RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2021

RELATED PARTY TRANSACTIONS

A summary of the Corporation's related party transactions can be found in Note 19 to the Consolidated Financial Statements included in the 2020 10-K.

Product and Services Agreements

The following table summarizes UCC’s transactions with TDCC and a TDCC subsidiary related to product and services agreements for the three months ended March 31, 2021 and 2020:


Product and Services Agreements Transactions	Three Months Ended
	Mar 31, 2021		Mar 31, 2020		Income Statement Classification
In millions
TDCC Subsidiary:
Commodity and raw materials purchases 1	$	483	$	231	Cost of sales
Commission expense	$	6	$	5	Sundry income (expense) - net
TDCC:
General administrative and overhead type services and service fee 2	$	17	$	8	Sundry income (expense) - net
Activity-based costs	$	19	$	23	Cost of sales

1.Period-end balances on hand are included in inventory. The increase in purchase costs was primarily due to higher feedstock and energy costs, which reflect the impacts of Winter Storm Uri.

2.The increase in services and fees resulted from TDCC's periodic review of the actual cost of services provided to UCC in accordance with related agreements.

Dividends

The following table summarizes cash dividends declared and paid to TDCC for the three months ended March 31, 2021 and 2020:


Cash Dividends Declared and Paid	Three Months Ended
	Mar 31, 2021		Mar 31, 2020
In millions

Cash dividends declared and paid	$	40	$	81