Cardinal Health 2015 Annual Report Download - page 72

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Schedule II Valuation and Qualifying Accounts
71 Cardinal Health | Fiscal 2015 Form 10-K
Cardinal Health, Inc. and Subsidiaries
Schedule II - Valuation and Qualifying Accounts (1)
(in millions) Balance at
Beginning of Period Charged to Costs
and Expenses (2) Charged to
Other Accounts (3) Deductions (4) Balance at
End of Period
Fiscal 2015
Accounts receivable $ 137 $ 59 $ 5 $ (66) $ 135
Finance notes receivable 18 — — (4)14
Sales returns and allowances (5) 273 1,988 —(1,956) 305
Other 1 — — — 1
$ 429 $ 2,047 $ 5 $ (2,026) $ 455
Fiscal 2014
Accounts receivable $ 134 $ 51 $ 2 $ (50) $ 137
Finance notes receivable 17 — 2 (1)18
Sales returns and allowances (5) 291 1,735 —(1,753) 273
Other 1 — — — 1
$ 443 $ 1,786 $ 4 $ (1,804) $ 429
Fiscal 2013
Accounts receivable $ 126 $ 40 $ 2 $ (34) $ 134
Finance notes receivable 16 1 — — 17
Sales returns and allowances (5) — 291 — — 291
Other 1 — — — 1
$ 143 $ 332 $ 2 $ (34) $ 443
(1) Amounts included herein pertain to the continuing operations of the Company.
(2) Fiscal 2015, 2014 and 2013 include $7 million, $9 million and $10 million, respectively, for reserves related to customer pricing disputes, excluded from provision for bad
debts on the consolidated statements of cash flows and classified as a reduction in gross margin in the consolidated statements of earnings.
(3) Recoveries of amounts provided for or written off in prior years were $1 million, $3 million and $1 million for fiscal 2015, 2014 and 2013, respectively.
(4) Write-off of uncollectible accounts or actual sales returns.
(5) Effective June 30, 2013, we prospectively updated our policy to accrue for estimated sales returns and allowances at the time of sale based upon historical customer
return trends, margin rates and processing costs. Prior to this change in policy, we recognized sales returns as a reduction of revenue and cost of products sold for the
sales price and cost, respectively, when products were returned.