XML 38 R27.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Business Segments
 6 Months Ended
Jun. 29, 2024
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 and FASA names (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 and Gelnex names, (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 IngredientsFood IngredientsFuel IngredientsCorporateTotal
Three Months Ended June 29, 2024
Net sales$934,147 $378,841 $142,304 $— $1,455,292 
Cost of sales and operating expenses737,871 276,760 113,790 — 1,128,421 
Gross margin196,276 102,081 28,514 — 326,871 
Loss/(gain) on sale of assets205 37 (20)— 222 
Selling, general and administrative expenses74,015 28,844 8,409 18,463 129,731 
Acquisition and integration costs— — — 1,130 1,130 
Change in fair value of contingent consideration(33,122)— — — (33,122)
Depreciation and amortization86,444 27,372 8,723 2,066 124,605 
Equity in net income of Diamond Green Diesel— — 44,197 — 44,197 
Segment operating income/(loss)68,734 45,828 55,599 (21,659)148,502 
Equity in net income of other unconsolidated subsidiaries3,017 — — — 3,017 
Segment income/(loss)71,751 45,828 55,599 (21,659)151,519 
Total other expense(69,380)
Income before income taxes$82,139 
Feed IngredientsFood IngredientsFuel IngredientsCorporateTotal
Three Months Ended July 1, 2023
Net sales$1,141,661 $476,093 $139,867 $— $1,757,621 
Cost of sales and operating expenses876,413 371,095 112,194 — 1,359,702 
Gross margin265,248 104,998 27,673 — 397,919 
Loss/(gain) on sale of assets322 2 (65)— 259 
Selling, general and administrative expenses77,406 33,684 4,971 20,690 136,751 
Restructuring and impairment charges— 896 — — 896 
Acquisition and integration costs— — — 1,706 1,706 
Change in fair value of contingent consideration(7,499)— — — (7,499)
Depreciation and amortization82,575 28,445 8,567 2,499 122,086 
Equity in net income of Diamond Green Diesel— — 212,964 — 212,964 
Segment operating income/(loss)112,444 41,971 227,164 (24,895)356,684 
Equity in net income of other unconsolidated subsidiaries1,849 — — — 1,849 
Segment income/(loss)114,293 41,971 227,164 (24,895)358,533 
Total other expense(62,624)
Income before income taxes$295,909 
Feed IngredientsFood IngredientsFuel IngredientsCorporateTotal
Six Months Ended June 29, 2024
Net sales$1,823,995 $770,123 $281,473 $— $2,875,591 
Cost of sales and operating expenses1,443,640 574,905 226,542 — 2,245,087 
Gross margin380,355 195,218 54,931 — 630,504 
Loss/(gain) on sale of assets337 (257)(432)— (352)
Selling, general and administrative expenses151,153 60,588 17,154 39,979 268,874 
Acquisition and integration costs— — — 5,184 5,184 
Change in fair value of contingent consideration(58,371)— — — (58,371)
Depreciation and amortization174,013 56,240 17,390 4,471 252,114 
Equity in net income of Diamond Green Diesel— — 122,616 — 122,616 
Segment operating income/(loss)113,223 78,647 143,435 (49,634)285,671 
Equity in net income of other unconsolidated subsidiaries5,327 — — — 5,327 
Segment income/(loss)118,550 78,647 143,435 (49,634)290,998 
Total other expense(123,364)
Income before income taxes$167,634 
Segment assets at June 29, 2024$4,367,740 $2,277,464 $2,684,602 $1,290,843 $10,620,649 
Feed IngredientsFood IngredientsFuel IngredientsCorporateTotal
Six Months Ended July 1, 2023
Net sales$2,379,155 $872,485 $297,153 $— $3,548,793 
Cost of sales and operating expenses1,826,485 661,210 238,980 — 2,726,675 
Gross margin552,670 211,275 58,173 — 822,118 
Gain on sale of assets(20)(19)(29)— (68)
Selling, general and administrative expenses152,097 66,806 11,163 42,151 272,217 
Restructuring and asset impairment charges92 5,328 — — 5,420 
Acquisition and integration costs— — — 8,728 8,728 
Change in fair value of contingent consideration(7,499)— — — (7,499)
Depreciation and amortization172,895 42,918 16,960 5,319 238,092 
Equity in net income of Diamond Green Diesel— — 307,301 — 307,301 
Segment operating income/(loss)235,105 96,242 337,380 (56,198)612,529 
Equity in net income of other unconsolidated subsidiaries1,969 — — — 1,969 
Segment income/(loss)237,074 96,242 337,380 (56,198)614,498 
Total other expense(101,760)
Income before income taxes$512,738 
Segment assets at December 30, 2023$4,702,593 $2,646,702 $2,589,145 $1,122,644 $11,061,084