

	The Dow Chemical Company and Subsidiaries	Schedule II
	Valuation and Qualifying Accounts



(In millions) For the years ended Dec 31,	2017			2016			2015
Accounts Receivable - Allowance for Doubtful Receivables
Balance at beginning of year	$	110		$	94		$	110
Additions charged to expenses	33			31			24
Additions charged to other accounts ¹	3			—			2
Deductions from reserves ²	(29		)	(15		)	(42		)
Balance at end of year	$	117		$	110		$	94
Inventory - Obsolescence Reserve
Balance at beginning of year	$	123		$	152		$	135
Additions charged to expenses	40			29			63
Deductions from reserves ³	(48		)	(58		)	(46		)
Balance at end of year	$	115		$	123		$	152
Reserves for Other Investments and Noncurrent Receivables
Balance at beginning of year	$	358		$	494		$	477
Additions charged to expenses ⁴	83			153			108
Deductions from reserves ⁵	(4		)	(289		)	(91		)
Balance at end of year	$	437		$	358		$	494
Deferred Tax Assets - Valuation Allowance
Balance at beginning of year	$	1,061		$	1,000		$	1,106
Additions charged to expenses	370			155			67
Deductions from reserves	(60		)	(94		)	(173		)
Balance at end of year	$	1,371		$	1,061		$	1,000

Additions to allowance for doubtful accounts charged to other accounts were classified as "Accounts and notes receivable - Other" in the consolidated balance sheets. These reserves relate to the Company's sale of trade accounts receivable. Anticipated credit losses in the portfolio of receivables sold are used to fair value the Company's interests held in trade accounts receivable conduits. See Notes 14 and 22 to the Consolidated Financial Statements for further information.


2.	Deductions include write-offs, recoveries, currency translation adjustment and other miscellaneous items.

3. Deductions include disposals and currency translation adjustments.


4.	In 2016, additions to reserves for "Other investments and noncurrent receivables" charged to costs and expenses include $143 million related to the Company's investment in AgroFresh Solutions, Inc. See Note 5 to the Consolidated Financial Statements for further information.


5.	In 2016, deductions from reserves for "Other investments and noncurrent receivables" include $237 million related to the DCC Transaction. See Note 4 to the Consolidated Financial Statements for further information.