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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
FORM 10-Q
 
 (Mark One)      
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended
April 2, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
  For the transition period from _______ to _______
 
Commission File Number   001-13323

DARLING INGREDIENTS INC.
(Exact name of registrant as specified in its charter) 
Delaware36-2495346
 (State or other jurisdiction     (I.R.S. Employer
of incorporation or organization)   Identification Number)
 5601 N MacArthur Blvd., Irving, Texas     75038
(Address of principal executive offices)     (Zip Code)

Registrant's telephone number, including area code:  (972) 717-0300

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock $0.01 par value per shareDARNew York Stock Exchange(“NYSE”)
 
    Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.       Yes      No
 
    Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).        Yes      No 

 Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer    
Non-accelerated filer  Smaller reporting company       
Emerging growth company
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of Exchange Act.
 
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes      No 
 
There were 161,514,066 shares of common stock, $0.01 par value, outstanding at May 5, 2022.



DARLING INGREDIENTS INC. AND SUBSIDIARIES
FORM 10-Q FOR THE QUARTERLY PERIOD ENDED APRIL 2, 2022
 
 
TABLE OF CONTENTS   

 
 
  Page No.
  
   
 
 
  
   
 
  
   
 
  
   
 
   
   
 41
   
   
   
  
   
 
2





DARLING INGREDIENTS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
April 2, 2022 and January 1, 2022
(in thousands, except share data)
April 2,
2022
January 1,
2022
ASSETS(unaudited)
Current assets:
Cash and cash equivalents$99,460 $68,906 
Restricted cash100 166 
Accounts receivable, less allowance for bad debts of $9,161 at
   April 2, 2022 and $8,196 at January 1, 2022
517,783 469,092 
Inventories491,694 457,465 
Prepaid expenses60,562 53,711 
Income taxes refundable25,047 1,075 
Other current assets64,387 38,599 
Total current assets1,259,033 1,089,014 
Property, plant and equipment, less accumulated depreciation of $1,894,760 at
   April 2, 2022 and $1,855,420 at January 1, 2022
1,867,880 1,840,080 
Intangible assets, less accumulated amortization of $576,357 at
   April 2, 2022 and $560,470 at January 1, 2022
409,627 397,801 
Goodwill1,236,524 1,219,116 
Investment in unconsolidated subsidiaries1,563,840 1,349,247 
Operating lease right-of-use assets165,128 155,464 
Other assets97,709 66,795 
Deferred income taxes15,875 16,211 
 $6,615,616 $6,133,728 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Current liabilities:  
Current portion of long-term debt$35,337 $24,407 
Accounts payable, principally trade351,253 307,118 
Income taxes payable25,117 32,310 
Current operating lease liabilities41,649 38,168 
Accrued expenses360,058 350,681 
Total current liabilities813,414 752,684 
Long-term debt, net of current portion1,677,925 1,438,974 
Long-term operating lease liabilities125,242 120,314 
Other non-current liabilities109,647 111,029 
Deferred income taxes393,738 362,942 
Total liabilities3,119,966 2,785,943 
Commitments and contingencies
Stockholders’ equity:  
     Common stock, $0.01 par value; 250,000,000 shares authorized; 173,384,469 and
        171,734,603 shares issued at April 2, 2022 and January 1, 2022,
        respectively
1,734 1,717 
Additional paid-in capital1,637,930 1,627,816 
     Treasury stock, at cost; 11,880,712 and 10,942,599 shares at
       April 2, 2022 and January 1, 2022, respectively
(438,906)(374,721)
Accumulated other comprehensive loss(311,369)(321,690)
Retained earnings2,535,891 2,347,838 
Total Darling's stockholders’ equity3,425,280 3,280,960 
Noncontrolling interests70,370 66,825 
 Total stockholders' equity3,495,650 3,347,785 
 $6,615,616 $6,133,728 
 The accompanying notes are an integral part of these consolidated financial statements.
3


DARLING INGREDIENTS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended April 2, 2022 and April 3, 2021
(in thousands, except per share data)
(unaudited)


 
Three Months Ended
 April 2,
2022
April 3,
2021
Net sales$1,366,334 $1,046,716 
Costs and expenses:  
Cost of sales and operating expenses1,020,577 772,784 
Gain on sale of assets(389)(64)
Selling, general and administrative expenses102,032 97,398 
Restructuring and asset impairment charges 778 
Acquisition and integration costs3,773  
Depreciation and amortization79,246 78,534 
Total costs and expenses1,205,239 949,430 
 Equity in net income of Diamond Green Diesel
71,804 102,225 
Operating income232,899 199,511 
Other expense:  
Interest expense(15,603)(16,428)
Foreign currency loss(1,100)(410)
Other expense, net(742)(1,159)
Total other expense(17,445)(17,997)
Equity in net income of other unconsolidated subsidiaries1,360 612 
Income before income taxes216,814 182,126 
Income tax expense26,083 28,708 
Net income190,731 153,418 
Net income attributable to noncontrolling interests(2,678)(1,652)
Net income attributable to Darling$188,053 $151,766 
Basic income per share$1.17 $0.93 
Diluted income per share$1.14 $0.90 

 



The accompanying notes are an integral part of these consolidated financial statements.
4


DARLING INGREDIENTS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
Three months ended April 2, 2022 and April 3, 2021
(in thousands)
(unaudited)

Three Months Ended
 April 2, 2022April 3, 2021
Net income$190,731 $153,418 
Other comprehensive income/(loss), net of tax:  
Foreign currency translation3,382 (38,222)
Pension adjustments429 792 
Soybean meal derivative adjustments(240)(257)
Corn option derivative adjustments(5,056)(800)
Heating oil derivative adjustments(16,762)3,464 
Foreign exchange derivative adjustments29,435 (6,806)
Total other comprehensive income/(loss), net of tax11,188 (41,829)
Total comprehensive income$201,919 $111,589 
Comprehensive income attributable to noncontrolling interests
3,545 3,186 
Comprehensive income attributable to Darling$198,374 $108,403 





The accompanying notes are an integral part of these consolidated financial statements.

5



DARLING INGREDIENTS INC. AND SUBSIDIARIES
  
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Three months ended April 2, 2022 and April 3, 2021
(in thousands, except share data)
(unaudited)
Common Stock
Number of Outstanding Shares
$0.01 par Value
Additional Paid-In CapitalTreasury StockAccumulated Other Comprehensive LossRetained EarningsStockholders' equity attributable to DarlingNon-controlling InterestsTotal Stockholders' Equity
Balances at January 1, 2022160,792,004 $1,717 $1,627,816 $(374,721)$(321,690)$2,347,838 $3,280,960 $66,825 $3,347,785 
Net income— — — — — 188,053 188,053 2,678 190,731 
Pension liability adjustments, net of tax
— — — — 429 — 429 — 429 
Heating oil derivative adjustments, net of tax— — — — (16,762)— (16,762)— (16,762)
Corn option derivative adjustments, net of tax— — — — (5,056)— (5,056)— (5,056)
Soybean meal derivative adjustments, net of tax— — — — (240)— (240)— (240)
Foreign exchange derivative adjustments, net of tax— — — — 29,435 — 29,435 — 29,435 
Foreign currency translation adjustments
— — — — 2,515 — 2,515 867 3,382 
Issuance of non-vested stock5,000 — 18 — — — 18 — 18 
Stock-based compensation— — 6,305 — — — 6,305 — 6,305 
Treasury stock(938,113)— — (64,185)— — (64,185)— (64,185)
Issuance of common stock1,644,866 17 3,791 — — — 3,808 — 3,808 
Balances at April 2, 2022161,503,757 $1,734 $1,637,930 $(438,906)$(311,369)$2,535,891 $3,425,280 $70,370 $3,495,650 

Common Stock
Number of Outstanding Shares
$0.01 par Value
Additional Paid-In CapitalTreasury StockAccumulated Other Comprehensive LossRetained EarningsStockholders' equity attributable to DarlingNon-controlling InterestsTotal Stockholders' Equity
Balances at January 2, 2021162,200,389 $1,699 $1,597,429 $(151,710)$(252,433)$1,696,924 $2,891,909 $62,300 $2,954,209 
Net income— — — — — 151,766 151,766 1,652 153,418 
Distribution of noncontrolling interest earnings
— — — — — — — (2,143)(2,143)
Pension liability adjustments, net of tax
— — — — 792 — 792 — 792 
Heating oil derivative adjustments, net of tax
— — — — 3,464 — 3,464 3,464 
Corn option derivative adjustments, net of tax— — — — (800)— (800)— (800)
Soybean meal derivative adjustments, net of tax— — — — (257)— (257)— (257)
Foreign exchange derivative adjustments, net of tax— — — — (6,806)— (6,806)— (6,806)
Foreign currency translation adjustments
— — — — (39,756)— (39,756)1,534 (38,222)
Issuance of non-vested stock — 58 — — — 58 — 58 
Stock-based compensation— — 8,357 — — — 8,357 — 8,357 
Treasury stock(684,674)— — (48,141)— — (48,141)— (48,141)
Issuance of common stock1,639,151 16 6,001 — — — 6,017 — 6,017 
Balances at April 3, 2021163,154,866 $1,715 $1,611,845 $(199,851)$(295,796)$1,848,690 $2,966,603 $63,343 $3,029,946 

The accompanying notes are an integral part of these consolidated financial statements.

6


DARLING INGREDIENTS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended April 2, 2022 and April 3, 2021
(in thousands)
(unaudited)
 April 2,
2022
April 3,
2021
Cash flows from operating activities:  
Net Income$190,731 $153,418 
Adjustments to reconcile net income to net cash provided by operating activities:  
Depreciation and amortization79,246 78,534 
Gain on sale of assets(389)(64)
Asset impairment 138 
Deferred taxes23,826 11,809 
Decrease in long-term pension liability(269)(448)
Stock-based compensation expense6,323 8,415 
                Write-off deferred loan costs 598 
                Deferred loan cost amortization1,131 1,040 
                Equity in net income of Diamond Green Diesel and other unconsolidated subsidiaries(73,164)(102,837)
Distributions of earnings from Diamond Green Diesel and other unconsolidated subsidiaries 57 
Changes in operating assets and liabilities, net of effects from acquisitions:  
Accounts receivable(41,317)10,721 
Income taxes refundable/payable(31,224)(760)
Inventories and prepaid expenses(42,891)(27,188)
Accounts payable and accrued expenses58,964 (13,462)
Other(18,775)18,834 
Net cash provided by operating activities152,192 138,805 
Cash flows from investing activities:  
Capital expenditures(71,618)(60,751)
      Acquisitions, net of cash acquired(59,003)(340)
  Investment in Diamond Green Diesel(164,750) 
      Investment in other unconsolidated subsidiaries (4,449)
        Gross proceeds from disposal of property, plant and equipment and other assets974 1,629 
Payments related to routes and other intangibles(100)(347)
Net cash used in investing activities(294,497)(64,258)
Cash flows from financing activities:  
Proceeds from long-term debt9,657 9,262 
Payments on long-term debt(12,128)(60,444)
Borrowings from revolving credit facility369,902 111,000 
Payments on revolving credit facility(134,000)(97,000)
Net cash overdraft financing9,830 499 
Deferred loan costs(1,810) 
Issuance of common stock 50 
Repurchase of common stock(17,189) 
Minimum withholding taxes paid on stock awards(43,351)(42,268)
Distributions to noncontrolling interests (2,143)
Net cash provided/(used) in financing activities180,911 (81,044)
Effect of exchange rate changes on cash(8,118)(3,847)
Net increase/(decrease) in cash, cash equivalents and restricted cash30,488 (10,344)
Cash, cash equivalents and restricted cash at beginning of period69,072 81,720 
Cash, cash equivalents and restricted cash at end of period$99,560 $71,376 

The accompanying notes are an integral part of these consolidated financial statements.
7


DARLING INGREDIENTS INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements
April 2, 2022
(unaudited)

(1)General

The accompanying consolidated financial statements for the three month periods ended April 2, 2022 and April 3, 2021, have been prepared by Darling Ingredients Inc., a Delaware corporation (“Darling”, and together with its subsidiaries, the “Company” or “we”, “us” or “our”) in accordance with generally accepted accounting principles in the United States (“GAAP”) without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).  The information furnished herein reflects all adjustments (consisting only of normal recurring accruals) that are, in the opinion of management, necessary to present a fair statement of the financial position and operating results of the Company as of and for the respective periods. However, these operating results are not necessarily indicative of the results expected for a full fiscal year. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations.  However, management of the Company believes, to the best of their knowledge, that the disclosures herein are adequate to make the information presented not misleading.  The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements contained in the Company’s Form 10-K for the fiscal year ended January 1, 2022. 

(2)Summary of Significant Accounting Policies

(a)Basis of Presentation

The consolidated financial statements include the accounts of Darling and its consolidated subsidiaries. Noncontrolling interests represent 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 represent 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.

(b)Fiscal Periods

The Company has a 52/53 week fiscal year ending on the Saturday nearest December 31.  Fiscal periods for the consolidated financial statements included herein are as of April 2, 2022, and include the 13 weeks ended April 2, 2022, and the 13 weeks ended April 3, 2021.

(c)    Accounts Receivable Factoring

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 sells certain selected customers’ trade receivables to third party banks without recourse for cash less a nominal fee. For the three months ended April 2, 2022 and April 3, 2021, the Company sold approximately $126.3 million and $106.9 million of its trade receivables and incurred approximately $0.4 million and $0.3 million in fees, which are recorded as interest expense, respectively.

(d)    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 related to certain foreign and domestic sales.  These amounts are recorded as unearned revenue and recognized when
8


control of the promised finished product is transferred to the Company's customer.  See Note 19 (Revenue) to the Company's Consolidated Financial Statements included herein.

(e)    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 continuing global COVID-19 pandemic, and related government-imposed movement restrictions and initiatives implemented to reduce the global transmission of COVID-19, as well as the Russia-Ukraine war, 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 three months ended April 2, 2022, 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 or the Russia-Ukraine war.

(f)    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 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)
 Three Months Ended
April 2, 2022April 3, 2021
 IncomeSharesPer ShareIncomeSharesPer Share
Basic:      
Net Income attributable to Darling$188,053 161,396 $1.17 $151,766 162,925 $0.93 
Diluted:      
Effect of dilutive securities:      
Add: Option shares in the money and dilutive effect of non-vested stock awards 3,976   5,733  
Less: Pro forma treasury shares (771)  (909) 
Diluted:      
Net income attributable to Darling$188,053 164,601 $1.14 $151,766 167,749 $0.90 
For the three months ended April 2, 2022 and April 3, 2021, respectively, no outstanding stock options were excluded from diluted income per common share as the effect was antidilutive. For the three months ended April 2, 2022 and April 3, 2021, respectively, 194,546 and 162,896 shares of non-vested stock and stock equivalents were excluded from diluted income per common share as the effect was antidilutive.

(3)    Investment in Unconsolidated Subsidiaries

On January 21, 2011, 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
9


(“DGD” or 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 expansion of the existing facility.

Selected financial information for the Company's DGD Joint Venture is as follows (in thousands):

(in thousands)March 31, 2022December 31, 2021
Assets:
Total current assets$950,802 $686,294 
Property, plant and equipment, net2,934,686 2,710,747 
Other assets59,196 51,514 
Total assets$3,944,684 $3,448,555 
Liabilities and members' equity:
Total current portion of long term debt$165,356 $165,092 
Total other current liabilities367,478 295,860 
Total long term debt340,591 344,309 
Total other long term liabilities17,328 17,531 
Total members' equity3,053,931 2,625,763 
Total liabilities and members' equity$3,944,684 $3,448,555 

Three Months Ended
(in thousands)March 31, 2022March 31, 2021
Revenues:
Operating revenues$980,692 $431,633 
Expenses:
Total costs and expenses less depreciation, amortization and accretion expense
807,572 215,234 
Depreciation, amortization and accretion expense
26,492 11,687 
Total costs and expenses834,064 226,921 
Operating income146,628 204,712 
Other income (expense)(11)58 
Interest and debt expense, net(3,009)(320)
Net income$143,608 $204,450 

As of April 2, 2022, under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $1,528.7 million on the consolidated balance sheet. The Company has recorded equity in net income from the DGD Joint Venture of approximately $71.8 million and $102.2 million for the three months ended April 2, 2022 and April 3, 2021, respectively. In December 2019, the blender tax credits were extended for calendar years 2020, 2021 and 2022. For the three months ended March 31, 2022 and March 31, 2021, the DGD Joint Venture recorded approximately $155.8 million and $79.0 million of blenders tax credits, respectively. The blenders tax credits are recorded as a reduction of cost of sales by the DGD Joint Venture. In the three months ended April 2, 2022 and April 3, 2021, respectively, the Company made $164.75 million and no capital contributions to the DGD Joint Venture. In the three months ended April 2, 2022 and April 3, 2021, the Company did not receive any dividend distributions from the DGD Joint Venture.

In addition to the DGD Joint Venture, the Company has investments in other unconsolidated subsidiaries that are insignificant to the Company.

(4)    Acquisitions

On February 25, 2022, a wholly-owned international subsidiary of the Company acquired all of the shares of Group Op de Beeck, a Belgium digester, organic and industrial waste processing company, that is now included in our Fuel
10


Ingredients segment, for an initially estimated purchase price of approximately $91.7 million, plus or minus various closing adjustments in accordance with the stock purchase agreement. After estimated purchase price adjustments related to future estimated construction, net debt and working capital, the Company paid approximately $71.3 million in cash consideration. The Company recorded assets and liabilities consisting of property, plant and equipment of approximately $27.8 million, intangible assets of approximately $27.1 million, goodwill of approximately $25.5 million and other net liabilities of approximately $(9.1) million including working capital and net debt. Such amounts have been recorded on a preliminary basis pending finalization of future construction, actual net debt and working capital that is expected to occur within the next six months. The Company does not expect material changes to these pending amounts. The identifiable intangibles have a weighted average life of 15 years.

Additionally, the Company completed another immaterial acquisition in the first quarter of fiscal 2022.

(5)    Inventories

A summary of inventories follows (in thousands):
        
 April 2, 2022January 1, 2022
Finished product$304,644 $272,995 
Work in process80,955 81,158 
Raw material47,062 48,186 
Supplies and other59,033 55,126 
 $491,694 $457,465 

(6)    Intangible Assets

The gross carrying amount of intangible assets not subject to amortization and intangible assets subject to amortization
is as follows (in thousands):    
 April 2, 2022January 1, 2022
Indefinite Lived Intangible Assets:  
Trade names$52,502 $53,133 
 52,502 53,133 
Finite Lived Intangible Assets:  
Routes365,933 337,399 
Permits475,491 475,520 
Non-compete agreements645 645 
Trade names65,675 65,675 
Royalty, consulting, land use rights and leasehold25,738 25,899 
 933,482 905,138 
Accumulated Amortization:
Routes(175,450)(169,984)
Permits(344,672)(336,020)
Non-compete agreements(469)(441)
Trade names(47,662)(46,028)
Royalty, consulting, land use rights and leasehold(8,104)(7,997)
(576,357)(560,470)
Total Intangible assets, less accumulated amortization$409,627 $397,801 

Gross intangible assets changed due to acquisitions in the first quarter of fiscal 2022 by approximately $28.0 million and the remaining change was from foreign currency translation and retirements. Amortization expense for the three months ended April 2, 2022 and April 3, 2021, was approximately $16.5 million and $17.0 million, respectively.

(7)    Goodwill

Changes in the carrying amount of goodwill (in thousands):
11


 Feed IngredientsFood IngredientsFuel IngredientsTotal
Balance at January 1, 2022   
Goodwill$814,863 $332,866 $119,342 $1,267,071 
Accumulated impairment losses(15,914)(461)(31,580)(47,955)
 798,949 332,405 87,762 1,219,116 
Goodwill acquired during year  25,892 25,892 
Foreign currency translation(802)(5,267)(2,415)(8,484)
Balance at April 2, 2022   
Goodwill814,061 327,599 142,819 1,284,479 
Accumulated impairment losses(15,914)(461)(31,580)(47,955)