Valuation and Qualifying Accounts and Reserves

12 Months Ended

Jul. 31, 2020

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, 2020, 2019 and 2018

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,
2020	$	1,867,000	45,000	(A)	—		(143,000)	(B)	$	1,769,000
2019	1,761,000		1,136,000	(A)	—		(1,030,000)	(B)	1,867,000
2018	1,300,000		573,000	(A)	—		(112,000)	(B)	1,761,000
Inventory reserves:
Year ended July 31,
2020	$	19,696,000	1,647,000	(C)	—		(2,267,000)	(D)	$	19,076,000
2019	17,427,000		6,015,000	(C)	—		(3,746,000)	(D)	19,696,000
2018	16,019,000		5,628,000	(C)	—		(4,220,000)	(D)	17,427,000
Valuation allowance for deferred tax assets:
Year ended July 31,
2020	$	12,568,000	750,000	(E)	—		(1,847,000)	(E)	$	11,471,000
2019	11,854,000		58,000	(E)	656,000	(F)	—		12,568,000
2018	8,633,000		3,221,000	(E)	—		—		11,854,000

(A)Provision for doubtful accounts. The amount recorded in the fiscal year ended July 31, 2020 includes $476,000 of estimated contract settlement costs in connection with evaluation and repositioning of certain legacy customer contracts.

(B)Write-off of uncollectible receivables.

(C)Provision for excess and obsolete inventory.

(D)Write-off of inventory.

(E)Change in valuation allowance.

(F)Acquisition related valuation allowance charged to goodwill.