Investment in Unconsolidated Subsidiary

12 Months Ended

Dec. 28, 2013

Investment in Affiliate [Abstract]

INVESTMENT IN UNCONSOLIDATED SUBSIDIARY

INVESTMENT IN UNCONSOLIDATED SUBSIDIARY

The Company announced on January 21, 2011 that a wholly-owned subsidiary of Darling entered into a limited liability company agreement with Valero to form 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 producing approximately 9,300 barrels per day of 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 will provide the DGD Joint Venture with a 14 year multiple advance term loan facility of approximately $221,300,000 (the “JV Loan”) to support the design, engineering and construction of the DGD Facility, which is now in production. The Facility Agreement and the Loan Agreement prohibit the Lender from assigning all or any portion of the Facility Agreement or the Loan Agreement to unaffiliated third parties. Opco has also pledged substantially all of its assets to the Lender, and the DGD Joint Venture has pledged all of Opco's equity interests to the Lender, until the JV Loan has been paid in full and the JV Loan has terminated in accordance with its terms.

Based on the sponsor support agreements executed in connection with the Facility Agreement and the Loan Agreement relating to the DGD Joint Venture with Valero, the Company has contributed a total of approximately $111.7 million for the construction of the DGD Facility including the Company's portion of cost overruns and working capital funding.

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

				Year Ended				Year Ended
As of December 31, 2013				December 31, 2013				December 31, 2012
Total Assets		Members' Equity		Revenues		Net Income		Revenues		Net Loss
$	488,435	$	230,228	$	213,552	$	15,320	$	—	$	(5,324	)

As of December 28, 2013, under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $115.1 million on the consolidated balance sheet and has recorded approximately $7.7 million in equity net income and $2.7 million in equity net losses in the unconsolidated subsidiary for the years ended December 28, 2013 and December 29, 2012, respectively.