EQUITY AFFILIATES

12 Months Ended

Dec. 31, 2015

Equity Method Investments and Joint Ventures [Abstract]

We have investments in unconsolidated equity affiliates over which we have significant influence that we account for using the equity method with taxes provided on undistributed earnings. We record our share of net earnings within "Earnings (loss) from equity affiliates" in our Consolidated Statement of Operations in the period in which earnings are recorded by the affiliates.

Details About Our Equity Affiliates

As of December 31, 2015, we hold a 50 percent ownership interest in North Pacific Paper Corporation (NORPAC). NORPAC owns and operates a newsprint manufacturing facility in Longview, Washington. Our share of the net earnings of NORPAC is reported in our Cellulose Fibers segment.

In the fourth quarter of 2015, it was determined that the joint venture’s book value of certain long-lived assets was not recoverable and an impairment charge was recorded to measure these assets at fair value. The fair value of the asset group was estimated based on a combination of income and market approaches using significant unobservable inputs. Key assumptions include (a) the timing and amounts of future cash flows related to the asset group’s operations, (b) discount rates applicable to the future cash flows ranging from 10.5 percent to 14 percent and (c) earnings multiples of other entities’ asset groups deemed to be similar to the asset group. Weyerhaeuser’s earnings include an $84 million charge for our share of this asset impairment. Weyerhaeuser also recorded a related additional tax benefit of $28 million in its provision for income taxes as a result of the reduction of deferred tax liabilities associated with the reduction in the book basis of the investment in this equity affiliate. As such, the net charge to Weyerhaeuser related to this item was $56 million in the fourth quarter of 2015.

During 2014, Catchlight Energy was dissolved. We received no proceeds from the dissolution.

During 2013, we sold part of our investment in Liaison Technologies Inc. and recognized a $10 million pretax gain, which is recorded in "Interest income and other" on our Consolidated Statement of Operations and within Unallocated Items. Our remaining investment is accounted for under the cost method.

Unconsolidated Financial Information of Equity Affiliates

Aggregated assets, liabilities and operating results of the entities that we accounted for as equity affiliates are provided below.

Assets and Liabilities of Equity Affiliates



DOLLAR AMOUNTS IN MILLIONS
	DECEMBER 31, 2015		DECEMBER 31, 2014
Current assets	$	89	$	123
Noncurrent assets	$	101	$	413
Current liabilities	$	25	$	30
Noncurrent liabilities	$	6	$	109

Operating Results of Equity Affiliates



DOLLAR AMOUNTS IN MILLIONS
	2015			2014			2013
Net sales	$	462		$	501		$	534
Operating income (loss)	$	(311	)	$	(2	)	$	3
Net income (loss)	$	(197	)	$	—		$	3

Doing Business with Affiliates

We provide goods and services to NORPAC, including raw materials and support services. The amounts paid to Weyerhaeuser by NORPAC for goods and services were:


•	$197 million in 2015,


•	$195 million in 2014 and


•	$203 million in 2013.

In addition, we manage cash for NORPAC under a services agreement. Weyerhaeuser holds the cash and records a payable balance to NORPAC, which is included in accounts payable in the accompanying Consolidated Balance Sheet. We had the following payable balances to NORPAC:


•	$46 million at December 31, 2015; and


•	$75 million at December 31, 2014.