Condensed Consolidating Financial Information - Guarantor Subsidiaries

12 Months Ended

Dec. 31, 2011

Condensed Consolidating Financial Information - Guarantor Subsidiaries [Abstract]

CONDENSED CONSOLIDATING FINANCIAL INFORMATION - GUARANTOR SUBSIDIARIES

(13) CONDENSED CONSOLIDATING FINANCIAL INFORMATION – GUARANTOR SUBSIDIARIES

Our 8.625% Senior Notes are fully and unconditionally guaranteed on a joint and several, senior basis by all of our domestic subsidiaries. All of our domestic subsidiaries are 100% owned.

The following supplemental condensed financial information sets forth, on a consolidated basis, the balance sheet, statement of operations, and statement of cash flows information for PHI, Inc. (“Parent Company Only”) and the guarantor subsidiaries. The eliminating entries eliminate investments in subsidiaries, intercompany balances, and intercompany revenues and expenses. The condensed consolidating financial statements have been prepared on the same basis as the consolidated financial statements of PHI, Inc. The equity method is followed by the parent company within these condensed consolidating financials.

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(Thousands of dollars)

	December 31, 2011
	Parent Company Only (issuer)			Guarantor Subsidiaries  (1)		Eliminations			Consolidated
ASSETS
Current Assets:
Cash	$	4,313		$	778	$	—		$	5,091
Short-term investments		100,027			—		—			100,027
Accounts receivable – net		91,144			8,152		—			99,296
Intercompany receivable		—			97,381		(97,381	)		—
Inventories of spare parts – net		57,243			—		—			57,243
Other current assets		14,349			953		—			15,302
Income taxes receivable		346			—		—			346
Total current assets		267,422			107,264		(97,381	)		277,305
Investment in subsidiaries and others		80,992			—		(80,992	)		—
Other assets		27,050			21		—			27,071
Property and equipment, net		651,046			8,710		—			659,756
Total assets	$	1,026,510		$	115,995	$	(178,373	)	$	964,132
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	12,693		$	5,004	$	—		$	17,697
Accrued liabilities		24,018			5,033		—			29,051
Intercompany payable		97,381			—		(97,381	)		—
Total current liabilities		134,092			10,037		(97,381	)		46,748
Long-term debt		346,047			—		—			346,047
Deferred income taxes and other long-term liabilities		69,034			24,966		—			94,000
Shareholders’ Equity:
Common stock and paid-in capital		292,934			2,674		(2,674	)		292,934
Accumulated other comprehensive loss		(93	)		—		—			(93	)
Retained earnings		184,496			78,318		(78,318	)		184,496
Total shareholders’ equity		477,337			80,992		(80,992	)		477,337
Total liabilities and shareholders’ equity	$	1,026,510		$	115,995	$	(178,373	)	$	964,132

(1) Foreign subsidiaries represent minor subsidiaries and are included in the guarantors’ subsidiaries amounts.

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(Thousands of dollars)

	December 31, 2010
	Parent Company Only (issuer)			Guarantor Subsidiaries  (1)		Eliminations			Consolidated
ASSETS
Current Assets:
Cash	$	2,957		$	671	$	—		$	3,628
Short-term investments		150,072			—		—			150,072
Accounts receivable – net		81,393			8,266		—			89,659
Intercompany receivable		—			79,810		(79,810	)		—
Inventories of spare parts – net		59,336			—		—			59,336
Other current assets		16,224			9		—			16,233
Income taxes receivable		558			—		—			558
Total current assets		310,540			88,756		(79,810	)		319,486
Investment in subsidiaries and others		75,114			—		(75,114	)		—
Other assets		29,099			21		—			29,120
Property and equipment, net		583,091			13,442		—			596,533
Total assets	$	997,844		$	102,219	$	(154,924	)	$	945,139
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	22,191		$	213	$	—		$	22,404
Accrued liabilities		23,482			4,837		—			28,319
Intercompany payable		79,810			—		(79,810	)		—
Total current liabilities		125,483			5,050		(79,810	)		50,723
Long-term debt		331,074			—		—			331,074
Deferred income taxes and other long-term liabilities		68,871			22,055		—			90,926
Shareholders’ Equity:
Common stock and paid-in capital		292,934			2,674		(2,674	)		292,934
Accumulated other comprehensive loss		(162	)		—		—			(162	)
Retained earnings		179,644			72,440		(72,440	)		179,644
Total shareholders’ equity		472,416			75,114		(75,114	)		472,416
Total liabilities and shareholders’ equity	$	997,844		$	102,219	$	(154,924	)	$	945,139

(1) Foreign subsidiaries represent minor subsidiaries and are included in the guarantors’ subsidiaries amounts.

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Thousands of dollars)

	For the year ended December 31, 2011
	Parent Company Only (issuer)			Guarantor Subsidiaries (1)		Eliminations			Consolidated
Operating revenues, net	$	479,879		$	59,747	$	—		$	539,626
Management fees		2,390			—		(2,390	)		—
Gain on disposition of assets, net		(302	)		—		—			(302	)
Other, principally interest income		845			—		—			845
		482,812			59,747		(2,390	)		540,169
Expenses:
Direct expenses		423,614			46,126		—			469,740
Management fees		—			2,390		(2,390	)		—
Selling, general, and administrative		32,934			1,435		—			34,369
Equity in net earnings of consolidated subsidiaries		(5,878	)		—		5,878			—
Interest expense		27,974			—		—			27,974
		478,644			49,951		3,488			532,083
Earnings before income taxes		4,168			9,796		(5,878	)		8,086
Income tax expense		(684	)		3,918		—			3,234
Net earnings	$	4,852		$	5,878	$	(5,878	)	$	4,852
	For the year ended December 31, 2010
	Parent Company Only			Guarantor Subsidiaries  (1)		Eliminations			Consolidated
Operating revenues, net	$	455,041		$	61,894	$	—		$	516,935
Management fees		2,476			—		(2,476	)		—
Gain on disposition of assets, net		239			—		—			239
Other, principally interest income		178			—		—			178
		457,934			61,894		(2,476	)		517,352
Expenses:
Direct expenses		392,077			51,625		—			443,702
Management fees		—			2,476		(2,476	)		—
Selling, general, and administrative		28,725			1,422		—			30,147
Equity in net earnings of consolidated subsidiaries		(3,823	)		—		3,823			—
Interest expense		19,389			—		—			19,389
Loss on debt restructuring		9,521			—		—			9,521
		445,889			55,523		1,347			502,759
Earnings before income taxes		12,045			6,371		(3,823	)		14,593
Income tax expense		4,928			2,548		—			7,476
Net earnings	$	7,117		$	3,823	$	(3,823	)	$	7,117

(1) Foreign subsidiaries represent minor subsidiaries and are included in the guarantors’ subsidiaries amounts.

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Thousands of dollars)

	For the year ended December 31, 2009
	Parent Company Only (issuer)			Guarantor Subsidiaries  (1)		Eliminations			Consolidated
Operating revenues, net	$	419,075		$	68,100	$	—		$	487,175
Management fees		2,724			—		(2,724	)		—
Gain on disposition of assets, net		111			—		—			111
Other, principally interest income		225			—		—			225
		422,135			68,100		(2,724	)		487,511
Expenses:
Direct expenses		365,385			53,242		—			418,627
Management fees		—			2,724		(2,724	)		—
Selling, general, and administrative		28,979			2,027		—			31,006
Equity in net earnings of consolidated subsidiaries		(6,064	)		—		6,064			—
Interest expense		16,037			—		—			16,037
		404,337			57,993		3,340			465,670
Earnings before income taxes		17,798			10,107		(6,064	)		21,841
Income tax expense		4,830			4,043		—			8,873
Net earnings	$	12,968		$	6,064	$	(6,064	)	$	12,968

(1) Foreign subsidiaries represent minor subsidiaries and are included in the guarantors’ subsidiaries amounts.

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Thousands of dollars)

	For the year ended December 31, 2011
	Parent Company Only (issuer)			Guarantor Subsidiaries (1)			Eliminations		Consolidated
Net cash provided by operating activities	$	30,245		$	107		$	—	$	30,352
Investing activities:
Purchase of property and equipment		(91,028	)		—			—		(91,028	)
Proceeds from asset dispositions		6,852			—			—		6,852
Proceeds from sale of short-term investments, net		48,112			—			—		48,112
Deposits on aircraft		(7,798	)		—			—		(7,798	)
Net cash used in investing activities		(43,862	)		—			—		(43,862	)
Financing activities:
Proceeds from line of credit		73,865			—			—		73,865
Payments on line of credit		(58,892	)		—			—		(58,892	)
Net cash provided by financing activities		14,973			—			—		14,973
Increase (decrease) in cash		1,356			107			—		1,463
Cash, beginning of year		2,957			671			—		3,628
Cash, end of year	$	4,313		$	778		$	—	$	5,091
	For the year ended December 31, 2010
	Parent Company Only			Guarantor Subsidiaries  (1)			Eliminations		Consolidated
Net cash provided by operating activities	$	74,648		$	2,209		$	—	$	76,857
Investing activities:
Purchase of property and equipment		(95,869	)		(2,361	)		—		(98,230	)
Proceeds from asset dispositions		1,171			—			—		1,171
Purchase of short-term investments, net		(74,671	)		—			—		(74,671	)
Other		(3,780	)		—			—		(3,780	)
Net cash used in investing activities		(173,149	)		(2,361	)		—		(175,510	)
Financing activities:
Proceeds from issuance of Senior Notes due 2018		300,000			—			—		300,000
Premium and costs to retire debt early		(7,667	)		—			—		(7,667	)
Repayment of Senior Notes, due 2013		(200,000	)		—			—		(200,000	)
Debt issuance costs		(5,322	)		—			—		(5,322	)
Proceeds on line of credit		59,287			—			—		59,287
Payments on line of credit		(46,518	)		—			—		(46,518	)
Net cash provided by financing activities		99,780			—			—		99,780
Increase (decrease) in cash		1,279			(152	)		—		1,127
Cash, beginning of year		1,678			823			—		2,501
Cash, end of year	$	2,957		$	671		$	—	$	3,628

(1) Foreign subsidiaries represent minor subsidiaries and are included in the guarantors’ subsidiaries amounts.

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Thousands of dollars)

	For the year ended December 31, 2009
	Parent Company Only (issuer)			Guarantor Subsidiaries  (1)			Eliminations		Consolidated
Net cash provided by operating activities	$	53,442		$	1,830		$	—	$	55,272
Investing activities:
Purchase of property and equipment		(55,428	)		(1,607	)		—		(57,035	)
Proceeds from asset dispositions		9,217			—			—		9,217
Purchase of short-term investments, net		(33,017	)		—			—		(33,017	)
Other		11,600			—			—		11,600
Net cash used in investing activities		(67,628	)		(1,607	)		—		(69,235	)
Financing activities:
Proceeds on line of credit		37,750			—			—		37,750
Payments on line of credit		(22,445	)		—			—		(22,445	)
Net cash provided by financing activities		15,305			—			—		15,305
Increase in cash		1,119			223			—		1,342
Cash, beginning of year		559			600			—		1,159
Cash, end of year	$	1,678		$	823		$	—	$	2,501

(1) Foreign subsidiaries represent minor subsidiaries and are included in the guarantors’ subsidiaries amounts.