5. Advances and Other Receivables, Net

Advances and other receivables, net consists of the following:



	Successor
	December 31, 2019			December 31, 2018
Servicing advances, net of $131 and $205 discount, respectively	$	970		$	1,000
Receivables from agencies, investors and prior servicers, net of $21 and $48 discount, respectively	193			241
Reserves	(175		)	(47		)
Total advances and other receivables, net	$	988		$	1,194

The Company, as loan servicer, is contractually responsible to advance funds on behalf of the borrower and investor primarily for loan principal and interest, property taxes, hazard insurance, and foreclosure costs. Advances are primarily recovered through reimbursement from the investor, proceeds from sale of loan collateral, or mortgage insurance claims. Reserves for advances and other receivables on loans transferred out of the MSR portfolio are established within advances and other receivables.

The following table sets forth the activities of the servicing reserves for advances and other receivables:



	Successor					Predecessor
Reserves for Advances and Other Receivables	Year Ended December 31, 2019			Five Months Ended December 31, 2018		Seven Months Ended July 31, 2018
Balance - beginning of period	$	47		$	—	$	284
Provision and other additions⁽¹⁾	160			47		69
Write-offs	(32		)	—		(56		)
Balance - end of period	$	175		$	47	$	297

⁽¹⁾

The Company recorded a provision of $62 and $25, and the Predecessor recorded a provision of $38 through the MTM adjustments in revenues - service related, net in the consolidated statements of operations for the year ended December 31, 2019, five months ended December 31, 2018 and seven months ended July 31, 2018, respectively, for inactive and liquidated loans that are no longer part of the MSR portfolio. Other additions represent reclassifications of required reserves provisioned within other balance sheet accounts as associated serviced loans become inactive or liquidate.

Purchase Discount for Advances and Other Receivables

In connection with the acquisition of Pacific Union in February 2019, the Company recorded the acquired advances and other receivables at estimated fair value as of the acquisition date, which resulted in a purchase discount of $19. Refer to Note 3, Acquisitions, for discussion of the Pacific Union acquisition. In 2018, the Company recorded the acquired advances and other receivables in connection with the Merger at estimated fair value as of the acquisition date, which resulted in purchase discount of $302.

As of December 31, 2019, a total of $169 purchase discount has been utilized, with $152 purchase discount remaining.

The following table sets forth the activities of the purchase discount for advances and other receivables:



	Successor
	Year Ended December 31, 2019						Five Months Ended December 31, 2018
Purchase Discounts	Servicing Advances			Receivables from Agencies, Investors and Prior Servicers			Servicing Advances			Receivables from Agencies, Investors and Prior Servicers
Balance - beginning of period	$	205		$	48		$	246		$	56
Addition from acquisition	19			—			—			—
Utilization of purchase discounts	(93		)	(27		)	(41		)	(8		)
Balance - end of period	$	131		$	21		$	205		$	48