Other Comprehensive Income (Tables)

3 Months Ended

Mar. 30, 2024

The components of other comprehensive income/(loss) and the related tax impacts for the three months ended March 30, 2024 and April 1, 2023 are as follows (in thousands):


	Three Months Ended
	Before-Tax				Tax (Expense)				Net-of-Tax
	Amount				or Benefit				Amount
	March 30, 2024		April 1, 2023		March 30, 2024		April 1, 2023		March 30, 2024		April 1, 2023
Defined benefit pension plans

Amortization of prior service (cost)/benefit	$	(6)	$	—	$	3	$	—	$	(3)	$	—
Amortization of actuarial loss	349		434		(84)		(107)		265		327

Total defined benefit pension plans	343		434		(81)		(107)		262		327




Soybean meal option derivatives
Reclassified to earnings	(33)		(338)		8		86		(25)		(252)
Activity recognized in other comprehensive income/(loss)	—		76		—		(19)		—		57
Total soybean meal option derivatives	(33)		(262)		8		67		(25)		(195)
Corn option derivatives
Reclassified to earnings	—		(884)		—		225		—		(659)
Activity recognized in other comprehensive income/(loss)	—		1,030		—		(262)		—		768
Total corn option derivatives	—		146		—		(37)		—		109
Heating oil derivatives at DGD (Note 15)
Activity recognized in other comprehensive income/(loss)	(41,919)		28,432		10,186		(7,222)		(31,733)		21,210
Total heating oil derivatives	(41,919)		28,432		10,186		(7,222)		(31,733)		21,210
Interest swap derivatives
Reclassified to earnings	(17,480)		1,856		4,248		(471)		(13,232)		1,385
Activity recognized in other comprehensive income/(loss)	22,865		(891)		(5,556)		226		17,309		(665)
Total interest swap derivatives	5,385		965		(1,308)		(245)		4,077		720
Foreign exchange derivatives
Reclassified to earnings	(5,996)		(4,814)		2,046		1,637		(3,950)		(3,177)
Activity recognized in other comprehensive income/(loss)	(4,415)		13,329		1,506		(4,532)		(2,909)		8,797
Total foreign exchange derivatives	(10,411)		8,515		3,552		(2,895)		(6,859)		5,620

Foreign currency translation	(65,343)		56,859		673		(642)		(64,670)		56,217

Other comprehensive income/(loss)	$	(111,978)	$	95,089	$	13,030	$	(11,081)	$	(98,948)	$	84,008

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 months ended March 30, 2024 and April 1, 2023 as follows (in thousands):


	Three Months Ended
	March 30, 2024		April 1, 2023		Statement of Operations Classification
Derivative instruments
Soybean meal option derivatives	$	33	$	338	Net sales
Foreign exchange contracts	5,996		4,814		Net sales

Corn option derivatives	—		884		Cost of sales and operating expenses
Interest swaps	17,480		(1,856)		Foreign currency gain/(loss) and interest expense
	23,509		4,180		Total before tax
	(6,302)		(1,477)		Income taxes
	17,207		2,703		Net of tax
Defined benefit pension plans
Amortization of prior service cost	$	6	$	—	(a)
Amortization of actuarial loss	(349)		(434)		(a)

	(343)		(434)		Total before tax
	81		107		Income taxes
	(262)		(327)		Net of tax
Total reclassifications	$	16,945	$	2,376	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 March 30, 2024 as follows (in thousands):


	Three Months Ended March 30, 2024
	Foreign				Defined
	Currency		Derivative		Benefit
	Translation		Instruments		Pension Plans		Total
Accumulated Other Comprehensive income/ (loss) December 30, 2023, attributable to Darling, net of tax	$	(231,678)	$	47,730	$	(14,398)	$	(198,346)
Other comprehensive income/ (loss) before reclassifications	(64,670)		(17,333)		265		(81,738)
Amounts reclassified from accumulated other comprehensive income/ (loss)	—		(17,207)		(3)		(17,210)

Net current-period other comprehensive income/ (loss)	(64,670)		(34,540)		262		(98,948)
Noncontrolling interest	1,170		—		—		1,170
Accumulated Other Comprehensive income/ (loss) March 30, 2024, attributable to Darling, net of tax	$	(297,518)	$	13,190	$	(14,136)	$	(298,464)