DOW INC

NOTE 9 –TRANSFERS OF FINANCIAL ASSETS

Accounts Receivable Programs

The Company maintains accounts receivable facilities with various financial institutions, with committed and uncommitted facilities in the United States and a committed facility in Europe (collectively, "the Programs"), which are set to expire in November 2025. Under the terms of the Programs, the Company may sell certain eligible trade accounts receivable at any point in time, up to $900 million for the U.S. committed facility and up to €500 million for the Europe committed facility. In the first quarter of 2024, the Company sold $279 million of receivables under the Programs (no sales of receivables in the first three months of 2023). Under the terms of the Programs, the Company continues to service the receivables from the customer, but retains no interest in the receivables, and remits payment to the financial institutions. At March 31, 2024, the Company had $273 million outstanding ($79 million outstanding at December 31, 2023). Losses on transfers of receivables were insignificant in the first quarter of 2024. The Company also provides a guarantee to the financial institutions for the creditworthiness and collection of the receivables in satisfaction of the facility. See Note 11 for additional information related to guarantees.

Beginning in the fourth quarter of 2023, the Company has access to an accounts receivable discounting facility that covers receivables generated from sales in EMEAI. Beginning in the first quarter of 2024, the Company has access to a similar accounts receivable discounting facility that covers receivables generated from sales in Asia Pacific. Under the terms of these discounting facilities, the Company retains no interest in the transferred receivables once sold and receivables are transferred with limited recourse. In the first quarter of 2024, the Company sold $148 million of receivables under these facilities (no sales of receivables in the first three months of 2023). Under the terms of the discounting facilities, the Company continues to service the receivables from the customer and had $148 million outstanding at March 31, 2024 ($91 million outstanding at December 31, 2023). Losses on transfers of receivables were insignificant in the first quarter of 2024.