CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Tables)

3 Months Ended

Mar. 31, 2014

Organization Consolidation And Presentation Of Financial Statements [Abstract]

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(Thousands of dollars)

(Unaudited)


	March 31, 2014
	Parent Company Only (issuer)			Guarantor Subsidiaries ⁽¹⁾			Eliminations			Consolidated
ASSETS
Current Assets:
Cash	$	7,379		$	1,957		$	—		$	9,336
Short-term investments		141,473			—			—			141,473
Accounts receivable – net		88,811			82,871			—			171,682
Intercompany receivable		140,239			—			(140,239	)		—
Inventories of spare parts – net		72,086			107			—			72,193
Prepaid expenses		7,328			2,332			—			9,660
Deferred income taxes		12,723			—			—			12,723
Income taxes receivable		1,361			510			—			1,871

Total current assets		471,400			87,777			(140,239	)		418,938
Investment in subsidiaries		115,008			—			(115,008	)		—
Property and equipment – net		612,255			222,153			—			834,408
Restricted investments		14,685			—			—			14,685
Other assets		24,738			(234	)		—			24,504

Total assets	$	1,238,086		$	309,696		$	(255,247	)	$	1,292,535

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	46,775		$	6,043		$	—		$	52,818
Short-term debt		7,429			—			—			7,429
Accrued and other current liabilities		19,111			19,378			—			38,489
Intercompany payable		—			140,239			(140,239	)		—

Total current liabilities		73,315			165,660			(140,239	)		98,736
Long-term debt		500,000			—			—			500,000
Deferred income taxes and other long-term liabilities		109,606			29,028			—			138,634
Shareholders’ Equity:
Common stock and paid-in capital		298,993			2,674			(2,674	)		298,993
Accumulated other comprehensive loss		(16	)		—			—			(16	)
Retained earnings		256,188			112,334			(112,334	)		256,188

Total shareholders’ equity		555,165			115,008			(115,008	)		555,165

Total liabilities and shareholders’ equity	$	1,238,086		$	309,696		$	(255,247	)	$	1,293,535

(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, 2013
	Parent Company Only (issuer)			Guarantor Subsidiaries ⁽¹⁾			Eliminations			Consolidated
ASSETS
Current Assets:
Cash	$	52		$	882		$	—		$	934
Short-term investments		85,916			—			—			85,916
Accounts receivable – net		83,988			89,732			—			173,720
Intercompany receivable		129,026			—			(129,026	)		—
Inventories of spare parts – net		71,023			114			—			71,137
Prepaid expenses		6,441			1,916			—			8,357
Deferred income taxes		12,723			—			—			12,723
Income taxes receivable		1,361			510			—			1,871

Total current assets		390,530			93,154			(129,026	)		354,658
Investment in subsidiaries		112,273			—			(112,273	)		—
Property and equipment, net		579,369			206,103			—			785,472
Restricted investments		14,685			—			—			14,685
Other assets		19,111			(603	)		—			18,508

Total assets	$	1,115,968		$	298,654		$	(241,299	)	$	1,173,323

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	31,232		$	5,642		$	—		$	36,874
Accrued liabilities		31,330			23,201			—			54,531
Intercompany payable		—			129,026			(129,026	)		—

Total current liabilities		62,562			157,869			(129,026	)		91,405
Long-term debt		379,000			—			—			379,000
Deferred income taxes and other long-term liabilities		114,441			28,512			—			142,953
Shareholders’ Equity:
Common stock and paid-in capital		298,480			2,674			(2,674	)		298,480
Accumulated other comprehensive loss		(24	)		—			—			(24	)
Retained earnings		261,509			109,599			(109,599	)		261,509

Total shareholders’ equity		559,965			112,273			(112,273	)		559,965

Total liabilities and shareholders’ equity	$	1,115,968		$	298,654		$	(241,299	)	$	1,173,323

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

Condensed Consolidating Statements of Operations

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Thousands of dollars)

(Unaudited)


	For the quarter ended March 31, 2014
	Parent Company Only (issuer)			Guarantor Subsidiaries ⁽¹⁾		Eliminations			Consolidated
Operating revenues, net	$	124,354		$	72,717	$	—		$	197,071
Expenses:
Direct expenses		96,426			62,227		—			158,653
Selling, general and administrative expenses		7,081			2,247		—			9,328
Management fees		(2,909	)		2,909		—			—

Total operating expenses		100,598			67,383		—			167,981
Loss on disposal of assets, net		115			958		—			1,073
Equity in loss of unconsolidated affiliate		41			—		—			41

Operating income		23,600			4,376		—			27,976
Equity in net income of consolidated subsidiaries		(2,735	)		—		2,735			—
Interest expense		7,364			—		—			7,364
Loss on debt extinguishment		29,216			—		—			29,216
Other income, net		(91	)		—		—			(91	)

		33,754			—		2,735			36,489

(Loss) earnings before income taxes		(10,154	)		4,376		(2,735	)		(8,513	)
Income tax (benefit) expense		(4,833	)		1,641		—			(3,192	)

Net (loss) earnings	$	(5,321	)	$	2,735	$	(2,735	)	$	(5,321	)


	For the quarter ended March 31, 2013
	Parent Company Only (issuer)			Guarantor Subsidiaries ⁽¹⁾		Eliminations			Consolidated
Operating revenues, net	$	112,485		$	66,483	$	—		$	178,968
Expenses:
Direct expenses		90,885			57,318		—			148,203
Selling, general and administrative expenses		6,333			1,933		—			8,266
Management fees		(2,659	)		2,659		—			—

Total operating expenses		94,559			61,910		—			156,469
Loss on disposal of assets, net		25			—		—			25
Equity in loss of unconsolidated affiliate		487			—		—			487

Operating income		17,414			4,573		—			21,987
Equity in net income of consolidated subsidiaries		(2,744	)		—		2,744			—
Interest expense		7,409			—		—			7,409
Other income, net		(152	)		—		—			(152	)

		4,513			—		2,744			7,257

Earnings before income taxes		12,901			4,573		(2,744	)		14,730
Income tax expense		4,063			1,829		—			5,892

Net earnings	$	8,838		$	2,744	$	(2,744	)	$	8,838

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

Condensed Consolidated Statements of Comprehensive Income (Loss)

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Thousands of dollars)

(Unaudited)


	For the quarter ended March 31, 2014
	Parent Company Only (issuer)			Guarantor Subsidiaries ⁽¹⁾		Eliminations			Consolidated
Net (loss) earnings	$	(5,321	)	$	2,735	$	(2,735	)	$	(5,321	)
Unrealized gain on short-term investments		14			—		—			14
Changes in pension plan assets and benefit obligations		(1	)		—		—			(1	)
Tax effect		(5	)		—		—			(5	)

	$	(5,313	)	$	2,735	$	(2,735	)	$	(5,313	)


	For the quarter ended March 31, 2013
	Parent Company Only (issuer)			Guarantor Subsidiaries ⁽¹⁾		Eliminations			Consolidated
Net earnings (loss)	$	8,838		$	2,744	$	(2,744	)	$	8,838
Unrealized gain on short-term investments		32			—		—			32
Changes in pension plan assets and benefit obligations		(7	)		—		—			(7	)
Tax effect		(10	)		—		—			(10	)

	$	8,853		$	2,744	$	(2,744	)	$	8,853

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

Condensed Consolidating Statements of Cash Flows

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Thousands of dollars)

(Unaudited)


	For the three months ended March 31, 2014
	Parent Company Only (issuer)			Guarantor Subsidiaries ⁽¹⁾		Eliminations		Consolidated
Net cash provided by operating activities	$	5,047		$	1,075	$	—	$	6,122
Investing activities:
Purchase of property and equipment		(38,746	)		—		—		(38,746	)
Proceeds from asset dispositions		2,994			—		—		2,994
Purchase of short-term investments		(140,551	)		—		—		(140,551	)
Proceeds from sale of short-term investments		84,692			—		—		84,692
Refund of deposits on aircraft		3,926			—		—		3,926
Payments of deposits on aircraft		(6,499	)		—		—		(6,499	)

Net cash used in investing activities		(94,184	)		—		—		(94,184	)

Financing activities:
Proceeds from issuance of Senior Notes due 2019		500,000			—		—		500,000
Premium and costs to retire debt early		(26,132	)		—		—		(26,132	)
Repayment of Senior Notes due 2018		(292,571	)		—		—		(292,571	)
Debt issuance costs		(5,657	)		—		—		(5,657	)
Proceeds from line of credit		95,500			—		—		95,500
Payments on line of credit		(174,500	)		—		—		(174,500	)
Repurchase of common stock for payroll tax withholding requirements		(176	)		—		—		(176	)

Net cash provided by financing activities		96,464			—		—		96,464

Increase in cash		7,327			1,075		—		8,402
Cash, beginning of period		52			882		—		934

Cash, end of period	$	7,379		$	1,957	$	—	$	9,336

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Thousands of dollars)

(Unaudited)


	For the quarter ended March 31, 2013
	Parent Company Only (issuer)			Guarantor Subsidiaries ⁽¹⁾			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	31,082		$	(979	)	$	—	$	30,103
Investing activities:
Purchase of property and equipment		(24,936	)		—			—		(24,936	)
Proceeds from asset dispositions		200			—			—		200
Payments of deposits on aircraft		(419	)		—			—		(419	)
Proceeds from short-term investments, net		4,417			—			—		4,417

Net cash used in investing activities		(20,738	)		—			—		(20,738	)

Financing activities:
Repurchase of common stock		(1,037	)		—			—		(1,037	)
Proceeds from line of credit		2,400			—			—		2,400
Payments on line of credit		(10,000	)		—			—		(10,000	)

Net cash used in financing activities		(8,637	)		—			—		(8,637	)

Increase (decrease) in cash		1,707			(979	)		—		728
Cash, beginning of period		552			2,297			—		2,849

Cash, end of period	$	2,259		$	1,318		$	—	$	3,577

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