DARLING INGREDIENTS INC.DAR
DARLING INGREDIENTS INC. Segments Disclosure
BUSINESS SEGMENTS
In 2024, the Company adopted Accounting Standards Update (“ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, on a retrospective basis.
The Company sells its products through a global network of over 260 locations across five continents within three industry segments: Feed Ingredients, Food Ingredients and Fuel Ingredients. The Company's segments are determined as those operations whose results are reviewed regularly by the chief operating decision maker (“CODM”), who is the Company's Chief Executive Officer, in deciding how to allocate resources and assess performance. Each segment is organized and managed based upon the nature of the Company's markets and customers and consists of similar products and services.
The following is a description of each segment's business operations:
Feed Ingredients
Feed Ingredients consists principally of (i) the Company’s U.S. ingredients business, including the Company’s fats and proteins, used cooking oil, trap grease, the Company’s Canada ingredients business, and the ingredients and specialty products businesses conducted by Darling Ingredients International under the Sonac and FASA names (proteins, fats, and blood products) and (ii) the Company’s bakery residuals business. Feed Ingredients operations process animal by-products and used cooking oil into fats, proteins and hides.
Food Ingredients
Food Ingredients consists principally of (i) the collagen business conducted by Darling Ingredients International under the Rousselot and Gelnex names, (ii) the natural casings business conducted by Darling Ingredients International under the CTH name and (iii) certain specialty products businesses conducted by Darling Ingredients International under the Sonac name.
Fuel Ingredients
The Company’s Fuel Ingredients segment consists of (i) the Company’s investment in the DGD Joint Venture and (ii) the bioenergy business conducted by Darling Ingredients International under the Ecoson and Rendac names.
The performance of the operating segments is evaluated based on segment income (loss) which includes all revenues, operating expenses and selling, general and administrative expenses incurred at all operating locations and excludes general corporate expenses. The CODM uses segment income (loss) as the measure to make resource (including financial or capital resources) allocation decisions for each segment, predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a quarterly basis when evaluating performance for each segment and making decisions about capital allocation. Accounting policies have been applied consistently by all segments within the Company for all reporting periods. Intercompany revenue and expense amounts have been eliminated within each segment to report on the basis that management uses internally for evaluating segment performance. Our CODM is not provided with total assets by segment since we do not measure, evaluate the performance, or allocate capital resources on a segment basis. As a result, we have not disclosed any asset information by segment.
Business Segments (in thousands):
| Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate (a) | Total | |||||||||||||
| Fiscal Year Ended January 3, 2026 | |||||||||||||||||
| Total net sales | $ | 3,990,088 | $ | 1,545,030 | $ | 600,759 | $ | — | $ | 6,135,877 | |||||||
| Cost of sales and operating expenses | 3,066,243 | 1,116,978 | 479,198 | — | 4,662,419 | ||||||||||||
| Gross Margin | 923,845 | 428,052 | 121,561 | — | 1,473,458 | ||||||||||||
| Loss/(gain) on sale of assets | 879 | (685) | (534) | — | (340) | ||||||||||||
| Selling, general and administrative expenses | 309,112 | 133,809 | 33,615 | 74,622 | 551,158 | ||||||||||||
| Restructuring and asset impairment charges | 32,120 | 25,840 | — | — | 57,960 | ||||||||||||
| Depreciation and amortization | 348,502 | 117,298 | 36,355 | 6,349 | 508,504 | ||||||||||||
| Acquisition and integration costs | — | — | — | 15,942 | 15,942 | ||||||||||||
| Change in fair value of contingent consideration | 18,024 | — | — | — | 18,024 | ||||||||||||
| Equity in net loss of Diamond Green Diesel | — | — | (48,770) | — | (48,770) | ||||||||||||
| Segment operating income/(loss) | 215,208 | 151,790 | 3,355 | (96,913) | 273,440 | ||||||||||||
| Equity in net income of other unconsolidated subsidiaries | 12,759 | — | — | — | 12,759 | ||||||||||||
| Segment income/(loss) | 227,967 | 151,790 | 3,355 | (96,913) | 286,199 | ||||||||||||
| Total other expense (b) | (225,173) | ||||||||||||||||
| Income before income taxes | $ | 61,026 | |||||||||||||||
(a) Included in corporate activities are general corporate expenses and the amortization of intangibles. Assets of corporate activities include cash, unallocated prepaid expenses, deferred tax assets, prepaid pension, and miscellaneous other assets.
(b) Total other expense includes interest expense, loss on early retirement of debt, foreign currency gain (loss) and other income (expense). Interest expense, loss on early retirement of debt and foreign currency gain (loss) are separately disclosed on our Statement of Operations.
| Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total | |||||||||||||
| Fiscal Year Ended December 28, 2024 | |||||||||||||||||
| Total net sales | $ | 3,675,609 | $ | 1,489,101 | $ | 550,465 | $ | — | $ | 5,715,175 | |||||||
| Cost of sales and operating expenses | 2,886,125 | 1,115,348 | 435,864 | — | 4,437,337 | ||||||||||||
| Gross Margin | 789,484 | 373,753 | 114,601 | — | 1,277,838 | ||||||||||||
| Gain on sale of assets | (669) | (1,758) | (1,730) | — | (4,157) | ||||||||||||
| Selling, general and administrative expenses | 279,095 | 119,604 | 32,370 | 61,036 | 492,105 | ||||||||||||
| Restructuring and asset impairment charges | 3,671 | 2,123 | — | — | 5,794 | ||||||||||||
| Depreciation and amortization | 350,141 | 109,102 | 35,876 | 8,706 | 503,825 | ||||||||||||
| Acquisition and integration costs | — | — | — | 7,842 | 7,842 | ||||||||||||
| Change in fair value of contingent consideration | (46,706) | — | — | — | (46,706) | ||||||||||||
| Equity in net income of Diamond Green Diesel | — | — | 149,082 | — | 149,082 | ||||||||||||
| Segment operating income/(loss) | 203,952 | 144,682 | 197,167 | (77,584) | 468,217 | ||||||||||||
| Equity in net income of other unconsolidated subsidiaries | 11,994 | — | — | — | 11,994 | ||||||||||||
| Segment income/(loss) | 215,946 | 144,682 | 197,167 | (77,584) | 480,211 | ||||||||||||
| Total other expense (c) | (232,703) | ||||||||||||||||
| Income before income taxes | $ | 247,508 | |||||||||||||||
(c) Total other expense includes interest expense, foreign currency gain (loss) and other income (expense). Interest expense and foreign currency gain (loss) are separately disclosed on our Statement of Operations.
| Feed Ingredients | Food Ingredients | Fuel Ingredients | Corporate | Total | |||||||||||||
| Fiscal Year Ended December 30, 2023 | |||||||||||||||||
| Total net sales | $ | 4,472,592 | $ | 1,752,065 | $ | 563,423 | $ | — | $ | 6,788,080 | |||||||
| Cost of sales and operating expenses | 3,385,859 | 1,310,581 | 446,620 | — | 5,143,060 | ||||||||||||
| Gross Margin | 1,086,733 | 441,484 | 116,803 | — | 1,645,020 | ||||||||||||
| Loss/(gain) on sale of assets | 814 | (8,144) | (91) | — | (7,421) | ||||||||||||
| Selling, general and administrative expenses | 310,363 | 128,464 | 23,543 | 80,164 | 542,534 | ||||||||||||
| Restructuring and asset impairment charges | 4,026 | 14,527 | — | — | 18,553 | ||||||||||||
| Depreciation and amortization | 360,249 | 94,991 | 34,466 | 12,309 | 502,015 | ||||||||||||
| Acquisition and integration costs | — | — | — | 13,884 | 13,884 | ||||||||||||
| Change in fair value of contingent consideration | (7,891) | — | — | — | (7,891) | ||||||||||||
| Equity in net income of Diamond Green Diesel | — | — | 366,380 | — | 366,380 | ||||||||||||
| Segment operating income/(loss) | 419,172 | 211,646 | 425,265 | (106,357) | 949,726 | ||||||||||||
| Equity in net income of other unconsolidated subsidiaries | 5,011 | — | — | — | 5,011 | ||||||||||||
| Segment income/(loss) | 424,183 | 211,646 | 425,265 | (106,357) | 954,737 | ||||||||||||
| Total other expense (d) | (234,780) | ||||||||||||||||
| Income before income taxes | $ | 719,957 | |||||||||||||||
(d) Total other expense includes interest expense, foreign currency gain (loss) and other income (expense). Interest expense and foreign currency gain (loss) are separately disclosed on our Statement of Operations.
Long-lived assets related to the Company’s operations by geography were as follows (in thousands):
| January 3, 2026 | December 28, 2024 | |||||||
| Long-Lived Assets | Long-Lived Assets | |||||||
| North America | $ | 5,345,444 | $ | 5,518,153 | ||||
| Europe | 1,429,431 | 1,344,033 | ||||||
| China | 119,926 | 115,152 | ||||||
| South America | 1,831,571 | 1,636,246 | ||||||
| Other | 19,044 | 17,453 | ||||||
| Total | $ | 8,745,416 | $ | 8,631,037 | ||||
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 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Mar 1, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.