RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2020

Related Party Transactions [Abstract]

Related Party Transactions Disclosure

RELATED PARTY TRANSACTIONS

Intercompany Receivables and Payables

ITC Holdings may incur charges from Fortis and other subsidiaries of Fortis that are not subsidiaries of ITC Holdings for general corporate expenses incurred. In addition, ITC Holdings may perform additional services for, or receive additional services from, Fortis and such subsidiaries. These transactions are in the normal course of business and payments for these services are settled through accounts receivable and accounts payable, as necessary. We had intercompany receivables from Fortis and such subsidiaries of less than $1 million at June 30, 2020 and December 31, 2019, and intercompany payables to Fortis and such subsidiaries of less than $1 million at June 30, 2020 and December 31, 2019.

Related party charges for corporate expenses from Fortis and such subsidiaries are recorded in general and administrative expenses in the condensed consolidated statements of comprehensive income. Such expense for each of the three months ended June 30, 2020 and 2019 for ITC Holdings was $2 million and $3 million, respectively, and for each of the six months ended June 30, 2020 and 2019 were $5 million and $6 million, respectively. Related party billings for services to Fortis and other subsidiaries, recorded as an offset to general and administrative expenses for ITC Holdings, were less than $1 million for each of the three months ended June 30, 2020 and 2019 and $1 million and less than $1 million, respectively, for each of the six months ended June 30, 2020 and 2019.

Dividends

During the six months ended June 30, 2020 and 2019, we paid dividends of $165 million and $145 million, respectively, to ITC Investment Holdings. We also paid dividends of $83 million to ITC Investment Holdings in July 2020.

Intercompany Tax Sharing Agreement

We are organized as a corporation for tax purposes and subject to a tax sharing agreement as a wholly-owned subsidiary of ITC Investment Holdings. Additionally, we record income taxes based on our separate company tax position and make or receive tax-related payments with ITC Investment Holdings. In April 2020, ITC Holdings paid $2 million to ITC Investment Holdings for matters related to the State of Michigan income taxes.