Annual report pursuant to Section 13 and 15(d)

Schedule II Valuation and Qualifying Accounts

v3.6.0.2
Schedule II Valuation and Qualifying Accounts
 12 Months Ended
Dec. 31, 2016
Valuation and Qualifying Accounts [Abstract]  
Schedule II Valuation and Qualifying Accounts
Schedule II Valuation and Qualifying Accounts 
Column A
 
Column B
 
Column C
 
Column D
 
Column E
Description
 
Balance at Beginning of Period
 
Charged to (Reduction of) Cost and Expenses
 
Deductions
 
Balance at End of Period
Year ended December 31, 2016
 
 
 
 
 
 
 
 
Deducted from asset account:
 
 
 
 
 
 
 
 
   Allowance for doubtful accounts
 
$
247,000

 
$
(45,000
)
 
$
(120,000
)
 
$
82,000

   Inventory reserves
 
$
682,000

 
$
984,000

 
$
(700,000
)
 
$
966,000

 
 
 
 
 
 
 
 
 
Year ended December 31, 2015
 
 
 
 
 
 
 
 
Deducted from asset account:
 
 
 
 
 
 
 
 
   Allowance for doubtful accounts
 
$
1,115,000

 
$
104,000

 
$
(972,000
)
(a)
$
247,000

   Inventory reserves
 
$
725,000

 
$
767,000

 
$
(810,000
)
 
$
682,000

 
 
 
 
 
 
 
 
 
Year ended January 3, 2015
 
 
 
 
 
 
 
 
Deducted from asset account:
 
 
 
 
 
 
 
 
   Allowance for doubtful accounts
 
$
1,079,000

 
$
667,000

(b)
$
(631,000
)
 
$
1,115,000

   Inventory reserves
 
$
2,206,000

 
$
3,975,000

(c)
$
(5,456,000
)
(c)
$
725,000



(a) Allowance for doubtful accounts deductions for 2015 includes an $801,000 payment to the former owners of Palmer. Per the Stock Purchase Agreement between the former owners of Palmer and the Company (the "SPA"), the former owners of Palmer reimbursed Synalloy for all uncollected accounts receivable after 120 days of Synalloy's ownership. Synalloy increased the allowance for doubtful accounts to reflect the $801,000 payment to offset the outstanding accounts receivable at that time. Over the next two years, Synalloy collected approximately $299,000 on these old accounts and the accounts receivable balance was reduced accordingly. The SPA did not require the reimbursement of these subsequent collections to the former owners of Palmer; however, Synalloy management, on our own recognizance during the second quarter of 2015, reimbursed the $299,000 collected on these old accounts and eliminated the outstanding receivable and allowance for doubtful accounts balances. This transaction had no effect on earnings during any period.
(b) Allowance for doubtful accounts charged to cost and expenses for 2014 includes approximately $76,000 for the beginning balance in the allowance for doubtful accounts for Specialty as a result of the acquisition on November 21, 2014.
(c) Inventory reserves for 2014 reflect $3,109,000 of charged to costs and $4,813,000 of deductions associated with the closing of Bristol Fab and the sale of Ram-Fab during 2014.