Other Comprehensive Income (Tables)

9 Months Ended

Oct. 01, 2022

Equity [Abstract]

Schedule of Comprehensive Income (Loss)

The components of other comprehensive income/(loss) and the related tax impacts for the three and nine months ended October 1, 2022 and October 2, 2021 are as follows (in thousands):

	Three Months Ended
	Before-Tax				Tax (Expense)				Net-of-Tax
	Amount				or Benefit				Amount
	October 1, 2022		October 2, 2021		October 1, 2022		October 2, 2021		October 1, 2022		October 2, 2021
Defined benefit pension plans
Amortization of prior service (cost)/benefit	5		5		(1)		(1)		4		4
Amortization of actuarial loss	571		1,052		(146)		(265)		425		787
Total defined benefit pension plans	576		1,057		(147)		(266)		429		791
Soybean meal option derivatives
Reclassified to earnings	(121)		(19)		30		5		(91)		(14)
Activity recognized in other comprehensive income/(loss)	296		(12)		(75)		3		221		(9)
Total soybean meal option derivatives	175		(31)		(45)		8		130		(23)
Corn option derivatives
Reclassified to earnings	2,188		4,217		(555)		(1,072)		1,633		3,145
Activity recognized in other comprehensive income/(loss)	(1,176)		647		298		(164)		(878)		483
Total corn option derivatives	1,012		4,864		(257)		(1,236)		755		3,628
Heating oil derivatives
Activity recognized in other comprehensive income/(loss)	34,497		(8,699)		(8,762)		2,209		25,735		(6,490)
Total heating oil derivatives	34,497		(8,699)		(8,762)		2,209		25,735		(6,490)
Foreign exchange derivatives
Reclassified to earnings	(3,619)		(1,889)		1,076		565		(2,543)		(1,324)
Activity recognized in other comprehensive income/(loss)	(209)		(5,397)		276		2,057		67		(3,340)
Total foreign exchange derivatives	(3,828)		(7,286)		1,352		2,622		(2,476)		(4,664)
Foreign currency translation	(98,776)		(33,689)		1,928		786		(96,848)		(32,903)
Other comprehensive income/(loss)	$	(66,344)	$	(43,784)	$	(5,931)	$	4,123	$	(72,275)	$	(39,661)

	Nine Months Ended
	Before-Tax				Tax (Expense)				Net-of-Tax
	Amount				or Benefit				Amount
	October 1, 2022		October 2, 2021		October 1, 2022		October 2, 2021		October 1, 2022		October 2, 2021
Defined benefit pension plans
Amortization of prior service (cost)/benefit	$	16	$	16	$	(4)	$	(4)	$	12	$	12
Amortization of actuarial loss	1,711		3,157		(437)		(794)		1,274		2,363
Total defined benefit pension plans	1,727		3,173		(441)		(798)		1,286		2,375
Soybean meal option derivatives
Reclassified to earnings	(438)		(267)		111		68		(327)		(199)
Activity recognized in other comprehensive income/(loss)	272		(131)		(69)		33		203		(98)
Total soybean meal option derivatives	(166)		(398)		42		101		(124)		(297)
Corn option derivatives
Reclassified to earnings	13,533		14,880		(3,437)		(3,780)		10,096		11,100
Activity recognized in other comprehensive income/(loss)	(11,335)		(11,566)		2,879		2,938		(8,456)		(8,628)
Total corn option derivatives	2,198		3,314		(558)		(842)		1,640		2,472
Heating oil derivatives
Activity recognized in other comprehensive income/(loss)	36,874		(7,149)		(9,366)		1,815		27,508		(5,334)
Total heating oil derivatives	36,874		(7,149)		(9,366)		1,815		27,508		(5,334)
Foreign exchange derivatives
Reclassified to earnings	(10,970)		(2,503)		3,491		884		(7,479)		(1,619)
Activity recognized in other comprehensive income/(loss)	20,122		(4,482)		(6,403)		1,582		13,719		(2,900)
Total foreign exchange derivatives	9,152		(6,985)		(2,912)		2,466		6,240		(4,519)
Foreign currency translation	(191,677)		(50,866)		4,356		2,125		(187,321)		(48,741)
Other comprehensive income/(loss)	$	(141,892)	$	(58,911)	$	(8,879)	$	4,867	$	(150,771)	$	(54,044)

Reclassification out of Accumulated Other Comprehensive Income (Loss)

The following table presents the amounts reclassified out of each component of other comprehensive income/(loss), net of tax for the three and nine months ended October 1, 2022 and October 2, 2021 as follows (in thousands):

	Three Months Ended				Nine Months Ended
	October 1, 2022		October 2, 2021		October 1, 2022		October 2, 2021		Statement of Operations Classification
Derivative instruments
Soybean meal derivatives	$	121	$	19	$	438	$	267	Net sales
Foreign exchange contracts	3,619		1,889		10,970		2,503		Net sales
Corn option derivatives	(2,188)		(4,217)		(13,533)		(14,880)		Cost of sales and operating expenses
	1,552		(2,309)		(2,125)		(12,110)		Total before tax
	(551)		502		(165)		2,828		Income taxes
	1,001		(1,807)		(2,290)		(9,282)		Net of tax
Defined benefit pension plans
Amortization of prior service cost	$	(5)	$	(5)	$	(16)	$	(16)	(a)
Amortization of actuarial loss	(571)		(1,052)		(1,711)		(3,157)		(a)
	(576)		(1,057)		(1,727)		(3,173)		Total before tax
	147		266		441		798		Income taxes
	(429)		(791)		(1,286)		(2,375)		Net of tax
Total reclassifications	$	572	$	(2,598)	$	(3,576)	$	(11,657)	Net of tax

(a)These items are included in the computation of net periodic pension cost. See Note 14 (Employee Benefit Plans) to the Company's Consolidated Financial Statement included herein for additional information.

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table presents changes in each component of accumulated other comprehensive income/(loss) as of October 1, 2022 as follows (in thousands):

	Nine Months Ended October 1, 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	(187,321)		32,974		—		(154,347)
Amounts reclassified from accumulated other comprehensive loss	—		2,290		1,286		3,576
Net current-period other comprehensive income/(loss)	(187,321)		35,264		1,286		(150,771)
Noncontrolling interest	678		—		—		678
Accumulated Other Comprehensive loss October 1, 2022, attributable to Darling, net of tax	$	(477,585)	$	28,808	$	(24,362)	$	(473,139)