DARLING INGREDIENTS INC.DAR
DARLING INGREDIENTS INC. Revenue Disclosure
REVENUE
The Company extends payment terms to its customers based on commercially acceptable practices. The term between invoicing and payment due date is not significant. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring finished products or performing services, which is generally based on executed agreement or purchase order.
Most of the Company’s products are shipped based on the customer specifications. Customer returns are infrequent and not material to the Company. Adjustments to net sales for sales deductions are generally recognized in the same period as the sale or when known. Customers in certain industries or countries may be required to prepay prior to shipment in order to maintain payment protection. These represent short-term prepayment from customers and are not material to the Company. The Company elected to treat shipping and handling as fulfillment costs. Sales, value-add, and other taxes collected concurrently with revenue-producing activities are excluded from revenue and booked on a net basis.
The following tables present the Company revenues disaggregated by geographic area and major product types by reportable segment for the years ended January 3, 2026, December 28, 2024 and December 30, 2023 (in thousands):
| Year Ended January 3, 2026 | ||||||||||||||
| Feed Ingredients | Food Ingredients | Fuel Ingredients | Total | |||||||||||
| Geographic Area | ||||||||||||||
| North America | $ | 3,039,422 | $ | 416,203 | $ | — | $ | 3,455,625 | ||||||
| Europe | 457,336 | 728,393 | 600,759 | 1,786,488 | ||||||||||
| China | 32,899 | 228,534 | — | 261,433 | ||||||||||
| South America | 445,132 | 125,759 | — | 570,891 | ||||||||||
| Other | 15,299 | 46,141 | — | 61,440 | ||||||||||
| Total net sales | $ | 3,990,088 | $ | 1,545,030 | $ | 600,759 | $ | 6,135,877 | ||||||
| Major product types | ||||||||||||||
| Fats | $ | 1,596,050 | $ | 183,545 | $ | — | $ | 1,779,595 | ||||||
| Used cooking oil | 445,494 | — | — | 445,494 | ||||||||||
| Proteins | 1,409,395 | — | — | 1,409,395 | ||||||||||
| Bakery | 195,444 | — | — | 195,444 | ||||||||||
| Other rendering | 295,700 | — | — | 295,700 | ||||||||||
| Food ingredients | — | 1,253,900 | — | 1,253,900 | ||||||||||
| Bioenergy | — | — | 600,759 | 600,759 | ||||||||||
| Other | 48,005 | 107,585 | — | 155,590 | ||||||||||
| Total net sales | $ | 3,990,088 | $ | 1,545,030 | $ | 600,759 | $ | 6,135,877 | ||||||
| Year Ended December 28, 2024 | ||||||||||||||
| Feed Ingredients | Food Ingredients | Fuel Ingredients | Total | |||||||||||
| Geographic Area | ||||||||||||||
| North America | $ | 2,847,178 | $ | 402,693 | $ | — | $ | 3,249,871 | ||||||
| Europe | 414,839 | 661,756 | 550,465 | 1,627,060 | ||||||||||
| China | 28,409 | 238,059 | — | 266,468 | ||||||||||
| South America | 369,759 | 134,757 | — | 504,516 | ||||||||||
| Other | 15,424 | 51,836 | — | 67,260 | ||||||||||
| Total net sales | $ | 3,675,609 | $ | 1,489,101 | $ | 550,465 | $ | 5,715,175 | ||||||
| Major product types | ||||||||||||||
| Fats | $ | 1,303,828 | $ | 160,184 | $ | — | $ | 1,464,012 | ||||||
| Used cooking oil | 351,309 | — | — | 351,309 | ||||||||||
| Proteins | 1,484,581 | — | — | 1,484,581 | ||||||||||
| Bakery | 190,462 | — | — | 190,462 | ||||||||||
| Other rendering | 293,648 | — | — | 293,648 | ||||||||||
| Food ingredients | — | 1,232,521 | — | 1,232,521 | ||||||||||
| Bioenergy | — | — | 550,465 | 550,465 | ||||||||||
| Other | 51,781 | 96,396 | — | 148,177 | ||||||||||
| Total net sales | $ | 3,675,609 | $ | 1,489,101 | $ | 550,465 | $ | 5,715,175 | ||||||
| Year Ended December 30, 2023 | ||||||||||||||
| Feed Ingredients | Food Ingredients | Fuel Ingredients | Total | |||||||||||
| Geographic Area | ||||||||||||||
| North America | $ | 3,696,423 | $ | 469,289 | $ | — | $ | 4,165,712 | ||||||
| Europe | 373,180 | 754,846 | 563,423 | 1,691,449 | ||||||||||
| China | 27,433 | 281,139 | — | 308,572 | ||||||||||
| South America | 362,657 | 171,425 | — | 534,082 | ||||||||||
| Other | 12,899 | 75,366 | — | 88,265 | ||||||||||
| Total net sales | $ | 4,472,592 | $ | 1,752,065 | $ | 563,423 | $ | 6,788,080 | ||||||
| Major product types | ||||||||||||||
| Fats | $ | 1,739,349 | $ | 164,730 | $ | — | $ | 1,904,079 | ||||||
| Used cooking oil | 497,657 | — | — | 497,657 | ||||||||||
| Proteins | 1,672,027 | — | — | 1,672,027 | ||||||||||
| Bakery | 255,214 | — | — | 255,214 | ||||||||||
| Other rendering | 243,525 | — | — | 243,525 | ||||||||||
| Food ingredients | — | 1,476,875 | — | 1,476,875 | ||||||||||
| Bioenergy | — | — | 563,423 | 563,423 | ||||||||||
| Other | 64,820 | 110,460 | — | 175,280 | ||||||||||
| Total net sales | $ | 4,472,592 | $ | 1,752,065 | $ | 563,423 | $ | 6,788,080 | ||||||
Revenue from Contracts with Customers
The Company has two primary revenue streams. Finished product revenues are recognized when control of the promised finished product is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the finished product. Service revenues are recognized in net sales when the service occurs.
Fats. Fats include the Company’s global activities related to the collection and processing of beef, poultry and pork animal by-products into finished products of non-food grade oils and food grade fats. Fats net sales are recognized when the Company ships the finished product to the customer and control has been transferred.
Proteins. Proteins include the Company’s global activities related to the collection and processing of beef, poultry and pork animal by-products into finished products of protein meal. Proteins net sales are recognized when the Company ships the finished product to the customer and control has been transferred.
Used Cooking Oil. Used cooking oil includes collection and processing of used cooking oil into finished products of non-food grade fats. Used cooking oil net sales are recognized when the Company ships the finished product to the customer and control has been transferred.
Bakery. Bakery includes collection and processing of bakery residuals into finished product including Cookie Meal®, an animal feed ingredient primarily used in poultry and swine rations. Bakery net sales are recognized when the Company ships the finished product to the customer and control has been transferred.
Other Rendering. Other rendering includes hides, pet food products, and service charges. Hides and pet food net sales are recognized when the Company ships the finished product to the customer and control has been transferred. Service revenues are recognized in net sales when the service has occurred.
Food Ingredients. Food ingredients includes collection and processing of pigskin, hide, bone and fish into finished product. It also includes harvesting, sorting and selling of hog and sheep casings as well as harvesting, purchasing and processing of hog, sheep and beef meat for pet food industry. Collagen and CTH meat and casings net sales are recognized when the Company ships the finished product to the customer and control has been transferred.
Bioenergy. Bioenergy includes Ecoson, which converts organic sludge and food waste into biogas and Rendac, which collects fallen stock and animal waste for a fee and processes these materials into fats and meals that can only be used as low grade energy or fuel for boilers and cement kilns. Net sales are recognized when the finished product is shipped to the customer and control has been transferred. Service revenues are recognized in net sales when the service has occurred.
Other. Other includes grease trap collection and environmental services to food processors in the Feed Ingredients segment and Sonac Bone and Sonac Heparin in the Food Ingredients segment. Net sales are recognized when the Company ships the finished product to the customer and control has been transferred. Service revenues are recognized in net sales when the service has occurred.
Long-Term Performance Obligations. The Company from time to time enters into long-term contracts to supply certain volumes of finished products to certain customers. Revenue recognized in fiscal 2025, 2024 and 2023 under these long-term supply contracts was approximately $143.6 million, $156.3 million, and $171.1 million, respectively, with the remaining performance obligations to be recognized in future periods (generally 2 years) of approximately $579.1 million.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 3, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 1, 2022 | |
| 2021 | Mar 2, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 27, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.