Valuation and Qualifying Accounts

12 Months Ended

Jun. 30, 2016

SCHEDULE II

II-VI INCORPORATED AND SUBSIDIARIES

VALUATION AND QUALIFYING ACCOUNTS

YEARS ENDED JUNE 30, 2016, 2015, 2014 AND

(IN THOUSANDS OF DOLLARS)

			Additions
	Balance at		Charged			Charged				Deduction					Balance
	Beginning		to			to Other				from					at End
	of Year		Expense			Accounts				Reserves					of Year
YEAR ENDED JUNE 30, 2016:
Allowance for doubtful accounts	$	1,048	$	1,123		$	-			$	(155	)	⁽²	⁾	$	2,016
Warranty reserves	$	3,251	$	4,648		$	82	⁽¹	⁾	$	(4,073	)			$	3,908
Deferred tax asset valuation allowance	$	2,713	$	8,464		$	36,240	⁽³	⁾	$	(4,776	)	⁽⁴	⁾	$	42,641

YEAR ENDED JUNE 30, 2015:
Allowance for doubtful accounts	$	1,852	$	(482	)	$	-			$	(322	)	⁽²	⁾	$	1,048
Warranty reserves	$	2,859	$	5,047		$	-			$	(4,655	)			$	3,251

YEAR ENDED JUNE 30, 2014:
Allowance for doubtful accounts	$	1,479	$	993		$	-			$	(620	)	⁽²	⁾	$	1,852
Warranty reserves	$	1,661	$	1,868		$	1,173	⁽¹	⁾	$	(1,843	)			$	2,859

(1)

Relates to the warranty reserve acquired from the acquisitions.

(2)

Primarily relates to write-offs of accounts receivable.

(3)

Valuation allowance recorded through goodwill.

(4)

Reduction in valuation allowance as a result of divesture of portion of business.