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TWIN DISC, INCORPORATED AND SUBSIDIARIES
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
For the years ended June 30, 2026 and 2025 (In thousands)
| Description | | Balance at Beginning of Period | | | Charged to Costs and Expenses | | | Adjustments(1) | | | Balance at End of Period | |
| 2026: | | | | | | | | | | | | | | | | |
| Allowance for credit losses on accounts receivable | | $ | 1,548 | | | $ | 206 | | | $ | (107 | ) | | $ | 1,647 | |
| Reserve for inventory obsolescence | | $ | 16,016 | | | $ | 956 | | | $ | (782 | ) | | $ | 16,190 | |
| Deferred tax valuation allowance (As Adjusted) | | $ | 16,502 | | | $ | - | | | $ | (16,444 | ) | | $ | 58 | |
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| 2025: | | | | | | | | | | | | | | | | |
| Allowance for credit losses on accounts receivable | | $ | 1,383 | | | $ | (57 | ) | | $ | 222 | | | $ | 1,548 | |
| Reserve for inventory obsolescence | | $ | 12,693 | | | $ | 3,773 | | | $ | (450 | ) | | $ | 16,016 | |
| Deferred tax valuation allowance (As Adjusted) | | $ | 24,035 | | | $ | (7,462 | ) | | $ | (71 | ) | | $ | 16,502 | |
| (1) | Activity primarily represents amounts written-off during the year, along with other adjustments (primarily foreign currency translation adjustments). |
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