Darling Ingredients Earnings 2021-04-03

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

dar-20210403

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 3, 2021
	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 163,172,181 shares of common stock, $0.01 par value, outstanding at May 6, 2021.

DARLING INGREDIENTS INC. AND SUBSIDIARIES

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED APRIL 3, 2021

TABLE OF CONTENTS


		Page No.
	PART I: FINANCIAL INFORMATION

Item 1.	FINANCIAL STATEMENTS
	Consolidated Balance Sheets	3
	April 3, 2021 (unaudited) and January 2, 2021

	Consolidated Statements of Operations (unaudited)	4
	Three Months Ended April 3, 2021 and March 28, 2020

	Consolidated Statements of Comprehensive Income/(Loss) (unaudited)	5
	Three Months Ended April 3, 2021 and March 28, 2020

	Consolidated Statement of Stockholders' Equity (unaudited)	6
	Three Months Ended April 3, 2021 and March 28, 2020

	Consolidated Statements of Cash Flows (unaudited)	7
	Three Months Ended April 3, 2021 and March 28, 2020

	Notes to Consolidated Financial Statements (unaudited)	8

Item 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	30

Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	47

Item 4.	CONTROLS AND PROCEDURES	48


	PART II: OTHER INFORMATION

Item 1.	LEGAL PROCEEDINGS	50

Item 1A.	RISK FACTORS	50

Item 6.	EXHIBITS	50

	Signatures	51

DARLING INGREDIENTS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

April 3, 2021 and January 2, 2021

(in thousands, except share data)


	April 3, 2021		January 2, 2021
ASSETS	(unaudited)
Current assets:
Cash and cash equivalents	$	71,199	$	81,617
Restricted cash	177		103
Accounts receivable, less allowance for bad debts of $9,111 at April 3, 2021 and $10,815 at January 2, 2021	385,663		405,387
Inventories	420,659		405,922
Prepaid expenses	50,251		47,793
Income taxes refundable	3,274		3,883
Other current assets	9,544		42,289
Total current assets	940,767		986,994
Property, plant and equipment, less accumulated depreciation of $1,731,400 at April 3, 2021 and $1,702,123 at January 2, 2021	1,822,075		1,863,814
Intangible assets, less accumulated amortization of $569,477 at April 3, 2021 and $568,086 at January 2, 2021	452,539		473,680
Goodwill	1,241,242		1,260,240
Investment in unconsolidated subsidiaries	915,085		804,682
Operating lease right-of-use assets	145,238		146,563
Other assets	59,099		60,682
Deferred income taxes	15,402		16,676
	$	5,591,447	$	5,613,331
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	26,997	$	27,538
Accounts payable, principally trade	245,648		255,340
Income taxes payable	15,627		17,497
Current operating lease liabilities	38,064		39,459
Accrued expenses	311,371		335,471
Total current liabilities	637,707		675,305
Long-term debt, net of current portion	1,417,534		1,480,531
Long-term operating lease liabilities	108,777		109,707
Other non-current liabilities	115,799		117,371
Deferred income taxes	281,684		276,208
Total liabilities	2,561,501		2,659,122
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value; 250,000,000 shares authorized; 171,519,389 and 169,880,238 shares issued at April 3, 2021 and January 2, 2021, respectively	1,715		1,699
Additional paid-in capital	1,611,845		1,597,429
Treasury stock, at cost; 8,364,523 and 7,679,849 shares at April 3, 2021 and January 2, 2021, respectively	(199,851)		(151,710)
Accumulated other comprehensive loss	(295,796)		(252,433)
Retained earnings	1,848,690		1,696,924
Total Darling's stockholders’ equity	2,966,603		2,891,909
Noncontrolling interests	63,343		62,300
Total stockholders' equity	$	3,029,946	$	2,954,209
	$	5,591,447	$	5,613,331

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 3, 2021 and March 28, 2020

(in thousands, except per share data)

(unaudited)


	Three Months Ended
	April 3, 2021		March 28, 2020
Net sales	$	1,046,716	$	852,842
Costs and expenses:
Cost of sales and operating expenses	772,784		646,908
Loss/(gain) on sale of assets	(64)		61
Selling, general and administrative expenses	97,398		96,193
Restructuring and asset impairment charges	778		—

Depreciation and amortization	78,534		84,671
Total costs and expenses	949,430		827,833
Equity in net income of Diamond Green Diesel	102,225		97,820
Operating income	199,511		122,829

Other expense:
Interest expense	(16,428)		(19,090)

Foreign currency gain/(loss)	(410)		1,664

Other expense, net	(1,159)		(1,881)
Total other expense	(17,997)		(19,307)

Equity in net income of other unconsolidated subsidiaries	612		869
Income before income taxes	182,126		104,391

Income tax expense	28,708		18,300

Net income	153,418		86,091

Net income attributable to noncontrolling interests	(1,652)		(581)

Net income attributable to Darling	$	151,766	$	85,510

Basic income per share	$	0.93	$	0.52
Diluted income per share	$	0.90	$	0.51

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 3, 2021 and March 28, 2020

(in thousands)

(unaudited)


	Three Months Ended
	April 3, 2021		March 28, 2020
Net income	$	153,418	$	86,091
Other comprehensive income/(loss), net of tax:
Foreign currency translation	(38,222)		(65,236)
Pension adjustments	792		648

Soybean meal derivative adjustments	(257)		—
Corn option derivative adjustments	(800)		136
Heating oil derivative adjustments	3,464		10,870
Foreign exchange derivative adjustments	(6,806)		(9,151)
Total other comprehensive loss, net of tax	(41,829)		(62,733)
Total comprehensive income	$	111,589	$	23,358
Comprehensive income attributable to noncontrolling interests	3,186		492
Comprehensive income attributable to Darling	$	108,403	$	22,866

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 3, 2021 and March 28, 2020

(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 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


	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 December 28, 2019	163,775,111	$	1,686	$	1,560,897	$	(75,022)	$	(321,847)	$	1,400,105	$	2,565,819	$	77,531	$	2,643,350

Net income	—	—		—		—		—		85,510		85,510		581		86,091

Deductions to noncontrolling interests	—	—		3,271		—		—		—		3,271		(13,146)		(9,875)
Pension liability adjustments, net of tax	—	—		—		—		648		—		648		—		648

Heating oil derivative adjustments, net of tax	—	—		—		—		10,870		—		10,870				10,870
Corn option derivative adjustments, net of tax	—	—		—		—		136		—		136		—		136
Foreign exchange derivative adjustments, net of tax	—	—		—		—		(9,151)		—		(9,151)		—		(9,151)
Foreign currency translation adjustments	—	—		—		—		(65,147)		—		(65,147)		(89)		(65,236)
Issuance of non-vested stock	8,000	—		40		—		—		—		40		—		40
Stock-based compensation	—	—		10,778		—		—		—		10,778		—		10,778
Treasury stock	(2,372,876)	—		—		(60,082)		—		—		(60,082)		—		(60,082)
Issuance of common stock	447,729	5		868		—		—		—		873		—		873
Balances at March 28, 2020	161,857,964	$	1,691	$	1,575,854	$	(135,104)	$	(384,491)	$	1,485,615	$	2,543,565	$	64,877	$	2,608,442

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 3, 2021 and March 28, 2020

(in thousands)

(unaudited)


	April 3, 2021		March 28, 2020
Cash flows from operating activities:
Net Income	$	153,418	$	86,091
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	78,534		84,671
Loss (gain) on disposal of property, plant, equipment and other assets	(64)		61

Asset impairment	138		—

Deferred taxes	11,809		6,377
Decrease in long-term pension liability	(448)		(264)
Stock-based compensation expense	8,415		10,818

Write-off deferred loan costs	598		—
Deferred loan cost amortization	1,040		1,416
Equity in net income of Diamond Green Diesel and other unconsolidated subsidiaries	(102,837)		(98,689)
Distributions of earnings from other unconsolidated subsidiaries	57		—
Changes in operating assets and liabilities, net of effects from acquisitions:
Accounts receivable	10,721		487
Income taxes refundable/payable	(760)		348
Inventories and prepaid expenses	(27,188)		(24,999)
Accounts payable and accrued expenses	(13,462)		(16,790)
Other	18,834		(14,981)
Net cash provided by operating activities	138,805		34,546
Cash flows from investing activities:
Capital expenditures	(60,751)		(61,599)
Acquisitions, net of cash acquired	(340)		—
Investment in unconsolidated subsidiary	(4,449)		—

Gross proceeds from disposal of property, plant and equipment and other assets	1,629		379

Payments related to routes and other intangibles	(347)		(3,416)
Net cash used by investing activities	(64,258)		(64,636)
Cash flows from financing activities:
Proceeds from long-term debt	9,262		8,264
Payments on long-term debt	(60,444)		(8,638)
Borrowings from revolving credit facility	111,000		219,933
Payments on revolving credit facility	(97,000)		(100,782)
Net cash overdraft financing	499		(9,594)

Issuance of common stock	50		67
Repurchase of common stock	—		(55,044)
Minimum withholding taxes paid on stock awards	(42,268)		(4,328)
Acquisition of noncontrolling interest	—		(8,784)
Distributions to noncontrolling interests	(2,143)		(688)
Net cash provided (used) by financing activities	(81,044)		40,406
Effect of exchange rate changes on cash	(3,847)		(6,916)
Net increase (decrease) in cash, cash equivalents and restricted cash	(10,344)		3,400
Cash, cash equivalents and restricted cash at beginning of period	81,720		73,045
Cash, cash equivalents and restricted cash at end of period	$	71,376	$	76,445
Supplemental disclosure of cash flow information:
Accrued capital expenditures	$	(9,678)	$	(1,630)
Cash paid during the period for:
Interest, net of capitalized interest	$	2,774	$	5,863
Income taxes, net of refunds	$	15,578	$	11,453
Non-cash operating activities
Operating lease right of use asset obtained in exchange for new lease liabilities	$	12,404	$	9,121
Non-cash financing activities
Debt issued for assets	$	—	$	21

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

DARLING INGREDIENTS INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

April 3, 2021

(unaudited)

(1)General

The accompanying consolidated financial statements for the three month periods ended April 3, 2021 and March 28, 2020, 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 2, 2021.

(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 3, 2021, and include the 13 weeks ended April 3, 2021, and the 13 weeks ended March 28, 2020.

The Company considers all short-term highly liquid instruments, with an original maturity of three months or less, to be cash equivalents. Cash balances are recorded net of book overdrafts when a bank right-of-offset exists. All other book overdrafts are recorded in accounts payable and the change in the related balance is reflected in operating activities on the Consolidated Statement of Cash Flows. In addition, the Company has bank overdrafts, which are considered a form of short-term financing with changes in the related balance reflected in financing activities in the Consolidated Statement of Cash Flows.

Restricted cash represents amounts required to be set aside as collateral for environmental claims and are insignificant to the Company.

(d) Accounts Receivable and Allowance for Doubtful Accounts

The Company maintains allowances for doubtful accounts for estimated losses resulting from customers’ non-payment of trade accounts receivable owed to the Company. These trade receivables arise in the ordinary course of business from sales of finished product or services to the Company’s customers. The estimate of

allowance for doubtful accounts is based upon the Company’s bad debt experience adjusted for differences in asset-specific risk characteristic, current economic conditions, and forecasts of future economic conditions. If the financial condition of the Company’s customers deteriorates, resulting in the customers’ inability to pay the Company’s receivables as they come due, additional allowances for doubtful accounts may be required.

The Company has entered into agreements with third party banks to factor certain of the Company's trade receivables in order to enhance working capital by turning trade receivables into cash faster. Under these agreements, the Company sells certain selected customers’ trade receivables to third party banks without recourse for cash less a nominal fee. For the three months ended April 3, 2021 and March 28, 2020, the Company sold approximately $106.9 million and $84.5 million of its trade receivables and incurred approximately $0.3 million and $0.4 million in fees, which are recorded as interest expense, respectively.

(e) 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.

(f) Foreign Currency Translation and Remeasurement

Foreign currency translation is included as a component of accumulated other comprehensive loss and reflects the adjustments resulting from translating the foreign currency denominated financial statements of foreign subsidiaries into U.S. dollars. The functional currency of the Company's foreign subsidiaries is the currency of the primary economic environment in which the entity operates, which is generally the local currency of the country. Accordingly, assets and liabilities of the foreign subsidiaries are translated into U.S. dollars at fiscal period end exchange rates, including intercompany foreign currency transactions that are of long-term investment nature. Income and expense items are translated at average exchange rates occurring during the period. Changes in exchange rates that affect cash flows and the related receivables or payables are recognized as transaction gains/(losses) in determining net income. The Company incurred net foreign currency translation losses of approximately $39.8 million and $65.1 million for the three months ended April 3, 2021 and March 28, 2020, respectively.

(g) Leases

The Company accounts for leases in accordance with Accounting Standard Codification (“ASC”) Topic 842, leases. The Company determines if an arrangement is a lease at inception for which the Company recognizes the right-of-use (“ROU”) asset and a lease liability at the lease commencement date. For operating leases, the lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date. In determining the lease liability, the Company applies a discount rate to the minimum lease payments within each lease. ASC 842 requires the Company to use the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. To estimate the Company's incremental borrowing rate over various terms, a comparable market yield curve consistent with the Company's credit quality is determined. The lease term for all of the Company's leases include the noncancellable period of the lease plus any additional periods covered by either a Company option to extend the lease that the Company is reasonably certain to exercise or when a triggering event occurs. The Company has elected to not recognize a ROU asset and lease liability with an initial term of 12 months or less at lease commencement. Operating leases are included on the Company's balance sheet as a ROU asset, current operating lease liabilities and long-term operating lease liabilities. For finance leases, the lease liability is initially measured in the same manner and date as for the operating leases, and is subsequently measured at amortized cost using the effective interest method. Finance leases are included in property, plant and equipment, current portion of long-term debt and long-term debt, net of current portion, but are not significant to the Company.

The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for lease payments made at or before the lease commencement date, plus any direct costs incurred less any

lease incentives received. For operating leases, the ROU asset is subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the unamortized balance of the lease incentives received. Some leases payments contain rent escalation clauses (including index-based escalations), initially measured using the index at the lease commencement date. The Company recognizes minimum rental expense on a straight-line basis based on the fixed components of the lease arrangement.

The Company uses the long-lived assets impairment guidance in ASC subtopic 360-10, Property, Plant and Equipment - Overall, to determine whether the ROU asset is impaired, and if so, the amount of the impairment loss to recognize. The Company monitors for events or changes in circumstances that require a reassessment of one of its leases. When a reassessment results in the remeasurement of a lease liability, a corresponding adjustment is made to the carrying amount of the corresponding ROU asset unless doing so would reduce the carrying amount of the ROU asset to an amount less than zero. In that case, the amount of the adjustment that would result in a negative ROU asset balance is recorded in the consolidated statement of operations.

(h) Use of Estimates

The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

If it is at least reasonably possible that the estimate of the effect on the financial statements of a condition, situation, or set of circumstances that exist at the date of the financial statements will change in the near term due to one or more future confirming events, and the effect of the change would be material to the financial statements, the Company will disclose the nature of the uncertainty and include an indication that it is at least reasonably possible that a change in the estimate will occur in the near term. If the estimate involves certain loss contingencies, the disclosure will also include an estimate of the probable loss or range of loss or state that an estimate cannot be made.

As a result of the current global COVID-19 pandemic, and related government imposed movement restrictions and initiatives implemented to reduce the global transmission of COVID-19, we have evaluated the potential impact to the Company's operations and for any indicators of potential triggering events that could indicate certain of the Company's assets may be impaired. Through the three months ended April 3, 2021, the Company has not observed any impairments of the Company's assets or a significant change in their fair value due to the COVID-19 pandemic.

(i) 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 3, 2021					March 28, 2020
	Income		Shares	Per Share		Income		Shares	Per Share
Basic:
Net Income attributable to Darling	$	151,766	162,925	$	0.93	$	85,510	163,474	$	0.52
Diluted:
Effect of dilutive securities:
Add: Option shares in the money and dilutive effect of non-vested stock awards			5,733					6,749
Less: Pro forma treasury shares			(909)					(2,296)
Diluted:
Net income attributable to Darling	$	151,766	167,749	$	0.90	$	85,510	167,927	$	0.51

For the three months ended April 3, 2021 and March 28, 2020, respectively, zero and 551,877 outstanding stock options were excluded from diluted income per common share as the effect was antidilutive. For the three months ended April 3, 2021 and March 28, 2020, respectively, 162,896 and 406,502 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

Price	19.80	EPS	1
Shares	168	P/E	28
MCap	3,335	P/FCF	13
Net Debt	1,491	EBIT	144
TEV	4,826	TEV/EBIT	34
TTM 2019-09-28, in MM, except price, ratios

10-Q	2021-04-03	Filed 2021-05-11
10-K	2021-01-02	Filed 2021-03-02
10-Q	2020-09-26	Filed 2020-11-03
10-Q	2020-06-27	Filed 2020-08-05
10-Q	2020-03-28	Filed 2020-05-06
10-K	2019-12-28	Filed 2020-02-25
10-Q	2019-09-28	Filed 2019-11-06
10-Q	2019-06-29	Filed 2019-08-07
10-Q	2019-03-30	Filed 2019-05-08
10-K	2018-12-29	Filed 2019-02-27
10-Q	2018-09-29	Filed 2018-11-06
10-Q	2018-06-30	Filed 2018-08-08
10-Q	2018-03-31	Filed 2018-05-09
10-K	2017-12-30	Filed 2018-02-27
10-Q	2017-09-30	Filed 2017-11-07
10-Q	2017-07-01	Filed 2017-08-09
10-Q	2017-04-01	Filed 2017-05-11
10-K	2016-12-31	Filed 2017-02-28
10-Q	2016-10-01	Filed 2016-11-10
10-Q	2016-07-02	Filed 2016-08-11
10-Q	2016-04-02	Filed 2016-05-12
10-K	2016-01-02	Filed 2016-03-01
10-Q	2015-10-03	Filed 2015-11-12
10-Q	2015-07-04	Filed 2015-08-13
10-Q	2015-04-04	Filed 2015-05-14
10-K	2015-01-03	Filed 2015-03-04
10-Q	2014-09-27	Filed 2014-11-06
10-Q	2014-06-28	Filed 2014-08-07
10-Q	2014-03-29	Filed 2014-05-08
10-K	2013-12-28	Filed 2014-02-26
10-Q	2013-09-28	Filed 2013-11-07
10-Q	2013-06-29	Filed 2013-08-08
10-Q	2013-03-30	Filed 2013-05-09
10-K	2012-12-29	Filed 2013-02-27
10-Q	2012-09-29	Filed 2012-11-08
10-Q	2012-06-30	Filed 2012-08-09
10-Q	2012-03-31	Filed 2012-05-10
10-K	2011-12-31	Filed 2012-02-29
10-Q	2011-10-01	Filed 2011-11-10
10-Q	2011-07-02	Filed 2011-08-11
10-Q	2011-04-02	Filed 2011-05-12
10-K	2011-01-01	Filed 2011-03-02
10-Q	2010-10-02	Filed 2010-11-10
10-Q	2010-07-03	Filed 2010-08-12
10-Q	2010-04-03	Filed 2010-05-13
10-K	2010-01-02	Filed 2010-03-03

8-K	2021-01-28	Other Events, Exhibits
8-K	2020-12-15	Officers, Exhibits
8-K	2020-12-01	Officers, Exhibits
8-K	2020-11-03
8-K	2020-09-18
8-K	2020-08-05
8-K	2020-05-06
8-K	2020-05-05
8-K	2020-03-02
8-K	2020-02-25
8-K	2020-01-15
8-K	2020-01-02
8-K	2019-11-06
8-K	2019-09-09
8-K	2019-08-07
8-K	2019-05-14
8-K	2019-05-08
8-K	2019-05-07
8-K	2019-05-01
8-K	2019-04-02
8-K	2019-03-28
8-K	2019-03-27
8-K	2019-03-19
8-K	2019-02-27
8-K	2018-11-07
8-K	2018-11-05
8-K	2018-11-05
8-K	2018-10-11
8-K	2018-10-05
8-K	2018-08-08
8-K	2018-05-21
8-K	2018-05-16
8-K	2018-05-09
8-K	2018-05-08
8-K	2018-05-02
8-K	2018-04-25
8-K	2018-04-23
8-K	2018-02-27
8-K	2018-01-15

EX-10.1	ex101-formofglobalpsuagree.htm
EX-10.2	ex102-formofglobalrsuagree.htm
EX-31.1	ex311-20210403.htm
EX-31.2	ex312-20210403.htm
EX-32	ex32-20210403.htm

DAR 10Q Quarterly Report

Darling Ingredients Earnings 2021-04-03