SCHEDULE II

VALUATION AND QUALIFYING ACCOUNTS

Allowance for Doubtful Accounts



(In thousands)
Description	Balance at Beginning of Period		Charges to Costs, Expenses and Other		Write-off of Accounts Receivable		Impact of Fresh Start Accounting			Other ⁽¹⁾			Balance at End of Period
Year ended December 31, 2017 (Predecessor)	$	11,484	$	32,204	$	17,743	$	—		$	18		$	25,963
Year ended December 31, 2018 (Predecessor)	$	25,963	$	21,042	$	20,409	$	—		$	(12	)	$	26,584
Period from January 1, 2019 through May 1, 2019 (Predecessor)	$	26,584	$	4,728	$	8,622	$	(22,689	)	$	(1	)	$	—


Period from May 2, 2019 through December 31, 2019 (Successor)	$	—	$	12,628	$	—	$	—		$	1		$	12,629


(1)	Primarily foreign currency adjustments and acquisition and/or divestiture activity.

Deferred Tax Asset Valuation Allowance



(In thousands)
Description	Balance at Beginning of Period		Charges to Costs, Expenses and Other		Reversal ⁽²⁾			Impact of Fresh Start Accounting			Adjustments⁽³⁾			Balance at End of Period
Year ended December 31, 2017 (Predecessor)	$	853,885	$	160,572	$	—		$	—		$	(336,339	)	$	678,118
Year ended December 31, 2018 (Predecessor)	$	678,118	$	11,277	$	—		$	—		$	4,146		$	693,541
Period from January 1, 2019 through May 1, 2019 (Predecessor)	$	693,541	$	714,520	$	(316,374	)	$	(343,662	)	$	(28,539	)	$	719,486


Period from May 2, 2019 through December 31, 2019 (Successor)	$	719,486	$	1,870	$	(734	)	$	—		$	—		$	720,622

(1)

During 2017 and 2018, the Predecessor Company recorded a valuation allowance of $160.6 million and $11.3 million, respectively, on a portion of its deferred tax assets attributable to federal and state net operating loss carryforwards due to the uncertainty of the ability to utilize those losses in future periods. During the period from January 1 through May 1, 2019, the Predecessor Company recorded a valuation allowance of $714.5 million on the federal and state capital losses and separate state net operating losses generated in connection with the restructuring transactions.


(2)	During the period from January 1 through May 1, 2019, the Predecessor Company reversed certain valuation allowances as a result of the restructuring transaction which resulted in reduction of federal and state net operating losses due to the cancellation of debt income realized.

(3)

During 2017, the Predecessor Company adjusted the carrying value of its U.S. federal deferred tax balance due to the U.S. federal tax reform bill that was enacted in 2017. The tax bill reduced the U.S. federal corporate tax rate to 21% and resulted in a reduction to the valuation allowance balance of $336.3 million during the period. During the period from January 1 through May 1, 2019, the Predecessor Company adopted the new lease standard which resulted in a reduction in deferred tax assets and the release of $28.5 million in valuation allowance.