SCHEDULE II

WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES

VALUATION AND QUALIFYING ACCOUNTS AND ALLOWANCES

FOR THE THREE YEARS ENDED DECEMBER 31, 2018



	Balance at											Balance at
	Beginning											End of
(Dollars in millions)	of Period		Expense ^(a)			Recoveries ^(b)			Other ^{(c) (d)}			Period
Year Ended December 31, 2018:
Current Allowance for Uncollectible Accounts Receivable	$	156	$	5		$	(15	)	$	(23	)	$	123
Long-term Allowance for Uncollectible Accounts Receivable	173		—			(2		)	—			171
Total Allowance for Uncollectible Accounts Receivable	$	329	$	5		$	(17	)	$	(23	)	$	294

Valuation Allowance on Deferred Tax Assets	$	1,887	(166		)	—			(19		)	$	1,702
Excess and Obsolete Inventory Reserve	$	635	86			(6		)	(410		)	$	305

Year Ended December 31, 2017:
Allowance for Uncollectible Accounts Receivable	$	129	$	80		$	—		$	(53	)	$	156
Long-term Allowance for Uncollectible Accounts Receivable	—		158			—			15			173
Total Allowance for Uncollectible Accounts Receivable	$	129	$	238		$	—		$	(38	)	$	329

Valuation Allowance on Deferred Tax Assets	$	1,738	158			—			(9		)	$	1,887
Excess and Obsolete Inventory Reserve	$	265	545			(5		)	(170		)	$	635

Year Ended December 31, 2016:
Allowance for Uncollectible Accounts Receivable	$	113	69			—			(53		)	$	129
Valuation Allowance on Deferred Tax Assets	$	868	872			—			(2		)	$	1,738
Excess and Obsolete Inventory Reserve	$	288	$	273		$	(4	)	$	(292	)	$	265

(a)

In the second quarter of 2017, we changed the accounting for revenue with our primary customer in Venezuela to record a discount reflecting the time value of money and accrete the discount as interest income over the expected collection period using the effective interest method. In the fourth quarter of 2017, we changed the accounting for revenue with substantially all of our customers in Venezuela due to the downgrade of the country’s bonds by certain credit agencies, continued economic turmoil and continued economic sanctions around certain financing transactions imposed by the U.S. government. We recorded a charge equal to a full allowance on our accounts receivable for customers in Venezuela of approximately $230 million. This reduced our long-term and current receivables by $158 million and $72 million, respectively, as of December 31, 2017. The long-term allowance related to our primary customer in Venezuela is $171 million and $173 million as of December 31, 2018 and December 31, 2017.


(b)	Of the total recoveries, we collected $16 million on previously fully reserved Venezuelan accounts receivable.


(c)	Other within the allowance for uncollectible accounts receivable as of December 2017 includes write-offs and amounts reclassified to long-term and as of December 31, 2018, includes reductions to allowance reserves.


(d)	Other for valuation allowance on deferred taxes is primarily due to currency translation. Other for excess and obsolete inventory reserve primarily represents the removal of scrapped inventory that had been previously reserved.

All other schedules are omitted because they are not required or because the information is included in the financial statements or the related notes.