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. Effective May 1, 2019, the limited liability company agreement was amended and restated for the purpose of updating the agreement in certain respects, including to remove certain provisions that were no longer relevant and to add new provisions relating to the DGD Joint Venture’s recently approved expansion project to construct a new, parallel facility located next to the existing facility.

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



(in thousands)	March 31, 2019		December 31, 2018
Assets:
Total current assets	$	225,948	$	186,258
Property, plant and equipment, net	591,927		576,384
Other assets	26,427		24,601
Total assets	$	844,302	$	787,243
Liabilities and members' equity:
Total current portion of long term debt	$	276	$	189
Total other current liabilities	44,440		40,619
Total long term debt	9,010		8,485
Total other long term liabilities	4,612		539
Total members' equity	785,964		737,411
Total liabilities and members' equity	$	844,302	$	787,243



	Three Months Ended
(in thousands)	March 31, 2019			March 31, 2018
Revenues:
Operating revenues	$	302,718		$	150,321
Expenses:
Total costs and expenses less depreciation, amortization and accretion expense	243,063			(49,821		)
Depreciation, amortization and accretion expense	11,418			6,120
Total costs and expenses	254,481			(43,701		)
Operating income	48,237			194,022
Other income	641			377
Interest and debt expense, net	(324		)	—
Net income	$	48,554		$	194,399

As of March 30, 2019 under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $393.0 million on the consolidated balance sheet. The Company has recorded an equity net gain of approximately $24.3 million and $97.2 million for the three months ended March 30, 2019 and March 31, 2018. In February 2018, the blender tax credits for calendar year 2017 were retroactively reinstated by the U.S. Congress. Fiscal 2019 results do not include any blenders tax credits, while in the first three 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 or fiscal 2019. In addition, in April 2019, the Company received a dividend distribution of approximately $17.7 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.