Valuation and Qualifying Accounts

12 Months Ended

Jun. 30, 2020

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

Valuation and Qualifying Accounts

Matrix Service Company

Schedule II—Valuation and Qualifying Accounts

June 30, 2020, June 30, 2019, and June 30, 2018

(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 2020
Deducted from asset accounts:
Allowance for doubtful accounts	$	923	$	1,158	$	—	$	(1,176)	(A)	$	905
Valuation reserve for deferred tax assets	4,959		3,062		—		(258)		(B)	7,763
Total	$	5,882	$	4,220	$	—	$	(1,434)		$	8,668
Fiscal Year 2019
Deducted from asset accounts:
Allowance for doubtful accounts	6,327		5		—		(5,409)		(C)	923
Valuation reserve for deferred tax assets	1,638		4,594		—		(1,273)		(D)	4,959
Total	7,965		4,599		—		(6,682)			5,882
Fiscal Year 2018
Deducted from asset accounts:
Allowance for doubtful accounts	9,887		107		—		(3,667)		(E)	6,327
Valuation reserve for deferred tax assets	1,719		1,020		—		(1,101)		(F)	1,638
Total	11,606		1,127		—		(4,768)			7,965

(A)Primarily relates to a $0.6 million reserve that was recognized as bad debt expense and ultimately settled and written off within fiscal 2020 and $0.3 million of payments received on a balance that was fully reserved.

(B)Relates to foreign currency exchange rate differences for the portion of the valuation allowance on net operating loss and tax credit carryforwards in foreign jurisdictions.

(C)Primarily relates to a $5.2 million reversal of a previous reserved account receivable balance that was fully settled with an agreement with the customer.

(D)Relates to the deferred tax asset of $0.8 million created by a stock-based compensation award with a market condition that was fully reserved in fiscal 2018. In fiscal 2019, upon the final determination that the award would not vest, the Company wrote off the deferred tax asset against the reserve. The remaining balance relates to $0.5 million of fully reserved tax credits that expired in fiscal 2019.

(E)Primarily relates to the reversal of reserved account receivable that was fully settled with cash and future backlog.

(F)Primarily relates to $0.8 million 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 $0.3 million of foreign tax credits that expired.