10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2015

or

¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                      to                     

Commission file number: 0-9827

PHI, Inc.

(Exact name of registrant as specified in its charter)

Louisiana	72-0395707
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
2001 SE Evangeline Thruway
Lafayette, Louisiana	70508
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (337) 235-2452

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes:  x    No:  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulations S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes:  x    No:  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer:	¨	Accelerated filer:	x
Non-accelerated filer:	¨  (Do not check if a smaller reporting company)	Smaller reporting company:	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes:  ¨    No:  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at May 1, 2015
Voting Common Stock	2,905,757 shares
Non-Voting Common Stock	12,674,653 shares

PHI, INC.

Index – Form 10-Q

Part I – Financial Information

Item 1.	Financial Statements – Unaudited
	Condensed Consolidated Balance Sheets – March 31, 2015 and December 31, 2014	3
	Condensed Consolidated Statements of Operations – Three Months ended March 31, 2015 and 2014	4
	Condensed Consolidated Statements of Comprehensive Income – Three Months ended March 31, 2015 and 2014	5
	Condensed Consolidated Statements of Shareholders’ Equity – Three Months ended March 31, 2015 and 2014	6
	Condensed Consolidated Statements of Cash Flows – Three Months ended March 31, 2015 and 2014	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	34
Item 4.	Controls and Procedures	34
	Part II – Other Information
Item 1.	Legal Proceedings	35
Item 1.A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 3.	Defaults Upon Senior Securities	35
Item 4.	Mine Safety Disclosures	35
Item 5.	Other Information	35
Item 6.	Exhibits	36
	Signatures	37

2

PART I – FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Thousands of dollars, except share data)

(Unaudited)

	March 31, 2015			December 31, 2014
ASSETS
Current Assets:
Cash	$	3,623		$	6,270
Short-term investments		189,480			185,244
Accounts receivable – net
Trade		157,857			178,833
Other		2,370			1,928
Inventories of spare parts – net		71,452			73,793
Prepaid expenses		11,075			9,314
Deferred income taxes		9,914			9,915
Income taxes receivable		1,226			1,227
Total current assets		446,997			466,524
Property and equipment – net		917,342			877,818
Restricted investments		15,485			15,485
Other assets		15,095			16,253
Total assets	$	1,394,919		$	1,376,080
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	56,214		$	27,700
Accrued and other current liabilities		30,085			52,812
Total current liabilities		86,299			80,512
Long-term debt		539,640			543,000
Deferred income taxes		146,865			140,532
Other long-term liabilities		15,064			14,968
Commitments and contingencies (Note 9)
Shareholders’ Equity:
Voting common stock – par value of $0.10; 12,500,000 shares authorized, 2,905,757 shares issued and outstanding		291			291
Non-voting common stock – par value of $0.10; 25,000,000 shares authorized, 12,674,653 and 12,576,916 issued and outstanding at March 31, 2015 and December 31, 2014, respectively		1,267			1,258
Additional paid-in capital		301,170			301,533
Treasury stock		(135	)		—
Accumulated other comprehensive loss		(102	)		(211	)
Retained earnings		304,560			294,197
Total shareholders’ equity		607,051			597,068
Total liabilities and shareholders’ equity	$	1,394,919		$	1,376,080

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

3

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Thousands of dollars and shares, except per share data)

(Unaudited)

	Quarter Ended
	March 31,
	2015			2014
Operating revenues, net	$	204,197		$	197,071
Expenses:
Direct expenses		169,207			158,653
Selling, general and administrative expenses		11,237			9,328
Total operating expenses		180,444			167,981
(Gain) loss on disposal of assets		(7	)		1,073
Equity in loss of unconsolidated affiliate		68			41
Operating income		23,692			27,976
Interest expense		7,170			7,364
Loss on debt extinguishment		—			29,216
Other income, net		(462	)		(91	)
		6,708			36,489
Earnings (loss) before income taxes		16,984			(8,513	)
Income tax expense (benefit)		6,621			(3,192	)
Net earnings (loss)	$	10,363		$	(5,321	)
Weighted average shares outstanding:
Basic		15,579			15,480
Diluted		15,662			15,480
Net earnings (loss) per share:
Basic	$	0.67		$	(0.34	)
Diluted	$	0.66		$	(0.34	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

4

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Thousands of dollars)

(Unaudited)

	Quarter Ended
	March 31,
	2015			2014
Net earnings (loss)	$	10,363		$	(5,321	)
Unrealized gain on short-term investments		139			14
Other unrealized gain		24			—
Changes in pension plan assets and benefit obligations		—			(1	)
Tax effect of preceding losses, gains or changes		(55	)		(5	)
Total comprehensive income (loss)	$	10,471		$	(5,313	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

5

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Thousands of dollars and shares)

(Unaudited)

													Accumulated						Total
	Voting				Non-Voting					Additional			Other Com-						Share-
	Common Stock				Common Stock					Paid-in			prehensive			Retained			Holders’
	Shares		Amount		Shares			Amount		Capital			Income (Loss)			Earnings			Equity
Balance at December 31, 2013		2,906	$	291		12,568		$	1,257	$	296,932		$	(24	)	$	261,509		$	559,965
Net loss		—		—		—			—		—			—			(5,321	)		(5,321	)
Unrealized gain on short-term investments		—		—		—			—		—			8			—			8
Amortization of unearned stock-based compensation		—		—		—			—		688			—			—			688
Issuance of non-voting common stock (upon vesting of restricted stock units)		—		—		11			1		—			—			—			1
Cancellation of restricted non-voting stock units for tax withholdings on vested shares		—		—		(4	)		—		(176	)		—			—			(176	)
Balance at March 31, 2014		2,906	$	291		12,575		$	1,258	$	297,444		$	(16	)	$	256,188		$	555,165

																	Accumulated					Total
	Voting				Non-Voting						Additional						Other Com-					Share-
	Common Stock				Common Stock						Paid-in			Treasury			prehensive			Retained		Holders’
	Shares		Amount		Shares			Amount			Capital			Stock			Income (Loss)			Earnings		Equity
Balance at December 31, 2014		2,906	$	291		12,576		$	1,258		$	301,533		$	—		$	(211	)	$	294,197	$	597,068
Net earnings		—		—		—			—			—			—			—			10,363		10,363
Unrealized gain on short-term investments		—		—		—			—			—			—			85			—		85
Amortization of unearned stock-based compensation		—		—		—			—			1,719			—			—			—		1,719
Issuance of non-voting common stock (upon vesting of restricted stock units)		—		—		164			16			—			—			—			—		16
Cancellation of restricted non-voting stock units for tax withholdings on vested shares		—		—		(66	)		(7	)		(2,082	)		—			—			—		(2,089	)
Purchase of treasury stock		—		—		—			—			—			(135	)		—			—		(135	)
Other		—		—		—			—			—			—			24			—		24
Balance at March 31, 2015		2,906	$	291		12,674		$	1,267		$	301,170		$	(135	)	$	(102	)	$	304,560	$	607,051

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

6

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Thousands of dollars)

(Unaudited)

	Three Months Ended
	March 31,
	2015			2014
Operating activities:
Net earnings (loss)	$	10,363		$	(5,321	)
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		18,151			11,363
Deferred income taxes		6,279			(4,559	)
(Gain) loss on asset dispositions		(7	)		1,073
Equity in loss of unconsolidated affiliate		68			41
Loss on debt extinguishment		—			29,216
Inventory valuation reserves		562			—
Changes in operating assets and liabilities		(5,498	)		(25,691	)
Net cash provided by operating activities		29,918			6,122
Investing activities:
Purchase of property and equipment		(22,115	)		(38,746	)
Proceeds from asset dispositions		—			2,994
Purchase of short-term investments		(190,243	)		(140,551	)
Proceeds from sale of short-term investments		185,426			84,692
Refund on deposits on aircraft		—			3,926
Payments of deposits on aircraft		(66	)		(6,499	)
Net cash used in investing activities		(26,998	)		(94,184	)
Financing activities:
Proceeds from issuance of Senior Notes due 2019		—			500,000
Repayment of Senior Notes due 2018		—			(292,571	)
Premium and costs to retire debt early		—			(26,132	)
Debt issuance costs		—			(5,657	)
Proceeds from line of credit		77,740			95,500
Payments on line of credit		(81,100	)		(174,500	)
Repurchase of common stock		(2,207	)		(176	)
Net cash (used in) provided by financing activities		(5,567	)		96,464
(Decrease) increase in cash		(2,647	)		8,402
Cash, beginning of period		6,270			934
Cash, end of period	$	3,623		$	9,336
Supplemental Disclosures Cash Flow Information
Cash paid during the period for:
Interest	$	13,453		$	11,280
Income taxes	$	3,061		$	13
Noncash investing activities:
Other current liabilities and accrued payables related to purchase of property and equipment	$	28,994		$	24,717

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

7

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements include the accounts of PHI, Inc. and its subsidiaries (“PHI” or the “Company” or “we” or “our”). In the opinion of management, these condensed consolidated financial statements reflect all adjustments, consisting of only normal, recurring adjustments, necessary to present fairly the financial results for the interim periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 and the accompanying notes.

The Company’s financial results, particularly as they relate to the Company’s Oil and Gas segment, are influenced by seasonal fluctuations as discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. For this and other reasons, the results of operations for interim periods are not necessarily indicative of the operating results that may be expected for a full fiscal year.

Accounting Policies—In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. The standard is effective for public entities for annual and interim periods beginning after December 15, 2016. However, the FASB has tentatively decided to defer the effective date of this new revenue standard to reporting periods beginning after December 31, 2017. The effects of this standard on our financial position, results of operations and cash flows are not yet known.

2. INVESTMENTS

We classify all of our short-term investments as available-for-sale. We carry these at fair value and report unrealized gains and losses, net of taxes, in Accumulated other comprehensive loss (income), which is a separate component of shareholders’ equity in our Condensed Consolidated Balance Sheets. These unrealized gains and losses are also reflected in our Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Statements of Shareholders’ Equity. Cost, gains, and losses are determined using the specific identification method.

Investments consisted of the following as of March 31, 2015:

			Unrealized		Unrealized			Fair
	Cost Basis		Gains		Losses			Value
	(Thousands of dollars)
Investments:
Money market mutual funds	$	18,055	$	—	$	—		$	18,055
U.S. Government agencies		8,007		6		(1	)		8,012
Municipal bonds and notes		1,500		1		—			1,501
Corporate bonds and notes		177,511		23		(137	)		177,397
Subtotal		205,073		30		(138	)		204,965
Deferred compensation plan assets included in other assets		2,475		—		—			2,475
Total	$	207,548	$	30	$	(138	)	$	207,440

8

Investments consisted of the following as of December 31, 2014:

			Unrealized		Unrealized			Fair
	Cost Basis		Gains		Losses			Value
	(Thousands of dollars)
Investments:
Money market mutual funds	$	68,612	$	—	$	—		$	68,612
Municipal bonds and notes		1,500		2		—			1,502
Corporate bonds and notes		130,864		19		(268	)		130,615
Subtotal		200,976		21		(268	)		200,729
Deferred compensation plan assets included in other assets		2,386		—		—			2,386
Total	$	203,362	$	21	$	(268	)	$	203,115

At March 31, 2015 and December 31, 2014, we classified $15.5 million of our aggregate investments as long-term investments and recorded them in our Condensed Consolidated Balance Sheets as Restricted investments, as they are securing outstanding letters of credit with maturities beyond one year.

The following table presents the cost and fair value of our debt investments based on maturities as of:

	March 31, 2015				December 31, 2014
	Amortized		Fair		Amortized		Fair
	Costs		Value		Costs		Value
	(Thousands of dollars)
Due in one year or less	$	95,682	$	95,667	$	70,180	$	70,169
Due within two years		91,336		91,243		62,184		61,948
Total	$	187,018	$	186,910	$	132,364	$	132,117

The following table presents the average coupon rate percentage and the average days to maturity of our debt investments as of:

	March 31, 2015				December 31, 2014
	Average		Average		Average		Average
	Coupon		Days To		Coupon		Days To
	Rate (%)		Maturity		Rate (%)		Maturity
U.S. Government agencies		0.528		44		0.000		0
Municipal bonds and notes		0.869		700		0.528		134
Corporate bonds and notes		1.814		350		1.828		348

9

The following table presents the fair value and unrealized losses related to our investments that have been in a continuous unrealized loss position for less than twelve months as of March 31,

	2015					2014
			Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses
	(Thousands of dollars)
U.S. Government agencies	$	1,999	$	(1	)	$	—	$	—
Corporate bonds and notes		130,231		(136	)		30,332		(30	)
Total	$	132,230	$	(137	)	$	30,332	$	(30	)

The following table presents the fair value and unrealized losses related to our investments that have been in a continuous unrealized loss position for more than twelve months as of March 31,

	2015					2014
			Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses
	(Thousands of dollars)
Corporate bonds and notes	$	1,503	$	(1	)	$	—	$	—
Total	$	1,503	$	(1	)	$	—	$	—

From time to time over the periods covered in our financial statements included herein, our investments have experienced net unrealized losses. We consider these declines in market value to be due to market conditions, and we do not plan to sell these investments prior to maturity. For these reasons, we do not consider any of our investments to be other than temporarily impaired at March 31, 2015 or December 31, 2014. We have also determined that we did not have any other-than-temporary impairments relating to credit losses on debt securities for the three months ended March 31, 2015. For additional information regarding our criteria for making these assessments, see Note 2 to the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014.

3. REVENUE RECOGNITION AND VALUATION ACCOUNTS

We have established an allowance for doubtful accounts based upon factors relating to the credit risk of specific customers, current market conditions, and other information. Our allowance for doubtful accounts was approximately $1.4 million at March 31, 2015 and December 31, 2014.

Revenues related to flights generated by our Air Medical segment are recorded net of contractual allowances under agreements with third party payors and estimated uncompensated care when the services are provided. The allowance for contractual discounts was $98.3 million and $96.6 million as of March 31, 2015 and December 31, 2014, respectively. The allowance for uncompensated care was $36.3 million and $41.9 million as of as March 31, 2015 and December 31, 2014, respectively.

Included in the allowance for uncompensated care listed above is the value of services to patients who are unable to pay when it is determined that they qualify for charity care. The value of these services was $2.7 million and $2.4 million for the quarters ended March 31, 2015 and 2014, respectively. The estimated cost of providing charity services was $0.6 million for the quarters ended March 31, 2015 and 2014. The estimated costs of providing charity services are based on a calculation that applies a ratio of costs to the charges for uncompensated charity care. The ratio of costs to charges is based on our Air Medical segment’s total expenses divided by gross patient service revenue.

10

The allowance for contractual discounts and estimated uncompensated care (expressed as a percentage of gross segment accounts receivable) was as follows:

	Revenue
	Quarter Ended March 31, 2015			Year Ended December 31, 2014
Allowance for Contractual Discounts		57	%		53	%
Allowance for Uncompensated Care		21	%		23	%

Our contract in the Middle East requires us to provide multiple services, including helicopter leasing, flight services for helicopter emergency medical service operations, aircraft maintenance, provision of spare parts, insurance coverage for the customer-owned aircraft, training services, and base construction. All services are delivered and earned monthly over a three-year contractual period which began on September 29, 2012. The customer may terminate the contract prior to the end of the contract term by giving ninety days advance notice and paying an early termination fee of $13.5 million. Each of the major services mentioned above qualify as separate units of accounting under the accounting guidance for such arrangements. The selling price for each specific service was determined based upon third-party evidence and estimates.

We have also established valuation reserves related to obsolete and slow-moving spare parts inventory. The inventory valuation reserves were $13.7 million and $13.5 million at March 31, 2015 and December 31, 2014, respectively.

11

4. FAIR VALUE MEASUREMENTS

Accounting standards require that assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs that are not corroborated by market data.

The following table summarizes the valuation of our investments and financial instruments by the above pricing levels as of the valuation dates listed:

			March 31, 2015
	Total		(Level 1)		(Level 2)
	(Thousands of dollars)
Investments:
Money market mutual funds	$	18,055	$	18,055	$	—
U.S. Government agencies		8,012		—		8,012
Municipal bonds and notes		1,501		—		1,501
Corporate bonds and notes		177,397		—		177,397
		204,965		18,055		186,910
Deferred compensation plan assets		2,475		2,475		—
Total	$	207,440	$	20,530	$	186,910

			December 31, 2014
	Total		(Level 1)		(Level 2)
	(Thousands of dollars)
Investments:
Money Market Mutual Funds	$	68,612	$	68,612	$	—
Municipal bonds and notes		1,502		—		1,502
Corporate bonds and notes		130,615		—		130,615
		200,729		68,612		132,117
Deferred compensation plan assets		2,386		2,386		—
Total	$	203,115	$	70,998	$	132,117

We hold our short-term investments in an investment fund consisting of high quality money market instruments of governmental and private issuers, which is classified as a short-term investment. Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets. These items are traded with sufficient frequency and volume to provide pricing on an ongoing basis. The fair values of the shares of these funds are based on observable market prices, and therefore, have been categorized in Level 1 in the fair value hierarchy. Level 2 inputs reflect quoted prices for identical assets or liabilities that are not actively traded. These items may not be traded daily; examples include corporate bonds and U.S. government agencies debt. There have been no reclassifications of assets between Level 1 and Level 2 investments during the periods covered by the financial statements included in this report. We hold no Level 3 investments. Investments included in other assets, which relate to our liability under the Officers’ Deferred Compensation Plan, consist mainly of multiple investment funds that are highly liquid and diversified.

Cash, accounts receivable, accounts payable and accrued liabilities, and our revolving credit facility debt all had fair values approximating their carrying amounts at March 31, 2015 and December 31, 2014. Our determination of the estimated fair value of our Senior Notes and our revolving credit facility debt is derived using Level 2 inputs, including quoted market indications of similar publicly-traded debt. The fair value of our Senior Notes, based on quoted market prices, was $464.7 million and $425.6 million at March 31, 2015 and December 31, 2014, respectively.

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5. LONG-TERM DEBT

The components of long-term debt as of the dates indicated below were as follows:

	March 31,		December 31,
	2015		2014
	(Thousands of dollars)
Senior Notes dated March 17, 2014, interest only payable semi-annually at 5.25%, maturing March 15, 2019	$	500,000	$	500,000
Revolving Credit Facility due October 1, 2016 with a group of commercial banks, interest payable at variable rates		39,640		43,000
Total long-term debt	$	539,640	$	543,000

Senior Notes - During the quarter ended March 31, 2014, we issued $500 million of 5.25% Senior Notes due March 2019. Proceeds were approximately $494 million, net of fees and expenses, and a portion of these proceeds were used to retire on March 17, 2014 $292.6 million of our $300 million previously outstanding 8.625% Senior Notes pursuant to a tender offer, at a total cost of $329.4 million including the tender premium and accrued interest. We redeemed the remaining $7.4 million of 8.625% Senior Notes on April 16, 2014, at a redemption price of 108.3% of the face amount plus accrued interest. As a result of our repurchase of 8.625% Senior Notes in March 2014, we recorded a pretax charge of $29.2 million in the quarter ended March 31, 2014, which consisted of a $26.1 million tender premium and $3.1 million of unamortized issuance costs. We recorded a pre-tax charge of $0.6 million in the second quarter of 2014 associated with our redemption on April 16, 2014 of the remaining 8.625% Senior Notes not previously tendered. Our repurchase of 8.625% Senior Notes in March 2014 and April 2014 resulted in deferred tax benefits of $11.6 million.

Our 5.25% Senior Notes (the “2019 Notes”) will mature on March 15, 2019, are unconditionally guaranteed on a senior basis by the each of PHI’s domestic subsidiaries, and are the general, unsecured obligations of PHI and the guarantors. Interest is payable semi-annually on March 15 and September 15 of each year, beginning September 15, 2014. PHI has the option to redeem some or all of the 2019 Notes at any time on or after March 15, 2016 at specified redemption prices. Prior to that time, PHI has the option to redeem some or all of the 2019 Notes pursuant to certain “make-whole” provisions or to redeem a portion of the 2019 Notes with the net proceeds of certain specified equity offerings. The indenture governing the 2019 Notes (the “2019 Indenture”) contains, among other things, certain restrictive covenants, including limitations on incurring indebtedness, creating liens, selling assets and entering into certain transactions with affiliates. The covenants also limit PHI’s ability to, among other things, pay cash dividends on common stock, repurchase or redeem common or preferred equity, prepay subordinated debt and make certain investments. Upon the occurrence of a “Change in Control Repurchase Event” (as defined in the 2019 Indenture), PHI will be required, unless it has previously elected to redeem the 2019 Notes as described above, to make an offer to purchase the 2019 Notes for a cash price equal to 101% of their principal amount.

Revolving Credit Facility – We have an amended and restated revolving credit facility that matures on October 1, 2016. Under this facility, we can borrow up to $150 million at floating interest rates based on either the London Interbank Offered Rate plus 225 basis points or the prime rate (each as defined in our amended and restated revolving credit facility), at our option. Our revolving credit facility includes usual and customary covenants and events of default for credit facilities of its type. Our ability to borrow under the credit facility is conditioned upon our continued compliance with such covenants, including, among others, (i) covenants that restrict our ability to engage in certain asset sales, mergers or other fundamental changes, to incur liens or to engage in certain other transactions or activities and (ii) financial covenants that stipulate that PHI will maintain a consolidated working capital ratio of at least 2 to 1, a funded debt to consolidated net worth ratio not greater than 1.5 to 1, a fixed charge coverage ratio of at least 1.1 to 1, and consolidated net worth of at least $450 million (with all such terms or amounts as defined in or determined under the amended and restated revolving credit facility).

Other—We maintain a separate letter of credit facility that had $15.5 million in letters of credit outstanding at March 31, 2015 and December 31, 2014.

13

Cash paid to fund interest expense was $13.5 million for the quarter ended March 31, 2015 and $11.3 million for the quarter ended March 31, 2014. Included in the 2014 interest expense was $10.7 million of accrued interest expense paid for the 8.625% Senior Notes that we purchased on March 17, 2014 and April 16, 2014 in the transactions described above.

6. EARNINGS PER SHARE

The components of basic and diluted earnings per share for the quarter ended March 31, are as follows:

	2015		2014
	(Thousands of shares)
Weighted average outstanding shares of common stock, basic		15,579		15,480
Dilutive effect of restricted stock units		83		—
Weighted average outstanding shares of common stock, diluted		15,662		15,480

Restricted stock units were excluded from the “Weighted average outstanding shares of common stock, diluted” for the three months ended March 31, 2014 because the net loss with respect to such shares for such quarter is anti-dilutive.

7. STOCK-BASED COMPENSATION

We recognize the cost of employee compensation received in the form of equity instruments based on the grant date fair value of those awards. The table below sets forth the total amount of stock-based compensation expense for the three months ended March 31, 2015 and 2014.

	Three Months Ended
	March 31,
	2015		2014
	(Thousands of dollars)
Stock-based compensation expense:
Time-based restricted stock units	$	637	$	127
Performance-based restricted stock units		1,082		561
Total stock-based compensation expense	$	1,719	$	688

During the quarter ended March 31, 2015, we awarded 18,930 time-based and 151,566 performance-based restricted stock units to managerial employees. During the quarter ended March 31, 2014, we awarded 20,364 time-based restricted stock units to managerial employees.

8. ASSET DISPOSALS AND IMPAIRMENTS

There were no sales or disposals of aircraft during the first quarter of 2015, but we did transact minor sales and disposals of various ancillary equipment.

During the first quarter of 2014, we sold two light aircraft previously utilized in our Air Medical segment and two fixed wing aircraft utilized in our Oil and Gas segment. Cash proceeds totaled $3.0 million, resulting in a loss on the sale of these assets of $1.1 million. These aircraft no longer met our strategic needs.

9. COMMITMENTS AND CONTINGENCIES

Commitments – In 2014, we exercised our option to purchase six additional new heavy helicopters for our Oil and Gas segment with deliveries scheduled in 2015 and 2016. One aircraft was delivered in the first quarter of 2015.

Total aircraft deposits of $7.4 million were included in Other Assets as of March 31, 2015. This amount represents deposits paid by us as required under aircraft purchase contracts.

On January 2, 2015, we purchased one heavy aircraft off lease pursuant to a purchase option in the lease contract for an aggregate purchase price of $17.7 million.

14

As of March 31, 2015, we had options to purchase various aircraft that we currently operate under lease agreements with the aircraft owners. These options will become exercisable at various dates in 2016 through 2019. The aggregate option purchase prices are $67.8 million in 2016, $55.7 million in 2017, $127.0 million in 2018, and $150.4 million in 2019. Subject to market conditions and available cash, we currently intend to exercise these options as they become exercisable.

Environmental Matters – We have recorded an aggregate estimated probable liability of $0.2 million as of March 31, 2015 for environmental response costs. We have conducted environmental surveys of our former Lafayette facility located at the Lafayette Regional Airport, which we vacated in 2001, and have determined that limited soil and groundwater contamination exists at two parcels of land at the former facility. We submitted an assessment report for both sites in 2003, updated it in 2006, and received approvals of our remediation plan from the Louisiana Department of Environmental Quality (“LDEQ”) and Louisiana Department of Natural Resources in 2010 and 2011, respectively. Since such time, we have installed groundwater monitoring wells at these sites and furnished periodic reports on contamination levels to the LDEQ. Pursuant to our agreement with the LDEQ, we are currently providing samples twice a year for both sites. Based upon our working relationship and agreements with the LDEQ and the results of our ongoing site monitoring, we believe, based on current circumstances, that our ultimate remediation costs for these sites will not be material to our consolidated financial position, results of operations, or cash flows.

Legal Matters – We are named as a defendant in various legal actions that have arisen in the ordinary course of business and have not been finally adjudicated. In the opinion of management, after considering available defenses and any insurance coverage or indemnification rights, the amount of the liability with respect to these actions will not have a material effect on the Company’s consolidated financial position, results of operations, or cash flows.

Operating Leases – We lease certain aircraft, facilities, and equipment used in our operations. The related lease agreements, which include both non-cancelable and month-to-month terms, generally provide for fixed monthly rentals, and certain real estate leases also include renewal options. We generally pay all insurance, taxes, and maintenance expenses associated with these leases. All aircraft leases contain purchase options exercisable by us at certain dates in the lease agreements.

At March 31, 2015, we had approximately $305.6 million in aggregate commitments under operating leases of which approximately $38.3 million is payable through December 31, 2015. The total lease commitments include $290.8 million for aircraft and $14.8 million for facility lease commitments.

10. SEGMENT INFORMATION

PHI is primarily a provider of helicopter transport services, including helicopter maintenance and repair services. We use a combination of factors to identify reportable segments as required by Accounting Standards Codification 280, “Segment Reporting.” The overriding determination of our segments is based on how the chief operating decision-maker, our Chairman of the Board and Chief Executive Officer, evaluates our results of operations. The underlying factors include customer bases, types of service, operational management, physical locations, and underlying economic characteristics of the types of work we perform.

A segment’s operating profit is its operating revenues less its direct expenses and selling, general and administrative expenses. Each segment has a portion of our total selling, general and administrative expenses that is charged directly to the segment and a small portion that is allocated to that segment. Allocated selling, general and administrative expenses are based primarily on total segment direct expenses as a percentage of total direct expenses. Unallocated overhead consists primarily of corporate selling, general and administrative expenses that we do not allocate to the reportable segments.

Oil and Gas Segment. Our Oil and Gas segment, headquartered in Lafayette, Louisiana, provides helicopter services primarily for the major integrated and independent oil and gas production companies transporting personnel and/or equipment to offshore platforms in the Gulf of Mexico. Our customers include Shell Oil Company, BP America Production Company, ExxonMobil Production Co., and ConocoPhillips Company, with whom we have worked for 30 or more years, and ENI Petroleum, with whom we have worked for more than 15 years. At March 31, 2015, we operated 168 aircraft in this segment.

15

Operating revenue from our Oil and Gas segment is derived mainly from contracts that include a fixed monthly rate for a particular model of aircraft, plus a variable rate for flight time. A small portion of our Oil and Gas segment revenue is derived from providing services on an “ad hoc” basis. Operating costs for our Oil and Gas segment are primarily aircraft operations costs, including costs for pilots and maintenance personnel. Total fuel cost is included in direct expense and any reimbursement of a portion of these costs above a contracted per-gallon amount is included in revenue. For the quarters ended March 31, 2015 and 2014, approximately 59% and 64% of our total operating revenues were generated by our Oil and Gas operations, respectively.

Air Medical Segment. Our Air Medical operations are headquartered in Phoenix, Arizona, where we maintain significant separate facilities and administrative staff dedicated to this segment. Those costs are charged directly to our Air Medical segment.

As of March 31, 2015, 100 aircraft were assigned to our Air Medical segment. At such date, we operated approximately 91 aircraft domestically, providing air medical transportation services for hospitals and emergency service agencies in 18 states at 70 separate locations. We also provide air medical transportation services for a customer overseas. For this program, we have deployed nine aircraft at five locations, with eight aircraft generating revenues as of March 31, 2015. Our Air Medical segment operates primarily under the independent provider model and, to a lesser extent, under the traditional provider model. Under the independent provider model, we have no contracts and no fixed revenue stream and compete for transport referrals on a daily basis with other independent operators in the area. Under the traditional provider model, we contract directly with the customer to provide their transportation services, with the contracts typically awarded through competitive bidding. For the quarters ended March 31, 2015 and 2014, approximately 35% and 34% of our total operating revenues were generated by our Air Medical operations, respectively.

As an independent provider, we bill for our services on the basis of a flat rate plus a variable charge per patient-loaded mile, regardless of aircraft model, and are typically compensated by private insurance, Medicaid, or Medicare or directly by the transported patient. As further described in Note 3, revenues are recorded net of contractual allowances under agreements with third party payors and estimated uncompensated care at the time the services are provided. Contractual allowances and uncompensated care are estimated based on historical collection experience by payor category (consisting mainly of insurance, Medicaid, Medicare, and self-pay). Estimates regarding the payor mix and changes in reimbursement rates are the factors most subject to sensitivity and variability in calculating our allowances. We compute a historical payment analysis of accounts fully closed, by category.

Provisions for contractual discounts and estimated uncompensated care for Air Medical operations as a percentage of gross segment billings for the following periods were as follows:

	Revenue
	Quarter Ended
	March 31,
	2015			2014
Gross Air Medical segment billings		100	%		100	%
Provision for contractual discounts		74	%		69	%
Provision for uncompensated care		0	%		3	%

These percentages are affected by rate increases and changes in the number of transports by payor mix.

Net reimbursement per transport from commercial payors generally increases when a rate increase is implemented. Net reimbursement from certain commercial payors, as well as Medicare and Medicaid, does not increase proportionately with rate increases.

16

Net revenue attributable to Insurance, Medicare, Medicaid, and Self-Pay as a percentage of net Air Medical revenues are as follows:

	Quarter Ended
	March 31,
	2015			2014
Insurance		75	%		70	%
Medicare		17	%		20	%
Medicaid		8	%		8	%
Self-Pay		0	%		2	%

We also have a limited number of contracts with hospitals under which we receive a fixed monthly rate for aircraft availability and an hourly rate for flight time. Those contracts generated approximately 42% of the segment’s revenues for the quarters ended March 31, 2015 and 2014.

Technical Services Segment. Our Technical Services operations provide maintenance and repairs for our existing customers that own their aircraft. These services are generally labor intensive with higher operating margins as compared to other segments. Depending on when we commence and complete special projects for customers, our results for this segment can vary significantly from period to period, although these variances typically have a limited impact on our consolidated operating results. The Technical Services segment also conducts flight operations for the National Science Foundation in Antarctica, which are typically conducted in the first and fourth quarters each year.

For the three months ended March 31, 2015 and 2014, approximately 6% and 2%, respectively, of our total operating revenues were generated by our Technical Services operations.

17

Summarized financial information concerning our reportable operating segments for the quarters ended March 31, 2015 and 2014 is as follows:

	Quarter Ended March 31,
	2015			2014
	(Thousands of dollars)
Segment operating revenues
Oil and Gas	$	120,396		$	125,975
Air Medical		72,385			67,952
Technical Services		11,416			3,144
Total operating revenues		204,197			197,071
Segment direct expenses (1)
Oil and Gas (2)		100,331			97,374
Air Medical		60,039			59,379
Technical Services		8,905			1,941
Total segment direct expenses		169,275			158,694
Segment selling, general and administrative expenses
Oil and Gas		1,159			1,034
Air Medical		2,629			2,153
Technical Services		114			2
Total selling, general and administrative expenses		3,902			3,189
Total direct and selling, general and administrative expenses		173,177			161,883
Net segment profit
Oil and Gas		18,906			27,567
Air Medical		9,717			6,420
Technical Services		2,397			1,201
Total net segment profit		31,020			35,188
Other, net (3)		469			(982	)
Unallocated selling, general and administrative costs (1)		(7,335	)		(6,139	)
Interest expense		(7,170	)		(7,364	)
Loss on debt extinguishment		—			(29,216	)
Earnings (loss) before income taxes	$	16,984		$	(8,513	)

(1) Included in segment direct expenses and unallocated selling, general, and administrative costs are the depreciation and amortization expense amounts below:

	Depreciation and Amortization Expense
	Quarter Ended March 31,
	2015		2014
Segment Direct Expense:
Oil and Gas	$	11,280	$	6,853
Air Medical		4,097		3,076
Technical Services		128		87
Total	$	15,505	$	10,016
Unallocated SG&A	$	2,646	$	1,347

(2) Includes Equity in loss of unconsolidated affiliate.

(3) Consists of gains on disposition of property and equipment, and other income.

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11. INVESTMENT IN VARIABLE INTEREST ENTITY

We account for our investment in our West African operations as a variable interest entity, which is defined as an entity that either (a) has insufficient equity to permit the entity to finance its operations without additional subordinated financial support or (b) has equity investors who lack the characteristics of a controlling financial interest. As of March 31, 2015, we had a 49% investment in the common stock of PHI Century Limited (“PHIC”), a Ghanaian entity. We acquired our 49% interest on May 26, 2011, PHIC’s date of incorporation. The purpose of PHIC is to provide oil and gas flight services in Ghana and the West African region. For the quarter ended March 31, 2015 and 2014, we recorded a loss in equity of unconsolidated affiliate less than $0.1 million, relative to our 49% equity ownership, respectively. In addition, we had $2.8 million of trade receivables and $1.0 million of accrued liabilities as of March 31, 2015 from PHIC. We had $2.8 million of trade receivables and a $0.9 million of accrued liabilities as of December 31, 2014. The trade receivables are included in Accounts receivable—trade on our Condensed Consolidated Balance Sheets. The accrued liabilities are included in Accrued and other current liabilities on our Condensed Consolidated Balance Sheets. Our investment in the common stock of PHIC is included in Other assets on our Condensed Consolidated Balance Sheets and was $-0- million at March 31, 2015 and December 31, 2014.

12. OTHER COMPREHENSIVE INCOME

Amounts reclassified from Accumulated other comprehensive income are not material and, therefore, not presented separately in the Condensed Consolidated Statements of Comprehensive Income.

13. CONDENSED CONSOLIDATING FINANCIAL INFORMATION

As discussed further in Note 5, on March 17, 2014, PHI, Inc. issued $500 million of 5.25% Senior Notes due 2019 that 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 on the following pages sets forth, on a consolidated basis, the balance sheet, statement of operations, statement of comprehensive income, 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 the financial information presented below.

19

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(Thousands of dollars)

(Unaudited)

	March 31, 2015
	Parent Company Only (issuer)			Guarantor Subsidiaries (1)		Eliminations			Consolidated
ASSETS
Current Assets:
Cash	$	51		$	3,572	$	—		$	3,623
Short-term investments		189,480			—		—			189,480
Accounts receivable—net		100,167			60,060		—			160,227
Intercompany receivable		—			95,103		(95,103	)		—
Inventories of spare parts—net		62,954			8,498		—			71,452
Prepaid expenses		8,475			2,600		—			11,075
Deferred income taxes		9,914			—		—			9,914
Income taxes receivable		1,067			159		—			1,226
Total current assets		372,108			169,992		(95,103	)		446,997
Investment in subsidiaries		336,676			—		(336,676	)		—
Property and equipment—net		680,419			236,923		—			917,342
Restricted investments		15,485			—		—			15,485
Other assets		14,891			204		—			15,095
Total assets	$	1,419,579		$	407,119	$	(431,779	)	$	1,394,919
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	51,344		$	4,870	$	—		$	56,214
Accrued and other current liabilities		21,233			8,852		—			30,085
Intercompany payable		95,103			—		(95,103	)		—
Total current liabilities		167,680			13,722		(95,103	)		86,299
Long-term debt		539,640			—		—			539,640
Deferred income taxes and other long-term liabilities		105,208			56,721		—			161,929
Shareholders’ Equity:
Common stock and paid-in capital		302,593			109,982		(109,982	)		302,593
Accumulated other comprehensive loss		(102	)		—		—			(102	)
Retained earnings		304,560			226,694		(226,694	)		304,560
Total shareholders’ equity		607,051			336,676		(336,676	)		607,051
Total liabilities and shareholders’ equity	$	1,419,579		$	407,119	$	(431,779	)	$	1,394,919

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

20

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(Thousands of dollars)

	December 31, 2014
	Parent Company Only (issuer)			Guarantor Subsidiaries (1)		Eliminations			Consolidated
ASSETS
Current Assets:
Cash	$	51		$	6,219	$	—		$	6,270
Short-term investments		185,244			—		—			185,244
Accounts receivable—net		98,001			82,760		—			180,761
Intercompany receivable		—			95,399		(95,399	)		—
Inventories of spare parts—net		65,341			8,452		—			73,793
Prepaid expenses		7,610			1,704		—			9,314
Deferred income taxes		9,915			—		—			9,915
Income taxes receivable		1,068			159		—			1,227
Total current assets		367,230			194,693		(95,399	)		466,524
Investment in subsidiaries and others		358,080			—		(358,080	)		—
Property and equipment, net		638,437			239,381		—			877,818
Restricted investments		15,485			—		—			15,485
Other assets		16,055			198		—			16,253
Total assets	$	1,395,287		$	434,272	$	(453,479	)	$	1,376,080
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	22,578		$	5,122	$	—		$	27,700
Accrued and other current liabilities		34,477			18,335		—			52,812
Intercompany payable		95,270			—		(95,270	)		—
Total current liabilities		152,325			23,457		(95,270	)		80,512
Long-term debt		543,000			—		—			543,000
Deferred income taxes and other long-term liabilities		102,894			52,606		—			155,500
Shareholders’ Equity:
Common stock and paid-in capital		303,082			137,647		(137,647	)		303,082
Accumulated other comprehensive loss		(211	)		—		—			(211	)
Retained earnings		294,197			220,562		(220,562	)		294,197
Total shareholders’ equity		597,068			358,209		(358,209	)		597,068
Total liabilities and shareholders’ equity	$	1,395,287		$	434,272	$	(453,479	)	$	1,376,080

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

21

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Thousands of dollars)

(Unaudited)

	For the quarter ended March 31, 2015
	Parent Company Only (issuer)			Guarantor Subsidiaries (1)			Eliminations			Consolidated
Operating revenues, net	$	128,658		$	75,539		$	—		$	204,197
Expenses:
Direct expenses		106,481			62,730			(4	)		169,207
Selling, general and administrative expenses		8,508			2,729			—			11,237
Total operating expenses		114,989			65,459			(4	)		180,444
Gain on disposal of assets, net		(7	)		—			—			(7	)
Equity in loss of unconsolidated affiliate		68			—			—			68
Operating income		13,608			10,080			4			23,692
Equity in net income of consolidated subsidiaries		(6,131	)		—			6,131			—
Interest expense		7,170			—			—			7,170
Other income, net		(462	)		(4	)		4			(462	)
		577			(4	)		6,135			6,708
Earnings before income taxes		13,031			10,084			(6,131	)		16,984
Income tax expense		2,668			3,953			—			6,621
Net earnings	$	10,363		$	6,131		$	(6,131	)	$	10,363
	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	)

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

22

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Thousands of dollars)

(Unaudited)

	For the quarter ended March 31, 2015
	Parent Company Only (issuer)			Guarantor Subsidiaries (1)		Eliminations			Consolidated
Net earnings	$	10,363		$	6,131	$	(6,131	)	$	10,363
Unrealized gain on short-term investments		139			—		—			139
Other unrealized gain		24			—		—			24
Tax effect of preceding gains, losses or changes		(55	)		—		—			(55	)
	$	10,471		$	6,131	$	(6,131	)	$	10,471
	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 of preceding gains, losses or changes		(5	)		—		—			(5	)
	$	(5,313	)	$	2,735	$	(2,735	)	$	(5,313	)

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

23

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(Thousands of dollars)

(Unaudited)

	For the three months ended March 31, 2015
	Parent Company Only (issuer)			Guarantor Subsidiaries (1)			Eliminations		Consolidated
Net cash provided by operating activities	$	4,637		$	25,281		$	—	$	29,918
Investing activities:
Purchase of property and equipment		(22,115	)		—			—		(22,115	)
Purchase of short-term investments		(190,243	)		—			—		(190,243	)
Proceeds from sale of short-term investments		185,426			—			—		185,426
Payments of deposits on aircraft		(66	)		—			—		(66	)
Net cash used in investing activities		(26,998	)		—			—		(26,998	)
Financing activities:
Proceeds from line of credit		77,740			—			—		77,740
Payments on line of credit		(81,100	)		—			—		(81,100	)
Repurchase of common stock		(2,207	)							(2,207	)
Due to/from affiliate, net		27,928			(27,928	)		—		—
Net cash provided by (used in) financing activities		22,361			(27,928	)		—		(5,567	)
Decrease in cash		—			(2,647	)		—		(2,647	)
Cash, beginning of period		51			6,219			—		6,270
Cash, end of period	$	51		$	3,572		$	—	$	3,623

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

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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)(2)			Eliminations		Consolidated
Net cash provided by operating activities	$	(4,368	)	$	10,490		$	—	$	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	)
Due to/from affiliate		9,415			(9,415	)		—		—
Net cash provided by financing activities		105,879			(9,415	)		—		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

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

(2) Cash flows between the Parent Company and Guarantor Subsidiaries related to the Company’s centralized cash management activities in 2014 have been adjusted to show the effects on net cash provided by operating and financing activities.

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This discussion and analysis should be read in conjunction with (i) the accompanying unaudited condensed consolidated financial statements and the notes thereto (the “Notes”) and (ii) our Annual Report on Form 10-K for the year ended December 31, 2014, including the audited consolidated financial statements and notes thereto, management’s discussion and analysis, and the risk factor disclosures contained therein.

Forward-Looking Statements

All statements other than statements of historical fact contained in this Form 10-Q and other periodic reports filed by PHI, Inc. (“PHI” or the “Company” or “we” or “our”) under the Securities Exchange Act of 1934, and other written or oral statements made by it or on its behalf, are forward-looking statements. When used herein, the words “anticipates,” “expects,” “believes,” “goals,” “intends,” “plans,” “projects” and similar words and expressions are intended to identify forward-looking statements. Forward-looking statements are based on a number of judgments and assumptions about future developments and events, many of which are beyond our control. These forward-looking statements, and the assumptions on which they are based, are inherently speculative and are subject to significant risks, uncertainties, and other factors that may cause the Company’s actual results to differ materially from the expectations, beliefs, and estimates expressed or implied in such forward-looking statements. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, no assurance can be given that such assumptions will prove correct or even approximately correct. Factors that could cause the Company’s results to differ materially from the expectations expressed or implied in such forward-looking statements include but are not limited to the following: any reduction in demand for our services due to volatility of oil and gas prices and the level of exploration and production activity in the Gulf of Mexico generally, which depends on several factors outside of our control; our dependence on a small number of customers for a significant amount of our revenue and our significant credit exposure within the oil and gas industry; any failure to maintain our strong safety record; our ability to secure favorable customer contracts or otherwise remain able to profitably deploy our existing fleet of aircraft; our ability to receive timely delivery of ordered aircraft from our suppliers, and the availability of capital or lease financing to acquire such aircraft; the availability of adequate insurance; weather conditions and seasonal factors, including reduced daylight hours, tropical storms and hurricanes; unexpected variances in flight hours; the adverse impact of customers terminating or reducing our services; the impact of current or future governmental regulations on us or our customers, including but not limited to the impact of new and pending healthcare legislation and regulations and regulations issued or actions taken by the Federal Aviation Administration; the special risks of our air medical operations, including collections risks and potential medical malpractice claims; political, economic payment, regulatory and other risks and uncertainties associated with our international operations; our substantial indebtedness and operating lease commitments; operating hazards; our ability to develop and implement successful business strategies; changes in fuel prices; the risk of work stoppages and other labor problems; changes in our future cash requirements; environmental and litigation risks; and general economic conditions and adverse market events. For a more detailed description of risks, see the “Risk Factors” section in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2014, as updated by our subsequently filed quarterly reports on Form 10-Q (“SEC Filings”). Investors are cautioned that many of the assumptions on which our forward-looking statements are based are likely to change after such statements are made, including, for example, the market prices of oil and gas, which we cannot control or anticipate. Further, we may make changes to our business strategies and plans (including our capital spending plans) at any time and without notice, based on any changes in the above-listed factors, our assumptions or otherwise, any of which could or will affect our results. For all these reasons, actual events and results may differ materially from those anticipated, estimated, projected, or implied by us in our forward-looking statements. All of our above-described forward-looking statements are expressly qualified in their entirety by the cautionary statements in this paragraph and the Risk Factors disclosures in our SEC Filings. PHI undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

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Overview

As described further in Note 10, we are primarily a provider of helicopter services and derive most of our revenue from providing helicopter transport services to the oil and gas industry and medical industry. Our consolidated results of operations are principally driven by the following factors:

• The level of offshore oil and gas exploration and production activities in the areas in which we operate, primarily in the Gulf of Mexico. Operating revenues from our Oil and Gas segment relate substantially to operations in the Gulf of Mexico. Many of the helicopters we have purchased recently are larger aircraft intended to service deepwater activities and the margins we earn on these aircraft are generally higher than on smaller aircraft. When the level of offshore activity increases, demand for our offshore flight services typically increases, directly affecting our revenue and profitability. Also, when deepwater offshore activity increases, the demand for our medium and heavy aircraft usually increases, creating a positive impact on revenue and earnings. Conversely, a reduction in offshore oil and gas activities generally, or deepwater offshore activity particularly, could negatively impact our aircraft utilization, flight volumes, and overall demand for our aircraft, thereby creating a negative impact on our revenue and earnings.

• Flight volume and patient transports in our Air Medical segment. Our traditional provider programs are typically billed at a fixed monthly contractual rate plus a variable rate for flight hours. The volume of flight utilization of our aircraft by our customers under these programs has a direct impact on the amount of revenue earned in a period. Traditional provider contracts generated approximately 42%, 42%, 39% and 22% of the segment’s revenues for the three months ended March 31, 2015, and the years ended December 31, 2014, 2013 and 2012, respectively, with the increase in this percentage being attributable to our implementation of new projects. In our independent provider programs, our revenue is directly dependent upon the number of patient transports provided in a given period.

• Payor mix and reimbursement rates in our Air Medical segment. Under our independent provider programs, our revenue recognition, net of allowances, during any particular period is dependent upon the rate at which our various types of customers reimburse us for our Air Medical services, which we refer to as our “payor mix”. Reimbursement rates vary among payor types and typically the reimbursement rate of commercial insurers is higher than Medicare, Medicaid, and self-pay reimbursement rates. Moreover, Medicare and Medicaid reimbursement rates have decreased in recent years. Therefore, changes during any particular period in our payor mix, reimbursement rates, or uncompensated care rates will have a direct impact on our revenues.

• Direct expenses. Our business is capital-intensive and highly competitive. Salaries and aircraft maintenance comprise a large portion of our operating expenses. Our aircraft must be maintained to a high standard of quality and undergo periodic and routine maintenance procedures. Higher utilization of our aircraft will result in more frequent maintenance, resulting in higher maintenance costs. In periods of low flight activity, we continue to maintain our aircraft, consequently reducing our margins. In addition, we are also dependent upon pilots, mechanics, and medical crew to operate our business. As demand for these skills increases worldwide, we must maintain competitive wages, and we may not be able to recover all of these costs increases through rate increases.

Since mid-2014, prevailing oil prices have been substantially lower than prices for several years prior thereto. Consequently, several of our oil and gas customers have curtailed their exploration or production levels, lowered their capital expenditures, reduced their staffs or requested arrangements with vendors designed to reduce their operating costs, including flight sharing arrangements. As explained further below, these changes began to negatively impact our oil and gas operations during the first quarter of 2015. Based on communications with our oil and gas customers, we expect the current downturn in the oil and gas industry will result in lower demand for our oil and gas flight services and lower utilization of all types of our aircraft during the second quarter of 2015 as compared to the first quarter of 2015. The ultimate impact of the current industry downturn on our oil and gas operations will depend upon its length and several other factors, many of which remain outside of our control.

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Results of Operations

The following tables present operating revenue, expenses, and earnings, along with certain non-financial operational statistics, for the quarter ended March 31, 2015 and 2014.

	Quarter Ended						Favorable
	March 31,						(Unfavorable)
	2015			2014
	(Thousands of dollars, except flight hours, patient transports, and aircraft)
Segment operating revenues
Oil and Gas	$	120,396		$	125,975		$	(5,579	)
Air Medical		72,385			67,952			4,433
Technical Services		11,416			3,144			8,272
Total operating revenues		204,197			197,071			7,126
Segment direct expenses
Oil and Gas (1)		100,331			97,374			(2,957	)
Air Medical		60,039			59,379			(660	)
Technical Services		8,905			1,941			(6,964	)
Total segment direct expenses		169,275			158,694			(10,581	)
Segment selling, general and administrative expenses
Oil and Gas		1,159			1,034			(125	)
Air Medical		2,629			2,153			(476	)
Technical Services		114			2			(112	)
Total segment selling, general and administrative expenses		3,902			3,189			(713	)
Total segment expenses		173,177			161,883			(11,294	)
Net segment profit
Oil and Gas		18,906			27,567			(8,661	)
Air Medical		9,717			6,420			3,297
Technical Services		2,397			1,201			1,196
Total net segment profit		31,020			35,188			(4,168	)
Other, net (2)		469			(982	)		1,451
Unallocated selling, general and administrative costs		(7,335	)		(6,139	)		(1,196	)
Interest expense		(7,170	)		(7,364	)		194
Loss on debt extinguishment		—			(29,216	)		29,216
Earnings (loss) before income taxes		16,984			(8,513	)		25,497
Income tax (benefit) expense		6,621			(3,192	)		(9,813	)
Net earnings (loss)	$	10,363		$	(5,321	)	$	15,684
Flight hours:
Oil and Gas		25,136			25,388			(252	)
Air Medical (3)		7,836			8,150			(314	)
Technical Services		477			442			35
Total		33,449			33,980			(531	)
Air Medical Transports (4)		3,945			4,105			(160	)
Aircraft operated at period end:
Oil and Gas (5)		168			168
Air Medical (6)		100			101
Technical Services		6			6
Total (5) (6)		274			275

(1) Includes Equity in loss of unconsolidated affiliate.

(2) Consists of gains on disposition of property and equipment, and other income.

(3) Flight hours include 2,466 flight hours associated with traditional provider contracts, compared to 2,328 flight hours in the prior year quarter.

(4) Represents individual patient transports for the period.

(5) Includes eight aircraft as of March 31, 2015 and March 31, 2014 that were owned or leased by customers but operated by us.

(6) Includes 13 aircraft as of March 31, 2015 and March 31, 2014 that were owned or leased by customers but operated by us.

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Quarter Ended March 31, 2015 compared with Quarter Ended March 31, 2014

Combined Operations

Operating Revenues—Operating revenues for the three months ended March 31, 2015 were $204.2 million, compared to $197.1 million for the three months ended March 31, 2014, an increase of $7.1 million. Oil and Gas segment operating revenues decreased $5.6 million for the quarter ended March 31, 2015, related primarily to decreased light and medium aircraft flight revenues resulting predominately from less aircraft on contract and decreased flight hours for our medium aircraft. Operating revenues in our Air Medical segment increased $4.4 million due principally to increased revenues attributable to an expansion of our traditional provider operations, as well as increased revenues from our independent provider programs driven by rate increases over the past year and an improvement in our payor mix.

Total flight hours for the quarter ended March 31, 2015 were 33,449 compared to 33,980 for the quarter ended March 31, 2014. Oil and Gas segment flight hours decreased 252 hours, due principally to decreases in medium aircraft flight hours, partially offset by an increase in heavy aircraft flight hours. Air Medical segment flight hours decreased 314 hours from the quarter ended March 31, 2014, due to decreased flight hours in our independent provider programs. Individual patient transports in the Air Medical segment were 3,945 for the quarter ended March 31, 2015, compared to transports of 4,105 for the quarter ended March 31, 2014.

Direct Expenses – Direct operating expense was $169.2 million for the three months ended March 31, 2015, compared to $158.7 million for the three months ended March 31, 2014, an increase of $10.5 million, or 7%. We experienced increases in costs of goods sold of $5.6 million (representing 6% of quarterly total direct expense), primarily due to additional third party work in our Technical Services segment. Employee compensation expense increased $1.2 million due to a headcount increase of approximately 1% compared to the prior year, coupled with compensation rate increases. Employee compensation expense represented approximately 46% and 48% of total direct expense for the quarters ended March 31, 2015 and 2014, respectively. In addition, we experienced increases of $2.7 million in aircraft warranty expense (representing 7% of quarterly total direct expense), increases of $1.2 million in aircraft depreciation (representing 5% of quarterly total direct expense), and increases of $2.2 million in component repair costs due to additional aircraft added to the fleet (representing 5% of quarterly direct expense). Aircraft insurance decreased $1.2 million due to a favorable loss experience and a softening market. Other direct costs decreased $1.2 million.

Selling, General, and Administrative Expenses – Selling, general and administrative expenses were $11.2 million for the three months ended March 31, 2015, compared to $9.3 million for the three months ended March 31, 2014. The $1.9 million increase was primarily attributable to increased employee compensation expense due to additional personnel, compensation increases and non-cash equity compensation.

Gain (Loss) on Disposal of Assets, net – Gain on asset dispositions was less than $0.1 million for the three months ended March 31, 2015, compared to a loss of $1.1 million for the three months ended March 31, 2014. This increase was primarily due to the first quarter 2014 loss on the sale of two light and two fixed wing aircraft that no longer met our strategic needs. See Note 8.

Equity in Loss of Unconsolidated Affiliate – Equity in the loss of our unconsolidated affiliate attributable to our mid-2011 investment in a Ghanaian entity was less than $0.1 million for the three months ended March 31, 2015 and 2014. See Note 11.

Interest Expense – Interest expense was $7.2 million for the three months ended March 31, 2015 and $7.4 million for the three months ended March 31, 2014. The decrease of $0.2 million is attributable to lower interest rates.

Loss on Debt Extinguishment – In the first quarter of 2014, we recorded a pre-tax charge of $29.2 million due to the early retirement of substantially all of our previously outstanding 8.625% Senior Notes pursuant to a tender offer that settled on March 17, 2014. This charge consisted of a $26.1 million tender premium and $3.1 million of unamortized issuance costs. For more information, see Note 5.

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Other income, net – Other income was $0.5 million for the three months ended March 31, 2015 compared to $0.1 million for the same period in 2014, and represents primarily interest income. The $0.4 million increase is primarily attributable to an increase in the amount of our short-term investments.

Income Taxes – Income tax expense for the three months ended March 31, 2015 was $6.6 million compared to income tax benefit of $3.2 million for the three months ended March 31, 2014. Our effective tax rate was 39% and 37.5% for the three months ended March 31, 2015 and March 31, 2014, respectively. The increase in income tax expense in the first quarter of 2015 is attributable to our generation of positive earnings before tax, in contrast to the loss before tax incurred in the first quarter of 2014 due to the substantial extinguishment charges related to the redemption of our 8.625% Senior Notes during that quarter.

Net Earnings (Loss) – Net earnings for the three months ended March 31, 2015 was $10.4 million compared to a net loss of $5.3 million for the three months ended March 31, 2014. Earnings before income taxes for the three months ended March 31, 2015 was $17.0 million compared to a loss before income tax of $8.5 million for the same period in 2014. Earnings per diluted share were $0.66 for the current quarter compared to a loss per diluted share of $0.34 for the prior year quarter. The increase in earnings before taxes for the quarter ended March 31, 2015 is principally attributable to the pre-tax charge of $29.2 million related to the early retirement of our 8.625% Senior Notes in 2014, and increased profits in our Air Medical and Technical Services segments, partially offset by decreased profits in our Oil & Gas segment. We had 15.6 million and 15.5 million weighted average diluted common shares outstanding during the three months ended March 31, 2015 and 2014, respectively.

Segment Discussion

Oil and Gas – Oil and Gas segment revenues were $120.4 million for the three months ended March 31, 2015, compared to $126.0 million for the three months ended March 31, 2014, a decrease of $5.6 million. Our Oil and Gas segment revenues are primarily driven by contracted aircraft and flight hours. Costs are primarily fixed based on the number of aircraft operated, with a variable portion that is driven by flight hours.

Oil and Gas segment flight hours were 25,136 for the current quarter compared to 25,388 for the same quarter in the prior year, a decrease of 252 flight hours. The decline in flight hours is attributable to lower flight hours for our medium aircraft, partially offset by increased flight hours for our light and heavy aircraft. The decrease in revenue is primarily due to decreased light and medium aircraft flight revenues, primarily attributable to (i) less light and medium aircraft on contract and (ii) decreased flight hours for our medium aircraft. An increase in heavy aircraft revenues partially offset the decrease in light and medium aircraft revenues.

The number of aircraft deployed in the segment was 168 at March 31, 2015 and March 31, 2014. We added nine new aircraft to our Oil and Gas segment since March 31, 2014, consisting of six heavy and three fixed wing aircraft. We have sold or disposed of nine light and one fixed wing aircraft in the Oil and Gas segment since March 31, 2014. Changes in customer-owned aircraft and transfers between segments account for the remainder.

Direct expense in our Oil and Gas segment was $100.3 million for the three months ended March 31, 2015, compared to $97.4 million for the three months ended March 31, 2014, an increase of $2.9 million. Employee compensation expenses increased $1.7 million due to increases in personnel and compensation rate increases. There were also increases in aircraft warranty costs of $1.8 million and aircraft depreciation of $1.2 million. These increases were partially offset by decreases in aircraft insurance of $0.7 million due to a favorable loss experience and decreases in aircraft parts expense of $0.7 million. Other items decreased, net $0.4 million.

Selling, general, and, administrative segment expenses were $1.2 million for the three months ended March 31, 2015 and $1.0 million for the three months ended March 31, 2014. The $0.2 million increase is primarily attributable to increased employee compensation expense, due to additional personnel and compensation increases.

Oil and Gas segment profit was $18.9 million for the quarter ended March 31, 2015, compared to segment profit of $27.6 million for the quarter ended March 31, 2014. The decrease in segment profit was due to decreased revenues and increased direct expenses attributable to the above-described factors.

Air Medical – Air Medical segment revenues were $72.4 million for the three months ended March 31, 2015, compared to $68.0 million for the three months ended March 31, 2014, an increase of $4.4 million, reflecting an expansion in the number of markets and customers served by our traditional provider programs, as well as increased

30

revenues from our independent provider programs driven by rate increases implemented over the past year and an improvement in our payor mix. Patient transports were 3,945 for the three months ended March 31, 2015, compared to 4,105 for the same period in the prior year, partly due to adverse weather in the first quarter of 2015.

The number of aircraft in the segment at March 31, 2015 was 100 compared to 101 at March 31, 2014. Since March 31, 2014, we sold or disposed of two light and one medium aircraft in our Air Medical segment. We also added one light and two medium aircraft to our Air Medical segment. Changes in customer-owned aircraft and transfers between segments account for the remainder.

Direct expense in our Air Medical segment was $60.0 million for the three months ended March 31, 2015, compared to $59.4 million for the three months ended March 31, 2014, an increase of $0.6 million. There were increases in aircraft warranty and component repair costs of $0.9 million and $1.7 million, respectively. In 2014, we terminated the manufacturer’s warranty program for certain aircraft, which resulted in a $0.9 million credit to aircraft warranty costs in the first quarter of 2014. These increases were partially offset by a decrease in aircraft insurance costs of $0.4 million due to a favorable loss experience and a decrease in aircraft fuel expense of $0.5 million. In addition, there was a decrease in outside services, travel costs and other base costs of $1.1 million.

Selling, general and administrative segment expenses were $2.6 million for the three months ended March 31, 2015, compared to $2.2 million for the three months ended March 31, 2014. The $0.4 million increase was primarily due to an increase of $0.3 million in employee compensation expense, due to additional administrative personnel and compensation rate increases, as well as increased legal expenses of $0.1 million.

Air Medical segment profit was $9.7 million for the quarter ended March 31, 2015, compared to a segment profit of $6.4 million for the quarter ended March 31, 2014. The increase in profit is primarily attributable to the increased revenues described above, partially offset by increased operating expenses.

Technical Services – Technical Services revenues were $11.4 million for the three months ended March 31, 2015, compared to $3.1 million for the three months ended March 31, 2014. The increase in revenue is due primarily to an expansion of technical services provided to a third party customer under a project that we expect to complete in the third quarter of 2015. Technical Services segment profit was $2.4 million for the three months ended March 31, 2015, compared to $1.2 million for the three months ended March 31, 2014. Direct expenses increased $7.0 million compared to the prior year quarter.

For additional information on our segments, see Note 10.

Liquidity and Capital Resources

General

Our ongoing liquidity requirements arise primarily from the purchase or leasing of aircraft, the maintenance and refurbishment of aircraft, improvement of facilities, the acquisition of equipment and inventory, and other working capital needs. Our principal sources of liquidity historically have been net cash provided by our operations, borrowings under our revolving credit facility, and proceeds from periodic senior note offerings. To the extent we do not use cash, short-term investments or borrowings to finance our aircraft acquisitions, we frequently enter into operating leases to fund these acquisitions.

Historical Cash and Cash Flow Information

Liquidity – Our cash position was $3.6 million at March 31, 2015, compared to $6.3 million at December 31, 2014. Short-term investments were $189.5 million at March 31, 2015, compared to $185.2 million at December 31, 2014. We also had $15.5 million in restricted investments at March 31, 2015 and December 31, 2014, securing outstanding letters of credit.

Operating activities – Net cash provided by operating activities was $29.9 million for the three months ended March 31, 2015, compared to $6.1 million for the same period in 2014, an increase of $23.8 million. Net earnings, excluding the effects of non-cash items and the loss on debt extinguishment, contributed $35.4 million of cash flow

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for 2015, compared to $31.8 million for 2014, an increase of $3.6 million. The $23.8 million increase in cash flow from operations is primarily due to a favorable first quarter 2015 variance in changes in working capital, principally due to increased cash collections from the Air Medical segment independent provider model and our Air Medical contract in the Middle East.

Investing activities – Net cash used in investing activities was $27.0 million for the three months ended March 31, 2015, compared to $94.2 million for the same period in 2014. Purchases and sales of short-term investments used $4.8 million of cash during the three months ended March 31, 2015 compared to $55.9 million in the comparable prior year period. The decrease in purchases of short-term investments results primarily from the investment of approximately $71.0 million of net proceeds of our March 2014 issuance of 5.25% Senior Notes remaining after the repurchase of our 8.625% Senior Notes, payment of related fees and costs, and the contemporaneous $91.9 million payoff of our credit facility balance. There were no gross proceeds from asset dispositions in the first quarter of 2015, compared to $3.0 million for the same period in 2014. Capital expenditures were $22.1 million for the three months ended March 31, 2015, compared to $38.7 million for the same period in 2014. Capital expenditures for aircraft and aircraft improvements accounted for $20.8 million and $36.7 million of these totals for the three months ended 2015 and 2014, respectively. During the first quarter of 2015, we exercised a purchased option on one heavy aircraft and took delivery of another heavy aircraft, to be paid in the third quarter of 2015.

Financing activities – Financing activities for the first quarter of 2015 included net payments of $3.4 million on our revolving credit facility and $2.2 million used related to the purchase of shares of our non-voting common stock to satisfy withholding tax obligations of employees.

Financing activities for the first quarter of 2014 included the issuance of $500 million of 5.25% Senior Notes on March 17, 2014, as further described below. Net proceeds of $494.9 million from this issuance were used to repurchase $292.6 million of our $300 million of previously outstanding 8.625% Senior Notes due 2018 pursuant to a tender offer that also settled on March 17, 2014. Our total cost to repurchase those notes was $29.2 million, including the tender premium of $26.1 million and $3.2 million of unamortized issuance costs. We had net payments of $79.0 million on the revolving credit facility during the first quarter of 2014.

Other – Our cash taxes paid during the three months ended March 31, 2015 were substantially higher than our cash taxes for the comparable prior three-month period in 2014 due to the timing of foreign taxes paid.

Long Term Debt

As of March 31, 2015, our total long-term debt was $539.6 million, consisting of our $500 million of 5.25% Senior Notes due 2019, and $39.6 million borrowed under our revolving credit facility.

5.25% Senior Notes due 2019 – On March 17, 2014, we issued $500 million of 5.25% Senior Notes due March 15, 2019. Proceeds were approximately $494.9 million, net of fees and expenses, and were used to retire $292.6 million of our $300 million of previously outstanding 8.625% Senior Notes pursuant to a tender offer, at a total cost of $329.4 million including the tender premium and accrued interest. We redeemed the remaining $7.4 million of 8.625% Senior Notes on April 16, 2014, at a redemption price of 108.3% of the face amount plus accrued interest.

After the repurchase and redemption of all $300 million of our previously outstanding 8.625% Senior Notes as described above, we had remaining net proceeds of approximately $156 million. We used $91.9 million of the proceeds to pay off all of our revolving credit facility balance then outstanding. We used the remaining proceeds for general corporate purposes, including the exercise of purchase options for aircraft previously leased and the purchase of new aircraft.

For additional information about the terms of our 5.25% Senior Notes issued on March 17, 2014, see Note 5.

Revolving Credit Facility – We have an amended and restated revolving credit facility (our “credit facility”) that matures on October 1, 2016. Under our credit facility, we can borrow up to $150 million at floating interest rates based on either the London Interbank Offered Rate plus 225 basis points or the prime rate (each as defined in our credit facility), at our option. Our credit facility includes usual and customary covenants and events of default for credit facilities of its type. Our ability to borrow under the credit facility is conditioned upon our continued compliance with such covenants, including, among others, (i) covenants that restrict our ability to engage in certain asset sales, mergers or other fundamental changes, to incur liens or to engage in certain other transactions or

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activities and (ii) financial covenants that stipulate that PHI will maintain a consolidated working capital ratio of at least 2 to 1, a funded debt to consolidated net worth ratio not greater than 1.5 to 1, a fixed charge coverage ratio of at least 1.1 to 1, and consolidated net worth of at least $450 million (with all such terms or amounts as defined in or determined under the credit facility).

At March 31, 2015, we had $39.6 million in borrowings under our $150.0 million credit facility. At the same date in 2014, we had no borrowings under the credit facility.

Other – We maintain a separate letter of credit facility described in Note 5 that had $15.5 million of letters of credit outstanding at March 31, 2015.

For additional information on our long term debt, see Note 5.

Contractual Obligations

The table below sets out our contractual obligations as of March 31, 2015, related to our operating lease obligations, aircraft purchase commitments, revolving credit facility, and 5.25% Senior Notes due 2019. Our obligations under the operating leases are not recorded as liabilities on our balance sheet. Each contractual obligation included in the table contains various terms, conditions, and covenants that, if violated, accelerate the payment of that obligation under certain specified circumstances. We believe we were in compliance with the covenants applicable to these contractual obligations as of March 31, 2015. As of March 31, 2015, we leased 24 aircraft included in the lease obligations below.

			Payment Due by Year
													Beyond
	Total		2015(1)		2016		2017		2018		2019		2019
			(Thousands of dollars)
Aircraft purchase commitments (2)	$	168,404	$	55,296	$	113,108	$	—	$	—	$	—	$	—
Aircraft lease obligations		290,815		34,124		42,885		40,595		36,914		30,262		106,035
Other lease obligations		14,780		4,158		3,164		2,352		1,759		1198		2,149
Long-term debt(3)		539,640		—		39,640		—		—		500,000		—
Senior notes interest(3)		105,000		13,125		26,250		26,250		26,250		13,125		—
	$	1,118,639	$	106,703	$	225,047	$	69,197	$	64,923	$	544,585	$	108,184

(1) Payments due during the last nine months of 2015 only.

(2) For information about these aircraft purchase commitments, see Note 9 to the financial statements in this report.

(3) Actual principal and interest paid in all years may differ due to the possible future refinancing of outstanding debt or the issuance of new debt.

The table above reflects only contractual obligations as of March 31, 2015 and excludes, among other things, (i) commitments made thereafter, (ii) options to purchase assets, including those described in the next paragraph, (iii) contingent liabilities, (iv) capital expenditures that we plan, but are not committed, to make and (v) open purchase orders.

As of March 31, 2015, we had options to purchase various aircraft that we currently operate under lease agreements with the aircraft owners. These options will become exercisable at various dates in 2016 through 2019. The aggregate option purchase prices are $67.8 million in 2016, $55.7 million in 2017, $127.0 million in 2018, and $150.4 million in 2019. Subject to market conditions and available cash, we currently intend to exercise these options as they become exercisable.

On January 2, 2015, we purchased one heavy aircraft off lease pursuant to a purchase option in the lease contract for an aggregate purchase price of $17.7 million.

We intend to fund the above contractual obligations and purchase options through a combination of cash on hand, cash flow from operations, borrowings under our credit facility, and sale-leaseback transactions.

33

For additional information on our contemplated capital expenditures, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Capital Expenditures” in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2014.

We have not paid dividends on either class of our common stock since 1999 and do not expect to pay dividends in the foreseeable future.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is the risk of changes in the value of financial instruments, or in future net income or cash flows, in response to changing market conditions.

Our earnings are subject to changes in short-term interest rates due to the variable interest rate payable under our credit facility debt. Based on the $36.7 million weighted average loan balance during the three months ended March 31, 2015, a 10% increase (0.242%) in interest rates would have reduced our annual pre-tax earnings approximately $0.1 million, but would not have changed the fair market value of this debt.

Our $500 million of outstanding 5.25% Senior Notes due 2019 bear interest at a fixed rate of 5.25% and therefore changes in market interest rates do not affect our interest payment obligations on the notes. The fair market value of our 5.25% Senior Notes will vary as changes occur to general market interest rates, the remaining maturity of the notes, and our creditworthiness. At March 31, 2015, the market value of the notes was approximately $464.7 million, based on quoted market prices.

The interest and other payments we earn and recognize on our investments in money market funds, U.S. Government agencies debt, commercial paper, and corporate bonds and notes are subject to the risk of declines in general market interest rates.

See Note 4 for additional information.

Item 4. CONTROLS AND PROCEDURES

The Company’s management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that the design and operation of our disclosure controls and procedures were effective as of such date to ensure that information required to be disclosed by us in the reports that we file or furnish under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission, including to ensure that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

There have been no changes in our internal control over financial reporting that occurred during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

The effectiveness of our or any system of disclosure controls and procedures is subject to certain limitations, including the exercise of judgment in designing, implementing and evaluating the controls and procedures, the assumptions used in identifying the likelihood of future events and the inability to eliminate misconduct completely. As a result, we cannot assure you that our disclosure controls and procedures will detect all errors or fraud.

34

PART II – OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

For information regarding legal proceedings, see “Legal Matters” in Note 9 to our financial statements included in this report, incorporated herein by reference.

Item 1A. RISK FACTORS

For information regarding certain risks relating to our operations, any of which could negatively affect our business, financial condition, operating results or prospects, see Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December  31, 2014.

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

During the first quarter of 2015 we (i) withheld from employees and canceled 65,559 shares of our common stock in connection with the vesting of their stock-based awards to satisfy the related minimum tax withholding obligations and (ii) repurchased as treasury shares 4,437 shares of our common stock under our recently-implemented voluntary employee stock repurchase plan. The following table provides additional information about these transactions.

	Total Number of		Average Price
Period	Shares Purchased		Paid per Share
March 1, 2015 – March 31, 2015		69,996	$	31.54

Item 3. DEFAULTS UPON SENIOR SECURITIES

None.

Item 4. MINE SAFETY DISCLOSURES

None.

Item 5. OTHER INFORMATION

Results of Annual Meeting

At PHI’s annual meeting of shareholders on May 5, 2015, for which proxies were not solicited, the board of directors that was nominated, as described in the Company’s Information Statement filed April 13, 2015, was elected in its entirety, with 2,042,850 votes in favor of each director, and zero votes withheld or abstaining. The ratification of the appointment of Deloitte & Touche as PHI’s independent registered public accounting firm for the fiscal year ending December 31, 2015 was approved with 2,042,850 votes in favor, and zero votes against or abstaining. The amendment of PHI’s articles of incorporation to conform them to the newly-enacted Louisiana Business Corporation Act was approved with 2,042,850 votes in favor, and zero votes against or abstaining. The amendment and restatement of the PHI, Inc. Long-Term Incentive Plan was approved with 2,042,850 votes in favor, and zero votes against or abstaining.

35

Item 6. EXHIBITS

(a)	Exhibits
3.1	(i)*   Amended and Restated Articles of Incorporation of the Company (reflecting all amendments through May 5, 2015).
	(ii)    Amended and Restated By-laws of the Company (incorporated by reference to Exhibit 3(ii) to PHI’s Report on Form 8-K filed March 5, 2013).
4.1	Second Amended and Restated Loan Agreement dated as of September 18, 2013, by and among PHI, Inc., PHI Air Medical, L.L.C, successor to Air Evac Services, Inc., PHI Tech Services, Inc. (formerly Evangeline Airmotive, Inc.), International Helicopter Transport, Inc. and Whitney National Bank (incorporated by reference to Exhibit 4.1 to PHI’s Report on Form 10-Q for the quarterly period ended September 30, 2013, filed on November 8, 2013).
4.2	First Amendment to Second Amended and Restated Loan Agreement, dated as of March 5, 2014, by and among PHI, Inc., PHI Air Medical, L.L.C., PHI Tech Services, Inc., International Helicopter Transport, Inc. and Whitney National Bank (incorporated by reference to Exhibit 4.1 to PHI’s Report on Form 8-K filed March 6, 2014).
4.3	Second Amendment to Second Amended and Restated Loan Agreement, dated as of September 26, 2014, by and among PHI, Inc., PHI Air Medical, L.L.C., PHI Tech Services, Inc., International Helicopter Transport, Inc. and Whitney National Bank (incorporated by reference to Exhibit 4.3 to PHI’s Report on Form 10-Q for the quarterly period ended September 30, 2014, filed November 7, 2014).
4.4	Indenture, dated as of March 17, 2014, by and among PHI, Inc., the subsidiary guarantors and U.S. Bank National Association, relating to the issuance by PHI, Inc. of its 5.25% Senior Notes due 2019 (incorporated by reference to Exhibit 4.2 to PHI’s Report on Form 8-K filed March 17, 2014).
4.5	Form of 5.25% Senior Note due 2019 (incorporated by reference to Exhibit 4.2 to PHI’s Report on Form 8-K filed on March 6, 2014).
4.6	Registration Rights Agreement, dated as of March 17, 2014, by and among PHI, Inc., the subsidiary guarantors and UBS Securities, LLC (incorporated by reference to Exhibit 10.1 to PHI’s Report on Form 8-K filed March 17, 2014).
10.1	Amended and Restated PHI Inc. Long-Term Incentive Plan (incorporated by reference to Appendix B to PHI’s Information Statement on Schedule 14C filed April 13, 2015).
31.1*	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Al A. Gonsoulin, Chairman and Chief Executive Officer.
31.2*	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by Trudy P. McConnaughhay, Chief Financial Officer.
32.1*	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by Al A. Gonsoulin, Chairman and Chief Executive Officer.
32.2*	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by Trudy P. McConnaughhay, Chief Financial Officer.

36

101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase
101.DEF*	XBRL Taxonomy Extension Definition Linkbase
101.LAB*	XBRL Taxonomy Extension Label Linkbase
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase

* Filed herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	PHI, Inc.
May 7, 2015	By:	/s/ Al A. Gonsoulin
		Al A. Gonsoulin
		Chairman and Chief Executive Officer
May 7, 2015	By:	/s/ Trudy P. McConnaughhay
		Trudy P. McConnaughhay
		Chief Financial Officer

37

EX-3.1.I

EXHIBIT 3.1 (i)

AMENDED AND RESTATED

ARTICLES OF INCORPORATION

of

PHI, INC.

(reflecting all amendments through May 5, 2015)

ARTICLE I

Name

The name of the corporation is PHI, Inc. (the “Corporation”).

ARTICLE II

Purpose

The Corporation’s purpose is to engage in any lawful activity for which corporations may he formed under the Business Corporation Act of Louisiana.

ARTICLE III

Capital

A. The Corporation is authorized to issue 12,500,000 shares of voting common stock, par value $.10 per share (the “Voting Common Stock”), 25,000,000 shares of non-voting common stock, par value $.10 per share (the “Non-Voting Common Stock”), and 10,000,000 shares of preferred stock, no par value per share (the “Preferred Stock”).

B. Each share of Voting Common Stock shall entitle the holder thereof to one vote with respect to such share of Voting Common Stock on each matter properly submitted to the Corporation’s shareholders for their vote, consent, waiver, release or other action. Holders of the Non-Voting Common Stock shall not be entitled to any voting rights whatsoever; provided, however, that holders of the Non-Voting Common Stock shall be entitled to the voting rights conferred by Section 1-1004D of the Business Corporation Act of Louisiana. Except with respect to voting rights, each share of Voting Common Stock and Non-Voting Common Stock shall be identical in all other respects and shall constitute a single class of stock.

C. Shares of Preferred Stock may be issued from time to time in one or more series. Authority is hereby vested in the Corporation’s board of directors (the “Board”), subject to Article IV, to amend these articles of incorporation from time to time to fix the preferences, limitations and relative rights as among the shares of Preferred Stock, Voting Common Stock and Non-Voting Common Stock, and to establish and fix variations in the preferences, limitations and relative rights as between different series of Preferred Stock.

ARTICLE IV

Voting of Shareholders

A. Action on any matter properly brought before a shareholders’ meeting duly organized for the transaction of business shall be approved if the votes cast by the holders of

Voting Securities favoring the action exceed the votes cast by the holders of Voting Securities opposing the action, unless by express provision of law or these Articles of Incorporation a different vote is required, in which case such express provision shall govern. Directors shall be elected by plurality vote.

B. (1) For purposes of this Article IV, the following terms shall have the meanings specified below:

“Beneficial Ownership,” “Beneficially Owned,” or “Beneficially Own” refers to beneficial ownership as defined in Rule 13d-3 (without regard to the 60-day provision in paragraph (d) (1) (i) thereof) promulgated by the Securities and Exchange Commission as such rule may be amended from time to time.

“FAA” means the Federal Aviation Administration.

“Non-Citizen Owned Shares” means any issued and outstanding Voting Securities that are owned of record, Beneficially Owned, or otherwise controlled by any Person or Persons who are not United States Citizens.

“Permitted Percentage” means one percent less than the percentage of the voting interest in the Corporation that may be owned or controlled by Persons who are not United States Citizens without loss, under Section 1301(16) of Title 49 of the United States Code or any successor or other applicable law or regulation, of the United States Citizen status of the Corporation or any Subsidiary.

“Person” means any individual, corporation, partnership, trust or other entity of any nature whatsoever.

“Subsidiary” means any corporation of which a majority of any class of equity security is owned, directly or indirectly, by the Corporation.

“United States Citizen” means any Person who is a Citizen of the United States as defined in Section 1301(16) of Title 49 of the United States Code, as in effect on the date in question, or any successor statute or regulation.

“Voting Securities” means the Voting Common Stock, any other voting stock of the Corporation, and any bonds, debentures or similar obligations granted voting rights by the Corporation.

(2) The Corporation holds an operating certificate issued by the FAA pursuant to the regulations promulgated under the Federal Aviation Act of 1958, as amended, and the Board and shareholders deem the retention of the Corporation’s rights under such certificate to be of material importance to the Corporation. As long as the Corporation holds, or the Board deems it desirable for the Corporation to hold, its current operating certificate or any other certificate issued by the FAA pursuant to the Federal Aviation Act of 1958, as amended, and the regulations promulgated thereunder or any successor statute or regulation, it shall be the Corporation’s policy that the number of Non-Citizen Owned Shares shall not exceed the Permitted Percentage.

2

(3) If at any time the voting interest of Non-Citizen Owned Shares exceeds the Permitted Percentage, then (i) the voting power otherwise attributable to each Non-Citizen Owned Share shall be immediately and automatically reduced on a pro rata basis (based on the proportion of the voting power otherwise attributable to such Non-Citizen Owned Share to the total voting power attributable to all Non-Citizen Owned Shares) without any further action by the Corporation so that the maximum number of votes that may be cast by the holders of all Non-Citizen Owned Shares shall equal the Permitted Percentage and (ii) the total voting power of any affected class or series of Voting Securities shall also be immediately and automatically reduced without any further action by the Corporation by the total number of votes by which the voting power of Non-Citizen Owned Shares of such class or series was reduced pursuant to clause (i) of this subparagraph (3).

(4) In determining the citizenship of any Person who Beneficially Owns Voting Securities, the Corporation may rely on the Corporation’s stock transfer records and the citizenship provided by any Person shown as the Record Owner and any Person who the Corporation has reasonable cause to believe Beneficially Owns such voting securities. The Board may establish procedures to monitor the Beneficially Ownership and control of Voting Securities, to make any reasonable determination regarding the Beneficial Ownership and control of Voting Securities, and to take any actions deemed necessary or desirable to ensure that the voting interest of Non-Citizen Owned Shares does not exceed the Permitted Percentage. The Board may, but unless expressly provided otherwise is not required to, rely on any statutes, regulations, policies, procedures, rulings, or determinations of the FAA, or any successor governmental authority, in deciding the extent to which Voting Securities are Beneficially Owned or controlled by United States Citizens.

(5) The Corporation may by notice in writing (which may be included in a proxy or ballot distributed to the Corporation’s shareholders) require any Person that is a holder of record of Voting Securities or that the Corporation has reasonable cause to believe Beneficially Owns or controls Voting Securities to certify in such manner as the Corporation shall deem appropriate (including execution of a proxy or ballot) that, to the knowledge of such Person:

(a) all Voting Securities owned of record, Beneficially Owned, or controlled by such Person are owned and controlled only by United States Citizens; or

(b) the number and class or series of Non-Citizen Owned Shares owned of record, Beneficially Owned, or controlled by such Person are as set forth in such certificate.

The Corporation may require any Person certifying as to the ownership or control of Voting Securities in response to clause (a) of this subparagraph (5) to provide such further information as the Corporation may reasonably request in order to implement the provisions of this paragraph B. If any Person fails to provide such certificate or other information, the Corporation may presume that all such Voting Securities are Non-Citizen Owned Shares.

C. Special meetings of the shareholders may be called at any time by the Board or the officers of the Corporation as provided in the Corporation’s by-laws or upon the written

3

request of any shareholder or group of shareholders holding in the aggregate at least 40% of all the votes entitled to be cast on any issue proposed to be considered; provided, however, that if this 40% ownership threshold contravenes the Business Corporation Act of Louisiana at the time of such written request, then special meetings of the shareholders may instead be called upon the written request of any shareholder or group of shareholders holding the highest percentage of votes required for such purpose as is then permitted by the Business Corporation Act of Louisiana. Upon receipt of such a shareholder request, the Secretary shall call a special meeting of shareholders to be held at the registered office of the Corporation at such time as the Secretary may fix, not less than 15 nor more than 60 days after the receipt of such request, and if the Secretary shall neglect or refuse to fix such time or to give notice of the meeting, the shareholder or shareholders making the request may do so. Such request must state the specific purpose or purposes of the proposed special meeting and the business to be conducted thereat shall be limited to such purpose or purposes.

ARTICLE V

Directors

A. The Board shall consist of such number of persons as shall be designated in the Corporation’s by-laws. No decrease in the number of directors shall shorten the term of any incumbent director.

B. Any director absent from a meeting of the Board or any committee thereof may be represented by any other director, who may cast the vote of the absent director according to the written instructions, general or special, of the absent director.

ARTICLE VI

Limitation of Liability and Indemnification

A. To the fullest extent permitted by the Business Corporation Act of Louisiana, no director or officer of the Corporation shall be liable to the Corporation or to its shareholders for monetary damages for any action taken, or any failure to take action, as a director or officer.

B. The Board may (1) cause the Corporation to enter into contracts with directors and officers providing for the limitation of liability set forth in this Article VI and for indemnification of directors and officers to the fullest extent permitted by law, (2) adopt by-laws or resolutions providing for indemnification of directors, officers and other persons to the fullest extent permitted by law (including the adoption of provisions contemplated by La. R.S. 12:1-851(A)(2)) and (3) cause the Corporation to procure insurance on behalf of the directors and officers of the Corporation and other persons to the fullest extent permitted by La. R.S. 12:1-857 and any other relevant provision of the Business Corporation Act of Louisiana, notwithstanding that some or all of the members of the Board acting with respect to the foregoing may be parties to such contracts or beneficiaries of such by-laws or resolutions.

C. No amendment or repeal of any by-law or resolution relating to indemnification shall adversely affect any person’s entitlement to indemnification whose claim thereto results from conduct occurring prior to the date of such amendment or repeal.

4

D. Any amendment or repeal of this Article VI shall not adversely affect any elimination or limitation of liability of a director or officer of the Corporation under this Article VI with respect to any action or inaction occurring prior to the time of such amendment or repeal.

ARTICLE VII

Reversion

Cash, property or share dividends, shares issuable to shareholders in connection with a reclassification of stock, and the redemption price of redeemed shares, which are not claimed by the shareholders entitled thereto within one year after the dividend or redemption price became payable or the shares became issuable, despite reasonable efforts by the Corporation to pay the dividend or redemption price or deliver the certificates for the shares to such shareholders within such time, shall, at the expiration of such time, revert in full ownership to the Corporation, and the Corporation’s obligation to pay such dividend or redemption price or issue such shares, as the case may be, shall thereupon cease; provided that the Board may, at any time, for any reason satisfactory to it, but need not, authorize (A) payment of the amount of any cash or property dividend or redemption price or (B) issuance of any shares, ownership of which has reverted to the Corporation pursuant to this Article VII, to the persons or entity who or which would be entitled thereto had such reversion not occurred.

5

EX-31.1

Exhibit 31.1

CHIEF EXECUTIVE OFFICER’S

CERTIFICATION UNDER

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Al A. Gonsoulin, Chairman and Chief Executive Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of PHI, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 7, 2015

By:	/s/ Al A. Gonsoulin
Al A. Gonsoulin
Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

CHIEF FINANCIAL OFFICER’S

CERTIFICATION UNDER

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Trudy McConnaughhay, Chief Financial Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of PHI, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 7, 2015

By:	/s/ Trudy McConnaughhay
Trudy McConnaughhay
Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

I, Al A. Gonsoulin, Chairman and Chief Executive Officer of PHI, Inc. (the “Company”), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

1. the Quarterly Report on Form 10-Q for the period ended March 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 7, 2015

By:	/s/ Al A. Gonsoulin
	Al A. Gonsoulin
	Chairman and Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

I, Trudy McConnaughhay, Chief Financial Officer of PHI, Inc. (the “Company”), certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

1. the Quarterly Report on Form 10-Q for the period ended March 31, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 7, 2015

By:	/s/ Trudy McConnaughhay
	Trudy McConnaughhay
	Chief Financial Officer

XML

Fair Value Measurements - Additional Information (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Fair Value Measurements Disclosure [Line Items]
The fair value investments reclassification of assets between level 1 and level 2	$ 0	$ 0
The fair value of Senior Notes, based on quoted market prices	464,700,000	425,600,000
Fair Value, Inputs, Level 3 [Member]
Fair Value Measurements Disclosure [Line Items]
Level 3 investments	$ 0	$ 0

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Condensed Consolidating Financial Information - Additional Information (Detail) (USD $)	Mar. 31, 2015
Guarantor Information [Abstract]
Senior notes, amount issued	$ 500,000,000
Interest rate on Senior Notes	5.25%
Ownership percentage in domestic subsidiaries	100.00%

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Segment Information - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Segment Reporting Information [Line Items]
Number of aircraft operated	91
Number of contracts	0
Fixed revenue streams	0
Hospitals Contracts [Member]
Segment Reporting Information [Line Items]
Segment revenue	42.00%	42.00%
Oil and Gas [Member]
Segment Reporting Information [Line Items]
Number of aircraft operated	168
Segment revenue	59.00%	64.00%
Oil and Gas [Member] | Minimum [Member] | Major Customer [Member]
Segment Reporting Information [Line Items]
Working period with major customers	30 years
Oil and Gas [Member] | Minimum [Member] | ENI Petroleum [Member]
Segment Reporting Information [Line Items]
Working period with major customers	15 years
Air Medical [Member]
Segment Reporting Information [Line Items]
Segment revenue	35.00%	34.00%
Number of aircraft assigned	100
Number of states in which company operates aircrafts	18
Locations in which company operates Aircrafts	70
Air Medical [Member] | Middle East [Member]
Segment Reporting Information [Line Items]
Number of aircraft operated	9
Locations in which company operates Aircrafts	5
Number of revenue generating aircrafts	8
Technical Services [Member]
Segment Reporting Information [Line Items]
Segment revenue	6.00%	2.00%

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Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheets (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015		Dec. 31, 2014		Mar. 31, 2014		Dec. 31, 2013
Current Assets:
Cash	$ 3,623		$ 6,270		$ 9,336		$ 934
Short-term investments	189,480		185,244
Accounts receivable - net	160,227		180,761
Inventories of spare parts - net	71,452		73,793
Prepaid expenses	11,075		9,314
Deferred income taxes	9,914		9,915
Income taxes receivable	1,226		1,227
Total current assets	446,997		466,524
Property and equipment - net	917,342		877,818
Restricted investments	15,485		15,485
Other assets	15,095		16,253
Total assets	1,394,919		1,376,080
Current Liabilities:
Accounts payable	56,214		27,700
Accrued and other current liabilities	30,085		52,812
Total current liabilities	86,299		80,512
Long-term debt	539,640		543,000
Deferred income taxes and other long-term liabilities	161,929		155,500
Shareholders' Equity:
Common stock and paid-in capital	302,593		303,082
Accumulated other comprehensive loss	(102)		(211)
Retained earnings	304,560		294,197
Total shareholders' equity	607,051		597,068		555,165		559,965
Total liabilities and shareholders' equity	1,394,919		1,376,080
Parent Company Only (issuer) [Member]
Current Assets:
Cash	51		51		7,379		52
Short-term investments	189,480		185,244
Accounts receivable - net	100,167		98,001
Inventories of spare parts - net	62,954		65,341
Prepaid expenses	8,475		7,610
Deferred income taxes	9,914		9,915
Income taxes receivable	1,067		1,068
Total current assets	372,108		367,230
Investment in subsidiaries	336,676		358,080
Property and equipment - net	680,419		638,437
Restricted investments	15,485		15,485
Other assets	14,891		16,055
Total assets	1,419,579		1,395,287
Current Liabilities:
Accounts payable	51,344		22,578
Accrued and other current liabilities	21,233		34,477
Intercompany payable	95,103		95,270
Total current liabilities	167,680		152,325
Long-term debt	539,640		543,000
Deferred income taxes and other long-term liabilities	105,208		102,894
Shareholders' Equity:
Common stock and paid-in capital	302,593		303,082
Accumulated other comprehensive loss	(102)		(211)
Retained earnings	304,560		294,197
Total shareholders' equity	607,051		597,068
Total liabilities and shareholders' equity	1,419,579		1,395,287
Guarantor Subsidiaries [Member]
Current Assets:
Cash	3,572	[1]	6,219	[1]	1,957	[1],[2]	882	[1],[2]
Accounts receivable - net	60,060	[1]	82,760	[1]
Intercompany receivable	95,103	[1]	95,399	[1]
Inventories of spare parts - net	8,498	[1]	8,452	[1]
Prepaid expenses	2,600	[1]	1,704	[1]
Income taxes receivable	159	[1]	159	[1]
Total current assets	169,992	[1]	194,693	[1]
Property and equipment - net	236,923	[1]	239,381	[1]
Other assets	204	[1]	198	[1]
Total assets	407,119	[1]	434,272	[1]
Current Liabilities:
Accounts payable	4,870	[1]	5,122	[1]
Accrued and other current liabilities	8,852	[1]	18,335	[1]
Total current liabilities	13,722	[1]	23,457	[1]
Deferred income taxes and other long-term liabilities	56,721	[1]	52,606	[1]
Shareholders' Equity:
Common stock and paid-in capital	109,982	[1]	137,647	[1]
Retained earnings	226,694	[1]	220,562	[1]
Total shareholders' equity	336,676	[1]	358,209	[1]
Total liabilities and shareholders' equity	407,119	[1]	434,272	[1]
Eliminations [Member]
Current Assets:
Intercompany receivable	(95,103)		(95,399)
Total current assets	(95,103)		(95,399)
Investment in subsidiaries	(336,676)		(358,080)
Total assets	(431,779)		(453,479)
Current Liabilities:
Intercompany payable	(95,103)		(95,270)
Total current liabilities	(95,103)		(95,270)
Shareholders' Equity:
Common stock and paid-in capital	(109,982)		(137,647)
Retained earnings	(226,694)		(220,562)
Total shareholders' equity	(336,676)		(358,209)
Total liabilities and shareholders' equity	$ (431,779)		$ (453,479)

[1] Foreign subsidiaries represent minor subsidiaries and are included in the guarantors subsidiaries' amounts.

[2] Cash flows between the Parent Company and Guarantor Subsidiaries related to the Company's centralized cash management activities in 2014 have been adjusted to show the effects on net cash provided by operating and financing activities.

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Asset Disposals and Impairments - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Assets Held For Sale And Impairments [Line Items]
Cash realized from sale of assets	$ 0	$ 3,000,000
Loss on disposal of assets	$ 0	$ (1,100,000)
Air Medical [Member] | Light Aircraft [Member]
Assets Held For Sale And Impairments [Line Items]
Number of aircraft sold		2
Oil and Gas [Member] | Fixed Wing Aircraft [Member]
Assets Held For Sale And Impairments [Line Items]
Number of aircraft sold		2

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Investments - Average Coupon Rate Percentage and the Average Days to Maturity of Debt (Detail)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
US Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Average Coupon Rate	0.528%	0.00%
Average Days To Maturity	44 days	0 days
Municipal bonds and notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Average Coupon Rate	0.869%	0.528%
Average Days To Maturity	700 days	134 days
Corporate bonds and notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Average Coupon Rate	1.814%	1.828%
Average Days To Maturity	350 days	348 days

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Condensed Consolidating Financial Information - Condensed Consolidating Statements of Comprehensive Income (Loss) (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Condensed Financial Statements, Captions [Line Items]
Net earning (loss)	$ 10,363		$ (5,321)
Unrealized gain on short-term investments	139		14
Other unrealized gain	24
Changes in pension plan assets and benefit obligations			(1)
Tax effect of preceding gains, losses or changes	(55)		(5)
Total comprehensive income	10,471		(5,313)
Parent Company Only (issuer) [Member]
Condensed Financial Statements, Captions [Line Items]
Net earning (loss)	10,363		(5,321)
Unrealized gain on short-term investments	139		14
Other unrealized gain	24
Changes in pension plan assets and benefit obligations			(1)
Tax effect of preceding gains, losses or changes	(55)		(5)
Total comprehensive income	10,471		(5,313)
Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Net earning (loss)	6,131	[1]	2,735	[1]
Total comprehensive income	6,131	[1]	2,735	[1]
Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Net earning (loss)	(6,131)		(2,735)
Total comprehensive income	$ (6,131)		$ (2,735)

[1] Foreign subsidiaries represent minor subsidiaries and are included in the guarantors subsidiaries' amounts.

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Long Term Debt (Tables)

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Components of Long-term Debt

The components of long-term debt as of the dates indicated below were as follows:

	March 31,		December 31,
	2015		2014
	(Thousands of dollars)
Senior Notes dated March 17, 2014, interest only payable semi-annually at 5.25%, maturing March 15, 2019	$	500,000	$	500,000
Revolving Credit Facility due October 1, 2016 with a group of commercial banks, interest payable at variable rates		39,640		43,000
Total long-term debt	$	539,640	$	543,000

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Segment Information - Schedule of Net Revenue Attributable to Medicaid, Medicare, Insurance, and Self-Pay as a Percentage of Net Air Medical Revenues (Detail) (Air Medical [Member])	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Insurance [Member]
Segment Reporting Information [Line Items]
Percentage of net Air Medical revenues	75.00%	70.00%
Medicare [Member]
Segment Reporting Information [Line Items]
Percentage of net Air Medical revenues	17.00%	20.00%
Medicaid [Member]
Segment Reporting Information [Line Items]
Percentage of net Air Medical revenues	8.00%	8.00%
Self Pay [Member]
Segment Reporting Information [Line Items]
Percentage of net Air Medical revenues	0.00%	2.00%

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Long Term Debt - Additional Information (Detail) (USD $)	3 Months Ended		0 Months Ended	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Apr. 16, 2014	Jun. 30, 2014	Dec. 31, 2014	Sep. 18, 2013
Debt Instrument [Line Items]
Senior notes, amount issued	$ 500,000,000
Interest rate on Senior Notes	5.25%
Proceeds from issuance of senior notes		500,000,000
Repayment of Senior Notes		292,571,000
Total long-term debt	539,640,000				543,000,000
Pretax charge related to early redemption of senior notes		(29,216,000)
Letters of credit outstanding under the facility	15,500,000				15,500,000
Periodic payment of debt interest	13,500,000	11,300,000
Accrued interest expense paid	13,453,000	11,280,000
5.25% Senior Notes due March 15, 2019 [Member]
Debt Instrument [Line Items]
Senior notes, amount issued		500,000,000
Interest rate on Senior Notes	5.25%	5.25%
5.25% Senior notes payable periods		2019-03
Proceeds from issuance of senior notes		494,000,000
Total long-term debt	500,000,000				500,000,000
5.25% Senior Notes payable periods	Mar. 15, 2019
Debt instrument interest rate term	Interest is payable semi-annually on March 15 and September 15 of each year, beginning September 15, 2014.
Percentage of principal amount redeemed	101.00%
Debt instrument restrictive covenants	The indenture governing the 2019 Notes (the "2019 Indenture") contains, among other things, certain restrictive covenants, including limitations on incurring indebtedness, creating liens, selling assets and entering into certain transactions with affiliates. The covenants also limit PHI's ability to, among other things, pay cash dividends on common stock, repurchase or redeem common or preferred equity, prepay subordinated debt and make certain investments.
8.625% Senior Notes [Member]
Debt Instrument [Line Items]
Interest rate on Senior Notes		8.625%
Repayment of Senior Notes		292,600,000
Total long-term debt		300,000,000
Cost of debt repayment		329,400,000
Senior notes redemption date		Mar. 17, 2014	Apr. 16, 2014
Amount of senior notes redeemed			7,400,000
Senior notes, redemption price, percentage			108.30%
Pretax charge related to early redemption of senior notes		29,200,000		600,000
Premium on early redemption of senior notes		26,100,000
Write off of unamortized financing costs		3,100,000
Tax benefit related to redemption	11,600,000
Accrued interest expense paid	10,700,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Total long-term debt	39,640,000				43,000,000
Increased Borrowing capacity						150,000,000
Revolving credit facility, maturity date	Oct. 01, 2016
Revolving Credit facility, Covenants, consolidated working capital ratio	200.00%
Revolving Credit facility, Covenants, consolidated net worth ratio	150.00%
Revolving Credit facility, Covenants, fixed coverage ratio	110.00%
Revolving Credit facility, Covenants, consolidated net worth	$ 450,000,000
Revolving Credit Facility [Member] | LIBOR [Member]
Debt Instrument [Line Items]
LIBOR plus interest rate on borrowed funds	225.00%

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Revenue Recognition and Valuation Accounts - Schedule of Allowance for Contractual Discounts and Estimated Uncompensated Care as a Percentage of Gross Segment Accounts Receivable (Detail)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Revenue Recognition And Valuation Accounts [Abstract]
Allowance for Contractual Discounts	57.00%	53.00%
Allowance for Uncompensated Care	21.00%	23.00%

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Segment Information - Depreciation and Amortization Expense Included in Direct Expenses and Unallocated Selling, General, and Administrative Costs (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Reportable Operating Segments [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Depreciation and Amortization Expenses	$ 15,505	$ 10,016
Reportable Operating Segments [Member] | Oil and Gas [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Depreciation and Amortization Expenses	11,280	6,853
Reportable Operating Segments [Member] | Air Medical [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Depreciation and Amortization Expenses	4,097	3,076
Reportable Operating Segments [Member] | Technical Services [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Depreciation and Amortization Expenses	128	87
Unallocated Selling, General and Administrative Expenses [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Depreciation and Amortization Expenses	$ 2,646	$ 1,347

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Commitments and Contingencies - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended	1 Months Ended	0 Months Ended
	Mar. 31, 2015 Land_Parcel	Mar. 31, 2014 Aircraft	Jan. 02, 2015 Aircraft
Long-term Purchase Commitment [Line Items]
Total aircraft deposits	$ 7.4
Aggregate estimated probable liability environmental matters	0.2
Number of parcels of land exists	2
Aggregate commitments under operating leases	305.6
Operational lease payable	38.3
Lease commitment for aircraft	290.8
Facility lease commitments	14.8
2016 [Member]
Long-term Purchase Commitment [Line Items]
Aggregate purchase price for aircraft	67.8
2017 [Member]
Long-term Purchase Commitment [Line Items]
Aggregate purchase price for aircraft	55.7
2018 [Member]
Long-term Purchase Commitment [Line Items]
Aggregate purchase price for aircraft	127.0
2019 [Member]
Long-term Purchase Commitment [Line Items]
Aggregate purchase price for aircraft	150.4
Heavy Helicopters [Member]
Long-term Purchase Commitment [Line Items]
Number of aircraft purchased		6
Number of aircrafts delivered	1
Heavy Aircraft [Member]
Long-term Purchase Commitment [Line Items]
Number of aircraft purchased			1
Aggregate purchase price for aircraft			$ 17.7

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Investments

3 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Investments

2. INVESTMENTS

We classify all of our short-term investments as available-for-sale. We carry these at fair value and report unrealized gains and losses, net of taxes, in Accumulated other comprehensive loss (income), which is a separate component of shareholders’ equity in our Condensed Consolidated Balance Sheets. These unrealized gains and losses are also reflected in our Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Statements of Shareholders’ Equity. Cost, gains, and losses are determined using the specific identification method.

Investments consisted of the following as of March 31, 2015:

			Unrealized		Unrealized			Fair
	Cost Basis		Gains		Losses			Value
	(Thousands of dollars)
Investments:
Money market mutual funds	$	18,055	$	—	$	—		$	18,055
U.S. Government agencies		8,007		6		(1	)		8,012
Municipal bonds and notes		1,500		1		—			1,501
Corporate bonds and notes		177,511		23		(137	)		177,397
Subtotal		205,073		30		(138	)		204,965
Deferred compensation plan assets included in other assets		2,475		—		—			2,475
Total	$	207,548	$	30	$	(138	)	$	207,440

Investments consisted of the following as of December 31, 2014:

			Unrealized		Unrealized			Fair
	Cost Basis		Gains		Losses			Value
	(Thousands of dollars)
Investments:
Money market mutual funds	$	68,612	$	—	$	—		$	68,612
Municipal bonds and notes		1,500		2		—			1,502
Corporate bonds and notes		130,864		19		(268	)		130,615
Subtotal		200,976		21		(268	)		200,729
Deferred compensation plan assets included in other assets		2,386		—		—			2,386
Total	$	203,362	$	21	$	(268	)	$	203,115

At March 31, 2015 and December 31, 2014, we classified $15.5 million of our aggregate investments as long-term investments and recorded them in our Condensed Consolidated Balance Sheets as Restricted investments, as they are securing outstanding letters of credit with maturities beyond one year.

The following table presents the cost and fair value of our debt investments based on maturities as of:

	March 31, 2015				December 31, 2014
	Amortized		Fair		Amortized		Fair
	Costs		Value		Costs		Value
	(Thousands of dollars)
Due in one year or less	$	95,682	$	95,667	$	70,180	$	70,169
Due within two years		91,336		91,243		62,184		61,948
Total	$	187,018	$	186,910	$	132,364	$	132,117

The following table presents the average coupon rate percentage and the average days to maturity of our debt investments as of:

	March 31, 2015				December 31, 2014
	Average		Average		Average		Average
	Coupon		Days To		Coupon		Days To
	Rate (%)		Maturity		Rate (%)		Maturity
U.S. Government agencies		0.528		44		0.000		0
Municipal bonds and notes		0.869		700		0.528		134
Corporate bonds and notes		1.814		350		1.828		348

The following table presents the fair value and unrealized losses related to our investments that have been in a continuous unrealized loss position for less than twelve months as of March 31,

	2015					2014
			Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses
	(Thousands of dollars)
U.S. Government agencies	$	1,999	$	(1	)	$	—	$	—
Corporate bonds and notes		130,231		(136	)		30,332		(30	)
Total	$	132,230	$	(137	)	$	30,332	$	(30	)

The following table presents the fair value and unrealized losses related to our investments that have been in a continuous unrealized loss position for more than twelve months as of March 31,

	2015					2014
			Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses
	(Thousands of dollars)
Corporate bonds and notes	$	1,503	$	(1	)	$	—	$	—
Total	$	1,503	$	(1	)	$	—	$	—

From time to time over the periods covered in our financial statements included herein, our investments have experienced net unrealized losses. We consider these declines in market value to be due to market conditions, and we do not plan to sell these investments prior to maturity. For these reasons, we do not consider any of our investments to be other than temporarily impaired at March 31, 2015 or December 31, 2014. We have also determined that we did not have any other-than-temporary impairments relating to credit losses on debt securities for the three months ended March 31, 2015. For additional information regarding our criteria for making these assessments, see Note 2 to the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014.

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Earnings Per Share - Components of Basic and Diluted Earnings Per Share (Detail) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]
Weighted average outstanding shares of common stock, basic	15,579	15,480
Dilutive effect of restricted stock units	83
Weighted average outstanding shares of common stock, diluted	15,662	15,480

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Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Balance Sheets

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(Thousands of dollars)

(Unaudited)

	March 31, 2015
	Parent Company Only (issuer)			Guarantor Subsidiaries (1)		Eliminations			Consolidated
ASSETS
Current Assets:
Cash	$	51		$	3,572	$	—		$	3,623
Short-term investments		189,480			—		—			189,480
Accounts receivable—net		100,167			60,060		—			160,227
Intercompany receivable		—			95,103		(95,103	)		—
Inventories of spare parts—net		62,954			8,498		—			71,452
Prepaid expenses		8,475			2,600		—			11,075
Deferred income taxes		9,914			—		—			9,914
Income taxes receivable		1,067			159		—			1,226
Total current assets		372,108			169,992		(95,103	)		446,997
Investment in subsidiaries		336,676			—		(336,676	)		—
Property and equipment—net		680,419			236,923		—			917,342
Restricted investments		15,485			—		—			15,485
Other assets		14,891			204		—			15,095
Total assets	$	1,419,579		$	407,119	$	(431,779	)	$	1,394,919
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	51,344		$	4,870	$	—		$	56,214
Accrued and other current liabilities		21,233			8,852		—			30,085
Intercompany payable		95,103			—		(95,103	)		—
Total current liabilities		167,680			13,722		(95,103	)		86,299
Long-term debt		539,640			—		—			539,640
Deferred income taxes and other long-term liabilities		105,208			56,721		—			161,929
Shareholders’ Equity:
Common stock and paid-in capital		302,593			109,982		(109,982	)		302,593
Accumulated other comprehensive loss		(102	)		—		—			(102	)
Retained earnings		304,560			226,694		(226,694	)		304,560
Total shareholders’ equity		607,051			336,676		(336,676	)		607,051
Total liabilities and shareholders’ equity	$	1,419,579		$	407,119	$	(431,779	)	$	1,394,919

(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, 2014
	Parent Company Only (issuer)			Guarantor Subsidiaries (1)		Eliminations			Consolidated
ASSETS
Current Assets:
Cash	$	51		$	6,219	$	—		$	6,270
Short-term investments		185,244			—		—			185,244
Accounts receivable—net		98,001			82,760		—			180,761
Intercompany receivable		—			95,399		(95,399	)		—
Inventories of spare parts—net		65,341			8,452		—			73,793
Prepaid expenses		7,610			1,704		—			9,314
Deferred income taxes		9,915			—		—			9,915
Income taxes receivable		1,068			159		—			1,227
Total current assets		367,230			194,693		(95,399	)		466,524
Investment in subsidiaries and others		358,080			—		(358,080	)		—
Property and equipment, net		638,437			239,381		—			877,818
Restricted investments		15,485			—		—			15,485
Other assets		16,055			198		—			16,253
Total assets	$	1,395,287		$	434,272	$	(453,479	)	$	1,376,080
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	22,578		$	5,122	$	—		$	27,700
Accrued and other current liabilities		34,477			18,335		—			52,812
Intercompany payable		95,270			—		(95,270	)		—
Total current liabilities		152,325			23,457		(95,270	)		80,512
Long-term debt		543,000			—		—			543,000
Deferred income taxes and other long-term liabilities		102,894			52,606		—			155,500
Shareholders’ Equity:
Common stock and paid-in capital		303,082			137,647		(137,647	)		303,082
Accumulated other comprehensive loss		(211	)		—		—			(211	)
Retained earnings		294,197			220,562		(220,562	)		294,197
Total shareholders’ equity		597,068			358,209		(358,209	)		597,068
Total liabilities and shareholders’ equity	$	1,395,287		$	434,272	$	(453,479	)	$	1,376,080

(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, 2015
	Parent Company Only (issuer)			Guarantor Subsidiaries (1)			Eliminations			Consolidated
Operating revenues, net	$	128,658		$	75,539		$	—		$	204,197
Expenses:
Direct expenses		106,481			62,730			(4	)		169,207
Selling, general and administrative expenses		8,508			2,729			—			11,237
Total operating expenses		114,989			65,459			(4	)		180,444
Gain on disposal of assets, net		(7	)		—			—			(7	)
Equity in loss of unconsolidated affiliate		68			—			—			68
Operating income		13,608			10,080			4			23,692
Equity in net income of consolidated subsidiaries		(6,131	)		—			6,131			—
Interest expense		7,170			—			—			7,170
Other income, net		(462	)		(4	)		4			(462	)
		577			(4	)		6,135			6,708
Earnings before income taxes		13,031			10,084			(6,131	)		16,984
Income tax expense		2,668			3,953			—			6,621
Net earnings	$	10,363		$	6,131		$	(6,131	)	$	10,363
	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	)

(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, 2015
	Parent Company Only (issuer)			Guarantor Subsidiaries (1)		Eliminations			Consolidated
Net earnings	$	10,363		$	6,131	$	(6,131	)	$	10,363
Unrealized gain on short-term investments		139			—		—			139
Other unrealized gain		24			—		—			24
Tax effect of preceding gains, losses or changes		(55	)		—		—			(55	)
	$	10,471		$	6,131	$	(6,131	)	$	10,471
	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 of preceding gains, losses or changes		(5	)		—		—			(5	)
	$	(5,313	)	$	2,735	$	(2,735	)	$	(5,313	)

(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, 2015
	Parent Company Only (issuer)			Guarantor Subsidiaries (1)			Eliminations		Consolidated
Net cash provided by operating activities	$	4,637		$	25,281		$	—	$	29,918
Investing activities:
Purchase of property and equipment		(22,115	)		—			—		(22,115	)
Purchase of short-term investments		(190,243	)		—			—		(190,243	)
Proceeds from sale of short-term investments		185,426			—			—		185,426
Payments of deposits on aircraft		(66	)		—			—		(66	)
Net cash used in investing activities		(26,998	)		—			—		(26,998	)
Financing activities:
Proceeds from line of credit		77,740			—			—		77,740
Payments on line of credit		(81,100	)		—			—		(81,100	)
Repurchase of common stock		(2,207	)							(2,207	)
Due to/from affiliate, net		27,928			(27,928	)		—		—
Net cash provided by (used in) financing activities		22,361			(27,928	)		—		(5,567	)
Decrease in cash		—			(2,647	)		—		(2,647	)
Cash, beginning of period		51			6,219			—		6,270
Cash, end of period	$	51		$	3,572		$	—	$	3,623

(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)

(Unaudited)

	For the three months ended March 31, 2014
	Parent Company Only (issuer)			Guarantor Subsidiaries (1)(2)			Eliminations		Consolidated
Net cash provided by operating activities	$	(4,368	)	$	10,490		$	—	$	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	)
Due to/from affiliate		9,415			(9,415	)		—		—
Net cash provided by financing activities		105,879			(9,415	)		—		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

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

(2) Cash flows between the Parent Company and Guarantor Subsidiaries related to the Company’s centralized cash management activities in 2014 have been adjusted to show the effects on net cash provided by operating and financing activities.

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Schedule of Provisions for Contractual Discounts and Estimated Uncompensated Care as a Percentage of Gross Segment Billings

Provisions for contractual discounts and estimated uncompensated care for Air Medical operations as a percentage of gross segment billings for the following periods were as follows:

	Revenue
	Quarter Ended
	March 31,
	2015			2014
Gross Air Medical segment billings		100	%		100	%
Provision for contractual discounts		74	%		69	%
Provision for uncompensated care		0	%		3	%

Schedule of Net Revenue Attributable to Medicaid, Medicare, Insurance, and Self-Pay as a Percentage of Net Air Medical Revenues

Net revenue attributable to Insurance, Medicare, Medicaid, and Self-Pay as a percentage of net Air Medical revenues are as follows:

	Quarter Ended
	March 31,
	2015			2014
Insurance		75	%		70	%
Medicare		17	%		20	%
Medicaid		8	%		8	%
Self-Pay		0	%		2	%

Schedule of Financial Information Concerning Reportable Operating Segments

Summarized financial information concerning our reportable operating segments for the quarters ended March 31, 2015 and 2014 is as follows:

	Quarter Ended March 31,
	2015			2014
	(Thousands of dollars)
Segment operating revenues
Oil and Gas	$	120,396		$	125,975
Air Medical		72,385			67,952
Technical Services		11,416			3,144
Total operating revenues		204,197			197,071
Segment direct expenses (1)
Oil and Gas (2)		100,331			97,374
Air Medical		60,039			59,379
Technical Services		8,905			1,941
Total segment direct expenses		169,275			158,694
Segment selling, general and administrative expenses
Oil and Gas		1,159			1,034
Air Medical		2,629			2,153
Technical Services		114			2
Total selling, general and administrative expenses		3,902			3,189
Total direct and selling, general and administrative expenses		173,177			161,883
Net segment profit
Oil and Gas		18,906			27,567
Air Medical		9,717			6,420
Technical Services		2,397			1,201
Total net segment profit		31,020			35,188
Other, net (3)		469			(982	)
Unallocated selling, general and administrative costs (1)		(7,335	)		(6,139	)
Interest expense		(7,170	)		(7,364	)
Loss on debt extinguishment		—			(29,216	)
Earnings (loss) before income taxes	$	16,984		$	(8,513	)

(1) Included in segment direct expenses and unallocated selling, general, and administrative costs are the depreciation and amortization expense amounts below:

(2) Includes Equity in loss of unconsolidated affiliate.

(3) Consists of gains on disposition of property and equipment, and other income.

Depreciation and Amortization Expense Included in Direct Expenses and Unallocated Selling, General, and Administrative Costs

	Depreciation and Amortization Expense
	Quarter Ended March 31,
	2015		2014
Segment Direct Expense:
Oil and Gas	$	11,280	$	6,853
Air Medical		4,097		3,076
Technical Services		128		87
Total	$	15,505	$	10,016
Unallocated SG&A	$	2,646	$	1,347

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Condensed Consolidating Financial Information - Condensed Consolidating Statements of Operations (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Condensed Income Statements, Captions [Line Items]
Operating revenues, net	$ 204,197		$ 197,071
Expenses:
Direct expenses	169,207		158,653
Selling, general and administrative expenses	11,237		9,328
Total operating expenses	180,444		167,981
Gain on disposal of assets, net	(7)		1,073
Equity in loss of unconsolidated affiliate	68		41
Operating income	23,692		27,976
Interest expense	7,170		7,364
Loss on debt extinguishment			29,216
Other income, net	(462)		(91)
Total expenses	6,708		36,489
Earnings (loss) before income taxes	16,984		(8,513)
Income tax expense (benefit)	6,621		(3,192)
Net earnings (loss)	10,363		(5,321)
Parent Company Only (issuer) [Member]
Condensed Income Statements, Captions [Line Items]
Operating revenues, net	128,658		124,354
Expenses:
Direct expenses	106,481		96,426
Selling, general and administrative expenses	8,508		7,081
Management fees			(2,909)
Total operating expenses	114,989		100,598
Gain on disposal of assets, net	(7)		115
Equity in loss of unconsolidated affiliate	68		41
Operating income	13,608		23,600
Equity in net income of consolidated subsidiaries	(6,131)		(2,735)
Interest expense	7,170		7,364
Loss on debt extinguishment			29,216
Other income, net	(462)		(91)
Total expenses	577		33,754
Earnings (loss) before income taxes	13,031		(10,154)
Income tax expense (benefit)	2,668		(4,833)
Net earnings (loss)	10,363		(5,321)
Guarantor Subsidiaries [Member]
Condensed Income Statements, Captions [Line Items]
Operating revenues, net	75,539	[1]	72,717	[1]
Expenses:
Direct expenses	62,730	[1]	62,227	[1]
Selling, general and administrative expenses	2,729	[1]	2,247	[1]
Management fees			2,909	[1]
Total operating expenses	65,459	[1]	67,383	[1]
Gain on disposal of assets, net			958	[1]
Operating income	10,080	[1]	4,376	[1]
Other income, net	(4)	[1]
Total expenses	(4)	[1]
Earnings (loss) before income taxes	10,084	[1]	4,376	[1]
Income tax expense (benefit)	3,953	[1]	1,641	[1]
Net earnings (loss)	6,131	[1]	2,735	[1]
Eliminations [Member]
Expenses:
Direct expenses	(4)
Total operating expenses	(4)
Operating income	4
Equity in net income of consolidated subsidiaries	6,131		2,735
Other income, net	4
Total expenses	6,135		2,735
Earnings (loss) before income taxes	(6,131)		(2,735)
Net earnings (loss)	$ (6,131)		$ (2,735)

[1] Foreign subsidiaries represent minor subsidiaries and are included in the guarantors subsidiaries' amounts.

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Stock-Based Compensation - Summary of Share Based Compensation Expense (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Stock-based compensation expense:
Total stock-based compensation expense	$ 1,719	$ 688
Time-based Restricted Stock Units [Member]
Stock-based compensation expense:
Total stock-based compensation expense	637	127
Performance-based Restricted Stock Units [Member]
Stock-based compensation expense:
Total stock-based compensation expense	$ 1,082	$ 561

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Investments - Components of Investments (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Cost Basis	$ 207,548	$ 203,362
Unrealized Gains	30	21
Unrealized Losses	(138)	(268)
Fair Value	207,440	203,115
Investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost Basis	205,073	200,976
Unrealized Gains	30	21
Unrealized Losses	(138)	(268)
Fair Value	204,965	200,729
Investments [Member] | Money Market Mutual Funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost Basis	18,055	68,612
Fair Value	18,055	68,612
Investments [Member] | Municipal bonds and notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost Basis	1,500	1,500
Unrealized Gains	1	2
Fair Value	1,501	1,502
Investments [Member] | Corporate bonds and notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost Basis	177,511	130,864
Unrealized Gains	23	19
Unrealized Losses	(137)	(268)
Fair Value	177,397	130,615
Investments [Member] | US Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost Basis	8,007
Unrealized Gains	6
Unrealized Losses	(1)
Fair Value	8,012
Deferred Compensation Plan Assets [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost Basis	2,475	2,386
Fair Value	$ 2,475	$ 2,386

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Investments - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]
Restricted investments	$ 15,485	$ 15,485

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Basis of Presentation

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Basis of Presentation

1. BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements include the accounts of PHI, Inc. and its subsidiaries (“PHI” or the “Company” or “we” or “our”). In the opinion of management, these condensed consolidated financial statements reflect all adjustments, consisting of only normal, recurring adjustments, necessary to present fairly the financial results for the interim periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 and the accompanying notes.

The Company’s financial results, particularly as they relate to the Company’s Oil and Gas segment, are influenced by seasonal fluctuations as discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. For this and other reasons, the results of operations for interim periods are not necessarily indicative of the operating results that may be expected for a full fiscal year.

Accounting Policies—In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. The standard is effective for public entities for annual and interim periods beginning after December 15, 2016. However, the FASB has tentatively decided to defer the effective date of this new revenue standard to reporting periods beginning after December 31, 2017. The effects of this standard on our financial position, results of operations and cash flows are not yet known.

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Investments - Cost and Fair Value of Debt Investments Based on Maturities (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Available-for-sale Securities, Debt Maturities [Abstract]
Due in one year or less, Amortized Costs	$ 95,682	$ 70,180
Due within two years, Amortized Costs	91,336	62,184
Total, Amortized Costs	187,018	132,364
Due in one year or less, Fair Value	95,667	70,169
Due within two years, Fair Value	91,243	61,948
Total, Fair Value	$ 186,910	$ 132,117

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Long Term Debt - Components of Long-term Debt (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Long-term debt	$ 539,640	$ 543,000
5.25% Senior Notes due March 15, 2019 [Member]
Debt Instrument [Line Items]
Long-term debt	500,000	500,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Long-term debt	$ 39,640	$ 43,000

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Investment in Variable Interest Entity - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Variable Interest Entity [Line Items]
Earnings (loss) in equity of unconsolidated affiliate	$ (100,000)	$ (100,000)
Trade receivables	2,800,000		2,800,000
Accrued and other current liabilities	30,085,000		52,812,000
Other assets	0		0
PHIC's date of incorporation	May 26, 2011
PHI Century Limited [Member]
Variable Interest Entity [Line Items]
Investment in the common stock	49.00%
Accrued and other current liabilities	$ 1,000,000		$ 900,000

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Current Assets:
Cash	$ 3,623	$ 6,270
Short-term investments	189,480	185,244
Accounts receivable - net
Trade	157,857	178,833
Other	2,370	1,928
Inventories of spare parts - net	71,452	73,793
Prepaid expenses	11,075	9,314
Deferred income taxes	9,914	9,915
Income taxes receivable	1,226	1,227
Total current assets	446,997	466,524
Property and equipment - net	917,342	877,818
Restricted investments	15,485	15,485
Other assets	15,095	16,253
Total assets	1,394,919	1,376,080
Current Liabilities:
Accounts payable	56,214	27,700
Accrued and other current liabilities	30,085	52,812
Total current liabilities	86,299	80,512
Long-term debt	539,640	543,000
Deferred income taxes	146,865	140,532
Other long-term liabilities	15,064	14,968
Commitments and contingencies (Note 9)
Shareholders' Equity:
Additional paid-in capital	301,170	301,533
Treasury stock	(135)
Accumulated other comprehensive loss	(102)	(211)
Retained earnings	304,560	294,197
Total shareholders' equity	607,051	597,068
Total liabilities and shareholders' equity	1,394,919	1,376,080
Voting Common Stock [Member]
Shareholders' Equity:
Common stock	291	291
Total shareholders' equity	291	291
Non-Voting Common Stock [Member]
Shareholders' Equity:
Common stock	1,267	1,258
Total shareholders' equity	$ 1,267	$ 1,258

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Stock-Based Compensation - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Time-based Restricted Stock Units [Member]
Stock Based Compensation [Line Items]
Restricted stock units awarded to managers	18,930	20,364
Performance-based Restricted Stock Units [Member]
Stock Based Compensation [Line Items]
Restricted stock units awarded to managers	151,566

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Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (USD $) In Thousands	Total	Non-Voting Common Stock [Member]	Voting Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]
Balance at Dec. 31, 2013	$ 559,965	$ 1,257	$ 291	$ 296,932		$ (24)	$ 261,509
Balance, Shares at Dec. 31, 2013		12,568	2,906
Net earnings (loss)	(5,321)						(5,321)
Unrealized gain on short-term investments	8					8
Amortization of unearned stock-based compensation	688			688
Issuance of non-voting common stock (upon vesting of restricted stock units)	1	1
Issuance of non-voting common stock (upon vesting of restricted stock units), shares		11
Cancellation of restricted non-voting stock units for tax withholdings on vested shares	(176)			(176)
Cancellation of restricted non-voting stock units for tax withholdings on vested shares, shares		(4)
Balance at Mar. 31, 2014	555,165	1,258	291	297,444		(16)	256,188
Balance, Shares at Mar. 31, 2014		12,575	2,906
Balance at Dec. 31, 2014	597,068	1,258	291	301,533		(211)	294,197
Balance, Shares at Dec. 31, 2014		12,576	2,906
Net earnings (loss)	10,363						10,363
Unrealized gain on short-term investments	85					85
Amortization of unearned stock-based compensation	1,719			1,719
Issuance of non-voting common stock (upon vesting of restricted stock units)	16	16
Issuance of non-voting common stock (upon vesting of restricted stock units), shares		164
Cancellation of restricted non-voting stock units for tax withholdings on vested shares	(2,089)	(7)		(2,082)
Cancellation of restricted non-voting stock units for tax withholdings on vested shares, shares		(66)
Purchase of treasury stock	(135)				(135)
Other	24					24
Balance at Mar. 31, 2015	$ 607,051	$ 1,267	$ 291	$ 301,170	$ (135)	$ (102)	$ 304,560
Balance, Shares at Mar. 31, 2015		12,674	2,906

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Investments - Investments in Continuous Unrealized Loss Position for More Than Twelve Months (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Fair Value	$ 1,503
Unrealized Losses	(1)
Corporate bonds and notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value	1,503
Unrealized Losses	$ (1)

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Investments (Tables)

3 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Components of Investments

Investments consisted of the following as of March 31, 2015:

			Unrealized		Unrealized			Fair
	Cost Basis		Gains		Losses			Value
	(Thousands of dollars)
Investments:
Money market mutual funds	$	18,055	$	—	$	—		$	18,055
U.S. Government agencies		8,007		6		(1	)		8,012
Municipal bonds and notes		1,500		1		—			1,501
Corporate bonds and notes		177,511		23		(137	)		177,397
Subtotal		205,073		30		(138	)		204,965
Deferred compensation plan assets included in other assets		2,475		—		—			2,475
Total	$	207,548	$	30	$	(138	)	$	207,440

Investments consisted of the following as of December 31, 2014:

			Unrealized		Unrealized			Fair
	Cost Basis		Gains		Losses			Value
	(Thousands of dollars)
Investments:
Money market mutual funds	$	68,612	$	—	$	—		$	68,612
Municipal bonds and notes		1,500		2		—			1,502
Corporate bonds and notes		130,864		19		(268	)		130,615
Subtotal		200,976		21		(268	)		200,729
Deferred compensation plan assets included in other assets		2,386		—		—			2,386
Total	$	203,362	$	21	$	(268	)	$	203,115

Cost and Fair Value of Debt Investments Based on Maturities

The following table presents the cost and fair value of our debt investments based on maturities as of:

	March 31, 2015				December 31, 2014
	Amortized		Fair		Amortized		Fair
	Costs		Value		Costs		Value
	(Thousands of dollars)
Due in one year or less	$	95,682	$	95,667	$	70,180	$	70,169
Due within two years		91,336		91,243		62,184		61,948
Total	$	187,018	$	186,910	$	132,364	$	132,117

Average Coupon Rate Percentage and Average Days to Maturity of Debt

The following table presents the average coupon rate percentage and the average days to maturity of our debt investments as of:

	March 31, 2015				December 31, 2014
	Average		Average		Average		Average
	Coupon		Days To		Coupon		Days To
	Rate (%)		Maturity		Rate (%)		Maturity
U.S. Government agencies		0.528		44		0.000		0
Municipal bonds and notes		0.869		700		0.528		134
Corporate bonds and notes		1.814		350		1.828		348

Investments in Continuous Unrealized Loss Position for Less Than Twelve Months

The following table presents the fair value and unrealized losses related to our investments that have been in a continuous unrealized loss position for less than twelve months as of March 31,

	2015					2014
			Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses
	(Thousands of dollars)
U.S. Government agencies	$	1,999	$	(1	)	$	—	$	—
Corporate bonds and notes		130,231		(136	)		30,332		(30	)
Total	$	132,230	$	(137	)	$	30,332	$	(30	)

Investments in Continuous Unrealized Loss Position for More Than Twelve Months

The following table presents the fair value and unrealized losses related to our investments that have been in a continuous unrealized loss position for more than twelve months as of March 31,

	2015					2014
			Unrealized					Unrealized
	Fair Value		Losses			Fair Value		Losses
	(Thousands of dollars)
Corporate bonds and notes	$	1,503	$	(1	)	$	—	$	—
Total	$	1,503	$	(1	)	$	—	$	—

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Revenue Recognition and Valuation Accounts - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Valuation and Qualifying Accounts [Abstract]
Allowance for doubtful accounts	$ 1.4		$ 1.4
Allowance for contractual discounts	98.3		96.6
Allowance for uncompensated care	36.3		41.9
Value of uncompensated care to patients	2.7	2.4
Estimated cost of charity services	0.6	0.6
Contractual period of services	3 years
Contract termination period	90 days
Termination fee	13.5
Inventory valuation reserves	$ 13.7		$ 13.5

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Summary of Valuation of Investments and Financial Instruments Pricing Levels

The following table summarizes the valuation of our investments and financial instruments by the above pricing levels as of the valuation dates listed:

			March 31, 2015
	Total		(Level 1)		(Level 2)
	(Thousands of dollars)
Investments:
Money market mutual funds	$	18,055	$	18,055	$	—
U.S. Government agencies		8,012		—		8,012
Municipal bonds and notes		1,501		—		1,501
Corporate bonds and notes		177,397		—		177,397
		204,965		18,055		186,910
Deferred compensation plan assets		2,475		2,475		—
Total	$	207,440	$	20,530	$	186,910

			December 31, 2014
	Total		(Level 1)		(Level 2)
	(Thousands of dollars)
Investments:
Money Market Mutual Funds	$	68,612	$	68,612	$	—
Municipal bonds and notes		1,502		—		1,502
Corporate bonds and notes		130,615		—		130,615
		200,729		68,612		132,117
Deferred compensation plan assets		2,386		2,386		—
Total	$	203,115	$	70,998	$	132,117

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Operating activities:
Net earnings (loss)	$ 10,363	$ (5,321)
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	18,151	11,363
Deferred income taxes	6,279	(4,559)
(Gain) loss on asset dispositions	(7)	1,073
Equity in loss of unconsolidated affiliate	68	41
Loss on debt extinguishment		29,216
Inventory valuation reserves	562
Changes in operating assets and liabilities	(5,498)	(25,691)
Net cash provided by operating activities	29,918	6,122
Investing activities:
Purchase of property and equipment	(22,115)	(38,746)
Proceeds from asset dispositions		2,994
Purchase of short-term investments	(190,243)	(140,551)
Proceeds from sale of short-term investments	185,426	84,692
Refund on deposits on aircraft		3,926
Payments of deposits on aircraft	(66)	(6,499)
Net cash used in investing activities	(26,998)	(94,184)
Financing activities:
Proceeds from issuance of Senior Notes due 2019		500,000
Repayment of Senior Notes due 2018		(292,571)
Premium and costs to retire debt early		(26,132)
Debt issuance costs		(5,657)
Proceeds from line of credit	77,740	95,500
Payments on line of credit	(81,100)	(174,500)
Repurchase of common stock	(2,207)	(176)
Net cash (used in) provided by financing activities	(5,567)	96,464
(Decrease) increase in cash	(2,647)	8,402
Cash, beginning of period	6,270	934
Cash, end of period	3,623	9,336
Cash paid during the period for:
Interest	13,453	11,280
Income taxes	3,061	13
Noncash investing activities:
Other current liabilities and accrued payables related to purchase of property and equipment	$ 28,994	$ 24,717

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Voting Common Stock [Member]
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	12,500,000	12,500,000
Common stock, shares issued	2,905,757	2,905,757
Common stock, shares outstanding	2,905,757	2,905,757
Non-Voting Common Stock [Member]
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued	12,674,653	12,576,916
Common stock, shares outstanding	12,674,653	12,576,916

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Segment Information

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segment Information

10. SEGMENT INFORMATION

PHI is primarily a provider of helicopter transport services, including helicopter maintenance and repair services. We use a combination of factors to identify reportable segments as required by Accounting Standards Codification 280, “Segment Reporting.” The overriding determination of our segments is based on how the chief operating decision-maker, our Chairman of the Board and Chief Executive Officer, evaluates our results of operations. The underlying factors include customer bases, types of service, operational management, physical locations, and underlying economic characteristics of the types of work we perform.

A segment’s operating profit is its operating revenues less its direct expenses and selling, general and administrative expenses. Each segment has a portion of our total selling, general and administrative expenses that is charged directly to the segment and a small portion that is allocated to that segment. Allocated selling, general and administrative expenses are based primarily on total segment direct expenses as a percentage of total direct expenses. Unallocated overhead consists primarily of corporate selling, general and administrative expenses that we do not allocate to the reportable segments.

Oil and Gas Segment. Our Oil and Gas segment, headquartered in Lafayette, Louisiana, provides helicopter services primarily for the major integrated and independent oil and gas production companies transporting personnel and/or equipment to offshore platforms in the Gulf of Mexico. Our customers include Shell Oil Company, BP America Production Company, ExxonMobil Production Co., and ConocoPhillips Company, with whom we have worked for 30 or more years, and ENI Petroleum, with whom we have worked for more than 15 years. At March 31, 2015, we operated 168 aircraft in this segment.

Operating revenue from our Oil and Gas segment is derived mainly from contracts that include a fixed monthly rate for a particular model of aircraft, plus a variable rate for flight time. A small portion of our Oil and Gas segment revenue is derived from providing services on an “ad hoc” basis. Operating costs for our Oil and Gas segment are primarily aircraft operations costs, including costs for pilots and maintenance personnel. Total fuel cost is included in direct expense and any reimbursement of a portion of these costs above a contracted per-gallon amount is included in revenue. For the quarters ended March 31, 2015 and 2014, approximately 59% and 64% of our total operating revenues were generated by our Oil and Gas operations, respectively.

Air Medical Segment. Our Air Medical operations are headquartered in Phoenix, Arizona, where we maintain significant separate facilities and administrative staff dedicated to this segment. Those costs are charged directly to our Air Medical segment.

As of March 31, 2015, 100 aircraft were assigned to our Air Medical segment. At such date, we operated approximately 91 aircraft domestically, providing air medical transportation services for hospitals and emergency service agencies in 18 states at 70 separate locations. We also provide air medical transportation services for a customer overseas. For this program, we have deployed nine aircraft at five locations, with eight aircraft generating revenues as of March 31, 2015. Our Air Medical segment operates primarily under the independent provider model and, to a lesser extent, under the traditional provider model. Under the independent provider model, we have no contracts and no fixed revenue stream and compete for transport referrals on a daily basis with other independent operators in the area. Under the traditional provider model, we contract directly with the customer to provide their transportation services, with the contracts typically awarded through competitive bidding. For the quarters ended March 31, 2015 and 2014, approximately 35% and 34% of our total operating revenues were generated by our Air Medical operations, respectively.

As an independent provider, we bill for our services on the basis of a flat rate plus a variable charge per patient-loaded mile, regardless of aircraft model, and are typically compensated by private insurance, Medicaid, or Medicare or directly by the transported patient. As further described in Note 3, revenues are recorded net of contractual allowances under agreements with third party payors and estimated uncompensated care at the time the services are provided. Contractual allowances and uncompensated care are estimated based on historical collection experience by payor category (consisting mainly of insurance, Medicaid, Medicare, and self-pay). Estimates regarding the payor mix and changes in reimbursement rates are the factors most subject to sensitivity and variability in calculating our allowances. We compute a historical payment analysis of accounts fully closed, by category.

Provisions for contractual discounts and estimated uncompensated care for Air Medical operations as a percentage of gross segment billings for the following periods were as follows:

	Revenue
	Quarter Ended
	March 31,
	2015			2014
Gross Air Medical segment billings		100	%		100	%
Provision for contractual discounts		74	%		69	%
Provision for uncompensated care		0	%		3	%

These percentages are affected by rate increases and changes in the number of transports by payor mix.

Net reimbursement per transport from commercial payors generally increases when a rate increase is implemented. Net reimbursement from certain commercial payors, as well as Medicare and Medicaid, does not increase proportionately with rate increases.

Net revenue attributable to Insurance, Medicare, Medicaid, and Self-Pay as a percentage of net Air Medical revenues are as follows:

	Quarter Ended
	March 31,
	2015			2014
Insurance		75	%		70	%
Medicare		17	%		20	%
Medicaid		8	%		8	%
Self-Pay		0	%		2	%

We also have a limited number of contracts with hospitals under which we receive a fixed monthly rate for aircraft availability and an hourly rate for flight time. Those contracts generated approximately 42% of the segment’s revenues for the quarters ended March 31, 2015 and 2014.

Technical Services Segment. Our Technical Services operations provide maintenance and repairs for our existing customers that own their aircraft. These services are generally labor intensive with higher operating margins as compared to other segments. Depending on when we commence and complete special projects for customers, our results for this segment can vary significantly from period to period, although these variances typically have a limited impact on our consolidated operating results. The Technical Services segment also conducts flight operations for the National Science Foundation in Antarctica, which are typically conducted in the first and fourth quarters each year.

For the three months ended March 31, 2015 and 2014, approximately 6% and 2%, respectively, of our total operating revenues were generated by our Technical Services operations.

Summarized financial information concerning our reportable operating segments for the quarters ended March 31, 2015 and 2014 is as follows:

	Quarter Ended March 31,
	2015			2014
	(Thousands of dollars)
Segment operating revenues
Oil and Gas	$	120,396		$	125,975
Air Medical		72,385			67,952
Technical Services		11,416			3,144
Total operating revenues		204,197			197,071
Segment direct expenses (1)
Oil and Gas (2)		100,331			97,374
Air Medical		60,039			59,379
Technical Services		8,905			1,941
Total segment direct expenses		169,275			158,694
Segment selling, general and administrative expenses
Oil and Gas		1,159			1,034
Air Medical		2,629			2,153
Technical Services		114			2
Total selling, general and administrative expenses		3,902			3,189
Total direct and selling, general and administrative expenses		173,177			161,883
Net segment profit
Oil and Gas		18,906			27,567
Air Medical		9,717			6,420
Technical Services		2,397			1,201
Total net segment profit		31,020			35,188
Other, net (3)		469			(982	)
Unallocated selling, general and administrative costs (1)		(7,335	)		(6,139	)
Interest expense		(7,170	)		(7,364	)
Loss on debt extinguishment		—			(29,216	)
Earnings (loss) before income taxes	$	16,984		$	(8,513	)

(1) Included in segment direct expenses and unallocated selling, general, and administrative costs are the depreciation and amortization expense amounts below:

	Depreciation and Amortization Expense
	Quarter Ended March 31,
	2015		2014
Segment Direct Expense:
Oil and Gas	$	11,280	$	6,853
Air Medical		4,097		3,076
Technical Services		128		87
Total	$	15,505	$	10,016
Unallocated SG&A	$	2,646	$	1,347

(2) Includes Equity in loss of unconsolidated affiliate.

(3) Consists of gains on disposition of property and equipment, and other income.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2015	May 01, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Trading Symbol	PHII
Entity Registrant Name	PHI INC
Entity Central Index Key	0000350403
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Voting Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		2,905,757
Non-Voting Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		12,674,653

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Investment in Variable Interest Entity

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Investment in Variable Interest Entity

11. INVESTMENT IN VARIABLE INTEREST ENTITY

We account for our investment in our West African operations as a variable interest entity, which is defined as an entity that either (a) has insufficient equity to permit the entity to finance its operations without additional subordinated financial support or (b) has equity investors who lack the characteristics of a controlling financial interest. As of March 31, 2015, we had a 49% investment in the common stock of PHI Century Limited (“PHIC”), a Ghanaian entity. We acquired our 49% interest on May 26, 2011, PHIC’s date of incorporation. The purpose of PHIC is to provide oil and gas flight services in Ghana and the West African region. For the quarter ended March 31, 2015 and 2014, we recorded a loss in equity of unconsolidated affiliate less than $0.1 million, relative to our 49% equity ownership, respectively. In addition, we had $2.8 million of trade receivables and $1.0 million of accrued liabilities as of March 31, 2015 from PHIC. We had $2.8 million of trade receivables and a $0.9 million of accrued liabilities as of December 31, 2014. The trade receivables are included in Accounts receivable—trade on our Condensed Consolidated Balance Sheets. The accrued liabilities are included in Accrued and other current liabilities on our Condensed Consolidated Balance Sheets. Our investment in the common stock of PHIC is included in Other assets on our Condensed Consolidated Balance Sheets and was $-0- million at March 31, 2015 and December 31, 2014.

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Condensed Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Operating revenues, net	$ 204,197	$ 197,071
Expenses:
Direct expenses	169,207	158,653
Selling, general and administrative expenses	11,237	9,328
Total operating expenses	180,444	167,981
(Gain) loss on asset dispositions	(7)	1,073
Equity in loss of unconsolidated affiliate	68	41
Operating income	23,692	27,976
Interest expense	7,170	7,364
Loss on debt extinguishment		29,216
Other income, net	(462)	(91)
Total expenses	6,708	36,489
Earnings (loss) before income taxes	16,984	(8,513)
Income tax expense (benefit)	6,621	(3,192)
Net earnings (loss)	$ 10,363	$ (5,321)
Weighted average shares outstanding:
Basic	15,579	15,480
Diluted	15,662	15,480
Net earnings (loss) per share:
Basic	$ 0.67	$ (0.34)
Diluted	$ 0.66	$ (0.34)

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Long Term Debt

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Long Term Debt

5. LONG-TERM DEBT

The components of long-term debt as of the dates indicated below were as follows:

	March 31,		December 31,
	2015		2014
	(Thousands of dollars)
Senior Notes dated March 17, 2014, interest only payable semi-annually at 5.25%, maturing March 15, 2019	$	500,000	$	500,000
Revolving Credit Facility due October 1, 2016 with a group of commercial banks, interest payable at variable rates		39,640		43,000
Total long-term debt	$	539,640	$	543,000

Senior Notes - During the quarter ended March 31, 2014, we issued $500 million of 5.25% Senior Notes due March 2019. Proceeds were approximately $494 million, net of fees and expenses, and a portion of these proceeds were used to retire on March 17, 2014 $292.6 million of our $300 million previously outstanding 8.625% Senior Notes pursuant to a tender offer, at a total cost of $329.4 million including the tender premium and accrued interest. We redeemed the remaining $7.4 million of 8.625% Senior Notes on April 16, 2014, at a redemption price of 108.3% of the face amount plus accrued interest. As a result of our repurchase of 8.625% Senior Notes in March 2014, we recorded a pretax charge of $29.2 million in the quarter ended March 31, 2014, which consisted of a $26.1 million tender premium and $3.1 million of unamortized issuance costs. We recorded a pre-tax charge of $0.6 million in the second quarter of 2014 associated with our redemption on April 16, 2014 of the remaining 8.625% Senior Notes not previously tendered. Our repurchase of 8.625% Senior Notes in March 2014 and April 2014 resulted in deferred tax benefits of $11.6 million.

Our 5.25% Senior Notes (the “2019 Notes”) will mature on March 15, 2019, are unconditionally guaranteed on a senior basis by the each of PHI’s domestic subsidiaries, and are the general, unsecured obligations of PHI and the guarantors. Interest is payable semi-annually on March 15 and September 15 of each year, beginning September 15, 2014. PHI has the option to redeem some or all of the 2019 Notes at any time on or after March 15, 2016 at specified redemption prices. Prior to that time, PHI has the option to redeem some or all of the 2019 Notes pursuant to certain “make-whole” provisions or to redeem a portion of the 2019 Notes with the net proceeds of certain specified equity offerings. The indenture governing the 2019 Notes (the “2019 Indenture”) contains, among other things, certain restrictive covenants, including limitations on incurring indebtedness, creating liens, selling assets and entering into certain transactions with affiliates. The covenants also limit PHI’s ability to, among other things, pay cash dividends on common stock, repurchase or redeem common or preferred equity, prepay subordinated debt and make certain investments. Upon the occurrence of a “Change in Control Repurchase Event” (as defined in the 2019 Indenture), PHI will be required, unless it has previously elected to redeem the 2019 Notes as described above, to make an offer to purchase the 2019 Notes for a cash price equal to 101% of their principal amount.

Revolving Credit Facility – We have an amended and restated revolving credit facility that matures on October 1, 2016. Under this facility, we can borrow up to $150 million at floating interest rates based on either the London Interbank Offered Rate plus 225 basis points or the prime rate (each as defined in our amended and restated revolving credit facility), at our option. Our revolving credit facility includes usual and customary covenants and events of default for credit facilities of its type. Our ability to borrow under the credit facility is conditioned upon our continued compliance with such covenants, including, among others, (i) covenants that restrict our ability to engage in certain asset sales, mergers or other fundamental changes, to incur liens or to engage in certain other transactions or activities and (ii) financial covenants that stipulate that PHI will maintain a consolidated working capital ratio of at least 2 to 1, a funded debt to consolidated net worth ratio not greater than 1.5 to 1, a fixed charge coverage ratio of at least 1.1 to 1, and consolidated net worth of at least $450 million (with all such terms or amounts as defined in or determined under the amended and restated revolving credit facility).

Other—We maintain a separate letter of credit facility that had $15.5 million in letters of credit outstanding at March 31, 2015 and December 31, 2014.

Cash paid to fund interest expense was $13.5 million for the quarter ended March 31, 2015 and $11.3 million for the quarter ended March 31, 2014. Included in the 2014 interest expense was $10.7 million of accrued interest expense paid for the 8.625% Senior Notes that we purchased on March 17, 2014 and April 16, 2014 in the transactions described above.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

4. FAIR VALUE MEASUREMENTS

Accounting standards require that assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs that are not corroborated by market data.

The following table summarizes the valuation of our investments and financial instruments by the above pricing levels as of the valuation dates listed:

			March 31, 2015
	Total		(Level 1)		(Level 2)
	(Thousands of dollars)
Investments:
Money market mutual funds	$	18,055	$	18,055	$	—
U.S. Government agencies		8,012		—		8,012
Municipal bonds and notes		1,501		—		1,501
Corporate bonds and notes		177,397		—		177,397
		204,965		18,055		186,910
Deferred compensation plan assets		2,475		2,475		—
Total	$	207,440	$	20,530	$	186,910

			December 31, 2014
	Total		(Level 1)		(Level 2)
	(Thousands of dollars)
Investments:
Money Market Mutual Funds	$	68,612	$	68,612	$	—
Municipal bonds and notes		1,502		—		1,502
Corporate bonds and notes		130,615		—		130,615
		200,729		68,612		132,117
Deferred compensation plan assets		2,386		2,386		—
Total	$	203,115	$	70,998	$	132,117

We hold our short-term investments in an investment fund consisting of high quality money market instruments of governmental and private issuers, which is classified as a short-term investment. Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets. These items are traded with sufficient frequency and volume to provide pricing on an ongoing basis. The fair values of the shares of these funds are based on observable market prices, and therefore, have been categorized in Level 1 in the fair value hierarchy. Level 2 inputs reflect quoted prices for identical assets or liabilities that are not actively traded. These items may not be traded daily; examples include corporate bonds and U.S. government agencies debt. There have been no reclassifications of assets between Level 1 and Level 2 investments during the periods covered by the financial statements included in this report. We hold no Level 3 investments. Investments included in other assets, which relate to our liability under the Officers’ Deferred Compensation Plan, consist mainly of multiple investment funds that are highly liquid and diversified.

Cash, accounts receivable, accounts payable and accrued liabilities, and our revolving credit facility debt all had fair values approximating their carrying amounts at March 31, 2015 and December 31, 2014. Our determination of the estimated fair value of our Senior Notes and our revolving credit facility debt is derived using Level 2 inputs, including quoted market indications of similar publicly-traded debt. The fair value of our Senior Notes, based on quoted market prices, was $464.7 million and $425.6 million at March 31, 2015 and December 31, 2014, respectively.

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Revenue Recognition and Valuation Accounts (Tables)

3 Months Ended

Mar. 31, 2015

Text Block [Abstract]

Schedule of Allowance for Contractual Discounts and Estimated Uncompensated Care as a Percentage of Gross Segment Accounts Receivable

The allowance for contractual discounts and estimated uncompensated care (expressed as a percentage of gross segment accounts receivable) was as follows:

	Revenue
	Quarter Ended March 31, 2015			Year Ended December 31, 2014
Allowance for Contractual Discounts		57	%		53	%
Allowance for Uncompensated Care		21	%		23	%

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Other Comprehensive Income

3 Months Ended

Mar. 31, 2015

Equity [Abstract]

Other Comprehensive Income

12. OTHER COMPREHENSIVE INCOME

Amounts reclassified from Accumulated other comprehensive income are not material and, therefore, not presented separately in the Condensed Consolidated Statements of Comprehensive Income.

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Asset Disposals and Impairments

3 Months Ended

Mar. 31, 2015

Text Block [Abstract]

Asset Disposals and Impairments

8. ASSET DISPOSALS AND IMPAIRMENTS

There were no sales or disposals of aircraft during the first quarter of 2015, but we did transact minor sales and disposals of various ancillary equipment.

During the first quarter of 2014, we sold two light aircraft previously utilized in our Air Medical segment and two fixed wing aircraft utilized in our Oil and Gas segment. Cash proceeds totaled $3.0 million, resulting in a loss on the sale of these assets of $1.1 million. These aircraft no longer met our strategic needs.

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Earnings Per Share

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Share

6. EARNINGS PER SHARE

The components of basic and diluted earnings per share for the quarter ended March 31, are as follows:

	2015		2014
	(Thousands of shares)
Weighted average outstanding shares of common stock, basic		15,579		15,480
Dilutive effect of restricted stock units		83		—
Weighted average outstanding shares of common stock, diluted		15,662		15,480

Restricted stock units were excluded from the “Weighted average outstanding shares of common stock, diluted” for the three months ended March 31, 2014 because the net loss with respect to such shares for such quarter is anti-dilutive.

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

7. STOCK-BASED COMPENSATION

We recognize the cost of employee compensation received in the form of equity instruments based on the grant date fair value of those awards. The table below sets forth the total amount of stock-based compensation expense for the three months ended March 31, 2015 and 2014.

	Three Months Ended
	March 31,
	2015		2014
	(Thousands of dollars)
Stock-based compensation expense:
Time-based restricted stock units	$	637	$	127
Performance-based restricted stock units		1,082		561
Total stock-based compensation expense	$	1,719	$	688

During the quarter ended March 31, 2015, we awarded 18,930 time-based and 151,566 performance-based restricted stock units to managerial employees. During the quarter ended March 31, 2014, we awarded 20,364 time-based restricted stock units to managerial employees.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

9. COMMITMENTS AND CONTINGENCIES

Commitments – In 2014, we exercised our option to purchase six additional new heavy helicopters for our Oil and Gas segment with deliveries scheduled in 2015 and 2016. One aircraft was delivered in the first quarter of 2015.

Total aircraft deposits of $7.4 million were included in Other Assets as of March 31, 2015. This amount represents deposits paid by us as required under aircraft purchase contracts.

On January 2, 2015, we purchased one heavy aircraft off lease pursuant to a purchase option in the lease contract for an aggregate purchase price of $17.7 million.

As of March 31, 2015, we had options to purchase various aircraft that we currently operate under lease agreements with the aircraft owners. These options will become exercisable at various dates in 2016 through 2019. The aggregate option purchase prices are $67.8 million in 2016, $55.7 million in 2017, $127.0 million in 2018, and $150.4 million in 2019. Subject to market conditions and available cash, we currently intend to exercise these options as they become exercisable.

Environmental Matters – We have recorded an aggregate estimated probable liability of $0.2 million as of March 31, 2015 for environmental response costs. We have conducted environmental surveys of our former Lafayette facility located at the Lafayette Regional Airport, which we vacated in 2001, and have determined that limited soil and groundwater contamination exists at two parcels of land at the former facility. We submitted an assessment report for both sites in 2003, updated it in 2006, and received approvals of our remediation plan from the Louisiana Department of Environmental Quality (“LDEQ”) and Louisiana Department of Natural Resources in 2010 and 2011, respectively. Since such time, we have installed groundwater monitoring wells at these sites and furnished periodic reports on contamination levels to the LDEQ. Pursuant to our agreement with the LDEQ, we are currently providing samples twice a year for both sites. Based upon our working relationship and agreements with the LDEQ and the results of our ongoing site monitoring, we believe, based on current circumstances, that our ultimate remediation costs for these sites will not be material to our consolidated financial position, results of operations, or cash flows.

Legal Matters – We are named as a defendant in various legal actions that have arisen in the ordinary course of business and have not been finally adjudicated. In the opinion of management, after considering available defenses and any insurance coverage or indemnification rights, the amount of the liability with respect to these actions will not have a material effect on the Company’s consolidated financial position, results of operations, or cash flows.

Operating Leases – We lease certain aircraft, facilities, and equipment used in our operations. The related lease agreements, which include both non-cancelable and month-to-month terms, generally provide for fixed monthly rentals, and certain real estate leases also include renewal options. We generally pay all insurance, taxes, and maintenance expenses associated with these leases. All aircraft leases contain purchase options exercisable by us at certain dates in the lease agreements.

At March 31, 2015, we had approximately $305.6 million in aggregate commitments under operating leases of which approximately $38.3 million is payable through December 31, 2015. The total lease commitments include $290.8 million for aircraft and $14.8 million for facility lease commitments.

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Investments - Investments in Continuous Unrealized Loss Position for Less Than Twelve Months (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Fair Value	$ 132,230	$ 30,332
Unrealized Losses	(137)	(30)
US Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value	1,999
Unrealized Losses	(1)
Corporate bonds and notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value	130,231	30,332
Unrealized Losses	$ (136)	$ (30)

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Segment Information - Schedule of Financial Information Concerning Reportable Operating Segments (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Segment Reporting Information [Line Items]
Total operating revenues	$ 204,197		$ 197,071
Total segment selling, general and administrative expenses	11,237		9,328
Total net segment profit	23,692		27,976
Interest expense	(7,170)		(7,364)
Loss on debt extinguishment			(29,216)
Earnings (loss) before income taxes	16,984		(8,513)
Reportable Operating Segments [Member]
Segment Reporting Information [Line Items]
Total operating revenues	204,197		197,071
Total segment direct expenses	169,275	[1]	158,694	[1]
Total segment selling, general and administrative expenses	3,902		3,189
Total direct and selling, general and administrative expenses	173,177		161,883
Total net segment profit	31,020		35,188
Reportable Operating Segments [Member] | Oil and Gas [Member]
Segment Reporting Information [Line Items]
Total operating revenues	120,396		125,975
Total segment direct expenses	100,331	[1],[2]	97,374	[1],[2]
Total segment selling, general and administrative expenses	1,159		1,034
Total net segment profit	18,906		27,567
Reportable Operating Segments [Member] | Air Medical [Member]
Segment Reporting Information [Line Items]
Total operating revenues	72,385		67,952
Total segment direct expenses	60,039	[1]	59,379	[1]
Total segment selling, general and administrative expenses	2,629		2,153
Total net segment profit	9,717		6,420
Reportable Operating Segments [Member] | Technical Services [Member]
Segment Reporting Information [Line Items]
Total operating revenues	11,416		3,144
Total segment direct expenses	8,905	[1]	1,941	[1]
Total segment selling, general and administrative expenses	114		2
Total net segment profit	2,397		1,201
Other, net [Member]
Segment Reporting Information [Line Items]
Other, net	469	[3]	(982)	[3]
Unallocated Selling, General and Administrative Expenses [Member]
Segment Reporting Information [Line Items]
Unallocated selling, general and administrative costs	$ (7,335)	[1]	$ (6,139)	[1]

[1] Included in segment direct expenses and unallocated selling, general, and administrative costs are the depreciation and amortization expense amounts below:

[2] Includes Equity in loss of unconsolidated affiliate.

[3] Consists of gains on disposition of property and equipment, and other income.

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Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Accounting Policies

Accounting Policies—In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers, which provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. The standard is effective for public entities for annual and interim periods beginning after December 15, 2016. However, the FASB has tentatively decided to defer the effective date of this new revenue standard to reporting periods beginning after December 31, 2017. The effects of this standard on our financial position, results of operations and cash flows are not yet known.

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Components of Basic and Diluted Earnings Per Share

The components of basic and diluted earnings per share for the quarter ended March 31, are as follows:

	2015		2014
	(Thousands of shares)
Weighted average outstanding shares of common stock, basic		15,579		15,480
Dilutive effect of restricted stock units		83		—
Weighted average outstanding shares of common stock, diluted		15,662		15,480

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Segment Information - Schedule of Provisions for Contractual Discounts and Estimated Uncompensated Care as a Percentage of Total Segment Billings (Detail) (Air Medical [Member], Sales Revenue, Net [Member])	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Air Medical [Member] | Sales Revenue, Net [Member]
Provisions For Contractual Discounts And Estimated Uncompensated Care [Line Items]
Gross Air Medical segment billings	100.00%	100.00%
Provision for contractual discounts	74.00%	69.00%
Provision for uncompensated care	0.00%	3.00%

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Long Term Debt - Components of Long-term Debt (Parenthetical) (Detail)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Debt Instrument [Line Items]
Interest rate on Senior Notes	5.25%
5.25% Senior Notes due March 15, 2019 [Member]
Debt Instrument [Line Items]
Interest rate on Senior Notes	5.25%	5.25%
Senior Notes payable periods	Mar. 15, 2019

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Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
Net earnings (loss)	$ 10,363	$ (5,321)
Unrealized gain on short-term investments	139	14
Other unrealized gain	24
Changes in pension plan assets and benefit obligations		(1)
Tax effect of preceding losses, gains or changes	(55)	(5)
Total comprehensive income (loss)	$ 10,471	$ (5,313)

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Revenue Recognition and Valuation Accounts

3 Months Ended

Mar. 31, 2015

Text Block [Abstract]

Revenue Recognition and Valuation Accounts

3. REVENUE RECOGNITION AND VALUATION ACCOUNTS

We have established an allowance for doubtful accounts based upon factors relating to the credit risk of specific customers, current market conditions, and other information. Our allowance for doubtful accounts was approximately $1.4 million at March 31, 2015 and December 31, 2014.

Revenues related to flights generated by our Air Medical segment are recorded net of contractual allowances under agreements with third party payors and estimated uncompensated care when the services are provided. The allowance for contractual discounts was $98.3 million and $96.6 million as of March 31, 2015 and December 31, 2014, respectively. The allowance for uncompensated care was $36.3 million and $41.9 million as of as March 31, 2015 and December 31, 2014, respectively.

Included in the allowance for uncompensated care listed above is the value of services to patients who are unable to pay when it is determined that they qualify for charity care. The value of these services was $2.7 million and $2.4 million for the quarters ended March 31, 2015 and 2014, respectively. The estimated cost of providing charity services was $0.6 million for the quarters ended March 31, 2015 and 2014. The estimated costs of providing charity services are based on a calculation that applies a ratio of costs to the charges for uncompensated charity care. The ratio of costs to charges is based on our Air Medical segment’s total expenses divided by gross patient service revenue.

The allowance for contractual discounts and estimated uncompensated care (expressed as a percentage of gross segment accounts receivable) was as follows:

	Revenue
	Quarter Ended March 31, 2015			Year Ended December 31, 2014
Allowance for Contractual Discounts		57	%		53	%
Allowance for Uncompensated Care		21	%		23	%

Our contract in the Middle East requires us to provide multiple services, including helicopter leasing, flight services for helicopter emergency medical service operations, aircraft maintenance, provision of spare parts, insurance coverage for the customer-owned aircraft, training services, and base construction. All services are delivered and earned monthly over a three-year contractual period which began on September 29, 2012. The customer may terminate the contract prior to the end of the contract term by giving ninety days advance notice and paying an early termination fee of $13.5 million. Each of the major services mentioned above qualify as separate units of accounting under the accounting guidance for such arrangements. The selling price for each specific service was determined based upon third-party evidence and estimates.

We have also established valuation reserves related to obsolete and slow-moving spare parts inventory. The inventory valuation reserves were $13.7 million and $13.5 million at March 31, 2015 and December 31, 2014, respectively.

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Condensed Consolidating Financial Information - Condensed Consolidating Statements of Cash Flows (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by operating activities	$ 29,918		$ 6,122
Investing activities:
Purchase of property and equipment	(22,115)		(38,746)
Proceeds from asset dispositions			2,994
Purchase of short-term investments	(190,243)		(140,551)
Proceeds from sale of short-term investments	185,426		84,692
Refund of deposits on aircraft			3,926
Payments of deposits on aircraft	(66)		(6,499)
Net cash used in investing activities	(26,998)		(94,184)
Financing activities:
Proceeds from issuance of Senior Notes due 2019			500,000
Premium and costs to retire debt early			(26,132)
Repayment of Senior Notes due 2018			(292,571)
Debt issuance costs			(5,657)
Proceeds from line of credit	77,740		95,500
Payments on line of credit	(81,100)		(174,500)
Repurchase of common stock	(2,207)		(176)
Net cash (used in) provided by financing activities	(5,567)		96,464
Increase (decrease) in cash	(2,647)		8,402
Cash, beginning of period	6,270		934
Cash, end of period	3,623		9,336
Parent Company Only (issuer) [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by operating activities	4,637		(4,368)
Investing activities:
Purchase of property and equipment	(22,115)		(38,746)
Proceeds from asset dispositions			2,994
Purchase of short-term investments	(190,243)		(140,551)
Proceeds from sale of short-term investments	185,426		84,692
Refund of deposits on aircraft			3,926
Payments of deposits on aircraft	(66)		(6,499)
Net cash used in investing activities	(26,998)		(94,184)
Financing activities:
Proceeds from issuance of Senior Notes due 2019			500,000
Premium and costs to retire debt early			(26,132)
Repayment of Senior Notes due 2018			(292,571)
Debt issuance costs			(5,657)
Proceeds from line of credit	77,740		95,500
Payments on line of credit	(81,100)		(174,500)
Repurchase of common stock	(2,207)		(176)
Due to/from affiliate	27,928		9,415
Net cash (used in) provided by financing activities	22,361		105,879
Increase (decrease) in cash			7,327
Cash, beginning of period	51		52
Cash, end of period	51		7,379
Guarantor Subsidiaries [Member]
Condensed Cash Flow Statements, Captions [Line Items]
Net cash provided by operating activities	25,281	[1]	10,490	[1],[2]
Financing activities:
Due to/from affiliate	(27,928)	[1]	(9,415)	[1],[2]
Net cash (used in) provided by financing activities	(27,928)	[1]	(9,415)	[1],[2]
Increase (decrease) in cash	(2,647)	[1]	1,075	[1],[2]
Cash, beginning of period	6,219	[1]	882	[1],[2]
Cash, end of period	$ 3,572	[1]	$ 1,957	[1],[2]

[1] Foreign subsidiaries represent minor subsidiaries and are included in the guarantors subsidiaries' amounts.

[2] Cash flows between the Parent Company and Guarantor Subsidiaries related to the Company's centralized cash management activities in 2014 have been adjusted to show the effects on net cash provided by operating and financing activities.

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Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Share Based Compensation Expense

The table below sets forth the total amount of stock-based compensation expense for the three months ended March 31, 2015 and 2014.

	Three Months Ended
	March 31,
	2015		2014
	(Thousands of dollars)
Stock-based compensation expense:
Time-based restricted stock units	$	637	$	127
Performance-based restricted stock units		1,082		561
Total stock-based compensation expense	$	1,719	$	688

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Fair Value Measurements - Summary of Valuation of Investments and Financial Instruments Pricing Levels (Detail) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 207,440	$ 203,115
Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	204,965	200,729
Investments [Member] | Money Market Mutual Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	18,055	68,612
Investments [Member] | Municipal bonds and notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	1,501	1,502
Investments [Member] | Corporate bonds and notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	177,397	130,615
Investments [Member] | US Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	8,012
Deferred Compensation Plan Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	2,475	2,386
(Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	20,530	70,998
(Level 1) [Member] | Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	18,055	68,612
(Level 1) [Member] | Investments [Member] | Money Market Mutual Funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	18,055	68,612
(Level 1) [Member] | Deferred Compensation Plan Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	2,475	2,386
(Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	186,910	132,117
(Level 2) [Member] | Investments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	186,910	132,117
(Level 2) [Member] | Investments [Member] | Municipal bonds and notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	1,501	1,502
(Level 2) [Member] | Investments [Member] | Corporate bonds and notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	177,397	130,615
(Level 2) [Member] | Investments [Member] | US Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total	$ 8,012

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Condensed Consolidating Financial Information

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Financial Information

13. CONDENSED CONSOLIDATING FINANCIAL INFORMATION

As discussed further in Note 5, on March 17, 2014, PHI, Inc. issued $500 million of 5.25% Senior Notes due 2019 that 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 on the following pages sets forth, on a consolidated basis, the balance sheet, statement of operations, statement of comprehensive income, 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 the financial information presented below.

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(Thousands of dollars)

(Unaudited)

	March 31, 2015
	Parent Company Only (issuer)			Guarantor Subsidiaries (1)		Eliminations			Consolidated
ASSETS
Current Assets:
Cash	$	51		$	3,572	$	—		$	3,623
Short-term investments		189,480			—		—			189,480
Accounts receivable—net		100,167			60,060		—			160,227
Intercompany receivable		—			95,103		(95,103	)		—
Inventories of spare parts—net		62,954			8,498		—			71,452
Prepaid expenses		8,475			2,600		—			11,075
Deferred income taxes		9,914			—		—			9,914
Income taxes receivable		1,067			159		—			1,226
Total current assets		372,108			169,992		(95,103	)		446,997
Investment in subsidiaries		336,676			—		(336,676	)		—
Property and equipment—net		680,419			236,923		—			917,342
Restricted investments		15,485			—		—			15,485
Other assets		14,891			204		—			15,095
Total assets	$	1,419,579		$	407,119	$	(431,779	)	$	1,394,919
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	51,344		$	4,870	$	—		$	56,214
Accrued and other current liabilities		21,233			8,852		—			30,085
Intercompany payable		95,103			—		(95,103	)		—
Total current liabilities		167,680			13,722		(95,103	)		86,299
Long-term debt		539,640			—		—			539,640
Deferred income taxes and other long-term liabilities		105,208			56,721		—			161,929
Shareholders’ Equity:
Common stock and paid-in capital		302,593			109,982		(109,982	)		302,593
Accumulated other comprehensive loss		(102	)		—		—			(102	)
Retained earnings		304,560			226,694		(226,694	)		304,560
Total shareholders’ equity		607,051			336,676		(336,676	)		607,051
Total liabilities and shareholders’ equity	$	1,419,579		$	407,119	$	(431,779	)	$	1,394,919

(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, 2014
	Parent Company Only (issuer)			Guarantor Subsidiaries (1)		Eliminations			Consolidated
ASSETS
Current Assets:
Cash	$	51		$	6,219	$	—		$	6,270
Short-term investments		185,244			—		—			185,244
Accounts receivable—net		98,001			82,760		—			180,761
Intercompany receivable		—			95,399		(95,399	)		—
Inventories of spare parts—net		65,341			8,452		—			73,793
Prepaid expenses		7,610			1,704		—			9,314
Deferred income taxes		9,915			—		—			9,915
Income taxes receivable		1,068			159		—			1,227
Total current assets		367,230			194,693		(95,399	)		466,524
Investment in subsidiaries and others		358,080			—		(358,080	)		—
Property and equipment, net		638,437			239,381		—			877,818
Restricted investments		15,485			—		—			15,485
Other assets		16,055			198		—			16,253
Total assets	$	1,395,287		$	434,272	$	(453,479	)	$	1,376,080
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	22,578		$	5,122	$	—		$	27,700
Accrued and other current liabilities		34,477			18,335		—			52,812
Intercompany payable		95,270			—		(95,270	)		—
Total current liabilities		152,325			23,457		(95,270	)		80,512
Long-term debt		543,000			—		—			543,000
Deferred income taxes and other long-term liabilities		102,894			52,606		—			155,500
Shareholders’ Equity:
Common stock and paid-in capital		303,082			137,647		(137,647	)		303,082
Accumulated other comprehensive loss		(211	)		—		—			(211	)
Retained earnings		294,197			220,562		(220,562	)		294,197
Total shareholders’ equity		597,068			358,209		(358,209	)		597,068
Total liabilities and shareholders’ equity	$	1,395,287		$	434,272	$	(453,479	)	$	1,376,080

(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)

(Unaudited)

	For the quarter ended March 31, 2015
	Parent Company Only (issuer)			Guarantor Subsidiaries (1)			Eliminations			Consolidated
Operating revenues, net	$	128,658		$	75,539		$	—		$	204,197
Expenses:
Direct expenses		106,481			62,730			(4	)		169,207
Selling, general and administrative expenses		8,508			2,729			—			11,237
Total operating expenses		114,989			65,459			(4	)		180,444
Gain on disposal of assets, net		(7	)		—			—			(7	)
Equity in loss of unconsolidated affiliate		68			—			—			68
Operating income		13,608			10,080			(4	)		23,692
Equity in net income of consolidated subsidiaries		(6,131	)		—			6,131			—
Interest expense		7,170			—			—			7,170
Other income, net		(462	)		(4	)		4			(462	)
		577			(4	)		6,135			6,708
Earnings before income taxes		13,031			10,084			(6,131	)		16,984
Income tax expense		2,668			3,953			—			6,621
Net earnings	$	10,363		$	6,131		$	(6,131	)	$	10,363
	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	)

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

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Thousands of dollars)

(Unaudited)

	For the quarter ended March 31, 2015
	Parent Company Only (issuer)			Guarantor Subsidiaries (1)		Eliminations			Consolidated
Net earnings	$	10,363		$	6,131	$	(6,131	)	$	10,363
Unrealized gain on short-term investments		139			—		—			139
Other unrealized gain		24			—		—			24
Tax effect of preceding gains, losses or changes		(55	)		—		—			(55	)
	$	10,471		$	6,131	$	(6,131	)	$	10,471
	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 of preceding gains, losses or changes		(5	)		—		—			(5	)
	$	(5,313	)	$	2,735	$	(2,735	)	$	(5,313	)

(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)

(Unaudited)

	For the three months ended March 31, 2015
	Parent Company Only (issuer)			Guarantor Subsidiaries (1)			Eliminations		Consolidated
Net cash provided by operating activities	$	4,637		$	25,281		$	—	$	29,918
Investing activities:
Purchase of property and equipment		(22,115	)		—			—		(22,115	)
Purchase of short-term investments		(190,243	)		—			—		(190,243	)
Proceeds from sale of short-term investments		185,426			—			—		185,426
Payments of deposits on aircraft		(66	)		—			—		(66	)
Net cash used in investing activities		(26,998	)		—			—		(26,998	)
Financing activities:
Proceeds from line of credit		77,740			—			—		77,740
Payments on line of credit		(81,100	)		—			—		(81,100	)
Repurchase of common stock		(2,207	)							(2,207	)
Due to/from affiliate, net		27,928			(27,928	)		—		—
Net cash provided by (used in) financing activities		22,361			(27,928	)		—		5,567
Decrease in cash		—			(2,647	)		—		(2,647	)
Cash, beginning of period		51			6,219			—		6,270
Cash, end of period	$	51		$	3,572		$	—	$	3,623

(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)

(Unaudited)

	For the three months ended March 31, 2014
	Parent Company Only (issuer)			Guarantor Subsidiaries (1)(2)			Eliminations		Consolidated
Net cash provided by operating activities	$	(4,368	)	$	10,490		$	—	$	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	)
Due to/from affiliate		9,415			(9,415	)		—		—
Net cash provided by financing activities		105,879			(9,415	)		—		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

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

(2) Cash flows between the Parent Company and Guarantor Subsidiaries related to the Company’s centralized cash management activities in 2014 have been adjusted to show the effects on net cash provided by operating and financing activities.