Related Party Transactions

12 Months Ended

Dec. 31, 2019

Related Party Transactions [Abstract]

Related Party Transactions

Note 22. Related Party Transactions

Transactions with Huntsman

We are party to a variety of transactions and agreements with Huntsman, our former parent and largest shareholder.

Prior to the separation, Huntsman’s executive, information technology, EHS and certain other corporate departments performed certain administrative and other services for Venator. Additionally, Huntsman performed certain site services for Venator. Expenses incurred by Huntsman and allocated to Venator were determined based on specific services provided or were allocated based on our total revenues, total assets, and total employees in proportion to those of Huntsman. Management believes that such expense allocations are reasonable. Corporate allocations include allocated selling, general, and administrative expenses of nil, nil and $62 million for the years ended December 31, 2019, December 31, 2018 and December 31, 2017, respectively.

On August 11, 2017, we entered into a separation agreement with Huntsman to effect the separation and to provide a framework for the relationship with Huntsman. This agreement governs the relationship between Venator and Huntsman subsequent to the completion of the separation and provides for the allocation between Venator and Huntsman of assets, liabilities and obligations attributable to periods prior to the separation. Because these agreements were entered into in the

context of a related party transaction, the terms may not be comparable to terms that would be obtained in a transaction between unaffiliated parties.

See description of our financing arrangements with Huntsman before and after the separation in "Note 16. Debt" and "Note 18. Derivative Instruments and Hedging Activities." See description of our arrangement with Huntsman as part of the separation in "Note 20. Income Taxes."

Other Related Party Transactions

We also conduct transactions in the normal course of business with parties under common ownership. Sales of raw materials to LPC as part of a sourcing arrangement were $87 million, $65 million and $64 million for the years ended December 31, 2019, December 31, 2018 and December 31, 2017, respectively. Proceeds from this arrangement are recorded as a reduction of cost of goods sold in Venator’s consolidated and combined statements of operations. Related to this same arrangement, purchases of finished goods from LPC were $177 million, $167 million and $158 million for the years ended December 31, 2019, December 31, 2018 and December 31, 2017, respectively. The related accounts receivable from affiliates and accounts payable to affiliates as of December 31, 2019 and December 31, 2018 are recognized in the consolidated balance sheets.