RELATD PARTY TRANSACTIONS (Notes)

3 Months Ended

Mar. 31, 2018

RELATED PARTY TRANSACTIONS

Effective with the Merger, Dow reports transactions with DowDuPont and DuPont and its affiliates as related party transactions.

The Company has committed to fund a portion of DowDuPont's share repurchases, dividends paid to common stockholders and certain governance expenses. Funding is accomplished through intercompany loans. On a quarterly basis, the Company's Board reviews and determines a dividend distribution to DowDuPont to settle the intercompany loans. The dividend distribution considers the level of the Company’s earnings and cash flows and the outstanding intercompany loan balances. In the first quarter of 2018, the Company declared and paid dividends to DowDuPont of $1,057 million. At March 31, 2018, the Company's outstanding intercompany loan balance was insignificant (insignificant at December 31, 2017). In addition, at March 31, 2018, Dow had a receivable related to a tax sharing agreement with DowDuPont of $354 million ($354 million at December 31, 2017), included in "Accounts and notes receivable - Other" in the consolidated balance sheets.

Dow sells to and procures from DuPont and its affiliates certain feedstocks, energy and raw materials that are consumed in each company's manufacturing process. The following table presents revenue earned and expenses incurred related to transactions with DuPont and its affiliates:



Transactions with DuPont and its Affiliates	Three Months Ended Mar 31, 2018
In millions	Three Months Ended Mar 31, 2018
Net sales	$	43
Cost of sales	$	26

Purchases from DuPont and its affiliates were $44 million in the first quarter of 2018.