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Other Comprehensive Income | 9 Months Ended
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Sep. 29, 2018
Equity [Abstract] |
Other Comprehensive Income | Other Comprehensive Income/(Loss) The Company follows FASB authoritative guidance for reporting and presentation of comprehensive income/(loss) and its components. Other comprehensive income/(loss) is derived from adjustments that reflect pension adjustments, natural gas swap adjustments, corn option adjustments, foreign exchange forward 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 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 and nine months ended September 29, 2018 and September 30, 2017 are as follows (in thousands):
| Three Months Ended
| Before-Tax | Tax (Expense) | Net-of-Tax
| Amount | or Benefit | Amount
| September 29, 2018 | September 30, 2017 | September 29, 2018 | September 30, 2017 | September 29, 2018 | September 30, 2017
Defined benefit pension plans |  |  |  |  |  |
Amortization of prior service cost/(benefit) | $ | 9 |  | $ | 9 |  | $ | (3 | ) | $ | (3 | ) | $ | 6 |  | $ | 6 |
Amortization of actuarial loss | 888 |  | 1,204 |  | (226 | ) | (451 | ) | 662 |  | 753 |
Total defined benefit pension plans | 897 |  | 1,213 |  | (229 | ) | (454 | ) | 668 |  | 759 |
Natural gas swap derivatives |  |  |  |  |  |
Loss/(gain) reclassified to net income | — |  | — |  | — |  | — |  | — |  | — |
Gain/(loss) activity recognized in other comprehensive income/(loss) | — |  | 36 |  | — |  | (14 | ) | — |  | 22 |
Total natural gas swap derivatives | — |  | 36 |  | — |  | (14 | ) | — |  | 22 |
Soybean meal option derivatives |  |  |  |  |  |
Loss/(gain) reclassified to net income | (4 | ) | — |  | 1 |  | — |  | (3 | ) | — |
Gain/(loss) activity recognized in other comprehensive income/(loss) | 8 |  | — |  | (2 | ) | — |  | 6 |  | — |
Total soybean meal option derivatives | 4 |  | — |  | (1 | ) | — |  | 3 |  | — |
Corn option derivatives |  |  |  |  |  |
Loss/(gain) reclassified to net income | (563 | ) | (1,352 | ) | 147 |  | 525 |  | (416 | ) | (827 | )
Gain/(loss) activity recognized in other comprehensive income/(loss) | 507 |  | 2,740 |  | (131 | ) | (1,063 | ) | 376 |  | 1,677 |
Total corn option derivatives | (56 | ) | 1,388 |  | 16 |  | (538 | ) | (40 | ) | 850 |
Foreign exchange derivatives |  |  |  |  |  |
Gain/(loss) activity recognized in other comprehensive income/(loss) | 468 |  | — |  | (159 | ) | — |  | 309 |  | — |
Total foreign exchange derivatives | 468 |  | — |  | (159 | ) | — |  | 309 |  | — |
Foreign currency translation | (5,749 | ) | 46,211 |  | 165 |  | — |  | (5,584 | ) | 46,211 |
Other comprehensive income/(loss) | $ | (4,436 | ) | $ | 48,848 |  | $ | (208 | ) | $ | (1,006 | ) | $ | (4,644 | ) | $ | 47,842 |
| Nine Months Ended
| Before-Tax | Tax (Expense) | Net-of-Tax
| Amount | or Benefit | Amount
| September 29, 2018 | September 30, 2017 | September 29, 2018 | September 30, 2017 | September 29, 2018 | September 30, 2017
Defined benefit pension plans |  |  |  |  |  |
Amortization of prior service cost/(benefit) | $ | 26 |  | $ | 27 |  | $ | (7 | ) | $ | (8 | ) | $ | 19 |  | $ | 19 |
Amortization of actuarial loss | 2,664 |  | 3,610 |  | (682 | ) | (1,351 | ) | 1,982 |  | 2,259 |
Total defined benefit pension plans | 2,690 |  | 3,637 |  | (689 | ) | (1,359 | ) | 2,001 |  | 2,278 |
Natural gas swap derivatives |  |  |  |  |  |
Loss/(gain) reclassified to net income | 14 |  | — |  | (3 | ) | — |  | 11 |  | — |
Gain/(loss) activity recognized in other comprehensive income/(loss) | 15 |  | 36 |  | (4 | ) | (14 | ) | 11 |  | 22 |
Total natural gas swap derivatives | 29 |  | 36 |  | (7 | ) | (14 | ) | 22 |  | 22 |
Soybean meal option derivatives |  |  |  |  |  |
Loss/(gain) reclassified to net income | (4 | ) | — |  | 1 |  | — |  | (3 | ) | — |
Gain/(loss) activity recognized in other comprehensive income/(loss) | 8 |  | — |  | (2 | ) | — |  | 6 |  | — |
Total soybean meal option derivatives | 4 |  | — |  | (1 | ) | — |  | 3 |  | — |
Corn option derivatives |  |  |  |  |  |
Loss/(gain) reclassified to net income | (1,554 | ) | (3,750 | ) | 404 |  | 1,455 |  | (1,150 | ) | (2,295 | )
Gain/(loss) activity recognized in other comprehensive income/(loss) | (65 | ) | 1,918 |  | 17 |  | (744 | ) | (48 | ) | 1,174 |
Total corn option derivatives | (1,619 | ) | (1,832 | ) | 421 |  | 711 |  | (1,198 | ) | (1,121 | )
Foreign exchange derivatives |  |  |  |  |  |
Gain/(loss) activity recognized in other comprehensive income/(loss) | 468 |  | — |  | (159 | ) | — |  | 309 |  | — |
Total foreign exchange derivatives | 468 |  | — |  | (159 | ) | — |  | 309 |  | — |
Foreign currency translation | (66,407 | ) | 111,002 |  | 1,281 |  | — |  | (65,126 | ) | 111,002 |
Other comprehensive income/(loss) | $ | (64,835 | ) | $ | 112,843 |  | $ | 846 |  | $ | (662 | ) | $ | (63,989 | ) | $ | 112,181 |
The following table presents the amounts reclassified out of each component of other comprehensive income (loss), net of tax for the three and nine months ended September 29, 2018 and September 30, 2017 as follows (in thousands):
| Three Months Ended | Nine Months Ended |
| September 29, 2018 | September 30, 2017 | September 29, 2018 | September 30, 2017 | Statement of Operations Classification
Derivative instruments |  |  |  |  |
Soybean meal derivatives | $ | 4 |  | $ | — |  | $ | 4 |  | $ | — |  | Net sales
Natural gas swap derivatives | — |  | — |  | (14 | ) | — |  | Cost of sales and operating expenses
Corn option derivatives | 563 |  | 1,352 |  | 1,554 |  | 3,750 |  | Cost of sales and operating expenses
| 567 |  | 1,352 |  | 1,544 |  | 3,750 |  | Total before tax
| (148 | ) | (525 | ) | (402 | ) | (1,455 | ) | Income taxes
| 419 |  | 827 |  | 1,142 |  | 2,295 |  | Net of tax
Defined benefit pension plans |  |  |  |  |
Amortization of prior service cost | $ | (9 | ) | $ | (9 | ) | $ | (26 | ) | $ | (27 | ) | (a)
Amortization of actuarial loss | (888 | ) | (1,204 | ) | (2,664 | ) | (3,610 | ) | (a)
| (897 | ) | (1,213 | ) | (2,690 | ) | (3,637 | ) | Total before tax
| 229 |  | 454 |  | 689 |  | 1,359 |  | Income taxes
| (668 | ) | (759 | ) | (2,001 | ) | (2,278 | ) | Net of tax
Total reclassifications | $ | (249 | ) | $ | 68 |  | $ | (859 | ) | $ | 17 |  | 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 other comprehensive income/(loss) as of September 29, 2018 as follows (in thousands):
|  | Nine Months Ended September 29, 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 |  | (65,126 | ) | 278 |  | — |  | (64,848 | )
Amounts reclassified from accumulated other comprehensive income/(loss) |  | — |  | (1,142 | ) | 2,001 |  | 859 |
Reclassification of tax effect (a) |  | — |  | 291 |  | (5,073 | ) | (4,782 | )
Net current-period other comprehensive income/(loss) |  | (65,126 | ) | (573 | ) | (3,072 | ) | (68,771 | )
Noncontrolling interest |  | (971 | ) | — |  | — |  | (971 | )
Accumulated Other Comprehensive Income/(loss) September 29, 2018, attributable to Darling, net of tax |  | (247,316 | ) | $ | 799 |  | $ | (30,807 | ) | $ | (277,324 | )
(a) | Stranded tax effects reclassified from accumulated other comprehensive income (loss) to retained earnings from the adoption of ASU 2018-02.

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- Definition The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -URI http://asc.fasb.org/topic&trid=2134417 + Details
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- References No definition available. + Details
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