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Investments | 12 Months Ended
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Dec. 31, 2016
Investments [Abstract] |
Investments | Investments: Investments include our share of unconsolidated joint ventures, nonmarketable securities and marketable equity securities. The following table details our investment balances at December 31, 2016 and 2015 (in thousands):
|  | December 31,
|  | 2016 |  | 2015
Joint ventures(a) |  | $ | 429,794 |  |  | $ | 411,119 |
Nonmarketable securities |  | 169 |  |  | 208 |
Marketable equity securities |  | 27,570 |  |  | 24,257 |
Total |  | $ | 457,533 |  |  | $ | 435,584 |
(a) | Balance at December 31, 2015 excludes our investment in Magnifin Magnesiaprodukte GmbH & Co. KG (“Magnifin”) and two investments included in the sale of the Chemetall Surface Treatment business, which are included in Assets held for sale. Refer to Note 3, “Divestitures,” for additional information.
Our ownership positions in significant unconsolidated investments are shown below:
|  |  | December 31,
|  |  | 2016 |  | 2015 |  | 2014
* |  | Windfield Holdings Pty. Ltd. - a joint venture with Sichuan Tianqi Lithium Industries, Inc., that mines lithium ore and produces lithium concentrate | 49 | % |  | 49 | % |  | — | %
* |  | Nippon Aluminum Alkyls - a joint venture with Mitsui Chemicals, Inc. that produces aluminum alkyls | 50 | % |  | 50 | % |  | 50 | %
* |  | Magnifin Magnesiaprodukte GmbH & Co. KG - a joint venture with Radex Heraklith Industriebeteiligung AG that produces specialty magnesium hydroxide products(a) | — | % |  | 50 | % |  | 50 | %
* |  | Nippon Ketjen Company Limited - a joint venture with Sumitomo Metal Mining Company Limited that produces refinery catalysts | 50 | % |  | 50 | % |  | 50 | %
* |  | Eurecat S.A. - a joint venture with IFP Investissements for refinery catalysts regeneration services | 50 | % |  | 50 | % |  | 50 | %
* |  | Fábrica Carioca de Catalisadores S.A. - a joint venture with Petrobras Quimica S.A. - PETROQUISA that produces catalysts and includes catalysts research and product development activities | 50 | % |  | 50 | % |  | 50 | %
(a) | On February 1, 2016, we sold our investment in Magnifin as part of the sale of the minerals-based flame retardants and specialty chemicals business. Refer to Note 3, “Divestitures,” for additional information.
Our investment in the significant unconsolidated joint ventures above amounted to $404.6 million and $402.6 million as of December 31, 2016 and 2015, respectively, and the amount included in Equity in net income of unconsolidated investments (net of tax) in the consolidated statements of income totaled $56.8 million, $25.4 million and $34.7 million for the years ended December 31, 2016, 2015 and 2014, respectively. As further described in Note 25, “Segment and Geographic Area Information,” Equity in net income of unconsolidated investments (net of tax) for the year ended December 31, 2015 was reduced by $27.1 million related to the utilization of the inventory markup to fair value in connection with the acquisition of Rockwood. Undistributed earnings attributable to our significant unconsolidated investments represented approximately $99.4 million and $105.9 million of our consolidated retained earnings at December 31, 2016 and 2015, respectively. All of the unconsolidated joint ventures in which we have investments are private companies and accordingly do not have a quoted market price available. The following summary lists our assets, liabilities and results of operations for our significant unconsolidated joint ventures presented herein (in thousands):
|  | December 31,
|  | 2016 |  | 2015
Summary of Balance Sheet Information: |  |  |  |
Current assets |  | $ | 383,203 |  |  | $ | 331,630 |
Noncurrent assets |  | 913,643 |  |  | 935,790 |
Total assets |  | $ | 1,296,846 |  |  | $ | 1,267,420 |
Current liabilities |  | $ | 138,474 |  |  | $ | 106,966 |
Noncurrent liabilities |  | 319,801 |  |  | 339,604 |
Total liabilities |  | $ | 458,275 |  |  | $ | 446,570 |
|  | Year Ended December 31,
|  | 2016 |  | 2015 |  | 2014
Summary of Statements of Income Information: |  |  |  |  |  |
Net sales |  | $ | 590,980 |  |  | $ | 560,376 |  |  | $ | 499,394 |
Gross profit |  | $ | 267,241 |  |  | $ | 253,569 |  |  | $ | 164,063 |
Income before income taxes |  | $ | 189,016 |  |  | $ | 157,501 |  |  | $ | 101,983 |
Net income |  | $ | 126,872 |  |  | $ | 111,491 |  |  | $ | 71,466 |
We have evaluated each of the unconsolidated investments pursuant to current accounting guidance and none qualify for consolidation. Dividends received from our significant unconsolidated investments were $42.1 million, $58.1 million and $39.6 million in 2016, 2015 and 2014, respectively. At December 31, 2016 and 2015, the carrying amount of our investments in unconsolidated joint ventures differed from the amount of underlying equity in net assets by approximately ($6.8) million and $11.5 million, respectively. These amounts represent the differences between the value of certain assets of the joint ventures and our related valuation on a U.S. GAAP basis. As of December 31, 2016 and 2015, $0.6 million and $0.8 million, respectively, remained to be amortized over the remaining useful lives of the assets with the balance of the difference representing primarily our share of the joint ventures’ goodwill. The Company holds a 49% equity interest in Windfield Holdings Pty. Ltd. (“Windfield”), which we acquired in the Rockwood acquisition. With regards to the Company’s ownership in Windfield, the parties share risks and benefits disproportionate to their voting interests. As a result, the Company considers Windfield to be a variable interest entity (“VIE”). However, the Company does not consolidate Windfield as it is not the primary beneficiary. The carrying amount of our 49% equity interest in Windfield, which is our most significant VIE, was $288.6 million at December 31, 2016. The Company’s aggregate net investment in all other entities which it considers to be VIE’s for which the Company is not the primary beneficiary was $8.8 million and $7.8 million at December 31, 2016 and December 31, 2015, respectively. Our unconsolidated VIE’s are reported in Investments in the consolidated balance sheets. The Company does not guarantee debt for, or have other financial support obligations to, these entities, and its maximum exposure to loss in connection with its continuing involvement with these entities is limited to the carrying value of the investments. Included in the consolidated statement of cash flows for the year ended December 31, 2015, is a return of capital from Windfield of $98.0 million. The Company holds a 50% equity interest in Jordan Bromine Company Limited (“JBC”), reported in the Bromine Specialties segment. The Company consolidates this venture as it is considered the primary beneficiary due to its operational and financial control. Assets of the Trust, in conjunction with our EDCP, are accounted for as trading securities in accordance with authoritative accounting guidance. The assets of the Trust consist primarily of mutual fund investments and are marked-to-market on a monthly basis through the consolidated statements of income. As of December 31, 2016 and 2015, these marketable securities amounted to $22.0 million and $21.6 million, respectively. At December 31, 2016 and 2015, loans receivable from our 50%-owned joint venture, SOCC, totaled approximately $30.0 million and are included in Other assets in the consolidated balance sheets. Interest on these loans is based on either the London Inter-Bank Offered Rate (“LIBOR”) or Saudi Arabia Inter-Bank Offered Rate (“SAIBOR”), plus a margin of 1.275%, per annum. Principal repayments on amounts outstanding under this arrangement are required as mutually agreed upon by the joint venture partners, but with any outstanding balances due in full no later than December 31, 2021. Our SOCC joint venture in Saudi Arabia, included in our Lithium and Advanced Materials segment, is emerging from the start-up phase and experienced a small net loss as of December 31, 2016, indicating the carrying value potentially may be impaired. As a result, we assessed the recoverability of the investment and related balances in this venture as of December 31, 2016. As of December 31, 2016, the carrying amount of our equity interest in SOCC was $7.5 million and we had loans receivable from this venture that totaled $30.0 million. Based on our assessment, we expect to recover the carrying amount of our equity investment and related balances, and concluded that no other-than-temporary impairment exists as of December 31, 2016. In order to fully recover our investment and related balances, we and our venture partner are actively developing strategies to reduce costs and increase volumes at the venture, which would improve the financial performance of the investment.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66011266&loc=d3e33918-111571 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=64825282&loc=d3e32847-111569 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=64825282&loc=d3e32787-111569 + Details
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