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Business Segments | 12 Months Ended
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Dec. 28, 2024
Segment Reporting [Abstract] |
BUSINESS SEGMENTS | BUSINESS SEGMENTS In 2024, the Company adopted Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, on a retrospective basis. The Company sells its products through a global network of over 260 locations across five continents within three industry segments: Feed Ingredients, Food Ingredients and Fuel Ingredients. The Company's segments are determined as those operations whose results are reviewed regularly by the chief operating decision maker (“CODM”), who is the Company's Chief Executive Officer, in deciding how to allocate resources and assess performance. Each segment is organized and managed based upon the nature of the Company's markets and customers and consists of similar products and services. The following is a description of each segment's business operations: 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, the Company’s Canada ingredients business, 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 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. The performance of the operating segments is evaluated based on segment profit (loss) which includes all revenues, operating expenses (excluding certain amortization of intangibles), and selling, general and administrative expenses incurred at all operating locations and excludes general corporate expenses. The CODM uses segment profit (loss) as the measure to make resource (including financial or capital resources) allocation decisions for each segment, predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a quarterly basis when evaluating performance for each segment and making decisions about capital allocation. Accounting policies have been applied consistently by all segments within the Company for all reporting periods. Intercompany revenue and expense amounts have been eliminated within each segment to report on the basis that management uses internally for evaluating segment performance. Business Segments (in thousands):
| Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate (a) | Total
Fiscal Year Ended December 28, 2024 |  |  |  |  |
Total net sales | $ | 3,675,609 |  | $ | 1,489,101 |  | $ | 550,465 |  | $ | — |  | $ | 5,715,175 |
Cost of sales and operating expenses | 2,886,125 |  | 1,115,348 |  | 435,864 |  | — |  | 4,437,337 |
Gross Margin | 789,484 |  | 373,753 |  | 114,601 |  | — |  | 1,277,838 |
Gain on sale of assets | (669) |  | (1,758) |  | (1,730) |  | — |  | (4,157) |
Selling, general and administrative expenses | 279,095 |  | 119,604 |  | 32,370 |  | 61,036 |  | 492,105 |
Restructuring and asset impairment charges | 3,671 |  | 2,123 |  | — |  | — |  | 5,794 |
Depreciation and amortization | 350,141 |  | 109,102 |  | 35,876 |  | 8,706 |  | 503,825 |
Acquisition and integration costs | — |  | — |  | — |  | 7,842 |  | 7,842 |
Change in fair value of contingent consideration | (46,706) |  | — |  | — |  | — |  | (46,706) |
Equity in net income of Diamond Green Diesel | — |  | — |  | 149,082 |  | — |  | 149,082 |
Segment operating income/(loss) | 203,952 |  | 144,682 |  | 197,167 |  | (77,584) |  | 468,217 |
Equity in net income of other unconsolidated subsidiaries | 11,994 |  | — |  | — |  | — |  | 11,994 |
Segment income/(loss) | 215,946 |  | 144,682 |  | 197,167 |  | (77,584) |  | 480,211 |
Total other expense (b) |  |  |  |  | (232,703) |
Income before income taxes |  |  |  |  | $ | 247,508 |
Segment assets at December 28, 2024 | $ | 4,100,841 |  | $ | 1,997,827 |  | $ | 2,489,149 |  | $ | 1,482,656 |  | $ | 10,070,473 |
(a) Included in corporate activities are general corporate expenses and the amortization of intangibles. Assets of corporate activities include cash, unallocated prepaid expenses, deferred tax assets, prepaid pension, and miscellaneous other assets. (b) Total other expense includes interest expense, foreign currency gain (loss) and other income (expense). Interest expense and foreign currency gain (loss) are separately disclosed on our Statement of Operations. Other income/(expense) consists of interest income of approximately $16.0 million, casualty gain of approximately $20.7 million, other pension expense excluding service cost of approximately $(1.8) million and other income (expense) of approximately $(12.6) million.
| Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total
Fiscal Year Ended December 30, 2023 |  |  |  |  |
Total net sales | $ | 4,472,592 |  | $ | 1,752,065 |  | $ | 563,423 |  | $ | — |  | $ | 6,788,080 |
Cost of sales and operating expenses | 3,385,859 |  | 1,310,581 |  | 446,620 |  | — |  | 5,143,060 |
Gross Margin | 1,086,733 |  | 441,484 |  | 116,803 |  | — |  | 1,645,020 |
Loss/(gain) on sale of assets | 814 |  | (8,144) |  | (91) |  | — |  | (7,421) |
Selling, general and administrative expenses | 310,363 |  | 128,464 |  | 23,543 |  | 80,164 |  | 542,534 |
Restructuring and asset impairment charges | 4,026 |  | 14,527 |  | — |  | — |  | 18,553 |
Depreciation and amortization | 360,249 |  | 94,991 |  | 34,466 |  | 12,309 |  | 502,015 |
Acquisition and integration costs | — |  | — |  | — |  | 13,884 |  | 13,884 |
Change in fair value of contingent consideration | (7,891) |  | — |  | — |  | — |  | (7,891) |
Equity in net income of Diamond Green Diesel | — |  | — |  | 366,380 |  | — |  | 366,380 |
Segment operating income/(loss) | 419,172 |  | 211,646 |  | 425,265 |  | (106,357) |  | 949,726 |
Equity in net income of other unconsolidated subsidiaries | 5,011 |  | — |  | — |  | — |  | 5,011 |
Segment income/(loss) | 424,183 |  | 211,646 |  | 425,265 |  | (106,357) |  | 954,737 |
Total other expense (c) |  |  |  |  | (234,780) |
Income before income taxes |  |  |  |  | $ | 719,957 |
Segment assets at December 30, 2023 | $ | 4,702,593 |  | $ | 2,646,702 |  | $ | 2,589,145 |  | $ | 1,122,644 |  | $ | 11,061,084 |
(c) Total other expense includes interest expense, foreign currency gain (loss) and other income (expense). Interest expense and foreign currency gain (loss) are separately disclosed on our Statement of Operations. Other income (expense) consists of interest income of approximately $16.4 million, casualty gain of approximately $7.8 million, other pension expense excluding service cost of approximately $(1.5) million and other expense of approximately $(6.4) million.
| Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total
Fiscal Year Ended December 31, 2022 |  |  |  |  |
Total net sales | $ | 4,539,000 |  | $ | 1,459,630 |  | $ | 533,574 |  | $ | — |  | $ | 6,532,204 |
Cost of sales and operating expenses | 3,473,506 |  | 1,102,250 |  | 426,853 |  | — |  | 5,002,609 |
Gross Margin | 1,065,494 |  | 357,380 |  | 106,721 |  | — |  | 1,529,595 |
Gain on sale of assets | (3,426) |  | (1,008) |  | (60) |  | — |  | (4,494) |
Selling, general and administrative expenses | 258,781 |  | 101,681 |  | 13,690 |  | 62,456 |  | 436,608 |
Restructuring and asset impairment charges | 8,557 |  | 21,109 |  | — |  | — |  | 29,666 |
Acquisition and integration costs | — |  | — |  | — |  | 16,372 |  | 16,372 |
Depreciation and amortization | 295,249 |  | 59,029 |  | 29,500 |  | 10,943 |  | 394,721 |
Equity in net income of Diamond Green Diesel | — |  | — |  | 372,346 |  | — |  | 372,346 |
Segment operating income/(loss) | 506,333 |  | 176,569 |  | 435,937 |  | (89,771) |  | 1,029,068 |
Equity in net income of other unconsolidated subsidiaries | 5,102 |  | — |  | — |  | — |  | 5,102 |
Segment income/(loss) | 511,435 |  | 176,569 |  | 435,937 |  | (89,771) |  | 1,034,170 |
Total other expense (d) |  |  |  |  | (140,452) |
Income before income taxes |  |  |  |  | $ | 893,718 |
(d) Total other expense includes interest expense, foreign currency gain (loss) and other income (expense). Interest expense and foreign currency gain (loss) are separately disclosed on our Statement of Operations. Other income (expense) consists of interest income of approximately $5.3 million, casualty loss of approximately $(4.6) million, other pension income excluding service cost of approximately $1.1 million and other expense of approximately $(5.4) million. Business Segment Property, Plant and Equipment (in thousands):
| December 28, 2024 |  | December 30, 2023 |  | December 31, 2022
Capital expenditures for the year ended: |  |  |  |  |
Feed Ingredients | $ | 219,541 |  |  | $ | 413,831 |  |  | $ | 270,157 |
Food Ingredients | 81,808 |  |  | 92,704 |  |  | 72,301 |
Fuel Ingredients | 27,230 |  |  | 39,053 |  |  | 37,568 |
Corporate | 3,886 |  |  | 9,892 |  |  | 11,283 |
Total (a) | $ | 332,465 |  |  | $ | 555,480 |  |  | $ | 391,309 |
(a) Excludes capital assets acquired in acquisitions in fiscal 2024, 2023 and 2022 of approximately $37.4 million, $155.5 million and $588.8 million, respectively. Long-lived assets related to the Company’s operations by geography were as follows (in thousands):
| FY 2024 | FY 2023
| Long-Lived Assets | Long-Lived Assets
North America | $ | 5,518,153 |  | $ | 5,667,606 |
Europe | 1,344,033 |  | 1,329,466 |
China | 115,152 |  | 116,698 |
South America | 1,636,246 |  | 2,072,840 |
Other | 17,453 |  | 18,808 |
Total | $ | 8,631,037 |  | $ | 9,205,418 |

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