Dow Inc. and Subsidiaries The Dow Chemical Company and Subsidiaries Valuation and Qualifying Accounts Schedule II (In millions) For the years ended Dec 31, 2021 2020 2019 Accounts Receivable - Allowance for Doubtful Receivables Balance at beginning of year $ 51 $ 45 $ 42 Additions charged to expenses 1 16 22 24 Deductions from reserves 2 (13) (16) (21) Balance at end of year $ 54 $ 51 $ 45 Inventory - Obsolescence Reserve Balance at beginning of year $ 23 $ 35 $ 23 Additions charged to expenses 3 2 19 Deductions from reserves 3 (12) (14) (7) Balance at end of year $ 14 $ 23 $ 35 Reserves for Other Investments and Noncurrent Receivables Balance at beginning of year $ 2,093 $ 2,215 $ 460 Additions charged to expenses 1 19 7 1,758 Deductions from reserves 4 (79) (129) (3) Balance at end of year $ 2,033 $ 2,093 $ 2,215 Deferred Tax Assets - Valuation Allowance Balance at beginning of year $ 1,302 $ 1,262 $ 1,225 Additions charged to expenses 201 313 140 Deductions from reserves (112) (273) (103) Balance at end of year $ 1,391 $ 1,302 $ 1,262 1. In 2019, additions charged to expenses for "Accounts Receivable - Allowance for Doubtful Receivables" included $2 million and additions charged to expenses for "Reserves for Other Investments and Noncurrent Receivables" included $1,753 million related to the Company's investment in Sadara Chemical Company ("Sadara"). See Note 12 to the Consolidated Financial Statements for additional information. 2. Deductions included write-offs, recoveries, currency translation adjustments and other miscellaneous items. 3. Deductions included disposals and currency translation adjustments. 4. Deductions from reserves for "Reserves for Other Investments and Noncurrent Receivables" included $77 million in 2021 and 2020 related to the Company's investment in Sadara. See Note 12 to the Consolidated Financial Statements for additional information. 167