Condensed Consolidating Financial Information (Tables)

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Balance Sheets

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEETS

(Thousands of dollars)

(Unaudited)

	June 30, 2016
	Parent
	Company		Guarantor
	Only (issuer)		Subsidiaries (1)			Eliminations			Consolidated
ASSETS
Current Assets:
Cash	$	40	$	8,527		$	—		$	8,567
Short-term investments		289,235		—			—			289,235
Accounts receivable – net		64,631		83,781			—			148,412
Intercompany receivable		—		47,588			(47,588	)		—
Inventories of spare parts – net		60,768		8,656			—			69,424
Prepaid expenses		4,821		2,981			—			7,802
Deferred income taxes		10,379		—			—			10,379
Income taxes receivable		950		(241	)		—			709
Total current assets		430,824		151,292			(47,588	)		534,528
Investment in subsidiaries		343,068		—			(343,068	)		—
Property and equipment – net		598,361		294,874			—			893,235
Restricted investments		13,023		15			—			13,038
Other assets		5,191		1,126			—			6,317
Total assets	$	1,390,467	$	447,307		$	(390,656	)	$	1,447,118
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	16,742	$	6,720		$	—		$	23,462
Accrued and other current liabilities		28,825		11,518			—			40,343
Intercompany payable		47,588		—			(47,588	)		—
Total current liabilities		93,155		18,238			(47,588	)		63,805
Long-term debt:
Revolving credit facility		95,000		—			—			95,000
Senior Notes dated March 17, 2014, net of debt issuance costs of $3,376		496,624		—			—			496,624
Deferred income taxes and other long-term liabilities		80,342		86,001			—			166,343
Shareholders’ Equity:
Common stock and paid-in capital		308,835		79,191			(79,191	)		308,835
Accumulated other comprehensive income		45		—			—			45
Retained earnings		316,466		263,877			(263,877	)		316,466
Total shareholders’ equity		625,346		343,068			(343,068	)		625,346
Total liabilities and shareholders’ equity	$	1,390,467	$	447,307		$	(390,656	)	$	1,447,118

(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)

(Unaudited)

	December 31, 2015
	Parent
	Company			Guarantor
	Only (issuer)			Subsidiaries (1)			Eliminations			Consolidated
ASSETS
Current Assets:
Cash	$	46		$	2,361		$	—		$	2,407
Short-term investments		284,523			—			—			284,523
Accounts receivable – net		70,336			74,442			—			144,778
Intercompany receivable		—			90,943			(90,943	)		—
Inventories of spare parts – net		60,060			9,431			—			69,491
Prepaid expenses		7,162			1,789			—			8,951
Deferred income taxes		10,379			—			—			10,379
Income taxes receivable		1,002			(241	)		—			761
Total current assets		433,508			178,725			(90,943	)		521,290
Investment in subsidiaries		330,848			—			(330,848	)		—
Property and equipment – net		632,759			250,770			—			883,529
Restricted investments		15,336			—			—			15,336
Other assets		5,975			203			—			6,178
Total assets	$	1,418,426		$	429,698		$	(421,791	)	$	1,426,333
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	25,512		$	5,861		$	—		$	31,373
Accrued liabilities		29,138			15,621			—			44,759
Intercompany payable		90,943			—			(90,943	)		—
Total current liabilities		145,593			21,482			(90,943	)		76,132
Long-term debt:
Revolving credit facility		57,500			—			—			57,500
Senior Notes dated March 17, 2014, net of debt issuance costs of $3,999		496,001			—			—			496,001
Deferred income taxes and other long-term liabilities		92,334			77,368			—			169,702
Shareholders’ Equity:
Common stock and paid-in capital		306,444			79,061			(79,061	)		306,444
Accumulated other comprehensive loss		(567	)		—			—			(567	)
Retained earnings		321,121			251,787			(251,787	)		321,121
Total shareholders’ equity		626,998			330,848			(330,848	)		626,998
Total liabilities and shareholders’ equity	$	1,418,426		$	429,698		$	(421,791	)	$	1,426,333

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

Condensed Consolidating Statements of Operations

PHI, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(Thousands of dollars)

(Unaudited)

	For the quarter ended June 30, 2016
	Parent
	Company			Guarantor
	Only			Subsidiaries (1)		Eliminations			Consolidated
Operating revenues, net	$	89,365		$	77,771	$	—		$	167,136
Expenses:
Direct expenses		89,535			62,882		—			152,417
Selling, general and administrative expenses		9,232			2,871		(325	)		11,778
Total operating expenses		98,767			65,753		(325	)		164,195
Gain on disposal of assets, net		(4,298	)		—		—			(4,298	)
Equity in loss of unconsolidated affiliate		76			—		—			76
Operating income		(5,180	)		12,018		325			7,163
Equity in net income of consolidated subsidiaries		(7,035	)		—		7,035			—
Interest expense		7,534			6		—			7,540
Other income, net		(819	)		—		325			(494	)
		(320	)		6		7,360			7,046
(Loss) earnings before income taxes		(4,860	)		12,012		(7,035	)		117
Income tax (benefit) expense		(9,137	)		4,977		—			(4,160	)
Net earnings	$	4,277		$	7,035	$	(7,035	)	$	4,277
	For the quarter ended June 30, 2015
	Parent
	Company			Guarantor
	Only			Subsidiaries (1)		Eliminations			Consolidated
Operating revenues, net	$	115,040		$	83,507	$	—		$	198,547
Expenses:
Direct expenses		103,483			65,349		(4	)		168,828
Selling, general and administrative expenses		9,471			2,576		—			12,047
Total operating expenses		112,954			67,925		(4	)		180,875
Gain on disposal of assets, net		(66	)		—		—			(66	)
Equity in loss of unconsolidated affiliate		106			—		—			106
Operating income		2,046			15,582		4			17,632
Equity in net income of consolidated subsidiaries		(9,230	)		—		9,230			—
Interest expense		7,155			—		—			7,155
Other income, net		(571	)		—		4			(567	)
		(2,646	)		—		9,234			6,588
Earnings before income taxes		4,692			15,582		(9,230	)		11,044
Income tax (benefit) expense		(1,762	)		6,352		—			4,590
Net earnings	$	6,454		$	9,230	$	(9,230	)	$	6,454

(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 six months ended June 30, 2016
	Parent
	Company			Guarantor
	Only			Subsidiaries (1)			Eliminations			Consolidated
Operating revenues, net	$	181,234		$	149,918		$	—		$	331,152
Expenses:
Direct expenses		181,572			123,399			—			304,971
Selling, general and administrative expenses		18,275			5,674			(498	)		23,451
Total operating expenses		199,847			129,073			(498	)		328,422
Gain on disposal of assets, net		(3,939	)		—			—			(3,939	)
Equity in loss of unconsolidated affiliate		76			—			—			76
Operating income		(14,750	)		20,845			498			6,593
Equity in net income of consolidated subsidiaries		(12,090	)		—			12,090			—
Interest expense		15,047			26			—			15,073
Other income, net		(1,603	)		(4	)		498			(1,109	)
		1,354			22			12,588			13,964
(Loss) earnings before income taxes		(16,104	)		20,823			(12,090	)		(7,371	)
Income tax (benefit) expense		(11,449	)		8,733			—			(2,716	)
Net (loss)earnings	$	(4,655	)	$	12,090		$	(12,090	)	$	(4,655	)
	For the six months ended June 30, 2015
	Parent
	Company			Guarantor
	Only			Subsidiaries (1)			Eliminations			Consolidated
Operating revenues, net	$	243,697		$	159,047		$	—		$	402,744
Expenses:
Direct expenses		209,965			128,079			(9	)		338,035
Selling, general and administrative expenses		17,979			5,305			—			23,284
Total operating expenses		227,944			133,384			(9	)		361,319
Gain on disposal of assets, net		(73	)		—			—			(73	)
Equity in loss of unconsolidated affiliate		174			—			—			174
Operating income		15,652			25,663			9			41,324
Equity in net income of consolidated subsidiaries		(15,362	)		—			15,362			—
Interest expense		14,325			—			—			14,325
Other income, net		(1,034	)		(4	)		9			(1,029	)
		(2,071	)		(4	)		15,371			13,296
Earnings before income taxes		17,723			25,667			(15,362	)		28,028
Income tax expense		906			10,305			—			11,211
Net earnings	$	16,817		$	15,362		$	(15,362	)	$	16,817

(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

(Thousands of dollars)

(Unaudited)

	For the quarter ended June 30, 2016
	Parent
	Company			Guarantor
	Only			Subsidiaries (1)		Eliminations			Consolidated
Net earnings	$	4,277		$	7,035	$	(7,035	)	$	4,277
Unrealized loss on short-term investments		210			—		—			210
Changes in pension plan assets and benefit obligations		1			—		—			1
Tax effect		(75	)		—		—			(75	)
Total comprehensive income	$	4,413		$	7,035	$	(7,035	)	$	4,413
	For the quarter ended June 30, 2015
	Parent
	Company			Guarantor
	Only			Subsidiaries (1)		Eliminations			Consolidated
Net earnings	$	6,454		$	9,230	$	(9,230	)	$	6,454
Unrealized loss on short-term investments		(158	)		—		—			(158	)
Tax effect		63			—		—			63
Total comprehensive income	$	6,359		$	9,230	$	(9,230	)	$	6,359

(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 six months ended June 30, 2016
	Parent
	Company			Guarantor
	Only			Subsidiaries (1)		Eliminations			Consolidated
Net (loss) earnings	$	(4,655	)	$	12,090	$	(12,090	)	$	(4,655	)
Unrealized loss on short-term investments		1,017			—		—			1,017
Changes in pension plan assets and benefit obligations		2			—		—			2
Tax effect		(407	)		—		—			(407	)
Total comprehensive (loss) income	$	(4,043	)	$	12,090	$	(12,090	)	$	(4,043	)
	For the six months ended June 30, 2015
	Parent
	Company			Guarantor
	Only			Subsidiaries (1)		Eliminations			Consolidated
Net earnings	$	16,817		$	15,362	$	(15,362	)	$	16,817
Unrealized loss on short-term investments		(19	)		—		—			(19	)
Unrealized realized gain		24			—		—			24
Tax effect		9			—		—			9
Total comprehensive income	$	16,831		$	15,362	$	(15,362	)	$	16,831

(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 six months ended June 30, 2016
	Parent
	Company			Guarantor
	Only (issuer)			Subsidiaries (1)			Eliminations		Consolidated
Net cash (used in) provided by operating activities	$	(12,954	)	$	13,753		$	—	$	799
Investing activities:
Purchase of property and equipment		(39,535	)		(373	)		—		(39,908	)
Proceeds from asset dispositions		10,998			—			—		10,998
Purchase of short-term investments		(151,436	)		—			—		(151,436	)
Proceeds from sale of short-term investments		148,838			—			—		148,838
Payments of deposits on aircraft		(131	)		—			—		(131	)
Net cash used in investing activities		(31,266	)		(373	)		—		(31,639	)
Financing activities:
Proceeds from line of credit		150,800			—			—		150,800
Payments on line of credit		(113,300	)		—			—		(113,300	)
Repurchase of common stock		(500	)		—			—		(500	)
Due to/from affiliate, net		7,214			(7,214	)		—		—
Net cash provided by (used in) financing activities		44,214			(7,214	)		—		37,000
(Decrease ) increase in cash		(6	)		6,166			—		6,160
Cash, beginning of period		46			2,361			—		2,407
Cash, end of period	$	40		$	8,527		$	—	$	8,567

(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 six months ended June 30, 2015
	Parent
	Company			Guarantor
	Only (issuer)			Subsidiaries (1)			Eliminations		Consolidated
Net cash provided by operating activities	$	46,696		$	22,612		$	—	$	69,308
Investing activities:
Purchase of property and equipment		(29,502	)		—			—		(29,502	)
Proceeds from asset dispositions		567			—			—		567
Purchase of short-term investments		(290,469	)		—			—		(290,469	)
Proceeds from sale of short-term investments		257,454			—			—		257,454
Payments of deposits on aircraft		(131	)		—			—		(131	)
Net cash used in investing activities		(62,081	)		—			—		(62,081	)
Financing activities:
Proceeds from line of credit		119,740			—			—		119,740
Payments on line of credit		(127,240	)		—			—		(127,240	)
Repurchase of common stock for payroll tax withholding requirements		(2,338	)		—			—		(2,338	)
Due to/from affiliate, net		25,220			(25,220	)		—		—
Net cash provided by (used in) financing activities		15,382			(25,220	)		—		(9,838	)
Decrease in cash		(3	)		(2,608	)		—		(2,611	)
Cash, beginning of period		51			6,219			—		6,270
Cash, end of period	$	48		$	3,611		$	—	$	3,659

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