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Investment in Unconsolidated Subsidiary
 9 Months Ended
Sep. 28, 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)September 30, 2024December 31, 2023
Assets:
Cash$195,666 $236,794 
Total other current assets1,472,709 1,640,636 
Property, plant and equipment, net3,886,783 3,838,800 
Other assets104,317 89,697 
Total assets$5,659,475 $5,805,927 
Liabilities and members' equity:
Revolver$— $250,000 
Total other current portion of long term debt29,496 28,639 
Total other current liabilities384,496 417,918 
Total long term debt714,783 737,097 
Total other long term liabilities17,043 16,996 
Total members' equity4,513,657 4,355,277 
Total liabilities and members' equity$5,659,475 $5,805,927 

Three Months EndedNine Months Ended
(in thousands)September 30, 2024September 30, 2023September 30, 2024September 30, 2023
Revenues:
Operating revenues$1,224,679 $1,430,666 $3,819,870 $5,356,827 
Expenses:
Total costs and expenses less lower of cost or market inventory valuation adjustment and depreciation, amortization and accretion expense1,126,200 1,257,766 3,300,483 4,430,485 
Lower of cost or market (LCM) inventory valuation adjustment20,310 — 57,814 — 
Depreciation, amortization and accretion expense
68,303 55,118 195,503 172,040 
Total costs and expenses1,214,813 1,312,884 3,553,800 4,602,525 
Operating income9,866 117,782 266,070 754,302 
Other income5,058 2,701 14,336 6,863 
Interest and debt expense, net(10,093)(11,705)(30,372)(37,785)
Income before income tax expense4,831 108,778 $250,034 $723,380 
Income tax benefit(29)— (58)— 
Net income$4,860 $108,778 $250,092 $723,380 

As of September 28, 2024, under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $2,260.2 million on the consolidated balance sheet. The Company has recorded equity in net income from the DGD Joint Venture of approximately $2.4 million and $54.4 million for the three months ended September 28, 2024 and September 30, 2023, respectively. The Company has recorded equity in net income from the DGD Joint Venture of approximately $125.0 million and $361.7 million for the nine months ended September 28, 2024 and September 30, 2023, respectively. In December 2019, the blenders tax credit of $1.00 per gallon 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 blenders tax credits 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 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. For the three months ended September 30, 2024 and September 30, 2023, the DGD Joint Venture recorded approximately $313.0 million and $266.4 million of blenders tax credits, respectively. For the nine months ended September 30, 2024 and September 30, 2023, the DGD Joint Venture recorded approximately $952.2 million and $900.0 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 nine months ended September 28, 2024 and September 30, 2023, respectively, the Company made $90.0 million and $75.0 million capital contributions to the DGD Joint Venture. In the nine months ended September 28, 2024 and September 30, 2023, the Company received approximately $111.2 million and $163.6 million in dividend distributions from the DGD Joint Venture, respectively.

In addition to the DGD Joint Venture, the Company has investments in other unconsolidated subsidiaries that are insignificant to the Company.