Other Comprehensive Income

The Company follows FASB authoritative guidance for reporting and presentation of comprehensive income and its components. Other comprehensive income (loss) is derived from adjustments that reflect pension adjustments, natural gas swap adjustments, corn option adjustments and foreign currency translation adjustments. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU amends Topic 220, Income Statement - Reporting Comprehensive Income, which will allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The ASU is effective for fiscal years beginning after December 15, 2018; however, the Company elected to early adopt ASU No. 2018-02 during the quarter ended March 31, 2018. The adoption resulted in a $4.8 million reclassification from accumulated other comprehensive income (loss) to retained earnings resulting from the Tax Cuts and Jobs Act.

The components of other comprehensive income (loss) and the related tax impacts for the three months ended March 31, 2018 and April 1, 2017 are as follows (in thousands):



	Three Months Ended
	Before-Tax						Tax (Expense)						Net-of-Tax
	Amount						or Benefit						Amount
	March 31, 2018			April 1, 2017			March 31, 2018			April 1, 2017			March 31, 2018			April 1, 2017
Defined benefit pension plans
Amortization of prior service cost/(benefit)	$	9		$	9		$	(3	)	$	(3	)	$	6		$	6
Amortization of actuarial loss	888			1,203			(227		)	(450		)	661			753
Total defined benefit pension plans	897			1,212			(230		)	(453		)	667			759
Natural gas swap derivatives
Loss/(gain) reclassified to net income	14			—			(4		)	—			10			—
Gain/(loss) activity recognized in other comprehensive income (loss)	16			—			(4		)	—			12			—
Total natural gas swap derivatives	30			—			(8		)	—			22			—
Corn option derivatives
Loss/(gain) reclassified to net income	(668		)	(1,185		)	173			460			(495		)	(725		)
Gain/(loss) activity recognized in other comprehensive income (loss)	(1,497		)	(615		)	387			238			(1,110		)	(377		)
Total corn option derivatives	(2,165		)	(1,800		)	560			698			(1,605		)	(1,102		)

Foreign currency translation	17,295			15,679			—			—			17,295			15,679

Other comprehensive income (loss)	$	16,057		$	15,091		$	322		$	245		$	16,379		$	15,336

The following table presents the amounts reclassified out of each component of other comprehensive income (loss), net of tax for the three months ended March 31, 2018 and April 1, 2017 as follows (in thousands):



	Three Months Ended
	March 31, 2018			April 1, 2017			Statement of Operations Classification
Derivative instruments
Natural gas swap derivatives	$	(14	)	$	—		Cost of sales and operating expenses
Corn option derivatives	668			1,185			Cost of sales and operating expenses
	654			1,185			Total before tax
	(169		)	(460		)	Income taxes
	485			725			Net of tax
Defined benefit pension plans
Amortization of prior service cost	$	(9	)	$	(9	)	(a)
Amortization of actuarial loss	(888		)	(1,203		)	(a)
	(897		)	(1,212		)	Total before tax
	230			453			Income taxes
	(667		)	(759		)	Net of tax
Total reclassifications	$	(182	)	$	(34	)	Net of tax


(a)	These items are included in the computation of net periodic pension cost. See Note 13 Employee Benefit Plans for additional information.

The following table presents changes in each component of accumulated comprehensive income (loss) as of March 31, 2018 as follows (in thousands):



	Three Months Ended March 31, 2018
	Foreign Currency			Derivative			Defined Benefit
	Translation			Instruments			Pension Plans			Total
Accumulated Other Comprehensive Income (loss) December 30, 2017, attributable to Darling, net of tax	$	(183,161	)	$	1,372		$	(27,735	)	$	(209,524	)
Other comprehensive gain (loss) before reclassifications	17,295			(1,098		)	—			16,197
Amounts reclassified from accumulated other comprehensive income (loss)	—			(485		)	667			182
Reclassification of tax effect (a)	—			291			(5,073		)	(4,782		)
Net current-period other comprehensive income	17,295			(1,292		)	(4,406		)	11,597
Noncontrolling interest	517			—			—			517
Accumulated Other Comprehensive Income (loss) March 31, 2018, attributable to Darling, net of tax	(166,383		)	$	80		$	(32,141	)	$	(198,444	)


(a)	Stranded tax effects reclassified from accumulated other comprehensive income (loss) to retained earnings from the adoption of ASU 2018-02.