INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES

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 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.

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 $221.3 million (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.

In addition to the DGD Joint Venture, the Company has investments in other unconsolidated subsidiaries that were acquired in the VION Acquisition that are insignificant to the Company. Selected financial information for the Company's DGD Joint Venture is as follows:



(in thousands)	December 31, 2015		December 31, 2014
Assets:
Total current assets	$	261,444	$	216,991
Property, plant and equipment, net	356,230		373,117
Other assets	3,034		2,092
Total assets	$	620,708	$	592,200
Liabilities and members' equity:
Total current portion of long term debt	$	62,023	$	57,514
Total other current liabilities	19,935		21,313
Total long term debt	86,819		155,273
Total other long term liabilities	380		339
Total members' equity	451,551		357,761
Total liabilities and member's equity	$	620,708	$	592,200



	Year Ended December 31,
(in thousands)	2015			2014			2013
Revenues:
Operating revenues	$	475,934		$	487,834		$	213,552
Expenses:
Total costs and expenses	318,660			342,743			189,216
Operating income	157,274			145,091			24,336
Other income	120			82			33
Interest and debt expense, net	(13,604		)	(17,640		)	(9,049		)
Net income	$	143,790		$	127,533		$	15,320

As of January 2, 2016, under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $225.8 million on the consolidated balance sheet and has recorded approximately $71.9 million, $63.8 million and $7.7 million in equity net income in the unconsolidated subsidiary for the years ended January 2, 2016, January 3, 2015 and December 28, 2013, respectively. Biodiesel blenders registered with the Internal Revenue Service were eligible for a tax incentive in the amount of $1.00 per gallon of renewable diesel blended with petroleum diesel to produce a mixture containing 0.1% diesel fuel. As a blender, the DGD Joint Venture has recorded approximately, $156.6 million, $126.0 million and $50.4 million in blender credits, for its fiscal years ended December 31, 2015, December 31, 2014 and December 31, 2013, respectively. These blenders credits were recorded by the DGD Joint Venture as a reduction of total costs and expenses in the above table. In fiscal 2015 and fiscal 2014, the DGD Joint Venture booked all blenders tax credits in the fourth quarter.