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Business Segments | 6 Months Ended
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Jul. 01, 2023
Segment Reporting [Abstract] |
Business Segments | Business SegmentsThe 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, Darling Canada, and the ingredients and specialty products businesses conducted by Darling Ingredients International under the Sonac and FASA names (proteins, fats, and blood 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 and Gelnex names, (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 and (ii) 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 July 1, 2023 |  |  |  |  |
Net Sales | $ | 1,141,661 |  | $ | 476,093 |  | $ | 139,867 |  | $ | — |  | $ | 1,757,621 |
Cost of sales and operating expenses | 876,413 |  | 371,095 |  | 112,194 |  | — |  | 1,359,702 |
Gross Margin | 265,248 |  | 104,998 |  | 27,673 |  | — |  | 397,919 |
Loss/(gain) on sale of assets | 322 |  | 2 |  | (65) |  | — |  | 259 |
Selling, general and administrative expenses | 77,406 |  | 33,684 |  | 4,971 |  | 20,690 |  | 136,751 |
Restructuring and asset impairment charges | — |  | 896 |  | — |  | — |  | 896 |
Acquisition and integration costs | — |  | — |  | — |  | 1,706 |  | 1,706 |
Change in fair value of contingent consideration | (7,499) |  | — |  | — |  | — |  | (7,499) |
Depreciation and amortization | 82,575 |  | 28,445 |  | 8,567 |  | 2,499 |  | 122,086 |
Equity in net income of Diamond Green Diesel | — |  | — |  | 212,964 |  | — |  | 212,964 |
Segment operating income/(loss) | 112,444 |  | 41,971 |  | 227,164 |  | (24,895) |  | 356,684 |
Equity in net income of other unconsolidated subsidiaries | 1,849 |  | — |  | — |  | — |  | 1,849 |
Segment income/(loss) | 114,293 |  | 41,971 |  | 227,164 |  | (24,895) |  | 358,533 |
Total other expense |  |  |  |  | (62,624) |
Income before income taxes |  |  |  |  | $ | 295,909 |
| Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total
Three Months Ended July 2, 2022 |  |  |  |  |
Net Sales | $ | 1,170,347 |  | $ | 369,181 |  | $ | 110,660 |  | $ | — |  | $ | 1,650,188 |
Cost of sales and operating expenses | 864,306 |  | 280,964 |  | 86,237 |  | — |  | 1,231,507 |
Gross Margin | 306,041 |  | 88,217 |  | 24,423 |  | — |  | 418,681 |
Gain on sale of assets | (964) |  | (73) |  | (18) |  | — |  | (1,055) |
Selling, general and administrative expenses | 64,863 |  | 22,855 |  | 4,277 |  | 15,781 |  | 107,776 |
Restructuring and impairment charges | 8,557 |  | — |  | — |  | — |  | 8,557 |
Acquisition and integration costs | — |  | — |  | — |  | 5,358 |  | 5,358 |
Depreciation and amortization | 68,938 |  | 14,449 |  | 6,936 |  | 2,790 |  | 93,113 |
Equity in net income of Diamond Green Diesel | — |  | — |  | 73,680 |  | — |  | 73,680 |
Segment operating income/(loss) | 164,647 |  | 50,986 |  | 86,908 |  | (23,929) |  | 278,612 |
Equity in net income of other unconsolidated subsidiaries | 2,272 |  | — |  | — |  | — |  | 2,272 |
Segment income/(loss) | 166,919 |  | 50,986 |  | 86,908 |  | (23,929) |  | 280,884 |
Total other expense |  |  |  |  | (28,722) |
Income before income taxes |  |  |  |  | $ | 252,162 |
| Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total
Six Months Ended July 1, 2023 |  |  |  |  |
Net Sales | $ | 2,379,155 |  | $ | 872,485 |  | $ | 297,153 |  | $ | — |  | $ | 3,548,793 |
Cost of sales and operating expenses | 1,826,485 |  | 661,210 |  | 238,980 |  | — |  | 2,726,675 |
Gross Margin | 552,670 |  | 211,275 |  | 58,173 |  | — |  | 822,118 |
Gain on sale of assets | (20) |  | (19) |  | (29) |  | — |  | (68) |
Selling, general and administrative expenses | 152,097 |  | 66,806 |  | 11,163 |  | 42,151 |  | 272,217 |
Restructuring and asset impairment charges | 92 |  | 5,328 |  | — |  | — |  | 5,420 |
Acquisition and integration costs | — |  | — |  | — |  | 8,728 |  | 8,728 |
Change in fair value of contingent consideration | (7,499) |  | — |  | — |  | — |  | (7,499) |
Depreciation and amortization | 172,895 |  | 42,918 |  | 16,960 |  | 5,319 |  | 238,092 |
Equity in net income of Diamond Green Diesel | — |  | — |  | 307,301 |  | — |  | 307,301 |
Segment operating income/(loss) | 235,105 |  | 96,242 |  | 337,380 |  | (56,198) |  | 612,529 |
Equity in net income of other unconsolidated subsidiaries | 1,969 |  | — |  | — |  | — |  | 1,969 |
Segment income/(loss) | 237,074 |  | 96,242 |  | 337,380 |  | (56,198) |  | 614,498 |
Total other expense |  |  |  |  | (101,760) |
Income before income taxes |  |  |  |  | $ | 512,738 |
Segment assets at July 1, 2023 | $ | 4,738,648 |  | $ | 2,613,854 |  | $ | 2,573,246 |  | $ | 1,047,491 |  | $ | 10,973,239 |
| Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total
Six Months Ended July 2, 2022 |  |  |  |  |
Net Sales | $ | 2,049,785 |  | $ | 723,995 |  | $ | 242,742 |  | $ | — |  | $ | 3,016,522 |
Cost of sales and operating expenses | 1,509,829 |  | 551,276 |  | 190,979 |  | — |  | 2,252,084 |
Gross Margin | 539,956 |  | 172,719 |  | 51,763 |  | — |  | 764,438 |
Gain on sale of assets | (1,305) |  | (82) |  | (57) |  | — |  | (1,444) |
Selling, general and administrative expenses | 121,072 |  | 49,699 |  | 8,197 |  | 30,840 |  | 209,808 |
Restructuring and asset impairment charges | 8,557 |  | — |  | — |  | — |  | 8,557 |
Acquisition and integration costs | — |  | — |  | — |  | 9,131 |  | 9,131 |
Depreciation and amortization | 123,288 |  | 29,899 |  | 13,610 |  | 5,562 |  | 172,359 |
Equity in net income of Diamond Green Diesel | — |  | — |  | 145,484 |  | — |  | 145,484 |
Segment operating income/(loss) | 288,344 |  | 93,203 |  | 175,497 |  | (45,533) |  | 511,511 |
Equity in net income of other unconsolidated subsidiaries | 3,632 |  | — |  | — |  | — |  | 3,632 |
Segment income/(loss) | 291,976 |  | 93,203 |  | 175,497 |  | (45,533) |  | 515,143 |
Total other expense |  |  |  |  | (46,167) |
Income before income taxes |  |  |  |  | $ | 468,976 |
Segment assets at December 31, 2022 | $ | 4,866,351 |  | $ | 1,251,473 |  | $ | 2,307,199 |  | $ | 777,347 |  | $ | 9,202,370 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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