Guarantor Financial Information (Tables)

3 Months Ended

Apr. 02, 2016

Guarantor Financial Information [Abstract]

Guarantor Financial Information Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

As of April 2, 2016

(in thousands)



	Parent			Guarantors		Non-guarantors		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	1,233		$	2,080	$	144,013	$	—		$	147,326
Restricted cash	102			—		219		—			321
Accounts receivable	179,220			87,270		313,465		(203,609		)	376,346
Inventories	14,031			97,869		260,716		—			372,616
Income taxes refundable	8,930			—		2,895		—			11,825
Prepaid expenses	14,072			2,441		23,766		—			40,279
Other current assets	3,304			6,579		21,729		(20,042		)	11,570
Total current assets	220,892			196,239		766,803		(223,651		)	960,283
Investment in subsidiaries	4,101,825			1,141,644		837,604		(6,081,073		)	—
Property, plant and equipment, net	218,516			479,645		837,360		—			1,535,521
Intangible assets, net	16,772			317,561		457,833		—			792,166
Goodwill	21,860			549,690		697,746		—			1,269,296
Investment in unconsolidated subsidiaries	2,577			—		254,027		—			256,604
Other assets	34,242			499,305		331,596		(824,559		)	40,584
Deferred taxes	—			—		17,362		—			17,362
	$	4,616,684		$	3,184,084	$	4,200,331	$	(7,129,283	)	$	4,871,816
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	$	20,309		$	—	$	46,324	$	(20,042	)	$	46,591
Accounts payable	37,233			204,116		122,189		(192,643		)	170,895
Income taxes payable	(383		)	373		7,042		—			7,032
Accrued expenses	64,955			25,350		148,000		(10,967		)	227,338
Total current liabilities	122,114			229,839		323,555		(223,652		)	451,856
Long-term debt, net of current portion	1,241,509			5,963		1,501,480		(824,559		)	1,924,393
Other noncurrent liabilities	57,358			—		38,758		—			96,116
Deferred income taxes	146,385			—		222,255		—			368,640
Total liabilities	1,567,366			235,802		2,086,048		(1,048,211		)	2,841,005
Total stockholders’ equity	3,049,318			2,948,282		2,114,283		(6,081,072		)	2,030,811
	$	4,616,684		$	3,184,084	$	4,200,331	$	(7,129,283	)	$	4,871,816

Condensed Consolidating Balance Sheet

As of January 2, 2016

(in thousands)



	Parent			Guarantors		Non-guarantors		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	3,443		$	3,993	$	149,448	$	—		$	156,884
Restricted cash	102			—		229		—			331
Accounts receivable	184,472			81,644		310,932		(205,656		)	371,392
Inventories	13,564			89,078		241,941		—			344,583
Income taxes refundable	7,695			—		4,268		—			11,963
Prepaid expenses	13,322			2,262		20,591		—			36,175
Other current assets	5,273			24		22,852		(17,689		)	10,460
Total current assets	227,871			177,001		750,261		(223,345		)	931,788
Investment in subsidiaries	4,072,855			1,141,644		837,604		(6,052,103		)	—
Property, plant and equipment, net	224,208			477,446		806,513		—			1,508,167
Intangible assets, net	17,794			326,231		438,324		—			782,349
Goodwill	21,860			549,690		661,552		—			1,233,102
Investment in unconsolidated subsidiary	—			—		247,238		—			247,238
Other assets	36,488			499,764		314,893		(809,522		)	41,623
Deferred income taxes	—			—		16,352		—			16,352
	$	4,601,076		$	3,171,776	$	4,072,737	$	(7,084,970	)	$	4,760,619
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	$	20,328		$	—	$	42,527	$	(17,689	)	$	45,166
Accounts payable	6,981			210,926		122,136		(190,045		)	149,998
Income taxes payable	(383		)	373		6,689		—			6,679
Accrued expenses	82,854			29,037		143,547		(15,613		)	239,825
Total current liabilities	109,780			240,336		314,899		(223,347		)	441,668
Long-term debt, net of current portion	1,234,002			—		1,461,371		(809,522		)	1,885,851
Other noncurrent liabilities	57,578			1,999		38,232		—			97,809
Deferred income taxes	147,416			—		213,265		—			360,681
Total liabilities	1,548,776			242,335		2,027,767		(1,032,869		)	2,786,009
Total stockholders’ equity	3,052,300			2,929,441		2,044,970		(6,052,101		)	1,974,610
	$	4,601,076		$	3,171,776	$	4,072,737	$	(7,084,970	)	$	4,760,619

Guarantor Financial Information Condensed Consolidating Statements Of Operations

Condensed Consolidating Statements of Operations

For the three months ended April 2, 2016

(in thousands)



	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	108,371		$	303,765		$	411,037		$	(43,532	)	$	779,641
Cost and expenses:
Cost of sales and operating expenses	89,483			236,336			316,606			(43,532		)	598,893
Selling, general and administrative expenses	35,893			13,136			32,440			—			81,469
Acquisition and integration costs	—			—			331			—			331
Depreciation and amortization	11,425			26,808			34,023			—			72,256
Total costs and expenses	136,801			276,280			383,400			(43,532		)	752,949
Operating income/(loss)	(28,430		)	27,485			27,637			—			26,692

Interest expense	(15,522		)	4,377			(12,756		)	—			(23,901		)
Foreign currency gains/(losses)	(31		)	165			(2,737		)	—			(2,603		)
Other expense, net	(3,325		)	(5		)	2,025			—			(1,305		)
Equity in net income/(loss) of unconsolidated subsidiaries	(97		)	—			5,740			—			5,643
Earnings in investments in subsidiaries	28,971			—			—			(28,971		)	—
Income/(loss) before taxes	(18,434		)	32,022			19,909			(28,971		)	4,526
Income taxes (benefit)	(19,513		)	13,181			8,195			—			1,863
Net income attributable to noncontrolling interests	—			—			(1,584		)	—			(1,584		)
Net income/(loss) attributable to Darling	$	1,079		$	18,841		$	10,130		$	(28,971	)	$	1,079

Condensed Consolidating Statements of Operations

For the three months ended April 4, 2015

(in thousands)



	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	125,794		$	358,707		$	448,843		$	(58,650	)	$	874,694
Cost and expenses:
Cost of sales and operating expenses	103,616			284,503			355,052			(58,650		)	684,521
Selling, general and administrative expenses	33,130			14,868			38,633			—			86,631
Acquisition and integration costs	1,973			—			3,346			—			5,319
Depreciation and amortization	8,171			23,599			34,628			—			66,398
Total costs and expenses	146,890			322,970			431,659			(58,650		)	842,869
Operating income/(loss)	(21,096		)	35,737			17,184			—			31,825

Interest expense	(15,160		)	4,848			(12,797		)	—			(23,109		)
Foreign currency gains/(losses)	(11		)	(304		)	(2,145		)	—			(2,460		)
Other expense, net	(1,181		)	211			461			—			(509		)
Equity in net loss of unconsolidated subsidiaries	—			—			(1,808		)	—			(1,808		)
Earnings in investments in subsidiaries	17,449			—			—			(17,449		)	—
Income/(loss) before taxes	(19,999		)	40,492			895			(17,449		)	3,939
Income taxes (benefit)	(20,108		)	21,742			481			—			2,115
Net income attributable to noncontrolling interests	—			—			(1,715		)	—			(1,715		)
Net income/(loss) attributable to Darling	$	109		$	18,750		$	(1,301	)	$	(17,449	)	$	109

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

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the three months ended April 2, 2016

(in thousands)



	Parent			Guarantors		Non-guarantors			Eliminations			Consolidated
Net income/(loss)	$	2,663		$	18,841	$	10,130		$	(28,971	)	$	2,663
Other comprehensive income/(loss), net of tax:
Foreign currency translation	—			—		57,531			—			57,531
Pension adjustments	658			—		68			—			726
Corn option derivative adjustments	(706		)	—		—			—			(706		)
Total other comprehensive income/(loss), net of tax	(48		)	—		57,599			—			57,551
Total comprehensive income/(loss)	2,615			18,841		67,729			(28,971		)	60,214
Total comprehensive loss attributable to noncontrolling interest	—			—		(420		)	—			(420		)
Total comprehensive income/(loss) attributable to Darling	$	2,615		$	18,841	$	68,149		$	(28,971	)	$	60,634

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the three months ended April 4, 2015

(in thousands)



	Parent		Guarantors		Non-guarantors			Eliminations			Consolidated
Net income/(loss)	$	1,824	$	18,750	$	(1,301	)	$	(17,449	)	$	1,824
Other comprehensive income/(loss), net of tax:
Foreign currency translation	—		—		(93,315		)	—			(93,315		)
Pension adjustments	729		—		40			—			769
Corn option derivative adjustments	38		—		—			—			38
Total other comprehensive income/(loss), net of tax	767		—		(93,275		)	—			(92,508		)
Total comprehensive income/(loss)	2,591		18,750		(94,576		)	(17,449		)	(90,684		)
Total comprehensive income attributable to noncontrolling interest	—		—		7,042			—			7,042
Total comprehensive income/(loss) attributable to Darling	$	2,591	$	18,750	$	(101,618	)	$	(17,449	)	$	(97,726	)

Guarantor Financial Information Condensed Consolidating Statements Of Cash Flows

Condensed Consolidating Statements of Cash Flows

For the three months ended April 2, 2016

(in thousands)



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

Net income/(loss)	$	2,663		$	18,841		$	10,130		$	(28,971	)	$	2,663
Earnings in investments in subsidiaries	(28,971		)	—			—			28,971			—
Other operating cash flows	34,573			(4,953		)	12,760			—			42,380
Net cash provided by operating activities	8,265			13,888			22,890			—			45,043

Cash flows from investing activities:
Capital expenditures	(11,065		)	(21,764		)	(20,546		)	—			(53,375		)
Acquisitions	—			—			(8,511		)	—			(8,511		)
Note receivable from affiliates	—			—			(5,963		)	5,963			—
Gross proceeds from sale of property, plant and equipment and other assets	945			—			479			—			1,424
Proceeds from insurance settlements	—			—			1,181			—			1,181
Payments related to routes and other intangibles	—			—			—			—			—
Net cash used in investing activities	(10,120		)	(21,764		)	(33,360		)	5,963			(59,281		)

Cash flows from financing activities:
Proceeds for long-term debt	—			—			8,760			—			8,760
Payments on long-term debt	(5,291		)	—			(10,916		)	—			(16,207		)
Borrowings from revolving facilities	33,000			—			—			—			33,000
Payments on revolving facilities	(21,000		)	—			—			—			(21,000		)
Borrowings from affiliates	—			5,963			—			(5,963		)	—
Issuances of common stock	45			—			—			—			45
Repurchase of treasury stock	(5,000		)	—			—			—			(5,000		)
Contributions from parent	—			—			—			—			—
Minimum withholding taxes paid on stock awards	(1,663		)	—			(125		)	—			(1,788		)
Excess tax benefits from stock-based compensation	(446		)	—			—			—			(446		)
Net cash used in financing activities	(355		)	5,963			(2,281		)	(5,963		)	(2,636		)

Effect of exchange rate changes on cash	—			—			7,316			—			7,316

Net decrease in cash and cash equivalents	(2,210		)	(1,913		)	(5,435		)	—			(9,558		)
Cash and cash equivalents at beginning of year	3,443			3,993			149,448			—			156,884
Cash and cash equivalents at end of year	$	1,233		$	2,080		$	144,013		$	—		$	147,326

Condensed Consolidating Statements of Cash Flows

For the three months ended April 4, 2015

(in thousands)



	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income/(loss)	$	1,824		$	18,750		$	(1,301	)	$	(17,449	)	$	1,824
Earnings in investments in subsidiaries	(17,449		)	—			—			17,449			—
Other operating cash flows	48,023			(30,966		)	40,359			—			57,416
Net cash provided by operating activities	32,398			(12,216		)	39,058			—			59,240

Cash flows from investing activities:
Capital expenditures	(12,243		)	(19,393		)	(19,202		)	—			(50,838		)
Investment in subsidiaries and affiliates	(20		)	(29,541		)	29,541			20			—
Note receivable from affiliates	—			51,019			(51,019		)	—			—
Gross proceeds from sale of property, plant and equipment and other assets	142			259			133			—			534
Proceeds from insurance settlements	71			270			—			—			341
Payments related to routes and other intangibles	—			—			(753		)	—			(753		)
Net cash used in investing activities	(12,050		)	2,614			(41,300		)	20			(50,716		)

Cash flows from financing activities:
Proceeds for long-term debt	—			—			5,943			—			5,943
Payments on long-term debt	(4,000		)	(20		)	(9,582		)	—			(13,602		)
Borrowings from revolving credit facility	5,000			—			22,428			—			27,428
Payments on revolving credit facility	(25,000		)	—			(12,943		)	—			(37,943		)
Net cash overdraft financing	—			—			31,162			—			31,162
Issuances of common stock	81			—			—			—			81
Contributions from parent	—			—			20			(20		)	—
Minimum withholding taxes paid on stock awards	(4,469		)	—			—			—			(4,469		)
Excess tax benefits from stock-based compensation	(35		)	—			—			—			(35		)
Distributions to noncontolling interests	—			—			(38		)	—			(38		)
Net cash used in financing activities	(28,423		)	(20		)	36,990			(20		)	8,527

Effect of exchange rate changes on cash	—			—			(13,704		)	—			(13,704		)

Net increase/(decrease) in cash and cash equivalents	(8,075		)	(9,622		)	21,044			—			3,347
Cash and cash equivalents at beginning of year	10,447			14,460			83,877			—			108,784
Cash and cash equivalents at end of year	$	2,372		$	4,838		$	104,921		$	—		$	112,131