Guarantor Financial Information (Tables)

3 Months Ended

Mar. 29, 2014

Guarantor Financial Information [Abstract]

Guarantor Financial Information Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

As of March 29, 2014

(in thousands)



	Issuer			Guarantors		Non-guarantors			Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	54,293		$	13,451	$	75,678		$	—		$	143,422
Restricted cash	102			—		262			—			364
Accounts receivable	75,149			551,127		293,012			(483,902		)	435,386
Inventories	15,183			85,269		310,069			—			410,521
Income taxes refundable	28,569			3,732		(6,946		)	—			25,355
Prepaid expenses	16,157			1,544		12,778			—			30,479
Other current assets	1,280			57		31,641			—			32,978
Deferred income taxes	15,731			—		4,202			—			19,933
Total current assets	206,464			655,180		720,696			(483,902		)	1,098,438
Investment in subsidiaries	3,655,852			1,974,799		7,994,506			(13,625,157		)	—
Property, plant and equipment, net	201,459			392,624		1,087,553			—			1,681,636
Intangible assets, net	22,848			333,316		698,444			—			1,054,608
Goodwill	21,860			617,243		837,438			—			1,476,541
Investment in unconsolidated subsidiary	—			—		149,025			—			149,025
Other assets	73,870			588,801		(211,690		)	(370,997		)	79,984
Deferred taxes	(847		)	847		9,627			—			9,627
	$	4,181,506		$	4,562,810	$	11,285,599		$	(14,480,056	)	$	5,549,859
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	$	18,500		$	86	$	43,865		$	—		$	62,451
Accounts payable	492,596			35,099		266,800			(478,415		)	316,080
Accrued expenses	74,197			15,920		64,802			(5,487		)	149,432
Deferred taxes	—			—		1,764			—			1,764
Total current liabilities	$	585,293		$	51,105	$	377,231		$	(483,902	)	$	529,727
Long-term debt, net of current portion	1,436,500			13,359		1,251,631			(370,996		)	2,330,494
Other noncurrent liabilities	35,876			5,893		64,431			—			106,200
Deferred income taxes	131,373			7,726		348,587			—			487,686
Total liabilities	2,189,042			78,083		2,041,880			(854,898		)	3,454,107
Total stockholders’ equity	1,992,464			4,484,727		9,243,719			(13,625,158		)	2,095,752
	$	4,181,506		$	4,562,810	$	11,285,599		$	(14,480,056	)	$	5,549,859

Condensed Consolidating Balance Sheet

As of December 28, 2013

(in thousands)



	Issuer		Guarantors		Non-guarantors		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	857,267	$	6,117	$	7,473	$	—		$	870,857
Restricted cash	102		—		252		—			354
Accounts receivable	41,464		484,091		16,092		(428,803		)	112,844
Inventories	20,799		36,314		8,020		—			65,133
Income taxes refundable	14,397		—		115		—			14,512
Prepaid expenses	9,347		3,794		1,082		—			14,223
Other current assets	31,248		15		1,027		—			32,290
Deferred income taxes	15,107		—		2,182		—			17,289
Total current assets	989,731		530,331		36,243		(428,803		)	1,127,502
Investment in subsidiaries	2,140,869		63,116		—		(2,203,985		)	—
Property, plant and equipment, net	172,533		356,772		137,268		—			666,573
Intangible assets, net	15,896		340,611		232,157		—			588,664
Goodwill	21,860		424,244		255,533		—			701,637
Investment in unconsolidated subsidiary	—		—		115,114		—			115,114
Other assets	40,588		373,699		1,352		(370,996		)	44,643
	$	3,381,477	$	2,088,773	$	777,667	$	(3,003,784	)	$	3,244,133
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	$	10,000	$	87	$	9,801	$	—		$	19,888
Accounts payable	425,117		21,236		22,939		(425,550		)	43,742
Accrued expenses	85,165		20,178		11,084		(3,253		)	113,174
Total current liabilities	520,282		41,501		43,824		(428,803		)	176,804
Long-term debt, net of current portion	680,000		55		557,888		(370,996		)	866,947
Other noncurrent liabilities	36,381		—		4,290		—			40,671
Deferred income taxes	123,862		—		14,897		—			138,759
Total liabilities	1,360,525		41,556		620,899		(799,799		)	1,223,181
Total stockholders’ equity	2,020,952		2,047,217		156,768		(2,203,985		)	2,020,952
	$	3,381,477	$	2,088,773	$	777,667	$	(3,003,784	)	$	3,244,133

Guarantor Financial Information Condensed Consolidating Statements Of Operations

Condensed Consolidating Statements of Operations

For the three months ended March 29, 2014

(in thousands)



	Issuer			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	147,055		$	389,107		$	484,046		$	(88,773	)	$	931,435
Cost and expenses:
Cost of sales and operating expenses	110,794			313,008			420,424			(88,773		)	755,453
Selling, general and administrative expenses	37,552			13,876			43,501			—			94,929
Acquisition costs	14,381			—			1,567			—			15,948
Depreciation and amortization	7,518			19,511			38,640			—			65,669
Total costs and expenses	170,245			346,395			504,132			(88,773		)	931,999
Operating income	(23,190		)	42,712			(20,086		)	—			(564		)

Interest expense	(50,301		)	5,225			(13,781		)	—			(58,857		)
Foreign currency gains/ (losses)	(12,228		)	(92		)	(1,494		)	—			(13,814		)
Other, net	(1,453		)	(797		)	1,112			—			(1,138		)
Equity in net income of unconsolidated subsidiary	—			—			5,077			—			5,077
Earnings in investments in subsidiaries	11,361			—			—			(11,361		)	—
Income/(loss) before taxes	(75,811		)	47,048			(29,172		)	(11,361		)	(69,296		)
Income taxes (benefit)	(23,008		)	12,418			(7,700		)	—			(18,290		)
Net income/(loss) attributable to noncontrolling interests	—			—			(1,797		)	—			(1,797		)
Net income (loss) attributable to Darling	$	(52,803	)	$	34,630		$	(23,269	)	$	(11,361	)	$	(52,803	)

Condensed Consolidating Statements of Operations

For the three months ended March 30, 2013

(in thousands)



	Issuer			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	161,872		$	319,411		$	4,134		$	(39,995	)	$	445,422
Cost and expenses:
Cost of sales and operating expenses	124,104			234,521			4,056			(39,995		)	322,686
Selling, general and administrative expenses	22,567			19,686			40			—			42,293
Depreciation and amortization	6,138			15,723			6			—			21,867
Total costs and expenses	152,809			269,930			4,102			(39,995		)	386,846
Operating income	9,063			49,481			32			—			58,576

Interest expense	(5,621		)	(4		)	—			—			(5,625		)
Other, net	938			135			(6		)	—			1,067
Equity in net loss of unconsolidated subsidiary	—			—			(1,195		)	—			(1,195		)
Earnings in investments in subsidiaries	29,718			—			—			(29,718		)	—
Income/(loss) before taxes	34,098			49,612			(1,169		)	(29,718		)	52,823
Income taxes	1,693			19,177			(452		)	—			20,418
Net income (loss)	$	32,405		$	30,435		$	(717	)	$	(29,718	)	$	32,405

Condensed

Guarantor Financial Information Condensed Consolidating Statements of Comprehensive Income (Loss)

Condensed Consolidating Statements of Comprehensive Income (Loss)

For the three months ended March 29, 2014

(in thousands)



	Issuer			Guarantors		Non-guarantors			Eliminations			Consolidated
Net income	$	(51,006	)	$	34,630	$	(23,269	)	$	(11,361	)	$	(51,006	)
Other comprehensive income (loss), net of tax:
Foreign currency translation	—			—		20,615			—			20,615
Pension adjustments	320			—		—			—			320
Natural gas swap derivative adjustments	(113		)	—		—			—			(113		)
Corn option derivative adjustments	(1,598		)	—		—			—			(1,598		)
Total other comprehensive income, net of tax	(1,391		)	—		20,615			—			19,224
Total comprehensive income (loss)	$	(52,397	)	$	34,630	$	(2,654	)	$	(11,361	)	$	(31,782	)

Condensed Consolidating Statements of Comprehensive Income (Loss)

For the three months ended March 30, 2013

(in thousands)



	Issuer		Guarantors		Non-guarantors			Eliminations			Consolidated
Net income	$	32,405	$	30,435	$	(717	)	$	(29,718	)	$	32,405
Other comprehensive income (loss), net of tax:
Pension adjustments	805		—		—			—			805
Natural gas swap derivative adjustments	148		—		—			—			148
Corn option derivative adjustments	949		—		—			—			949
Total other comprehensive income, net of tax	1,902		—		—			—			1,902
Total comprehensive income (loss)	$	34,307	$	30,435	$	(717	)	$	(29,718	)	$	34,307

Guarantor Financial Information Condensed Consolidating Statements Of Cash Flows

Condensed Consolidating Statements of Cash Flows

For the three months ended March 29, 2014

(in thousands)



	Issuer			Guarantors			Non-guarantors			Eliminations			Consolidated
Cash flows from operating activities:

Net income	$	(51,006	)	$	34,630		$	(23,269	)	$	(11,361	)	$	(51,006	)
Earnings in investments in subsidiaries	(11,361		)	—			—			11,361			—
Other operating cash flows	35,205			(11,156		)	(3,547		)	—			20,502
Net cash provided by operating activities	(27,162		)	23,474			(26,816		)	—			(30,504		)

Cash flows from investing activities:
Capital expenditures	(14,754		)	(16,332		)	(20,274		)	—			(51,360		)
Acquisitions	—			(645		)	(2,081,045		)	—			(2,081,690		)
Investment in subsidiaries and affiliates	(1,483,007		)	(2,217,686		)	(7,688,504		)	11,389,197			—
Note receivable from affiliates	—			(204,074		)	204,074			—			—
Gross proceeds from sale of property, plant and equipment and other assets	298			857			169			—			1,324
Proceeds from insurance settlements	—			—			—			—			—
Payments related to routes and other intangibles	(6,812		)	—			—			—			(6,812		)
Net cash used in investing activities	(1,504,275		)	(2,437,880		)	(9,585,580		)	11,389,197			(2,138,538		)

Cash flows from financing activities:
Proceeds for long-term debt	1,100,000			—			697,509			—			1,797,509
Payments on long-term debt	(250,000		)	(22		)	(13,949		)	—			(263,971		)
Borrowings from revolving facilities	122,445			—			100,865			—			223,310
Payments on revolving facilities	(207,445		)	—			(66,029		)	—			(273,474		)
Deferred loan costs	(35,292		)	—			(3,494		)	—			(38,786		)
Issuances of common stock	2,504			—			—			—			2,504
Contributions from parent	—			2,421,762			8,967,435			(11,389,197		)	—
Minimum withholding taxes paid on stock awards	(4,709		)	—			—			—			(4,709		)
Excess tax benefits from stock-based compensation	960			—			—			—			960
Net cash used in financing activities	728,463			2,421,740			9,682,337			(11,389,197		)	1,443,343

Effect of exchange rate changes on cash and cash equivalents	—			—			(1,736		)	—			(1,736		)

Net increase/(decrease) in cash and cash equivalents	(802,974		)	7,334			68,205			—			(727,435		)
Cash and cash equivalents at beginning of year	857,267			6,117			7,473			—			870,857
Cash and cash equivalents at end of year	$	54,293		$	13,451		$	75,678		$	—		$	143,422

Condensed Consolidating Statements of Cash Flows

For the three months ended March 30, 2013

(in thousands)



	Issuer			Guarantors			Non-guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	32,405		$	30,435		$	(717	)	$	(29,718	)	$	32,405
Earnings in investments in subsidiaries	(29,718		)	—			—			29,718			—
Other operating cash flows	46,516			(20,600		)	1,161			—			27,077
Net cash provided by operating activities	49,203			9,835			444			—			59,482

Cash flows from investing activities:
Capital expenditures	(13,173		)	(13,219		)	—			—			(26,392		)
Acquisitions	—			—			—			—			—
Investment in subsidiaries and affiliates	(12,560		)	—			(12,535		)	12,560			(12,535		)
Gross proceeds from sale of property, plant and equipment and other assets	131			281			—			—			412
Proceeds from insurance settlements	—			—			—			—			—
Payments related to routes and other intangibles	(613		)	—			—			—			(613		)
Net cash used in investing activities	(26,215		)	(12,938		)	(12,535		)	12,560			(39,128		)

Cash flows from financing activities:
Payments on long-term debt	—			(21		)	—			—			(21		)
Issuances of common stock	16			—			—			—			16
Contributions from parent	—			—			12,560			(12,560		)	—
Minimum withholding taxes paid on stock awards	(2,523		)	—			—			—			(2,523		)
Excess tax benefits from stock-based compensation	702			—			—			—			702
Net cash used in financing activities	(1,805		)	(21		)	12,560			(12,560		)	(1,826		)

Net increase/(decrease) in cash and cash equivalents	21,183			(3,124		)	469			—			18,528
Cash and cash equivalents at beginning of year	96,945			5,577			727			—			103,249
Cash and cash equivalents at end of year	$	118,128		$	2,453		$	1,196		$	—		$	121,777