| SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS |
EXTERRAN CORPORATION SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (In thousands) | | | | | | | | | | | | | | | | | | | Description | | Balance at Beginning of Period | | Charged to Costs and Expenses | | Deductions | | Balance at End of Period | Allowance for doubtful accounts deducted from accounts receivable in the balance sheets | | | | | | | | | December 31, 2016 | | $ | 2,868 |
| | $ | 2,972 |
| | $ | 457 |
| (1) | $ | 5,383 |
| December 31, 2015 | | 2,133 |
| | 3,292 |
| | 2,557 |
| (1) | 2,868 |
| December 31, 2014 | | 7,381 |
| | 641 |
| | 5,889 |
| (1) | 2,133 |
| Allowance for obsolete and slow moving inventory deducted from inventories in the balance sheets | | | | | | | | | December 31, 2016 | | $ | 14,486 |
| | $ | 756 |
| | $ | 2,365 |
| (2) | $ | 12,877 |
| December 31, 2015 | | 8,660 |
| | 15,590 |
| | 9,764 |
| (2) | 14,486 |
| December 31, 2014 | | 8,231 |
| | 3,186 |
| | 2,757 |
| (2) | 8,660 |
| Allowance for deferred tax assets not expected to be realized | | | | | | | | | December 31, 2016 | | $ | 186,993 |
| | $ | 147,558 |
| | $ | 15,664 |
| (4) | $ | 318,887 |
| December 31, 2015 | | 132,021 |
| | 94,026 |
| (3 | ) | 39,054 |
| (4) | 186,993 |
| December 31, 2014 | | 120,958 |
| | 41,820 |
| | 30,757 |
| (4) | 132,021 |
|
| | (1) | Uncollectible accounts written off. |
| | (2) | Obsolete inventory written off at cost, net of value received. |
| | (3) | Includes $45.0 million in allowance against foreign tax credits transferred from Archrock pursuant to the Spin-off. |
| | (4) | Reflects expected realization of deferred tax assets and amounts credited to other accounts for stock-based compensation excess tax benefits, expiring net operating losses, changes in tax rates and changes in currency exchange rates. |
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