Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2022

The components of other comprehensive income/(loss) and the related tax impacts for the years ended December 31, 2022, January 1, 2022 and January 2, 2021 are as follows (in thousands):


	Before-Tax		Tax (Expense)		Net-of-Tax
	Amount		or Benefit		Amount
Year Ended January 2, 2021
Defined Benefit Pension Plans
Actuarial (loss)/gain recognized	$	(9,470)	$	2,547	$	(6,923)
Amortization of actuarial gain/(loss)	3,405		(862)		2,543

Amortization of prior service costs	33		(8)		25
Amortization of curtailment	69		(15)		54
Amortization of settlement	(30)		7		(23)
Other	11		—		11
Total defined benefit pension plans	(5,982)		1,669		(4,313)




Soybean meal option derivatives
Reclassified to earnings	49		(12)		37
Activity recognized in other comprehensive income (loss)	349		(89)		260
Total soybean meal derivatives	398		(101)		297
Heating oil swap derivatives
Activity recognized in other comprehensive income (loss)	1,457		(353)		1,104
Total heating oil derivatives	1,457		(353)		1,104
Corn option derivatives
Reclassified to earnings	123		(31)		92
Activity recognized in other comprehensive income (loss)	(7,803)		1,980		(5,823)
Total corn options	(7,680)		1,949		(5,731)
Foreign exchange derivatives
Reclassified to earnings	(13,809)		5,114		(8,695)
Activity recognized in other comprehensive income (loss)	24,325		(9,009)		15,316
Total foreign exchange derivatives	10,516		(3,895)		6,621


Foreign currency translation	73,845		(3,525)		70,320
Other comprehensive income/(loss)	$	72,554	$	(4,256)	$	68,298
Year Ended January 1, 2022
Defined Benefit Pension Plans
Actuarial (loss)/gain recognized	$	12,415	$	(3,185)	$	9,230
Amortization of actuarial gain/(loss)	4,228		(978)		3,250

Amortization of prior service costs	25		(3)		22

Amortization of settlement	210		(27)		183
Other	(16)		—		(16)
Total defined benefit pension plans	16,862		(4,193)		12,669




Soybean meal option derivatives
Reclassified to earnings	(274)		70		(204)
Activity recognized in other comprehensive income (loss)	85		(22)		63
Total soybean meal derivatives	(189)		48		(141)
Heating oil swap derivatives
Activity recognized in other comprehensive income (loss)	1,199		(305)		894
Total heating oil derivatives	1,199		(305)		894
Corn option derivatives
Reclassified to earnings	17,005		(4,319)		12,686
Activity recognized in other comprehensive income (loss)	(14,541)		3,693		(10,848)
Total corn options	2,464		(626)		1,838
Foreign exchange derivatives
Reclassified to earnings	(2,333)		826		(1,507)
Activity recognized in other comprehensive income (loss)	(6,694)		2,368		(4,326)
Total foreign exchange derivatives	(9,027)		3,194		(5,833)
Foreign currency translation	(77,287)		3,068		(74,219)
Other comprehensive income/(loss)	$	(65,978)	$	1,186	$	(64,792)
Year Ended December 31, 2022
Defined Benefit Pension Plans
Actuarial gain/(loss) recognized	$	9,884	$	(2,645)	$	7,239
Amortization of actuarial gain/(loss)	2,235		(584)		1,651

Amortization of prior service costs	22		(5)		17

Amortization of settlement	(22)		5		(17)
Special termination benefits recognized	38		(10)		28
Other	48		—		48
Total defined benefit pension plans	12,205		(3,239)		8,966
Soybean meal option derivatives
Reclassified to earnings	(521)		132		(389)
Activity recognized in other comprehensive income (loss)	975		(247)		728
Total soybean meal derivatives	454		(115)		339
Heating oil swap derivatives

Activity recognized in other comprehensive income (loss)	(3,294)		836		(2,458)
Total heating oil derivatives	(3,294)		836		(2,458)
Corn option derivatives
Reclassified to earnings	15,408		(3,914)		11,494
Activity recognized in other comprehensive income (loss)	(10,653)		2,706		(7,947)
Total corn options	4,755		(1,208)		3,547
Foreign exchange derivatives
Reclassified to earnings	(14,549)		4,737		(9,812)
Activity recognized in other comprehensive income (loss)	32,644		(10,628)		22,016
Total foreign exchange derivatives	18,095		(5,891)		12,204
Foreign currency translation	(89,686)		1,830		(87,856)
Other comprehensive income/(loss)	$	(57,471)	$	(7,787)	$	(65,258)

Reclassification out of Accumulated Other Comprehensive Income


	Fiscal Year Ended
	December 31, 2022		January 1, 2022		January 2, 2021		Statement of Operations Classification
Derivative instruments
Soybean meal option derivatives	$	521	$	274	$	(49)	Net sales
Foreign Exchange derivatives	14,549		2,333		13,809		Net sales

Corn option derivatives	(15,408)		(17,005)		(123)		Cost of sales and operating expenses

	(338)		(14,398)		13,637		Total before tax
	(955)		3,423		(5,071)		Income taxes
	(1,293)		(10,975)		8,566		Net of tax
Defined benefit pension plans
Amortization of prior service cost	$	(22)	$	(25)	$	(33)	(a)
Amortization of actuarial loss	(2,235)		(4,228)		(3,405)		(a)
Amortization of curtailment	—		—		(69)		(a)
Amortization of settlement	22		(210)		30		(a)
Special termination benefits recognized	(38)		—		—		(a)
	(2,273)		(4,463)		(3,477)		Total before tax
	594		1,008		878		Income taxes
	(1,679)		(3,455)		(2,599)		Net of tax
Total reclassifications	$	(2,972)	$	(14,430)	$	5,967	Net of tax

(a)These items are included in the computation of net periodic pension cost. See Note 15 Employee Benefit Plans for additional information.

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table presents changes in each component of accumulated comprehensive loss as of December 31, 2022 as follows (in thousands):


	Fiscal Year Ended December 31, 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	(87,856)		12,339		7,287		(68,230)
Amounts reclassified from accumulated other comprehensive income	—		1,293		1,679		2,972

Net current-period other comprehensive income/(loss)	(87,856)		13,632		8,966		(65,258)
Noncontrolling interest	(3,074)		—		—		(3,074)
Accumulated Other Comprehensive loss December 31, 2022, attributable to Darling, net of tax	$	(374,368)	$	7,176	$	(16,682)	$	(383,874)