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 as a result of the recent expanded capacity is now capable of processing approximately 20,000 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)	September 30, 2018		December 31, 2017
Assets:
Total current assets	$	178,875	$	202,778
Property, plant and equipment, net	567,092		435,328
Other assets	26,949		4,655
Total assets	$	772,916	$	642,761
Liabilities and members' equity:
Total current portion of long term debt	$	182	$	17,023
Total other current liabilities	46,502		40,705
Total long term debt	8,535		36,730
Total other long term liabilities	533		450
Total members' equity	717,164		547,853
Total liabilities and members' equity	$	772,916	$	642,761



	Three Months Ended						Nine Months Ended
(in thousands)	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
Revenues:
Operating revenues	$	104,811		$	175,585		$	407,121		$	451,768
Expenses:
Total costs and expenses less depreciation, amortization and accretion expense	103,794			154,446			169,632			395,743
Depreciation, amortization and accretion expense	6,516			6,733			18,890			22,867
Total costs and expenses	110,310			161,179			188,522			418,610
Operating income	(5,499		)	14,406			218,599			33,158
Other income	556			408			1,348			959
Interest and debt expense, net	(318		)	(455		)	(637		)	(2,306		)
Net income	$	(5,261	)	$	14,359		$	219,310		$	31,811

As of September 29, 2018 under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $358.6 million on the consolidated balance sheet. The Company has recorded an equity net loss of approximately $2.6 million for the three months ended September 29, 2018 and an equity net gain of approximately $7.2 million for the three months ended September 30, 2017. The Company has recorded an equity net gain of approximately $109.7 million and $15.9 million for the nine months ended September 29, 2018 and September 30, 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 nine 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.