Equity Method Investments

Equity method investments as of June 30, 2017 and December 31, 2016, were as follows:



	June 30, 2017			December 31, 2016
(dollars in millions)	Carrying Value		Ownership Percentage	Carrying Value		Ownership Percentage
USG Boral Building Products	$	649	50%	$	621	50%
Other equity method investments	7		33% - 50%	7		33% - 50%
Total equity method investments	$	656		$	628

Investment in USG Boral Building Products

During the second quarter of 2017, UBBP paid cash dividends on its earnings through March 2017 of which our 50% share totaled $23 million. We recorded the cash dividend in operating activities on our statements of cash flows. As of June 30, 2017, the amount of our condensed consolidated retained earnings which represents undistributed earnings from UBBP is $47 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 during the first five years after the closing on February 27, 2014. 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. In the second quarter of 2016, we reversed a liability with a corresponding reduction to our investment for an earn-out payment that was based on a three-year performance target.

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 June 30,						Six months ended June 30,
(millions)	2017			2016			2017		2016
Translation (loss) gain	$	(1	)	$	(30	)	$	23	$	(13	)

Summarized financial information is as follows:



	Three months ended June 30,				Six months ended June 30,
(millions)	2017		2016		2017		2016
USG Boral Building Products
Net sales	$	287	$	273	$	563	$	502
Gross profit	91		86		177		151
Operating profit	40		41		75		64
Income from continuing operations before income taxes	44		46		82		70
Net income	28		34		54		49
Net income attributable to USG Boral Building Products	28		32		53		46
USG share of income from investment accounted for using the equity method	14		16		27		23

TRANSACTIONS WITH UBBP

Our Gypsum segment sells products to UBBP. Total sales to UBBP for the three and six months ended June 30, 2017 and 2016 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 June 30, 2017 and December 31, 2016, the loan receivable, including interest, totaled $14 million and $15 million, respectively, and is included in "Other assets" on our accompanying condensed consolidated balance sheets.