Other Comprehensive Income (Tables)

6 Months Ended

Jul. 02, 2022

Equity [Abstract]

Schedule of Comprehensive Income (Loss)

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

	Three Months Ended
	Before-Tax				Tax (Expense)				Net-of-Tax
	Amount				or Benefit				Amount
	July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
Defined benefit pension plans
Amortization of prior service (cost)/benefit	6		6		(2)		(2)		4		4
Amortization of actuarial loss	570		1,053		(146)		(265)		424		788
Total defined benefit pension plans	576		1,059		(148)		(267)		428		792
Soybean meal option derivatives
Reclassified to earnings	124		32		(31)		(8)		93		24
Activity recognized in other comprehensive income/(loss)	(144)		(55)		37		14		(107)		(41)
Total soybean meal option derivatives	(20)		(23)		6		6		(14)		(17)
Corn option derivatives
Reclassified to earnings	7,238		6,743		(1,839)		(1,712)		5,399		5,031
Activity recognized in other comprehensive income/(loss)	726		(7,220)		(184)		1,833		542		(5,387)
Total corn option derivatives	7,964		(477)		(2,023)		121		5,941		(356)
Heating oil derivatives
Activity recognized in other comprehensive income/(loss)	24,847		(3,094)		(6,312)		786		18,535		(2,308)
Total heating oil derivatives	24,847		(3,094)		(6,312)		786		18,535		(2,308)
Foreign exchange derivatives
Reclassified to earnings	(6,280)		(838)		2,055		394		(4,225)		(444)
Activity recognized in other comprehensive income/(loss)	(25,091)		11,372		8,597		(3,977)		(16,494)		7,395
Total foreign exchange derivatives	(31,371)		10,534		10,652		(3,583)		(20,719)		6,951
Foreign currency translation	(95,562)		22,560		1,707		(176)		(93,855)		22,384
Other comprehensive income/(loss)	$	(93,566)	$	30,559	$	3,882	$	(3,113)	$	(89,684)	$	27,446

	Six Months Ended
	Before-Tax				Tax (Expense)				Net-of-Tax
	Amount				or Benefit				Amount
	July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
Defined benefit pension plans
Amortization of prior service (cost)/benefit	$	11	$	11	$	(3)	$	(3)	$	8	$	8
Amortization of actuarial loss	1,140		2,105		(291)		(529)		849		1,576
Total defined benefit pension plans	1,151		2,116		(294)		(532)		857		1,584
Soybean meal option derivatives
Reclassified to earnings	(317)		(248)		81		63		(236)		(185)
Activity recognized in other comprehensive income/(loss)	(24)		(119)		6		30		(18)		(89)
Total soybean meal option derivatives	(341)		(367)		87		93		(254)		(274)
Corn option derivatives
Reclassified to earnings	11,345		10,663		(2,882)		(2,708)		8,463		7,955
Activity recognized in other comprehensive income/(loss)	(10,159)		(12,213)		2,581		3,102		(7,578)		(9,111)
Total corn option derivatives	1,186		(1,550)		(301)		394		885		(1,156)
Heating oil derivatives
Activity recognized in other comprehensive income/(loss)	2,377		1,550		(604)		(394)		1,773		1,156
Total heating oil derivatives	2,377		1,550		(604)		(394)		1,773		1,156
Foreign exchange derivatives
Reclassified to earnings	(7,351)		(614)		2,415		319		(4,936)		(295)
Activity recognized in other comprehensive income/(loss)	20,331		915		(6,679)		(475)		13,652		440
Total foreign exchange derivatives	12,980		301		(4,264)		(156)		8,716		145
Foreign currency translation	(92,901)		(17,177)		2,428		1,339		(90,473)		(15,838)
Other comprehensive income/(loss)	$	(75,548)	$	(15,127)	$	(2,948)	$	744	$	(78,496)	$	(14,383)

Reclassification out of Accumulated Other Comprehensive Income (Loss)

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

	Three Months Ended				Six Months Ended
	July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021		Statement of Operations Classification
Derivative instruments
Soybean meal derivatives	$	(124)	$	(32)	$	317	$	248	Net sales
Foreign exchange contracts	6,280		838		7,351		614		Net sales
Corn option derivatives	(7,238)		(6,743)		(11,345)		(10,663)		Cost of sales and operating expenses
	(1,082)		(5,937)		(3,677)		(9,801)		Total before tax
	(185)		1,326		386		2,326		Income taxes
	(1,267)		(4,611)		(3,291)		(7,475)		Net of tax
Defined benefit pension plans
Amortization of prior service cost	$	(6)	$	(6)	$	(11)	$	(11)	(a)
Amortization of actuarial loss	(570)		(1,053)		(1,140)		(2,105)		(a)
	(576)		(1,059)		(1,151)		(2,116)		Total before tax
	148		267		294		532		Income taxes
	(428)		(792)		(857)		(1,584)		Net of tax
Total reclassifications	$	(1,695)	$	(5,403)	$	(4,148)	$	(9,059)	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 July 2, 2022 as follows (in thousands):

	Six Months Ended July 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	(90,473)		7,829		—		(82,644)
Amounts reclassified from accumulated other comprehensive loss	—		3,291		857		4,148
Net current-period other comprehensive income/(loss)	(90,473)		11,120		857		(78,496)
Noncontrolling interest	721		—		—		721
Accumulated Other Comprehensive loss July 2, 2022, attributable to Darling, net of tax	$	(380,780)	$	4,664	$	(24,791)	$	(400,907)