Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 23, 2017 | Jul. 02, 2016 | |
Entity Information [Line Items] | |||
Entity Registrant Name | DARLING INGREDIENTS INC. | ||
Entity Central Index Key | 916,540 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Public Float | $ 2,419,845,000 | ||
Entity Common Stock, Shares Outstanding | 164,714,529 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 114,564 | $ 156,884 |
Restricted cash | 293 | 331 |
Accounts receivable, less allowance for bad debts of $8,090 at December 31, 2016 and $9,732 at January 2, 2016 | 388,397 | 371,392 |
Inventories | 330,815 | 344,583 |
Prepaid expenses | 29,984 | 36,175 |
Income taxes refundable | 7,479 | 11,963 |
Other current assets | 21,770 | 10,460 |
Total current assets | 893,302 | 931,788 |
Property, plant and equipment, net | 1,515,575 | 1,508,167 |
Intangible assets, less accumulated amortization of $301,187 at December 31, 2016 and $252,719 at January 2, 2016 | 711,927 | 782,349 |
Goodwill | 1,225,893 | 1,233,102 |
Investment in unconsolidated subsidiaries | 292,717 | 247,238 |
Other assets | 43,613 | 41,623 |
Deferred income taxes | 14,990 | 16,352 |
Total assets | 4,698,017 | 4,760,619 |
Current liabilities: | ||
Current portion of long-term debt | 23,247 | 45,166 |
Accounts payable, principally trade | 180,895 | 149,998 |
Income taxes payable | 4,913 | 6,679 |
Accrued expenses | 242,796 | 239,825 |
Total current liabilities | 451,851 | 441,668 |
Long-term debt, net of current portion | 1,727,696 | 1,885,851 |
Other noncurrent liabilities | 96,114 | 97,809 |
Deferred income taxes | 346,134 | 360,681 |
Total liabilities | 2,621,795 | 2,786,009 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $.01 par value; 250,000,000 shares authorized, 167,641,415 and 167,070,983 shares issued at December 31, 2016 and January 2, 2016, respectively | 1,676 | 1,671 |
Additional paid-in capital | 1,499,431 | 1,488,783 |
Treasury stock, at cost; 3,028,857 and 2,335,607 shares at December 31, 2016 and January 2, 2016, respectively | (40,909) | (34,316) |
Accumulated other comprehensive loss | (340,006) | (335,918) |
Retained earnings | 852,802 | 750,489 |
Total Darling's stockholders’ equity | 1,972,994 | 1,870,709 |
Noncontrolling interests | 103,228 | 103,901 |
Total stockholders’ equity | 2,076,222 | 1,974,610 |
Total liabilities and stockholders' equity | $ 4,698,017 | $ 4,760,619 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Assets [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 8,090 | $ 9,732 |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 301,187 | $ 252,719 |
Stockholders’ equity: | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares, issued (in shares) | 167,641,415 | 167,070,983 |
Treasury stock (in shares) | 3,028,857 | 2,335,607 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Net Sales | $ 887,277 | $ 853,856 | $ 877,341 | $ 779,641 | $ 809,675 | $ 853,762 | $ 859,315 | $ 874,694 | $ 3,398,115 | $ 3,397,446 | $ 3,956,443 |
Costs and expenses: | |||||||||||
Cost of sales and operating expenses | 2,641,734 | 2,654,025 | 3,123,171 | ||||||||
Selling, general and administrative expense | 314,005 | 322,574 | 374,580 | ||||||||
Depreciation and amortization | 289,908 | 269,904 | 269,517 | ||||||||
Acquisition and integration costs | 100 | 300 | 500 | 1,300 | 1,200 | 5,300 | 401 | 8,299 | 24,667 | ||
Total costs and expenses | 3,246,048 | 3,254,802 | 3,791,935 | ||||||||
Operating income | 35,380 | 35,528 | 54,467 | 26,692 | 32,719 | 38,808 | 39,292 | 31,825 | 152,067 | 142,644 | 164,508 |
Other expense: | |||||||||||
Interest expense | (94,187) | (105,530) | (135,416) | ||||||||
Foreign currency losses | (1,854) | (4,911) | (13,548) | ||||||||
Other income/(expense), net | (3,866) | (6,839) | 299 | ||||||||
Total other expense | (99,907) | (117,280) | (148,665) | ||||||||
Equity in net income of unconsolidated subsidiaries | 70,379 | 73,416 | 65,609 | ||||||||
Income from operations before income taxes | 47,893 | 28,146 | 41,974 | 4,526 | 84,737 | 502 | 9,602 | 3,939 | 122,539 | 98,780 | 81,452 |
Income taxes | 15,315 | 13,501 | 13,141 | ||||||||
Net income | 41,680 | 28,890 | 33,991 | 2,663 | 85,875 | (7,357) | 4,937 | 1,824 | 107,224 | 85,279 | 68,311 |
Net income attributable to noncontrolling interests | (1,139) | (196) | (1,992) | (1,584) | (1,446) | (1,730) | (1,857) | (1,715) | (4,911) | (6,748) | (4,096) |
Net income attributable to Darling | $ 40,541 | $ 28,694 | $ 31,999 | $ 1,079 | $ 84,429 | $ (9,087) | $ 3,080 | $ 109 | $ 102,313 | $ 78,531 | $ 64,215 |
Net income per share: | |||||||||||
Basic (in dollars per share) | $ 0.25 | $ 0.17 | $ 0.19 | $ 0.01 | $ 0.51 | $ (0.06) | $ 0.02 | $ 0 | $ 0.62 | $ 0.48 | $ 0.39 |
Diluted (in dollars per share) | $ 0.25 | $ 0.17 | $ 0.19 | $ 0.01 | $ 0.51 | $ (0.06) | $ 0.02 | $ 0 | $ 0.62 | $ 0.48 | $ 0.39 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Net income | $ 107,224 | $ 85,279 | $ 68,311 |
Other comprehensive income (Loss), net of tax: | |||
Foreign currency translation adjustments | (5,593) | (162,436) | (119,684) |
Pension adjustments | (1,016) | 4,202 | (20,381) |
Total other comprehensive loss, net of tax | (5,984) | (156,467) | (141,437) |
Total comprehensive income/(loss) | 101,240 | (71,188) | (73,126) |
Comprehensive income attributable to noncontrolling interests | 3,015 | 9,139 | 10,296 |
Comprehensive income/(loss) attributable to Darling | 98,225 | (80,327) | (83,422) |
Natural Gas Swap [Member] | |||
Other comprehensive income (Loss), net of tax: | |||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 0 | 0 | (113) |
Corn Option [Member] | |||
Other comprehensive income (Loss), net of tax: | |||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | $ 625 | $ 1,767 | $ (1,259) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Total | Parent [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Natural Gas Swap [Member] | Natural Gas Swap [Member]Parent [Member] | Natural Gas Swap [Member]AOCI Attributable to Parent [Member] | Corn Option [Member] | Corn Option [Member]Parent [Member] | Corn Option [Member]AOCI Attributable to Parent [Member] |
Balance (in shares) at Dec. 28, 2013 | 164,267,425 | |||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 28, 2013 | $ 2,020,952 | $ 2,020,952 | $ 1,653 | $ 1,454,250 | $ (13,271) | $ (29,423) | $ 607,743 | $ 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 90,919 | 90,919 | ||||||||||||
Net income | 68,311 | 64,215 | 64,215 | 4,096 | ||||||||||
Distribution of noncontrolling interest earnings | (4,272) | (4,272) | ||||||||||||
Additions (Deductions) to noncontrolling interests | 1,201 | 1,201 | ||||||||||||
Pension adjustments | (20,381) | (20,381) | (20,381) | |||||||||||
Total natural gas derivatives | $ (113) | $ (113) | $ (113) | $ (1,259) | $ (1,259) | $ (1,259) | ||||||||
Total other comprehensive income, net of tax | (141,437) | (125,884) | (125,884) | |||||||||||
Foreign currency translation adjustments | (119,684) | 6,200 | ||||||||||||
Issuance of non-vested stock (in shares) | 209,827 | |||||||||||||
Issuance of non-vested stock | 4,371 | 4,371 | $ 2 | 4,369 | ||||||||||
Stock-based compensation | 9,993 | 9,993 | 9,993 | |||||||||||
Tax benefits associated with stock-based compensation | 2,420 | 2,420 | 2,420 | |||||||||||
Treasury stock (in shares) | (507,552) | |||||||||||||
Treasury stock | (9,936) | (9,936) | (9,936) | |||||||||||
Issuance of common stock (in shares) | 742,963 | |||||||||||||
Issuance of common stock | 8,612 | 8,612 | $ 7 | 8,605 | ||||||||||
Balance (in shares) at Jan. 03, 2015 | 164,712,663 | |||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jan. 03, 2015 | 2,051,134 | 1,952,990 | $ 1,662 | 1,479,637 | (23,207) | (177,060) | 671,958 | 98,144 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 85,279 | 78,531 | 78,531 | 6,748 | ||||||||||
Distribution of noncontrolling interest earnings | (3,295) | (3,295) | ||||||||||||
Additions (Deductions) to noncontrolling interests | (87) | (87) | ||||||||||||
Pension adjustments | 4,202 | 4,202 | 4,202 | |||||||||||
Total natural gas derivatives | 1,767 | 1,767 | 1,767 | |||||||||||
Total other comprehensive income, net of tax | (156,467) | (164,827) | (164,827) | |||||||||||
Foreign currency translation adjustments | (162,436) | (162,436) | 2,391 | |||||||||||
Issuance of non-vested stock (in shares) | 261,615 | |||||||||||||
Issuance of non-vested stock | 3,791 | 3,791 | $ 3 | 3,788 | ||||||||||
Stock-based compensation | 2,083 | 2,083 | 2,083 | |||||||||||
Tax benefits associated with stock-based compensation | (389) | (389) | (389) | |||||||||||
Treasury stock (in shares) | (834,477) | |||||||||||||
Treasury stock | (11,109) | (11,109) | (11,109) | |||||||||||
Issuance of common stock (in shares) | 595,575 | |||||||||||||
Issuance of common stock | 3,670 | 3,670 | $ 6 | 3,664 | ||||||||||
Balance (in shares) at Jan. 02, 2016 | 164,735,376 | |||||||||||||
Balance at Jan. 02, 2016 | 1,870,709 | |||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jan. 02, 2016 | 1,974,610 | 1,870,709 | $ 1,671 | 1,488,783 | (34,316) | (335,918) | 750,489 | 103,901 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 107,224 | 102,313 | 102,313 | 4,911 | ||||||||||
Distribution of noncontrolling interest earnings | (3,688) | (3,688) | ||||||||||||
Pension adjustments | (1,016) | (1,016) | (1,016) | |||||||||||
Total natural gas derivatives | $ 625 | $ 625 | $ 625 | |||||||||||
Total other comprehensive income, net of tax | (5,984) | (3,697) | (3,697) | |||||||||||
Foreign currency translation adjustments | (5,593) | (5,593) | (1,896) | |||||||||||
Issuance of non-vested stock (in shares) | 341,185 | |||||||||||||
Issuance of non-vested stock | 4,131 | 4,131 | $ 3 | 4,128 | ||||||||||
Stock-based compensation | 4,081 | 4,081 | 4,081 | |||||||||||
Tax benefits associated with stock-based compensation | (364) | (364) | (364) | |||||||||||
Treasury stock (in shares) | (693,250) | |||||||||||||
Treasury stock | (6,593) | (6,593) | (6,593) | |||||||||||
Issuance of common stock (in shares) | 229,247 | |||||||||||||
Issuance of common stock | 2,805 | 2,805 | $ 2 | 2,803 | ||||||||||
Balance (in shares) at Dec. 31, 2016 | 164,612,558 | |||||||||||||
Balance at Dec. 31, 2016 | 1,972,994 | |||||||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Dec. 31, 2016 | $ 2,076,222 | $ 1,972,994 | $ 1,676 | $ 1,499,431 | $ (40,909) | $ (340,006) | $ 852,802 | $ 103,228 |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders’ Equity (Parenthetical) - $ / shares | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | ||
Cash flows from operating activities: | ||||
Net income | $ 107,224 | $ 85,279 | $ 68,311 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 289,908 | 269,904 | 269,517 | |
Deferred income taxes | (11,532) | 7,807 | (21,216) | |
Loss/(gain) on sale of assets | 1,744 | 1,311 | (2,437) | |
Gain on insurance proceeds from insurance settlement | (356) | (561) | (1,550) | |
Increase/(decrease) in long-term pension liability | (430) | (4,811) | 9,593 | |
Stock-based compensation expense | 10,330 | 8,995 | 20,807 | |
Write-off deferred loan costs | 528 | 10,633 | 4,330 | |
Deferred loan cost amortization | 11,171 | 10,155 | 9,949 | |
Equity in net income of unconsolidated subsidiary | (70,379) | (73,416) | (65,609) | |
Distributions of earnings from unconsolidated subsidiaries | 26,317 | 26,589 | 0 | |
Changes in operating assets and liabilities, net of effects from acquisitions: | ||||
Accounts receivable | (22,796) | 8,214 | 982 | |
Income taxes refundable/payable | 2,839 | 12,377 | (22,451) | |
Inventories and prepaid expenses | 15,343 | 34,536 | (11,194) | |
Accounts payable and accrued expenses | 39,286 | (11,449) | (31,223) | |
Other | (8,161) | 35,396 | 47,363 | |
Net cash provided by operating activities | 391,036 | 420,959 | 275,172 | |
Cash flows from investing activities: | ||||
Capital expenditures | [1] | (243,523) | (229,848) | (228,918) |
Acquisitions, net of cash acquired | (8,511) | (377) | (2,094,400) | |
Investment in unconsolidated subsidiary | 0 | 0 | 0 | |
Gross proceeds from sale of property, plant and equipment and other assets | 7,329 | 3,840 | 9,262 | |
Proceeds from insurance settlement | 1,537 | 561 | 1,550 | |
Payments related to routes and other intangibles | (23) | (3,845) | (11,288) | |
Net cash used in investing activities | (243,191) | (229,669) | (2,323,794) | |
Cash flows from financing activities: | ||||
Proceeds from long-term debt | 36,327 | 590,745 | 1,842,184 | |
Payments on long-term debt | (204,428) | (609,255) | (333,762) | |
Borrowings from revolving credit facility | 99,276 | 78,244 | 170,143 | |
Payments on revolving credit facility | (104,028) | (166,755) | (351,589) | |
Net cash overdraft financing | 1,071 | (1,261) | 4,077 | |
Deferred loan costs | (3,879) | (17,310) | (45,223) | |
Issuance of common stock | 188 | 171 | 416 | |
Repurchase of treasury stock | (5,000) | (5,912) | 0 | |
Minimum withholding taxes paid on stock awards | (1,843) | (4,874) | (10,026) | |
Excess tax benefit from stock-based compensation | 0 | 0 | 2,420 | |
Addition/(deductions) of noncontrolling interest | 0 | (87) | 1,201 | |
Distributions to noncontrolling interests | (1,552) | (3,295) | (4,272) | |
Net cash provided/(used) in financing activities | (183,868) | (139,589) | 1,275,569 | |
Effect of exchange rate changes on cash flows | (6,297) | (3,601) | 10,980 | |
Net increase/(decrease) in cash and cash equivalents | (42,320) | 48,100 | (762,073) | |
Cash and cash equivalents at beginning of year | 156,884 | 108,784 | 870,857 | |
Cash and cash equivalents at end of year | 114,564 | 156,884 | 108,784 | |
Supplemental disclosure of cash flow information: | ||||
Accrued Capital Expenditures | (937) | 5,325 | 1,340 | |
Cash paid during the year for: | ||||
Interest, net of capitalized interest | 82,094 | 78,979 | 104,834 | |
Income taxes, net of refunds | 23,220 | (3,035) | 28,315 | |
Non-cash financing activities | ||||
Debt issued for service contract assets | 10 | 2,591 | 0 | |
Contribution of Property | $ 2,674 | $ 0 | $ 0 | |
[1] | Excludes the immaterial capital assets acquired in fiscal 2016 and fiscal 2015 and the VION Acquisition and Custom Blenders acquisition in fiscal 2014 of approximately $984.2 million |
General
General | 12 Months Ended |
Dec. 31, 2016 | |
General [Abstract] | |
GENERAL | GENERAL (a) NATURE OF OPERATIONS Darling Ingredients Inc., a Delaware corporation (“Darling”, and together with its subsidiaries, the “Company”), is a global developer and producer of sustainable natural ingredients from edible and inedible bio-nutrients, creating a wide range of ingredients and customized specialty solutions for customers in the pharmaceutical, food, pet food, feed, industrial, fuel, bioenergy and fertilizer industries. As further discussed in Note 2, on January 7, 2014, the Company acquired the VION Ingredients business division (“VION Ingredients”) of VION Holding, N.V., a Dutch limited liability company (“VION”), by purchasing all of the shares of VION Ingredients International (Holding) B.V., and VION Ingredients Germany GmbH, and 60% of Best Hides GmbH (collectively, the “VION Companies”), pursuant to a Sale and Purchase Agreement dated October 5, 2013, as amended, between Darling and VION (the “VION Acquisition”). The VION Ingredients business is now conducted under the name Darling Ingredients International. The Company’s business operations is conducted through a global network of over 200 locations across five continents within three business segments, Feed Ingredients, Food Ingredients and Fuel Ingredients. Comparative segment revenues and related financial information are presented in Note 20 to the consolidated financial statements. (b) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (1) Basis of Presentation The consolidated financial statements include the accounts of Darling and its consolidated subsidiaries. Noncontrolling interests represents the outstanding ownership interest in the Company's consolidated subsidiaries that are not owned by the Company. In the accompanying Consolidated Statements of Operations, the noncontrolling interest in net income/(loss) of the consolidated subsidiaries is shown as an allocation of the Company's net income and is presented separately as “Net income/(loss) attributable to noncontrolling interests”. In the Company's Consolidated Balance Sheets, noncontrolling interests represents the ownership interests in the Company consolidated subsidiaries' net assets held by parties other than the Company. These ownership interests are presented separately as “Noncontrolling interests” within “Stockholders' Equity.” All significant intercompany balances and transactions have been eliminated in consolidation. (2) Fiscal Year The Company has a 52 / 53 week fiscal year ending on the Saturday nearest December 31. Fiscal years for the consolidated financial statements included herein are for the 52 weeks ended December 31, 2016 , the 52 weeks ended January 2, 2016 , and the 53 weeks ended January 3, 2015 . (3) Cash and Cash Equivalents The Company considers all short-term highly liquid instruments, with an original maturity of three months or less, to be cash equivalents. Cash balances are recorded net of book overdrafts when a bank right-of-offset exists. All other book overdrafts are recorded in accounts payable and the change in the related balance is reflected in operating activities on the Consolidated Statement of Cash Flows. In addition, the Company has bank overdrafts, which are considered a form of short-term financing with changes in the related balance reflected in financing activities in the Consolidated Statement of Cash Flows. (4) Accounts Receivable and Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from customers’ non-payment of trade accounts receivable owed to the Company. These trade receivables arise in the ordinary course of business from sales of raw material, finished product or services to the Company’s customers. The estimate of allowance for doubtful accounts is based upon the Company’s bad debt experience, prevailing market conditions, and aging of trade accounts receivable, among other factors. If the financial condition of the Company’s customers deteriorates, resulting in the customers’ inability to pay the Company’s receivables as they come due, additional allowances for doubtful accounts may be required. (5) Inventories Inventories are stated at the lower of cost or market. Cost is primarily determined using the first-in, first-out (FIFO) method for the Feed Ingredients and Fuel Ingredients segments. In the Food Ingredients segment cost is primarily determined based on the weighted average cost. (6) Long Lived Assets Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation is computed by the straight-line method over the estimated useful lives of assets: 1) Buildings and improvements, 15 to 30 years; 2) Machinery and equipment, 3 to 10 years; 3) Vehicles, 3 to 8 years; and 4) Aircraft, 7 to 10 years. Maintenance and repairs are charged to expense as incurred and expenditures for major renewals and improvements are capitalized. Intangible Assets Intangible assets with indefinite lives, and therefore, not subject to amortization, consist of trade names acquired in the acquisition of Griffin Industries Inc. on December 17, 2010 (which was subsequently converted to a limited liability company) and its subsidiaries (“Griffin”) and trade names acquired in the VION Acquisition. Intangible assets subject to amortization consist of: 1) collection routes which are made up of groups of suppliers of raw materials in similar geographic areas from which the Company derives collection fees and a dependable source of raw materials for processing into finished products; 2) permits that represent licensing of operating plants that have been acquired, giving those plants the ability to operate; 3) non-compete agreements that represent contractual arrangements with former competitors whose businesses were acquired; 4) trade names; and 5) royalty, consulting , land use rights and leasehold agreements. Amortization expense is calculated using the straight-line method over the estimated useful lives of the assets ranging from: 5 to 21 years for collection routes; 10 to 20 years for permits; 3 to 7 years for non-compete covenants; and 4 to 15 years for trade names. Royalty, consulting, land use rights and leasehold agreements are amortized over the term of the agreement. (7) Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed of The Company reviews the carrying value of long-lived assets for impairment when events or changes in circumstances indicate that the carrying amount of an asset, or related asset group, may not be recoverable from estimated future undiscounted cash flows. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount for which the carrying amount of the asset exceeds the fair value of the asset. In fiscal 2016 , 2015 and 2014 no such events occurred requiring that the Company perform testing of its long-lived assets for impairment. (8) Goodwill The Company performed the annual goodwill and indefinite-lived intangible assets impairment assessments at October 29, 2016 and concluded that the Company's goodwill for all reporting units and all recorded indefinite-lived intangible assets were not impaired as of that date. Goodwill and indefinite lived assets are tested annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company follows a two-step process for testing impairment. First, the fair value of each reporting unit is compared to its carrying value to determine whether an indication of impairment exists. If impairment is indicated, then the fair value of the reporting unit’s goodwill is determined by allocating the unit’s fair value of its assets and liabilities (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. The amount of impairment for goodwill is measured as the excess of its carrying value over its implied fair value. In fiscal 2016 , 2015 and 2014 , the fair values of the Company’s reporting units containing goodwill exceeded the related carrying values. Goodwill was approximately $ 1,225.9 million and $ 1,233.1 million at December 31, 2016 and January 2, 2016 , respectively. See Note 6 for further information on the Company’s goodwill. (9) Environmental Expenditures Environmental expenditures incurred to mitigate or prevent environmental impacts that have yet to occur and that otherwise may result from future operations are capitalized. Expenditures that relate to an existing condition caused by past operations and that do not contribute to current or future revenues are expensed or charged against established environmental reserves. Reserves are established when environmental impacts have been identified which are probable to require mitigation and/or remediation and the costs are reasonably estimable. (10) Income Taxes The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company periodically assesses whether it is more likely than not that it will generate sufficient taxable income to realize its deferred income tax assets. In making this determination, the Company considers all available positive and negative evidence and makes certain assumptions. The Company considers, among other things, its deferred tax liabilities, the overall business environment, its historical earnings and losses, current industry trends and its outlook for taxable income in future years. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained upon examination by the relevant taxing authority. Adjustments are made to the reserves for uncertain tax positions when facts and circumstances change or additional information is available. Judgment is required to assess the impact of ongoing audits conducted by tax authorities in determining the Company’s consolidated income tax provision. The Company recognizes accrued interest and penalties on tax related matters as a component of income tax expense. (11) Earnings per Share Basic income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares including non-vested and restricted shares with participation rights outstanding during the period. Diluted income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares outstanding during the period increased by dilutive common equivalent shares determined using the treasury stock method. Net Income per Common Share (in thousands, except per share data) December 31, January 2, January 3, 2016 2016 2015 Income Shares Per-Share Income Shares Per-Share Income Shares Per-Share Basic: Net income attributable to Darling $ 102,313 164,600 $ 0.62 $ 78,531 165,031 $ 0.48 $ 64,215 164,627 $ 0.39 Diluted: Effect of dilutive securities Add: Option shares in the money and dilutive effect of nonvested stock — 1,329 — — 168 — — 806 — Less: Pro-forma treasury shares — (717) — — (80) — — (374) — Diluted: Net income attributable to Darling $ 102,313 165,212 $ 0.62 $ 78,531 165,119 $ 0.48 $ 64,215 165,059 $ 0.39 For fiscal 2016 , 2015 and 2014 , respectively, 1,148,707 , 790,092 and 319,240 outstanding stock options were excluded from diluted income per common share as the effect was antidilutive. For fiscal 2016 , 2015 and 2014 , respectively, 758,557 , 587,961 and 751,444 non-vested stock were excluded from diluted income per common share as the effect was antidilutive. (12) Stock Based Compensation The Company recognizes compensation expense ratably over the vesting period in an amount equal to the fair value of the share-based payments (e.g., stock options and non-vested and restricted stock) granted to employees and non-employee directors or by incurring liabilities to an employee or other supplier (a) in amounts based, at least in part, on the price of the entity’s shares or other equity instruments, or (b) that require or may require settlement by issuing the entity’s equity shares or other equity instruments. Total stock-based compensation recognized in the statement of operations for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 was approximately $ 10.3 million , $ 9.0 million and $ 20.9 million , respectively, which is included in selling, general and administrative expenses, and the related income tax benefit recognized was approximately $ 3.4 million , $ 3.3 million and $ 5.9 million , respectively. See Note 13 for further information on the Company’s stock-based compensation plans. The benefits of tax deductions in excess of recognized compensation expense are reported as a financing cash flow when recognized as current income tax benefit or as an operating cash flow when recognized as current income tax expense. For the year ended December 31, 2016 and January 2, 2016 , the Company recognized $ 0.4 million , respectively of such tax expense as a decrease in operating cash flow. For the year ended January 3, 2015, the Company recognized $ 2.4 million income tax benefit as an increase in financing cash flows. (13) Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. If it is at least reasonably possible that the estimate of the effect on the financial statements of a condition, situation, or set of circumstances that exist at the date of the financial statements will change in the near term due to one or more future confirming events, and the effect of the change would be material to the financial statements, the Company will disclose the nature of the uncertainty and include an indication that it is at least reasonably possible that a change in the estimate will occur in the near term. If the estimate involves certain loss contingencies, the disclosure will also include an estimate of the probable loss or range of loss or state that an estimate cannot be made. (14) Financial Instruments The carrying amount of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximates fair value due to the short maturity of these instruments. The Company's 5.375% Senior Notes due 2022, 4.75% Senior Notes due 2022, term loans and revolver borrowings outstanding at December 31, 2016 , as described in Note 10 have a fair value based on market valuation from a third-party banks. The carrying amount for the Company’s other debt is not deemed to be significantly different than the carrying value. See Note 17 for financial instruments' fair values. (15) Derivative Instruments The Company makes limited use of derivative instruments to manage cash flow risks related to interest expense, natural gas usage, diesel fuel usage, inventory, forecasted sales and foreign currency exchange rates. The Company does not use derivative instruments for trading purposes. Interest rate swaps are entered into with the intent of managing overall borrowing costs by reducing the potential impact of increases in interest rates on floating-rate long-term debt. Natural gas swaps and options are entered into with the intent of managing the overall cost of natural gas usage by reducing the potential impact of seasonal weather demands on natural gas that increases natural gas prices. Heating oil swaps and options are entered into with the intent of managing the overall cost of diesel fuel usage by reducing the potential impact of seasonal weather demands on diesel fuel that increases diesel fuel prices. Corn options and future contracts are entered into with the intent of managing forecasted sales of BBP by reducing the impact of changing prices. Foreign currency forward contracts are entered into to mitigate the foreign exchange rate risk for transactions designated in a currency other than the local functional currency. Entities are required to report all derivative instruments in the statement of financial position at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, on the reason for holding the instrument. If certain conditions are met, entities may elect to designate a derivative instrument as a hedge of exposures to changes in fair value, cash flows or foreign currencies. If the hedged exposure is a cash flow exposure, the effective portion of the gain or loss on the derivative instrument is reported initially as a component of other comprehensive income (outside of earnings) and is subsequently reclassified into earnings when the forecasted transaction affects earnings. Any amounts excluded from the assessment of hedge effectiveness as well as the ineffective portion of the gain or loss is reported in earnings immediately. If the derivative instrument is not designated as a hedge, the gain or loss is recognized in earnings in the period of change. Hedge accounting treatment ceases if or when the hedge transaction is no longer probable of occurring or the hedge relationship correlation no longer qualifies for hedge accounting. At December 31, 2016 , the Company had corn options outstanding that qualified and were designated for hedge accounting as well as corn options and foreign currency forward contracts that did not qualify and were not designated for hedge accounting. (16) Revenue Recognition The Company recognizes revenue on sales when products are shipped and the customer takes ownership and assumes risk of loss. Certain customers may be required to prepay prior to shipment in order to maintain payment protection against certain foreign and domestic sales. These amounts are recorded as unearned revenue and revenue is recognized when the products have shipped and the customer takes ownership and assumes risk of loss. The Company recognizes revenue related to grease trap servicing and industrial residual removal in the fiscal month the trap service or industrial residual removal occurs. (17) Related Party Transactions The Company announced in January 2011 that a wholly-owned subsidiary of Darling entered into a limited liability company agreement with a wholly-owned subsidiary of Valero Energy Corporation (“Valero”) to form Diamond Green Diesel Holdings LLC (the “DGD Joint Venture”). The Company has related party sale transactions and loan transactions with the DGD Joint Venture. See Note 22 for further information on the Company's related party transactions. (18) Foreign Currency Translation and Remeasurement Foreign currency translation is included as a component of accumulated other comprehensive income and reflects the adjustments resulting from translating the foreign currency denominated financial statements of foreign subsidiaries into U.S. dollars. The functional currency of the Company's foreign subsidiaries is the currency of the primary economic environment in which the entity operates, which is generally the local currency of the country. Accordingly, assets and liabilities of the foreign subsidiaries are translated into U.S. dollars at fiscal year end exchange rates, including intercompany foreign currency transactions that are of long-term investment nature. Income and expense items are translated at average exchange rates occurring during the period. Changes in exchange rates that affect cash flows and the related receivables or payables are recognized as transaction gains and losses in determining net income. The Company incurred net foreign currency translation losses of approximately $ 3.7 million , $ 164.8 million and $ 125.9 million in fiscal 2016, fiscal 2015 and fiscal 2014, respectively. (19) Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. (20) Subsequent Events The Company evaluates subsequent events from the end of the most recent fiscal year through the date the consolidated financial statements are issued. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS On January 7, 2014, the Company acquired the VION Ingredients business division from VION purchasing shares of the VION Companies as described in Note1, pursuant to a Sale and Purchase Agreement dated October 5, 2013, as amended, between Darling and VION. The VION Ingredients business is now conducted under the name Darling Ingredients International. Darling Ingredients International is a worldwide leader in the development and production of specialty ingredients from animal by-products for applications in pharmaceuticals, food, pet food, feed, fuel, bioenergy and fertilizer. On January 7, 2014, Darling Ingredients International operated a global network of production facilities across five continents covering all aspects of animal by-product processing through six brands: Rendac (bioenergy), Sonac (bone products, proteins, fats, edible fats and plasma products), Ecoson (bioenergy), Rousselot (gelatin and collagen hydrolysates), CTH (natural casings) and Best Hides (hides and skins). The purchase of the VION Companies allows the Company to have a global reach. The purchase price for the transaction was approximately€ 1.6 billion in cash (approximately $ 2.2 billion at the exchange rate of € 1.00 :USD$ 1.3605 ). The purchase price was financed through (i) borrowings under the Company’s senior secured revolving credit facility and term loan facilities; (ii) proceeds from the Company’s $ 874.0 million public common stock offering in the fourth quarter of fiscal 2013; and (iii) proceeds from the private offering of $ 500.0 million aggregate principal amount of the Company’s 5.375% Senior Notes due 2022, that closed on January 2, 2014. The following table summarizes the fair value of the assets acquired and liabilities assumed in the VION Acquisition as of January 7, 2014 (in thousands): Accounts receivable $ 337,278 Inventory 375,306 Prepaid expense 23,135 Other current assets 3,525 Deferred tax assets 48,639 Property plant and equipment 981,009 Identifiable intangibles 464,193 Goodwill 702,672 Investment in unconsolidated subsidiaries 27,069 Other long term assets 1,101 Accounts payable (210,477 ) Current portion of long-term debt (26,347 ) Accrued expenses (149,345 ) Deferred tax liability (350,003 ) Long Term debt obligations (4,109 ) Other noncurrent liabilities (57,721 ) Noncontrolling interests (90,919 ) Purchase price, net of cash acquired of $91.2 million $ 2,075,006 During the fourth quarter of fiscal 2014, the Company completed the purchase accounting for the VION Acquisition. Subsequent to the preliminary purchase price allocation in the first quarter of fiscal 2014, the Company made adjustments to the provisional amounts to increase working capital of approximately $ 84.0 million , decrease property, plant and equipment of approximately $ 27.3 million , decrease identifiable intangibles of $ 17.6 million , decrease goodwill of approximately $ 72.1 million and increase other of approximately $ 27.0 million . The impact of these adjustments during the measurement period did not have a material impact to earnings for fiscal 2014 or any quarterly period during fiscal 2014. Goodwill of approximately $ 223.2 million was assigned to the Feed Ingredients segment, approximately $ 375.6 million was assigned to the Food Ingredients segment and approximately $ 103.8 million was assigned to the Fuel Ingredients segment, respectively. Of the VION Acquisition goodwill, approximately 33% is expected to be deductible for tax purposes. Identifiable intangibles include trademarks and trade names with indefinite lives of approximately $ 32.0 million and definite lived intangible assets including routes of approximately $ 190.2 million with a weighted average useful life of 10 years, $ 225.6 million in permits with a weighted average useful life of 15 years and patents and other intangibles of approximately $ 16.5 million with a weighted average useful life of 25 years. The VION Acquisition is a taxable stock sale and as a result there were deferred taxes that were created. The Company notes that the pro forma results of operations for the below acquisition has not been presented because the effect is not deemed material to revenues and net income of the Company for any fiscal period presented. On October 1, 2014, the Company acquired substantially all of the assets of Custom Blenders Arkansas, LLC, an Indiana limited liability company, Custom Blenders Georgia, LLC, a Georgia limited liability company, Custom Blenders Indiana, Inc., an Indiana corporation, and Custom Blenders Texas, LLC, an Indiana limited liability company (collectively “Custom Blenders”), one of the leading bakery residuals recyclers in the United States. The acquisition includes Custom Blenders' operations in Indiana, Georgia, Texas, and Arkansas. The acquisition provided significant synergies to the Company's suppliers and customers in the Feed Ingredients segment. The Company paid approximately $ 18.8 million in cash less a contingent receivable of approximately $ 0.8 million recorded against goodwill and an adjustment to inventory of approximately $ 0.5 million recorded in fiscal 2015. The purchase price for assets consisting of property, plant and equipment of approximately $ 3.2 million , intangible assets of approximately $ 8.6 million , goodwill of approximately $ 5.2 million and inventory of approximately $ 1.0 million . The identifiable intangibles have a weighted average life of 14 years. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES A summary of inventories follows (in thousands): December 31, 2016 January 2, 2016 Finished product $ 156,542 $ 164,428 Work in process 87,284 84,474 Raw material 39,859 48,401 Supplies and other 47,130 47,280 $ 330,815 $ 344,583 The Company's work in process inventory represents inventory in the Food Ingredients segment that is in various stages of processing. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT A summary of property, plant and equipment follows (in thousands): December 31, 2016 January 2, 2016 Land $ 152,949 $ 156,422 Buildings and improvements 464,957 448,620 Machinery and equipment 1,385,694 1,211,465 Vehicles 204,995 189,561 Aircraft 13,504 13,504 Construction in process 135,662 141,470 2,357,761 2,161,042 Accumulated depreciation (842,186 ) (652,875 ) $ 1,515,575 $ 1,508,167 |
Intangbile assets
Intangbile assets | 12 Months Ended |
Dec. 31, 2016 | |
INTANGIBLE ASSETS [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS The gross carrying amount of intangible assets not subject to amortization and intangible assets subject to amortization is as follows (in thousands): December 31, 2016 January 2, 2016 Indefinite Lived Intangible Assets Trade names $ 51,687 $ 52,466 51,687 52,466 Finite Lived Intangible Assets: Routes 374,989 390,888 Permits 493,311 494,754 Non-compete agreements 3,638 6,996 Trade names 76,033 75,825 Royalty, consulting, land use rights and leasehold 13,456 14,139 961,427 982,602 Accumulated Amortization: Routes (105,934 ) (99,819 ) Permits (170,165 ) (134,752 ) Non-compete agreements (1,788 ) (4,628 ) Trade names (21,042 ) (11,959 ) Royalty, consulting, land use rights and leasehold (2,258 ) (1,561 ) (301,187 ) (252,719 ) Total Intangible assets, less accumulated amortization $ 711,927 $ 782,349 Gross intangible routes, permits, trade names, non-compete agreements and other intangibles partially decreased in fiscal 2016 and fiscal 2015 by approximately $ 27.7 million and $ 7.7 million , respectively as a result of asset retirements. Amortization expense for the three years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , was approximately $ 77.7 million , $ 83.3 million and $ 83.6 million , respectively. Amortization expense for the next five fiscal years is estimated to be $ 75.4 million , $ 73.0 million , $ 71.8 million , $ 71.3 million and $ 70.8 million . |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2016 | |
GOODWILL [Abstract] | |
GOODWILL | GOODWILL Changes in the carrying amount of goodwill (in thousands): Feed Ingredients Food Ingredients Fuel Ingredients Total Balance at January 3, 2015 Goodwill $ 863,508 $ 346,153 $ 126,672 $ 1,336,333 Accumulated impairment losses (15,914 ) — — (15,914 ) 847,594 346,153 126,672 1,320,419 Goodwill acquired during year (259 ) — 521 262 Foreign currency translation (50,452 ) (22,768 ) (14,359 ) (87,579 ) Balance at January 2, 2016 Goodwill 812,797 323,385 112,834 1,249,016 Accumulated impairment losses (15,914 ) — — (15,914 ) 796,883 323,385 112,834 1,233,102 Goodwill acquired during year 827 — 2 829 Foreign currency translation (3 ) (6,377 ) (1,658 ) (8,038 ) Balance at December 31, 2016 Goodwill 813,621 317,008 111,178 1,241,807 Accumulated impairment losses (15,914 ) — — (15,914 ) $ 797,707 $ 317,008 $ 111,178 $ 1,225,893 Certain of the Company's rendering facilities are highly dependent on one or few suppliers. It is reasonably possible that certain of those suppliers could cease their operations or choose a competitor’s services, which could have a significant impact on these facilities. The process of evaluating goodwill for impairment involves the determination of the fair value of the Company's reporting units. In fiscal 2016 , fiscal 2015 and fiscal 2014 , the fair values of the Company’s reporting units containing goodwill exceeded the related carrying value pursuant to a quantitative assessment completed as of October 29, 2016, October 31, 2015 and October 24, 2014, respectively. |
Investment in Unconsolidated Su
Investment in Unconsolidated Subsidiary | 12 Months Ended |
Dec. 31, 2016 | |
Investment in Affiliate [Abstract] | |
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY | INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES The Company announced on January 21, 2011 that a wholly-owned subsidiary of Darling entered into a limited liability company agreement with Valero to form the DGD Joint Venture. The DGD Joint Venture is owned 50% / 50% with Valero and was formed to design, engineer, construct and operate a renewable diesel plant (the “DGD Facility”), which is capable of processing approximately 12,000 barrels per day of input feedstock to produce renewable diesel fuel and certain other co-products, and is located adjacent to Valero's refinery in Norco, Louisiana. The DGD Joint Venture reached mechanical completion and began the production of renewable diesel in late June 2013. On May 31, 2011, the DGD Joint Venture and Diamond Green Diesel LLC, a wholly-owned subsidiary of the DGD Joint Venture (“Opco”), entered into (i) a facility agreement (the “Facility Agreement”) with Diamond Alternative Energy, LLC, a wholly-owned subsidiary of Valero (the “Lender”), and (ii) a loan agreement (the “Loan Agreement”) with the Lender, which will provide the DGD Joint Venture with a 14 year multiple advance term loan facility of approximately $ 221.3 million (the "JV Loan") to support the design, engineering and construction of the DGD Facility, which is now in production. The Facility Agreement and the Loan Agreement prohibit the Lender from assigning all or any portion of the Facility Agreement or the Loan Agreement to unaffiliated third parties. Opco has also pledged substantially all of its assets to the Lender, and the DGD Joint Venture has pledged all of Opco's equity interests to the Lender, until the JV Loan has been paid in full and the JV Loan has terminated in accordance with its terms. In addition to the DGD Joint Venture, the Company has investments in other unconsolidated subsidiaries that were acquired in the VION Acquisition that are insignificant to the Company. Selected financial information for the Company's DGD Joint Venture is as follows: (in thousands) December 31, 2016 December 31, 2015 Assets: Total current assets $ 268,734 $ 261,444 Property, plant and equipment, net 354,871 356,230 Other assets 12,164 3,034 Total assets $ 635,769 $ 620,708 Liabilities and members' equity: Total current portion of long term debt $ 17,023 $ 62,023 Total other current liabilities 23,200 19,935 Total long term debt 53,753 86,819 Total other long term liabilities 418 380 Total members' equity 541,375 451,551 Total liabilities and member's equity $ 635,769 $ 620,708 Year Ended December 31, (in thousands) 2016 2015 2014 Revenues: Operating revenues $ 527,670 $ 475,934 $ 487,834 Expenses: Total costs and expenses less depreciation, amortization and accretion expense 353,222 298,946 324,557 Depreciation, amortization and accretion expense 27,821 19,714 18,186 Operating income 146,627 157,274 145,091 Other income 551 120 82 Interest and debt expense, net (7,354 ) (13,604 ) (17,640 ) Net income $ 139,824 $ 143,790 $ 127,533 As of December 31, 2016 , under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $ 270.7 million on the consolidated balance sheet and has recorded approximately $ 69.9 million , $ 71.9 million and $ 63.8 million in equity net income in the unconsolidated subsidiary for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , respectively. Biodiesel blenders registered with the Internal Revenue Service were eligible for a tax incentive in the amount of $ 1.00 per gallon of renewable diesel blended with petroleum diesel to produce a mixture containing 0.1% diesel fuel. As a blender, the DGD Joint Venture has recorded approximately, $ 160.6 million , $ 156.6 million and $ 126.0 million in blender credits, for its fiscal years ended December 31, 2016, December 31, 2015 and December 31, 2014, respectively. These blenders credits were recorded by the DGD Joint Venture as a reduction of total costs and expenses in the above table. In fiscal 2015 and fiscal 2014, the DGD Joint Venture booked all blenders tax credits in the fourth quarter. In addition, for each of the years ended December 31, 2016 and January 2, 2016 , the Company received $ 25.0 million in dividend distributions from the DGD Joint Venture and subsequent to December 31, 2016 , the Company received a $ 25.0 million dividend distribution from the DGD Joint Venture. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2016 | |
ACCRUED EXPENSES [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses consist of the following (in thousands): December 31, 2016 January 2, 2016 Compensation and benefits $ 83,355 $ 79,087 Utilities and sewage 16,446 16,671 Accrued income, ad valorem, and franchise taxes 19,179 13,711 Reserve for self insurance, litigation, environmental and tax matters (Note 19) 12,479 13,643 Medical claims liability 5,070 3,807 Accrued operating expenses 55,128 50,953 Accrued interest payable 15,961 16,060 Other accrued expense 35,178 45,893 $ 242,796 $ 239,825 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases 14 processing plants and storage locations, land surrounding certain processing plants, three office locations under operating leases and a portion of its transportation equipment under operating and capital leases. Leases are noncancellable and expire at various times through the year 2066 . Minimum rental commitments under noncancellable leases as of December 31, 2016 , are as follows (in thousands): Period Ending Fiscal Operating Leases Capital Leases 2017 $ 39,481 $ 1,527 2018 35,653 891 2019 31,035 285 2020 19,258 144 2021 7,421 — Thereafter 14,019 — $ 146,867 $ 2,847 Less amounts representing interest (145 ) Capital lease obligations included in current and long-term debt $ 2,702 Rent expense was approximately $ 43.6 million , $ 41.5 million and $ 41.0 million , for the fiscal years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , respectively. The Company's capital lease assets are included in property, plant and equipment and the capital lease obligations are included in the Company's current and long-term debt obligations on the consolidated balance sheet. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt consists of the following (in thousands): December 31, 2016 January 2, 2016 Amended Credit Agreement: Revolving Credit Facility ($5.3 million denominated in euro at December 31, 2016 and $9.4 million denominated in CAD at January 2, 2016) $ 5,280 $ 9,358 Term Loan A ($76.9 million and $97.1 million denominated in CAD at December 31, 2016 and January 2, 2016, respectively) 120,103 277,181 Less unamortized deferred loan costs (1,083 ) (1,552 ) Carrying value Term Loan A 119,020 275,629 Term Loan B 583,500 589,500 Less unamortized deferred loan costs (6,298 ) (7,774 ) Carrying value Term Loan B 577,202 581,726 5.375% Senior Notes due 2022 with effective interest of 5.72% 500,000 500,000 Less unamortized deferred loan costs (7,667 ) (8,952 ) Carrying value 5.375% Senior Notes due 2022 492,333 491,048 4.75% Senior Notes due 2022 - Denominated in euro with effective interest of 5.10% 543,840 560,912 Less unamortized deferred loan costs - Denominated in euro (8,956 ) (10,705 ) Carrying value 4.75% Senior Notes due 2022 534,884 550,207 Other Notes and Obligations 22,224 23,049 1,750,943 1,931,017 Less Current Maturities 23,247 45,166 $ 1,727,696 $ 1,885,851 In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs. The ASU amends ASC (Subtopic 835-30), Interest - Imputation of Interest. The new standard requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying value of the debt liability, which is similar to the presentation of debt discounts or premiums. The costs will continue to be amortized to interest expense using the effective interest method. On January 3, 2016, the Company adopted this standard as a change in accounting principal on a retrospective basis. As of December 31, 2016 and January 2, 2016 , the Company has presented debt issuance costs related to the Company's term loans and senior notes, previously reported in other assets, as direct deductions from the carrying amount of the debt liability. In addition, the Company has presented the debt issuance costs related to the Company's amended credit agreement as a deferred asset within other assets as permitted by ASU No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, which was issued in August 2015. Upon adoption of ASU No. 2015-03, other assets of approximately $ 29.0 million were reclassified as a deduction from the carrying value of the recognized debt liability at January 2, 2016 . As of December 31, 2016 , the Company had outstanding debt under a term loan facility denominated in Canadian dollars of CAD$ 103.6 million . See below for discussion relating to the Company's debt agreements. In addition, at December 31, 2016 , the Company had capital lease obligations denominated in Canadian dollars included in debt. The current and long-term capital lease obligation was approximately CAD$ 1.4 million and CAD$ 1.3 million , respectively. As of December 31, 2016 , the Company had outstanding debt under the Company's 4.75% Senior Notes due 2022 denominated in euros of € 515.0 million . See below for discussion relating to the Company's debt agreements. In addition, at December 31, 2016 , the Company had capital lease obligations denominated in euros included in debt. The current and long-term capital lease obligation was approximately € 0.4 million and € 0.2 million , respectively. Senior Secured Credit Facilities . On January 6, 2014, Darling, Darling International Canada Inc. (“Darling Canada”) and Darling International NL Holdings B.V. (“Darling NL”) entered into a Second Amended and Restated Credit Agreement (as subsequently amended, the “Amended Credit Agreement”), restating its then existing Amended and Restated Credit Agreement dated September 27, 2013, with the lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, and the other agents from time to time party thereto. Effective December 16, 2016 , the Company, and certain of its subsidiaries entered into an amendment (the “Fourth Amendment”) with its lenders to the Amended Credit Agreement. Among other things, the Fourth Amendment (i) extended the maturity date of the term A loans and revolving credit facility loans under the Amended Credit Agreement from September 27, 2018 to December 16, 2021 , subject to a 91 -day “springing” adjustment if the term B loans are outstanding 91 days prior to the maturity date ( January 6, 2021 ) of the term B loans; (ii) reset the amortization schedule of the term A loans to their original schedule; (iii) adjusted the applicable margin pricing grid on borrowings under the term A Loan and revolving credit facility which adjusts based on the Company’s total leverage ratio as set forth in the Amended Credit Agreement; (iv) eliminated the secured leverage ratio financial maintenance covenant so that from and after the effective date of the Fourth Amendment the Company’s financial covenants consist of maintaining of total leverage ratio not to exceed 5.50 to 1.00 and maintaining an interest coverage ratio of not less than 3.00 to 1.00 ; (v) modified certain of the negative covenants to include a senior leverage ratio incurrence-based test and to increase the allowances for certain actions, including debt, investments and restricted payments; and (vi) made other updates and changes. The Amended Credit Agreement provides for senior secured credit facilities in the aggregate principal amount of $ 2.65 billion comprised of (i) the Company's $ 350.0 million term loan A facility (ii) the Company's $ 1.3 billion term loan B facility and (iii) the Company's $ 1.0 billion five -year revolving loan facility (approximately $ 150.0 million of which will be available for a letter of credit sub-facility and $ 50.0 million of which will be available for a swingline sub-facility) (collectively, the “Senior Secured Credit Facilities”). The Amended Credit Agreement also permits Darling and the other borrowers thereunder to incur ancillary facilities provided by any revolving lender party to the Senior Secured Credit Facilities (with certain restrictions). Up to $ 500.0 million of the revolving loan facility is available to be borrowed by (x) Darling in U.S. dollars, Canadian dollars, euros and other currencies to be agreed and available to each applicable lender, (y) Darling Canada in Canadian dollars and (z) Darling NL, Darling Ingredients International Holding B.V. (“Darling BV”) and CTH Germany GmbH (“CTH”) in U.S. dollars, Canadian dollars, euros and other currencies to be agreed and available to each applicable lender. The revolving loan facility and term loan A facility will mature on December 16, 2021, subject to a 91 -day “springing” adjustment if the term B loans are outstanding 91 days prior to the maturity date ( January 6, 2021 ) of the term B loans. The revolving loan facility will be used for working capital needs, general corporate purposes and other purposes not prohibited by the Amended Credit Agreement. On June 3, 2015, the Company refinanced € 504.9 million of the outstanding euro borrowings under the term loan B facility (the “Euro Term Loan B”) using the proceeds from the 4.75% Senior Notes due 2022. As a result of the refinance, the Company incurred a charge of approximately $ 10.6 million from the write-off of deferred loan costs related to Euro Term Loan B. The interest rate applicable to any borrowings under the term loan A facility and the revolving loan facility will equal either LIBOR/euro interbank offered rate/CDOR plus 2.00% per annum or base rate/Canadian prime rate plus 1.00% per annum, subject to certain step-ups or step-downs based on the Company's total leverage ratio. The interest rate applicable to any borrowings under the term loan B facility will equal (a) for U.S. dollar term loans, either the base rate plus 1.50% or LIBOR plus 2.50% , and (b) for euro revolver loans, the euro interbank offered rate plus 2.75% , in each case subject to a step-down based on Darling’s total leverage ratio. For term loan B loans, the LIBOR rate shall not be less than 0.75% . As of December 31, 2016 , the Company had $ 43.3 million outstanding under the term loan A facility at LIBOR plus a margin of 2.00% per annum for a total of 2.77% per annum. The Company had $ 583.5 million outstanding under the term loan B facility at LIBOR plus a margin of 2.50% per annum for a total of 3.27% per annum. The Company had CAD$ 103.6 million outstanding under the term loan A Facility at CDOR plus a margin of 2.00% per annum for a total of 3.0247% per annum. The Company had € 5.0 million outstanding under the revolver at LIBOR plus a margin of 2.00% per annum for a total of 2.00% per annum. As of December 31, 2016 , the Company had availability of $ 968.1 million under the Amended Credit Agreement taking into account amounts borrowed and letters of credit issued of $ 26.6 million . The Company also has foreign bank guarantees that are not part of the Company's Amended Credit Agreement in the amount of approximately $ 10.1 million at December 31, 2016 . In addition, the Company capitalized $ 4.8 million of deferred loan costs in fiscal year 2016 in connection with the Fourth Amendment. The Amended Credit Agreement contains various customary representations and warranties by the Company, which include customary use of materiality, material adverse effect and knowledge qualifiers. The Amended Credit Agreement also contains (a) certain affirmative covenants that impose certain reporting and/or performance obligations on Darling and its restricted subsidiaries, (b) certain negative covenants that generally prohibit, subject to various exceptions, Darling and its restricted subsidiaries from taking certain actions, including, without limitation, incurring indebtedness, making investments, incurring liens, paying dividends and engaging in mergers and consolidations, sale and leasebacks and asset dispositions, (c) financial covenants, which include a maximum total leverage ratio and a minimum interest coverage ratio and (d) customary events of default (including a change of control) for financings of this type. Obligations under the Senior Secured Credit Facilities may be declared due and payable upon the occurrence and during the continuance of customary events of default. 5.375% Senior Notes due 2022. On January 2, 2014 , Darling Escrow Corporation, a wholly-owned subsidiary of Darling, issued $ 500.0 million aggregate principal amount of its 5.375% Notes due 2022 (the “ 5.375% Notes”) pursuant to a 5.375% Notes Indenture, dated as of January 2, 2014 (the “Original 5.375% Indenture”), among Darling Escrow Corporation, the subsidiary guarantors party thereto from time to time, and U.S. Bank National Association, as trustee (the “5.375% Trustee”). On January 8, 2014 , Darling Escrow Corporation merged with and into Darling and entered into a supplemental indenture with Darling, the subsidiary guarantors party thereto and the 5.375% Trustee (the “Supplemental 5.375% Indenture,” and together with the Original 5.375% Indenture, the “5.375% Indenture”), pursuant to which Darling assumed all obligations under the 5.375% Notes and the 5.375% Indenture. Darling and the 5.375% Guarantors completed a registered exchange offer for the 5.375% Notes under the Securities Act during the third quarter of 2014. Darling used a portion of the proceeds from the offering of the 5.375% Notes to pay certain fees and expenses (including bank fees and expenses) related to the offering and the financing of its acquisition of its Darling Ingredients International business from VION and for purposes of satisfying, discharging and redeeming its 8.5% Notes due 2018. Darling used the remaining proceeds of the 5.375% Notes to pay certain other fees and expenses related to the completion of the VION Acquisition and its related financings, to repay a portion of the borrowings under its revolving credit facility used to fund a portion of the consideration for the VION Acquisition and for general corporate purposes. The 5.375% Notes will mature on January 15, 2022 . Darling pays interest on the 5.375% Notes on January 15 and July 15 of each year, commencing on July 15, 2014. Interest on the 5.375% Notes accrues at a rate of 5.375% per annum and is payable in cash. The 5.375% Notes are guaranteed on an unsecured senior basis by all of Darling's restricted subsidiaries (other than any foreign subsidiary or any receivables entity) that guarantee the Senior Secured Credit Facilities (the “5.375% Guarantors”). The 5.375% Notes and the guarantees thereof are senior unsecured obligations of Darling and the 5.375% Guarantors and rank equally in right of payment to all of Darling's and the 5.375% Guarantors' existing and future senior unsecured indebtedness. The 5.375% Indenture contains covenants limiting Darling's ability and the ability of its restricted subsidiaries to, among other things: incur additional indebtedness or issue preferred stock; pay dividends on or make distributions or repurchases of Darling's capital stock or make other restricted payments; create restrictions on the payment of dividends or other amounts from Darling's restricted subsidiaries to Darling or Darling's other restricted subsidiaries; make loans or investments; enter into certain transactions with affiliates; create liens; designate Darling's subsidiaries as unrestricted subsidiaries; and sell certain assets or merge with or into other companies or otherwise dispose of all or substantially all of Darling's assets. Other than for extraordinary events such as change of control and defined assets sales, Darling is not required to make mandatory redemption or sinking fund payments on the 5.375% Notes. The 5.375% Notes are redeemable, in whole or in part, at any time on or after January 15, 2017 at the redemption prices specified in the 5.375% Indenture. Darling may redeem some or all of the 5.375% Notes at any time prior to January 15, 2017, at a redemption price equal to 100% of the principal amount of the 5.375% Notes redeemed, plus accrued and unpaid interest to the redemption date and an Applicable Premium as specified in the 5.375% Indenture. 4.75 % Senior Notes due 2022. On June 3, 2015, Darling Global Finance B.V. (the “4.75% Issuer”), a wholly-owned subsidiary of Darling, issued € 515.0 million aggregate principal amount of the 4.75% Senior Notes due 2022 (the “ 4.75% Notes”) pursuant to a Senior Notes Indenture, dated as of June 3, 2015 (the “4.75% Indenture”), among the 4.75% Issuer, Darling (as guarantor), the subsidiary guarantors party thereto from time to time, Citibank, N.A., London Branch, as trustee (the “4.75% Trustee”) and principal paying agent, and Citigroup Global Markets Deutschland AG, as principal registrar. Darling used the gross proceeds from the sale of the 4.75% Notes to refinance a portion of the term loan B outstanding under Darling's Senior Secured Credit Facilities and to pay certain fees and expenses related to the offering of the 4.75% Notes and the refinancing of the term loan B. Darling intends to use any remaining proceeds for general corporate purposes. The 4.75% Notes will mature on May 30, 2022. The 4.75% Issuer pays interest on the 4.75% Notes on May 30 and November 30 of each year, commencing on November 30, 2015. Interest on the 4.75% Notes accrues from June 3, 2015 at a rate of 4.75% per annum and is payable in cash. The 4.75% Notes are guaranteed on a senior unsecured basis by Darling and all of Darling's restricted subsidiaries (other than any foreign subsidiary, the 4.75% Issuer or any receivables entity) that guarantee the Senior Secured Credit Facilities (collectively “4.75% Guarantors”). The 4.75% Notes and the guarantees thereof are senior unsecured obligations of the 4.75% Issuer and the 4.75% Guarantors and rank equally in right of payment to all of the 4.75% Issuer's and the 4.75% Guarantors' existing and future senior unsecured indebtedness. The 4.75% Indenture contains covenants limiting Darling's ability and the ability of its restricted subsidiaries (including the 4.75% Issuer) to, among other things: incur additional indebtedness or issue preferred stock; pay dividends on or make other distributions or repurchases of Darling's capital stock or make other restricted payments; create restrictions on the payment of dividends or certain other amounts from Darling's restricted subsidiaries to Darling or Darling's other restricted subsidiaries; make loans or investments; enter into certain transactions with affiliates; create liens; designate Darling's subsidiaries as unrestricted subsidiaries; and sell certain assets or merge with or into other companies or otherwise dispose of all of substantially all of Darling's assets. Other than for extraordinary events such as change of control and defined assets sales, the 4.75% Issuer is not required to make mandatory redemption or sinking fund payments on the 4.75% Notes. The 4.75% Notes are redeemable, in whole or in part, at any time on or after May 30, 2018 at the redemption prices specified in the 4.75% Indenture. The 4.75% Issuer may redeem some or all of the 4.75% Notes at any time prior to May 30, 2018, at a redemption price equal to 100% of the principal amount of the 4.75% Notes redeemed, plus accrued and unpaid interest to the redemption date and an Applicable Premium as specified in the 4.75% Indenture and all additional amounts (if any) then due or which will become due on the redemption date as a result of the redemption or otherwise (subject to the rights of holders on the relevant record dates to receive interest due on the relevant interest payment date and additional amounts (if any) in respect thereof). The Company's financial covenants are effective for fiscal quarter ending April 1, 2017, which is the first full fiscal quarter after the Fourth Amendment. As of December 31, 2016 , the Company believes it is in compliance with all other covenants contained in the Amended Credit Agreement, the 5.375% Indenture and the 4.75% Indenture. Maturities of long-term debt at December 31, 2016 follow (in thousands): Contractual Debt Payment 2017 $ 24,758 2018 7,105 2019 9,661 2020 129,832 2021 559,525 thereafter 1,044,066 $ 1,774,947 |
Other Noncurrent Liabilities
Other Noncurrent Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
OTHER NONCURRENT LIABILITIES [Abstract] | |
OTHER NONCURRENT LIABILITIES | OTHER NONCURRENT LIABILITIES Other noncurrent liabilities consist of the following (in thousands): December 31, 2016 January 2, 2016 Accrued pension liability (Note 15) $ 53,152 $ 53,220 Reserve for self insurance, litigation, environmental and tax matters (Note 19) 41,251 42,778 Other 1,711 1,811 $ 96,114 $ 97,809 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES U.S. and foreign income from operations before income taxes are as follows (in thousands): December 31, 2016 January 2, 2016 January 3, 2015 United States $ 48,869 $ 50,473 $ 58,972 Foreign 73,670 48,307 22,480 Income from operations before income taxes $ 122,539 $ 98,780 $ 81,452 Income tax expense attributable to income from continuing operations before income taxes consists of the following (in thousands): December 31, 2016 January 2, 2016 January 3, 2015 Current: Federal $ 65 $ (21,775 ) $ 1,134 State (332 ) 411 (884 ) Foreign 27,992 29,871 24,770 Total current 27,725 8,507 25,020 Deferred: Federal (8,056 ) 13,057 886 State (649 ) (1,521 ) 1,235 Foreign (3,705 ) (6,542 ) (14,000 ) Total deferred (12,410 ) 4,994 (11,879 ) $ 15,315 $ 13,501 $ 13,141 Income tax expense for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , differed from the amount computed by applying the statutory U.S. federal income tax rate to income from continuing operations before income taxes as a result of the following (in thousands): December 31, 2016 January 2, 2016 January 3, 2015 Computed "expected" tax expense $ 42,888 $ 34,573 $ 28,508 Change in valuation allowance 1,039 4,421 5,420 Deferred tax on unremitted foreign earnings 2,546 4,848 1,956 Sub-Part F income 6,159 4,923 3,786 Foreign rate differential (9,982 ) (5,653 ) (9,754 ) Biofuel tax incentives (28,435 ) (28,143 ) (22,546 ) Non-deductible transaction costs — — 4,107 Other, net 1,100 (1,468 ) 1,664 $ 15,315 $ 13,501 $ 13,141 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2016 and January 2, 2016 are presented below (in thousands): December 31, 2016 January 2, 2016 Deferred tax assets: Loss contingency reserves $ 11,998 $ 11,961 Employee benefits 9,586 9,383 Pension liability 18,200 17,714 Intangible assets amortization, including taxable goodwill 2,317 2,947 Net operating losses 119,602 99,534 Inventory 8,523 7,934 Other 13,583 16,621 Total gross deferred tax assets 183,809 166,094 Less valuation allowance (20,150 ) (22,209 ) Net deferred tax assets 163,659 143,885 Deferred tax liabilities: Intangible assets amortization, including taxable goodwill (189,233 ) (182,748 ) Property, plant and equipment depreciation (207,729 ) (209,925 ) Investment in DGD Joint Venture (47,607 ) (46,239 ) Tax on unremitted foreign earnings (49,196 ) (48,106 ) Other (1,038 ) (1,196 ) Total gross deferred tax liabilities (494,803 ) (488,214 ) Net deferred tax liability $ (331,144 ) $ (344,329 ) Amounts reported on Consolidated Balance Sheets: Non-current deferred tax asset $ 14,990 $ 16,352 Non-current deferred tax liability (346,134 ) (360,681 ) Net deferred tax liability $ (331,144 ) $ (344,329 ) At December 31, 2016 , the Company had net operating loss carryforwards for federal income tax purposes of approximately $ 193.2 million , which begin to expire in 2019 through 2036 . As a result of the change in ownership which occurred pursuant to the May 2002 recapitalization, utilization of approximately $ 4.9 million of the federal net operating loss carryforwards is limited to approximately $ 0.7 million per year for the remaining life of the net operating losses. The Company had approximately $ 172.6 million of net operating loss carryforwards for state income tax purposes, which expire in 2019 through 2036. Also at December 31, 2016 , the Company had U.S. foreign tax credit carryforwards of approximately $ 2.2 million and state tax credit carryforwards of approximately $ 1.0 million . The Company had foreign net operating loss carryforwards of about $ 168.3 million , $ 84.1 million of which expire in 2017 through 2036 and $ 84.2 million of which can be carried forward indefinitely. As of December 31, 2016 , the Company had a valuation allowance of $ 4.8 million due to uncertainties in respect to its ability to utilize its U.S. (federal and state) net operating loss and tax credit carryforwards before they expire. The Company also had a valuation allowance of $ 15.4 million due to uncertainties in its ability to utilize foreign net operating loss carryforwards and other foreign deferred tax assets. At December 31, 2016 , the Company had unrecognized tax benefits of approximately $ 4.7 million . An indemnity receivable of $ 3.0 million has also been recorded in respect to the VION Acquisition. There was no material income statement activity in fiscal 2016 in respect to unrecognized tax benefits. All of the unrecognized tax benefits would favorably impact the Company's effective tax rate if recognized. The Company believes it is reasonably possible that unrecognized tax benefits could change by $ 1.7 million in the next twelve months. The possible change in unrecognized tax benefits relates to the expiration of certain statutes of limitation and the possible settlement of an ongoing income tax audit. The Company recognizes accrued interest and penalties, as appropriate, related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2016 , interest and penalties related to unrecognized tax benefits were $ 1.5 million . These interest and penalties related to the unrecognized tax benefits from the VION Acquisition and were primarily recorded in purchase accounting. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): December 31, 2016 January 2, 2016 Balance at beginning of Year $ 5,604 $ 8,130 Change in tax positions related to prior years 99 (1,953 ) Expiration of the Statute of Limitations (1,036 ) (573 ) Balance at end of year $ 4,667 $ 5,604 In fiscal 2016, the Company's major taxing jurisdictions are U.S. (federal and state), Belgium, Brazil, Canada, China, France, Germany and the Netherlands. The Company is currently subject to federal and state examinations in the U.S. for tax years 2012 through 2014. The Company is also subject to regular examination by various foreign tax authorities. Although the final outcome of these examinations is not yet determinable, the Company does not anticipate that any of the examinations will have a significant impact on the Company's results of operations or financial position. The statute of limitations for the Company's major jurisdictions is open for varying periods, but is generally closed through the 2010 tax year. Prior to fiscal 2014, the Company did not have significant operations outside of the U.S. During fiscal 2013, the Company began operations in Canada through the Rothsay Acquisition. During fiscal 2014, the Company began operations in the other major taxing jurisdictions through the VION Acquisition. The Company generally expects to indefinitely reinvest the earnings of its foreign subsidiaries outside the U.S. and has not provided deferred income taxes on the accumulated earnings of its foreign subsidiaries except for the accumulated earnings of certain joint venture companies. At December 31, 2016 , the amount of undistributed foreign subsidiary earnings indefinitely reinvested outside of the U.S. for which no U.S. deferred incomes taxes have been provided is approximately $ 71.8 million . It is not practicable to determine the deferred tax liability related to these undistributed earnings. |
Stockholders' Equity and Stock-
Stockholders' Equity and Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity and Stock-Based Compensation [Abstract] | |
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION | STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION In August 2015, the Company's Board of Directors approved a share repurchase program of up to an aggregate of $ 100.0 million of the Company's Common Stock depending on market conditions. The repurchases may be made from time to time on the open market at prevailing market prices or in negotiated transactions off the market. Repurchases may occur over the 24 month period ending in August 2017, unless extended or shortened by the Board of Directors. As of December 31, 2016 , the Company has approximately $ 89.1 million remaining under the share repurchase program approved in August 2015. On May 8, 2012, the shareholders approved the Company's 2012 Omnibus Incentive Plan (the “2012 Omnibus Plan”). The 2012 Omnibus Plan replaced the Company's 2004 Omnibus Incentive Plan (the “2004 Omnibus Plan”) for future grants. Under the 2012 Omnibus Plan, the Company can grant stock options, stock appreciation rights, non-vested and restricted stock (including performance stock), restricted stock units (including performance units), other stock-based awards, non-employee director awards, dividend equivalents and cash-based awards. There are up to 11,066,544 common shares available under the 2012 Omnibus Plan which may be granted to participants in any plan year (as such term is defined in the 2012 Omnibus Plan). Some of those shares are subject to outstanding awards as detailed in the tables below. To the extent these outstanding awards are forfeited or expire without exercise, the shares will be returned to and available for future grants under the 2012 Omnibus Plan. The 2012 Omnibus Plan’s purpose is to attract, retain and motivate employees, directors and third party service providers of the Company and to encourage them to have a financial interest in the Company. The 2012 Omnibus Plan is administered by the Compensation Committee (the “Committee”) of the Board of Directors. The Committee has the authority to select plan participants, grant awards, and determine the terms and conditions of such awards as provided in the 2012 Omnibus Plan. The Committee has adopted an executive compensation program that includes a long-term incentive component (the “LTIP”) for the Company's key employees, as a subplan under the terms of the 2012 Omnibus Plan. The principal purpose of the LTIP is to encourage the Company's executives to enhance the value of the Company and, hence, the price of the Company’s stock and the stockholders' return. In addition, the LTIP is designed to create retention incentives for the individual and to provide an opportunity for increased equity ownership by executives. At December 31, 2016 , the number of common shares available for issuance under the 2012 Omnibus Plan was 4,566,505 . For fiscal 2015 and 2014, the Committee awarded dollar value performance based restricted stock and stock option opportunities under the LTIP to certain of the Company's key employees, including the Chief Executive Officer and other executive officers, and such restricted stock and stock options were issued only if predetermined financial objectives were met by the Company. The Company met the financial objectives for fiscal 2015 and fiscal 2014 and those shares and options were issued in accordance with the terms of the LTIP. Beginning in fiscal 2016, a shift was made in the LTIP from backward-looking performance-based restricted stock and stock options to a combination of (i) annual, overlapping grants of performance share units (“PSUs”) tied to a three -year, forward-looking performance metric and (ii) annual stock option grants that vest 33.33% on the first, second and third anniversaries of grant; provided that a small portion of fiscal 2016 LTIP value was granted as one-time, non-incremental transition PSUs to facilitate the switch to a forward-looking program, with these grants tied to a two -year, forward-looking performance metric. See “Stock Option Awards” and “Fiscal 2016 LTIP PSU Awards” below for more information regarding the stock options and PSU awards, respectively, under the 2016 LTIP. The following is a summary of stock-based compensation awards granted during the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 . Stock Option Awards . Stock options to purchase Darling common shares are granted by the Committee to certain of the Company's employees as part of the Company's LTIP under the 2012 Omnibus Plan. For the options granted under the fiscal 2015 LTIP and fiscal 2014 LTIP, the exercise price was equal to the market value of Darling common shares on the close of the trading day immediately preceding the grant date, and such options vest 25 percent upon grant and 25 percent each of the first three anniversary dates of the grant thereafter. The Company met the requisite performance measure under the 2015 LTIP, accordingly, in accordance with the terms of the 2015 LTIP, the Company granted 452,878 stock options to participants on March 7, 2016. For the options granted under the fiscal 2016 LTIP, the exercise price was equal to the closing price of Darling common shares on the date of grant, which was February 25, 2016, and such options vest 33.33% on the first, second and third anniversaries of the grant. The Company granted 1,094,306 stock options under the 2016 LTIP. During fiscal 2016 , 2015 and 2014 only nonqualified stock options were issued and none of the options were incentive stock options. The Company’s stock options granted under the 2012 Omnibus Plan generally terminate 10 years after date of grant. A summary of all stock option activity as of December 31, 2016 and changes during the year ended is as follows: Number of shares Weighted-avg. exercise price per share Weighted-avg. remaining contractual life Options outstanding at December 28, 2013 906,251 $ 9.97 5.0 years Granted 163,078 19.94 Exercised (343,550 ) 6.18 Forfeited (29,603 ) 16.89 Expired — — Options outstanding at January 3, 2015 696,176 13.88 6.2 years Granted 422,386 14.76 Exercised (131,653 ) 4.13 Forfeited (136,177 ) 16.68 Expired — — Options outstanding at January 2, 2016 850,732 15.38 7.7 years Granted 1,547,184 9.53 Exercised (28,000 ) 6.71 Forfeited (4,000 ) 16.20 Expired — — Options outstanding at December 31, 2016 2,365,916 $ 11.65 8.4 years Options exercisable at December 31, 2016 715,833 $ 15.18 6.8 years The fair value of each stock option grant under the Company's stock option plan was estimated on the date of grant using the Black Scholes option-pricing model with the following weighted average assumptions and results for fiscal 2016 , 2015 and 2014 . Weighted Average 2016 2015 2014 Expected dividend yield 0.0% 0.0% 0.0% Risk-free interest rate 1.35% 1.82% 1.77% Expected term 5.76 years 5.75 years 5.75 years Expected volatility 34.4% 38.0% 43.7% Fair value of options granted $3.34 $5.59 $8.93 The expected lives for options granted during fiscal 2016 , 2015 and 2014 were computed using the simplified method since the current option plans historical exercise data has not provided a reasonable basis for estimating the expected term for the current option grants. At December 31, 2016 , $ 13.6 million of total future equity-based compensation expense (determined using the Black-Scholes option pricing model and Monte Carlo model for non-vested stock grants with performance based incentives) related to outstanding non-vested options and stock awards is expected to be recognized over a weighted average period of 1.4 years. For the year ended December 31, 2016 , the amount of cash received from the exercise of options was approximately $ 0.2 million and the related tax benefit was less than $ 0.1 million . For the year ended January 2, 2016 , the amount of cash received from the exercise of options was approximately $ 0.2 million and the related tax benefit was approximately $ 0.4 million . For the year ended January 3, 2015 the amount of cash received from the exercise of options was approximately $ 0.4 million and the related tax benefits were approximately $ 1.2 million . The total intrinsic value of options exercised for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 was approximately $ 0.2 million , $ 1.4 million and $ 4.5 million , respectively. The fair value of shares vested for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 was approximately $ 8.3 million , $ 7.5 million and $ 19.6 million , respectively. At December 31, 2016 , the aggregate intrinsic value of options outstanding was approximately $ 5.4 million and the aggregate intrinsic value of options exercisable was approximately $ 0.3 million . Non-Vested Stock, Restricted Stock Unit and Performance Share Unit Awards . The Company has in the past granted non-vested stock and restricted stock unit (RSU) awards to certain of the Company's employees as part of the LTIP under the 2012 Omnibus Plan, and beginning in 2016, the Company grants performance share unit awards as part of the LTIP. In addition, the Company has granted performance share unit awards, individual non-vested stock and RSU awards to key employees from time to time at the discretion of the Committee. Non-vested stock is generally granted to U.S. based employees, and generally vests 25 percent upon grant and 25 percent each of the first three anniversary dates of the grant thereafter. RSUs are generally granted to foreign based employees, with each RSU equivalent to one share of common stock and payable upon vesting in an equivalent number of shares of Darling common stock. Generally, all RSU awards vest 25 percent upon grant and 25 percent each of the first three anniversary dates of the grant thereafter. Generally, upon termination of employment (voluntary or with cause), non-vested stock, RSUs and discretionary performance share awards that have not vested are forfeited. Upon, death, disability or qualifying retirement, a pro-rata portion of the unvested non-vested and RSU awards will vest and be payable. Under the 2015 LTIP, the Company met the requisite performance measure, accordingly, in accordance with the 2015 LTIP, the Company granted 454,916 shares of nonvested stock and 147,390 restricted stock units in the first quarter of fiscal 2016. In connection with the closing of the VION Acquisition, in January 2014, the Company made awards of Performance Share Units (“2014 PSUs”) and common stock under the Company’s 2012 Omnibus Plan to certain of the Company’s key employees selected by the Committee. The awards covered an aggregate of 975,000 shares of the Company’s common stock. For North American-based executives, each award was in the form of 2014 PSUs for a specified number of shares of common stock of the Company. For European-based executives, each award was in the form of a combination of fully vested shares (representing 25% of the total award given to the European-based executives), and 2014 PSUs for a specified number of shares common stock of the Company (representing the other 75% of the award). On January 7, 2014, the Company issued 118,750 fully vested shares that were granted to the European-based executives. the 2014 PSUs were to vest in three equal installments on the first, second and third anniversaries of the closing of the VION Acquisition based on attainment of specified levels of adjusted EBITDA for the Company and/or Darling Ingredients International for fiscal years 2014, 2015 and 2016, respectively. If the target level of adjusted EBITDA for the fiscal year for both the Company and/or Darling Ingredients International was not achieved (subject to a near miss provision contained in the award agreements that provides for a portion of the shares to be paid out under certain circumstances), the installment for the related vesting date was forfeited. The performance target was achieved for 2014, and accordingly a total of 252,087 shares were paid out to the participants in March 2015; however, the requisite performance targets were not achieved for 2015 and 2016, so therefore the final two installments of the 2014 PSUs award were forfeited by each of the participants in the first quarter of fiscal 2016 and fiscal 2017 after it was determined that the performance targets for 2015 and 2016 were not achieved. A summary of the Company’s non-vested stock, restricted stock unit and performance share unit awards as of December 31, 2016 , and changes during the year ended is as follows: Non-Vested, RSU and PSU Shares Weighted Average Grant Date Fair Value Stock awards outstanding December 28, 2013 821,207 $ 14.93 Shares granted 1,436,658 20.73 Shares vested (861,772 ) 16.43 Shares forfeited (138,920 ) 19.90 Stock awards outstanding January 3, 2015 1,257,173 19.98 Shares granted 524,225 14.47 Shares vested (714,626 ) 17.91 Shares forfeited (32,581 ) 19.65 Stock awards outstanding January 2, 2016 1,034,191 18.63 Shares granted 602,306 12.11 Shares vested (413,654 ) 15.11 Shares forfeited (241,582 ) 20.86 Stock awards outstanding December 31, 2016 981,261 $ 15.56 Fiscal 2016 LTIP PSU Awards . On February 25, 2016, the Committee granted 664,120 PSUs under the Company's 2016 LTIP, 511,120 of which are tied to a three -year, forward-looking performance metric and 153,000 of which are tied to a two -year forward-looking performance metric, with the earned award to be determined in the first quarter of fiscal 2018 and fiscal 2019, respectively, after the final results for the relevant performance period are determined. The PSUs were granted at target level; however, actual awards may vary between 0% and 225% of the target number of PSUs, depending on the performance level achieved. In addition, the number of PSUs earned may be reduced (up to 30% ) or increased (capped at the maximum payout) based on the Company's total shareholder return (TSR) over the performance period. In addition, certain of the PSUs have a two -year holding requirement after vesting before the PSUs are settled in shares of the Company's Common Stock. The fair value of each 2016 LTIP PSU award under the Company's 2016 LTIP was estimated on the date of grant using a Monte Carlo model with the following weighted average assumptions for fiscal 2016 , except for the illiquidity discount, which only pertains to the 2016 LTIP PSU's with a holding period requirement. Weighted Average 2016 Expected dividend yield 0.0% Risk-free interest rate 0.80% Expected term 2.62 years Expected volatility 29.3% Illiquidity discount 16.1% A summary of the Company’s 2016 LTIP PSU awards as of December 31, 2016 , and changes during the year ended is as follows: LTIP PSU Shares Weighted Average Grant Date Fair Value LTIP PSU awards outstanding January 2, 2016 — $ — Granted 664,120 7.17 Vested — — Forfeited — — LTIP PSU awards outstanding December 31, 2016 664,120 $ 7.17 Nonemployee Director Restricted Stock and Restricted Stock Unit Awards. On February 24, 2011, the Company's Board of Directors approved an Amended and Restated Non-Employee Director Restricted Stock Award Plan (the “Director Restricted Stock Plan”) pursuant to and in accordance with the 2004 Omnibus Plan in order to attract and retain highly qualified persons to serve as non-employee directors and to more closely align such directors' interests with the interests of the stockholders of the Company by providing a portion of their compensation in the form of Company common stock. Under the Director Restricted Stock Plan, $ 60,000 in restricted Company common stock was awarded to each non-employee director on the fourth business day after the Company released its earnings for its prior completed fiscal year (the “Date of Award”). The amount of restricted stock to be issued was calculated using the closing price of the Company’s common stock on the third business day after the Company released its earnings. The restricted stock was subject to a right of repurchase at $ 0.01 per share upon termination of the holder as a member of the Company's board of directors for cause and was not transferable. These restrictions lapse with respect to 100% of the restricted stock upon the earliest to occur of (i) 10 years after the date of award, (ii) a Change of Control (as defined in the 2004 Omnibus Plan), and (iii) termination of the non-employee director's service with the Company, other than for “cause” (as defined in the Director Restricted Stock Plan). Beginning in fiscal 2014, the Board discontinued grants to non-employee directors under the Director Restricted Stock Plan described above, and in lieu thereof, as an additional element of annual non-employee director compensation, pursuant to the 2012 Omnibus Plan, each non-employee director now receives $ 90,000 of restricted stock units immediately following the Company’s annual meeting of stockholders at which such directors are elected. The number of restricted stock units to be issued is calculated using the closing price of the Company’s stock on the date of its annual meeting. The award vests (and is no longer subject to forfeiture) on the first to occur of (i) the first anniversary of the grant date, (ii) the date of the annual shareholders meeting next following the grant date, (iii) the grantee’s separation from service as a result of death or disability, or (iv) a change of control. The award will become "payable" in shares of the Company’s stock in a single lump sum payment as soon as possible following a grantee’s separation from service, subject to a grantee’s right to elect a deferral under certain circumstances. If a grantee ceases to be a director for any reason other than death or disability prior to vesting, the grantee will receive a prorated amount of the award up to the date of separation. A summary of the Company’s non-employee director restricted stock awards as of December 31, 2016 , and changes during the year ended is as follows: Restricted stock and Restricted Stock Unit Shares Weighted Average Grant Date Fair Value Stock awards outstanding December 28, 2013 130,238 $ 10.75 Restricted shares granted 25,678 19.67 Restricted shares where the restriction lapsed — — Restricted shares forfeited — — Stock awards outstanding January 3, 2015 155,916 12.22 Restricted shares granted 46,910 13.80 Restricted shares where the restriction lapsed (50,322 ) 12.25 Restricted shares forfeited — — Stock awards outstanding January 2, 2016 152,504 12.69 Restricted shares granted 43,421 14.51 Restricted shares where the restriction lapsed (81,031 ) 11.55 Restricted shares forfeited (3,535 ) 14.51 Stock awards outstanding December 31, 2016 111,359 $ 14.18 |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2016 | |
Comprehensive Income [Abstract] | |
COMPREHENSIVE INCOME | COMPREHENSIVE INCOME The Company follows FASB authoritative guidance for reporting and presentation of comprehensive income or loss and its components. Other comprehensive income (loss) is derived from adjustments that reflect pension adjustments, natural gas derivative adjustments, corn option adjustments and foreign currency translation adjustments. The components of other comprehensive income (loss) and the related tax impacts for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 are as follows (in thousands): Before-Tax Tax (Expense) Net-of-Tax Amount or Benefit Amount Year Ended January 3, 2015 Defined Benefit Pension Plans Actuarial (loss)/gain recognized $ (34,547 ) $ 12,001 $ (22,546 ) Amortization of actuarial loss 2,078 (806 ) 1,272 Actuarial prior service cost recognized 1,140 (261 ) 879 Amortization of prior service costs 23 (9 ) 14 Total defined benefit pension plans (31,306 ) 10,925 (20,381 ) Natural gas swap derivatives Loss/(gain) reclassified to net income (196 ) 76 (120 ) Gain/(loss) recognized in other comprehensive income (loss) 11 (4 ) 7 Total natural gas derivatives (185 ) 72 (113 ) Corn option derivatives Loss/(gain) reclassified to net income (3,868 ) 1,501 (2,367 ) Gain/(loss) recognized in other comprehensive income (loss) 1,812 (704 ) 1,108 Total corn options (2,056 ) 797 (1,259 ) Foreign currency translation Other comprehensive income/(loss) (119,684 ) — (119,684 ) Other comprehensive income/(loss) $ (153,231 ) $ 11,794 $ (141,437 ) Year Ended January 2, 2016 Defined Benefit Pension Plans Actuarial (loss)/gain recognized $ (3,822 ) $ 1,499 $ (2,323 ) Amortization of actuarial loss 5,101 (1,986 ) 3,115 Amortization of prior service costs (67 ) 36 (31 ) Amortization of curtailment (1,181 ) 328 (853 ) Amortization of settlement 5,291 (1,468 ) 3,823 Other 471 — 471 Total defined benefit pension plans 5,793 (1,591 ) 4,202 Corn option derivatives Loss/(gain) reclassified to net income (1,517 ) 589 (928 ) Gain/(Loss) recognized in other comprehensive income 4,405 (1,710 ) 2,695 Total corn options 2,888 (1,121 ) 1,767 Foreign currency translation (162,436 ) — (162,436 ) Other comprehensive income/(loss) $ (153,755 ) $ (2,712 ) $ (156,467 ) Year Ended December 31, 2016 Defined Benefit Pension Plans Actuarial (loss)/gain recognized $ (5,257 ) $ 1,396 $ (3,861 ) Amortization of actuarial loss 4,632 (1,786 ) 2,846 Amortization of prior service costs 36 (12 ) 24 Amortization of curtailment — — — Amortization of settlement (114 ) 45 (69 ) Other 44 — 44 Total defined benefit pension plans (659 ) (357 ) (1,016 ) Corn option derivatives Loss/(gain) reclassified to net income (3,868 ) 1,501 (2,367 ) Gain/(Loss) recognized in other comprehensive income 4,889 (1,897 ) 2,992 Total corn options 1,021 (396 ) 625 Foreign currency translation (5,593 ) — (5,593 ) Other comprehensive income/(loss) $ (5,231 ) $ (753 ) $ (5,984 ) Fiscal Year Ended December 31, 2016 January 2, 2016 January 3, 2015 Statement of Operations Classification Derivative instruments Natural gas swap derivatives $ — $ — $ 196 Cost of sales and operating expenses Corn option derivatives 3,868 1,517 3,868 Cost of sales and operating expenses 3,868 1,517 4,064 Total before tax (1,501 ) (589 ) (1,577 ) Income taxes 2,367 928 2,487 Net of tax Defined benefit pension plans Amortization of prior service cost $ (36 ) $ 67 $ (23 ) (a) Amortization of actuarial loss (4,632 ) (5,101 ) (2,078 ) (a) Amortization of curtailment — 1,181 — (a) Amortization of settlement 114 (5,291 ) — (a) (4,554 ) (9,144 ) (2,101 ) Total before tax 1,753 3,090 815 Income taxes (2,801 ) (6,054 ) (1,286 ) Net of tax Total reclassifications $ (434 ) $ (5,126 ) $ 1,201 Net of tax (a) These items are included in the computation of net periodic pension cost. See Note 15 Employee Benefit Plans for additional information. The following table presents changes in each component of accumulated comprehensive income (loss) as of December 31, 2016 as follows (in thousands): Fiscal Year Ended December 31, 2016 Foreign Currency Derivative Defined Benefit Translation Instruments Pension Plans Total Accumulated Other Comprehensive Income/(loss) January 2, 2016, attributable to Darling, net of tax $ (305,213 ) $ 1,843 $ (32,548 ) $ (335,918 ) Other comprehensive gain before reclassifications (5,593 ) 2,992 (3,817 ) (6,418 ) Amounts reclassified from accumulated other comprehensive income/(loss) — (2,367 ) 2,801 434 Net current-period other comprehensive income (5,593 ) 625 (1,016 ) (5,984 ) Noncontrolling interest (1,896 ) — — (1,896 ) Accumulated Other Comprehensive Income/(loss) December 31, 2016, attributable to Darling, net of tax $ (308,910 ) $ 2,468 $ (33,564 ) $ (340,006 ) |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Employee Benefit Plans [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS The Company has retirement and pension plans covering a substantial number of its domestic and foreign employees. Most retirement benefits are provided by the Company under separate final-pay noncontributory and contributory defined benefit and defined contribution plans for all salaried and hourly employees (excluding those covered by union-sponsored plans) who meet service and age requirements. Although various defined benefit formulas exist for employees, generally these are based on length of service and earnings patterns during employment. Effective January 1, 2012, the Company's Board of Directors authorized the Company to proceed with the restructuring of its domestic retirement benefit program to include the closing of Darling's domestic salaried and hourly defined benefit plans to new participants as well as the freezing of service and wage accruals thereunder effective December 31, 2011 (a curtailment of these plans for financial reporting purposes) and the enhancing of benefits under the Company's domestic defined contribution plans. The Company-sponsored domestic hourly union plan has not been curtailed; however, several locations of the Company-sponsored domestic hourly union plan have been curtailed as a result of collective bargaining renewals for those sites. As a result of the VION Acquisition, employees of VION Ingredients became employees of Darling Ingredients International. Pursuant to the terms of the Sale and Purchase Agreement dated October 3, 2013, as amended, between Darling and VION, Darling assumed approximately $ 28.9 million of unfunded pension and insignificant postretirement benefit plan obligations. Effective on December 31, 2015, the largest foreign defined benefit plan was terminated. As a result of the terminated plan, all future accruals ceased, representing a curtailment of the future accruals. As part of the termination, the Company's subsidiary transferred all past service benefits and all assets in the plan to a third party insurance provider as a settlement of the plan. In place of this defined benefit plan, future benefits are now being provided for through a multiemployer plan that will be accounted for as a defined contribution plan. In fiscal 2016, two additional immaterial foreign defined benefit plans were amended and terminated resulting in curtailment and settlement gains. The Company maintains defined contribution plans both domestically and at its foreign entities. The Company's matching portion and annual employer contributions to the Company's domestic defined contribution plans for fiscal 2016 , 2015 and 2014 were approximately $ 9.2 million , $ 9.3 million and $ 9.2 million , respectively. The Company's matching portion and annual employer contributions to the Company's foreign defined contribution plans for fiscal 2016, 2015 and 2014 were approximately $ 6.2 million , $ 3.0 million and $ 3.5 million , respectively. The Company recognizes the over-funded or under-funded status of the Company's defined benefit post-retirement plans as an asset or liability in the Company's balance sheet, with changes in the funded status recognized through comprehensive income in the year in which they occur. In April 2015, the FASB issued ASU No. 2015-04, Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets. The ASU amends ASC Topic 715, Compensation-Retirement Benefits. The new standard permits a reporting entity with a fiscal year-end that does not coincide with a month-end to measure defined benefit plan assets and obligations using the month-end that is closest to the entity's fiscal year-end and apply that expedient consistently from year to year. The practical expedient should be applied consistently to all plans if an entity has more than one plan. This ASU is effective for public entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those years with early adoption permitted. The Company has elected to early adopt in 2015 the month-end date of December 31 as the measurement date for all of the Company's defined benefit plans, which is the closest month-end to the Company's fiscal year-end. The following table sets forth the plans’ funded status for the Company's domestic and foreign defined benefit plans and amounts recognized in the Company's consolidated balance sheets based on the measurement date (December 31, 2016 and December 31, 2015) (in thousands): December 31, 2016 January 2, Change in projected benefit obligation: Projected benefit obligation at beginning of period $ 182,276 $ 395,142 Acquisitions — — Service cost 2,549 6,638 Interest cost 6,950 10,536 Employee contributions 439 1,862 Plan amendments 101 90 Actuarial loss/(gain) 7,905 (24,436 ) Benefits paid (7,146 ) (11,197 ) Effect of curtailment (1,286 ) (9,545 ) Effect of settlement (953 ) (162,600 ) Other (1,545 ) (24,214 ) Projected benefit obligation at end of period 189,290 182,276 Change in plan assets: Fair value of plan assets at beginning of period 127,970 328,220 Acquisitions — — Actual return on plan assets 10,138 (17,888 ) Employer contributions 5,250 9,612 Employee contributions 439 1,862 Benefits paid (7,146 ) (11,197 ) Effect of settlement (953 ) (162,600 ) Other (789 ) (20,039 ) Fair value of plan assets at end of period 134,909 127,970 Funded status (54,381 ) (54,306 ) Net amount recognized $ (54,381 ) $ (54,306 ) Amounts recognized in the consolidated balance sheets consist of: Noncurrent assets $ — $ — Current liability (1,229 ) (1,086 ) Noncurrent liability (53,152 ) (53,220 ) Net amount recognized $ (54,381 ) $ (54,306 ) Amounts recognized in accumulated other comprehensive loss consist of: Net actuarial loss $ 52,525 $ 51,921 Prior service cost/(credit) 417 359 Net amount recognized (a) $ 52,942 $ 52,280 (a) Amounts do not include deferred taxes of $ 19.4 million and $ 19.7 million at December 31, 2016 and January 2, 2016 , respectively. The amounts included in “Other” in the above table reflect the impact of foreign exchange translation for plans in Argentina, Brazil, Belgium, Canada, France, Germany, Japan, Netherlands and United Kingdom. The Company's domestic pension plan benefits comprise approximately 75% and 76% of the projected benefit obligation for fiscal 2016 and fiscal 2015, respectively. Additionally, the Company has made required and tax deductible discretionary contributions to its domestic pension plans in fiscal 2016 and fiscal 2015 of approximately $ 0.6 million and approximately $ 0.4 million , respectively. The Company made required and tax deductible discretionary contributions to its foreign pension plans in fiscal 2016 and fiscal 2015 of approximately $ 4.7 million and $ 9.2 million , respectively. December 31, 2016 January 2, 2016 Projected benefit obligation $ 189,290 $ 182,276 Accumulated benefit obligation 181,340 171,530 Fair value of plan assets 134,909 127,970 Net pension cost includes the following components (in thousands): December 31, 2016 January 2, 2016 January 3, 2015 Service cost $ 2,549 $ 6,638 $ 5,208 Interest cost 6,950 10,536 13,214 Expected return on plan assets (7,552 ) (12,229 ) (14,439 ) Net amortization and deferral 4,668 5,034 2,094 Curtailment (1,285 ) (1,181 ) 7 Settlement (114 ) (2,353 ) — Net pension cost $ 5,216 $ 6,445 $ 6,084 Amounts recognized in accumulated other comprehensive income (loss) for the year ended (in thousands): 2016 2015 Actuarial (loss)/gain recognized: Reclassification adjustments $ 2,846 $ 3,115 Actuarial (loss)/gain recognized during the period (3,861 ) (2,323 ) Amortization of settlement (69 ) 3,823 Prior service (cost) credit recognized: Reclassification adjustments 24 (31 ) Prior service cost arising during the period — — Amortization of curtailment — (853 ) Other 44 471 $ (1,016 ) $ 4,202 The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic pension cost in fiscal 2017 is as follows (in thousands): 2017 Net actuarial loss $ 4,754 Prior service cost 33 $ 4,787 Weighted average assumptions used to determine benefit obligations were: December 31, 2016 January 2, 2016 January 3, 2015 Discount rate 3.81% 4.13% 2.79% Rate of compensation increase 0.38% 0.31% 1.82% Weighted average assumptions used to determine net periodic benefit cost for the employee benefit pension plans were: December 31, 2016 January 2, 2016 January 3, 2015 Discount rate 3.55% 3.47% 4.15% Rate of increase in future compensation levels 0.84% 0.38% 1.70% Expected long-term rate of return on assets 6.52% 6.62% 5.06% Consideration was made to the long-term time horizon for the (U.S. and Canada's) plans' benefit obligations as well as the related asset class mix in determining the expected long-term rate of return. Historical returns are also considered, over the long-term time horizon, in determining the expected return. Considering the overall asset mix of approximately 60% equity and 40% fixed income with equity exposure on a declining trend since the implementation of the glide path for two of the U.S. plans, the Company believes it is reasonable to expect a long-term rate of return of 6.9% for the (U.S. and Canada's) plans' investments as a whole. The remaining foreign plans' assets are principally invested under insurance contracts arrangements which have weighted average expected long-term rate of returns of 2.7% . The investment objectives have been established in conjunction with a comprehensive review of the current and projected financial requirements. The primary investment objectives are: 1) to have the ability to pay all benefit and expense obligations when due; 2) to maximize investment returns within reasonable and prudent levels of risk in order to minimize contributions; and 3) to maintain flexibility in determining the future level of contributions. Investment results and changing discount rates are the most critical elements in achieving funding objectives; however, contributions are used as a supplemental source of funding as deemed appropriate. The investment guidelines are based upon an investment horizon of greater than ten years; therefore, interim fluctuations are viewed with this perspective. The strategic asset allocation is based on this long-term perspective and the plans' funded status. However, because the participants’ average age is somewhat older than the typical average plan age, consideration is given to retaining some short-term liquidity. Analysis of the cash flow projections of the plans indicates that benefit payments will continue to exceed contributions. The results of a thorough asset-liability study completed during 2012 established a dynamic asset allocation glide path (the “Glide Path”) by which the U.S. plans' asset allocations are determined. The Glide Path designates intervals based on funded status which contain a corresponding allocation to equities/real assets and fixed income. As the U.S. plans' funded status improves, the allocations become more conservative, and the opposite is true when the funded status declines. Fixed Income 35% - 80% Equities 20% - 65% The equity allocation is invested in stocks traded on one of the U.S. stock exchanges or in foreign companies whose stock is traded outside the U.S. and/or companies that conduct the major portion of their business outside the U.S. Securities convertible into such stocks, convertible bonds and preferred stock, may also be purchased. The portfolio may invest in American Depository Receipts (“ADR”). The majority of the equities are invested in mutual funds that are well-diversified among growth and value stocks, as well as large, mid, and small cap assets. This mix is balanced based on the understanding that large cap stocks are historically less volatile than small cap stocks: however, smaller cap stocks have historically outperformed larger cap stocks. The emerging markets portion of the equity allocation is held below 10% due to greater volatility in the asset class. Risk adjusted returns are the primary driver of allocation choices within these asset classes. The portfolio is well-diversified in terms of companies, industries and countries. The diversified asset portion of the allocation will invest in securities with a goal to out pace inflation and preserve their value. The securities in this allocation may consist of inflation-indexed bonds, securities of real estate companies, commodity index-linked notes, fixed-income securities, securities of natural resource companies, master limited partnerships, publicly-listed infrastructure companies, and floating rate debt. All investment objectives are expected to be achieved over a market cycle anticipated to be a period of five to seven years. Reallocations are performed on a monthly basis to retain target allocation ranges. On a quarterly basis the plans' funded status will be recalculated to determine which Glide Path interval allocation is appropriate. The following table presents fair value measurements for the Company's defined benefit plans’ assets as categorized using the fair value hierarchy under FASB authoritative guidance (in thousands): Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (In thousands of dollars) Fair Value (Level 1) (Level 2) (Level 3) Balances as January 2, 2016 Fixed Income: Long Term $ 21,079 $ 21,079 $ — $ — Short Term 1,341 1,341 — — Equity Securities: Domestic equities 34,864 34,864 — — International equities 21,190 21,190 — — Insurance contracts 8,121 — 5,801 2,320 Total categorized in fair value hierarchy 86,595 78,474 5,801 2,320 Other investments measured at NAV 41,375 Totals $ 127,970 $ 78,474 $ 5,801 $ 2,320 Balances as December 31, 2016 Fixed Income: Long Term $ 17,408 $ 17,408 $ — $ — Short Term 2,825 2,825 — — Equity Securities: Domestic equities 41,300 41,300 — — International equities 24,403 24,403 — — Insurance contracts 10,670 — 7,887 2,783 Total categorized in fair value hierarchy 96,606 85,936 7,887 2,783 Other investments measured at NAV 38,303 Totals $ 134,909 $ 85,936 $ 7,887 $ 2,783 The majority of the U.S. and Canada plan pension assets are invested in mutual funds; however, some assets are invested in pooled separate accounts (“PSA”) which have similar mutual fund counterparts. PSA accounts are generally used to access lower fund management expenses when compared to their mutual fund counterparts. The mutual funds are generally invested in institutional shares, retirement shares, or A-shares with no loads. The fair value of each mutual fund and PSA is based on the market value of the underlying investments. The U.S. pension plans PSA for fiscal 2016 utilized net asset value (“NAV”) per share (or its equivalent) to measure its investments, as a practical expedient in accordance with ASC Topic 820, Fair Value Measurements and have not been classified in the fair value hierarchy in the above table. The majority of the foreign pension assets are held under insurance contracts where the investment risk for the accumulated benefit obligation rests with the insurer, which the Company has no specific detailed asset information. The fair value measurement of plan assets using significant unobservable inputs (level 3) changed due to the following: Insurance (in thousands of dollars) Contracts Balance as of January 3, 2015 $ 194,909 Unrealized gains/(losses) relating to instruments still held in the reporting period. (12,601 ) Purchases, sales, and settlements (161,402 ) Exchange rate changes (18,586 ) Balance as of January 2, 2016 2,320 Unrealized gains/(losses) relating to instruments still held in the reporting period. 316 Purchases, sales, and settlements 244 Exchange rate changes (97 ) Balance as of December 31, 2016 $ 2,783 Contributions The Company's funding policy for employee benefit pension plans is to contribute annually not less than the minimum amount required nor more than the maximum amount that can be deducted for federal income tax purposes. Contributions are intended to provide not only for benefits attributed to service to date but also for those expected to be earned in the future. Based on current actuarial estimates, the Company expects to make payments of approximately $ 4.3 million to meet funding requirements for its domestic and foreign pension plans in fiscal 2017 . Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): Year Ending Pension Benefits 2017 $ 9,854 2018 8,438 2019 9,307 2020 9,849 2021 10,931 Years 2022 – 2026 58,887 Multiemployer Pension Plans The Company participates in various multiemployer pension plans which provide defined benefits to certain employees covered by labor contracts in the United States. These plans are not administered by the Company and contributions are determined in accordance with provisions of negotiated labor contracts to meet their pension benefit obligations to their participants. The FASB issued guidance requiring companies to provide additional disclosures related to individually significant multiemployer pension plans. The Company's contributions to each individual multiemployer plan represent less than 5% of the total contributions to each such plan. Based on the most currently available information, the Company has determined that, if a withdrawal were to occur, withdrawal liabilities on two of the plans in which the Company currently participates could be material to the Company. The following table provides more detail on these significant multiemployer plans (contributions in thousands): Expiration Pension EIN Pension Pension Protection Act Zone Status FIP/RP Status Pending/ Contributions Date of Collective Bargaining Fund Plan Number 2016 2015 Implemented 2016 2015 2014 Agreement Western Conference of Teamsters Pension Plan 91-6145047 / 001 Green Green No $ 1,456 $ 1,387 $ 1,384 April 2020 (b) Central States, Southeast and Southwest Areas Pension Plan (a) 36-6044243 / 001 Red Red Yes 934 858 876 August 2018 (c) All other multiemployer plans 983 986 1,042 Total Company Contributions $ 3,373 $ 3,231 $ 3,302 (a) In July 2005 this plan received a 10 year extension from the IRS for amortizing unfunded liabilities. In April 2016 the IRS approved a modification of the amortization extension. (b) The Company has several plants that participate in the Western Conference of Teamsters Pension Plan under collective bargaining agreements that require minimum funding contributions. Certain of these agreements have expired and are being renegotiated with others having expiration dates through April 1, 2020. (c) The Company has several processing plants that participate in the Central States, Southeast and Southwest Areas Pension Plan under collective bargaining agreements that require minimum funding contributions. Certain of these agreements have expired and are being renegotiated with others having expiration dates through August 6, 2018. With respect to the other multiemployer pension plans in which the Company participates and which are not individually significant, six plans have certified as critical or red zone, one plan have certified as endangered or yellow zone, as defined by the Pension Protection Act of 2006. The Company's portion of contributions to all plans amounted to $ 3.4 million , $ 3.2 million and $ 3.3 million for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , respectively. The Company has received notices in prior years of withdrawal liability from two U.S. multiemployer plans in which it participated. As of December 31, 2016 , the Company has an aggregate accrued liability of approximately $ 1.8 million representing the present value of scheduled withdrawal liability payments under these multiemployer plans. While the Company has no ability to calculate a possible current liability for under-funded multiemployer plans that could terminate or could require additional funding under the Pension Protection Act of 2006, the amounts could be material. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES The Company’s operations are exposed to market risks relating to commodity prices that affect the Company’s cost of raw materials, finished product prices and energy costs and the risk of changes in interest rates and foreign currency exchange rates. The Company makes limited use of derivative instruments to manage cash flow risks related natural gas usage, diesel fuel usage, inventory, forecasted sales and foreign currency exchange rates. The Company does not use derivative instruments for trading purposes. Natural gas swaps and options are entered into with the intent of managing the overall cost of natural gas usage by reducing the potential impact of seasonal weather demands on natural gas that increases natural gas prices. Heating oil swaps and options are entered into with the intent of managing the overall cost of diesel fuel usage by reducing the potential impact of seasonal weather demands on diesel fuel that increases diesel fuel prices. Corn options and future contracts are entered into with the intent of managing forecasted sales of BBP by reducing the impact of changing prices. Foreign currency forward contracts are entered into to mitigate the foreign exchange rate risk for transactions designated in a currency other than the local functional currency. At December 31, 2016 , the Company had corn options outstanding that qualified and were designated for hedge accounting as well as corn options and foreign currency forward contracts that did not qualify and were not designated for hedge accounting. Entities are required to report all derivative instruments in the statement of financial position at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, on the reason for holding the instrument. If certain conditions are met, entities may elect to designate a derivative instrument as a hedge of exposures to changes in fair value, cash flows or foreign currencies. If the hedged exposure is a cash flow exposure, the effective portion of the gain or loss on the derivative instrument is reported initially as a component of other comprehensive income (outside of earnings) and is subsequently reclassified into earnings when the forecasted transaction affects earnings. Any amounts excluded from the assessment of hedge effectiveness as well as the ineffective portion of the gain or loss are reported in earnings immediately. If the derivative instrument is not designated as a hedge, the gain or loss is recognized in earnings in the period of change. Cash Flow Hedges In fiscal 2015 and fiscal 2016 , the Company entered into corn option contracts that are considered cash flow hedges. Under the terms of the corn option contracts the Company hedged a portion of it's forecasted sales of BBP into the fourth quarter of fiscal 2017 . As of December 31, 2016 , all fiscal 2015 contracts and some of the fiscal 2016 contracts have settled while the remaining contract positions and activity are disclosed below. From time to time, the Company may enter into corn option contracts in the future. As of December 31, 2016 , the Company had the following outstanding forward contract amounts that were entered into to hedge the future payments of intercompany note transactions, foreign currency transactions in currencies other than the functional currency and forecasted transactions in currencies other than the functional currency. All of these transactions are currently not designated for hedge accounting. (in thousands): Functional Currency Contract Currency Type Amount Type Amount Brazilian real 28,304 Euro 7,270 Brazilian real 66,273 U.S. Dollar 18,900 Euro 150,394 U.S. Dollar 166,377 Euro 10,444 Polish zloty 47,000 Euro 4,295 Japanese yen 505,320 Euro 34,337 Chinese renminbi 254,639 Euro 11,563 Australian dollar 16,700 Euro 1,405 British pound 1,200 Polish zloty 19,111 Euro 4,312 Japanese yen 14,423 U.S. dollar 135 The Company estimates the amount that will be reclassified from accumulated other comprehensive gain at December 31, 2016 into earnings over the next 12 months will be approximately $ 4.0 million . As of December 31, 2016 , no amounts have been reclassified into earnings as a result of the discontinuance of cash flow hedges. The following table presents the fair value of the Company’s derivative instruments as of December 31, 2016 and January 2, 2016 (in thousands): Derivatives Designated Balance Sheet Asset Derivatives Fair Value as Hedges Location December 31, 2016 January 2, 2016 Corn options Other current assets $ 4,235 $ 3,215 Total derivatives designated as hedges $ 4,235 $ 3,215 Derivatives not Designated as Hedges Foreign currency contracts Other current assets $ 8,939 $ 644 Corn options and futures Other current assets 151 599 Total derivatives not designated as hedges $ 9,090 $ 1,243 Total asset derivatives $ 13,325 $ 4,458 Balance Sheet Liability Derivatives Fair Value Location December 31, 2016 January 2, 2016 Derivatives not Designated as Hedges Foreign currency contracts Accrued Expenses $ 608 $ 4,435 Corn options and futures Accrued Expenses 122 2 Total derivatives not designated as hedges $ 730 $ 4,437 Total liability derivatives $ 730 $ 4,437 The effect of the Company's derivative instruments on the consolidated financial statements for the fiscal years ended December 31, 2016 and January 2, 2016 are as follows (in thousands): Derivatives Designated as Cash Flow Hedges Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) (a) Gain or (Loss) Reclassified From Accumulated OCI into Income (Effective Portion) (b) Gain or (Loss) Recognized in Income On Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) (c) 2016 2015 2016 2015 2016 2015 Corn options $ 4,889 $ 4,405 $ 3,868 $ 1,517 $ 331 $ 68 Total $ 4,889 $ 4,405 $ 3,868 $ 1,517 $ 331 $ 68 (a) Amount recognized in accumulated OCI (effective portion) is reported as accumulated other comprehensive gain of approximately $ 4.9 million and approximately $ 4.4 million recorded net of taxes of approximately $ 1.9 million and approximately $ 1.7 million for the year ended December 31, 2016 and January 2, 2016 , respectively. (b) Gains and (losses) reclassified from accumulated OCI into income (effective portion) for interest rate swaps and natural gas swaps is included in interest expense and cost of sales, respectively, in the Company’s consolidated statements of operations. (c) Gains and (losses) recognized in income on derivatives (ineffective portion) for interest rate swaps and natural gas swaps is included in other income/(expense), net in the Company’s consolidated statements of operations. The table below summarizes the effect of derivatives not designated as hedges on the Company's consolidated statements of operations for the year ended December 31, 2016 , January 2, 2016 and January 3, 2015 (in thousands): Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges For The Year Ended Derivatives not designated as hedging instruments Location December 31, 2016 January 2, 2016 January 3, 2015 Foreign exchange Foreign currency loss/(gain) $ (1,542 ) $ (27,321 ) $ (21,162 ) Foreign exchange Selling, general and administrative expense (8,543 ) 7,508 4,652 Corn options and futures Net sales 472 (2 ) — Corn options and futures Cost of sales and operating expenses (1,411 ) (2,067 ) (71 ) Natural gas and heating oil swaps and options Cost of sales and operating expenses — 132 982 Heating oil swaps and options Net sales 455 — — Soybean meal Net sales 7 — — Total $ (10,562 ) $ (21,750 ) $ (15,599 ) At December 31, 2016 , the Company had forward purchase agreements in place for purchases of approximately $ 9.8 million of natural gas and diesel fuel. These forward purchase agreements have no net settlement provisions and the Company intends to take physical delivery. Accordingly, the forward purchase agreements are not subject to the requirements of fair value accounting because they qualify as normal purchases as defined. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT FASB authoritative guidance which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements including guidance related to nonrecurring measurements of nonfinancial assets and liabilities. The following tables presents the Company's financial instruments that are measured at fair value on a recurring and nonrecurring basis as of December 31, 2016 and January 2, 2016 and are categorized using the fair value hierarchy under FASB authoritative guidance. The fair value hierarchy has three levels based on the reliability of the inputs used to determine the fair value. Fair Value Measurements at December 31, 2016 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (In thousands of dollars) Total (Level 1) (Level 2) (Level 3) Assets Derivative assets $ 13,325 $ — $ 13,325 $ — Total Assets 13,325 — 13,325 — Liabilities Derivative liabilities 730 — 730 — 5.375% Senior Notes 520,300 — 520,300 — 4.75% Senior Notes 575,111 — 575,111 — Term Loan A 120,403 — 120,403 — Term Loan B 593,347 — 593,347 — Revolver 5,201 — 5,201 — Total Liabilities $ 1,815,092 $ — $ 1,815,092 $ — Fair Value Measurements at January 2, 2016 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (In thousands of dollars) Total (Level 1) (Level 2) (Level 3) Assets Derivative assets $ 4,458 $ — $ 4,458 $ — Total Assets 4,458 — 4,458 — Liabilities Derivative liabilities 4,437 — 4,437 — 5.375% Senior Notes 495,000 — 495,000 — 4.75% Senior Notes 541,280 — 541,280 — Term Loan A 277,874 — 277,874 — Term Loan B 577,710 — 577,710 — Revolver 9,218 — 9,218 — Total Liabilities $ 1,905,519 $ — $ 1,905,519 $ — Derivative assets consist of the Company's heating oil option contracts, corn option contracts and foreign currency contracts, which represents the difference between the observable market rates of commonly quoted intervals for similar assets and liabilities in active markets and the fixed swap and option rate considering the instruments term, notional amount and credit risk. See Note 16 Derivatives for breakdown by instrument type. Derivative liabilities consist of the Company's heating oil swap contracts and corn option contracts, which represent the difference between the observable market rates of commonly quoted intervals for similar assets and liabilities in active markets and the fixed swap rate considering the instrument’s term, notional amount and credit risk. See Note 16 Derivatives for breakdown by instrument type. The carrying amount of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximates fair value due to the short maturity of these instruments and as such have been excluded from the table above. The carrying amount for the Company's other debt is not deemed to be significantly different than the fair value and all other instruments have been recorded at fair value. The fair value of the senior notes, term loan A, term loan B and revolver debt is based on market quotation from third-party banks. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2016 | |
CONCENTRATION OF CREDIT RISK [Abstract] | |
CONCENTRATION OF CREDIT RISK | CONCENTRATION OF CREDIT RISK Concentration of credit risk is limited due to the Company's diversified customer base and the fact that the Company sells commodities. No single customer accounted for more than 10% of the Company’s net sales in fiscal years 2016 , 2015 and 2014 . |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Contingencies [Abstract] | |
CONTINGENCIES | CONTINGENCIES The Company is a party to various lawsuits, claims and loss contingencies arising in the ordinary course of its business, including insured worker's compensation, auto, and general liability claims, assertions by certain regulatory and governmental agencies related to permitting requirements and/or air, wastewater and storm water discharges from the Company's processing facilities, litigation involving tort, contract, statutory, labor, employment, and other claims, and tax matters. The Company’s workers compensation, auto and general liability policies contain significant deductibles or self-insured retentions. The Company estimates and accrues its expected ultimate claim costs related to accidents occurring during each fiscal year under these insurance policies and carries this accrual as a reserve until these claims are paid by the Company. As a result of the matters discussed above, the Company has established loss reserves for insurance, environmental, litigation and tax contingencies. At December 31, 2016 and January 2, 2016 , the reserves for insurance, environmental, litigation and tax contingencies reflected on the balance sheet in accrued expenses and other non-current liabilities were approximately $ 51.9 million and $ 54.6 million , respectively. The Company has insurance recovery receivables of approximately $ 15.9 million and $ 12.2 million , as of December 31, 2016 and January 2, 2016 , related to the insurance contingencies. The Company's management believes these reserves for contingencies are reasonable and sufficient based upon present governmental regulations and information currently available to management; however, there can be no assurance that final costs related to these contingencies will not exceed current estimates. The Company believes that the likelihood is remote that any additional liability from the lawsuits and claims that may not be covered by insurance would have a material effect on the Company's financial position, results of operations or cash flows. Lower Passaic River Area . In December 2009, the Company, along with numerous other entities, received notice from the United States Environmental Protection Agency (“EPA”) that the Company (as successor-in-interest to Standard Tallow Company) is considered a potentially responsible party (a “PRP”) with respect to alleged contamination in the lower Passaic River area which is part of the Diamond Alkali Superfund Site located in Newark, New Jersey. The Company’s designation as a PRP is based upon the operation of a former plant site located in Newark, New Jersey by Standard Tallow Company, an entity that the Company acquired in 1996. In the letter, EPA requested that the Company join a group of other parties in funding a remedial investigation and feasibility study at the site. As of the date of this report, the Company has not agreed to participate in the funding group. In March 2016, the Company received another letter from EPA notifying the Company that it had issued a Record of Decision selecting a remedy for the lower 8.3 miles of the lower Passaic River area at an estimated cost of $ 1.38 billion . The EPA letter makes no demand on the Company and lays out a framework for remedial design/remedial action implementation in which the EPA will first seek funding from major PRPs. The letter indicates that the EPA has sent the letter to over 100 parties, which include large chemical and refining companies, manufacturing companies, foundries, plastic companies, pharmaceutical companies and food and consumer product companies. The Company's ultimate liability, if any, for investigatory costs, remedial costs and/or natural resource damages in connection with the lower Passaic River area cannot be determined at this time; however, as of the date of this report, the Company has found no evidence that the former Standard Tallow Company plant site contributed any of the primary contaminants of concern to the Passaic River and, therefore, there is nothing that leads the Company to believe that this matter will have a material effect on the Company's financial position, results of operations or cash flows. Fresno Facility Permit Issue. The Company has been named as a defendant and a real party in interest in a lawsuit filed on April 9, 2012 in the Superior Court of the State of California, Fresno County, styled Concerned Citizens of West Fresno vs. Darling International Inc. The complaint, as subsequently amended, alleges that the Company's Fresno facility is operating without a proper use permit and seeks, among other things, injunctive relief. The complaint had at one time also alleged that the Company's Fresno facility constitutes a continuing private and public nuisance, but the plaintiff has since amended the complaint to drop these allegations. The City of Fresno was also named as a defendant in the original complaint but has since had a judgment entered in its favor and is no longer a defendant in the lawsuit; however, in December 2013 the City of Fresno filed a motion to intervene as a plaintiff in this matter. The Superior Court heard the motion on February 4, 2014, and entered an order on February 18, 2014 denying the motion. Rendering operations have been conducted on the site since 1955, and the Company believes that it possesses all of the required federal, state and local permits to continue to operate the facility in the manner currently conducted and that its operations do not constitute a private or public nuisance. Accordingly, the Company intends to defend itself vigorously in this matter. Discovery has begun and this matter was scheduled for trial in July 2014; however, the parties have agreed to stay the litigation while they participate in a mediation process, which remains ongoing. While management cannot predict the ultimate outcome of this matter, management does not believe the outcome will have a material effect on the Company's financial condition, results of operations or cash flows. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS The Company sells its products domestically and internationally and operates within three industry segments: Feed Ingredients, Food Ingredients and Fuel Ingredients. The measure of segment profit (loss) 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. 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. Feed Ingredients Feed Ingredients consists principally of (i) the Company's U.S. ingredients business, including the Company's used cooking oil, trap grease and food residuals collection businesses, the Rothsay ingredients business, and the ingredients and specialty products businesses conducted by Darling Ingredients International under the Sonac name (proteins, fats, technical fats and blood plasma products) and (ii) the Company's bakery residuals business. Feed Ingredients operations process animal by-products and used cooking oil into fats, protein and hides. Food Ingredients Food Ingredients consists principally of (i) the gelatin and hydrolyzed 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 biofuel business conducted under the Dar Pro® and Rothsay names (ii) the bioenergy business conducted by Darling Ingredients International under the Ecoson and Rendac names and (iii) the Company's investment in the DGD Joint Venture. Business Segments (in thousands): Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Fiscal Year Ended December 31, 2016 Net Sales $ 2,089,145 $ 1,061,912 $ 247,058 $ — $ 3,398,115 Cost of sales and operating expenses 1,624,858 834,410 182,466 — 2,641,734 Gross Margin 464,287 227,502 64,592 — 756,381 Selling, general and administrative expense 169,648 96,170 6,895 41,292 314,005 Acquisition costs — — — 401 401 Depreciation and amortization 178,845 70,120 28,531 12,412 289,908 Segment operating income/(loss) 115,794 61,212 29,166 (54,105 ) 152,067 Equity in net income of unconsolidated subsidiaries 467 — 69,912 — 70,379 Segment income 116,261 61,212 99,078 (54,105 ) 222,446 Total other expense (99,907 ) Income before income taxes $ 122,539 Segment assets at December 31, 2016 $ 2,464,509 $ 1,414,409 $ 657,637 $ 161,462 $ 4,698,017 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Fiscal Year Ended January 2, 2016 Net Sales $ 2,074,333 $ 1,094,918 $ 228,195 $ — $ 3,397,446 Cost of sales and operating expenses 1,613,402 863,562 177,061 — 2,654,025 Gross Margin 460,931 231,356 51,134 — 743,421 Selling, general and administrative expense 178,624 103,301 7,264 33,385 322,574 Acquisition costs — — — 8,299 8,299 Depreciation and amortization 165,854 66,817 26,711 10,522 269,904 Segment operating income/(loss) 116,453 61,238 17,159 (52,206 ) 142,644 Equity in net income of unconsolidated subsidiaries 1,521 — 71,895 — 73,416 Segment income 117,974 61,238 89,054 (52,206 ) 216,060 Total other expense (117,280 ) Income before income taxes $ 98,780 Segment assets at January 2, 2016 $ 2,438,869 $ 1,448,014 $ 631,968 $ 241,768 $ 4,760,619 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Fiscal Year Ended January 3, 2015 Net Sales $ 2,421,462 $ 1,248,352 $ 286,629 $ — $ 3,956,443 Cost of sales and operating expenses 1,864,835 1,029,488 228,848 — 3,123,171 Gross Margin 556,627 218,864 57,781 — 833,272 Selling, general and administrative expense 205,484 118,716 8,596 41,784 374,580 Acquisition costs — — — 24,667 24,667 Depreciation and amortization 158,871 73,274 27,898 9,474 269,517 Segment operating income/(loss) 192,272 26,874 21,287 (75,925 ) 164,508 Equity in net income of unconsolidated subsidiaries 1,842 — 63,767 — 65,609 Segment income 194,114 26,874 85,054 (75,925 ) 230,117 Total other expense (148,665 ) Income before income taxes $ 81,452 Business Segment Property, Plant and Equipment (in thousands): December 31, 2016 January 2, 2016 January 3, 2015 Depreciation and amortization: Feed Ingredients $ 178,845 $ 165,854 $ 158,871 Food Ingredients 70,120 66,817 73,274 Fuel Ingredients 28,531 26,711 27,898 Corporate Activities 12,412 10,522 9,474 Total $ 289,908 $ 269,904 $ 269,517 Capital expenditures: Feed Ingredients $ 167,313 $ 153,894 $ 135,923 Food Ingredients 50,020 49,066 61,657 Fuel Ingredients 22,323 19,478 21,392 Corporate Activities 3,867 7,410 9,946 Total (a) $ 243,523 $ 229,848 $ 228,918 (a) Excludes the immaterial capital assets acquired in fiscal 2016 and fiscal 2015 and the VION Acquisition and Custom Blenders acquisition in fiscal 2014 of approximately $ 984.2 million . Geographic Area Net Trade Revenues (in thousands): December 31, 2016 January 2, 2016 January 3, 2015 North America $ 1,817,659 $ 1,951,421 $ 2,131,978 Europe 1,225,397 1,066,779 1,438,320 China 218,480 234,978 229,876 South America 61,276 68,226 73,241 Other 75,303 76,042 83,028 Total $ 3,398,115 $ 3,397,446 $ 3,956,443 The Company attributes revenues from external customers to individual foreign countries based on the origin of the Company's shipments. Long-lived assets related to the Company's operations in North America, Europe, China, South American and other were as follows (in thousands): FY 2016 FY 2015 Long-Lived Assets Long-Lived Assets North America $ 2,411,489 $ 2,375,919 Europe 1,158,087 1,215,341 China 152,150 169,832 South America 74,837 60,396 Other 8,152 7,343 Total $ 3,804,715 $ 3,828,831 |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED AND IN THOUSANDS EXCEPT PER SHARE AMOUNTS) | QUARTERLY FINANCIAL DATA (UNAUDITED AND IN THOUSANDS EXCEPT PER SHARE AMOUNTS): Year Ended December 31, 2016 First Quarter (a) Second Quarter (a) Third Quarter Fourth Quarter (b) Net sales $ 779,641 $ 877,341 $ 853,856 $ 887,277 Operating income 26,692 54,467 35,528 35,380 Income from operations before income taxes 4,526 41,974 28,146 47,893 Net income 2,663 33,991 28,890 41,680 Net (income)/loss attributable to minority interests (1,584 ) (1,992 ) (196 ) (1,139 ) Net income/(loss) attributable to Darling 1,079 31,999 28,694 40,541 Basic earnings per share 0.01 0.19 0.17 0.25 Diluted earnings per share 0.01 0.19 0.17 0.25 (a) Included in net income are $ 0.3 million in integration costs in the first quarter of fiscal 2016, $ 0.1 million in integration costs in the second quarter of fiscal 2016 primarily relating to the integration of the Company's Canadian subsidiary Rothsay (“Rothsay”). (b) Included in net income is approximately $ 5.6 million related to a recorded insurance settlement gain in the Netherlands relating to a December 2015 casualty fire. Year Ended January 2, 2016 First Quarter (c) Second Quarter (c), (d) Third Quarter (c) Fourth Quarter (c), (d) Net sales $ 874,694 $ 859,315 $ 853,762 $ 809,675 Operating income 31,825 39,292 38,808 32,719 Income from operations before income taxes 3,939 9,602 502 84,737 Net income 1,824 4,937 (7,357 ) 85,875 Net (income)/loss attributable to minority interests (1,715 ) (1,857 ) (1,730 ) (1,446 ) Net income/(loss) attributable to Darling 109 3,080 (9,087 ) 84,429 Basic earnings per share — 0.02 (0.06 ) 0.51 Diluted earnings per share — 0.02 (0.06 ) 0.51 (c) Included in net income are $ 5.3 million in integration costs in the first quarter of fiscal 2015, $ 1.2 million in integration costs in the second quarter of fiscal 2015, $ 1.3 million in integration costs in the third quarter of fiscal 2015 and $ 0.5 million in the fourth quarter of fiscal 2015 primarily relating to the integration of Darling Ingredients International and Rothsay. (d) Included in net income in the second quarter of fiscal 2015 is approximately $ 10.6 million for the write-off of deferred loan costs resulting from the payoff of the Euro Term Loan B. Additionally, included in net income for the fourth quarter of fiscal 2015 were the Company's portion of all blenders tax credit recorded by the DGD Joint Venture and the Company's other processing facilities, which amounted to approximately$ 85.4 million . |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | RELATED PARTY TRANSACTIONS Raw Material Agreement The Company has entered into a Raw Material Agreement with the DGD Joint Venture pursuant to which the Company will offer to supply certain animal fats and used cooking oil at market prices, up to the DGD Joint Venture's full operational requirement of feedstock, but the DGD Joint Venture is not obligated to purchase the raw material offered by the Company. Additionally, the Company may offer other feedstocks to the DGD Joint Venture, such as inedible corn oil, purchased on a resale basis. For the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , the Company has recorded sales to the DGD Joint Venture of approximately $ 150.5 million , $ 158.7 million and $ 159.8 million , respectively. At December 31, 2016 and January 2, 2016 , the Company has approximately $ 6.3 million and $ 5.1 million in outstanding receivables due from the DGD Joint Venture, respectively. In addition, the Company has eliminated additional sales of approximately $ 4.1 million , $ 5.0 million and $ 5.1 million for the year ended December 31, 2016 , January 2, 2016 and January 3, 2015 , respectively to the DGD Joint Venture and deferred the Company's portion of profit on those sales relating to inventory assets still remaining on the DGD Joint Venture's balance sheet at December 31, 2016 , January 2, 2016 and January 3, 2015 of approximately $ 0.7 million , $ 0.8 million and $ 1.3 million , respectively. Revolving Loan Agreement On February 23, 2015, Darling through its wholly owned subsidiary Darling Green Energy LLC, (“Darling Green”) and a third party Diamond Alternative Energy, LLC (“Diamond Alternative” and together with Darling Green, the “DGD Lenders”) entered into a revolving loan agreement (the “DGD Loan Agreement”) with the DGD Joint Venture Opco. The DGD Lenders have committed to make loans available to Opco in the total amount of $ 10.0 million with each lender committed to $ 5.0 million of the total commitment. Any borrowings by Opco under the DGD Loan Agreement are at the applicable annum rate equal to the sum of (a) the LIBO Rate (meaning Reuters BBA Libor Rates Page 3750) on such day plus (b) 2.50% . The DGD Loan Agreement matures on December 31, 2017, unless extended by agreement of the parties. The Opco borrowed and repaid $ 2.5 million and $ 3.5 million in fiscal 2016 and fiscal 2015, respectively plus an insignificant amount of interest to Darling Green. As of December 31, 2016, no amounts are owed to Darling Green under the DGD Loan Agreement. |
New Accounting Pronoucements
New Accounting Pronoucements | 12 Months Ended |
Dec. 31, 2016 | |
New Accounting Pronoucements [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS In January 2017, the FASB issued ASU No. 2017-04 Simplifying the Test for Goodwill Impairment. This ASU amends Topic 350, Intangibles-Goodwill and Other , which will simplify the goodwill impairment calculation by eliminating Step 2 from the current goodwill impairment test. Under the new guidance, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The ASU eliminates existing guidance that requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of the assets and liabilities as if that reporting unit had been acquired in a business combination. This ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The Company is currently evaluating the impact of this standard. In January 2017, the FASB issued ASU No. 2017-01, Clarifying the Definition of a Business. This ASU amends Topic 805, Business Combinations , which narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. This ASU requires an entity to evaluate if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities (collectively, the set) is not a business. In order to be considered a business, the set would need to include an input and a substantive process that together significantly contribute to the ability to create outputs. This ASU is effective for fiscal year beginning after December 15, 2017 and interim periods within those fiscal years. The Company is currently evaluating the impact of this standard. In November 2016, the FASB issued ASU No. 2016-18, Restricted Cash. This ASU amends Topic 230, Statement of Cash Flows , which includes new guidance on the classification and presentation of restricted cash in the statement of cash flows in order to eliminate the discrepancies that currently exist in how companies present these changes. This ASU requires restricted cash to be included with cash and cash equivalents when explaining the changes in cash in the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The Company is currently evaluating the impact of this standard. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. This ASU amends Topic 230, Statement of Cash Flows, which is intended to reduce the existing diversity in practice for classifying various types of cash flows including debt extinguishment costs, zero-coupon debt, contingent consideration related to business combinations, insurance proceeds, equity method distributions and beneficial interest in securitizations. This ASU is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The Company is currently evaluating the impact of this standard. In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. This ASU amends Topic 718, Compensation - Stock Compensation , which simplifies several aspects of the accounting for share-based payments, including immediate recognition of all excess tax benefits and deficiencies in the income statement, changing the threshold to qualify for equity classification up to the employee' maximum statutory tax rates, allowing an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur, and clarifying the classification on the statement of cash flows for the excess tax benefit and employee taxes paid when an employer withholds shares for tax-withholding purposes. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The ASU is effective January 1, 2017. The initial adoption of this ASU is not expected to have a material impact on the Company's consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-07, Simplifying the Transition to the Equity Method of Accounting. This ASU amends Topic 323, Investments - Equity Method and Joint Venture , which eliminates the requirements to retrospectively apply equity method accounting when an entity increases ownership or influence in a previously held investment. The ASU is effective for fiscal years beginning after December 15, 2016 and for interim periods therein. The adoption of this standard will not have a material impact on the Company's consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (topic 842). Under the new ASU, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance lessor accounting is largely unchanged. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. This ASU is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. The Company is assessing the impact of this new standard, specifically on its consolidated balance sheets, and does not expect adoption to significantly change the recognition, measurement or presentation of lease expense within the consolidated statements of operations or cash flows. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory. This ASU amends Topic 330, Inventory . The ASU simplifies the measurement of inventory by requiring certain inventory to be measured at the lower of cost and net realizable value. The ASU is effective for financial statements issued for fiscal years beginning after December 15, 2016 and for interim periods therein. The adoption of this standard will not have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which will supersede nearly all existing revenue recognition guidance under GAAP. The new ASU introduces a new five-step revenue recognition model in which an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this ASU requires disclosures sufficient to enable the users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. In July 2015, the FASB deferred the elective date of the standard by one year. This ASU allows for either full retrospective or modified retrospective adoption and will become effective for the Company for the fiscal years beginning after December 15, 2017. The Company has substantially completed its assessment of this ASU to identify any potential changes in the amount and timing of revenue recognition for its current contracts and the expected impact on the Company's business processes, systems and controls. Based on this initial assessment, except for possible income statement reclassifications, the Company does not expect the adoption of ASU No. 2014-09 to have a material impact on the Company's operations, cash flows and financial position. The Company is currently evaluating ASU No. 2014-09 to determine the transition method to utilize at adoption and any additional disclosures required. |
Guarantor Financial Information
Guarantor Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Guarantor Financial Information [Abstract] | |
GUARANTOR FINANCIAL INFORMATION | GUARANTOR FINANCIAL INFORMATION The Company's 5.375% Notes and 4.75% Notes (see Note 10) are guaranteed on a senior unsecured basis by the following Notes Guarantors, each of which is a 100% directly or indirectly owned subsidiary of Darling and which constitute all of Darling's existing restricted subsidiaries that are Credit Agreement Guarantors (other than Darling's foreign subsidiaries, Darling Global Finance B.V., which issued the 4.75% Notes and is discussed further below, or any receivables entity): Darling National, Griffin and its subsidiary Craig Protein, Darling AWS LLC, Terra Holding Company, Darling Global Holdings Inc., Darling Northstar LLC, TRS, EV Acquisition, Inc., Rousselot Inc., Rousselot Dubuque Inc., Sonac USA LLC and Rousselot Peabody Inc. In addition, the 4.75% Notes, which were issued by Darling Global Finance B.V., a wholly-owned indirect subsidiary of Darling, are guaranteed on a senior unsecured basis by Darling. The Notes Guarantors, and Darling in the case of the 4.75% Notes, fully and unconditionally guaranteed the 5.375% Notes and 4.75% Notes on a joint and several basis. The following financial statements present condensed consolidating financial data for (i) Darling, (ii) the combined Notes Guarantors, (iii) the combined other subsidiaries of the Company that did not guarantee the 5.375% Notes or the 4.75% Notes (the “Non-guarantors”), and (iv) eliminations necessary to arrive at the Company's consolidated financial statements, which include condensed consolidated balance sheets as of December 31, 2016 and January 2, 2016 , and the condensed consolidating statements of operations, the condensed consolidating statements of comprehensive income and the condensed consolidating statements of cash flows for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 . Separate financial information is not presented for Darling Global Finance B.V. since it was formed as a special purpose finance subsidiary for the purpose of issuing the 4.75% Notes and therefore does not have any substantial operations or assets. Condensed Consolidating Balance Sheet As of December 31, 2016 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated ASSETS Cash and cash equivalents $ 1,470 $ 5,754 $ 107,340 $ — $ 114,564 Restricted cash 103 — 190 — 293 Accounts receivable 39,209 97,220 339,251 (87,283 ) 388,397 Inventories 16,573 85,890 228,352 — 330,815 Income taxes refundable 3,566 — 3,913 — 7,479 Prepaid expenses 11,152 2,769 16,063 — 29,984 Other current assets 5,859 3,165 19,221 (6,475 ) 21,770 Total current assets 77,932 194,798 714,330 (93,758 ) 893,302 Investment in subsidiaries 4,296,200 1,154,398 909,263 (6,359,861 ) — Property, plant and equipment, net 233,456 497,312 784,807 — 1,515,575 Intangible assets, net 13,746 291,724 406,457 — 711,927 Goodwill 21,860 549,960 654,073 — 1,225,893 Investment in unconsolidated subsidiaries 1,438 — 291,279 — 292,717 Other assets 36,063 396,222 160,505 (549,177 ) 43,613 Deferred income taxes — — 14,990 — 14,990 $ 4,680,695 $ 3,084,414 $ 3,935,704 $ (7,002,796 ) $ 4,698,017 LIABILITIES AND STOCKHOLDERS’ EQUITY Current portion of long-term debt $ 4,220 $ — $ 25,502 $ (6,475 ) $ 23,247 Accounts payable 116,075 18,142 130,718 (84,040 ) 180,895 Income taxes payable (383 ) 373 4,923 — 4,913 Accrued expenses 86,581 33,834 125,624 (3,243 ) 242,796 Total current liabilities 206,493 52,349 286,767 (93,758 ) 451,851 Long-term debt, net of current portion 1,109,523 — 1,167,349 (549,176 ) 1,727,696 Other noncurrent liabilities 63,072 — 33,042 — 96,114 Deferred income taxes 140,543 — 205,591 — 346,134 Total liabilities 1,519,631 52,349 1,692,749 (642,934 ) 2,621,795 Total stockholders' equity 3,161,064 3,032,065 2,242,955 (6,359,862 ) 2,076,222 $ 4,680,695 $ 3,084,414 $ 3,935,704 $ (7,002,796 ) $ 4,698,017 Condensed Consolidating Balance Sheet As of January 2, 2016 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated ASSETS Cash and cash equivalents $ 3,443 $ 3,993 $ 149,448 $ — $ 156,884 Restricted cash 102 — 229 — 331 Accounts receivable 184,472 81,644 310,932 (205,656 ) 371,392 Inventories 13,564 89,078 241,941 — 344,583 Income taxes refundable 7,695 — 4,268 — 11,963 Prepaid expenses 13,322 2,262 20,591 — 36,175 Other current assets 5,273 24 22,852 (17,689 ) 10,460 Total current assets 227,871 177,001 750,261 (223,345 ) 931,788 Investment in subsidiaries 4,072,855 1,141,644 837,604 (6,052,103 ) — Property, plant and equipment, net 224,208 477,446 806,513 — 1,508,167 Intangible assets, net 17,794 326,231 438,324 — 782,349 Goodwill 21,860 549,690 661,552 — 1,233,102 Investment in unconsolidated subsidiary — — 247,238 — 247,238 Other assets 36,488 499,764 314,893 (809,522 ) 41,623 Deferred income taxes — — 16,352 — 16,352 $ 4,601,076 $ 3,171,776 $ 4,072,737 $ (7,084,970 ) $ 4,760,619 LIABILITIES AND STOCKHOLDERS’ EQUITY Current portion of long-term debt $ 20,328 $ — $ 42,527 $ (17,689 ) $ 45,166 Accounts payable 6,981 210,926 122,136 (190,045 ) 149,998 Income tax payable (383 ) 373 6,689 — 6,679 Accrued expenses 82,854 29,037 143,547 (15,613 ) 239,825 Total current liabilities 109,780 240,336 314,899 (223,347 ) 441,668 Long-term debt, net of current portion 1,234,002 — 1,461,371 (809,522 ) 1,885,851 Other noncurrent liabilities 57,578 1,999 38,232 — 97,809 Deferred income taxes 147,416 — 213,265 — 360,681 Total liabilities 1,548,776 242,335 2,027,767 (1,032,869 ) 2,786,009 Total stockholders' equity 3,052,300 2,929,441 2,044,970 (6,052,101 ) 1,974,610 $ 4,601,076 $ 3,171,776 $ 4,072,737 $ (7,084,970 ) $ 4,760,619 Condensed Consolidating Statements of Operations For the year ended December 31, 2016 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 501,856 $ 1,341,925 $ 1,752,844 $ (198,510 ) $ 3,398,115 Cost and expenses: Cost of sales and operating expenses 392,876 1,085,582 1,361,786 (198,510 ) 2,641,734 Selling, general and administrative expenses 130,573 51,029 132,403 — 314,005 Depreciation and amortization 41,106 105,261 143,541 — 289,908 Acquisition and integration costs — — 401 — 401 Total costs and expenses 564,555 1,241,872 1,638,131 (198,510 ) 3,246,048 Operating income (62,699 ) 100,053 114,713 — 152,067 Interest expense (60,971 ) 17,492 (50,708 ) — (94,187 ) Foreign currency gains/(losses) 122 (283 ) (1,693 ) — (1,854 ) Other income/(expense), net (13,538 ) 106 9,566 — (3,866 ) Equity in net income of unconsolidated subsidiaries (1,236 ) — 71,615 — 70,379 Earnings in investments in subsidiaries 223,347 — — (223,347 ) — Income/(loss) from operations before taxes 85,025 117,368 143,493 (223,347 ) 122,539 Income taxes (benefit) (17,288 ) 14,669 17,934 — 15,315 Net (income)/loss attributable to noncontrolling interests — — (4,911 ) — (4,911 ) Net income/(loss) attributable to Darling $ 102,313 $ 102,699 $ 120,648 $ (223,347 ) $ 102,313 Condensed Consolidating Statements of Operations For the year ended January 2, 2016 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 475,213 $ 1,363,279 $ 1,759,800 $ (200,846 ) $ 3,397,446 Cost and expenses: Cost of sales and operating expenses 369,928 1,108,864 1,376,079 (200,846 ) 2,654,025 Selling, general and administrative expenses 122,509 55,691 144,374 — 322,574 Depreciation and amortization 34,889 98,400 136,615 — 269,904 Acquisition and integration costs 3,177 — 5,122 — 8,299 Total costs and expenses 530,503 1,262,955 1,662,190 (200,846 ) 3,254,802 Operating income (55,290 ) 100,324 97,610 — 142,644 Interest expense (60,945 ) 18,839 (63,424 ) — (105,530 ) Foreign currency gains/(losses) (123 ) (1,649 ) (3,139 ) — (4,911 ) Other income/(expense), net (22,455 ) 435 15,181 — (6,839 ) Equity in net income of unconsolidated subsidiaries — — 73,416 — 73,416 Earnings in investments in subsidiaries 198,371 — — (198,371 ) — Income/(loss) from operations before taxes 59,558 117,949 119,644 (198,371 ) 98,780 Income taxes (benefit) (18,973 ) 16,121 16,353 — 13,501 Net (income)/loss attributable to noncontrolling interests — — (6,748 ) — (6,748 ) Net income/(loss) attributable to Darling $ 78,531 $ 101,828 $ 96,543 $ (198,371 ) $ 78,531 Condensed Consolidating Statements of Operations For the year ended January 3, 2015 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 557,316 $ 1,620,054 $ 2,063,310 $ (284,237 ) $ 3,956,443 Cost and expenses: Cost of sales and operating expenses 421,883 1,330,038 1,655,487 (284,237 ) 3,123,171 Selling, general and administrative expenses 145,258 54,070 175,252 — 374,580 Depreciation and amortization 31,183 83,957 154,377 — 269,517 Acquisition costs 20,410 — 4,257 — 24,667 Total costs and expenses 618,734 1,468,065 1,989,373 (284,237 ) 3,791,935 Operating income (61,418 ) 151,989 73,937 — 164,508 Interest expense (97,912 ) 21,231 (58,554 ) (181 ) (135,416 ) Foreign currency gains/(losses) (12,244 ) (417 ) (887 ) — (13,548 ) Other income/(expense), net (3,717 ) (19 ) 3,854 181 299 Equity in net income of unconsolidated subsidiary — — 65,609 — 65,609 Earnings in investments in subsidiaries 223,790 — — (223,790 ) — Income/(loss) from operations before taxes 48,499 172,784 83,959 (223,790 ) 81,452 Income taxes (benefit) (15,716 ) 17,534 11,323 — 13,141 Net (income)/loss attributable to noncontrolling interests — — (4,096 ) — (4,096 ) Net income/(loss) attributable to Darling $ 64,215 $ 155,250 $ 68,540 $ (223,790 ) $ 64,215 Condensed Consolidating Statements of Comprehensive Income/(Loss) For the year ended December 31, 2016 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income $ 107,224 $ 102,699 $ 120,648 $ (223,347 ) $ 107,224 Other comprehensive income/(loss), net of tax: Foreign currency translation — — (5,593 ) — (5,593 ) Pension adjustments 1,766 — (2,782 ) — (1,016 ) Corn option derivative adjustments 625 — — — 625 Total other comprehensive income, net of tax 2,391 — (8,375 ) — (5,984 ) Total comprehensive income/(loss) 109,615 102,699 112,273 (223,347 ) 101,240 Comprehensive income attributable to noncontrolling interests — — 3,015 — $ 3,015 Comprehensive income/(loss) attributable to Darling $ 109,615 $ 102,699 $ 109,258 $ (223,347 ) $ 98,225 Condensed Consolidating Statements of Comprehensive Income/(Loss) For the year ended January 2, 2016 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income $ 85,279 $ 101,828 $ 96,543 $ (198,371 ) $ 85,279 Other comprehensive income (loss), net of tax: Foreign currency translation — — (162,436 ) — (162,436 ) Pension adjustments 83 109 4,010 — 4,202 Corn option derivative adjustments 1,767 — — — 1,767 Total other comprehensive income, net of tax 1,850 109 (158,426 ) — (156,467 ) Total comprehensive income (loss) $ 87,129 $ 101,937 $ (61,883 ) $ (198,371 ) $ (71,188 ) Comprehensive income attributable to noncontrolling interests — — 9,139 — 9,139 Comprehensive income/(loss) attributable to Darling $ 87,129 $ 101,937 $ (71,022 ) $ (198,371 ) $ (80,327 ) Condensed Consolidating Statements of Comprehensive Income/(Loss) For the year ended January 3, 2015 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income $ 68,311 $ 155,250 $ 68,540 $ (223,790 ) $ 68,311 Other comprehensive income (loss), net of tax: Foreign currency translation — — (119,684 ) — (119,684 ) Pension adjustments (11,844 ) (34 ) (8,503 ) — (20,381 ) Natural gas swap derivative adjustments (113 ) — — — (113 ) Corn option derivative adjustments (1,259 ) — — — (1,259 ) Total other comprehensive income, net of tax (13,216 ) (34 ) (128,187 ) — (141,437 ) Total comprehensive income (loss) $ 55,095 $ 155,216 $ (59,647 ) $ (223,790 ) $ (73,126 ) Comprehensive income attributable to noncontrolling interests — — 10,296 — 10,296 Comprehensive income/(loss) attributable to Darling $ 55,095 $ 155,216 $ (69,943 ) $ (223,790 ) $ (83,422 ) Condensed Consolidating Statements of Cash Flows For the year ended December 31, 2016 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Cash flows from operating activities: Net income $ 107,224 $ 102,699 $ 120,648 $ (223,347 ) $ 107,224 Earnings in investments in subsidiaries (223,347 ) — — 223,347 — Other operating cash flows 317,040 (100,970 ) 67,742 — 283,812 Net cash provided/(used) by operating activities 200,917 1,729 188,390 — 391,036 Cash flows from investing activities: Capital expenditures (51,330 ) (91,340 ) (100,853 ) — (243,523 ) Acquisitions, net of cash acquired — — (8,511 ) — (8,511 ) Investment in subsidiaries and affiliates — (12,754 ) — 12,754 — Note receivable from affiliates — 103,056 (103,056 ) — — Gross proceeds from sale of property, plant and equipment and other assets 2,784 1,070 3,475 — 7,329 Proceeds from insurance settlements — — 1,537 — 1,537 Payments related to routes and other intangibles — — (23 ) — (23 ) Net cash provide/(used) in investing activities (48,546 ) 32 (207,431 ) 12,754 (243,191 ) Cash flows from financing activities: Proceeds from long-term debt — — 36,327 — 36,327 Payments on long-term debt (143,935 ) — (60,493 ) — (204,428 ) Borrowings from revolving credit facility 94,000 — 5,276 — 99,276 Payments on revolving credit facility (94,000 ) — (10,028 ) — (104,028 ) Net overdraft financing — — 1,071 — 1,071 Deferred loan costs (3,879 ) — — — (3,879 ) Issuance of common stock 188 — — — 188 Repurchase of treasury stock (5,000 ) — — — (5,000 ) Contributions from parent — — 12,754 (12,754 ) — Minimum withholding taxes paid on stock awards (1,718 ) — (125 ) — (1,843 ) Distributions to noncontrolling interests — — (1,552 ) — (1,552 ) Net cash provided/(used) in financing activities (154,344 ) — (16,770 ) (12,754 ) (183,868 ) Effect of exchange rate changes on cash and cash equivalent — — (6,297 ) — (6,297 ) Net increase/(decrease) in cash and cash equivalents (1,973 ) 1,761 (42,108 ) — (42,320 ) Cash and cash equivalents at beginning of year 3,443 3,993 149,448 — 156,884 Cash and cash equivalents at end of year $ 1,470 $ 5,754 $ 107,340 $ — $ 114,564 Condensed Consolidating Statements of Cash Flows For the year ended January 2, 2016 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Cash flows from operating activities: Net income/(loss) $ 85,279 $ 101,828 $ 96,543 $ (198,371 ) $ 85,279 Earnings in investments in subsidiaries (198,371 ) — — 198,371 — Other operating cash flows 250,597 (53,098 ) 138,181 — 335,680 Net cash provided by operating activities 137,505 48,730 234,724 — 420,959 Cash flows from investing activities: Capital expenditures (46,574 ) (91,702 ) (91,572 ) — (229,848 ) Acquisitions, net of cash acquired — — (377 ) — (377 ) Investment in subsidiaries and affiliates (20 ) (45,103 ) 29,541 15,582 — Note receivable from affiliates — 76,019 (76,019 ) — — Gross proceeds from sale of property, plant and equipment and other assets 1,035 1,154 1,651 — 3,840 Proceeds from insurance settlements 71 490 — — 561 Payments related to routes and other intangibles — — (3,845 ) — (3,845 ) Net cash provided/(used) in investing activities (45,488 ) (59,142 ) (140,621 ) 15,582 (229,669 ) Cash flows from financing activities: Proceeds from long-term debt — — 590,745 — 590,745 Payments on long-term debt (16,111 ) (55 ) (593,089 ) — (609,255 ) Borrowings from revolving credit facility 25,000 — 53,244 — 78,244 Payments on revolving credit facility (90,000 ) — (76,755 ) — (166,755 ) Net overdraft financing — — (1,261 ) — (1,261 ) Deferred loan costs (7,295 ) — (10,015 ) — (17,310 ) Issuances of common stock 171 — — — 171 Repurchase of treasury stock (5,912 ) — — — (5,912 ) Contributions from parent — — 15,582 (15,582 ) — Minimum withholding taxes paid on stock awards (4,874 ) — — — (4,874 ) Deductions to noncontrolling interest — — (87 ) — (87 ) Distributions to noncontrolling interests — — (3,295 ) — (3,295 ) Net cash provided/(used) in financing activities (99,021 ) (55 ) (24,931 ) (15,582 ) (139,589 ) Effect of exchange rate changes on cash and cash equivalents — — (3,601 ) — (3,601 ) Net increase/(decrease) in cash and cash equivalents (7,004 ) (10,467 ) 65,571 — 48,100 Cash and cash equivalents at beginning of year 10,447 14,460 83,877 — 108,784 Cash and cash equivalents at end of year $ 3,443 $ 3,993 $ 149,448 $ — $ 156,884 Condensed Consolidating Statements of Cash Flows For the year ended January 3, 2015 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Cash flows from operating activities: Net income/(loss) $ 68,311 $ 155,250 $ 68,540 $ (223,790 ) $ 68,311 Earnings in investments in subsidiaries (223,790 ) — — 223,790 — Other operating cash flows 226,120 (34,238 ) 14,979 — 206,861 Net cash provided/(used) by operating activities 70,641 121,012 83,519 — 275,172 Cash flows from investing activities: Capital expenditures (39,248 ) (84,299 ) (105,371 ) — (228,918 ) Acquisitions, net of cash acquired — (19,394 ) (2,075,006 ) — (2,094,400 ) Investment in subsidiaries and affiliates (1,483,007 ) (1,442,788 ) (440,619 ) 3,366,414 — Note receivable from affiliates — (204,074 ) 204,074 — — Gross proceeds from sale of property, plant and equipment and other assets 1,522 5,155 2,585 — 9,262 Proceeds from insurance settlements 1,350 200 — — 1,550 Payments related to routes and other intangibles (9,640 ) — (1,648 ) — (11,288 ) Net cash provided/(used) in investing activities (1,529,023 ) (1,745,200 ) (2,415,985 ) 3,366,414 (2,323,794 ) Cash flows from financing activities: Proceeds from long-term debt 1,100,000 — 742,184 — 1,842,184 Payments on long-term debt (264,500 ) (87 ) (69,175 ) — (333,762 ) Borrowing from revolving credit facility 122,445 — 47,698 — 170,143 Payments on revolving credit facility (297,445 ) — (54,144 ) — (351,589 ) Net overdraft financing — — 4,077 — 4,077 Deferred loan costs (41,748 ) — (3,475 ) — (45,223 ) Issuances of common stock 416 — — — 416 Contributions from parent — 1,632,618 1,733,796 (3,366,414 ) — Minimum withholding taxes paid on stock awards (10,026 ) — — — (10,026 ) Excess tax benefits from stock-based compensation 2,420 — — — 2,420 Addition of noncontrolling interest — — 1,201 — 1,201 Distributions to noncontrolling interests — — (4,272 ) — (4,272 ) Net cash provided/(used) in financing activities 611,562 1,632,531 2,397,890 (3,366,414 ) 1,275,569 Effect of exchange rate changes on cash and cash equivalents — — 10,980 — 10,980 Net increase/(decrease) in cash and cash equivalents (846,820 ) 8,343 76,404 — (762,073 ) Cash and cash equivalents at beginning of year 857,267 6,117 7,473 — 870,857 Cash and cash equivalents at end of year $ 10,447 $ 14,460 $ 83,877 $ — $ 108,784 |
General (Summary of Significant
General (Summary of Significant Accounting Policies) (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
General [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Darling and its consolidated subsidiaries. Noncontrolling interests represents the outstanding ownership interest in the Company's consolidated subsidiaries that are not owned by the Company. In the accompanying Consolidated Statements of Operations, the noncontrolling interest in net income/(loss) of the consolidated subsidiaries is shown as an allocation of the Company's net income and is presented separately as “Net income/(loss) attributable to noncontrolling interests”. In the Company's Consolidated Balance Sheets, noncontrolling interests represents the ownership interests in the Company consolidated subsidiaries' net assets held by parties other than the Company. These ownership interests are presented separately as “Noncontrolling interests” within “Stockholders' Equity.” All significant intercompany balances and transactions have been eliminated in consolidation. |
Fiscal Year | Fiscal Year The Company has a 52 / 53 week fiscal year ending on the Saturday nearest December 31. Fiscal years for the consolidated financial statements included herein are for the 52 weeks ended December 31, 2016 , the 52 weeks ended January 2, 2016 , and the 53 weeks ended January 3, 2015 . |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all short-term highly liquid instruments, with an original maturity of three months or less, to be cash equivalents. Cash balances are recorded net of book overdrafts when a bank right-of-offset exists. All other book overdrafts are recorded in accounts payable and the change in the related balance is reflected in operating activities on the Consolidated Statement of Cash Flows. In addition, the Company has bank overdrafts, which are considered a form of short-term financing with changes in the related balance reflected in financing activities in the Consolidated Statement of Cash Flows. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from customers’ non-payment of trade accounts receivable owed to the Company. These trade receivables arise in the ordinary course of business from sales of raw material, finished product or services to the Company’s customers. The estimate of allowance for doubtful accounts is based upon the Company’s bad debt experience, prevailing market conditions, and aging of trade accounts receivable, among other factors. If the financial condition of the Company’s customers deteriorates, resulting in the customers’ inability to pay the Company’s receivables as they come due, additional allowances for doubtful accounts may be required. |
Inventories | Inventories Inventories are stated at the lower of cost or market. Cost is primarily determined using the first-in, first-out (FIFO) method for the Feed Ingredients and Fuel Ingredients segments. In the Food Ingredients segment cost is primarily determined based on the weighted average cost. |
Long Lived Assets | Long Lived Assets Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation is computed by the straight-line method over the estimated useful lives of assets: 1) Buildings and improvements, 15 to 30 years; 2) Machinery and equipment, 3 to 10 years; 3) Vehicles, 3 to 8 years; and 4) Aircraft, 7 to 10 years. Maintenance and repairs are charged to expense as incurred and expenditures for major renewals and improvements are capitalized. Intangible Assets Intangible assets with indefinite lives, and therefore, not subject to amortization, consist of trade names acquired in the acquisition of Griffin Industries Inc. on December 17, 2010 (which was subsequently converted to a limited liability company) and its subsidiaries (“Griffin”) and trade names acquired in the VION Acquisition. Intangible assets subject to amortization consist of: 1) collection routes which are made up of groups of suppliers of raw materials in similar geographic areas from which the Company derives collection fees and a dependable source of raw materials for processing into finished products; 2) permits that represent licensing of operating plants that have been acquired, giving those plants the ability to operate; 3) non-compete agreements that represent contractual arrangements with former competitors whose businesses were acquired; 4) trade names; and 5) royalty, consulting , land use rights and leasehold agreements. Amortization expense is calculated using the straight-line method over the estimated useful lives of the assets ranging from: 5 to 21 years for collection routes; 10 to 20 years for permits; 3 to 7 years for non-compete covenants; and 4 to 15 years for trade names. Royalty, consulting, land use rights and leasehold agreements are amortized over the term of the agreement. |
Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed of | Impairment of Long-Lived Assets and Long-Lived Assets to Be Disposed of The Company reviews the carrying value of long-lived assets for impairment when events or changes in circumstances indicate that the carrying amount of an asset, or related asset group, may not be recoverable from estimated future undiscounted cash flows. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset or asset group to estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount for which the carrying amount of the asset exceeds the fair value of the asset. |
Goodwill | Goodwill The Company performed the annual goodwill and indefinite-lived intangible assets impairment assessments at October 29, 2016 and concluded that the Company's goodwill for all reporting units and all recorded indefinite-lived intangible assets were not impaired as of that date. Goodwill and indefinite lived assets are tested annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company follows a two-step process for testing impairment. First, the fair value of each reporting unit is compared to its carrying value to determine whether an indication of impairment exists. If impairment is indicated, then the fair value of the reporting unit’s goodwill is determined by allocating the unit’s fair value of its assets and liabilities (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination. The amount of impairment for goodwill is measured as the excess of its carrying value over its implied fair value. |
Environmental Expenditures | Environmental Expenditures Environmental expenditures incurred to mitigate or prevent environmental impacts that have yet to occur and that otherwise may result from future operations are capitalized. Expenditures that relate to an existing condition caused by past operations and that do not contribute to current or future revenues are expensed or charged against established environmental reserves. Reserves are established when environmental impacts have been identified which are probable to require mitigation and/or remediation and the costs are reasonably estimable. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company periodically assesses whether it is more likely than not that it will generate sufficient taxable income to realize its deferred income tax assets. In making this determination, the Company considers all available positive and negative evidence and makes certain assumptions. The Company considers, among other things, its deferred tax liabilities, the overall business environment, its historical earnings and losses, current industry trends and its outlook for taxable income in future years. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained upon examination by the relevant taxing authority. Adjustments are made to the reserves for uncertain tax positions when facts and circumstances change or additional information is available. Judgment is required to assess the impact of ongoing audits conducted by tax authorities in determining the Company’s consolidated income tax provision. The Company recognizes accrued interest and penalties on tax related matters as a component of income tax expense. |
Earnings Per Share | Earnings per Share Basic income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares including non-vested and restricted shares with participation rights outstanding during the period. Diluted income per common share is computed by dividing net income attributable to Darling by the weighted average number of common shares outstanding during the period increased by dilutive common equivalent shares determined using the treasury stock method. |
Stock Based Compensation | Stock Based Compensation The Company recognizes compensation expense ratably over the vesting period in an amount equal to the fair value of the share-based payments (e.g., stock options and non-vested and restricted stock) granted to employees and non-employee directors or by incurring liabilities to an employee or other supplier (a) in amounts based, at least in part, on the price of the entity’s shares or other equity instruments, or (b) that require or may require settlement by issuing the entity’s equity shares or other equity instruments. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. If it is at least reasonably possible that the estimate of the effect on the financial statements of a condition, situation, or set of circumstances that exist at the date of the financial statements will change in the near term due to one or more future confirming events, and the effect of the change would be material to the financial statements, the Company will disclose the nature of the uncertainty and include an indication that it is at least reasonably possible that a change in the estimate will occur in the near term. If the estimate involves certain loss contingencies, the disclosure will also include an estimate of the probable loss or range of loss or state that an estimate cannot be made. |
Derivative Instruments | Derivative Instruments The Company makes limited use of derivative instruments to manage cash flow risks related to interest expense, natural gas usage, diesel fuel usage, inventory, forecasted sales and foreign currency exchange rates. The Company does not use derivative instruments for trading purposes. Interest rate swaps are entered into with the intent of managing overall borrowing costs by reducing the potential impact of increases in interest rates on floating-rate long-term debt. Natural gas swaps and options are entered into with the intent of managing the overall cost of natural gas usage by reducing the potential impact of seasonal weather demands on natural gas that increases natural gas prices. Heating oil swaps and options are entered into with the intent of managing the overall cost of diesel fuel usage by reducing the potential impact of seasonal weather demands on diesel fuel that increases diesel fuel prices. Corn options and future contracts are entered into with the intent of managing forecasted sales of BBP by reducing the impact of changing prices. Foreign currency forward contracts are entered into to mitigate the foreign exchange rate risk for transactions designated in a currency other than the local functional currency. Entities are required to report all derivative instruments in the statement of financial position at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, on the reason for holding the instrument. If certain conditions are met, entities may elect to designate a derivative instrument as a hedge of exposures to changes in fair value, cash flows or foreign currencies. If the hedged exposure is a cash flow exposure, the effective portion of the gain or loss on the derivative instrument is reported initially as a component of other comprehensive income (outside of earnings) and is subsequently reclassified into earnings when the forecasted transaction affects earnings. Any amounts excluded from the assessment of hedge effectiveness as well as the ineffective portion of the gain or loss is reported in earnings immediately. If the derivative instrument is not designated as a hedge, the gain or loss is recognized in earnings in the period of change. Hedge accounting treatment ceases if or when the hedge transaction is no longer probable of occurring or the hedge relationship correlation no longer qualifies for hedge accounting. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue on sales when products are shipped and the customer takes ownership and assumes risk of loss. Certain customers may be required to prepay prior to shipment in order to maintain payment protection against certain foreign and domestic sales. These amounts are recorded as unearned revenue and revenue is recognized when the products have shipped and the customer takes ownership and assumes risk of loss. The Company recognizes revenue related to grease trap servicing and industrial residual removal in the fiscal month the trap service or industrial residual removal occurs. |
Foreign Currency Transactions and Remeasurement | Foreign Currency Translation and Remeasurement Foreign currency translation is included as a component of accumulated other comprehensive income and reflects the adjustments resulting from translating the foreign currency denominated financial statements of foreign subsidiaries into U.S. dollars. The functional currency of the Company's foreign subsidiaries is the currency of the primary economic environment in which the entity operates, which is generally the local currency of the country. Accordingly, assets and liabilities of the foreign subsidiaries are translated into U.S. dollars at fiscal year end exchange rates, including intercompany foreign currency transactions that are of long-term investment nature. Income and expense items are translated at average exchange rates occurring during the period. Changes in exchange rates that affect cash flows and the related receivables or payables are recognized as transaction gains and losses in determining net income. |
Reclassification | Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. |
Subsequent Events | Subsequent Events The Company evaluates subsequent events from the end of the most recent fiscal year through the date the consolidated financial statements are issued. |
General (Tables)
General (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
General [Abstract] | |
Net Income per Common Share [Table Text Block] | Net Income per Common Share (in thousands, except per share data) December 31, January 2, January 3, 2016 2016 2015 Income Shares Per-Share Income Shares Per-Share Income Shares Per-Share Basic: Net income attributable to Darling $ 102,313 164,600 $ 0.62 $ 78,531 165,031 $ 0.48 $ 64,215 164,627 $ 0.39 Diluted: Effect of dilutive securities Add: Option shares in the money and dilutive effect of nonvested stock — 1,329 — — 168 — — 806 — Less: Pro-forma treasury shares — (717) — — (80) — — (374) — Diluted: Net income attributable to Darling $ 102,313 165,212 $ 0.62 $ 78,531 165,119 $ 0.48 $ 64,215 165,059 $ 0.39 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of the assets acquired and liabilities assumed in the VION Acquisition as of January 7, 2014 (in thousands): Accounts receivable $ 337,278 Inventory 375,306 Prepaid expense 23,135 Other current assets 3,525 Deferred tax assets 48,639 Property plant and equipment 981,009 Identifiable intangibles 464,193 Goodwill 702,672 Investment in unconsolidated subsidiaries 27,069 Other long term assets 1,101 Accounts payable (210,477 ) Current portion of long-term debt (26,347 ) Accrued expenses (149,345 ) Deferred tax liability (350,003 ) Long Term debt obligations (4,109 ) Other noncurrent liabilities (57,721 ) Noncontrolling interests (90,919 ) Purchase price, net of cash acquired of $91.2 million $ 2,075,006 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | A summary of inventories follows (in thousands): December 31, 2016 January 2, 2016 Finished product $ 156,542 $ 164,428 Work in process 87,284 84,474 Raw material 39,859 48,401 Supplies and other 47,130 47,280 $ 330,815 $ 344,583 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | A summary of property, plant and equipment follows (in thousands): December 31, 2016 January 2, 2016 Land $ 152,949 $ 156,422 Buildings and improvements 464,957 448,620 Machinery and equipment 1,385,694 1,211,465 Vehicles 204,995 189,561 Aircraft 13,504 13,504 Construction in process 135,662 141,470 2,357,761 2,161,042 Accumulated depreciation (842,186 ) (652,875 ) $ 1,515,575 $ 1,508,167 |
Intangbile assets (Tables)
Intangbile assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
INTANGIBLE ASSETS [Abstract] | |
Schedule of Intangible Assets | The gross carrying amount of intangible assets not subject to amortization and intangible assets subject to amortization is as follows (in thousands): December 31, 2016 January 2, 2016 Indefinite Lived Intangible Assets Trade names $ 51,687 $ 52,466 51,687 52,466 Finite Lived Intangible Assets: Routes 374,989 390,888 Permits 493,311 494,754 Non-compete agreements 3,638 6,996 Trade names 76,033 75,825 Royalty, consulting, land use rights and leasehold 13,456 14,139 961,427 982,602 Accumulated Amortization: Routes (105,934 ) (99,819 ) Permits (170,165 ) (134,752 ) Non-compete agreements (1,788 ) (4,628 ) Trade names (21,042 ) (11,959 ) Royalty, consulting, land use rights and leasehold (2,258 ) (1,561 ) (301,187 ) (252,719 ) Total Intangible assets, less accumulated amortization $ 711,927 $ 782,349 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
GOODWILL [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill (in thousands): Feed Ingredients Food Ingredients Fuel Ingredients Total Balance at January 3, 2015 Goodwill $ 863,508 $ 346,153 $ 126,672 $ 1,336,333 Accumulated impairment losses (15,914 ) — — (15,914 ) 847,594 346,153 126,672 1,320,419 Goodwill acquired during year (259 ) — 521 262 Foreign currency translation (50,452 ) (22,768 ) (14,359 ) (87,579 ) Balance at January 2, 2016 Goodwill 812,797 323,385 112,834 1,249,016 Accumulated impairment losses (15,914 ) — — (15,914 ) 796,883 323,385 112,834 1,233,102 Goodwill acquired during year 827 — 2 829 Foreign currency translation (3 ) (6,377 ) (1,658 ) (8,038 ) Balance at December 31, 2016 Goodwill 813,621 317,008 111,178 1,241,807 Accumulated impairment losses (15,914 ) — — (15,914 ) $ 797,707 $ 317,008 $ 111,178 $ 1,225,893 |
Investment in Unconsolidated 40
Investment in Unconsolidated Subsidiary (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investment in Affiliate [Abstract] | |
Equity Method Investments | In addition to the DGD Joint Venture, the Company has investments in other unconsolidated subsidiaries that were acquired in the VION Acquisition that are insignificant to the Company. Selected financial information for the Company's DGD Joint Venture is as follows: (in thousands) December 31, 2016 December 31, 2015 Assets: Total current assets $ 268,734 $ 261,444 Property, plant and equipment, net 354,871 356,230 Other assets 12,164 3,034 Total assets $ 635,769 $ 620,708 Liabilities and members' equity: Total current portion of long term debt $ 17,023 $ 62,023 Total other current liabilities 23,200 19,935 Total long term debt 53,753 86,819 Total other long term liabilities 418 380 Total members' equity 541,375 451,551 Total liabilities and member's equity $ 635,769 $ 620,708 Year Ended December 31, (in thousands) 2016 2015 2014 Revenues: Operating revenues $ 527,670 $ 475,934 $ 487,834 Expenses: Total costs and expenses less depreciation, amortization and accretion expense 353,222 298,946 324,557 Depreciation, amortization and accretion expense 27,821 19,714 18,186 Operating income 146,627 157,274 145,091 Other income 551 120 82 Interest and debt expense, net (7,354 ) (13,604 ) (17,640 ) Net income $ 139,824 $ 143,790 $ 127,533 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
ACCRUED EXPENSES [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accrued expenses consist of the following (in thousands): December 31, 2016 January 2, 2016 Compensation and benefits $ 83,355 $ 79,087 Utilities and sewage 16,446 16,671 Accrued income, ad valorem, and franchise taxes 19,179 13,711 Reserve for self insurance, litigation, environmental and tax matters (Note 19) 12,479 13,643 Medical claims liability 5,070 3,807 Accrued operating expenses 55,128 50,953 Accrued interest payable 15,961 16,060 Other accrued expense 35,178 45,893 $ 242,796 $ 239,825 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Minimum rental commitments under noncancellable leases as of December 31, 2016 , are as follows (in thousands): Period Ending Fiscal Operating Leases Capital Leases 2017 $ 39,481 $ 1,527 2018 35,653 891 2019 31,035 285 2020 19,258 144 2021 7,421 — Thereafter 14,019 — $ 146,867 $ 2,847 Less amounts representing interest (145 ) Capital lease obligations included in current and long-term debt $ 2,702 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consists of the following (in thousands): December 31, 2016 January 2, 2016 Amended Credit Agreement: Revolving Credit Facility ($5.3 million denominated in euro at December 31, 2016 and $9.4 million denominated in CAD at January 2, 2016) $ 5,280 $ 9,358 Term Loan A ($76.9 million and $97.1 million denominated in CAD at December 31, 2016 and January 2, 2016, respectively) 120,103 277,181 Less unamortized deferred loan costs (1,083 ) (1,552 ) Carrying value Term Loan A 119,020 275,629 Term Loan B 583,500 589,500 Less unamortized deferred loan costs (6,298 ) (7,774 ) Carrying value Term Loan B 577,202 581,726 5.375% Senior Notes due 2022 with effective interest of 5.72% 500,000 500,000 Less unamortized deferred loan costs (7,667 ) (8,952 ) Carrying value 5.375% Senior Notes due 2022 492,333 491,048 4.75% Senior Notes due 2022 - Denominated in euro with effective interest of 5.10% 543,840 560,912 Less unamortized deferred loan costs - Denominated in euro (8,956 ) (10,705 ) Carrying value 4.75% Senior Notes due 2022 534,884 550,207 Other Notes and Obligations 22,224 23,049 1,750,943 1,931,017 Less Current Maturities 23,247 45,166 $ 1,727,696 $ 1,885,851 |
Schedule of Maturities of Long-term Debt | Maturities of long-term debt at December 31, 2016 follow (in thousands): Contractual Debt Payment 2017 $ 24,758 2018 7,105 2019 9,661 2020 129,832 2021 559,525 thereafter 1,044,066 $ 1,774,947 |
Other Noncurrent Liabilities (T
Other Noncurrent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
OTHER NONCURRENT LIABILITIES [Abstract] | |
Schedule of Other Liabilities, Noncurrent | Other noncurrent liabilities consist of the following (in thousands): December 31, 2016 January 2, 2016 Accrued pension liability (Note 15) $ 53,152 $ 53,220 Reserve for self insurance, litigation, environmental and tax matters (Note 19) 41,251 42,778 Other 1,711 1,811 $ 96,114 $ 97,809 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | U.S. and foreign income from operations before income taxes are as follows (in thousands): December 31, 2016 January 2, 2016 January 3, 2015 United States $ 48,869 $ 50,473 $ 58,972 Foreign 73,670 48,307 22,480 Income from operations before income taxes $ 122,539 $ 98,780 $ 81,452 |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense attributable to income from continuing operations before income taxes consists of the following (in thousands): December 31, 2016 January 2, 2016 January 3, 2015 Current: Federal $ 65 $ (21,775 ) $ 1,134 State (332 ) 411 (884 ) Foreign 27,992 29,871 24,770 Total current 27,725 8,507 25,020 Deferred: Federal (8,056 ) 13,057 886 State (649 ) (1,521 ) 1,235 Foreign (3,705 ) (6,542 ) (14,000 ) Total deferred (12,410 ) 4,994 (11,879 ) $ 15,315 $ 13,501 $ 13,141 A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): December 31, 2016 January 2, 2016 Balance at beginning of Year $ 5,604 $ 8,130 Change in tax positions related to prior years 99 (1,953 ) Expiration of the Statute of Limitations (1,036 ) (573 ) Balance at end of year $ 4,667 $ 5,604 |
Schedule of Effective Income Tax Rate Reconciliation | Income tax expense for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 , differed from the amount computed by applying the statutory U.S. federal income tax rate to income from continuing operations before income taxes as a result of the following (in thousands): December 31, 2016 January 2, 2016 January 3, 2015 Computed "expected" tax expense $ 42,888 $ 34,573 $ 28,508 Change in valuation allowance 1,039 4,421 5,420 Deferred tax on unremitted foreign earnings 2,546 4,848 1,956 Sub-Part F income 6,159 4,923 3,786 Foreign rate differential (9,982 ) (5,653 ) (9,754 ) Biofuel tax incentives (28,435 ) (28,143 ) (22,546 ) Non-deductible transaction costs — — 4,107 Other, net 1,100 (1,468 ) 1,664 $ 15,315 $ 13,501 $ 13,141 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2016 and January 2, 2016 are presented below (in thousands): December 31, 2016 January 2, 2016 Deferred tax assets: Loss contingency reserves $ 11,998 $ 11,961 Employee benefits 9,586 9,383 Pension liability 18,200 17,714 Intangible assets amortization, including taxable goodwill 2,317 2,947 Net operating losses 119,602 99,534 Inventory 8,523 7,934 Other 13,583 16,621 Total gross deferred tax assets 183,809 166,094 Less valuation allowance (20,150 ) (22,209 ) Net deferred tax assets 163,659 143,885 Deferred tax liabilities: Intangible assets amortization, including taxable goodwill (189,233 ) (182,748 ) Property, plant and equipment depreciation (207,729 ) (209,925 ) Investment in DGD Joint Venture (47,607 ) (46,239 ) Tax on unremitted foreign earnings (49,196 ) (48,106 ) Other (1,038 ) (1,196 ) Total gross deferred tax liabilities (494,803 ) (488,214 ) Net deferred tax liability $ (331,144 ) $ (344,329 ) Amounts reported on Consolidated Balance Sheets: Non-current deferred tax asset $ 14,990 $ 16,352 Non-current deferred tax liability (346,134 ) (360,681 ) Net deferred tax liability $ (331,144 ) $ (344,329 ) |
Stockholders' Equity and Stoc46
Stockholders' Equity and Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity and Stock-Based Compensation [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of all stock option activity as of December 31, 2016 and changes during the year ended is as follows: Number of shares Weighted-avg. exercise price per share Weighted-avg. remaining contractual life Options outstanding at December 28, 2013 906,251 $ 9.97 5.0 years Granted 163,078 19.94 Exercised (343,550 ) 6.18 Forfeited (29,603 ) 16.89 Expired — — Options outstanding at January 3, 2015 696,176 13.88 6.2 years Granted 422,386 14.76 Exercised (131,653 ) 4.13 Forfeited (136,177 ) 16.68 Expired — — Options outstanding at January 2, 2016 850,732 15.38 7.7 years Granted 1,547,184 9.53 Exercised (28,000 ) 6.71 Forfeited (4,000 ) 16.20 Expired — — Options outstanding at December 31, 2016 2,365,916 $ 11.65 8.4 years Options exercisable at December 31, 2016 715,833 $ 15.18 6.8 years |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each stock option grant under the Company's stock option plan was estimated on the date of grant using the Black Scholes option-pricing model with the following weighted average assumptions and results for fiscal 2016 , 2015 and 2014 . Weighted Average 2016 2015 2014 Expected dividend yield 0.0% 0.0% 0.0% Risk-free interest rate 1.35% 1.82% 1.77% Expected term 5.76 years 5.75 years 5.75 years Expected volatility 34.4% 38.0% 43.7% Fair value of options granted $3.34 $5.59 $8.93 |
Schedule of Nonvested Share Activity | A summary of the Company’s non-vested stock, restricted stock unit and performance share unit awards as of December 31, 2016 , and changes during the year ended is as follows: Non-Vested, RSU and PSU Shares Weighted Average Grant Date Fair Value Stock awards outstanding December 28, 2013 821,207 $ 14.93 Shares granted 1,436,658 20.73 Shares vested (861,772 ) 16.43 Shares forfeited (138,920 ) 19.90 Stock awards outstanding January 3, 2015 1,257,173 19.98 Shares granted 524,225 14.47 Shares vested (714,626 ) 17.91 Shares forfeited (32,581 ) 19.65 Stock awards outstanding January 2, 2016 1,034,191 18.63 Shares granted 602,306 12.11 Shares vested (413,654 ) 15.11 Shares forfeited (241,582 ) 20.86 Stock awards outstanding December 31, 2016 981,261 $ 15.56 |
Schedule of Share-based Payment Award, Equity Instruments Other than Options, Valuation Assumptions | The fair value of each 2016 LTIP PSU award under the Company's 2016 LTIP was estimated on the date of grant using a Monte Carlo model with the following weighted average assumptions for fiscal 2016 , except for the illiquidity discount, which only pertains to the 2016 LTIP PSU's with a holding period requirement. Weighted Average 2016 Expected dividend yield 0.0% Risk-free interest rate 0.80% Expected term 2.62 years Expected volatility 29.3% Illiquidity discount 16.1% |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of the Company’s non-employee director restricted stock awards as of December 31, 2016 , and changes during the year ended is as follows: Restricted stock and Restricted Stock Unit Shares Weighted Average Grant Date Fair Value Stock awards outstanding December 28, 2013 130,238 $ 10.75 Restricted shares granted 25,678 19.67 Restricted shares where the restriction lapsed — — Restricted shares forfeited — — Stock awards outstanding January 3, 2015 155,916 12.22 Restricted shares granted 46,910 13.80 Restricted shares where the restriction lapsed (50,322 ) 12.25 Restricted shares forfeited — — Stock awards outstanding January 2, 2016 152,504 12.69 Restricted shares granted 43,421 14.51 Restricted shares where the restriction lapsed (81,031 ) 11.55 Restricted shares forfeited (3,535 ) 14.51 Stock awards outstanding December 31, 2016 111,359 $ 14.18 |
Schedule of Other Share-based Compensation, Activity [Table Text Block] | A summary of the Company’s 2016 LTIP PSU awards as of December 31, 2016 , and changes during the year ended is as follows: LTIP PSU Shares Weighted Average Grant Date Fair Value LTIP PSU awards outstanding January 2, 2016 — $ — Granted 664,120 7.17 Vested — — Forfeited — — LTIP PSU awards outstanding December 31, 2016 664,120 $ 7.17 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Comprehensive Income [Abstract] | |
Schedule of Comprehensive Income (Loss) | The components of other comprehensive income (loss) and the related tax impacts for the years ended December 31, 2016 , January 2, 2016 and January 3, 2015 are as follows (in thousands): Before-Tax Tax (Expense) Net-of-Tax Amount or Benefit Amount Year Ended January 3, 2015 Defined Benefit Pension Plans Actuarial (loss)/gain recognized $ (34,547 ) $ 12,001 $ (22,546 ) Amortization of actuarial loss 2,078 (806 ) 1,272 Actuarial prior service cost recognized 1,140 (261 ) 879 Amortization of prior service costs 23 (9 ) 14 Total defined benefit pension plans (31,306 ) 10,925 (20,381 ) Natural gas swap derivatives Loss/(gain) reclassified to net income (196 ) 76 (120 ) Gain/(loss) recognized in other comprehensive income (loss) 11 (4 ) 7 Total natural gas derivatives (185 ) 72 (113 ) Corn option derivatives Loss/(gain) reclassified to net income (3,868 ) 1,501 (2,367 ) Gain/(loss) recognized in other comprehensive income (loss) 1,812 (704 ) 1,108 Total corn options (2,056 ) 797 (1,259 ) Foreign currency translation Other comprehensive income/(loss) (119,684 ) — (119,684 ) Other comprehensive income/(loss) $ (153,231 ) $ 11,794 $ (141,437 ) Year Ended January 2, 2016 Defined Benefit Pension Plans Actuarial (loss)/gain recognized $ (3,822 ) $ 1,499 $ (2,323 ) Amortization of actuarial loss 5,101 (1,986 ) 3,115 Amortization of prior service costs (67 ) 36 (31 ) Amortization of curtailment (1,181 ) 328 (853 ) Amortization of settlement 5,291 (1,468 ) 3,823 Other 471 — 471 Total defined benefit pension plans 5,793 (1,591 ) 4,202 Corn option derivatives Loss/(gain) reclassified to net income (1,517 ) 589 (928 ) Gain/(Loss) recognized in other comprehensive income 4,405 (1,710 ) 2,695 Total corn options 2,888 (1,121 ) 1,767 Foreign currency translation (162,436 ) — (162,436 ) Other comprehensive income/(loss) $ (153,755 ) $ (2,712 ) $ (156,467 ) Year Ended December 31, 2016 Defined Benefit Pension Plans Actuarial (loss)/gain recognized $ (5,257 ) $ 1,396 $ (3,861 ) Amortization of actuarial loss 4,632 (1,786 ) 2,846 Amortization of prior service costs 36 (12 ) 24 Amortization of curtailment — — — Amortization of settlement (114 ) 45 (69 ) Other 44 — 44 Total defined benefit pension plans (659 ) (357 ) (1,016 ) Corn option derivatives Loss/(gain) reclassified to net income (3,868 ) 1,501 (2,367 ) Gain/(Loss) recognized in other comprehensive income 4,889 (1,897 ) 2,992 Total corn options 1,021 (396 ) 625 Foreign currency translation (5,593 ) — (5,593 ) Other comprehensive income/(loss) $ (5,231 ) $ (753 ) $ (5,984 ) |
Reclassification out of Accumulated Other Comprehensive Income | Fiscal Year Ended December 31, 2016 January 2, 2016 January 3, 2015 Statement of Operations Classification Derivative instruments Natural gas swap derivatives $ — $ — $ 196 Cost of sales and operating expenses Corn option derivatives 3,868 1,517 3,868 Cost of sales and operating expenses 3,868 1,517 4,064 Total before tax (1,501 ) (589 ) (1,577 ) Income taxes 2,367 928 2,487 Net of tax Defined benefit pension plans Amortization of prior service cost $ (36 ) $ 67 $ (23 ) (a) Amortization of actuarial loss (4,632 ) (5,101 ) (2,078 ) (a) Amortization of curtailment — 1,181 — (a) Amortization of settlement 114 (5,291 ) — (a) (4,554 ) (9,144 ) (2,101 ) Total before tax 1,753 3,090 815 Income taxes (2,801 ) (6,054 ) (1,286 ) Net of tax Total reclassifications $ (434 ) $ (5,126 ) $ 1,201 Net of tax (a) These items are included in the computation of net periodic pension cost. See Note 15 Employee Benefit Plans for additional information. |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents changes in each component of accumulated comprehensive income (loss) as of December 31, 2016 as follows (in thousands): Fiscal Year Ended December 31, 2016 Foreign Currency Derivative Defined Benefit Translation Instruments Pension Plans Total Accumulated Other Comprehensive Income/(loss) January 2, 2016, attributable to Darling, net of tax $ (305,213 ) $ 1,843 $ (32,548 ) $ (335,918 ) Other comprehensive gain before reclassifications (5,593 ) 2,992 (3,817 ) (6,418 ) Amounts reclassified from accumulated other comprehensive income/(loss) — (2,367 ) 2,801 434 Net current-period other comprehensive income (5,593 ) 625 (1,016 ) (5,984 ) Noncontrolling interest (1,896 ) — — (1,896 ) Accumulated Other Comprehensive Income/(loss) December 31, 2016, attributable to Darling, net of tax $ (308,910 ) $ 2,468 $ (33,564 ) $ (340,006 ) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Employee Benefit Plans [Abstract] | |
Schedule of Net Funded Status | The following table sets forth the plans’ funded status for the Company's domestic and foreign defined benefit plans and amounts recognized in the Company's consolidated balance sheets based on the measurement date (December 31, 2016 and December 31, 2015) (in thousands): December 31, 2016 January 2, Change in projected benefit obligation: Projected benefit obligation at beginning of period $ 182,276 $ 395,142 Acquisitions — — Service cost 2,549 6,638 Interest cost 6,950 10,536 Employee contributions 439 1,862 Plan amendments 101 90 Actuarial loss/(gain) 7,905 (24,436 ) Benefits paid (7,146 ) (11,197 ) Effect of curtailment (1,286 ) (9,545 ) Effect of settlement (953 ) (162,600 ) Other (1,545 ) (24,214 ) Projected benefit obligation at end of period 189,290 182,276 Change in plan assets: Fair value of plan assets at beginning of period 127,970 328,220 Acquisitions — — Actual return on plan assets 10,138 (17,888 ) Employer contributions 5,250 9,612 Employee contributions 439 1,862 Benefits paid (7,146 ) (11,197 ) Effect of settlement (953 ) (162,600 ) Other (789 ) (20,039 ) Fair value of plan assets at end of period 134,909 127,970 Funded status (54,381 ) (54,306 ) Net amount recognized $ (54,381 ) $ (54,306 ) Amounts recognized in the consolidated balance sheets consist of: Noncurrent assets $ — $ — Current liability (1,229 ) (1,086 ) Noncurrent liability (53,152 ) (53,220 ) Net amount recognized $ (54,381 ) $ (54,306 ) Amounts recognized in accumulated other comprehensive loss consist of: Net actuarial loss $ 52,525 $ 51,921 Prior service cost/(credit) 417 359 Net amount recognized (a) $ 52,942 $ 52,280 (a) Amounts do not include deferred taxes of $ 19.4 million and $ 19.7 million at December 31, 2016 and January 2, 2016 , respectively. |
Schedule of Accumulated and Projected Benefit Obligations | December 31, 2016 January 2, 2016 Projected benefit obligation $ 189,290 $ 182,276 Accumulated benefit obligation 181,340 171,530 Fair value of plan assets 134,909 127,970 |
Schedule of Defined Benefit Plans Disclosures | Net pension cost includes the following components (in thousands): December 31, 2016 January 2, 2016 January 3, 2015 Service cost $ 2,549 $ 6,638 $ 5,208 Interest cost 6,950 10,536 13,214 Expected return on plan assets (7,552 ) (12,229 ) (14,439 ) Net amortization and deferral 4,668 5,034 2,094 Curtailment (1,285 ) (1,181 ) 7 Settlement (114 ) (2,353 ) — Net pension cost $ 5,216 $ 6,445 $ 6,084 |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive income (loss) for the year ended (in thousands): 2016 2015 Actuarial (loss)/gain recognized: Reclassification adjustments $ 2,846 $ 3,115 Actuarial (loss)/gain recognized during the period (3,861 ) (2,323 ) Amortization of settlement (69 ) 3,823 Prior service (cost) credit recognized: Reclassification adjustments 24 (31 ) Prior service cost arising during the period — — Amortization of curtailment — (853 ) Other 44 471 $ (1,016 ) $ 4,202 |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic pension cost in fiscal 2017 is as follows (in thousands): 2017 Net actuarial loss $ 4,754 Prior service cost 33 $ 4,787 |
Schedule of Assumptions Used | Weighted average assumptions used to determine benefit obligations were: December 31, 2016 January 2, 2016 January 3, 2015 Discount rate 3.81% 4.13% 2.79% Rate of compensation increase 0.38% 0.31% 1.82% Weighted average assumptions used to determine net periodic benefit cost for the employee benefit pension plans were: December 31, 2016 January 2, 2016 January 3, 2015 Discount rate 3.55% 3.47% 4.15% Rate of increase in future compensation levels 0.84% 0.38% 1.70% Expected long-term rate of return on assets 6.52% 6.62% 5.06% |
Schedule of Target Allocation of Plan Assets | Fixed Income 35% - 80% Equities 20% - 65% |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The following table presents fair value measurements for the Company's defined benefit plans’ assets as categorized using the fair value hierarchy under FASB authoritative guidance (in thousands): Total Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (In thousands of dollars) Fair Value (Level 1) (Level 2) (Level 3) Balances as January 2, 2016 Fixed Income: Long Term $ 21,079 $ 21,079 $ — $ — Short Term 1,341 1,341 — — Equity Securities: Domestic equities 34,864 34,864 — — International equities 21,190 21,190 — — Insurance contracts 8,121 — 5,801 2,320 Total categorized in fair value hierarchy 86,595 78,474 5,801 2,320 Other investments measured at NAV 41,375 Totals $ 127,970 $ 78,474 $ 5,801 $ 2,320 Balances as December 31, 2016 Fixed Income: Long Term $ 17,408 $ 17,408 $ — $ — Short Term 2,825 2,825 — — Equity Securities: Domestic equities 41,300 41,300 — — International equities 24,403 24,403 — — Insurance contracts 10,670 — 7,887 2,783 Total categorized in fair value hierarchy 96,606 85,936 7,887 2,783 Other investments measured at NAV 38,303 Totals $ 134,909 $ 85,936 $ 7,887 $ 2,783 |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in thousands): Year Ending Pension Benefits 2017 $ 9,854 2018 8,438 2019 9,307 2020 9,849 2021 10,931 Years 2022 – 2026 58,887 |
Multiemployer plans | The following table provides more detail on these significant multiemployer plans (contributions in thousands): Expiration Pension EIN Pension Pension Protection Act Zone Status FIP/RP Status Pending/ Contributions Date of Collective Bargaining Fund Plan Number 2016 2015 Implemented 2016 2015 2014 Agreement Western Conference of Teamsters Pension Plan 91-6145047 / 001 Green Green No $ 1,456 $ 1,387 $ 1,384 April 2020 (b) Central States, Southeast and Southwest Areas Pension Plan (a) 36-6044243 / 001 Red Red Yes 934 858 876 August 2018 (c) All other multiemployer plans 983 986 1,042 Total Company Contributions $ 3,373 $ 3,231 $ 3,302 (a) In July 2005 this plan received a 10 year extension from the IRS for amortizing unfunded liabilities. In April 2016 the IRS approved a modification of the amortization extension. (b) The Company has several plants that participate in the Western Conference of Teamsters Pension Plan under collective bargaining agreements that require minimum funding contributions. Certain of these agreements have expired and are being renegotiated with others having expiration dates through April 1, 2020. (c) The Company has several processing plants that participate in the Central States, Southeast and Southwest Areas Pension Plan under collective bargaining agreements that require minimum funding contributions. Certain of these agreements have expired and are being renegotiated with others having expiration dates through August 6, 2018. |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | The fair value measurement of plan assets using significant unobservable inputs (level 3) changed due to the following: Insurance (in thousands of dollars) Contracts Balance as of January 3, 2015 $ 194,909 Unrealized gains/(losses) relating to instruments still held in the reporting period. (12,601 ) Purchases, sales, and settlements (161,402 ) Exchange rate changes (18,586 ) Balance as of January 2, 2016 2,320 Unrealized gains/(losses) relating to instruments still held in the reporting period. 316 Purchases, sales, and settlements 244 Exchange rate changes (97 ) Balance as of December 31, 2016 $ 2,783 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | All of these transactions are currently not designated for hedge accounting. (in thousands): Functional Currency Contract Currency Type Amount Type Amount Brazilian real 28,304 Euro 7,270 Brazilian real 66,273 U.S. Dollar 18,900 Euro 150,394 U.S. Dollar 166,377 Euro 10,444 Polish zloty 47,000 Euro 4,295 Japanese yen 505,320 Euro 34,337 Chinese renminbi 254,639 Euro 11,563 Australian dollar 16,700 Euro 1,405 British pound 1,200 Polish zloty 19,111 Euro 4,312 Japanese yen 14,423 U.S. dollar 135 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the fair value of the Company’s derivative instruments as of December 31, 2016 and January 2, 2016 (in thousands): Derivatives Designated Balance Sheet Asset Derivatives Fair Value as Hedges Location December 31, 2016 January 2, 2016 Corn options Other current assets $ 4,235 $ 3,215 Total derivatives designated as hedges $ 4,235 $ 3,215 Derivatives not Designated as Hedges Foreign currency contracts Other current assets $ 8,939 $ 644 Corn options and futures Other current assets 151 599 Total derivatives not designated as hedges $ 9,090 $ 1,243 Total asset derivatives $ 13,325 $ 4,458 Balance Sheet Liability Derivatives Fair Value Location December 31, 2016 January 2, 2016 Derivatives not Designated as Hedges Foreign currency contracts Accrued Expenses $ 608 $ 4,435 Corn options and futures Accrued Expenses 122 2 Total derivatives not designated as hedges $ 730 $ 4,437 Total liability derivatives $ 730 $ 4,437 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The effect of the Company's derivative instruments on the consolidated financial statements for the fiscal years ended December 31, 2016 and January 2, 2016 are as follows (in thousands): Derivatives Designated as Cash Flow Hedges Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) (a) Gain or (Loss) Reclassified From Accumulated OCI into Income (Effective Portion) (b) Gain or (Loss) Recognized in Income On Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) (c) 2016 2015 2016 2015 2016 2015 Corn options $ 4,889 $ 4,405 $ 3,868 $ 1,517 $ 331 $ 68 Total $ 4,889 $ 4,405 $ 3,868 $ 1,517 $ 331 $ 68 (a) Amount recognized in accumulated OCI (effective portion) is reported as accumulated other comprehensive gain of approximately $ 4.9 million and approximately $ 4.4 million recorded net of taxes of approximately $ 1.9 million and approximately $ 1.7 million for the year ended December 31, 2016 and January 2, 2016 , respectively. (b) Gains and (losses) reclassified from accumulated OCI into income (effective portion) for interest rate swaps and natural gas swaps is included in interest expense and cost of sales, respectively, in the Company’s consolidated statements of operations. (c) Gains and (losses) recognized in income on derivatives (ineffective portion) for interest rate swaps and natural gas swaps is included in other income/(expense), net in the Company’s consolidated statements of operations. |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The table below summarizes the effect of derivatives not designated as hedges on the Company's consolidated statements of operations for the year ended December 31, 2016 , January 2, 2016 and January 3, 2015 (in thousands): Loss or (Gain) Recognized in Income on Derivatives Not Designated as Hedges For The Year Ended Derivatives not designated as hedging instruments Location December 31, 2016 January 2, 2016 January 3, 2015 Foreign exchange Foreign currency loss/(gain) $ (1,542 ) $ (27,321 ) $ (21,162 ) Foreign exchange Selling, general and administrative expense (8,543 ) 7,508 4,652 Corn options and futures Net sales 472 (2 ) — Corn options and futures Cost of sales and operating expenses (1,411 ) (2,067 ) (71 ) Natural gas and heating oil swaps and options Cost of sales and operating expenses — 132 982 Heating oil swaps and options Net sales 455 — — Soybean meal Net sales 7 — — Total $ (10,562 ) $ (21,750 ) $ (15,599 ) |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair value measured on recurring basis | The following tables presents the Company's financial instruments that are measured at fair value on a recurring and nonrecurring basis as of December 31, 2016 and January 2, 2016 and are categorized using the fair value hierarchy under FASB authoritative guidance. The fair value hierarchy has three levels based on the reliability of the inputs used to determine the fair value. Fair Value Measurements at December 31, 2016 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (In thousands of dollars) Total (Level 1) (Level 2) (Level 3) Assets Derivative assets $ 13,325 $ — $ 13,325 $ — Total Assets 13,325 — 13,325 — Liabilities Derivative liabilities 730 — 730 — 5.375% Senior Notes 520,300 — 520,300 — 4.75% Senior Notes 575,111 — 575,111 — Term Loan A 120,403 — 120,403 — Term Loan B 593,347 — 593,347 — Revolver 5,201 — 5,201 — Total Liabilities $ 1,815,092 $ — $ 1,815,092 $ — Fair Value Measurements at January 2, 2016 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (In thousands of dollars) Total (Level 1) (Level 2) (Level 3) Assets Derivative assets $ 4,458 $ — $ 4,458 $ — Total Assets 4,458 — 4,458 — Liabilities Derivative liabilities 4,437 — 4,437 — 5.375% Senior Notes 495,000 — 495,000 — 4.75% Senior Notes 541,280 — 541,280 — Term Loan A 277,874 — 277,874 — Term Loan B 577,710 — 577,710 — Revolver 9,218 — 9,218 — Total Liabilities $ 1,905,519 $ — $ 1,905,519 $ — |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Profit/(Loss) | Business Segments (in thousands): Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Fiscal Year Ended December 31, 2016 Net Sales $ 2,089,145 $ 1,061,912 $ 247,058 $ — $ 3,398,115 Cost of sales and operating expenses 1,624,858 834,410 182,466 — 2,641,734 Gross Margin 464,287 227,502 64,592 — 756,381 Selling, general and administrative expense 169,648 96,170 6,895 41,292 314,005 Acquisition costs — — — 401 401 Depreciation and amortization 178,845 70,120 28,531 12,412 289,908 Segment operating income/(loss) 115,794 61,212 29,166 (54,105 ) 152,067 Equity in net income of unconsolidated subsidiaries 467 — 69,912 — 70,379 Segment income 116,261 61,212 99,078 (54,105 ) 222,446 Total other expense (99,907 ) Income before income taxes $ 122,539 Segment assets at December 31, 2016 $ 2,464,509 $ 1,414,409 $ 657,637 $ 161,462 $ 4,698,017 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Fiscal Year Ended January 2, 2016 Net Sales $ 2,074,333 $ 1,094,918 $ 228,195 $ — $ 3,397,446 Cost of sales and operating expenses 1,613,402 863,562 177,061 — 2,654,025 Gross Margin 460,931 231,356 51,134 — 743,421 Selling, general and administrative expense 178,624 103,301 7,264 33,385 322,574 Acquisition costs — — — 8,299 8,299 Depreciation and amortization 165,854 66,817 26,711 10,522 269,904 Segment operating income/(loss) 116,453 61,238 17,159 (52,206 ) 142,644 Equity in net income of unconsolidated subsidiaries 1,521 — 71,895 — 73,416 Segment income 117,974 61,238 89,054 (52,206 ) 216,060 Total other expense (117,280 ) Income before income taxes $ 98,780 Segment assets at January 2, 2016 $ 2,438,869 $ 1,448,014 $ 631,968 $ 241,768 $ 4,760,619 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Fiscal Year Ended January 3, 2015 Net Sales $ 2,421,462 $ 1,248,352 $ 286,629 $ — $ 3,956,443 Cost of sales and operating expenses 1,864,835 1,029,488 228,848 — 3,123,171 Gross Margin 556,627 218,864 57,781 — 833,272 Selling, general and administrative expense 205,484 118,716 8,596 41,784 374,580 Acquisition costs — — — 24,667 24,667 Depreciation and amortization 158,871 73,274 27,898 9,474 269,517 Segment operating income/(loss) 192,272 26,874 21,287 (75,925 ) 164,508 Equity in net income of unconsolidated subsidiaries 1,842 — 63,767 — 65,609 Segment income 194,114 26,874 85,054 (75,925 ) 230,117 Total other expense (148,665 ) Income before income taxes $ 81,452 |
Business Segment Property, Plant and Equipment | Business Segment Property, Plant and Equipment (in thousands): December 31, 2016 January 2, 2016 January 3, 2015 Depreciation and amortization: Feed Ingredients $ 178,845 $ 165,854 $ 158,871 Food Ingredients 70,120 66,817 73,274 Fuel Ingredients 28,531 26,711 27,898 Corporate Activities 12,412 10,522 9,474 Total $ 289,908 $ 269,904 $ 269,517 Capital expenditures: Feed Ingredients $ 167,313 $ 153,894 $ 135,923 Food Ingredients 50,020 49,066 61,657 Fuel Ingredients 22,323 19,478 21,392 Corporate Activities 3,867 7,410 9,946 Total (a) $ 243,523 $ 229,848 $ 228,918 (a) Excludes the immaterial capital assets acquired in fiscal 2016 and fiscal 2015 and the VION Acquisition and Custom Blenders acquisition in fiscal 2014 of approximately $ 984.2 million . |
Geographic Area Net Trade Revenues | Geographic Area Net Trade Revenues (in thousands): December 31, 2016 January 2, 2016 January 3, 2015 North America $ 1,817,659 $ 1,951,421 $ 2,131,978 Europe 1,225,397 1,066,779 1,438,320 China 218,480 234,978 229,876 South America 61,276 68,226 73,241 Other 75,303 76,042 83,028 Total $ 3,398,115 $ 3,397,446 $ 3,956,443 Long-lived assets related to the Company's operations in North America, Europe, China, South American and other were as follows (in thousands): FY 2016 FY 2015 Long-Lived Assets Long-Lived Assets North America $ 2,411,489 $ 2,375,919 Europe 1,158,087 1,215,341 China 152,150 169,832 South America 74,837 60,396 Other 8,152 7,343 Total $ 3,804,715 $ 3,828,831 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Year Ended December 31, 2016 First Quarter (a) Second Quarter (a) Third Quarter Fourth Quarter (b) Net sales $ 779,641 $ 877,341 $ 853,856 $ 887,277 Operating income 26,692 54,467 35,528 35,380 Income from operations before income taxes 4,526 41,974 28,146 47,893 Net income 2,663 33,991 28,890 41,680 Net (income)/loss attributable to minority interests (1,584 ) (1,992 ) (196 ) (1,139 ) Net income/(loss) attributable to Darling 1,079 31,999 28,694 40,541 Basic earnings per share 0.01 0.19 0.17 0.25 Diluted earnings per share 0.01 0.19 0.17 0.25 (a) Included in net income are $ 0.3 million in integration costs in the first quarter of fiscal 2016, $ 0.1 million in integration costs in the second quarter of fiscal 2016 primarily relating to the integration of the Company's Canadian subsidiary Rothsay (“Rothsay”). (b) Included in net income is approximately $ 5.6 million related to a recorded insurance settlement gain in the Netherlands relating to a December 2015 casualty fire. Year Ended January 2, 2016 First Quarter (c) Second Quarter (c), (d) Third Quarter (c) Fourth Quarter (c), (d) Net sales $ 874,694 $ 859,315 $ 853,762 $ 809,675 Operating income 31,825 39,292 38,808 32,719 Income from operations before income taxes 3,939 9,602 502 84,737 Net income 1,824 4,937 (7,357 ) 85,875 Net (income)/loss attributable to minority interests (1,715 ) (1,857 ) (1,730 ) (1,446 ) Net income/(loss) attributable to Darling 109 3,080 (9,087 ) 84,429 Basic earnings per share — 0.02 (0.06 ) 0.51 Diluted earnings per share — 0.02 (0.06 ) 0.51 (c) Included in net income are $ 5.3 million in integration costs in the first quarter of fiscal 2015, $ 1.2 million in integration costs in the second quarter of fiscal 2015, $ 1.3 million in integration costs in the third quarter of fiscal 2015 and $ 0.5 million in the fourth quarter of fiscal 2015 primarily relating to the integration of Darling Ingredients International and Rothsay. (d) Included in net income in the second quarter of fiscal 2015 is approximately $ 10.6 million for the write-off of deferred loan costs resulting from the payoff of the Euro Term Loan B. Additionally, included in net income for the fourth quarter of fiscal 2015 were the Company's portion of all blenders tax credit recorded by the DGD Joint Venture and the Company's other processing facilities, which amounted to approximately$ 85.4 million . |
Guarantor Financial Informati53
Guarantor Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Guarantor Financial Information [Abstract] | |
Guarantor Financial Information Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet As of December 31, 2016 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated ASSETS Cash and cash equivalents $ 1,470 $ 5,754 $ 107,340 $ — $ 114,564 Restricted cash 103 — 190 — 293 Accounts receivable 39,209 97,220 339,251 (87,283 ) 388,397 Inventories 16,573 85,890 228,352 — 330,815 Income taxes refundable 3,566 — 3,913 — 7,479 Prepaid expenses 11,152 2,769 16,063 — 29,984 Other current assets 5,859 3,165 19,221 (6,475 ) 21,770 Total current assets 77,932 194,798 714,330 (93,758 ) 893,302 Investment in subsidiaries 4,296,200 1,154,398 909,263 (6,359,861 ) — Property, plant and equipment, net 233,456 497,312 784,807 — 1,515,575 Intangible assets, net 13,746 291,724 406,457 — 711,927 Goodwill 21,860 549,960 654,073 — 1,225,893 Investment in unconsolidated subsidiaries 1,438 — 291,279 — 292,717 Other assets 36,063 396,222 160,505 (549,177 ) 43,613 Deferred income taxes — — 14,990 — 14,990 $ 4,680,695 $ 3,084,414 $ 3,935,704 $ (7,002,796 ) $ 4,698,017 LIABILITIES AND STOCKHOLDERS’ EQUITY Current portion of long-term debt $ 4,220 $ — $ 25,502 $ (6,475 ) $ 23,247 Accounts payable 116,075 18,142 130,718 (84,040 ) 180,895 Income taxes payable (383 ) 373 4,923 — 4,913 Accrued expenses 86,581 33,834 125,624 (3,243 ) 242,796 Total current liabilities 206,493 52,349 286,767 (93,758 ) 451,851 Long-term debt, net of current portion 1,109,523 — 1,167,349 (549,176 ) 1,727,696 Other noncurrent liabilities 63,072 — 33,042 — 96,114 Deferred income taxes 140,543 — 205,591 — 346,134 Total liabilities 1,519,631 52,349 1,692,749 (642,934 ) 2,621,795 Total stockholders' equity 3,161,064 3,032,065 2,242,955 (6,359,862 ) 2,076,222 $ 4,680,695 $ 3,084,414 $ 3,935,704 $ (7,002,796 ) $ 4,698,017 Condensed Consolidating Balance Sheet As of January 2, 2016 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated ASSETS Cash and cash equivalents $ 3,443 $ 3,993 $ 149,448 $ — $ 156,884 Restricted cash 102 — 229 — 331 Accounts receivable 184,472 81,644 310,932 (205,656 ) 371,392 Inventories 13,564 89,078 241,941 — 344,583 Income taxes refundable 7,695 — 4,268 — 11,963 Prepaid expenses 13,322 2,262 20,591 — 36,175 Other current assets 5,273 24 22,852 (17,689 ) 10,460 Total current assets 227,871 177,001 750,261 (223,345 ) 931,788 Investment in subsidiaries 4,072,855 1,141,644 837,604 (6,052,103 ) — Property, plant and equipment, net 224,208 477,446 806,513 — 1,508,167 Intangible assets, net 17,794 326,231 438,324 — 782,349 Goodwill 21,860 549,690 661,552 — 1,233,102 Investment in unconsolidated subsidiary — — 247,238 — 247,238 Other assets 36,488 499,764 314,893 (809,522 ) 41,623 Deferred income taxes — — 16,352 — 16,352 $ 4,601,076 $ 3,171,776 $ 4,072,737 $ (7,084,970 ) $ 4,760,619 LIABILITIES AND STOCKHOLDERS’ EQUITY Current portion of long-term debt $ 20,328 $ — $ 42,527 $ (17,689 ) $ 45,166 Accounts payable 6,981 210,926 122,136 (190,045 ) 149,998 Income tax payable (383 ) 373 6,689 — 6,679 Accrued expenses 82,854 29,037 143,547 (15,613 ) 239,825 Total current liabilities 109,780 240,336 314,899 (223,347 ) 441,668 Long-term debt, net of current portion 1,234,002 — 1,461,371 (809,522 ) 1,885,851 Other noncurrent liabilities 57,578 1,999 38,232 — 97,809 Deferred income taxes 147,416 — 213,265 — 360,681 Total liabilities 1,548,776 242,335 2,027,767 (1,032,869 ) 2,786,009 Total stockholders' equity 3,052,300 2,929,441 2,044,970 (6,052,101 ) 1,974,610 $ 4,601,076 $ 3,171,776 $ 4,072,737 $ (7,084,970 ) $ 4,760,619 |
Guarantor Financial Information Condensed Consolidating Statements Of Operations | Condensed Consolidating Statements of Operations For the year ended December 31, 2016 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 501,856 $ 1,341,925 $ 1,752,844 $ (198,510 ) $ 3,398,115 Cost and expenses: Cost of sales and operating expenses 392,876 1,085,582 1,361,786 (198,510 ) 2,641,734 Selling, general and administrative expenses 130,573 51,029 132,403 — 314,005 Depreciation and amortization 41,106 105,261 143,541 — 289,908 Acquisition and integration costs — — 401 — 401 Total costs and expenses 564,555 1,241,872 1,638,131 (198,510 ) 3,246,048 Operating income (62,699 ) 100,053 114,713 — 152,067 Interest expense (60,971 ) 17,492 (50,708 ) — (94,187 ) Foreign currency gains/(losses) 122 (283 ) (1,693 ) — (1,854 ) Other income/(expense), net (13,538 ) 106 9,566 — (3,866 ) Equity in net income of unconsolidated subsidiaries (1,236 ) — 71,615 — 70,379 Earnings in investments in subsidiaries 223,347 — — (223,347 ) — Income/(loss) from operations before taxes 85,025 117,368 143,493 (223,347 ) 122,539 Income taxes (benefit) (17,288 ) 14,669 17,934 — 15,315 Net (income)/loss attributable to noncontrolling interests — — (4,911 ) — (4,911 ) Net income/(loss) attributable to Darling $ 102,313 $ 102,699 $ 120,648 $ (223,347 ) $ 102,313 Condensed Consolidating Statements of Operations For the year ended January 2, 2016 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 475,213 $ 1,363,279 $ 1,759,800 $ (200,846 ) $ 3,397,446 Cost and expenses: Cost of sales and operating expenses 369,928 1,108,864 1,376,079 (200,846 ) 2,654,025 Selling, general and administrative expenses 122,509 55,691 144,374 — 322,574 Depreciation and amortization 34,889 98,400 136,615 — 269,904 Acquisition and integration costs 3,177 — 5,122 — 8,299 Total costs and expenses 530,503 1,262,955 1,662,190 (200,846 ) 3,254,802 Operating income (55,290 ) 100,324 97,610 — 142,644 Interest expense (60,945 ) 18,839 (63,424 ) — (105,530 ) Foreign currency gains/(losses) (123 ) (1,649 ) (3,139 ) — (4,911 ) Other income/(expense), net (22,455 ) 435 15,181 — (6,839 ) Equity in net income of unconsolidated subsidiaries — — 73,416 — 73,416 Earnings in investments in subsidiaries 198,371 — — (198,371 ) — Income/(loss) from operations before taxes 59,558 117,949 119,644 (198,371 ) 98,780 Income taxes (benefit) (18,973 ) 16,121 16,353 — 13,501 Net (income)/loss attributable to noncontrolling interests — — (6,748 ) — (6,748 ) Net income/(loss) attributable to Darling $ 78,531 $ 101,828 $ 96,543 $ (198,371 ) $ 78,531 Condensed Consolidating Statements of Operations For the year ended January 3, 2015 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net sales $ 557,316 $ 1,620,054 $ 2,063,310 $ (284,237 ) $ 3,956,443 Cost and expenses: Cost of sales and operating expenses 421,883 1,330,038 1,655,487 (284,237 ) 3,123,171 Selling, general and administrative expenses 145,258 54,070 175,252 — 374,580 Depreciation and amortization 31,183 83,957 154,377 — 269,517 Acquisition costs 20,410 — 4,257 — 24,667 Total costs and expenses 618,734 1,468,065 1,989,373 (284,237 ) 3,791,935 Operating income (61,418 ) 151,989 73,937 — 164,508 Interest expense (97,912 ) 21,231 (58,554 ) (181 ) (135,416 ) Foreign currency gains/(losses) (12,244 ) (417 ) (887 ) — (13,548 ) Other income/(expense), net (3,717 ) (19 ) 3,854 181 299 Equity in net income of unconsolidated subsidiary — — 65,609 — 65,609 Earnings in investments in subsidiaries 223,790 — — (223,790 ) — Income/(loss) from operations before taxes 48,499 172,784 83,959 (223,790 ) 81,452 Income taxes (benefit) (15,716 ) 17,534 11,323 — 13,141 Net (income)/loss attributable to noncontrolling interests — — (4,096 ) — (4,096 ) Net income/(loss) attributable to Darling $ 64,215 $ 155,250 $ 68,540 $ (223,790 ) $ 64,215 |
Guarantor Financial Information Condensed Consolidating Statements of Comprehensive Income (Loss) | Condensed Consolidating Statements of Comprehensive Income/(Loss) For the year ended December 31, 2016 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income $ 107,224 $ 102,699 $ 120,648 $ (223,347 ) $ 107,224 Other comprehensive income/(loss), net of tax: Foreign currency translation — — (5,593 ) — (5,593 ) Pension adjustments 1,766 — (2,782 ) — (1,016 ) Corn option derivative adjustments 625 — — — 625 Total other comprehensive income, net of tax 2,391 — (8,375 ) — (5,984 ) Total comprehensive income/(loss) 109,615 102,699 112,273 (223,347 ) 101,240 Comprehensive income attributable to noncontrolling interests — — 3,015 — $ 3,015 Comprehensive income/(loss) attributable to Darling $ 109,615 $ 102,699 $ 109,258 $ (223,347 ) $ 98,225 Condensed Consolidating Statements of Comprehensive Income/(Loss) For the year ended January 2, 2016 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income $ 85,279 $ 101,828 $ 96,543 $ (198,371 ) $ 85,279 Other comprehensive income (loss), net of tax: Foreign currency translation — — (162,436 ) — (162,436 ) Pension adjustments 83 109 4,010 — 4,202 Corn option derivative adjustments 1,767 — — — 1,767 Total other comprehensive income, net of tax 1,850 109 (158,426 ) — (156,467 ) Total comprehensive income (loss) $ 87,129 $ 101,937 $ (61,883 ) $ (198,371 ) $ (71,188 ) Comprehensive income attributable to noncontrolling interests — — 9,139 — 9,139 Comprehensive income/(loss) attributable to Darling $ 87,129 $ 101,937 $ (71,022 ) $ (198,371 ) $ (80,327 ) Condensed Consolidating Statements of Comprehensive Income/(Loss) For the year ended January 3, 2015 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Net income $ 68,311 $ 155,250 $ 68,540 $ (223,790 ) $ 68,311 Other comprehensive income (loss), net of tax: Foreign currency translation — — (119,684 ) — (119,684 ) Pension adjustments (11,844 ) (34 ) (8,503 ) — (20,381 ) Natural gas swap derivative adjustments (113 ) — — — (113 ) Corn option derivative adjustments (1,259 ) — — — (1,259 ) Total other comprehensive income, net of tax (13,216 ) (34 ) (128,187 ) — (141,437 ) Total comprehensive income (loss) $ 55,095 $ 155,216 $ (59,647 ) $ (223,790 ) $ (73,126 ) Comprehensive income attributable to noncontrolling interests — — 10,296 — 10,296 Comprehensive income/(loss) attributable to Darling $ 55,095 $ 155,216 $ (69,943 ) $ (223,790 ) $ (83,422 ) |
Guarantor Financial Information Condensed Consolidating Statements Of Cash Flows | Condensed Consolidating Statements of Cash Flows For the year ended December 31, 2016 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Cash flows from operating activities: Net income $ 107,224 $ 102,699 $ 120,648 $ (223,347 ) $ 107,224 Earnings in investments in subsidiaries (223,347 ) — — 223,347 — Other operating cash flows 317,040 (100,970 ) 67,742 — 283,812 Net cash provided/(used) by operating activities 200,917 1,729 188,390 — 391,036 Cash flows from investing activities: Capital expenditures (51,330 ) (91,340 ) (100,853 ) — (243,523 ) Acquisitions, net of cash acquired — — (8,511 ) — (8,511 ) Investment in subsidiaries and affiliates — (12,754 ) — 12,754 — Note receivable from affiliates — 103,056 (103,056 ) — — Gross proceeds from sale of property, plant and equipment and other assets 2,784 1,070 3,475 — 7,329 Proceeds from insurance settlements — — 1,537 — 1,537 Payments related to routes and other intangibles — — (23 ) — (23 ) Net cash provide/(used) in investing activities (48,546 ) 32 (207,431 ) 12,754 (243,191 ) Cash flows from financing activities: Proceeds from long-term debt — — 36,327 — 36,327 Payments on long-term debt (143,935 ) — (60,493 ) — (204,428 ) Borrowings from revolving credit facility 94,000 — 5,276 — 99,276 Payments on revolving credit facility (94,000 ) — (10,028 ) — (104,028 ) Net overdraft financing — — 1,071 — 1,071 Deferred loan costs (3,879 ) — — — (3,879 ) Issuance of common stock 188 — — — 188 Repurchase of treasury stock (5,000 ) — — — (5,000 ) Contributions from parent — — 12,754 (12,754 ) — Minimum withholding taxes paid on stock awards (1,718 ) — (125 ) — (1,843 ) Distributions to noncontrolling interests — — (1,552 ) — (1,552 ) Net cash provided/(used) in financing activities (154,344 ) — (16,770 ) (12,754 ) (183,868 ) Effect of exchange rate changes on cash and cash equivalent — — (6,297 ) — (6,297 ) Net increase/(decrease) in cash and cash equivalents (1,973 ) 1,761 (42,108 ) — (42,320 ) Cash and cash equivalents at beginning of year 3,443 3,993 149,448 — 156,884 Cash and cash equivalents at end of year $ 1,470 $ 5,754 $ 107,340 $ — $ 114,564 Condensed Consolidating Statements of Cash Flows For the year ended January 2, 2016 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Cash flows from operating activities: Net income/(loss) $ 85,279 $ 101,828 $ 96,543 $ (198,371 ) $ 85,279 Earnings in investments in subsidiaries (198,371 ) — — 198,371 — Other operating cash flows 250,597 (53,098 ) 138,181 — 335,680 Net cash provided by operating activities 137,505 48,730 234,724 — 420,959 Cash flows from investing activities: Capital expenditures (46,574 ) (91,702 ) (91,572 ) — (229,848 ) Acquisitions, net of cash acquired — — (377 ) — (377 ) Investment in subsidiaries and affiliates (20 ) (45,103 ) 29,541 15,582 — Note receivable from affiliates — 76,019 (76,019 ) — — Gross proceeds from sale of property, plant and equipment and other assets 1,035 1,154 1,651 — 3,840 Proceeds from insurance settlements 71 490 — — 561 Payments related to routes and other intangibles — — (3,845 ) — (3,845 ) Net cash provided/(used) in investing activities (45,488 ) (59,142 ) (140,621 ) 15,582 (229,669 ) Cash flows from financing activities: Proceeds from long-term debt — — 590,745 — 590,745 Payments on long-term debt (16,111 ) (55 ) (593,089 ) — (609,255 ) Borrowings from revolving credit facility 25,000 — 53,244 — 78,244 Payments on revolving credit facility (90,000 ) — (76,755 ) — (166,755 ) Net overdraft financing — — (1,261 ) — (1,261 ) Deferred loan costs (7,295 ) — (10,015 ) — (17,310 ) Issuances of common stock 171 — — — 171 Repurchase of treasury stock (5,912 ) — — — (5,912 ) Contributions from parent — — 15,582 (15,582 ) — Minimum withholding taxes paid on stock awards (4,874 ) — — — (4,874 ) Deductions to noncontrolling interest — — (87 ) — (87 ) Distributions to noncontrolling interests — — (3,295 ) — (3,295 ) Net cash provided/(used) in financing activities (99,021 ) (55 ) (24,931 ) (15,582 ) (139,589 ) Effect of exchange rate changes on cash and cash equivalents — — (3,601 ) — (3,601 ) Net increase/(decrease) in cash and cash equivalents (7,004 ) (10,467 ) 65,571 — 48,100 Cash and cash equivalents at beginning of year 10,447 14,460 83,877 — 108,784 Cash and cash equivalents at end of year $ 3,443 $ 3,993 $ 149,448 $ — $ 156,884 Condensed Consolidating Statements of Cash Flows For the year ended January 3, 2015 (in thousands) Parent Guarantors Non-guarantors Eliminations Consolidated Cash flows from operating activities: Net income/(loss) $ 68,311 $ 155,250 $ 68,540 $ (223,790 ) $ 68,311 Earnings in investments in subsidiaries (223,790 ) — — 223,790 — Other operating cash flows 226,120 (34,238 ) 14,979 — 206,861 Net cash provided/(used) by operating activities 70,641 121,012 83,519 — 275,172 Cash flows from investing activities: Capital expenditures (39,248 ) (84,299 ) (105,371 ) — (228,918 ) Acquisitions, net of cash acquired — (19,394 ) (2,075,006 ) — (2,094,400 ) Investment in subsidiaries and affiliates (1,483,007 ) (1,442,788 ) (440,619 ) 3,366,414 — Note receivable from affiliates — (204,074 ) 204,074 — — Gross proceeds from sale of property, plant and equipment and other assets 1,522 5,155 2,585 — 9,262 Proceeds from insurance settlements 1,350 200 — — 1,550 Payments related to routes and other intangibles (9,640 ) — (1,648 ) — (11,288 ) Net cash provided/(used) in investing activities (1,529,023 ) (1,745,200 ) (2,415,985 ) 3,366,414 (2,323,794 ) Cash flows from financing activities: Proceeds from long-term debt 1,100,000 — 742,184 — 1,842,184 Payments on long-term debt (264,500 ) (87 ) (69,175 ) — (333,762 ) Borrowing from revolving credit facility 122,445 — 47,698 — 170,143 Payments on revolving credit facility (297,445 ) — (54,144 ) — (351,589 ) Net overdraft financing — — 4,077 — 4,077 Deferred loan costs (41,748 ) — (3,475 ) — (45,223 ) Issuances of common stock 416 — — — 416 Contributions from parent — 1,632,618 1,733,796 (3,366,414 ) — Minimum withholding taxes paid on stock awards (10,026 ) — — — (10,026 ) Excess tax benefits from stock-based compensation 2,420 — — — 2,420 Addition of noncontrolling interest — — 1,201 — 1,201 Distributions to noncontrolling interests — — (4,272 ) — (4,272 ) Net cash provided/(used) in financing activities 611,562 1,632,531 2,397,890 (3,366,414 ) 1,275,569 Effect of exchange rate changes on cash and cash equivalents — — 10,980 — 10,980 Net increase/(decrease) in cash and cash equivalents (846,820 ) 8,343 76,404 — (762,073 ) Cash and cash equivalents at beginning of year 857,267 6,117 7,473 — 870,857 Cash and cash equivalents at end of year $ 10,447 $ 14,460 $ 83,877 $ — $ 108,784 |
General (Details)
General (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2016USD ($)segmentfacilities$ / shares | Oct. 01, 2016$ / shares | Jul. 02, 2016$ / shares | Apr. 02, 2016$ / shares | Jan. 02, 2016USD ($)$ / shares | Oct. 03, 2015$ / shares | Jul. 04, 2015$ / shares | Apr. 04, 2015$ / shares | Dec. 31, 2016USD ($)weekssegmentfacilities$ / sharesshares | Jan. 02, 2016USD ($)weeks$ / sharesshares | Jan. 03, 2015USD ($)weeks$ / sharesshares | Jan. 07, 2014USD ($)continent | Dec. 29, 2013segment | |
General [Line Items] | |||||||||||||
Number of Operating Segments | segment | 3 | 3 | 3 | ||||||||||
Accounting Policies [Abstract] | |||||||||||||
Number Of Weeks Year To Date | weeks | 52 | 52 | 53 | ||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||
Investments Classified As Cash Equivalents, Original Maturity | 3 months | ||||||||||||
Goodwill [Abstract] | |||||||||||||
Goodwill | $ 1,225,893 | $ 1,233,102 | $ 1,225,893 | $ 1,233,102 | $ 1,320,419 | ||||||||
Basic: | |||||||||||||
Net income | $ 102,313 | $ 78,531 | $ 64,215 | ||||||||||
Shares (in shares) | shares | 164,600,000 | 165,031,000 | 164,627,000 | ||||||||||
Basic (in dollars per share) | $ / shares | $ 0.25 | $ 0.17 | $ 0.19 | $ 0.01 | $ 0.51 | $ (0.06) | $ 0.02 | $ 0 | $ 0.62 | $ 0.48 | $ 0.39 | ||
Effect of dilutive securities: [Abstract] | |||||||||||||
Add: Option shares in the money and dilutive effect of nonvested stock (in shares) | shares | 1,329,000 | 168,000 | 806,000 | ||||||||||
Less: Pro-forma treasury shares (in shares) | shares | (717,000) | (80,000) | (374,000) | ||||||||||
Diluted: | |||||||||||||
Net Income | $ 102,313 | $ 78,531 | $ 64,215 | ||||||||||
Shares (in shares) | shares | 165,212,000 | 165,119,000 | 165,059,000 | ||||||||||
Diluted (in dollars per share) | $ / shares | $ 0.25 | $ 0.17 | $ 0.19 | $ 0.01 | $ 0.51 | $ (0.06) | $ 0.02 | $ 0 | $ 0.62 | $ 0.48 | $ 0.39 | ||
Stock Based Compensation [Abstract] | |||||||||||||
Stock-based compensation expense | $ 10,300 | $ 9,000 | $ 20,900 | ||||||||||
Employee service share-based compensation, tax benefit from compensation expense | 3,400 | 3,300 | 5,900 | ||||||||||
Payments related to tax withholding for share-based compensation | (400) | (400) | |||||||||||
Excess tax benefit from stock-based compensation | 0 | 0 | 2,420 | ||||||||||
Foreign currency translation | $ (3,700) | $ (164,800) | $ (125,900) | ||||||||||
Stock Options [Member] | |||||||||||||
Antidilutive Securities [Abstract] | |||||||||||||
Antidilutive securities excluded from computation of earnings per share, amount | shares | 1,148,707 | 790,092 | 319,240 | ||||||||||
Non Vested Stock [Member] | |||||||||||||
Antidilutive Securities [Abstract] | |||||||||||||
Antidilutive securities excluded from computation of earnings per share, amount | shares | 758,557 | 587,961 | 751,444 | ||||||||||
Vion Ingredients [Member] | |||||||||||||
General [Line Items] | |||||||||||||
Expected Business Combination, Number of Continents in which Entity Operates | continent | 5 | ||||||||||||
Goodwill [Abstract] | |||||||||||||
Goodwill | $ 702,672 | ||||||||||||
Minimum [Member] | |||||||||||||
General [Line Items] | |||||||||||||
Number of Processing and Transfer Facilities | facilities | 200 | 200 | |||||||||||
Accounting Policies [Abstract] | |||||||||||||
Number Of Weeks Year To Date | weeks | 52 | ||||||||||||
Minimum [Member] | Buildings and improvements [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Property, Plant and Equipment, Useful Life | 15 years | ||||||||||||
Minimum [Member] | Machinery and equipment [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Property, Plant and Equipment, Useful Life | 3 years | ||||||||||||
Minimum [Member] | Vehicles [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Property, Plant and Equipment, Useful Life | 3 years | ||||||||||||
Minimum [Member] | Aircraft [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Property, Plant and Equipment, Useful Life | 7 years | ||||||||||||
Minimum [Member] | Routes [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Finite-Lived Intangible Assets, Useful Life | 5 years | ||||||||||||
Minimum [Member] | Permits [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Finite-Lived Intangible Assets, Useful Life | 10 years | ||||||||||||
Minimum [Member] | Non-compete agreements [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Finite-Lived Intangible Assets, Useful Life | 3 years | ||||||||||||
Minimum [Member] | Trade Names [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Finite-Lived Intangible Assets, Useful Life | 4 years | ||||||||||||
Maximum [Member] | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Number Of Weeks Year To Date | weeks | 53 | ||||||||||||
Maximum [Member] | Buildings and improvements [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Property, Plant and Equipment, Useful Life | 30 years | ||||||||||||
Maximum [Member] | Machinery and equipment [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Property, Plant and Equipment, Useful Life | 10 years | ||||||||||||
Maximum [Member] | Vehicles [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Property, Plant and Equipment, Useful Life | 8 years | ||||||||||||
Maximum [Member] | Aircraft [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Property, Plant and Equipment, Useful Life | 10 years | ||||||||||||
Maximum [Member] | Routes [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Finite-Lived Intangible Assets, Useful Life | 21 years | ||||||||||||
Maximum [Member] | Permits [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Finite-Lived Intangible Assets, Useful Life | 20 years | ||||||||||||
Maximum [Member] | Non-compete agreements [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Finite-Lived Intangible Assets, Useful Life | 7 years | ||||||||||||
Maximum [Member] | Trade Names [Member] | |||||||||||||
Long Lived Assets [Abstract] | |||||||||||||
Finite-Lived Intangible Assets, Useful Life | 15 years | ||||||||||||
Best Hides GmbH [Member] | Vion Ingredients [Member] | |||||||||||||
General [Line Items] | |||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 60.00% |
Acquisitions (Details)
Acquisitions (Details) € in Billions | Oct. 01, 2014USD ($) | Jan. 07, 2014USD ($)brandcontinent | Jan. 07, 2014EUR (€) | Dec. 28, 2013USD ($) | Dec. 31, 2016USD ($) | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) | Jan. 02, 2014USD ($) |
Business Acquisition [Line Items] | ||||||||
Issuance of common stock | $ 2,805,000 | $ 3,670,000 | $ 8,612,000 | |||||
Goodwill | 1,225,893,000 | 1,233,102,000 | 1,320,419,000 | |||||
Payments to Acquire Businesses, Net of Cash Acquired | 8,511,000 | 377,000 | 2,094,400,000 | |||||
Feed Ingredients [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 797,707,000 | 796,883,000 | 847,594,000 | |||||
Food Ingredients [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 317,008,000 | 323,385,000 | 346,153,000 | |||||
Fuel Ingredients [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 111,178,000 | 112,834,000 | 126,672,000 | |||||
Vion Ingredients [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment Working Capital | 84,000,000 | |||||||
Business Combination, Consideration Transferred | $ 2,200,000,000 | € 1.6 | ||||||
Foreign Currency Exchange Rate, Translation | 1.3605 | |||||||
Goodwill | $ 702,672,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | $ 375,306,000 | |||||||
Business Combination, Goodwill Deductible for Tax Purposes, Percent | 33.00% | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||||
Property plant and equipment | $ 981,009,000 | |||||||
Deferred tax liability | $ 350,003,000 | |||||||
Number of Continents in which Entity Operates | continent | 5 | |||||||
Number of Brands Entity Operates | brand | 6 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 91,200,000 | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Property, Plant, and Equipment | 27,300,000 | |||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | 17,600,000 | |||||||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment Goodwill | 72,100,000 | |||||||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment Other | $ 27,000,000 | |||||||
Vion Ingredients [Member] | Routes [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired finite-lived Intangible assets, weighted-average useful life | 10 years | 10 years | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||||
Identifiable intangibles | $ 190,200,000 | |||||||
Vion Ingredients [Member] | Permits [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired finite-lived Intangible assets, weighted-average useful life | 15 years | 15 years | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||||
Identifiable intangibles | $ 225,600,000 | |||||||
Vion Ingredients [Member] | Patents and Other Intangibles [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquired finite-lived Intangible assets, weighted-average useful life | 25 years | 25 years | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||||
Identifiable intangibles | $ 16,500,000 | |||||||
Vion Ingredients [Member] | Feed Ingredients [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 223,200,000 | |||||||
Vion Ingredients [Member] | Food Ingredients [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 375,600,000 | |||||||
Vion Ingredients [Member] | Fuel Ingredients [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 103,800,000 | |||||||
CustomBlendersCompany [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 5,200,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | $ 1,000,000 | |||||||
Acquired finite-lived Intangible assets, weighted-average useful life | 14 years | |||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 18,800,000 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | ||||||||
Property plant and equipment | 3,200,000 | |||||||
Identifiable intangibles | 8,600,000 | |||||||
Business Combination, Contingent Consideration, Asset | $ 800,000 | |||||||
Goodwill, Period Increase (Decrease) | $ 500,000 | |||||||
Common Stock [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Issuance of common stock | $ 874,000,000 | |||||||
Senior Notes [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Face amount of debt insturment | $ 500,000,000 | |||||||
Trademarks and Trade Names [Member] | Vion Ingredients [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 32,000,000 |
Acquisitions - Recognized Asset
Acquisitions - Recognized Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Jan. 07, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,225,893 | $ 1,233,102 | $ 1,320,419 | |
Vion Ingredients [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 337,278 | |||
Inventory | 375,306 | |||
Prepaid expense | 23,135 | |||
Other current assets | 3,525 | |||
Deferred tax assets | 48,639 | |||
Property plant and equipment | 981,009 | |||
Identifiable intangibles | 464,193 | |||
Goodwill | 702,672 | |||
Investment in unconsolidated subsidiaries | 27,069 | |||
Other long term assets | 1,101 | |||
Accounts payable | (210,477) | |||
Current portion of long-term debt | (26,347) | |||
Accrued expenses | (149,345) | |||
Deferred tax liability | (350,003) | |||
Long Term debt obligations | (4,109) | |||
Other noncurrent liabilities | (57,721) | |||
Noncontrolling interests | (90,919) | |||
Purchase price, net of cash acquired of $91.2 million | $ 2,075,006 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Inventory Disclosure [Abstract] | ||
Finished product | $ 156,542 | $ 164,428 |
Work in process | 87,284 | 84,474 |
Inventory, Raw Materials, Net of Reserves | 39,859 | 48,401 |
Supplies and other | 47,130 | 47,280 |
Inventories | $ 330,815 | $ 344,583 |
Property, Plant and Equipment58
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,357,761 | $ 2,161,042 |
Accumulated depreciation | (842,186) | (652,875) |
Property, plant and equipment, net | 1,515,575 | 1,508,167 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 152,949 | 156,422 |
Buildings and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 464,957 | 448,620 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,385,694 | 1,211,465 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 204,995 | 189,561 |
Aircraft [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 13,504 | 13,504 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 135,662 | $ 141,470 |
Intangbile assets (Details)
Intangbile assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Intangible Assets [Line Items] | ||
Indefinite Lived Intangible Assets | $ 51,687 | $ 52,466 |
Finite Lived Intangible Assets: | 961,427 | 982,602 |
Accumulated Amortization: | (301,187) | (252,719) |
Total Intangible assets, less accumulated amortization | 711,927 | 782,349 |
Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite Lived Intangible Assets | 51,687 | 52,466 |
Routes [Member] | ||
Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets: | 374,989 | 390,888 |
Accumulated Amortization: | (105,934) | (99,819) |
Permits [Member] | ||
Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets: | 493,311 | 494,754 |
Accumulated Amortization: | (170,165) | (134,752) |
Non-compete agreements [Member] | ||
Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets: | 3,638 | 6,996 |
Accumulated Amortization: | (1,788) | (4,628) |
Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets: | 76,033 | 75,825 |
Accumulated Amortization: | (21,042) | (11,959) |
Royalty, consulting land use and leasehold [Member] | ||
Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets: | 13,456 | 14,139 |
Accumulated Amortization: | $ (2,258) | $ (1,561) |
Intangbile assets Textuals (Det
Intangbile assets Textuals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
INTANGIBLE ASSETS [Abstract] | |||
Finite-Lived Intangible Assets, Period Increase (Decrease) | $ 27.7 | $ 7.7 | |
Amortization of Intangible Assets | 77.7 | $ 83.3 | $ 83.6 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 75.4 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 73 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 71.8 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 71.3 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 70.8 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Goodwill [Roll Forward] | ||
Goodwill at beginning of year | $ 1,249,016 | $ 1,336,333 |
Accumulated impairment losses | (15,914) | (15,914) |
Goodwill at beginning of year | 1,233,102 | 1,320,419 |
Goodwill acquired during year | 829 | 262 |
Foreign currency translation | (8,038) | (87,579) |
Goodwill at end of year | 1,241,807 | 1,249,016 |
Accumulated impairment losses at end of year | (15,914) | (15,914) |
Goodwill at end of year | 1,225,893 | 1,233,102 |
Feed Ingredients [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill at beginning of year | 812,797 | 863,508 |
Accumulated impairment losses | (15,914) | (15,914) |
Goodwill at beginning of year | 796,883 | 847,594 |
Goodwill acquired during year | 827 | (259) |
Foreign currency translation | (3) | (50,452) |
Goodwill at end of year | 813,621 | 812,797 |
Accumulated impairment losses at end of year | (15,914) | (15,914) |
Goodwill at end of year | 797,707 | 796,883 |
Food Ingredients [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill at beginning of year | 323,385 | 346,153 |
Accumulated impairment losses | 0 | 0 |
Goodwill at beginning of year | 323,385 | 346,153 |
Goodwill acquired during year | 0 | 0 |
Foreign currency translation | (6,377) | (22,768) |
Goodwill at end of year | 317,008 | 323,385 |
Accumulated impairment losses at end of year | 0 | 0 |
Goodwill at end of year | 317,008 | 323,385 |
Fuel Ingredients [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill at beginning of year | 112,834 | 126,672 |
Accumulated impairment losses | 0 | 0 |
Goodwill at beginning of year | 112,834 | 126,672 |
Goodwill acquired during year | 2 | 521 |
Foreign currency translation | (1,658) | (14,359) |
Goodwill at end of year | 111,178 | 112,834 |
Accumulated impairment losses at end of year | 0 | 0 |
Goodwill at end of year | $ 111,178 | $ 112,834 |
Investment in Unconsolidated 62
Investment in Unconsolidated Subsidiary Selected Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Assets: | |||
Property, plant and equipment, net | $ 354,871 | $ 356,230 | |
Total assets | 635,769 | 620,708 | |
Liabilities and members' equity: | |||
Total current portion of long term debt | 17,023 | 62,023 | |
Total long term debt | 53,753 | 86,819 | |
Total members' equity | 541,375 | 451,551 | |
Expenses: | |||
Operating income | 146,627 | 157,274 | $ 145,091 |
Interest and debt expense, net | (7,354) | (13,604) | (17,640) |
Diamond Green Diesel Holdings LLC Joint Venture [Member] | |||
Assets: | |||
Total current assets | 268,734 | 261,444 | |
Other assets | 12,164 | 3,034 | |
Liabilities and members' equity: | |||
Total other current liabilities | 23,200 | 19,935 | |
Total other long term liabilities | 418 | 380 | |
Total liabilities and member's equity | 635,769 | 620,708 | |
Revenues: | |||
Operating revenues | 527,670 | 475,934 | 487,834 |
Equity Method Investment, Summarized Financial Information, Total Costs and Expenses Less Depreciation, Amortization and Accretion Expense | 353,222 | 298,946 | 324,557 |
Equity Method Investment, Summarized Financial Information, Depreciation, Amortization and Accretion Expense | 27,821 | 19,714 | 18,186 |
Expenses: | |||
Other income | 551 | 120 | 82 |
Net income | $ 139,824 | $ 143,790 | $ 127,533 |
Investment in Unconsolidated 63
Investment in Unconsolidated Subsidiary (Details) $ in Thousands | 2 Months Ended | 3 Months Ended | 7 Months Ended | 12 Months Ended | |||||||
Feb. 28, 2017USD ($) | Jan. 02, 2016USD ($) | Dec. 31, 2011 | Dec. 31, 2016USD ($)barrel / day$ / gal | Dec. 31, 2016USD ($) | Jan. 02, 2016USD ($) | Dec. 31, 2015USD ($) | Jan. 03, 2015USD ($) | Dec. 31, 2014USD ($) | May 31, 2011USD ($) | Jan. 21, 2011 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Processing Capability, Barrels of Input Feedstock Per Day | barrel / day | 12,000 | ||||||||||
Investment in the joint venture | $ 247,238 | $ 292,717 | $ 292,717 | $ 247,238 | |||||||
Gain from equity method investments | $ 70,379 | 73,416 | $ 65,609 | ||||||||
Dollars per Gallon | $ / gal | 1 | ||||||||||
Renewable Diesel, Percentage | 0.10% | ||||||||||
Income Tax Credits and Adjustments | $ 85,400 | ||||||||||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | $ 26,317 | 26,589 | 0 | ||||||||
Diamond Green Diesel Holdings LLC Joint Venture [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||||||
Line of credit facility, term | 14 years | ||||||||||
Term loan facility | $ 221,300 | ||||||||||
Investment in the joint venture | 270,700 | 270,700 | |||||||||
Gain from equity method investments | 69,900 | 71,900 | $ 63,800 | ||||||||
Income Tax Credits and Adjustments | $ 160,600 | $ 156,600 | $ 126,000 | ||||||||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | $ 25,000 | $ 25,000 | |||||||||
Valero Energy Corporation [Member] | Diamond Green Diesel Holdings LLC Joint Venture [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Equity Method Investment, Ownership Percentage | 50.00% | ||||||||||
Subsequent Event [Member] | Diamond Green Diesel Holdings LLC Joint Venture [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | $ 25,000 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
ACCRUED EXPENSES [Abstract] | ||
Compensation and benefits | $ 83,355 | $ 79,087 |
Utilities and sewage | 16,446 | 16,671 |
Accrued income, ad valorem, and franchise taxes | 19,179 | 13,711 |
Reserve for self insurance, litigation, environmental and tax matters (Note 19) | 12,479 | 13,643 |
Medical claims liability | 5,070 | 3,807 |
Accrued operating expenses | 55,128 | 50,953 |
Accrued interest payable | 15,961 | 16,060 |
Other accrued expense | 35,178 | 45,893 |
Accrued expenses | $ 242,796 | $ 239,825 |
Leases (Details)
Leases (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)property | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,017 | $ 39,481 | ||
2,018 | 35,653 | ||
2,019 | 31,035 | ||
2,020 | 19,258 | ||
2,021 | 7,421 | ||
Thereafter | 14,019 | ||
Total | 146,867 | ||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,017 | 1,527 | ||
2,018 | 891 | ||
2,019 | 285 | ||
2,020 | 144 | ||
2,021 | 0 | ||
Thereafter | 0 | ||
Total | 2,847 | ||
Less amounts representing interest | (145) | ||
Capital lease obligations included in current and long-term debt | 2,702 | ||
Operating Leases, Rent Expense, Net | $ 43,600 | $ 41,500 | $ 41,000 |
Processing Plants and Storage Locations [Member] | |||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Number Of Properties Leased | property | 14 | ||
Office Locations [Member] | |||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Number Of Properties Leased | property | 3 |
Debt Schedule of Long Term Debt
Debt Schedule of Long Term Debt (Details) $ in Thousands, € in Millions | Dec. 31, 2016USD ($) | Jan. 02, 2016USD ($) | Jun. 03, 2015EUR (€) |
Debt Instrument [Line Items] | |||
Debt and capital lease obligations | $ 1,750,943 | $ 1,931,017 | |
Less Current Maturities | 23,247 | 45,166 | |
Long-term debt, net of current portion | 1,727,696 | 1,885,851 | |
Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 5,280 | 9,358 | |
Term Loan A Facility [Member] | Senior Secured Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 119,020 | 275,629 | |
Long-term Debt, Gross | 120,103 | 277,181 | |
Unamortized Debt Issuance Expense | (1,083) | (1,552) | |
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 577,202 | 581,726 | € 504.9 |
Long-term Debt, Gross | 583,500 | 589,500 | |
Unamortized Debt Issuance Expense | (6,298) | (7,774) | |
Senior Notes [Member] | Senior Notes 5.375% Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 492,333 | 491,048 | |
Long-term Debt, Gross | 500,000 | 500,000 | |
Unamortized Debt Issuance Expense | (7,667) | (8,952) | |
Senior Notes [Member] | Senior Notes 4.75% Due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 534,884 | 550,207 | |
Long-term Debt, Gross | 543,840 | 560,912 | |
Unamortized Debt Issuance Expense | (8,956) | (10,705) | |
Other Notes and Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 22,224 | $ 23,049 |
Debt Narrative (Details)
Debt Narrative (Details) CAD in Millions | Jun. 03, 2015USD ($) | Jul. 04, 2015USD ($) | Dec. 31, 2016USD ($) | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016CAD | Jun. 03, 2015EUR (€) | Jan. 02, 2014USD ($) | Dec. 17, 2010 |
Debt Instrument [Line Items] | ||||||||||
Capital lease obligations, current | € 400,000 | CAD 1.4 | ||||||||
Capital lease obligations, noncurrent | 200,000 | 1.3 | ||||||||
Write-off deferred loan costs | $ (10,600,000) | $ (528,000) | $ (10,633,000) | $ (4,330,000) | ||||||
Current portion of long-term debt | 23,247,000 | 45,166,000 | ||||||||
Long-term debt, net of current portion | $ 1,727,696,000 | 1,885,851,000 | ||||||||
Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, term | 5 years | |||||||||
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | $ 577,202,000 | 581,726,000 | € 504,900,000 | |||||||
Write-off deferred loan costs | $ 10,600,000 | |||||||||
Letter of Credit [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Deferred finance costs, gross | 4,800,000 | |||||||||
Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face amount of debt insturment | $ 500,000,000 | |||||||||
Senior Notes [Member] | Senior Notes 8.5% due 2018 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Annual interest rate | 8.50% | |||||||||
Senior Notes [Member] | Senior Notes 5.375% Due 2022 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face amount of debt insturment | $ 500,000,000 | |||||||||
Long-term Debt | 492,333,000 | 491,048,000 | ||||||||
Annual interest rate | 5.375% | |||||||||
Senior Notes [Member] | Senior Notes 4.75% Due 2022 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | € | 515,000,000 | |||||||||
Face amount of debt insturment | € | € 515,000,000 | |||||||||
Long-term Debt | 534,884,000 | 550,207,000 | ||||||||
Annual interest rate | 4.75% | |||||||||
Secured Debt [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum availability | 2,650,000,000 | |||||||||
Term Loan A Facility [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | 119,020,000 | 275,629,000 | ||||||||
Other Notes and Obligations [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | 22,224,000 | 23,049,000 | ||||||||
Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum availability | 1,000,000,000 | |||||||||
Availability | 968,100,000 | |||||||||
Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | Euro Member Countries, Euro | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | 5,300,000 | € 5,000,000 | ||||||||
Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | Canadian Dealer Offered Rate (CDOR) [Member] | Canada, Dollars | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | 9,400,000 | |||||||||
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term Debt | 5,280,000 | 9,358,000 | ||||||||
Revolving Credit Facility [Member] | Secured Debt [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Availability | 500,000,000 | |||||||||
Term Loan A Facility [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Face amount of debt insturment | 350,000,000 | |||||||||
Term Loan A Facility [Member] | Senior Secured Facilities [Member] | Canada, Dollars | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | 76,900,000 | 97,100,000 | CAD 103.6 | |||||||
Term Loan A Facility [Member] | Senior Secured Facilities [Member] | United States of America, Dollars | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | $ 43,300,000 | |||||||||
Term Loan A Facility [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, interest rate at period end | 2.77% | 2.77% | 2.77% | |||||||
Term Loan A Facility [Member] | Senior Secured Facilities [Member] | Canadian Dealer Offered Rate (CDOR) [Member] | Canada, Dollars | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, interest rate at period end | 3.0247% | 3.0247% | 3.0247% | |||||||
Term Loan A Facility [Member] | Secured Debt [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 2.00% | |||||||||
Term Loan A Facility [Member] | Secured Debt [Member] | Senior Secured Facilities [Member] | Canadian Prime Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1.00% | |||||||||
Letter of Credit [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | $ 26,600,000 | |||||||||
Springing adjustment, term | 91 days | |||||||||
Maximum availability | $ 150,000,000 | |||||||||
Letter of Credit [Member] | Senior Secured Facilities [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, covenant, interest ratio | 3 | 3 | 3 | |||||||
Letter of Credit [Member] | Senior Secured Facilities [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, covenant, leverage ratio | 5.50 | 5.50 | 5.50 | |||||||
Secured Debt [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 2.00% | |||||||||
Secured Debt [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | Euro Member Countries, Euro | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 2.00% | |||||||||
Line of credit facility, interest rate at period end | 2.00% | 2.00% | 2.00% | |||||||
Secured Debt [Member] | Senior Secured Facilities [Member] | Canadian Dealer Offered Rate (CDOR) [Member] | Canada, Dollars | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 2.00% | |||||||||
Swingline Sub-Facility [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum availability | $ 50,000,000 | |||||||||
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Springing adjustment, loans outstanding, period | 91 days | |||||||||
Face amount of debt insturment | $ 1,300,000,000 | |||||||||
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | United States of America, Dollars | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | $ 583,500,000 | |||||||||
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 2.50% | |||||||||
Line of credit facility, interest rate at period end | 3.27% | 3.27% | 3.27% | |||||||
Term Loan B Facility [Member] | Secured Debt [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 0.75% | |||||||||
Term Loan B Facility [Member] | Secured Debt [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | United States of America, Dollars | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 2.50% | |||||||||
Term Loan B Facility [Member] | Secured Debt [Member] | Senior Secured Facilities [Member] | Euro Interbank Offered Rate [Member] | Euro Member Countries, Euro | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 2.75% | |||||||||
Term Loan B Facility [Member] | Secured Debt [Member] | Senior Secured Facilities [Member] | Base Rate [Member] | United States of America, Dollars | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, basis spread on variable rate | 1.50% | |||||||||
Foreign Line of Credit [Member] | Senior Secured Facilities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term line of credit | $ 10,100,000 | |||||||||
Prior to January 15, 2017 [Member] | Senior Notes [Member] | Senior Notes 5.375% Due 2022 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, redemption price, percentage | 100.00% | |||||||||
Prior to May 30, 2018 [Member] | Senior Notes [Member] | Senior Notes 4.75% Due 2022 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, redemption price, percentage | 100.00% | |||||||||
Long-term Debt [Member] | Accounting Standards Update 2015-03 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance costs, net | 29,000,000 | |||||||||
Other Assets [Member] | Accounting Standards Update 2015-03 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt issuance costs, net | $ (29,000,000) |
Debt Debt Maturiities (Details)
Debt Debt Maturiities (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 24,758 |
2,018 | 7,105 |
2,019 | 9,661 |
2,020 | 129,832 |
2,021 | 559,525 |
thereafter | 1,044,066 |
Long-term Debt | $ 1,774,947 |
Other Noncurrent Liabilities (D
Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
OTHER NONCURRENT LIABILITIES [Abstract] | ||
Accrued pension liability (Note 15) | $ 53,152 | $ 53,220 |
Reserve for self insurance, litigation, environmental and tax matters (Note 19) | 41,251 | 42,778 |
Other | 1,711 | 1,811 |
Total other noncurrent liabilities | $ 96,114 | $ 97,809 |
Income Taxes - Income From Oper
Income Taxes - Income From Operations Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Income Tax Disclosure [Abstract] | |||||||||||
United States | $ 48,869 | $ 50,473 | $ 58,972 | ||||||||
Foreign | 73,670 | 48,307 | 22,480 | ||||||||
Income from operations before income taxes | $ 47,893 | $ 28,146 | $ 41,974 | $ 4,526 | $ 84,737 | $ 502 | $ 9,602 | $ 3,939 | $ 122,539 | $ 98,780 | $ 81,452 |
Income Taxes - Expense Benefit
Income Taxes - Expense Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Current: | |||
Federal | $ 65 | $ (21,775) | $ 1,134 |
State | (332) | 411 | (884) |
Foreign | 27,992 | 29,871 | 24,770 |
Total current | 27,725 | 8,507 | 25,020 |
Deferred: | |||
Federal | (8,056) | 13,057 | 886 |
State | (649) | (1,521) | 1,235 |
Foreign | (3,705) | (6,542) | (14,000) |
Total deferred | (12,410) | 4,994 | (11,879) |
Income Tax Expense (Benefit) | $ 15,315 | $ 13,501 | $ 13,141 |
Income Taxes Income Taxes - Rec
Income Taxes Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Computed expected tax expense | $ 42,888 | $ 34,573 | $ 28,508 |
Change in valuation allowance | 1,039 | 4,421 | 5,420 |
Deferred tax on unremitted foreign earnings | 2,546 | 4,848 | 1,956 |
Sub-Part F income | 6,159 | 4,923 | 3,786 |
Foreign rate differential | (9,982) | (5,653) | (9,754) |
Biofuel tax incentives | (28,435) | (28,143) | (22,546) |
Non-deductible transaction costs | 0 | 0 | 4,107 |
Other, net | 1,100 | (1,468) | 1,664 |
Income Tax Expense (Benefit) | $ 15,315 | $ 13,501 | $ 13,141 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Mar. 09, 2006 | |
Deferred tax assets: | ||||
Loss contingency reserves | $ 11,998 | $ 11,961 | ||
Employee benefits | 9,586 | 9,383 | ||
Pension liability | 18,200 | 17,714 | ||
Intangible assets amortization, including taxable goodwill | 2,317 | 2,947 | ||
Net operating losses | 119,602 | 99,534 | ||
Inventory | 8,523 | 7,934 | ||
Other | 13,583 | 16,621 | ||
Total gross deferred tax assets | 183,809 | 166,094 | ||
Less valuation allowance | (20,150) | (22,209) | ||
Net deferred tax assets | 163,659 | 143,885 | ||
Deferred tax liabilities: | ||||
Intangible assets amortization, including taxable goodwill | (189,233) | (182,748) | ||
Property, plant and equipment depreciation | (207,729) | (209,925) | ||
Investment in DGD Joint Venture | (47,607) | (46,239) | ||
Tax on unremitted foreign earnings | (49,196) | (48,106) | ||
Other | (1,038) | (1,196) | ||
Total gross deferred tax liabilities | (494,803) | (488,214) | ||
Net deferred tax liability | (331,144) | (344,329) | ||
Non-current deferred tax asset | 14,990 | 16,352 | ||
Non-current deferred tax liability | $ (346,134) | $ (360,681) | ||
Class of Stock [Line Items] | ||||
Granted (in shares) | 1,547,184 | 422,386 | 163,078 | |
Total gross deferred tax liabilities | $ (494,803) | $ (488,214) | ||
Director Restricted Stock Plan [Member] | ||||
Class of Stock [Line Items] | ||||
Stock available for grant per employee | $ 90 | $ 60 | ||
Repurchase price per share | $ 0.01 | |||
Restricted stock subject to restrictions percent | 100.00% |
Income Taxes Income Taxes - Nar
Income Taxes Income Taxes - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 |
Operating Loss Carryforwards [Line Items] | |||
Undistributed Earnings of Foreign Subsidiaries | $ 71,800 | ||
Operating Loss Carryforward, Amount Relating to May 2002 Recapitalization | 4,900 | ||
Operating Loss Carryforwards Limitation on Use Per Year | 700 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 84,200 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 168,300 | ||
Deferred Tax Assets, Valuation Allowance | 4,800 | ||
Operating Loss Carryforwards, Valuation Allowance | 15,400 | ||
Unrecognized Tax Benefits | 4,667 | $ 5,604 | $ 8,130 |
Indemnity Receivable | 3,000 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 1,700 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 1,500 | ||
Internal Revenue Service (IRS) | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 193,200 | ||
Tax Credit Carryforward, Amount | 2,200 | ||
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | 84,100 | ||
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 172,600 | ||
Tax Credit Carryforward, Amount | $ 1,000 |
Income Taxes Reconciliation of
Income Taxes Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of Year | $ 5,604 | $ 8,130 |
Change in tax positions related to prior years | 99 | |
Change in tax positions related to prior years | (1,953) | |
Expiration of the Statute of Limitations | (1,036) | (573) |
Balance at end of year | $ 4,667 | $ 5,604 |
Stockholders' Equity and Stoc76
Stockholders' Equity and Stock-Based Compensation Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Aug. 01, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock repurchase program, authorized amount | $ 100,000,000 | ||||
Stock repurchase program, period in force | 24 months | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 89,100,000 | ||||
Omnibus Incentive Plan 2012 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized | 11,066,544 | ||||
Number of shares available for grant | 4,566,505 | ||||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance period two | 3 years | ||||
Annual vesting after initial cliff | 33.33% | ||||
Performance period one | 2 years | ||||
Incentive Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 0 | 0 | 0 |
Stockholders' Equity and Stoc77
Stockholders' Equity and Stock-Based Compensation Stock Option Awards (Details) - USD ($) $ in Millions | Feb. 25, 2016 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 29, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options outstanding, Weighted-average remaining contractual life (in years) | 8 years 4 months 24 days | 7 years 8 months 12 days | 6 years 2 months 12 days | 5 years | |
Granted (in shares) | 1,547,184 | 422,386 | 163,078 | ||
Proceeds from stock options exercised | $ 0.2 | $ 0.2 | $ 0.4 | ||
Tax benefit realized from exercise of stock options | 0.1 | 0.4 | 1.2 | ||
Exercises in period, intrinsic value | 0.2 | 1.4 | 4.5 | ||
Vested in period, fair value | 8.3 | $ 7.5 | $ 19.6 | ||
Outstanding, intrinsic value | 5.4 | ||||
Exercisable, intrinsic value | 0.3 | ||||
Total compensation cost not yet recognized | $ 13.6 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 4 months 24 days | ||||
Options exercisable, Weighted-average remaining contractual life (in years) | 6 years 9 months 18 days | ||||
Nonqualified Stock Options Under Long Term Incentive Program [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Initial cliff | 25.00% | ||||
Annual vesting after initial cliff | 25.00% | ||||
Granted (in shares) | 1,094,306 | 452,878 | |||
Award vesting rights, percentage | 33.33% | ||||
Expiration period | 10 years |
Stockholders' Equity and Stoc78
Stockholders' Equity and Stock-Based Compensation Stock Option Activity (Details) - $ / shares | Feb. 25, 2016 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 29, 2012 |
Summary of stock option activity [Roll Forward] | |||||
Options outstanding at the beginning of year (in shares) | 850,732 | 696,176 | 906,251 | ||
Options outstanding at the beginning of year, Weighted-average exercise price per share (in usd per share) | $ 15.38 | $ 13.88 | $ 9.97 | ||
Granted (in shares) | 1,547,184 | 422,386 | 163,078 | ||
Granted, Weighted-average exercise price per share (in usd per share) | $ 9.53 | $ 14.76 | $ 19.94 | ||
Exercised (in shares) | (28,000) | (131,653) | (343,550) | ||
Exercised, Weighted-average exercise price per share (in usd per share) | $ 6.71 | $ 4.13 | $ 6.18 | ||
Forfeited (in shares) | (4,000) | (136,177) | (29,603) | ||
Forfeited, Weighted-average exercise price per share (in usd per share) | $ 16.20 | $ 16.68 | $ 16.89 | ||
Expired (in shares) | 0 | 0 | 0 | ||
Expired, Weighted average exercise price per share (in usd per share) | $ 0 | $ 0 | $ 0 | ||
Options outstanding at the end of year (in shares) | 2,365,916 | 850,732 | 696,176 | ||
Options outstanding at the end of year, Weighted-average exercise price per share (in usd per share) | $ 11.65 | $ 15.38 | $ 13.88 | ||
Options outstanding, Weighted-average remaining contractual life (in years) | 8 years 4 months 24 days | 7 years 8 months 12 days | 6 years 2 months 12 days | 5 years | |
Options exercisable (in shares) | 715,833 | ||||
Options exercisable, Weighted-average exercise price per share (in usd per share) | $ 15.18 | ||||
Options exercisable, Weighted-average remaining contractual life (in years) | 6 years 9 months 18 days | ||||
Nonqualified Stock Options Under Long Term Incentive Program [Member] | |||||
Summary of stock option activity [Roll Forward] | |||||
Granted (in shares) | 1,094,306 | 452,878 |
Stockholders' Equity and Stoc79
Stockholders' Equity and Stock-Based Compensation Weighted Average Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Stockholders' Equity and Stock-Based Compensation [Abstract] | |||
Expected term | 5 years 9 months 4 days | 5 years 9 months | 5 years 9 months |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.35% | 1.82% | 1.77% |
Expected volatility | 34.40% | 38.00% | 43.70% |
Fair value of options granted (in usd per share) | $ 3.34 | $ 5.59 | $ 8.93 |
Stockholders' Equity and Stoc80
Stockholders' Equity and Stock-Based Compensation Non-Vested Stock, Restricted Stock Unit and Performance Share Unit Awards (Details) - shares | Feb. 25, 2016 | Jan. 07, 2014 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 454,916 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 147,390 | ||||
Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Annual vesting after initial cliff | 33.33% | ||||
Shares granted (in shares) | 664,120 | 664,120 | |||
Shares vested (in shares) | 0 | ||||
Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Initial cliff | 25.00% | ||||
Annual vesting after initial cliff | 25.00% | ||||
Shares granted (in shares) | 602,306 | 524,225 | 1,436,658 | ||
Shares vested (in shares) | (413,654) | (714,626) | (861,772) | ||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Initial cliff | 25.00% | ||||
Annual vesting after initial cliff | 25.00% | ||||
Common stock equivalent (in share) | 1 | ||||
Vion Ingredients [Member] | Performance Shares [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 975,000 | ||||
Award vesting rights, percentage | 75.00% | ||||
Shares vested (in shares) | (118,750) | (252,087) | |||
Vion Ingredients [Member] | Fully Vested Performance Award [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights, percentage | 25.00% |
Stockholders' Equity and Stoc81
Stockholders' Equity and Stock-Based Compensation Fiscal 2016 LTIP PSU Awards (Details) - shares | Feb. 25, 2016 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (in shares) | 454,916 | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (in shares) | 664,120 | 664,120 |
Performance period two | 3 years | |
Performance period one | 2 years | |
PSUs earned may be reduced | 30.00% | |
Holding requirement | 2 years | |
Performance Shares [Member] | Share-based Compensation Award, Tranche One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (in shares) | 511,120 | |
Performance period two | 3 years | |
Performance Shares [Member] | Share-based Compensation Award, Tranche Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (in shares) | 153,000 | |
Performance period one | 2 years | |
Performance Shares [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Target percentage | 0.00% | |
Performance Shares [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Target percentage | 225.00% |
Stockholders' Equity and Stoc82
Stockholders' Equity and Stock-Based Compensation Summary of Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.35% | 1.82% | 1.77% |
Expected term | 5 years 9 months 4 days | 5 years 9 months | 5 years 9 months |
Expected volatility | 34.40% | 38.00% | 43.70% |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | ||
Risk-free interest rate | 0.80% | ||
Expected term | 2 years 7 months 13 days | ||
Expected volatility | 29.30% | ||
Illiquidity discount | 16.10% |
Stockholders' Equity and Stoc83
Stockholders' Equity and Stock-Based Compensation Summary of the Company’s LTIP PSU Awards (Details) - $ / shares | Feb. 25, 2016 | Dec. 31, 2016 |
Summary of non-vested and restricted stock awards [Roll Forward] | ||
Shares granted (in shares) | 454,916 | |
Performance Shares [Member] | ||
Summary of non-vested and restricted stock awards [Roll Forward] | ||
Beginning balance nonvested (in shares) | 0 | |
Nonvested, Weighted Average Grant Date Fair Value (in usd per share) | $ 0 | |
Shares granted (in shares) | 664,120 | 664,120 |
Shares granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ 7.17 | |
Shares vested (in shares) | 0 | |
Shares vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ 0 | |
Forfeited in Period (in shares) | 0 | |
Shares forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ 0 | |
Nonvested, Weighted Average Grant Date Fair Value (in usd per share) | $ 7.17 | |
Ending balance nonvested (in shares) | 664,120 |
Stockholders' Equity and Stoc84
Stockholders' Equity and Stock-Based Compensation Summary of the Company’s Non-vested Stock (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Summary of stock option activity [Roll Forward] | |||
Shares granted (in shares) | 454,916 | ||
Stock Awards [Member] | |||
Summary of stock option activity [Roll Forward] | |||
Beginning balance nonvested (in shares) | 1,034,191 | 1,257,173 | 821,207 |
Nonvested, Weighted Average Grant Date Fair Value (in usd per share) | $ 18.63 | $ 19.98 | $ 14.93 |
Shares granted (in shares) | 602,306 | 524,225 | 1,436,658 |
Shares granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ 12.11 | $ 14.47 | $ 20.73 |
Shares vested (in shares) | (413,654) | (714,626) | (861,772) |
Shares vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ 15.11 | $ 17.91 | $ 16.43 |
Forfeited in Period (in shares) | (241,582) | (32,581) | (138,920) |
Shares forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ 20.86 | $ 19.65 | $ 19.90 |
Ending balance nonvested (in shares) | 981,261 | 1,034,191 | 1,257,173 |
Nonvested, Weighted Average Grant Date Fair Value (in usd per share) | $ 15.56 | $ 18.63 | $ 19.98 |
Stockholders' Equity and Stoc85
Stockholders' Equity and Stock-Based Compensation Nonemployee Director Restricted Stock and Restricted Stock Unit Awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Mar. 09, 2006 | |
Director Restricted Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock available for grant per employee | $ 90 | $ 60 |
Repurchase price per share | $ 0.01 | |
Restricted stock subject to restrictions percent | 100.00% | |
Director Restricted Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share Based Compensation Arrangement By Share Based Payment Award Award Termination Period | 10 years |
Stockholders' Equity and Stoc86
Stockholders' Equity and Stock-Based Compensation Non-employee Director Restricted Stock Awards (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Summary of non-vested and restricted stock awards [Roll Forward] | |||
Shares granted (in shares) | 454,916 | ||
Director Restricted Stock Plan [Member] | |||
Summary of non-vested and restricted stock awards [Roll Forward] | |||
Ending balance nonvested (in shares) | 111,359 | 152,504 | 155,916 |
Nonvested, Weighted Average Grant Date Fair Value (in usd per share) | $ 12.69 | $ 12.22 | $ 10.75 |
Shares granted (in shares) | 43,421 | 46,910 | 25,678 |
Shares granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ 14.51 | $ 13.80 | $ 19.67 |
Restrictions Lapsed (in shares) | (81,031) | (50,322) | 0 |
Restrictions Lapsed, Weighted Average Grant Date Fair Value (in dollars per share) | $ 11.55 | $ 12.25 | $ 0 |
Forfeited in Period (in shares) | (3,535) | 0 | 0 |
Shares forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ 14.51 | $ 0 | $ 0 |
Beginning balance nonvested (in shares) | 152,504 | 155,916 | 130,238 |
Nonvested, Weighted Average Grant Date Fair Value (in usd per share) | $ 14.18 | $ 12.69 | $ 12.22 |
Comprehensive Income (Details)
Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Before-Tax Amount | |||
Actuarial (loss)/gain recognized | $ (5,257) | $ (3,822) | $ (34,547) |
Amortization of actuarial loss | 4,632 | 5,101 | 2,078 |
Actuarial prior service cost recognized | 1,140 | ||
Amortization of curtailment | 0 | (1,181) | |
Amortization of prior service costs | 36 | (67) | 23 |
Amortization of settlement | (114) | 5,291 | |
Other | 44 | 471 | |
Total defined benefit pension plans | (659) | 5,793 | (31,306) |
Tax (Expense) or Benefit | |||
Actuarial (loss)/gain recognized | 1,396 | 1,499 | 12,001 |
Amortization of actuarial loss | (1,786) | (1,986) | (806) |
Actuarial prior service cost recognized | (261) | ||
Amortization of curtailment | 0 | 328 | |
Amortization of prior service costs | (12) | 36 | (9) |
Amortization of settlement | 45 | (1,468) | |
Other | 0 | 0 | |
Total defined benefit pension plans | (357) | (1,591) | 10,925 |
Net-of-Tax Amount | |||
Actuarial (loss)/gain recognized | (3,861) | (2,323) | (22,546) |
Amortization of actuarial loss | 2,846 | 3,115 | 1,272 |
Amortization of prior service costs | 24 | (31) | 14 |
Actuarial prior service cost recognized | 0 | 0 | 879 |
Amortization of curtailment | 0 | (853) | |
Amortization of settlement | (69) | 3,823 | |
Other | 44 | 471 | |
Total defined benefit pension plans | (1,016) | 4,202 | (20,381) |
Before-Tax Amount | |||
Gain/(loss) recognized in other comprehensive income (loss) | 4,900 | 4,400 | |
Tax (Expense) or Benefit | |||
Gain/(loss) recognized in other comprehensive income (loss) | (1,900) | (1,700) | |
Net-of-Tax Amount | |||
Other comprehensive income/(loss) | (5,231) | (153,755) | (153,231) |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (753) | (2,712) | 11,794 |
Total other comprehensive income, net of tax | (5,984) | (156,467) | (141,437) |
Foreign currency translation adjustments | (5,593) | (162,436) | (119,684) |
Natural Gas Swap [Member] | |||
Before-Tax Amount | |||
Loss/(gain) reclassified to net income | (196) | ||
Gain/(loss) recognized in other comprehensive income (loss) | 11 | ||
Total natural gas derivatives | (185) | ||
Tax (Expense) or Benefit | |||
Loss/(gain) reclassified to net income | 76 | ||
Gain/(loss) recognized in other comprehensive income (loss) | (4) | ||
Total natural gas derivatives | 72 | ||
Net-of-Tax Amount | |||
Loss/(gain) reclassified to net income | (120) | ||
Gain/(loss) recognized in other comprehensive income (loss) | 7 | ||
Total natural gas derivatives | (113) | ||
Interest Rate Swap [Member] | |||
Before-Tax Amount | |||
Loss/(gain) reclassified to net income | (119,684) | ||
Tax (Expense) or Benefit | |||
Loss/(gain) reclassified to net income | 0 | ||
Net-of-Tax Amount | |||
Loss/(gain) reclassified to net income | (119,684) | ||
Corn Option [Member] | |||
Before-Tax Amount | |||
Loss/(gain) reclassified to net income | (3,868) | (1,517) | (3,868) |
Gain/(loss) recognized in other comprehensive income (loss) | 4,889 | 4,405 | 1,812 |
Total natural gas derivatives | 1,021 | 2,888 | (2,056) |
Tax (Expense) or Benefit | |||
Loss/(gain) reclassified to net income | 1,501 | 589 | 1,501 |
Gain/(loss) recognized in other comprehensive income (loss) | (1,897) | (1,710) | (704) |
Total natural gas derivatives | (396) | 1,121 | 797 |
Net-of-Tax Amount | |||
Loss/(gain) reclassified to net income | (2,367) | (928) | (2,367) |
Gain/(loss) recognized in other comprehensive income (loss) | 2,992 | 2,695 | 1,108 |
Total natural gas derivatives | 625 | 1,767 | (1,259) |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Net-of-Tax Amount | |||
Total defined benefit pension plans | (1,016) | 4,202 | (20,381) |
Net-of-Tax Amount | |||
Total other comprehensive income, net of tax | (3,697) | (164,827) | (125,884) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax | (5,593) | (162,436) | |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 0 | 0 | |
Foreign currency translation adjustments | (5,593) | (162,436) | |
Accumulated Other Comprehensive Income (Loss) [Member] | Natural Gas Swap [Member] | |||
Net-of-Tax Amount | |||
Total natural gas derivatives | (113) | ||
Accumulated Other Comprehensive Income (Loss) [Member] | Corn Option [Member] | |||
Net-of-Tax Amount | |||
Total natural gas derivatives | $ 625 | $ 1,767 | $ (1,259) |
Comprehensive Income Reclassifi
Comprehensive Income Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Cost of sales and operating expenses | $ 2,641,734 | $ 2,654,025 | $ 3,123,171 | |||||||||
Amortization of prior service cost | (36) | 67 | (23) | |||||||||
Amortization of actuarial loss | 4,632 | 5,101 | 2,078 | |||||||||
Amortization of curtailment | 0 | (1,181) | ||||||||||
Amortization of settlement | (114) | 5,291 | ||||||||||
Income taxes | (15,315) | (13,501) | (13,141) | |||||||||
Net income | $ 40,541 | $ 28,694 | $ 31,999 | $ 1,079 | $ 84,429 | $ (9,087) | $ 3,080 | $ 109 | 102,313 | 78,531 | 64,215 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Net income | (434) | (5,126) | 1,201 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Income from operations before income taxes | 3,868 | 1,517 | 4,064 | |||||||||
Income taxes | (1,501) | (589) | (1,577) | |||||||||
Net income | 2,367 | 928 | 2,487 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments | Natural Gas Swap [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Cost of sales and operating expenses | 0 | 0 | 196 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivative Instruments | Corn Option [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Cost of sales and operating expenses | 3,868 | 1,517 | 3,868 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Defined Benefit Pension Plans | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Amortization of prior service cost | [1] | (36) | 67 | (23) | ||||||||
Amortization of actuarial loss | [1] | (4,632) | (5,101) | (2,078) | ||||||||
Amortization of curtailment | [1] | 0 | 1,181 | 0 | ||||||||
Amortization of settlement | [1] | 114 | (5,291) | 0 | ||||||||
Income from operations before income taxes | (4,554) | (9,144) | (2,101) | |||||||||
Income taxes | 1,753 | 3,090 | 815 | |||||||||
Net income | $ (2,801) | $ (6,054) | $ (1,286) | |||||||||
[1] | These items are included in the computation of net periodic pension cost. See Note 15 Employee Benefit Plans for additional information. |
Comprehensive Income AOCI (Deta
Comprehensive Income AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income/(loss) January 2, 2016, attributable to Darling, net of tax | $ (335,918) | ||
Other comprehensive gain before reclassifications | (6,418) | ||
Amounts reclassified from accumulated other comprehensive income/(loss) | 434 | ||
Net current-period other comprehensive income | (5,984) | $ (156,467) | $ (141,437) |
Noncontrolling interest | (1,896) | ||
Accumulated Other Comprehensive Income/(loss) December 31, 2016, attributable to Darling, net of tax | (340,006) | (335,918) | |
Foreign Currency Translation | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income/(loss) January 2, 2016, attributable to Darling, net of tax | (305,213) | ||
Other comprehensive gain before reclassifications | (5,593) | ||
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 | ||
Net current-period other comprehensive income | (5,593) | ||
Noncontrolling interest | (1,896) | ||
Accumulated Other Comprehensive Income/(loss) December 31, 2016, attributable to Darling, net of tax | (308,910) | (305,213) | |
Derivative Instruments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income/(loss) January 2, 2016, attributable to Darling, net of tax | 1,843 | ||
Other comprehensive gain before reclassifications | 2,992 | ||
Amounts reclassified from accumulated other comprehensive income/(loss) | (2,367) | ||
Net current-period other comprehensive income | 625 | ||
Noncontrolling interest | 0 | ||
Accumulated Other Comprehensive Income/(loss) December 31, 2016, attributable to Darling, net of tax | 2,468 | 1,843 | |
Defined Benefit Pension Plans | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income/(loss) January 2, 2016, attributable to Darling, net of tax | (32,548) | ||
Other comprehensive gain before reclassifications | (3,817) | ||
Amounts reclassified from accumulated other comprehensive income/(loss) | 2,801 | ||
Net current-period other comprehensive income | (1,016) | ||
Noncontrolling interest | 0 | ||
Accumulated Other Comprehensive Income/(loss) December 31, 2016, attributable to Darling, net of tax | $ (33,564) | $ (32,548) |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)plan | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) | ||
Fair Value Measurement [Domain] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | $ 127,970 | |||
Fair value of plan assets at end of period | 134,909 | $ 127,970 | ||
Fair Value Measurement [Domain] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 78,474 | |||
Fair value of plan assets at end of period | 85,936 | 78,474 | ||
Fair Value Measurement [Domain] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 5,801 | |||
Fair value of plan assets at end of period | 7,887 | 5,801 | ||
Fair Value Measurement [Domain] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 2,320 | |||
Fair value of plan assets at end of period | 2,783 | 2,320 | ||
Projected benefit obligation at beginning of period | 182,276 | 395,142 | ||
Acquisitions | 0 | 0 | ||
Service cost | 2,549 | 6,638 | $ 5,208 | |
Interest cost | 6,950 | 10,536 | 13,214 | |
Employee contributions | 439 | 1,862 | ||
Plan amendments | 101 | 90 | ||
Actuarial loss/(gain) | 7,905 | (24,436) | ||
Benefits paid | (7,146) | (11,197) | ||
Effect of curtailment | (1,286) | (9,545) | ||
Effect of settlement | (953) | (162,600) | ||
Other | (1,545) | (24,214) | ||
Projected benefit obligation at end of period | 189,290 | 182,276 | 395,142 | |
Fair value of plan assets at beginning of period | 127,970 | 328,220 | ||
Acquisitions | 0 | 0 | ||
Actual return on plan assets | 10,138 | (17,888) | ||
Employer contributions | 5,250 | 9,612 | ||
Benefits paid | (7,146) | (11,197) | ||
Effect of settlement | (953) | (162,600) | ||
Other | (789) | (20,039) | ||
Fair value of plan assets at end of period | 134,909 | 127,970 | 328,220 | |
Funded status | (54,381) | (54,306) | ||
Amounts recognized in the consolidated balance sheets consist of: | ||||
Noncurrent assets | 0 | 0 | ||
Current liability | (1,229) | (1,086) | ||
Noncurrent liability | (53,152) | (53,220) | ||
Net amount recognized | (54,381) | (54,306) | ||
Amounts recognized in accumulated other comprehensive loss consist of: | ||||
Net actuarial loss | 52,525 | 51,921 | ||
Prior service cost/(credit) | 417 | 359 | ||
Net amount recognized | [1] | 52,942 | 52,280 | |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | 19,400 | 19,700 | ||
Accumulated benefit obligation | 181,340 | 171,530 | ||
Net pension cost includes the following components: | ||||
Service cost | 2,549 | 6,638 | 5,208 | |
Interest cost | 6,950 | 10,536 | 13,214 | |
Expected return on plan assets | (7,552) | (12,229) | (14,439) | |
Net amortization and deferral | 4,668 | 5,034 | 2,094 | |
Curtailment | (1,285) | (1,181) | 7 | |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | (114) | (2,353) | 0 | |
Net pension cost | 5,216 | 6,445 | 6,084 | |
Amounts recognized in accumulated other comprehensive income (loss): | ||||
Amortization of actuarial loss | 2,846 | 3,115 | 1,272 | |
Actuarial (loss)/gain recognized | (3,861) | (2,323) | (22,546) | |
Amortization of settlement | (69) | 3,823 | ||
Amortization of prior service costs | 24 | (31) | 14 | |
Actuarial prior service cost recognized | 0 | 0 | 879 | |
Amortization of curtailment | 0 | (853) | ||
Other | 44 | 471 | ||
Pension adjustments | (1,016) | $ 4,202 | $ (20,381) | |
Estimated amount that will be amortized from accumulated other comprehensive loss into net periodic pension cost in fiscal 2012: | ||||
Net actuarial loss | 4,754 | |||
Prior service cost | 33 | |||
Total | $ 4,787 | |||
Weighted average assumptions used to determine benefit obligations: | ||||
Discount rate | 3.81% | 4.13% | 2.79% | |
Rate of compensation increase | 0.38% | 0.31% | 1.82% | |
Weighted average assumptions used to determine net periodic benefit cost for the employee benefit pension plans: | ||||
Discount rate | 3.55% | 3.47% | 4.15% | |
Rate of increase in future compensation levels | 0.84% | 0.38% | 1.70% | |
Expected long-term rate of return on assets | 6.52% | 6.62% | 5.06% | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ||||
2,017 | $ 9,854 | |||
2,018 | 8,438 | |||
2,019 | 9,307 | |||
2,020 | 9,849 | |||
2,021 | 10,931 | |||
Years 2022 – 2026 | 58,887 | |||
Multiemployer Plans [Abstract] | ||||
Contributions | $ 3,373 | $ 3,231 | $ 3,302 | |
Number Of Multiemployer Plans, Withdrawal Obligation | plan | 2 | |||
Multiemployer Plans, Withdrawal Obligation | $ 1,800 | |||
Fair Value, Inputs, Level 3 [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 2,320 | 194,909 | ||
Fair value of plan assets at end of period | 2,783 | 2,320 | 194,909 | |
Western Conference Of Teamsters Pension Plan [Member] | ||||
Multiemployer Plans [Abstract] | ||||
Contributions | [2] | 1,456 | 1,387 | 1,384 |
Central States, Southeast and Southwest Areas Pension Plan [Member] | ||||
Multiemployer Plans [Abstract] | ||||
Contributions | [3],[4] | 934 | 858 | 876 |
Other Multiemployer Plans [Member] | ||||
Multiemployer Plans [Abstract] | ||||
Contributions | $ 983 | 986 | $ 1,042 | |
Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Multiemployer Plan, Contributions To Individual Plan, Percent | 5.00% | |||
Estimate of Fair Value Measurement [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | $ 86,595 | |||
Fair value of plan assets at end of period | 96,606 | 86,595 | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 78,474 | |||
Fair value of plan assets at end of period | 85,936 | 78,474 | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 5,801 | |||
Fair value of plan assets at end of period | 7,887 | 5,801 | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 2,320 | |||
Fair value of plan assets at end of period | 2,783 | 2,320 | ||
Estimate of Fair Value Measurement [Member] | Fixed Income, Long Term [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 21,079 | |||
Fair value of plan assets at end of period | 17,408 | 21,079 | ||
Estimate of Fair Value Measurement [Member] | Fixed Income, Long Term [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 21,079 | |||
Fair value of plan assets at end of period | 17,408 | 21,079 | ||
Estimate of Fair Value Measurement [Member] | Fixed Income, Long Term [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 0 | |||
Fair value of plan assets at end of period | 0 | 0 | ||
Estimate of Fair Value Measurement [Member] | Fixed Income, Long Term [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 0 | |||
Fair value of plan assets at end of period | 0 | 0 | ||
Estimate of Fair Value Measurement [Member] | Fixed Income, Short Term [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 1,341 | |||
Fair value of plan assets at end of period | 2,825 | 1,341 | ||
Estimate of Fair Value Measurement [Member] | Fixed Income, Short Term [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 1,341 | |||
Fair value of plan assets at end of period | 2,825 | 1,341 | ||
Estimate of Fair Value Measurement [Member] | Fixed Income, Short Term [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 0 | |||
Fair value of plan assets at end of period | 0 | 0 | ||
Estimate of Fair Value Measurement [Member] | Fixed Income, Short Term [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 0 | |||
Fair value of plan assets at end of period | 0 | 0 | ||
Estimate of Fair Value Measurement [Member] | Equity Securities, Domestic [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 34,864 | |||
Fair value of plan assets at end of period | 41,300 | 34,864 | ||
Estimate of Fair Value Measurement [Member] | Equity Securities, Domestic [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 34,864 | |||
Fair value of plan assets at end of period | 41,300 | 34,864 | ||
Estimate of Fair Value Measurement [Member] | Equity Securities, Domestic [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 0 | |||
Fair value of plan assets at end of period | 0 | 0 | ||
Estimate of Fair Value Measurement [Member] | Equity Securities, Domestic [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 0 | |||
Fair value of plan assets at end of period | 0 | 0 | ||
Estimate of Fair Value Measurement [Member] | Equity Securities, International [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 21,190 | |||
Fair value of plan assets at end of period | 24,403 | 21,190 | ||
Estimate of Fair Value Measurement [Member] | Equity Securities, International [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 21,190 | |||
Fair value of plan assets at end of period | 24,403 | 21,190 | ||
Estimate of Fair Value Measurement [Member] | Equity Securities, International [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 0 | |||
Fair value of plan assets at end of period | 0 | 0 | ||
Estimate of Fair Value Measurement [Member] | Equity Securities, International [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 0 | |||
Fair value of plan assets at end of period | 0 | 0 | ||
Estimate of Fair Value Measurement [Member] | Insurance Contracts [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 8,121 | |||
Fair value of plan assets at end of period | 10,670 | 8,121 | ||
Estimate of Fair Value Measurement [Member] | Insurance Contracts [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 0 | |||
Fair value of plan assets at end of period | 0 | 0 | ||
Estimate of Fair Value Measurement [Member] | Insurance Contracts [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 5,801 | |||
Fair value of plan assets at end of period | 7,887 | 5,801 | ||
Estimate of Fair Value Measurement [Member] | Insurance Contracts [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 2,320 | |||
Fair value of plan assets at end of period | 2,783 | 2,320 | ||
Portion at Other than Fair Value Measurement [Member] | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of period | 41,375 | |||
Fair value of plan assets at end of period | $ 38,303 | $ 41,375 | ||
[1] | Amounts do not include deferred taxes of $19.4 million and $19.7 million at December 31, 2016 and January 2, 2016, respectively. | |||
[2] | The Company has several plants that participate in the Western Conference of Teamsters Pension Plan under collective bargaining agreements that require minimum funding contributions. Certain of these agreements have expired and are being renegotiated with others having expiration dates through April 1, 2020. | |||
[3] | In July 2005 this plan received a 10 year extension from the IRS for amortizing unfunded liabilities. | |||
[4] | The Company has several processing plants that participate in the Central States, Southeast and Southwest Areas Pension Plan under collective bargaining agreements that require minimum funding contributions. Certain of these agreements have expired and are being renegotiated with others having expiration dates through August 6, 2018. |
Employee Benefit Plans Employee
Employee Benefit Plans Employee Benefit Plans Narrative 1 (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2005 | Dec. 31, 2016USD ($)plan | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) | Jan. 07, 2014USD ($) | |
Employee Benefit Plans [Line Items] | |||||
Investment Horizon of Greater Than | 10 years | ||||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | $ 19.4 | $ 19.7 | |||
Defined Benefit Plan, Number of Plans Terminated | plan | 2 | ||||
Domestic Pension Plan Benefits Percentage Of The Projected Benefit Obligation | 75.00% | 76.00% | |||
Domestic Defined Benefit Plan Cash Contributions By Employer | $ 0.6 | $ 0.4 | |||
Foreign Defined Benefit Plan Cash Contributions By Employer | 4.7 | 9.2 | |||
Vion Ingredients [Member] | |||||
Employee Benefit Plans [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Pension and Other Postretirement Benefit Plan Obligations | $ 28.9 | ||||
United States Postretirement Benefit Plan of US Entity [Member] | |||||
Employee Benefit Plans [Line Items] | |||||
Defined Contribution Plan, Employer Contribution Amount | 9.2 | 9.3 | $ 9.2 | ||
Foreign Pension Plan [Member] | |||||
Employee Benefit Plans [Line Items] | |||||
Defined Contribution Plan, Employer Contribution Amount | $ 6.2 | $ 3 | $ 3.5 | ||
Equity Securities [Member] | Domestic [Member] | |||||
Employee Benefit Plans [Line Items] | |||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 65.00% | ||||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 20.00% | ||||
Fixed Income Securities [Member] | Domestic [Member] | |||||
Employee Benefit Plans [Line Items] | |||||
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 80.00% | ||||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 35.00% | ||||
Maximum [Member] | |||||
Employee Benefit Plans [Line Items] | |||||
Multiemployer Plan, Contributions To Individual Plan, Percent | 5.00% | ||||
Investment Objectives Achievement Period | 7 years | ||||
Minimum [Member] | |||||
Employee Benefit Plans [Line Items] | |||||
Investment Objectives Achievement Period | 5 years | ||||
Central States, Southeast and Southwest Areas Pension Plan [Member] | |||||
Employee Benefit Plans [Line Items] | |||||
Multiemployer Plans, IRS Extended Amortization Period | 10 years |
Employee Benefit Plans Employ92
Employee Benefit Plans Employee Benefit Plans Narrative 2 (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)plan | Jan. 02, 2016 | Jan. 03, 2015 | |
Employee Benefit Plans [Line Items] | |||
Defined Benefit Plan, Number of Plans | plan | 2 | ||
Expected long-term rate of return on assets | 6.52% | 6.62% | 5.06% |
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | $ | $ 4.3 | ||
Equity Funds [Member] | |||
Employee Benefit Plans [Line Items] | |||
Equity Securities | 60.00% | ||
Fixed Income Funds [Member] | |||
Employee Benefit Plans [Line Items] | |||
Equity Securities | 40.00% | ||
United States Postretirement Benefit Plan of US Entity [Member] | |||
Employee Benefit Plans [Line Items] | |||
Expected long-term rate of return on assets | 6.90% | ||
Foreign Pension Plan [Member] | |||
Employee Benefit Plans [Line Items] | |||
Expected long-term rate of return on assets | 2.70% | ||
Emerging Market [Member] | Equity Securities, International [Member] | |||
Employee Benefit Plans [Line Items] | |||
Concentration Risk, Percentage | 10.00% |
Employee Benefit Plans Employ93
Employee Benefit Plans Employee Benefit Plans Narrative 3 (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)plan | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) | |
Employee Benefit Plans [Abstract] | |||
Number of Multiemployer Plans, Certified Red Zone | 6 | ||
Number Of Multiemployer Plans, Withdrawal Obligation Could Be Material | 2 | ||
Number of Multiemployer Plans, Certified Yellow Zone | 1 | ||
Contributions | $ | $ 3,373 | $ 3,231 | $ 3,302 |
Multiemployer Plans, Withdrawal Obligation | $ | $ 1,800 |
Employee Benefit Plans Employ94
Employee Benefit Plans Employee Benefit Plans Level 3 (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Jan. 02, 2016 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of period | $ 127,970 | $ 328,220 |
Fair value of plan assets at end of period | 134,909 | 127,970 |
Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of period | 2,320 | 194,909 |
Unrealized gains/(losses) relating to instruments still held in the reporting period. | 316 | (12,601) |
Purchases, sales, and settlements | 244 | (161,402) |
Exchange rate changes | (97) | (18,586) |
Fair value of plan assets at end of period | $ 2,783 | $ 2,320 |
Derivatives (Details)
Derivatives (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Oct. 01, 2016USD ($) | Jul. 02, 2016USD ($) | Apr. 02, 2016USD ($) | Jan. 02, 2016USD ($) | Oct. 03, 2015USD ($) | Jul. 04, 2015USD ($) | Apr. 04, 2015USD ($) | Dec. 31, 2016USD ($)month | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) | |
Derivatives, Fair Value [Line Items] | |||||||||||
Number of months cash flow hedge gain (loss) reclassified over | month | 12 | ||||||||||
Amount reclassified from accumulated other comprehensive loss into earnings over next 12 months | $ 4,000 | ||||||||||
Net income | $ 41,680 | $ 28,890 | $ 33,991 | $ 2,663 | $ 85,875 | $ (7,357) | $ 4,937 | $ 1,824 | 107,224 | $ 85,279 | $ 68,311 |
Asset Derivatives Fair Value | 13,325 | 4,458 | 13,325 | 4,458 | |||||||
Foreign currency losses | (1,854) | (4,911) | (13,548) | ||||||||
Liability Derivatives Fair Value | 730 | 4,437 | 730 | 4,437 | |||||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 4,889 | 4,405 | |||||||||
Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 3,868 | 1,517 | |||||||||
Gain Recognized in Income on Derivatives, Ineffective Portion and Amount Excluded from Effectiveness Testing | 331 | 68 | |||||||||
Gain/(loss) recognized in other comprehensive income (loss) | 4,900 | 4,400 | |||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 1,900 | 1,700 | |||||||||
Designated as Hedging Instrument [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Asset Derivatives Fair Value | 4,235 | 3,215 | 4,235 | 3,215 | |||||||
Not Designated as Hedging Instrument [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Asset Derivatives Fair Value | 9,090 | 1,243 | 9,090 | 1,243 | |||||||
Liability Derivatives Fair Value | 730 | 4,437 | 730 | 4,437 | |||||||
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Accrued Expenses [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Liability Derivatives Fair Value | 608 | 4,435 | 608 | 4,435 | |||||||
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Asset Derivatives Fair Value | 8,939 | 644 | 8,939 | 644 | |||||||
Corn Option [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Gain/(loss) recognized in other comprehensive income (loss) | 4,889 | 4,405 | 1,812 | ||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 1,897 | 1,710 | $ 704 | ||||||||
Corn Option [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Asset Derivatives Fair Value | 4,235 | 3,215 | 4,235 | 3,215 | |||||||
Commodity Contract [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Forward Purchase Amount | 9,800 | 9,800 | |||||||||
Corn options and futures [Member] | Not Designated as Hedging Instrument [Member] | Accrued Expenses [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Liability Derivatives Fair Value | 122 | 2 | 122 | 2 | |||||||
Corn options and futures [Member] | Not Designated as Hedging Instrument [Member] | Other Current Assets [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Asset Derivatives Fair Value | $ 151 | $ 599 | 151 | 599 | |||||||
Cash Flow Hedging [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Net income | 0 | ||||||||||
Cash Flow Hedging [Member] | Corn Option [Member] | |||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||
Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 4,889 | 4,405 | |||||||||
Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 3,868 | 1,517 | |||||||||
Gain Recognized in Income on Derivatives, Ineffective Portion and Amount Excluded from Effectiveness Testing | $ 331 | $ 68 |
Derivatives Derivative Effect o
Derivatives Derivative Effect of Derivatives Not Designated As Hedges (Details) € in Thousands, ¥ in Thousands, ¥ in Thousands, £ in Thousands, PLN in Thousands, BRL in Thousands, AUD in Thousands, $ in Thousands | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) | Dec. 31, 2016EUR (€) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016GBP (£) | Dec. 31, 2016AUD | Dec. 31, 2016PLN | Dec. 31, 2016BRL | Dec. 31, 2016JPY (¥) | |
Derivative [Line Items] | ||||||||||
Asset Derivatives Fair Value | $ 13,325 | $ 4,458 | ||||||||
Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Asset Derivatives Fair Value | 4,235 | 3,215 | ||||||||
Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Asset Derivatives Fair Value | 9,090 | 1,243 | ||||||||
Derivative, Gain (Loss) on Derivative, Net | (10,562) | (21,750) | $ (15,599) | |||||||
Foreign Exchange Contract [Member] | Foreign Currency Gain (Loss) [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | (1,542) | (27,321) | (21,162) | |||||||
Foreign Exchange Contract [Member] | Selling, General and Administrative Expenses [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | (8,543) | 7,508 | 4,652 | |||||||
BRI/EUR 1 [Member] | Short [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | BRL | BRL 28,304 | |||||||||
BRI/EUR 1 [Member] | Long [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | € 7,270 | |||||||||
Soybean Meal [Member] | Sales [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | 7 | 0 | 0 | |||||||
BRI/EUR 2 [Member] | Short [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | BRL | BRL 66,273 | |||||||||
BRI/EUR 2 [Member] | Long [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | 18,900 | |||||||||
EUR/USD [Member] | Short [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | 150,394 | |||||||||
EUR/USD [Member] | Long [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | 166,377 | |||||||||
EUR/PLN [Member] | Short [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | 10,444 | |||||||||
EUR/PLN [Member] | Long [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | PLN | PLN 47,000 | |||||||||
EUR/JPN [Member] | Short [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | 4,295 | |||||||||
EUR/JPN [Member] | Long [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | ¥ | ¥ 505,320 | |||||||||
EUR/CNY [Member] | Short [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | 34,337 | |||||||||
EUR/CNY [Member] | Long [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | ¥ | ¥ 254,639 | |||||||||
EUR/AUD [Member] | Short [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | 11,563 | |||||||||
EUR/AUD [Member] | Long [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | AUD | AUD 16,700 | |||||||||
EUR/GBP [Member] | Short [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | 1,405 | |||||||||
EUR/GBP [Member] | Long [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | £ | £ 1,200 | |||||||||
PLN/EUR [Member] | Short [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | PLN | PLN 19,111 | |||||||||
PLN/EUR [Member] | Long [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | € 4,312 | |||||||||
JPN/USD [Member] | Short [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | ¥ | ¥ 14,423 | |||||||||
JPN/USD [Member] | Long [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | 135 | |||||||||
Corn options and futures [Member] | Sales [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | 472 | (2) | 0 | |||||||
Corn options and futures [Member] | Cost of Sales [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | (1,411) | (2,067) | (71) | |||||||
Heating Oil Swaps And Options [Member] | Sales [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | 455 | 0 | 0 | |||||||
Heating Oil Swaps And Options [Member] | Cost of Sales [Member] | Not Designated as Hedging Instrument [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | $ 0 | $ 132 | $ 982 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 13,325 | $ 4,458 |
Total Assets | 13,325 | 4,458 |
Derivative liabilities | 730 | 4,437 |
Total Liabilities | 1,815,092 | 1,905,519 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Total Assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 13,325 | 4,458 |
Total Assets | 13,325 | 4,458 |
Derivative liabilities | 730 | 4,437 |
Total Liabilities | 1,815,092 | 1,905,519 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Total Assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 495,000 | |
Fair Value, Measurements, Recurring [Member] | Senior Notes [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | |
Fair Value, Measurements, Recurring [Member] | Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 495,000 | |
Fair Value, Measurements, Recurring [Member] | Senior Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | |
Fair Value, Measurements, Recurring [Member] | Term Loan A Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 120,403 | 277,874 |
Fair Value, Measurements, Recurring [Member] | Term Loan A Facility [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Term Loan A Facility [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 120,403 | 277,874 |
Fair Value, Measurements, Recurring [Member] | Term Loan A Facility [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Term Loan B Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 593,347 | 577,710 |
Fair Value, Measurements, Recurring [Member] | Term Loan B Facility [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Term Loan B Facility [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 593,347 | 577,710 |
Fair Value, Measurements, Recurring [Member] | Term Loan B Facility [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Revolving Credit Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 5,201 | 9,218 |
Fair Value, Measurements, Recurring [Member] | Revolving Credit Facility [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Revolving Credit Facility [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 5,201 | 9,218 |
Fair Value, Measurements, Recurring [Member] | Revolving Credit Facility [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Senior Notes 5.375% Due 2022 [Member] | Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 520,300 | 541,280 |
Senior Notes 5.375% Due 2022 [Member] | Senior Notes [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | 0 |
Senior Notes 5.375% Due 2022 [Member] | Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 520,300 | 541,280 |
Senior Notes 5.375% Due 2022 [Member] | Senior Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | $ 0 |
Senior Notes 4.75% Due 2022 [Member] | Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 575,111 | |
Senior Notes 4.75% Due 2022 [Member] | Senior Notes [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 0 | |
Senior Notes 4.75% Due 2022 [Member] | Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 575,111 | |
Senior Notes 4.75% Due 2022 [Member] | Senior Notes [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | $ 0 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) - Customer Concentration Risk [Member] - customer | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Concentration Risk [Line Items] | |||
Number Of Customers Accounted For More Than 10 Percent Of Entity's Net Sales | 0 | 0 | 0 |
Maximum [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% |
Contingencies (Details)
Contingencies (Details) $ in Millions | 1 Months Ended | ||
Mar. 31, 2016Partymi | Dec. 31, 2016USD ($) | Jan. 02, 2016USD ($) | |
Loss Contingencies [Line Items] | |||
Loss Contingency, Estimate of Possible Loss, Area of Land | mi | 8.3 | ||
Loss Contingency, Estimate of Possible Loss | $ 1,380 | ||
Loss Contingency, Number of Parties | Party | 100 | ||
Insurance Environmental and Litigation Matters [Member] | |||
Loss Contingencies [Line Items] | |||
Reserves for insurance, environmental and litigation contingencies | 51.9 | $ 54.6 | |
Insurance Settlements Receivable, Noncurrent | $ 15.9 | $ 12.2 |
Business Segments (Narrative) (
Business Segments (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2016USD ($)segment | Oct. 01, 2016USD ($) | Jul. 02, 2016USD ($) | Apr. 02, 2016USD ($) | Jan. 02, 2016USD ($) | Oct. 03, 2015USD ($) | Jul. 04, 2015USD ($) | Apr. 04, 2015USD ($) | Dec. 31, 2016USD ($)segment | Jan. 02, 2016USD ($) | Jan. 03, 2015USD ($) | Dec. 29, 2013segment | ||
Segment Reporting Information [Line Items] | |||||||||||||
Number of Business Segments | segment | 3 | 3 | 3 | ||||||||||
Net Sales | $ 887,277 | $ 853,856 | $ 877,341 | $ 779,641 | $ 809,675 | $ 853,762 | $ 859,315 | $ 874,694 | $ 3,398,115 | $ 3,397,446 | $ 3,956,443 | ||
Capital expenditures: | [1] | $ 243,523 | 229,848 | $ 228,918 | |||||||||
Vion Ingredients [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Capital expenditures: | $ 984,200 | ||||||||||||
[1] | Excludes the immaterial capital assets acquired in fiscal 2016 and fiscal 2015 and the VION Acquisition and Custom Blenders acquisition in fiscal 2014 of approximately $984.2 million |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | $ 887,277 | $ 853,856 | $ 877,341 | $ 779,641 | $ 809,675 | $ 853,762 | $ 859,315 | $ 874,694 | $ 3,398,115 | $ 3,397,446 | $ 3,956,443 | |
Cost of sales and operating expenses | 2,641,734 | 2,654,025 | 3,123,171 | |||||||||
Selling, general and administrative expense | 314,005 | 322,574 | 374,580 | |||||||||
Depreciation and amortization | 289,908 | 269,904 | 269,517 | |||||||||
Segment operating income/(loss) | 35,380 | 35,528 | 54,467 | 26,692 | 32,719 | 38,808 | 39,292 | 31,825 | 152,067 | 142,644 | 164,508 | |
Equity in net income of unconsolidated subsidiaries | 70,379 | 73,416 | 65,609 | |||||||||
Total other expense | (99,907) | (117,280) | (148,665) | |||||||||
Income before income taxes | 47,893 | $ 28,146 | $ 41,974 | $ 4,526 | 84,737 | $ 502 | $ 9,602 | $ 3,939 | 122,539 | 98,780 | 81,452 | |
Segment assets | 4,698,017 | 4,760,619 | 4,698,017 | 4,760,619 | ||||||||
Capital expenditures: | [1] | 243,523 | 229,848 | 228,918 | ||||||||
Long-Lived Assets | 3,804,715 | 3,828,831 | 3,804,715 | 3,828,831 | ||||||||
North America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 1,817,659 | 1,951,421 | 2,131,978 | |||||||||
Long-Lived Assets | 2,411,489 | 2,375,919 | 2,411,489 | 2,375,919 | ||||||||
Europe | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 1,225,397 | 1,066,779 | 1,438,320 | |||||||||
Long-Lived Assets | 1,158,087 | 1,215,341 | 1,158,087 | 1,215,341 | ||||||||
China | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 218,480 | 234,978 | 229,876 | |||||||||
Long-Lived Assets | 152,150 | 169,832 | 152,150 | 169,832 | ||||||||
South America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 61,276 | 68,226 | 73,241 | |||||||||
Long-Lived Assets | 74,837 | 60,396 | 74,837 | 60,396 | ||||||||
Other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 75,303 | 76,042 | 83,028 | |||||||||
Long-Lived Assets | 8,152 | 7,343 | 8,152 | 7,343 | ||||||||
Feed Ingredients [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 2,089,145 | 2,074,333 | 2,421,462 | |||||||||
Cost of sales and operating expenses | 1,624,858 | 1,613,402 | 1,864,835 | |||||||||
Gross Margin | 464,287 | 460,931 | 556,627 | |||||||||
Selling, general and administrative expense | 169,648 | 178,624 | 205,484 | |||||||||
Acquisition costs | 0 | 0 | 0 | |||||||||
Depreciation and amortization | 178,845 | 165,854 | 158,871 | |||||||||
Segment operating income/(loss) | 115,794 | 116,453 | 192,272 | |||||||||
Equity in net income of unconsolidated subsidiaries | 467 | 1,521 | 1,842 | |||||||||
Segment income | 116,261 | 117,974 | 194,114 | |||||||||
Segment assets | 2,464,509 | 2,438,869 | 2,464,509 | 2,438,869 | ||||||||
Capital expenditures: | 167,313 | 153,894 | 135,923 | |||||||||
Food Ingredients [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 1,061,912 | 1,094,918 | 1,248,352 | |||||||||
Cost of sales and operating expenses | 834,410 | 863,562 | 1,029,488 | |||||||||
Gross Margin | 227,502 | 231,356 | 218,864 | |||||||||
Selling, general and administrative expense | 96,170 | 103,301 | 118,716 | |||||||||
Acquisition costs | 0 | 0 | 0 | |||||||||
Depreciation and amortization | 70,120 | 66,817 | 73,274 | |||||||||
Segment operating income/(loss) | 61,212 | 61,238 | 26,874 | |||||||||
Equity in net income of unconsolidated subsidiaries | 0 | 0 | 0 | |||||||||
Segment income | 61,212 | 61,238 | 26,874 | |||||||||
Segment assets | 1,414,409 | 1,448,014 | 1,414,409 | 1,448,014 | ||||||||
Capital expenditures: | 50,020 | 49,066 | 61,657 | |||||||||
Fuel Ingredients [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 247,058 | 228,195 | 286,629 | |||||||||
Cost of sales and operating expenses | 182,466 | 177,061 | 228,848 | |||||||||
Gross Margin | 64,592 | 51,134 | 57,781 | |||||||||
Selling, general and administrative expense | 6,895 | 7,264 | 8,596 | |||||||||
Acquisition costs | 0 | 0 | 0 | |||||||||
Depreciation and amortization | 28,531 | 26,711 | 27,898 | |||||||||
Segment operating income/(loss) | 29,166 | 17,159 | 21,287 | |||||||||
Equity in net income of unconsolidated subsidiaries | 69,912 | 71,895 | 63,767 | |||||||||
Segment income | 99,078 | 89,054 | 85,054 | |||||||||
Segment assets | 657,637 | 631,968 | 657,637 | 631,968 | ||||||||
Capital expenditures: | 22,323 | 19,478 | 21,392 | |||||||||
Corporate Segment [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 0 | 0 | 0 | |||||||||
Cost of sales and operating expenses | 0 | 0 | 0 | |||||||||
Gross Margin | 0 | 0 | 0 | |||||||||
Selling, general and administrative expense | 41,292 | 33,385 | 41,784 | |||||||||
Acquisition costs | 401 | 8,299 | 24,667 | |||||||||
Depreciation and amortization | 12,412 | 10,522 | 9,474 | |||||||||
Segment operating income/(loss) | (54,105) | (52,206) | (75,925) | |||||||||
Equity in net income of unconsolidated subsidiaries | 0 | 0 | 0 | |||||||||
Segment income | (54,105) | (52,206) | (75,925) | |||||||||
Segment assets | 161,462 | 241,768 | 161,462 | 241,768 | ||||||||
Capital expenditures: | 3,867 | 7,410 | 9,946 | |||||||||
Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Sales | 3,398,115 | 3,397,446 | 3,956,443 | |||||||||
Cost of sales and operating expenses | 2,641,734 | 2,654,025 | 3,123,171 | |||||||||
Gross Margin | 756,381 | 743,421 | 833,272 | |||||||||
Selling, general and administrative expense | 314,005 | 322,574 | 374,580 | |||||||||
Acquisition costs | 401 | 8,299 | 24,667 | |||||||||
Depreciation and amortization | 289,908 | 269,904 | 269,517 | |||||||||
Segment operating income/(loss) | 152,067 | 142,644 | 164,508 | |||||||||
Equity in net income of unconsolidated subsidiaries | 70,379 | 73,416 | 65,609 | |||||||||
Segment income | 222,446 | 216,060 | $ 230,117 | |||||||||
Segment assets | $ 4,698,017 | $ 4,760,619 | $ 4,698,017 | $ 4,760,619 | ||||||||
[1] | Excludes the immaterial capital assets acquired in fiscal 2016 and fiscal 2015 and the VION Acquisition and Custom Blenders acquisition in fiscal 2014 of approximately $984.2 million |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net Sales | $ 887,277 | $ 853,856 | $ 877,341 | $ 779,641 | $ 809,675 | $ 853,762 | $ 859,315 | $ 874,694 | $ 3,398,115 | $ 3,397,446 | $ 3,956,443 |
Segment operating income/(loss) | 35,380 | 35,528 | 54,467 | 26,692 | 32,719 | 38,808 | 39,292 | 31,825 | 152,067 | 142,644 | 164,508 |
Income from operations before income taxes | 47,893 | 28,146 | 41,974 | 4,526 | 84,737 | 502 | 9,602 | 3,939 | 122,539 | 98,780 | 81,452 |
Net income | 41,680 | 28,890 | 33,991 | 2,663 | 85,875 | (7,357) | 4,937 | 1,824 | 107,224 | 85,279 | 68,311 |
Net income attributable to noncontrolling interests | (1,139) | (196) | (1,992) | (1,584) | (1,446) | (1,730) | (1,857) | (1,715) | (4,911) | (6,748) | (4,096) |
Net income attributable to Darling | $ 40,541 | $ 28,694 | $ 31,999 | $ 1,079 | $ 84,429 | $ (9,087) | $ 3,080 | $ 109 | $ 102,313 | $ 78,531 | $ 64,215 |
Basic (in dollars per share) | $ 0.25 | $ 0.17 | $ 0.19 | $ 0.01 | $ 0.51 | $ (0.06) | $ 0.02 | $ 0 | $ 0.62 | $ 0.48 | $ 0.39 |
Diluted (in dollars per share) | $ 0.25 | $ 0.17 | $ 0.19 | $ 0.01 | $ 0.51 | $ (0.06) | $ 0.02 | $ 0 | $ 0.62 | $ 0.48 | $ 0.39 |
Cost of sales and operating expenses | $ 2,641,734 | $ 2,654,025 | $ 3,123,171 | ||||||||
Acquisition and integration costs | $ 100 | $ 300 | $ 500 | $ 1,300 | $ 1,200 | $ 5,300 | 401 | 8,299 | 24,667 | ||
Insured Event, Gain (Loss) | 5,600 | ||||||||||
Gain (Loss) on Extinguishment of Debt | $ (10,600) | (528) | (10,633) | (4,330) | |||||||
Foreign currency losses | $ (1,854) | $ (4,911) | $ (13,548) | ||||||||
Income Tax Credits and Adjustments | $ 85,400 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Feb. 23, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 |
Related Party Transaction [Line Items] | ||||
Repayments of Long-term Debt | $ 204,428,000 | $ 609,255,000 | $ 333,762,000 | |
Diamond Green Diesel Holdings LLC Joint Venture [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue from Related Parties | 150,500,000 | 158,700,000 | 159,800,000 | |
Accounts Receivable, Related Parties, Current | 6,300,000 | 5,100,000 | ||
Related Party, Sales Eliminated | 4,100,000 | 5,000,000 | 5,100,000 | |
Deferred Revenue, Additions | 700,000 | 800,000 | $ 1,300,000 | |
Revolving Credit Facility [Member] | Revolving Loan Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 10,000,000 | |||
Repayments of Long-term Debt | 2,500,000 | $ 3,500,000 | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 | |||
Lender One [Member] | Revolving Credit Facility [Member] | Revolving Loan Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | |||
LIBO Rate [Member] | Revolving Credit Facility [Member] | Revolving Loan Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Debt instrument, basis spread on variable rate | 2.50% |
Guarantor Financial Informat104
Guarantor Financial Information (Narrative) (Details) | Dec. 31, 2016 |
Guarantor Financial Information [Abstract] | |
Company's percentage of directly and indirectly owned subsidiaries | 100.00% |
Guarantor Financial Informat105
Guarantor Financial Information Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | Dec. 28, 2013 |
Assets: | ||||
Cash and cash equivalents | $ 114,564 | $ 156,884 | $ 108,784 | $ 870,857 |
Restricted cash | 293 | 331 | ||
Accounts receivable | 388,397 | 371,392 | ||
Inventories | 330,815 | 344,583 | ||
Income taxes refundable | 7,479 | 11,963 | ||
Prepaid expenses | 29,984 | 36,175 | ||
Other current assets | 21,770 | 10,460 | ||
Total current assets | 893,302 | 931,788 | ||
Investment in subsidiaries | 0 | 0 | ||
Property, plant and equipment, net | 1,515,575 | 1,508,167 | ||
Intangible assets, net | 711,927 | 782,349 | ||
Goodwill | 1,225,893 | 1,233,102 | 1,320,419 | |
Investment in unconsolidated subsidiaries | 292,717 | 247,238 | ||
Other assets | 43,613 | 41,623 | ||
Non-current deferred tax asset | 14,990 | 16,352 | ||
Total assets | 4,698,017 | 4,760,619 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Current portion of long-term debt | 23,247 | 45,166 | ||
Accounts payable, principally trade | 180,895 | 149,998 | ||
Income taxes payable | 4,913 | 6,679 | ||
Accrued expenses | 242,796 | 239,825 | ||
Total current liabilities | 451,851 | 441,668 | ||
Long-term debt, net of current portion | 1,727,696 | 1,885,851 | ||
Other noncurrent liabilities | 96,114 | 97,809 | ||
Deferred income taxes | 346,134 | 360,681 | ||
Total liabilities | 2,621,795 | 2,786,009 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2,076,222 | 1,974,610 | 2,051,134 | 2,020,952 |
Total liabilities and stockholders' equity | 4,698,017 | 4,760,619 | ||
Issuer [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 1,470 | 3,443 | 10,447 | 857,267 |
Restricted cash | 103 | 102 | ||
Accounts receivable | 39,209 | 184,472 | ||
Inventories | 16,573 | 13,564 | ||
Income taxes refundable | 3,566 | 7,695 | ||
Prepaid expenses | 11,152 | 13,322 | ||
Other current assets | 5,859 | 5,273 | ||
Total current assets | 77,932 | 227,871 | ||
Investment in subsidiaries | 4,296,200 | 4,072,855 | ||
Property, plant and equipment, net | 233,456 | 224,208 | ||
Intangible assets, net | 13,746 | 17,794 | ||
Goodwill | 21,860 | 21,860 | ||
Investment in unconsolidated subsidiaries | 1,438 | 0 | ||
Other assets | 36,063 | 36,488 | ||
Non-current deferred tax asset | 0 | 0 | ||
Total assets | 4,680,695 | 4,601,076 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Current portion of long-term debt | 4,220 | 20,328 | ||
Accounts payable, principally trade | 116,075 | 6,981 | ||
Income taxes payable | (383) | (383) | ||
Accrued expenses | 86,581 | 82,854 | ||
Total current liabilities | 206,493 | 109,780 | ||
Long-term debt, net of current portion | 1,109,523 | 1,234,002 | ||
Other noncurrent liabilities | 63,072 | 57,578 | ||
Deferred income taxes | 140,543 | 147,416 | ||
Total liabilities | 1,519,631 | 1,548,776 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 3,161,064 | 3,052,300 | ||
Total liabilities and stockholders' equity | 4,680,695 | 4,601,076 | ||
Guarantors [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 5,754 | 3,993 | 14,460 | 6,117 |
Restricted cash | 0 | 0 | ||
Accounts receivable | 97,220 | 81,644 | ||
Inventories | 85,890 | 89,078 | ||
Income taxes refundable | 0 | 0 | ||
Prepaid expenses | 2,769 | 2,262 | ||
Other current assets | 3,165 | 24 | ||
Total current assets | 194,798 | 177,001 | ||
Investment in subsidiaries | 1,154,398 | 1,141,644 | ||
Property, plant and equipment, net | 497,312 | 477,446 | ||
Intangible assets, net | 291,724 | 326,231 | ||
Goodwill | 549,960 | 549,690 | ||
Investment in unconsolidated subsidiaries | 0 | 0 | ||
Other assets | 396,222 | 499,764 | ||
Non-current deferred tax asset | 0 | 0 | ||
Total assets | 3,084,414 | 3,171,776 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Current portion of long-term debt | 0 | 0 | ||
Accounts payable, principally trade | 18,142 | 210,926 | ||
Income taxes payable | 373 | 373 | ||
Accrued expenses | 33,834 | 29,037 | ||
Total current liabilities | 52,349 | 240,336 | ||
Long-term debt, net of current portion | 0 | 0 | ||
Other noncurrent liabilities | 0 | 1,999 | ||
Deferred income taxes | 0 | 0 | ||
Total liabilities | 52,349 | 242,335 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 3,032,065 | 2,929,441 | ||
Total liabilities and stockholders' equity | 3,084,414 | 3,171,776 | ||
Non-guarantors [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 107,340 | 149,448 | 83,877 | 7,473 |
Restricted cash | 190 | 229 | ||
Accounts receivable | 339,251 | 310,932 | ||
Inventories | 228,352 | 241,941 | ||
Income taxes refundable | 3,913 | 4,268 | ||
Prepaid expenses | 16,063 | 20,591 | ||
Other current assets | 19,221 | 22,852 | ||
Total current assets | 714,330 | 750,261 | ||
Investment in subsidiaries | 909,263 | 837,604 | ||
Property, plant and equipment, net | 784,807 | 806,513 | ||
Intangible assets, net | 406,457 | 438,324 | ||
Goodwill | 654,073 | 661,552 | ||
Investment in unconsolidated subsidiaries | 291,279 | 247,238 | ||
Other assets | 160,505 | 314,893 | ||
Non-current deferred tax asset | 14,990 | 16,352 | ||
Total assets | 3,935,704 | 4,072,737 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Current portion of long-term debt | 25,502 | 42,527 | ||
Accounts payable, principally trade | 130,718 | 122,136 | ||
Income taxes payable | 4,923 | 6,689 | ||
Accrued expenses | 125,624 | 143,547 | ||
Total current liabilities | 286,767 | 314,899 | ||
Long-term debt, net of current portion | 1,167,349 | 1,461,371 | ||
Other noncurrent liabilities | 33,042 | 38,232 | ||
Deferred income taxes | 205,591 | 213,265 | ||
Total liabilities | 1,692,749 | 2,027,767 | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 2,242,955 | 2,044,970 | ||
Total liabilities and stockholders' equity | 3,935,704 | 4,072,737 | ||
Eliminations [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Restricted cash | 0 | 0 | ||
Accounts receivable | (87,283) | (205,656) | ||
Inventories | 0 | 0 | ||
Income taxes refundable | 0 | 0 | ||
Prepaid expenses | 0 | 0 | ||
Other current assets | (6,475) | (17,689) | ||
Total current assets | (93,758) | (223,345) | ||
Investment in subsidiaries | (6,359,861) | (6,052,103) | ||
Property, plant and equipment, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investment in unconsolidated subsidiaries | 0 | 0 | ||
Other assets | (549,177) | (809,522) | ||
Non-current deferred tax asset | 0 | 0 | ||
Total assets | (7,002,796) | (7,084,970) | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Current portion of long-term debt | (6,475) | (17,689) | ||
Accounts payable, principally trade | (84,040) | (190,045) | ||
Income taxes payable | 0 | 0 | ||
Accrued expenses | (3,243) | (15,613) | ||
Total current liabilities | (93,758) | (223,347) | ||
Long-term debt, net of current portion | (549,176) | (809,522) | ||
Other noncurrent liabilities | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Total liabilities | (642,934) | (1,032,869) | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (6,359,862) | (6,052,101) | ||
Total liabilities and stockholders' equity | $ (7,002,796) | $ (7,084,970) |
Guarantor Financial Informat106
Guarantor Financial Information Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Net Sales | $ 887,277 | $ 853,856 | $ 877,341 | $ 779,641 | $ 809,675 | $ 853,762 | $ 859,315 | $ 874,694 | $ 3,398,115 | $ 3,397,446 | $ 3,956,443 |
Costs and expenses: | |||||||||||
Cost of sales and operating expenses | 2,641,734 | 2,654,025 | 3,123,171 | ||||||||
Selling, general and administrative expense | 314,005 | 322,574 | 374,580 | ||||||||
Depreciation and amortization | 289,908 | 269,904 | 269,517 | ||||||||
Acquisition and integration costs | 100 | 300 | 500 | 1,300 | 1,200 | 5,300 | 401 | 8,299 | 24,667 | ||
Total costs and expenses | 3,246,048 | 3,254,802 | 3,791,935 | ||||||||
Operating income | 35,380 | 35,528 | 54,467 | 26,692 | 32,719 | 38,808 | 39,292 | 31,825 | 152,067 | 142,644 | 164,508 |
Interest expense | (94,187) | (105,530) | (135,416) | ||||||||
Foreign currency losses | (1,854) | (4,911) | (13,548) | ||||||||
Other income/(expense), net | (3,866) | (6,839) | 299 | ||||||||
Equity in net income of unconsolidated subsidiaries | 70,379 | 73,416 | 65,609 | ||||||||
Earnings in investments in subsidiaries | 0 | 0 | 0 | ||||||||
Income from operations before income taxes | 47,893 | 28,146 | 41,974 | 4,526 | 84,737 | 502 | 9,602 | 3,939 | 122,539 | 98,780 | 81,452 |
Income taxes (benefit) | 15,315 | 13,501 | 13,141 | ||||||||
Net income attributable to noncontrolling interests | (1,139) | (196) | (1,992) | (1,584) | (1,446) | (1,730) | (1,857) | (1,715) | (4,911) | (6,748) | (4,096) |
Net income attributable to Darling | $ 40,541 | $ 28,694 | $ 31,999 | $ 1,079 | $ 84,429 | $ (9,087) | $ 3,080 | $ 109 | 102,313 | 78,531 | 64,215 |
Issuer [Member] | |||||||||||
Net Sales | 501,856 | 475,213 | 557,316 | ||||||||
Costs and expenses: | |||||||||||
Cost of sales and operating expenses | 392,876 | 369,928 | 421,883 | ||||||||
Selling, general and administrative expense | 130,573 | 122,509 | 145,258 | ||||||||
Depreciation and amortization | 41,106 | 34,889 | 31,183 | ||||||||
Acquisition and integration costs | 0 | 3,177 | 20,410 | ||||||||
Total costs and expenses | 564,555 | 530,503 | 618,734 | ||||||||
Operating income | (62,699) | (55,290) | (61,418) | ||||||||
Interest expense | (60,971) | (60,945) | (97,912) | ||||||||
Foreign currency losses | 122 | (123) | (12,244) | ||||||||
Other income/(expense), net | (13,538) | (22,455) | (3,717) | ||||||||
Equity in net income of unconsolidated subsidiaries | (1,236) | 0 | 0 | ||||||||
Earnings in investments in subsidiaries | 223,347 | 198,371 | 223,790 | ||||||||
Income from operations before income taxes | 85,025 | 59,558 | 48,499 | ||||||||
Income taxes (benefit) | (17,288) | (18,973) | (15,716) | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Darling | 102,313 | 78,531 | 64,215 | ||||||||
Guarantors [Member] | |||||||||||
Net Sales | 1,341,925 | 1,363,279 | 1,620,054 | ||||||||
Costs and expenses: | |||||||||||
Cost of sales and operating expenses | 1,085,582 | 1,108,864 | 1,330,038 | ||||||||
Selling, general and administrative expense | 51,029 | 55,691 | 54,070 | ||||||||
Depreciation and amortization | 105,261 | 98,400 | 83,957 | ||||||||
Acquisition and integration costs | 0 | 0 | 0 | ||||||||
Total costs and expenses | 1,241,872 | 1,262,955 | 1,468,065 | ||||||||
Operating income | 100,053 | 100,324 | 151,989 | ||||||||
Interest expense | 17,492 | 18,839 | 21,231 | ||||||||
Foreign currency losses | (283) | (1,649) | (417) | ||||||||
Other income/(expense), net | 106 | 435 | (19) | ||||||||
Equity in net income of unconsolidated subsidiaries | 0 | 0 | 0 | ||||||||
Earnings in investments in subsidiaries | 0 | 0 | 0 | ||||||||
Income from operations before income taxes | 117,368 | 117,949 | 172,784 | ||||||||
Income taxes (benefit) | 14,669 | 16,121 | 17,534 | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Darling | 102,699 | 101,828 | 155,250 | ||||||||
Non-guarantors [Member] | |||||||||||
Net Sales | 1,752,844 | 1,759,800 | 2,063,310 | ||||||||
Costs and expenses: | |||||||||||
Cost of sales and operating expenses | 1,361,786 | 1,376,079 | 1,655,487 | ||||||||
Selling, general and administrative expense | 132,403 | 144,374 | 175,252 | ||||||||
Depreciation and amortization | 143,541 | 136,615 | 154,377 | ||||||||
Acquisition and integration costs | 401 | 5,122 | 4,257 | ||||||||
Total costs and expenses | 1,638,131 | 1,662,190 | 1,989,373 | ||||||||
Operating income | 114,713 | 97,610 | 73,937 | ||||||||
Interest expense | (50,708) | (63,424) | (58,554) | ||||||||
Foreign currency losses | (1,693) | (3,139) | (887) | ||||||||
Other income/(expense), net | 9,566 | 15,181 | 3,854 | ||||||||
Equity in net income of unconsolidated subsidiaries | 71,615 | 73,416 | 65,609 | ||||||||
Earnings in investments in subsidiaries | 0 | 0 | 0 | ||||||||
Income from operations before income taxes | 143,493 | 119,644 | 83,959 | ||||||||
Income taxes (benefit) | 17,934 | 16,353 | 11,323 | ||||||||
Net income attributable to noncontrolling interests | (4,911) | (6,748) | (4,096) | ||||||||
Net income attributable to Darling | 120,648 | 96,543 | 68,540 | ||||||||
Eliminations [Member] | |||||||||||
Net Sales | (198,510) | (200,846) | (284,237) | ||||||||
Costs and expenses: | |||||||||||
Cost of sales and operating expenses | (198,510) | (200,846) | (284,237) | ||||||||
Selling, general and administrative expense | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Acquisition and integration costs | 0 | 0 | 0 | ||||||||
Total costs and expenses | (198,510) | (200,846) | (284,237) | ||||||||
Operating income | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | (181) | ||||||||
Foreign currency losses | 0 | 0 | 0 | ||||||||
Other income/(expense), net | 0 | 0 | 181 | ||||||||
Equity in net income of unconsolidated subsidiaries | 0 | 0 | 0 | ||||||||
Earnings in investments in subsidiaries | (223,347) | (198,371) | (223,790) | ||||||||
Income from operations before income taxes | (223,347) | (198,371) | (223,790) | ||||||||
Income taxes (benefit) | 0 | 0 | 0 | ||||||||
Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to Darling | $ (223,347) | $ (198,371) | $ (223,790) |
Guarantor Financial Informat107
Guarantor Financial Information Guarantor Financial Information Condensed Consolidating Statements of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | |
Net income | $ 41,680 | $ 28,890 | $ 33,991 | $ 2,663 | $ 85,875 | $ (7,357) | $ 4,937 | $ 1,824 | $ 107,224 | $ 85,279 | $ 68,311 |
Foreign currency translation adjustments | (5,593) | (162,436) | (119,684) | ||||||||
Pension adjustments | (1,016) | 4,202 | (20,381) | ||||||||
Total other comprehensive income, net of tax | (5,984) | (156,467) | (141,437) | ||||||||
Total comprehensive income/(loss) | 101,240 | (71,188) | (73,126) | ||||||||
Comprehensive income attributable to noncontrolling interests | 3,015 | 9,139 | 10,296 | ||||||||
Comprehensive income/(loss) attributable to Darling | 98,225 | (80,327) | (83,422) | ||||||||
Natural Gas Swap [Member] | |||||||||||
Total natural gas derivatives | (113) | ||||||||||
Corn Option [Member] | |||||||||||
Total natural gas derivatives | 625 | 1,767 | (1,259) | ||||||||
Issuer [Member] | |||||||||||
Net income | 107,224 | 85,279 | 68,311 | ||||||||
Foreign currency translation adjustments | 0 | 0 | 0 | ||||||||
Pension adjustments | 1,766 | 83 | (11,844) | ||||||||
Total other comprehensive income, net of tax | 2,391 | 1,850 | (13,216) | ||||||||
Total comprehensive income/(loss) | 109,615 | 87,129 | 55,095 | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income/(loss) attributable to Darling | 109,615 | 87,129 | 55,095 | ||||||||
Issuer [Member] | Natural Gas Swap [Member] | |||||||||||
Total natural gas derivatives | (113) | ||||||||||
Issuer [Member] | Corn Option [Member] | |||||||||||
Total natural gas derivatives | 625 | 1,767 | (1,259) | ||||||||
Guarantors [Member] | |||||||||||
Net income | 102,699 | 101,828 | 155,250 | ||||||||
Foreign currency translation adjustments | 0 | 0 | 0 | ||||||||
Pension adjustments | 0 | 109 | (34) | ||||||||
Total other comprehensive income, net of tax | 0 | 109 | (34) | ||||||||
Total comprehensive income/(loss) | 102,699 | 101,937 | 155,216 | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income/(loss) attributable to Darling | 102,699 | 101,937 | 155,216 | ||||||||
Guarantors [Member] | Natural Gas Swap [Member] | |||||||||||
Total natural gas derivatives | 0 | ||||||||||
Guarantors [Member] | Corn Option [Member] | |||||||||||
Total natural gas derivatives | 0 | 0 | 0 | ||||||||
Non-guarantors [Member] | |||||||||||
Net income | 120,648 | 96,543 | 68,540 | ||||||||
Foreign currency translation adjustments | (5,593) | (162,436) | (119,684) | ||||||||
Pension adjustments | (2,782) | 4,010 | (8,503) | ||||||||
Total other comprehensive income, net of tax | (8,375) | (158,426) | (128,187) | ||||||||
Total comprehensive income/(loss) | 112,273 | (61,883) | (59,647) | ||||||||
Comprehensive income attributable to noncontrolling interests | 3,015 | 9,139 | 10,296 | ||||||||
Comprehensive income/(loss) attributable to Darling | 109,258 | (71,022) | (69,943) | ||||||||
Non-guarantors [Member] | Natural Gas Swap [Member] | |||||||||||
Total natural gas derivatives | 0 | ||||||||||
Non-guarantors [Member] | Corn Option [Member] | |||||||||||
Total natural gas derivatives | 0 | 0 | 0 | ||||||||
Eliminations [Member] | |||||||||||
Net income | (223,347) | (198,371) | (223,790) | ||||||||
Foreign currency translation adjustments | 0 | 0 | 0 | ||||||||
Pension adjustments | 0 | 0 | 0 | ||||||||
Total other comprehensive income, net of tax | 0 | 0 | 0 | ||||||||
Total comprehensive income/(loss) | (223,347) | (198,371) | (223,790) | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive income/(loss) attributable to Darling | (223,347) | (198,371) | (223,790) | ||||||||
Eliminations [Member] | Natural Gas Swap [Member] | |||||||||||
Total natural gas derivatives | 0 | ||||||||||
Eliminations [Member] | Corn Option [Member] | |||||||||||
Total natural gas derivatives | $ 0 | $ 0 | $ 0 |
Guarantor Financial Informat108
Guarantor Financial Information Condensed Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Oct. 03, 2015 | Jul. 04, 2015 | Apr. 04, 2015 | Dec. 31, 2016 | Jan. 02, 2016 | Jan. 03, 2015 | ||
Net income | $ 41,680 | $ 28,890 | $ 33,991 | $ 2,663 | $ 85,875 | $ (7,357) | $ 4,937 | $ 1,824 | $ 107,224 | $ 85,279 | $ 68,311 | |
Cash flows from operating activities: | ||||||||||||
Earnings in investments in subsidiaries | 0 | 0 | 0 | |||||||||
Other operating cash flows | 283,812 | 335,680 | 206,861 | |||||||||
Net cash provided by operating activities | 391,036 | 420,959 | 275,172 | |||||||||
Cash flows from investing activities: | ||||||||||||
Capital expenditures | [1] | (243,523) | (229,848) | (228,918) | ||||||||
Acquisitions, net of cash acquired | (8,511) | (377) | (2,094,400) | |||||||||
Investment in unconsolidated subsidiary | 0 | 0 | 0 | |||||||||
Note receivable from affiliates | 0 | 0 | 0 | |||||||||
Gross proceeds from sale of property, plant and equipment and other assets | 7,329 | 3,840 | 9,262 | |||||||||
Proceeds from insurance settlement | 1,537 | 561 | 1,550 | |||||||||
Payments related to routes and other intangibles | (23) | (3,845) | (11,288) | |||||||||
Net cash used in investing activities | (243,191) | (229,669) | (2,323,794) | |||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from long-term debt | 36,327 | 590,745 | 1,842,184 | |||||||||
Payments on long-term debt | (204,428) | (609,255) | (333,762) | |||||||||
Borrowings from revolving credit facility | 99,276 | 78,244 | 170,143 | |||||||||
Payments on revolving credit facility | (104,028) | (166,755) | (351,589) | |||||||||
Net cash overdraft financing | 1,071 | (1,261) | 4,077 | |||||||||
Deferred loan costs | (3,879) | (17,310) | (45,223) | |||||||||
Issuance of common stock | 188 | 171 | 416 | |||||||||
Repurchase of treasury stock | (5,000) | (5,912) | 0 | |||||||||
Contributions from parent | 0 | 0 | 0 | |||||||||
Minimum withholding taxes paid on stock awards | (1,843) | (4,874) | (10,026) | |||||||||
Excess tax benefit from stock-based compensation | 0 | 0 | 2,420 | |||||||||
Addition/(deductions) of noncontrolling interest | 0 | (87) | 1,201 | |||||||||
Distributions to noncontrolling interests | (1,552) | (3,295) | (4,272) | |||||||||
Net cash provided/(used) in financing activities | (183,868) | (139,589) | 1,275,569 | |||||||||
Effect of exchange rate changes on cash flows | (6,297) | (3,601) | 10,980 | |||||||||
Net increase/(decrease) in cash and cash equivalents | (42,320) | 48,100 | (762,073) | |||||||||
Cash and cash equivalents at beginning of year | 156,884 | 108,784 | 156,884 | 108,784 | 870,857 | |||||||
Cash and cash equivalents at end of year | 114,564 | 156,884 | 114,564 | 156,884 | 108,784 | |||||||
Issuer [Member] | ||||||||||||
Net income | 107,224 | 85,279 | 68,311 | |||||||||
Cash flows from operating activities: | ||||||||||||
Earnings in investments in subsidiaries | (223,347) | (198,371) | (223,790) | |||||||||
Other operating cash flows | 317,040 | 250,597 | 226,120 | |||||||||
Net cash provided by operating activities | 200,917 | 137,505 | 70,641 | |||||||||
Cash flows from investing activities: | ||||||||||||
Capital expenditures | (51,330) | (46,574) | (39,248) | |||||||||
Acquisitions, net of cash acquired | 0 | 0 | 0 | |||||||||
Investment in unconsolidated subsidiary | 0 | (20) | (1,483,007) | |||||||||
Note receivable from affiliates | 0 | 0 | 0 | |||||||||
Gross proceeds from sale of property, plant and equipment and other assets | 2,784 | 1,035 | 1,522 | |||||||||
Proceeds from insurance settlement | 0 | 71 | 1,350 | |||||||||
Payments related to routes and other intangibles | 0 | 0 | (9,640) | |||||||||
Net cash used in investing activities | (48,546) | (45,488) | (1,529,023) | |||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from long-term debt | 0 | 0 | 1,100,000 | |||||||||
Payments on long-term debt | (143,935) | (16,111) | (264,500) | |||||||||
Borrowings from revolving credit facility | 94,000 | 25,000 | 122,445 | |||||||||
Payments on revolving credit facility | (94,000) | (90,000) | (297,445) | |||||||||
Net cash overdraft financing | 0 | 0 | 0 | |||||||||
Deferred loan costs | (3,879) | (7,295) | (41,748) | |||||||||
Issuance of common stock | 188 | 171 | 416 | |||||||||
Repurchase of treasury stock | (5,000) | (5,912) | ||||||||||
Contributions from parent | 0 | 0 | 0 | |||||||||
Minimum withholding taxes paid on stock awards | (1,718) | (4,874) | (10,026) | |||||||||
Excess tax benefit from stock-based compensation | 2,420 | |||||||||||
Addition/(deductions) of noncontrolling interest | 0 | 0 | ||||||||||
Distributions to noncontrolling interests | 0 | 0 | 0 | |||||||||
Net cash provided/(used) in financing activities | (154,344) | (99,021) | 611,562 | |||||||||
Effect of exchange rate changes on cash flows | 0 | 0 | 0 | |||||||||
Net increase/(decrease) in cash and cash equivalents | (1,973) | (7,004) | (846,820) | |||||||||
Cash and cash equivalents at beginning of year | 3,443 | 10,447 | 3,443 | 10,447 | 857,267 | |||||||
Cash and cash equivalents at end of year | 1,470 | 3,443 | 1,470 | 3,443 | 10,447 | |||||||
Guarantors [Member] | ||||||||||||
Net income | 102,699 | 101,828 | 155,250 | |||||||||
Cash flows from operating activities: | ||||||||||||
Earnings in investments in subsidiaries | 0 | 0 | 0 | |||||||||
Other operating cash flows | (100,970) | (53,098) | (34,238) | |||||||||
Net cash provided by operating activities | 1,729 | 48,730 | 121,012 | |||||||||
Cash flows from investing activities: | ||||||||||||
Capital expenditures | (91,340) | (91,702) | (84,299) | |||||||||
Acquisitions, net of cash acquired | 0 | 0 | (19,394) | |||||||||
Investment in unconsolidated subsidiary | (12,754) | (45,103) | (1,442,788) | |||||||||
Note receivable from affiliates | 103,056 | 76,019 | (204,074) | |||||||||
Gross proceeds from sale of property, plant and equipment and other assets | 1,070 | 1,154 | 5,155 | |||||||||
Proceeds from insurance settlement | 0 | 490 | 200 | |||||||||
Payments related to routes and other intangibles | 0 | 0 | 0 | |||||||||
Net cash used in investing activities | 32 | (59,142) | (1,745,200) | |||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from long-term debt | 0 | 0 | 0 | |||||||||
Payments on long-term debt | 0 | (55) | (87) | |||||||||
Borrowings from revolving credit facility | 0 | 0 | 0 | |||||||||
Payments on revolving credit facility | 0 | 0 | 0 | |||||||||
Net cash overdraft financing | 0 | 0 | 0 | |||||||||
Deferred loan costs | 0 | 0 | 0 | |||||||||
Issuance of common stock | 0 | 0 | 0 | |||||||||
Repurchase of treasury stock | 0 | 0 | ||||||||||
Contributions from parent | 0 | 0 | 1,632,618 | |||||||||
Minimum withholding taxes paid on stock awards | 0 | 0 | 0 | |||||||||
Excess tax benefit from stock-based compensation | 0 | |||||||||||
Addition/(deductions) of noncontrolling interest | 0 | 0 | ||||||||||
Distributions to noncontrolling interests | 0 | 0 | 0 | |||||||||
Net cash provided/(used) in financing activities | 0 | (55) | 1,632,531 | |||||||||
Effect of exchange rate changes on cash flows | 0 | 0 | 0 | |||||||||
Net increase/(decrease) in cash and cash equivalents | 1,761 | (10,467) | 8,343 | |||||||||
Cash and cash equivalents at beginning of year | 3,993 | 14,460 | 3,993 | 14,460 | 6,117 | |||||||
Cash and cash equivalents at end of year | 5,754 | 3,993 | 5,754 | 3,993 | 14,460 | |||||||
Non-guarantors [Member] | ||||||||||||
Net income | 120,648 | 96,543 | 68,540 | |||||||||
Cash flows from operating activities: | ||||||||||||
Earnings in investments in subsidiaries | 0 | 0 | 0 | |||||||||
Other operating cash flows | 67,742 | 138,181 | 14,979 | |||||||||
Net cash provided by operating activities | 188,390 | 234,724 | 83,519 | |||||||||
Cash flows from investing activities: | ||||||||||||
Capital expenditures | (100,853) | (91,572) | (105,371) | |||||||||
Acquisitions, net of cash acquired | (8,511) | (377) | (2,075,006) | |||||||||
Investment in unconsolidated subsidiary | 0 | 29,541 | (440,619) | |||||||||
Note receivable from affiliates | (103,056) | (76,019) | 204,074 | |||||||||
Gross proceeds from sale of property, plant and equipment and other assets | 3,475 | 1,651 | 2,585 | |||||||||
Proceeds from insurance settlement | 1,537 | 0 | 0 | |||||||||
Payments related to routes and other intangibles | (23) | (3,845) | (1,648) | |||||||||
Net cash used in investing activities | (207,431) | (140,621) | (2,415,985) | |||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from long-term debt | 36,327 | 590,745 | 742,184 | |||||||||
Payments on long-term debt | (60,493) | (593,089) | (69,175) | |||||||||
Borrowings from revolving credit facility | 5,276 | 53,244 | 47,698 | |||||||||
Payments on revolving credit facility | (10,028) | (76,755) | (54,144) | |||||||||
Net cash overdraft financing | 1,071 | (1,261) | 4,077 | |||||||||
Deferred loan costs | 0 | (10,015) | (3,475) | |||||||||
Issuance of common stock | 0 | 0 | 0 | |||||||||
Repurchase of treasury stock | 0 | 0 | ||||||||||
Contributions from parent | 12,754 | 15,582 | 1,733,796 | |||||||||
Minimum withholding taxes paid on stock awards | (125) | 0 | 0 | |||||||||
Excess tax benefit from stock-based compensation | 0 | |||||||||||
Addition/(deductions) of noncontrolling interest | (87) | 1,201 | ||||||||||
Distributions to noncontrolling interests | (1,552) | (3,295) | (4,272) | |||||||||
Net cash provided/(used) in financing activities | (16,770) | (24,931) | 2,397,890 | |||||||||
Effect of exchange rate changes on cash flows | (6,297) | (3,601) | 10,980 | |||||||||
Net increase/(decrease) in cash and cash equivalents | (42,108) | 65,571 | 76,404 | |||||||||
Cash and cash equivalents at beginning of year | 149,448 | 83,877 | 149,448 | 83,877 | 7,473 | |||||||
Cash and cash equivalents at end of year | 107,340 | 149,448 | 107,340 | 149,448 | 83,877 | |||||||
Eliminations [Member] | ||||||||||||
Net income | (223,347) | (198,371) | (223,790) | |||||||||
Cash flows from operating activities: | ||||||||||||
Earnings in investments in subsidiaries | 223,347 | 198,371 | 223,790 | |||||||||
Other operating cash flows | 0 | 0 | 0 | |||||||||
Net cash provided by operating activities | 0 | 0 | 0 | |||||||||
Cash flows from investing activities: | ||||||||||||
Capital expenditures | 0 | 0 | 0 | |||||||||
Acquisitions, net of cash acquired | 0 | 0 | 0 | |||||||||
Investment in unconsolidated subsidiary | 12,754 | 15,582 | 3,366,414 | |||||||||
Note receivable from affiliates | 0 | 0 | 0 | |||||||||
Gross proceeds from sale of property, plant and equipment and other assets | 0 | 0 | 0 | |||||||||
Proceeds from insurance settlement | 0 | 0 | 0 | |||||||||
Payments related to routes and other intangibles | 0 | 0 | 0 | |||||||||
Net cash used in investing activities | 12,754 | 15,582 | 3,366,414 | |||||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from long-term debt | 0 | 0 | 0 | |||||||||
Payments on long-term debt | 0 | 0 | 0 | |||||||||
Borrowings from revolving credit facility | 0 | 0 | 0 | |||||||||
Payments on revolving credit facility | 0 | 0 | 0 | |||||||||
Net cash overdraft financing | 0 | 0 | 0 | |||||||||
Deferred loan costs | 0 | 0 | 0 | |||||||||
Issuance of common stock | 0 | 0 | 0 | |||||||||
Repurchase of treasury stock | 0 | 0 | ||||||||||
Contributions from parent | (12,754) | (15,582) | (3,366,414) | |||||||||
Minimum withholding taxes paid on stock awards | 0 | 0 | 0 | |||||||||
Excess tax benefit from stock-based compensation | 0 | |||||||||||
Addition/(deductions) of noncontrolling interest | 0 | 0 | ||||||||||
Distributions to noncontrolling interests | 0 | 0 | 0 | |||||||||
Net cash provided/(used) in financing activities | (12,754) | (15,582) | (3,366,414) | |||||||||
Effect of exchange rate changes on cash flows | 0 | 0 | 0 | |||||||||
Net increase/(decrease) in cash and cash equivalents | 0 | 0 | 0 | |||||||||
Cash and cash equivalents at beginning of year | $ 0 | $ 0 | 0 | 0 | 0 | |||||||
Cash and cash equivalents at end of year | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
[1] | Excludes the immaterial capital assets acquired in fiscal 2016 and fiscal 2015 and the VION Acquisition and Custom Blenders acquisition in fiscal 2014 of approximately $984.2 million |