Investment in Unconsolidated Subsidiary

12 Months Ended

Dec. 28, 2024

INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES

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)	December 31, 2024		December 31, 2023
Assets:
Cash	$	353,446	$	236,794
Total current assets	1,137,821		1,640,636
Property, plant and equipment, net	3,868,943		3,838,800
Other assets	100,307		89,697
Total assets	$	5,460,517	$	5,805,927
Liabilities and members' equity:
Revolver	$	—	$	250,000
Total current portion of long term debt	29,809		28,639
Total other current liabilities	319,688		417,918
Total long term debt	707,158		737,097
Total other long term liabilities	17,195		16,996
Total members' equity	4,386,667		4,355,277
Total liabilities and member's equity	$	5,460,517	$	5,805,927


	Year Ended December 31,
(in thousands)	2024		2023		2022
Revenues:
Operating revenues	$	5,065,592	$	6,990,622	$	5,501,166
Expenses:
Total costs and expenses less lower of cost or market inventory valuation adjustment and depreciation, amortization and accretion expense	4,309,768		5,925,778		4,614,192
Lower of cost or market (LCM) inventory valuation adjustment	175,934		60,871		—
Depreciation, amortization and accretion expense	264,992		230,921		125,656
Operating income	314,898		773,052		761,318
Other income	22,114		10,317		3,170
Interest and debt expense, net	(38,673)		(49,857)		(19,796)
Income before income tax expense	$	298,339	$	733,512	$	744,692
Income tax expense	175		752		—
Net income	$	298,164	$	732,760	$	744,692

As of December 28, 2024, under the equity method of accounting, the Company has an investment in the DGD Joint Venture of approximately $2.2 billion on the Consolidated Balance Sheet. The Company has recorded approximately $149.1 million, $366.4 million and $372.3 million in equity in net income of Diamond Green Diesel for the years ended December 28, 2024, December 30, 2023 and December 31, 2022, 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 that meets the prevailing wage requirements and apprenticeship requirements before being sold in a ceratin manner. Similarly, neat SAF produced at a qualified facility that meets the apprenticeship and prevailing wage requirements, which is then sold for use in an aircraft, 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. In fiscal 2024, fiscal 2023 and fiscal 2022, the DGD Joint Venture recorded approximately $1.3 billion, $1.2 billion and $761.1 million, respectively, in blenders tax credits. The Company received approximately $179.8 million, $163.6 million and $90.5 million for each of the years ended December 28, 2024, December 30, 2023 and December 31, 2022, in dividend distributions from the DGD Joint Venture. In addition, during fiscal year 2024, 2023 and 2022, the Company made capital contributions to the DGD Joint Venture of approximately $90.0 million, $75.0 million and $264.8 million, respectively. In January 2025, the Company received approximately $87.4 million as a dividend distribution 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.