Investments in and Advances to Affiliates

12 Months Ended

Dec. 31, 2015

Related Party Transactions [Abstract]

Transactions with Affiliates

INVESTMENTS IN AND ADVANCES TO AFFILIATES

At December 31, 2015, LP has an investment in a joint venture with Resolute Forest Products to operate jointly owned I-Joist facilities in Quebec (Abitibi-LP). Each partner owns 50% of the venture. In 2013, LP acquired full ownership of the Peace Valley OSB joint venture (formerly referred to as Canfor-LP) in which LP previously maintained a 50% interest (see Note 24 for further information). Additionally, during 2013, LP sold its equity investment in U.S. GreenFiber, which resulted in a gain of $1.2 million.

LP sells products and raw materials and purchases products for resale from Abitibi-LP and previously purchased OSB from Canfor-LP prior to the acquisition on May 31, 2013. LP eliminates profits on these sales and purchases, to the extent the inventory has not been sold through to third parties, on the basis of its 50% interests. For the years ended December 31, 2015, 2014 and 2013, LP sold $9.3 million, $9.8 million and $13.7 million of products to Abitibi-LP and purchased $54.1 million, $55.4 million and $52.0 million of I-joists from Abitibi-LP. LP purchased $98.2 million from Canfor-LP during the year ended December 31, 2013.

Included in LP’s Consolidated Balance Sheets at December 31, 2015 and 2014 are $0.4 million and $0.7 million in accounts receivable and $0.1 million and $0.4 million in accounts payable associated with Abitibi-LP. For the year ended December 31, 2015, LP received $3.0 million in dividends from Abitibi-LP. LP classified the receipt of these cash dividends as cash flows from operations. LP's cumulative equity in earnings from Abitibi-LP exceeds the cumulative distributions received; therefore, the dividends were deemed to be a return on LP's investment and not a return of LP's investment.