Condensed Consolidating Financial Information (Tables)

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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.