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Business Segments | 12 Months Ended
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Dec. 30, 2017
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 fats and proteins, 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, and plasma products) and (ii) the Company's bakery residuals business. Food Ingredients Food Ingredients consists principally of (i) the gelatin and collagen hydrolysates 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. The Fuel Ingredients segment results did not include any blenders tax credits in fiscal 2017. In February 2018, the blender tax credits for calendar year 2017 were retroactively reinstated by the U.S. Congress. The Fuel Ingredients segment is expected to receive approximately $12.6 million in fiscal 2018 for these reinstated blenders tax credits. Business Segments (in thousands):
| Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total
Fiscal Year Ended December 30, 2017 |  |  |  |  |
Net Sales | $ | 2,239,492 |  | $ | 1,156,976 |  | $ | 265,783 |  | $ | — |  | $ | 3,662,251 |
Cost of sales and operating expenses | 1,744,768 |  | 920,575 |  | 210,508 |  | — |  | 2,875,851 |
Gross Margin | 494,724 |  | 236,401 |  | 55,275 |  | — |  | 786,400 |
Selling, general and administrative expense | 180,866 |  | 104,982 |  | 10,467 |  | 51,172 |  | 347,487 |
Depreciation and amortization | 184,172 |  | 75,010 |  | 31,019 |  | 11,899 |  | 302,100 |
Segment operating income/(loss) | 129,686 |  | 56,409 |  | 13,789 |  | (63,071 | ) | 136,813 |
Equity in net income of unconsolidated subsidiaries | 265 |  | — |  | 28,239 |  | — |  | 28,504 |
Segment income | 129,951 |  | 56,409 |  | 42,028 |  | (63,071 | ) | 165,317 |
Total other expense |  |  |  |  | (101,117 | )
Income before income taxes |  |  |  |  | $ | 64,200 |
Segment assets at December 30, 2017 | $ | 2,614,545 |  | $ | 1,499,027 |  | $ | 688,890 |  | $ | 155,763 |  | $ | 4,958,225 |
| Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total
Fiscal Year Ended December 31, 2016 |  |  |  |  |
Net Sales | $ | 2,089,145 |  | $ | 1,055,725 |  | $ | 247,058 |  | $ | — |  | $ | 3,391,928 |
Cost of sales and operating expenses | 1,624,858 |  | 828,223 |  | 182,466 |  | — |  | 2,635,547 |
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 |  | $ | 1,088,727 |  | $ | 228,195 |  | $ | — |  | $ | 3,391,255 |
Cost of sales and operating expenses | 1,613,402 |  | 863,562 |  | 177,061 |  | — |  | 2,654,025 |
Gross Margin | 460,931 |  | 225,165 |  | 51,134 |  | — |  | 737,230 |
Selling, general and administrative expense | 178,624 |  | 97,110 |  | 7,264 |  | 33,385 |  | 316,383 |
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 |
Business Segment Property, Plant and Equipment (in thousands):
| December 30, 2017 |  | December 31, 2016 |  | January 2, 2016
Depreciation and amortization: |  |  |  |  |
Feed Ingredients | $ | 184,172 |  |  | $ | 178,845 |  |  | $ | 165,854 |
Food Ingredients | 75,010 |  |  | 70,120 |  |  | 66,817 |
Fuel Ingredients | 31,019 |  |  | 28,531 |  |  | 26,711 |
Corporate Activities | 11,899 |  |  | 12,412 |  |  | 10,522 |
Total | $ | 302,100 |  |  | $ | 289,908 |  |  | $ | 269,904 |
Capital expenditures: |  |  |  |  |
Feed Ingredients | $ | 191,953 |  |  | $ | 167,313 |  |  | $ | 153,894 |
Food Ingredients | 50,099 |  |  | 50,020 |  |  | 49,066 |
Fuel Ingredients | 24,707 |  |  | 22,323 |  |  | 19,478 |
Corporate Activities | 7,409 |  |  | 3,867 |  |  | 7,410 |
Total (a) | $ | 274,168 |  |  | $ | 243,523 |  |  | $ | 229,848 |
(a) | Excludes immaterial capital assets acquired by acquisition in fiscal 2017, fiscal 2016 and fiscal 2015.
Geographic Area Net Trade Revenues (in thousands):
| December 30, 2017 |  | December 31, 2016 |  | January 2, 2016
North America | $ | 1,937,027 |  |  | $ | 1,817,659 |  |  | $ | 1,951,421 |
Europe | 1,372,750 |  |  | 1,225,397 |  |  | 1,066,779 |
China | 209,780 |  |  | 218,480 |  |  | 234,978 |
South America | 60,111 |  |  | 55,089 |  |  | 62,035 |
Other | 82,583 |  |  | 75,303 |  |  | 76,042 |
Total | $ | 3,662,251 |  |  | $ | 3,391,928 |  |  | $ | 3,391,255 |
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 2017 | FY 2016
| Long-Lived Assets | Long-Lived Assets
North America | $ | 2,468,111 |  | $ | 2,411,489 |
Europe | 1,292,020 |  | 1,158,087 |
China | 151,760 |  | 152,150 |
South America | 81,247 |  | 74,837 |
Other | 8,642 |  | 8,152 |
Total | $ | 4,001,780 |  | $ | 3,804,715 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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