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 income (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 collagen 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 investment in the DGD Joint Venture (ii) the Company's biofuel business conducted under the Dar Pro® and Rothsay names and (iii) the bioenergy business conducted by Darling Ingredients International under the Ecoson and Rendac names.

Business Segments (in thousands):



	Feed Ingredients			Food Ingredients		Fuel Ingredients			Corporate			Total
Three Months Ended March 30, 2019
Net Sales	$	495,819		$	279,164	$	60,121		$	—		$	835,104
Cost of sales and operating expenses	382,468			214,118		50,077			—			646,663
Gross Margin	113,351			65,046		10,044			—			188,441

Selling, general and administrative expenses	48,831			21,887		(754		)	15,039			85,003
Depreciation and amortization	49,369			19,511		7,798			2,486			79,164
Segment operating income/(loss)	15,151			23,648		3,000			(17,525		)	24,274

Equity in net income/(loss) of unconsolidated subsidiaries	(504		)	—		24,277			—			23,773
Segment income/(loss)	14,647			23,648		27,277			(17,525		)	48,047

Total other expense												(23,133		)
Loss before income taxes												$	24,914

Segment assets at March 30, 2019	$	2,583,753		$	1,394,049	$	794,467		$	222,785		$	4,995,054



	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 expenses	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/(loss) 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 December 29, 2018	$	2,566,106		$	1,401,291	$	761,817		$	160,140		$	4,889,354