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 (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 (the “DGD Facility”), which is capable of processing approximately 12,000 barrels per day of input feedstock to produce renewable diesel fuel and certain other co-products, and is 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.

On May 31, 2011, the DGD Joint Venture and Diamond Green Diesel LLC, a wholly-owned subsidiary of the DGD Joint Venture (“Opco”), entered into (i) a facility agreement (the “Facility Agreement”) with Diamond Alternative Energy, LLC, a wholly-owned subsidiary of Valero (the “Lender”), and (ii) a loan agreement (the “Loan Agreement”) with the Lender, which provided the DGD Joint Venture with a 14 year multiple advance term loan facility of approximately $221.3 million (the “JV Loan”) to support the design, engineering and construction of the DGD Facility, which is now in production. During the three months ended March 31, 2018, the DGD Joint Venture repaid all remaining outstanding amounts under the Facility Agreement and the Loan Agreement.

In addition to the DGD Joint Venture, the Company has investments in other unconsolidated subsidiaries that are insignificant to the Company. Selected financial information for the Company's DGD Joint Venture is as follows (in thousands):



(in thousands)	March 31, 2018		December 31, 2017
Assets:
Total current assets	$	295,775	$	202,778
Property, plant and equipment, net	475,218		435,328
Other assets	11,959		4,655
Total assets	$	782,952	$	642,761
Liabilities and members' equity:
Total current portion of long term debt	$	—	$	17,023
Total other current liabilities	40,242		40,705
Total long term debt	—		36,730
Total other long term liabilities	458		450
Total members' equity	742,252		547,853
Total liabilities and member's equity	$	782,952	$	642,761



	Three Months Ended
(in thousands)	March 31, 2018			March 31, 2017
Revenues:
Operating revenues	$	150,321		$	125,397
Expenses:
Total costs and expenses less depreciation, amortization and accretion expense	(49,821		)	115,322
Depreciation, amortization and accretion expense	6,120			8,113
Total costs and expenses	(43,701		)	123,435
Operating income	194,022			1,962
Other income	377			223
Interest and debt expense, net	—			(990		)
Net income	$	194,399		$	1,195

As of March 31, 2018 under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $371.1 million on the consolidated balance sheet and has recorded an equity net gain of approximately $97.2 million and $0.6 million for the three months ended March 31, 2018 and April 1, 2017, respectively. In February 2018, the blender tax credits for calendar year 2017 were retroactively reinstated by the U.S. Congress. Fiscal 2017 results do not include any blenders tax credits, while in the first quarter of fiscal 2018, the DGD Joint Venture recorded approximately $160.4 million for the 2017 reinstated blenders tax credits. The DGD Joint Venture recorded the blenders tax credits in the first quarter of fiscal 2018 as a reduction of total costs and expenses in the above table. The biodiesel blenders tax credit have not been reinstated for fiscal 2018.