17 – Related-party transactions

The BASF Group maintains relationships with several related parties that can exert influence on the BASF Group or over which the BASF Group exercises control or joint control, or a significant influence. The following tables show the scope of the Group’s transactions with related parties.

Sales and trade accounts receivable from and trade accounts payable to related parties mainly included business with own products, merchandise, agency and licensing businesses, and other operating businesses.

Other receivables and liabilities primarily arose from financing activities, from accounts used for cash pooling, outstanding dividend payments, profit and loss transfer agreements, and other finance-related and operating activities and transactions.

In the first half of 2018, there were no significant valuation allowances recognized as an expense for trade accounts receivable from related parties. In the prior-year period, valuation allowances were recognized as an expense for trade accounts receivable from nonconsolidated subsidiaries in the amount of €1 million.

Valuation allowances for trade accounts receivable from related parties amounted to €13 million as of June 30, 2018, compared with €17 million as of December 31, 2017.

Valuation allowances for other receivables from related parties rose from €75 million as of December 31, 2017, to €77 million as of June 30, 2018.

Since the transfer of the leather chemicals business to the Stahl group as of September 29, 2017, BASF holds a minority interest in the parent company of the Stahl group, over which it can exercise significant influence. Sales, trade accounts receivable and other liabilities resulting from transactions with the Stahl group since then are included in the tables below in the values for associated companies.

There were no reportable related-party transactions with members of the Board of Executive Directors or the Supervisory Board and their related parties during the reporting period.