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Schedule II - Valuation and Qualifying Accounts and Allowances
 12 Months Ended
Dec. 31, 2017
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II - Valuation and Qualifying Accounts and Allowances
SCHEDULE II

WEATHERFORD INTERNATIONAL PLC AND SUBSIDIARIES
VALUATION AND QUALIFYING ACCOUNTS AND ALLOWANCES
FOR THE SUCCESSOR PERIOD ENDED DECEMBER 31, 2019
AND PREDECESSOR PERIOD ENDED DECEMBER 13, 2019, DECEMBER 31, 2018 DECEMBER 31, 2017
 
 
Balance at
 
 
 
 
 
 
 
Balance at
 
 
Beginning
 
 
 
 
 
 
 
End of
(Dollars in millions)
 
of Period
 
Expense (a)
 
Recoveries (b)
 
Other (c) (d)
 
Period (e)
Year Ended December 31, 2019 (Successor):
 
 
 
 
 
 
 
 
 
 
Allowance for Uncollectible Accounts Receivable
 
—

 
—

 
—

 
—

 
—

Valuation Allowance on Deferred Tax Assets
 
$
1,222

 
$
(56
)
 
$
—

 
$
—

 
$
1,166

Excess and Obsolete Inventory Reserve
 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
Year Ended December 13, 2019 (Predecessor):
 
 
 
 
 
 
 
 
 
 
Current Allowance for Uncollectible Accounts Receivable
 
$
123

 
$
4

 
$
(3
)
 
$
(124
)
 
$
—

Long-term Allowance for Uncollectible Accounts Receivable
 
171

 
—

 
(3
)
 
(168
)
 
—

Total Allowance for Uncollectible Accounts Receivable
 
$
294

 
$
4

 
$
(6
)
 
$
(292
)
 
$
—

 
 
 
 
 
 
 
 
 
 
 
Valuation Allowance on Deferred Tax Assets
 
$
1,702

 
$
(480
)
 
$
—

 
$
—

 
$
1,222

Excess and Obsolete Inventory Reserve
 
$
305

 
$
163

 
$
(4
)
 
$
(464
)
 
$
—

 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2018 (Predecessor):
 
 
 
 
 
 
 
 
 
 
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 (Predecessor):
 
 
 
 
 
 
 
 
 
 
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



(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. Upon
emergence from bankruptcy on December 13, 2019, the allowance for uncollectible accounts receivable related to our primary customer in Venezuela was nil.
(b)
Of the total recoveries in 2018, we collected $16 million on previously fully reserved Venezuelan accounts receivable.
(c)
Other for 2019 almost entirely represents our Fresh Start Accounting adjustments to record our reserves at fair value at December 31, 2019. 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. Other within the excess and obsolete inventory reserve also includes removal of scrapped inventory that had been previously reserved.
(d)
Other for valuation allowance on deferred taxes in 2018 is primarily due to currency translation. Other for excess and obsolete inventory reserve in 2018 primarily represents the removal of scrapped inventory that had been previously reserved.
(e)
Upon emergence from bankruptcy on December 13, 2019, the allowance for uncollectible accounts receivable and the excess and obsolete inventory reserve were nil. There was no expense, recoveries, or other movements between December 13, 2019 through December 31, 2019 and the balance for both allowance for uncollectible accounts receivable and the excess and obsolete inventory reserve was nil at December 31, 2019.

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