dar-20220402000091654012/312022Q1FALSE00009165402022-01-022022-04-0200009165402022-05-05xbrli:shares00009165402022-04-02iso4217:USD00009165402022-01-01iso4217:USDxbrli:shares00009165402021-01-032021-04-030000916540dar:SoybeanMealMember2022-01-022022-04-020000916540dar:SoybeanMealMember2021-01-032021-04-030000916540dar:CornOptionMember2022-01-022022-04-020000916540dar:CornOptionMember2021-01-032021-04-030000916540dar:HeatingOilSwapsAndOptionsMember2022-01-022022-04-020000916540dar:HeatingOilSwapsAndOptionsMember2021-01-032021-04-030000916540us-gaap:ForeignExchangeContractMember2022-01-022022-04-020000916540us-gaap:ForeignExchangeContractMember2021-01-032021-04-030000916540us-gaap:CommonStockMember2022-01-010000916540us-gaap:AdditionalPaidInCapitalMember2022-01-010000916540us-gaap:TreasuryStockMember2022-01-010000916540us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-010000916540us-gaap:RetainedEarningsMember2022-01-010000916540us-gaap:ParentMember2022-01-010000916540us-gaap:NoncontrollingInterestMember2022-01-010000916540us-gaap:RetainedEarningsMember2022-01-022022-04-020000916540us-gaap:ParentMember2022-01-022022-04-020000916540us-gaap:NoncontrollingInterestMember2022-01-022022-04-020000916540us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-022022-04-020000916540srt:HeatingOilMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-022022-04-020000916540srt:HeatingOilMemberus-gaap:ParentMember2022-01-022022-04-020000916540srt:HeatingOilMember2022-01-022022-04-020000916540dar:CornOptionMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-022022-04-020000916540dar:CornOptionMemberus-gaap:ParentMember2022-01-022022-04-020000916540dar:SoybeanMealMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-022022-04-020000916540dar:SoybeanMealMemberus-gaap:ParentMember2022-01-022022-04-020000916540us-gaap:ForeignExchangeContractMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-022022-04-020000916540us-gaap:ForeignExchangeContractMemberus-gaap:ParentMember2022-01-022022-04-020000916540us-gaap:CommonStockMember2022-01-022022-04-020000916540us-gaap:AdditionalPaidInCapitalMember2022-01-022022-04-020000916540us-gaap:TreasuryStockMember2022-01-022022-04-020000916540us-gaap:CommonStockMember2022-04-020000916540us-gaap:AdditionalPaidInCapitalMember2022-04-020000916540us-gaap:TreasuryStockMember2022-04-020000916540us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-020000916540us-gaap:RetainedEarningsMember2022-04-020000916540us-gaap:ParentMember2022-04-020000916540us-gaap:NoncontrollingInterestMember2022-04-0200009165402021-04-030000916540us-gaap:CommonStockMember2021-01-020000916540us-gaap:AdditionalPaidInCapitalMember2021-01-020000916540us-gaap:TreasuryStockMember2021-01-020000916540us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-020000916540us-gaap:RetainedEarningsMember2021-01-020000916540us-gaap:ParentMember2021-01-020000916540us-gaap:NoncontrollingInterestMember2021-01-0200009165402021-01-020000916540us-gaap:RetainedEarningsMember2021-01-032021-04-030000916540us-gaap:ParentMember2021-01-032021-04-030000916540us-gaap:NoncontrollingInterestMember2021-01-032021-04-030000916540us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-032021-04-030000916540srt:HeatingOilMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-032021-04-030000916540srt:HeatingOilMemberus-gaap:ParentMember2021-01-032021-04-030000916540srt:HeatingOilMember2021-01-032021-04-030000916540dar:CornOptionMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-032021-04-030000916540dar:CornOptionMemberus-gaap:ParentMember2021-01-032021-04-030000916540dar:SoybeanMealMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-032021-04-030000916540dar:SoybeanMealMemberus-gaap:ParentMember2021-01-032021-04-030000916540us-gaap:ForeignExchangeContractMemberus-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-032021-04-030000916540us-gaap:ForeignExchangeContractMemberus-gaap:ParentMember2021-01-032021-04-030000916540us-gaap:CommonStockMember2021-01-032021-04-030000916540us-gaap:AdditionalPaidInCapitalMember2021-01-032021-04-030000916540us-gaap:TreasuryStockMember2021-01-032021-04-030000916540us-gaap:CommonStockMember2021-04-030000916540us-gaap:AdditionalPaidInCapitalMember2021-04-030000916540us-gaap:TreasuryStockMember2021-04-030000916540us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-030000916540us-gaap:RetainedEarningsMember2021-04-030000916540us-gaap:ParentMember2021-04-030000916540us-gaap:NoncontrollingInterestMember2021-04-030000916540us-gaap:EmployeeStockOptionMember2022-01-022022-04-020000916540us-gaap:EmployeeStockOptionMember2021-01-032021-04-030000916540dar:NonVestedStockMember2022-01-022022-04-020000916540dar:NonVestedStockMember2021-01-032021-04-030000916540dar:DiamondGreenDieselHoldingsLlcJointVentureMember2011-01-21xbrli:pure0000916540dar:ValeroEnergyCorporationMemberdar:DiamondGreenDieselHoldingsLlcJointVentureMember2011-01-210000916540dar:DiamondGreenDieselHoldingsLlcJointVentureMemberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2022-03-310000916540dar:DiamondGreenDieselHoldingsLlcJointVentureMemberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2021-12-310000916540dar:DiamondGreenDieselHoldingsLlcJointVentureMemberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2022-01-012022-03-310000916540dar:DiamondGreenDieselHoldingsLlcJointVentureMemberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2021-01-012021-03-310000916540dar:DiamondGreenDieselHoldingsLlcJointVentureMember2022-04-020000916540dar:DiamondGreenDieselHoldingsLlcJointVentureMember2022-01-022022-04-020000916540dar:DiamondGreenDieselHoldingsLlcJointVentureMember2021-01-032021-04-030000916540dar:GroupOpDeBeeckMember2022-02-250000916540dar:GroupOpDeBeeckMember2022-02-012022-02-280000916540us-gaap:TradeNamesMember2022-04-020000916540us-gaap:TradeNamesMember2022-01-010000916540dar:CollectionRoutesMember2022-04-020000916540dar:CollectionRoutesMember2022-01-010000916540dar:PermitsMember2022-04-020000916540dar:PermitsMember2022-01-010000916540us-gaap:NoncompeteAgreementsMember2022-04-020000916540us-gaap:NoncompeteAgreementsMember2022-01-010000916540us-gaap:TradeNamesMember2022-04-020000916540us-gaap:TradeNamesMember2022-01-010000916540dar:RoyaltyconsultinglanduseandleaseholdMember2022-04-020000916540dar:RoyaltyconsultinglanduseandleaseholdMember2022-01-010000916540dar:FeedIngredientsMember2022-01-010000916540dar:FoodIngredientsMember2022-01-010000916540dar:FuelIngredientsMember2022-01-010000916540dar:FeedIngredientsMember2022-01-022022-04-020000916540dar:FoodIngredientsMember2022-01-022022-04-020000916540dar:FuelIngredientsMember2022-01-022022-04-020000916540dar:FeedIngredientsMember2022-04-020000916540dar:FoodIngredientsMember2022-04-020000916540dar:FuelIngredientsMember2022-04-020000916540us-gaap:RevolvingCreditFacilityMemberdar:SeniorSecuredFacilitiesMember2022-04-020000916540us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberdar:SeniorSecuredFacilitiesMember2022-04-02iso4217:CAD0000916540us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberdar:SeniorSecuredFacilitiesMember2022-01-010000916540dar:TermLoanBFacilityMemberdar:SeniorSecuredFacilitiesMember2022-04-020000916540dar:TermLoanBFacilityMemberdar:SeniorSecuredFacilitiesMember2022-01-010000916540us-gaap:SeniorNotesMemberdar:SeniorNotes5.25Due2027Member2022-04-020000916540us-gaap:SeniorNotesMemberdar:SeniorNotes5.25Due2027Member2022-01-010000916540us-gaap:SeniorNotesMemberdar:SeniorNotes3.625Due2026Member2022-04-020000916540us-gaap:SeniorNotesMemberdar:SeniorNotes3.625Due2026Member2022-01-010000916540us-gaap:NotesPayableOtherPayablesMember2022-04-020000916540us-gaap:NotesPayableOtherPayablesMember2022-01-01iso4217:EUR0000916540us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMemberdar:AmendedCreditAgreementMember2022-04-020000916540us-gaap:NotesPayableOtherPayablesMemberus-gaap:BankOverdraftsMember2022-04-020000916540us-gaap:ForeignLineOfCreditMemberus-gaap:NotesPayableOtherPayablesMember2022-04-020000916540us-gaap:OtherDebtSecuritiesMemberus-gaap:NotesPayableOtherPayablesMember2022-04-020000916540dar:TermA2FacilityMemberdar:SeniorSecuredFacilitiesMember2022-04-020000916540us-gaap:SecuredDebtMemberus-gaap:SecuredDebtMemberdar:SeniorSecuredFacilitiesMember2022-01-022022-04-020000916540us-gaap:SecuredDebtMemberus-gaap:BaseRateMemberus-gaap:SecuredDebtMemberdar:SeniorSecuredFacilitiesMember2022-01-022022-04-020000916540us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembercurrency:USDdar:TermA1FacilityMemberus-gaap:SecuredDebtMemberdar:SeniorSecuredFacilitiesMember2022-01-022022-04-020000916540us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembercurrency:USDdar:TermA2FacilityMemberus-gaap:SecuredDebtMemberdar:SeniorSecuredFacilitiesMember2022-01-022022-04-020000916540us-gaap:BaseRateMembercurrency:USDus-gaap:SecuredDebtMemberdar:SeniorSecuredFacilitiesMemberdar:TermLoanBFacilityMember2022-01-022022-04-020000916540us-gaap:LondonInterbankOfferedRateLIBORMembercurrency:USDus-gaap:SecuredDebtMemberdar:SeniorSecuredFacilitiesMemberdar:TermLoanBFacilityMember2022-01-022022-04-020000916540us-gaap:BaseRateMembercurrency:USDus-gaap:RevolvingCreditFacilityMemberdar:SeniorSecuredFacilitiesMember2022-04-020000916540us-gaap:SecuredDebtMemberus-gaap:BaseRateMembercurrency:USDdar:SeniorSecuredFacilitiesMember2022-01-022022-04-020000916540us-gaap:SecuredDebtMemberus-gaap:BaseRateMembercurrency:USDdar:SeniorSecuredFacilitiesMember2022-04-020000916540us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembercurrency:USDus-gaap:RevolvingCreditFacilityMemberdar:SeniorSecuredFacilitiesMember2022-04-020000916540us-gaap:SecuredDebtMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembercurrency:USDdar:SeniorSecuredFacilitiesMember2022-01-022022-04-020000916540us-gaap:SecuredDebtMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembercurrency:USDdar:SeniorSecuredFacilitiesMember2022-04-020000916540currency:USDdar:SeniorSecuredFacilitiesMemberdar:TermLoanBFacilityMember2022-04-020000916540us-gaap:LondonInterbankOfferedRateLIBORMembercurrency:USDdar:SeniorSecuredFacilitiesMemberdar:TermLoanBFacilityMember2022-01-022022-04-020000916540us-gaap:LondonInterbankOfferedRateLIBORMembercurrency:USDdar:SeniorSecuredFacilitiesMemberdar:TermLoanBFacilityMember2022-04-020000916540us-gaap:RevolvingCreditFacilityMemberdar:CanadianDollarOfferRateMemberdar:SeniorSecuredFacilitiesMembercurrency:CAD2022-04-020000916540us-gaap:SecuredDebtMemberdar:CanadianDollarOfferRateMemberdar:SeniorSecuredFacilitiesMembercurrency:CAD2022-01-022022-04-020000916540us-gaap:SecuredDebtMemberdar:CanadianDollarOfferRateMemberdar:SeniorSecuredFacilitiesMembercurrency:CAD2022-04-020000916540dar:TermA1FacilityMemberdar:SeniorSecuredFacilitiesMember2022-04-020000916540dar:TermA2FacilityMemberdar:SeniorSecuredFacilitiesMember2022-04-020000916540dar:AncillaryFacilitiesMemberdar:SeniorSecuredFacilitiesMember2022-04-020000916540us-gaap:LetterOfCreditMemberdar:SeniorSecuredFacilitiesMember2022-04-020000916540us-gaap:ForeignLineOfCreditMemberdar:SeniorSecuredFacilitiesMember2022-04-020000916540us-gaap:SecuredDebtMemberdar:SeniorSecuredFacilitiesMember2022-04-020000916540us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberdar:SoybeanMealMember2022-01-022022-04-020000916540us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberdar:SoybeanMealMember2021-01-032021-04-030000916540us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:ForeignExchangeContractMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-022022-04-020000916540us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:ForeignExchangeContractMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-032021-04-030000916540dar:CornOptionMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-022022-04-020000916540dar:CornOptionMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-032021-04-030000916540us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-022022-04-020000916540us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2021-01-032021-04-030000916540us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedTranslationAdjustmentMember2022-01-022022-04-020000916540us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedTranslationAdjustmentMember2021-01-032021-04-030000916540us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-022022-04-020000916540us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-032021-04-030000916540us-gaap:AccumulatedTranslationAdjustmentMember2022-01-010000916540us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-010000916540us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-010000916540us-gaap:AccumulatedTranslationAdjustmentMember2022-01-022022-04-020000916540us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-01-022022-04-020000916540us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-022022-04-020000916540us-gaap:AccumulatedTranslationAdjustmentMember2022-04-020000916540us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2022-04-020000916540us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-04-0200009165402022-01-032022-01-0300009165402021-12-092021-12-0900009165402021-12-090000916540us-gaap:PensionPlansDefinedBenefitMember2022-01-022022-04-020000916540us-gaap:PensionPlansDefinedBenefitMember2021-01-032021-04-030000916540srt:MaximumMember2022-01-022022-04-02dar:plan0000916540dar:CornOptionMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentAssetsMember2022-04-020000916540dar:CornOptionMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentAssetsMember2022-01-010000916540us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentAssetsMember2022-04-020000916540us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherCurrentAssetsMember2022-01-010000916540us-gaap:DesignatedAsHedgingInstrumentMemberdar:SoybeanMealMemberus-gaap:OtherCurrentAssetsMember2022-04-020000916540us-gaap:DesignatedAsHedgingInstrumentMemberdar:SoybeanMealMemberus-gaap:OtherCurrentAssetsMember2022-01-010000916540us-gaap:ShortMemberdar:BRIEUR1Memberus-gaap:NondesignatedMember2022-04-02iso4217:BRL0000916540dar:BRIEUR1Memberus-gaap:NondesignatedMemberus-gaap:LongMember2022-04-020000916540us-gaap:ShortMemberdar:BRIUSDMemberus-gaap:NondesignatedMember2022-04-020000916540dar:BRIUSDMemberus-gaap:NondesignatedMemberus-gaap:LongMember2022-04-020000916540us-gaap:ShortMemberus-gaap:NondesignatedMemberdar:EURUSDMember2022-04-020000916540us-gaap:NondesignatedMemberus-gaap:LongMemberdar:EURUSDMember2022-04-020000916540us-gaap:ShortMemberus-gaap:NondesignatedMemberdar:EURPLNMember2022-04-020000916540us-gaap:NondesignatedMemberus-gaap:LongMemberdar:EURPLNMember2022-04-02iso4217:PLN0000916540us-gaap:ShortMemberus-gaap:NondesignatedMemberdar:EURJPNMember2022-04-020000916540us-gaap:NondesignatedMemberdar:EURJPNMemberus-gaap:LongMember2022-04-02iso4217:JPY0000916540us-gaap:ShortMemberdar:EURCNYMemberus-gaap:NondesignatedMember2022-04-020000916540dar:EURCNYMemberus-gaap:NondesignatedMemberus-gaap:LongMember2022-04-02iso4217:CNY0000916540us-gaap:ShortMemberdar:EURAUDMemberus-gaap:NondesignatedMember2022-04-020000916540dar:EURAUDMemberus-gaap:NondesignatedMemberus-gaap:LongMember2022-04-02iso4217:AUD0000916540us-gaap:ShortMemberus-gaap:NondesignatedMemberdar:EURGBPMember2022-04-020000916540us-gaap:NondesignatedMemberdar:EURGBPMemberus-gaap:LongMember2022-04-02iso4217:GBP0000916540dar:EURCADMemberus-gaap:ShortMemberus-gaap:NondesignatedMember2022-04-020000916540dar:EURCADMemberus-gaap:NondesignatedMemberus-gaap:LongMember2022-04-020000916540us-gaap:ShortMemberus-gaap:NondesignatedMemberdar:PLNUSDMember2022-04-020000916540us-gaap:NondesignatedMemberdar:PLNUSDMemberus-gaap:LongMember2022-04-020000916540us-gaap:ShortMemberdar:PLNEURMemberus-gaap:NondesignatedMember2022-04-020000916540dar:PLNEURMemberus-gaap:NondesignatedMemberus-gaap:LongMember2022-04-020000916540us-gaap:ShortMemberdar:GBPEURMemberus-gaap:NondesignatedMember2022-04-020000916540dar:GBPEURMemberus-gaap:NondesignatedMemberus-gaap:LongMember2022-04-020000916540us-gaap:ShortMemberdar:JPNUSDMemberus-gaap:NondesignatedMember2022-04-020000916540dar:JPNUSDMemberus-gaap:NondesignatedMemberus-gaap:LongMember2022-04-020000916540us-gaap:ShortMemberus-gaap:NondesignatedMemberdar:USDJPNMember2022-04-020000916540us-gaap:NondesignatedMemberus-gaap:LongMemberdar:USDJPNMember2022-04-020000916540us-gaap:ShortMemberus-gaap:NondesignatedMemberdar:USDEURMember2022-04-020000916540us-gaap:NondesignatedMemberdar:USDEURMemberus-gaap:LongMember2022-04-020000916540us-gaap:ShortMemberus-gaap:NondesignatedMemberdar:USDCADMember2022-04-020000916540us-gaap:NondesignatedMemberdar:USDCADMemberus-gaap:LongMember2022-04-020000916540us-gaap:CashFlowHedgingMember2022-01-022022-04-020000916540us-gaap:ForeignExchangeContractMemberus-gaap:ForeignCurrencyGainLossMemberus-gaap:NondesignatedMember2022-01-022022-04-020000916540us-gaap:ForeignExchangeContractMemberus-gaap:ForeignCurrencyGainLossMemberus-gaap:NondesignatedMember2021-01-032021-04-030000916540us-gaap:ForeignExchangeContractMemberus-gaap:SalesMemberus-gaap:NondesignatedMember2022-01-022022-04-020000916540us-gaap:ForeignExchangeContractMemberus-gaap:SalesMemberus-gaap:NondesignatedMember2021-01-032021-04-030000916540us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:CostOfSalesMember2022-01-022022-04-020000916540us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:CostOfSalesMember2021-01-032021-04-030000916540us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2022-01-022022-04-020000916540us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-032021-04-030000916540us-gaap:SalesMemberus-gaap:NondesignatedMemberdar:CornOptionsAndFuturesMember2022-01-022022-04-020000916540us-gaap:SalesMemberus-gaap:NondesignatedMemberdar:CornOptionsAndFuturesMember2021-01-032021-04-030000916540us-gaap:NondesignatedMemberus-gaap:CostOfSalesMemberdar:CornOptionsAndFuturesMember2022-01-022022-04-020000916540us-gaap:NondesignatedMemberus-gaap:CostOfSalesMemberdar:CornOptionsAndFuturesMember2021-01-032021-04-030000916540us-gaap:NondesignatedMember2022-01-022022-04-020000916540us-gaap:NondesignatedMember2021-01-032021-04-030000916540us-gaap:CommodityContractMember2022-04-020000916540us-gaap:FairValueInputsLevel1Member2022-04-020000916540us-gaap:FairValueInputsLevel2Member2022-04-020000916540us-gaap:FairValueInputsLevel3Member2022-04-020000916540us-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel1Memberdar:SeniorNotes5.25Due2027Member2022-04-020000916540us-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel2Memberdar:SeniorNotes5.25Due2027Member2022-04-020000916540us-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel3Memberdar:SeniorNotes5.25Due2027Member2022-04-020000916540us-gaap:SeniorNotesMemberdar:SeniorNotes3.625Due2026Memberus-gaap:FairValueInputsLevel1Member2022-04-020000916540us-gaap:SeniorNotesMemberdar:SeniorNotes3.625Due2026Memberus-gaap:FairValueInputsLevel2Member2022-04-020000916540us-gaap:SeniorNotesMemberdar:SeniorNotes3.625Due2026Memberus-gaap:FairValueInputsLevel3Member2022-04-020000916540dar:TermLoanBFacilityMember2022-04-020000916540dar:TermLoanBFacilityMemberus-gaap:FairValueInputsLevel1Member2022-04-020000916540dar:TermLoanBFacilityMemberus-gaap:FairValueInputsLevel2Member2022-04-020000916540dar:TermLoanBFacilityMemberus-gaap:FairValueInputsLevel3Member2022-04-020000916540us-gaap:RevolvingCreditFacilityMember2022-04-020000916540us-gaap:FairValueInputsLevel1Memberus-gaap:RevolvingCreditFacilityMember2022-04-020000916540us-gaap:FairValueInputsLevel2Memberus-gaap:RevolvingCreditFacilityMember2022-04-020000916540us-gaap:RevolvingCreditFacilityMemberus-gaap:FairValueInputsLevel3Member2022-04-020000916540us-gaap:FairValueInputsLevel1Member2022-01-010000916540us-gaap:FairValueInputsLevel2Member2022-01-010000916540us-gaap:FairValueInputsLevel3Member2022-01-010000916540us-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel1Memberdar:SeniorNotes5.25Due2027Member2022-01-010000916540us-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel2Memberdar:SeniorNotes5.25Due2027Member2022-01-010000916540us-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel3Memberdar:SeniorNotes5.25Due2027Member2022-01-010000916540us-gaap:SeniorNotesMemberdar:SeniorNotes3.625Due2026Memberus-gaap:FairValueInputsLevel1Member2022-01-010000916540us-gaap:SeniorNotesMemberdar:SeniorNotes3.625Due2026Memberus-gaap:FairValueInputsLevel2Member2022-01-010000916540us-gaap:SeniorNotesMemberdar:SeniorNotes3.625Due2026Memberus-gaap:FairValueInputsLevel3Member2022-01-010000916540dar:TermLoanBFacilityMember2022-01-010000916540dar:TermLoanBFacilityMemberus-gaap:FairValueInputsLevel1Member2022-01-010000916540dar:TermLoanBFacilityMemberus-gaap:FairValueInputsLevel2Member2022-01-010000916540dar:TermLoanBFacilityMemberus-gaap:FairValueInputsLevel3Member2022-01-010000916540us-gaap:RevolvingCreditFacilityMember2022-01-010000916540us-gaap:FairValueInputsLevel1Memberus-gaap:RevolvingCreditFacilityMember2022-01-010000916540us-gaap:FairValueInputsLevel2Memberus-gaap:RevolvingCreditFacilityMember2022-01-010000916540us-gaap:RevolvingCreditFacilityMemberus-gaap:FairValueInputsLevel3Member2022-01-010000916540us-gaap:EmployeeSeveranceMember2021-01-032021-04-030000916540dar:InsuranceEnvironmentalAndLitigationMattersMember2022-04-020000916540dar:InsuranceEnvironmentalAndLitigationMattersMember2022-01-0100009165402016-03-012016-03-31utr:midar:Partydar:contaminate00009165402019-11-012019-11-300000916540dar:PlantTwoMember2019-11-012019-11-300000916540dar:PlantOneMember2019-11-012019-11-3000009165402018-06-302018-06-300000916540us-gaap:PendingLitigationMember2018-06-302018-06-300000916540us-gaap:PendingLitigationMember2022-04-02dar:segment0000916540us-gaap:CorporateMember2022-01-022022-04-020000916540us-gaap:OperatingSegmentsMember2022-01-022022-04-020000916540us-gaap:CorporateMember2022-04-020000916540us-gaap:OperatingSegmentsMember2022-04-020000916540dar:FeedIngredientsMember2021-01-032021-04-030000916540dar:FoodIngredientsMember2021-01-032021-04-030000916540dar:FuelIngredientsMember2021-01-032021-04-030000916540us-gaap:CorporateMember2021-01-032021-04-030000916540us-gaap:OperatingSegmentsMember2021-01-032021-04-030000916540us-gaap:CorporateMember2022-01-010000916540us-gaap:OperatingSegmentsMember2022-01-010000916540srt:NorthAmericaMemberdar:FeedIngredientsMember2022-01-022022-04-020000916540srt:NorthAmericaMemberdar:FoodIngredientsMember2022-01-022022-04-020000916540dar:FuelIngredientsMembersrt:NorthAmericaMember2022-01-022022-04-020000916540srt:NorthAmericaMember2022-01-022022-04-020000916540dar:FeedIngredientsMembersrt:EuropeMember2022-01-022022-04-020000916540dar:FoodIngredientsMembersrt:EuropeMember2022-01-022022-04-020000916540dar:FuelIngredientsMembersrt:EuropeMember2022-01-022022-04-020000916540srt:EuropeMember2022-01-022022-04-020000916540dar:FeedIngredientsMembercountry:CN2022-01-022022-04-020000916540dar:FoodIngredientsMembercountry:CN2022-01-022022-04-020000916540dar:FuelIngredientsMembercountry:CN2022-01-022022-04-020000916540country:CN2022-01-022022-04-020000916540srt:SouthAmericaMemberdar:FeedIngredientsMember2022-01-022022-04-020000916540srt:SouthAmericaMemberdar:FoodIngredientsMember2022-01-022022-04-020000916540srt:SouthAmericaMemberdar:FuelIngredientsMember2022-01-022022-04-020000916540srt:SouthAmericaMember2022-01-022022-04-020000916540dar:OtherGeographicalAreasMemberdar:FeedIngredientsMember2022-01-022022-04-020000916540dar:OtherGeographicalAreasMemberdar:FoodIngredientsMember2022-01-022022-04-020000916540dar:OtherGeographicalAreasMemberdar:FuelIngredientsMember2022-01-022022-04-020000916540dar:OtherGeographicalAreasMember2022-01-022022-04-020000916540dar:FeedIngredientsMemberdar:FatsMember2022-01-022022-04-020000916540dar:FoodIngredientsMemberdar:FatsMember2022-01-022022-04-020000916540dar:FuelIngredientsMemberdar:FatsMember2022-01-022022-04-020000916540dar:FatsMember2022-01-022022-04-020000916540dar:FeedIngredientsMemberdar:UsedCookingOilMember2022-01-022022-04-020000916540dar:FoodIngredientsMemberdar:UsedCookingOilMember2022-01-022022-04-020000916540dar:FuelIngredientsMemberdar:UsedCookingOilMember2022-01-022022-04-020000916540dar:UsedCookingOilMember2022-01-022022-04-020000916540dar:FeedIngredientsMemberdar:ProteinsMember2022-01-022022-04-020000916540dar:FoodIngredientsMemberdar:ProteinsMember2022-01-022022-04-020000916540dar:FuelIngredientsMemberdar:ProteinsMember2022-01-022022-04-020000916540dar:ProteinsMember2022-01-022022-04-020000916540dar:BakeryMemberdar:FeedIngredientsMember2022-01-022022-04-020000916540dar:BakeryMemberdar:FoodIngredientsMember2022-01-022022-04-020000916540dar:BakeryMemberdar:FuelIngredientsMember2022-01-022022-04-020000916540dar:BakeryMember2022-01-022022-04-020000916540dar:OtherRenderingMemberdar:FeedIngredientsMember2022-01-022022-04-020000916540dar:OtherRenderingMemberdar:FoodIngredientsMember2022-01-022022-04-020000916540dar:OtherRenderingMemberdar:FuelIngredientsMember2022-01-022022-04-020000916540dar:OtherRenderingMember2022-01-022022-04-020000916540dar:FoodIngredientsProductsandServicesMemberdar:FeedIngredientsMember2022-01-022022-04-020000916540dar:FoodIngredientsProductsandServicesMemberdar:FoodIngredientsMember2022-01-022022-04-020000916540dar:FoodIngredientsProductsandServicesMemberdar:FuelIngredientsMember2022-01-022022-04-020000916540dar:FoodIngredientsProductsandServicesMember2022-01-022022-04-020000916540dar:FeedIngredientsMemberdar:BioenergyMember2022-01-022022-04-020000916540dar:FoodIngredientsMemberdar:BioenergyMember2022-01-022022-04-020000916540dar:FuelIngredientsMemberdar:BioenergyMember2022-01-022022-04-020000916540dar:BioenergyMember2022-01-022022-04-020000916540dar:FeedIngredientsMemberdar:OtherProductsAndServicesMember2022-01-022022-04-020000916540dar:FoodIngredientsMemberdar:OtherProductsAndServicesMember2022-01-022022-04-020000916540dar:FuelIngredientsMemberdar:OtherProductsAndServicesMember2022-01-022022-04-020000916540dar:OtherProductsAndServicesMember2022-01-022022-04-020000916540srt:NorthAmericaMemberdar:FeedIngredientsMember2021-01-032021-04-030000916540srt:NorthAmericaMemberdar:FoodIngredientsMember2021-01-032021-04-030000916540dar:FuelIngredientsMembersrt:NorthAmericaMember2021-01-032021-04-030000916540srt:NorthAmericaMember2021-01-032021-04-030000916540dar:FeedIngredientsMembersrt:EuropeMember2021-01-032021-04-030000916540dar:FoodIngredientsMembersrt:EuropeMember2021-01-032021-04-030000916540dar:FuelIngredientsMembersrt:EuropeMember2021-01-032021-04-030000916540srt:EuropeMember2021-01-032021-04-030000916540dar:FeedIngredientsMembercountry:CN2021-01-032021-04-030000916540dar:FoodIngredientsMembercountry:CN2021-01-032021-04-030000916540dar:FuelIngredientsMembercountry:CN2021-01-032021-04-030000916540country:CN2021-01-032021-04-030000916540srt:SouthAmericaMemberdar:FeedIngredientsMember2021-01-032021-04-030000916540srt:SouthAmericaMemberdar:FoodIngredientsMember2021-01-032021-04-030000916540srt:SouthAmericaMemberdar:FuelIngredientsMember2021-01-032021-04-030000916540srt:SouthAmericaMember2021-01-032021-04-030000916540dar:OtherGeographicalAreasMemberdar:FeedIngredientsMember2021-01-032021-04-030000916540dar:OtherGeographicalAreasMemberdar:FoodIngredientsMember2021-01-032021-04-030000916540dar:OtherGeographicalAreasMemberdar:FuelIngredientsMember2021-01-032021-04-030000916540dar:OtherGeographicalAreasMember2021-01-032021-04-030000916540dar:FeedIngredientsMemberdar:FatsMember2021-01-032021-04-030000916540dar:FoodIngredientsMemberdar:FatsMember2021-01-032021-04-030000916540dar:FuelIngredientsMemberdar:FatsMember2021-01-032021-04-030000916540dar:FatsMember2021-01-032021-04-030000916540dar:FeedIngredientsMemberdar:UsedCookingOilMember2021-01-032021-04-030000916540dar:FoodIngredientsMemberdar:UsedCookingOilMember2021-01-032021-04-030000916540dar:FuelIngredientsMemberdar:UsedCookingOilMember2021-01-032021-04-030000916540dar:UsedCookingOilMember2021-01-032021-04-030000916540dar:FeedIngredientsMemberdar:ProteinsMember2021-01-032021-04-030000916540dar:FoodIngredientsMemberdar:ProteinsMember2021-01-032021-04-030000916540dar:FuelIngredientsMemberdar:ProteinsMember2021-01-032021-04-030000916540dar:ProteinsMember2021-01-032021-04-030000916540dar:BakeryMemberdar:FeedIngredientsMember2021-01-032021-04-030000916540dar:BakeryMemberdar:FoodIngredientsMember2021-01-032021-04-030000916540dar:BakeryMemberdar:FuelIngredientsMember2021-01-032021-04-030000916540dar:BakeryMember2021-01-032021-04-030000916540dar:OtherRenderingMemberdar:FeedIngredientsMember2021-01-032021-04-030000916540dar:OtherRenderingMemberdar:FoodIngredientsMember2021-01-032021-04-030000916540dar:OtherRenderingMemberdar:FuelIngredientsMember2021-01-032021-04-030000916540dar:OtherRenderingMember2021-01-032021-04-030000916540dar:FoodIngredientsProductsandServicesMemberdar:FeedIngredientsMember2021-01-032021-04-030000916540dar:FoodIngredientsProductsandServicesMemberdar:FoodIngredientsMember2021-01-032021-04-030000916540dar:FoodIngredientsProductsandServicesMemberdar:FuelIngredientsMember2021-01-032021-04-030000916540dar:FoodIngredientsProductsandServicesMember2021-01-032021-04-030000916540dar:FeedIngredientsMemberdar:BioenergyMember2021-01-032021-04-030000916540dar:FoodIngredientsMemberdar:BioenergyMember2021-01-032021-04-030000916540dar:FuelIngredientsMemberdar:BioenergyMember2021-01-032021-04-030000916540dar:BioenergyMember2021-01-032021-04-030000916540dar:BiofuelsMemberdar:FeedIngredientsMember2021-01-032021-04-030000916540dar:BiofuelsMemberdar:FoodIngredientsMember2021-01-032021-04-030000916540dar:BiofuelsMemberdar:FuelIngredientsMember2021-01-032021-04-030000916540dar:BiofuelsMember2021-01-032021-04-030000916540dar:FeedIngredientsMemberdar:OtherProductsAndServicesMember2021-01-032021-04-030000916540dar:FoodIngredientsMemberdar:OtherProductsAndServicesMember2021-01-032021-04-030000916540dar:FuelIngredientsMemberdar:OtherProductsAndServicesMember2021-01-032021-04-030000916540dar:OtherProductsAndServicesMember2021-01-032021-04-0300009165402020-03-292022-04-020000916540dar:DiamondGreenDieselHoldingsLlcJointVentureMember2022-01-022022-04-020000916540dar:DiamondGreenDieselHoldingsLlcJointVentureMember2021-01-032021-04-030000916540dar:DiamondGreenDieselHoldingsLlcJointVentureMember2022-04-020000916540dar:DiamondGreenDieselHoldingsLlcJointVentureMember2022-01-010000916540dar:RevolvingLoanAgreementMemberus-gaap:RevolvingCreditFacilityMember2019-05-010000916540dar:LenderOneMemberdar:RevolvingLoanAgreementMemberus-gaap:RevolvingCreditFacilityMember2019-05-010000916540dar:RevolvingLoanAgreementMemberus-gaap:RevolvingCreditFacilityMemberdar:LIBORateMember2019-03-302019-03-300000916540dar:RevolvingLoanAgreementMemberus-gaap:RevolvingCreditFacilityMember2021-10-032021-11-080000916540dar:LenderOneMemberdar:RevolvingLoanAgreementMemberus-gaap:RevolvingCreditFacilityMember2021-10-032021-11-080000916540dar:RevolvingLoanAgreementMemberus-gaap:RevolvingCreditFacilityMember2022-01-022022-04-020000916540dar:RevolvingLoanAgreementMemberus-gaap:RevolvingCreditFacilityMember2022-04-020000916540dar:IMTTTerminalingAgreementsMember2020-02-29dar:agreement0000916540dar:GTLTerminalingAgreementsMember2021-04-010000916540dar:GTLTerminalingAgreementsMember2021-04-012021-04-010000916540us-gaap:SubsequentEventMemberdar:ValleyProteinsMember2022-05-022022-05-020000916540dar:FASAGroupMemberus-gaap:SubsequentEventMember2022-05-052022-05-05
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)
| | | | | | | | | | | |
Delaware | | | 36-2495346 |
(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 class | Trading Symbol(s) | Name of each exchange on which registered |
Common stock $0.01 par value per share | DAR | New 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 filer | ☒ | | | | | | | | Accelerated 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
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 cash | 100 | | | 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 | |
Inventories | 491,694 | | | 457,465 | |
Prepaid expenses | 60,562 | | | 53,711 | |
Income taxes refundable | 25,047 | | | 1,075 | |
Other current assets | 64,387 | | | 38,599 | |
Total current assets | 1,259,033 | | | 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 | |
Goodwill | 1,236,524 | | | 1,219,116 | |
Investment in unconsolidated subsidiaries | 1,563,840 | | | 1,349,247 | |
Operating lease right-of-use assets | 165,128 | | | 155,464 | |
Other assets | 97,709 | | | 66,795 | |
Deferred income taxes | 15,875 | | | 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 trade | 351,253 | | | 307,118 | |
Income taxes payable | 25,117 | | | 32,310 | |
Current operating lease liabilities | 41,649 | | | 38,168 | |
Accrued expenses | 360,058 | | | 350,681 | |
Total current liabilities | 813,414 | | | 752,684 | |
Long-term debt, net of current portion | 1,677,925 | | | 1,438,974 | |
Long-term operating lease liabilities | 125,242 | | | 120,314 | |
Other non-current liabilities | 109,647 | | | 111,029 | |
Deferred income taxes | 393,738 | | | 362,942 | |
Total liabilities | 3,119,966 | | | 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 capital | 1,637,930 | | | 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 earnings | 2,535,891 | | | 2,347,838 | |
Total Darling's stockholders’ equity | 3,425,280 | | | 3,280,960 | |
Noncontrolling interests | 70,370 | | | 66,825 | |
Total stockholders' equity | 3,495,650 | | | 3,347,785 | |
| $ | 6,615,616 | | | $ | 6,133,728 | |
The accompanying notes are an integral part of these consolidated financial statements.
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 expenses | 1,020,577 | | | 772,784 | | | | | |
Gain on sale of assets | (389) | | | (64) | | | | | |
Selling, general and administrative expenses | 102,032 | | | 97,398 | | | | | |
Restructuring and asset impairment charges | — | | | 778 | | | | | |
Acquisition and integration costs | 3,773 | | | — | | | | | |
Depreciation and amortization | 79,246 | | | 78,534 | | | | | |
Total costs and expenses | 1,205,239 | | | 949,430 | | | | | |
Equity in net income of Diamond Green Diesel | 71,804 | | | 102,225 | | | | | |
Operating income | 232,899 | | | 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 subsidiaries | 1,360 | | | 612 | | | | | |
Income before income taxes | 216,814 | | | 182,126 | | | | | |
| | | | | | | |
Income tax expense | 26,083 | | | 28,708 | | | | | |
| | | | | | | |
Net income | 190,731 | | | 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.
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, 2022 | | April 3, 2021 | | | | |
Net income | $ | 190,731 | | | $ | 153,418 | | | | | |
Other comprehensive income/(loss), net of tax: | | | | | | | |
Foreign currency translation | 3,382 | | | (38,222) | | | | | |
Pension adjustments | 429 | | | 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 adjustments | 29,435 | | | (6,806) | | | | | |
Total other comprehensive income/(loss), net of tax | 11,188 | | | (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.
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 Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Stockholders' equity attributable to Darling | Non-controlling Interests | Total Stockholders' Equity |
Balances at January 1, 2022 | 160,792,004 | | $ | 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 stock | 5,000 | | — | | 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 stock | 1,644,866 | | 17 | | 3,791 | | — | | — | | — | | 3,808 | | — | | 3,808 | |
Balances at April 2, 2022 | 161,503,757 | | $ | 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 Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Stockholders' equity attributable to Darling | Non-controlling Interests | Total Stockholders' Equity |
Balances at January 2, 2021 | 162,200,389 | | $ | 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 stock | 1,639,151 | | 16 | | 6,001 | | — | | — | | — | | 6,017 | | — | | 6,017 | |
Balances at April 3, 2021 | 163,154,866 | | $ | 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.
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 amortization | 79,246 | | | 78,534 | |
Gain on sale of assets | (389) | | | (64) | |
| | | |
Asset impairment | — | | | 138 | |
| | | |
Deferred taxes | 23,826 | | | 11,809 | |
Decrease in long-term pension liability | (269) | | | (448) | |
Stock-based compensation expense | 6,323 | | | 8,415 | |
| | | |
Write-off deferred loan costs | — | | | 598 | |
Deferred loan cost amortization | 1,131 | | | 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 expenses | 58,964 | | | (13,462) | |
Other | (18,775) | | | 18,834 | |
Net cash provided by operating activities | 152,192 | | | 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 assets | 974 | | | 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 debt | 9,657 | | | 9,262 | |
Payments on long-term debt | (12,128) | | | (60,444) | |
Borrowings from revolving credit facility | 369,902 | | | 111,000 | |
Payments on revolving credit facility | (134,000) | | | (97,000) | |
Net cash overdraft financing | 9,830 | | | 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 activities | 180,911 | | | (81,044) | |
Effect of exchange rate changes on cash | (8,118) | | | (3,847) | |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 30,488 | | | (10,344) | |
Cash, cash equivalents and restricted cash at beginning of period | 69,072 | | | 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.
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
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, 2022 | | | | | | April 3, 2021 | | |
| Income | | Shares | | Per Share | | Income | | Shares | | Per 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
(“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, 2022 | December 31, 2021 |
Assets: | | | |
Total current assets | | $ | 950,802 | | $ | 686,294 | |
Property, plant and equipment, net | | 2,934,686 | | 2,710,747 | |
Other assets | | 59,196 | | 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 liabilities | | 367,478 | | 295,860 | |
Total long term debt | | 340,591 | | 344,309 | |
Total other long term liabilities | | 17,328 | | 17,531 | |
Total members' equity | | 3,053,931 | | 2,625,763 | |
Total liabilities and members' equity | | $ | 3,944,684 | | $ | 3,448,555 | |
| | | | | | | | | | | | | | |
| | Three Months Ended | | |
(in thousands) | | March 31, 2022 | March 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 expenses | | 834,064 | | 226,921 | | | | |
Operating income | | 146,628 | | 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
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, 2022 | | January 1, 2022 |
Finished product | $ | 304,644 | | | $ | 272,995 | |
Work in process | 80,955 | | | 81,158 | |
Raw material | 47,062 | | | 48,186 | |
Supplies and other | 59,033 | | | 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, 2022 | | January 1, 2022 |
Indefinite Lived Intangible Assets: | | | |
Trade names | $ | 52,502 | | | $ | 53,133 | |
| 52,502 | | | 53,133 | |
Finite Lived Intangible Assets: | | | |
Routes | 365,933 | | | 337,399 | |
Permits | 475,491 | | | 475,520 | |
Non-compete agreements | 645 | | | 645 | |
Trade names | 65,675 | | | 65,675 | |
Royalty, consulting, land use rights and leasehold | 25,738 | | | 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):
| | | | | | | | | | | | | | |
| Feed Ingredients | Food Ingredients | Fuel Ingredients | Total |
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 | | | | |
Goodwill | 814,061 | | 327,599 | | 142,819 | | 1,284,479 | |
Accumulated impairment losses | (15,914) | | (461) | | (31,580) | | (47,955) | |
|