EQUITY AFFILIATES
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 earnings and accrue taxes in the period that the earnings are recorded by the affiliates.
Following is a list of our equity affiliates as of December 31, 2013:
Details About Our Equity Affiliates
|
| | |
AFFILIATE | WHAT IT DOES | OUR OWNERSHIP |
North Pacific Paper Corporation (NORPAC) | Owns and operates a newsprint manufacturing facility in Longview, Washington | 50 percent |
Catchlight Energy | Researching and developing technology for converting cellulose-based biomass into economical, low-carbon biofuels | 50 percent |
As of December 31, 2013, our Real Estate segment held equity investments in five real estate partnerships and limited liability companies. Our participation in these entities may be as a developer, a builder or an investment partner. Our ownership percentage varies from 7 percent to 50 percent depending on the investment.
During 2013, we sold part of our investment in Liaison Technologies Inc. and recognized an $10 million pretax gain, which is recorded in "Interest income and other" in our Consolidated Statement of Operations. 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,
2013 |
| DECEMBER 31,
2012 |
|
Current assets | $ | 141 |
| $ | 201 |
|
Noncurrent assets | $ | 723 |
| $ | 817 |
|
Current liabilities | $ | 125 |
| $ | 175 |
|
Noncurrent liabilities | $ | 141 |
| $ | 176 |
|
Operating Results of Equity Affiliates
|
| | | | | | | | | |
DOLLAR AMOUNTS IN MILLIONS |
| 2013 |
| 2012 |
| 2011 |
|
Net sales | $ | 540 |
| $ | 644 |
| $ | 615 |
|
Operating income (loss) | $ | (1 | ) | $ | 10 |
| $ | (2 | ) |
Net loss | $ | (1 | ) | $ | (3 | ) | $ | (1 | ) |
Doing Business with Affiliates
Doing business with our affiliates varies by the individual affiliate. We:
| |
• | provide a varying mix of goods and services to some of our affiliates and |
| |
• | buy finished products from some of our affiliates. |
The goods and services we provide include:
| |
• | management and marketing services, |
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: | |
• | $93 million at December 31, 2013; and |
| |
• | $102 million at December 31, 2012. |
