XML 22 R11.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Investment in Unconsolidated Subsidiary | 6 Months Ended
--- | ---
Jun. 29, 2024
Equity Method Investments and Joint Ventures [Abstract] |
Investment in Unconsolidated Subsidiary | 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 (“DGD” or the “DGD Joint Venture”). The DGD Joint Venture is owned 50% / 50% with Valero. Selected financial information for the Company’s DGD Joint Venture is as follows:
(in thousands) |  | June 30, 2024 | December 31, 2023
Assets: |  |  |
Total current assets |  | $ | 1,849,534 |  | $ | 1,877,430 |
Property, plant and equipment, net |  | 3,888,370 |  | 3,838,800 |
Other assets |  | 122,629 |  | 89,697 |
Total assets |  | $ | 5,860,533 |  | $ | 5,805,927 |
Liabilities and members' equity: |  |  |
Total current portion of long term debt |  | $ | 29,251 |  | $ | 278,639 |
Total other current liabilities |  | 404,090 |  | 417,918 |
Total long term debt |  | 722,346 |  | 737,097 |
Total other long term liabilities |  | 17,189 |  | 16,996 |
Total members' equity |  | 4,687,657 |  | 4,355,277 |
Total liabilities and members' equity |  | $ | 5,860,533 |  | $ | 5,805,927 |
|  | Three Months Ended |  | Six Months Ended
(in thousands) |  | June 30, 2024 | June 30, 2023 |  | June 30, 2024 | June 30, 2023
Revenues: |  |  |  |  |  |
Operating revenues |  | $ | 1,184,076 |  | $ | 2,246,111 |  |  | $ | 2,595,191 |  | $ | 3,926,161 |
Expenses: |  |  |  |  |  |
Total costs and expenses less lower of cost or market inventory valuation adjustment and depreciation, amortization and accretion expense |  | 1,014,927 |  | 1,751,315 |  |  | 2,174,283 |  | 3,172,719 |
Lower of cost or market (LCM) inventory valuation adjustment |  | 15,866 |  | — |  |  | 37,504 |  | — |
Depreciation, amortization and accretion expense |  | 61,910 |  | 58,315 |  |  | 127,200 |  | 116,922 |
Total costs and expenses |  | 1,092,703 |  | 1,809,630 |  |  | 2,338,987 |  | 3,289,641 |
Operating income |  | 91,373 |  | 436,481 |  |  | 256,204 |  | 636,520 |
Other income |  | 6,058 |  | 2,121 |  |  | 9,278 |  | 4,162 |
Interest and debt expense, net |  | (9,037) |  | (12,674) |  |  | (20,279) |  | (26,080) |
Income before income tax expense |  | 88,394 |  | 425,928 |  |  | $ | 245,203 |  | $ | 614,602 |
Income tax benefit |  | — |  | — |  |  | (29) |  | — |
Net income |  | $ | 88,394 |  | $ | 425,928 |  |  | $ | 245,232 |  | $ | 614,602 |
As of June 29, 2024, under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $2,347.2 million on the consolidated balance sheet. The Company has recorded equity in net income from the DGD Joint Venture of approximately $44.2 million and $213.0 million for the three months ended June 29, 2024 and July 1, 2023, respectively. The Company has recorded equity in net income from the DGD Joint Venture of approximately $122.6 million and $307.3 million for the six months ended June 29, 2024 and July 1, 2023, respectively. In December 2019, the blenders tax credit was extended for calendar years 2020, 2021 and 2022. On August 16, 2022, the U.S. government enacted the Inflation Reduction Act ( the “IR Act”). As part of the IR Act, the blender tax credits were extended as is until December 31, 2024. After 2024, the Clean Fuels Production Credit (the “CFPC”) becomes effective from 2025 through 2027. Under the CFPC, on-road transportation fuel receives a base credit of up to $1.00 per gallon of renewable diesel multiplied by the fuel's emission reduction percentage as long as it is produced at a qualifying facility and it meets prevailing wage requirements and apprenticeship requirements. In contrast to the blenders tax credit, the CFPC requires that production must take place in the United States. For the three months ended June 29, 2024 and July 1, 2023, the DGD Joint Venture recorded approximately $308.2 million and $387.5 million of blenders tax credits, respectively. For the six months ended June 29, 2024 and July 1, 2023, the DGD Joint Venture recorded approximately $639.2 million and $633.5 million of blenders tax credits, respectively. The blenders tax credits are recorded as a reduction of cost of sales by the DGD Joint Venture. In the six months ended June 29, 2024 and July 1, 2023, respectively, the Company made $90.0 million and $75.0 million capital contributions to the DGD Joint Venture. In the six months ended June 29, 2024 and July 1, 2023, the Company received zero and $101.4 million in dividend distributions from the DGD Joint Venture, respectively. In July 2024, the Company received approximately $77.1 million as a dividend distribution from the DGD Joint Venture. As of June 29, 2024, the DGD Joint Venture had no borrowings outstanding under their unsecured revolving credit facility. In addition to the DGD Joint Venture, the Company has investments in other unconsolidated subsidiaries that are insignificant to the Company.

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration