Valuation and Qualifying Accounts

12 Months Ended

Jun. 30, 2018

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

Valuation and Qualifying Accounts

Matrix Service Company

Schedule II—Valuation and Qualifying Accounts

June 30, 2018, June 30, 2017, and June 30, 2016

(In thousands)

COL. A	COL. B		COL. C ADDITIONS					COL. D				COL. E
	Balance at Beginning of Period		Charged to Costs and Expenses		Charged to Other Accounts—Describe			Deductions—Describe				Balance at End of Period
Fiscal Year 2018
Deducted from asset accounts:
Allowance for doubtful accounts	$	9,887	$	107	$	—		$	(3,667	)	(A)	$	6,327
Valuation reserve for deferred tax assets	1,719		1,020		—			(1,101		)	(B)	1,638
Total	$	11,606	$	1,127	$	—		$	(4,768	)		$	7,965
Fiscal Year 2017
Deducted from asset accounts:
Allowance for doubtful accounts	$	8,403	$	1,748	$	—		$	(264	)	(C)	$	9,887
Valuation reserve for deferred tax assets	424		1,295		—			—				1,719
Total	$	8,827	$	3,043	$	—		$	(264	)		$	11,606
Fiscal Year 2016
Deducted from asset accounts:
Allowance for doubtful accounts	$	561	$	6,065	$	1,808	(D)	$	(31	)	(E)	$	8,403
Valuation reserve for deferred tax assets	115		311		—			(2		)		424
Total	$	676	$	6,376	$	1,808		$	(33	)		$	8,827

(A) Relates to the reversal of reserved account receivable that was fully settled with cash and future backlog. See Note 4 - Goodwill and Other Intangible Assets for more information about the settlement.

(B) Relates to $795 of stock-based compensation expense recognized in fiscal 2018 that was not deductible for tax purposes due to not meeting a market condition vesting requirement and to $306 of foreign tax credits that expired.

(C) Relates to a $180 receivable written off against allowance for doubtful accounts, a $60 reclassification of reserves to billings on uncompleted contracts in excess of costs and estimated earnings and a $24 currency translation adjustment.

(D) Relates to a reclassification of reserves that were initially recorded in billings on uncompleted contracts in excess of costs and estimated earnings.

(E) Receivables written off against allowance for doubtful accounts.