THE HERSHEY COMPANY AND SUBSIDIARIES SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS For the Years Ended December 31, 2020, 2019 and 2018 Additions Description Balance at Beginning of Period  Charged to Costs and Expenses  Charged  to Other Accounts Deductions  from  Reserves  Balance at End of Period  In thousands of dollars For the year ended December 31, 2020 Allowances deducted from assets Accounts receivable—trade, net (a) $ 24,966  $ 180,764  $ —  $ (180,755) $ 24,975  Valuation allowance on net deferred taxes (b) 206,743  2,603  —  (16,036) 193,310  Inventory obsolescence reserve (c) 22,049  27,162  —  (31,508) 17,703  Total allowances deducted from assets $ 253,758  $ 210,529  $ —  $ (228,299) $ 235,988  For the year ended December 31, 2019 Allowances deducted from assets Accounts receivable—trade, net (a) $ 24,610  $ 159,140  $ —  $ (158,784) $ 24,966  Valuation allowance on net deferred taxes (b) 239,959  (26,270) —  (6,946) 206,743  Inventory obsolescence reserve (c) 20,136  27,157  —  (25,244) 22,049  Total allowances deducted from assets $ 284,705  $ 160,027  $ —  $ (190,974) $ 253,758  For the year ended December 31, 2018 Allowances deducted from assets Accounts receivable—trade, net (a) $ 41,792  $ 222,819  $ —  $ (240,001) $ 24,610  Valuation allowance on net deferred taxes (b) 312,148  18,413  —  (90,602) 239,959  Inventory obsolescence reserve (c) 19,348  32,379  —  (31,591) 20,136  Total allowances deducted from assets $ 373,288  $ 273,611  $ —  $ (362,194) $ 284,705  (a) Includes allowances for doubtful accounts, anticipated discounts and write-offs of uncollectible accounts receivable. (b) Includes adjustments to the valuation allowance for deferred tax assets that we do not expect to realize, as well as the release of valuation allowances. (c) Includes adjustments to the inventory reserve, transfers, disposals and write-offs of obsolete inventory. The Hershey Company | 2020 Form 10-K | Page 108 Table of Contents