Guarantor Financial Information (Tables)

9 Months Ended

Oct. 01, 2016

Guarantor Financial Information [Abstract]

Guarantor Financial Information Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

As of October 1, 2016

(in thousands)



	Parent			Guarantors		Non-guarantors		Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	1,377		$	1,742	$	145,466	$	—		$	148,585
Restricted cash	103			—		191		—			294
Accounts receivable	33,178			91,987		354,447		(96,755		)	382,857
Inventories	21,154			97,957		239,984		—			359,095
Income taxes refundable	8,933			—		4,289		—			13,222
Prepaid expenses	14,365			2,623		23,353		—			40,341
Other current assets	7,481			2,038		14,235		(5,145		)	18,609
Total current assets	86,591			196,347		781,965		(101,900		)	963,003
Investment in subsidiaries	4,230,796			1,141,644		803,728		(6,176,168		)	—
Property, plant and equipment, net	223,556			495,111		816,518		—			1,535,185
Intangible assets, net	14,732			300,222		432,568		—			747,522
Goodwill	21,860			549,690		684,826		—			1,256,376
Investment in unconsolidated subsidiaries	1,861			—		259,829		—			261,690
Other assets	30,210			446,233		306,849		(747,380		)	35,912
Deferred taxes	—			—		17,196		—			17,196
	$	4,609,606		$	3,129,247	$	4,103,479	$	(7,025,448	)	$	4,816,884
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of long-term debt	$	5,729		$	—	$	26,585	$	(5,145	)	$	27,169
Accounts payable	39,588			82,352		120,465		(73,849		)	168,556
Income taxes payable	(383		)	373		9,384		—			9,374
Accrued expenses	79,242			31,024		167,200		(22,905		)	254,561
Total current liabilities	124,176			113,749		323,634		(101,899		)	459,660
Long-term debt, net of current portion	1,163,790			—		1,401,951		(747,380		)	1,818,361
Other noncurrent liabilities	54,228			—		35,289		—			89,517
Deferred income taxes	148,518			—		215,431		—			363,949
Total liabilities	1,490,712			113,749		1,976,305		(849,279		)	2,731,487
Total stockholders’ equity	3,118,894			3,015,498		2,127,174		(6,176,169		)	2,085,397
	$	4,609,606		$	3,129,247	$	4,103,479	$	(7,025,448	)	$	4,816,884

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 October 1, 2016

(in thousands)



	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	130,063		$	347,384		$	433,523		$	(57,114	)	$	853,856
Cost and expenses:
Cost of sales and operating expenses	99,705			286,919			341,657			(57,114		)	671,167
Selling, general and administrative expenses	29,987			13,421			33,100			—			76,508
Acquisition and integration costs	—			—			—			—			—
Depreciation and amortization	9,622			24,813			36,218			—			70,653
Total costs and expenses	139,314			325,153			410,975			(57,114		)	818,328
Operating income/(loss)	(9,251		)	22,231			22,548			—			35,528

Interest expense	(15,382		)	4,437			(12,922		)	—			(23,867		)
Foreign currency gains/(losses)	(11		)	(152		)	517			—			354
Other expense, net	(3,439		)	258			1,174			—			(2,007		)
Equity in net income/(loss) of unconsolidated subsidiaries	(362		)	—			18,500			—			18,138
Earnings in investments in subsidiaries	60,952			—			—			(60,952		)	—
Income/(loss) before taxes	32,507			26,774			29,817			(60,952		)	28,146
Income taxes (benefit)	3,813			(3,140		)	(1,417		)	—			(744		)
Net income attributable to noncontrolling interests	—			—			(196		)	—			(196		)
Net income/(loss) attributable to Darling	$	28,694		$	29,914		$	31,038		$	(60,952	)	$	28,694

Condensed Consolidating Statements of Operations

For the nine months ended October 1, 2016

(in thousands)



	Parent			Guarantors		Non-guarantors			Eliminations			Consolidated
Net sales	$	367,811		$	994,028	$	1,297,393		$	(148,394	)	$	2,510,838
Cost and expenses:
Cost of sales and operating expenses	288,976			796,001		1,010,592			(148,394		)	1,947,175
Selling, general and administrative expenses	100,449			38,018		95,668			—			234,135
Acquisition and integration costs	—			—		401			—			401
Depreciation and amortization	30,459			75,723		106,258			—			212,440
Total costs and expenses	419,884			909,742		1,212,919			(148,394		)	2,394,151
Operating income/(loss)	(52,073		)	84,286		84,474			—			116,687

Interest expense	(46,242		)	13,391		(38,897		)	—			(71,748		)
Foreign currency gains/(losses)	32			36		(2,309		)	—			(2,241		)
Other expense, net	(10,429		)	380		4,364			—			(5,685		)
Equity in net income/(loss) of unconsolidated subsidiaries	(814		)	—		38,447			—			37,633
Earnings in investments in subsidiaries	157,943			—		—			(157,943		)	—
Income/(loss) before taxes	48,417			98,093		86,079			(157,943		)	74,646
Income taxes (benefit)	(13,355		)	11,961		10,496			—			9,102
Net income attributable to noncontrolling interests	—			—		(3,772		)	—			(3,772		)
Net income/(loss) attributable to Darling	$	61,772		$	86,132	$	71,811		$	(157,943	)	$	61,772

Condensed Consolidating Statements of Operations

For the three months ended October 3, 2015

(in thousands)



	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	122,670		$	341,936		$	437,905		$	(48,749	)	$	853,762
Cost and expenses:
Cost of sales and operating expenses	92,188			282,218			345,664			(48,749		)	671,321
Selling, general and administrative expenses	23,651			14,285			37,090			—			75,026
Acquisition and integration costs	764			—			516			—			1,280
Depreciation and amortization	8,074			24,409			34,844			—			67,327
Total costs and expenses	124,677			320,912			418,114			(48,749		)	814,954
Operating income/(loss)	(2,007		)	21,024			19,791			—			38,808

Interest expense	(15,339		)	4,635			(14,124		)	—			(24,828		)
Foreign currency gains/(losses)	1			(561		)	(1,901		)	—			(2,461		)
Other expense, net	(1,282		)	1,488			798			—			1,004
Equity in net loss of unconsolidated subsidiaries	—			—			(12,021		)	—			(12,021		)
Earnings in investments in subsidiaries	(45,361		)	—			—			45,361			—
Income/(loss) before taxes	(63,988		)	26,586			(7,457		)	45,361			502
Income taxes (benefit)	(54,901		)	67,707			(4,947		)	—			7,859
Net income attributable to noncontrolling interests	—			—			(1,730		)	—			(1,730		)
Net income/(loss) attributable to Darling	$	(9,087	)	$	(41,121	)	$	(4,240	)	$	45,361		$	(9,087	)

Condensed Consolidating Statements of Operations

For the nine months ended October 3, 2015

(in thousands)



	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Net sales	$	369,734		$	1,045,673		$	1,323,884		$	(151,520	)	$	2,587,771
Cost and expenses:
Cost of sales and operating expenses	285,125			845,594			1,044,919			(151,520		)	2,024,118
Selling, general and administrative expenses	91,905			42,322			111,724			—			245,951
Acquisition costs	3,340			—			4,467			—			7,807
Depreciation and amortization	24,228			71,841			103,901			—			199,970
Total costs and expenses	404,598			959,757			1,265,011			(151,520		)	2,477,846
Operating income/(loss)	(34,864		)	85,916			58,873			—			109,925

Interest expense	(45,568		)	14,334			(50,988		)	—			(82,222		)
Foreign currency gains/(losses)	(8		)	(958		)	(2,333		)	—			(3,299		)
Other expense, net	(3,687		)	1,117			1,866			—			(704		)
Equity in net loss of unconsolidated subsidiaries	—			—			(9,657		)	—			(9,657		)
Earnings in investments in subsidiaries	(9,468		)	—			—			9,468			—
Income/(loss) before taxes	(93,595		)	100,409			(2,239		)	9,468			14,043
Income taxes (benefit)	(87,697		)	104,670			(2,334		)	—			14,639
Net income attributable to noncontrolling interests	—			—			(5,302		)	—			(5,302		)
Net income/(loss) attributable to Darling	$	(5,898	)	$	(4,261	)	$	(5,207	)	$	9,468		$	(5,898	)

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

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the three months ended October 1, 2016

(in thousands)



	Parent		Guarantors		Non-guarantors			Eliminations			Consolidated
Net income/(loss)	$	28,890	$	29,914	$	31,038		$	(60,952	)	$	28,890
Other comprehensive income/(loss), net of tax:
Foreign currency translation	—		—		(5,839		)	—			(5,839		)
Pension adjustments	659		—		68			—			727
Corn option derivative adjustments	734		—		—			—			734
Total other comprehensive income/(loss), net of tax	1,393		—		(5,771		)	—			(4,378		)
Total comprehensive income/(loss)	30,283		29,914		25,267			(60,952		)	24,512
Total comprehensive income attributable to noncontrolling interest	—		—		(94		)	—			(94		)
Total comprehensive income/(loss) attributable to Darling	$	30,283	$	29,914	$	25,361		$	(60,952	)	$	24,606

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the nine months ended October 1, 2016

(in thousands)



	Parent		Guarantors			Non-guarantors		Eliminations			Consolidated
Net income/(loss)	$	65,544	$	86,132		$	71,811	$	(157,943	)	$	65,544
Other comprehensive income/ (loss), net of tax:
Foreign currency translation	—		—			43,684		—			43,684
Pension adjustments	1,975		(75		)	204		—			2,104
Corn option derivative adjustments	1,255		—			—		—			1,255
Total other comprehensive income, net of tax	3,230		(75		)	43,888		—			47,043
Total comprehensive income/(loss)	68,774		86,057			115,699		(157,943		)	112,587
Total comprehensive income attributable to noncontrolling interest	—		—			1,211		—			1,211
Total comprehensive income/(loss) attributable to Darling	$	68,774	$	86,057		$	114,488	$	(157,943	)	$	111,376

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the three months ended October 3, 2015

(in thousands)



	Parent			Guarantors			Non-guarantors			Eliminations		Consolidated
Net income/(loss)	$	(7,357	)	$	(41,121	)	$	(4,240	)	$	45,361	$	(7,357	)
Other comprehensive income/(loss), net of tax:
Foreign currency translation	—			—			(43,295		)	—		(43,295		)
Pension adjustments	730			—			50			—		780
Corn option derivative adjustments	1,861			—			—			—		1,861
Total other comprehensive income/(loss), net of tax	2,591			—			(43,245		)	—		(40,654		)
Total comprehensive income/(loss)	(4,766		)	(41,121		)	(47,485		)	45,361		(48,011		)
Total comprehensive income attributable to noncontrolling interest	—			—			39			—		39
Total comprehensive income/(loss) attributable to Darling	$	(4,766	)	$	(41,121	)	$	(47,524	)	$	45,361	$	(48,050	)

Condensed Consolidating Statements of Comprehensive Income/(Loss)

For the nine months ended October 3, 2015

(in thousands)



	Parent			Guarantors			Non-guarantors			Eliminations		Consolidated
Net income/(loss)	$	(596	)	$	(4,261	)	$	(5,207	)	$	9,468	$	(596	)
Other comprehensive income/(loss), net of tax:
Foreign currency translation	—			—			(129,167		)	—		(129,167		)
Pension adjustments	2,188			—			139			—		2,327
Corn option derivative adjustments	574			—			—			—		574
Total other comprehensive income, net of tax	2,762			—			(129,028		)	—		(126,266		)
Total comprehensive income/(loss)	2,166			(4,261		)	(134,235		)	9,468		(126,862		)
Total comprehensive income attributable to noncontrolling interest	—			—			7,929			—		7,929
Total comprehensive income/(loss) attributable to Darling	$	2,166		$	(4,261	)	$	(142,164	)	$	9,468	$	(134,791	)

Guarantor Financial Information Condensed Consolidating Statements Of Cash Flows

Condensed Consolidating Statements of Cash Flows

For the nine months ended October 1, 2016

(in thousands)



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

Net income/(loss)	$	65,544		$	86,132		$	71,811		$	(157,943	)	$	65,544
Earnings in investments in subsidiaries	(157,943		)	—			—			157,943			—
Other operating cash flows	215,375			(74,110		)	73,753			—			215,018
Net cash provided by operating activities	122,976			12,022			145,564			—			280,562

Cash flows from investing activities:
Capital expenditures	(33,431		)	(68,145		)	(66,648		)	—			(168,224		)
Acquisitions	—			—			(8,511		)	—			(8,511		)
Note receivable from affiliates	—			53,056			(53,056		)	—			—
Gross proceeds from sale of property, plant and equipment and other assets	2,375			816			1,301			—			4,492
Proceeds from insurance settlements	—			—			1,537			—			1,537
Net cash used in investing activities	(31,056		)	(14,273		)	(125,377		)	—			(170,706		)

Cash flows from financing activities:
Proceeds for long-term debt	—			—			28,765			—			28,765
Payments on long-term debt	(87,411		)	—			(40,953		)	—			(128,364		)
Borrowings from revolving facilities	83,000			—			—			—			83,000
Payments on revolving facilities	(83,000		)	—			(10,028		)	—			(93,028		)
Issuances of common stock	143			—			—			—			143
Repurchase of treasury stock	(5,000		)	—			—			—			(5,000		)
Minimum withholding taxes paid on stock awards	(1,718		)	—			(125		)	—			(1,843		)
Distributions to noncontrolling interests	—			—			(885		)	—			(885		)
Net cash used in financing activities	(93,986		)	—			(23,226		)	—			(117,212		)

Effect of exchange rate changes on cash	—			—			(943		)	—			(943		)

Net increase/(decrease) in cash and cash equivalents	(2,066		)	(2,251		)	(3,982		)	—			(8,299		)
Cash and cash equivalents at beginning of year	3,443			3,993			149,448			—			156,884
Cash and cash equivalents at end of year	$	1,377		$	1,742		$	145,466		$	—		$	148,585

Condensed Consolidating Statements of Cash Flows

For the nine months ended October 3, 2015

(in thousands)



	Parent			Guarantors			Non-guarantors			Eliminations			Consolidated
Cash flows from operating activities:
Net income/(loss)	$	(596	)	$	(4,261	)	$	(5,207	)	$	9,468		$	(596	)
Earnings in investments in subsidiaries	9,468			—			—			(9,468		)	—
Other operating cash flows	74,837			39,901			182,512			—			297,250
Net cash provided by operating activities	83,709			35,640			177,305			—			296,654

Cash flows from investing activities:
Capital expenditures	(28,830		)	(70,947		)	(62,487		)	—			(162,264		)
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	707			807			959			—			2,473
Proceeds from insurance settlements	71			490			—			—			561
Payments related to routes and other intangibles	—			—			(2,939		)	—			(2,939		)
Net cash used in investing activities	(28,072		)	(48,172		)	(85,945		)	20			(162,169		)

Cash flows from financing activities:
Proceeds for long-term debt	—			—			586,199			—			586,199
Payments on long-term debt	(12,092		)	(55		)	(583,725		)	—			(595,872		)
Borrowings from revolving credit facility	25,000			—			53,244			—			78,244
Payments on revolving credit facility	(60,000		)	—			(70,876		)	—			(130,876		)
Net cash overdraft financing	—			—			(1,261		)	—			(1,261		)
Deferred loan costs	(7,104		)	—			(10,015		)	—			(17,119		)
Issuances of common stock	171			—			—			—			171
Repurchase of treasury stock	(5,912		)	—			—			—			(5,912		)
Contributions from parent	—			—			20			(20		)	—
Minimum withholding taxes paid on stock awards	(4,838		)	—			—			—			(4,838		)
Distributions to noncontolling interests	—			—			(2,820		)	—			(2,820		)
Net cash used in financing activities	(64,775		)	(55		)	(29,234		)	(20		)	(94,084		)

Effect of exchange rate changes on cash	—			—			(299		)	—			(299		)

Net increase/(decrease) in cash and cash equivalents	(9,138		)	(12,587		)	61,827			—			40,102
Cash and cash equivalents at beginning of year	10,447			14,460			83,877			—			108,784
Cash and cash equivalents at end of year	$	1,309		$	1,873		$	145,704		$	—		$	148,886