PHI, INC. AND SUBSIDIARIES

Schedule II – Valuation and Qualifying Consolidated Accounts

(Thousands of dollars)


			Additions
	Balance at		Charged to				Balance at
	Beginning		Costs and				End
Description	of Year		Expenses		Deductions ⁽¹⁾		of Year
Year ended December 31, 2015:
Allowance for doubtful accounts	$	1,351	$	3,800	$	—	$	5,151
Allowance for inventory		13,517		1,868		—		15,385
Allowance for contractual discounts		96,590		439,991		432,980		103,601
Allowance for uncompensated care		41,858		84,470		84,404		41,924

Year ended December 31, 2014:
Allowance for doubtful accounts	$	1,001	$	350	$	—	$	1,351
Allowance for inventory		12,292		1,225		—		13,517
Allowance for contractual discounts		74,711		408,362		386,483		96,590
Allowance for uncompensated care		46,387		79,564		84,093		41,858

Year ended December 31, 2013:
Allowance for doubtful accounts	$	50	$	951	$	—	$	1,001
Allowance for inventory		12,361		—		69		12,292
Allowance for contractual discounts		50,389		312,927		288,605		74,711
Allowance for uncompensated care		52,168		71,011		76,792		46,387

(1)	Deductions from provisions represent losses or expenses for which the respective provisions were created. In the case of the provision for contractual discounts and uncompensated care, such deductions are reduced by recoveries of amounts previously written off.