Cover
Cover - USD ($) | 12 Months Ended | ||
Jan. 02, 2021 | Feb. 24, 2021 | Jun. 27, 2020 | |
Document and Entity Information [Abstract] | |||
Title of 12(b) Security | Common Stock $0.01 par value per share | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Entity Registrant Name | DARLING INGREDIENTS INC. | ||
Entity Central Index Key | 0000916540 | ||
Current Fiscal Year End Date | --01-02 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 2, 2021 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,705,533,000 | ||
Entity Common Stock, Shares Outstanding | 162,600,207 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Document Transition Report | false | ||
Entity Tax Identification Number | 36-2495346 | ||
Entity Address, Address Line One | 5601 N MacArthur Blvd., | ||
Entity Address, City or Town | Irving, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75038 | ||
Trading Symbol | DAR | ||
Security Exchange Name | NYSE | ||
Entity File Number | 001-13323 | ||
City Area Code | 972 | ||
Local Phone Number | 717-0300 | ||
Documents Incorporated by Reference [Text Block] | DOCUMENTS INCORPORATED BY REFERENCE Selected designated portions of the Registrant's definitive Proxy Statement in connection with the Registrant’s 2021 Annual Meeting of stockholders are incorporated by reference into Part III of this Annual Report. | ||
ICFR Auditor Attestation Flag | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 81,617 | $ 72,935 |
Restricted cash | 103 | 110 |
Accounts receivable, less allowance for bad debts of $10,815 at January 2, 2021 and $8,802 at December 28, 2019 | 405,387 | 406,338 |
Inventories | 405,922 | 362,957 |
Prepaid expenses | 47,793 | 46,599 |
Income taxes refundable | 3,883 | 3,317 |
Other current assets | 42,289 | 25,032 |
Total current assets | 986,994 | 917,288 |
Property, plant and equipment, net | 1,863,814 | 1,802,411 |
Intangible assets, net | 473,680 | 526,394 |
Goodwill | 1,260,240 | 1,223,291 |
Investment in unconsolidated subsidiaries | 804,682 | 689,354 |
Operating right-of-use assets, net | 146,563 | 124,726 |
Other assets | 60,682 | 47,400 |
Deferred income taxes | 16,676 | 14,394 |
Total assets | 5,613,331 | 5,345,258 |
Current liabilities: | ||
Current portion of long-term debt | 27,538 | 90,996 |
Accounts payable, principally trade | 255,340 | 239,252 |
Income taxes payable | 17,497 | 8,895 |
Operating lease liability, current | 39,459 | 37,805 |
Accrued expenses | 335,471 | 311,391 |
Total current liabilities | 675,305 | 688,339 |
Long-term debt, net of current portion | 1,480,531 | 1,558,429 |
Operating lease liability, non-current | 109,707 | 91,424 |
Other noncurrent liabilities | 117,371 | 115,785 |
Deferred income taxes | 276,208 | 247,931 |
Total liabilities | 2,659,122 | 2,701,908 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 250,000,000 shares authorized, 169,880,238 and 168,620,314 shares issued at January 2, 2021 and December 28, 2019, respectively | 1,699 | 1,686 |
Additional paid-in capital | 1,597,429 | 1,560,897 |
Treasury stock, at cost; 7,679,849 and 4,845,203 shares at January 2, 2021 and December 28, 2019, respectively | (151,710) | (75,022) |
Accumulated other comprehensive loss | (252,433) | (321,847) |
Retained earnings | 1,696,924 | 1,400,105 |
Total Darling's stockholders’ equity | 2,891,909 | 2,565,819 |
Noncontrolling interests | 62,300 | 77,531 |
Total stockholders’ equity | 2,954,209 | 2,643,350 |
Total liabilities and stockholders' equity | $ 5,613,331 | $ 5,345,258 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Assets [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 10,815 | $ 8,802 |
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) | 169,880,238 | 168,620,314 |
Treasury stock (in shares) | 7,679,849 | 4,845,203 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Net sales | $ 3,571,923 | $ 3,363,905 | $ 3,387,726 |
Costs and expenses: | |||
Cost of sales and operating expenses | 2,688,815 | 2,589,085 | 2,646,374 |
Loss/(gain) on sale of assets | 426 | (20,582) | 709 |
Selling, general and administrative expense | 378,496 | 358,523 | 309,264 |
Restructuring Costs and Asset Impairment Charges | 38,167 | 0 | 14,965 |
Depreciation and amortization | 350,178 | 325,510 | 321,192 |
Total costs and expenses | 3,456,082 | 3,252,536 | 3,292,504 |
Equity In net income of Diamond Green Diesel | 315,095 | 364,452 | 159,779 |
Operating income | 430,936 | 475,821 | 255,001 |
Other expense: | |||
Interest expense | (72,686) | (78,674) | (86,429) |
Debt extinguishment costs | 0 | (12,126) | (23,509) |
Foreign currency losses | (2,290) | (1,311) | (6,431) |
Gain (Loss) on Disposition of Business | 0 | 2,967 | (12,545) |
Other expense, net | (5,534) | (6,671) | (7,562) |
Total other expense | (80,510) | (95,815) | (136,476) |
Equity in net income of other unconsolidated subsidiaries | 3,193 | 428 | (550) |
Income from operations before income taxes | 353,619 | 380,434 | 117,975 |
Income tax expense | 53,289 | 59,467 | 12,031 |
Net income | 300,330 | 320,967 | 105,944 |
Net income attributable to noncontrolling interests | (3,511) | (8,367) | (4,448) |
Net income attributable to Darling | $ 296,819 | $ 312,600 | $ 101,496 |
Net income per share: | |||
Basic (in dollars per share) | $ 1.83 | $ 1.90 | $ 0.62 |
Diluted (in dollars per share) | $ 1.78 | $ 1.86 | $ 0.60 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Net income | $ 300,330 | $ 320,967 | $ 105,944 |
Other comprehensive income (Loss), net of tax: | |||
Foreign currency translation adjustments | 70,320 | (11,934) | (87,474) |
Pension adjustments | (4,313) | 1,535 | (2,730) |
Total other comprehensive income/(loss), net of tax | 68,298 | (16,985) | (90,787) |
Total comprehensive income | 368,628 | 303,982 | 15,157 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 2,395 | 8,690 | 3,894 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent, Total | 366,233 | 295,292 | 11,263 |
Natural Gas Swap [Member] | |||
Other comprehensive income (Loss), net of tax: | |||
Total derivatives, net of tax | 0 | 0 | 23 |
Corn Option [Member] | |||
Other comprehensive income (Loss), net of tax: | |||
Total derivatives, net of tax | (5,731) | 278 | (1,687) |
Heating Oil Swaps And Options [Member] | |||
Other comprehensive income (Loss), net of tax: | |||
Total derivatives, net of tax | 1,104 | (3,141) | 0 |
Foreign Exchange Contract [Member] | |||
Other comprehensive income (Loss), net of tax: | |||
Total derivatives, net of tax | 6,621 | (3,723) | 1,081 |
Soybean Meal [Member] | |||
Other comprehensive income (Loss), net of tax: | |||
Total derivatives, net of tax | $ 297 | $ 0 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Parent [Member] | Parent [Member]Cumulative Effect, Period of Adoption, Adjustment | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | AOCI Attributable to Parent [Member]Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment | Noncontrolling Interest [Member] | Natural Gas Swap [Member] | Natural Gas Swap [Member]Parent [Member] | Natural Gas Swap [Member]AOCI Attributable to Parent [Member] | Heating Oil [Member] | Heating Oil [Member]Parent [Member] | Heating Oil [Member]AOCI Attributable to Parent [Member] | Corn Option [Member] | Corn Option [Member]Parent [Member] | Corn Option [Member]AOCI Attributable to Parent [Member] | Foreign Exchange Contract [Member] | Foreign Exchange Contract [Member]Parent [Member] | Foreign Exchange Contract [Member]AOCI Attributable to Parent [Member] | Soybean Meal [Member] | Soybean Meal [Member]Parent [Member] | Soybean Meal [Member]AOCI Attributable to Parent [Member] |
Balance (in shares) at Dec. 30, 2017 | 164,653,437 | ||||||||||||||||||||||||||
Stockholders' Equity, Beginning Balance at Dec. 30, 2017 | $ 2,327,697 | $ 0 | $ 2,244,933 | $ 0 | $ 1,679 | $ 1,515,614 | $ (44,063) | $ (209,524) | $ (4,782) | $ 981,227 | $ 4,782 | $ 82,764 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||
Net income | 105,944 | 101,496 | 101,496 | 4,448 | |||||||||||||||||||||||
Distribution of noncontrolling interest earnings | (9,710) | (9,710) | |||||||||||||||||||||||||
Deductions to noncontrolling interests | (14,175) | (14,175) | |||||||||||||||||||||||||
Pension liability adjustments, net of tax | (2,730) | (2,730) | (2,730) | ||||||||||||||||||||||||
Derivatives | $ 23 | $ 23 | $ 23 | $ (1,687) | $ (1,687) | $ (1,687) | $ 1,081 | $ 1,081 | $ 1,081 | ||||||||||||||||||
Foreign currency translation adjustments | (87,474) | (86,920) | (86,920) | (554) | |||||||||||||||||||||||
Stock-based compensation | 18,260 | 18,260 | 18,260 | ||||||||||||||||||||||||
Treasury stock (in shares) | (198,516) | ||||||||||||||||||||||||||
Treasury stock | (3,693) | (3,693) | (3,693) | ||||||||||||||||||||||||
Issuance of common stock (in shares) | 205,677 | ||||||||||||||||||||||||||
Issuance of common stock | 2,285 | 2,285 | $ 2 | 2,283 | |||||||||||||||||||||||
Balance (in shares) at Dec. 29, 2018 | 164,660,598 | ||||||||||||||||||||||||||
Stockholders' Equity, Ending Balance at Dec. 29, 2018 | 2,335,821 | 2,273,048 | $ 1,681 | 1,536,157 | (47,756) | (304,539) | 1,087,505 | 62,773 | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||
Net income | 320,967 | 312,600 | 312,600 | 8,367 | |||||||||||||||||||||||
Distribution of noncontrolling interest earnings | (5,964) | (5,964) | |||||||||||||||||||||||||
Deductions to noncontrolling interests | 12,032 | 12,032 | |||||||||||||||||||||||||
Pension liability adjustments, net of tax | 1,535 | 1,535 | 1,535 | ||||||||||||||||||||||||
Derivatives | $ (3,141) | $ (3,141) | $ (3,141) | 278 | 278 | 278 | (3,723) | (3,723) | (3,723) | ||||||||||||||||||
Foreign currency translation adjustments | (11,934) | (12,257) | (12,257) | 323 | |||||||||||||||||||||||
Stock-based compensation | 21,007 | 21,007 | 21,007 | ||||||||||||||||||||||||
Treasury stock (in shares) | (1,407,624) | ||||||||||||||||||||||||||
Treasury stock | (27,266) | (27,266) | (27,266) | ||||||||||||||||||||||||
Issuance of common stock (in shares) | 522,137 | ||||||||||||||||||||||||||
Issuance of common stock | 3,738 | 3,738 | $ 5 | 3,733 | |||||||||||||||||||||||
Balance (in shares) at Dec. 28, 2019 | 163,775,111 | ||||||||||||||||||||||||||
Stockholders' Equity, Ending Balance at Dec. 28, 2019 | 2,643,350 | 2,565,819 | $ 1,686 | 1,560,897 | (75,022) | (321,847) | 1,400,105 | 77,531 | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||
Net income | 300,330 | 296,819 | 296,819 | 3,511 | |||||||||||||||||||||||
Distribution of noncontrolling interest earnings | (4,480) | (4,480) | |||||||||||||||||||||||||
Deductions to noncontrolling interests | 3,258 | 3,258 | |||||||||||||||||||||||||
Deductions to noncontrolling interests | (9,888) | (13,146) | |||||||||||||||||||||||||
Pension liability adjustments, net of tax | (4,313) | (4,313) | (4,313) | ||||||||||||||||||||||||
Derivatives | $ 1,104 | $ 1,104 | $ 1,104 | $ (5,731) | $ (5,731) | $ (5,731) | $ 6,621 | $ 6,621 | $ 6,621 | $ 297 | $ 297 | $ 297 | |||||||||||||||
Foreign currency translation adjustments | 70,320 | 71,436 | 71,436 | (1,116) | |||||||||||||||||||||||
Stock-based compensation | 23,001 | 23,001 | 23,001 | ||||||||||||||||||||||||
Treasury stock (in shares) | (2,834,646) | ||||||||||||||||||||||||||
Treasury stock | (76,688) | (76,688) | (76,688) | ||||||||||||||||||||||||
Issuance of common stock (in shares) | 1,248,924 | ||||||||||||||||||||||||||
Issuance of common stock | 10,065 | 10,065 | $ 13 | 10,052 | |||||||||||||||||||||||
Balance (in shares) at Jan. 02, 2021 | 162,200,389 | ||||||||||||||||||||||||||
Stockholders' Equity, Ending Balance at Jan. 02, 2021 | 2,954,209 | 2,891,909 | $ 1,699 | 1,597,429 | $ (151,710) | $ (252,433) | $ 1,696,924 | $ 62,300 | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 11,000 | ||||||||||||||||||||||||||
Stock Issued During Period, Value, Restricted Stock Award, Gross | $ 221 | $ 221 | $ 221 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders’ Equity (Parenthetical) - $ / shares | Jan. 02, 2021 | Dec. 28, 2019 |
Statement of Stockholders' Equity [Abstract] | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 300,330 | $ 320,967 | $ 105,944 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 350,178 | 325,510 | 321,192 |
Deferred income taxes | 15,814 | 20,530 | (16,974) |
Loss/(gain) on sale of assets | 426 | (20,582) | 709 |
Gain (Loss) on Disposition of Business | 0 | (2,967) | 12,545 |
Asset Impairment Charges | 37,802 | 0 | 2,907 |
Gain on insurance proceeds from insurance settlement | (293) | (6,600) | (1,253) |
Increase/(decrease) in long-term pension liability | (6,555) | 1,831 | 1,463 |
Stock-based compensation expense | 23,222 | 21,007 | 18,779 |
Debt extinguishment costs | 0 | 12,126 | 23,509 |
Write-off deferred loan costs | 3,052 | 270 | 320 |
Deferred loan cost amortization | 5,357 | 5,846 | 7,870 |
Equity in net income of Diamond Green Diesel and other unconsolidated subsidiaries | (318,288) | (364,880) | (159,229) |
Distributions of earnings from Diamond Green Diesel and other unconsolidated subsidiaries | 207,328 | 69,213 | 67,638 |
Changes in operating assets and liabilities, net of effects from acquisitions: | |||
Accounts receivable | 22,362 | (26,086) | (6,347) |
Income taxes refundable/payable | 4,200 | 9,542 | (9,809) |
Inventories and prepaid expenses | (18,666) | (39,111) | 2,391 |
Accounts payable and accrued expenses | 11,200 | 32,436 | 14,534 |
Other | (12,818) | 3,569 | 12,426 |
Net cash provided by operating activities | 624,651 | 362,621 | 398,615 |
Cash flows from investing activities: | |||
Capital expenditures | (280,115) | (359,498) | (321,896) |
Acquisitions, net of cash acquired | (29,793) | (1,431) | (107,727) |
Investment in unconsolidated subsidiaries | 0 | (2,000) | (12,250) |
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | 0 | 3,671 | 82,760 |
Gross proceeds from sale of property, plant and equipment and other assets | 2,797 | 18,235 | 19,328 |
Proceeds from insurance settlement | 293 | 6,600 | 1,253 |
Payments related to routes and other intangibles | (3,810) | (3,651) | (3,883) |
Net cash used in investing activities | (310,628) | (338,074) | (342,415) |
Cash flows from financing activities: | |||
Proceeds from long-term debt | 34,569 | 517,606 | 624,620 |
Payments on long-term debt | (232,726) | (581,163) | (686,628) |
Borrowings from revolving credit facility | 495,691 | 469,227 | 543,898 |
Payments on revolving credit facility | (480,604) | (461,669) | (510,974) |
Net cash overdraft financing | (37,692) | 38,367 | 3,460 |
Deferred loan costs | (4,292) | (7,027) | (9,668) |
Issuance of common stock | 67 | 39 | 182 |
Repurchase of common stock | (55,044) | (19,260) | 0 |
Minimum withholding taxes paid on stock awards | (11,918) | (4,472) | (2,215) |
Acquisition of noncontrolling interest | (8,784) | 0 | 0 |
Distributions to noncontrolling interests | (6,253) | (6,533) | (10,257) |
Net cash used in financing activities | (306,986) | (54,885) | (47,582) |
Effect of exchange rate changes on cash flows | 1,638 | (3,986) | (8,165) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 8,675 | (34,324) | 453 |
Cash, cash equivalents and restricted cash at beginning of year | 73,045 | 107,369 | 106,916 |
Cash, cash equivalents and restricted cash at end of year | 81,720 | 73,045 | 107,369 |
Supplemental disclosure of cash flow information: | |||
Accrued Capital Expenditures | (4,967) | 6,714 | 5,951 |
Cash paid during the year for: | |||
Interest, net of capitalized interest | 66,216 | 79,132 | 75,006 |
Income taxes, net of refunds | 36,779 | 29,778 | 33,162 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 58,052 | 40,596 | 0 |
Non-cash financing activities | |||
Debt issued for service contract assets | $ 8,123 | $ 25 | $ 22 |
General
General | 12 Months Ended |
Jan. 02, 2021 | |
General [Abstract] | |
GENERAL | GENERAL (a) NATURE OF OPERATIONS Darling Ingredients Inc., a Delaware corporation (“Darling”, and together with its subsidiaries, the “Company” or “we”, “us” or “our”), 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. 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 21 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 of the consolidated subsidiaries is shown as an allocation of the Company's net income and is presented separately as “Net income 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 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 53 weeks ended January 2, 2021, the 52 weeks ended December 28, 2019, and the 52 weeks ended December 29, 2018. (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. Restricted cash represents amounts required to be set aside as collateral for environmental claims and are insignificant to the Company. (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 adjusted for differences in asset-specific risk characteristic, current economic conditions and forecast of future economic conditions. 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. The Company has entered into agreements with third party banks to factor certain of the Company's trade receivables in order to enhance working capital by turning trade receivables into cash faster. Under these agreements, the Company will sell certain selected customers trade receivables to the third party banks without recourse for cash less a nominal fee. For the year ended January 2, 2021, December 28, 2019 and December 29, 2018, the Company sold approximately $345.6 million, $204.1 million and $113.5 million, respectively of its trade receivables and incurred approximately $1.1 million, $1.2 million and $0.6 million in fees, which are recorded as interest expense, respectively. (5) Inventories Inventories are stated at the lower of cost or net realizable value. 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 acquisition of its Darling Ingredients International business. 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, product development, 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, product development, consulting, land use rights and leasehold agreements are generally 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 2020, the Company recorded asset impairment charges related to its long-lived assets of approximately $6.2 million. See Note 18 to the consolidated financial statements. (8) Goodwill 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 uses the quantitative approach to impairment testing by comparing the fair value of the Company's reporting units to their respective carrying amounts and records an impairment charge for the amount by which the carrying amounts exceeds the fair value; however, the loss recognized if any will not exceed the total amount of goodwill allocated to that reporting unit. The Company performed its annual goodwill and indefinite-lived intangible assets impairment assessments at October 24, 2020 and prior to finalizing the impairment testing a triggering event occurred, which due to unfavorable economics in the biodiesel industry, the Company made the decision to shut down processing operations at its biodiesel facilities located in the United States and Canada, and there are no current plans to resume biodiesel production at these facilities in the future. As a result, the Company recorded goodwill impairment charges in fiscal 2020. In fiscal 2019 and 2018, the fair values of the Company’s reporting units containing goodwill exceeded the related carrying values. Goodwill was approximately $1,260.2 million and $1,223.3 million at January 2, 2021 and December 28, 2019, respectively. See Note 7 for further information on the Company’s goodwill. (9) Leases The Company accounts for leases in accordance with Accounting Standard Codification (“ASC”) Topic 842, leases. The Company determines if an arrangement is a lease at inception for which the Company recognizes the right-of-use (“ROU”) asset and a lease liability at the lease commencement date. For operating leases, the lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. In determining the lease liability, the Company applies a discount rate to the minimum lease payments within each lease. ASC 842 requires the Company to use the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. To estimate the Company's incremental borrowing rate over various terms, a comparable market yield curve consistent with the Company's credit quality is determined. The lease term for all of the Company's leases include the noncancellable period of the lease plus any additional periods covered by either a Company option to extend the lease that the Company is reasonably certain to exercise or when a triggering event occurs. The Company has elected to not recognize a ROU asset and lease liability with an initial term of 12 months or less at lease commencement. Current operating leases are included on the Company's balance sheet as a ROU asset, current operating lease liabilities and long-term operating lease liabilities. For finance leases, the lease liability is initially measured in the same manner and date as for the operating leases, and is subsequently measured at amortized cost using the effective interest method. Finance leases are included in property, plant and equipment, current portion of long-term debt and long-term debt, net of current portion, but are not significant to the Company. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any direct costs incurred less any lease incentives received. For operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of the lease incentives received. Some leases payments contain rent escalation clauses (including index-based escalations), initially measured using the index at the lease commencement date. The Company recognizes minimum rental expense on a straight-line basis based on the fixed components of the lease arrangement. The Company uses the long-lived assets impairment guidance in ASC subtopic 360-10, Property, Plant and Equipment - Overall, to determine whether the ROU asset is impaired, and if so, the amount of the impairment loss to recognize. The Company monitors for events or changes in circumstances that require a reassessment of one of its leases. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding ROU asset unless doing so would reduce the carrying amount of the ROU asset to an amount less than zero. In that case, the amount of the adjustment that would result in a negative ROU asset balance is recorded in the Consolidated Statement of Operations. (10) 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. (11) 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. (12) 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) January 2, December 28, December 29, 2021 2019 2018 Income Shares Per-Share Income Shares Per-Share Income Shares Per-Share Basic: Net income attributable to Darling $ 296,819 162,572 $ 1.83 $ 312,600 164,633 $ 1.90 $ 101,496 164,789 $ 0.62 Diluted: Effect of dilutive securities Add: Option shares in the money and dilutive effect of nonvested stock — 6,526 — — 5,983 — — 5,234 — Less: Pro-forma treasury shares — (1,890) — — (2,238) — — (2,113) — Diluted: Net income attributable to Darling $ 296,819 167,208 $ 1.78 $ 312,600 168,378 $ 1.86 $ 101,496 167,910 $ 0.60 For fiscal 2020, 2019 and 2018, respectively, 24,356, 638,146 and 693,172 outstanding stock options were excluded from diluted income per common share as the effect was antidilutive. For fiscal 2020, 2019 and 2018, respectively, 392,909, 611,187 and 502,292 shares of non-vested stock were excluded from diluted income per common share as the effect was antidilutive. (13) 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. The Company's policy is to account for forfeitures in the period they occur, rather than estimating a forfeiture rate. The Company does not reclassify excess tax benefits from operating activities to financing activities in the Consolidated Statements of Cash Flows. Additionally, the Company excludes the excess tax benefits from the assumed proceeds available to repurchase shares of common stock in the computation of the Company's diluted earnings per share. The Company records tax benefit or expense within income tax expense for the year ended January 2, 2021, December 28, 2019 and December 29, 2018 related to the excess tax expense on stock options, nonvested stock, director restricted stock units and performance units. Total stock-based compensation recognized in the Consolidated Statements of Operations for the years ended January 2, 2021, December 28, 2019 and December 29, 2018 was approximately $23.2 million, $21.0 million and $18.8 million, respectively, which is included in selling, general and administrative expenses, and the related income tax benefit recognized was approximately $1.9 million, $1.7 million and $2.4 million, respectively. See Note 13 for further information on the Company’s stock-based compensation plans. (14) 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. As a result of the current global coronavirus disease (“COVID-19”) pandemic, and related government imposed movement restrictions and initiatives implemented to reduce the global transmission of COVID-19, we have evaluated the potential impact to the Company's operations and for any indicators of potential triggering events that could indicate certain of the Company's assets may be impaired. Through the twelve months ended January 2, 2021, the Company has not observed any impairments of the Company's assets or a significant change in their fair value due to the COVID-19 pandemic. (15) 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 5.25% Senior Notes due 2027, 3.625% Senior Notes due 2026, term loan and revolver borrowings outstanding at January 2, 2021, as described in Note 10 have a fair value based on market valuation from third-party banks. The carrying amount for the Company’s other debt is not deemed to be significantly different than the fair value. See Note 17 for financial instruments' fair values. (16) Derivative Instruments The Company makes limited use of derivative instruments to manage cash flow risks related to natural gas 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. Soybean meal options are entered into with the intent of managing the impact of changing prices for poultry meal sales. Corn options and future contracts are entered into with the intent of managing U.S. forecasted sales of BBP by reducing the impact of changing prices. Foreign currency forward and option 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 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 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 January 2, 2021, the Company had foreign currency option and forward contracts, soybean meal forward contracts and corn option contracts outstanding that qualified and were designated for hedge accounting as well as corn forward contracts and foreign currency forward contracts that did not qualify and were not designated for hedge accounting. (17) Revenue Recognition The Company recognizes revenue on sales when control of the promised finished product is transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for the finished product. Service revenues are recognized when the service occurs. 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 recognized when control of the promised finished product is transferred to the Company's customer. See Note 22 to the consolidated financial statements. (18) 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 24 for further information on the Company's related party transactions. (19) Foreign Currency Translation and Remeasurement Foreign currency translation is included as a component of accumulated other comprehensive loss 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/(losses) in determining net income. The Company incurred net foreign currency translation gains/(losses) of approximately $71.4 million, $(12.3) million and $(86.9) million in fiscal 2020, 2019 and 2018, respectively. |
Investment in Unconsolidated Su
Investment in Unconsolidated Subsidiary | 12 Months Ended |
Jan. 02, 2021 | |
Investment in Affiliate [Abstract] | |
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY | INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES On January 21, 2011 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 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. Effective May 1, 2019, the limited liability company agreement was amended and restated for the purpose of updating the agreement in certain respects, including to remove certain provisions that were no longer relevant and to add new provisions relating to the DGD Joint Venture's ongoing expansion project to construct a new, parallel facility located next to the existing facility. In 2019, the Company continued to evaluate operational developments and the impact of anticipated significant expansion of the DGD Joint Venture. This evaluation was impactful to the consideration of how the Company most appropriately reflects its share of equity income from the DGD Joint Venture. Based on the Company's analysis, it was determined that the DGD Joint Venture has evolved into an integral and integrated part of the Company's ongoing operations. The Company determined this justifies a more meaningful and transparent presentation of equity in net income of the DGD Joint Venture as a component of the Company's operating income. Selected financial information for the Company's DGD Joint Venture is as follows: (in thousands) December 31, 2020 December 31, 2019 Assets: Total current assets $ 383,557 $ 668,026 Property, plant and equipment, net 1,238,726 713,489 Other assets 36,082 30,710 Total assets $ 1,658,365 $ 1,412,225 Liabilities and members' equity: Total current portion of long term debt $ 517 $ 341 Total other current liabilities 99,787 75,802 Total long term debt 8,705 8,742 Total other long term liabilities 3,758 4,422 Total members' equity 1,545,598 1,322,918 Total liabilities and member's equity $ 1,658,365 $ 1,412,225 Year Ended December 31, (in thousands) 2020 2019 2018 Revenues: Operating revenues $ 1,267,477 $ 1,217,504 $ 677,663 Expenses: Total costs and expenses less depreciation, amortization and accretion expense 592,781 438,672 329,636 Depreciation, amortization and accretion expense 44,882 50,767 29,434 Operating income 629,814 728,065 318,593 Other income 1,636 2,121 1,919 Interest and debt expense, net (1,260) (1,282) (955) Net income $ 630,190 $ 728,904 $ 319,557 As of January 2, 2021, under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $772.8 million on the consolidated balance sheet and has recorded approximately $315.1 million, $364.5 million and $159.8 million in equity in net income of Diamond Green Diesel for the years ended January 2, 2021, December 28, 2019 and December 29, 2018, respectively. Biodiesel blenders registered with the Internal Revenue Service are currently eligible for a tax incentive in the amount of $1.00 per gallon of renewable |
Acquisitions
Acquisitions | 12 Months Ended |
Jan. 02, 2021 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS AND DISPOSITIONS In December 2020, the Company acquired substantially all the assets of Marengo Fabricated Steel Ltd (the “Marengo Acquisition”) a grease collection equipment manufacturer. The Company purchased the Marengo Acquisition for $10.8 million consisting of cash paid of approximately $10.5 million and a hold back amount of approximately $0.3 million. The Company recorded assets and liabilities consisting of property, plant and equipment of approximately $3.6 million, goodwill of approximately $5.7 million and other net assets of approximately $1.5 million. The amounts have been recorded on a preliminary basis pending working capital finalization. The Company does not expect a material change from the amounts recorded. In October 2020, a wholly-owned international subsidiary acquired all the shares of a Belgium privately owned group of companies (the “Belgium Group Acquisition”). The Company purchased the Belgium Group Acquisition for approximately $24.4 million after purchase price adjustments consisting of cash paid of approximately $19.3 million and a hold back amount of approximately $5.1 million. The Company recorded assets and liabilities consisting of property, plant and equipment of approximately $14.8 million, intangible assets of approximately $6.4 million, goodwill of approximately $8.9 million and net working capital liabilities of approximately $5.7 million. The amounts have been recorded on a preliminary basis pending working capital finalization and other open acquisition related matters. The Company does not expect a material change from the working capital and other open acquisition related matters. The identifiable intangibles have a weighted average life of 12 years. In December 2019, the Company began to consolidate EnviroFlight, LLC due to a loan issued by the Company, which resulted in more control by the Company based on variable interest entity literature. In January 2020, the Company acquired the other 50% minority interest in EnviroFlight, LLC from the other joint venture partner for approximately $8.8 million, along with the purchase of intellectual property of approximately $3.4 million for a total of approximately $12.2 million, thereby increasing the Company's ownership interest in EnviroFlight, LLC to 100%. In October 2018, the Company acquired substantially all of the assets of Triple - T Foods - Arkansas, Inc. including a wet pet food ingredient operation in Springdale, Arkansas and a cold storage operation in Rogers, Arkansas. The Company paid approximately $50.4 million in cash for assets and assumed liabilities consisting of property, plant and equipment of approximately $11.2 million, intangible assets of approximately $21.8 million, consisting of routes, permits and non-compete agreements, goodwill of approximately $8.4 million, and other including working capital of approximately $9.0 million. The Company finalized the working capital amount and paid holdback amounts in fiscal year 2019, which resulted in insignificant adjustments to previously disclosed amounts. The identifiable intangible assets have a weighted average life of 15 years. In May 2018, the Company acquired substantially all of the assets of Kruger Commodities, Inc. including protein conversion facilities in Hamilton, MI and Tama, IA, along with a protein blending operation and used cooking oil collection business in Omaha, NE. The Company paid approximately $51.3 million in cash for assets and assumed liabilities consisting of property, plant and equipment of approximately $15.2 million, intangible assets of approximately $15.9 million, consisting of routes, permits and non-compete agreements, goodwill of approximately $19.6 million, and other of approximately $0.6 million. The identifiable intangible assets have a weighted average life of 15 years. In May 2018, the Company sold its Terra Renewal Services (“TRS”) industrial residuals business to American Residuals Group, LLC. TRS is a provider of environmental services focused on the collection, hauling, and disposal of non-hazardous, liquid and semi-solid waste streams from the food processing industry. All of the used cooking oil business originally acquired as part of TRS was retained by the Company. The transaction price for the industrial residuals business sold for approximately $80.0 million in cash and resulted in the Company recording a loss on the TRS sale of approximately $15.6 million, due to a substantial portion of the original purchase price of TRS being allocated to the industrial residuals business. Additionally, the Company made other immaterial acquisitions and dispositions in fiscal 2020, fiscal 2019 and fiscal 2018. |
Inventories
Inventories | 12 Months Ended |
Jan. 02, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES A summary of inventories follows (in thousands): January 2, 2021 December 28, 2019 Finished product $ 233,044 $ 199,799 Work in process 87,223 81,841 Raw material 36,746 41,964 Supplies and other 48,909 39,353 $ 405,922 $ 362,957 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 |
Jan. 02, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT A summary of property, plant and equipment follows (in thousands): January 2, 2021 December 28, 2019 Land $ 170,237 $ 157,721 Buildings and improvements 684,459 619,212 Machinery and equipment 2,219,797 2,002,237 Vehicles 302,641 269,529 Aircraft 9,708 9,708 Construction in process 179,095 182,392 3,565,937 3,240,799 Accumulated depreciation (1,702,123) (1,438,388) $ 1,863,814 $ 1,802,411 |
Intangbile assets
Intangbile assets | 12 Months Ended |
Jan. 02, 2021 | |
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): January 2, 2021 December 28, 2019 Indefinite Lived Intangible Assets Trade names $ 55,349 $ 52,733 55,349 52,733 Finite Lived Intangible Assets: Routes 397,342 382,263 Permits 494,191 483,593 Non-compete agreements 3,300 3,840 Trade names 65,675 65,670 Royalty, product development, consulting, land use rights and leasehold 25,909 20,737 986,417 956,103 Accumulated Amortization: Routes (203,392) (169,050) Permits (315,246) (272,213) Non-compete agreements (2,981) (3,111) Trade names (39,491) (32,890) Royalty, product development, consulting, land use rights and leasehold (6,976) (5,178) (568,086) (482,442) Total Intangible assets, less accumulated amortization $ 473,680 $ 526,394 Gross intangible routes, permits, trade names, non-compete agreements and other intangibles changed due to acquired intangibles of approximately $6.5 million, a decrease of approximately $5.8 million as a result of asset retirements and a decrease of approximately $3.0 million due to asset impairment and the remaining change is due to foreign exchange impact. Amortization expense for the three years ended January 2, 2021, December 28, 2019 and December 29, 2018, was approximately $74.0 million, $73.6 million and $75.2 million, respectively. Amortization expense for the next five fiscal years is estimated to be $67.9 million, $65.9 million, $64.8 million, $44.2 million and $36.7 million. |
Goodwill
Goodwill | 12 Months Ended |
Jan. 02, 2021 | |
GOODWILL [Abstract] | |
GOODWILL | GOODWILL Changes in the carrying amount of goodwill (in thousands): Feed Ingredients Food Ingredients Fuel Ingredients Total Balance at December 29, 2018 Goodwill $ 791,966 $ 335,701 $ 117,867 $ 1,245,534 Accumulated impairment losses (15,914) (461) — (16,375) 776,052 335,240 117,867 1,229,159 Goodwill acquired during year 396 91 — 487 Goodwill disposed of during year (636) — — (636) Foreign currency translation 1,731 (6,138) (1,312) (5,719) Balance at December 28, 2019 Goodwill 793,457 329,654 116,555 1,239,666 Accumulated impairment losses (15,914) (461) — (16,375) 777,543 329,193 116,555 1,223,291 Goodwill acquired during year 13,925 — 714 14,639 Goodwill impairment during year — — (31,580) (31,580) Foreign currency translation 22,939 21,642 9,309 53,890 Balance at January 2, 2021 Goodwill 830,321 351,296 126,578 1,308,195 Accumulated impairment losses (15,914) (461) (31,580) (47,955) $ 814,407 $ 350,835 $ 94,998 $ 1,260,240 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jan. 02, 2021 | |
ACCRUED EXPENSES [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses consist of the following (in thousands): January 2, 2021 December 28, 2019 Compensation and benefits $ 121,497 $ 107,324 Utilities and sewage 18,902 18,085 Accrued ad valorem, and franchise taxes 39,167 30,231 Reserve for self insurance, litigation, environmental and tax matters (Note 20) 11,460 19,373 Medical claims liability 8,855 8,285 Accrued operating expenses 62,601 67,194 Accrued interest payable 9,197 9,879 Customer deposits 14,443 18,318 Other accrued expense 49,349 32,702 $ 335,471 $ 311,391 |
Leases
Leases | 12 Months Ended |
Jan. 02, 2021 | |
Leases [Abstract] | |
Leases | LEASES In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). The Company adopted the new standard on December 30, 2018 using the modified retrospective approach and is using the effective date as the Company's date of initial application and consequently, financial information will not be updated and the disclosures required under the this ASU will not be provided for dates and periods before December 30, 2018. The Company has elected the package of expedients, which permits the Company not to reassess under the new standard the Company's prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to the Company. The Company leases certain real and personal property under non-cancelable operating leases. In addition, the Company leases a large portion of the Company's fleet of tractors, all of its rail cars, some IT equipment and other transportation equipment. The Company's office leases include certain lease and non-lease components, where the Company has elected to exclude the non-lease components from the calculation of the lease liability and ROU asset. The Company has finance leases, which are not significant to the Company and not separately disclosed in detail. In addition, the Company's other variable lease payments are not significant. The components of operating lease expense included in cost of sales and operating expenses and selling, general and administrative expenses were as follows (in thousands): Year Ended Year Ended January 2, 2021 December 28, 2019 Operating lease expense $ 45,362 $ 48,858 Short-term lease costs 25,868 18,163 Total lease cost $ 71,230 $ 67,021 Other information (in thousands, except lease terms and discount rates): Year Ended January 2, 2021 December 28, 2019 Cash paid for amounts included in the measurement lease liabilities Operating cash flows from operating leases $ 52,055 $ 47,691 Operating right-of-use assets, net $ 146,563 $ 124,726 Operating lease liabilities, current $ 39,459 $ 37,805 Operating lease liabilities, non-current 109,707 91,424 Total operating lease liabilities $ 149,166 $ 129,229 Weighted average remaining lease term - operating leases 6.30 years 6.46 years Weighted average discount rate - operating leases 4.22 % 4.55 % Future annual minimum lease payments and finance lease commitments as of January 2, 2021 were as follows (in thousands): Period Ending Fiscal Operating Leases Finance Leases 2021 $ 44,723 $ 952 2022 33,145 858 2023 28,182 637 2024 21,551 486 2025 12,912 345 Thereafter 27,168 598 167,681 3,876 Less amounts representing interest (18,515) (140) Lease obligations included in current and long-term liabilities 149,166 3,736 As of January 2, 2021, the Company also has additional operating leases that have not yet commenced, primarily for buildings and machinery and equipment, with fixed payments over their noncancellable terms of approximately $1.2 million. These operating leases will commence in 2021 with noncancellable terms of 5 years. Rent expense was approximately $51.8 million for the fiscal year ended December 29, 2018. The Company's finance 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. |
Leases | LEASES In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). The Company adopted the new standard on December 30, 2018 using the modified retrospective approach and is using the effective date as the Company's date of initial application and consequently, financial information will not be updated and the disclosures required under the this ASU will not be provided for dates and periods before December 30, 2018. The Company has elected the package of expedients, which permits the Company not to reassess under the new standard the Company's prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to the Company. The Company leases certain real and personal property under non-cancelable operating leases. In addition, the Company leases a large portion of the Company's fleet of tractors, all of its rail cars, some IT equipment and other transportation equipment. The Company's office leases include certain lease and non-lease components, where the Company has elected to exclude the non-lease components from the calculation of the lease liability and ROU asset. The Company has finance leases, which are not significant to the Company and not separately disclosed in detail. In addition, the Company's other variable lease payments are not significant. The components of operating lease expense included in cost of sales and operating expenses and selling, general and administrative expenses were as follows (in thousands): Year Ended Year Ended January 2, 2021 December 28, 2019 Operating lease expense $ 45,362 $ 48,858 Short-term lease costs 25,868 18,163 Total lease cost $ 71,230 $ 67,021 Other information (in thousands, except lease terms and discount rates): Year Ended January 2, 2021 December 28, 2019 Cash paid for amounts included in the measurement lease liabilities Operating cash flows from operating leases $ 52,055 $ 47,691 Operating right-of-use assets, net $ 146,563 $ 124,726 Operating lease liabilities, current $ 39,459 $ 37,805 Operating lease liabilities, non-current 109,707 91,424 Total operating lease liabilities $ 149,166 $ 129,229 Weighted average remaining lease term - operating leases 6.30 years 6.46 years Weighted average discount rate - operating leases 4.22 % 4.55 % Future annual minimum lease payments and finance lease commitments as of January 2, 2021 were as follows (in thousands): Period Ending Fiscal Operating Leases Finance Leases 2021 $ 44,723 $ 952 2022 33,145 858 2023 28,182 637 2024 21,551 486 2025 12,912 345 Thereafter 27,168 598 167,681 3,876 Less amounts representing interest (18,515) (140) Lease obligations included in current and long-term liabilities 149,166 3,736 As of January 2, 2021, the Company also has additional operating leases that have not yet commenced, primarily for buildings and machinery and equipment, with fixed payments over their noncancellable terms of approximately $1.2 million. These operating leases will commence in 2021 with noncancellable terms of 5 years. Rent expense was approximately $51.8 million for the fiscal year ended December 29, 2018. The Company's finance 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 |
Jan. 02, 2021 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Debt consists of the following (in thousands): January 2, 2021 December 28, 2019 Amended Credit Agreement: Revolving Credit Facility $ 55,000 $ 39,000 Term Loan B 300,000 495,000 Less unamortized deferred loan costs (3,798) (7,696) Carrying value Term Loan B 296,202 487,304 5.25% Senior Notes due 2027 with effective interest of 5.47% 500,000 500,000 Less unamortized deferred loan costs (5,747) (6,494) Carrying value 5.25% Senior Notes due 2027 494,253 493,506 3.625%Senior Notes due 2026 - Denominated in euro with effective interest of 3.83% 632,163 574,096 Less unamortized deferred loan costs - Denominated in euro (6,586) (6,982) Carrying value 3.625% Senior Notes due 2026 625,577 567,114 Other Notes and Obligations 37,037 62,501 1,508,069 1,649,425 Less Current Maturities 27,538 90,996 $ 1,480,531 $ 1,558,429 As of January 2, 2021, the Company had outstanding debt under the Company's 3.625% Senior Notes due 2026 denominated in euros of €515.0 million. See below for discussion relating to the Company's debt agreements. In addition, at January 2, 2021, the Company had capital lease obligations denominated in euros of approximately €3.0 million. As of January 2, 2021, the Company had other notes and obligations that consist of various overdraft facilities of approximately $4.3 million, a China working capital line of credit of approximately $16.2 million and other debt of approximately $16.5 million. 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 September 18, 2020, the Company, and certain of its subsidiaries entered into an amendment (the “Sixth Amendment”) with its lenders to the Amended Credit Agreement. Among other things, the Sixth Amendment (i) extended the maturity date of the revolving credit facility under the Amended Credit Agreement from December 16, 2021 to September 18, 2025, (ii) increased the leverage ratio applicable to achieving the lowest applicable margin on borrowing under the revolving credit facility from 1.0 to 1.5, (iii) eliminated or modified certain of the negative covenants to increase the allowances for certain actions, including the incurrence of debt and investments, (iv) limited guarantees from, and security with respect to, entities organized outside of the United States and Canada to a limited group of foreign subsidiary holding companies, (v) included a collateral release mechanism, subject to the consent of the term loan B lenders, upon the Company achieving certain investment grade credit ratings, and (vi) made other market updates and changes. Effective December 18, 2017, the Company, and certain of its subsidiaries entered into an amendment (the “Fifth Amendment”) with its lenders to the Amended Credit Agreement. Among other things, the Fifth Amendment (i) refinanced the term B loans under the Amended Credit Agreement with new term B loans in an aggregate principal amount of $525.0 million with a maturity date of December 18, 2024; (ii) adjusted the applicable margin pricing on borrowings under the term B loan; (iii) modified certain of the negative covenants to increase the allowances for certain actions, including debt and investments; and (iv) made other updates and changes. 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) adjusted the applicable margin pricing grid on borrowings under the revolving credit facility which adjusts based on the Company's total leverage ratio as set forth in the Amended Credit Agreement; (ii) 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 a 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; (iii) 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 (iv) made other updates and changes. The Amended Credit Agreement provides for senior secured credit facilities in the aggregate principal amount of $1.525 billion comprised of (i) the Company's $525.0 million term loan B facility and (iii) the Company's $1.0 billion five-year revolving loan facility (up to $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 $970.0 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”) in U.S. dollars, Canadian dollars, euros and other currencies to be agreed and available to each applicable lender. The remaining $30.0 million must be borrowed in U.S. dollars only by Darling. The revolving loan facility will mature on September 18, 2025. The revolving credit facility will be used for working capital needs, general corporate purposes and other purposes not prohibited by the Amended Credit Agreement. The interest rate applicable to any borrowings under the revolving loan facility will equal either LIBOR/euro interbank offered rate/CDOR plus 1.50% per annum or base rate/Canadian prime rate plus 0.50% 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 the base rate plus 1.00% or LIBOR plus 2.00%. As of January 2, 2021, the Company had $30.0 million outstanding under the revolver at base rate plus a margin of 0.50% per annum for a total of 3.75% per annum and $25.0 million outstanding under the revolver at LIBOR plus a margin of 1.50% per annum for a total of 1.65% per annum. The Company had $300.0 million outstanding under the term loan B facility at LIBOR plus a margin of 2.00% per annum for a total of 2.15% per annum. As of January 2, 2021, the Company had availability of $893.9 million under the Amended Credit Agreement taking into account amounts borrowed, ancillary facilities and letters of credit issued of $3.9 million. The Company also has foreign bank guarantees that are not part of the Company's Amended Credit Agreement in the amount of approximately $12.5 million at January 2, 2021. The Company capitalized approximately $4.3 million of deferred loan costs in the year ended January 2, 2021 in connection with the Sixth 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. 3.625% Senior Notes due 2026. On May 2, 2018, Darling Global Finance B.V. (the “3.625% Issuer”), a wholly-owned subsidiary of Darling, issued and sold €515.0 million aggregate principal amount of 3.625% Senior Notes due 2026 (the “3.625% Notes”). The 3.625% Notes, which were offered in a private offering, were issued pursuant to a Senior Notes Indenture, dated as of May 2, 2018 (the “3.625% Indenture”), among Darling Global Finance B.V., Darling, the subsidiary guarantors party thereto from time to time, Citibank, N.A., London Branch, as trustee and principal paying agent, and Citigroup Global Markets Deutschland AG, as principal registrar. The gross proceeds of the offering, together with borrowings under the Company’s revolving credit facility, were used to refinance all of the 4.75% Notes (as defined below) by cash tender offer and redemption of those notes and to pay any applicable premiums for the refinancing, to pay the commission of the initial purchasers of the 3.625% Notes and to pay the other fees and expenses related to the offering. The refinancing of the 4.75% Notes was completed during the second quarter of 2018. The 3.625% Notes will mature on May 15, 2026. The 3.625% Issuer will pay interest on the 3.625% Notes on May 15 and November 15 of each year, commencing on November 15, 2018. Interest on the 3.625% Notes accrues from May 2, 2018 at a rate of 3.625% per annum and is payable in cash. The 3.625% Notes are guaranteed on a senior unsecured basis by Darling and all of Darling's restricted subsidiaries (other than any foreign subsidiary or any receivable entity) that guarantee the Senior Secured Credit Facilities (collectively, the “3.625% Guarantors”). The 3.625% Notes and the guarantees thereof are senior unsecured obligations of the 3.625% Issuer and the 3.625% Guarantors and rank equally in right of payment to all of the 3.625% Issuer's and the 3.625% Guarantors' existing and future senior unsecured indebtedness. The 3.625% Indenture contains covenants limiting Darling's ability and the ability of its restricted subsidiaries (including the 3.625% 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 3.625% Issuer is not required to make mandatory redemption or sinking fund payments on the 3.625% Notes. The 3.625% Notes are redeemable, in whole or in part, at any time on or after May 15, 2021 at the redemption prices specified in the 3.625% Indenture. The 3.625% Issuer may redeem some or all of the 3.625% Notes at any time prior to May 15, 2021, at a redemption price equal to 100% of the principal amount of the 3.625% Notes redeemed, plus accrued and unpaid interest to the redemption date and an Applicable Premium as specified in the 3.625% 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). 5.25% Senior Notes due 2027. On April 3, 2019, Darling issued and sold $500.0 million aggregate principal amount of 5.25% Senior Notes due 2027 (the “5.25% Notes”). The 5.25% Notes, which were offered in a private offering, were issued pursuant to a Senior Notes Indenture, dated as of April 3, 2019 (the “5.25% Indenture”), among Darling, the subsidiary guarantors party thereto from time to time, and Regions Bank, as trustee. The gross proceeds from the sale of the Notes, together with cash on hand, were used to refinance all of the Company's 5.375% Notes (as defined below), by cash tender offer for and redemption of those notes, to pay the discount of the initial purchasers and to pay the other fees and expenses related to the offering of the 5.25% Notes. The refinancing of the 5.375% Notes was completed during the second quarter of 2019. The 5.25% Notes will mature on April 15, 2027. Darling will pay interest on the 5.25% Notes on April 15 and October 15 of each year, commencing on October 15, 2019. Interest on the 5.25% Notes accrues from April 3, 2019 at a rate of 5.25% per annum and is payable in cash. The 5.25% Notes are guaranteed on a senior unsecured basis by Darling and all of Darling's restricted subsidiaries (other than foreign subsidiaries) that are borrowers under or that guarantee the Senior Secured Credit Facilities (collectively, the “5.25% Guarantors”). The 5.25% Notes and the guarantees thereof are senior unsecured obligations of Darling and the 5.25% Guarantors and rank equally in right of payment to all of the Darling's and the 5.25% Guarantors' existing and future senior unsecured indebtedness. The 5.25% Indenture contains covenants limiting Darling's ability and the ability of its restricted subsidiaries to, grant liens to secure indebtedness and 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 5.25% Notes. The 5.25% Notes are redeemable, in whole or in part, at any time on or after April 15, 2022 at the redemption prices specified in the 5.25% Indenture. Darling may redeem some or all of the 5.25% Notes at any time prior to April 15, 2022, at a redemption price equal to 100% of the principal amount of the 5.25% Notes redeemed, plus accrued and unpaid interest to the redemption date and an Applicable Premium as specified in the 5.25% 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). 4.75% Senior Notes due 2022. On June 3, 2015, Darling Global Finance B.V. issued and sold €515.0 million aggregate principal amount of the 4.75% Senior Notes due 2022 (the “4.75% Notes”). The Company retired the 4.75% Notes in the second quarter of 2018 using the proceeds from the issuance of the 3.625% Notes and incurred charges of approximately $23.5 million in debt extinguishment charges including the write-off of deferred loan costs. 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”). The Company retired the 5.375% Notes in the second quarter of 2019 using the proceeds from the issuance of the 5.25% Notes and incurred charges of approximately $12.1 million in debt extinguishment charges including the write-off of deferred loan costs. As of January 2, 2021, the Company believes it is in compliance with all financial covenants under the Amended Credit Agreement, as well as all of the other covenants contained in the Amended Credit Agreement, the 5.25% Indenture and the 3.625% Indenture. Maturities of long-term debt at January 2, 2021 follow (in thousands): Contractual 2021 $ 27,538 2022 4,697 2023 3,075 2024 300,514 2025 55,378 thereafter 1,132,998 $ 1,524,200 |
Other Noncurrent Liabilities
Other Noncurrent Liabilities | 12 Months Ended |
Jan. 02, 2021 | |
OTHER NONCURRENT LIABILITIES [Abstract] | |
OTHER NONCURRENT LIABILITIES | OTHER NONCURRENT LIABILITIES Other noncurrent liabilities consist of the following (in thousands): January 2, 2021 December 28, 2019 Accrued pension liability (Note 15) $ 55,757 $ 55,491 Reserve for self insurance, litigation, environmental and tax 59,111 54,568 Other 2,503 5,726 $ 117,371 $ 115,785 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES U.S. and foreign income from operations before income taxes are as follows (in thousands): January 2, 2021 December 28, 2019 December 29, 2018 United States $ 265,950 $ 260,867 $ 82,146 Foreign 87,669 119,567 35,829 Income from operations before income taxes $ 353,619 $ 380,434 $ 117,975 Income tax expense attributable to income from operations before income taxes consists of the following (in thousands): January 2, 2021 December 28, 2019 December 29, 2018 Current: Federal $ (72) $ (162) $ (330) State 1,595 341 (3) Foreign 36,453 37,117 27,935 Total current 37,976 37,296 27,602 Deferred: Federal 20,827 13,465 4,803 State 840 11,804 (2,216) Foreign (6,354) (3,098) (18,158) Total deferred 15,313 22,171 (15,571) $ 53,289 $ 59,467 $ 12,031 Income tax expense for the years ended January 2, 2021, December 28, 2019 and December 29, 2018, 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): January 2, 2021 December 28, 2019 December 29, 2018 Computed "expected" tax expense $ 74,260 $ 79,891 $ 24,775 Change in valuation allowance (522) 38 9,700 Non-deductible compensation expenses 4,723 3,950 2,305 Deferred tax on unremitted foreign earnings (548) 1,505 (31) Sub-Part F income 45 1,122 3,361 Foreign rate differential 7,077 7,246 658 Change in uncertain tax positions (4,650) 1,736 3,419 State income taxes, net of federal benefit 2,702 5,686 (1,813) Biofuel tax incentives (31,725) (46,007) (18,489) Change in tax law 3,699 1,352 (10,017) Other, net (1,772) 2,948 (1,837) $ 53,289 $ 59,467 $ 12,031 The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at January 2, 2021 and December 28, 2019 are presented below (in thousands): January 2, 2021 December 28, 2019 Deferred tax assets: Loss contingency reserves $ 9,805 $ 11,193 Employee benefits 13,027 12,236 Pension liability 13,053 13,049 Intangible assets amortization, including taxable goodwill 1,474 1,485 Interest expense carryforwards 402 12,361 Tax loss carryforwards 68,730 80,195 Tax credit carryforwards 6,610 5,653 Operating lease liabilities 38,930 33,549 Inventory 5,935 5,185 Accrued liabilities and other 12,925 13,677 Total gross deferred tax assets 170,891 188,583 Less valuation allowance (24,228) (24,759) Net deferred tax assets 146,663 163,824 Deferred tax liabilities: Intangible assets amortization, including taxable goodwill (169,277) (157,332) Property, plant and equipment depreciation (133,712) (144,911) Investment in DGD Joint Venture (52,238) (54,287) Operating lease assets (38,049) (32,233) Tax on unremitted foreign earnings (10,234) (6,139) Other (2,685) (2,459) Total gross deferred tax liabilities (406,195) (397,361) Net deferred tax liability $ (259,532) $ (233,537) Amounts reported on Consolidated Balance Sheets: Non-current deferred tax asset $ 16,676 $ 14,394 Non-current deferred tax liability (276,208) (247,931) Net deferred tax liability $ (259,532) $ (233,537) At January 2, 2021, the Company had net operating loss carryforwards for federal income tax purposes of approximately $56.7 million which can be carried forward indefinitely. The Company had a capital loss carry forward for federal income tax purposes of approximately $21.1 million, which expires in 2023 and can only be used in future years in which the Company recognizes capital gains. The Company had approximately $274.4 million of net operating loss carryforwards for state income tax purposes, $257.9 million of which expire in 2021 through 2040 and $16.5 million of which can be carried forward indefinitely. The Company had foreign net operating loss carryforwards of about $144.0 million, $57.8 million of which expire in 2021 through 2037 and $86.2 million of which can be carried forward indefinitely. Also at January 2, 2021, the Company had U.S. federal and state tax credit carryforwards of approximately $1.3 million, and tax credit carryforwards with respect to its foreign tax jurisdictions of approximately $5.3 million. As of January 2, 2021, the Company had a valuation allowance of $7.1 million due to uncertainties in respect to its ability to utilize its U.S. (federal and state) net operating loss, capital loss and tax credit carryforwards. The Company also had a valuation allowance of $17.1 million due to uncertainties in its ability to utilize foreign net operating loss carryforwards, tax credit carryforwards and other foreign deferred tax assets. At January 2, 2021, the Company had unrecognized tax benefits of approximately $5.0 million. 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 $0.2 million in the next twelve months. The possible change in unrecognized tax benefits relates to expiration of certain statutes of limitation. The Company recognizes accrued interest and penalties, as appropriate, related to unrecognized tax benefits as a component of income tax expense. As of January 2, 2021, interest and penalties related to unrecognized tax benefits were $0.4 million. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): January 2, 2021 December 28, 2019 Balance at beginning of Year $ 7,810 $ 5,777 Change in tax positions related to current year 9 3,887 Change in tax positions related to prior years (2,780) (233) Change in tax positions due to settlement with tax authorities — (1,354) Expiration of the Statute of Limitations — (267) Balance at end of year $ 5,039 $ 7,810 In fiscal 2020, the Company's major taxing jurisdictions are U.S. (federal and state), Belgium, Brazil, Canada, China, France, Germany and the Netherlands. The Company is subject to regular examination by various 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 2013 tax year. The Company expects to have access to its offshore earnings with minimal to no additional U.S. tax impact. Therefore, the Company does not consider these earnings to be permanently reinvested offshore. As of January 2, 2021, a deferred tax liability of approximately $10.2 million has been recorded for any incremental taxes, including foreign withholding taxes, that are estimated to be incurred when those earnings are distributed to the U.S. in future years. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was enacted in response to the COVID-19 pandemic. The US Congress approved an additional relief package in December 2020 that extended and/or enhanced certain provisions of the CARES Act as well as certain sunsetting corporate tax provisions. In addition, governments around the world have enacted or implemented various forms of tax relief measures in response to the economic conditions in the wake of COVID-19. These COVID-19 tax relief measures have limited applicability and no material impact to the Company. The Company will continue to monitor legislative and regulatory developments related to COVID-19 tax relief. |
Stockholders' Equity and Stock-
Stockholders' Equity and Stock-Based Compensation | 12 Months Ended |
Jan. 02, 2021 | |
Stockholders' Equity and Stock-Based Compensation [Abstract] | |
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION | STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION On August 3, 2020, the Company’s Board of Directors approved the extension for an additional two years of its previously announced share repurchase program and refreshed the amount of the program back up to its original amount of an aggregate of $200.0 million of the Company's Common Stock depending on market conditions. During fiscal 2020 and fiscal 2019, the Company repurchased approximately $55.0 million and $19.3 million including commissions of its common stock in the open market, respectively. As of January 2, 2021, the Company has approximately $200.0 million remaining under the share repurchase program initially approved in August 2017 and subsequently extended to August 13, 2022. On May 9, 2017, the shareholders approved the Company's 2017 Omnibus Incentive Plan (the “2017 Omnibus Plan”). The 2017 Omnibus Plan replaced the Company's 2012 Omnibus Incentive Plan (the “2012 Omnibus Plan”) for future grants. Under the 2017 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 20,166,500 common shares available under the 2017 Omnibus Plan which may be granted to participants in any plan year (as such term is defined in the 2017 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 2017 Omnibus Plan. The 2017 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 2017 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 2017 Omnibus Plan. For each of fiscal 2020, 2019 and 2018, the Committee 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 2017 Omnibus Plan. Pursuant to the LTIP, for each of fiscal 2020, 2019, and 2018, participants received (i) annual, overlapping grants of performance share units (“PSUs”) tied to a three-year, forward looking performance metric and (ii) annual stock options grants that vest 33.33% on the first, second and third anniversaries of grant. The principal purpose of the LTIP is to encourage the participants 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 participants. See “Stock Option Awards”, “Fiscal 2020 LTIP PSU Awards”, “Fiscal 2019 LTIP PSU Awards” and “Fiscal 2018 LTIP PSU Awards” below for more information regarding the stock options and PSU awards under the 2020 LTIP, 2019 LTIP and 2018 LTIP. At January 2, 2021, the number of common shares available for issuance under the 2017 Omnibus Plan was 10,824,222. At January 2, 2021, $7.4 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 1.2 years. The following is a summary of stock-based compensation awards granted during the years ended January 2, 2021, December 28, 2019 and December 29, 2018. Stock Option Awards . Stock options to purchase Darling common shares were granted by the Committee to certain of the Company's employees as part of the Company's LTIPs in effect for each of fiscal 2020, 2019 and 2018 under the 2017 Omnibus Plan. For the options granted under the fiscal 2020 LTIP, 2019 LTIP and 2018 LTIP, the exercise price was equal to the closing price of Darling common shares on the date of grant, which was January 6, 2020, January 25, 2019 and January 29, 2018, respectively, and such options vest 33.33% on the first, second and third anniversaries of the grant date. The Company granted 550,941 stock options under the 2020 LTIP, 610,953 stock options under the 2019 LTIP and 637,115 stock options under the 2018 LTIP. During fiscal 2020, 2019 and 2018 only nonqualified stock options were issued and none of the options were incentive stock options. The Company’s stock options granted under the LTIPs generally terminate 10 years after the date of grant. A summary of all stock option activity as of January 2, 2021 and changes during the year ended is as follows: Number of Weighted-avg. Weighted-avg. Options outstanding at December 30, 2017 3,290,757 $ 11.86 7.3 years Granted 637,115 18.82 Exercised (153,717) 11.49 Forfeited (19,953) 9.99 Expired — — Options outstanding at December 29, 2018 3,754,202 13.07 6.9 years Granted 610,953 21.00 Exercised (380,206) 9.83 Forfeited (6,464) 18.11 Expired — — Options outstanding at December 28, 2019 3,978,485 14.59 6.5 years Granted 550,941 28.89 Exercised (837,911) 12.01 Forfeited — — Expired — — Options outstanding at January 2, 2021 3,691,515 $ 17.31 6.2 years Options exercisable at January 2, 2021 2,527,003 $ 14.07 5.3 years The fair value of each stock option grant under the LTIPs was estimated on the date of grant using the Black Scholes option-pricing model with the following weighted average assumptions and results for fiscal 2020, 2019 and 2018. Weighted Average 2020 2019 2018 Expected dividend yield 0.0% 0.0% 0.0% Risk-free interest rate 1.65% 2.61% 2.54% Expected term 5.94 years 6.00 years 5.82 years Expected volatility 27.4% 29.6% 29.3% Fair value of options granted $8.64 $7.16 $6.37 The expected life of options granted in fiscal 2020 were computed using the Company's historical data based on exercised and cancelled options. The expected lives for options granted during fiscal 2019 and 2018 were computed using the simplified method since the option plans historical exercise data did not provided a reasonable basis for estimating the expected term for the option grants. For the year ended January 2, 2021, the amount of cash received from the exercise of options was approximately $0.1 million and the related tax benefit was $2.4 million. For the year ended December 28, 2019, the amount of cash received from the exercise of options was less than approximately $0.1 million and the related tax benefit was approximately $0.4 million. For the year ended December 29, 2018, the amount of cash received from the exercise of options was less than $0.2 million and the related tax benefit was approximately $0.2 million. The total intrinsic value of options exercised for the years ended January 2, 2021, December 28, 2019 and December 29, 2018 was approximately $19.5 million, $4.7 million and $1.1 million, respectively. The fair value of shares vested for the years ended January 2, 2021, December 28, 2019 and December 29, 2018 was approximately $17.4 million, $15.5 million and $12.5 million, respectively. At January 2, 2021, the aggregate intrinsic value of options outstanding was approximately $149.0 million and the aggregate intrinsic value of options exercisable was approximately $110.2 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. Starting in 2016, the Committee made changes to the LTIP and instead of the non-vested stock and RSU awards, the Company began to grant 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, while 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. For grants made under the 2017 Omnibus Plan, both non-vested stock and RSUs generally vest on the first three anniversary dates of the grant. 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. In fiscal 2020, the Committee granted 11,000 non-vested shares of stock to various individuals that vest on the first anniversary of the grant. A summary of the Company’s non-vested stock, restricted stock unit and performance share unit awards as of January 2, 2021, and changes during the year ended is as follows: Non-Vested, RSU and PSU Weighted Average Stock awards outstanding December 30, 2017 360,344 $ 13.18 Shares granted — — Shares vested (228,991) 13.11 Shares forfeited (2,779) 12.11 Stock awards outstanding December 29, 2018 128,574 13.32 Shares granted — — Shares vested (126,511) 12.13 Shares forfeited (1,313) 14.92 Stock awards outstanding December 28, 2019 750 15.50 Shares granted 11,000 35.66 Shares vested (375) 15.50 Shares forfeited — — Stock awards outstanding January 2, 2021 11,375 $ 35.00 Fiscal 2020 LTIP PSU Awards . On January 6, 2020, the Committee granted 224,481 PSUs under the Company's 2020 LTIP. The PSUs are tied to a three-year forward-looking performance period and will be earned based on the Company's average return on capital employed (ROCE), as calculated in accordance with the terms of the award agreement, relative to the average ROCE of the Company's performance peer group companies over the same performance period, with the earned award to be determined in the first quarter of fiscal 2023, after the final results for the relevant performance period are determined. Fiscal 2019 LTIP PSU Awards . On January 25, 2019, the Committee granted 305,195 PSUs under the Company's 2019 LTIP. The PSUs are tied to a three-year forward-looking performance period and will be earned based on the Company's average return on capital employed (ROCE), as calculated in accordance with the terms of the award agreement, relative to the average ROCE of the Company's performance peer group companies over the same performance period, with the earned award to be determined in the first quarter of fiscal 2022, after the final results for the relevant performance period are determined. Fiscal 2018 LTIP PSU Awards . On January 29, 2018, the Committee granted 295,514 PSUs under the Company's 2018 LTIP. The PSUs are tied to a three-year forward-looking performance period and will be earned based on the Company's average return on capital employed (ROCE), as calculated in accordance with the terms of the award agreement, relative to the average ROCE of the Company's performance peer group companies over the same performance period, with the earned award to be determined in the first quarter of fiscal 2021, after the final results for the relevant performance period are determined. Under the 2020 LTIP, 2019 LTIP and 2018 LTIP, 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. The fair value of each 2020 LTIP, 2019 LTIP and 2018 LTIP PSU award under the Company's 2020 LTIP, 2019 LTIP and 2018 LTIP was estimated on the date of grant using a Monte Carlo model with the following weighted average assumptions for fiscal 2020, fiscal 2019 and fiscal 2018. Weighted Average 2020 2019 2018 Expected dividend yield 0.0% 0.0% 0.0% Risk-free interest rate 1.55% 2.58% 2.25% Expected term 2.99 years 2.93 years 2.93 years Expected volatility 25.8% 30.7% 34.4% A summary of the Company’s 2020, 2019 and 2018 LTIP PSU awards as of January 2, 2021, and changes during the year ended is as follows: LTIP PSU Weighted Average LTIP PSU awards outstanding December 30, 2017 1,141,016 $ 8.91 Granted 295,514 20.60 Additional PSU awards vested from performance 88,151 6.95 Stock issued for PSUs (26,212) 6.95 Forfeited (16,493) 9.39 LTIP PSU awards outstanding December 29, 2018 1,481,976 $ 11.15 Granted 305,195 21.50 Additional PSU awards vested from performance 235,126 7.23 Stock issued for PSUs (125,067) 7.84 Forfeited (3,757) 19.09 LTIP PSU awards outstanding December 28, 2019 1,893,473 $ 12.54 Granted 224,481 31.80 Additional PSU awards vested from performance 434,666 11.14 Stock issued for PSUs (349,210) 8.91 Forfeited (332) 26.88 LTIP PSU awards outstanding January 2, 2021 2,203,078 $ 14.80 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 Company's 2004 Omnibus Incentive Plan (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 received $90,000 of restricted stock units immediately following the Company’s annual meeting of stockholders at which such directors are elected. Beginning in fiscal 2017, the Board increased the dollar amount of the annual grant of restricted stock units to $110,000, and such grants are now made under the 2017 Omnibus Plan. 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 grantee’s separation from service as a result of death or disability, or (iii) 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 earlier distributions 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 January 2, 2021, and changes during the year ended is as follows: Restricted stock and Restricted Stock Unit Weighted Average Stock awards outstanding December 30, 2017 154,809 $ 14.91 Restricted shares granted 61,806 16.92 Restricted shares where the restriction lapsed (1,438) 13.90 Restricted shares forfeited — — Stock awards outstanding December 29, 2018 215,177 15.49 Restricted shares granted 52,990 20.76 Restricted shares where the restriction lapsed (6,803) 2.94 Restricted shares forfeited — — Stock awards outstanding December 28, 2019 261,364 16.89 Restricted shares granted 48,267 20.51 Restricted shares where the restriction lapsed (73,354) 16.33 Restricted shares forfeited — — Stock awards outstanding January 2, 2021 236,277 $ 17.79 |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Jan. 02, 2021 | |
Comprehensive Income [Abstract] | |
COMPREHENSIVE INCOME | COMPREHENSIVE INCOME/(LOSS) 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 swap adjustments, corn option adjustments, soybean meal forward adjustments, foreign exchange forward and option adjustments, heating oil swap adjustments and foreign currency translation adjustments. In February 2018, the FASB issued ASU No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU amends Topic 220, Income Statement - Reporting Comprehensive Income , which allowed for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The ASU is effective for fiscal years beginning after December 15, 2018; however, the Company elected to early adopt ASU No. 2018-02 during the quarter ended March 31, 2018. The adoption resulted in a $4.8 million reclassification from accumulated other comprehensive loss to retained earnings resulting from the Tax Cuts and Jobs Act. In fiscal 2020 and fiscal 2019, the Company's DGD Joint Venture entered into heating oil derivatives that were deemed to be cash flow hedges. As a result, the Company has accrued the other comprehensive income/(loss) portion belonging to Darling with an offset to the investment in DGD as required by FASB ASC Topic 323. The components of other comprehensive income/(loss) and the related tax impacts for the years ended January 2, 2021, December 28, 2019 and December 29, 2018 are as follows (in thousands): Before-Tax Tax (Expense) Net-of-Tax Amount or Benefit Amount Year Ended December 29, 2018 Defined Benefit Pension Plans Actuarial (loss)/gain recognized $ (7,901) $ 2,015 $ (5,886) Amortization of actuarial loss 3,543 (910) 2,633 Actuarial prior service cost recognized (11) 3 (8) Amortization of prior service costs 35 (9) 26 Amortization of curtailment 498 — 498 Amortization of settlement (3) 1 (2) Other 9 — 9 Total defined benefit pension plans (3,830) 1,100 (2,730) Natural gas swap derivatives Gain/(loss) reclassified to net income 14 (3) 11 Gain/(loss) recognized in other comprehensive income (loss) 16 (4) 12 Total natural gas derivatives 30 (7) 23 Soybean meal option derivatives Gain/(loss) reclassified to net income (8) 2 (6) Gain/(loss) recognized in other comprehensive income (loss) 8 (2) 6 Total soybean meal derivatives 0 0 0 Corn option derivatives Gain/(loss) reclassified to net income (1,912) 493 (1,419) Gain/(loss) recognized in other comprehensive income (loss) (361) 93 (268) Total corn options (2,273) 586 (1,687) Foreign exchange derivatives Gain/(loss) recognized in other comprehensive income 1,637 (556) 1,081 Total foreign exchange derivatives 1,637 (556) 1,081 Foreign currency translation (89,198) 1,724 (87,474) Other comprehensive income/(loss) $ (93,634) $ 2,847 $ (90,787) Year Ended December 28, 2019 Defined Benefit Pension Plans Actuarial (loss)/gain recognized $ (2,202) $ 211 $ (1,991) Amortization of actuarial loss 4,571 (1,143) 3,428 Actuarial prior service cost recognized 9 (2) 7 Amortization of prior service costs 34 (9) 25 Amortization of settlement 66 (16) 50 Other 16 — 16 Total defined benefit pension plans 2,494 (959) 1,535 Heating oil swap derivatives Gain/(loss) recognized in other comprehensive income (loss) (4,188) 1,047 (3,141) Total heating oil derivatives (4,188) 1,047 (3,141) Corn option derivatives Gain/(loss) reclassified to net income 422 (106) 316 Gain/(loss) recognized in other comprehensive income (loss) (51) 13 (38) Total corn options 371 (93) 278 Foreign exchange derivatives Gain/(loss) reclassified to net income 1,345 (442) 903 Gain/(loss) recognized in other comprehensive income (loss) (6,887) 2,261 (4,626) Total foreign exchange derivatives (5,542) 1,819 (3,723) Foreign currency translation (12,771) 837 (11,934) Other comprehensive income/(loss) $ (19,636) $ 2,651 $ (16,985) Year Ended January 2, 2021 Defined Benefit Pension Plans Actuarial (loss)/gain recognized $ (9,470) $ 2,547 $ (6,923) Amortization of actuarial loss 3,405 (862) 2,543 Amortization of prior service costs 33 (8) 25 Amortization of curtailment 69 (15) 54 Amortization of settlement (30) 7 (23) Other 11 — 11 Total defined benefit pension plans (5,982) 1,669 (4,313) Heating oil swap derivatives Gain/(loss) recognized in other comprehensive income (loss) 1,457 (353) 1,104 Total heating oil derivatives 1,457 (353) 1,104 Soybean meal option derivatives Gain/(loss) reclassified to net income 49 (12) 37 Gain/(loss) recognized in other comprehensive income (loss) 349 (89) 260 Total soybean meal derivatives 398 (101) 297 Corn option derivatives Gain/(loss) reclassified to net income 123 (31) 92 Gain/(loss) recognized in other comprehensive income (loss) (7,803) 1,980 (5,823) Total corn options (7,680) 1,949 (5,731) Foreign exchange derivatives Gain/(loss) reclassified to net income (13,809) 5,114 (8,695) Gain/(loss) recognized in other comprehensive income (loss) 24,325 (9,009) 15,316 Total foreign exchange derivatives 10,516 (3,895) 6,621 Foreign currency translation 73,845 (3,525) 70,320 Other comprehensive income/(loss) $ 72,554 $ (4,256) $ 68,298 Fiscal Year Ended January 2, 2021 December 28, 2019 December 29, 2018 Statement of Operations Classification Derivative instruments Soybean meal option derivatives $ (49) $ — $ 8 Net sales Foreign Exchange derivatives 13,809 (1,345) — Net sales Natural gas swap derivatives — — (14) Cost of sales and operating expenses Corn option derivatives (123) (422) 1,912 Cost of sales and operating expenses 13,637 (1,767) 1,906 Total before tax (5,071) 548 (492) Income taxes 8,566 (1,219) 1,414 Net of tax Defined benefit pension plans Amortization of prior service cost $ (33) $ (34) $ (35) (a) Amortization of actuarial loss (3,405) (4,571) (3,543) (a) Amortization of curtailment (69) — (498) (a) Amortization of settlement 30 (66) 3 (a) (3,477) (4,671) (4,073) Total before tax 878 1,168 918 Income taxes (2,599) (3,503) (3,155) Net of tax Total reclassifications $ 5,967 $ (4,722) $ (1,741) 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 loss as of January 2, 2021 as follows (in thousands): Fiscal Year Ended January 2, 2021 Foreign Currency Derivative Defined Benefit Translation Instruments Pension Plans Total Accumulated Other Comprehensive loss December 28, 2019, attributable to Darling, net of tax $ (282,338) $ (5,505) $ (34,004) $ (321,847) Other comprehensive loss before reclassifications 70,320 10,857 (6,912) 74,265 Amounts reclassified from accumulated other comprehensive income — (8,566) 2,599 (5,967) Net current-period other comprehensive income/(loss) 70,320 2,291 (4,313) 68,298 Noncontrolling interest (1,116) — — (1,116) Accumulated Other Comprehensive loss January 2, 2021, attributable to Darling, net of tax $ (210,902) $ (3,214) $ (38,317) $ (252,433) |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jan. 02, 2021 | |
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. 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 2020, 2019 and 2018 were approximately $11.3 million, $10.6 million and $10.1 million, respectively. The Company's matching portion and annual employer contributions to the Company's foreign defined contribution plans for fiscal 2020, 2019 and 2018 were approximately $8.5 million, $8.4 million and $7.8 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. The Company uses 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, 2020 and December 31, 2019) (in thousands): January 2, December 28, Change in projected benefit obligation: Projected benefit obligation at beginning of period $ 212,265 $ 190,666 Service cost 3,060 2,696 Interest cost 5,721 6,828 Employee contributions 360 368 Plan combinations 5,362 — Actuarial loss 16,427 20,927 Benefits paid (8,274) (8,120) Effect of curtailment (747) (43) Effect of settlement (2,208) (903) Other 4,011 (154) Projected benefit obligation at end of period 235,977 212,265 Change in plan assets: Fair value of plan assets at beginning of period 155,702 133,861 Actual return on plan assets 16,029 26,014 Employer contributions 11,460 4,343 Employee contributions 360 368 Plan combinations 4,537 — Benefits paid (8,274) (8,120) Effect of settlement (2,208) (903) Other 1,372 139 Fair value of plan assets at end of period 178,978 155,702 Funded status (56,999) (56,563) Net amount recognized $ (56,999) $ (56,563) Amounts recognized in the consolidated balance Current liability $ (1,242) $ (1,072) Noncurrent liability (55,757) (55,491) Net amount recognized $ (56,999) $ (56,563) Amounts recognized in accumulated other Net actuarial loss $ 51,145 $ 45,062 Prior service cost 194 295 Net amount recognized (a) $ 51,339 $ 45,357 (a) Amounts do not include deferred taxes of $13.0 million and $11.4 million at January 2, 2021 and December 28, 2019, respectively. The amounts included in “Other” in the above table reflect the impact of foreign exchange translation for plans in Brazil, Belgium, Canada, France, Germany, Japan, Netherlands and United Kingdom. The Company's domestic pension plan benefits comprise approximately 71% and 73% of the projected benefit obligation for fiscal 2020 and fiscal 2019, respectively. Additionally, the Company has made required and tax deductible discretionary contributions to its domestic pension plans in fiscal 2020 and fiscal 2019 of approximately $7.5 million and $0.9 million, respectively. The Company made required and tax deductible discretionary contributions to its foreign pension plans in fiscal 2020 and fiscal 2019 of approximately $4.0 million and $ 3.4 million, respectively. A significant component of the overall increase in the Company's benefit obligation for the fiscal year ended January 2, 2021 was from the change in the weighted-average discount rates at the measurement dates, which decreased from 2.77% at December 31, 2019 to 2.10% at December 31, 2020. January 2, December 28, Projected benefit obligation $ 235,977 $ 212,265 Accumulated benefit obligation 221,238 201,708 Fair value of plan assets 178,978 155,702 The Company's service cost component of net periodic pension cost is included in compensation costs while all components of net periodic pension cost other than the service cost component are included in the line item “Other expense, net” in the Company's Consolidated Statements of Operations. Net pension cost includes the following components (in thousands): January 2, December 28, December 29, Service cost $ 3,060 $ 2,696 $ 3,064 Interest cost 5,721 6,828 6,443 Expected return on plan assets (8,161) (7,270) (8,226) Net amortization and deferral 3,438 4,605 3,578 Curtailment (678) (33) (263) Settlement (22) 66 47 Net pension cost $ 3,358 $ 6,892 $ 4,643 Weighted average assumptions used to determine benefit obligations were: January 2, December 28, December 29, Discount rate 2.10% 2.77% 3.68% Rate of compensation increase 0.45% 0.40% 0.42% Weighted average assumptions used to determine net periodic benefit cost for the employee benefit pension plans were: January 2, December 28, December 29, Discount rate 2.13% 3.33% 2.30% Rate of increase in future compensation levels 0.41% 0.42% 0.36% Expected long-term rate of return on assets 5.92% 6.13% 6.13% 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 the U.S. plans, the Company believes it is reasonable to expect a long-term rate of return of 6.4% 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 1.8%. 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 outpace 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 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 Significant Other Significant (In thousands of dollars) Fair Value (Level 1) (Level 2) (Level 3) Balances as December 28, 2019 Fixed Income: Long Term $ 16,154 $ 16,154 $ — $ — Short Term 3,448 3,448 — — Equity Securities: Domestic equities 52,420 52,420 — — International equities 32,167 32,167 — — Insurance contracts 10,266 — 5,792 4,474 Total categorized in fair value hierarchy 114,455 104,189 5,792 4,474 Other investments measured at NAV 41,247 Totals $ 155,702 $ 104,189 $ 5,792 $ 4,474 Balances as January 2, 2021 Fixed Income: Long Term $ 20,082 $ 20,082 $ — $ — Short Term 3,585 3,585 — — Equity Securities: Domestic equities 55,454 55,454 — — International equities 35,022 35,022 — — Insurance contracts 14,337 — 11,088 3,249 Total categorized in fair value hierarchy 128,480 114,143 11,088 3,249 Other investments measured at NAV 50,498 Totals $ 178,978 $ 114,143 $ 11,088 $ 3,249 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 2020 and fiscal 2019 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 December 29, 2018 $ 3,337 Unrealized gains relating to instruments still held in the reporting period. 1,168 Purchases, sales, and settlements — Exchange rate changes (31) Balance as of December 28, 2019 4,474 Unrealized gains relating to instruments still held in the reporting period. 400 Purchases, sales, and settlements (1,956) Exchange rate changes 331 Balance as of January 2, 2021 $ 3,249 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 $3.8 million to meet funding requirements for its domestic and foreign pension plans in fiscal 2021. 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 2021 $ 11,947 2022 10,528 2023 10,953 2024 12,035 2025 12,938 Years 2026 – 2030 66,317 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 2020 2019 Implemented 2020 2019 2018 Agreement Western Conference of Teamsters Pension Plan 91-6145047 / 001 Green Green No $ 1,429 $ 1,514 $ 1,505 April 2025 (b) Central States, Southeast and Southwest Areas Pension Plan (a) 36-6044243 / 001 Red Red Yes 886 916 978 May 2023 (c) All other multiemployer plans 914 1,196 1,064 Total Company Contributions $ 3,229 $ 3,626 $ 3,547 (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, 2025. (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. The agreements have expiration dates through May 1, 2023. With respect to the other multiemployer pension plans in which the Company participates and which are not individually significant, five plans have certified as critical or red zone, two 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 $3.2 million, $3.6 million and $3.5 million for the years ended January 2, 2021, December 28, 2019 and December 29, 2018, respectively. The Company has received notices in prior years of withdrawal liability from five U.S. multiemployer plans in which it participated. During fiscal 2020, the Company settled one of the withdrawal liabilities for approximately $2.5 million. As of January 2, 2021, the Company has an aggregate accrued liability of approximately $2.7 million representing the present value of scheduled withdrawal liability payments on the remaining multiemployer plans that have given notices of withdrawals. 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 |
Jan. 02, 2021 | |
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 to 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 and option contracts are entered into to mitigate the foreign exchange rate risk for transactions designated in a currency other than the local functional currency. At January 2, 2021, the Company had foreign currency option and forward contracts, soybean meal forward contracts and corn option contracts outstanding that qualified and were designated for hedge accounting as well as corn forward contracts 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 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 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 2020, fiscal 2019 and fiscal 2018, the Company entered into foreign exchange option and forward contracts that are considered cash flow hedges. Under the terms of the foreign exchange contracts, the Company hedged a portion of its forecasted collagen sales in currencies other than the functional currency through the fourth quarter of fiscal 2022. At January 2, 2021 and December 28, 2019, the aggregate fair value of these foreign exchange contracts was approximately $11.6 million and $1.3 million, respectively. The January 2, 2021 amounts are included in other current assets, other noncurrent assets and accrued expenses on the balance sheet, with an offset recorded in accumulated other comprehensive loss. In fiscal 2020 and fiscal 2019, 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 its forecasted sales of BBP into the fourth quarter of fiscal 2021. At January 2, 2021 and December 28, 2019, the aggregate fair value of the corn contracts was $6.8 million and $0.4 million, respectively. The amounts are included in accrued expenses on the balance sheet. In fiscal 2020, the Company entered into soybean meal forward contracts to hedge a portion of its forecasted poultry meal sales into the second quarter of fiscal 2021. As of January 2, 2021, the aggregate fair value of the soybean meal contracts was $0.4 million and was recorded in other current assets on the balance sheet. As of December 28, 2019 there were no outstanding amounts. As of January 2, 2021, 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 (in thousands): Functional Currency Contract Currency Type Amount Type Amount Brazilian real 64,919 Euro 9,645 Brazilian real 1,189,357 U.S. Dollar 257,300 Euro 33,671 U.S. Dollar 40,514 Euro 22,229 Polish zloty 100,000 Euro 4,838 Japanese yen 605,514 Euro 15,360 Chinese renminbi 122,801 Euro 13,349 Australian dollar 21,850 Euro 2,488 British pound 2,269 Euro 32 Canadian dollar 50 Polish zloty 24,824 Euro 5,506 Polish zloty 2,253 U.S. dollar 608 British pound 232 Euro 253 British pound 150 U.S. dollar 200 Japanese yen 258,547 U.S. dollar 2,505 U.S. dollar 531 Japanese yen 55,000 U.S. dollar 114,078 Euro 95,000 Canadian dollar 10,205 U.S. dollar 8,000 The Company estimates the amount that will be reclassified from accumulated other comprehensive loss at January 2, 2021 into earnings over the next 12 months will be approximately $3.0 million. As of January 2, 2021, no amounts have been reclassified into earnings as a result of the discontinuance of cash flow hedges. The table below summarizes the effect of derivatives not designated as hedges on the Company's consolidated statements of operations for the year ended January 2, 2021, December 28, 2019 and December 29, 2018 (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 January 2, 2021 December 28, 2019 December 29, 2018 Foreign exchange Foreign currency loss/(gain) $ (3,840) $ 1,565 $ (2,160) Foreign exchange Net sales (778) 903 2,806 Foreign exchange Cost of sales and operating expenses (664) (452) (1,005) Foreign exchange Selling, general and administrative expense 4,976 1,649 3,040 Corn options and futures Net sales (1,091) 670 683 Corn options and futures Cost of sales and operating expenses (50) (1,636) (543) Natural gas and heating oil swaps and options Cost of sales and operating expenses — (506) 1,031 Heating oil swaps and options Net sales (38) — — Total $ (1,485) $ 2,193 $ 3,852 At January 2, 2021, the Company had forward purchase agreements in place for purchases of approximately $84.7 million of natural gas and diesel fuel. The Company intends to take physical delivery of the commodities under the forward purchase agreements and accordingly, these contracts are not subject to the requirements of fair value accounting because they qualify as normal purchases. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Jan. 02, 2021 | |
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 January 2, 2021 and December 28, 2019 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 January 2, 2021 Using Quoted Prices in Significant Other Significant (In thousands of dollars) Total (Level 1) (Level 2) (Level 3) Assets Derivative assets $ 17,358 $ — $ 17,358 $ — Total Assets 17,358 — 17,358 — Liabilities Derivative liabilities 9,778 — 9,778 — 5.25% Senior Notes 531,300 — 531,300 — 3.625% Senior Notes 646,323 — 646,323 — Term Loan B 298,500 — 298,500 — Revolver 54,175 — 54,175 — Total Liabilities $ 1,540,076 $ — $ 1,540,076 $ — Fair Value Measurements at December 28, 2019 Using Quoted Prices in Significant Other Significant (In thousands of dollars) Total (Level 1) (Level 2) (Level 3) Assets Derivative assets $ 4,140 $ — $ 4,140 $ — Total Assets 4,140 — 4,140 — Liabilities Derivative liabilities 1,593 — 1,593 — 5.25% Senior Notes 531,850 — 531,850 — 3.625% Senior Notes 605,327 — 605,327 — Term Loan B 497,475 — 497,475 — Revolver 38,805 — 38,805 — Total Liabilities $ 1,675,050 $ — $ 1,675,050 $ — Derivative assets and liabilities consist of the Company's corn option and future contracts, foreign currency forward and option contracts and soybean meal forward 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 discussion on the Company's derivatives. 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 B and revolver debt is based on market quotation from third-party banks. |
Asset Impairment, Exit and Rest
Asset Impairment, Exit and Restructuring Costs | 12 Months Ended |
Jan. 02, 2021 | |
Restructuring and Related Activities [Abstract] | |
Asset Impairment, Exit and Restructuring Costs | RESTRUCTURING AND ASSET IMPAIRMENT CHARGESIn December 2020, due to unfavorable economics in the biodiesel industry, the Company made the decision to shut down processing operations at its biodiesel facilities located in the United States and Canada, and there are no current plans to resume biodiesel production at these facilities in the future. As of January 2, 2021, the Company has incurred restructuring and asset impairment charges of approximately $38.2 million, which includes asset impairment charges of approximately $37.8 million and other factory and operational restructuring charges of approximately $0.4 million. Employee termination costs were not incurred for the period ended January 2, 2021 due to all U.S. employees being transferred to other U.S. plants and the employees in Canada were not given their notifications until after January 2, 2021. The employee termination costs to be recorded in the first quarter of 2021 by Canada will not be significant.In the second quarter of fiscal 2018, management decided to permanently shut down the Company's Hurlingham, Argentina collagen plant. As of December 29, 2018, the Company incurred restructuring and asset impairment charges of approximately $15.0 million, which included employee termination charges of approximately $8.4 million, asset impairment charges of approximately $2.9 million and other factory and operational restructuring charges of approximately $3.7 million. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Jan. 02, 2021 | |
CONCENTRATION OF CREDIT RISK [Abstract] | |
CONCENTRATION OF CREDIT RISK | CONCENTRATION OF CREDIT RISKConcentration 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 2020, 2019 and 2018. |
Contingencies
Contingencies | 12 Months Ended |
Jan. 02, 2021 | |
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 environmental matters, including 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 January 2, 2021 and December 28, 2019, the reserves for insurance, environmental, litigation and tax contingencies reflected on the balance sheet in accrued expenses and other non-current liabilities were approximately $66.2 million and $70.5 million, respectively. The Company has insurance recovery receivables of approximately $27.0 million and $26.2 million, as of January 2, 2021 and December 28, 2019, 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 alleged successor-in-interest to The Standard Tallow Corporation) is considered a potentially responsible party (a “PRP”) with respect to alleged contamination in the lower 17-mile area of the Passaic River 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 former plant sites located in Newark and Kearny, New Jersey by The Standard Tallow Corporation, 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 the (“ROD”) 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 EPA has already offered early cash out settlements to 20 of the other PRPs and has stated that other parties who did not discharge any of the eight contaminants of concern identified in the ROD (the “COCs”) may also be eligible for cash out settlements and conducted a settlement analysis using a third-party allocator. The Company participated in this allocation process as it asserts that it is not responsible for any liabilities of its former subsidiary The Standard Tallow Corporation, which was legally dissolved in 2000, and that, in any event, The Standard Tallow Corporation did not discharge any of the COCs. I n November 2019, the Company received a cash out settlement offer from the EPA in the amount of $0.6 million ($0.3 million for each of the former plant sites in question) for liabilities relating to the lower 8.3 miles of the lower Passaic River area. The Company has accepted this settlement offer, which is now subject to the EPA’s administrative approval process, which includes publication and a public comment period. On September 30, 2016, Occidental Chemical Corporation (“OCC”) entered into an agreement with the EPA to perform the remedial design for the cleanup plan for the lower 8.3 miles of the Passaic River. On June 30, 2018, OCC filed a complaint in the United States District Court for the District of New Jersey against over 100 companies, including the Company, seeking cost recovery or contribution for costs under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) relating to various investigations and cleanups OCC has conducted or is conducting in connection with the Passaic River. According to the complaint, OCC has incurred or is incurring costs which include the estimated cost to complete the remedial design for the cleanup plan for the lower 8.3 miles of the Passaic River. OCC is also seeking a declaratory judgment to hold the defendants liable for their proper shares of future response costs, including the remedial action for the lower 8.3 miles of the Passaic River. The Company, along with 40 of the other defendants, had previously received a release |
Business Segments
Business Segments | 12 Months Ended |
Jan. 02, 2021 | |
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 fats and proteins, used cooking oil, trap grease, the Rothsay ingredients business, and the ingredients and specialty products businesses conducted by Darling Ingredients International under the Sonac name (proteins, fats, and blood products) and (ii) the Company's bakery residuals business. Feed Ingredients operations process animal by-products and used cooking oil into fats, proteins and hides. Food Ingredients Food Ingredients consists principally of (i) the collagen business conducted by Darling Ingredients International under the Rousselot name, (ii) the natural casings and meat-by-products business conducted by Darling Ingredients International under the CTH name and (iii) certain specialty products businesses conducted by Darling Ingredients International under the Sonac name. Fuel Ingredients The Company's Fuel Ingredients segment consists of (i) the Company's investment in the DGD Joint Venture and (ii) the bioenergy business conducted by Darling Ingredients International under the Ecoson and Rendac names. Business Segments (in thousands): Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Fiscal Year Ended January 2, 2021 Net Sales $ 2,072,104 $ 1,185,701 $ 314,118 $ — $ 3,571,923 Cost of sales and operating expenses 1,544,524 920,682 223,609 — 2,688,815 Gross Margin 527,580 265,019 90,509 — 883,108 Loss (gain) on sale of assets 19 482 (75) — 426 Selling, general and administrative expense 209,748 97,406 16,014 55,328 378,496 Restructuring and asset impairment charges — — 38,167 — 38,167 Depreciation and amortization 221,187 83,752 34,218 11,021 350,178 Equity in net income of Diamond Green Diesel — — 315,095 — 315,095 Segment operating income/(loss) 96,626 83,379 317,280 (66,349) 430,936 Equity in net income of other unconsolidated subsidiaries 3,193 — — — 3,193 Segment income/(loss) 99,819 83,379 317,280 (66,349) 434,129 Total other expense (80,510) Income before income taxes $ 353,619 Segment assets at January 2, 2021 $ 2,708,922 $ 1,335,769 $ 1,160,132 $ 408,508 $ 5,613,331 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Fiscal Year Ended December 28, 2019 Net Sales $ 1,970,561 $ 1,119,085 $ 274,259 $ — $ 3,363,905 Cost of sales and operating expenses 1,519,596 864,618 204,871 — 2,589,085 Gross Margin 450,965 254,467 69,388 — 774,820 Loss/(gain) on sale of assets (7,720) (13,175) 313 — (20,582) Selling, general and administrative expense 200,487 97,363 2,762 57,911 358,523 Depreciation and amortization 203,456 79,671 31,946 10,437 325,510 Equity in net income of Diamond Green Diesel — — 364,452 — 364,452 Segment operating income/(loss) 54,742 90,608 398,819 (68,348) 475,821 Equity in net income of unconsolidated subsidiaries 428 — — — 428 Segment income/(loss) 55,170 90,608 398,819 (68,348) 476,249 Total other expense (95,815) Income before income taxes $ 380,434 Segment assets at December 28, 2019 $ 2,653,363 $ 1,345,526 $ 1,087,701 $ 258,668 $ 5,345,258 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Fiscal Year Ended December 29, 2018 Net Sales $ 1,952,555 $ 1,139,126 $ 296,045 $ — $ 3,387,726 Cost of sales and operating expenses 1,497,973 918,141 230,260 — 2,646,374 Gross Margin 454,582 220,985 65,785 — 741,352 Loss/(gain) on sale of assets 725 (282) 266 — 709 Selling, general and administrative expense 176,722 91,546 (4,770) 45,766 309,264 Restructuring and asset impairment charges — 14,965 — — 14,965 Depreciation and amortization 194,292 80,988 34,981 10,931 321,192 Equity in net income of Diamond Green Diesel — — 159,779 — 159,779 Segment operating income/(loss) 82,843 33,768 195,087 (56,697) 255,001 Equity in net loss of unconsolidated subsidiaries (550) — — — (550) Segment income/(loss) 82,293 33,768 195,087 (56,697) 254,451 Total other expense (136,476) Income before income taxes $ 117,975 Business Segment Property, Plant and Equipment (in thousands): January 2, December 28, December 29, Capital expenditures: Feed Ingredients $ 176,530 $ 229,415 $ 237,215 Food Ingredients 68,250 85,501 51,659 Fuel Ingredients 30,638 23,964 27,121 Corporate Activities 4,697 20,618 5,901 Total (a) $ 280,115 $ 359,498 $ 321,896 (a) Excludes capital assets acquired by acquisition in fiscal 2020 and fiscal 2018 of approximately $18.4 million and $31.6 million, respectively. Long-lived assets related to the Company's operations in North America, Europe, China, South American and other were as follows (in thousands): FY 2020 FY 2019 Long-Lived Assets Long-Lived Assets North America $ 3,056,047 $ 2,991,537 Europe 1,357,070 1,228,807 China 127,549 124,874 South America 74,720 73,477 Other 10,951 9,275 Total $ 4,626,337 $ 4,427,970 |
Revenue (Notes)
Revenue (Notes) | 12 Months Ended |
Jan. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUEThe Company extends payment terms to its customers based on commercially acceptable practices. The term between invoicing and payment due date is not significant. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring finished products or performing services, which is generally based on executed agreement or purchase order. Most of the Company's products are shipped based on the customer specifications. Customer returns are infrequent and not material to the Company. Adjustments to net sales for sales deductions are generally recognized in the same period as the sale or when known. Customers in certain industries or countries may be required to prepay prior to shipment in order to maintain payment protection. These represent short-term prepayment from customers and are not material to the Company. The Company elected to treat shipping and handling as fulfillment costs, which will result in billed freight recorded in cost of sales and netted against freight costs. Sales, value-add, and other taxes collected concurrently with revenue-producing activities are excluded from revenue and booked on a net basis. The following tables presents the Company revenues disaggregated by geographic area and major product types by reportable segment for the years ended January 2, 2021, December 28, 2019 and December 29, 2018 (in thousands): Year Ended January 2 2021 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area North America $ 1,694,705 $ 244,929 $ 20,869 $ 1,960,503 Europe 352,748 650,671 293,249 1,296,668 China 13,676 188,417 — 202,093 South America — 38,238 — 38,238 Other 10,975 63,446 — 74,421 Net sales $ 2,072,104 $ 1,185,701 $ 314,118 $ 3,571,923 Major product types Fats $ 661,774 $ 142,963 $ — $ 804,737 Used cooking oil 176,691 — — 176,691 Proteins 830,195 — — 830,195 Bakery 183,759 — — 183,759 Other rendering 178,601 — — 178,601 Food ingredients — 947,928 — 947,928 Bioenergy — — 293,249 293,249 Biofuels — — 20,869 20,869 Other 41,084 94,810 — 135,894 Net sales $ 2,072,104 $ 1,185,701 $ 314,118 $ 3,571,923 Year Ended December 28, 2019 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area North America $ 1,635,382 $ 214,623 $ 39,568 $ 1,889,573 Europe 309,097 609,999 234,691 1,153,787 China 16,342 178,283 — 194,625 South America — 51,168 — 51,168 Other 9,740 65,012 — 74,752 Net sales $ 1,970,561 $ 1,119,085 $ 274,259 $ 3,363,905 Major product types Fats $ 584,336 $ 133,898 $ — $ 718,234 Used cooking oil 185,705 — — 185,705 Proteins 791,284 — — 791,284 Bakery 191,551 — — 191,551 Other rendering 167,870 — — 167,870 Food ingredients — 894,761 — 894,761 Bioenergy — — 234,691 234,691 Biofuels — — 39,568 39,568 Other 49,815 90,426 — 140,241 Net sales $ 1,970,561 $ 1,119,085 $ 274,259 $ 3,363,905 Year Ended December 29, 2018 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area Revenues North America $ 1,586,930 $ 181,213 $ 48,858 $ 1,817,001 Europe 329,341 648,933 247,187 1,225,461 China 28,288 182,369 — 210,657 South America — 53,206 — 53,206 Other 7,996 73,405 — 81,401 Net sales $ 1,952,555 $ 1,139,126 $ 296,045 $ 3,387,726 Major product types Fats $ 564,790 $ 163,815 $ — $ 728,605 Used cooking oil 166,634 — — 166,634 Proteins 842,878 — — 842,878 Bakery 180,227 — — 180,227 Other rendering 129,273 — — 129,273 Food ingredients — 886,042 — 886,042 Bioenergy — — 247,187 247,187 Biofuels — — 48,858 48,858 Other 68,753 89,269 — 158,022 Net sales $ 1,952,555 $ 1,139,126 $ 296,045 $ 3,387,726 Revenue from Contracts with Customers The Company has two primary revenue streams. Finished product revenues are recognized when control of the promised finished product is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the finished product. Service revenues are recognized in net sales when the service occurs. Fats and Proteins . Fats and Proteins include the Company's global activities related to the collection and processing of beef, poultry and pork animal by-products into finished products of non-food grade oils, food grade fats and protein meal. Fats and proteins net sales are recognized when the Company ships the finished product to the customer and control has been transferred. Used Cooking Oil . Used cooking oil includes collection and processing of used cooking oil into finished products of non-food grade fats. Used cooking oil net sales are recognized when the Company ships the finished product to the customer and control has been transferred. Bakery . Bakery includes collection and processing of bakery residuals into finished product including Cookie Meal®, an animal feed ingredient primarily used in poultry and swine rations. Bakery net sales are recognized when the Company ships the finished product to the customer and control has been transferred. Other Rendering . Other rendering include hides, pet food products, and service charges. Hides and pet food net sales are recognized when the Company ships the finished product to the customer and control has been transferred. Service revenues are recognized in net sales when the service has occurred. Food Ingredients. Food ingredients includes collection and processing of pigskin, hide, bone and fish into finished product. It also includes harvesting, sorting and selling of hog and sheep casings as well as harvesting, purchasing and processing of hog, sheep and beef meat for pet food industry. Collagen and CTH meat and casings net sales are recognized when the Company ships the finished product to the customer and control has been transferred. Bioenergy . Bioenergy includes Ecoson, which converts organic sludge and food waste into biogas and Rendac, which collects fallen stock and animal waste for a fee and processes these materials into fats and meals that can only be used as low grade energy or fuel for boilers and cement kilns. Net sales are recognized when the finished product is shipped to the customer and control has been transferred. Service revenues are recognized in net sales when the service has occurred. Biofuels . Biofuels includes the North American processing of rendered animal fats, recycled cooking oils and third party additives to produce diesel fuel. Biofuel net sales are recognized when the finished product is shipped to the customer and control has been transferred. Other . Other includes grease trap collection and environmental services to food processors in the Feed Ingredients segment and Sonac Bone and Sonac Heparin in the Food Ingredients segment. Net sales are recognized when the Company ships the finished product to the customer and control has been transferred. Service revenues are recognized in net sales when the service has occurred. Long-Term Performance Obligations . The Company from time to time enters into long-term contracts to supply certain volumes of finished products to certain customers. Revenue recognized in 2020 and 2019 under these long-term supply contracts was approximately $54.0 million and $41.0 million, respectively, with the remaining performance obligations to be recognized in future periods (generally 2 years) of approximately $168.6 million. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Jan. 02, 2021 | |
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 January 2, 2021 First Second Third Fourth Net sales $ 852,842 $ 848,673 $ 850,569 $ 1,019,839 Operating income 122,829 106,288 127,455 74,364 Income from operations before income taxes 104,391 86,441 106,417 56,370 Net income 86,091 66,495 101,605 46,139 Net income attributable to noncontrolling interests (581) (1,056) (480) (1,394) Net income attributable to Darling 85,510 65,439 101,125 44,745 Basic earnings per share 0.52 0.40 0.62 0.28 Diluted earnings per share 0.51 0.39 0.61 0.27 Year Ended December 28, 2019 First Second Third Fourth Net sales $ 835,104 $ 827,324 $ 842,049 $ 859,428 Operating income 48,551 74,124 59,859 293,287 Income from operations before income taxes 24,914 38,820 37,687 279,013 Net income 19,640 31,044 26,837 243,446 Net income attributable to noncontrolling interests (1,628) (4,786) (1,116) (837) Net income attributable to Darling 18,012 26,258 25,721 242,609 Basic earnings per share 0.11 0.16 0.16 1.48 Diluted earnings per share 0.11 0.16 0.15 1.44 (a) In the fourth quarter of fiscal 2020, the Company's results include restructuring and asset impairment charges of approximately $38.2 million. (b) In the fourth quarter of fiscal 2019, the Company's results include 2019 and 2018 blenders tax credits of approximately $234.4 million. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jan. 02, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | RELATED PARTY TRANSACTIONS Raw Material Agreement The Company entered into a Raw Material Agreement with the DGD Joint Venture in May 2011 pursuant to which the Company will offer to supply certain animal fats and used cooking oil at market prices, 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 January 2, 2021, December 28, 2019 and December 29, 2018, the Company has recorded sales to the DGD Joint Venture of approximately $264.1 million, $208.7 million and $131.8 million, respectively. At January 2, 2021 and December 28, 2019, the Company has approximately $14.2 million and $17.8 million in outstanding receivables due from the DGD Joint Venture, respectively. In addition, the Company has eliminated additional sales of approximately $7.4 million, $5.1 million and $4.6 million for the years ended January 2, 2021, December 28, 2019 and December 29, 2018, 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 January 2, 2021, December 28, 2019 and December 29, 2018 of approximately $1.4 million, $0.8 million and $0.9 million, respectively. Revolving Loan Agreement On May 1, 2019, 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. The DGD Lenders have committed to make loans available to the DGD Joint Venture in the total amount of $50.0 million with each lender committed to $25.0 million of the total commitment. Any borrowings by the DGD Joint Venture 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 April 29, 2021. The DGD Loan Agreement replaces a similar agreement with lower commitment levels that expired on December 31, 2018. As of January 2, 2021, no amounts are owed to Darling Green under the DGD Loan Agreement. Guarantee Agreement In February 2020, in connection with the DGD Joint Venture’s expansion project at its Norco, LA facility, it has entered into two agreements (the “IMTT Terminaling Agreements”) with International-Matex Tank Terminals (“IMTT”), pursuant to which the DGD Joint Venture will move raw material and finished product to and from the IMTT terminal facility by pipeline, thereby providing better logistical capabilities. As a condition to entering into the IMTT Terminaling Agreements, IMTT required that the Company and Valero guarantee their proportionate share, up to $50 million each, of the DGD Joint Venture’s obligations under the IMTT Terminaling Agreements (the “ Guarantee ”), subject to the conditions provided for in the IMTT Terminaling Agreements. The Company has |
New Accounting Pronoucements
New Accounting Pronoucements | 12 Months Ended |
Jan. 02, 2021 | |
New Accounting Pronoucements [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform Topic 848, Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The update provides optional guidance for a limited period of time to ease the potential burden in accounting for (or reorganizing the effects of) contract modifications on financial reporting, caused by reference rate reform. This ASU is effective for all entities as of March 12, 2020 through December 31, 2022. The adoption of this ASU in the first quarter of fiscal 2020 did not have a material impact on the Company's consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes. This ASU amends Topic 740 Income Taxes, which eliminates certain exceptions in accounting for income taxes, improves consistency in application and clarifies existing guidance. The standard is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the impact of this standard. In August 2018, the FASB issued ASU No. 2018-14, Changes to the Disclosure Requirements for Defined Benefit Plans. This ASU amends Subtopic 715-20, Compensation - Retirement Benefits - Defined Benefit Plans - General, which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The standard is effective for fiscal years ending after December 15, 2020, with early adoption permitted. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Changes to the Disclosure Requirements for Fair Value Measurements. This ASU amends Topic 820, Fair Value Measurement, which changes the disclosure requirements for fair value measurements by removing, adding and modifying certain disclosures. The standard is effective for fiscal years beginning after December 15, 2019 and for interim periods therein, with early adoption permitted. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements. 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 adoption of this ASU did not have a material impact on the Company's consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Under ASU 2016-13, existing guidance on reporting credit losses for trade and other receivables and available for sale debt securities will be replaced with a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. This ASU is effective for fiscal years beginning after December 15, 2019 and interim periods therein. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements. |
General (Summary of Significant
General (Summary of Significant Accounting Policies) (Policies) | 12 Months Ended |
Jan. 02, 2021 | |
General [Abstract] | |
Basis of Presentation | Basis of PresentationThe 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 of the consolidated subsidiaries is shown as an allocation of the Company's net income and is presented separately as “Net income 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 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 53 weeks ended January 2, 2021, the 52 weeks ended December 28, 2019, and the 52 weeks ended December 29, 2018. |
Cash and Cash Equivalents | Cash and Cash EquivalentsThe 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 AccountsThe 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 adjusted for differences in asset-specific risk characteristic, current economic conditions and forecast of future economic conditions. 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 | InventoriesInventories are stated at the lower of cost or net realizable value. 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 acquisition of its Darling Ingredients International business. 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, product development, 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, product development, consulting, land use rights and leasehold agreements are generally 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 ofThe 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 | GoodwillGoodwill 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 uses the quantitative approach to impairment testing by comparing the fair value of the Company's reporting units to their respective carrying amounts and records an impairment charge for the amount by which the carrying amounts exceeds the fair value; however, the loss recognized if any will not exceed the total amount of goodwill allocated to that reporting unit. The Company performed its annual goodwill and indefinite-lived intangible assets impairment assessments at October 24, 2020 and prior to finalizing the impairment testing a triggering event occurred, which due to unfavorable economics in the biodiesel industry, the Company made the decision to shut down processing operations at its biodiesel facilities located in the United States and Canada, and there are no current plans to resume biodiesel production at these facilities in the future. As a result, the Company recorded goodwill impairment charges in fiscal 2020. |
Lessee, Leases [Policy Text Block] | The Company accounts for leases in accordance with Accounting Standard Codification (“ASC”) Topic 842, leases. The Company determines if an arrangement is a lease at inception for which the Company recognizes the right-of-use (“ROU”) asset and a lease liability at the lease commencement date. For operating leases, the lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. In determining the lease liability, the Company applies a discount rate to the minimum lease payments within each lease. ASC 842 requires the Company to use the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. To estimate the Company's incremental borrowing rate over various terms, a comparable market yield curve consistent with the Company's credit quality is determined. The lease term for all of the Company's leases include the noncancellable period of the lease plus any additional periods covered by either a Company option to extend the lease that the Company is reasonably certain to exercise or when a triggering event occurs. The Company has elected to not recognize a ROU asset and lease liability with an initial term of 12 months or less at lease commencement. Current operating leases are included on the Company's balance sheet as a ROU asset, current operating lease liabilities and long-term operating lease liabilities. For finance leases, the lease liability is initially measured in the same manner and date as for the operating leases, and is subsequently measured at amortized cost using the effective interest method. Finance leases are included in property, plant and equipment, current portion of long-term debt and long-term debt, net of current portion, but are not significant to the Company. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any direct costs incurred less any lease incentives received. For operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of the lease incentives received. Some leases payments contain rent escalation clauses (including index-based escalations), initially measured using the index at the lease commencement date. The Company recognizes minimum rental expense on a straight-line basis based on the fixed components of the lease arrangement. The Company uses the long-lived assets impairment guidance in ASC subtopic 360-10, Property, Plant and Equipment - Overall, to determine whether the ROU asset is impaired, and if so, the amount of the impairment loss to recognize. The Company monitors for events or changes in circumstances that require a reassessment of one of its leases. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding ROU asset unless doing so would reduce the carrying amount of the ROU asset to an amount less than zero. In that case, the amount of the adjustment that would result in a negative ROU asset balance is recorded in the Consolidated Statement of Operations. |
Environmental Expenditures | Environmental ExpendituresEnvironmental 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 ShareBasic 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 CompensationThe 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. The Company's policy is to account for forfeitures in the period they occur, rather than estimating a forfeiture rate. The Company does not reclassify excess tax benefits from operating activities to financing activities in the Consolidated Statements of Cash Flows. Additionally, the Company excludes the excess tax benefits from the assumed proceeds available to repurchase shares of common stock in the computation of the Company's diluted earnings per share. |
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 InstrumentsThe Company makes limited use of derivative instruments to manage cash flow risks related to natural gas 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. Soybean meal options are entered into with the intent of managing the impact of changing prices for poultry meal sales. Corn options and future contracts are entered into with the intent of managing U.S. forecasted sales of BBP by reducing the impact of changing prices. Foreign currency forward and option 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 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 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 RecognitionThe Company recognizes revenue on sales when control of the promised finished product is transferred to the Company's customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for the finished product. Service revenues are recognized when the service occurs. 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 recognized when control of the promised finished product is transferred to the Company's customer. See Note 22 to the consolidated financial statements. |
Foreign Currency Transactions and Remeasurement | Foreign Currency Translation and RemeasurementForeign currency translation is included as a component of accumulated other comprehensive loss 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/(losses) in determining net income. |
Subsequent Events | Subsequent EventsThe 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 |
Jan. 02, 2021 | |
General [Abstract] | |
Net Income per Common Share [Table Text Block] | Net Income per Common Share (in thousands, except per share data) January 2, December 28, December 29, 2021 2019 2018 Income Shares Per-Share Income Shares Per-Share Income Shares Per-Share Basic: Net income attributable to Darling $ 296,819 162,572 $ 1.83 $ 312,600 164,633 $ 1.90 $ 101,496 164,789 $ 0.62 Diluted: Effect of dilutive securities Add: Option shares in the money and dilutive effect of nonvested stock — 6,526 — — 5,983 — — 5,234 — Less: Pro-forma treasury shares — (1,890) — — (2,238) — — (2,113) — Diluted: Net income attributable to Darling $ 296,819 167,208 $ 1.78 $ 312,600 168,378 $ 1.86 $ 101,496 167,910 $ 0.60 |
Investment in Unconsolidated _2
Investment in Unconsolidated Subsidiary (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Investment in Affiliate [Abstract] | |
Equity Method Investments | Selected financial information for the Company's DGD Joint Venture is as follows: (in thousands) December 31, 2020 December 31, 2019 Assets: Total current assets $ 383,557 $ 668,026 Property, plant and equipment, net 1,238,726 713,489 Other assets 36,082 30,710 Total assets $ 1,658,365 $ 1,412,225 Liabilities and members' equity: Total current portion of long term debt $ 517 $ 341 Total other current liabilities 99,787 75,802 Total long term debt 8,705 8,742 Total other long term liabilities 3,758 4,422 Total members' equity 1,545,598 1,322,918 Total liabilities and member's equity $ 1,658,365 $ 1,412,225 Year Ended December 31, (in thousands) 2020 2019 2018 Revenues: Operating revenues $ 1,267,477 $ 1,217,504 $ 677,663 Expenses: Total costs and expenses less depreciation, amortization and accretion expense 592,781 438,672 329,636 Depreciation, amortization and accretion expense 44,882 50,767 29,434 Operating income 629,814 728,065 318,593 Other income 1,636 2,121 1,919 Interest and debt expense, net (1,260) (1,282) (955) Net income $ 630,190 $ 728,904 $ 319,557 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | A summary of inventories follows (in thousands): January 2, 2021 December 28, 2019 Finished product $ 233,044 $ 199,799 Work in process 87,223 81,841 Raw material 36,746 41,964 Supplies and other 48,909 39,353 $ 405,922 $ 362,957 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | A summary of property, plant and equipment follows (in thousands): January 2, 2021 December 28, 2019 Land $ 170,237 $ 157,721 Buildings and improvements 684,459 619,212 Machinery and equipment 2,219,797 2,002,237 Vehicles 302,641 269,529 Aircraft 9,708 9,708 Construction in process 179,095 182,392 3,565,937 3,240,799 Accumulated depreciation (1,702,123) (1,438,388) $ 1,863,814 $ 1,802,411 |
Intangbile assets (Tables)
Intangbile assets (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
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): January 2, 2021 December 28, 2019 Indefinite Lived Intangible Assets Trade names $ 55,349 $ 52,733 55,349 52,733 Finite Lived Intangible Assets: Routes 397,342 382,263 Permits 494,191 483,593 Non-compete agreements 3,300 3,840 Trade names 65,675 65,670 Royalty, product development, consulting, land use rights and leasehold 25,909 20,737 986,417 956,103 Accumulated Amortization: Routes (203,392) (169,050) Permits (315,246) (272,213) Non-compete agreements (2,981) (3,111) Trade names (39,491) (32,890) Royalty, product development, consulting, land use rights and leasehold (6,976) (5,178) (568,086) (482,442) Total Intangible assets, less accumulated amortization $ 473,680 $ 526,394 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
GOODWILL [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill (in thousands): Feed Ingredients Food Ingredients Fuel Ingredients Total Balance at December 29, 2018 Goodwill $ 791,966 $ 335,701 $ 117,867 $ 1,245,534 Accumulated impairment losses (15,914) (461) — (16,375) 776,052 335,240 117,867 1,229,159 Goodwill acquired during year 396 91 — 487 Goodwill disposed of during year (636) — — (636) Foreign currency translation 1,731 (6,138) (1,312) (5,719) Balance at December 28, 2019 Goodwill 793,457 329,654 116,555 1,239,666 Accumulated impairment losses (15,914) (461) — (16,375) 777,543 329,193 116,555 1,223,291 Goodwill acquired during year 13,925 — 714 14,639 Goodwill impairment during year — — (31,580) (31,580) Foreign currency translation 22,939 21,642 9,309 53,890 Balance at January 2, 2021 Goodwill 830,321 351,296 126,578 1,308,195 Accumulated impairment losses (15,914) (461) (31,580) (47,955) $ 814,407 $ 350,835 $ 94,998 $ 1,260,240 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
ACCRUED EXPENSES [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accrued expenses consist of the following (in thousands): January 2, 2021 December 28, 2019 Compensation and benefits $ 121,497 $ 107,324 Utilities and sewage 18,902 18,085 Accrued ad valorem, and franchise taxes 39,167 30,231 Reserve for self insurance, litigation, environmental and tax matters (Note 20) 11,460 19,373 Medical claims liability 8,855 8,285 Accrued operating expenses 62,601 67,194 Accrued interest payable 9,197 9,879 Customer deposits 14,443 18,318 Other accrued expense 49,349 32,702 $ 335,471 $ 311,391 |
(Tables)
(Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Leases [Abstract] | |
Components of Lease Expense | The components of operating lease expense included in cost of sales and operating expenses and selling, general and administrative expenses were as follows (in thousands): Year Ended Year Ended January 2, 2021 December 28, 2019 Operating lease expense $ 45,362 $ 48,858 Short-term lease costs 25,868 18,163 Total lease cost $ 71,230 $ 67,021 Other information (in thousands, except lease terms and discount rates): Year Ended January 2, 2021 December 28, 2019 Cash paid for amounts included in the measurement lease liabilities Operating cash flows from operating leases $ 52,055 $ 47,691 Operating right-of-use assets, net $ 146,563 $ 124,726 Operating lease liabilities, current $ 39,459 $ 37,805 Operating lease liabilities, non-current 109,707 91,424 Total operating lease liabilities $ 149,166 $ 129,229 Weighted average remaining lease term - operating leases 6.30 years 6.46 years Weighted average discount rate - operating leases 4.22 % 4.55 % |
Maturities of Operating Lease Liabilities | Future annual minimum lease payments and finance lease commitments as of January 2, 2021 were as follows (in thousands): Period Ending Fiscal Operating Leases Finance Leases 2021 $ 44,723 $ 952 2022 33,145 858 2023 28,182 637 2024 21,551 486 2025 12,912 345 Thereafter 27,168 598 167,681 3,876 Less amounts representing interest (18,515) (140) Lease obligations included in current and long-term liabilities 149,166 3,736 |
Maturities of Financing Lease Liabilities | Future annual minimum lease payments and finance lease commitments as of January 2, 2021 were as follows (in thousands): Period Ending Fiscal Operating Leases Finance Leases 2021 $ 44,723 $ 952 2022 33,145 858 2023 28,182 637 2024 21,551 486 2025 12,912 345 Thereafter 27,168 598 167,681 3,876 Less amounts representing interest (18,515) (140) Lease obligations included in current and long-term liabilities 149,166 3,736 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consists of the following (in thousands): January 2, 2021 December 28, 2019 Amended Credit Agreement: Revolving Credit Facility $ 55,000 $ 39,000 Term Loan B 300,000 495,000 Less unamortized deferred loan costs (3,798) (7,696) Carrying value Term Loan B 296,202 487,304 5.25% Senior Notes due 2027 with effective interest of 5.47% 500,000 500,000 Less unamortized deferred loan costs (5,747) (6,494) Carrying value 5.25% Senior Notes due 2027 494,253 493,506 3.625%Senior Notes due 2026 - Denominated in euro with effective interest of 3.83% 632,163 574,096 Less unamortized deferred loan costs - Denominated in euro (6,586) (6,982) Carrying value 3.625% Senior Notes due 2026 625,577 567,114 Other Notes and Obligations 37,037 62,501 1,508,069 1,649,425 Less Current Maturities 27,538 90,996 $ 1,480,531 $ 1,558,429 |
Schedule of Maturities of Long-term Debt | Maturities of long-term debt at January 2, 2021 follow (in thousands): Contractual 2021 $ 27,538 2022 4,697 2023 3,075 2024 300,514 2025 55,378 thereafter 1,132,998 $ 1,524,200 |
Other Noncurrent Liabilities (T
Other Noncurrent Liabilities (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
OTHER NONCURRENT LIABILITIES [Abstract] | |
Schedule of Other Liabilities, Noncurrent | Other noncurrent liabilities consist of the following (in thousands): January 2, 2021 December 28, 2019 Accrued pension liability (Note 15) $ 55,757 $ 55,491 Reserve for self insurance, litigation, environmental and tax 59,111 54,568 Other 2,503 5,726 $ 117,371 $ 115,785 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
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): January 2, 2021 December 28, 2019 December 29, 2018 United States $ 265,950 $ 260,867 $ 82,146 Foreign 87,669 119,567 35,829 Income from operations before income taxes $ 353,619 $ 380,434 $ 117,975 |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense attributable to income from operations before income taxes consists of the following (in thousands): January 2, 2021 December 28, 2019 December 29, 2018 Current: Federal $ (72) $ (162) $ (330) State 1,595 341 (3) Foreign 36,453 37,117 27,935 Total current 37,976 37,296 27,602 Deferred: Federal 20,827 13,465 4,803 State 840 11,804 (2,216) Foreign (6,354) (3,098) (18,158) Total deferred 15,313 22,171 (15,571) $ 53,289 $ 59,467 $ 12,031 A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): January 2, 2021 December 28, 2019 Balance at beginning of Year $ 7,810 $ 5,777 Change in tax positions related to current year 9 3,887 Change in tax positions related to prior years (2,780) (233) Change in tax positions due to settlement with tax authorities — (1,354) Expiration of the Statute of Limitations — (267) Balance at end of year $ 5,039 $ 7,810 |
Schedule of Effective Income Tax Rate Reconciliation | Income tax expense for the years ended January 2, 2021, December 28, 2019 and December 29, 2018, 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): January 2, 2021 December 28, 2019 December 29, 2018 Computed "expected" tax expense $ 74,260 $ 79,891 $ 24,775 Change in valuation allowance (522) 38 9,700 Non-deductible compensation expenses 4,723 3,950 2,305 Deferred tax on unremitted foreign earnings (548) 1,505 (31) Sub-Part F income 45 1,122 3,361 Foreign rate differential 7,077 7,246 658 Change in uncertain tax positions (4,650) 1,736 3,419 State income taxes, net of federal benefit 2,702 5,686 (1,813) Biofuel tax incentives (31,725) (46,007) (18,489) Change in tax law 3,699 1,352 (10,017) Other, net (1,772) 2,948 (1,837) $ 53,289 $ 59,467 $ 12,031 |
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 January 2, 2021 and December 28, 2019 are presented below (in thousands): January 2, 2021 December 28, 2019 Deferred tax assets: Loss contingency reserves $ 9,805 $ 11,193 Employee benefits 13,027 12,236 Pension liability 13,053 13,049 Intangible assets amortization, including taxable goodwill 1,474 1,485 Interest expense carryforwards 402 12,361 Tax loss carryforwards 68,730 80,195 Tax credit carryforwards 6,610 5,653 Operating lease liabilities 38,930 33,549 Inventory 5,935 5,185 Accrued liabilities and other 12,925 13,677 Total gross deferred tax assets 170,891 188,583 Less valuation allowance (24,228) (24,759) Net deferred tax assets 146,663 163,824 Deferred tax liabilities: Intangible assets amortization, including taxable goodwill (169,277) (157,332) Property, plant and equipment depreciation (133,712) (144,911) Investment in DGD Joint Venture (52,238) (54,287) Operating lease assets (38,049) (32,233) Tax on unremitted foreign earnings (10,234) (6,139) Other (2,685) (2,459) Total gross deferred tax liabilities (406,195) (397,361) Net deferred tax liability $ (259,532) $ (233,537) Amounts reported on Consolidated Balance Sheets: Non-current deferred tax asset $ 16,676 $ 14,394 Non-current deferred tax liability (276,208) (247,931) Net deferred tax liability $ (259,532) $ (233,537) |
Stockholders' Equity and Stoc_2
Stockholders' Equity and Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Stockholders' Equity and Stock-Based Compensation [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of all stock option activity as of January 2, 2021 and changes during the year ended is as follows: Number of Weighted-avg. Weighted-avg. Options outstanding at December 30, 2017 3,290,757 $ 11.86 7.3 years Granted 637,115 18.82 Exercised (153,717) 11.49 Forfeited (19,953) 9.99 Expired — — Options outstanding at December 29, 2018 3,754,202 13.07 6.9 years Granted 610,953 21.00 Exercised (380,206) 9.83 Forfeited (6,464) 18.11 Expired — — Options outstanding at December 28, 2019 3,978,485 14.59 6.5 years Granted 550,941 28.89 Exercised (837,911) 12.01 Forfeited — — Expired — — Options outstanding at January 2, 2021 3,691,515 $ 17.31 6.2 years Options exercisable at January 2, 2021 2,527,003 $ 14.07 5.3 years |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each stock option grant under the LTIPs was estimated on the date of grant using the Black Scholes option-pricing model with the following weighted average assumptions and results for fiscal 2020, 2019 and 2018. Weighted Average 2020 2019 2018 Expected dividend yield 0.0% 0.0% 0.0% Risk-free interest rate 1.65% 2.61% 2.54% Expected term 5.94 years 6.00 years 5.82 years Expected volatility 27.4% 29.6% 29.3% Fair value of options granted $8.64 $7.16 $6.37 |
Schedule of Nonvested Share Activity | A summary of the Company’s non-vested stock, restricted stock unit and performance share unit awards as of January 2, 2021, and changes during the year ended is as follows: Non-Vested, RSU and PSU Weighted Average Stock awards outstanding December 30, 2017 360,344 $ 13.18 Shares granted — — Shares vested (228,991) 13.11 Shares forfeited (2,779) 12.11 Stock awards outstanding December 29, 2018 128,574 13.32 Shares granted — — Shares vested (126,511) 12.13 Shares forfeited (1,313) 14.92 Stock awards outstanding December 28, 2019 750 15.50 Shares granted 11,000 35.66 Shares vested (375) 15.50 Shares forfeited — — Stock awards outstanding January 2, 2021 11,375 $ 35.00 |
Schedule of Share-based Payment Award, Equity Instruments Other than Options, Valuation Assumptions | The fair value of each 2020 LTIP, 2019 LTIP and 2018 LTIP PSU award under the Company's 2020 LTIP, 2019 LTIP and 2018 LTIP was estimated on the date of grant using a Monte Carlo model with the following weighted average assumptions for fiscal 2020, fiscal 2019 and fiscal 2018. Weighted Average 2020 2019 2018 Expected dividend yield 0.0% 0.0% 0.0% Risk-free interest rate 1.55% 2.58% 2.25% Expected term 2.99 years 2.93 years 2.93 years Expected volatility 25.8% 30.7% 34.4% |
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 January 2, 2021, and changes during the year ended is as follows: Restricted stock and Restricted Stock Unit Weighted Average Stock awards outstanding December 30, 2017 154,809 $ 14.91 Restricted shares granted 61,806 16.92 Restricted shares where the restriction lapsed (1,438) 13.90 Restricted shares forfeited — — Stock awards outstanding December 29, 2018 215,177 15.49 Restricted shares granted 52,990 20.76 Restricted shares where the restriction lapsed (6,803) 2.94 Restricted shares forfeited — — Stock awards outstanding December 28, 2019 261,364 16.89 Restricted shares granted 48,267 20.51 Restricted shares where the restriction lapsed (73,354) 16.33 Restricted shares forfeited — — Stock awards outstanding January 2, 2021 236,277 $ 17.79 |
Share-based Payment Arrangement, Outstanding Award, Activity, Excluding Option [Table Text Block] | A summary of the Company’s 2020, 2019 and 2018 LTIP PSU awards as of January 2, 2021, and changes during the year ended is as follows: LTIP PSU Weighted Average LTIP PSU awards outstanding December 30, 2017 1,141,016 $ 8.91 Granted 295,514 20.60 Additional PSU awards vested from performance 88,151 6.95 Stock issued for PSUs (26,212) 6.95 Forfeited (16,493) 9.39 LTIP PSU awards outstanding December 29, 2018 1,481,976 $ 11.15 Granted 305,195 21.50 Additional PSU awards vested from performance 235,126 7.23 Stock issued for PSUs (125,067) 7.84 Forfeited (3,757) 19.09 LTIP PSU awards outstanding December 28, 2019 1,893,473 $ 12.54 Granted 224,481 31.80 Additional PSU awards vested from performance 434,666 11.14 Stock issued for PSUs (349,210) 8.91 Forfeited (332) 26.88 LTIP PSU awards outstanding January 2, 2021 2,203,078 $ 14.80 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Comprehensive Income [Abstract] | |
Schedule of Comprehensive Income (Loss) | The components of other comprehensive income/(loss) and the related tax impacts for the years ended January 2, 2021, December 28, 2019 and December 29, 2018 are as follows (in thousands): Before-Tax Tax (Expense) Net-of-Tax Amount or Benefit Amount Year Ended December 29, 2018 Defined Benefit Pension Plans Actuarial (loss)/gain recognized $ (7,901) $ 2,015 $ (5,886) Amortization of actuarial loss 3,543 (910) 2,633 Actuarial prior service cost recognized (11) 3 (8) Amortization of prior service costs 35 (9) 26 Amortization of curtailment 498 — 498 Amortization of settlement (3) 1 (2) Other 9 — 9 Total defined benefit pension plans (3,830) 1,100 (2,730) Natural gas swap derivatives Gain/(loss) reclassified to net income 14 (3) 11 Gain/(loss) recognized in other comprehensive income (loss) 16 (4) 12 Total natural gas derivatives 30 (7) 23 Soybean meal option derivatives Gain/(loss) reclassified to net income (8) 2 (6) Gain/(loss) recognized in other comprehensive income (loss) 8 (2) 6 Total soybean meal derivatives 0 0 0 Corn option derivatives Gain/(loss) reclassified to net income (1,912) 493 (1,419) Gain/(loss) recognized in other comprehensive income (loss) (361) 93 (268) Total corn options (2,273) 586 (1,687) Foreign exchange derivatives Gain/(loss) recognized in other comprehensive income 1,637 (556) 1,081 Total foreign exchange derivatives 1,637 (556) 1,081 Foreign currency translation (89,198) 1,724 (87,474) Other comprehensive income/(loss) $ (93,634) $ 2,847 $ (90,787) Year Ended December 28, 2019 Defined Benefit Pension Plans Actuarial (loss)/gain recognized $ (2,202) $ 211 $ (1,991) Amortization of actuarial loss 4,571 (1,143) 3,428 Actuarial prior service cost recognized 9 (2) 7 Amortization of prior service costs 34 (9) 25 Amortization of settlement 66 (16) 50 Other 16 — 16 Total defined benefit pension plans 2,494 (959) 1,535 Heating oil swap derivatives Gain/(loss) recognized in other comprehensive income (loss) (4,188) 1,047 (3,141) Total heating oil derivatives (4,188) 1,047 (3,141) Corn option derivatives Gain/(loss) reclassified to net income 422 (106) 316 Gain/(loss) recognized in other comprehensive income (loss) (51) 13 (38) Total corn options 371 (93) 278 Foreign exchange derivatives Gain/(loss) reclassified to net income 1,345 (442) 903 Gain/(loss) recognized in other comprehensive income (loss) (6,887) 2,261 (4,626) Total foreign exchange derivatives (5,542) 1,819 (3,723) Foreign currency translation (12,771) 837 (11,934) Other comprehensive income/(loss) $ (19,636) $ 2,651 $ (16,985) Year Ended January 2, 2021 Defined Benefit Pension Plans Actuarial (loss)/gain recognized $ (9,470) $ 2,547 $ (6,923) Amortization of actuarial loss 3,405 (862) 2,543 Amortization of prior service costs 33 (8) 25 Amortization of curtailment 69 (15) 54 Amortization of settlement (30) 7 (23) Other 11 — 11 Total defined benefit pension plans (5,982) 1,669 (4,313) Heating oil swap derivatives Gain/(loss) recognized in other comprehensive income (loss) 1,457 (353) 1,104 Total heating oil derivatives 1,457 (353) 1,104 Soybean meal option derivatives Gain/(loss) reclassified to net income 49 (12) 37 Gain/(loss) recognized in other comprehensive income (loss) 349 (89) 260 Total soybean meal derivatives 398 (101) 297 Corn option derivatives Gain/(loss) reclassified to net income 123 (31) 92 Gain/(loss) recognized in other comprehensive income (loss) (7,803) 1,980 (5,823) Total corn options (7,680) 1,949 (5,731) Foreign exchange derivatives Gain/(loss) reclassified to net income (13,809) 5,114 (8,695) Gain/(loss) recognized in other comprehensive income (loss) 24,325 (9,009) 15,316 Total foreign exchange derivatives 10,516 (3,895) 6,621 Foreign currency translation 73,845 (3,525) 70,320 Other comprehensive income/(loss) $ 72,554 $ (4,256) $ 68,298 |
Reclassification out of Accumulated Other Comprehensive Income | Fiscal Year Ended January 2, 2021 December 28, 2019 December 29, 2018 Statement of Operations Classification Derivative instruments Soybean meal option derivatives $ (49) $ — $ 8 Net sales Foreign Exchange derivatives 13,809 (1,345) — Net sales Natural gas swap derivatives — — (14) Cost of sales and operating expenses Corn option derivatives (123) (422) 1,912 Cost of sales and operating expenses 13,637 (1,767) 1,906 Total before tax (5,071) 548 (492) Income taxes 8,566 (1,219) 1,414 Net of tax Defined benefit pension plans Amortization of prior service cost $ (33) $ (34) $ (35) (a) Amortization of actuarial loss (3,405) (4,571) (3,543) (a) Amortization of curtailment (69) — (498) (a) Amortization of settlement 30 (66) 3 (a) (3,477) (4,671) (4,073) Total before tax 878 1,168 918 Income taxes (2,599) (3,503) (3,155) Net of tax Total reclassifications $ 5,967 $ (4,722) $ (1,741) 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 loss as of January 2, 2021 as follows (in thousands): Fiscal Year Ended January 2, 2021 Foreign Currency Derivative Defined Benefit Translation Instruments Pension Plans Total Accumulated Other Comprehensive loss December 28, 2019, attributable to Darling, net of tax $ (282,338) $ (5,505) $ (34,004) $ (321,847) Other comprehensive loss before reclassifications 70,320 10,857 (6,912) 74,265 Amounts reclassified from accumulated other comprehensive income — (8,566) 2,599 (5,967) Net current-period other comprehensive income/(loss) 70,320 2,291 (4,313) 68,298 Noncontrolling interest (1,116) — — (1,116) Accumulated Other Comprehensive loss January 2, 2021, attributable to Darling, net of tax $ (210,902) $ (3,214) $ (38,317) $ (252,433) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
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, 2020 and December 31, 2019) (in thousands): January 2, December 28, Change in projected benefit obligation: Projected benefit obligation at beginning of period $ 212,265 $ 190,666 Service cost 3,060 2,696 Interest cost 5,721 6,828 Employee contributions 360 368 Plan combinations 5,362 — Actuarial loss 16,427 20,927 Benefits paid (8,274) (8,120) Effect of curtailment (747) (43) Effect of settlement (2,208) (903) Other 4,011 (154) Projected benefit obligation at end of period 235,977 212,265 Change in plan assets: Fair value of plan assets at beginning of period 155,702 133,861 Actual return on plan assets 16,029 26,014 Employer contributions 11,460 4,343 Employee contributions 360 368 Plan combinations 4,537 — Benefits paid (8,274) (8,120) Effect of settlement (2,208) (903) Other 1,372 139 Fair value of plan assets at end of period 178,978 155,702 Funded status (56,999) (56,563) Net amount recognized $ (56,999) $ (56,563) Amounts recognized in the consolidated balance Current liability $ (1,242) $ (1,072) Noncurrent liability (55,757) (55,491) Net amount recognized $ (56,999) $ (56,563) Amounts recognized in accumulated other Net actuarial loss $ 51,145 $ 45,062 Prior service cost 194 295 Net amount recognized (a) $ 51,339 $ 45,357 (a) Amounts do not include deferred taxes of $13.0 million and $11.4 million at January 2, 2021 and December 28, 2019, respectively. |
Schedule of Accumulated and Projected Benefit Obligations | January 2, December 28, Projected benefit obligation $ 235,977 $ 212,265 Accumulated benefit obligation 221,238 201,708 Fair value of plan assets 178,978 155,702 |
Schedule of Defined Benefit Plans Disclosures | Net pension cost includes the following components (in thousands): January 2, December 28, December 29, Service cost $ 3,060 $ 2,696 $ 3,064 Interest cost 5,721 6,828 6,443 Expected return on plan assets (8,161) (7,270) (8,226) Net amortization and deferral 3,438 4,605 3,578 Curtailment (678) (33) (263) Settlement (22) 66 47 Net pension cost $ 3,358 $ 6,892 $ 4,643 |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | |
Schedule of Assumptions Used | Weighted average assumptions used to determine benefit obligations were: January 2, December 28, December 29, Discount rate 2.10% 2.77% 3.68% Rate of compensation increase 0.45% 0.40% 0.42% Weighted average assumptions used to determine net periodic benefit cost for the employee benefit pension plans were: January 2, December 28, December 29, Discount rate 2.13% 3.33% 2.30% Rate of increase in future compensation levels 0.41% 0.42% 0.36% Expected long-term rate of return on assets 5.92% 6.13% 6.13% |
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 Significant Other Significant (In thousands of dollars) Fair Value (Level 1) (Level 2) (Level 3) Balances as December 28, 2019 Fixed Income: Long Term $ 16,154 $ 16,154 $ — $ — Short Term 3,448 3,448 — — Equity Securities: Domestic equities 52,420 52,420 — — International equities 32,167 32,167 — — Insurance contracts 10,266 — 5,792 4,474 Total categorized in fair value hierarchy 114,455 104,189 5,792 4,474 Other investments measured at NAV 41,247 Totals $ 155,702 $ 104,189 $ 5,792 $ 4,474 Balances as January 2, 2021 Fixed Income: Long Term $ 20,082 $ 20,082 $ — $ — Short Term 3,585 3,585 — — Equity Securities: Domestic equities 55,454 55,454 — — International equities 35,022 35,022 — — Insurance contracts 14,337 — 11,088 3,249 Total categorized in fair value hierarchy 128,480 114,143 11,088 3,249 Other investments measured at NAV 50,498 Totals $ 178,978 $ 114,143 $ 11,088 $ 3,249 |
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 2021 $ 11,947 2022 10,528 2023 10,953 2024 12,035 2025 12,938 Years 2026 – 2030 66,317 |
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 2020 2019 Implemented 2020 2019 2018 Agreement Western Conference of Teamsters Pension Plan 91-6145047 / 001 Green Green No $ 1,429 $ 1,514 $ 1,505 April 2025 (b) Central States, Southeast and Southwest Areas Pension Plan (a) 36-6044243 / 001 Red Red Yes 886 916 978 May 2023 (c) All other multiemployer plans 914 1,196 1,064 Total Company Contributions $ 3,229 $ 3,626 $ 3,547 (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, 2025. (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. The agreements have expiration dates through May 1, 2023. |
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 December 29, 2018 $ 3,337 Unrealized gains relating to instruments still held in the reporting period. 1,168 Purchases, sales, and settlements — Exchange rate changes (31) Balance as of December 28, 2019 4,474 Unrealized gains relating to instruments still held in the reporting period. 400 Purchases, sales, and settlements (1,956) Exchange rate changes 331 Balance as of January 2, 2021 $ 3,249 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | (in thousands): Functional Currency Contract Currency Type Amount Type Amount Brazilian real 64,919 Euro 9,645 Brazilian real 1,189,357 U.S. Dollar 257,300 Euro 33,671 U.S. Dollar 40,514 Euro 22,229 Polish zloty 100,000 Euro 4,838 Japanese yen 605,514 Euro 15,360 Chinese renminbi 122,801 Euro 13,349 Australian dollar 21,850 Euro 2,488 British pound 2,269 Euro 32 Canadian dollar 50 Polish zloty 24,824 Euro 5,506 Polish zloty 2,253 U.S. dollar 608 British pound 232 Euro 253 British pound 150 U.S. dollar 200 Japanese yen 258,547 U.S. dollar 2,505 U.S. dollar 531 Japanese yen 55,000 U.S. dollar 114,078 Euro 95,000 Canadian dollar 10,205 U.S. dollar 8,000 |
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 January 2, 2021, December 28, 2019 and December 29, 2018 (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 January 2, 2021 December 28, 2019 December 29, 2018 Foreign exchange Foreign currency loss/(gain) $ (3,840) $ 1,565 $ (2,160) Foreign exchange Net sales (778) 903 2,806 Foreign exchange Cost of sales and operating expenses (664) (452) (1,005) Foreign exchange Selling, general and administrative expense 4,976 1,649 3,040 Corn options and futures Net sales (1,091) 670 683 Corn options and futures Cost of sales and operating expenses (50) (1,636) (543) Natural gas and heating oil swaps and options Cost of sales and operating expenses — (506) 1,031 Heating oil swaps and options Net sales (38) — — Total $ (1,485) $ 2,193 $ 3,852 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
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 January 2, 2021 and December 28, 2019 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 January 2, 2021 Using Quoted Prices in Significant Other Significant (In thousands of dollars) Total (Level 1) (Level 2) (Level 3) Assets Derivative assets $ 17,358 $ — $ 17,358 $ — Total Assets 17,358 — 17,358 — Liabilities Derivative liabilities 9,778 — 9,778 — 5.25% Senior Notes 531,300 — 531,300 — 3.625% Senior Notes 646,323 — 646,323 — Term Loan B 298,500 — 298,500 — Revolver 54,175 — 54,175 — Total Liabilities $ 1,540,076 $ — $ 1,540,076 $ — Fair Value Measurements at December 28, 2019 Using Quoted Prices in Significant Other Significant (In thousands of dollars) Total (Level 1) (Level 2) (Level 3) Assets Derivative assets $ 4,140 $ — $ 4,140 $ — Total Assets 4,140 — 4,140 — Liabilities Derivative liabilities 1,593 — 1,593 — 5.25% Senior Notes 531,850 — 531,850 — 3.625% Senior Notes 605,327 — 605,327 — Term Loan B 497,475 — 497,475 — Revolver 38,805 — 38,805 — Total Liabilities $ 1,675,050 $ — $ 1,675,050 $ — |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Profit/(Loss) | Business Segments (in thousands): Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Fiscal Year Ended January 2, 2021 Net Sales $ 2,072,104 $ 1,185,701 $ 314,118 $ — $ 3,571,923 Cost of sales and operating expenses 1,544,524 920,682 223,609 — 2,688,815 Gross Margin 527,580 265,019 90,509 — 883,108 Loss (gain) on sale of assets 19 482 (75) — 426 Selling, general and administrative expense 209,748 97,406 16,014 55,328 378,496 Restructuring and asset impairment charges — — 38,167 — 38,167 Depreciation and amortization 221,187 83,752 34,218 11,021 350,178 Equity in net income of Diamond Green Diesel — — 315,095 — 315,095 Segment operating income/(loss) 96,626 83,379 317,280 (66,349) 430,936 Equity in net income of other unconsolidated subsidiaries 3,193 — — — 3,193 Segment income/(loss) 99,819 83,379 317,280 (66,349) 434,129 Total other expense (80,510) Income before income taxes $ 353,619 Segment assets at January 2, 2021 $ 2,708,922 $ 1,335,769 $ 1,160,132 $ 408,508 $ 5,613,331 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Fiscal Year Ended December 28, 2019 Net Sales $ 1,970,561 $ 1,119,085 $ 274,259 $ — $ 3,363,905 Cost of sales and operating expenses 1,519,596 864,618 204,871 — 2,589,085 Gross Margin 450,965 254,467 69,388 — 774,820 Loss/(gain) on sale of assets (7,720) (13,175) 313 — (20,582) Selling, general and administrative expense 200,487 97,363 2,762 57,911 358,523 Depreciation and amortization 203,456 79,671 31,946 10,437 325,510 Equity in net income of Diamond Green Diesel — — 364,452 — 364,452 Segment operating income/(loss) 54,742 90,608 398,819 (68,348) 475,821 Equity in net income of unconsolidated subsidiaries 428 — — — 428 Segment income/(loss) 55,170 90,608 398,819 (68,348) 476,249 Total other expense (95,815) Income before income taxes $ 380,434 Segment assets at December 28, 2019 $ 2,653,363 $ 1,345,526 $ 1,087,701 $ 258,668 $ 5,345,258 Feed Ingredients Food Ingredients Fuel Ingredients Corporate Total Fiscal Year Ended December 29, 2018 Net Sales $ 1,952,555 $ 1,139,126 $ 296,045 $ — $ 3,387,726 Cost of sales and operating expenses 1,497,973 918,141 230,260 — 2,646,374 Gross Margin 454,582 220,985 65,785 — 741,352 Loss/(gain) on sale of assets 725 (282) 266 — 709 Selling, general and administrative expense 176,722 91,546 (4,770) 45,766 309,264 Restructuring and asset impairment charges — 14,965 — — 14,965 Depreciation and amortization 194,292 80,988 34,981 10,931 321,192 Equity in net income of Diamond Green Diesel — — 159,779 — 159,779 Segment operating income/(loss) 82,843 33,768 195,087 (56,697) 255,001 Equity in net loss of unconsolidated subsidiaries (550) — — — (550) Segment income/(loss) 82,293 33,768 195,087 (56,697) 254,451 Total other expense (136,476) Income before income taxes $ 117,975 |
Business Segment Property, Plant and Equipment | Business Segment Property, Plant and Equipment (in thousands): January 2, December 28, December 29, Capital expenditures: Feed Ingredients $ 176,530 $ 229,415 $ 237,215 Food Ingredients 68,250 85,501 51,659 Fuel Ingredients 30,638 23,964 27,121 Corporate Activities 4,697 20,618 5,901 Total (a) $ 280,115 $ 359,498 $ 321,896 |
Geographic Area Net Trade Revenues | Long-lived assets related to the Company's operations in North America, Europe, China, South American and other were as follows (in thousands): FY 2020 FY 2019 Long-Lived Assets Long-Lived Assets North America $ 3,056,047 $ 2,991,537 Europe 1,357,070 1,228,807 China 127,549 124,874 South America 74,720 73,477 Other 10,951 9,275 Total $ 4,626,337 $ 4,427,970 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables presents the Company revenues disaggregated by geographic area and major product types by reportable segment for the years ended January 2, 2021, December 28, 2019 and December 29, 2018 (in thousands): Year Ended January 2 2021 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area North America $ 1,694,705 $ 244,929 $ 20,869 $ 1,960,503 Europe 352,748 650,671 293,249 1,296,668 China 13,676 188,417 — 202,093 South America — 38,238 — 38,238 Other 10,975 63,446 — 74,421 Net sales $ 2,072,104 $ 1,185,701 $ 314,118 $ 3,571,923 Major product types Fats $ 661,774 $ 142,963 $ — $ 804,737 Used cooking oil 176,691 — — 176,691 Proteins 830,195 — — 830,195 Bakery 183,759 — — 183,759 Other rendering 178,601 — — 178,601 Food ingredients — 947,928 — 947,928 Bioenergy — — 293,249 293,249 Biofuels — — 20,869 20,869 Other 41,084 94,810 — 135,894 Net sales $ 2,072,104 $ 1,185,701 $ 314,118 $ 3,571,923 Year Ended December 28, 2019 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area North America $ 1,635,382 $ 214,623 $ 39,568 $ 1,889,573 Europe 309,097 609,999 234,691 1,153,787 China 16,342 178,283 — 194,625 South America — 51,168 — 51,168 Other 9,740 65,012 — 74,752 Net sales $ 1,970,561 $ 1,119,085 $ 274,259 $ 3,363,905 Major product types Fats $ 584,336 $ 133,898 $ — $ 718,234 Used cooking oil 185,705 — — 185,705 Proteins 791,284 — — 791,284 Bakery 191,551 — — 191,551 Other rendering 167,870 — — 167,870 Food ingredients — 894,761 — 894,761 Bioenergy — — 234,691 234,691 Biofuels — — 39,568 39,568 Other 49,815 90,426 — 140,241 Net sales $ 1,970,561 $ 1,119,085 $ 274,259 $ 3,363,905 Year Ended December 29, 2018 Feed Ingredients Food Ingredients Fuel Ingredients Total Geographic Area Revenues North America $ 1,586,930 $ 181,213 $ 48,858 $ 1,817,001 Europe 329,341 648,933 247,187 1,225,461 China 28,288 182,369 — 210,657 South America — 53,206 — 53,206 Other 7,996 73,405 — 81,401 Net sales $ 1,952,555 $ 1,139,126 $ 296,045 $ 3,387,726 Major product types Fats $ 564,790 $ 163,815 $ — $ 728,605 Used cooking oil 166,634 — — 166,634 Proteins 842,878 — — 842,878 Bakery 180,227 — — 180,227 Other rendering 129,273 — — 129,273 Food ingredients — 886,042 — 886,042 Bioenergy — — 247,187 247,187 Biofuels — — 48,858 48,858 Other 68,753 89,269 — 158,022 Net sales $ 1,952,555 $ 1,139,126 $ 296,045 $ 3,387,726 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Jan. 02, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Year Ended January 2, 2021 First Second Third Fourth Net sales $ 852,842 $ 848,673 $ 850,569 $ 1,019,839 Operating income 122,829 106,288 127,455 74,364 Income from operations before income taxes 104,391 86,441 106,417 56,370 Net income 86,091 66,495 101,605 46,139 Net income attributable to noncontrolling interests (581) (1,056) (480) (1,394) Net income attributable to Darling 85,510 65,439 101,125 44,745 Basic earnings per share 0.52 0.40 0.62 0.28 Diluted earnings per share 0.51 0.39 0.61 0.27 Year Ended December 28, 2019 First Second Third Fourth Net sales $ 835,104 $ 827,324 $ 842,049 $ 859,428 Operating income 48,551 74,124 59,859 293,287 Income from operations before income taxes 24,914 38,820 37,687 279,013 Net income 19,640 31,044 26,837 243,446 Net income attributable to noncontrolling interests (1,628) (4,786) (1,116) (837) Net income attributable to Darling 18,012 26,258 25,721 242,609 Basic earnings per share 0.11 0.16 0.16 1.48 Diluted earnings per share 0.11 0.16 0.15 1.44 (a) In the fourth quarter of fiscal 2020, the Company's results include restructuring and asset impairment charges of approximately $38.2 million. (b) In the fourth quarter of fiscal 2019, the Company's results include 2019 and 2018 blenders tax credits of approximately $234.4 million. |
General (Details)
General (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 02, 2021USD ($)Facilitysegmentcontinent$ / shares | Sep. 26, 2020$ / shares | Jun. 27, 2020$ / shares | Mar. 28, 2020$ / shares | Dec. 28, 2019USD ($)$ / shares | Sep. 28, 2019$ / shares | Jun. 29, 2019$ / shares | Mar. 30, 2019$ / shares | Jan. 02, 2021USD ($)Facilitysegmentcontinent$ / sharesshares | Dec. 28, 2019USD ($)$ / sharesshares | Dec. 29, 2018USD ($)$ / sharesshares | Apr. 03, 2019 | Oct. 05, 2018USD ($) | May 31, 2018USD ($) | May 02, 2018 | |
General [Line Items] | |||||||||||||||
Financing Receivable, Sale | $ 345,600 | $ 204,100 | $ 113,500 | ||||||||||||
Expected Business Combination, Number of Continents in which Entity Operates | continent | 5 | 5 | |||||||||||||
Number of Operating Segments | segment | 3 | 3 | |||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||
Investments Classified As Cash Equivalents, Original Maturity | 3 months | ||||||||||||||
Goodwill [Abstract] | |||||||||||||||
Goodwill | $ 1,260,240 | $ 1,223,291 | $ 1,260,240 | 1,223,291 | 1,229,159 | $ 8,400 | $ 19,600 | ||||||||
Basic: | |||||||||||||||
Net income | $ 296,819 | $ 312,600 | $ 101,496 | ||||||||||||
Shares (in shares) | shares | 162,572,000 | 164,633,000 | 164,789,000 | ||||||||||||
Basic (in dollars per share) | $ / shares | $ 0.28 | $ 0.62 | $ 0.40 | $ 0.52 | $ 1.48 | $ 0.16 | $ 0.16 | $ 0.11 | $ 1.83 | $ 1.90 | $ 0.62 | ||||
Effect of dilutive securities: [Abstract] | |||||||||||||||
Add: Option shares in the money and dilutive effect of nonvested stock (in shares) | shares | 6,526,000 | 5,983,000 | 5,234,000 | ||||||||||||
Less: Pro-forma treasury shares (in shares) | shares | (1,890,000) | (2,238,000) | (2,113,000) | ||||||||||||
Diluted: | |||||||||||||||
Net Income | $ 296,819 | $ 312,600 | $ 101,496 | ||||||||||||
Shares (in shares) | shares | 167,208,000 | 168,378,000 | 167,910,000 | ||||||||||||
Diluted (in dollars per share) | $ / shares | $ 0.27 | $ 0.61 | $ 0.39 | $ 0.51 | $ 1.44 | $ 0.15 | $ 0.16 | $ 0.11 | $ 1.78 | $ 1.86 | $ 0.60 | ||||
Stock Based Compensation [Abstract] | |||||||||||||||
Stock-based compensation expense | $ 23,200 | $ 21,000 | $ 18,800 | ||||||||||||
Employee service share-based compensation, tax benefit from compensation expense | 1,900 | 1,700 | 2,400 | ||||||||||||
Foreign currency translation | 71,400 | (12,300) | (86,900) | ||||||||||||
Financing Receivable, Significant Sales, Transaction Fees | $ 1,100 | $ 1,200 | $ 600 | ||||||||||||
Lease, Term of Contract Not Recognized | 12 months | ||||||||||||||
Impairment of Long-Lived Assets Held-for-use | $ 6,200 | ||||||||||||||
Stock Options [Member] | |||||||||||||||
Antidilutive Securities [Abstract] | |||||||||||||||
Antidilutive securities excluded from computation of earnings per share, amount | shares | 24,356 | 638,146 | 693,172 | ||||||||||||
Non Vested Stock [Member] | |||||||||||||||
Antidilutive Securities [Abstract] | |||||||||||||||
Antidilutive securities excluded from computation of earnings per share, amount | shares | 392,909 | 611,187 | 502,292 | ||||||||||||
Minimum [Member] | |||||||||||||||
General [Line Items] | |||||||||||||||
Number of Processing and Transfer Facilities | Facility | 200 | 200 | |||||||||||||
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] | 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 | ||||||||||||||
Senior Notes 5.25% Due 2027 [Member] | Senior Notes [Member] | |||||||||||||||
General [Line Items] | |||||||||||||||
Annual interest rate | 5.25% | 5.25% | 5.25% | ||||||||||||
Senior Notes 3.625% Due 2026 [Member] | Senior Notes [Member] | |||||||||||||||
General [Line Items] | |||||||||||||||
Annual interest rate | 3.625% | 3.625% | 3.625% |
Investment in Unconsolidated _3
Investment in Unconsolidated Subsidiary Selected Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 28, 2019 | Dec. 31, 2018 | Dec. 29, 2018 | Dec. 30, 2017 | |
Assets: | |||||||||||||||
Total current assets | $ 986,994 | $ 917,288 | $ 986,994 | $ 917,288 | |||||||||||
Property, plant and equipment, net | 1,863,814 | 1,802,411 | 1,863,814 | 1,802,411 | |||||||||||
Other assets | 60,682 | 47,400 | 60,682 | 47,400 | |||||||||||
Total assets | 5,613,331 | 5,345,258 | 5,613,331 | 5,345,258 | |||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||
Less Current Maturities | 27,538 | 90,996 | 27,538 | 90,996 | |||||||||||
Other noncurrent liabilities | 117,371 | 115,785 | 117,371 | 115,785 | |||||||||||
Total members' equity | 2,954,209 | 2,643,350 | 2,954,209 | 2,643,350 | $ 2,335,821 | $ 2,327,697 | |||||||||
Total liabilities and member's equity | 5,613,331 | 5,345,258 | 5,613,331 | 5,345,258 | |||||||||||
Revenues: | |||||||||||||||
Operating revenues | 1,019,839 | $ 850,569 | $ 848,673 | $ 852,842 | 859,428 | $ 842,049 | $ 827,324 | $ 835,104 | 3,571,923 | 3,363,905 | 3,387,726 | ||||
Expenses: | |||||||||||||||
Cost of sales and operating expenses | 2,688,815 | 2,589,085 | 2,646,374 | ||||||||||||
Operating income | 3,456,082 | 3,252,536 | 3,292,504 | ||||||||||||
Net income | $ 46,139 | $ 101,605 | $ 66,495 | $ 86,091 | $ 243,446 | $ 26,837 | $ 31,044 | $ 19,640 | $ 300,330 | $ 320,967 | $ 105,944 | ||||
Diamond Green Diesel Holdings LLC Joint Venture [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | |||||||||||||||
Assets: | |||||||||||||||
Total current assets | $ 383,557 | $ 668,026 | |||||||||||||
Property, plant and equipment, net | 1,238,726 | 713,489 | |||||||||||||
Other assets | 36,082 | 30,710 | |||||||||||||
Total assets | 1,658,365 | 1,412,225 | |||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||
Less Current Maturities | 517 | 341 | |||||||||||||
Total other current liabilities | 99,787 | 75,802 | |||||||||||||
Total long term debt | 8,705 | 8,742 | |||||||||||||
Other noncurrent liabilities | 3,758 | 4,422 | |||||||||||||
Total members' equity | 1,545,598 | 1,322,918 | |||||||||||||
Total liabilities and member's equity | 1,658,365 | 1,412,225 | |||||||||||||
Revenues: | |||||||||||||||
Operating revenues | 1,267,477 | 1,217,504 | $ 677,663 | ||||||||||||
Expenses: | |||||||||||||||
Cost of sales and operating expenses | 592,781 | 438,672 | 329,636 | ||||||||||||
Depreciation, amortization and accretion expense | 44,882 | 50,767 | 29,434 | ||||||||||||
Operating income | 629,814 | 728,065 | 318,593 | ||||||||||||
Other income | 1,636 | 2,121 | 1,919 | ||||||||||||
Interest and debt expense, net | (1,260) | (1,282) | (955) | ||||||||||||
Net income | $ 630,190 | $ 728,904 | $ 319,557 |
Investment in Unconsolidated _4
Investment in Unconsolidated Subsidiary (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jan. 02, 2021USD ($) | Jan. 02, 2021USD ($)$ / gal | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Jan. 21, 2011 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in the joint venture | $ 804,682 | $ 804,682 | $ 689,354 | |||
Gain from equity method investments | $ 3,193 | 428 | $ (550) | |||
Dollars per Gallon | $ / gal | 1 | |||||
Renewable Diesel, Percentage | 0.10% | |||||
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | $ 207,328 | 69,213 | 67,638 | |||
Diamond Green Diesel Holdings LLC Joint Venture [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||
Investment in the joint venture | 772,800 | 772,800 | ||||
Gain from equity method investments | 315,100 | 364,500 | 159,800 | |||
Income Tax Credits and Adjustments | $ 234,400 | 287,900 | 274,700 | 155,900 | $ 160,400 | |
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | $ 205,200 | $ 67,500 | $ 65,000 | |||
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% |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Oct. 31, 2020 | Jan. 31, 2020 | Oct. 31, 2018 | May 31, 2018 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 21, 2020 | Oct. 30, 2020 | Oct. 05, 2018 | |
Business Acquisition [Line Items] | |||||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage | 50.00% | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 12,200 | $ 50,400 | $ 51,300 | $ 29,793 | $ 1,431 | $ 107,727 | |||||
Goodwill | 19,600 | 1,260,240 | 1,223,291 | 1,229,159 | $ 8,400 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | $ 600 | 9,000 | |||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | 15 years | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 15,200 | 11,200 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 3,400 | 15,900 | $ 21,800 | ||||||||
Proceeds from Divestiture of Interest in Subsidiaries and Affiliates | 80,000 | 0 | 3,671 | 82,760 | |||||||
Gain (Loss) on Disposition of Business | $ 15,600 | $ 0 | $ 2,967 | $ (12,545) | |||||||
Acquisition Of Noncontrolling Interest | $ 8,800 | ||||||||||
Ownership Percentage | 100.00% | ||||||||||
Marengo | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill | $ 5,700 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 1,500 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | $ 3,600 | ||||||||||
Payments to Acquire Businesses, Gross | $ 10,500 | ||||||||||
Business Combination, Consideration Transferred | 10,800 | ||||||||||
Business Combination, Holdback Amount | $ 300 | ||||||||||
Belgium | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Goodwill | $ 8,900 | ||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 14,800 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 6,400 | ||||||||||
Payments to Acquire Businesses, Gross | $ 19,300 | ||||||||||
Business Combination, Consideration Transferred | 24,400 | ||||||||||
Business Combination, Holdback Amount | $ 5,100 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | $ 5,700 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Inventory Disclosure [Abstract] | ||
Finished product | $ 233,044 | $ 199,799 |
Work in process | 87,223 | 81,841 |
Inventory, Raw Materials, Net of Reserves | 36,746 | 41,964 |
Supplies and other | 48,909 | 39,353 |
Inventories | $ 405,922 | $ 362,957 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,565,937 | $ 3,240,799 |
Accumulated depreciation | (1,702,123) | (1,438,388) |
Property, plant and equipment, net | 1,863,814 | 1,802,411 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 170,237 | 157,721 |
Buildings and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 684,459 | 619,212 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,219,797 | 2,002,237 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 302,641 | 269,529 |
Aircraft [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 9,708 | 9,708 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 179,095 | $ 182,392 |
Intangbile assets (Details)
Intangbile assets (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Intangible Assets [Line Items] | ||
Indefinite Lived Intangible Assets | $ 55,349 | $ 52,733 |
Finite Lived Intangible Assets: | 986,417 | 956,103 |
Accumulated Amortization: | (568,086) | (482,442) |
Total Intangible assets, less accumulated amortization | 473,680 | 526,394 |
Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Indefinite Lived Intangible Assets | 55,349 | 52,733 |
Routes [Member] | ||
Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets: | 397,342 | 382,263 |
Accumulated Amortization: | (203,392) | (169,050) |
Permits [Member] | ||
Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets: | 494,191 | 483,593 |
Accumulated Amortization: | (315,246) | (272,213) |
Non-compete agreements [Member] | ||
Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets: | 3,300 | 3,840 |
Accumulated Amortization: | (2,981) | (3,111) |
Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets: | 65,675 | 65,670 |
Accumulated Amortization: | (39,491) | (32,890) |
Royalty, consulting land use and leasehold [Member] | ||
Intangible Assets [Line Items] | ||
Finite Lived Intangible Assets: | 25,909 | 20,737 |
Accumulated Amortization: | $ (6,976) | $ (5,178) |
Intangbile assets Textuals (Det
Intangbile assets Textuals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Period Increase (Decrease) | $ 5.8 | ||
Finite-lived Intangible Assets Acquired | 6.5 | ||
Amortization of Intangible Assets | 74 | $ 73.6 | $ 75.2 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 67.9 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 65.9 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 64.8 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 44.2 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 36.7 | ||
Finite-Lived Intangible Assets, Asset Impairment, Period Increase (Decrease) | $ 3 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Goodwill [Roll Forward] | ||
Goodwill at beginning of year | $ 1,239,666 | $ 1,245,534 |
Accumulated impairment losses | (16,375) | (16,375) |
Goodwill at beginning of year | 1,223,291 | 1,229,159 |
Goodwill acquired during year | 14,639 | 487 |
Goodwill disposed of during year | (636) | |
Goodwill, Impairment Loss | 31,580 | |
Foreign currency translation | 53,890 | (5,719) |
Goodwill at end of year | 1,308,195 | 1,239,666 |
Accumulated impairment losses at end of year | (47,955) | (16,375) |
Goodwill at end of year | 1,260,240 | 1,223,291 |
Feed Ingredients [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill at beginning of year | 793,457 | 791,966 |
Accumulated impairment losses | (15,914) | (15,914) |
Goodwill at beginning of year | 777,543 | 776,052 |
Goodwill acquired during year | 13,925 | 396 |
Goodwill disposed of during year | (636) | |
Goodwill, Impairment Loss | 0 | |
Foreign currency translation | 22,939 | 1,731 |
Goodwill at end of year | 830,321 | 793,457 |
Accumulated impairment losses at end of year | (15,914) | (15,914) |
Goodwill at end of year | 814,407 | 777,543 |
Food Ingredients [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill at beginning of year | 329,654 | 335,701 |
Accumulated impairment losses | (461) | (461) |
Goodwill at beginning of year | 329,193 | 335,240 |
Goodwill acquired during year | 0 | 91 |
Goodwill disposed of during year | 0 | |
Goodwill, Impairment Loss | 0 | |
Foreign currency translation | 21,642 | (6,138) |
Goodwill at end of year | 351,296 | 329,654 |
Accumulated impairment losses at end of year | (461) | (461) |
Goodwill at end of year | 350,835 | 329,193 |
Fuel Ingredients [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill at beginning of year | 116,555 | 117,867 |
Accumulated impairment losses | 0 | 0 |
Goodwill at beginning of year | 116,555 | 117,867 |
Goodwill acquired during year | 714 | 0 |
Goodwill disposed of during year | 0 | |
Goodwill, Impairment Loss | 31,580 | |
Foreign currency translation | 9,309 | (1,312) |
Goodwill at end of year | 126,578 | 116,555 |
Accumulated impairment losses at end of year | (31,580) | 0 |
Goodwill at end of year | $ 94,998 | $ 116,555 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
ACCRUED EXPENSES [Abstract] | ||
Compensation and benefits | $ 121,497 | $ 107,324 |
Utilities and sewage | 18,902 | 18,085 |
Accrued ad valorem, and franchise taxes | 39,167 | 30,231 |
Reserve for self insurance, litigation, environmental and tax matters (Note 20) | 11,460 | 19,373 |
Medical claims liability | 8,855 | 8,285 |
Accrued operating expenses | 62,601 | 67,194 |
Accrued interest payable | 9,197 | 9,879 |
Customer Deposits, Current | 14,443 | 18,318 |
Other accrued expense | 49,349 | 32,702 |
Accrued expenses | $ 335,471 | $ 311,391 |
- Components of Lease Expense (
- Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 45,362 | $ 48,858 |
Short-term Lease, Cost | 25,868 | 18,163 |
Total lease costs | $ 71,230 | $ 67,021 |
- Other Information (Details)
- Other Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 52,055 | $ 47,691 |
Operating right-of-use assets, net | 146,563 | 124,726 |
Operating lease liability, current | 39,459 | 37,805 |
Operating lease liability, non-current | 109,707 | 91,424 |
Lease obligations included in current and long-term liabilities | $ 149,166 | $ 129,229 |
Weighted average remaining lease term - operating leases | 6 years 3 months 18 days | 6 years 5 months 15 days |
Weighted average discount rate - operating leases | 4.22% | 4.55% |
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 5 years | |
Operating Lease, Lease Not Yet Commenced | $ 1,200 |
- Maturities of Operating and F
- Maturities of Operating and Financing Lease Liabilities (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Operating Leases | ||
2021 | $ 44,723 | |
2022 | 33,145 | |
2023 | 28,182 | |
2024 | 21,551 | |
2025 | 12,912 | |
Thereafter | 27,168 | |
Operating lease, obligations | 167,681 | |
Less amounts representing interest | (18,515) | |
Lease obligations included in current and long-term liabilities | 149,166 | $ 129,229 |
Finance Leases | ||
2021 | 952 | |
2022 | 858 | |
2023 | 637 | |
2024 | 486 | |
2025 | 345 | |
Thereafter | 598 | |
Finance lease, obligations | 3,876 | |
Less amounts representing interest | (140) | |
Lease obligations included in current and long-term liabilities | $ 3,736 |
- Narrative (Details)
- Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 29, 2018USD ($) | |
Leases [Abstract] | |
Rent expense | $ 51.8 |
Debt Schedule of Long Term Debt
Debt Schedule of Long Term Debt (Details) $ in Thousands, € in Millions | Jan. 02, 2021USD ($) | Jan. 02, 2021EUR (€) | Dec. 28, 2019USD ($) | Apr. 03, 2019 | May 02, 2018 | Jun. 03, 2015 | Jan. 02, 2014 |
Debt Instrument [Line Items] | |||||||
Debt and capital lease obligations | $ 1,508,069 | $ 1,649,425 | |||||
Less Current Maturities | 27,538 | 90,996 | |||||
Long-term debt, net of current portion | 1,480,531 | 1,558,429 | |||||
Senior Secured Facilities [Member] | Foreign Line of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Line of Credit | 12,500 | ||||||
Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 55,000 | 39,000 | |||||
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 296,202 | 487,304 | |||||
Long-term Debt, Gross | 300,000 | 495,000 | |||||
Unamortized Debt Issuance Expense | $ (3,798) | (7,696) | |||||
Senior Notes [Member] | Senior Notes 5.25% Due 2027 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.47% | 5.47% | |||||
Long-term Debt | $ 494,253 | 493,506 | |||||
Long-term Debt, Gross | 500,000 | 500,000 | |||||
Unamortized Debt Issuance Expense | $ (5,747) | (6,494) | |||||
Annual interest rate | 5.25% | 5.25% | 5.25% | ||||
Senior Notes [Member] | Senior Notes 5.375% Due 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Annual interest rate | 5.375% | ||||||
Senior Notes [Member] | Senior Notes 4.75% Due 2022 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Annual interest rate | 4.75% | ||||||
Senior Notes [Member] | Senior Notes 3.625% Due 2026 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Line of Credit | € | € 515 | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.83% | 3.83% | |||||
Long-term Debt | $ 625,577 | 567,114 | |||||
Long-term Debt, Gross | 632,163 | 574,096 | |||||
Unamortized Debt Issuance Expense | $ (6,586) | (6,982) | |||||
Annual interest rate | 3.625% | 3.625% | 3.625% | ||||
Other Notes and Obligations [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 37,037 | $ 62,501 | |||||
Other Notes and Obligations [Member] | Foreign Line of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Line of Credit | 16,200 | ||||||
Other Notes and Obligations [Member] | Bank Overdrafts [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 4,300 | ||||||
Other Notes and Obligations [Member] | Other Debt Obligations [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $ 16,500 |
Debt Narrative (Details)
Debt Narrative (Details) | 12 Months Ended | ||||||||
Jan. 02, 2021USD ($) | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Jan. 02, 2021EUR (€) | Sep. 17, 2020 | Apr. 03, 2019USD ($) | May 02, 2018EUR (€) | Jun. 03, 2015EUR (€) | Jan. 02, 2014USD ($) | |
Debt Instrument [Line Items] | |||||||||
Capital Lease Obligations | € | € 3,000,000 | ||||||||
Debt extinguishment costs | $ 0 | $ 12,126,000 | $ 23,509,000 | ||||||
Current portion of long-term debt | 27,538,000 | 90,996,000 | |||||||
Long-term debt, net of current portion | $ 1,480,531,000 | 1,558,429,000 | |||||||
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 | $ 296,202,000 | 487,304,000 | |||||||
Senior Notes [Member] | Senior Notes 3.625% Due 2026 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term line of credit | € | € 515,000,000 | ||||||||
Face amount of debt insturment | € | € 515,000,000 | ||||||||
Long-term Debt | $ 625,577,000 | 567,114,000 | |||||||
Annual interest rate | 3.625% | 3.625% | 3.625% | ||||||
Senior Notes [Member] | Senior Notes 5.25% Due 2027 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt insturment | $ 500,000,000 | ||||||||
Long-term Debt | $ 494,253,000 | 493,506,000 | |||||||
Debt extinguishment costs | $ 12,100,000 | ||||||||
Annual interest rate | 5.25% | 5.25% | 5.25% | ||||||
Senior Notes [Member] | Senior Notes 5.375% Due 2022 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt insturment | $ 500,000,000 | ||||||||
Annual interest rate | 5.375% | ||||||||
Senior Notes [Member] | Senior Notes 4.75% Due 2022 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt insturment | € | € 515,000,000 | ||||||||
Annual interest rate | 4.75% | ||||||||
Secured Debt [Member] | Senior Secured Facilities [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum availability | $ 1,525,000,000 | ||||||||
Debt Issuance Costs, Net | 4,300,000 | ||||||||
Other Notes and Obligations [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt | 37,037,000 | 62,501,000 | |||||||
Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum availability | 1,000,000,000 | ||||||||
Availability | 893,900,000 | ||||||||
Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | United States of America, Dollars | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term line of credit | 25,000,000 | ||||||||
Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | Base Rate [Member] | United States of America, Dollars | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term line of credit | 30,000,000 | ||||||||
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Senior Secured Facilities [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term Debt | 55,000,000 | $ 39,000,000 | |||||||
Revolving Credit Facility [Member] | Secured Debt [Member] | Senior Secured Facilities [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Availability | 970,000,000 | ||||||||
Revolving Credit Facility [Member] | Secured Debt [Member] | Senior Secured Facilities [Member] | United States of America, Dollars | |||||||||
Debt Instrument [Line Items] | |||||||||
Availability | $ 30,000,000 | ||||||||
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 | 1.50% | ||||||||
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 | 0.50% | ||||||||
Letter of Credit [Member] | Senior Secured Facilities [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term line of credit | $ 3,900,000 | ||||||||
Maximum availability | $ 150,000,000 | ||||||||
Debt Instrument, Covenant, Leverage Ratio, Denominator | 1.5 | ||||||||
Letter of Credit [Member] | Senior Secured Facilities [Member] | Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, covenant, interest ratio | 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 | |||||||
Secured Debt [Member] | Senior Secured Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 1.50% | ||||||||
Line of credit facility, interest rate at period end | 1.65% | 1.65% | |||||||
Secured Debt [Member] | Senior Secured Facilities [Member] | Base Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on variable rate | 0.50% | ||||||||
Line of credit facility, interest rate at period end | 3.75% | 3.75% | |||||||
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] | |||||||||
Face amount of debt insturment | 525,000,000 | ||||||||
Term Loan B Facility [Member] | Senior Secured Facilities [Member] | United States of America, Dollars | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term line of credit | $ 300,000,000 | ||||||||
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 | 2.00% | ||||||||
Line of credit facility, interest rate at period end | 2.15% | 2.15% | |||||||
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 | 2.00% | ||||||||
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 | 1.00% | ||||||||
Foreign Line of Credit [Member] | Senior Secured Facilities [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term line of credit | $ 12,500,000 | ||||||||
Foreign Line of Credit [Member] | Other Notes and Obligations [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term line of credit | $ 16,200,000 |
Debt Debt Maturiities (Details)
Debt Debt Maturiities (Details) $ in Thousands | Jan. 02, 2021USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 27,538 |
2022 | 4,697 |
2023 | 3,075 |
2024 | 300,514 |
2025 | 55,378 |
thereafter | 1,132,998 |
Long-term Debt | $ 1,524,200 |
Other Noncurrent Liabilities (D
Other Noncurrent Liabilities (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
OTHER NONCURRENT LIABILITIES [Abstract] | ||
Accrued pension liability (Note 15) | $ 55,757 | $ 55,491 |
Reserve for self insurance, litigation, environmental and tax matters (Note 20) | 59,111 | 54,568 |
Other | 2,503 | 5,726 |
Total other noncurrent liabilities | $ 117,371 | $ 115,785 |
Income Taxes Income Taxes - Nar
Income Taxes Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Operating Loss Carryforwards [Line Items] | |||
Income tax expense | $ 53,289 | $ 59,467 | $ 12,031 |
Interest expense carryforwards | 402 | 12,361 | |
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 5,300 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 86,200 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 144,000 | ||
Deferred Tax Assets, Valuation Allowance | 7,100 | ||
Operating Loss Carryforwards, Valuation Allowance | 17,100 | ||
Unrecognized Tax Benefits | 5,039 | 7,810 | $ 5,777 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 200 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | 400 | ||
Deferred Tax Liabilities, Undistributed Foreign Earnings | 10,234 | $ 6,139 | |
Internal Revenue Service (IRS) | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 56,700 | ||
Deferred Tax Assets, Capital Loss Carryforwards | 21,100 | ||
Tax Credit Carryforward, Amount | 1,300 | ||
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Tax Credit Carryforward, Amount | 57,800 | ||
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Operating Loss Carryforwards | 274,400 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 257,900 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | $ 16,500 |
Income Taxes - Income From Oper
Income Taxes - Income From Operations Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |||||||||||
United States | $ 265,950 | $ 260,867 | $ 82,146 | ||||||||
Foreign | 87,669 | 119,567 | 35,829 | ||||||||
Income from operations before income taxes | $ 56,370 | $ 106,417 | $ 86,441 | $ 104,391 | $ 279,013 | $ 37,687 | $ 38,820 | $ 24,914 | $ 353,619 | $ 380,434 | $ 117,975 |
Income Taxes - Expense Benefit
Income Taxes - Expense Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Current: | |||
Federal | $ (72) | $ (162) | $ (330) |
State | 1,595 | 341 | (3) |
Foreign | 36,453 | 37,117 | 27,935 |
Total current | 37,976 | 37,296 | 27,602 |
Deferred: | |||
Federal | 20,827 | 13,465 | 4,803 |
State | 840 | 11,804 | (2,216) |
Foreign | (6,354) | (3,098) | (18,158) |
Total deferred | 15,313 | 22,171 | (15,571) |
Income Tax Expense (Benefit) | $ 53,289 | $ 59,467 | $ 12,031 |
Income Taxes Income Taxes - Rec
Income Taxes Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Computed "expected" tax expense | $ 74,260 | $ 79,891 | $ 24,775 |
Change in valuation allowance | (522) | 38 | 9,700 |
Non-deductible compensation expenses | 4,723 | 3,950 | 2,305 |
Deferred tax on unremitted foreign earnings | (548) | 1,505 | (31) |
Sub-Part F income | 45 | 1,122 | 3,361 |
Foreign rate differential | 7,077 | 7,246 | 658 |
Change in uncertain tax positions | (4,650) | 1,736 | 3,419 |
State income taxes, net of federal benefit | 2,702 | 5,686 | (1,813) |
Biofuel tax incentives | (31,725) | (46,007) | (18,489) |
Change in tax law | 3,699 | 1,352 | (10,017) |
Other, net | (1,772) | 2,948 | (1,837) |
Income Tax Expense (Benefit) | $ 53,289 | $ 59,467 | $ 12,031 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Deferred tax assets: | ||
Loss contingency reserves | $ 9,805 | $ 11,193 |
Employee benefits | 13,027 | 12,236 |
Pension liability | 13,053 | 13,049 |
Intangible assets amortization, including taxable goodwill | 1,474 | 1,485 |
Interest expense carryforwards | 402 | 12,361 |
Tax loss carryforwards | 68,730 | 80,195 |
Tax credit carryforwards | 6,610 | 5,653 |
Operating lease liabilities | 38,930 | 33,549 |
Inventory | 5,935 | 5,185 |
Accrued liabilities and other | 12,925 | 13,677 |
Total gross deferred tax assets | 170,891 | 188,583 |
Less valuation allowance | (24,228) | (24,759) |
Net deferred tax assets | 146,663 | 163,824 |
Deferred tax liabilities: | ||
Intangible assets amortization, including taxable goodwill | (169,277) | (157,332) |
Property, plant and equipment depreciation | (133,712) | (144,911) |
Investment in DGD Joint Venture | (52,238) | (54,287) |
Operating lease assets | (38,049) | (32,233) |
Tax on unremitted foreign earnings | (10,234) | (6,139) |
Other | (2,685) | (2,459) |
Total gross deferred tax liabilities | (406,195) | (397,361) |
Net deferred tax liability | (259,532) | (233,537) |
Non-current deferred tax asset | 16,676 | 14,394 |
Non-current deferred tax liability | $ (276,208) | $ (247,931) |
Income Taxes Reconciliation of
Income Taxes Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of Year | $ 7,810 | $ 5,777 |
Change in tax positions related to current year | 9 | 3,887 |
Change in tax positions related to prior years | (2,780) | (233) |
Change in tax positions due to settlement with tax authorities | 0 | (1,354) |
Expiration of the Statute of Limitations | 0 | (267) |
Balance at end of year | $ 5,039 | $ 7,810 |
Stockholders' Equity and Stoc_3
Stockholders' Equity and Stock-Based Compensation Narrative (Details) - USD ($) | Jan. 06, 2020 | Jan. 25, 2019 | Jan. 29, 2018 | Aug. 07, 2017 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock repurchase program, period in force | 2 years | ||||||
Stock repurchase program, authorized amount | $ 200,000,000 | ||||||
Payments for Repurchase of Common Stock | $ 55,044,000 | $ 19,260,000 | $ 0 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 200,000,000 | ||||||
Omnibus Incentive Plan 2017 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized | 20,166,500 | ||||||
Number of shares available for grant | 10,824,222 | ||||||
Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance period two | 3 years | 3 years | 3 years | ||||
Annual vesting after initial cliff | 33.33% | ||||||
Shares granted (in shares) | 224,481 | 305,195 | 295,514 | 224,481 | 305,195 | 295,514 | |
Incentive Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture | 0 | 0 | 0 | ||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted (in shares) | 11,000 |
Stockholders' Equity and Stoc_4
Stockholders' Equity and Stock-Based Compensation Stock Option Awards (Details) - USD ($) $ in Millions | Jan. 06, 2020 | Jan. 25, 2019 | Jan. 29, 2018 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Options outstanding, Weighted-average remaining contractual life (in years) | 6 years 2 months 12 days | 6 years 6 months | 6 years 10 months 24 days | 7 years 3 months 18 days | |||
Granted (in shares) | 550,941 | 610,953 | 637,115 | ||||
Proceeds from stock options exercised | $ 0.1 | $ 0.1 | $ 0.2 | ||||
Share-based Payment Arrangement, Exercise of Option, Tax Benefit | 2.4 | 0.4 | 0.2 | ||||
Exercises in period, intrinsic value | 19.5 | 4.7 | 1.1 | ||||
Vested in period, fair value | 17.4 | $ 15.5 | $ 12.5 | ||||
Outstanding, intrinsic value | 149 | ||||||
Exercisable, intrinsic value | 110.2 | ||||||
Total compensation cost not yet recognized | $ 7.4 | ||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 2 months 12 days | ||||||
Options exercisable, Weighted-average remaining contractual life (in years) | 5 years 3 months 18 days | ||||||
Nonqualified Stock Options Under Long Term Incentive Program [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 550,941 | 610,953 | 637,115 | ||||
Award vesting rights, percentage | 33.33% | ||||||
Expiration period | 10 years | ||||||
Incentive Stock Options [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, before Forfeiture | 0 | 0 | 0 |
Stockholders' Equity and Stoc_5
Stockholders' Equity and Stock-Based Compensation Stock Option Activity (Details) - $ / shares | Jan. 06, 2020 | Jan. 25, 2019 | Jan. 29, 2018 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Summary of stock option activity [Roll Forward] | |||||||
Options outstanding at the beginning of year (in shares) | 3,978,485 | 3,754,202 | 3,290,757 | ||||
Options outstanding at the beginning of year, Weighted-average exercise price per share (in usd per share) | $ 14.59 | $ 13.07 | $ 11.86 | ||||
Granted (in shares) | 550,941 | 610,953 | 637,115 | ||||
Granted, Weighted-average exercise price per share (in usd per share) | $ 28.89 | $ 21 | $ 18.82 | ||||
Exercised (in shares) | (837,911) | (380,206) | (153,717) | ||||
Exercised, Weighted-average exercise price per share (in usd per share) | $ 12.01 | $ 9.83 | $ 11.49 | ||||
Forfeited (in shares) | 0 | (6,464) | (19,953) | ||||
Forfeited, Weighted-average exercise price per share (in usd per share) | $ 0 | $ 18.11 | $ 9.99 | ||||
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) | 3,691,515 | 3,978,485 | 3,754,202 | 3,290,757 | |||
Options outstanding at the end of year, Weighted-average exercise price per share (in usd per share) | $ 17.31 | $ 14.59 | $ 13.07 | $ 11.86 | |||
Options outstanding, Weighted-average remaining contractual life (in years) | 6 years 2 months 12 days | 6 years 6 months | 6 years 10 months 24 days | 7 years 3 months 18 days | |||
Options exercisable (in shares) | 2,527,003 | ||||||
Options exercisable, Weighted-average exercise price per share (in usd per share) | $ 14.07 | ||||||
Options exercisable, Weighted-average remaining contractual life (in years) | 5 years 3 months 18 days | ||||||
Nonqualified Stock Options Under Long Term Incentive Program [Member] | |||||||
Summary of stock option activity [Roll Forward] | |||||||
Granted (in shares) | 550,941 | 610,953 | 637,115 |
Stockholders' Equity and Stoc_6
Stockholders' Equity and Stock-Based Compensation Weighted Average Assumptions (Details) - $ / shares | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Stockholders' Equity and Stock-Based Compensation [Abstract] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.65% | 2.61% | 2.54% |
Expected term | 5 years 11 months 8 days | 6 years | 5 years 9 months 25 days |
Expected volatility | 27.40% | 29.60% | 29.30% |
Fair value of options granted (in usd per share) | $ 8.64 | $ 7.16 | $ 6.37 |
Stockholders' Equity and Stoc_7
Stockholders' Equity and Stock-Based Compensation Non-Vested Stock, Restricted Stock Unit and Performance Share Unit Awards (Details) - shares | Jan. 06, 2020 | Jan. 25, 2019 | Jan. 29, 2018 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 |
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) | 224,481 | 305,195 | 295,514 | 224,481 | 305,195 | 295,514 |
Performance period two | 3 years | 3 years | 3 years | |||
Stock Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted (in shares) | 11,000 | 0 | 0 | |||
Shares vested (in shares) | (375) | (126,511) | (228,991) | |||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock equivalent (in shares) | 1 | |||||
Shares granted (in shares) | 11,000 |
Stockholders' Equity and Stoc_8
Stockholders' Equity and Stock-Based Compensation Fiscal 2017 and Fiscal 2016 LTIP PSU Awards (Details) - Performance Shares [Member] - shares | Jan. 06, 2020 | Jan. 25, 2019 | Jan. 29, 2018 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted (in shares) | 224,481 | 305,195 | 295,514 | 224,481 | 305,195 | 295,514 |
Performance period two | 3 years | 3 years | 3 years | |||
PSUs earned may be reduced | 30.00% | |||||
Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Target percentage | 0.00% | |||||
Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Target percentage | 225.00% |
Stockholders' Equity and Stoc_9
Stockholders' Equity and Stock-Based Compensation Summary of Assumptions (Details) | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.65% | 2.61% | 2.54% |
Expected term | 5 years 11 months 8 days | 6 years | 5 years 9 months 25 days |
Expected volatility | 27.40% | 29.60% | 29.30% |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Risk-free interest rate | 1.55% | 2.58% | 2.25% |
Expected term | 2 years 11 months 26 days | 2 years 11 months 4 days | 2 years 11 months 4 days |
Expected volatility | 25.80% | 30.70% | 34.40% |
Stockholders' Equity and Sto_10
Stockholders' Equity and Stock-Based Compensation Summary of the Company’s LTIP PSU Awards (Details) - Performance Shares [Member] - $ / shares | Jan. 06, 2020 | Jan. 25, 2019 | Jan. 29, 2018 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 |
Summary of non-vested and restricted stock awards [Roll Forward] | ||||||
Beginning balance nonvested (in shares) | 1,893,473 | 1,481,976 | 1,141,016 | |||
Nonvested, Weighted Average Grant Date Fair Value (in usd per share) | $ 12.54 | $ 11.15 | $ 8.91 | |||
Shares granted (in shares) | 224,481 | 305,195 | 295,514 | 224,481 | 305,195 | 295,514 |
Shares granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ 31.80 | $ 21.50 | $ 20.60 | |||
Additional PSU awards vested from performance (in shares) | 434,666 | 235,126 | 88,151 | |||
Shares vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ 11.14 | $ 7.23 | $ 6.95 | |||
Stock issued for PSU's (in shares) | (349,210) | (125,067) | (26,212) | |||
Stock issued for PSU's, Weighted Average Grant Date Fair Value (in dollars per share) | $ 8.91 | $ 7.84 | $ 6.95 | |||
Forfeited in Period (in shares) | (332) | (3,757) | (16,493) | |||
Shares forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ 26.88 | $ 19.09 | $ 9.39 | |||
Nonvested, Weighted Average Grant Date Fair Value (in usd per share) | $ 14.80 | $ 12.54 | $ 11.15 | |||
Ending balance nonvested (in shares) | 2,203,078 | 1,893,473 | 1,481,976 |
Stockholders' Equity and Sto_11
Stockholders' Equity and Stock-Based Compensation Summary of the Company’s Non-vested Stock (Details) - $ / shares | Jan. 06, 2020 | Jan. 25, 2019 | Jan. 29, 2018 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 |
Stock Awards [Member] | ||||||
Summary of stock option activity [Roll Forward] | ||||||
Beginning balance nonvested (in shares) | 750 | 128,574 | 360,344 | |||
Nonvested, Weighted Average Grant Date Fair Value (in usd per share) | $ 15.50 | $ 13.32 | $ 13.18 | |||
Shares granted (in shares) | 11,000 | 0 | 0 | |||
Shares granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ 35.66 | $ 0 | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (375) | (126,511) | (228,991) | |||
Shares vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ 15.50 | $ 12.13 | $ 13.11 | |||
Forfeited in Period (in shares) | 0 | (1,313) | (2,779) | |||
Shares forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ 0 | $ 14.92 | $ 12.11 | |||
Ending balance nonvested (in shares) | 11,375 | 750 | 128,574 | |||
Nonvested, Weighted Average Grant Date Fair Value (in usd per share) | $ 35 | $ 15.50 | $ 13.32 | |||
Performance Shares [Member] | ||||||
Summary of stock option activity [Roll Forward] | ||||||
Beginning balance nonvested (in shares) | 1,893,473 | 1,481,976 | 1,141,016 | |||
Nonvested, Weighted Average Grant Date Fair Value (in usd per share) | $ 12.54 | $ 11.15 | $ 8.91 | |||
Shares granted (in shares) | 224,481 | 305,195 | 295,514 | 224,481 | 305,195 | 295,514 |
Shares granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ 31.80 | $ 21.50 | $ 20.60 | |||
Additional PSU awards vested from performance (in shares) | 434,666 | 235,126 | 88,151 | |||
Shares vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ 11.14 | $ 7.23 | $ 6.95 | |||
Stock issued for PSU's (in shares) | (349,210) | (125,067) | (26,212) | |||
Stock issued for PSU's, Weighted Average Grant Date Fair Value (in dollars per share) | $ 8.91 | $ 7.84 | $ 6.95 | |||
Forfeited in Period (in shares) | (332) | (3,757) | (16,493) | |||
Shares forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ 26.88 | $ 19.09 | $ 9.39 | |||
Ending balance nonvested (in shares) | 2,203,078 | 1,893,473 | 1,481,976 | |||
Nonvested, Weighted Average Grant Date Fair Value (in usd per share) | $ 14.80 | $ 12.54 | $ 11.15 |
Stockholders' Equity and Sto_12
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 | ||
Jan. 02, 2021 | Jan. 03, 2015 | 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 | $ 110 | $ 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 |
Stockholders' Equity and Sto_13
Stockholders' Equity and Stock-Based Compensation Non-employee Director Restricted Stock Awards (Details) - Director Restricted Stock Plan [Member] - $ / shares | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Summary of non-vested and restricted stock awards [Roll Forward] | |||
Ending balance nonvested (in shares) | 236,277 | 261,364 | 215,177 |
Nonvested, Weighted Average Grant Date Fair Value (in usd per share) | $ 16.89 | $ 15.49 | $ 14.91 |
Shares granted (in shares) | 48,267 | 52,990 | 61,806 |
Shares granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ 20.51 | $ 20.76 | $ 16.92 |
Restrictions Lapsed (in shares) | (73,354) | (6,803) | (1,438) |
Restrictions Lapsed, Weighted Average Grant Date Fair Value (in dollars per share) | $ 16.33 | $ 2.94 | $ 13.90 |
Forfeited in Period (in shares) | 0 | 0 | 0 |
Shares forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ 0 | $ 0 | $ 0 |
Beginning balance nonvested (in shares) | 261,364 | 215,177 | 154,809 |
Nonvested, Weighted Average Grant Date Fair Value (in usd per share) | $ 17.79 | $ 16.89 | $ 15.49 |
Comprehensive Income (Details)
Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Before-Tax Amount | |||
Actuarial (loss)/gain recognized | $ (9,470) | $ (2,202) | $ (7,901) |
Amortization of actuarial loss | 3,405 | 4,571 | 3,543 |
Actuarial prior service cost recognized | 9 | (11) | |
Amortization of curtailment | 69 | 498 | |
Amortization of prior service costs | 33 | 34 | 35 |
Amortization of settlement | (30) | 66 | (3) |
Other | 11 | 16 | 9 |
Total defined benefit pension plans | (5,982) | 2,494 | (3,830) |
Tax (Expense) or Benefit | |||
Actuarial (loss)/gain recognized | 2,547 | 211 | 2,015 |
Amortization of actuarial loss | (862) | (1,143) | (910) |
Actuarial prior service cost recognized | (2) | 3 | |
Amortization of curtailment | (15) | 0 | |
Amortization of prior service costs | (8) | (9) | (9) |
Amortization of settlement | 7 | (16) | 1 |
Other | 0 | 0 | 0 |
Total defined benefit pension plans | 1,669 | (959) | 1,100 |
Net-of-Tax Amount | |||
Actuarial (loss)/gain recognized | (6,923) | (1,991) | (5,886) |
Amortization of actuarial loss | 2,543 | 3,428 | 2,633 |
Actuarial prior service cost recognized | 7 | (8) | |
Amortization of prior service costs | 25 | 25 | 26 |
Amortization of curtailment | 54 | 498 | |
Amortization of settlement | (23) | 50 | (2) |
Other | 11 | 16 | 9 |
Total defined benefit pension plans | (4,313) | 1,535 | (2,730) |
Before-Tax Amount | |||
Foreign currency translation | 73,845 | (12,771) | (89,198) |
Tax (Expense) or Benefit | |||
Foreign currency translation | (3,525) | 837 | 1,724 |
Net-of-Tax Amount | |||
Foreign currency translation adjustments | 70,320 | (11,934) | (87,474) |
Other comprehensive income/(loss) | 72,554 | (19,636) | (93,634) |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (4,256) | 2,651 | 2,847 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 68,298 | (16,985) | (90,787) |
Soybean Meal [Member] | |||
Before-Tax Amount | |||
Gain/(loss) reclassified to net income | 49 | (8) | |
Gain/(loss) recognized in other comprehensive income (loss) | 349 | 8 | |
Total derivatives | 398 | 0 | |
Tax (Expense) or Benefit | |||
Gain/(loss) reclassified to net income | (12) | 2 | |
Gain/(loss) recognized in other comprehensive income (loss) | (89) | (2) | |
Total derivatives | (101) | 0 | |
Net-of-Tax Amount | |||
Gain/(loss) reclassified to net income | 37 | (6) | |
Gain/(loss) recognized in other comprehensive income (loss) | 260 | 6 | |
Total derivatives, net of tax | 297 | 0 | 0 |
Total derivatives | 297 | ||
Natural Gas Swap [Member] | |||
Before-Tax Amount | |||
Gain/(loss) reclassified to net income | 14 | ||
Gain/(loss) recognized in other comprehensive income (loss) | 16 | ||
Total corn options | 30 | ||
Tax (Expense) or Benefit | |||
Gain/(loss) reclassified to net income | (3) | ||
Gain/(loss) recognized in other comprehensive income (loss) | (4) | ||
Total derivatives | (7) | ||
Net-of-Tax Amount | |||
Gain/(loss) reclassified to net income | 11 | ||
Gain/(loss) recognized in other comprehensive income (loss) | 12 | ||
Total derivatives, net of tax | 0 | 0 | 23 |
Total derivatives | 23 | ||
Corn Option [Member] | |||
Before-Tax Amount | |||
Gain/(loss) reclassified to net income | 123 | 422 | (1,912) |
Gain/(loss) recognized in other comprehensive income (loss) | (7,803) | (51) | (361) |
Total corn options | (7,680) | 371 | (2,273) |
Tax (Expense) or Benefit | |||
Gain/(loss) reclassified to net income | (31) | (106) | 493 |
Gain/(loss) recognized in other comprehensive income (loss) | 1,980 | 13 | 93 |
Total derivatives | 1,949 | (93) | 586 |
Net-of-Tax Amount | |||
Gain/(loss) reclassified to net income | 92 | 316 | (1,419) |
Gain/(loss) recognized in other comprehensive income (loss) | (5,823) | (38) | (268) |
Total derivatives, net of tax | (5,731) | 278 | (1,687) |
Total derivatives | (5,731) | 278 | (1,687) |
Foreign Exchange Contract [Member] | |||
Before-Tax Amount | |||
Gain/(loss) reclassified to net income | (13,809) | 1,345 | |
Gain/(loss) recognized in other comprehensive income (loss) | 24,325 | (6,887) | 1,637 |
Total derivatives | 10,516 | (5,542) | 1,637 |
Tax (Expense) or Benefit | |||
Gain/(loss) reclassified to net income | 5,114 | (442) | |
Gain/(loss) recognized in other comprehensive income (loss) | (9,009) | 2,261 | (556) |
Total derivatives | (3,895) | 1,819 | (556) |
Net-of-Tax Amount | |||
Gain/(loss) reclassified to net income | (8,695) | 903 | |
Gain/(loss) recognized in other comprehensive income (loss) | 15,316 | (4,626) | 1,081 |
Total derivatives, net of tax | 6,621 | (3,723) | 1,081 |
Total derivatives | 6,621 | (3,723) | 1,081 |
Heating Oil Swaps And Options [Member] | |||
Before-Tax Amount | |||
Gain/(loss) recognized in other comprehensive income (loss) | 1,457 | (4,188) | |
Total derivatives | 1,457 | (4,188) | |
Tax (Expense) or Benefit | |||
Gain/(loss) recognized in other comprehensive income (loss) | (353) | 1,047 | |
Total derivatives | (353) | 1,047 | |
Net-of-Tax Amount | |||
Gain/(loss) recognized in other comprehensive income (loss) | 1,104 | (3,141) | |
Total derivatives, net of tax | $ 1,104 | $ (3,141) | $ 0 |
Comprehensive Income Reclassifi
Comprehensive Income Reclassifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Net sales | $ 1,019,839 | $ 850,569 | $ 848,673 | $ 852,842 | $ 859,428 | $ 842,049 | $ 827,324 | $ 835,104 | $ 3,571,923 | $ 3,363,905 | $ 3,387,726 | |
Cost of sales and operating expenses | 2,688,815 | 2,589,085 | 2,646,374 | |||||||||
Amortization of prior service cost | (33) | (34) | (35) | |||||||||
Amortization of actuarial loss | (3,405) | (4,571) | (3,543) | |||||||||
Amortization of curtailment | (69) | (498) | ||||||||||
Amortization of settlement | 30 | (66) | 3 | |||||||||
Income taxes | (53,289) | (59,467) | (12,031) | |||||||||
Net income | $ 44,745 | $ 101,125 | $ 65,439 | $ 85,510 | $ 242,609 | $ 25,721 | $ 26,258 | $ 18,012 | 296,819 | 312,600 | 101,496 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Net income | 5,967 | (4,722) | (1,741) | |||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | Soybean Meal [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Net sales | (49) | 0 | 8 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | Foreign Exchange Contract [Member] | ||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Net sales | 13,809 | (1,345) | 0 | |||||||||
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 | 13,637 | (1,767) | 1,906 | |||||||||
Income taxes | (5,071) | 548 | (492) | |||||||||
Net income | 8,566 | (1,219) | 1,414 | |||||||||
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 | (14) | |||||||||
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 | (123) | (422) | 1,912 | |||||||||
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] | (33) | (34) | (35) | ||||||||
Amortization of actuarial loss | [1] | (3,405) | (4,571) | (3,543) | ||||||||
Amortization of curtailment | [1] | (69) | 0 | (498) | ||||||||
Amortization of settlement | [1] | 30 | (66) | 3 | ||||||||
Income from operations before income taxes | (3,477) | (4,671) | (4,073) | |||||||||
Income taxes | 878 | 1,168 | 918 | |||||||||
Net income | $ (2,599) | $ (3,503) | $ (3,155) | |||||||||
[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) $ in Thousands | 12 Months Ended |
Jan. 02, 2021USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Accumulated Other Comprehensive Income/(loss) January 2, 2016, attributable to Darling, net of tax | $ (321,847) |
Other comprehensive gain before reclassifications | 74,265 |
Amounts reclassified from accumulated other comprehensive income/(loss) | (5,967) |
Reclassification of tax effect | (4,800) |
Net current-period other comprehensive income | 68,298 |
Noncontrolling interest | (1,116) |
Accumulated Other Comprehensive Income/(loss) December 31, 2016, attributable to Darling, net of tax | (252,433) |
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 | (282,338) |
Other comprehensive gain before reclassifications | 70,320 |
Amounts reclassified from accumulated other comprehensive income/(loss) | 0 |
Net current-period other comprehensive income | 70,320 |
Noncontrolling interest | (1,116) |
Accumulated Other Comprehensive Income/(loss) December 31, 2016, attributable to Darling, net of tax | (210,902) |
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 | (5,505) |
Other comprehensive gain before reclassifications | 10,857 |
Amounts reclassified from accumulated other comprehensive income/(loss) | (8,566) |
Net current-period other comprehensive income | 2,291 |
Noncontrolling interest | 0 |
Accumulated Other Comprehensive Income/(loss) December 31, 2016, attributable to Darling, net of tax | (3,214) |
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 | (34,004) |
Other comprehensive gain before reclassifications | (6,912) |
Amounts reclassified from accumulated other comprehensive income/(loss) | 2,599 |
Net current-period other comprehensive income | (4,313) |
Noncontrolling interest | 0 |
Accumulated Other Comprehensive Income/(loss) December 31, 2016, attributable to Darling, net of tax | $ (38,317) |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2005 | Jan. 02, 2021USD ($)plan | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | ||
Fair Value Measurement [Domain] | |||||
Change in plan assets: | |||||
Fair value of plan assets at beginning of period | $ 155,702 | ||||
Fair value of plan assets at end of period | 178,978 | $ 155,702 | |||
Fair Value Measurement [Domain] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||||
Change in plan assets: | |||||
Fair value of plan assets at beginning of period | 104,189 | ||||
Fair value of plan assets at end of period | 114,143 | 104,189 | |||
Fair Value Measurement [Domain] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Change in plan assets: | |||||
Fair value of plan assets at beginning of period | 5,792 | ||||
Fair value of plan assets at end of period | 11,088 | 5,792 | |||
Fair Value Measurement [Domain] | Fair Value, Inputs, Level 3 [Member] | |||||
Change in plan assets: | |||||
Fair value of plan assets at beginning of period | 4,474 | ||||
Fair value of plan assets at end of period | 3,249 | 4,474 | |||
Projected benefit obligation at beginning of period | 212,265 | 190,666 | |||
Service cost | 3,060 | 2,696 | $ 3,064 | ||
Interest cost | 5,721 | 6,828 | 6,443 | ||
Employee contributions | 360 | 368 | |||
Plan combinations | 5,362 | 0 | |||
Employee contributions | 360 | 368 | |||
Actuarial loss | 16,427 | 20,927 | |||
Benefits paid | (8,274) | (8,120) | |||
Effect of curtailment | (747) | (43) | |||
Effect of settlement | (2,208) | (903) | |||
Other | 4,011 | (154) | |||
Projected benefit obligation at end of period | 235,977 | 212,265 | 190,666 | ||
Fair value of plan assets at beginning of period | 155,702 | 133,861 | |||
Actual return on plan assets | 16,029 | 26,014 | |||
Employer contributions | 11,460 | 4,343 | |||
Plan combinations | 4,537 | 0 | |||
Benefits paid | (8,274) | (8,120) | |||
Effect of settlement | (2,208) | (903) | |||
Other | 1,372 | 139 | |||
Fair value of plan assets at end of period | 178,978 | 155,702 | 133,861 | ||
Funded status | (56,999) | (56,563) | |||
Amounts recognized in the consolidated balance sheets consist of: | |||||
Current liability | (1,242) | (1,072) | |||
Noncurrent liability | (55,757) | (55,491) | |||
Net amount recognized | (56,999) | (56,563) | |||
Amounts recognized in accumulated other comprehensive loss consist of: | |||||
Net actuarial loss | 51,145 | 45,062 | |||
Prior service cost | 194 | 295 | |||
Net amount recognized | [1] | 51,339 | 45,357 | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | 13,000 | 11,400 | |||
Accumulated benefit obligation | 221,238 | 201,708 | |||
Net pension cost includes the following components: | |||||
Service cost | 3,060 | 2,696 | 3,064 | ||
Interest cost | 5,721 | 6,828 | 6,443 | ||
Expected return on plan assets | (8,161) | (7,270) | (8,226) | ||
Net amortization and deferral | 3,438 | 4,605 | 3,578 | ||
Curtailment | (678) | (33) | (263) | ||
Settlement | (22) | 66 | 47 | ||
Net pension cost | $ 3,358 | $ 6,892 | $ 4,643 | ||
Weighted average assumptions used to determine benefit obligations: | |||||
Discount rate | 2.10% | 2.77% | 3.68% | ||
Rate of compensation increase | 0.45% | 0.40% | 0.42% | ||
Weighted average assumptions used to determine net periodic benefit cost for the employee benefit pension plans: | |||||
Discount rate | 2.13% | 3.33% | 2.30% | ||
Rate of increase in future compensation levels | 0.41% | 0.42% | 0.36% | ||
Expected long-term rate of return on assets | 5.92% | 6.13% | 6.13% | ||
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |||||
2021 | $ 11,947 | ||||
2022 | 10,528 | ||||
2023 | 10,953 | ||||
2024 | 12,035 | ||||
2025 | 12,938 | ||||
Years 2026 – 2030 | 66,317 | ||||
Multiemployer Plans [Abstract] | |||||
Contributions | $ 3,229 | $ 3,626 | $ 3,547 | ||
Number Of Multiemployer Plans, Withdrawal Obligation | plan | 5 | ||||
Multiemployer Plans, Withdrawal Obligation | $ 2,700 | ||||
Investment Horizon of Greater Than | ten years | ||||
Multiemployer Plans, Withdrawal Obligation, Settlement | $ 2,500 | ||||
Foreign Plan [Member] | |||||
Weighted average assumptions used to determine net periodic benefit cost for the employee benefit pension plans: | |||||
Expected long-term rate of return on assets | 1.80% | ||||
Fair Value, Inputs, Level 3 [Member] | |||||
Change in plan assets: | |||||
Fair value of plan assets at beginning of period | $ 4,474 | 3,337 | |||
Fair value of plan assets at end of period | 3,249 | 4,474 | 3,337 | ||
Western Conference Of Teamsters Pension Plan [Member] | |||||
Multiemployer Plans [Abstract] | |||||
Contributions | [2] | 1,429 | 1,514 | 1,505 | |
Central States, Southeast and Southwest Areas Pension Plan [Member] | |||||
Multiemployer Plans [Abstract] | |||||
Contributions | [3],[4] | 886 | 916 | 978 | |
Multiemployer Plans, IRS Extended Amortization Period | 10 years | ||||
Other Multiemployer Plans [Member] | |||||
Multiemployer Plans [Abstract] | |||||
Contributions | $ 914 | 1,196 | $ 1,064 | ||
Maximum [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Multiemployer Plan, Contributions To Individual Plan, Percent | 5.00% | ||||
Multiemployer Plans [Abstract] | |||||
Investment Objectives Achievement Period | 7 years | ||||
Maximum [Member] | Equity Securities [Member] | UNITED STATES | |||||
Multiemployer Plans [Abstract] | |||||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum (Deprecated 2017-01-31) | 65 | ||||
Maximum [Member] | Fixed Income Securities [Member] | UNITED STATES | |||||
Multiemployer Plans [Abstract] | |||||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum (Deprecated 2017-01-31) | 80 | ||||
Minimum [Member] | |||||
Multiemployer Plans [Abstract] | |||||
Investment Objectives Achievement Period | 5 years | ||||
Minimum [Member] | Equity Securities [Member] | UNITED STATES | |||||
Multiemployer Plans [Abstract] | |||||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum (Deprecated 2017-01-31) | 20 | ||||
Minimum [Member] | Fixed Income Securities [Member] | UNITED STATES | |||||
Multiemployer Plans [Abstract] | |||||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum (Deprecated 2017-01-31) | 35 | ||||
Estimate of Fair Value Measurement [Member] | |||||
Change in plan assets: | |||||
Fair value of plan assets at beginning of period | $ 114,455 | ||||
Fair value of plan assets at end of period | 128,480 | 114,455 | |||
Estimate of Fair Value Measurement [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||||
Change in plan assets: | |||||
Fair value of plan assets at beginning of period | 104,189 | ||||
Fair value of plan assets at end of period | 114,143 | 104,189 | |||
Estimate of Fair Value Measurement [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Change in plan assets: | |||||
Fair value of plan assets at beginning of period | 5,792 | ||||
Fair value of plan assets at end of period | 11,088 | 5,792 | |||
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 | 4,474 | ||||
Fair value of plan assets at end of period | 3,249 | 4,474 | |||
Estimate of Fair Value Measurement [Member] | Fixed Income, Long Term [Member] | |||||
Change in plan assets: | |||||
Fair value of plan assets at beginning of period | 16,154 | ||||
Fair value of plan assets at end of period | 20,082 | 16,154 | |||
Estimate of Fair Value Measurement [Member] | Fixed Income, Long Term [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||||
Change in plan assets: | |||||
Fair value of plan assets at beginning of period | 16,154 | ||||
Fair value of plan assets at end of period | 20,082 | 16,154 | |||
Estimate of Fair Value Measurement [Member] | Fixed Income, Long Term [Member] | Significant Other Observable 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 | 3,448 | ||||
Fair value of plan assets at end of period | 3,585 | 3,448 | |||
Estimate of Fair Value Measurement [Member] | Fixed Income, Short Term [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||||
Change in plan assets: | |||||
Fair value of plan assets at beginning of period | 3,448 | ||||
Fair value of plan assets at end of period | 3,585 | 3,448 | |||
Estimate of Fair Value Measurement [Member] | Fixed Income, Short Term [Member] | Significant Other Observable 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 | 52,420 | ||||
Fair value of plan assets at end of period | 55,454 | 52,420 | |||
Estimate of Fair Value Measurement [Member] | Equity Securities, Domestic [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||||
Change in plan assets: | |||||
Fair value of plan assets at beginning of period | 52,420 | ||||
Fair value of plan assets at end of period | 55,454 | 52,420 | |||
Estimate of Fair Value Measurement [Member] | Equity Securities, Domestic [Member] | Significant Other Observable 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 | 32,167 | ||||
Fair value of plan assets at end of period | 35,022 | 32,167 | |||
Estimate of Fair Value Measurement [Member] | Equity Securities, International [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||||
Change in plan assets: | |||||
Fair value of plan assets at beginning of period | 32,167 | ||||
Fair value of plan assets at end of period | 35,022 | 32,167 | |||
Estimate of Fair Value Measurement [Member] | Equity Securities, International [Member] | Significant Other Observable 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 | 10,266 | ||||
Fair value of plan assets at end of period | 14,337 | 10,266 | |||
Estimate of Fair Value Measurement [Member] | Insurance Contracts [Member] | Quoted Prices in Active Markets for Identical Assets (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] | Significant Other Observable Inputs (Level 2) [Member] | |||||
Change in plan assets: | |||||
Fair value of plan assets at beginning of period | 5,792 | ||||
Fair value of plan assets at end of period | 11,088 | 5,792 | |||
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 | 4,474 | ||||
Fair value of plan assets at end of period | 3,249 | 4,474 | |||
Portion at Other than Fair Value Measurement [Member] | |||||
Change in plan assets: | |||||
Fair value of plan assets at beginning of period | 41,247 | ||||
Fair value of plan assets at end of period | $ 50,498 | $ 41,247 | |||
[1] | Amounts do not include deferred taxes of $13.0 million and $11.4 million at January 2, 2021 and December 28, 2019, respectively. | ||||
[2] | The Company has several plants that participate in the Western Conference of Teamsters Pension Plan under collective bargaining agreements that require minimum funding contributions. Certain of these agreements have expired and are being renegotiated with others having expiration dates through April 1, 2025. | ||||
[3] | In July 2005 this plan received a 10 year extension from the IRS for amortizing unfunded liabilities. | ||||
[4] | The Company has several processing plants that participate in the Central States, Southeast and Southwest Areas Pension Plan under collective bargaining agreements that require minimum funding contributions. The agreements have expiration dates through May 1, 2023. |
Employee Benefit Plans Employee
Employee Benefit Plans Employee Benefit Plans Narrative 1 (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2005 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Employee Benefit Plans [Line Items] | ||||
Investment Horizon of Greater Than | ten years | |||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Tax | $ 13 | $ 11.4 | ||
Domestic Pension Plan Benefits Percentage Of The Projected Benefit Obligation | 71.00% | 73.00% | ||
Domestic Defined Benefit Plan Cash Contributions By Employer | $ 7.5 | $ 0.9 | ||
Foreign Defined Benefit Plan Cash Contributions By Employer | $ 4 | 3.4 | ||
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 | |||
Foreign Plan [Member] | ||||
Employee Benefit Plans [Line Items] | ||||
Defined Contribution Plan, Employer Contribution Amount | $ 8.5 | 8.4 | $ 7.8 | |
UNITED STATES | ||||
Employee Benefit Plans [Line Items] | ||||
Defined Contribution Plan, Employer Contribution Amount | $ 11.3 | $ 10.6 | $ 10.1 | |
UNITED STATES | Maximum [Member] | Equity Securities [Member] | ||||
Employee Benefit Plans [Line Items] | ||||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum (Deprecated 2017-01-31) | 65 | |||
UNITED STATES | Maximum [Member] | Fixed Income Securities [Member] | ||||
Employee Benefit Plans [Line Items] | ||||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum (Deprecated 2017-01-31) | 80 | |||
UNITED STATES | Minimum [Member] | Equity Securities [Member] | ||||
Employee Benefit Plans [Line Items] | ||||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum (Deprecated 2017-01-31) | 20 | |||
UNITED STATES | Minimum [Member] | Fixed Income Securities [Member] | ||||
Employee Benefit Plans [Line Items] | ||||
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum (Deprecated 2017-01-31) | 35 |
Employee Benefit Plans Employ_2
Employee Benefit Plans Employee Benefit Plans Narrative 2 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Employee Benefit Plans [Line Items] | |||
Expected long-term rate of return on assets | 5.92% | 6.13% | 6.13% |
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | $ 3.8 | ||
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% | ||
Emerging Market [Member] | |||
Employee Benefit Plans [Line Items] | |||
Concentration Risk, Percentage | 10.00% | ||
UNITED STATE AND CANADA [Member] | |||
Employee Benefit Plans [Line Items] | |||
Expected long-term rate of return on assets | 6.40% | ||
Foreign Plan [Member] | |||
Employee Benefit Plans [Line Items] | |||
Expected long-term rate of return on assets | 1.80% |
Employee Benefit Plans Employ_3
Employee Benefit Plans Employee Benefit Plans Narrative 3 (Details) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2021USD ($)plan | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | |
Employee Benefit Plans [Abstract] | |||
Number of Multiemployer Plans, Certified Red Zone | plan | 5 | ||
Number of Multiemployer Plans, Certified Yellow Zone | plan | 2 | ||
Multiemployer Plans, Withdrawal Obligation | $ | $ 2,700 | ||
Contributions | $ | $ 3,229 | $ 3,626 | $ 3,547 |
Employee Benefit Plans Employ_4
Employee Benefit Plans Employee Benefit Plans Level 3 (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of plan assets at beginning of period | $ 155,702 | $ 133,861 |
Fair value of plan assets at end of period | 178,978 | 155,702 |
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 | 4,474 | 3,337 |
Unrealized gains relating to instruments still held in the reporting period. | 400 | 1,168 |
Purchases, sales, and settlements | (1,956) | 0 |
Exchange rate changes | 331 | (31) |
Fair value of plan assets at end of period | $ 3,249 | $ 4,474 |
Derivatives (Details)
Derivatives (Details) € in Thousands, £ in Thousands, zł in Thousands, $ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Jan. 02, 2021USD ($) | Sep. 26, 2020USD ($) | Jun. 27, 2020USD ($) | Mar. 28, 2020USD ($) | Dec. 28, 2019USD ($) | Sep. 28, 2019USD ($) | Jun. 29, 2019USD ($) | Mar. 30, 2019USD ($) | Jan. 02, 2021USD ($)month | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Jan. 02, 2021EUR (€) | Jan. 02, 2021PLN (zł) | Jan. 02, 2021GBP (£) | Jan. 02, 2021CAD ($) | |
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 | $ 3,000 | ||||||||||||||
Net income | $ 46,139 | $ 101,605 | $ 66,495 | $ 86,091 | $ 243,446 | $ 26,837 | $ 31,044 | $ 19,640 | 300,330 | $ 320,967 | $ 105,944 | ||||
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||
Asset Derivatives Fair Value | 11,600 | 1,300 | 11,600 | 1,300 | |||||||||||
Corn Option [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||
Asset Derivatives Fair Value | (6,800) | 400 | (6,800) | 400 | |||||||||||
Commodity Contract [Member] | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||
Forward purchase amount | 84,700 | 84,700 | |||||||||||||
Soybean Meal [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||
Asset Derivatives Fair Value | 400 | $ 0 | 400 | $ 0 | |||||||||||
Cash Flow Hedging [Member] | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||
Net income | 0 | ||||||||||||||
Short [Member] | EUR/GBP [Member] | Not Designated as Hedging Instrument [Member] | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||
Derivative, Notional Amount | € | € 2,488 | ||||||||||||||
Short [Member] | EUR/CAD | Not Designated as Hedging Instrument [Member] | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||
Derivative, Notional Amount | € | 32 | ||||||||||||||
Short [Member] | PLN/EUR [Member] | Not Designated as Hedging Instrument [Member] | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||
Derivative, Notional Amount | zł | zł 24,824 | ||||||||||||||
Short [Member] | PLN/USD | Not Designated as Hedging Instrument [Member] | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||
Derivative, Notional Amount | zł | zł 2,253 | ||||||||||||||
Short [Member] | GBPEUR [Member] | Not Designated as Hedging Instrument [Member] | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||
Derivative, Notional Amount | £ | £ 232 | ||||||||||||||
Short [Member] | GBP/USD | Not Designated as Hedging Instrument [Member] | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||
Derivative, Notional Amount | £ | 150 | ||||||||||||||
Short [Member] | CAD/USD | Not Designated as Hedging Instrument [Member] | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||
Derivative, Notional Amount | $ 10,205 | ||||||||||||||
Long [Member] | EUR/GBP [Member] | Not Designated as Hedging Instrument [Member] | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||
Derivative, Notional Amount | £ | £ 2,269 | ||||||||||||||
Long [Member] | EUR/CAD | Not Designated as Hedging Instrument [Member] | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||
Derivative, Notional Amount | $ 50 | ||||||||||||||
Long [Member] | PLN/EUR [Member] | Not Designated as Hedging Instrument [Member] | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||
Derivative, Notional Amount | € | 5,506 | ||||||||||||||
Long [Member] | PLN/USD | Not Designated as Hedging Instrument [Member] | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||
Derivative, Notional Amount | 608 | 608 | |||||||||||||
Long [Member] | GBPEUR [Member] | Not Designated as Hedging Instrument [Member] | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||
Derivative, Notional Amount | € | € 253 | ||||||||||||||
Long [Member] | GBP/USD | Not Designated as Hedging Instrument [Member] | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||
Derivative, Notional Amount | 200 | 200 | |||||||||||||
Long [Member] | CAD/USD | Not Designated as Hedging Instrument [Member] | |||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||
Derivative, Notional Amount | $ 8,000 | $ 8,000 |
Derivatives Derivative Effect o
Derivatives Derivative Effect of Derivatives Not Designated As Hedges (Details) - Not Designated as Hedging Instrument [Member] € in Thousands, ¥ in Thousands, ¥ in Thousands, £ in Thousands, zł in Thousands, R$ in Thousands, $ in Thousands, $ in Thousands | 12 Months Ended | |||||||||
Jan. 02, 2021USD ($) | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Jan. 02, 2021BRL (R$) | Jan. 02, 2021EUR (€) | Jan. 02, 2021PLN (zł) | Jan. 02, 2021JPY (¥) | Jan. 02, 2021CNY (¥) | Jan. 02, 2021AUD ($) | Jan. 02, 2021GBP (£) | |
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | $ (1,485) | $ 2,193 | $ 3,852 | |||||||
Foreign Exchange Contract [Member] | Foreign Currency Gain (Loss) [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | (3,840) | 1,565 | (2,160) | |||||||
Foreign Exchange Contract [Member] | Selling, General and Administrative Expenses [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | 4,976 | 1,649 | 3,040 | |||||||
Foreign Exchange Contract [Member] | Sales [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | (778) | 903 | 2,806 | |||||||
Foreign Exchange Contract [Member] | Cost of Sales [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | (664) | (452) | (1,005) | |||||||
BRI/EUR 1 [Member] | Short [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | R$ | R$ 64919 | |||||||||
BRI/EUR 1 [Member] | Long [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | € 9,645 | |||||||||
BRI/EUR 2 [Member] | Short [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | R$ | R$ 1189357 | |||||||||
BRI/EUR 2 [Member] | Long [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | 257,300 | |||||||||
EUR/USD [Member] | Short [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | 114,078 | 33,671 | ||||||||
EUR/USD [Member] | Long [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | 40,514 | 95,000 | ||||||||
EUR/PLN [Member] | Short [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | 22,229 | |||||||||
EUR/PLN [Member] | Long [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | zł | zł 100,000 | |||||||||
EUR/JPN [Member] | Short [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | 4,838 | |||||||||
EUR/JPN [Member] | Long [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | ¥ | ¥ 605,514 | |||||||||
EUR/CNY [Member] | Short [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | 15,360 | |||||||||
EUR/CNY [Member] | Long [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | ¥ | ¥ 122,801 | |||||||||
EUR/AUD [Member] | Short [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | 13,349 | |||||||||
EUR/AUD [Member] | Long [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | $ 21,850 | |||||||||
EUR/GBP [Member] | Short [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | 2,488 | |||||||||
EUR/GBP [Member] | Long [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | £ | £ 2,269 | |||||||||
PLN/EUR [Member] | Short [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | zł | zł 24,824 | |||||||||
PLN/EUR [Member] | Long [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | 5,506 | |||||||||
GBPEUR [Member] | Short [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | £ | £ 232 | |||||||||
GBPEUR [Member] | Long [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | € | € 253 | |||||||||
JPN/USD [Member] | Short [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | ¥ | 258,547 | |||||||||
JPN/USD [Member] | Long [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | 2,505 | |||||||||
Corn options and futures [Member] | Sales [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | (1,091) | 670 | 683 | |||||||
Corn options and futures [Member] | Cost of Sales [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | (50) | (1,636) | (543) | |||||||
Heating Oil Swaps And Options [Member] | Sales [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | (38) | 0 | 0 | |||||||
Heating Oil Swaps And Options [Member] | Cost of Sales [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | 0 | $ (506) | $ 1,031 | |||||||
USD/JPN1 [Member] | Short [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | $ 531 | |||||||||
USD/JPN1 [Member] | Long [Member] | ||||||||||
Derivative [Line Items] | ||||||||||
Derivative, Notional Amount | ¥ | ¥ 55,000 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | Jan. 02, 2021 | Dec. 28, 2019 |
Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 17,358 | $ 4,140 |
Total Assets | 17,358 | 4,140 |
Derivative liabilities | 9,778 | 1,593 |
Total Liabilities | 1,540,076 | 1,675,050 |
Fair Value, 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, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 17,358 | 4,140 |
Total Assets | 17,358 | 4,140 |
Derivative liabilities | 9,778 | 1,593 |
Total Liabilities | 1,540,076 | 1,675,050 |
Fair Value, 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, 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 | 298,500 | 497,475 |
Fair Value, 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, 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 | 298,500 | 497,475 |
Fair Value, 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, Recurring [Member] | Revolving Credit Facility [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 54,175 | 38,805 |
Fair Value, 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, 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 | 54,175 | 38,805 |
Fair Value, 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 5.25% Due 2027 [Member] | Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 531,300 | 531,850 |
Senior Notes 5.25% Due 2027 [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 5.25% Due 2027 [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 | 531,300 | 531,850 |
Senior Notes 5.25% Due 2027 [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 3.625% Due 2026 [Member] | Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 646,323 | 605,327 |
Senior Notes 3.625% Due 2026 [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 3.625% Due 2026 [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 | 646,323 | 605,327 |
Senior Notes 3.625% Due 2026 [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 |
Asset Impairment, Exit and Re_2
Asset Impairment, Exit and Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 02, 2021 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs and Asset Impairment Charges | $ 38,200 | $ 38,167 | $ 0 | $ 14,965 |
Asset Impairment Charges | 37,802 | $ 0 | 2,907 | |
Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs and Asset Impairment Charges | 8,400 | |||
Other Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | $ 400 | $ 3,700 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details) - Customer Concentration Risk [Member] - customer | 12 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
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 | Jun. 30, 2018Party | Nov. 30, 2019USD ($) | Mar. 31, 2016Partymi | Jan. 02, 2021USD ($)contaminant | Dec. 28, 2019USD ($) |
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 | 100 | |||
Number of Contaminants | contaminant | 8 | ||||
Gain (Loss) Related to Litigation Settlement | $ 0.6 | ||||
Insurance Environmental and Litigation Matters [Member] | |||||
Loss Contingencies [Line Items] | |||||
Reserves for insurance, environmental and litigation contingencies | $ 66.2 | $ 70.5 | |||
Insurance Settlements Receivable, Noncurrent | 27 | $ 26.2 | |||
Settled Litigation [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Number of Parties | Party | 20 | ||||
Pending Litigation [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loss Contingency, Estimate of Possible Loss | $ 165 | ||||
Loss Contingency, Number of Parties | Party | 40 | ||||
Plant, One [Member] | |||||
Loss Contingencies [Line Items] | |||||
Gain (Loss) Related to Litigation Settlement | 0.3 | ||||
Plant, Two [Member] | |||||
Loss Contingencies [Line Items] | |||||
Gain (Loss) Related to Litigation Settlement | $ 0.3 |
Business Segments (Narrative) (
Business Segments (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Jan. 02, 2021USD ($)segment | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | ||
Segment Reporting Information [Line Items] | ||||
Number of Business Segments | segment | 3 | |||
Capital expenditures: | [1] | $ 280,115 | $ 359,498 | $ 321,896 |
Fuel Ingredients [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Capital expenditures: | $ 30,638 | $ 23,964 | $ 27,121 | |
[1] | Excludes capital assets acquired by acquisition in fiscal 2020 and fiscal 2018 of approximately $18.4 million and $31.6 million, respectively. |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | $ 1,019,839 | $ 850,569 | $ 848,673 | $ 852,842 | $ 859,428 | $ 842,049 | $ 827,324 | $ 835,104 | $ 3,571,923 | $ 3,363,905 | $ 3,387,726 | |
Cost of sales and operating expenses | 2,688,815 | 2,589,085 | 2,646,374 | |||||||||
Loss/(gain) on sale of assets | (426) | 20,582 | (709) | |||||||||
Selling, general and administrative expense | 378,496 | 358,523 | 309,264 | |||||||||
Restructuring Costs and Asset Impairment Charges | 38,200 | 38,167 | 0 | 14,965 | ||||||||
Depreciation and amortization | 350,178 | 325,510 | 321,192 | |||||||||
Equity In net income of Diamond Green Diesel | 315,095 | 364,452 | 159,779 | |||||||||
Segment operating income/(loss) | 74,364 | 127,455 | 106,288 | 122,829 | 293,287 | 59,859 | 74,124 | 48,551 | 430,936 | 475,821 | 255,001 | |
Equity in net income of other unconsolidated subsidiaries | 3,193 | 428 | (550) | |||||||||
Total other expense | (80,510) | (95,815) | (136,476) | |||||||||
Income before income taxes | 56,370 | $ 106,417 | $ 86,441 | $ 104,391 | 279,013 | $ 37,687 | $ 38,820 | $ 24,914 | 353,619 | 380,434 | 117,975 | |
Total assets | 5,613,331 | 5,345,258 | 5,613,331 | 5,345,258 | ||||||||
Capital expenditures: | [1] | 280,115 | 359,498 | 321,896 | ||||||||
Capital assets | 18,400 | 18,400 | 31,600 | |||||||||
Long-Lived Assets | 4,626,337 | 4,427,970 | 4,626,337 | 4,427,970 | ||||||||
North America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 1,960,503 | 1,889,573 | 1,817,001 | |||||||||
Long-Lived Assets | 3,056,047 | 2,991,537 | 3,056,047 | 2,991,537 | ||||||||
Europe | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 1,296,668 | 1,153,787 | 1,225,461 | |||||||||
Long-Lived Assets | 1,357,070 | 1,228,807 | 1,357,070 | 1,228,807 | ||||||||
China | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 202,093 | 194,625 | 210,657 | |||||||||
Long-Lived Assets | 127,549 | 124,874 | 127,549 | 124,874 | ||||||||
South America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 38,238 | 51,168 | 53,206 | |||||||||
Long-Lived Assets | 74,720 | 73,477 | 74,720 | 73,477 | ||||||||
Other | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Long-Lived Assets | 10,951 | 9,275 | 10,951 | 9,275 | ||||||||
Feed Ingredients [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 2,072,104 | 1,970,561 | 1,952,555 | |||||||||
Cost of sales and operating expenses | 1,544,524 | 1,519,596 | 1,497,973 | |||||||||
Gross Margin | 527,580 | 450,965 | 454,582 | |||||||||
Loss/(gain) on sale of assets | 19 | (7,720) | 725 | |||||||||
Selling, general and administrative expense | 209,748 | 200,487 | 176,722 | |||||||||
Restructuring Costs and Asset Impairment Charges | 0 | 0 | ||||||||||
Depreciation and amortization | 221,187 | 203,456 | 194,292 | |||||||||
Equity In net income of Diamond Green Diesel | 0 | 0 | 0 | |||||||||
Segment operating income/(loss) | 96,626 | 54,742 | 82,843 | |||||||||
Equity in net income of other unconsolidated subsidiaries | 3,193 | 428 | (550) | |||||||||
Segment income/(loss) | 99,819 | 55,170 | 82,293 | |||||||||
Total assets | 2,708,922 | 2,653,363 | 2,708,922 | 2,653,363 | ||||||||
Capital expenditures: | 176,530 | 229,415 | 237,215 | |||||||||
Feed Ingredients [Member] | North America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 1,694,705 | 1,635,382 | 1,586,930 | |||||||||
Feed Ingredients [Member] | Europe | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 352,748 | 309,097 | 329,341 | |||||||||
Feed Ingredients [Member] | China | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 13,676 | 16,342 | 28,288 | |||||||||
Feed Ingredients [Member] | South America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 0 | 0 | 0 | |||||||||
Food Ingredients [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 1,185,701 | 1,119,085 | 1,139,126 | |||||||||
Cost of sales and operating expenses | 920,682 | 864,618 | 918,141 | |||||||||
Gross Margin | 265,019 | 254,467 | 220,985 | |||||||||
Loss/(gain) on sale of assets | 482 | (13,175) | (282) | |||||||||
Selling, general and administrative expense | 97,406 | 97,363 | 91,546 | |||||||||
Restructuring Costs and Asset Impairment Charges | 0 | 14,965 | ||||||||||
Depreciation and amortization | 83,752 | 79,671 | 80,988 | |||||||||
Equity In net income of Diamond Green Diesel | 0 | 0 | 0 | |||||||||
Segment operating income/(loss) | 83,379 | 90,608 | 33,768 | |||||||||
Equity in net income of other unconsolidated subsidiaries | 0 | 0 | 0 | |||||||||
Segment income/(loss) | 83,379 | 90,608 | 33,768 | |||||||||
Total assets | 1,335,769 | 1,345,526 | 1,335,769 | 1,345,526 | ||||||||
Capital expenditures: | 68,250 | 85,501 | 51,659 | |||||||||
Food Ingredients [Member] | North America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 244,929 | 214,623 | 181,213 | |||||||||
Food Ingredients [Member] | Europe | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 650,671 | 609,999 | 648,933 | |||||||||
Food Ingredients [Member] | China | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 188,417 | 178,283 | 182,369 | |||||||||
Food Ingredients [Member] | South America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 38,238 | 51,168 | 53,206 | |||||||||
Fuel Ingredients [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 314,118 | 274,259 | 296,045 | |||||||||
Cost of sales and operating expenses | 223,609 | 204,871 | 230,260 | |||||||||
Gross Margin | 90,509 | 69,388 | 65,785 | |||||||||
Loss/(gain) on sale of assets | (75) | 313 | 266 | |||||||||
Selling, general and administrative expense | 16,014 | 2,762 | (4,770) | |||||||||
Restructuring Costs and Asset Impairment Charges | 38,167 | 0 | ||||||||||
Depreciation and amortization | 34,218 | 31,946 | 34,981 | |||||||||
Equity In net income of Diamond Green Diesel | 315,095 | 364,452 | 159,779 | |||||||||
Segment operating income/(loss) | 317,280 | 398,819 | 195,087 | |||||||||
Equity in net income of other unconsolidated subsidiaries | 0 | 0 | 0 | |||||||||
Segment income/(loss) | 317,280 | 398,819 | 195,087 | |||||||||
Total assets | 1,160,132 | 1,087,701 | 1,160,132 | 1,087,701 | ||||||||
Capital expenditures: | 30,638 | 23,964 | 27,121 | |||||||||
Fuel Ingredients [Member] | North America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 20,869 | 39,568 | 48,858 | |||||||||
Fuel Ingredients [Member] | Europe | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 293,249 | 234,691 | 247,187 | |||||||||
Fuel Ingredients [Member] | China | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 0 | 0 | 0 | |||||||||
Fuel Ingredients [Member] | South America | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 0 | 0 | 0 | |||||||||
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 | |||||||||
Loss/(gain) on sale of assets | 0 | 0 | 0 | |||||||||
Selling, general and administrative expense | 55,328 | 57,911 | 45,766 | |||||||||
Restructuring Costs and Asset Impairment Charges | 0 | 0 | ||||||||||
Depreciation and amortization | 11,021 | 10,437 | 10,931 | |||||||||
Equity In net income of Diamond Green Diesel | 0 | 0 | 0 | |||||||||
Segment operating income/(loss) | (66,349) | (68,348) | (56,697) | |||||||||
Equity in net income of other unconsolidated subsidiaries | 0 | 0 | 0 | |||||||||
Segment income/(loss) | (66,349) | (68,348) | (56,697) | |||||||||
Total assets | 408,508 | 258,668 | 408,508 | 258,668 | ||||||||
Capital expenditures: | 4,697 | 20,618 | 5,901 | |||||||||
Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 3,571,923 | 3,363,905 | 3,387,726 | |||||||||
Cost of sales and operating expenses | 2,688,815 | 2,589,085 | 2,646,374 | |||||||||
Gross Margin | 883,108 | 774,820 | 741,352 | |||||||||
Loss/(gain) on sale of assets | 426 | (20,582) | 709 | |||||||||
Selling, general and administrative expense | 378,496 | 358,523 | 309,264 | |||||||||
Restructuring Costs and Asset Impairment Charges | 38,167 | 14,965 | ||||||||||
Depreciation and amortization | 350,178 | 325,510 | 321,192 | |||||||||
Equity In net income of Diamond Green Diesel | 315,095 | 364,452 | 159,779 | |||||||||
Segment operating income/(loss) | 430,936 | 475,821 | 255,001 | |||||||||
Equity in net income of other unconsolidated subsidiaries | 3,193 | 428 | (550) | |||||||||
Segment income/(loss) | 434,129 | 476,249 | $ 254,451 | |||||||||
Total assets | $ 5,613,331 | $ 5,345,258 | $ 5,613,331 | $ 5,345,258 | ||||||||
[1] | Excludes capital assets acquired by acquisition in fiscal 2020 and fiscal 2018 of approximately $18.4 million and $31.6 million, respectively. |
Revenue (Details)
Revenue (Details) $ in Millions | 12 Months Ended | |
Jan. 02, 2021USD ($)source | Dec. 28, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Number of Revenue Sources | source | 2 | |
Revenue recognized | $ | $ 54 | $ 41 |
Revenue Impact of changes in ac
Revenue Impact of changes in accounting polices (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |||||||||||
Net sales | $ 1,019,839 | $ 850,569 | $ 848,673 | $ 852,842 | $ 859,428 | $ 842,049 | $ 827,324 | $ 835,104 | $ 3,571,923 | $ 3,363,905 | $ 3,387,726 |
Revenue Disaggregation of reven
Revenue Disaggregation of revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 1,019,839 | $ 850,569 | $ 848,673 | $ 852,842 | $ 859,428 | $ 842,049 | $ 827,324 | $ 835,104 | $ 3,571,923 | $ 3,363,905 | $ 3,387,726 |
North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,960,503 | 1,889,573 | 1,817,001 | ||||||||
Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,296,668 | 1,153,787 | 1,225,461 | ||||||||
China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 202,093 | 194,625 | 210,657 | ||||||||
South America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 38,238 | 51,168 | 53,206 | ||||||||
Other Geographical Areas [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 74,421 | 74,752 | 81,401 | ||||||||
Fats [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 804,737 | 718,234 | 728,605 | ||||||||
Used Cooking Oil [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 176,691 | 185,705 | 166,634 | ||||||||
Proteins [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 830,195 | 791,284 | 842,878 | ||||||||
Bakery [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 183,759 | 191,551 | 180,227 | ||||||||
Other Rendering [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 178,601 | 167,870 | 129,273 | ||||||||
Food Ingredients, Products and Services [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 947,928 | 894,761 | 886,042 | ||||||||
Bioenergy [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 293,249 | 234,691 | 247,187 | ||||||||
Biofuels [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 20,869 | 39,568 | 48,858 | ||||||||
Other, Products And Services [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 135,894 | 140,241 | 158,022 | ||||||||
Food Ingredients [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,185,701 | 1,119,085 | 1,139,126 | ||||||||
Food Ingredients [Member] | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 244,929 | 214,623 | 181,213 | ||||||||
Food Ingredients [Member] | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 650,671 | 609,999 | 648,933 | ||||||||
Food Ingredients [Member] | China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 188,417 | 178,283 | 182,369 | ||||||||
Food Ingredients [Member] | South America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 38,238 | 51,168 | 53,206 | ||||||||
Food Ingredients [Member] | Other Geographical Areas [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 63,446 | 65,012 | 73,405 | ||||||||
Food Ingredients [Member] | Fats [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 142,963 | 133,898 | 163,815 | ||||||||
Food Ingredients [Member] | Used Cooking Oil [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Food Ingredients [Member] | Proteins [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Food Ingredients [Member] | Bakery [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Food Ingredients [Member] | Other Rendering [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Food Ingredients [Member] | Food Ingredients, Products and Services [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 947,928 | 894,761 | 886,042 | ||||||||
Food Ingredients [Member] | Bioenergy [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Food Ingredients [Member] | Biofuels [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Food Ingredients [Member] | Other, Products And Services [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 94,810 | 90,426 | 89,269 | ||||||||
Fuel Ingredients [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 314,118 | 274,259 | 296,045 | ||||||||
Fuel Ingredients [Member] | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 20,869 | 39,568 | 48,858 | ||||||||
Fuel Ingredients [Member] | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 293,249 | 234,691 | 247,187 | ||||||||
Fuel Ingredients [Member] | China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Fuel Ingredients [Member] | South America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Fuel Ingredients [Member] | Other Geographical Areas [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Fuel Ingredients [Member] | Fats [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Fuel Ingredients [Member] | Used Cooking Oil [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Fuel Ingredients [Member] | Proteins [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Fuel Ingredients [Member] | Bakery [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Fuel Ingredients [Member] | Other Rendering [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Fuel Ingredients [Member] | Food Ingredients, Products and Services [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Fuel Ingredients [Member] | Bioenergy [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 293,249 | 234,691 | 247,187 | ||||||||
Fuel Ingredients [Member] | Biofuels [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 20,869 | 39,568 | 48,858 | ||||||||
Fuel Ingredients [Member] | Other, Products And Services [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Feed Ingredients [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,072,104 | 1,970,561 | 1,952,555 | ||||||||
Feed Ingredients [Member] | North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,694,705 | 1,635,382 | 1,586,930 | ||||||||
Feed Ingredients [Member] | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 352,748 | 309,097 | 329,341 | ||||||||
Feed Ingredients [Member] | China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 13,676 | 16,342 | 28,288 | ||||||||
Feed Ingredients [Member] | South America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Feed Ingredients [Member] | Other Geographical Areas [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 10,975 | 9,740 | 7,996 | ||||||||
Feed Ingredients [Member] | Fats [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 661,774 | 584,336 | 564,790 | ||||||||
Feed Ingredients [Member] | Used Cooking Oil [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 176,691 | 185,705 | 166,634 | ||||||||
Feed Ingredients [Member] | Proteins [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 830,195 | 791,284 | 842,878 | ||||||||
Feed Ingredients [Member] | Bakery [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 183,759 | 191,551 | 180,227 | ||||||||
Feed Ingredients [Member] | Other Rendering [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 178,601 | 167,870 | 129,273 | ||||||||
Feed Ingredients [Member] | Food Ingredients, Products and Services [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Feed Ingredients [Member] | Bioenergy [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Feed Ingredients [Member] | Biofuels [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Feed Ingredients [Member] | Other, Products And Services [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 41,084 | $ 49,815 | $ 68,753 |
Revenue Long-Term Performance O
Revenue Long-Term Performance Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized | $ 54 | $ 41 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-02 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Expected timing of satisfaction | 2 years | |
Remaining performance obligation | $ 168.6 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Jan. 02, 2021 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Jan. 02, 2021 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Investment [Line Items] | ||||||||||||
Net sales | $ 1,019,839 | $ 850,569 | $ 848,673 | $ 852,842 | $ 859,428 | $ 842,049 | $ 827,324 | $ 835,104 | $ 3,571,923 | $ 3,363,905 | $ 3,387,726 | |
Segment operating income/(loss) | 74,364 | 127,455 | 106,288 | 122,829 | 293,287 | 59,859 | 74,124 | 48,551 | 430,936 | 475,821 | 255,001 | |
Income from operations before income taxes | 56,370 | 106,417 | 86,441 | 104,391 | 279,013 | 37,687 | 38,820 | 24,914 | 353,619 | 380,434 | 117,975 | |
Net income | 46,139 | 101,605 | 66,495 | 86,091 | 243,446 | 26,837 | 31,044 | 19,640 | 300,330 | 320,967 | 105,944 | |
Net income attributable to noncontrolling interests | (1,394) | (480) | (1,056) | (581) | (837) | (1,116) | (4,786) | (1,628) | (3,511) | (8,367) | (4,448) | |
Net income attributable to Darling | $ 44,745 | $ 101,125 | $ 65,439 | $ 85,510 | $ 242,609 | $ 25,721 | $ 26,258 | $ 18,012 | $ 296,819 | $ 312,600 | $ 101,496 | |
Basic (in dollars per share) | $ 0.28 | $ 0.62 | $ 0.40 | $ 0.52 | $ 1.48 | $ 0.16 | $ 0.16 | $ 0.11 | $ 1.83 | $ 1.90 | $ 0.62 | |
Diluted (in dollars per share) | $ 0.27 | $ 0.61 | $ 0.39 | $ 0.51 | $ 1.44 | $ 0.15 | $ 0.16 | $ 0.11 | $ 1.78 | $ 1.86 | $ 0.60 | |
Cost of sales and operating expenses | $ 2,688,815 | $ 2,589,085 | $ 2,646,374 | |||||||||
Restructuring Costs and Asset Impairment Charges | $ 38,200 | 38,167 | 0 | 14,965 | ||||||||
Diamond Green Diesel Holdings LLC Joint Venture [Member] | ||||||||||||
Investment [Line Items] | ||||||||||||
Income Tax Credits and Adjustments | $ 234,400 | $ 287,900 | $ 274,700 | $ 155,900 | $ 160,400 |
Related Party Transactions (Det
Related Party Transactions (Details) | May 01, 2019USD ($) | Jan. 02, 2021USD ($) | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Feb. 25, 2020USD ($)agreement |
Related Party Transaction [Line Items] | |||||
Repayments of Long-term Debt | $ 232,726,000 | $ 581,163,000 | $ 686,628,000 | ||
Number Of Terminaling Agreements | agreement | 2 | ||||
Related Party, Unrecorded Unconditional Guarantee | $ 50,000,000 | ||||
Diamond Green Diesel Holdings LLC Joint Venture [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue from Related Parties | 264,100,000 | 208,700,000 | 131,800,000 | ||
Accounts Receivable, Related Parties, Current | 14,200,000 | 17,800,000 | |||
Related Party, Sales Eliminated | 7,400,000 | 5,100,000 | 4,600,000 | ||
Deferred Revenue, Additions | 1,400,000 | $ 800,000 | $ 900,000 | ||
Revolving Credit Facility [Member] | Revolving Loan Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000,000 | ||||
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 | $ 25,000,000 | ||||
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% |