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