Equity Method Investments

Equity method investments as of March 31, 2018 and December 31, 2017, were as follows:



	March 31, 2018			December 31, 2017
(dollars in millions)	Carrying Value		Ownership Percentage	Carrying Value		Ownership Percentage
USG Boral Building Products	$	692	50%	$	679	50%
Other equity method investments	7		33% - 50%	7		33% - 50%
Total equity method investments	$	699		$	686

Investment in USG Boral Building Products

UBBP is our 50/50 joint ventures with Boral Limited, or Boral. We account for our investment in UBBP using the equity method of accounting. As of March 31, 2018, the amount of our consolidated retained earnings which represents undistributed earnings from UBBP is $70 million.

In the event certain U.S. Dollar denominated performance targets are satisfied by UBBP, we will be obligated to pay Boral an earnout payment of up to $50 million based on performance through 2019. We have not recorded a liability for this earnout payment as we have concluded that it is currently not probable that the five-year performance target will be achieved. If our conclusion on the probability of achievement changes, we will record a liability representing the present value of the earnout payment with a corresponding increase to our investment.

Our underlying net assets in our investments are denominated in a foreign currency, and translation gains or losses will impact the recorded value of our investments. Translation gains or losses recorded in other comprehensive income were as follows:



	Three months ended March 31,
(millions)	2018		2017
Translation gain	$	3	$	24

Summarized financial information for UBBP is as follows:



	Three months ended March 31,
(millions)	2018		2017
USG Boral Building Products
Net sales	$	287	$	276
Gross profit	79		86
Operating profit	28		35
Income from continuing operations before income taxes	32		38
Net income	20		26
Net income attributable to USG Boral Building Products	19		25
USG share of income from investment accounted for using the equity method	9		13

TRANSACTIONS WITH UBBP

Our U.S. Wallboard and Surfaces and U.S. Performance Materials segments sell products to UBBP. Total sales to UBBP for the three months ended March 31, 2018 and 2017 were immaterial.

In 2014, in connection with the formation of UBBP, we contributed our ownership interest in a joint venture in China to UBBP, but retained our loan receivable from this joint venture. As of March 31, 2018 and December 31, 2017, the loan receivable, including interest, totaled $13 million and is included in "Other assets" on our accompanying condensed consolidated balance sheets.