02, 2022

Debt Disclosure [Abstract]

Debt

Debt

Debt consists of the following (in thousands):

	April 2, 2022		January 1, 2022
Amended Credit Agreement:
Revolving Credit Facility ($8.0 million denominated in C$ at April 2, 2022)	$	396,007	$	160,000
Term Loan B	200,000		200,000
Less unamortized deferred loan costs	(1,774)		(1,928)
Carrying value Term Loan B	198,226		198,072
5.25% Senior Notes due 2027 with effective interest of 5.47%	500,000		500,000
Less unamortized deferred loan costs	(4,753)		(4,959)
Carrying value 5.25% Senior Notes due 2027	495,247		495,041
3.625% Senior Notes due 2026 - Denominated in euro with effective interest of 3.83%	568,972		582,980
Less unamortized deferred loan costs - Denominated in euro	(4,647)		(5,031)
Carrying value 3.625% Senior Notes due 2026	564,325		577,949
Other Notes and Obligations	59,457		32,319
	1,713,262		1,463,381
Less Current Maturities	35,337		24,407
	$	1,677,925	$	1,438,974

As of April 2, 2022, the Company had outstanding debt under the Company's 3.625% Senior Notes due 2026 denominated in euros of €515.0 million. In addition, at April 2, 2022, the Company had finance lease obligations denominated in euros of approximately €4.3 million.

As of April 2, 2022, the Company had outstanding borrowings under the Company's amended credit agreement denominated in Canadian dollars of C$10.0 million.

As of April 2, 2022, the Company had other notes and obligations of $59.5 million that consist of various overdraft facilities of approximately $9.9 million, a China working capital line of credit of approximately $20.5 million and other debt of approximately $29.1 million.

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 March 2, 2022, the Company, and certain of its subsidiaries entered into an amendment (the "Eighth Amendment") with its lenders to the Amended Credit Agreement. Among other things, the Eighth Amendment (a) added a new delayed draw incremental term facility (the “term A-2 facility”) and new incremental Term Loans pursuant thereto, in an aggregate principal amount of up to $500.0 million, which is available to the Company for general corporate purposes, including acquisitions and capital expenditures, and will mature on December 9, 2026 and (b) updated and modified certain other terms and provisions of the Amended Credit Agreement to reflect the addition of the term A-2 facility to the Amended Credit Agreement.

The interest rate applicable to any borrowings under the revolving loan facility will equal the adjusted term secured overnight financing rate (SOFR) for U.S. dollar borrowings or the adjusted euro interbank rate (EURIBOR) for euro borrowings or the adjusted daily simple Sterling overnight index average (SONIA) for British pound borrowings or CDOR for Canadian dollar borrowings plus 1.25% per annum or base rate or the adjusted term SOFR for U.S. dollar borrowings or Canadian prime rate for Canadian dollar borrowings or the adjusted daily simple European short term rate (ESTR) for euro borrowings or the adjusted daily SONIA rate for British pound borrowings plus 0.25% per annum subject to certain step-ups or step-downs based on the Company's total leverage ratio. The interest rate applicable to any borrowing under the delayed draw term A-1 facility will equal the adjusted term SOFR plus a minimum of 1.50% per annum subject to certain step-ups based on the Company's total leverage ratio. The interest rate applicable to any borrowing under the delayed draw term A-2 facility will equal the adjusted term SOFR plus a minimum of 1.00% per annum subject to certain 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%.

As of April 2, 2022, the Company had $70.0 million outstanding under the revolver at base rate plus a margin of 0.25% per annum for a total of 3.75% per annum and $318.0 million outstanding under the revolver as SOFR plus a margin of 1.25% per annum for a total of 1.625%. The Company had $200.0 million outstanding under the term loan B facility at LIBOR plus a margin of 2.00% per annum for a total of 2.25% per annum. The Company had C$10.0 million outstanding under the revolver at CDOR plus a margin of 1.25% per annum for a total of 2.12%. As of April 2, 2022, the Company had revolving loan facility availability of $1,049.7 million, availability on a delayed draw term A-1 facility of $400.0 million and availability on a delayed draw term A-2 facility of $500.0 million under the Amended Credit Agreement taking into account amounts borrowed, ancillary facilities of $50.4 million 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 $11.8 million at April 2, 2022. The Company capitalized approximately $1.3 million of deferred loan costs as of April 2, 2022 in connection with the Eighth Amendment.

As of April 2, 2022, 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% Senior Notes due 2027 and the 3.625% Senior Notes due 2026.

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Income Taxes

3 Months Ended

Apr. 02, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company has provided income taxes for the three month periods ended April 2, 2022 and April 3, 2021, based on its estimate of the effective tax rate for the entire 2022 and 2021 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.

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 2, 2022 and April 3, 2021, the Company had $11.3 million and $5.6 million, respectively of gross unrecognized tax benefits and $1.2 million and $0.4 million,

respectively of related accrued interest and penalties. The Company's gross unrecognized tax benefits are not expected to decrease significantly within the next twelve months.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. 02, 2022

Equity [Abstract]

Other Comprehensive Income

Other Comprehensive Income/(Loss)

The components of other comprehensive income/(loss) and the related tax impacts for the three months ended April 2, 2022 and April 3, 2021 are as follows (in thousands):

	Three Months Ended
	Before-Tax				Tax (Expense)				Net-of-Tax
	Amount				or Benefit				Amount
	April 2, 2022		April 3, 2021		April 2, 2022		April 3, 2021		April 2, 2022		April 3, 2021
Defined benefit pension plans
Amortization of prior service (cost)/benefit	5		5		(1)		(1)		4		4
Amortization of actuarial loss	570		1,052		(145)		(264)		425		788
Total defined benefit pension plans	575		1,057		(146)		(265)		429		792
Soybean meal option derivatives
Reclassified to earnings	(441)		(280)		112		71		(329)		(209)
Activity recognized in other comprehensive income/(loss)	120		(64)		(31)		16		89		(48)
Total soybean meal option derivatives	(321)		(344)		81		87		(240)		(257)
Corn option derivatives
Reclassified to earnings	4,107		3,920		(1,043)		(996)		3,064		2,924
Activity recognized in other comprehensive income/(loss)	(10,885)		(4,993)		2,765		1,269		(8,120)		(3,724)
Total corn option derivatives	(6,778)		(1,073)		1,722		273		(5,056)		(800)
Heating oil derivatives
Activity recognized in other comprehensive income/(loss)	(22,470)		4,644		5,708		(1,180)		(16,762)		3,464
Total heating oil derivatives	(22,470)		4,644		5,708		(1,180)		(16,762)		3,464
Foreign exchange derivatives
Reclassified to earnings	(1,071)		224		360		(75)		(711)		149
Activity recognized in other comprehensive income/(loss)	45,422		(10,457)		(15,276)		3,502		30,146		(6,955)
Total foreign exchange derivatives	44,351		(10,233)		(14,916)		3,427		29,435		(6,806)
Foreign currency translation	2,661		(39,737)		721		1,515		3,382		(38,222)
Other comprehensive income/(loss)	$	18,018	$	(45,686)	$	(6,830)	$	3,857	$	11,188	$	(41,829)

The following table presents the amounts reclassified out of each component of other comprehensive income/(loss), net of tax for the three ended April 2, 2022 and April 3, 2021 as follows (in thousands):

	Three Months Ended
	April 2, 2022		April 3, 2021		Statement of Operations Classification
Derivative instruments
Soybean meal derivatives	$	441	$	280	Net sales
Foreign exchange contracts	1,071		(224)		Net sales
Corn option derivatives	(4,107)		(3,920)		Cost of sales and operating expenses
	(2,595)		(3,864)		Total before tax
	571		1,000		Income taxes
	(2,024)		(2,864)		Net of tax
Defined benefit pension plans
Amortization of prior service cost	$	(5)	$	(5)	(a)
Amortization of actuarial loss	(570)		(1,052)		(a)
	(575)		(1,057)		Total before tax
	146		265		Income taxes
	(429)		(792)		Net of tax
Total reclassifications	$	(2,453)	$	(3,656)	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 2, 2022 as follows (in thousands):

	Three Months Ended April 2, 2022
	Foreign Currency		Derivative		Defined Benefit
	Translation		Instruments		Pension Plans		Total
Accumulated Other Comprehensive loss January 1, 2022, attributable to Darling, net of tax	$	(289,586)	$	(6,456)	$	(25,648)	$	(321,690)
Other comprehensive loss before reclassifications	3,382		5,353		—		8,735
Amounts reclassified from accumulated other comprehensive loss	—		2,024		429		2,453
Net current-period other comprehensive income/(loss)	3,382		7,377		429		11,188
Noncontrolling interest	867		—		—		867
Accumulated Other Comprehensive loss April 2, 2022, attributable to Darling, net of tax	$	(287,071)	$	921	$	(25,219)	$	(311,369)

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Stockholders' Equity	3 Months Ended
	Apr. 02, 2022
Equity [Abstract]
Stockholders' Equity	Stockholders' EquityFiscal 2022 Long-Term Incentive Opportunity Awards (2022 LTIP). On January 3, 2022, the Compensation Committee (the “Committee”) of the Company's Board of Directors adopted the 2022 LTIP pursuant to which they awarded certain of the Company's key employees, 82,791 restricted stock units and 115,615 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 gross investment (“ROGI”), as calculated in accordance with the terms of the award agreement, relative to the average ROGI of the Company's performance peer group companies, with the earned award to be determined in the first quarter of fiscal 2025, 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 (up to 225%) depending on the Company's ROGI 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 December 9, 2021, the Company’s Board of Directors approved the extension for an additional two years of its previously announced share repurchase program and refreshed and increased the amount of the program up to an aggregate of $500.0 million of the Company's Common Stock depending on market conditions. During the first three months of fiscal 2022, $17.2 million of common stock was repurchased under the repurchase program. As of April 2, 2022, the Company had approximately $482.8 million remaining under the share repurchase program initially approved in August 2017 and subsequently extended to August 13, 2024.

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Employee Benefit Plans

3 Months Ended

Apr. 02, 2022

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

Net pension cost for the three months ended April 2, 2022 and April 3, 2021 includes the following components (in thousands):

	Pension Benefits
	Three Months Ended
	April 2, 2022		April 3, 2021
Service cost	$	828	$	785
Interest cost	1,320		1,204
Expected return on plan assets	(2,165)		(2,321)
Amortization of prior service cost	5		5
Amortization of actuarial loss	570		1,052
Net pension cost	$	558	$	725

Based on actuarial estimates at April 2, 2022, the Company expects to contribute approximately $3.9 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 2, 2022 and April 3, 2021 of approximately $0.8 million and $0.9 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. As of April 2, 2022, the Company has an aggregate accrued liability of approximately $3.8 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. 02, 2022

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 2, 2022, 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.

Cash Flow Hedges

In 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 2022. At April 2, 2022 and January 1, 2022, the aggregate fair value of these corn option contracts was approximately $10.2 million and $2.8 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 2021 and fiscal 2022, 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 2023. At April 2, 2022 and January 1, 2022, the aggregate fair value of these foreign exchange contracts was approximately $41.1 million and $0.6 million, respectively. These amounts are included in other current assets, noncurrent assets and accrued expense on the balance sheet, with an offset recorded in accumulated other comprehensive loss.

In fiscal 2021 and fiscal 2022, the Company entered into soybean meal forward contracts to hedge a portion of its forecasted poultry meal sales into the third quarter of fiscal 2022. At April 2, 2022 and January 1, 2022, the aggregate fair value of the soybean meal contracts was $0.1 million and $0.1 million, respectively. These amounts are included in other current assets and accrued expenses on the balance sheet, with an offset recorded in accumulated other comprehensive loss.

As of April 2, 2022, 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	60,371	Euro	10,520
Brazilian real	3,074,644	U.S. dollar	737,900
Euro	34,817	U.S. dollar	39,265
Euro	25,215	Polish zloty	120,000
Euro	5,653	Japanese yen	752,890
Euro	29,996	Chinese renminbi	212,151
Euro	14,759	Australian dollar	22,400
Euro	3,412	British pound	2,860
Euro	36	Canadian dollar	50
Polish zloty	431	U.S. dollar	100
Polish zloty	34,710	Euro	7,338
British pound	229	Euro	273
Japanese yen	331,807	U.S. dollar	2,792
U.S. dollar	275	Japanese yen	34,000
U.S. dollar	236,171	Euro	215,000
Australian dollar	1,243	Euro	786
Canadian dollar	13,107	U.S. dollar	10,500

The Company estimates the amount that will be reclassified from accumulated other comprehensive income at April 2, 2022 into earnings over the next 12 months will be approximately $7.9 million. As of April 2, 2022, 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 2, 2022 and April 3, 2021 (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 2, 2022		April 3, 2021
Foreign exchange	Foreign currency loss	$	7,466	$	5,389
Foreign exchange	Net sales	158		729
Foreign exchange	Cost of sales and operating expenses	(256)		(444)
Foreign exchange	Selling, general and administrative expenses	(6,524)		2,531
Corn options and futures	Net sales	(2,136)		(998)
Corn options and futures	Cost of sales and operating expenses	5,553		1,469
Total		$	4,261	$	8,676

At April 2, 2022, the Company had forward purchase agreements in place for purchases of approximately $126.2 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. 02, 2022

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 2, 2022 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 2, 2022 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	$	45,189	$	—	$	45,189	$	—
Total Assets	$	45,189	$	—	$	45,189	$	—
Liabilities:
Derivative instruments	$	15,608	$	—	$	15,608	$	—
5.25% Senior notes	510,100		—		510,100		—
3.625% Senior notes	571,532		—		571,532		—
Term loan B	199,500		—		199,500		—
Revolver debt	390,067		—		390,067		—
Total Liabilities	$	1,686,807	$	—	$	1,686,807	$	—

			Fair Value Measurements at January 1, 2022 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	$	5,031	$	—	$	5,031	$	—
Total Assets	$	5,031	$	—	$	5,031	$	—
Liabilities:
Derivative instruments	$	7,173	$	—	$	7,173	$	—
5.25% Senior notes	515,600		—		515,600		—
3.625% Senior notes	591,200		—		591,200		—
Term loan B	200,000		—		200,000		—
Revolver debt	158,400		—		158,400		—
Total Liabilities	$	1,472,373	$	—	$	1,472,373	$	—

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. 02, 2022
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 incurred additional restructuring and asset impairment charges in the first quarter of fiscal 2021 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. 02, 2022

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 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 2, 2022 and January 1, 2022, the reserves for insurance, environmental, litigation and tax contingencies reflected on the balance sheet in accrued expenses and other non-current liabilities were approximately $80.5 million and $78.4 million, respectively.  The Company has insurance recovery receivables of approximately $31.8 million as of April 2, 2022 and January 1, 2022, 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 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 made no demand on the Company and laid 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 Company 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 eight contaminants of concern identified in the ROD (the “COCs”). Subsequently, the EPA conducted a settlement analysis using a third-party allocator and offered early cash out settlements to those PRPs for whom the third-party allocator determined did not discharge any of the COCs. The Company participated in this allocation process, and in November 2019, 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. 02, 2022

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, Darling Canada, 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 2, 2022
Net Sales	$	879,438	$	354,814	$	132,082	$	—	$	1,366,334
Cost of sales and operating expenses	645,523		270,312		104,742		—		1,020,577
Gross Margin	233,915		84,502		27,340		—		345,757
Gain on sale of assets	(341)		(9)		(39)		—		(389)
Selling, general and administrative expenses	56,209		26,844		3,920		15,059		102,032
Acquisition and integration costs	—		—		—		3,773		3,773
Depreciation and amortization	54,350		15,450		6,674		2,772		79,246
Equity in net income of Diamond Green Diesel	—		—		71,804		—		71,804
Segment operating income/(loss)	123,697		42,217		88,589		(21,604)		232,899
Equity in net income of other unconsolidated subsidiaries	1,360		—		—		—		1,360
Segment income/(loss)	125,057		42,217		88,589		(21,604)		234,259
Total other expense									(17,445)
Income before income taxes									$	216,814
Segment assets at April 2, 2022	$	2,751,078	$	1,262,887	$	1,982,190	$	619,461	$	6,615,616

	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 expenses	52,620		25,191		4,867		14,720		97,398
Restructuring and 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 January 1, 2022	$	2,714,528	$	1,205,217	$	1,658,892	$	555,091	$	6,133,728

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Revenue (Notes)

3 Months Ended

Apr. 02, 2022

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 2, 2022 and April 3, 2021 (in thousands):

	Three Months Ended April 2, 2022
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	755,838	$	83,900	$	—	$	839,738
Europe	114,463		182,010		132,082		428,555
China	6,636		66,307		—		72,943
South America	—		8,496		—		8,496
Other	2,501		14,101		—		16,602
Net sales	$	879,438	$	354,814	$	132,082	$	1,366,334
Major product types
Fats	$	368,394	$	52,264	$	—	$	420,658
Used cooking oil	94,896		—		—		94,896
Proteins	270,187		—		—		270,187
Bakery	78,511		—		—		78,511
Other rendering	57,544		—		—		57,544
Food ingredients	—		270,516		—		270,516
Bioenergy	—		—		132,082		132,082
Other	9,906		32,034		—		41,940
Net sales	$	879,438	$	354,814	$	132,082	$	1,366,334

	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

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 2022 under these long-term supply contracts was approximately $35.0 million, with the remaining performance obligations to be recognized in future periods (generally 5 years) of approximately $1.21 billion.

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Related Party Transactions

3 Months Ended

Apr. 02, 2022

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 2, 2022 and April 3, 2021, the Company has recorded sales to the DGD Joint Venture of approximately $214.4 million and $89.0 million, respectively. At April 2, 2022 and January 1, 2022, the Company has $42.8 million and $43.8 million in outstanding receivables due from the DGD Joint Venture, respectively. In addition, the Company has eliminated approximately $29.8 million and $14.6 million of additional sales for the three months ended April 2, 2022 and April 3, 2021, respectively to defer the Company's portion of profit of approximately $8.4 million and $4.1 million on those sales relating to inventory assets remaining on the DGD Joint Venture's balance sheet at April 2, 2022 and April 3, 2021, 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, 2023, unless extended by agreement of the parties. During the fourth quarter of fiscal 2021, the DGD Joint Venture borrowed all $50.0 million available under the DGD Loan Agreement, including the Company's full $25.0 million commitment and paid interest to the Company for the three months ended April 2, 2022 of approximately $0.2 million. As of April 2, 2022, $25.0 million was owed to Darling Green under the DGD Loan Agreement. The note receivable amount is included in other assets on the consolidated balance sheet.

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 a maximum of approximately $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 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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Cash Flow Information

3 Months Ended

Apr. 02, 2022

Nonmonetary Transactions [Abstract]

Cash Flow Information

Cash Flow Information

The following table sets forth supplemental cash flow information and non-cash transactions (in thousands):

	Three Months Ended
	April 2, 2022		April 3, 2021
Supplemental disclosure of cash flow information:
Accrued capital expenditures	$	(7,324)	$	(9,678)
Cash paid during the period for:
Interest, net of capitalized interest	$	2,124	$	2,774
Income taxes, net of refunds	$	41,423	$	15,578
Non-cash operating activities
Operating lease right of use asset obtained in exchange for new lease liabilities	$	33,072	$	12,404
Non-cash financing activities
Debt issued for assets	$	635	$	—

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New Accounting Pronouncements	3 Months Ended
	Apr. 02, 2022
New Accounting Pronouncements [Abstract]
New Accounting Pronouncements	New Accounting PronouncementsThe Company does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying consolidated financial statements.

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Subsequent Events

3 Months Ended

Apr. 02, 2022

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On May 2, 2022, the Company acquired Valley Proteins for approximately $1.2 billion in cash. The Company financed this transaction by borrowing all of the Company's delayed draw term A-1 facility of $400.0 million and delayed draw term A-2 facility of $500.0 million and the remainder through revolver borrowings under the Company's Amended Credit Agreement.

On May 5, 2022, the Company announced that we entered into a definitive agreement to acquire all the shares of the FASA Group, the largest independent rendering company in Brazil, for approximately R$2.8 billion Brazilian Real in cash ($560.0 million USD at the exchange rate in effect on the signing date), subject to post closing adjustments and a contingent payment based on future earnings growth. The closing of the transaction is subject to customary closing conditions and regulatory approval in Brazil.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Apr. 02, 2022

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 2, 2022, and include the 13 weeks ended April 2, 2022, and the 13 weeks ended April 3, 2021.

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.

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.

As a result of the continuing global COVID-19 pandemic, and related government-imposed movement restrictions and initiatives implemented to reduce the global transmission of COVID-19, as well as the Russia-Ukraine war, 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 2, 2022, 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 or the Russia-Ukraine war.

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.

Income Taxes

The Company has provided income taxes for the three month periods ended April 2, 2022 and April 3, 2021, based on its estimate of the effective tax rate for the entire 2022 and 2021 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.

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Summary of Significant Accounting Policies (Tables)

3 Months Ended

Apr. 02, 2022

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 2, 2022					April 3, 2021
	Income		Shares	Per Share		Income		Shares	Per Share
Basic:
Net Income attributable to Darling	$	188,053	161,396	$	1.17	$	151,766	162,925	$	0.93
Diluted:
Effect of dilutive securities:
Add: Option shares in the money and dilutive effect of non-vested stock awards			3,976					5,733
Less: Pro forma treasury shares			(771)					(909)
Diluted:
Net income attributable to Darling	$	188,053	164,601	$	1.14	$	151,766	167,749	$	0.90

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Investment in Unconsolidated Subsidiary (Tables)

3 Months Ended

Apr. 02, 2022

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, 2022		December 31, 2021
Assets:
Total current assets	$	950,802	$	686,294
Property, plant and equipment, net	2,934,686		2,710,747
Other assets	59,196		51,514
Total assets	$	3,944,684	$	3,448,555
Liabilities and members' equity:
Total current portion of long term debt	$	165,356	$	165,092
Total other current liabilities	367,478		295,860
Total long term debt	340,591		344,309
Total other long term liabilities	17,328		17,531
Total members' equity	3,053,931		2,625,763
Total liabilities and members' equity	$	3,944,684	$	3,448,555

	Three Months Ended
(in thousands)	March 31, 2022		March 31, 2021
Revenues:
Operating revenues	$	980,692	$	431,633
Expenses:
Total costs and expenses less depreciation, amortization and accretion expense	807,572		215,234
Depreciation, amortization and accretion expense	26,492		11,687
Total costs and expenses	834,064		226,921
Operating income	146,628		204,712
Other income (expense)	(11)		58
Interest and debt expense, net	(3,009)		(320)
Net income	$	143,608	$	204,450

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Inventories (Tables)

3 Months Ended

Apr. 02, 2022

Inventory Disclosure [Abstract]

Schedule of Inventory

A summary of inventories follows (in thousands):

	April 2, 2022		January 1, 2022
Finished product	$	304,644	$	272,995
Work in process	80,955		81,158
Raw material	47,062		48,186
Supplies and other	59,033		55,126
	$	491,694	$	457,465

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Intangible Assets (Tables)

3 Months Ended

Apr. 02, 2022

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 2, 2022		January 1, 2022
Indefinite Lived Intangible Assets:
Trade names	$	52,502	$	53,133
	52,502		53,133
Finite Lived Intangible Assets:
Routes	365,933		337,399
Permits	475,491		475,520
Non-compete agreements	645		645
Trade names	65,675		65,675
Royalty, consulting, land use rights and leasehold	25,738		25,899
	933,482		905,138
Accumulated Amortization:
Routes	(175,450)		(169,984)
Permits	(344,672)		(336,020)
Non-compete agreements	(469)		(441)
Trade names	(47,662)		(46,028)
Royalty, consulting, land use rights and leasehold	(8,104)		(7,997)
	(576,357)		(560,470)
Total Intangible assets, less accumulated amortization	$	409,627	$	397,801

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Goodwill (Tables)

3 Months Ended

Apr. 02, 2022

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 1, 2022
Goodwill	$	814,863	$	332,866	$	119,342	$	1,267,071
Accumulated impairment losses	(15,914)		(461)		(31,580)		(47,955)
	798,949		332,405		87,762		1,219,116
Goodwill acquired during year	—		—		25,892		25,892
Foreign currency translation	(802)		(5,267)		(2,415)		(8,484)
Balance at April 2, 2022
Goodwill	814,061		327,599		142,819		1,284,479
Accumulated impairment losses	(15,914)		(461)		(31,580)		(47,955)
	$	798,147	$	327,138	$	111,239	$	1,236,524

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Accrued Expense (Tables)

3 Months Ended

Apr. 02, 2022

Payables and Accruals [Abstract]

Schedule of Accrued Expenses

Accrued expenses consist of the following (in thousands):

	April 2, 2022		January 1, 2022
Compensation and benefits	$	101,048	$	123,180
Accrued ad valorem, and franchise taxes	13,610		20,140
Accrued operating expenses	86,314		81,200
Other accrued expense	159,086		126,161
	$	360,058	$	350,681

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Debt (Tables)

3 Months Ended

Apr. 02, 2022

Debt Disclosure [Abstract]

Schedule of Debt

Debt consists of the following (in thousands):

	April 2, 2022		January 1, 2022
Amended Credit Agreement:
Revolving Credit Facility ($8.0 million denominated in C$ at April 2, 2022)	$	396,007	$	160,000
Term Loan B	200,000		200,000
Less unamortized deferred loan costs	(1,774)		(1,928)
Carrying value Term Loan B	198,226		198,072
5.25% Senior Notes due 2027 with effective interest of 5.47%	500,000		500,000
Less unamortized deferred loan costs	(4,753)		(4,959)
Carrying value 5.25% Senior Notes due 2027	495,247		495,041
3.625% Senior Notes due 2026 - Denominated in euro with effective interest of 3.83%	568,972		582,980
Less unamortized deferred loan costs - Denominated in euro	(4,647)		(5,031)
Carrying value 3.625% Senior Notes due 2026	564,325		577,949
Other Notes and Obligations	59,457		32,319
	1,713,262		1,463,381
Less Current Maturities	35,337		24,407
	$	1,677,925	$	1,438,974

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Other Comprehensive Income (Tables)

3 Months Ended

Apr. 02, 2022

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 2, 2022 and April 3, 2021 are as follows (in thousands):

	Three Months Ended
	Before-Tax				Tax (Expense)				Net-of-Tax
	Amount				or Benefit				Amount
	April 2, 2022		April 3, 2021		April 2, 2022		April 3, 2021		April 2, 2022		April 3, 2021
Defined benefit pension plans
Amortization of prior service (cost)/benefit	5		5		(1)		(1)		4		4
Amortization of actuarial loss	570		1,052		(145)		(264)		425		788
Total defined benefit pension plans	575		1,057		(146)		(265)		429		792
Soybean meal option derivatives
Reclassified to earnings	(441)		(280)		112		71		(329)		(209)
Activity recognized in other comprehensive income/(loss)	120		(64)		(31)		16		89		(48)
Total soybean meal option derivatives	(321)		(344)		81		87		(240)		(257)
Corn option derivatives
Reclassified to earnings	4,107		3,920		(1,043)		(996)		3,064		2,924
Activity recognized in other comprehensive income/(loss)	(10,885)		(4,993)		2,765		1,269		(8,120)		(3,724)
Total corn option derivatives	(6,778)		(1,073)		1,722		273		(5,056)		(800)
Heating oil derivatives
Activity recognized in other comprehensive income/(loss)	(22,470)		4,644		5,708		(1,180)		(16,762)		3,464
Total heating oil derivatives	(22,470)		4,644		5,708		(1,180)		(16,762)		3,464
Foreign exchange derivatives
Reclassified to earnings	(1,071)		224		360		(75)		(711)		149
Activity recognized in other comprehensive income/(loss)	45,422		(10,457)		(15,276)		3,502		30,146		(6,955)
Total foreign exchange derivatives	44,351		(10,233)		(14,916)		3,427		29,435		(6,806)
Foreign currency translation	2,661		(39,737)		721		1,515		3,382		(38,222)
Other comprehensive income/(loss)	$	18,018	$	(45,686)	$	(6,830)	$	3,857	$	11,188	$	(41,829)

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 ended April 2, 2022 and April 3, 2021 as follows (in thousands):

	Three Months Ended
	April 2, 2022		April 3, 2021		Statement of Operations Classification
Derivative instruments
Soybean meal derivatives	$	441	$	280	Net sales
Foreign exchange contracts	1,071		(224)		Net sales
Corn option derivatives	(4,107)		(3,920)		Cost of sales and operating expenses
	(2,595)		(3,864)		Total before tax
	571		1,000		Income taxes
	(2,024)		(2,864)		Net of tax
Defined benefit pension plans
Amortization of prior service cost	$	(5)	$	(5)	(a)
Amortization of actuarial loss	(570)		(1,052)		(a)
	(575)		(1,057)		Total before tax
	146		265		Income taxes
	(429)		(792)		Net of tax
Total reclassifications	$	(2,453)	$	(3,656)	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 2, 2022 as follows (in thousands):

	Three Months Ended April 2, 2022
	Foreign Currency		Derivative		Defined Benefit
	Translation		Instruments		Pension Plans		Total
Accumulated Other Comprehensive loss January 1, 2022, attributable to Darling, net of tax	$	(289,586)	$	(6,456)	$	(25,648)	$	(321,690)
Other comprehensive loss before reclassifications	3,382		5,353		—		8,735
Amounts reclassified from accumulated other comprehensive loss	—		2,024		429		2,453
Net current-period other comprehensive income/(loss)	3,382		7,377		429		11,188
Noncontrolling interest	867		—		—		867
Accumulated Other Comprehensive loss April 2, 2022, attributable to Darling, net of tax	$	(287,071)	$	921	$	(25,219)	$	(311,369)

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Employee Benefit Plans (Tables)

3 Months Ended

Apr. 02, 2022

Retirement Benefits [Abstract]

Net pension cost

Net pension cost for the three months ended April 2, 2022 and April 3, 2021 includes the following components (in thousands):

	Pension Benefits
	Three Months Ended
	April 2, 2022		April 3, 2021
Service cost	$	828	$	785
Interest cost	1,320		1,204
Expected return on plan assets	(2,165)		(2,321)
Amortization of prior service cost	5		5
Amortization of actuarial loss	570		1,052
Net pension cost	$	558	$	725

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Derivatives (Tables)

3 Months Ended

Apr. 02, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

(in thousands):

Functional Currency		Contract Currency
Type	Amount	Type	Amount
Brazilian real	60,371	Euro	10,520
Brazilian real	3,074,644	U.S. dollar	737,900
Euro	34,817	U.S. dollar	39,265
Euro	25,215	Polish zloty	120,000
Euro	5,653	Japanese yen	752,890
Euro	29,996	Chinese renminbi	212,151
Euro	14,759	Australian dollar	22,400
Euro	3,412	British pound	2,860
Euro	36	Canadian dollar	50
Polish zloty	431	U.S. dollar	100
Polish zloty	34,710	Euro	7,338
British pound	229	Euro	273
Japanese yen	331,807	U.S. dollar	2,792
U.S. dollar	275	Japanese yen	34,000
U.S. dollar	236,171	Euro	215,000
Australian dollar	1,243	Euro	786
Canadian dollar	13,107	U.S. dollar	10,500

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 2, 2022 and April 3, 2021 (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 2, 2022		April 3, 2021
Foreign exchange	Foreign currency loss	$	7,466	$	5,389
Foreign exchange	Net sales	158		729
Foreign exchange	Cost of sales and operating expenses	(256)		(444)
Foreign exchange	Selling, general and administrative expenses	(6,524)		2,531
Corn options and futures	Net sales	(2,136)		(998)
Corn options and futures	Cost of sales and operating expenses	5,553		1,469
Total		$	4,261	$	8,676

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Fair Value Measurement (Tables)

3 Months Ended

Apr. 02, 2022

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring and Nonrecurring 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 2, 2022 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	$	45,189	$	—	$	45,189	$	—
Total Assets	$	45,189	$	—	$	45,189	$	—
Liabilities:
Derivative instruments	$	15,608	$	—	$	15,608	$	—
5.25% Senior notes	510,100		—		510,100		—
3.625% Senior notes	571,532		—		571,532		—
Term loan B	199,500		—		199,500		—
Revolver debt	390,067		—		390,067		—
Total Liabilities	$	1,686,807	$	—	$	1,686,807	$	—

			Fair Value Measurements at January 1, 2022 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	$	5,031	$	—	$	5,031	$	—
Total Assets	$	5,031	$	—	$	5,031	$	—
Liabilities:
Derivative instruments	$	7,173	$	—	$	7,173	$	—
5.25% Senior notes	515,600		—		515,600		—
3.625% Senior notes	591,200		—		591,200		—
Term loan B	200,000		—		200,000		—
Revolver debt	158,400		—		158,400		—
Total Liabilities	$	1,472,373	$	—	$	1,472,373	$	—

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Business Segments (Tables)

3 Months Ended

Apr. 02, 2022

Segment Reporting [Abstract]

Business Segments

Business Segments (in thousands):

	Feed Ingredients		Food Ingredients		Fuel Ingredients		Corporate		Total
Three Months Ended April 2, 2022
Net Sales	$	879,438	$	354,814	$	132,082	$	—	$	1,366,334
Cost of sales and operating expenses	645,523		270,312		104,742		—		1,020,577
Gross Margin	233,915		84,502		27,340		—		345,757
Gain on sale of assets	(341)		(9)		(39)		—		(389)
Selling, general and administrative expenses	56,209		26,844		3,920		15,059		102,032
Acquisition and integration costs	—		—		—		3,773		3,773
Depreciation and amortization	54,350		15,450		6,674		2,772		79,246
Equity in net income of Diamond Green Diesel	—		—		71,804		—		71,804
Segment operating income/(loss)	123,697		42,217		88,589		(21,604)		232,899
Equity in net income of other unconsolidated subsidiaries	1,360		—		—		—		1,360
Segment income/(loss)	125,057		42,217		88,589		(21,604)		234,259
Total other expense									(17,445)
Income before income taxes									$	216,814
Segment assets at April 2, 2022	$	2,751,078	$	1,262,887	$	1,982,190	$	619,461	$	6,615,616

	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 expenses	52,620		25,191		4,867		14,720		97,398
Restructuring and 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 January 1, 2022	$	2,714,528	$	1,205,217	$	1,658,892	$	555,091	$	6,133,728

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Revenue (Tables)

3 Months Ended

Apr. 02, 2022

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 2, 2022 and April 3, 2021 (in thousands):

	Three Months Ended April 2, 2022
	Feed Ingredients		Food Ingredients		Fuel Ingredients		Total
Geographic Area
North America	$	755,838	$	83,900	$	—	$	839,738
Europe	114,463		182,010		132,082		428,555
China	6,636		66,307		—		72,943
South America	—		8,496		—		8,496
Other	2,501		14,101		—		16,602
Net sales	$	879,438	$	354,814	$	132,082	$	1,366,334
Major product types
Fats	$	368,394	$	52,264	$	—	$	420,658
Used cooking oil	94,896		—		—		94,896
Proteins	270,187		—		—		270,187
Bakery	78,511		—		—		78,511
Other rendering	57,544		—		—		57,544
Food ingredients	—		270,516		—		270,516
Bioenergy	—		—		132,082		132,082
Other	9,906		32,034		—		41,940
Net sales	$	879,438	$	354,814	$	132,082	$	1,366,334

	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

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Cash Flow Information (Tables)

3 Months Ended

Apr. 02, 2022

Nonmonetary Transactions [Abstract]

Schedule of Cash Flow, Supplemental Disclosures

The following table sets forth supplemental cash flow information and non-cash transactions (in thousands):

	Three Months Ended
	April 2, 2022		April 3, 2021
Supplemental disclosure of cash flow information:
Accrued capital expenditures	$	(7,324)	$	(9,678)
Cash paid during the period for:
Interest, net of capitalized interest	$	2,124	$	2,774
Income taxes, net of refunds	$	41,423	$	15,578
Non-cash operating activities
Operating lease right of use asset obtained in exchange for new lease liabilities	$	33,072	$	12,404
Non-cash financing activities
Debt issued for assets	$	635	$	—

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Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Summary of Significant Accounting Policies [Line Items]
Financing Receivable, Sale	$ 126,300	$ 106,900
Financing Receivable, Significant Sales, Transaction Fees	400	300
Basic:
Net income	$ 188,053	$ 151,766
Shares (in shares)	161,396,000	162,925,000
Per Share (in usd per share)	$ 1.17	$ 0.93
Effect of dilutive securities: [Abstract]
Add: Option shares in the money and dilutive effect of non-vested stock (in shares)	3,976,000	5,733,000
Less: Pro forma treasury shares (in shares)	(771,000)	(909,000)
Diluted:
Net Income	$ 188,053	$ 151,766
Shares (in shares)	164,601,000	167,749,000
Per Share (in usd per share)	$ 1.14	$ 0.90
Stock Options [Member]
Antidilutive Securities [Abstract]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	0
Non Vested Stock [Member]
Antidilutive Securities [Abstract]
Antidilutive securities excluded from computation of earnings per share (in shares)	194,546	162,896

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Investment in Unconsolidated Subsidiary (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021	Jan. 01, 2022	Jan. 21, 2011
Schedule of Equity Method Investments [Line Items]
Investment in the joint venture	$ 1,563,840		$ 1,349,247
Income (loss) from equity method investments	1,360	$ 612
Capital contribution	164,750	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	1,528,700
Income (loss) from equity method investments	71,800	102,200
Income Tax Credits and Adjustments	155,800	79,000
Capital contribution	$ 164,750	$ 0
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. 02, 2022	Mar. 31, 2022	Jan. 01, 2022	Dec. 31, 2021	Apr. 03, 2021	Jan. 02, 2021
ASSETS
Assets, Current	$ 1,259,033		$ 1,089,014
Property, Plant and Equipment, Net	1,867,880		1,840,080
Other assets	97,709		66,795
Segment Assets	6,615,616		6,133,728
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	35,337		24,407
Other non-current liabilities	109,647		111,029
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	3,495,650		3,347,785		$ 3,029,946	$ 2,954,209
Liabilities and Equity	$ 6,615,616		$ 6,133,728
Diamond Green Diesel Holdings LLC Joint Venture [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees
ASSETS
Assets, Current		$ 950,802		$ 686,294
Property, Plant and Equipment, Net		2,934,686		2,710,747
Other assets		59,196		51,514
Segment Assets		3,944,684		3,448,555
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt		165,356		165,092
Other Liabilities, Current		367,478		295,860
Long-term Debt, Excluding Current Maturities		340,591		344,309
Other non-current liabilities		17,328		17,531
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest		3,053,931		2,625,763
Liabilities and Equity		$ 3,944,684		$ 3,448,555

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Investment in Unconsolidated Subsidiary (Revenues and Expenses) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Mar. 31, 2022	Apr. 03, 2021	Mar. 31, 2021
Revenues:
Operating revenues	$ 1,366,334		$ 1,046,716
Expenses:
Cost of sales and operating expenses	1,020,577		772,784
Total costs and expenses	1,205,239		949,430
Operating income	232,899		199,511
Other expense, net	(742)		(1,159)
Net income	$ 190,731		$ 153,418
Diamond Green Diesel Holdings LLC Joint Venture [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees
Revenues:
Operating revenues		$ 980,692		$ 431,633
Expenses:
Cost of sales and operating expenses		807,572		215,234
Depreciation, amortization and accretion expense		26,492		11,687
Total costs and expenses		834,064		226,921
Operating income		146,628		204,712
Other expense, net		(11)		58
Interest and debt expense, net		(3,009)		(320)
Net income		$ 143,608		$ 204,450

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Business Combinations and Asset Acquisitions (Details) - USD ($) $ in Thousands	1 Months Ended
	Feb. 28, 2022	Apr. 02, 2022	Feb. 25, 2022	Jan. 01, 2022
Business Acquisition [Line Items]
Goodwill		$ 1,236,524		$ 1,219,116
Group Op de Beeck
Business Acquisition [Line Items]
Business Acquisition, Price of Acquisition			$ 91,700
Business combination, consideration transferred	$ 71,300
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment			27,800
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles			27,100
Goodwill			25,500
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other			$ (9,100)
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	15 years

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Inventories (Details) - USD ($) $ in Thousands	Apr. 02, 2022	Jan. 01, 2022
Inventory Disclosure [Abstract]
Finished product	$ 304,644	$ 272,995
Work in process	80,955	81,158
Raw Material	47,062	48,186
Supplies and other	59,033	55,126
Inventories	$ 491,694	$ 457,465

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Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021	Jan. 01, 2022
Intangible Assets [Line Items]
Indefinite Lived Intangible Assets:	$ 52,502		$ 53,133
Finite Lived Intangible Assets:	933,482		905,138
Accumulated Amortization:	(576,357)		(560,470)
Intangible Assets, Net (Excluding Goodwill)	409,627		397,801
Change in gross intangible assets	28,000
Amortization of Intangible Assets	16,500	$ 17,000
Trade Names [Member]
Intangible Assets [Line Items]
Indefinite Lived Intangible Assets:	52,502		53,133
Trade Names [Member]
Intangible Assets [Line Items]
Finite Lived Intangible Assets:	65,675		65,675
Accumulated Amortization:	(47,662)		(46,028)
Collection Routes [Member]
Intangible Assets [Line Items]
Finite Lived Intangible Assets:	365,933		337,399
Accumulated Amortization:	(175,450)		(169,984)
Royalty, consulting land use and leasehold [Member]
Intangible Assets [Line Items]
Finite Lived Intangible Assets:	25,738		25,899
Accumulated Amortization:	(8,104)		(7,997)
Permits [Member]
Intangible Assets [Line Items]
Finite Lived Intangible Assets:	475,491		475,520
Accumulated Amortization:	(344,672)		(336,020)
Noncompete Agreements [Member]
Intangible Assets [Line Items]
Finite Lived Intangible Assets:	645		645
Accumulated Amortization:	$ (469)		$ (441)

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Goodwill (Details) $ in Thousands	3 Months Ended
	Apr. 02, 2022 USD ($)
Goodwill [Roll Forward]
Goodwill	$ 1,267,071
Accumulated impairment losses	(47,955)
Goodwill	1,219,116
Goodwill, Acquired During Period	25,892
Foreign currency translation	(8,484)
Goodwill	1,284,479
Accumulated impairment losses	(47,955)
Goodwill	1,236,524
Feed Ingredients
Goodwill [Roll Forward]
Goodwill	814,863
Accumulated impairment losses	(15,914)
Goodwill	798,949
Goodwill, Acquired During Period	0
Foreign currency translation	(802)
Goodwill	814,061
Accumulated impairment losses	(15,914)
Goodwill	798,147
Fuel Ingredients
Goodwill [Roll Forward]
Goodwill	119,342
Accumulated impairment losses	(31,580)
Goodwill	87,762
Goodwill, Acquired During Period	25,892
Foreign currency translation	(2,415)
Goodwill	142,819
Accumulated impairment losses	(31,580)
Goodwill	111,239
Food Ingredients
Goodwill [Roll Forward]
Goodwill	332,866
Accumulated impairment losses	(461)
Goodwill	332,405
Goodwill, Acquired During Period	0
Foreign currency translation	(5,267)
Goodwill	327,599
Accumulated impairment losses	(461)
Goodwill	$ 327,138

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Accrued Expense (Details) - USD ($) $ in Thousands	Apr. 02, 2022	Jan. 01, 2022
Payables and Accruals [Abstract]
Compensation and benefits	$ 101,048	$ 123,180
Accrued ad valorem, and franchise taxes	13,610	20,140
Accrued operating expenses	86,314	81,200
Other accrued expense	159,086	126,161
Accrued expenses	$ 360,058	$ 350,681

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Debt (Schedule of Long-term Debt) (Details) $ in Thousands, $ in Thousands, € in Millions	3 Months Ended
	Apr. 02, 2022 USD ($)	Apr. 02, 2022 CAD ($)	Apr. 02, 2022 EUR (€)	Jan. 01, 2022 USD ($)	Jan. 01, 2022 CAD ($)
Debt Instrument [Line Items]
Debt and Lease Obligation	$ 1,713,262			$ 1,463,381
Current portion of long-term debt	35,337			24,407
Long-term debt, net of current portion	1,677,925			1,438,974
Finance lease obligations | €			€ 4.3
Term Loan B Facility [Member] | Senior Secured Facilities
Debt Instrument [Line Items]
Long-term Debt	198,226			198,072
Long-term Debt, Gross	200,000			200,000
Unamortized Debt Issuance Expense	(1,774)			(1,928)
Senior Notes [Member] | Senior Notes 5.25% Due 2027 [Member]
Debt Instrument [Line Items]
Long-term Debt	495,247			495,041
Long-term Debt, Gross	500,000			500,000
Unamortized Debt Issuance Expense	$ (4,753)			(4,959)
Stated interest rate	5.25%	5.25%	5.25%
Debt instrument, interest rate, effective percentage	5.47%	5.47%	5.47%
Senior Notes [Member] | Senior Notes 3.625% Due 2026 [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 564,325			577,949
Long-term Debt, Gross	568,972			582,980
Unamortized Debt Issuance Expense	$ (4,647)			(5,031)
Line of credit outstanding | €			€ 515.0
Stated interest rate	3.625%	3.625%	3.625%
Debt instrument, interest rate, effective percentage	3.83%	3.83%	3.83%
Notes Payable, Other Payables [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 59,457			$ 32,319
Notes Payable, Other Payables [Member] | Other Debt Obligations [Member]
Debt Instrument [Line Items]
Long-term Debt	29,100
Notes Payable, Other Payables [Member] | Bank Overdrafts [Member]
Debt Instrument [Line Items]
Long-term Debt	9,900
Foreign Line of Credit [Member] | Senior Secured Facilities
Debt Instrument [Line Items]
Line of credit outstanding	11,800
Foreign Line of Credit [Member] | Notes Payable, Other Payables [Member]
Debt Instrument [Line Items]
Line of credit outstanding	20,500
Letter of Credit [Member] | Senior Secured Facilities
Debt Instrument [Line Items]
Line of credit outstanding	3,800
Revolving Credit Facility [Member] | Senior Secured Facilities
Debt Instrument [Line Items]
Long-term Debt	8,000
Revolving Credit Facility [Member] | Line of Credit [Member] | Senior Secured Facilities
Debt Instrument [Line Items]
Long-term Debt		$ 396,007			$ 160,000
Revolving Credit Facility [Member] | Line of Credit [Member] | Amended Credit Agreement
Debt Instrument [Line Items]
Line of credit outstanding		$ 10,000
U.S. dollar | Term Loan B Facility [Member] | Senior Secured Facilities
Debt Instrument [Line Items]
Line of credit outstanding	$ 200,000
London Interbank Offered Rate (LIBOR) [Member] | U.S. dollar | Term Loan B Facility [Member] | Senior Secured Facilities
Debt Instrument [Line Items]
Basis spread on variable rate	2.00%
Interest rate	2.25%	2.25%	2.25%
Base Rate [Member] | U.S. dollar | Secured Debt [Member] | Senior Secured Facilities
Debt Instrument [Line Items]
Basis spread on variable rate	0.25%
Interest rate	3.75%	3.75%	3.75%
Base Rate [Member] | U.S. dollar | Revolving Credit Facility [Member] | Senior Secured Facilities
Debt Instrument [Line Items]
Line of credit outstanding	$ 70,000

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Debt (Senior Secured Credit Facilities) (Details) - Senior Secured Facilities $ in Millions, $ in Millions	3 Months Ended
	Apr. 02, 2022 CAD ($)	Apr. 02, 2022 USD ($)
Secured Debt [Member] | Base Rate [Member] | U.S. dollar
Debt Instrument [Line Items]
Basis spread on variable rate	0.25%
Interest rate	3.75%	3.75%
Secured Debt [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | U.S. dollar
Debt Instrument [Line Items]
Basis spread on variable rate	1.25%
Interest rate	1.625%	1.625%
Secured Debt [Member] | Canadian Dollar Offer Rate | Canada, Dollars
Debt Instrument [Line Items]
Basis spread on variable rate	1.25%
Interest rate	2.12%	2.12%
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Company availability under revolving loan facility		$ 1,049.7
Revolving Credit Facility [Member] | Base Rate [Member] | U.S. dollar
Debt Instrument [Line Items]
Line of credit outstanding		70.0
Revolving Credit Facility [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | U.S. dollar
Debt Instrument [Line Items]
Line of credit outstanding		318.0
Revolving Credit Facility [Member] | Canadian Dollar Offer Rate | Canada, Dollars
Debt Instrument [Line Items]
Line of credit outstanding	$ 10.0
Letter of Credit [Member]
Debt Instrument [Line Items]
Line of credit outstanding		3.8
Term Loan B Facility [Member] | U.S. dollar
Debt Instrument [Line Items]
Line of credit outstanding		$ 200.0
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	2.25%	2.25%
Foreign Line of Credit [Member]
Debt Instrument [Line Items]
Line of credit outstanding		$ 11.8
Term A-2 Facility
Debt Instrument [Line Items]
Debt Instrument, Face Amount		500.0
Ancillary Facilities
Debt Instrument [Line Items]
Line of credit outstanding		50.4
Secured Debt [Member]
Debt Instrument [Line Items]
Debt issuance		1.3
Secured Debt [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	1.25%
Secured Debt [Member] | Secured Debt [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Basis spread on variable rate	0.25%
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%
Secured Debt [Member] | Term A-1 Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | U.S. dollar
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
Secured Debt [Member] | Term A-2 Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | U.S. dollar
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Term A-1 Facility
Debt Instrument [Line Items]
Company availability under revolving loan facility		400.0
Term A-2 Facility
Debt Instrument [Line Items]
Company availability under revolving loan facility		$ 500.0

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Debt Debt (Senior Notes Due 2026) (Details)	Apr. 02, 2022
Senior Notes [Member] | Senior Notes 3.625% Due 2026 [Member]
Debt Instrument [Line Items]
Stated interest rate	3.625%

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Debt Debt (Senior Notes Due 2027) (Details)	Apr. 02, 2022
Senior Notes [Member] | Senior Notes 5.25% Due 2027 [Member]
Debt Instrument [Line Items]
Stated interest rate	5.25%

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Income Taxes (Details) - USD ($) $ in Millions	Apr. 02, 2022	Apr. 03, 2021
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 11.3	$ 5.6
Income tax penalties and interest accrued	$ 1.2	$ 0.4

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Other Comprehensive Income (Schedule of OCI) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Before-Tax Amount:
Amortization of prior service cost	$ 5	$ 5
Amortization of actuarial loss	570	1,052
Total defined benefit pension plans	575	1,057
Foreign currency translation	2,661	(39,737)
Other comprehensive income (loss)	18,018	(45,686)
Tax (Expense) or Benefit:
Amortization of prior service cost	(1)	(1)
Amortization of actuarial loss	(145)	(264)
Total defined benefit pension plans	(146)	(265)
Foreign currency translation	721	1,515
Other comprehensive income (loss)	(6,830)	3,857
Net-of-Tax Amount:
Amortization of prior service cost	4	4
Amortization of actuarial loss	425	788
Total defined benefit pension plans	429	792
Foreign currency translation	3,382	(38,222)
Total other comprehensive income/(loss), net of tax	11,188	(41,829)
Soybean Meal
Before-Tax Amount:
Loss (gain) reclassified to net income	(441)	(280)
Gain (loss) activity recognized in other comprehensive loss	120	(64)
Total swap derivatives	(321)	(344)
Tax (Expense) or Benefit:
Loss (gain) reclassified to net income	112	71
Gain (loss) activity recognized in other comprehensive loss	(31)	16
Total swap derivatives	81	87
Net-of-Tax Amount:
Loss (gain) reclassified to net income	(329)	(209)
Gain (loss) activity recognized in other comprehensive loss	89	(48)
Total swap derivatives	(240)	(257)
Corn Option
Before-Tax Amount:
Loss (gain) reclassified to net income	4,107	3,920
Gain (loss) activity recognized in other comprehensive loss	(10,885)	(4,993)
Total swap derivatives	(6,778)	(1,073)
Tax (Expense) or Benefit:
Loss (gain) reclassified to net income	(1,043)	(996)
Gain (loss) activity recognized in other comprehensive loss	2,765	1,269
Total swap derivatives	1,722	273
Net-of-Tax Amount:
Loss (gain) reclassified to net income	3,064	2,924
Gain (loss) activity recognized in other comprehensive loss	(8,120)	(3,724)
Total swap derivatives	(5,056)	(800)
Heating Oil Swaps And Options
Before-Tax Amount:
Gain (loss) activity recognized in other comprehensive loss	(22,470)	4,644
Total swap derivatives	(22,470)	4,644
Tax (Expense) or Benefit:
Gain (loss) activity recognized in other comprehensive loss	5,708	(1,180)
Total swap derivatives	5,708	(1,180)
Net-of-Tax Amount:
Gain (loss) activity recognized in other comprehensive loss	(16,762)	3,464
Total swap derivatives	(16,762)	3,464
Foreign Exchange Contract
Before-Tax Amount:
Loss (gain) reclassified to net income	(1,071)	224
Gain (loss) activity recognized in other comprehensive loss	45,422	(10,457)
Total swap derivatives	44,351	(10,233)
Tax (Expense) or Benefit:
Loss (gain) reclassified to net income	360	(75)
Gain (loss) activity recognized in other comprehensive loss	(15,276)	3,502
Total swap derivatives	(14,916)	3,427
Net-of-Tax Amount:
Loss (gain) reclassified to net income	(711)	149
Gain (loss) activity recognized in other comprehensive loss	30,146	(6,955)
Total swap derivatives	$ 29,435	$ (6,806)

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Other Comprehensive Income (Reclassification out of AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Net sales	$ 1,366,334	$ 1,046,716
Cost of sales and operating expenses	1,020,577	772,784
Income taxes	(26,083)	(28,708)
Amortization of prior service cost	5	5
Amortization of actuarial loss	570	1,052
Net income attributable to Darling	188,053	151,766
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Net income attributable to Darling	(2,453)	(3,656)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments [Member]
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Total before tax	(2,595)	(3,864)
Income taxes	571	1,000
Net income attributable to Darling	(2,024)	(2,864)
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	1,071	(224)
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	(4,107)	(3,920)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments [Member] | Soybean Meal
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Net sales	441	280
Reclassification out of Accumulated Other Comprehensive Income [Member] | Foreign Currency Translation [Member]
Reclassification out of Accumulated Other Comprehensive Income [Line Items]
Total before tax	(575)	(1,057)
Income taxes	146	265
Amortization of prior service cost	(5)	(5)
Amortization of actuarial loss	(570)	(1,052)
Net income attributable to Darling	$ (429)	$ (792)

XML

Other Comprehensive Income (Schedule of AOCI) (Details) $ in Thousands	3 Months Ended
	Apr. 02, 2022 USD ($)
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated Other Comprehensive loss January 1, 2022, attributable to Darling, net of tax	$ (321,690)
Other comprehensive loss before reclassifications	8,735
Amounts reclassified from accumulated other comprehensive loss	2,453
Net current-period other comprehensive income/(loss)	11,188
Noncontrolling interest	867
Accumulated Other Comprehensive loss April 2, 2022, attributable to Darling, net of tax	(311,369)
Foreign Currency Translation [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated Other Comprehensive loss January 1, 2022, attributable to Darling, net of tax	(289,586)
Other comprehensive loss before reclassifications	3,382
Amounts reclassified from accumulated other comprehensive loss	0
Net current-period other comprehensive income/(loss)	3,382
Noncontrolling interest	867
Accumulated Other Comprehensive loss April 2, 2022, attributable to Darling, net of tax	(287,071)
Derivative Instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated Other Comprehensive loss January 1, 2022, attributable to Darling, net of tax	(6,456)
Other comprehensive loss before reclassifications	5,353
Amounts reclassified from accumulated other comprehensive loss	2,024
Net current-period other comprehensive income/(loss)	7,377
Noncontrolling interest	0
Accumulated Other Comprehensive loss April 2, 2022, attributable to Darling, net of tax	921
Defined Benefit Pension Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Accumulated Other Comprehensive loss January 1, 2022, attributable to Darling, net of tax	(25,648)
Other comprehensive loss before reclassifications	0
Amounts reclassified from accumulated other comprehensive loss	429
Net current-period other comprehensive income/(loss)	429
Noncontrolling interest	0
Accumulated Other Comprehensive loss April 2, 2022, attributable to Darling, net of tax	$ (25,219)

XML

Stockholders' Equity (Details) - USD ($)			3 Months Ended
	Jan. 03, 2022	Dec. 09, 2021	Apr. 02, 2022	Apr. 03, 2021
Class of Stock [Line Items]
Grants in Period (in shares)	82,791
Grants in period (in shares)	115,615
Annual vesting after initial cliff			33.33%
Performance period two			3 years
Target percentage			100.00%
Increase (decrease) in target percentage			225.00%
Repurchase of common stock			$ 17,189,000	$ 0
Remaining authorized repurchase amount			$ 482,800,000
Stock repurchase program, period		2 years
Stock repurchase program, authorized amount		$ 500,000,000

XML

Employee Benefit Plans (Details) $ in Thousands	3 Months Ended
	Apr. 02, 2022 USD ($) plan	Apr. 03, 2021 USD ($)
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Amount Company expects to contribute to its pension plans	$ 3,900
Payment for pension benefits	$ 800	$ 900
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
Accrued liability representing the present value of scheduled withdrawal liability payments for under-funded multi-employer plan	$ 3,800
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	$ 828	785
Interest cost	1,320	1,204
Expected return on plan assets	(2,165)	(2,321)
Amortization of prior service cost	5	5
Amortization of actuarial loss	570	1,052
Net pension cost	$ 558	$ 725

XML

Derivatives (Forward Contracts Not Designated as Hedging Instruments) (Details) - Apr. 02, 2022 - 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$ 60,371
BRI/EUR 1 [Member] | Long [Member]
Derivative [Line Items]
Derivative notional amount		€ 10,520
BRI/USD [Member] | Short [Member]
Derivative [Line Items]
Derivative notional amount | R$	R$ 3,074,644
BRI/USD [Member] | Long [Member]
Derivative [Line Items]
Derivative notional amount | $			$ 737,900
EUR/USD [Member] | Short [Member]
Derivative [Line Items]
Derivative notional amount		34,817
EUR/USD [Member] | Long [Member]
Derivative [Line Items]
Derivative notional amount | $			39,265
EUR/PLN [Member] | Short [Member]
Derivative [Line Items]
Derivative notional amount		25,215
EUR/PLN [Member] | Long [Member]
Derivative [Line Items]
Derivative notional amount | zł				zł 120,000
EUR/JPN [Member] | Short [Member]
Derivative [Line Items]
Derivative notional amount		5,653
EUR/JPN [Member] | Long [Member]
Derivative [Line Items]
Derivative notional amount | ¥					¥ 752,890
EUR/CNY [Member] | Short [Member]
Derivative [Line Items]
Derivative notional amount		29,996
EUR/CNY [Member] | Long [Member]
Derivative [Line Items]
Derivative notional amount | ¥						¥ 212,151
EUR/AUD [Member] | Short [Member]
Derivative [Line Items]
Derivative notional amount		14,759					$ 1,243
EUR/AUD [Member] | Long [Member]
Derivative [Line Items]
Derivative notional amount		786					$ 22,400
EUR/GBP [Member] | Short [Member]
Derivative [Line Items]
Derivative notional amount		3,412
EUR/GBP [Member] | Long [Member]
Derivative [Line Items]
Derivative notional amount | £								£ 2,860
EUR/CAD | Short [Member]
Derivative [Line Items]
Derivative notional amount		36
EUR/CAD | Long [Member]
Derivative [Line Items]
Derivative notional amount | $									$ 50
PLN/EUR [Member] | Short [Member]
Derivative [Line Items]
Derivative notional amount | zł				34,710
PLN/EUR [Member] | Long [Member]
Derivative [Line Items]
Derivative notional amount		7,338
GBP/EUR | Short [Member]
Derivative [Line Items]
Derivative notional amount | £								£ 229
GBP/EUR | Long [Member]
Derivative [Line Items]
Derivative notional amount		273
JPN/USD [Member] | Short [Member]
Derivative [Line Items]
Derivative notional amount | ¥					331,807
JPN/USD [Member] | Long [Member]
Derivative [Line Items]
Derivative notional amount | $			2,792
USD/JPN | Short [Member]
Derivative [Line Items]
Derivative notional amount | $			275
USD/JPN | Long [Member]
Derivative [Line Items]
Derivative notional amount | ¥					¥ 34,000
USD/EUR | Short [Member]
Derivative [Line Items]
Derivative notional amount | $			236,171
USD/EUR | Long [Member]
Derivative [Line Items]
Derivative notional amount		€ 215,000
PLN/USD | Short [Member]
Derivative [Line Items]
Derivative notional amount | zł				zł 431
PLN/USD | Long [Member]
Derivative [Line Items]
Derivative notional amount | $			100
USD/CAD | Short [Member]
Derivative [Line Items]
Derivative notional amount | $									$ 13,107
USD/CAD | Long [Member]
Derivative [Line Items]
Derivative notional amount | $			$ 10,500

XML

Derivatives (Narrative) (Details) - USD ($)	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021	Jan. 01, 2022
Derivative [Line Items]
Net income	$ 190,731,000	$ 153,418,000
Commodity Contract [Member]
Derivative [Line Items]
Forward purchase amount	126,200,000
Cash Flow Hedging [Member]
Derivative [Line Items]
Cash flow hedge gain (loss) to be reclassified within 12 months	7,900,000
Net income	0
Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Foreign Exchange Contract
Derivative [Line Items]
Asset Derivatives Fair Value	41,100,000		$ 600,000
Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Corn Option
Derivative [Line Items]
Asset Derivatives Fair Value	(10,200,000)		(2,800,000)
Designated as Hedging Instrument [Member] | Other Current Assets [Member] | Soybean Meal
Derivative [Line Items]
Asset Derivatives Fair Value	$ (100,000)		$ 100,000

XML

Derivatives Derivative Effect of Derivatives Not Designated As Hedges (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Derivative [Line Items]
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges	$ 4,261	$ 8,676
Foreign Exchange Contract | Foreign Currency Gain (Loss) [Member]
Derivative [Line Items]
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges	7,466	5,389
Foreign Exchange Contract | Selling, General and Administrative Expenses [Member]
Derivative [Line Items]
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges	(6,524)	2,531
Foreign Exchange Contract | Sales [Member]
Derivative [Line Items]
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges	158	729
Foreign Exchange Contract | Cost of Sales [Member]
Derivative [Line Items]
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges	(256)	(444)
Corn options and futures [Member] | Sales [Member]
Derivative [Line Items]
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges	(2,136)	(998)
Corn options and futures [Member] | Cost of Sales [Member]
Derivative [Line Items]
Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges	$ 5,553	$ 1,469

XML

Fair Value Measurement (Details) - USD ($) $ in Thousands	Apr. 02, 2022	Jan. 01, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative instruments	$ 45,189	$ 5,031
Total Assets	45,189	5,031
Derivative instruments	15,608	7,173
Total Liabilities	1,686,807	1,472,373
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	45,189	5,031
Total Assets	45,189	5,031
Derivative instruments	15,608	7,173
Total Liabilities	1,686,807	1,472,373
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	199,500	200,000
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	199,500	200,000
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	390,067	158,400
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	390,067	158,400
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	510,100	515,600
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	510,100	515,600
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	571,532	591,200
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	571,532	591,200
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
	Apr. 02, 2022	Apr. 03, 2021
Restructuring Cost and Reserve [Line Items]
Restructuring and asset impairment charges	$ 0	$ 778
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 ($)	Mar. 31, 2016 Party mi	Apr. 02, 2022 USD ($) contaminate	Jan. 01, 2022 USD ($)
Loss Contingencies [Line Items]
Area of land | mi			8.3
Estimate of possible loss				$ 1,380.0
Number of parties | Party	100		100
Loss related to litigation settlement		$ 0.6
Number of contaminants | contaminate				8
Insurance Environmental and Litigation Matters [Member]
Loss Contingencies [Line Items]
Reserves for insurance, environmental and litigation contingencies				$ 80.5	$ 78.4
Insurance settlements receivable				31.8	$ 31.8
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. 02, 2022 segment
Segment Reporting [Abstract]
Number of Business Segments	3

XML

Business Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021	Jan. 01, 2022
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	$ 1,366,334	$ 1,046,716
Cost of sales and operating expenses	1,020,577	772,784
Gain on sale of assets	389	64
Selling, general and administrative expenses	102,032	97,398
Restructuring and asset impairment charges	0	778
Acquisition and integration costs	3,773	0
Depreciation and amortization	79,246	78,534
Equity in net income of Diamond Green Diesel	71,804	102,225
Operating income	232,899	199,511
Equity in net income of other unconsolidated subsidiaries	1,360	612
Total other expense	(17,445)	(17,997)
Income before income taxes	216,814	182,126
Segment Assets	6,615,616		$ 6,133,728
Feed Ingredients
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	879,438	651,444
Cost of sales and operating expenses	645,523	474,581
Gross Margin	233,915	176,863
Gain on sale of assets	(341)	(139)
Selling, general and administrative expenses	56,209	52,620
Restructuring and asset impairment charges		0
Acquisition and integration costs	0
Depreciation and amortization	54,350	54,609
Equity in net income of Diamond Green Diesel	0	0
Operating income	123,697	69,773
Equity in net income of other unconsolidated subsidiaries	1,360	612
Segment income/(loss)	125,057	70,385
Segment Assets	2,751,078		2,714,528
Food Ingredients
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	354,814	298,065
Cost of sales and operating expenses	270,312	226,413
Gross Margin	84,502	71,652
Gain on sale of assets	(9)	55
Selling, general and administrative expenses	26,844	25,191
Restructuring and asset impairment charges		0
Acquisition and integration costs	0
Depreciation and amortization	15,450	14,883
Equity in net income of Diamond Green Diesel	0	0
Operating income	42,217	31,523
Equity in net income of other unconsolidated subsidiaries	0	0
Segment income/(loss)	42,217	31,523
Segment Assets	1,262,887		1,205,217
Fuel Ingredients
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	132,082	97,207
Cost of sales and operating expenses	104,742	71,790
Gross Margin	27,340	25,417
Gain on sale of assets	(39)	20
Selling, general and administrative expenses	3,920	4,867
Restructuring and asset impairment charges		778
Acquisition and integration costs	0
Depreciation and amortization	6,674	6,155
Equity in net income of Diamond Green Diesel	71,804	102,225
Operating income	88,589	115,822
Equity in net income of other unconsolidated subsidiaries	0	0
Segment income/(loss)	88,589	115,822
Segment Assets	1,982,190		1,658,892
Corporate
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	0	0
Cost of sales and operating expenses	0	0
Gross Margin	0	0
Gain on sale of assets	0	0
Selling, general and administrative expenses	15,059	14,720
Restructuring and asset impairment charges		0
Acquisition and integration costs	3,773
Depreciation and amortization	2,772	2,887
Equity in net income of Diamond Green Diesel	0	0
Operating income	(21,604)	(17,607)
Equity in net income of other unconsolidated subsidiaries	0	0
Segment income/(loss)	(21,604)	(17,607)
Segment Assets	619,461		555,091
Total
Segment Reporting, Revenue Reconciling Item [Line Items]
Net sales	1,366,334	1,046,716
Cost of sales and operating expenses	1,020,577	772,784
Gross Margin	345,757	273,932
Gain on sale of assets	(389)	(64)
Selling, general and administrative expenses	102,032	97,398
Restructuring and asset impairment charges		778
Acquisition and integration costs	3,773
Depreciation and amortization	79,246	78,534
Equity in net income of Diamond Green Diesel	71,804	102,225
Operating income	232,899	199,511
Equity in net income of other unconsolidated subsidiaries	1,360	612
Segment income/(loss)	234,259	$ 200,123
Segment Assets	$ 6,615,616		$ 6,133,728

XML

Revenue Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Disaggregation of Revenue [Line Items]
Net sales	$ 1,366,334	$ 1,046,716
Feed Ingredients
Disaggregation of Revenue [Line Items]
Net sales	879,438	651,444
Food Ingredients
Disaggregation of Revenue [Line Items]
Net sales	354,814	298,065
Fuel Ingredients
Disaggregation of Revenue [Line Items]
Net sales	132,082	97,207
North America
Disaggregation of Revenue [Line Items]
Net sales	839,738	613,305
North America | Feed Ingredients
Disaggregation of Revenue [Line Items]
Net sales	755,838	549,015
North America | Food Ingredients
Disaggregation of Revenue [Line Items]
Net sales	83,900	60,940
North America | Fuel Ingredients
Disaggregation of Revenue [Line Items]
Net sales	0	3,350
Europe
Disaggregation of Revenue [Line Items]
Net sales	428,555	346,865
Europe | Feed Ingredients
Disaggregation of Revenue [Line Items]
Net sales	114,463	97,645
Europe | Food Ingredients
Disaggregation of Revenue [Line Items]
Net sales	182,010	155,363
Europe | Fuel Ingredients
Disaggregation of Revenue [Line Items]
Net sales	132,082	93,857
China
Disaggregation of Revenue [Line Items]
Net sales	72,943	59,870
China | Feed Ingredients
Disaggregation of Revenue [Line Items]
Net sales	6,636	1,938
China | Food Ingredients
Disaggregation of Revenue [Line Items]
Net sales	66,307	57,932
China | Fuel Ingredients
Disaggregation of Revenue [Line Items]
Net sales	0	0
South America
Disaggregation of Revenue [Line Items]
Net sales	8,496	10,454
South America | Feed Ingredients
Disaggregation of Revenue [Line Items]
Net sales	0	0
South America | Food Ingredients
Disaggregation of Revenue [Line Items]
Net sales	8,496	10,454
South America | Fuel Ingredients
Disaggregation of Revenue [Line Items]
Net sales	0	0
Other
Disaggregation of Revenue [Line Items]
Net sales	16,602	16,222
Other | Feed Ingredients
Disaggregation of Revenue [Line Items]
Net sales	2,501	2,846
Other | Food Ingredients
Disaggregation of Revenue [Line Items]
Net sales	14,101	13,376
Other | Fuel Ingredients
Disaggregation of Revenue [Line Items]
Net sales	0	0
Fats
Disaggregation of Revenue [Line Items]
Net sales	420,658	270,439
Fats | Feed Ingredients
Disaggregation of Revenue [Line Items]
Net sales	368,394	229,006
Fats | Food Ingredients
Disaggregation of Revenue [Line Items]
Net sales	52,264	41,433
Fats | Fuel Ingredients
Disaggregation of Revenue [Line Items]
Net sales	0	0
Used cooking oil
Disaggregation of Revenue [Line Items]
Net sales	94,896	51,029
Used cooking oil | Feed Ingredients
Disaggregation of Revenue [Line Items]
Net sales	94,896	51,029
Used cooking oil | Food Ingredients
Disaggregation of Revenue [Line Items]
Net sales	0	0
Used cooking oil | Fuel Ingredients
Disaggregation of Revenue [Line Items]
Net sales	0	0
Proteins
Disaggregation of Revenue [Line Items]
Net sales	270,187	255,507
Proteins | Feed Ingredients
Disaggregation of Revenue [Line Items]
Net sales	270,187	255,507
Proteins | Food Ingredients
Disaggregation of Revenue [Line Items]
Net sales	0	0
Proteins | Fuel Ingredients
Disaggregation of Revenue [Line Items]
Net sales	0	0
Bakery
Disaggregation of Revenue [Line Items]
Net sales	78,511	63,105
Bakery | Feed Ingredients
Disaggregation of Revenue [Line Items]
Net sales	78,511	63,105
Bakery | Food Ingredients
Disaggregation of Revenue [Line Items]
Net sales	0	0
Bakery | Fuel Ingredients
Disaggregation of Revenue [Line Items]
Net sales	0	0
Other rendering
Disaggregation of Revenue [Line Items]
Net sales	57,544	42,957
Other rendering | Feed Ingredients
Disaggregation of Revenue [Line Items]
Net sales	57,544	42,957
Other rendering | Food Ingredients
Disaggregation of Revenue [Line Items]
Net sales	0	0
Other rendering | Fuel Ingredients
Disaggregation of Revenue [Line Items]
Net sales	0	0
Food ingredients
Disaggregation of Revenue [Line Items]
Net sales	270,516	229,542
Food ingredients | Feed Ingredients
Disaggregation of Revenue [Line Items]
Net sales	0	0
Food ingredients | Food Ingredients
Disaggregation of Revenue [Line Items]
Net sales	270,516	229,542
Food ingredients | Fuel Ingredients
Disaggregation of Revenue [Line Items]
Net sales	0	0
Bioenergy
Disaggregation of Revenue [Line Items]
Net sales	132,082	93,857
Bioenergy | Feed Ingredients
Disaggregation of Revenue [Line Items]
Net sales	0	0
Bioenergy | Food Ingredients
Disaggregation of Revenue [Line Items]
Net sales	0	0
Bioenergy | Fuel Ingredients
Disaggregation of Revenue [Line Items]
Net sales	132,082	93,857
Biofuels
Disaggregation of Revenue [Line Items]
Net sales		3,350
Biofuels | Feed Ingredients
Disaggregation of Revenue [Line Items]
Net sales		0
Biofuels | Food Ingredients
Disaggregation of Revenue [Line Items]
Net sales		0
Biofuels | Fuel Ingredients
Disaggregation of Revenue [Line Items]
Net sales		3,350
Other
Disaggregation of Revenue [Line Items]
Net sales	41,940	36,930
Other | Feed Ingredients
Disaggregation of Revenue [Line Items]
Net sales	9,906	9,840
Other | Food Ingredients
Disaggregation of Revenue [Line Items]
Net sales	32,034	27,090
Other | Fuel Ingredients
Disaggregation of Revenue [Line Items]
Net sales	$ 0	$ 0

XML

Revenue Revenue from Long-term Performance Obligations, Narrative (Details) $ in Millions	3 Months Ended
	Apr. 02, 2022 USD ($)
Revenue from Contract with Customer [Abstract]
Revenue recognized	$ 35.0

XML

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. 02, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	5 years
Remaining performance obligation	$ 1,210.0

XML

Related Party Transactions (Details)			1 Months Ended	3 Months Ended
	Apr. 01, 2021 USD ($) agreement	Mar. 30, 2019	Nov. 08, 2021 USD ($)	Apr. 02, 2022 USD ($)	Apr. 03, 2021 USD ($)	Jan. 01, 2022 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
Related Party, Initial Agreement Term	20 years
Diamond Green Diesel Holdings LLC Joint Venture [Member]
Related Party Transaction [Line Items]
Revenue from Related Parties				$ 214,400,000	$ 89,000,000
Accounts Receivable, Related Parties, Current				42,800,000		$ 43,800,000
Related Party Sales Eliminated				29,800,000	14,600,000
Deferred Revenue, Additions				8,400,000	$ 4,100,000
Revolving Loan Agreement [Member] | Revolving Credit Facility [Member]
Related Party Transaction [Line Items]
Revolving Loan Agreement, Maximum Borrowing Capacity								$ 50,000,000
Revolving Loan Agreement, Fair Value of Amount Outstanding				25,000,000
Line Of Credit Facility, Amount Borrowed			$ 50,000,000
Interest Expense, Long-term Debt				$ 200,000
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
Line Of Credit Facility, Amount Borrowed			$ 25,000,000
LIBO Rate [Member] | Revolving Loan Agreement [Member] | Revolving Credit Facility [Member]
Related Party Transaction [Line Items]
Basis spread on variable rate		2.50%

XML

Nonmonetary Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2022	Apr. 03, 2021
Nonmonetary Transactions [Abstract]
Accrued capital expenditures	$ (7,324)	$ (9,678)
Interest, net of capitalized interest	2,124	2,774
Income taxes, net of refunds	41,423	15,578
Operating lease right of use asset obtained in exchange for new lease liabilities	33,072	12,404
Debt issued for assets	$ 635	$ 0

XML

Subsequent Events (Details) R$ in Millions, $ in Millions	May 05, 2022 USD ($)	May 05, 2022 BRL (R$)	May 02, 2022 USD ($)	Apr. 02, 2022 USD ($)
Senior Secured Facilities | U.S. dollar | Secured Debt [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Subsequent Event [Line Items]
Interest rate				1.625%
Senior Secured Facilities | Term A-1 Facility
Subsequent Event [Line Items]
Company availability under revolving loan facility				$ 400.0
Senior Secured Facilities | Term A-2 Facility
Subsequent Event [Line Items]
Company availability under revolving loan facility				$ 500.0
Valley Proteins | Subsequent Event
Subsequent Event [Line Items]
Payments to Acquire Businesses, Gross			$ 1,200.0
FASA Group | Subsequent Event
Subsequent Event [Line Items]
Payments to Acquire Businesses, Gross	$ 560.0	R$ 2,800.0