RELATED PARTY TRANSACTIONS

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

DowDuPont

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 2018, the Company declared and paid dividends to DowDuPont of $3,711 million ($1,056 million in 2017). At December 31, 2018, the Company's outstanding intercompany loan balance was insignificant (insignificant at December 31, 2017). In addition, at December 31, 2018, Dow had a receivable related to a tax sharing agreement with DowDuPont of $89 million ($354 million at December 31, 2017), included in "Accounts and notes receivable - Other" in the consolidated balance sheets.

DuPont and its Affiliates

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. In addition, Dow and DuPont have tolling arrangements and recognize product sales for agriculture products. The following table presents amounts due to or due from DuPont and its affiliates at December 31, 2018:



Balances Due To or Due From DuPont and its Affiliates	Dec 31, 2018		Dec 31, 2017
In millions	Dec 31, 2018		Dec 31, 2017
Accounts and notes receivable - Other	$	288	$	26
Accounts payable - Other	$	201	$	12

The following table presents revenue earned and expenses incurred related to transactions with DuPont and its affiliates:



Sales to DuPont and its Affiliates	2018
In millions	2018
Net sales	$	320
Cost of sales	$	219

The Company also transferred certain feedstocks and energy to DuPont at cost which totaled $343 million in 2018 and was reflected in "Cost of sales" in the consolidated statements of income.

Purchases from DuPont and its affiliates were $261 million in 2018 (insignificant for the period September 1, 2017 through December 31, 2017).