Valuation and Qualifying Accounts and Reserves

12 Months Ended

Jul. 31, 2023

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts and Reserves

Schedule II

COMTECH TELECOMMUNICATIONS CORP.

AND SUBSIDIARIES

Valuation and Qualifying Accounts and Reserves

Fiscal Years Ended July 31, 2023, 2022 and 2021

Column A	Column B		Column C Additions				Column D		Column E
Description	Balance at beginning of period		Charged to cost and expenses		Charged to other accounts - describe		Transfers (deductions) - describe		Balance at end of period
Allowance for doubtful accounts receivable:
Year ended July 31,
2023	$	2,337,000	261,000	(A)	—		(509,000)	(B)	$	2,089,000
2022	1,648,000		838,000	(A)	—		(149,000)	(B)	2,337,000
2021	1,769,000		(18,000)	(A)	215,000	(C)	(318,000)	(B)	1,648,000
Inventory reserves:
Year ended July 31,
2023	$	23,121,000	4,871,000	(D)	—		(3,333,000)	(E)	$	24,659,000
2022	20,229,000		4,447,000	(D)	—		(1,555,000)	(E)	23,121,000
2021	19,076,000		4,364,000	(D)	—		(3,211,000)	(E)	20,229,000
Valuation allowance for deferred tax assets:
Year ended July 31,
2023	$	31,227,000	4,617,000	(F)	—		(1,366,000)	(F)	$	34,478,000
2022	28,384,000		2,947,000	(F)	—		(104,000)	(F)	31,227,000
2021	11,471,000		17,750,000	(F)	—		(837,000)	(F)	28,384,000

(A)Provision for doubtful accounts.

(B)Write-off of uncollectible receivables.

(C)Increase due to our August 1, 2020 adoption of FASB ASU No. 2016-13, on a modified-retrospective basis, which requires companies to utilize an impairment model (current expected credit loss ("CECL”)) for most financial assets measured at amortized cost and certain other financial instruments, which include, but are not limited to trade receivables and contract assets.

(D)Provision for excess and obsolete inventory.

(E)Write-off of inventory.

(F)Change in valuation allowance. See Note (9) - "Income Taxes" for further discussion.