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Investment in Unconsolidated Subsidiary | 9 Months Ended
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Sep. 27, 2025
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) |  | September 30, 2025 | December 31, 2024
Assets: |  |  |
Cash |  | $ | 136,225 |  | $ | 353,446 |
Total other current assets |  | 1,119,640 |  | 1,137,821 |
Property, plant and equipment, net |  | 3,750,079 |  | 3,868,943 |
Other assets |  | 538,591 |  | 100,307 |
Total assets |  | $ | 5,544,535 |  | $ | 5,460,517 |
Liabilities and members' equity: |  |  |
Revolver |  | $ | 100,000 |  | $ | — |
Total other current portion of long-term debt |  | 30,012 |  | 29,809 |
Total other current liabilities |  | 213,749 |  | 319,688 |
Total long-term debt |  | 684,726 |  | 707,158 |
Total other long-term liabilities |  | 18,174 |  | 17,195 |
Total members' equity |  | 4,497,874 |  | 4,386,667 |
Total liabilities and members' equity |  | $ | 5,544,535 |  | $ | 5,460,517 |
|  | Three Months Ended |  | Nine Months Ended
(in thousands) |  | September 30, 2025 | September 30, 2024 |  | September 30, 2025 | September 30, 2024
Revenues: |  |  |  |  |  |
Operating revenues |  | $ | 1,203,732 |  | $ | 1,224,679 |  |  | $ | 3,201,472 |  | $ | 3,819,870 |
Expenses: |  |  |  |  |  |
Total costs and expenses less lower of cost or market inventory valuation adjustment and depreciation, amortization and accretion expense |  | 1,160,562 |  | 1,126,200 |  |  | 3,257,113 |  | 3,300,483 |
Lower of cost or market (LCM) inventory valuation adjustment |  | 37,811 |  | 20,310 |  |  | (164,438) |  | 57,814 |
Depreciation, amortization and accretion expense |  | 75,398 |  | 68,303 |  |  | 204,399 |  | 195,503 |
Total costs and expenses |  | 1,273,771 |  | 1,214,813 |  |  | 3,297,074 |  | 3,553,800 |
Operating income/(loss) |  | (70,039) |  | 9,866 |  |  | (95,602) |  | 266,070 |
Other income |  | 1,621 |  | 5,058 |  |  | 7,504 |  | 14,336 |
Interest and debt expense, net |  | (11,922) |  | (10,093) |  |  | (34,072) |  | (30,372) |
Income/(loss) before income tax expense |  | (80,340) |  | 4,831 |  |  | $ | (122,170) |  | $ | 250,034 |
Income tax expense/(benefit) |  | 221 |  | (29) |  |  | 1,365 |  | (58) |
Net income/(loss) |  | $ | (80,561) |  | $ | 4,860 |  |  | $ | (123,535) |  | $ | 250,092 |
As of September 27, 2025, under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $2,241.5 million on the consolidated balance sheet. The Company has recorded equity in net income/(loss) from the DGD Joint Venture of approximately $(45.8) million and $2.4 million for the three months ended September 27, 2025 and September 28, 2024, respectively. The Company has recorded equity in net income/(loss) from the DGD Joint Venture of approximately $(70.4) million and $125.0 million for the nine months ended September 27, 2025 and September 28, 2024, respectively. On August 16, 2022, the U.S. government enacted the Inflation Reduction Act ( the “IR Act”). As part of the IR Act, the blenders tax credits of $1.00 per gallon were extended as is until December 31, 2024, a new Sustainable Aviation Fuel (“SAF”) blenders tax credit was introduced effective for 2023 and 2024, and a new Clean Fuels Production Credit (the “CFPC”) was created effective from 2025 through 2027. Under the IR Act, Section 40B, SAF, blended with Jet A and sold on or before December 31, 2024, receives a base credit of $1.25 per gallon plus $0.01 for each percentage point by which the lifecycle greenhouse gas (“GHG”) emissions reduction percentage exceeds 50% up to a maximum supplementary amount of $0.50. Under the CFPC, on-road transportation fuel receives a base credit of up to $1.00 per gallon of renewable diesel (adjusted for inflation each calendar year) 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. Similarly, SAF produced during calendar year 2025 at a qualified facility that meets the apprenticeship and prevailing wage requirements receives a base credit of $1.75 (adjusted for inflation each calendar year) multiplied by the GHG emissions factor for SAF. In contrast to the blenders tax credit, the CFPC requires that production must take place in the United States. On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted in the U.S. The OBBBA includes significant tax related provisions. With respect to the CFPC, the OBBBA extends the credit for two years through December 31, 2029, reduces the maximum credit rate for SAF to $1.00 per gallon for gallons produced after December 31, 2025, and, beginning in 2026 all eligible transportation fuel must be derived exclusively from feedstocks produced or grown in the U.S., Mexico or Canada. Furthermore, on July 21, 2025, the Internal Revenue Service released Notice 2025-37, announcing the 2025 calendar year inflation adjustment factor for several green energy credits added to the Internal Revenue Code by the IR Act, including the CFPC. Specifically, the base credit for on-road transportation fuel is increased to $1.06 per gallon (from $1.00 per gallon) and SAF is increased to $1.86 per gallon (from $1.75 per gallon) provided the fuel is produced at a qualified facility meeting the prevailing wage and apprenticeship requirements. These revised base credits, subject to the aforementioned emission reduction percentages, are applicable for on-road transportation fuel and SAF produced and sold in calendar year 2025 (i.e., there is a retroactive effective date of January 1, 2025). For the three months ended September 27, 2025 and September 28, 2024, the DGD Joint Venture recorded approximately $201.0 million and $313.0 million of production tax credits and blenders tax credits, net of discount and broker fees related to Darling's portion, respectively. For the nine months ended September 27, 2025 and September 28, 2024, the DGD Joint Venture recorded approximately $392.1 million and $952.2 million of production tax credits and blenders tax credits, net of discount and broker fees related to Darling's portion, respectively. The production tax credit and blenders tax credits are recorded as a reduction of cost of sales by the DGD Joint Venture. During the third quarter ended September 27, 2025, Darling agreed on the sale of $125.0 million of its production tax credits to a corporate buyer. The proceeds of the sale are scheduled to be received in the fourth quarter of 2025 upon satisfaction of certain funding conditions. On November 4, 2025, the Company received approximately $88.1 million as a dividend distribution from the DGD Joint Venture representing a portion of the production tax credits agreed upon sale amount. In the nine months ended September 27, 2025 and September 28, 2024, the Company received approximately $129.5 million and $111.2 million in dividend distributions from the DGD Joint Venture, respectively. In the nine months ended September 27, 2025 and September 28, 2024, respectively, the Company made approximately $240.8 million and $90.0 million in capital contributions to the DGD Joint Venture. Subsequent to September 27, 2025, the Company made a capital contribution of approximately $4.6 million on September 29, 2025 to 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.

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- 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
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