Matrix Service Company

Schedule II—Valuation and Qualifying Accounts

June 30, 2019, June 30, 2018, and June 30, 2017

(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 2019
Deducted from asset accounts:
Allowance for doubtful accounts	$	6,327	$	5	$	—	$	(5,409	)	(A)	$	923
Valuation reserve for deferred tax assets	1,638		4,594				(1,273		)	(B)	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	)	(C)	$	6,327
Valuation reserve for deferred tax assets	1,719		1,020		—		(1,101		)	(D)	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	)	(E)	$	9,887
Valuation reserve for deferred tax assets	424		1,295		—		—				1,719
Total	$	8,827	$	3,043	$	—	$	(264	)		$	11,606


(A)	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.

(B)

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.


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


(D)	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.


(E)	Primarily relates to a $0.2 million receivable written off against allowance for doubtful accounts.