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.

Selected financial information for the Company's DGD Joint Venture is as follows (in thousands):



(in thousands)	June 30, 2018		December 31, 2017
Assets:
Total current assets	$	218,189	$	202,778
Property, plant and equipment, net	529,312		435,328
Other assets	18,861		4,655
Total assets	$	766,362	$	642,761
Liabilities and members' equity:
Total current portion of long term debt	$	176	$	17,023
Total other current liabilities	34,714		40,705
Total long term debt	8,583		36,730
Total other long term liabilities	465		450
Total members' equity	722,424		547,853
Total liabilities and members' equity	$	766,362	$	642,761



	Three Months Ended						Six Months Ended
(in thousands)	June 30, 2018			June 30, 2017			June 30, 2018			June 30, 2017
Revenues:
Operating revenues	$	151,989		$	150,786		$	302,310		$	276,183
Expenses:
Total costs and expenses less depreciation, amortization and accretion expense	115,659			125,975			65,838			241,297
Depreciation, amortization and accretion expense	6,254			8,021			12,374			16,134
Total costs and expenses	121,913			133,996			78,212			257,431
Operating income	30,076			16,790			224,098			18,752
Other income	415			328			792			551
Interest and debt expense, net	(319		)	(861		)	(319		)	(1,851		)
Net income	$	30,172		$	16,257		$	224,571		$	17,452

As of June 30, 2018 under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $361.2 million on the consolidated balance sheet. The Company has recorded an equity net gain of approximately $15.1 million and $8.1 million for the three months ended June 30, 2018 and July 1, 2017, respectively. The Company has recorded an equity net gain of approximately $112.3 million and $8.7 million for the six months ended June 30, 2018 and July 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 six months 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. In the second quarter of fiscal 2018, the Company received a dividend distribution of $25.0 million from the DGD Joint Venture.

In addition to the DGD Joint Venture, the Company has investments in other unconsolidated subsidiaries that are insignificant to the Company.