| Schedule of Comprehensive Income (Loss) |
The components of other comprehensive income/(loss) and the related tax impacts for the three and six months ended June 28, 2025 and June 29, 2024 are as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Before-Tax | Tax (Expense) | Net-of-Tax | | Amount | or Benefit | Amount | | June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | | Defined benefit pension plans | | | | | | | | Actuarial gain recognized | $ | 50 | | $ | — | | $ | (12) | | $ | — | | $ | 38 | | $ | — | | | Amortization of prior service (cost)/benefit | (2) | | (6) | | 1 | | 2 | | (1) | | (4) | | | Amortization of actuarial loss | 207 | | 349 | | (49) | | (83) | | 158 | | 266 | | | Amortization of settlement | 5,854 | | — | | (1,423) | | — | | 4,431 | | — | | | Total defined benefit pension plans | 6,109 | | 343 | | (1,483) | | (81) | | 4,626 | | 262 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Corn option derivatives | | | | | | | | Reclassified to earnings | 18 | | — | | (5) | | — | | 13 | | — | | | Activity recognized in other comprehensive income/(loss) | (4) | | 1,404 | | 2 | | (341) | | (2) | | 1,063 | | | Total corn option derivatives | 14 | | 1,404 | | (3) | | (341) | | 11 | | 1,063 | | | Heating oil derivatives at DGD (Note 15) | | | | | | | | Activity recognized in other comprehensive income/(loss) | (1,218) | | (4,507) | | 296 | | 1,095 | | (922) | | (3,412) | | | Total heating oil derivatives | (1,218) | | (4,507) | | 296 | | 1,095 | | (922) | | (3,412) | | | Interest swap derivatives | | | | | | | | Reclassified to earnings | (4,476) | | (9,305) | | 1,087 | | 2,261 | | (3,389) | | (7,044) | | | Activity recognized in other comprehensive income/(loss) | 424 | | 5,026 | | (102) | | (1,222) | | 322 | | 3,804 | | | Total interest swap derivatives | (4,052) | | (4,279) | | 985 | | 1,039 | | (3,067) | | (3,240) | | | Foreign exchange derivatives | | | | | | | | Reclassified to earnings | (851) | | (1,399) | | 291 | | 462 | | (560) | | (937) | | | Activity recognized in other comprehensive income/(loss) | 19,063 | | (27,004) | | (6,469) | | 9,152 | | 12,594 | | (17,852) | | | Total foreign exchange derivatives | 18,212 | | (28,403) | | (6,178) | | 9,614 | | 12,034 | | (18,789) | | | | | | | | | | Foreign currency translation | 135,013 | | (168,285) | | (3,932) | | 247 | | 131,081 | | (168,038) | | | | | | | | | | Other comprehensive income/(loss) | $ | 154,078 | | $ | (203,727) | | $ | (10,315) | | $ | 11,573 | | $ | 143,763 | | $ | (192,154) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended | | Before-Tax | Tax (Expense) | Net-of-Tax | | Amount | or Benefit | Amount | | June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | | Defined benefit pension plans | | | | | | | | Actuarial gain recognized | $ | 50 | | $ | — | | $ | (12) | | $ | — | | $ | 38 | | $ | — | | | Amortization of prior service (cost)/benefit | (4) | | (12) | | 2 | | 5 | | (2) | | (7) | | | Amortization of actuarial loss | 456 | | 698 | | (108) | | (167) | | 348 | | 531 | | | Amortization of settlement | 5,854 | | — | | (1,423) | | — | | 4,431 | | — | | | Total defined benefit pension plans | 6,356 | | 686 | | (1,541) | | (162) | | 4,815 | | 524 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Soybean meal option derivatives | | | | | | | | Reclassified to earnings | — | | (33) | | — | | 8 | | — | | (25) | | | | | | | | | | Total soybean meal option derivatives | — | | (33) | | — | | 8 | | — | | (25) | | | Corn option derivatives | | | | | | | | Reclassified to earnings | 385 | | — | | (94) | | — | | 291 | | — | | | Activity recognized in other comprehensive income/(loss) | (257) | | 1,404 | | 63 | | (341) | | (194) | | 1,063 | | | Total corn option derivatives | 128 | | 1,404 | | (31) | | (341) | | 97 | | 1,063 | | | Heating oil derivatives at DGD (Note 15) | | | | | | | | Activity recognized in other comprehensive income/(loss) | 182 | | (46,426) | | (45) | | 11,281 | | 137 | | (35,145) | | | Total heating oil derivatives | 182 | | (46,426) | | (45) | | 11,281 | | 137 | | (35,145) | | | Interest swap derivatives | | | | | | | | Reclassified to earnings | 13,217 | | (26,785) | | (3,212) | | 6,509 | | 10,005 | | (20,276) | | | Activity recognized in other comprehensive income/(loss) | (18,900) | | 27,891 | | 4,593 | | (6,778) | | (14,307) | | 21,113 | | | Total interest swap derivatives | (5,683) | | 1,106 | | 1,381 | | (269) | | (4,302) | | 837 | | | Foreign exchange derivatives | | | | | | | | Reclassified to earnings | (4,513) | | (7,395) | | 1,523 | | 2,508 | | (2,990) | | (4,887) | | | Activity recognized in other comprehensive income/(loss) | 52,222 | | (31,419) | | (17,624) | | 10,658 | | 34,598 | | (20,761) | | | Total foreign exchange derivatives | 47,709 | | (38,814) | | (16,101) | | 13,166 | | 31,608 | | (25,648) | | | | | | | | | | Foreign currency translation | 256,107 | | (233,628) | | (5,694) | | 920 | | 250,413 | | (232,708) | | | | | | | | | | Other comprehensive income/(loss) | $ | 304,799 | | $ | (315,705) | | $ | (22,031) | | $ | 24,603 | | $ | 282,768 | | $ | (291,102) | |
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| Reclassification out of Accumulated Other Comprehensive Income (Loss) |
The following table presents the amounts reclassified out of each component of other comprehensive income/(loss), net of tax, for the three and six months ended June 28, 2025 and June 29, 2024 as follows (in thousands): | | | | | | | | | | | | | | | | | | | Three Months Ended | Six Months Ended | | | June 28, 2025 | June 29, 2024 | June 28, 2025 | June 29, 2024 | Statement of Operations Classification | | Derivative instruments | | | | | | | Soybean meal option derivatives | $ | — | | $ | — | | $ | — | | $ | 33 | | Net sales | | Foreign exchange contracts | 851 | | 1,399 | | 4,513 | | 7,395 | | Net sales | | | | | | | | Corn option derivatives | (18) | | — | | (385) | | — | | Cost of sales and operating expenses | | Interest swaps | 4,476 | | 9,305 | | (13,217) | | 26,785 | | Foreign currency gain/(loss) and interest expense | | 5,309 | | 10,704 | | (9,089) | | 34,213 | | Total before tax | | (1,373) | | (2,723) | | 1,783 | | (9,025) | | Income taxes | | 3,936 | | 7,981 | | (7,306) | | 25,188 | | Net of tax | | Defined benefit pension plans | | | | | | | Amortization of prior service cost | $ | 2 | | $ | 6 | | $ | 4 | | $ | 12 | | (a) | | Amortization of actuarial loss | (207) | | (349) | | (456) | | (698) | | (a) | | Amortization of settlement | (5,854) | | — | | (5,854) | | — | | (a) | | (6,059) | | (343) | | (6,306) | | (686) | | Total before tax | | 1,471 | | 81 | | 1,529 | | 162 | | Income taxes | | (4,588) | | (262) | | (4,777) | | (524) | | Net of tax | | Total reclassifications | $ | (652) | | $ | 7,719 | | $ | (12,083) | | $ | 24,664 | | Net of tax |
(a)These items are included in the computation of net periodic pension cost. See Note 14 (Employee Benefit Plans) to the Company’s Consolidated Financial Statements included herein for additional information.
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| Schedule of Accumulated Other Comprehensive Income (Loss) |
The following table presents changes in each component of accumulated other comprehensive income/(loss) as of June 28, 2025 as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | Six Months Ended June 28, 2025 | | | Foreign | | | Defined | | | | Currency | Derivative | | Benefit | | | | Translation | Instruments | | Pension Plans | Total | | Accumulated Other Comprehensive income/ (loss) December 28, 2024, attributable to Darling, net of tax | | $ | (648,827) | | $ | (23,825) | | | $ | (11,589) | | $ | (684,241) | | | Other comprehensive loss before reclassifications | | 250,413 | | 20,234 | | | 38 | | 270,685 | | | Amounts reclassified from accumulated other comprehensive income/ (loss) | | — | | 7,306 | | | 4,777 | | 12,083 | | | | | | | | | | Net current-period other comprehensive income | | 250,413 | | 27,540 | | | 4,815 | | 282,768 | | Noncontrolling interest | | (5,211) | | — | | | — | | (5,211) | | | Accumulated Other Comprehensive income/ (loss) June 28, 2025, attributable to Darling, net of tax | | $ | (393,203) | | $ | 3,715 | | | $ | (6,774) | | $ | (396,262) | |
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