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.