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Business Segments
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
BUSINESS SEGMENTS
BUSINESS SEGMENTS

The Company sells its products domestically and internationally and operates within three industry segments: Feed Ingredients, Food Ingredients and Fuel Ingredients. The measure of segment profit (loss) includes all revenues, operating expenses (excluding certain amortization of intangibles), and selling, general and administrative expenses incurred at all operating locations and excludes general corporate expenses.

Included in corporate activities are general corporate expenses and the amortization of 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 used cooking oil, trap grease and food residuals collection businesses, the Rothsay ingredients business, and the ingredients and specialty products businesses conducted by Darling Ingredients International under the Sonac name (proteins, fats, technical fats and blood plasma products) and (ii) the Company's bakery residuals business. Feed Ingredients operations process animal by-products and used cooking oil into fats, protein and hides.

Food Ingredients
Food Ingredients consists principally of (i) the gelatin and hydrolyzed collagen business conducted by Darling Ingredients International under the Rousselot name, (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 biofuel business conducted under the Dar Pro® and Rothsay names (ii) the bioenergy business conducted by Darling Ingredients International under the Ecoson and Rendac names and (iii) the Company's investment in the DGD Joint Venture.

Business Segments (in thousands):

 
Feed Ingredients
Food Ingredients
Fuel Ingredients
Corporate
Total
Fiscal Year Ended December 31, 2016
 
 
 
 
 
Net Sales
$
2,089,145

$
1,061,912

$
247,058

$
—

$
3,398,115

Cost of sales and operating expenses
1,624,858

834,410

182,466

—

2,641,734

Gross Margin
464,287

227,502

64,592

—

756,381

 
 
 
 
 
 
Selling, general and administrative expense
169,648

96,170

6,895

41,292

314,005

Acquisition costs
—

—

—

401

401

Depreciation and amortization
178,845

70,120

28,531

12,412

289,908

Segment operating income/(loss)
115,794

61,212

29,166

(54,105
)
152,067

 
 
 
 
 
 
Equity in net income of unconsolidated subsidiaries
467

—

69,912

—

70,379

Segment income
116,261

61,212

99,078

(54,105
)
222,446

 
 
 
 
 
 
Total other expense
 
 
 
 
(99,907
)
Income before income taxes
 
 
 
 
$
122,539

 
 
 
 
 
 
Segment assets at December 31, 2016
$
2,464,509

$
1,414,409

$
657,637

$
161,462

$
4,698,017


 
Feed Ingredients
Food Ingredients
Fuel Ingredients
Corporate
Total
Fiscal Year Ended January 2, 2016
 
 
 
 
 
Net Sales
$
2,074,333

$
1,094,918

$
228,195

$
—

$
3,397,446

Cost of sales and operating expenses
1,613,402

863,562

177,061

—

2,654,025

Gross Margin
460,931

231,356

51,134

—

743,421

 
 
 
 
 
 
Selling, general and administrative expense
178,624

103,301

7,264

33,385

322,574

Acquisition costs
—

—

—

8,299

8,299

Depreciation and amortization
165,854

66,817

26,711

10,522

269,904

Segment operating income/(loss)
116,453

61,238

17,159

(52,206
)
142,644

 
 
 
 
 
 
Equity in net income of unconsolidated subsidiaries
1,521

—

71,895

—

73,416

Segment income
117,974

61,238

89,054

(52,206
)
216,060

 
 
 
 
 
 
Total other expense
 
 
 
 
(117,280
)
Income before income taxes
 
 
 
 
$
98,780

 
 
 
 
 
 
Segment assets at January 2, 2016
$
2,438,869

$
1,448,014

$
631,968

$
241,768

$
4,760,619


 
Feed Ingredients
Food Ingredients
Fuel Ingredients
Corporate
Total
Fiscal Year Ended January 3, 2015
 
 
 
 
 
Net Sales
$
2,421,462

$
1,248,352

$
286,629

$
—

$
3,956,443

Cost of sales and operating expenses
1,864,835

1,029,488

228,848

—

3,123,171

Gross Margin
556,627

218,864

57,781

—

833,272

 
 
 
 
 
 
Selling, general and administrative expense
205,484

118,716

8,596

41,784

374,580

Acquisition costs
—

—

—

24,667

24,667

Depreciation and amortization
158,871

73,274

27,898

9,474

269,517

Segment operating income/(loss)
192,272

26,874

21,287

(75,925
)
164,508

 
 
 
 
 
 
Equity in net income of unconsolidated subsidiaries
1,842

—

63,767

—

65,609

Segment income
194,114

26,874

85,054

(75,925
)
230,117

 
 
 
 
 
 
Total other expense
 
 
 
 
(148,665
)
Income before income taxes
 
 
 
 
$
81,452

 
 
 
 
 
 


 Business Segment Property, Plant and Equipment (in thousands):

 
 
December 31,
2016
 
January 2,
2016
 
January 3,
2015
Depreciation and amortization:
 
 
 
 
 
Feed Ingredients
$
178,845

 
$
165,854

 
$
158,871

Food Ingredients
70,120

 
66,817

 
73,274

Fuel Ingredients
28,531

 
26,711

 
27,898

Corporate Activities
12,412

 
10,522

 
9,474

Total
$
289,908

 
$
269,904

 
$
269,517

Capital expenditures:
 
 
 
 
 
Feed Ingredients
$
167,313

 
$
153,894

 
$
135,923

Food Ingredients
50,020

 
49,066

 
61,657

Fuel Ingredients
22,323

 
19,478

 
21,392

Corporate Activities
3,867

 
7,410

 
9,946

Total (a)
$
243,523

 
$
229,848

 
$
228,918


(a)
Excludes the immaterial capital assets acquired in fiscal 2016 and fiscal 2015 and the VION Acquisition and Custom Blenders acquisition in fiscal 2014 of approximately $984.2 million.

Geographic Area Net Trade Revenues (in thousands):
 
        
 
December 31,
2016
 
January 2,
2016
 
January 3,
2015
North America
$
1,817,659

 
$
1,951,421

 
$
2,131,978

Europe
1,225,397

 
1,066,779

 
1,438,320

China
218,480

 
234,978

 
229,876

South America
61,276

 
68,226

 
73,241

Other
75,303

 
76,042

 
83,028

Total
$
3,398,115

 
$
3,397,446

 
$
3,956,443


 
The Company attributes revenues from external customers to individual foreign countries based on the origin of the Company's shipments. 

Long-lived assets related to the Company's operations in North America, Europe, China, South American and other were as follows (in thousands):

        
 
FY 2016
FY 2015
 
Long-Lived Assets
Long-Lived Assets
North America
$
2,411,489

$
2,375,919

Europe
1,158,087

1,215,341

China
152,150

169,832

South America
74,837

60,396

Other
8,152

7,343

Total
$
3,804,715

$
3,828,831