Business Segments

The Company sells its products domestically and internationally, operating 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 corporate activities.

Included in corporate activities are general corporate expenses and the amortization of certain 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, 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. Feed Ingredients operations process animal by-products and used cooking oil into fats, proteins and hides.

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.

Business Segments (in thousands):



	Feed Ingredients			Food Ingredients		Fuel Ingredients			Corporate			Total
Three Months Ended March 31, 2018
Net Sales	$	485,798		$	305,520	$	84,056		$	—		$	875,374
Cost of sales and operating expenses	369,088			249,185		59,826			—			678,099
Gross Margin	116,710			56,335		24,230			—			197,275

Selling, general and administrative expense	48,265			23,861		(1,398		)	16,174			86,902
Depreciation and amortization	46,789			20,640		8,471			2,719			78,619
Segment operating income/(loss)	21,656			11,834		17,157			(18,893		)	31,754

Equity in net income of unconsolidated subsidiaries	(45		)	—		97,199			—			97,154
Segment income/(loss)	21,611			11,834		114,356			(18,893		)	128,908

Total other expense												(27,121		)
Income before income taxes												$	101,787

Segment assets at March 31, 2018	$	2,589,281		$	1,525,149	$	809,895		$	161,185		$	5,085,510



	Feed Ingredients		Food Ingredients		Fuel Ingredients		Corporate			Total
Three Months Ended April 1, 2017
Net Sales	$	552,624	$	266,226	$	59,660	$	—		$	878,510
Cost of sales and operating expenses	432,576		209,392		45,998		—			687,966
Gross Margin	120,048		56,834		13,662		—			190,544

Selling, general and administrative expense	44,837		24,977		3,263		13,846			86,923
Depreciation and amortization	43,719		17,601		6,845		2,949			71,114
Segment operating income/(loss)	31,492		14,256		3,554		(16,795		)	32,507

Equity in net income of unconsolidated subsidiaries	109		—		597		—			706
Segment income/(loss)	31,601		14,256		4,151		(16,795		)	33,213

Total other expense										(23,997		)
Income before income taxes										$	9,216

Segment assets at December 30, 2017	$	2,614,545	$	1,499,027	$	688,890	$	155,763		$	4,958,225